192 Mr TOZER, ON THE EFFECT OF THE 



producing respectively the returns r n+1 ... r n + m , an effect which will not 

 be confined to the estate of the proprietor who has become an absentee. 

 The rate of profit will be lowered from q - 1 to q' — 1, where q' is 

 determined by the least return which is now made by an unit of capital ; 

 the whole rental of H will be increased, and the income of the proprietor 

 will be raised from 



R = X<r -q), to R, = V n+m c(r - q) 



whence R-R = *•«; c(r-q) + (q - q')Xc, 



which will be the gain of the proprietor. The treasury of H will lose 

 t2 l „c(r — q) + xS<r. Foreign treasuries will gain R 2>/ — 2/)2>7, Rm, 

 &c, being the import duties successively paid on R and its equivalents. 



If the same amount of commercial capital be required to export 

 R as was required to export Sp, and import its equivalent, C 3 + C' 3 will 

 be unaffected ; but if a different amount, and if the owners of this capital 

 be residents of H, then a portion of C 3 + C" 3 may be diverted to the 

 same employments as C 2 + C 2 have been compelled to seek ; or a portion 

 of C»+ C" 2 may be employed as commercial capital. The effects of non- 

 residence will thus be increased or diminished in degree, but will continue 

 to be the same in kind. 



The distinction between a country which exports manufactures and 

 one that exports raw produce is not a necessary one, though it may 

 generally exist. The accurate enunciation of the result appears to be, 

 that beyond the loss to the revenue the absenteeism of proprietors can 

 only impair the resources of a community when it forces capital from 

 a more to a less profitable employment. 



As regards the effect on F, the country to which the proprietor has 

 removed, the nature of the products in which his rent will be imported 

 is independent of the nature of those he consumes, as well as of those 

 in which it was produced. The presence of an individual who is without 

 capital, but who is entitled to an income, will therefore create a demand for 

 the employment of capital in producing the commodities he requires. 



This capital will be drawn from investments where its employment 

 produces the least return. There will be a gain in direct taxes paid by 



