132 RATES AND TAXES 



to operate. If any branch of industry is 

 getting below the normal rates, production 

 is checked until the reduction of supply 

 raises prices. Suppose, however, that prices 

 are practically determined independently of 

 the short supply in any one country. 

 Under these conditions, the result must 

 be that the industry will gradually decline ; 

 only the most profitable branches will be 

 continued ; the capital will be renewed 

 to a less extent ; and on the whole, that 

 industry will, relatively to others, have a 

 low rate of profit. 



Owing to the large amount of fixed 

 capital in agriculture, including the im- 

 provements fixed in the land, it will pay 

 for a long time to work the land in some 

 way, so as at any rate to avoid a total 

 loss. Landlords and farmers cannot remove 

 their capital to more flourishing industries. 

 Besides their fixed capital, there is also 



