1 76 PRINCIPLES OF RURAL ECONOMICS 



of produce, than to have one family on every 80 acres, even 

 though the product per acre could thus be raised to $30. But, 

 of course, if we actually have one family on every 80 acres, it is 

 obviously much better that each acre should produce $30 than 

 $20 worth. This is the point of view from which to approach the 

 problem of increasing the product of the land. Such a result is 

 to be secured not by a mere increase in the farming population, 

 but by a more economical, a more intelligent, a more efficient 

 application of the labor power already possessed by the country. 

 In general terms, this is what is meant by economizing labor. 

 Seeing that our population is likely to increase rapidly for a 

 good many years to come, and that our supply of land is limited, 

 it is obvious that the present average rate of production per head 

 cannot be increased or even maintained at the present level, 

 except by increasing the average productivity of the land. It 

 therefore behooves us to study more effective ways of applying 

 our labor to our land in order that the returns to labor may not 

 be diminished but increased. 



Why intensive cultivation is not always economical of labor. 

 There are two great obstacles to be overcome in the accomplish- 

 ment of this task. One is the tendency of the soil to decline in 

 fertility as larger and larger supplies of food, etc. are extracted 

 from it. To counteract this tendency requires the exercise of the 

 greatest intelligence in cultivation, in rotation of crops, and in 

 the application of manure and artificial fertilizers. The other 

 great obstacle is the law of diminishing returns, sometimes called 

 the great law of agricultural production. This law may be stated 

 briefly as follows : In a given state of civilization, and a given 

 state of knowledge of the art of husbandry, an increase in the 

 labor and capital applied to the cultivation of a given piece of 

 land will increase the product of the land, but not in the same 

 proportion as the labor and capital are increased. That is to say, 

 assuming a reasonably good state of cultivation to begin with, 



