INCIDENCE OF RATES AND TAXES 129 



capital already sunk in the land, which 

 cannot be withdrawn, and which must be 

 kept up to secure the payment of the rest of 

 the rent. In brief, it does not apply to that 

 part of rent which is properly on the same 

 footing as farmers' profits. So far, we ought 

 to say that unless the owner receives the 

 ordinary rate that may be fairly expected, 

 he will not employ his capital on the land. 

 But it is clear that the owner of the land 

 is not so favourably placed as the ordinary 

 farmer. 



As just observed, in order to get any rent 

 at all, there must be some employment of 

 landlords' capital. And so long as there is 

 any true surplus, it may pay to lose the 

 profit on part of the capital expended in 

 the upkeep. 



We arrive then at this position. The 

 incidence of rates as between landlord and 



tenant depends largely on the relative 



i 



