APPENDIX I 101 



does not arise from outlay of capital or labour, but is due to 

 endowments of nature. 



These advantages produce higher rent to the owner above 

 the rent which is derived from poorer or less richly endowed 

 soil. 



In the above paragraphs 1 have been dealing with the 

 theory of rent. Our great economists, from Ricardo onwards, 

 have dealt at length with this problem, but very generally 

 from the academic and theoretic side. 



Sufficient attention has never been paid in this country to 

 the human element as a factor in determining rent, and the 

 general result of the teaching of our economists has been an 

 exaggerated belief in the rent value inherent in the soil. 

 Even in the case of the richest soil it has become available 

 for agricultural use only after the expenditure of capital. 



It was this belief in ihe inherent or prairie value of the soil 

 that led to the Land Value legislation, which failctl because 

 it was based on a fallacy. Investigation shows that in practice 

 the inherent or prairie value of the land is non-existent. 



The effect of the teaching of our economists has been far- 

 reaching, and has undoubtedly led to the attitude of mind 

 amongst our practical agriculturists who hold that for 

 market gardening, for instance, you must have good rich 

 land ; the idea of making the soil hardly exists in this country 

 as it does in others. As an example, the wonderful market 

 gardeixing near Paris is on land that was of the poorest possible 

 quality ; but the cultivators " built up " that land to such an 

 extent that each year they have surplus soil which they sell, 

 and the writer has talked to men who pay their rent by 

 selling surplus soil ! 



As a side issue in the problem it is interesting to note the 

 difference between the rural and urban landowner in regard 

 to rent. The urban owner as a rule does not expend his capital 

 in developing his land ; another man generally builds the house 

 upon it, a public authority docs the drainage work and lays 

 on the water supply. 



In the case of agricultural land it is the owner who effects 



