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HE  RELATIONS  OF 

\feSANDPRDFiTSiNAGRiCULIfJRi 

-I.S.NICHOLSON.  MAI)  - 


THE  RELATIONS  OF  RENTS,  WAGES  AND 
PROFITS  IN  AGRICULTURE,  AND  THEIR 
BEARING  ON  RURAL  DEPOPULATION 


The  Relations  of  Rents,  Wages 
and  Profits  in  Agriculture,  and 
their  Bearing  on  Rural  De- 
population 


BY 

j:  S.  NICHOLSON,  M.A.,  D.Sc. 

Professor  of  Political  Economy  in  the  University  of  Edinburgh , 

AUTHOR  OF  "EFFECTS  OF  MACHINERY  ON  WAGES,"  "THE  HISTORY  OF  THE 

ENGLISH  CORN  LAWS,"  ETC.,  ETC. 


LONDON 

SWAN   SONNENSCHEIN   &   CO.,   L1M. 

NEW  YORK  :   CHARLES  SCRIBNER'S  SONS 

1906 


PRINTED  BY 

COWAN  AND  CO.,   LTD. 

PERTH 


PREFACE 

IN  the  last  of  the  series  of  Gilbey  Lectures,1  delivered 
in  the  University  of  Cambridge  in  the  May  Term, 
1906,  the  object  has  been  to  present  a  general  view 
from  the  historical  standpoint  of  the  Relations  of 
Rents,  Profits  and  Wages  in  English  Agriculture, 
and  to  discuss  the  bearing  on  Rural  Depopulation, 
and  other  questions  of  popular  interest  at  the  present 
time,  e.g.)  Small  Holdings. 

In  a  brief  survey  extending  over  six  centuries, 
it  was  necessary  to  confine  the  attention  to  the 
main  lines  of  development,  although  throughout 
the  economic  tendencies  have  been  brought  to  the 
test  of  crucial  facts. 

For  the  earlier  history  I  am  much  indebted  to 
Thorold  Roger's  "  History  of  Agriculture  and  Prices," 
and  "  Six  Centuries  of  English  Work  and  Wages  "  ; 
Mr.  Seebohm's  "  English  Village  Community  "  ;  Dr. 
Cunningham's  "  Growth  of  English  Industry  and 

1  In  1904  the  subject  of  the  Lectures  was  the  "  History  of 
the  English  Corn  Laws";  and  in  1905  "Rates  and 
Taxes  as  affecting  Agriculture,"  both  published  by  Messrs. 
Sonnenschein,  uniform  with  this  edition. 

v 


vi  Preface 

Commerce,"  and  Professor  Ashley's  "  Economic  His- 
tory." For  the  later  evidence  I  have  used  greatly 
various  papers  in  the  Journal  of  the  Royal  Statistical 
Society,  by  Major  Craigie,  Mr.  Wilson  Fox,  and 
others ;  the  two  Reports  on  Agricultural  Wages 
by  the  latter  writer ;  the  Reports  of  the  last  two 
Commissions  on  Agricultural  Depression  (published 
in  1882  and  1897),  and  finally,  the  general  Report 
of  the  last  Census  (1901). 

As  the  main  object  was  to  give  a  general  view, 
I  have  avoided  detailed  references. 

Mr.  A.  B.  Clark,  M.A.,  my  Assistant  and  Lecturer 
in  Economics  in  the  University,  has  kindly  revised 
and  corrected  the  proofs, 

J.  SHIELD  NICHOLSON. 

UNIVERSITY  OF  EDINBURGH, 
September,  1906. 


CONTENTS 


CHAPTER  I 

THE   HISTORY  OF   AGRICULTURAL   RENT   IN   ENGLAND 

PAGE 

IN  the  early  mediaeval  period  no  sharp  distinction  between  rents, 
wages  and  profits — Labour  Rents — the  typical  manor  and 
serfdom — break-up  of  the  manorial  system — the  emergence 
of  the  tenant  farmer  and  the  yeoman — the  enclosures  for 
sheep  farming  and  rural  depopulation  in  the  sixteenth 
century — improvements  in  agriculture  by  the  landowners 
in  the  seventeenth  and  the  eighteenth  centuries,  and  the 
rise  in  rent — further  rise  in  rent  during  the  great  war — 
survey  of  the  course  of  rent  in  the  nineteenth  century — 
serious  fall  since  1878 — the  example  of  the  Duke  of  Bed- 
ford's estates — general  conclusion  of  the  effects  of  economic 
progress  on  agricultural  rents  in  England  ,  I 

CHAPTER  II 

AGRICULTURAL  CAPITAL  AND   PROFITS 

IN  the  early  mediaeval  period  the  value  of  the  stock,  live  and 
dead,  on  agricultural  land  three  times  the  capital  value  of 
the  land  itself— large  farming  under  bailiff  supervision  with 
forced  labour— effects  of  the  Black  Death — the  landlords' 
remedy — examination  of  the  land  and  stock  lease — the 
enclosures  and  convertible  husbandly  in  the  sixteenth 
century — the  profits  of  tenant  farming  in  the  seventeenth 
and  eighteenth  centuries — the  relations  of  landlord  and 
tenant — the  views  of  Rogers  and  Adam  Smith  compared 
on  the  security  of  the  tenant's  capital — high  profits  of 
agriculture  at  the  end  of  the  eighteenth  century — survey 
of  the  progress  of  agriculture  in  the  nineteenth  century 
with  regard  to  farming,  capital,  and  profits— the  recent 
depression  and  the  losses  in  capital  and  profits.  ,  .  42 

vii 


viii  Contents 


CHAPTER  III 

AGRICULTURAL  WAGES 

PAGE 

PROGRESS  as  regards  real  wages  in  agriculture  greater  in  the 
mediaeval  period  up  to  the  end  of  the  fifteenth  century  than 
in  any  subsequent  period — the  fifteenth  century  the  golden 
age  of  agricultural  labour — these  opinions  examined— 
the  effects  of  the  Elizabethan  legislation  on  the  Poor  and 
Employment— effects  of  the  law  of  settlement — low  rates  of 
wages  in  spite  of  the  great  prosperity  in  agriculture  about 
the  end  of  the  eighteenth  century — the  growth  of  agrarian 
pauperism  before  1834 —hardships  of  the  agricultural 
labourer — evils  only  partially  remedied  by  the  Act  of 
1834 — surplus  rural  labour  and  low  wages  after  the 
repeal  of  the  Corn  Laws — the  evils  of  the  "gang" 
system — remedial  legislation — rise  in  wages  during  last 
fifty  years— agricultural  wages  always  lower  than  corre- 
sponding wages  in  the  towns — wages  and  employment  of 
women  and  children  in  agriculture — comparison  with  other 
countries  .......  88 

CHAPTER  IV 

RURAL  DEPOPULATION 

POPULAR  exaggerations  on  the  nature  and  extent  of  rural 
depopulation  examined — the  census  of  1901 — meaning  of 
rural  and  urban — non-agricultural  rural  occupations — 
growth  of  population  greatest  not  in  the  large  cities  but 
in  the  towns  under  100,000— no  absolute  decline  in  rural 
districts  on  the  whole,  but  serious  decline  in  some  parts — 
great  falling  off  of  the  workers  on  agricultural  land — 
number  of  farmers  about  the  same — women  and  children 
now  very  little  employed  in  agriculture — contrast  of 
England  with  Germany  and  Austria  and  other  countries 
as  regards  the  employment  of  women— complaints  of 
rural  depopulation  and  the  undue  growth  of  London  very 
common  from  the  sixteenth  century  onwards — rural  depopu- 
lation in  other  countries— France,  Gerrrmny,  Australasia, 
etc. — consideration  of  the  general  causes  and  of  some  sug- 
gested remedies  of  rural  depopulation — small  holdings — 
general  conclusion  of  the  broad  historical  survey  of  the 
relations  of  landlord,  farmer,  and  labourer  .  .  131 


THE  RELATIONS  OF  RENTS,  WAGES, 
AND  PROFITS  IN  AGRICULTURE, 
AND  THEIR  BEARING  ON  RURAL 
DEPOPULATION 

CHAPTER  I 

THE   HISTORY   OF  AGRICULTURAL    RENT 
IN   ENGLAND 

IN  tracing  the  history  of  agricultural  rent 
in  England  there  are  to  be  considered  two 
main  questions,  closely  connected,  it  is  true, 
but  logically  different. 

There  is  first  the  question  of  the  historical 
changes  in  the  nature  of  rent,  involving 
the  relations  of  landlord  and  tenant,  and 


2      Rents  y  Wages,  and  Profits  in  Agriculture 

the  kind  of  payments  that  are  made  in  the 
form  of  rent.  And  secondly,  there  is  the 
question  of  the  historical  changes  in  the 
amount  or  value  of  the  rent.  The  two  sets 
of  questions  are  seen  to  be  closely  related, 
from  the  fact  that  the  amount  of  the  rent 
that  is  exacted  by  the  landlord  is  found  to 
depend,  partly  at  any  rate,  on  the  kind  of 
payment  that  is  made,  and  partly  also  on 
the  general  relations  of  landlord  and  tenant ; 
and  the  further  we  go  back  the  greater 
the  importance  of  the  qualitative  character 
of  the  rent  in  determining  its  quantity. 
The  historical  method  is  specially  suited  for 
a  study  of  agricultural  rent,  because  even  at 
the  present  day  all  the  important  forms  of 
rent  that  have  appeared  in  the  past  are 
still  represented,  and  we  constantly  have 
reversions  to  older  ideas. 

Sir  Henry  Maine  has  well  said  that  an 
ancient  legal  conception  corresponds  not  to 


History  of  Agricultural  Rent  in  England      3 

one,  but  to  several  modern  legal  conceptions, 
and  the  same  proposition  holds  good  if  we 
substitute  economic  for  legal. 

Under  modern  conditions  in  England  we 
distinguish  sharply  between  rent,  profits,  and 
wages,  and  the  three  kinds  of  income 
derived  from  agricultural  land  are  expressed 
in  the  typical  case  in  terms  of  money.  The 
first  thing,  however,  we  notice  when  we 
go  back  to  the  beginnings  of  history  is, 
that  the  relations  of  landlord,  tenant,  and 
labourer  are  not  based  on  monetary 
agreements,  and  the  incomes  of  the  three 
parties  are  not  reckoned  in  terms  of  money. 

Before  the  Norman  Conquest  the  dominant 
system  of  landholding  had  come  to  be  of 
the  manorial  type,  and  this  type  was 
intensified  under  the  Norman  influence. 
In  England  at  the  present  day  there  are 
still  manors,  and  the  lords  of  these  manors 
have  certain  rights  and  privileges,  but  they 


4      Rents,   Wages,  and  Profits  in  Agriculture 

are  only  a  shadow  of  what  they  were 
originally. 

At  the  time  of  the  Domesday  Survey  the 
whole  country  practically  was  portioned  out 
in  manors.  There  are  many  interesting 
questions  regarding  the  origin  and  meaning 
of  the  manor  —  both  the  thing  and  the 
name — but  in  time  the  word  came  to  mean 
a  landed  estate,  and  the  typical  manor  was 
a  large  estate.  Perhaps  the  most  important 
survival  of  the  manorial  system  in  England 
at  present  is  the  distribution  of  a  great  part 
of  the  country  in  large  estates.  In  dealing, 
then,  with  the  manorial  system,  we  are 
dealing  with  the  origin  of  our  system  of 
large  estates  and  our  present  landlord  and 
tenant  system.  Let  us  look  at  the  features 
of  a  typical  manor  in  the  early  mediaeval 
period. 

The  typical  manor  was  a  large  estate 
with  a  castle  or  hall,  in  which,  on  occasion, 


History  of  Agricultural  Rent  in  England      5 

the  lord  of  the  manor  resided,  though  the 
same  person  might  have  several  manors 
and  pass  from  one  to  the  other.  Connected 
with  the  manor  were  certain  local  courts, 
in  which,  practically,  the  power  of  the  lord 
of  the  manor  was  supreme.  It  is  true  that 
the  general  idea  of  these  courts  was  to  act 
on  customary  rules,  but  in  case  of  dispute, 
the  decision  of  the  lord  of  the  manor  or 
his  representative  was  final.  Of  course  I 
am  only  looking  at  the  power  of  the 
manorial  courts  from  the  point  of  view 
of  landlord  and  tenant ;  but  incidentally,  we 
must  notice  that,  to  begin  with,  the  lord 
of  the  manor  had  such  powers  that  the 
tenants  were,  for  the  most  part,  in  a  state 
of  serfdom. 

They  could  not  leave  the  estate;  they 
could  not  give  their  daughters  in  marriage 
without  the  consent  of  the  lord  of  the 
manor ;  they  could  not  sell  their  stock,  and 


6      Rentsy   Wages,  and  Profits  in  Agriculture 

they  were  subject  to  all  sorts  of  police 
regulations  enforced  by  the  manorial  courts. 
They  were  attached  to  the  land,  and  under 
the  power  of  the  lord,  except  so  far  as  that 
power  was  mitigated  by  custom,  and  so 
far  as  it  clashed  with  the  law  of  the  land 
as  enforced  in  the  courts  of  the  king. 

It  is  clear  that  under  these  conditions 
there  was  no  contract  for  rent  in  our  sense 
of  the  term.  But,  in  fact,  very  heavy  rents 
were  exacted,  though  the  nature  of  the 
rent  was  also  quite  different.  In  reality, 
the  rent  that  the  tenant  paid  was  partly 
in  labour  and  partly  in  produce.  And  if 
we  were  to  put  a  value  on  the  labour  and 
on  the  produce,  we  should  find  that,  to 
begin  with,  the  amount  that  was  exacted 
was  as  much  as  the  land  could  bear, 
consistently  with  leaving  enough  in  the 
way  of  bare  subsistence  to  keep  up  the 
stock  of  labour. 


. 


History  of  Agricultural  Rent  in  England      7 

In  a  typical  manor  the  estate  consisted  of 
a  certain  amount  of  arable  land,  a  large 
tract  of  waste  or  common,  and  some 
natural  meadows.  The  most  interest  lies 
in  the  arable.  Some  of  it  formed  the 
home  farm  or  demesne,  and  some  was 
held  by  the  serfs.  The  whole  of  the 
arable  land  was,  as  a  rule,  in  three  large 
open  fields — that  is,  without  any  fences  or 
enclosures. 

The  ordinary  holding  of  a  serf  was 
thirty  acres ;  but  the  peculiarity  of  the 
system  was  that  it  consisted  of  scattered 
strips,  and  the  demesne  land  was  also 
interspersed  with  the  serf  land. 

Each  villein  or  serf  with  a  full  or  normal 
holding  had  ten  acres  in  each  of  the  great 
fields,  and  even  the  ten  acres  were  all 
separate — never  two  together.  The  acres 
were  also  of  a  peculiar  shape  called  long 
acres.  The  normal  length  was  a  furlong — 


8      Rents,  Wages,  and  Profits  in  Agriculture 

i.e.,  furrowlong — and  the  breadth  one-tenth 
of  a  furlong.  The  origin  of  these  propor- 
tions is  interesting :  the  furlong  was  forty 
rods  in  length,  and  a  rod  was  5J  yards. 
The  ploughing  was  done  by  a  large 
plough  drawn  by  eight  oxen,  and  the  rod 
is  supposed  to  be  the  breadth  of  the  full 
yoke  with  four  abreast.  With  such  a 
heavy  plough  it  was  natural  to  have  the 
furrow  as  long  as  possible,  but  it  was 
considered  unlucky  to  go  beyond  forty  in 
any  measure,  and  so  the  furrowlong  or 
furlong  was  only  forty  of  these  rods. 

These  details  illustrate  the  force  of 
custom  in  all  matters  pertaining  to  land. 
For  these  long  acres  survived  centuries 
after  their  meaning  had  been  forgotten, 
and  to  this  day  in  England  we  have  farms 
consisting  of  scattered  acres  owing  to  the 
survivals  of  this  system.  In  fact,  it  was 
the  observation  of  these  scattered  holdings 


History  of  Agricultural  Rent  in  England      9 

that  led  Mr.  Seebohm  to  discover  the 
original  meaning  of  the  system. 

The  scattering  of  the  long  acres  was 
due  to  the  fact  that  in  ancient  times,  when 
the  open  field  system  was  in  full  swing, 
the  land  of  the  serfs  was  cultivated 
on  a  peculiar  co-operative  principle.  The 
antiquity  of  co-operation  in  agriculture  is 
interesting  in  the  light  of  recent  experi- 
ence. Each  serf  with  a  full  holding  had, 
as  a  rule,  two  oxen,  so  that  four  serfs  had 
to  combine  to  furnish  the  oxen  for  a 
plough  team.  There  was  also  the  expense, 
at  that  time  very  great,  of  providing  the 
parts  of  the  plough  itself — e.g.,  iron — the 
equipment  and  the  labour  of  working  the 
plough.  Co-operation  was  then  necessary. 

We  must  now  notice  another  peculiarity 
in  the  holdings.  In  the  ordinary  case  they 
were  all  equal,  each  was  just  thirty  acres 
and  no  more,  This  equality  of  distribution 


io    Rents,   Wages,  and  Profits  in  Agriculture 

leads  to  another  point,  namely,  that  the 
land  was  originally  held  by  a  village 
community,  and  at  first  the  strips,  or  long 
acres,  were  changed  every  year.  The  land 
was  ploughed  by  the  great  common 
plough,  and  the  produce  was  divided  in 
strips  of  long  acres.  The  scattering  gave 
each  person  a  share  in  the  good  and  the 
inferior  land  or  produce. 

By  some  this  equality  in  the  original 
holdings  is  supposed  to  point  to  what  we 
should  call  communism,  or  equal  division 
of  property.  And  perhaps  it  was  so  to 
begin  with.  But  long  before  the  Norman 
Conquest  of  England,  the  inhabitants  of 
the  village  community  had  become  serfs  to 
the  lord  of  the  manor.  And  this  equality 
in  the  holdings  had  become  itself  a  sign 
of  serfdom.  With  freedom  you  get 
inequality.  The  holdings  were  in  the 
nature  of  burdens,  involving  so  much 


History  of  Agricultural  Rent  tn  England    1 1 

labour   rather    than    privileges    giving  rise 
to  so  much  wealth. 

In  fact,  the  lord  of  the  typical  manor 
had  to  see  that  his  land  was  adequately 
stocked  with  men  to  work  it,  and  the 
most  simple  plan  was  to  keep  up  the 
same  number  of  holdings,  and  on  the 
decease  of  a  tenant  or  serf,  one  of  his  sons, 
generally  the  youngest,  was  compelled  to 
take  a  re- grant  of  the  land.  These  serfs 
had  not  only  to  cultivate  the  long  acres 
which  belonged  to  their  part  of  the  estate, 
but  also  the  strips  which  belonged,  in  a 
more  special  sense,  to  the  lord  of  the  manor 
as  his  home  farm.  And  not  only  had  they 
to  provide  the  labour,  but  generally  also 
oxen  and  ploughs.  And  besides  this,  they 
were  compelled  to  work  at  the  command 
of  the  lord  of  the  manor  for  different 
purposes,  and,  in  fact,  he  used  their  labour 
as  he  found  it  convenient.  In  return,  they 


12     Rents,  Wages  >  and  Profits  in  Agriculture 

had  their  holdings  in  the  open  fields,  but 
then  they  were  also,  as  a  rule,  compelled 
to  give  up  part  of  the  produce ;  in  short, 
they  paid  not  only  labour  rents,  but 
produce  rents.  And  in  strict  law,  they 
and  their  goods  all  belonged  to  the  lord 
of  the  manor,  though  he  found  it  to  his 
interest  to  act  on  certain  long-established 
rules  founded  on  custom. 

Let  us  now  leave  out  the  details,  and 
look  on  the  nature  and  the  amount  of  the 
rent  under  this  system  as  a  whole.  The 
power  of  the  landlord  was  supreme,  and 
the  rents  were  as  great  as  could  be 
obtained  from  the  so-called  tenants. 

The  economic  progress  in  the  mediaeval 
period  consisted  mainly  in  the  conversion 
of  these  heavy  rents  in  labour  and  produce 
into  comparatively  moderate  rents  in 
money.  Coincidently  with  this,  the  serfs 
gained  their  personal  freedom,  and  in 


,       History  of  Agricultural  Rent  in  England    13 

many  cases  became  practically  peasant 
proprietors  or  yeomen. 

I  shall  now  try  to  show  how  this 
great  revolution  was  effected.  It  is  one 
of  the  best  examples  on  record  of  the 
influence  of  the  great  economic  forces  that 
are  always  at  work  beneath  the  surface  of 
society,  whatever  may  be  the  law  of  the 
land,  or  the  compulsion  of  custom.  It 
shows  also  that  in  some  respects  the 
growth  of  the  money  power  has  been  the 
principal  agent  in  the  amelioration  of  the 
lot  of  the  masses  of  the  people,  for  in  this 
period,  and  for  long  after,  the  masses  of 
the  people  were  attached  to  the  soil. 

The  great  agency  of  economic  progress 
in  the  mediaeval  period  was  the  conversion 
of  what  is  called  a  natural  economy  into 
a  money  economy,  or  the  substitution  of 
money  payments  for  payments  in  labour 
and  in  produce  of  various  kinds.  The 


14    Rents t   Wagts,  and  Profits  in  Agriculture 

process  is  often  described,  shortly,  by  the 
term  commutation — that  is,  the  commuta- 
tion of  payments  in  other  things  to 
payments  in  money. 

This  conversion  began  in  England  at 
a  very  early  time,  and  had  made  con- 
siderable progress  as  regards  labour  rents 
and  produce  rents,  before  the  occurrence  of 
that  great  pestilence,  the  Black  Death, 
which,  from  its  important  effects,  has  been 
called  the  watershed  of  economic  history. 
The  lords  of  the  manors  had  gradually 
found  it  more  to  their  interest  to  accept 
money  in  place  of  labour.  They  could  do 
with  the  money  what  they  liked,  and,  if 
necessary,  they  could  hire  labour  when  it 
was  wanted.  The  serfs  also  found  it  to 
their  advantage,  because  it  was  a  step  on 
the  way  to  freedom,  and  with  their  spare 
labour  they  could  earn  a  little  more  money 
than  they  were  compelled  to  pay  in  rent. 


History  of  Agricultural  Rent  in  England    1 5 

Consequently,  before  this  great  pestilence, 
a  good  many  of  the  serfs  were  paying 
money  rents  for  their  lands,  and  receiving 
money  wages  for  their  labour.  The  sudden 
diminution  of  the  supply  of  labour  caused 
by  the  plague  raised  the  rate  of  wages 
much  above  what  had  been  customary. 
To  get  labour,  landlords  tried  to  induce 
the  labourers  to  come  from  other  estates, 
and  offered  more  wages.  The  general 
result  was  that  the  expense  of  cultivating 
the  home  farms  or  the  demesne  land  rose 
enormously.  Some  of  the  landowners  tried 
to  bring  back  the  old  system  of  forced 
labour,  but  the  attempt  eventually  led  to 
the  Peasant  Revolt,  and,  in  fact,  the 
principle  of  commutation  had  been  already 
carried  too  far  to  be  reversed.  Accordingly, 
most  of  the  landlords  adopted  another 
remedy,  which  has  been  called  by  Thorold 
Rogers  the  "  land  and  stock  lease."  By 


1 6    Rents t   Wages,  and  Profits  in  Agriculture 

this  plan  the  landlord  let  not  only  the 
land,  but  the  stock  and  capital  of  all 
kinds  necessary  to  work  the  land.  In  this 
way  the  serf  became  a  tenant  farmer,  with 
this  difference,  that  he  did  not  provide  the 
capital.  The  system  was  thus  very  like 
the  metayer  system  that  still  prevails  over 
large  areas  of  Europe,  and  still  more  like 
the  "share"  system  of  the  United  States. 

It  differed  from  the  metayer  system  in 
that  the  rent  was  not  a  customary  part 
of  the  produce,  but  a  money  payment 
which  might  be  varied  on  the  lapse  of  a 
lease.  In  the  course  of  time  the  more 
industrious  and  enterprising  of  these  new 
tenants  were  able  to  buy  the  stock  from 
the  landowners,  and  in  many  cases  they 
also  bought  the  land  subject  to  certain 
payments,  which  represented  the  old 
burdens  and  the  old  feudal  obligations. 
But  as  we  are  only  concerned  with  the 


History  of  Agricultural  Rent  in  England    17 

progress  of  rents,  we  may  leave  these  small 
owners  on  one  side. 

With  this  method  of  tenant  farming 
cultivation  in  common  began  to  lose  its 
hold.  No  progress  was  possible  when  all 
the  land  was  cultivated  in  the  same  slovenly 
way,  with  exactly  the  same  crops  year  after 
year.  Owing  to  the  progress  of  the  woollen 
manufacture  on  the  one  side,  and  the 
greater  expense  of  landlord  cultivation  of 
arable  on  the  other,  encouragement  was 
given  to  the  creation  of  sheep  farms. 
Large  tracts  of  land,  formerly  arable, 
were  converted  into  pasture  for  sheep. 
This  first  great  period  of  enclosures  lasted 
about  sixty  years — -from  say  1470  to  1530. 
The  enclosures  were,  of  course,  not  uni- 
versal —  and  not  all  for  sheep  -  -  but  the 
sheep  farming  led  to  the  eviction  on  a 
large  scale  of  the  rural  population  formerly 
engaged  in  agriculture.  The  landowners 


1 8    Rents^   Wages  >  and  Profits  in  Agriculture 

were  often  able  to  get  back  the  land 
which  was  held  as  copyhold — that  is,  the 
form  of  property  I  have  described  with 
the  feudal  and  customary  burdens.  And 
in  any  case  they  need  not  renew  the  yearly 
tenancies. 

I  may  mention  at  this  point  also  what 
might  have  been  taken  earlier,  namely, 
that  besides  the  three  large  open  arable 
fields,  the  village  community  had  certain 
customary  rights  over  the  waste,  as  it  was 
called — that  is,  the  tract  of  uncultivated 
land  which  lay  around  the  open  fields. 
Besides  this,  they  had  shares,  to  a  custom- 
ary amount,  in  the  hay  of  the  permanent 
meadows.  Legally — that  is,  by  the  techni- 
cal law — these  customary  rights  depended 
solely  on  the  will  of  the  lord  of  the  manor, 
and  might  at  any  time  be  cut  away  or 
restricted.  And  in  the  period  I  am  now 
touching  on,  some  of  the  landlords  carried 


History  of  Agricultural  Rent  in  England    19 

their  legal  rights  to  an  extreme.  They 
suddenly  dispossessed  the  people  of  these 
customary  rights  over  the  waste  and 
commons.  Fortunately,  at  the  same  time, 
the  beginnings  of  manufactures  in  the 
towns  required  more  labour,  and  after  the 
trouble  caused  by  the  transition,  it  may  be 
said  that,  on  the  whole,  the  prosperity  and 
power  of  the  nation  increased.  In  time,  also, 
the  natural  balance  was  effected  between 
sheep  and  corn,  and  a  system  of  mixed 
farming  took  the.  place  of  the  old  arable 
cultivation  in  common. 

From  the  economic  point  of  view,  the 
modern  period  may  be  said  to  begin  with 
the  reign  of  Elizabeth,  and  by  the  end  of 
that  reign,  the  modern  system  of  letting 
land  to  tenants  for  a  money  rent  was  well 
established.  The  chief  points  of  contrast 
with  the  mediaeval  period,  beyond  those 
already  noted,  are  that  a  larger  part  of  the 


2O    Rentsy  Wagesy  and  Profits  in  Agriculture 

produce  is  now  sold  for  consumption  in  the 
towns,  which  had  increased  at  the  expense 
of  the  country  in  population.  The  farming 
is  carried  on  more  for  profit  and  less  for 
consumption  on  the  estate.  We  observe 
also,  that  at  the  end  of  this  reign  (1603) 
complaints  begin  to  be  frequent  that  land- 
lords are  absentees  from  their  estates,  and 
that  their  rents  are  expended  in  London 
and  not  in  the  country.  So  much  was  this 
the  case,  that  on  the  accession  of  James  II. 
a  royal  proclamation  was  issued,  stating 
that  the  King  will  be  justly  offended  with 
those  who  stay  about  London  or  the  Court 
unless  they  are  ordinary  servants  of  the 
King,  and  thereby  neglect  their  duties  in 
the  country. 

Additional  rates  were  often  imposed  on 
absentees,  and  generally  it  was  impressed 
on  the  landlords  that  they  had  certain 
duties  in  the  way  of  local  government  to 


History  of  Agricultural  Rent  in  England    2 1 

perform.  With  the  modern  period  also, 
we  find  complaints  beginning  about  the 
insecurity  of  the  tenants'  capital  and 
the  enhancements  of  rents  when  any 
improvements  are  made. 

These  and  other  facts  indicate  the  abuses 
connected  with  the  extension  of  the  money 
power.  But  on  the  other  hand,  we  have 
also  the  beginnings  of  a  change  in  the 
nature  of  rent,  that  has  had  most  important 
consequences  on  the  development  of  English 
agriculture. 

Landlords  began  to  find  it  remunerative 
to  sink  capital  in  land  in  order  to  increase 
the  rent ;  and  accordingly,  rent  comes  to 
partake  of  the  nature  of  profits,  and  no 
longer  to  be  derived  either  from  the  exac- 
tions of  monopoly,  as  in  the  typical  manor, 
or  simply  from  the  mere  use  of  the  natural 
powers  of  the  soil  before  improvements 
are  made. 


22     Rents,   Wages,  and  Profits  in  Agriculture 

With  the  seventeenth  century  we  have 
great  improvements  effected  by  the  land- 
lords in  drainage.  To  take  an  example : 
A  proprietor  named  Rowland  Vaughan 
published  an  account  of  the  drainage 
operations  he  carried  out  on  his  estate  in 
Herefordshire  in  1610,  under  a  curious  and 
lengthy  title,  beginning  with  a  reference 
to  his  most  approved  and  long  experienced 
waterworks,  and  ending  with  a  phrase 
showing  that  the  waterworks  would  in- 
crease the  fertility  of  certain  lands  by  ten 
for  one.  And  he  gives  an  example  of 
certain  of  his  own  lands  which  had  been 
let  at  ^"40  a  year,  and  given  up  by  the 
tenant  as  too  dear,  being  made  worth  ^"300 
a  year  by  these  new  methods  of  draining. 
At  the  same  time,  the  profit  to  be  made 
by  improving  land  led  the  moneyed  men 
of  the  cities  to  purchase  land,  e.g.,  this 
Vaughan ;  and  as  Adam  Smith  points  out, 


History  of  Agricultural  Rent  in  England    2$ 

they  applied  business  methods,  and  in  this 
way  the  commerce  of  the  towns  led  to  the 
improvement  of  the  country.  On  the  other 
hand,  these  new  men,  with  their  mercantile 
views,  had  little  of  the  traditional  ideas 
of  the  responsibilities  of  the  landlord  as 
regards  local  government,  and  of  his  being 
generally  responsible  for  the  welfare  'of 
the  inhabitants  of  the  parish. 

At  this  time  the  improvements  which 
attracted  most  capital  and  enterprise  were 
the  reclamations  of  waste  lands,  and  especi- 
ally the  lands  which  were  liable  to  be 
inundated  by  floods.  This  was  the  case 
notably  in  the  fen  counties,  and  also  in 
the  lands  lying  in  the  basins  of  the  slow- 
moving  streams  of  the  Midlands.  The  use 
of  embankments  may  in  some  cases  be 
traced  back  to  the  time  of  the  Roman 
occupation,  and  all  through  the  Middle 
Ages  we  find  examples  of  the  adjustment 


24    Rents,   Wages,  and  Profits  in  Agriculture 

of  the  expenses  of  the  repairs  of  these 
permanent  works  by  commissioners  ac- 
cording to  the  value  obtained  by  the 
lands — an  early  instance  of  the  imposition 
of  rates  according  to  the  principle  of  better- 
ment. But  on  the  whole,  the  works  were 
not  sufficient,  and  were  not  well  enough 
kept  up. 

At  the  beginning  of  the  seventeenth  cen- 
tury, however,  greater  powers  were  obtain- 
able by  law,  by  companies  of  adventurers, 
for  the  reclamation  of  lands,  so  that  they 
could  compel  the  owners  to  sell  them  the 
lands  they  required  for  the  construction 
of  their  big  drains  and  levels,  just  as 
at  present  railways  obtain  powers  of 
compulsory  purchases. 

As  a  rule,  these  enterprises  were  too 
great  to  be  undertaken  by  private  people. 
And  even  the  companies  at  first  often 
failed  to  make  a  profit,  and  had  to 


History  of  Agricultural  Rent  in  England    25 

abandon  the  works.  But  ultimately  these 
endeavours  were  successful,  and  thousands 
of  acres  of  land  were  reclaimed,  either  by 
new  works  or  by  the  restoration  of  the 
old  embankments. 

By  far  the  most  interesting  of  all  these 
cases  is  that  of  the  reclamations  begun  by 
Francis,  the  fourth  Earl  of  Bedford,  in  1630. 
You  will  find  an  account  in  one  of  the 
most  interesting  and  instructive  books  ever 
written  on  the  economics  of  agriculture. 
I  refer  to  the  book  entitled:  "A  Great 
Agricultural  Estate:  being  the  story  of  the 
origin  and  administration  of  Woburn  and 
Thorney,"  by  the  Duke  of  Bedford.  This 
book  was  based  on  a  speech  made  by  the 
Duke  in  1896.  As  indicating  the  value  of 
the  work,  I  may  say  that  in  an  appendix 
(2)  are  given  accurate  accounts  of  the 
expenditure  and  the  revenue  of  the  two 
estates  named  from  1816  to  1896,  whilst 


26    Rents,   Wages,  and  Profits  in  Agriculture 

a  full  general  account  is  given  from  the 
seventeenth  century.  Before  I  finish,  I  shall 
have  to  refer  to  this  book  in  connection 
with  the  nineteenth  century  and  the  present 
day,  but  at  present  I  use  it  as  evidence 
of  the  agricultural  enterprise  of  the  great 
landlords  in  the  seventeenth  century.  The 
Earl  of  Bedford  of  that  day,  and  his 
associates,  spent  in  three  years  over  ^"100,000, 
and  after  all  failed.  His  enterprise  was 
also  unpopular,  because  he  employed  a 
famous  Dutchman,  Vermuyden  (we  still 
have  a  big  drain  called  by  his  name 
in  the  fens),  and  this  Dutchman  brought 
over  foreign  labour.  The  fen  -  men  also 
complained  of  the  loss  they  incurred  by 
the  drainage  in  destroying  the  natural 
products  of  the  fens  in  the  shape  of  eels 
and  wild  fowl.  The  works  were  made 
over  to  the  King,  but  after  the  fatal  year 
of  1649,  the  next  Earl  of  Bedford  became 


History  of  Agricultural  Rent  in  England    2j 

the  undertaker  of  the  Company,  and  he 
was  to  get  95,000  acres  for  himself  out 
of  the  whole  lands  reclaimed. 

It  is  impossible  to  go  further  into  the 
details.  The  general  result  may  be  indi- 
cated by  two  or  three  sentences  from  the 
book  itself.  "If  ever,"  says  the  present 
Duke,  "  there  was  an  estate  to  which 
collectivist  ideas  regarding  land  are  not 
applicable,  it  is  Thorney.  Only  300  acres 
of  culturable  land  came  to  the  house 
of  Bedford  on  the  dissolution  of  the 
monasteries.  The  remainder  of  the  lordship 
was  won  from  the  sea  and  the  swamps 
by  patriotic  enterprise,  hard  work,  and 
lavish  expenditure." 

This  is,  of  course,  in  magnitude  and  in 
kind  a  case  of  exceptional  interest,  but  on 
a  lesser  scale  and  in  different  ways,  from 
the  seventeenth  century  onwards,  the  great 


28    Rents ,   Wages,  and  Profits  in  Agriculture 

landowners  of  England  became  also  great 
improvers. 

In  the  next  century — the  eighteenth — the 
wealthy  landowners  were  keenly  interested 
in  new  methods  of  cultivation  and  in 
improved  implements  and  buildings,  and 
their  efforts  were  eventually  seconded  by  a 
growing  class  of  substantial  tenants,  or  we 
may  say  scientific  farmers. 

But  the  lead  was  taken  by  the  spirited 
proprietors,  who  had  to  contend  with  the 
time-honoured  prejudices  of  those  who  had 
always  practised  the  traditional  methods. 
In  this  century  we  have  new  roots  and 
grasses  introduced,  and  a  better  system  of 
rotation  and  of  tillage.  In  connection  with 
the  adoption  and  extension  of  these  im- 
provements, the  great  landholders  found  it 
expedient  to  consolidate  holdings,  and  in 
many  cases  large  farms  were  made  by  the 
amalgamation  of  the  smaller. 


History  of  Agricultural  Rent  in  England    29 

Towards  the  end  of  the  century  another 
great  movement  began  for  the  enclosure  of 
the  open  or  common  land  that  still  survived 
in  large  quantities  in  some  parts  of  the 
country.  The  main  object  of  the  enclosures 
at  this  time  was  to  allow  of  the  adoption 
of  the  new  methods.  In  the  open  fields, 
with  the  traditional  simple  cultivation,  any 
improvement  was  impossible.  There  is  no 
doubt  that  in  the  process  of  these  enclosures 
the  small  farmers  and  proprietors  suffered. 
In  the  redistribution  and  the  enclosing  of 
the  land,  heavy  legal  expenses  were 
involved,  beginning  with  the  necessary  Act 
of  Parliament,  and  these  expenses  were 
proportionately  heavier  to  the  smaller 
people,  and  many  were  obliged  to  sell 
their  land,  and  if  tenants,  their  holdings 
were  consolidated.  The  small  people  also 
lost,  as  regards  the  various  rights  of  common 
that  still  survived. 


3O    Rents,  Wages,  and  Profits  in  Agriculture 

But  regarded  from  the  national  point  of 
view,  on  the  whole,  the  result  of  the  im- 
provements and  of  the  enclosures  was  to 
add  very  greatly  to  the  agricultural  produce 
of  the  country.  A  good  deal  of  this  increase 
was  due  to  the  improvements  of  various 
kinds  effected  by  the  landlords,  and 
naturally  from  this  cause  only  there  was 
a  considerable  rise  in  rents.  The  great 
advocate  of  improvements,  and  the  writer 
who  has  given  the  most  detailed  accounts 
of  the  changes  effected,  is  Arthur  Young,  a 
most  remarkable  man  in  every  way,  and  a 
very  curious  personality.  He  lived  to  a 
great  age,  and  wrote,  as  well  as  the  famous 
tours  in  France,  in  different  parts  of  England 
and  in  Ireland,  masses  of  pamphlets  and 
articles.  His  tour  in  Ireland,  republished  a 
few  years  ago,  ought  to  be  read  by  everyone 
who  would  understand  the  origin  of  the 
Irish  economic  grievances.  But  this  is  a 


History  of  Agricultural  Rent  in  England    31 

digression.  Young,  however,  gives  an 
account  of  the  rise  in  rent  in  England  at 
the  end  of  the  eighteenth  century,  and  he 
shows  by  actual  cases  that  whilst  the  old- 
fashioned  farmers  could  not  pay  their  rents 
in  spite  of  the  labour  of  the  other  members 
of  their  family,  and  often  themselves,  at 
other  industries  (such  as  spinning  and 
weaving),  the  new  farmers  were  taking  the 
land  at  higher  rents  and  earning  large 
profits  in  addition.  The  small  farmers  were 
again  hit  by  the  industrial  revolution  which 
displaced  the  home  industries  by  machinery 
in  factories. 

It  is  no  doubt  true  that,  at  the  end  of  the 
eighteenth  century  and  the  beginning  of  the 
nineteenth,  the  very  great  rise  that  took 
place  in  rents,  sometimes  fivefold,  was  not 
due  entirely  to  improvements  and  the 
increase  of  produce.  There  was  also  the 
succession  of  bad  seasons,  and  as  the 


32    Rents,  Wages,  and  Profits  in  Agriculture 

country  was  practically  dependent  on  its 
own  supplies,  the  rise  in  prices  was  much 
greater  than  the  loss  in  produce.  The 
population  was  growing  in  the  towns ;  the 
war  increased  the  expenses  of  freight  and 
insurance ;  other  countries  also  had  defective 
harvests,  and  often  prohibited  exports,  so 
that,  altogether  apart  from  the  Corn  Laws, 
to  which  the  high  prices  are  often  entirely 
ascribed,  prices  must  have  been  high,  and 
of  course  rents  depend  as  much  on  the 
prices  as  on  the  amount  of  the  produce. 

The  first  half  of  the  nineteenth  century, 
say  up  to  the  repeal  of  the  Corn  Laws, 
was  marked  by  very  great  improvements 
in  agriculture  largely  under  the  influence 
of  the  landlords ;  but  rents  fell,  somewhat 
owing  to  the  fall  in  prices  which  took 
place  after  the  conclusion  of  the  great 
war. 

The  repeal  of    the    Corn  Laws  did  not 


History  of  Agricultural  Rent  in  England    33 

have  the  effect  anticipated  of  a  great  and 
immediate  fall  in  rents.  The  costs  of 
transport  were  still  great,  the  foreign  wheat- 
lands  were  only  partially  opened  up,  and 
the  town  population  of  this  country  was 
rapidly  increasing. 

Up  to  the  early  seventies  there  was  little 
fall  in  the  price  of  corn ;  whilst  as  regards 
other  forms  of  produce,  there  was  in  most 
cases  a  considerable  rise.  At  the  same  time, 
also,  the  improvements  in  agriculture  con- 
tinued, and  of  course  the  amount  of 
produce  per  acre  increased,  and  the  expenses 
did  not  increase  in  proportion. 

During  this  period,  also,  the  tenants  more 
and  more  took  an  active  part  in  the  im- 
provement of  agriculture.  And  with  this 
increase  of  enterprise  on  their  part,  greater 
security  was  given  by  the  landowner  for 
the  investment  of  capital — in  Scotland  by 

the    method    of    improving    leases,    and    in 

c 


34    i&ntst  Wages,  and  Profits  in  Agriculture 

England  by  keeping  up  the  old  tradition 
of  moderate  rents  and  practical  fixity  of 
tenure  so  long  as  the  land  was  well 
treated. 

After  about  1875  a  period  of  depression 
set  in,  so  far  as  rents  are  concerned,  the 
great  and  sufficient  cause  being  the  immense 
cheapening  of  transport,  and  at  the  same 
time,  the  great  development  of  agriculture 
on  a  large  scale  in  new  countries.  The  de- 
pression has  affected  agriculture  generally, 
but  rents  have  suffered  most.  Not  only  have 
money  rents  fallen,  but  in  many  cases 
reductions  have  been  made  in  addition  and 
arrears  have  been  written  off. 

At  the  same  time,  greater  security  has 
been  afforded  to  the  tenants  by  the  Agri- 
cural  Holdings  Acts,  and  the  tenants  have 
protected  themselves  by  refusing  to  take 
long  leases. 

The    burdens    of    rates    and    taxes    have 


History  of  Agricultural  Rent  in  England    35 

greatly  increased  in  the  last  twenty  years 
without  any  corresponding  gain  to  agri- 
culture. All  these  sources  of  increased 
expense  have  diminished  the  surplus 
available  in  the  form  of  net  rent. 

So  far  as  the  nineteenth  century  is 
concerned,  what  I  have  described  in  general 
language  and  in  the  roughest  outline  may 
be  read  in  the  history  of  the  great  estate 
by  the  Duke  of  Bedford.  You  have  tables 
from  1816  to  1896  giving  all  the  informa- 
tion required  to  trace  the  changes  in  rents, 
both  the  gross  and  the  nominal  rent,  and 
also  the  real  net  surplus — if  any — for  in  the 
end  it  seems  to  vanish  entirely. 

I  will  give  one  or  two  significant 
figures  first  about  the  gross  rental 
received.  The  average  annual  rental 
(gross)  received  from  1816  to  1835 
(twenty  years)  was  £20,000;  from  1836  to 
1845,  it  was  about  £24,000 ;  in  the  next 


36     Rents,   Wages,  and  Profits  in  Agriculture 

ten  years — 1846  (repeal  of  the  Corn  Laws)  to 
1855 — it  rose  about  £2,000,  to  £26,000  (i.e., 
gross).  From  1855  to  1875  the  average 
annual  gross  rent  rose  to  £35,000;  but 
from  1876  to  1895  the  average  annual  gross 
rental  received  fell  to  £27,000. 

But  the  mere  gross  rental  is  of  course 
quite  misleading ;  though  with  improving 
agriculture  and  stable  prices  it  no  doubt 
implies  a  corresponding  rise  in  the  net 
income.  For  the  first  twenty  years — 1816 
to  1835 — the  net  income  was  £9,000 ;  and 
in  the  next  twenty  years — 1836  to  1855— 
it  rose  to  £11,000  per  annum. 

But  taking  1856  to  1875  (the  next  twenty 
years),  the  net  income  had  fallen  to  £8,000, 
and  this  in  spite  of  the  high  rents 
obtained  from  1869  to  1874,  tne  average 
net  income  being  about  £14,000  per 
annum  for  these  years. 

From    1876    to    1895    tne    average    net 


History  of  Agricultural  Rent  in  England    37 

income  is  only  £5,000  out  of  a  gross  rental 
of  £27,000.  And  during  the  last  two 
years  given  in  the  tables — 1894  and  1895 — 
though  the  gross  rentals  are  £18,000 
and  £20,000,  there  is  in  the  first  year  a 
deficit  of  nearly  £2,000,  and  in  the  second, 
in  spite  of  the  rise  in  the  gross  rental,  there 
is  still  a  deficit  of  some  £400. 

I  hope  these  figures  have  not  confused 
the  main  idea.  It  is  not  easy  to  take  in 
the  meaning  of  figures  with  the  ear,  and 
it  often  requires  all  the  power  of  the  eye 
and  close  attention.  But  in  this  case  the 
results  are  so  surprising  that  the  general 
trend  cannot  be  mistaken.  And  if  you 
look  into  the  tables,  you  will  find 
additional  most  interesting  details.  You 
will  find  that  the  public  burdens  increase 
with  the  gross  rental;  you  will  find  that 
more  and  more  of  the  rent  received  is 
expended  on  the  estate,  until  the  net 


38    Rents )   Wages,  and  Profits  in  Agriculture 

rental  of  some  £"n,ooo  has  entirely 
vanished,  and  the  deficit  on  the  estate,  as 
a  going  concern,  has  to  be  made  up  out 
of  other  sources  of  income. 

And  now  a  few  words  by  way  of  a 
general  conclusion.  Recall  the  typical 
estate  with  which  we  began  in  the  early 
Middle  Ages,  and  I  may  add  one  or  two 
touches  of  further  details  to  the  picture. 
The  lord  of  the  manor  exacted  through 
his  steward  the  utmost  the  estate  could 
bear ;  he  took  all  the  labour  he  needed 
and  all  the  produce,  besides  a  bare  mini- 
mum. And  apart  from  these  onerous 
payments  in  labour  and  in  produce,  the 
villein  had  scarcely  any  of  the  elements 
which  we  consider  essential  to  personal 
freedom. 

Mainly  through  the  accident  of  the  Black 
Death  many  of  the  villeins  obtained  their 
freedom  and  became  either  tenant  farmers 


History  of  Agricultural  Rent  in  England    39 

or  yeomen.  Two  centuries  later  the  first 
set  of  enclosures  produced  over  England  the 
same  outcry,  as  in  the  nineteenth  century 
in  Scotland,  over  the  expulsion  of  men  for 
sheep  and  the  sacrifice  of  the  customary 
rights  of  the  peasantry.  Gradually,  how- 
ever, the  landowners  became  themselves 
improvers  of  the  land,  and  up  to  the 
nineteenth  century  they  took  the  lead.  In 
the  course  of  that  century,  in  England,  the 
tenant  farmers  gradually  obtained  the  repeal 
of  the  laws  that  still  survived  in  favour  of 
the  owner,  and  the  enactment  of  laws  in 
favour  of  the  security  of  their  own  capital. 
But  coincidently  with  this,  taking  the 
average,  the  great  landowners  continued 
to  sink  money  in  their  land,  and  to  take 
the  first  shock  of  agricultural  depression 
by  the  remission  of  rents.  So  that  in 
some  cases,  as  in  the  Bedford  estates, 
though  there  is  nominally  a  large  gross 


4O    Rents,   Wages>  and  Profits  in  Agriculture 

rental,  there  is   actually  a  net  loss  on  the 
estate  (agricultural). 

The  villein,  or  serf,  of  the  Middle  Ages 
has  become  a  substantial  tenant  farmer,  and 
the  feudal  baron,  who  was  formerly  little 
better  than  a  slave- owner  as  regards  the 
masses  of  the  cultivators,  has  become,  in 
many  cases,  a  model  philanthropist.  In  the 
whole  range  of  social  history  there  is 
perhaps  no  such  striking  evidence  of  real 
progress  as  in  connection  with  the  changes 
in  the  nature  and  in  the  amount  of  the 
rent  paid  for  agricultural  land. 


CHAPTER  II 

AGRICULTURAL   CAPITAL  AND    PROFITS 

CAPITAL  in  modern  industrial  societies 
assumes  so  many  forms  and  has  so  many 
functions  that  it  is  almost  impossible  to 
frame  a  definition  which  will  cover  all 
cases,  or  even  to  indicate  in  short  compass 
the  results  of  scientific  analysis.  If,  how- 
ever, we  confine  our  attention  to  agricul- 
tural capital,  and  adopt  the  historical 
method,  most  of  these  difficulties  disappear. 
Under  the  most  primitive  conditions, 
capital  appears  as  a  necessary  agent  of 
agricultural  production,  just  as  much  as 
labour  and  the  land  itself.  The  progress 

in   agricultural   production   may   be    traced 

42 


Agricultural  Capital  and  Profits  43 

by  changes  in  the  nature  and  amount  of 
the  capital  required.  In  the  present  chapter 
I  shall  try  to  indicate  the  great  landmarks 
in  agricultural  progress  in  England  from 
the  point  of  view  of  the  part  played  by 
capital.  To  some  extent  the  same  facts 
will  be  appealed  to  as  in  dealing  with 
rent  and  progress ;  but  the  subject  is  so 
large  that  different  details  can  be  taken 
by  way  of  illustration. 

We  may  begin,  as  with  rent,  with  the 
manorial  economy  of  the  mediaeval  period. 
The  first  point  we  notice  is,  that  at  first 
the  serfs  may  be  said  to  have  provided 
the  lord  of  the  manor  with  the  capital 
necessary  to  work  his  demesne  land,  or 
what  corresponds  to  his  home  farm.  He 
had  no  need  for  circulating  capital  in  the 
form  of  money  to  pay  wages,  because  he 
obtained  all  the  labour  required  through 
compulsion  or  custom,  It  is  true  that  for 


44    Rents,   Wages^  and  Profits  in  Agriculture 

some  forms  of  labour  the  villein  received 
a  certain  amount  of  food  and  other  neces- 
saries, but  the  manor  was  in  the  typical 
case  self-contained  and  self-sufficing,  and 
the  villein  may  be  looked  on  as  obtaining 
a  certain  share  of  the  annual  produce 
directly,  though  the  share  in  the  distribu- 
tion was  determined  by  the  custom  of  the 
manor.  As  already  seen,  the  principal 
payment  in  return  for  the  labour  was  the 
right  to  occupy  so  much  land.  Besides 
the  work  exacted  in  connection  with 
ploughing,  hay  -  making,  harvesting,  etc., 
we  have  various  forms  of  labour  remuner- 
ated by  so  much  land  :  there  was  the  aver- 
land,  or  lod-land,  granted  to  those  who 
performed  the  duties  comprised  under 
averagium  (horse  -  work  —  from  offer  or 
aver,  a  horse),  including  the  carriage  of 
firewood,  carting  the  seignorial  produce, 
etc, ;  we  find  cheese  -  land  for  those  who 


Agricultural  Capital  and  Profits  45 

provided  dairy  produce  for  the  manorial 
household,  scythe  -  land  for  the  mowers, 
and  so  on. 

Again,  as  regards  what  we  should  now 
call  the  auxiliary  capital,  the  villeins  pro- 
vided ploughs,  oxen,  horses,  and  carts  in 
connection  with  the  work  done  for  the 
lord  of  the  manor.  Accordingly,  we  find 
that  the  villein  was  not  allowed  to  sell 
an  ox  without  the  consent  of  the  lord  or 
his  reeve. 

With  regard  to  the  land  cultivated  by 
the  villeins  for  themselves,  perhaps  the 
most  noticeable  point  is,  that  the  nature 
of  the  capital  required  involved  a  curious 
system  of  co-operation,  as  already  noticed 
in  the  first  chapter.  The  great  manorial 
plough  was  drawn,  in  general,  by  eight 
oxen,  and  as  Mr.  Seebohm  has  so  graphi- 
cally shown,  the  strips  in  the  great  open 
fields  were  at  first  distributed  according  to 


46     Rents,   Wages,  and  Profits  in  Agriculture 

the  contributions  made  in  oxen  or  equipment 
or  labour. 

In  the  early  mediaeval  period  everyone, 
from  the  king  downwards,  was  interested  in 
the  cultivation  of  land,  and  the  royal 
revenues  were  first  of  all  collected  in 
produce.  The  great  barons  were  also  great 
landowners  and  great  farmers.  The  typical 
manor  was  a  large  estate,  and  the  manorial 
farming  was  on  a  large  scale.  For  this 
purpose  large  capitals  were  required — but 
they  were  not  in  the  form  of  money. 

In  this  period  it  is  worth  noting  that  the 
capital  employed  on  the  land  was  worth 
much  more  than  the  land  itself.  We  can,  of 
course,  only  make  the  calculation  by  giving 
money  values  to  the  land  and  the  stock. 
And  it  must  be  observed  that  money  was 
used  for  the  purpose  of  measuring  values  to 
a  much  greater  extent  than  it  was  used  for 
purposes  of  exchange.  And  besides,  the 


Agricultural  Capital  and  Profits  47 

process  of  commutation  had  begun  in  very 
early  times,  although  the  effects  were  not 
seen  fully  till  after  the  Black  Death.  In 
the  thirteenth  century,  according  to  the 
calculations  of  Rogers,  the  value  of  the 
rent  of  ordinary  arable  land  was  6d.  an 
acre,  and  the  capital  value  of  such  land 
was  about  6s.  to  8s.  an  acre  ;  but  the 
amount  of  stock  live  and  dead  that  was 
required  was  worth  i8s.  to  293.  an  acre,  or 
about  three  times  as  much. 

As  Rogers  observes,  this  disproportion  in 
the  value  of  land  and  stock  had  a  consider- 
able effect  on  the  distribution  of  land  itself. 
According  to  feudal  custom,  the  rule  of 
primogeniture  governed  the  descent  of  the 
land  itself  ;  but  personal  property,  including 
capital  on  the  land,  was  divided  amongst 
the  children.  In  this  way,  the  large  estates 
were  often  broken  up  by  subinfeudation,  and 
we  often  hear  of  opulent  younger  sons. 


48     RentS)   WageS)  and  Profits  in  Agriculture 

It  is  to  this  custom  of  landlord  cultivation 
on  a  large  scale  that  we  may  trace  what  is 
still  considered  the  chief  peculiarity  of  the 
English  system  of  landlord  and  tenant, 
namely,  the  obligation  on  the  part  of  the 
landowner  to  effect  permanent  improve- 
ments and  to  make  the  necessary  repairs  ; 
and  to  begin  with,  this  obligation  extended 
to  making  good  any  extraordinary  losses  of 
stock — especially  sheep. 

But  already  I  have  rather  anticipated  the 
actual  course  of  progress.  The  system  of 
letting  land  to  tenant  farmers,  as  distinct 
from  the  villeins,  was  greatly  influenced  by 
the  progress  of  commutation  ;  although 
we  find  in  very  early  times  free  tenants 
occupying  servile  land  and  rendering  the 
customary  services. 

The  progress  of  commutation,  and  also 
the  extension  of  the  tenant  system  of  culti- 
vation, was  greatly  accelerated  by  the 


Agricultural  Capital  and  Profits  49 

Black    Death.      The    natural    rise    in    the 
price  of  labour  made  landlord  cultivation 
unprofitable  unless  forced  labour  could  be 
exacted,  but  in  the  scarcity  this  was  found 
to  be  impossible.     It  was  to  the  economic 
interest    of    every    landowner    to    attract 
labour,    and    the    most    effective   way   was 
to    offer    higher    money  wages    than  were 
customary.    The  proclamations  and  statutes, 
intended  to  enforce  the  old  customary  rates, 
were    disregarded  —  sometimes    with    false 
entries    in    the    manorial    accounts.      The 
landowners  found  their  remedy  in  the  land 
and  stock  lease — already  briefly  mentioned 
in   the  last  chapter.      The  essence  of  this 
plan  was    to    let    the   stock  that  was  re- 
quired with  the  land.     It  was  a   develop- 
ment of  an  ancient  custom  of  letting  out 
particular  forms  of  stock,  especially  cows — 
a  practice  which  survived  to   the   time  of 

D 


5O    Rents,   Wages,  and  Profits  in  Agriculture 

Arthur  Young  at  the  end  of  the  eighteenth 
century. 

The  stock  which  was  let  with  the  land 
was  carefully  recorded  on  the  lease,  and 
the  tenants  rendered  an  annual  audit,  and 
had  to  exhibit  their  stock  to  the  landlord's 
steward.  To  begin  with,  the  landowner 
generally  let  with  the  land  not  only  the 
necessary  live  and  dead  stock  required  on 
the  farm,  but  a  certain  amount  of  seed- 
corn,  and  sometimes  food,  etc.,  for  wages. 
All  this  the  tenant  covenants  to  restore  at 
the  end  of  the  lease,  in  good  condition, 
reasonable  depreciation  excepted,  at  a  fixed 
price  for  every  quarter  of  corn,  head  of 
cattle,  sheep,  poultry,  and  the  assessed 
value  of  the  dead  stock  let  with  the  farm. 
At  the  time,  this  form  of  lease  was  a 
necessity  to  both  landlord  and  tenant,  and 
an  advantage  to  both.  The  tenant,  out  of 
the  profit  obtained,  was  gradually  able  to 


Agricultural  Capital  and  Profits  51 

acquire  the  necessary  capital  for  himself, 
and  in  many  cases  to  buy  the  land.  The 
period  of  transition  during  which  this  form 
of  lease  prevailed  is  placed  by  Rogers  at 
seventy  years. 

The  general  result  was  that,  to  a  great 
extent,  the  villeins  were  displaced  by  tenant 
farmers  using  their  own  capital  and  by 
yeomanry  occupying  their  own  land.  By 
the  middle  of  the  fifteenth  century  both 
classes  had  become  quite  common.  The 
very  fact  that  the  land  and  stock  tenants 
in  time  were  able  to  become  owners  of 
the  capital,  and  sometimes  of  the  land, 
shows  that,  on  the  average  also,  they  must 
have  been  able  to  pay  the  rent,  and  in 
that  way  the  landlord  also  gained,  for  if 
he  had  tried  to  carry  on  with  the  bailiff 
cultivation,  the  increased  cost  of  labour 
would  have  involved  a  loss.  The  small 
tenant  and  his  family  provided  the  labour 


52    Rents,   Wages,  and  Profits  in  Agriculture 

required  on  the  farm,  and  very  often  they 
could  afford  time  to  take  additional  employ- 
ment at  the  high  wages  that  prevailed. 
There  were  cases,  no  doubt  (some  are  re- 
corded by  Rogers  in  detail),  in  which  the 
rent  fell  into  arrears,  and  we  find  examples 
of  arrears  being  written  off,  and  sometimes 
the  landlord's  share  in  the  risk,  especially 
as  regards  sheep,  more  than  balanced  the 
rent ;  but  on  the  average,  both  parties 
gained. 

Another  difficulty  of  the  landlord  arose 
from  the  legal  idea  of  rent.  A  farmer 
often  took  land  even  from  the  same  land- 
lord in  different  plots  for  different  periods. 
This  would  be  natural,  from  the  original 
scattered  nature  of  the  holdings ;  but  the 
legal  idea  was  that  each  particular  plot  of 
land  must  be  responsible  for  the  rent 
which  issued  out  of  it,  and  accordingly, 
arrears  of  rent  sometimes  accumulated 


Agricultural  Capital  and  Profits  53 

because  the  owner    could    not   tell  out   of 
which  portion  of  land  the  rent  issued. 

At  this  time  the  rent  that  was  exacted 
was  generally  the  old  customary  rent,  and 
was  very  moderate  in  amount.  The 
natural  consequence  was  that  there  was  a 
great  demand  for  land,  and  the  capital 
value  rose  considerably ;  or,  in  other 
words,  the  number  of  years  purchase  was 
increased. 

There  are  one  or  two  other  points  of 
interest  in  connection  with  the  transition 
from  the  method  of  landlord  cultivation 
to  that  of  tenant  farming.  As  the  land- 
owners no  longer  owned  the  stock  the  law 
of  primogeniture  ceased  to  be  modified  as 
it  used  to  be,  and  the  younger  sons  were 
left  poor  or  unprovided  for.  Rogers  calls 
attention  only  to  the  resulting  evils,  and 
speaks  of  these  younger  sons  as  law- made 
paupers  quartered  on  the  royal  revenues, 


54     Rents ,   Wages,  and  Profits  in  Agriculture 

and  asserts  that  useless  offices  were  pro- 
vided for  them  in  the  Court  or  the  army. 
But  on  the  other  side,  the  more  enterprising 
would  enter  into  the  professions  and  also 
into  trade,  and  later  on  this  spirit  of  enter- 
prise and  alliance  of  land  with  trade  had 
much  to  do  with  the  expansion  of  the 
English  colonies.  Another  result,  however, 
was  that  the  landowners,  now  being 
dependent  on  rent  and  not  on  the  profits 
of  agriculture  made  by  themselves,  began 
to  consider  their  own  economic  interests 
too  closely,  and  at  the  end  of  the  fifteenth 
century  we  have  complaints  of  the  exactions 
of  the  landlords  and  other  abuses,  especially 
in  connection  with  the  enclosures. 

1  have  dealt  at  some  length  with  the  land 
and  stock  lease  and  its  consequences,  partly 
because  it  was  of  great  historical  importance, 
being  indeed  the  main  instrument  in  a  great 
social  revolution,  but  also  because  it  has 


Agricultural  Capital  and  Profits  55 

often  occurred  to  me  that  in  some  cases 
some  adaptation  of  this  form  of  lease  might 
be  advantageous  under  present  conditions. 
We  are  told  on  all  sides  that  small  farms 
ought  to  be  increased  in  number,  but  that 
those  who  might  make  successful  farmers 
have  no  capital.  Leaving  on  one  side  the 
controversy  on  the  possibility  of  the  success 
of  small  farms  at  present  in  this  country, 
and  assuming  that  there  are  landowners 
willing  to  make  the  experiment,  and  also 
suitable  tenants,  the  farms  might  be  started 
with  a  land  and  stock  lease.1  There  are, 
however,  two  practical  difficulties  that  did 
not  exist  in  the  mediaeval  period.  In  the 
first  place,  the  mediaeval  peasant  was  content 
to  live  in  what  was  little  better  than  a 
mud  hovel  with  no  windows,  no  chimney, 

1  A  form  of  the  land  and  stock  lease  is  actually  in  use  in 
some  parts  of  the  United  States — e.g.,  in  Wisconsin.  See 
H.  C.  Taylor's  "Agricultural  Economics,"  p.  278. 


56     Rents )   Wages,  and  Profits  in  Agriculture 

no  water,  and  no  sanitation,  and  the 
accommodation  of  the  substantial  farmer 
was  little  better.  Then,  again,  there  were 
no  expensive  steadings  or  drains.  But  in 
another  respect,  there  is  reason  to  believe 
the  mediaeval  farmer  was  superior  to  his 
modern  representative.  Under  the  old 
landlord  system  of  cultivation,  most  accurate 
and  detailed  accounts  were  kept,  and  the 
practice  was  continued  when  the  system 
was  changed.  Rogers  gives  good  reasons 
for  supposing  that,  contrary  to  the  popular 
idea,  in  the  mediaeval  period  writing  and 
accounting  were  common  accomplishments, 
and  were  put  to  practical  use  in  farming. 
As  we  have  seen,  there  was  a  careful 
enumeration  of  the  stock  and  an  annual 
audit  and  valuation. 

Coming  back  from  this  digression,  we 
may  notice  next  the  effect  of  the  enclosures — 
that  is,  the  first  period  from  1470  to  1530. 


Agricultural  Capital  and  Profits  57 

The  tenant  farmers  wished  to  increase  their 
profits  and  the  landowners  their  rents,  and 
the  old  method  of  cultivation  in  common 
was  a  hindrance  to  both.  At  the  same 
time,  the  change  in  the  relative  values  of 
corn  and  wool  naturally  stimulated  sheep 
farming,  and  it  was  with  the  development 
of  this  industry  that  land  was  enclosed, 
common  rights  were  taken  away,  and  large 
numbers  of  the  rural  population  displaced. 
It  is  remarkable  that  under  these  influences 
the  old  system  of  cultivation  in  common 
was  not  displaced  to  a  much  greater  extent. 
It  is  probable,  however,  that  so  late  as 
the  beginning  of  the  eighteenth  century 
three-fifths  of  the  arable  land  of  the  country 
was  still  cultivated  in  common,  and  the 
second  period  of  enclosures,  which  finally 
got  rid  of  the  old  system,  extended  from 
1770  to  the  middle  of  the  nineteenth  century. 
The  aspect  of  the  question — z>.,  of  the 


58     Rents,   Wages,  and  Profits  in  Agriculture 

change  from  cultivation  in  common — which 
calls  for  special  notice  in  dealing  with  capital 
and  profits,  is  the  effect  of  the  abandonment 
of  the  old  customs  on  the  relations  of 
landlord  and  tenant.  Under  the  old  system 
the  villein  had  fixity  of  tenure — at  what 
came  to  be,  in  time,  a  moderate  quit  rent 
of  a  mixed  kind  —  service,  produce,  and 
money.  There  were  no  changes  in  the 
methods  of  cultivation,  which  indeed  were 
impossible  with  cultivation  in  common. 
Under  the  new  system,  especially  after  the 
enclosures,  as  we  learn  from  the  work  of 
Fitzherbert  (1523),  the  tenants  in  some  cases 
suffered  from  insecurity  of  tenure.  The  land 
was  let  on  short  leases,  and  the  landlord 
could  raise  the  rents  on  any  improvement 
being  made.  It  was  calculated  that  land 
that  was  enclosed  even  with  the  old  methods 
of  cultivation  yielded  25  per  cent,  more  than 
the  land  in  the  open  fields,  and  consequently 


Agricultural  Capital  and  Profits  59 

could  pay  more  rent.1  A  rise  in  rent  was 
natural,  but  in  some  cases  it  was  pushed 
too  far. 

This  tendency  was  increased  by  the 
dissolution  of  the  monasteries  and  the 
partial  dispossession  of  the  guilds  of  their 
lands.  The  confiscated  lands  found  their 
way  into  the  hands  of  the  monied  classes — 
e.g.,  Sir  Thomas  Gresham  became  very 
wealthy  in  this  way  —  and  they  applied 
mercantile  ideas  with  the  view  of  making 
a  profit  from  their  purchases.  The  rough 
application  of  mercantile  ideas  to  agricul- 
ture has  often  proved  harmful,  or  at  least 
painful,  though,  on  the  other  hand,  there 
are  compensating  advantages,  as  Adam 
Smith  showed.  Rogers,  as  usual,  is  very 

1  As  noticed  above,  the  enclosures  of  this  period  were 
partly  for  the  sake  of  the  adoption  of  "convertible 
husbandry,"  and  not  exclusively  for  the  extension  of  sheep 
farms.  See  Cunningham's  "  Growth  of  English  Industry 
and  Commerce,"  vol.  i.,  p.  526. 


60     Rents y   Wages,  and  Profits  in  Agriculture 

severe  in  his  condemnation  of  what  he 
calls  the  rapacity  of  the  landlords  —  but 
even  on  his  own  evidence  his  judgment 
seems  overstrained.  We  must  remember 
that  about  the  middle  of  the  sixteenth 
century,  when  the  first  period  of  enclosures 
had  reached  its  term,  there  began  the  great 
rise  in  prices.  This  was  at  first  brought 
about  by  the  debasement  of  the  currency — 
but  after  the  currency  had  been  restored  by 
Elizabeth,  prices  were  kept  up  by  the  new 
silver  from  America.  With  the  general  rise 
in  prices  rents  ought  also  to  rise.  And  as 
Rogers  himself  points  out,  tenants  from  a 
distance  were  not  to  be  expected,  and 
tenants  on  the  spot  were  very  unwilling,  to 
accept  a  rise  in  rents  except  under  strong 
compulsion.  The  difficulty  that  was  felt 
in  raising  rents  in  a  fair  proportion  to  the 
rise  in  prices  was  specially  felt  by  certain 
corporations — e.g.,  the  Oxford  and  Cam- 


Agricultural  Capital  and  Profits  61 

bridge  Colleges.  To  remedy  this  difficulty 
it  was  enacted  in  1576  that  the  Colleges  of 
Oxford  and  Cambridge  (including  Eton 
and  Winchester)  should  receive  a  third  of 
their  rents  in  wheat  and  malt,  or  rather  in 
the  money  value  calculated  according  to 
the  market  prices  at  a  particular  time. 

Another  plan  which  was  generally 
adopted  was  to  impose  a  fine  on  the  re- 
newal of  a  lease.  Fines  of  this  kind  had 
been  customary  on  succession  to  the  villein 
holdings  either  by  inheritance  or  alienation, 
and  being  in  conformity  with  custom,  they 
were  submitted  to  in  the  case  of  leases. 

Rogers  also  points  out  that  there  was  all 
over  the  country  a  strong  feeling  against 
overbidding  the  sitting  tenant.  Seeing, 
then,  that  there  was  no  effective  competition 
on  the  part  of  possible  tenants  which  would 
raise  the  rents,  and  the  sitting  tenants 
themselves,  naturally,  and  by  the  influence 


62     Rents,   Wages^  and  Profits  in  Agriculture 

of  custom,  resisted  the  rise,  the  rapacity  of 
the  landlords  would  at  any  rate  be  held 
in  check. 

On  the  general  question  of  the  security 
of  the  tenant's  capital  at  this  time,  the 
opinion  of  Adam  Smith  seems  much  more 
in  accordance  with  the  facts.  He  observes 
("Wealth  of  Nations,"  Book  III.,  chap,  ii.) 
that  "the  farmers  in  England  had  much 
better  security  than  in  any  other  country, 
and  that  with  long  leases  they  were 
encouraged  to  make  improvements."  In 
England,  as  contrasted  with  other  countries, 
by  an  Act  of  14,  Henry  VII.,  the  tenant 
under  lease  was  protected  against  ejectment 
by  a  new  purchaser  or  successor.  And  in 
this  respect  he  says  :  "  The  security  of  the 
tenant  is  equal  to  that  of  the  proprietor." 
He  says  also  that  in  England  a  lease  for 
life  of  405.  a  year  value  is  a  free- 
hold, and  entitles  the  lessee  to  vote  for 


Agricultural  Capital  and  Profits  63 

a  member  of  Parliament ;  and  he  continues : 
— "As  a  great  part  of  the  yeomanry  have 
freeholds  of  this  kind,  the  whole  order 
becomes  respectable  to  their  landlords  on 
account  of  the  political  consideration  which 
this  gives  them."  And  then  we  have  this 
very  remarkable  passage :  "  There  is,  I 
believe,  nowhere  in  Europe,  except  in 
England,  any  instance  of  the  tenant 
building  upon  the  land  of  which  he  had 
no  lease,  and  trusting  that  the  honour  of 
his  landlord  would  take  no  advantage  of 
so  important  an  improvement.  Those  laws 
and  customs  so  favourable  to  the  yeomanry 
have  perhaps  contributed  more  to  the 
present  grandeur  of  England  than  all  their 
boasted  regulations  of  commerce  put 
together."  By  contrast,  he  says  that 
throughout  the  greater  part  of  Europe  the 
yeomanry  are  regarded  as  an  inferior  rank 
of  people,  even  to  the  better  sorts  of  trades- 


64     Rents,    WageS)  and  Profits  in  Agriculture 

men  and  mechanics  ;  and  as  a  consequence, 
in  these  countries  little  stock  is  likely  to 
go  from  any  other  profession  to  the 
improvement  of  land. 

More  capital  in  this  way  is  so  diverted 
in  Great  Britain  —  but  even  there,  he 
says,  "The  great  stocks  which  are  some- 
times employed  in  farming  have  generally 
been  acquired  in  farming — the  trade,  per- 
haps, in  which  of  all  others,  stock  is 
commonly  acquired  most  slowly."  After 
small  proprietors,  however,  in  Adam  Smith's 
opinion,  rich  and  great  farmers  are  in  every 
country  the  great  improvers.  The  passages 
I  have  quoted  are  from  a  general  survey  of 
the  progress  of  agriculture  in  Europe.  And 
they  show  that,  in  Adam  Smith's  opinion, 
from  the  end  of  the  mediaeval  period — or, 
we  may  say,  from  the  time  of  the  estab- 
lishment of  the  English  system  of  tenant 
farming,  down  to  his  time  (1776)  —  the 


Agricultural  Capital  and  Profits  65 

tradition  had  been  to  trust  to  the  good 
faith  of  the  landlord,  and  that  practically 
the  security  thus  afforded  to  the  tenants' 
capital  had  been  as  great  as  could  be 
reasonably  expected.  The  enclosures,  the 
dissolution  of  the  monasteries,  the  purchase 
of  the  old  acres  by  new  men,  the  rise  in 
prices,  and  the  increase  of  luxury  which 
mark  the  beginning  of  the  modern  period, 
no  doubt  for  a  time  disturbed  the 
relations  of  landlords  and  tenants,  but 
before  the  end  of  the  reign  of  Elizabeth 
the  tradition  of  good  fellowship  between 
landlord  and  tenant  had  been  thoroughly 
established. 

Certain  it  is  that  during  the  seventeenth 
century  agriculture  made  much  progress. 
This  was  partly  due  to  the  imitation  of 
Dutch  methods  in  the  rotation  of  crops 
and  the  cultivation  of  winter  roots.  But 
as  already  shown,  there  was  much  capital 


66     Rents,   Wages,  and  Profits  in  Agriculture 

devoted  to  drainage  and  the  general 
improvement  of  the  land. 

The  best  proof  of  the  progress  in  agri- 
culture is  the  fact  that  during  the 
seventeenth  century  the  population  of 
England  doubled.  It  could  not  have  been 
more  than  o,\  millions  at  the  end  of  the 
reign  of  Elizabeth ;  it  was  nearly  5 J 
at  the  accession  of  Queen  Anne. — (Rogers.) 
As  the  country  was,  up  to  the  last  quarter 
of  the  eighteenth  century,  self-supporting, 
and,  indeed,  an  exporter  on  balance  of 
corn,  the  rise  in  population  was  only 
possible  with  an  increase  in  the  agricultural 
produce. 

Still  more,  however,  is  the  eighteenth 
century  marked  by  improvements  in  agri- 
culture. One  chief  characteristic  was  the 
use  of  clover  and  rye  -  grass  and  the 
extension  of  artificial  pasture.  Writing  in 
1772,  Arthur  Young  said:  "I  do  not 


Agricultural  Capital  and  Profits  67 

imagine  above  half,  or  at  most  two-thirds, 
of  the  nation  cultivate  clover.  It  is  a 
surprising  number  of  years  that  are  necessary 
to  introduce  the  culture  of  a  new  plant." 
He  adds :  "  If  gentlemen  of  the  present  age 
had  not  assumed  a  spirit  in  agriculture 
vastly  superior  to  former  times,  I  much 
question  whether  that  excellent  vegetable, 
i.e.,  the  clover,  would  make  its  way  fairly 
through  the  island  in  a  thousand  years." 

But  agriculture  at  this  time  had  become 
the  reigning  taste.  The  pursuit  was 
universal.  The  profit  was  great  —  from 
14  to  20  per  cent,  on  the  capital  was 
common  (Rogers).  It  was  a  bye-industry 
with  those  who  had  other  callings, 
Physicians,  lawyers,  clergymen,  soldiers, 
sailors,  and  merchants  were  farmers  as 
well.  The  farming  tribe,  says  Young,  is 
now  made  up  of  all  ranks  from  a  duke  to 
an  apprentice.  This  fashion  continued  till 


68    Rents,   Wages,  and  Profits  in  Agriculture 

the  beginning  of  the  second  quarter  of  the 
nineteenth  century. 

The  rise  in  prices  that  took  place 
at  the  end  of  the  eighteenth  century 
of  course  gave  a  great  stimulus  to  this 
experimental  farming.  And  all  over, 
the  progress  in  improvements  was  so 
great  that  the  farmers  who  stuck  to  the 
old  methods  were  lost.  Under  the  com- 
petition for  land  that  now  became  effective, 
and  stimulated  by  the  rise  in  prices,  rents 
rose  greatly,  and  whilst  the  new  farmers 
paid  the  high  rents  and  made  fortunes,  the 
old-fashioned  were  unable,  even  with  the 
aid  of  other  bye- industries,  to  make  both 
ends  meet.  No  wonder  that  Young 
regarded  the  payment  of  a  high  rent  as 
the  greatest  aid  to  improvements  and  good 
husbandry. 

Coincidently  with   the   improvements   in 
tillage    and    the    adoption    of    roots    and 


Agricultural  Capital  and  Profits  69 

grasses,  there  were  also  great  improve- 
ments in  cattle  and  sheep.  This  is  shown 
directly  by  the  increased  weight  of  the 
cattle  and  sheep,  and  especially  by  the  high 
prices  that  began  to  be  paid  for  breeding 
stock. 

Here,  again,  the  landowners  were,  accord- 
ing to  Young,  the  pioneers  of  agricultural 
progress.  Rogers  calculates  that  the  pro- 
ductiveness of  agriculture  in  the  eighteenth 
century  was  four  times  that  of  the  thirteenth, 
both  as  regards  corn  and  stock. 

Young,  founding  on  the  evidence  of  his 
tours,  calculated  that  the  average  rent  of 
cultivated  land  all  over  England,  taking 
good  and  poor  together,  was  IDS.  an  acre. 
He  continually  urges  that  the  rental, 
especially  for  good  land,  is  too  low,  and 
surely  this  confirms  the  injustice  of  Rogers 
as  regards  the  rapacity  of  landlords. 
Young  says  that  on  the  best  land  the 


70    Rents,   Wages,  and  Profits  in  Agriculture 

profit  to  the  farmer  is  293.  an  acre — i.e., 
probably  25  per  cent,  on  the  capital — and 
over  all,  the  profit  of  the  farmer  is,  after 
all  charges  are  deducted,  considerably 
more  than  the  rent.  On  this  Rogers 
observes :  "  This  rate  of  profit  [presumably 
he  means  calculated  per  cent,  on  the 
capital  employed]  is  considerably  less 
than  that  procured  under  the  ancient 
system  of  capitalist  agriculture,  or  that 
which  succeeded  the  land  and  stock  lease, 
and  even  that  of  the  short  lease  which 
followed."  But  if  this  is  true  —  again  it 
must  be  said  it  is  difficult  to  understand 
where,  in  the  earlier  period,  the  rapacity 
of  the  landlord  comes  in. 

It  will  be  remembered  that,  according  to 
Rogers,  for  centuries  in  the  mediaeval 
period  —  that  is,  up  to  the  time  of  the  rise 
in  prices,  which  is  one  of  the  marks  of 
transition  to  the  modern  period  —  the 


Agricultural  Capital  and  Profits  71 

common  rent  of  land  was  6d.  an  acre. 
Thus  in  Young's  time  rents  in  money 
being  los.  an  acre  had  risen  twentyfold. 
A  good  part  of  the  rise,  however,  was  only 
nominal,  i.e.,  due  to  a  change  in  the  value 
of  money,  and  Rogers,  for  purposes  of  com- 
parison in  dealing  with  mediaeval  prices, 
multiplies  by  12  to  get  the  modern  equiva- 
lent. On  this  basis  the  mediaeval  rents 
expressed  on  the  modern  standard  would 
be  6s.  an  acre  as  against  los.  in  the  time 
of  Young.  This,  considering  the  great  in- 
crease in  produce — i.e.,  fourfold — is  a  very 
moderate  rise. 

The  progress  of  agriculture  in  the  first 
half  of  the  nineteenth  century  has  been 
admirably  described  by  Porter  in  one  of 
the  sections  of  the  "  Progress  of  the  Nation.'* 
The  evidence  is  partly  indirect,  but  none 
the  less  convincing.  In  this  period  (1800- 
1850)  there  was  a  great  increase  in  popula- 


72    Rents  >   Wages,  and  Profits  in  Agriculture 

tion :  the  population  practically  doubled. 
At  the  same  time,  on  the  whole,  the  country, 
as  regards  food  supplies,  was  self-supporting. 
It  was  only  in  years  of  exceptional  scarcity 
that  the  importation  was  considerable.  In 
the  first  thirty  years  of  the  century  probably 
not  5  per  cent,  of  the  people  were  fed  on 
foreign  corn;  from  1831  to  1840  the  pro- 
portion was  at  the  outside  7  per  cent.,  and 
even  in  the  five  years  preceding  the  repeal 
of  the  Corn  Laws  it  did  not  exceed  12  per 
cent.  On  these  figures  Porter  makes  the 
following  comment :  "  The  foregoing  cal- 
culations show  in  how  small  a  degree  this 
country  has  hitherto  been  dependent  upon 
foreigners  in  ordinary  seasons  for  a  due 
supply  of  our  staple  article  of  food.  It  is 
not,  however,"  he  continues,  "  with  this  view 
that  these  calculations  are  brought  forward, 
but  rather  to  prove  how  exceedingly  great 
the  increase  of  agricultural  production  must 


Agricultural  Capital  and  Profits  73 

have  been  to  have  thus  effectively  kept  in 
a  state  of  independence  a  population  which 
has  increased  with  so  great .  a  degree  of 
rapidity.  To  show  this  fact,  the  one  article 
of  wheat  has  been  selected  because  it  is 
that  which  is  most  generally  consumed  in 
England ;  but  the  position  advanced  would 
be  found  to  hold  equally  good  were  we 
to  go  through  the  whole  list  of  the  con- 
sumable products  of  the  earth.  The  supply 
of  meat  during  the  years  comprised  in  the 
inquiry  has  certainly  kept  pace  with  the 
growth  of  population ;  and  as  regards  this 
portion  of  our  food  our  home  agriculturalists 
have,  during  almost  the  whole  period — i.e^ 
1800-1846 — enjoyed  a  strict  monopoly." — 
(Porter,  p.  141.) 

As  the  opinion  is  of  present  interest,  I 
may  again  refer  to  Porter's  view  of  the 
policy  of  protection  to  agriculture  during 
this  period.  Great  as  this  increase  in 


74     Rents,   Wages,  and  Profits  in  Agriculture 

agricultural  production  has  been,  he  con- 
tinues, there  is  reason  to  believe  that  "  a 
far  more  profitable  result  would  have 
followed  from  the  amount  of  skill  and 
enterprise  and  the  application  of  capital  to 
which  that  increase  must  be  ascribed,  but 
for  the  restrictions  that  have  been  placed 
in  the  supposed  interests  of  our  agricul- 
turalists upon  the  importation  of  articles 
of  food  from  other  countries."  His  idea  is 
that  the  energies  of  our  farmers  had  been 
restricted  to  the  growth  of  certain  descrip- 
tions of  food,  and  that  our  farmers  had 
neglected  the  production  of  other  articles 
for  which  a  demand  would  then  have 
arisen.  There  can  be  little  doubt  that, 
from  the  point  of  view  of  profit,  in  this 
period  too  much  attention  was  given 
to  corn  ;  in  some  cases  old  pasture 
being  broken  up,  and  in  others  very 
inferior  land  being  taken  into  cultivation. 


Agricultural  Capital  and  Profits 


Still,  on  the  whole,  agricultural  capital 
accumulated  and  good  profits  were  realised. 
As  always  happens,  the  farmers  who  made 
the  profits  were  those  who  first  adopted 
improvements  and  scientific  methods,  and 
those  who  complained  most  of  agri- 
cultural distress  were  those  on  the  margin 
of  cultivation  who  stuck  to  the  old 
routine.  The  increased  production,  says 
Porter,  came  about  with  a  very  small 
addition  to  the  amount  of  labour  em- 
ployed, and  resulted  mainly  from  improv- 
ing the  soil,  throwing  down  fences  which 
divided  the  farms  into  small  patches, 
better  rotation  of  crops,  draining  and  new 
methods  of  manuring  —  (e.g->  use  of  crushed 
bones,  and  later  guano  ;  in  1841  only  seven 
ship  cargoes  of  guano  were  imported  —  a  total 
of  1,733  t°ns  —  and  in  1845  the  numbers 
had  risen  to  683  ships  and  nearly  221,000 
tons).  Porter  calls  attention  also  to  the 


76    Rents,  Wages,  and  Profits  in  Agriculture 

help,  even  at  this  date,  borrowed  from  the 
men  of  science — e.g.,  the  researches  of  Davy 
undertaken  at  the  instance  of  the  Board 
of  Agriculture  at  the  beginning  of  the 
century,  and  later  the  investigations  of 
Liebig.  One  effect  of  the  new  methods 
was  to  make  land  which  had  formerly 
been  considered  poor  as  productive  as  the 
better  land,  and  wheat  was  grown  on 
land  which  had  formerly  been  devoted 
entirely  to  oats.  The  improvement  in 
agricultural  production  generally,  and  the 
increase  in  the  gross  profits  from  land,  is 
also  shown  by  the  fact  that  from  1790  to 
1845  rents,  on  the  average,  more  than 
doubled.  The  rise  was  even  greater  during 
the  high  prices  of  the  great  war,  but  even 
with  the  moderate  level  of  prices  after  the 
war,  rents  had  doubled.*  The  prosperity  of 
agriculture  was  also  shown  by  the  growth  in 
wealth  of  the  towns  dependent  on  agriculture. 


Agricultural  Capital  and  Profits  77 

There  were,  no  doubt,  during  this  period 
(1800-1850)  years  of  general  agricultural 
depression,  especially  between  1819  and 
1838,  and  the  principal  cause  then,  as  now, 
was  the  relative  fall  in  prices.  During  the 
first  twenty  years  of  the  century  the  price 
of  wheat  averaged  88s.  a  quarter,  during  the 
next  five  years  it  fell  to  575.  2d.,  in  1822 
it  was  443.  yd.,  and  in  1835  only  395.  4d. 
But  on  the  whole,  during  the  half  century, 
as  Porter  shows,  there  was  progress,  and 
agricultural  capital  increased. 

During  the  thirty  years  that  followed 
the  repeal  of  the  Corn  Laws  there  was 
great  prosperity  in  agriculture,  especially 
after  1858.  From  1850  to  1878  the  rent 
of  cultivated  land  in  England  increased 
from  275.  to  305.  per  acre  (Caird),  whilst  in 
1770  it  was  only  135.  With  the  rise  in 
rent,  and  the  anticipation  of  a  further 
rise,  there  was  a  still  greater  rise  in  the 


78     Rents,   Wages,  and  Profits  in  Agriculture 

capital  value  of  land,  and  in  the  early 
seventies  there  was  a  great  demand  for 
land  by  small  occupiers.  In  Norfolk, 
Suffolk,  and  Lincoln,  for  example,  we  are 
told  in  the  Report  of  the  last  Royal  Com- 
mission on  Agriculture  (1897)  tnat  at  this 
time  many  farmers  bought  their  land  at 
the  high  prices  that  then  prevailed.  In 
most  cases  a  large  part  of  the  purchase 
money  was  borrowed  on  mortgage. 

In  1879  the  Richmond  Commission  was 
appointed  to  inquire  into  the  depressed 
condition  of  agriculture,  and  from  that 
time  there  has  been  little  real  recovery. 
This  Commission  reported  in  1882  that 
the  depression  was  mainly  due  to  bad 
seasons  ;  and  foreign  competition  was  only 
mentioned  as  a  secondary  cause.  The  next 
Commission  was  appointed  in  1893,  and 
reported  in  1897.  It  is  stated  at  the  be- 
ginning of  this  report  that  since  1882  the 


Agricultural  Capital  and  Profits  79 

seasons  have,  with  a  few  exceptions,  been 
satisfactory  from  the  agricultural  point  of 
view,  and  the  evidence  before  us  shows 
that  the  existing  depression  is  mainly  due 
to  the  fall  in  the  prices  of  farm  produce. 
The  fall  had  been  most  marked  in  grain, 
but  at  the  time  wool  had  also  fallen 
heavily,  though  since  there  has  been  a 
great  recovery. 

In  this  general  survey  it  does  not  seem 
desirable  to  carry  the  inquiry  beyond  the 
report  of  1897,  which  is  one  of  the  most 
instructive  Blue  Books  ever  issued. 

With  regard  to  the  special  subject  of 
this  chapter,  namely,  capital  and  profits, 
the  most  noticeable  points  in  recent  years 
are  as  follows  :  Farmers'  profits  since  1875 
have  fallen  greatly.  Taking  representative 
farmers'  accounts,  it  is  calculated  that  in 
the  twenty  years,  from  1875  to  1894,  the 
average  profit  was  only  60  per  cent,  of  the 


8o    Rents,  Wages,  and  Profits  in  Agriculture 

sum  which  in  past  days  was  considered 
an  ordinary  or  average  profit.  This  is,  of 
course,  a  very  rough  and  very  general 
estimate. 

Arable  land  has  suffered  most  ;  there 
are,  of  course,  variations  from  district  to 
district,  and  still  more  from  individual  to 
individual.  Some  farmers  have  prospered, 
and  we  are  told  that  in  some  parts  of  the 
country  there  is  competition  for  farms  of 
good  quality  and  favourably  situated. 
Farmers  are  more  ready  to  pay  high  rents 
for  good,  than  low  rents  for  bad  farms, 
and  it  is  said  that  the  continuance  of  this 
competition  seems  to  show  that  this  is  no 
miscalculation.  We  are  forcibly  reminded 
of  Arthur  Young's  saying  that  there  is 
a  proverb  amongst  farmers  that  a  man 
cannot  pay  too  much  for  good  land,  or 
too  little  for  bad. 

In  the  process  of  adjustment  to  the  fall 


Agricultural  Capital  and  Profits  81 

in  prices,  there  is  no  doubt  (from  the  evi- 
dence) that  there  has  been  a  great  loss  in 
many  cases  of  farmers'  capital ;  but  it  is 
impossible  to  estimate  the  amount. 

The  Commissioners,  however,  report  that 
they  do  not  find  any  evidence  that  any 
judicial  interference  is  desirable,  or  is  even 
desired  in  the  readjustment  of  rents.  There 
seems  to  be  no  doubt  that  the  brunt  of 
the  loss  fell  on  the  landlords  to  begin 
with.  In  the  districts  subject  to  the  most 
severe  depression,  it  is  said  that  the  farmers 
do  not  pay  more  for  the  land  than  the 
equivalent  of  what  is  required  for  the  up- 
keep of  the  farm  and  the  public  charges, 
and  in  some  cases  they  pay  less.  In  the 
most  depressed  parts  of  England,  we  are 
told,  the  fall  in  rent  has  been,  on  the 
average,  50  per  cent.,  and  in  some  cases 
as  much  as  80  per  cent. 

The  principle  of  security  for  the  tenant's 


82     Rents,   Wages,  and  Profits  in  Agriculture 

capital  has  been  very  generally  adopted  in 
recent  legislation,  and  if  the  Agricultural 
Holdings  Acts  have  failed,  it  is  rather  owing 
to  the  practical  difficulty  of  working  than 
to  any  bias  being  retained  in  favour  of  the 
landlord.  It  is  true  that  at  the  present  time 
there  is  some  demand  for  a  further  extension 
of  the  powers  of  the  tenant.  It  is  beyond 
the  scope  of  this  inquiry  to  express  an 
opinion  on  the  actual  merits  of  the  present 
proposals,  but  the  bearing  of  the  general 
results  of  this  broad  historical  survey  may 
be  found  to  have  some  interest.  In  con- 
clusion, to  summarise  the  main  results : 
taking  the  history  of  the  relations  of 
landlord  and  tenant  in  England  from  the 
time  of  the  establishment  of  tenant  farming, 
the  rents  obtained  seem  to  have  been  very 
reasonable  compared  with  the  profits  of  the 
farmer.  No  doubt  on  occasions,  and  in 
exceptional  times  of  transition,  there  may 


Agricultural  Capital  and  Profits  83 

have  been  inequitable  exactions  on  the 
part  of  some  owners  of  land  —  especially 
new  mercantile  owners — but  on  the  whole, 
there  has  never  been  in  England  any  general 
system  of  rack-renting.  On  the  contrary, 
it  would  be  much  more  true  to  say  that 
for  long  periods  rents  were  below  the 
natural  competition  level. 

Similarly,  as  regards  the  security  of  the 
farmer's  capital,  for  a  long  time  no  doubt 
the  law — that  is,  the  technical  law — was 
altogether  in  favour  of  the  landlord,  e.g., 
the  law  of  fixtures,  the  law  of  distress,  etc. 
But  in  dealing  with  English  economic 
history,  even  more  perhaps  than  in  the 
similar  case  of  constitutional  history,  we 
must  always  distinguish  between  the  letter 
of  the  law  and  the  spirit  in  which,  as  a 
matter  of  fact,  it  was  carried  out.  Adam 
Smith  was  a  great  admirer  of  peasant 
properties,  and  he  made  general  reflections 


84    Rents  >   Wages,  and  Profits  in  Agriculture 

on  property  in  land,  which,  taken  without 
the  context  of  his  sound  common-sense,  may 
even  now  be  regarded  as  revolutionary  — 
Adam  Smith  was  no  defender  of  the  great 
landlords — in  some  respects  he  is  less  than 
just  to  them ;  but  as  I  pointed  out,  he  is 
constrained  to  admit  that  England  is  the 
only  country  in  which  the  tenant  would 
take  the  risk  of  fixing  capital  in  the  land 
without  any  other  guarantee  than  good 
faith  in  his  landlord. 

Again,  in  the  recent  and  still  prevailing 
depression  the  landlords  have  made  re- 
missions and  written  off  arrears,  and  in 
general  taken  the  first  share  in  bearing 
the  loss. 

It  would  be  a  great  misfortune  for 
English  agriculture  if  an  attempt  to  make 
the  letter  of  the  law  more  favourable 
to  the  tenant  were  to  destroy  or  injure 
the  good  relations  that  have  hitherto 


Agricultural  Capital  and  Profits  85 

subsisted  ;  or,  on  the  other  hand,  to  induce 
the  owners  to  take  land  into  their  own 
hands  or  to  sell  it  on  purely  mercantile 
principles. 

The  English  system  of  landlord  and 
tenant,  in  the  light  of  this  history,  is  seen  to 
have  played  a  great  part  in  the  development 
of  English  agriculture,  and  the  essence  of 
the  system  has  been  the  mutual  confidence 
between  landlord  and  tenant.  In  the  words 
of  the  latest  American  authority 1 :  "  In  spite 
of  the  fact  that  tenancy  is  the  rule,  the 
agriculture  of  England  is,  in  many  ways, 
worthy  of  our  emulation,  and  this  advanced 

1  Henry  C.  Taylor  :  "Agricultural  Economics"  (p.  321). 
Macmillan  &  Co.,  1905.  The  writer  shows  (p.  241)  that 
in  the  United  States  there  has  been  a  decline  in  the 
percentage  of  farms  "  operated  "  by  the  owners  from  74-5 
in  1880  to  647  in  1900 — the  "cash"  tenants  having 
increased  from  8-0  per  cent,  to  13-1,  and  the  "share" 
tenants  from  17-5  per  cent,  to  22-2.  The  growth  of  the 
"share"  tenants  is  interesting  in  view  of  what  is  said 
above  on  the  "  land  and  stock "  lease. 


86    Rents,   Wages,  and  Profits  in  Agriculture 

position  of  English  agriculture  is  due,  in 
a  great  measure,  to  an  excellent  system  of 
adjusting  the  relations  between  landlords 
and  tenants." 


CHAPTER  III 

AGRICULTURAL     WAGES 

IN  dealing  with  wages  in  agricultural 
employment  I  propose  to  take  a  broad 
historical  survey,  and  to  begin,  as  in  the 
case  of  rents  and  profits,  with  the  mediaeval 
period,  or  more  particularly  the  period  from 
the  Norman  Conquest  to  the  end  of  the 
fifteenth  century  or  the  beginning  of  the 
Tudor  period. 

Rogers  has  declared  emphatically  that 
the  fifteenth  century  was  the  golden  age 
of  English  labour,  and  as  at  that  time  the 
greater  part  of  the  labour  was  employed 
in  agriculture,  this  means  that  it  was  in 
his  opinion  the  golden  age  of  agricultural 


Agricultural   Wages  89 

labour.  No  doubt  if  we  compare  that 
period  with  quite  recent  times — say  the  last 
quarter  of  a  century,  and  take  account  of 
everything  that  enters  into  real  wages,  that 
opinion  might  be  questioned,  but  if  we 
measure,  as  Rogers  does,  by  the  amount  of 
necessaries  obtainable,  especially  the  amount 
of  wheat,  no  doubt  the  fifteenth  century 
stands  out  prominently  as  compared  with 
any  other  century  as  being  advantageous 
to  agricultural  labour. 

It  is,  however,  of  still  greater  interest  to 
notice  that  the  economic  progress  of  the 
agricultural  labouring  classes  was  relatively 
much  greater  in  the  mediaeval  period  than 
in  the  modern  period  from  the  reign  of 
Elizabeth  down  to  our  own  times. 

This  vast  improvement  in  the  mediaeval, 
period  again,   is,   as  we  shall  see,   largely 
due  to  the  action   of  economic  forces — the 
natural     action     of     these     forces     being 


90    Rents,   Wages,  and  Profits  in  Agriculture 

intensified  and  hastened  by  the  occurrence 
of  the  great  plague. 

The  essential  facts  in  this  mediaeval  pro- 
gress have  already  been  brought  out  in 
dealing  with  rent  and  profits. 

We  may  now  look  at  the  same  facts  from 
the  point  of  view  of  labour. 

In  the  first  place,  then,  we  have  the 
immense  progress  implied  in  the  abolition 
of  slavery  and  serfdom.  In  order  to  realise 
the  economic  progress  in  this  direction,  it 
is  best  to  leave  on  one  side  the  purely 
legal  controversies  as  to  the  personal  status 
of  the  labourers  and  look  only  to  the 
elements  of  economic  freedom.  At  the 
Conquest  the  Normans  took  over  the  over- 
lordship  of  the  manors  of  which  they  dis- 
possessed the  Saxons,  and  with  the  estates 
they  naturally  took  over  the  slaves  and 
the  serfs  with  which  they  were  stocked. 
They  would  no  more  think  of  destroying 


Agricultural    Wages  91 

the  serfs  than  of  destroying  the  oxen.  No 
doubt  at  that  time  the  bulk  of  the 
ordinary  people  were  in  a  state  of  unfree- 
dom,  though  they  were  unfree  in  various 
degrees.  Some  were  absolute  slaves  liable 
to  be  sold  and  exported  to  foreign  countries, 
and  there  was,  for  example,  a  large  export 
of  slaves  from  Bristol  to  Ireland.  Some 
were  not  slaves  in  this  sense,  but  were 
serfs  attached  to  the  land,  the  real  bond 
of  attachment  being  the  force  of  custom 
which  varied  to  some  extent  from  manor 
to  manor ;  they  occupied  holdings  of 
different  kinds,  and  in  return  they  were 
obliged  to  render  very  heavy  labour  "rents, 
to  work  with  their  ploughs  and  oxen,  and 
to  give  up  also  certain  parts  of  the  pro- 
duce of  their  common  land.  If  we  look 
at  it  from  the  point  of  view  of  wages,  we 
may  say  that  under  this  system  the  real 
wages  of  labour  was  a  bare  subsistence 


92     Rents,   Wages,  and  Profits  in  Agriculture 

minimum ;  the  lord  of  the  manor  exacted 
all  the  labour  that  he  could  use,  arid  in 
return  allowed  ^only  what  was  necessary  to 
keep  the  workers  in  a  condition  to  per- 
form their  duties  and  keep  up  their 
numbers.  More  than  two  centuries  after 
the  Conquest  we  find  in  a  work,  that  has 
been  well  described  as  a  landlord's  manual 
or  handbook,  that  the  steward  of  a  great 
estate  is  to  report  as  regards  the  servile 
tenants — these  are  the  words  :  "  How  much 
each  of  them  has,  and  what  he  is  worth, 
and  to  what  amount  they  can  be  tallaged 
without  reducing  them  to  poverty  and 
ruin."  Surely  the  idea  of  a  bare  minimum 
subsistence  wage  could  hardly  be  expressed 
with  greater  clearness  or  ferocity.  And  not 
only  was  the  natural  rate  of  wages  in  the 
sense  of  the  real  return  to  labour  reduced 
in  this  way  to  starvation  point,  but  in 
all  sorts  of  ways  the  personal  freedom  of 


Agricultural   Wages  93 

the  serfs  was  curtailed.  The  leading  idea 
is  that  the  estate  required  a  stock  of  men, 
and  accordingly  the  men  were  not  allowed 
to  leave  the  estate,  their  children  were  not 
allowed  to  be  trained  for  the  Church,  the 
great  refuge  of  the  Middle  Ages ;  they 
were  not  allowed  to  give  their  daughters 
in  marriage  —  none  of  these  things  could 
be  done  without  the  licence  of  the  lord  of 
the  manor.  When  the  customs  and  the 
regulations  of  the  estates  failed,  the  law 
of  the  land  was  appealed  to,  and  all  sorts 
of  restrictions  were  imposed  on  this  natural 
migration  of  labour. 

And  yet,  in  spite  of  these  restraints,  even 
before  the  Black  Death,  a  certain  amount 
of  progress  was  made  in  the  direction  of 
freedom.  There  were  various  influences  at 
work  favourable  to  this  end ;  the  towns,  as 
they  grew  in  strength,  were  jealous  of  their 
hardly  acquired  privileges,  and  residence  of 


94     Rents,    Wages,  and  Profits  in  Agriculture 

a  year  and  a  day  in  a  town  gave  personal 
freedom  to  the  fugitive.  The  Church  was 
essentially  democratic,  and  children  of  the 
peasantry  often  rose  to  the  highest  offices. 
As  soon  as  the  institution  of  scutage  led 
to  the  enrolment  of  mercenaries,  the  sons 
of  the  villeins  had  a  chance  of  rising  to 
high  military  command,  and  there  are  one 
or  two  notable  cases  of  knighthood,  e.g., 
Sir  Robert  Sale.  But  the  great  agent  in 
the  progress  of  labour  was  the  growth  of 
the  money  power,  and  the  commutation  of 
labour  dues  into  money  payments. 

This  process  of  commutation  was  greatly 
furthered  by  the  occurrence  of  the  Black 
Death.  As  already  shown,  the  natural 
price  of  labour  rose  greatly,  and  in  the 
end  the  great  bulk  of  the  villeins  became 
either  yeomen  proprietors  or  tenant  farmers. 
No  doubt  there  were  exceptions,  and  there 
is  a  remarkable  passage  in  Fitzherbert's 


Agricultural    Wages  95 

Book  of  Surveying  (1523),  condemning 
serfdom  as  it  then  existed  as  contrary  to 
Christianity.  There  had  arisen  also  the 
class  of  free  labourers  who  had  taken  the 
place  of  the  old  cottagers  or  bordars,  who 
correspond  more  nearly  to  the  modern 
agricultural  labourer. 

This  differentiation  of  classes,  it  must  be 
remarked,  is  itself  one  of  the  best  signs  of 
economic  progress.  At  the  end  of  the 
fifteenth  century  there  was  still  a  class 
who  were  economically  little  better  than 
serfs,  but  a  considerable  part  of  the  old 
servile  population  had  now  been  replaced 
by  substantial  yeomen.  There  was  also  a 
good  demand  for  agricultural  labour,  and 
wages  were  relatively  high.  Rogers  has 
made  an  interesting  comparison  of  the 
wages  obtained  by  an  agricultural  family 
at  the  end  of  the  eighteenth  century  (in 
the  time  of  Arthur  Young)  with  the  wages 


96     Rents,   Wages,  and  Profits  in  Agriculture 

of  a  corresponding  family  for  a  similar 
amount  of  work  at  the  end  of  the 
fifteenth. 

In  actual  money  the  amount  earned  in 
the  earlier  period,  according  to  a  statute 
of  1495,  was  about  £"24  ios.,  or  about 
one -half  of  the  money  earned  in  1770, 
viz.,  £51  8s.  But  when  we  look  to  the 
corresponding  real  wages,  we  find  that  in 
1495  the  4-lb.  loaf  was  worth  only  Jd., 
as  against  5d.  in  1770,  butter  was  id. 
against  7d.,  cheese  ^d.  against  4d.,  and 
meat  also  id.  against  4d.  On  the  whole, 
then,  Rogers  calculates  that  the  family  of 
the  agricultural  labourer  in  Young's  time 
ought  to  have  received  in  money,  so  as  to 
get  the  same  real  wages,  not  simply  double, 
as  was  the  case,  but  seven  and  a  half  times 
as  much.  Or  putting  it  otherwise,  the 
family  earnings  in  Young's  time  ought  to 
have  been  more  than  three  times  as  high 


Agricultural   Wages  97 

as  they  were,  in  order  that  they  might 
be  in  the  same  position,  as  consumers,  as 
the  family  of  the  end  of  the  mediaeval 
period.  Bad  as  this  position  was  in  1770, 
it  was  soon  to  become  much  worse,  and 
even  in  1870  the  agricultural  labourer 
could  not  obtain  the  same  amount  of 
bread  for  his  money  wages  as  he  could 
four  centuries  before. 

It  may  be  convenient  at  this  point  to 
call  attention  to  the  relative  amounts  of 
rent,  profit,  and  wages,  taking  for  the 
purpose  a  farm  of  ^op  acres. 

The  labour  bill  was,  according  to  Young's 
estimate,  £335,  the  rent  was  £250,  and  the 
profit  was,  roughly,  £"400.  In  the  fifteenth 
century  the  rent  would  have  been  only 
£12  ios.,  the  profit  of  the  farmer  about 
£40,  and  the  labour  bill  about  ^"150,  if 
the  same  amount  of  labour  was  required, 

G 


98     Rentsy   Wages,  and  Profits  in  Agriculture 

though    most    likely  more  was    needed    in 
the  earlier  period. 

Thus  in  money,  rent  had  risen  twenty 
times,  profit  (aggregate)  ten  times,  and 
wages  only  two -fold.  After  1770  there 
was  a  very  great  increase  in  both  rent 
and  profit,  but  real  wages  fell. 

The  position  of  the  labourer  had  thus 
become  relatively  less  prosperous,  compared 
with  the  two  other  parties  interested  in 
land,  and,  as  we  have  already  seen,  also 
absolutely  worse  reckoned  in  food. 

During  these  four  centuries  there  had 
been  great  national  progress.  In  spite  of 
this,  however,  not  only  had  the  condition 
of  the  labourer,  as  a  food  consumer, 
become  worse,  but  apparently  also  he  had 
lost  in  various  social  utilities  (to  use  the 
general  economic  term),  which  are  not  so 
easy  of  expression  in  measurable  quantities. 

Adam    Smith,   writing    about    the    same 


Agricultural    Wages  99 

time  as  Young,  speaks  of  the  ill-contrived 
laws  of  settlement  which  prevented  the 
natural  migration  of  labour  to  its  best 
markets.  There  was  scarce  any  man  of 
forty,  he  declared,  who  had  not  suffered 
from  these  laws.  But  in  their  essence 
these  laws  of  settlement  really  brought 
back  one  of  the  characteristics  of  mediaeval 
serfdom.  People  were  ascript  to  their 
parishes,  lest  they  should  become  chargeable 
to  some  other  for  poor  relief. 

In  the  mediaeval  period,  the  anxiety  of 
the  landowners  was  lest  a  valuable  piece  of 
living  capital  should  escape  ;  the  serfs,  or  the 
"souls,"  on  the  manor  were  too  valuable 
to  lose.  As  soon  as  the  modern  period  had 
been  well  started  under  Elizabeth,  it  was 
necessary  to  form  an  elaborate  poor  -  law, 
and  also  a  great  statute  regulating  the 
employment  and  wages  of  labour.  The 
Elizabethan  Poor-Law  (1601)  and  the 


IOO    Rents,   Wages,  and  Profits  in  Agriculture 

Statute  of  Apprenticeship  (1563)  dominated 
the    organisation    of    industry    up    to    the 
industrial    revolution    at    the    end    of    the 
eighteenth  century,  and  the  laws  of  settle- 
ment   were    added    so    as    to    insure    any 
one  parish   against   the   danger  of   having 
to  support  the  paupers  of  another.     Time 
will  not   permit,  in   this   broad  survey,  of 
entering    at    any    length    into    the    effects 
of  the  Poor-Law  and  of  the  regulation  of 
wages  by  the  justices   so   long  as  it  pre- 
vailed.    It  may  be  admitted,  having  regard 
to  the  original  words  of  the  statutes,  and 
to    the    original    practice,    that    the    main 
object    in    both    cases  was    to    relieve  the 
poor    and    to     prevent     the    extension    of 
pauperism.     The  regulation  of  wages  was 
of  the  nature    of  an   official   arbitration— 
or  so  at  least  it  was  intended  to  be.     To 
a  dispassionate  reader,   there    seems  to  be 
no  evidence  of  anything  like  a  conspiracy 


Agricultural   Wages  101 

on  the  part  of  the  landowners  and  the 
farmers  to  depress  the  agricultural  labourers 
for  their  own  gain.  The  freedom  of  labour 
had  brought  with  it  the  separation  of 
labour  from  the  land.  The  wages  of 
labour  began  to  be  determined  more  and 
more  by  demand  and  supply,  and  not  by 
customary  relations  of  land  and  labour. 
The  legislation  begun  by  Elizabeth  was 
intended  to  meet  the  evils  of  destitution 
and  of  unemployment.  The  poor  in  very 
deed — too  feeble  to  work — were  treated  with 
charity ;  the  sturdy  rogues  and  vagabonds, 
and  even  the  unemployed  who  were  capable 
of  work,  were  treated  with  what  we  should 
consider  ferocity. 

But  the  whole  effect  of  the  system  was 
to  take  away  a  great  part  of  the  economic 
freedom  that  had  been  acquired  before  the 
end  of  the  medieval  period.  The  effects 
of  the  Poor  -  Law  were  aggravated  in  the 


102     Rents }   Wages^  and  Profits  in  Agriculture 

early  part  of  the  nineteenth  century,  and 
the  evils  led  to  the  well-known  Amendment 
Act  of  1834.  Before  this  reform,  the  wages 
of  agricultural  labour,  except  in  some  of 
the  Northern  counties,  were  paid  partially 
or  wholly  out  of  the  poor-rates.  We  are 
told  in  the  report  of  the  Select  Committee 
on  labourers'  wages  in  1824,  that  able- 
bodied  labourers  were  sent  round  to  the 
farmers,  and  received  a  part,  and  in  some 
cases,  the  whole  of  their  subsistence,  from 
the  parish  whilst  working  on  the  land  of 
individuals.  People  who  had  no  need  of 
farm  labour  were  obliged  to  contribute  to 
the  payment  of  work  done  for  others.  The 
idea  was  to  provide  what  we  should  now 
call  a  living  wage,  and  the  unit  taken  was 
the  family  in  the  natural  sense,  relief  being 
given  according  to  the  number  of  children, 
whether  legitimate  or  not.  Very  often  the 
farmers  agreed  to  pay  low  rates  of  wages 


Agricultural    Wages  103 

so  that  the  men  might  get  something  by 
way  of  aid  from  the  parish.  The  labourers, 
of  course,  did  not  exert  themselves  over 
their  work,  or  even  over  finding  employ- 
ment, as  they  were  sure  of  much  the  same 
subsistence  in  any  case. 

Sometimes,  indeed,  they  were  actually 
better  off  if  they  received  the  whole  of 
their  pay  from  the  parish.  The  system  was 
really  based  on  the  communistic  idea,  that 
regard  should  be  paid  to  the  wants  and 
necessities  of  the  workers  and  not  to  the 
value  of  the  work  done.  In  Buckingham- 
shire it  was  reported  that  wages,  considered 
as  the  result  of  a  bargain  between  the 
capitalist  and  the  labourer  for  the  advantage 
of  both,  could  hardly  be  said  to  exist.  The 
farmer,  like  the  parish,  commonly  paid 
every  man  according  to  the  wants  of 
himself  and  his  family,  and  then  got  what 
work  he  could  out  of  him. 


104     R&ltSi    WageS)  and  Profits  in  Agriculture 

Even  after  the  Act  of  1834  had  abolished 
the  allowance  system,  the  roundsman  system, 
and  the  labour  rate  system,  the  ideas  at 
the  root  of  the  old  Poor- Law  still  pre- 
vailed to  a  great  extent.  A  report  of  1839 
says  that  various  contrivances  had  enabled 
the  predominant  interest  in  each  locality 
to  contribute  to  a  common  fund  from 
which  they  did  not  derive  an  equal  benefit. 
Very  commonly,  however,  the  farmers  them- 
selves, in  the  forties,  gave  partial  work  to 
men  for  whom  they  had  no  real  need,  and 
kept  up  a  surplus  supply  of  labour  at  low 
wages,  simply  to  keep  the  men  off  the 
rates.  It  is  definitely  stated  in  the  Report 
on  the  Burdens  on  Land  in  1846  that  in 
order  to  reduce  the  poor-rate  the  farmers 
in  many  parishes  employ  more  hands  than 
the  economical  working  of  the  land  requires. 
Farmers  on  large  holdings  gave  evidence 
before  this  Committee  that  they  found  it 


Agricultural   Wages  105 

cheaper  to  give  some  employment  on  the 
land  rather  than  leave  the  families  of  the 
men  to  come  on  the  rates.  Consequently, 
preference  was  given  to  the  men  with  large 
families,  partly,  no  doubt,  because  some 
work  was  got  out  of  the  children,  but 
mainly  on  account  of  the  saving  to  the 
rates.  In  the  same  way  some  of  the  farmers 
refrained  from  using  new  labour-saving 
machinery,  and  threshing  with  the  flail 
was  continued  simply  to  give  employment. 
We  also  read  that  this  employment  of 
surplus  labour  was  in  part  regarded  as  an 
insurance  against  rick-burning,  at  that  time 
the  popular  method  of  forcible  persuasion. 
Caird  describes  a  similar  state  of  things  in 
the  English  agriculture  of  1850-1.  In  some 
districts,  he  says,  the  farmers  divided  up 
the  surplus  labour.  In  Wiltshire,  in  which 
the  wages  have  always  been  very  low, 
Caird  says  that  both  farmers  and  labourers 


lo6     Rents,   Wagesy  and  Profits  in  Agriculture 

suffered  from  the  over-supply  of  labour.  The 
farmer  was  compelled  to  employ  more  men 
than  his  present  mode  of  operations  required, 
and  to  save  himself  he  paid  a  lower  rate 
of  wages  than  was  sufficient  to  give  the 
physical  power  necessary  for  the  per- 
formance of  a  fair  day's  work.  We  have, 
in  fact,  an  illustration  of  the  opposite 
principle  to  that  now  known  as  the 
economy  of  high  wages.  Partly  under 
social  pressure,  and  to  avoid  the  losses  by 
poor-rates,  the  farmers  were  obliged  to  resort 
to  the  economy  of  low  wages.  Even  down 
to  our  own  times,  we  find  it  was  quite 
common  for  farmers  to  employ  men  to  an 
extreme  old  age  rather  than  that  they 
should  go  to  the  workhouse,  and  labour 
was  considered  to  have  a  certain  claim  on 
the  land  for  employment.  It  cannot,  how- 
ever, be  said  that  the  recognition  of  this 
claim  was  of  advantage  to  labour,  if  we 


Agricultural   Wages  107 

are  to  judge  by  the  general  level  of 
earnings. 

In  recent  years  wages  in  agriculture  have 
risen  in  spite  of  the  falling  off  of  profits 
and  rents  consequent  on  the  fall  in  prices. 
And  the  rise  in  wages  can  only  be  ascribed 
to  the  check  to  the  supply,  by  the  greater 
migration  to  the  towns,  and  the  cessation 
of  the  social  causes  which  formerly  induced 
the  surplus  to  remain  in  the  country. 

Although,  as  just  pointed  out,  in  many 
cases  the  farmers  kept  up  a  surplus  supply 
of  labour,  in  some  cases  the  landlords 
refused  to  keep  up  the  cottages  on  the 
farms,  and  in  order  to  avoid  the  rates, 
forced  the  labour  to  go  to  some  parish 
where  these  restrictions  in  building  were 
not  in  use — the  open  villages,  as  they  were 
called.  Here  the  rents  were  high,  and  the 
cottages  very  bad,  and  the  labourers  had 
to  walk  considerable  distances  to  their 


io8    Rents >   Wages^  and  Profits  in  Agriculture 

work.  It  may  be  noted  that  the  same 
method  of  keeping  down  poor  -  rates  was 
practised  in  the  beginning  of  the  eighteenth 
century.  The  adoption  of  the  union  of 
parishes  for  relief  checked  this  evil,  and 
now  the  cottage  accommodation  is  much 
better  and  there  is  less  overcrowding. 

The  old  open  villages,  with  their  over- 
crowded and  insanitary  dwellings,  were 
also  associated  with  the  "  gang  "  system. 
Gangs  of  men,  women,  lads,  girls,  and 
children,  were  formed  by  a  gang  -  master 
who  contracted  with  a  farmer  to  do 
certain  operations.  He  was  very  often  a 
sweater  of  the  worst  kind,  paying  the 
lowest  wages  possible,  and  making  them 
really  less  by  selling  necessaries  to  the 
members  of  the  gang.  These  gangs  were 
worse  than  degrading  to  the  women  and 
children  concerned,  and  by  the  Agricultural 
Gangs  Act  of  1867  children  under  eight 


Agricultural   Wages  109 

were  prohibited  from  working  in  gangs, 
and  since  then  mixed  gangs  of  men  and 
women  have  been  prohibited  from  work- 
ing in  gangs,  and  the  gang  -  master  for 
men  -  gangs  and  the  women  overseers  for 
women  -  gangs  had  to  obtain  licences. 

During  the  last  fifty  years,  i.e.,  since  1850, 
the  position  of  the  agricultural  labourers 
has  improved  in  every  way.  According  to 
the  general  summary  in  Mr.  Wilson  Fox's 
able  paper,  earnings  are  greater — the  rate  of 
pay  being  higher,  and  also  the  employment 
more  regular.  The  hours  of  labour  are 
less,  and  .  the  work  is  less  arduous  owing 
to  the  use  of  machinery.  The  chief  things 
on  which  the  wages  are  spent  have  fallen 
in  price ;  even  house  rents  in  the  country 
are  not  generally  higher,  whilst  the  cottage 
accommodation,  though  still  in  need  of 
improvement  in  some  parts,  is,  on  the 
average,  far  better  than  in  the  fifties.  The 


no    Rents  >  Wages,  and  Profits  in  Agriculture 

decrease  of  the  rural  population  has  reduced 
overcrowding,  and  left  the  worst  cottages 
empty.  Education  is  free,  sanitation  and 
water  supplies  are  better,  there  are  more 
opportunities  for  allotments,  and  compen- 
sation for  accidents  in  the  course  of 
the  employment  is  obtainable. — (Statistical 
Journal,  June,  1903.) 

As  already  observed,  one  of  the  best  signs 
of  progress  is  in  the  differentiation  of  classes 
within  an  industrial  group.  In  the  early 
mediaeval  period  the  great  body  of  agri- 
cultural workers  were  in  a  state  of 
serfdom ;  by  the  end  of  that  period  there 
had  emerged  out  of  the  masses  important 
classes  of  peasant  proprietors,  substantial 
tenant  farmers,  and  well-paid  free  labourers. 
In  the  course  of  time  the  small  proprietors, 
e.g.,  the  statesmen  of  Cumberland  and 
Westmoreland,  to  a  great  extent  dis- 
appeared, but  the  tenant  farmers  have 


Agricultural    Wages  1 1 1 

always   remained,    and  in  relation    to   the 
landlord,  have  improved  their  position. 

If  we  apply  this  test  of  differentiation  to 
agricultural  labour  during  the  last  fifty 
years  we  find  a  notable  advance.  In 
England  and  Wales  the  regular  employment 
of  women  in  agriculture  has  practically 
ceased;  the  children  who  formerly  began 
to  work  at  six  or  seven,  and  sometimes  in 
"gangs,"  are  now  at  school  up  to  double 
that  age ;  of  the  men  we  have  higher  and 
lower  classes,  according  to  capacity ;  those 
in  charge  of  animals  and  machinery  have 
increased  relatively,  and  they  obtain  higher 
wages.  As  regards  the  lowest  classes,  there 
is  no  longer  a  superabundance  of  cheap 
labour  fed  on  the  rates  and  only  fully 
employed  in  times  of  exceptional  pressure. 
In  many  districts  agricultural  labour  is 
relatively  scarce,  instead  of  being  in  all 
superabundant.  It  is  owing  to  this  relative 


112    Rents,   Wages,  and  Profits  in  Agriculture 

scarcity,  in  a  great  measure,  that  the  rise 
in  .real  wages  is  due,  as  will  appear  more 
clearly  when  we  proceed  to  trace  the 
general  course  of  agricultural  wages,  com- 
pared with  that  of  other  employments.  The 
bearing  on  rural  depopulation  is  discussed 
in  the  next  chapter,  and  here  it  is  only 
necessary  .to  emphasise  one  point.  Since 
1850  the  number  of  male  agricultural 
labourers  has  diminished  by  some  40  per 
cent — and  women  and  young  children  are 
practically  no  longer  employed.  At  first 
sight  this  falling  off  in  the  numbers 
employed  on  the  land  seems  a  matter  for 
national  regret.  But  a  good  deal  of  this 
regret  is  based  on  sentimental,  a  priori 
considerations,  of  what  agricultural  labour 
ought  to  be,  and  not  on  the  actual  facts 
of  history.  Between  the  twenties  and 
fifties,  except  in  the  Northern  counties, 
where  there  were  other  fields  of  employment 


Agricultural   Wages  113 

in  mining  and  manufactures,  the  rural 
population  was  so  abundant  that  there  was 
not  enough  work  to  go  round;  the  land- 
owners and  farmers  had  to  support  large 
numbers  of  able-bodied  men  and  their 
families,  and  were  nearly  ruined  in  extreme 
cases  by  the  rates.  In  1851  Caird  tells  us 
that  in  the  Southern  counties,  whilst  the 
agricultural  labourer  gained  only  a  scanty 
subsistence,  he  was  everywhere  felt  as  a 
burden  and  not  a  benefit  to  his  employer. 
The  degradation  of  village  life  was  often 
as  low  as  in  the  slums  of  the  great  cities, 
and  on  the  whole,  the  work  performed  by 
the  women  and  children  was  almost  as  bad 
as  that  in  the  mines,  from  which  also  it  has 
disappeared.  Consider  the  "  gang  "  system  ; 
look  at  the  crowding  in  the  open  villages ; 
think  that  all  the  earnings  of  all  the 
members  of  the  family  were  not  sufficient 
to  provide  a  living  wage,  and  had  to  be 

H 


114    Rents  >   Wages^  and  Profits  in  Agriculture 

supplemented  by  legal  or  customary  charity, 
and  you  will  agree  that,  from  one  point  of 
view,  the  falling  ofi  in  the  numbers  em- 
ployed in  agriculture  is  a  sign  of  national 
progress  and  of  great  improvement  in  the 
classes  concerned. 

We  may  now  consider  how  it  is  that  this 
improvement  in  the  condition  of  agricultural 
labour  was  so  long  retarded,  and  why  it  is 
that  the  greatest  improvement,  for  four 
centuries  at  least,  has  taken  place  during 
the  last  quarter  of  a  century,  which, 
curiously  enough,  as  regards  agricultural 
industry  in  general,  has  been  a  period  of 
profound  depression,  in  which  rents  and 
profits  on  the  average  have  reached  a 
minimum. 

One  of  the  most  remarkable  results 
obtained  from  the  application  of  inductive 
and  historical  methods  to  economics  is 
that  wages  in  agriculture  are  generally 


Agricultural   Wages  115 

lower  than  wages  in  other  industries  that 
involve  similar  hardships  and  require 
similar  skill.  So  universal  is  this  relative 
depression  of  agricultural  wages,  that  in  the 
matter  of  economic  laws  or  tendencies  it 
ought  to  take  the  first  place.  The  tendency 
to  depressed  wages  in  agriculture  is 
certainly  much  less  liable  to  be  counter- 
acted, than  the  celebrated  tendency  to 
diminishing  return  in  agricultural  pro- 
duction. 

I  will  quote  a  few  significant  facts  from 
the  history  of  wages  in  England  over  a 
period  of  more  than  six  centuries.  It  must 
be  borne  in  mind  that  when  we  are  dealing 
with  wages  over  very  long  periods  there 
are  several  difficulties  to  be  overcome. 
Money  wages,  especially  in  the  earlier 
centuries,  are  only  part  earnings.  Rogers, 
in  his  great  work,  and  in  his  popular 
exposition  of  the  more  important  results, 


n6    Rents,  Wages,  and  Profits  in  Agriculture 

has  brought  out  this  point  very  clearly. 
We  must  take  account  of  the  perquisites, 
the  common  rights,  the  food  and  drink, 
the  bit  of  land,  and  so  on,  and  add  so 
much  to  the  money  wage.  Then,  again, 
as  regards  the  money  wages  actually  paid, 
they  are  often  quoted  by  the  unit  of 
work  done,  e.g.,  threshing  of  various  kinds 
of  grain  at  so  much  per  quarter,  reaping, 
mowing,  etc.,  at  so  much  per  acre,  and  so 
on  for  other  kinds  of  work.  But  if  we 
wish  to  compare  agricultural  wages  with 
wages  in  quite  different  occupations,  we 
must  obviously  take  a  unit  of  time  as  the 
basis.  In  the  agricultural  records  time 
wages,  when  quoted  as  such,  or  estimated 
from  piece-work,  are  generally  estimated 
by  the  day,  but  earnings  (as  indicating  the 
standard  of  comfort)  are  generally  estimated 
by  the  year.  If,  then,  the  wages  are  quoted 
by  the  day,  we  must  take  account  of  the 


Agricultural   Wages  117 

regularity  of  the  employment.  It  is  im- 
possible on  this  occasion  to  go  into  these 
difficulties  of  comparison,  and  I  only 
mention  them  to  show  that  in  the  calcula- 
tions made  they  have  not  been  overlooked 
or  forgotten. 

Again,  in  comparing  agricultural  wages 
with  other  wages,  over  long  periods,  we 
have  to  take  account  of  changes  in  the 
nature  of  the  occupations.  In  agriculture, 
for  centuries  the  kinds  of  work  remain  the 
same.  Down  to  quite  recent  times,  in 
some  parts,  men  and  women  might  be 
seen  reaping  wheat  with  the  sickle  and 
cutting  the  corn  high  on  the  stalk  exactly 
as  Rogers  describes  the  work  in  the  Middle 
Ages,  and  similarly  there  was  threshing 
with  the  flail,  and  so  on.  But  in  other 
industries  there  have  been  revolutionary 
changes  in  all  departments.  But  even  in 
the  non-agricultural  industries  there  are 


n8    Rents,   Wages,  and  Profits  in  Agriculture 

certain  types  of  a  representative  kind  that 
are  fairly  steady  and  enduring  in  their  chief 
characteristics.  In  a  calculation  I  made 
for  another  purpose,1  a  few  years  ago,  I 
took  as  the  type  of  non-agricultural 
employment  the  carpenter.  Vicomte 
d'Avenel,  who  has  done  for  the  history  of 
wages  in  France  what  Rogers  did  for 
England,  takes  as  the  type  for  comparison 
the  labour  of  the  mason.  As  it  happens, 
whether  we  take  France  or  England,  there 
is  in  general  little  difference  between  the 
wages  of  the  carpenter  and  the  mason. 
Suppose,  then,  we  compare  the  wages  of 
the  ordinary  carpenter  with  the  wages  of 
a  first-class  hand  in  agriculture — one  who 
is  required  to  do  the  most  skilled  and 
responsible  work.  Now,  if  we  consider  that 
the  work  is  to  be  done  throughout  the 

1  "  Principles  of  Political  Economy,"  vol.  iii.,  Book  IV., 
chap,  vii, 


Agricultural    Wages  119 

year,  through  the  long,  stormy  winter  as 
well  as  the  pleasant  days  of  early  summer, 
I  think  there  is  no  question  that  from  the 
point  of  view  of  the  conditions  of  the 
work — the  disutility  involved — the  labour 
in  agriculture  is  harder — it  involves  more 
disutility,  e.g.,  the  exposure  doubles  a  man 
up  with  rheumatism.  Then,  again,  as 
regards  the  skill  required,  Adam  Smith,  in 
a  famous  passage,  has  shown  how  much 
more  mental  strain  is  required  for  the 
proper  management  of  animals  compared 
with  ordinary  mechanical  operations.  The 
first-class  hand,  then,  in  agriculture  may 
be  well  compared  with  the  carpenter,  and 
whether  we  consider  the  hardship  involved 
in  the  work,  or  the  skill  and  judgment, 
the  wages  of  the  former  (the  agriculturalist) 
ought  to  be  at  least  as  high  as  those  of 
the  carpenter. 

Now,  in  fact,  we  find  that  the  wages  of 


I2O    Rents,   Wages,  and  Profits  in  Agriculture 

the  carpenter  are  in  general  fairly  repre- 
sentative of  most  ordinary  skilled  labour, 
e.g.)  the  mason,  the  tiler,  the  sawyer,  the 
plumber,  the  bricklayer,  etc.  But  as  soon 
as  we  turn  to  agriculture  there  is  a 
difference,  and  generally  a  great  difference. 
Time  will  not  permit  of  my  giving  the 
results  of  the  inquiry  in  detail,  but  one  or 
two  instances  may  be  taken.  In  England, 
in  the  century  before  the  Black  Death,  the 
wages  of  the  carpenter  were  at  least  50 
per  cent.,  and  probably  nearer  100  per  cent., 
higher  than  those  of  the  first-class  hand  in 
agriculture. 

In  the  fifty  years  after  the  Black  Death, 
when  all  wages  rose,  practically  the  same 
proportions  remained  :  the  carpenter  re- 
ceived double,  or  at  least  half  as  much 
again  as  the  agriculturalist.  Down  to  the 
middle  of  the  seventeenth  century  the  same 
proportions  on  the  average  hold  good,  and 


Agricultural   Wages  121 

in  the  period  from  1642  to  1702  there  is 
the  beginning  of  a  striking  change  that 
is  still  more  adverse  to  agriculture.  At 
this  time  the  best  agricultural  labour  begins 
to  receive  less  than  the  ordinary  unskilled 
labour  in  the  towns  in  other  occupations ; 
e.g.,  the  hedger  and  ditcher  gets  less  than 
the  labourer  or  the  artisan.  In  the  eight- 
eenth century  the  carpenter  receives  more 
than  double  the  agricultural  labourer,  and 
common,  unskilled  labour  also  obtains 
nearly  50  per  cent,  more  than  the  best 
agricultural  labour,  and  during  the  nine- 
teenth century  practically  the  same  results 
are  found.  That  is  to  say,  in  the  course 
of  some  six  centuries  in  England,  the 
relative  depression  in  the  wages  of 
agriculture  is  considerable  and  continuous. 
The  experience  of  other  countries  gives 
similar  results.  One  more  example  may  be 
given.  The  Massachussets  Bureau  of  Labour 


122     Rents,   Wages,  and  Profits  in  Agriculture 

Statistics  issued  in  1885  a  report  on  wages 
in  the  United  States  from  1760  to  1883. 
It  may  be  calculated  from  these  figures 
that  from  1780  to  1850  the  average  wages 
of  the  agricultural  labourer  are  in  pro- 
portion to  those  of  the  carpenter,  as  100 
to  147,  whilst  from  1860  to  1883  the 
proportion  is  as  100  to  188.  Since  1883 
the  movement  has  been  in  favour  of  the 
carpenter,  his  average  wages  being  more 
than  double  those  of  the  agricultural 
labourer. 

Besides  the  general  law  that  agricultural 
wages  are  in  general  lower  than  the  wages 
in  the  towns,  it  appears  also  that  the  more 
purely  any  district  is  agricultural  so  much 
lower  are  the  wages.  Conversely,  if  any 
district  has  other  important  industries,  e.g., 
mining  or  manufactures,  the  rate  of  rural 
wages  is  also  higher.  Rogers  has  remarked, 
that  for  a  long  period  the  rate  of  wages 


Agricultural    Wages  123 

in  London  has  been  higher  than  in  the 
provincial  towns  which  are  in  closer 
connection  with  agriculture. 

Another  general  result  is  also  of  interest. 
Low  as  were  the  wages  of  men,  the  wages 
of  women  in  agriculture  were  still  lower. 
Thorold  Rogers  shows  that  from  1260  to 
1702  the  wages  paid  to  women  in  agri- 
culture were  about  half  the  wages  paid  to 
the  men. 

The  researches  of  Vicomte  d'Avenel  have 
made  available  still  more  ample  material 
for  the  history  of  the  wages  of  women  in 
France,  and  he  has  drawn  some  very 
interesting  conclusions.  It  is  well  known 
that  the  poorer  the  masses  of  the  people 
so  much  the  more  necessary  is  it  for  women 
to  engage  in  work  for  wages.  By  the 
influence  of  custom  also — the  custom  in 
the  last  resort  being  due  to  the  superior 
economic  strength  of  the  men — most  of  the 


124    Rents,   Wages,  and  Profits  in  Agriculture 

most  gainful  occupations  or  branches  of 
employment  have  been  restricted  to  men. 
Even  in  agriculture,  certain  operations  have 
generally  been  confined  to  men. 

In  the  last  census  (1901),  out  of  some 
12,000  women  still  employed  in  agriculture 
in  England  and  Wales,  only  5  women 
are  returned  as  in  charge  of  horses,  and 
one  of  them  is  a  girl  under  fifteen  years 
of  age.  Only  12  are  returned  as  shepherds, 
and  only  i  as  a  woodman.  Of  farm 
bailiffs  or  foremen,  there  are  39  women 
as  against  nearly  27,000  men.  And  history 
shows  that  in  the  past,  in  agriculture,  the 
women  were  pressed  into  the  least  gainful 
branches  of  the  service. 

The  greater  the  misery  of  the  people  so 
much  the  more  are  the  wages  of  women 
depressed,  simply  because  there  are  more 
seeking  for  employment.  D'Avenel  accounts 
for  the  relative  fall  in  the  wages  of  women 


Agricultural    Wages  125 

in  France  in  the  course  of  four  centuries 
(1400-1800)  by  the  general  impoverishment 
of  the  labouring  classes,  which  made  it 
necessary  for  more  women  to  seek  employ- 
ment. And  conversely,  it  may  be  said  that 
the  great  improvement  in  the  prosperity 
of  the  labouring  classes  in  England  in  the 
present  generation  is  partly  indicated  by 
the  great  decline  in  the  numbers  of  women 
engaged  in  agriculture. 

The  employment  of  children  tells  the 
same  tale.  The  wages  of  children  in  agri- 
culture have  always  been  very  low.  In 
agriculture,  as  in  the  domestic  industries, 
the  parents  of  the  children  often  proved  to 
be  the  worst  tyrants.  The  abolition  of 
the  employment  of  young  children,  and  the 
great  falling  off  in  the  employment  of  the 
older  children  in  agriculture,  in  the  present 
generation,  although  not  comfortable  for 
the  employer,  is  undoubtedly  a  sign  of 


126    Rents,   Wages,  and  Profits  in  Agriculture 

increasing  prosperity.  Even  from  1891  to 
1901  in  England  and  Wales  the  number 
of  males  under  fifteen  employed  in  agri- 
culture has  diminished  by  nearly  one-half, 
and  the  number  of  girls  in  1901  is  less 
than  one-fourth  the  .total  number  of  girls 
under  fifteen  employed  in  agriculture  in 
1891,  the  total  being  now  only  385,  i.e., 
for  all  England  and  Wales. 

These  movements  in  wages  and  employ- 
ment are  easily  explained  by  reference  to 
fundamental  economic  principles.  Once  a 
country  is  fairly  well  peopled,  and  most  of 
its  available  lands  cultivated,  there  is  little 
room  for  the  extensive  increase  of  agri- 
culture. And  as  regards  the  increase  of 
intensive  cultivation,  many  of  the  improve- 
ments that  take  place  are  such  as  to 
demand  less  labour.  On  the  whole,  then, 
there  is  no  natural  expansion  in  the  demand 
for  agricultural  labour,  but  rather  the 


Agricultural    Wages  127 

reverse.  On  the  other  hand,  under  normal 
conditions  the  supply  of  labour  in  the 
country  districts  increases,  even  when  it  is 
not  unduly  stimulated  by  the  lax  adminis- 
tration of  an  injudicious  poor-law. 

We  find  even  at  the  present  time  in 
some  parts  of  Ireland  and  of  the  High- 
lands of  Scotland,  examples  of  congested 
areas.  In  the  past  the  natural  tendency  of 
the  supply  of  agricultural  labour  to  outstrip 
the  demand  was  intensified  by  the  action 
both  of  accumulated  custom  and  direct 
legislation. 

It  is  only  quite  recently  in  England 
that  the  natural  over -supply  of  labour  has 
been  checked,  and  that  we  find  complaints 
of  the  scarcity  of  labour  in  some  agri- 
cultural districts.  As  already  shown, 
till  well  on  in  the  nineteenth  century, 
there  was  always  a  glut  of  agricultural 
labour. 


128     Rents,   Wages ,  and  Profits  in  Agriculture 

In  conclusion,  it  may  be  observed  that  in 
spite  of  the  improvement  in  the  condition 
of  the  agricultural  labourers  as  a  whole, 
it  may  be  doubted  if  relatively  to  other 
employments  the  improvement  has  been 
sufficient  to  check  the  natural  flow  of 
labour  to  the  towns.  The  rise  in  the  price 
of  labour,  when  otherwise  agricultural 
industry  is  depressed,  leads  to  a  lessened 
demand  on  the  part  of  employers ;  but 
even  allowing  for  this,  there  is,  compared 
with  former  periods,  a  relative  scarcity  of 
labour.  The  farmer  has  to  compete  with 
other  employers,  instead  of  having  a 
practical  monopoly  in  his  district,  and  he 
can  no  longer  obtain  the  cheap  labour  of 
women  and  children.  One  remedy,  from 
the  farmers'  point  of  view,  seems  to  be  the 
recognition  of  the  principle  of  the  economy 
of  high  wages,  and  of  the  allied  principle 
that  the  more  men  are  interested  in  the 


Agricultural   Wages  1 29 

results  of  their  work,  so  much  the  more 
efficient  is  their  labour  likely  to  be.  In 
the  near  future,  however,  the  rate  of  agri- 
cultural wages  is  much  more  likely  to 
rise  than  to  fall. 


CHAPTER  IV 

RURAL   DEPOPULATION 

AT  the  present  time  there  is  perhaps  no 
subject  connected  with  agriculture  to 
which  popular  attention  is  so  much 
directed  as  what  is  called  rural  depopula- 
tion ;  and  perhaps  there  is  no  subject  to 
which  it  is  more  necessary  to  apply 
scientific  analysis,  whether  we  consider 
the  nature  and  extent  of  the  alleged  evil, 
the  causes  assigned,  or  the  remedies  pro- 
posed. 

With  regard  to  the  nature  and  the 
extent  of  rural  depopulation  in  England,  we 
may  begin  with  the  evidence  of  the  last 
census  (1901),  the  general  report  on  which 
was  issued  in  1904. 


132     Rents  y   Wages,  and  Profits  in  Agriculture 

In  1 88 1  the  persons  enumerated  in  urban 
districts  were  in  proportion  to  those  in  the 
rural  districts  as  212  to  100;  in  1891  the 
proportions  had  risen  to  258  to  100  in 
favour  of  the  urban  districts,  and  in  the 
last  census — 1901 — the  proportion  had  still 
further  increased  to  335  to  100.  At  first 
sight  these  figures  seem  to  confirm  the 
popular  view  that  the  country  is  becoming 
rapidly  desolate,  but  several  important 
corrections  have  to  be  made  before  this 
view  can  be  maintained. 

In  the  first  place,  the  increase  in  the 
proportion  of  the  urban  districts  is  partly 
due  to  an  actual  growth  of  the  population 
enumerated  in  the  preceding  censuses  in 
those  areas,  but  partly  also  to  the  inclusion 
in  the  urban  areas  of  some  which  had 
formerly  been  classed  as  rural. 

In  the  census  of  1891  attention  was  drawn 
in  the  General  Report  to  the  fact  that  a 


Rural  Depopulation  133 

considerable  number  of  the  so-called  urban 
districts,  though  technically  urban,  were 
distinctly  rural  in  character,  being  in  many 
cases  small  towns  in  the  midst  of  agricultural 
areas,  on  which  they  are  dependent  for 
their  maintenance  as  business  centres. 

In  the  present  1901  census  there  are  1,122 
urban  districts  as  against  664  rural  districts, 
But  of  these  urban  districts  as  many  as 
215  had  populations  below  3,000;  211  had 
populations  between  3,000  and  5,000 ;  and 
260  had  populations  between  5,000  and 
10,000. 

In  popular  discourse,  when  urban  popu- 
lations are  spoken  of,  the  general  implication 
is  that  we  are  dealing  with  large  cities, 
and  not  with  good-sized  villages  and  small 
country  towns.  Accordingly,  it  is  useful  to 
follow  the  census  authorities  in  1891  and 
in  1901  in  estimating  the  growth  or  decrease 
of  the  rural  population  if  we  include  with 


134    Rents t   Wages,  and  Profits  in  Agriculture 

the  rural  districts — first,  all  those  which  are 
below  10,000  ;  and  secondly,  all  those  below 
5,000.  In  the  first  case,  i.e.^  when  we  include 
in  the  rural  districts  the  small  towns  below 
10,000  people,  we  find  that,  comparing  1901 
with  1891,  there  has  been  an  actual  increase 
of  5*3  per  cent.,  the  population  having  risen 
from  about  10  millions  to  about  loj 
millions.  It  is  true  that  the  rate  of  increase 
in  the  urban  districts  proper  is  greater,  being 
indeed  15*8  per  cent. ;  but  still  the  fact 
remains  that  the  rural  districts,  as  so 
interpreted,  have  gained  in  absolute  numbers 
half  a  million. 

If  we  include  with  the  rural  districts  only 
those  with  populations  below  5,000,  we  find 
the  rural  population  with  this  interpretation 
has  increased  by  3*5  per  cent.,  or  absolutely 
by  some  300,000,  as  against  15*7  for  the 
urban  districts  as  a  whole,  and  some 
3,000,000  absolutely. 


Rural  Depopulation  135 

Even  when  we  adopt  the  technical 
division  of  the  last  census,  and  take  rural 
in  a  very  restricted  sense,  we  still  find  that 
there  has  been  an  increase  of  2*9  per  cent., 
and  absolutely  of  some  200,000 ;  against  an 
urban  rate  of  increase  of  15*2,  and  an  absolute 
increase  of  about  4!  millions. 

Finally,  we  may  take  districts  in  which 
there  are  absolutely  no  urban  districts  or 
parts  of  districts,  of  which  there  were  112 
in  the  last  census.  A  very  interesting  table 
is  given  in  the  Report,  giving  the  figures 
in  every  census  from  1801  to  the  last 
(1901) ;  that  is  just  100  years.  In  the 
first  half  of  the  century  there  was  an 
increase  in  these  purely  rural  districts  in 
every  decennium,  but  at  a  gradually 
diminishing  rate,  except  for  the  unusually 
rapid  increase  in  the  decennium  1811  to 
1821,  where,  as  almost  always  happens 


136     Rents )   Wages,  and  Profits  in  Agriculture 

after  a  great  war,  the  rate  of  increase 
was  more  than  doubled. 

From  1851  to  1891  there  was  a  tendency 
in  these  districts  to  a  decrease  in  population, 
the  rate  of  decrease,  however,  being  very 
slight — varying  between  0*67  and  0*04 — 
whilst  the  absolute  loss  over  the  forty 
years  was  only  20,000  out  of  1,324,528. 

In  the  last  ten  years,  however — 1891  to 
1901  —  in  these  112  areas  there  has  been 
an  increase  of  1*9  per  cent.,  and  an  absolute 
increase  of  more  than  25,000  This  increase 
has  wiped  out  the  losses  that  had  taken 
place  since  1851,  and  the  census  of  1901 
records  in  these  districts  actually  the 
highest  population  of  any  census  since 
1 80 1.  Not  only  so,  but  the  increase  since 
1801  is  nearly  43  per  cent.  ;  and  absolutely 
the  population  in  these  districts  rose  from 
932,000  to  1,330,319. 

I    have    dwelt    on    this    point    at    some 


Rural  Depopulation  137 

length,  because  it  is  important  to  distin- 
guish between  rural  depopulation  in  the 
sense  of  an  absolute  falling  off  of  the 
numbers  in  what  is  called  the  country, 
and  a  low  rate  of  increase  compared  with 
the  towns. 

There  are,  of  course,  as  is  pointed  out 
in  the  Census  Report,  many  rural  parts  in 
which  actual  depopulation  has  occurred 
during  the  last  ten  years — in  some  cases 
considerable — but  even  in  these  cases  it  is 
to  be  observed  that  the  rate  of  decrease  is 
less  than  in  the  preceding  decennium.  In 
1881-91  the  maximum  rate  of  decrease 
was  11*68,  whilst  in  1891-1901  the  maxi- 
mum was  5*35  per  cent.,  and  there  were 
only  two  counties  in  which  the  decrease 
was  over  5  per  cent.,  as  against  7  per  cent, 
in  the  preceding  decennium. 

It  is  worth  noting,  incidentally,  that  the 
popular  idea  that  the  rate  of  increase  in 


138    Rents >   Wages,  and  Profits  in  Agriculture 

the  population  is  greatest  in  the  large 
cities  is  not  borne  out  by  the  facts.  It 
is  found  that,  taking  urban  districts,  those 
above  100,000  show  a  less  rate  of  increase 
than  those  below ;  e.g.^  the  rate  of  increase 
in  London  (considered  as  one  district,  with 
a  population  of  over  4!  millions)  is  only 
7*3  per  cent.,  whilst  in  211  districts,  with 
populations  between  3,000  and  5,000,  the 
rate  of  increase  is  8*6.  The  maximum  rate 
of  increase  is,  in  the  moderate-sized  towns, 
between  50,000  and  100,000^  viz.,  23*2  per 
cent.  Between  20,000  and  50,000  the  rate 
-is  20*3,  between  10,000  and  20,000  it  is 
18*4,  and  between  5,000  and  10,000  it  is 
14*4  per  cent. 

These  figures  seem  to  show  that  there 
is  a  certain  process  of  decentralisation  going 
on,  and  it  seems  probable  that  in  the  course 

1  It  is  usual  to  take  100,000  as  the  minimum,  to  rank  as 
a  city, 


Rural  Depopulation  139 

of  time,  with  improvements  in  communica- 
tion and  the  adoption  of  different  methods 
of  manufacture,  this  process  may  be 
intensified. 

The  bearing  on  agriculture,  and  on  the 
condition  of  the  strictly  rural  population, 
is  important,  as  better  markets  are  afforded 
to  the  bye-products  of  agriculture  by  the 
growth  of  the  moderate-sized  towns. 

Here,  however,  it  is  necessary  to  point 
out  that  the  occupations  of  the  rural 
population  are  not  entirely  agricultural, 
nor  directly  dependent  on  agriculture.  In 
some  country  districts,  to  take  but  one 
example,  there  is  a  good  deal  of  min- 
ing, and  there  are  residents  who  derive 
their  incomes  from  non  -  agricultural 
sources. 

We  may  now  consider  the  numbers  of 
those  employed  in  agriculture  in  the  census 
meaning  of  the  term.  They  are  divided 


140    Rents,   Wages,  and  Profits  in  Agriculture 

into  different  classes.  The  first  class 
consists  of  the  farmers  and  graziers,  most 
of  whom  are  employers  of  labour.  The 
figures  are  given  for  each  census  since  1851 
(inclusive),  but  it  is  observed  that  up  to 
1 88 1  the  numbers  include  those  who  are 
described  as  retired,  whilst  in  the  later 
censuses  they  are  excluded.  The  general 
conclusion  is  that  the  number  of  holders 
of  farms  has  not  materially  declined  during 
the  half  century,  and  it  is  specially  note- 
worthy that  in  the  period  1891  to  1901 
there  has  been  an  actual  increase  which 
has  more  than  balanced  the  slight  falling 
off  between  1881-1891.  Here  again,  how- 
ever, the  figures  are  not  strictly  comparable, 
as  the  poultry  farmers  in  1891  were  included 
under  a  different  heading,  and  when  this 
allowance  is  made  there  may  be  a  small 
decrease.  In  many  of  the  agricultural 
counties,  also,  there  is  (even  not  allowing 


Rural  Depopulation  141 

for  the  poultry  farmers),  a  decrease  in  the 
number  of  the  farmers. 

On  the  whole,  however,  as  stated  before, 
there  is  little  falling  off  in  the  numbers 
of  the  farmers  during  the  last  half  century. 

But  quite  the  opposite  is  the  case  when 
we  consider  the  number  of  the  workers  on 
the  farms.  Here  we  have  from  1851  a 
continuous  and  considerable  decrease,  both 
proportional  and  absolute.  In  1851,  of 
every  100  males  over  ten  years  of  age,  19 
were  workers  on  farms,  whilst  in  1901  the 
proportion  was  only  6  in  the  100.  When 
we  refer  to  the  absolute  numbers  we  find 
that,  compared  with  1851,  in  1901  there 
were  little  more  than  half  the  numbers 
employed,  strictly  58  per  cent.,  viz.,  a  fall 
from  about  \\  millions  to  f  of  a  million 
(1,232,576  to  715,138).  The  reduction  in 
female  agricultural  labour  is  still  more 
remarkable,  being  no  less  than  91*6  per 


142     Rents,   Wages,  and  Profits  in  Agriculture 

cent,  in  the  last  fifty  years — the  highest 
rate  of  decline  being  during  the  last 
decennium.  At  present  the  total  number 
of  women  employed  in  England  and  Wales 
is  only  12,000  as  against  143,475  in  1851. 

On  the  other  hand,  however,  there  has 
been  a  very  great  increase  in  the  number 
of  gardeners,  florists,  nurserymen,  etc.,  and 
also  in  the  numbers  of  those  employed  about 
agricultural  machinery.  There  is  also  an 
increase  in  the  number  of  woodmen.  Since 
the  former  census  the  agricultural  machine 
attendants  have  increased  40  per  cent., 
the  woodmen  27*4  per  cent.,  and  the 
gardeners  20*5  per  cent.  These  classes 
together  are  now  equal  to  about  one-third 
of  the  workers  on  farms. 

The  decline  in  the  numbers  of  those 
engaged  on  farms  is  partly  accounted  for 
by  the  large  amount  of  arable  land  that 
has  gone  out  of  cultivation.  In  the  period 


Rural  Depopulation  143 

of  the  last  census,  i.e.,  1891-1901,  there  has 
been  a  diminution  of  6*1  per  cent,  in  the 
total  arable  land,  and  an  increase  of  2  per 
cent,  in  the  permanent  pasture.  Taking 
arable  and  permanent  pasture  together, 
there  has  been  a  diminution  of  1*7  per 
cent.,  or  nearly  half  a  million  of  acres. 

It  is  rather  remarkable  that,  if  we  take 
the  period  of  the  whole  century,  according  to 
the  tables  given  in  Porter's  "  Progress,"  we 
find  that  in  1827,  under  arable  and  gardens, 
there  were  1,000,000  less  acres  than  in 
1901  ;  and  if  we  go  back  to  the  beginning 
of  the  century,  the  amount  of  arable  was 
still  less,  as  in  the  first  twenty  years  of  the 
century  there  were  a  large  number  of 
enclosures,  and  part,  at  any  rate,  of  the 
newly  -  enclosed  land  had  before  been 
uncultivated. 

We  are  now  in  a  position  to  see  that 
the  popular  idea  of  the  depopulation 


144    Rents,   Wages,  and  Profits  in  Agriculttire 

of  the  rural  districts,  and  of  the 
abandonment  of  cultivated  land,  is  to  a 
great  extent  ill-founded  and  exaggerated. 

It  is  worth  while  also  examining  the 
popular  idea  that  the  percentage  falling  off 
in  the  numbers  employed  in  agriculture, 
compared  with  those  in  other  pursuits,  is 
something  new  in  England  and  peculiar 
to  the  present  age. 

Between  1811  and  1831  (when  the  census 
of  occupations  took  account  of  families 
and  not  of  individuals)  it  was  found  that, 
whilst  the  total  number  of  families  in 
Great  Britain  increased  by  34  per  cent., 
the  number  of  those  employed  in  agriculture 
increased  only  7^  per  cent. 

Again,  if  we  compare  1831  with  1841, 
we  find  that  although  the  population 
had  increased  on  the  whole  by  over 
2,000,000,  the  number  of  adult  males 
employed  in  agriculture  had  actually 


Rural  Depopulation  145 

diminished  by  35,000  persons.  And  yet, 
as  explained  in  the  last  chapter,  in  this 
period  there  was  a  constant  glut  of 
agricultural  labour,  partly  because  this 
falling  off  in  the  numbers  employed  had 
been  accompanied  by  a  great  increase 
in  productive  power ;  and  roughly,  it  may 
be  said  that  whilst  in  1831  1,000 
persons  provided  food  for  3,000  persons, 
including  themselves,  in  1841  1,000 
persons  provided  food  for  4,000  persons, 
including  themselves. 

The  cry  that  the  cultivation  of  the  soil 
was  being  abandoned  was  as  loud  in  the 
palmy  days  of  the  Corn  Laws  as  it  is  at 
present.  A  sentence  may  be  quoted  from 
Earl  Fitzwilliam  in  an  address  to  the  land- 
owners of  England  in  1835  on  the  Corn 
Laws  :  "It  is  somewhere  about  twenty 
years  since  we  began  to  hear  pro- 
phetic annunciations  of  this  approaching 

K 


146    Rents ',   Wages,  and  Profits  in  Agriculture 

abandonment  of  the  soil,"  and  he 
shows  how  ill  -  founded  the  opinion 
was. 

We  may,  however,  go  further  back  for 
illustrations  from  the  history  of  England 
of  the  disproportionate  growth  of  the 
towns  at  the  expense  of  the  country.  For 
centuries  the  growth  of  London  was 
regarded  with  alarm,  and  we  have  com- 
plaints of  overcrowding  of  dwellings  and 
want  of  employment,  whilst  at  the  same 
time  it  is  said  that  the  country  districts 
were  suffering  from  want  of  labour,  and  the 
country  towns  going  to  decay.  As  early 
as  1580  Elizabeth  issued  a  proclamation 
in  regard  to  the  overcrowding  of  London 
houses,  and  all  manner  of  persons  were 
commanded  to  desist  from  building  any 
new  house  or  tenement  in  London  itself 
or  within  three  miles  of  the  city  gates ; 
people  were  forbidden  to  sublet  their 


Rural  Depopulation  147 

rooms  to  more  than  one  family,  and  the 
"  undersitters "  were  to  be  turned  out  and 
sent  into  the  decayed  parts  of  the  country. 
A  similar  proclamation  was  issued  in  1593, 
calling  attention  again  to  the  overcrowd- 
ing in  tenements,  and  the  dangers  of  the 
plague,  through  the  insanitary  conditions. 
Up  to  the  great  fire  in  1666  we  find 
constant  efforts  made  by  proclamations  and 
statutes  directly  to  check  the  growth  of 
building  in  London.  For  example,  by  an 
Act  of  1656  a  fine  of  one  year's  rent  was 
imposed  on  all  houses  with  less  than  four 
acres  of  ground  which  had  been  erected 
in  London,  or  within  ten  miles  of  it,  since 
1620;  and  a  fine  of  £100  to  the  State  and 
£"20  per  month  to  the  poor  was  imposed 
on  all  houses  erected  on  new  foundations 
after  1657. 

In  a  few  years  after  the  great  fire  the 
city  was  larger  than  ever,  and   the   same 


148     Rents,   Wages >  and  Profits  in  Agriculture 

complaints  arose  as  to  the  overgrowth  of 
head  compared  with  the  body,  according 
to  the  favourite  simile. 

Not  only  do  we  find,  as  far  back  as  the 
sixteenth  century,  complaints  of  the  exces- 
sive growth  of  London,  but  also  we  find 
complaints  equally  emphatic  of  the  de- 
population of  the  country.  This  was  most 
noticeable  in  the  first  period  of  the  great 
enclosures,  1470  to  1530,  which  were,  as 
already  pointed  out,  to  a  great  extent 
undertaken  in  connection  with  the  develop- 
ment of  sheep  farming.  The  creation  of 
sheep  farms  involved  to  a  great  extent  the 
conversion  of  arable  into  pasture.  The 
complaint  made  by  "  W.  S."  (for  a  long  time 
erroneously  supposed  to  be  Shakespeare) 
summarises  the  popular  view.  "Those 
sheepe  is  the  cause  of  all  these  mischiefs, 
for  they  have  driven  husbandry  out  of  the 
country  by  the  which  was  increased  before 


Rural  Depopulation  149 

all  kinds  of  foods,  but  now  only  sheepe, 
sheepe,  sheepe." 

But  apart  from  this  cause  of  rural  de- 
population, there  was  at  this  time  (i.e., 
sixteenth  century)  another  cause  more 
analogous  to  that  at  work  in  later  times 
— that  is  to  say,  there  was  a  method  of 
enclosing  resorted  to  with  the  view  of 
increasing  the  productiveness  of  the  arable 
land,  just  as  in  the  second  period  of 
enclosures  at  the  end  of  the  eighteenth 
century.  The  idea  was  to  consolidate  and 
rearrange  the  strips  or  long  acres  in  the 
common  fields,  so  that  each  farmer  should 
have  his  land  more  together  and  divided 
only  into  a  number  of  closes,  which  is 
simply  the  contracted  form  of  enclosure. 

Fitzherbert  (the  author  already  quoted), 
in  his  Book  of  Surveying,  shows  that 
land  worth  6d.  an  acre — the  old  customary 
rent — may  be  made  to  yield  8d.  an  acre 


150    Rents,  Wages,  and  Profits  in  Agriculture 

by  this  method,  and  the  farmer  also  be 
able  to  save  a  certain  amount  of  wages 
of  labour.  The  superior  profit  of  such 
enclosed  land  was  also  extolled  by  Tusser 
in  his  famous  poem,  1573,  entitled  "  Five 
Hundred  Points  of  Good  Husbandry";  he 
specially  insists  on  the  advantage  of  the 
several  or  enclosed  farms  over  the  champion 
or  open  field  husbandry.  In  a  tract  pub- 
lished about  1630  it  is  complained  that 
there  were  in  Oxfordshire  forty  ploughs 
fewer  than  there  were  twenty  years  before, 
and  the  writer  calculates  that  there  were 
twelve  score  less  people  employed  than 
under  the  old  system. 

Enclosures,  however,  for  convertible 
husbandry  would  not  have  anything  like 
the  same  effect  in  diminishing  the  rural 
population  as  the  enclosures  for  sheep  and 
the  creation  of  sheep-runs  on  a  large  scale. 

At  the  beginning  of  the  sixteenth  century 


Rural  Depopulation  1 5 1 

the  rural  depopulation,  due  to  the  extension 
of  sheep  farming,  was  considered  to  be  a 
source  of  political  danger.  It  is  said,  e.g.> 
that  the  Isle  of  Wight  was  entirely  taken 
up  by  a  few  large  sheep  -  runs,  and  that 
the  towns  and  villages  had  been  let  down, 
and  there  was  no  effective  force  to  defend 
the  coast  against  the  French.  Accordingly, 
it  was  decreed  that  no  one  was  to  rent 
more  than  one  farm,  and  the  rent  was  not 
to  exceed  ten  marks,  which,  at  the  old 
rate  of  6d.  an  acre,  would  be  about  270 
acres.  In  1517  a  Royal  Commission  was 
appointed  to  inquire  on  the  spot  as  to 
the  area  that  had  been  enclosed  since 
1488,  as  well  as  the  number  of  ploughs 
let  down,  of  houses  decayed,  and  other 
evidences  of  depopulation.  The  accounts 
for  many  counties  survive,  and  have  been 
carefully  examined. 

In    1534  an   Act   was    passed  forbidding 


152     Rents y   Wages,  and  Profits  in  Agriculture 

any  grazier  to  have  more  than  2,000  sheep, 
and  in  1536  the  king  was  to  have  the 
moiety  of  the  lands  decayed,  since  the  pass- 
ing of  the  last  statute,  until  the  owners 
rebuilt  the  houses  of  husbandry  again. 

The  dissolution  of  the  monasteries  and 
the  confiscation  of  the  Church  lands  led  to 
a  change  of  ownership  of  a  large  amount 
of  land,  and  the  new  owners  were  apt  to 
put  in  practice  the  new  and  profitable 
methods  regardless  of  the  interests  of  the 
resident  cultivators  and  of  their  old 
common  rights.  In  many  cases  also  they 
were  absentees,  and  in  that  way  neglected 
their  local  duties,  and  also  drew  the 
proceeds  of  the  rents  for  expenditure  in 
the  towns,  and  especially  in  London. 
Accordingly,  we  find  special  regulations 
against  absentees,  which  later  on  were 
renewed  by  James  I. 

All  the  efforts  of  the  legislator,  however, 


Rural  Depopulation  153 

were  of  little  avail ;  but  in  time  the  evils 
were  redressed  to  a  great  extent  by  the 
action  of  economic  forces.  The  growth  of 
the  towns  led  in  time  to  a  greater  demand 
for  corn,  and  as,  for  long,  the  country  was 
self-supporting,  the  growth  of  population 
inevitably  caused  an  increase  in  the 
production  of  the  staple  food. 

It  is,  indeed,  obvious  that  so  long  as  the 
country  was  self-supporting  the  growth  of 
the  towns  and  cities,  and  what  is  the  same 
thing,  the  extension  of  trade  and  manu- 
factures, was  only  possible  if  the  needs  of 
the  new  forms  of  labour  as  regards  food 
were  met  by  fresh  surplus  from  the  country, 
and  that  means  that  a  smaller  number  of 
hands  were  required  to  raise  a  given 
amount  of  food.  This  again  means  that 
the  general  increase  of  population  could 
only  go  on  with  a  relative  or  proportionate 
diminution  in  the  agricultural  population. 


154    Rents,   Wages,  and  Profits  in  Agriculture 

In  the  mediaeval  period  the  yield  of  wheat 
was  only  about  eight  bushels  an  acre,  and 
one-third  of  the  arable  land  was  always 
fallow,  and  another  third  was  devoted  to 
barley  for  beer,  and  to  other  grain  or  beans 
for  cattle  and  horses.  Accordingly,  a  typical 
virgate  or  yard-land  of  thirty  acres  would 
yield  ten  quarters  of  wheat.  Of  this  one- 
fourth  would  be  required  for  seed,  so  that 
allowing  one  quarter  per  head  of  popula- 
tion (the  estimate  of  Rogers  when  wheat  is 
the  principal  food),  and  taking  five  to  a 
family,  we  may  say  that  of  the  wheat 
produced,  after  the  requirements  of  the 
cultivators  were  met,  only  about  one-fourth 
remained  as  a  surplus  available  for  a 
non-agricultural  population. 

Some  of  the  holdings  were,  of  course, 
much  smaller,  and  the  surplus  (if  any) 
would  be  still  less ;  but  on  the  other 
hand,  the  demesne  land  of  the  lord  of 


Rural  Depopulation  155 

the  manor  would  enable  him  to  support 
a  large  number  of  retainers  and  to  make 
considerable  purchases  in  the  markets  and 
fairs. 

By  1770  (we  may  say  the  time  of  Arthur 
Young),  the  yield  of  wheat  had  increased 
from  eight  to  twenty-four  bushels,  and  less 
labour  was  required  in  the  cultivation. 
The  produce  was  three  or  four  times  as 
great,  and  the  population  also  was  three 
or  four  times  as  great,  and  the  greater 
part  of  the  increase  in  the  population  was 
of  necessity  non-agricultural. 

If  we  take  a  broad,  historical  survey  and 
consider  the  progress  of  agriculture  in 
England  over  centuries,  we  see  at  once 
that  of  necessity  it  has  involved  a  propor- 
tionate diminution  of  the  rural  population. 
This  was  the  case  even  when  the  country 
was,  as  regards  the  great  bulk  of  its  food 
supplies,  self-supporting.  But  during  the 


156     Rents )   Wages  >  and  Profits  in  Agriculture 

last  half  century,  and  especially  during  the 
last  thirty  years  (or  we  may  say  the  present 
generation),  England  has  become  more  and 
more  an  importer  of  food  of  all  kinds.  It 
is  not  necessary  to  repeat  the  familiar 
figures.  It  follows,  however,  that  so  long 
as  agricultural  improvements  continue,  not 
only  in  this  country  but  in  others,  and 
so  long  as  in  the  food-producing  countries 
the  supplies  increase  faster  than  the  surplus 
population,  as  in  Canada  and  Argentina, 
so  long  we  must  expect  that,  as  regards 
the  great  food  staples,  there  will  be  a 
decrease  in  the  employment  of  agricultural 
labour  in  this  country.  The  fundamental 
fact  we  have  to  face  is  that  more  and 
more  in  the  course  of  progress,  agriculture 
produces  a  greater  amount  of  food  at  a 
less  expenditure  of  labour.  No  doubt,  if 
we  take  a  limited  amount  of  land,  and 
try  with  the  same  methods  to  increase  the 


Rural  Depopulation  157 

food  supply,  we  soon  come  to  the  point  of 
what  is  called  diminishing  return  to  land. 
For  a  short  time  at  the  beginning  of  the 
nineteenth  century,  as  regards  the  whole 
corn  area  of  England,  it  may  be  said  these 
conditions  had  been  realised — that  is  to  say, 
the  corn  could  only  be  increased  by  taking 
into  cultivation  inferior  land,  or  by  applying 
more  costly  methods. 

But  even  then  improvements  were  being 
continually  made,  so  that  we  find  the  price 
of  corn  falling  and  the  numbers  of  those 
employed  in  agriculture  diminishing.  And 
under  present  conditions,  what  we  must 
expect  for  apparently  a  considerable  time 
is  not  diminishing,  but  increasing  return, 
i.e.,  less  labour  for  a  given  amount  of 
produce. 

That  the  relative  increase  of  the  urban 
population  is  due  to  some  wide-reaching 
economic  causes,  and  not  to  any  peculiarities 


158     Rents,   Wages,  and  Profits  in  Agriculture 

of  land  tenure  or  systems  of  cultivation  or 
property,  is  shown  by  the  recognised  fact 
that  this  increase  is  universal  all  the  world 
over.  The  facts  have  recently  been  forcibly 
stated  in  the  able  inaugural  address  of 
Major  Craigie  to  the  Royal  Statistical 
Society  (Journal,  Dec.,  1902). 

In  France  and  in  Germany  an  urban 
district  is  any  town  with  2,000  persons  and 
upwards.  With  this  definition,  in  Germany 
in  the  last  thirty  years  the  urban  districts 
have  increased  by  105  per  cent.,  whilst  the 
rural  have  decreased  by  2  per  cent.  In 
France,  during  the  last  thirty  years,  the 
urban  population  has  increased  by  34  per 
cent.,  whilst  the  rural  has  decreased  by 
nearly  5  per  cent,  (lit.,  4.  8). 

The  proportionate  increases  are  still  more 
remarkable.  In  Germany,  about  1870,  only 
36  per  cent,  were  classed  as  urban,  but  in 
1900  this  figure  had  risen  to  54  per  cent. 


Rural  Depopulation  159 

In  France  the  rise  has  been  from  31  per  cent, 
urban  to  39  per  cent,  urban,  but  in  absolute 
figures  the  rural  had  diminished  by  over 
a  million  since  1870,  and  the  urban  had 
increased  by  over  3^  millions.  In  Germany 
the  rural  population  had  diminished  by 
about  half  a  million,  but  the  urban  had 
increased  by  16,000,000.  Even  in  the 
United  States,  where  there  is  still  much 
unoccupied  country  to  attract  population, 
the  numbers  in  towns  of  over  8,000  people 
had  increased  by  209  per  cent.,  and  in  the 
rest  of  the  country  by  only  71  per  cent. 

In  Denmark,  between  1880  and  1901,  the 
urban  population  had  nearly  doubled,  whilst 
the  rural  had  only  increased  by  6*8  per 
cent.  In  Canada,  where  4,000  is  taken  as 
the  mark  of  the  urban  district,  between  1891 
and  1901  the  proportion  of  urban  to  rural 
had  increased  from  22*7  to  26*12.  In 
Australia  we  find  two -thirds  of  the  total 


160    Rents  >   Wages,  and  Profits  in  Agricultttre 

population  located  in  the  old  colonies  of 
New  South  Wales  and  Victoria,  where  the 
urban  population  is  half  as  great  again  as 
the  rural,  and  is  a  much  greater  proportion 
than  is  the  case  in  such  old  countries  as 
France  and  Germany. 

Taking  the  total  of  Australasia,  including 
New  Zealand,  in  1901,  the  urban  population 
exceeded  the  rural. 

It  seems,  then,  to  be  the  case  that  under 
present  conditions,  both  in  old  and  in  new 
countries,  in  those  with  already  a  dense 
population,  and  in  those  with  a  relatively 
sparse  population,  the  urban  population  is 
increasing  very  greatly  in  proportion  to  the 
rural,  and  in  many  cases  there  is  an  absolute 
decline  in  the  rural. 

When  the  movement  is  so  widespread 
and  so  marked,  as  already  observed,  it  can 
only  be  due  to  some  very  general  cause,  or 
set  of  causes.  Such  a  general  cause,  or 


Rural  Depopulation  161 

group  of  causes,  is  found  in  the  fact  already 
noted  in  regard  to  wages,  that  having 
regard  to  the  disutilities  of  the  employment, 
wages  in  agriculture  are  lower  than  in  the 
case  of  similar  employments  in  the  towns 
in  other  occupations,  e.g.>  transport.  Labour 
is,  then,  naturally  attracted  from  agri- 
culture. And  the  labour  that  is  so  with- 
drawn is  also  naturally  the  best  and  not 
the  worst.  In  considering  the  influence  of 
wages  we  must  of  course  understand  real 
wages,  looked  at  from  the  point  of  view 
of  the  people  themselves.  In  this  sense  we 
must  include  the  opportunities  for  amuse- 
ments, and  the  general  attractiveness  of 
the  towns.  From  the  point  of  view  of  the 
perfectly  wise  man,  a  large  discount  would 
no  doubt  be  taken  from  the  pleasures  of 
the  towns,  and  a  premium  added  to  the 
delights  of  the  country,  but  we  must 
estimate  the  power  of  attraction  from  the 

L 


1 62     Rents y   Wages>  and  Profits  in  Agriculture 

standpoint  of  the  persons  attracted.  The 
term,  real  wages,  is  a  convenient  expression, 
but  a  complete  analysis  would  involve  a 
complete  social  study  of  town  and  rural 
life  as  realised  by  the  masses  of  the  people. 
The  facts  seem  to  show  that  with  the 
increase  of  education  and  the  improvements 
in  the  mobility  of  labour  the  inflow  to  the 
towns  has  increased.  The  term,  mobility 
of  labour,  again,  is  an  expression  that 
summarises  a  number  of  causes  and  con- 
ditions ;  it  involves  not  only  improvements 
in  the  transport  of  the  most  difficult  of  all 
baggage  to  be  transported — namely,  man- 
but  also  improvements  in  the  knowledge 
of  the  labour  market.  As  regards  education, 
it  is  admitted  that  if  children  are  kept  at 
school  till  fourteen  years  of  age  they  find 
farm  work  unattractive,  and  the  education 
fits  them  rather  for  other  callings. 

On     the    whole,     then,     so    far    as    the 


Rziral  Depopulation  163 

interests  of  the  labourers  themselves  are 
concerned,  it  is  probable  that  a  considerable 
rise  in  money  wages  would  be  insufficient 
to  induce  them  to  prefer  the  country. 

If,  on  the  other  hand,  we  look  at  the 
question  from  the  point  of  view  of  capital, 
there  is  every  inducement  to  resort  to 
economies  of  labour.  With  the  present 
range  of  prices  of  produce,  and  the  rise  in 
wages  of  labour,  the  tendency  is  for  less 
land  to  be  ploughed,  and  more  kept  in 
grass,  less  labour  is  employed  on  draining 
and  cleaning  the  land  in  many  cases — that 
is,  generally  the  farming  is  less  intensive ; 
and  all  sorts  of  labour-saving  machinery 
have  multiplied. 

On  the  whole,  it  is  to  the  interest  of 
capital  to  employ  less  and  less  labour 
directly  on  the  land. 

Finally,  as  regards  the  landlords,  history 
shows  that  with  falling  profits  in  agriculture 


164    Rents,   Wages,  and  Profits  in  Agriculture 

encouragement  may  be  given  to  the  creation 
of  small  holdings.  This  was  the  landlords' 
remedy  after  the  Black  Death,  and  the 
consequent  rise  in  wages  and  fall  in  profits. 
But  as  already  indicated,  the  difficulty  is  in 
the  provision  of  the  necessary  capital.  From 
the  point  of  view  of  the  fixed  capital 
required,  in  the  form  of  buildings,  farm 
roads,  fences,  etc.,  it  is  more  economical  to 
throw  holdings  together  than  to  break 
them  up.  Otherwise,  so  far,  some  form  of 
the  land  and  stock  lease,  or  of  the  metayer 
system,  or  the  American  "share"  method, 
might  get  over  the  difficulty. 

To  the  small  holder,  the  profit  on  the 
capital  is  in  itself  of  minor  importance 
compared  with  the  wages  of  labour :  or 
wages  and  profits  are  mixed  together  in  the 
general  return  to  the  industry  of  the  small 
farmer.  In  countries  of  peasant  proprietors, 
the  people  are  content  with  what  in  this 


Rural  Depopulation  165 

country  would  be  regarded  as  a  low  living 
wage. 

Another  point  to  be  considered  is  that 
certain  kinds  of  produce  are  best  adapted 
for  small  holdings.  It  is  possible  that  in 
time,  in  this  country  also,  land  may  be  used 
for  special  purposes  on  a  small  scale. 
Attention  has  recently  been  attracted  to  the 
experiment  in  fruit  culture  at  Blairgowrie 
in  Perthshire.1  An  estate  of  450  acres  was 
made  into  small  holdings  for  fruit  culture, 
and  all  the  land  was  taken  up,  and  good 
profits  obtained  with  higher  rent.  The 
district,  however,  seems  to  be  specially 
adapted  to  raspberries. 

It  will  be  remembered  that  by  the  analysis 
of  the  occupations  of  persons  engaged 
in  agriculture  in  the  extended  sense  of 
the  term,  there  has  of  late  years  been  an 

1  See  E.  A.  Pratt's  "  Transition  in  Agriculture,"  chaps. 
xx.-xxiv.,  for  similar  cases  in  England. 


1 66    Rents  y   Wages,  and  Profits  in  Agriculture 

increase  in  the  number  of  gardeners  of  all 
kinds. 

It  is  also  possible  that  in  other  things, 
e.g.,  poultry,  dairy  -  farming  with  co-opera- 
tion, etc.,  there  may  be  openings  for  the 
small  occupier  of  land.  But  under  present 
conditions,  as  regards  the  great  staple 
products  of  agriculture,  any  extensive 
creation  of  small  holdings  seems  unlikely 
to  succeed.  There  are  the  dangers  of 
climate  and  the  dangers  of  mortgages  ; 
there  are  the  absence  of  scientific  know- 
ledge, and  all  the  other  familiar  drawbacks 
to  be  considered.  And  whilst  co-operation 
may  do  something  to  get  rid  of  some  of 
the  common  objections,  as  the  case  of 
Ireland  shows,  the  new  age  has  brought 
its  own  difficulties.  The  census  shows 
that  in  this  country  women  have  been 
practically  withdrawn  from  regular  agri- 
cultural occupations ;  during  the  last 


Rural  Depopulation  167 

twenty  years  the  decline  has  been  parj 
ticularly  rapid.  But  in  the  countries  in 
which  small  holdings  are  very  common, 
the  women  work  equally  with  the  men — 
in  fact,  the  holdings  are  practically  family 
holdings. 

In  Germany,  for  example,  if  we  compare 
the  year  1895  with  1882  we  find  that  the 
number  of  women  employed  in  agriculture 
has  actually  increased  by  over  200,000,  the 
total  now  employed  being  over  2f  millions. 
During  the  same  time  the  number  of  men 
agriculturists  diminished.  The  total  number 
of  men  employed  in  agriculture  in  Germany 
is,  however,  still  double  that  of  the  women. 

In  Austria  the  number  of  women  em- 
ployed in  agriculture  is  actually  greater 
than  the  number  of  men,  by  about  40,000, 
the  total  number  of  women  so  employed 
being  over  4,000,000  In  Austria,  however, 
since  the  last  census,  the  number  of  women 


168    Rents,   Wages,  and  Profits  in  Agriculture 

in  agriculture  have  decreased  more  than  the 
men. 

Generally,  it  may  be  said  that  in  countries 
in  which  small  holdings  prevail  the  wife 
and  children  share  in  the  cultivation.  If, 
however,  any  extensive  movement  for  bring- 
ing people  back  to  the  land  means  that 
women  are  again  to  be  extensively  em- 
ployed in  agriculture,  so  far  as  England 
is  concerned,  in  the  light  of  history,  it 
would  be  a  retrograde  movement. 

The  question  of  small  holdings  is  large 
and  complex,  and  much  has  been  written 
on  every  part  of  it.  The  broad  results  of 
this  historical  survey  on  the  relations  of 
land,  labour,  and  capital  have,  it  is  true, 
only  an  indirect  bearing  on  the  general 
question  of  small  holdings  and  the  still 
wider  question  of  rural  depopulation — but 
they  are  worthy  of  consideration.  The 
recent  changes  in  education  and  in  the 


Rural  Depopulation  169 

mobility  of  labour  on  the  one  side,  and 
on  the  other,  the  changes  in  the  character 
of  agricultural  production  and  in  the  trans- 
port of  agricultural  produce  from  foreign 
parts,  mark  the  end  of  the  nineteenth 
century  as  a  period  of  transition.  And  in 
the  past,  as  we  have  seen,  there  have  been 
similar  transitions  even  more  sudden  and 
revolutionary  in  character.  In  such  periods 
of  transition,  the  distress  has  only  been 
increased  by  attempts  to  cling  to  old 
methods  and  worn-out  traditions.  The 
first  requisite  is  to  understand  the  trend 
of  the  economic  forces  of  the  age.  From 
the  time  of  the  Black  Death  economic 
forces  have  dominated  the  progress  of 
agriculture. 

In  the  course  of  this  progress  in  this 
country  the  functions  of  landlord,  tenant, 
and  labourer  have  become  more  and  more 
sharply  differentiated.  As  regards  the 


170    Rents,   Wages,  and  Profits  in  Agriculture 

classes  of  landlord  and  tenant  farmer, 
there  can  be  no  doubt  as  to  the  advantages 
to  the  people  concerned ;  nor,  again,  as  to 
the  progress  of  agriculture  under  the 
system.  In  the  normal  case,  the  farmer  can 
much  more  advantageously  employ  his 
capital  in  farming  than  in  the  purchase 
of  land.  In  fact,  under  the  "  English " 
system  the  farmer  is  able  to  borrow 
the  land  at  an  extremely  low  rate 
—  far  more  cheaply  than  would  be 
possible  under  the  most  advantageous 
mortgage.  A  reference  to  other  countries 
shows  at  once  the  importance  of  this  con- 
sideration. In  all  of  them  the  occupying 
owners  are  burdened  more  or  less  with  a 
weight  of  interest  on  mortgages.  Take 
the  case  of  Denmark.  Nominally,  the 
peasant  proprietors  are  freeholders,  but 
they  are  saddled  with  a  mortgage  debt  of 
^"60,000,000,  which  represents  55  per  cent. 


Rural  Depopulation  171 

of  the  value  of  their  farms,  with  buildings 
stock  and  improvements.  In  every  age, 
and  in  every  country,  the  mortgage  has 
been  the  curse  of  the  peasant  holder.  The 
interest  is  much  more  than  the  rent  would 
be  under  English  conditions,  and  the 
relations  between  the  money  -  lender  and 
the  peasant  are  infinitely  worse  than 
those  between  the  tenant  and  the  landlord. 
In  England,  from  the  mediaeval  period 
onwards,  the  landlord  has  been  accustomed 
to  undertake  the  improvements  of  a  more 
permanent  character,  which  still  further 
liberates  the  capital  of  the  farmer.  In  the 
past,  on  the  whole,  the  relations  have  been 
dominated  by  good  feeling  and  good  faith ; 
although  sometimes  the  admixture  of  new 
blood,  and  sometimes  the  change  in  con- 
ditions, brought  about  evils  which  led  to 
the  intervention  of  the  law.  Broadly 
speaking,  the  progress  of  legislation  in  this 


172    Rents,  Wages,  and  Profits  in  Agriculture 

matter  has  been  to  give  still  greater 
security  to  the  tenant  for  the  investment 
of  his  capital,  and  greater  opportunities 
for  freedom  of  enterprise.  More  and  more 
the  old  legal  presumptions  in  favour  of  the 
landlord  have  been  abandoned,  and  in  no 
country  except  in  Ireland  is  the  law  now 
so  much  in  favour  of  the  tenant  as  in 
Great  Britain.  It  is  quite  possible  that 
amendments  in  the  law  are  still  desirable, 
and,  still  more,  improvements  in  administra- 
tion— but  there  is  the  danger  that  if  an 
attempt  is  made  to  confer  much  more  favour 
on  the  tenant  the  present  landlord  may 
find  his  remedy  either  in  a  sale  to  those 
who  will  be  governed  entirely  by  mercan- 
tile interests,  or  will  himself  try  to  farm 
his  land  under  bailiff  supervision.  In  either 
case,  the  peculiar  advantage  of  the  present 
system  will  be  lost.  In  Ireland,  as  we 
know,  the  tenant  was  given  so  much  that 


Rural  Depopulation  173 

in  the  end  it  became  necessary  to  make 
him  the  owner  of  the  land. 

But  in  Ireland,  on  the  average,  and 
looking  to  history,  the  landlord  had  been 
more  like  an  absentee  money-lender  than 
an  English  landlord  —  though,  of  course, 
there  were  notable  exceptions. 

In  this  development  of  the  English  system 
the  landowner,  it  is  true,  also  had  his 
advantage.  On  the  whole,  he  got  better 
rents  out  of  his  estates  by  letting  them  in 
farms  than  by  farming  them  himself.  At 
the  same  time,  the  typical  English  landlord 
took  an  active  part  in  the  permanent 
improvements  of  the  estate,  and  in  the 
selection  of  tenants  and  the  adoption  of 
general  rules  of  management.  He  found 
his  reward  not  only  in  the  rent  which  was 
in  general  lower  than  the  true  competition 
rent,  but  in  the  various  social  amenities 
connected  with  the  ownership  of  land. 


i/4    Rents,   Wages^  and  Profits  in  Agriculture 

Look  at  the  progress  of  English  agri- 
culture over  six  centuries.  The  face  of  the 
country  shows  what  has  been  accomplished, 
and  the  amount  of  the  tenant's  capital 
employed  in  agriculture  shows  also  the 
moderate  character  of  the  rents. 

When  we  turn,  however,  to  the  case  of 
the  agricultural  labourer,  the  broad  his- 
torical survey  is  not  so  pleasing.  It  is 
true  that  the  ancestors  of  the  present  race 
of  substantial  farmers  were  serfs,  and  the 
representatives  in  the  social  scale  of  the 
present  agricultural  labourers  were  practi- 
cally slaves.  But  the  mediaeval  period 
itself  saw  the  break-up  of  this  system, 
which  in  other  civilised  countries,  e.g., 
Germany  and  Russia,  lasted  down  to  the 
nineteenth  century  in  its  essential  features. 
From  the  beginning  of  the  reign  of  Eliza- 
beth, however, — that  is,  the  beginning  of 
the  modern  era, — to  the  middle  of  the 


Rural  Depopulation  175 

reign  of  Victoria,  there  was  relatively  little 
improvement  in  the  condition  of  the  ordin- 
ary agricultural  labourer.  His  wages  were 
low,  and  in  many  ways  his  life  was  de- 
graded. But  in  the  present  generation  a 
great  advance  has  been  made,  and  the 
most  remarkable  feature  in  this  advance 
is  that  it  has  been  made  in  spite  of  the 
depression  of  agriculture  from  the  point  of 
view  of  the  landlord  and  the  capitalist 
farmer.  In  former  ages  there  would  have 
been,  under  the  same  conditions,  a  great 
fall  in  wages,  supposing  that  wages  were 
sufficiently  above  the  minimum  of  bare 
subsistence  to  admit  of  a  fall.  There  is 
still,  no  doubt,  much  room  for  improve- 
ment before  the  agricultural  labourer  is  on 
a  level  with  the  skilled  artisan.  If,  howT- 
ever,  agriculture  in  England  passes,  as 
before,  with  success  through  the  period  of 
transition — and  there  are  signs  that  the 


176     Rents,    Wages,  and  Profits  in  Agriculture 

more  enterprising  farmers  are  adapting 
themselves  to  the  new  conditions — if  agri- 
culture again  becomes  prosperous  we  may 
expect  that  the  labourer  will  share  much 
more  than  ever  before  in  that  prosperity. 
And  under  the  new  conditions  it  will  pay 
the  farmer  to  have  labourers  of  a  higher 
standard.  On  the  whole,  the  skilled 
artisan  in  the  towns  is  much  better  off 
than  his  prototype,  the  independent  small 
master,  who  employed  himself  and  his 
family  in  domestic  industry ;  and  even 
under  present  conditions,  it  is  probable 
that  the  agricultural  labourer  in  England  is 
much  better  off  than  the  peasant  owner  in 
any  continental  country.  If,  in  the  course 
of  economic  progress,  his  position  should 
be  still  further  improved,  the  English 
system  of  landlord,  tenant,  and  labourer 
would  be  far  better,  from  the  social  and 
national  point  of  view,  than  any  system  of 
occupying  ownership  on  a  small  scale. 


BY  THE  SAME  AUTHOR. 

EFFECTS  OF  MACHINERY  ON  WAGES 

Crown  8vo.,  2S.  6d.  {Social  Science  Series. 


OPINIONS  OF  THE  PRESS. 

"Ably  reasoned,  clearly  stated,  impartially  written,  this  little 
book  ought  to  do  much  good  in  the  way  of  destroying  the  delusions 
of  optimism  on  the  one  hand,  and  on  the  other  of  indicating  the 
directions  in  which  the  remedies  for  evils,  that  are  admitted  to  exist, 
should  be  sought." — Literary  World. 

"  The  essay,  it  is  needless  to  say,  is  a  model  of  luminous  exposition, 
after  the  historical  method,  of  the  influences  which  the  progress  of 
machinery  has  had  upon  labour  and  wages." — Scotsman, 

"We  commend  these  pages  to  the  careful  consideration  of  all 
interested  in  this  important  question,  since  it  affords  the  best  general 
view  and  criticism  of  the  subject  that  we  have  come  across  for  a  very 
considerable  time." — Machinery. 

"Mr.  Nicholson  has  made  a  most  careful  study  of  his  subject,  and 
may  be  termed  a  master  of  it.  He  gives  a  learned  and  closely  reasoned 
treatise,  which  needs  to  be  read  and  re-read  by  the  student  in  order 
to  be  thoroughly  assimilated." — Warrington  Guardian. 

"Messrs.  Sonnenschein  &  Co.  have  rendered  a  service  to  later  economic 
students  by  enabling  them  to  acquaint  themselves  with  Prof.  Nicholson's 
essay.  Prof.  Nicholson  is  careful  to  examine  both  sides  of  the 
question,  and  while  his  conclusions  may  be  optimistic  in  their  general 
bearing,  he  is  far  from  embracing  an  optimism  which  is  blind  to 
drawbacks  and  dangers." — Economic  Journal. 


THE  HISTORY  OF  THE  ENGLISH 
CORN  LAWS 

Cloth,  2S.  6d.  [Social  Science  Series. 


OPINIONS  OF  THE  PRESS. 

"  The  learned  Professor  gives  a  clear  and  succinct  account  of  the 
history  of  the  English  Corn  Laws.  He  treats  them  very  ably  from 
three  standpoints  as  affecting  the  consumer,  the  producer,  and  national 
interests.  In  the  chapter  devoted  to  general  results,  he  asserts  that 
the  history  of  the  Corn  Laws  strongly  supports  the  negative  argument 
for  Free  Trade." — Dundee  Courier. 

"  Based  on  a  set  of  lectures  delivered  at  Cambridge  last  year,  the 
book  examines  the  working  of  the  Corn  Laws  in  connection  with  the 
general  economic  policy  of  the  country,  and  after  a  close  scrutiny,  in 
the  light  of  Adam  Smith's  reasoning,  of  the  actual  results  of  the  duties 
and  restrictions  upon  imports,  finds  that  they  either  failed  of  their 
objects  or  were  actively  hurtful.  The  work  should  prove  welcome  to 
many  readers  at  this  time,  both  within  and  without  the  circle  of 
professed  students  of  economic  history." — Scotsman. 

"The  principal  object  of  this  work  is  to  show  that  the  history  of  the 
Corn  Laws  can  only  be  understood  as  part  of  the  general  economic 
policy  of  the  country." — Outlook. 

"The  subject  is  dealt  with  in  four  chapters,  devoted  respectively  to 
the  points  of  view  of  the  consumer,  producers,  and  public  policy,  and 
to  general  results.  From  the  fact  that  the  old  Corn  Laws  were  part  of 
a  system,  and  were  destroyed  with  that  system,  it  is  argued  that  by 
analogy  a  new  or  revised  Corn  Law  can  also  only  be  part  of  a  general 
system,  whether  of  Protection  or  Preference." — Notts  Guardian. 

"  Professor  Nicholson,  by  reprinting  the  four  lectures  on  Corn  Law 
history  that  he  delivered  at  Cambridge  University  last  summer,  has 
rendered  a  service  which  deserves  hearty  appreciation  from  all  students 
of  economics,  and  especially  from  students  of  the  fiscal  question.  The 
book  is  one  that  clears  away  misapprehensions  and  stimulates  thought." 
— Sheffield  Independent. 

{t  Professor  Nicholson  examines  very  lucidly  the  operation  of  these 
Laws  as  a  part  of  the  general  policy  of  the  country.  He  points  out 
that  they  did  not  steady  prices  or  benefit  the  farmer,  that  they  did  not 
prevent  the  flow  of  labour  from  the  country  to  the  towns,  and  that 
they  did  not  make  the  nation  independent  of  the  foreign  food  supplies." 
—Newcastle  Chronicle. 

"  Every  one  of  the  divisions  of  the  book  is  worked  out  with  care, 
and  with  many  illuminating  flashes  from  the  author's  wide  reading 
and  keen  grip  of  principles." — Glasgow  Herald. 


RATES  AND  TAXES  AS  AFFECTING 
AGRICULTURE 

Crown  8vo.     Cloth,  2S.  6d.  [Social  Science  Series. 


OPINIONS   OF  THE  PRESS. 

"  All  who  are  interested  in  the  problems  connected  with  agricultural 
rating  owe  a  debt  of  gratitude  to  Professor  Nicholson  for  the  extremely 
able  and  impartial  way  in  which  he  has  dealt  with  these  problems. 
Prof.  Nicholson  is  neither  a  landowner  nor  a  politician,  and  he 
approaches  his  subject  solely  from  the  point  of  view  of  justice  and 
truth.  He  examines  the  question  before  him,  not  with  a  desire  to  find 
support  for  any  particular  theory,  but  in  order  to  ascertain  whether 
agriculture  is  fairly  treated  in  the  matter  of  local  taxation.  .  .  .  The  fact 
is,  our  whole  system  of  local  taxation  must  be  remodelled,  and  remodelled 
by  men  who  have  cleared  their  minds  of  cant  in  regard  to  the  alleged 
privileged  position  of  land.  Land  must  be  treated  like  every  other  form 
of  wealth,  no  better  and  no  worse." — Spectator. 

"  The  main  object  of  this  volume  is  to  consider  the  principles  which 
should  be  applied  in  the  reform  of  our  local  taxation.  Though  in  the 
main  a  plea  for  the  reduction  of  the  burden  on  the  incomes  of  those  who 
make  their  livelihood  by  land,  the  volume  forms  a  brief  but  most 
suggestive  treatise  on  the  theory  of  taxation— a  treatise  which  never  goes 
too  far  away  from  ascertained  facts,  and  never  rides  theory  to  death  as 
if  it  could  over-ride  facts.  Two  main  principles  may  be  said  to  run 
through  its  treatment  of  the  subject — the  one  is  that  taxation  falls  upon 
persons  and  not  on  things,  and  that  income  is  really  the  true  basis  of 
taxation. " — Scotsman. 

"There  is  really  almost  nothing  left  to  be  desired  in  Dr.  Nicholson's 
handling  of  taxation  as  applied  to  law.  He  shows  complete 
familiarity  with  the  whole  subject,  and  is  as  happy  in  demolishing 
the  theory  of  the  people's  right  to  the  land  as  in  demonstrating  the 
very  general  disappearance  of  economic  rent  of  agricultural  land."— 
Glasgow  Herald. 

"  Everything  that  Professor  J.  S.  Nicholson  writes  on  a  politico- 
economical  question  deserves  attention  ;  and  the  little  book  he  has 
just  issued  will  be  found  instructive  by  such  students." — New  Age. 


"  Professor  Nicholson  writes  out  of  a  full  knowledge  of  his  subject, 
and  he  has  no  political  or  other  purpose  to  serve  in  what  he  writes,  so 
that  his  evidence  and  the  conclusions  at  which  he  arrives  will  command 
the  respect  of  all  parties,  whether  they  agree  with  him  or  not.  The 
book  does  not  take  long  in  the  reading,  and  for  homely  force  and  vigour 
it  would  be  difficult  for  any  farmer,  however  keenly  he  feels  the  injustice 
of  his  position,  to  make  out  a  more  telling  case  for  himself  than  Prof. 
Nicholson  here  places  in  his  hand." — Darlington  Times. 

"  The  volume  is  a  wonderfully  clear  and  concise  exposition  of  the  side 
of  the  case  that  Prof.  Nicholson  has  espoused.  His  conclusions  have  of 
course  to  be  tested  in  the  light  of  the  broadest  considerations  of  public 
policy.  As  he  himself  asserts,  agriculture  cannot  alone  be  held  in  view 
when  examining  the  equitableness  of  taxation  ;  and  the  volume  suggests 
a  whole  series  of  trains  of  thought  as  to  the  intricate  problems  of  local 
and  national  taxation." — Sheffield  Independent. 

"  His  general  conclusion  is  that  the  continuance  of  the  old  system  of 
taxation  imposes  an  inequitable  burden  on  the  agricultural  interests  and 
is  detrimental  to  the  public  good.  Dr,  Nicholson  looks  for  relief  to 
agriculture  in  the  remission  of  internal  differential  taxation,  and  not  in 
the  illusory  imposition  of  taxes  on  the  foreigner." — Commonwealth. 


LONDON 

SWAN  SONNENSCHEIN  &  CO.,  LIM. 

25   HIGH  STREET,   BLOOMSBURY,  W.C. 


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