An Inquiry into the Principles of Political Economy
Chap. VII What Proportion of Inhabitants is necessary for Agriculture, and what Proportion may be usefully employed in e
Enlightenment James Steuart EnglishI have proposed this question, not with an intention to answer it fully, but to point out, how, with the proper lights given, it may be answered.
As I write under circumstances not the most favourable for having recourse to books, I must employ those I have. The article Political Arithmetic, of Mr Chambers's Cyclopedia, furnishes me with some extracts from Sir William Petty, and Dr Davenant, which I here intend to employ, towards pointing out a solution of the question proposed. These authors consider the state of England as it appeared to them, and what they say is conclusive with respect to that state only.
Sir William Petty supposes the inhabitants of England to be six millions, the value of grain yearly consumed by them ten millions sterling, the bushel of wheat reckoned at 5s., and that of barley at 2s. 6d. If we cast the two together, and reckon upon an average, this will make the quarter, or eight bushels of grain, worth 1l. 10s.: but in regard, the barley cannot amount to one half of all the grain consumed, especially as there is a good quantity of rye made use of, which is worth more than the barley, though less than the wheat; let us suppose the grain worth 32s. per quarter, at a medium; then ten millions sterling will purchase six millions of quarters of grain, or thereabouts; which, used for nourishment, in bread and beer, gives the mean quantity of one quarter, or 512 pounds troy of grain for every inhabitant, including the nourishment of his proportional part of animals; supposing that Sir William attended to this circumstance, for it is not mentioned by Chambers. And I must observe, by-the-bye, that this computation may hold good as to England, where people eat so little bread; but would not answer in France, nor in almost any other country I have seen.
Dr Davenant, correcting Sir William's calculation, makes the inhabitants 5,545,000. These, according to Sir William's prices and proportions, would consume to the amount of 8,872,000l. sterling. but the Dr carries it, with reason, a little higher, and states it at 9,075,000l. sterling; the difference, however, is inconsiderable. From this he concludes the gross produce of the corn-fields to be about 9,075,000l. sterling. I make no criticism upon this computation.
Next, as to the value of other lands; I find Sir William reckons the gross produce of them in butter, cheese, milk, wool, horses yearly bred, flesh for food, tallow, hides, hay, and timber, to amount to 12,000,000l. sterling: The amount therefore of the gross produce of all the lands in England must be equal to these two sums added together, that is, to 21,075,000l. sterling.
From these data, the Dr values the yearly rent of corn-lands at two million sterling, and those of pasture, &c. at seven millions; in all, nine millions.
From this it appears, that the land-rents of England are to the gross produce, as nine is to twenty-one, or thereabouts.
Let me now examine some other proportions.
The rents of the corn-lands are to the gross produce of them, as two is to nine; those of pasture, as seven to twelve.
Now it is very certain, that all rents are in a pretty just proportion to the gross produce, after deducting three principal articles.
First, The nourishment of the farmer, his family, and servants.
Secondly, The necessary expences of his family, for manufactures, and instruments for cultivating the ground.
Thirdly, His reasonable profits, according to the custom of every country.
Of these three articles, let us distinguish what part implies the direct consumption of the pure produce, from what does not.
Of the first sort are the nourishment of men and cattle, wool and flax for clothing, firing, and other smaller articles.
Of the second are all manufactures bought, servants' wages, the hire of labourers occasionally, and profits, either spent in luxury, (that is, superfluity,) lent, or laid up.
The three articles above mentioned (which we have distributed under two heads) being deducted from the gross produce, the remaining value shews the land-rent.
This being the case, I am next to examine the cause of the great disproportion between the rents of corn-lands, and those of pasture, when compared with the gross produce, in order to draw some conclusion, which may lead to the solution of the question here proposed.
This difference must proceed from the greater proportion of labouring and other inhabitants employed in consequence of tillage; which makes the expence of it far greater than that of pasture. And since, in the one and the other, every article of necessary expence or consumption ought naturally to be proportionally equal among those concerned in both, that is, proportional to the number of labouring inhabitants; it follows, that the proportion of people employed in agriculture, and upon the account of it, in different countries, is nearly in the ratio of the gross produce, to the land-rent; or, in other words, in the proportion of the consumption made by the farmers, and by those employed necessarily by them, to the net produce, which is the same thing.
Now as the consumption upon corn-farms is 7/9, and that upon pasture 5/12, the proportion of these two fractions must mark the ratio between the populousness of pasture-lands, and those in tillage; that is to say, tillage-lands in England were, at that time, peopled in proportion to pasture-lands, as 84 is to 45, or as 28 to 15.
This point being settled, I proceed to another: to wit, the application of this net produce or surplus of the quantity of food and necessaries remaining over and above the nourishment, consumption, and expence, of the inhabitants employed in agriculture; and which we have observed above to be equal to the land-rents of England, that is to say, to nine millions yearly.
Must not this of necessity be employed in the nourishment, and for the use of those whom we have called the free hands; who may be employed in manufactures, trades, or in any other way, according to the taste of the times?
Now the numbers of a people, I take to be very nearly in the proportion of the quantity of food they consume; especially when a society is taken thus, in such accumulative proportion, and when all are supposed to be under the same circumstances as to the plenty of the year.
The whole gross produce of England we have said to be 21,000,000 l. sterling, of which 9 millions have remained for those not employed in agriculture; the farmers, therefore, and their attendants, must annually consume 12 millions; consequently the last class is to the first as 12 is to 9. If, therefore, according to Dr Davenant, there be 5,545,000 people in that kingdom, there must be about 3,168,571 employed or dependent upon agriculture, and 2,376,429 free hands for every other occupation. But this proportion of farmers will be found far less, if we reflect, that we have reckoned for them the total amount of the three articles above mentioned, that is to say, the total consumption they make, as well in manufactures, profits upon their labour, &c. as for food and necessaries: whereas there has been nothing reckoned for the free hands, but the land-rent; consequently there should be added to the number of the latter as many as are employed in supplying with all sorts of manufactures the whole of the farmers of England, and all those who depend upon them; and this number must be taken from one and added to the other class. If this number be supposed to amount to four hundred thousand, it will do more than cast the balance upon the opposite side.
From these matters of fact (so far as they are so) we may conclude:
First, That the raising of the rents of lands shows the increase of industry, as it swells the fund of subsistence consumed by the industrious; that is, by those who buy it.
Secondly, That it may denote either an increase of inhabitants, or the depopulation of the land, in order to assemble the superfluous mouths in villages, towns, &c, where they may exercise their industry with greater convenience.
While the land-rents of Europe were very low, numbers of the inhabitants appeared to be employed in agriculture; but were really no more than idle consumers of the produce of it. This shall be further illustrated in the subsequent chapters.
Thirdly, The more a country is in tillage, the more it is inhabited, and the smaller is the proportion of free hands for all the services of the state. The more a country is in pasture, the less it is inhabited, but the greater is the proportion of free hands.
I do not pretend, as I have said above, that there is any calculation to be depended on in this chapter; I have only endeavoured to point out how a calculation might be made, when the true state of England comes to be known.
This question not being of a nature to enter into the chain of our reasoning, may be considered rather as incidental than essential; I have therefore treated it superficially and chiefly for the sake of the conclusions.
Our next inquiry will naturally be into the principles which determine the residence of inhabitants, in order to discover why, in all flourishing states, cities are now found to be every where on the growing hand.