INCIDENCE OF RATES AND TAXES 131 



this ordinary rate over a term of years will 

 be obtained. 



Here again, however, we have another 

 pure theory : the theory, namely, of the 

 tendency of profits to an equality, after 

 allowing for certain natural and permanent 

 causes of difference. This theory itself is 

 only true with important qualifications and 

 assumptions. It expresses, no doubt, the 

 operation of real causes of the first 

 magnitude. But again, allowance must 

 be made for friction and for changing 

 conditions. 



It was pointed out at the beginning of 

 this examination of incidence, that, owing 

 to the influence of foreign competition, 

 rates and taxes on agriculture could not 

 be transferred to the consumer in higher 

 prices. But we must now observe that 

 this is the usual mode in which the 

 tendency to equality of profits is supposed 



