Principles of Political Economy with some of their Applications to Social Philosophy
By John Stuart Mill
John Stuart Mill (1806-1873) originally wrote the
Principles of Political Economy, with some of their Applications to Social Philosophy very quickly, having studied economics under the rigorous tutelage of his father, James, since his youth. It was published in 1848 (London: John W. Parker, West Strand) and was republished with changes and updates a total of seven times in Mill’s lifetime.The edition presented here is that prepared by W. J. Ashley in 1909, based on Mill’s 7th edition, 1870. Ashley followed the 7th edition with great care, noting changes in the editions in footnotes and in occasional square brackets within the text. The text provides English translations to several lengthy quotations originally quoted by Mill in French. Ashley selected these from an 1865 “People’s Edition” of the Principles, but left in those quotations that had been omitted in that edition. He also prepared a useful Bibliographical Appendix, with additional readings and excerpts from some of Mill’s later writings, which we also include in this Econlib Edition. More on Mill’s life and works, as well as details of Ashley’s procedure, can be found in his Introduction.A few corrections of obvious typos were made for this website edition. However, because the original edition was so internally consistent and carefully proofread, we have erred on the side of caution, allowing some typos to remain lest someone doing academic research wishes to follow up. We have changed small caps to full caps for ease of using search engines.Internal references by page numbers have been replaced by linked paragraph reference numbers appropriate for this online edition. Paragraph references typically have three parts: the book, chapter, and paragraph. E.g.,
I.XI.15 refers to Book I, Chapter XI, paragraph 15.
William J. Ashley, ed.
First Pub. Date
London; Longmans, Green and Co.
The text of this edition is in the public domain. Picture of John Stuart Mill courtesy of The Warren J. Samuels Portrait Collection at Duke University.
- Preliminary Remarks
- Bibliographical Appendix
Book II, Chapter IX
§1. By the general appellation of cottier tenure I shall designate all cases without exception in which the labourer makes his contract for land without the intervention of a capitalist farmer, and in which the conditions of the contract, especially the amount of rent, are determined not by custom but by competition. The principal European example of this tenure is Ireland, and it is from that country that the term cottier is derived.
*27 By far the greater part of the agricultural population of Ireland might until very lately have been said to be
*28 cottier-tenants; except so far as the Ulster tenant-right constituted an exception. There was, indeed, a numerous class of labourers who (we may presume through the refusal either of proprietors or of tenants in possession to permit any further subdivision) had been unable to obtain even the smallest patch of land as permanent tenants. But, from the deficiency of capital, the custom of paying wages in land was so universal, that even those who worked as casual labourers for the cottiers or for such larger farmers as were found in the country, were usually paid not in money, but by permission to cultivate for the season a piece of ground, which was generally delivered to them by the farmer ready manured, and was known by the name of conacre. For this they agreed to pay a money rent, often of several pounds an acre, but no money actually passed, the debt being worked out in labour, at a money valuation.
The produce, on the cottier system, being divided into two portions, rent, and the remuneration of the labourer; the one is evidently determined by the other. The labourer has whatever the landlord does not take: the condition of the labourer depends on the amount of rent. But rent, being regulated by competition, depends upon the relation between the demand for land, and the supply of it. The demand for land depends on the number of competitors, and the competitors are the whole rural population. The effect, therefore, of this tenure, is to bring the principle of population to act directly on the land, and not, as in England, on capital. Rent, in this state of things, depends on the proportion between population and land. As the land is a fixed quantity, while population has an unlimited power of increase; unless something checks that increase, the competition for land soon forces up rent to the highest point consistent with keeping the population alive. The effects, therefore, of cottier tenure depend on the extent to which the capacity of population to increase is controlled, either by custom, by individual prudence, or by starvation and disease.
It would be an exaggeration to affirm, that cottier tenancy is absolutely incompatible with a prosperous condition of the labouring class. If we could suppose it to exist among a people to whom a high standard of comfort was habitual; whose requirements were such, that they would not offer a higher rent for land than would leave them an ample subsistence, and whose moderate increase of numbers left no unemployed population to force up rents by competition, save when the increasing produce of the land from increase of skill would enable a higher rent to be paid without inconvenience; the cultivating class might be as well remunerated, might have as large a share of the necessaries and comforts of life, on this system of tenure as on any other. They would not, however, while their rents were arbitrary, enjoy any of the peculiar advantages which metayers on the Tuscan system derive from their connexion with the land. They would neither have the use of a capital belonging to their landlords, nor would the want of this be made up by the intense motives to bodily and mental exertion which act upon the peasant who has a permanent tenure. On the contrary, any increased value given to the land by the exertions of the tenant, would have no effect but to raise the rent against himself, either the next year, or at farthest when his lease expired. The landlords might have justice or good sense enough not to avail of the advantage which competition would give them; and different landlords would do so in different degrees. But it is never safe to expect that a class or body of men will act in opposition to their immediate pecuniary interest; and even a doubt on the subject would be almost as fatal as a certainty, for when a person is considering whether or not to undergo a present exertion or sacrifice for a comparatively remote future, the scale is turned by a very small probability that the fruits of the exertion or of the sacrifice will be taken away from him. The only safeguard against these uncertainties would be the growth of a custom, insuring a permanence of tenure in the same occupant, without liability to any other increase of rent than might happen to be sanctioned by the general sentiments of the community. The Ulster tenant-right is such a custom. The very considerable sums which outgoing tenants obtain from their successors, for the goodwill of their farms,
*29 in the first place actually limit the competition for land to persons who have such sums to offer: while the same fact also proves that full advantage is not taken by the landlord of even that more limited competition, since the landlord’s rent does not amount to the whole of what the incoming tenant not only offers but actually pays. He does so in the full confidence that the rent will not be raised; and for this he has the guarantee of a custom, not recognised by law, but deriving its binding force from another sanction, perfectly well understood in Ireland.
*30 Without one or other of these supports, a custom limiting the rent of land is not likely to grow up in any progressive community. If wealth and population were stationary, rent also would generally be stationary, and after remaining a long time unaltered, would probably come to be considered unalterable. But all progress in wealth and population tends to a rise of rents. Under a metayer system there is an established mode in which the owner of land is sure of participating in the increased produce drawn from it. But on the cottier system he can only do so by a readjustment of the contract, while that readjustment, in a progressive community, would almost always be to his advantage. His interest, therefore, is decidedly opposed to the growth of any custom commuting rent into a fixed demand.
§2. Where the amount of rent is not limited, either by law or custom, a cottier system has the disadvantages of the worst metayer system, with scarcely any of the advantages by which, in the best forms of that tenure, they are compensated. It is scarcely possible that cottier agriculture should be other than miserable. There is not the same necessity that the condition of the cultivators should be so. Since by a sufficient restraint on population competition for land could be kept down, and extreme poverty prevented; habits of prudence and a high standard of comfort, once established, would have a fair chance of maintaining themselves: though even in these favourable circumstances the motives to prudence would be considerably weaker than in the case of metayers, protected by custom (like those of Tuscany) from being deprived of their farms: since a metayer family, thus protected, could not be impoverished by any other improvident multiplication than their own, but a cottier family, however prudent and self-restraining, may have the rent raised against it by the consequences of the multiplication of other families. Any protection to the cottiers against this evil could only be derived from a salutary sentiment of duty or dignity, pervading the class. From this source, however, they might derive considerable protection. If the habitual standard of requirement among the class were high, a young man might not choose to offer a rent which would leave him in a worse condition than the preceding tenant; or it might be the general custom, as it actually is in some countries, not to marry until a farm is vacant.
But it is not where a high standard of comfort has rooted itself in the habits of the labouring class, that we are ever called upon to consider the effects of a cottier system. That system is found only where the habitual requirements of the rural labourers are the lowest possible; where as long as they are not actually starving, they will multiply: and population is only checked by the diseases, and the shortness of life, consequent on insufficiency of merely physical necessaries. This was
*31 the state of the largest portion of the Irish peasantry. When a people have sunk into this state, and still more when they have been in it from time immemorial, the cottier system is an almost insuperable obstacle to their emerging from it. When the habits of the people are such that their increase is never checked but by the impossibility of obtaining a bare support, and when this support can only be obtained from land, all stipulations and agreements respecting amount of rent are merely nominal; the competition for land makes the tenants undertake to pay more than it is possible they should pay, and when they have paid all they can, more almost always remains due.
“As it may fairly be said of the Irish peasantry,” said Mr. Revans, the Secretary to the Irish Poor Law Enquiry Commission,
*32 “that every family which has not sufficient land to yield its food has one or more of its members supported by begging, it will easily be conceived that every endeavour is made by the peasantry to obtain small holdings, and that they are not influenced in their biddings by the fertility of the land, or by their ability to pay the rent, but solely by the offer which is most likely to gain them possession. The rents which they promise, they are almost invariably incapable of paying; and consequently they become indebted to those under whom they hold, almost as soon as they take possession. They give up, in the shape of rent, the whole produce of the land with the exception of a sufficiency of potatoes for a subsistence; but as this is rarely equal to the promised rent, they constantly have against them an increasing balance. In some cases, the largest quantity of produce which their holdings ever yielded, or which, under their system of tillage, they could in the most favourable seasons be made to yield, would not be equal to the rent bid; consequently, if the peasant fulfilled his engagement with his landlord, which he is rarely able to accomplish, he would till the ground for nothing, and give his landlord a premium for being allowed to till it. On the seacoast, fishermen, and in the northern counties those who have looms, frequently pay more in rent than the market value of the whole produce of the land they hold. It might be supposed that they would be better without land under such circumstances. But fishing might fail during a week or two, and so might the demand for the produce of the loom, when, did they not possess the land upon which their food is grown, they might starve. The full amount of the rent bid, however, is rarely paid. The peasant remains constantly in debt to his landlord; his miserable possessions—the wretched clothing of himself and of his family, the two or three stools, and the few pieces of crockery, which his wretched hovel contains, would not, if sold, liquidate the standing and generally accumulating debt. The peasantry are mostly a year in arrear, and their excuse for not paying more is destitution. Should the produce of the holding, in any year, be more than usually abundant, or should the peasant by any accident become possessed of any property, his comforts cannot be increased; he cannot indulge in better food, nor in a greater quantity of it. His furniture cannot be increased, neither can his wife or children be better clothed. The acquisition must go to the person under whom he holds. The accidental addition will enable him to reduce his arrear of rent, and thus to defer ejectment. But this must be the bound of his expectation.”
As an extreme instance of the intensity of competition for land, and of the monstrous height to which it occasionally forced up the nominal rent; we may cite from the evidence taken by Lord Devon’s Commission,
*33 a fact attested by Mr. Hurly, Clerk of the Crown for Kerry: “I have known a tenant bid for a farm that I was perfectly well acquainted with, worth 50
l. a year: I saw the competition get up to such an extent, that he was declared the tenant at 450
§3. In such a condition, what can a tenant gain by any amount of industry or prudence, and what lose by any recklessness? If the landlord at any time exerted his full legal rights, the cottier would not be able even to live. If by extra exertion he doubled the produce of his bit of land, or if he prudently abstained from producing mouths to eat it up, his only gain would be to have more left to pay to his landlord; while, if he had twenty children, they would still be fed first, and the landlord could only take what was left. Almost alone amongst mankind the cottier is in this condition, that he can scarcely be either better or worse off by any act of his own. If he were industrious or prudent, nobody but his landlord would gain; if he is lazy or intemperate, it is at his landlord’s expense. A situation more devoid of motives to either labour or self-command, imagination itself cannot conceive. The inducements of free human beings are taken away, and those of a slave not substituted. He has nothing to hope, and nothing to fear, except being dispossessed of his holding, and against this he protects himself by the
ultima ratio of a defensive civil war. Rockism and Whiteboyism were
*34 the determination of a people who had nothing that could be called theirs but a daily meal of the lowest description of food, not to submit to being deprived of that for other people’s convenience.
Is it not, then, a bitter satire on the mode in which opinions are formed on the most important problems of human nature and life, to find public instructors of the greatest pretension, imputing the backwardness of Irish industry, and the want of energy of the Irish people in improving their condition, to a peculiar indolence and
insouciance in the Celtic race? Of all vulgar modes of escaping from the consideration of the effect of social and moral influences on the human mind, the most vulgar is that of attributing the diversities of conduct and character to inherent natural differences. What race would not be indolent and insouciant when things are so arranged, that they derive no advantage from forethought or exertion? If such are the arrangements in the midst of which they live and work, what wonder if the listlessness and indifference so engendered are not shaken off the first moment an opportunity offers when exertion would really be of use? It is very natural that a pleasure-loving and sensitively organized people like the Irish, should be less addicted to steady routine labour than the English, because life has more excitements for them independent of it; but they are not less fitted for it than their Celtic brethren the French, nor less so than the Tuscans, or the ancient Greeks. An excitable organization is precisely that in which, by adequate inducements, it is easiest to kindle a spirit of animated exertion. It speaks nothing against the capacities of industry in human beings, that they will not exert themselves without motive. No labourers work harder, in England or America, than the Irish; but not under a cottier system.
§4. The multitudes who till the soil of India, are in a condition sufficiently analogous to the cottier system, and at the same time sufficiently different from it, to render the comparison of the two a source of some instruction. In most parts of India there are, and perhaps have always been, only two contracting parties, the landlord and the peasant: the landlord being generally the sovereign, except where he has, by a special instrument, conceded his rights to an individual, who becomes his representative. The payments, however, of the peasants, or ryots as they are termed, have seldom if ever been regulated, as in Ireland, by competition. Though the customs locally obtaining were infinitely various, and though practically no custom could be maintained against the sovereign’s will, there was always a rule of some sort common to a neighbourhood; the collector did not make his separate bargain with the peasant, but assessed each according to the rule adopted for the rest. The idea was thus kept up of a right of property in the tenant, or at all events, of a right to permanent possession; and the anomaly arose of a fixity of tenure in the peasant-farmer, co-existing with an arbitrary power of increasing the rent.
When the Mogul government substituted itself throughout the greater part of India for the Hindoo rulers, it proceeded on a different principle. A minute survey was made of the land, and upon that survey an assessment was founded, fixing the specific payment due to the government from each field. if this assessment had never been exceeded, the ryots would have been in the comparatively advantageous position of peasant-proprietors, subject to a heavy, but a fixed quit-rent. The absence, however, of any real protection against illegal extortions, rendered this improvement in their condition rather nominal than real; and, except during the occasional accident of a humane and vigorous local administrator, the exactions had no practical limit but the inability of the ryot to pay more.
It was to this state of things that the English rulers of India succeeded; and they were, at an early period, struck with the importance of putting an end to this arbitrary character of the land-revenue, and imposing a fixed limit to the government demand. They did not attempt to go back to the Mogul valuation. it has been in general the very rational practice of the English Government in India to pay little regard to what was laid down as the theory of the native institutions, but to inquire into the rights which existed and were respected in practice, and to protect and enlarge those. For a long time, however, it blundered grievously about matters of fact, and grossly misunderstood the usages and rights which it found existing. Its mistakes arose from the inability of ordinary minds to imagine a state of social relations fundamentally different from those with which they are practically familiar. England being accustomed to great estates and great landlords, the English rulers took it for granted that India must possess the like; and looking round for some set of people who might be taken for the objects of their search, they pitched upon a sort of tax-gatherers called zemindars. “The zemindar,” says the philosophical historian of India,
*35 “had some of the attributes which belong to a landowner; he collected the rents of a particular district, he governed the cultivators of that district, lived in comparative splendour, and his son succeeded him when he died. The zemindars, therefore, it was inferred without delay, were the proprietors of the soil, the landed nobility and gentry of India. It was not considered that the zemindars, though they collected the rents, did not keep them; but paid them all away with a small deduction to the government. It was not considered that if they governed the ryots, and in many respects exercised over them despotic power, they did not govern them as tenants of theirs, holding their lands either at will or by contract under them. The possession of the ryot was an hereditary possession; from which it was unlawful for the zemindar to displace him; for every farthing which the zemindar drew from the ryot, he was bound to account; and it was only by fraud, if, out of all that he collected, he retained an
ana more than the small proportion which, as pay for collection, he was permitted to receive.”
“There was an opportunity in India,” continues the historian, “to which the history of the world presents not a parallel. Next after the sovereign, the immediate cultivators had, by far, the greatest portion of interest in the soil. For the rights (such as they were) of the zemindars, a complete compensation might have easily been made. The generous resolution was adopted, of sacrificing to the improvement of the country, the proprietary rights of the sovereign. The motives to improvement which property gives, and of which the power was so justly appreciated, might have been bestowed upon those upon whom they would have operated with a force incomparably greater than that with which they could operate upon any other class of men: they might have been bestowed upon those from whom alone, in every country, the principal improvements in agriculture must be derived, the immediate cultivators of the soil. And a measure worthy to be ranked among the noblest that ever were taken for the improvement of any country, might have helped to compensate the people of India for the miseries of that misgovernment which they had so long endured. But the legislators were English aristocrats; and aristocratical prejudices prevailed.”
The measure proved a total failure, as to the main effects which its well meaning promoters expected from it. Unaccustomed to estimate the mode in which the operation of any given institution is modified even by such variety of circumstances as exists within a single kingdom, they flattered themselves that they had created, throughout the Bengal provinces, English landlords, and it proved that they had only created Irish ones. The new landed aristocracy disappointed every expectation built upon them. They did nothing for the improvement of their estates, but everything for their own ruin. The same pains not being taken, as had been taken in Ireland, to enable landlords to defy the consequences of their improvidence, nearly the whole land of Bengal had to be sequestrated and sold, for debts or arrears of revenue, and in one generation most of the ancient zemindars had ceased to exist. Other families, mostly the descendants of Calcutta money dealers, or of native officials who had enriched themselves under the British government, now occupy their place; and live as useless drones on the soil which has been given up to them. Whatever the government has sacrificed of its pecuniary claims, for the creation of such a class, has at the best been wasted.
In the parts of India into which the British rule has been more recently introduced, the blunder has been avoided of endowing a useless body of great landlords with gifts from the public revenue. In most parts of the Madras and in part of the Bombay Presidency, the rent is paid directly to the government by the immediate cultivator. In the North-Western Provinces, the government makes its engagement with the village community collectively, determining the share to be paid by each individual, but holding them jointly responsible for each other’s default. But in the greater part of India, the immediate cultivators have not obtained a perpetuity of tenure at a fixed rent. The government manages the land on the principle on which a good Irish landlord manages his estate: not putting it up to competition, not asking the cultivators what they will promise to pay, but determining for itself what they can afford to pay, and defining its demand accordingly. In many districts a portion of the cultivators are considered as tenants of the rest, the government making its demand from those only (often a numerous body) who are looked upon as the successors of the original settlers or conquerors of the village. Sometimes the rent is fixed only for one year, sometimes for three or five; but the uniform tendency of present policy is towards long leases, extending, in the northern provinces of India, to a term of thirty years. This arrangement has not existed for a sufficient time to have shown by experience, how far the motives to improvement which the long lease creates in the minds of the cultivators, fall short of the influence of a perpetual settlement.
*37 But the two plans, of annual settlements and of short leases, are irrevocably condemned. They can only be said to have succeeded, in comparison with the unlimited oppression which existed before. They are approved by nobody, and were never looked upon in any other light than as temporary arrangements, to be abandoned when a more complete knowledge of the capabilities of the count should afford data for something more permanent.
Digest of Evidence taken by Lord Devon’s Commission, Introductory Chapter.) The compiler adds, “the comparative tranquillity of that district” (Ulster) “may perhaps be mainly attributable to this fact.”
Digest, ut supra.) “The present tenant-right of Ulster” (the writer judiciously remarks) “is an embryo
copyhold.” “Even there, if the tenant-right be disregarded, and a tenant be ejected without having received the price of his goodwill, outrages are generally the consequence.”—(Ch. viii.) “The disorganised state of Tipperary, and the agrarian combination throughout Ireland, are but a methodized war to obtain the Ulster tenant-right.”
Book II. Chapter IX. Section 2
Book II. Chapter IX. Section 3
Book II. Chapter IX. Section 4
History of British India, book vi. ch. 8.
“In the parts of India into which the British rule has been more recently introduced, the blunder has been avoided of endowing a useless body of great landlords with gifts from the public revenue; but along with the evil, the good also has been left undone. The government has done less for the ryots than it has required to be done for them by the landlords of its creation.”
These were omitted (as incorrect—see note of 1871, infra, p. 328) in the 3rd ed. (1852). In that edition was added the reference to Madras and Bombay, with the statement that “the rent on each class of land is fixed in perpetuity.” This incorrect statement was struck out of the 4th ed. (1857), and the reference to the North-Western Provinces added.]
Book II. Chapter X. Section 1