An Essay on the Principle of Population
Book III, Chapter VIII
Of the Agricultural System.
As it is the nature of agriculture to produce subsistence for a greater number of families than can be employed in the business of cultivation, it might perhaps be supposed that a nation which strictly pursued an agricultural system would always have more food than was necessary for its inhabitants, and that its population could never be checked from the want of the means of subsistence.
It is indeed obviously true that the increase of such a country is not immediately checked, either by the want of power to produce, or even by the deficiency of the actual produce of the soil compared with the population. Yet if we examine the condition of its labouring classes, we shall find that the real wages of their labour are such as essentially to check and regulate their increase, by checking and regulating their command over the means of subsistence.
A country under certain circumstances of soil and situation, and with a deficient capital, may find it advantageous to purchase foreign commodities with its raw produce rather than manufacture them at home: and in this case it will necessarily grow more raw produce than it consumes. But this state of things is very little connected either with the permanent condition of the labouring classes of the society or the rate of their increase; and in a country where the agricultural system entirely predominates, and the great mass of its industry is directed towards the land, the condition of the people is subject to almost every degree of variation.
Under the agricultural system perhaps are to be found the two extremes in the condition of the poor; instances where they are in the best state, and instances where they are in the worst state of any of which we have accounts.
In a country where there is an abundance of good land, where there are no difficulties in the way of its purchase and distribution, and where there is an easy foreign vent for raw produce, both the profits of stock and the wages of labour will be high. These high profits and high wages, if habits of economy pretty generally prevail, will furnish the means of a rapid accumulation of capital and a great and continued demand for labour, while the rapid increase of population which will ensue will maintain undiminished the demand for produce, and check the fall of profits. If the extent of territory be considerable, and the population comparatively inconsiderable, the land may remain understocked both with capital and people for some length of time, notwithstanding a rapid increase of both; and it is under these circumstances of the agricultural system that labour is able to command the greatest portion of the necessaries of life, and that the condition of the labouring classes of society is the best.
The only drawback to the wealth of the labouring classes under these circumstances is the relatively low value of the raw produce.
If a considerable part of the manufactured commodities used in such a country be purchased by the export of its raw produce, it follows as a necessary consequence that the relative value of its raw produce will be lower, and of its manufactured produce higher, than in the countries with which such a trade is carried on. But where a given portion of raw produce will not command so much of manufactured and foreign commodities as in other countries, the condition of the labourer cannot be exactly measured by the quantity of raw produce which falls to his share. If, for instance, in one country the yearly earnings of a labourer amount in money value to fifteen quarters of wheat and in another to nine, it would be incorrect to infer that their relative condition, and the comforts which they enjoy, were in the same proportion, because the whole of a labourer's earnings are not spent in food; and if that part which is not so spent will, in the country where the value of fifteen quarters is earned, not go near so far in the purchase of clothes and other conveniences as in the countries where the value of nine quarters is earned, it is clear that altogether the situation of the labourer in the latter country may approach nearer to that of the labourer in the former than might at first be supposed.
At the same time it should be recollected that quantity always tends powerfully to counterbalance any deficiency of value; and the labourer who earns the greatest number of quarters may still command the greatest quantity of necessaries and conveniences combined, though not to the extent implied by the proportions of the raw produce.
America affords a practical instance of the agricultural system in a state the most favourable to the condition of the labouring classes. The nature of the country is such as to make it answer to employ a very large proportion of its capital in agriculture; and the consequence has been a very rapid increase of it. This rapid increase both of the quantity and value of capital has kept up a steady and continued demand for labour. The labouring classes have in consequence been peculiarly well paid. They have been able to command an unusual quantity of the necessaries of life, and the progress of population has been unusually rapid.
Yet even here, some little drawback has been felt from the relative cheapness of corn. As America till the late war imported the greatest part of its manufactures from England, and as England imported flour and wheat from America, the value of food in America compared with manufactures must have been decidedly less than in England. Nor would this effect take place merely with relation to the foreign commodities imported into America, but also to those of its home manufactures, in which it has no particular advantage. In agriculture, the abundance of good land would counterbalance the high wages of labour and high profits of stock, and keep the price of corn moderate, notwithstanding the great expense of these two elements of price. But in the production of manufactured commodities they must necessarily tell, without any particular advantage to counterbalance them, and must in general occasion in home goods, as well as foreign, a high price compared with food.
Under these circumstances, the condition of the labouring classes of society cannot in point of conveniences and comforts be so much better than that of the labourers of other countries as the relative quantity of food which they earn might seem to indicate; and this conclusion is sufficiently confirmed by experience. In some very intelligent Travels through a great part of England, written in 1810 and 1811 by Mr. Simond, a French gentleman, who had resided above twenty years in America, the author seems to have been evidently much struck with the air of convenience and comfort in the houses of our peasantry, and the neatness and cleanliness of their dress. In some parts of his tour he saw so many neat cottages, so much good clothing, and so little appearance of poverty and distress, that he could not help wondering where the poor of England and their dwellings were concealed. These observations, coming from an able, accurate and apparently most impartial observer, just landed from America and visiting England for the first time, are curious and instructive; and the facts which they notice, though they may arise in part from the different habits and modes of life prevailing in the two countries, must be occasioned in a considerable degree by the causes above mentioned.
A very striking instance of the disadvantageous effect of a low relative price of food on the condition of the poor may be observed in Ireland. The food of Ireland has increased so rapidly during the last century, and so large a portion of that which forms the principal support of the lower classes of society has been obtained by them, that the increase of population has been more rapid than in almost any known country, except America. The Irish labourer paid in potatoes has earned perhaps the means of subsistence for double the number of persons that could be supported by the earnings of an English labourer paid in wheat; and the increase of population in the two countries during the last century has been nearly in proportion to the relative quantity of the customary food awarded to the labourers in each. But their general condition with respect to conveniences and comforts is very far indeed from being in a similar proportion. The great quantity of food which land will bear when planted with potatoes, and the consequent cheapness of the labour supported by them; tends rather to raise than to lower the rents of land, and as far as rent goes, to keep up the price of the materials of manufactures and all other sorts of raw produce, except potatoes. The indolence and want of skill which usually accompany such a state of things tend further to render all wrought commodities comparatively dear. In home manufactures, therefore, a great relative disadvantage will be suffered, and a still greater both in the raw and manufactured produce of foreign countries. The value of the food which the Irish labourer earns above what he and his family consume will go but a very little way in the purchase of clouting, lodging and other conveniences; and the consequence is that his condition in these respects is extremely miserable, at the same time that his means of subsistence, such as they are, may be comparatively abundant.
In Ireland the money price of labour is not much more than the half of what it is in England. The quantity of food earned by no means makes up for its very low price. A certain portion therefore of the Irish labourer's wages (a fourth or a fifth for instance) will go but a very little way in the purchase of manufactures and foreign produce. In the United States, on the other hand, even the money wages of labour are nearly double those of England. Though the American labourer therefore cannot purchase manufactures and foreign produce with the food that he earns so cheap as the English labourer, yet the greater quantity of this food more than makes up for its lower price. His condition, compared with the labouring classes of England, though it may not be so much superior as their relative means of subsistence might indicate, must still on the whole have decidedly the advantage; and altogether, perhaps, the United States may be produced as an instance of the agricultural system in which the condition of the labouring classes is the best of any that we know.
The instances where, under the agricultural system, the condition of the lower classes of society is very wretched, are more frequent. When the accumulation of capital stops, whatever may be the cause, the population, before it comes to a stand, will always be pressed on as near to the limits of the actual means of subsistence, as the habits of the lower classes of the society will allow; that is, the real wages of labour will sink, till they are only just sufficient to maintain a stationary population. Should this happen, as it frequently does, while land is still in abundance and capital scarce, the profits of stock will naturally be high; but corn will be very cheap, owing to the goodness and plenty of the land, and the stationary demand for it, notwithstanding the high profits of stock; while these high profits, together with the want of skill and proper division of labour, which usually attend a scanty capital, will render all domestic manufactured commodities comparatively very dear. This state of things will naturally be unfavourable to the generation of those habits of prudential restraint which most frequently arise from the custom of enjoying conveniences and comforts, and it is to be expected that the population will not stop till the wages of labour, estimated even in food, are very low. But in a country where the wages of labour estimated in food are low, and that food is relatively of a very low value, both with regard to domestic and foreign manufactures, the condition of the labouring classes of society must be the worst possible.
Poland, and some parts of Russia, Siberia and European Turkey, afford instances of this kind. In Poland the population seems to be almost stationary or very slowly progressive; and as both the population and produce are scanty, compared with the extent of territory, we may infer with certainty that its capital is scanty, and yet slowly progressive. It follows, therefore, that the demand for labour increases very slowly, and that the real wages of labour, or the command of the labouring classes over the necessaries and conveniences of life, are such as to keep the population down to the level of the slowly increasing quantity that is awarded to them. And as from the state of the country the peasantry cannot have been much accustomed to conveniences and comforts, the checks to its population are more likely to be of the positive than of the preventive kind.
Yet here corn is in abundance, and great quantities of it are yearly exported. Hence it appears that it is not either the power of the country to produce food, or even what it actually produces, that limits and regulates the progress of population, but the quantity and value of the food which in the actual state of things is awarded to the labourer, and the rate at which these funds appropriated increase.
In the present case the demand for labour is very small, and though the population is inconsiderable, it is greater than the scanty capital of the country can fully employ; the condition of the labourer therefore is depressed by his being able to command only such a quantity of food as will maintain a stationary or very slowly increasing population. It is further depressed by the low relative value of the food that he earns, which gives to any surplus he may possess a very small power in the purchase of manufactured commodities or foreign produce.
Under these circumstances, we cannot be surprised that all accounts of Poland should represent the condition of the lower classes of society as extremely miserable; and the other parts of Europe which resemble Poland in the state of their land and capital, resemble it in the condition of their people.
In justice, however, to the agricultural system, it should be observed that the premature check to the capital and the demand for labour, which occurs in some of the countries of Europe, while land continues in considerable plenty, is not occasioned by the particular direction of their industry, but by the vices of the government and the structure of the society, which prevent its full and fair developement in that direction.
Poland is continually brought forward as an example of the miserable effects of the agricultural system. But nothing surely can be less fair. The misery of Poland does not arise from its directing its industry chiefly to agriculture, but from the little encouragement given to industry of any kind, owing to the state of property and the servile condition of the people. While the land is cultivated by boors, the produce of whose exertions belongs entirely to their masters, and the whole society consists mainly of these degraded beings and the lords and owners of great tracts of territory, there will evidently be no class of persons possessed of the means either of furnishing an adequate demand at home for the surplus produce of the soil, or of accumulating fresh capital and increasing the demand for labour. In this miserable state of things, the best remedy would unquestionably be the introduction of manufactures and commerce; because the introduction of manufactures and commerce could alone liberate the mass of the people from slavery and give the necessary stimulus to industry and accumulation. But were the people already free and industrious, and landed property easily divisible and alienable, it might still answer to such a country as Poland to purchase its finer manufactures from foreign countries by means of its raw products, and thus to continue essentially agricultural for many years. Under these new circumstances, however, it would present a totally different picture from that which it exhibits at present; and the condition of the people would more resemble that of the inhabitants of the United States of America, than of the inhabitants of the unimproved countries of Europe. Indeed America is perhaps the only modern instance of the fair operation of the agricultural system. In every country of Europe, and in most of its colonies in other parts of the world, formidable obstacles still exist to the employment of capital upon the land, arising from the remains of the feudal system. But these obstacles which have essentially impeded cultivation have been very far indeed from proportionably encouraging other branches of industry. Commerce and manufactures are necessary to agriculture; but agriculture is still more necessary to commerce and manufactures. It must ever be true that the surplus produce of the cultivators, taken in its most enlarged sense, measures and limits the growth of that part of the society which is not employed upon the land. Throughout the whole world the number of manufacturers, of merchants, of proprietors, and of persons engaged in the various civil and military professions, must be exactly proportioned to this surplus produce, and cannot in the nature of things increase beyond it. If the earth had been so niggardly of her produce as to oblige all her inhabitants to labour for it, no manufactures or idle persons could ever have existed. But her first intercourse with man was a voluntary present, not very large indeed, but sufficient as a fund for his subsistence till he could procure a greater. And the power to procure a greater was given to him in that quality of the earth by which it may be made to yield a much larger quantity of food, and of the materials of clothing and lodging, than is necessary to feed, clothe and lodge the persons employed in the cultivation of the soil. This quality is the foundation of that surplus produce which peculiarly distinguishes the industry employed upon the land. In proportion as the labour and ingenuity of man exercised upon the land have increased this surplus produce, leisure has been given to a greater number of persons to employ themselves in all the inventions which embellish civilized life; while the desire to profit by these inventions has continued to stimulate the cultivators to increase their surplus produce. This desire indeed may be considered as almost absolutely necessary to give it its proper value, and to encourage its further extension; but still the order of precedence is, strictly speaking, the surplus produce; because the foods for the subsistence of the manufacturer must be advanced to him before he can complete his work; and no step can be taken in any other sort of industry unless the cultivators obtain from the soil more than they themselves consume.
If in asserting the peculiar productiveness of the labour employed upon the land, we look only to the clear monied rent yielded to a certain number of proprietors, we undoubtedly consider the subject in a very contracted point of view. In the advanced stages of society, this rent forms indeed the most prominent portion of the surplus produce here meant; but it may exist equally in the shape of high wages and profits during the earlier periods of cultivation, when there is little or no rent. The labourer who earns a value equal to fifteen or twenty quarters of corn in the year may have only a family of three or four children, and not consume in kind above five or six quarters; and the owner of the farming stock, which yields high profits, may consume but a very moderate proportion of them in food and raw materials. All the rest, whether in the shape of wages and profits, or of rents, may be considered as a surplus produce from the soil, which affords the means of subsistence and the materials of clothing and lodging to a certain number of people according to its extent, some of whom may live without manual exertions, and others employ themselves in modifying the raw materials obtained from the earth into the forms best suited to the gratification of man.
It will depend of course entirely upon its answering to a country to exchange a part of the surplus produce for foreign commodities, instead of consuming it at home, whether it is to be considered as mainly agricultural or otherwise. And such an exchange of raw produce for manufactures, or peculiar foreign products, may for a period of some extent suit a state, which might resemble Poland in scarcely any other feature but that of exporting corn.
It appears then, that countries in which the industry of the inhabitants is principally directed towards the land, and in which corn continues to be exported, may enjoy great abundance or experience great want, according to the particular circumstances in which they are placed. They will in general not be much exposed to the temporary evils of scarcity arising from the variations of the seasons; but the quantity of food permanently awarded to the labourer may be such as not to allow of an increase of population; and their state, in respect to their being progressive, stationary or declining, will depend upon other causes than that of directing their attention principally to agriculture.
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