396 TAXATION PROBLEMS 



it was again doubled (standing at 17 millions in 1840). Thirty 

 years later it was again doubled (standing at 38j/ millions in 

 1870). Thirty years later it was again doubled (standing at 76 

 millions in 1900). So the process of doubling goes on every thirty 

 years. The food supply must be doubled every thirty years. And 

 the vacant lands are long since all occupied. Is Henry George 

 right in his basic argument that an increase in food supply can be 

 had only at increased cost? Must each added bushel of wheat be a 

 dearer bushel than the preceding? If so, rents must rise. Land 

 values must increase with increase in population. The owner of 

 the land (the " appropriator of ground rent") will be the beneficiary. 



The Question at Issue. An iron law of rent of this kind is 

 based on the theory of " diminishing returns" in agriculture, for 

 agriculture as a whole. The individual farmer, in any case, doubt- 

 less has some land on the basis of increasing returns (where, for 

 instance, increasing his investment of labor or capital or both by 

 10 per cent will increase his returns 15 per cent) ; some on the basis 

 of stationary returns (where, for instance, increasing his invest- 

 ment of labor or capital or both by 10 per cent will increase his 

 yield by 10 per cent) ; and some on the basis of diminishing returns 

 (where, for instance, increasing his investment of labor or capital 

 or both by 10 per cent will increase his yield by 5 per cent). 



The food supply can be increased. It can be increased by using 

 more labor farming more intensively; by using better machinery; 

 by using better tillage methods ; by using better seed selection ; by 

 using pure bred live stock; by proper animal nutrition; by more 

 scientific crop rotation; by introducing new legumes and farm 

 crops; and in many other ways. The question at issue is: Does 

 each added bushel of crop cost more than the preceding bushel? 

 In other words, has agriculture reached the state of diminishing 

 returns in the United States? Very clearly, a general answer 

 cannot be given. Rents have fallen in some sections, and risen in 

 others. Some farms are operated on the basis of diminishing 

 returns; some on the basis of increasing returns. The various 

 surveys that have been made and are now being made clearly 

 illustrate this truth. If all farmers were operating on the basis 

 of the few best farmers, the increase in food supply would be so 

 enormous as to cause a slump in prices of foodstuffs, and a conse- 

 quent fall in rents of land. 



If the Single Tax Were Applied. The single taxers would 

 apply their single tax to both city and farm land, but base their 

 chief arguments on the city land. For it is in city lands that ground 



