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by human demand。 And the inequality of soils occasions; even at

an early period of society a comparative scarcity of the best

lands; and so far is undoubtedly one of the causes of rent

properly so called。 On this account; perhaps; the term partial

monopoly might be fairly applicable。 But the scarcity of land;

thus implied; is by no means alone sufficient to produce the

effects observed。 And a more accurate investigation of the

subject will show us how essentially different the high price of

raw produce is; both in its nature and origin; and the laws by

which it is governed; from the high price of a common monopoly。

    The causes of the high price of raw produce may be stated to

be three。

    First; and mainly; that quality of the earth; by which it can

be made to yield a greater portion of the necessaries of life

than is required for the maintenance of the persons employed on

the land。

    Secondly; that quality peculiar to the necessaries of life of

being able to create their own demand; or to raise up a number of

demanders in proportion to the quantity of necessaries produced。

    And; thirdly; the comparative scarcity of the most fertile

land。

    The qualities of the soil and of its products; here noticed

as the primary causes of the high price of raw produce; are the

gifts of nature to man。 They are quite unconnected with monopoly;

and yet are so absolutely essential to the existence of rent;

that without them; no degree of scarcity or monopoly could have

occasioned that excess of the price of raw produce; above the

cost of production; which shows itself in this form。

    If; for instance; the soil of the earth had been such; that;

however well directed might have been the industry of man; he

could not have produced from it more than was barely sufficient

to maintain those; whose labour and attention were necessary to

its products; though; in this case; food and raw materials would

have been evidently scarcer than at present; and the land might

have been; in the same manner; monopolized by particular owners;

vet it is quite clear; that neither rent; nor any essential

surplus produce of the land in the form of high profits; could

have existed。

    It is equally clear; that if the necessaries of life the most

important products of land … had not the property of creating an

increase of demand proportioned to their increased quantity; such

increased quantity would occasion a fall in their exchangeable

value。 However abundant might be the produce of a country; its

population might remain stationary And this abundance; without a

proportionate demand; and with a very high corn price of labour;

which would naturally take place under these circumstances; might

reduce the price of raw produce; like the price of manufactures;

to the cost of production。

    It has been sometimes argued; that it is mistaking the

principle of population; to imagine; that the increase of food;

or of raw produce alone; can occasion a proportionate increase of

population。 This is no doubt true; but it must be allowed; as has

been justly observed by Adam Smith; that 'when food is provided;

it is comparatively easy to find the necessary clothing and

lodging。; And it should always be recollected; that land does not

produce one commodity alone; but in addition to that most

indispensable of all commodities … food … it produces also the

materials for the other necessaries of life; and the labour

required to work up these materials is of course never excluded

from the consideration。(6*)

    It is; therefore; strictly true; that land produces the

necessaries of life; produces food; materials; and labour;

produces the means by which; and by which alone; an increase of

people may be brought into being; and supported。 In this respect

it is fundamentally different from every other kind of machine

known to man; and it is natural to suppose; that it should be

attended with some peculiar effects。

    If the cotton machinery; in this country; were to go on

increasing at its present rate; or even much faster; but instead

of producing one particular sort of substance which may be used

for some parts of dress and furniture; etc。 had the qualities of

land; and could yield what; with the assistance of a little

labour; economy; and skill; could furnish food; clothing; and

lodging; in such proportions as to create an increase of

population equal to the increased supply of these necessaries;

the demand for the products of such improved machinery would

continue in excess above the cost of production; and this excess

would no longer exclusively belong to the machinery of the

land。(7*)

    There is a radical difference in the cause of a demand for

those objects which are strictly necessary to the support of

human life; and a demand for all other commodities。 In all other

commodities the demand is exterior to; and independent of; the

production itself; and in the case of a monopoly; whether natural

or artificial; the excess of price is in proportion to the

smallness of the supply compared with the demand; while this

demand is comparatively unlimited。 In the case of strict

necessaries; the existence and increase of the demand; or of the

number of demanders; must depend upon the existence and increase

of these necessaries themselves; and the excess of their price

above the cost of their production must depend upon; and is

permanently limited by; the excess of their quantity above the

quantity necessary to maintain the labour required to produce

them; without which excess of quantity no demand could have

existed; according to the laws of nature; for more than was

necessary to support the producers。

    It has been stated; in the new edition of the Wealth of

nations; that the cause of the high price of raw produce is; that

such price is required to proportion the consumption to the

supply。(8*) This is also true; but it affords no solution of the

point in question。 We still want to know why the consumption and

supply are such as to make the price so greatly exceed the cost

of production; and the main cause is evidently the fertility of

the earth in producing the necessaries of life。 Diminish this

plenty; diminish the fertility of the soil; and the excess will

diminish; diminish it still further; and it will disappear。 The

cause of the high price of the necessaries of life above the cost

of production; is to be found in their abundance; rather than

their scarcity; and is not only essentially different from the

high price occasioned by artificial monopolies; but from the high

price of those peculiar products of the earth; not connected with

food; which may be called natural and necessary monopolies。

    The produce of certain vineyards in France; which; from the

peculiarity of their soil and situation; exclusively yield wine

of a certain flavour; is sold of course at a price very far

exceeding the cost of production。 And this is owing to the

greatness of the competition for such wine; compared with the

scantiness of its supply; which confines the use of it to so

small a number of persons; that they are able; and rather than go

without it; willing; to give an excessively high price。 But if

the fertility of these lands were increased; so as very

considerably to increase the produce; this produce might so fall

in value as to diminish most essentially the excess of its price

above the cost of production。 While; on the other hand; if the

vineyards were to become less productive; this excess might

increase to almost any extent。

    The obvious cause of these effects is; that in all

monopolies; properly so called; whether natural or artificial;

the demand is exterior to; and independent of; the production

itself。 The number of persons who might have a taste for scarce

wines; and would be desirous of entering into a competition for

the purchase of them; might increase almost indefinitely; while

the produce itself was decreasing; and its price; therefore;

would have no other limit than the numbers; powers; and caprices;

of the competitors for it。

    In the production of the necessaries of life; on the

contrary; the demand is dependent upon the produce itself; and

the effects are; in consequence; widely different。 In this case;

it is physically impossible that the number of demanders should

increase; while the quantity of produce diminishes; as the

demanders only exist by means of this produce。 The fertility of

soil; and consequent abundance of produce from a certain quantity

of land; which; in the former case; diminished the excess of

price above the cost of production; is; in the present case; the

specific cause of such excess; and the diminished fertility;

which in the former case might increase the price to almost any

excess above the cost of production; may be safely asserted to be

the sole cause which could permanently maintain the necessaries

of life at a price not

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