Rent control

“ Their returns are certain for, mark you, every tradesman pays his rent every Monday morning, there is no delay. If it be not paid the hour it is due, the landlord is empowered by law to send a bailiff to the house, to keep him there at an expense to the tenant of three shillings per day—and to request him, at the end of five days, to sell off the goods and chattels provided the demand is still unsatisfied. I know no better investment for capital, be it large or small, than that of which I speak. There are no taxes, no ground-rents, and the tenant is bound to keep his premises in repair. ”

“ Whether the landlord’s rent will by the law proposed in any city be diminished below the point of legitimate profit, cannot be certainly demonstrated until the experiment be tried. Some enlightened landlords, with a sense of their obligations toward their tenants, are perfectly willing to suffer this small diminution of income. Others are not, and the others, who usually constitute the majority, in alliance with the builders and material men, will always seek to prevent legislation which affects their pockets. ”

“ What is most singular of all is that the middlemen, who are subletting and subdividing their holdings at tremendous rack-rents, are among the most prominent in refusing to pay the chief landlord. They see a great immediate advantage to themselves in the present movement, for they give but short credit to their tenants, while they enjoy the full benefit of a "hanging gale," or owing always half a year's rent, according to the custom of this county. ”

“ But when they continue so long as they have done in this country, it is impossible for the landlord to do otherwise than proportion his rent accordingly, and take the chance of being obliged to lessen it again, on the return of the currency to its natural state. ”

“ When the landlord makes improvements which increase the productive power of his land, he is remunerated for them by an extra payment from the tenant; and this payment, which to the landlord is properly a profit on capital, is blended and confounded with rent. A tax on rent, if extending to this portion of it, would discourage landlords from making improvements; but whatever hinders improvements from being made in the manner in which people prefer to make them, will often prevent them from being made at all ”

“ I have, I think, now fully established my contention that the rate-rent which would be willingly offered by the tenants of Garden City, in respect of the advantages afforded them, would be amply sufficient, (1) to pay landlord’s rent in the form of interest on debentures; (2) to provide a sinking fund for the entire abolition of landlord’s rent; and (3) to provide for the municipal needs of the town without recourse to any Act of Parliament for the enforcement of rates—the community depending solely on the very large powers it possesses as a landlord. ”

“ I agree with those writers who maintain that it is prejudicial to the state that the rent fund should be enjoyed by a comparatively small number of persons, and think it would be advantageous to distribute it, by increasing the number of tenants-in-fee. ”

“ The condition of the labourer would not be a whit improved. If landlords were prohibited from asking an increase of rent from their tenants and from ejecting a tenant so long as the fixed rent was paid, the body of the producers would gain nothing. Economic rent would still increase, and would still steadily lessen the proportion of the produce going to labour and capital. ”

“ When, then, matters have reached the pass that an anti-rent agitation, based on the confiscation of property and the repudiation of contracts, has sprung up, and is swiftly spreading among an excitable people, it becomes important, in the highest degree, that the true nature of rent should be clearly understood by the whole country. Whatever may be ultimately decided about rent, let every man first know accurately what it is. ”

“ The increase of rent that goes on in progressive countries is at once seen to be the key that explains why wages and interest fail to increase with increase of productive power. For the wealth produced in every community is divided into two parts by what may be called the rent line, which is fixed by the margin of cultivation; that is the return that labour and capital could obtain from such natural opportunities as are free to them without the payment of rent. From the part of the produce below this line wages and interest must be paid. ”

“ But if changes are ever to be contemplated, a simple quantitative measure is the only safeguard against utter chaos. Thus rent, like interest, will be found indispensable as a measure under any efficient system of society, even if it might not always represent the payment of sums of money to private individuals. And that is why the principles governing rent possess, as I indicated at the outset of this chapter, an importance more fundamental than our present system of ownership and tenure. ”

“ It was urged again and again that the toilers who had imparted value to property were entitled to proprietary rights, as against the holders of titles whose exertions had been confined to the collection of rent. Therefore, it was maintained, the Government should not, in buying lands, do so on the basis of capitalizing a rent which had, as a value, been chiefly created by the industry of tenants. A good many occupiers of land on short or uncertain leases plainly manifested the universal tendency of such tenure—bad farming and a feeble interest in improvement of any kind. ”

“ It is very important to understand exactly how rent arises, for without knowing this it is impossible to see why a landlord should be allowed to come and take away a considerable part of what is produced, without taking any other trouble in the matter. But the fact is that we cannot do away with rents: they must go to some one or other, and the only real question which can arise is whether there shall be many landlords receiving small rents or few landlords with great rent-rolls. ”

“ This, and the frequent running away of the tenant, and the waste, greatly reduce the apparently enormous rent obtainable from this poorer class of tenants. For all these vices, risks, and defaults of others, the frugal and well-conducted workman who has no choice of habitation, is compelled to pay in the shape of an increased rent; he is most largely taxed in the increased rent, necessary as an insurance for the risks and losses occasioned by the defective state of legal remedies. ”

“ For, barring risks of storms or brigands, good farming nearly always leaves a profit, so that the tenant has not the face to claim [978] a reduction of rent. A landlord should not be a stickler for trifles or mean in the matter of little perquisites, such as cutting firewood, worrying his tenant unprofitably. But, while waiving the full rigour of the law, he should not omit to claim his dues in order to keep alive his rights: wholesale remission is a mistake. ”

“ Hence, one of the first charges on the results of labor is rent, and rent, be it noted, not to the community, but to an individual who has acquired the legal right to stand between labor and land. Now just as wage is determined practically by the standard of living, so is rent determined by the same thing. The landlord exacts as rent the value of the produce minus the subsistence of the tenant, and in many cases, if the farmer's receipts sink and there is no corresponding lowering of rent, the farmer cannot even subsist, and becomes bankrupt. ”

“ It is assumed that, if wages or profits fell below the points, which, on a comparison of the advantages and drawbacks, pecuniary and other, of farming and other occupations, are considered to be normal in the farming industry, some labourers and farmers would seek some more advantageous employment, and that, if they rose above, some fresh competitors would enter the ranks of agriculture. It is assumed that landlord and tenant are actuated by competitive considerations alone, the one trying to obtain the highest and the other the lowest rent. ”

“ Moreover, your representation of high farming as the substitute for Protection, and as sufficient to uphold the tottering rent-rolls under the regime of Free Trade, must have been considered insidious and dangerous doctrine, in the estimation of all those who looked upon the Auchness crutch as rotten and treacherous timber, and us calculated to injure tenants by ministering delusive expectations to the landlords. ”

“ But the fact is that the landlord's representative—his steward—has been forced to this step by the action and opinion of the tenant-farmers.
The argument is very cogent and clear. They say, 'We pay a rent which is almost as much as the land will bear; we suffer by foreign competition, bad seasons and so on, the market is falling, and we are compelled to reduce our labour expenditure. But then our workmen say that at the home farm the wages paid are a shilling or two higher, and therefore they will not accept a reduction. ”

“ Further, the judicial fixing of rents, which, as the time for rent revision has approached, has presented to the tenant the temptation not to make the best of his land, and so run the risk of an augmentation of rent, has been a source of insidious demoralisation to the occupant of the soil. ”

“ The fixing of fair rents, no doubt, acted as a curb on landlord rapacity, but from the tenants' point of view it was a wholly vicious, indeterminate and unsatisfactory system. It was incentive to indifferent farming, since the commissioners who had the fixing of rents, and the inspectors who examined the farms, made their valuations upon the farms as they saw them. True, the tenant could claim for his improvements, but in practice this was no real safeguard. The more industrious the tenant the higher the rent—the less industrious and the less capable the lower the figure to be paid. ”

“ The rent of the landlord is a value which, in ordinary cases, it is continually producing, over and above replacing, in the most complete manner, the whole consumption, the whole expense laid out upon the employment and maintenance both of the workmen and of their employer.
Artificers, manufacturers, and merchants can augment the revenue and wealth of their society by parsimony only; or, as it in this system, by privation, that is, by depriving themselves a part of the funds destined for their own subsistence. They annually reproduce nothing but those funds. ”

“ Then, indeed, men were not only willing to come into the terms, but eager; the best evidence of which is the fact, that the same tenants might have bought land, out and out, in every direction around them, had they not preferred the easier terms of the leases. Now that these same men, or their successors, have become rich enough to care more to be rid of the encumbrance of the rent than to keep their money, the rights of the parties certainly are not altered. ”

“ 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 themselves of the advantage which competition would give them ”

“ The landlords will therefore be compensated in value and price for what they lose in quantity; and will suffer only so far as they consume their rent in kind, or after receiving it in money, expend it in agricultural produce: that is, they only suffer as consumers of agricultural produce, and in common with all the other consumers. Considered as landlords, they have the same income as before; the tithe, therefore, falls on the consumer, and not on the landlord. ”

“ Here rent constitutes a species of reserve fund, which grows greater in proportion as these dangers impend by reason of the decline of wages and of the profit of capital, or interest. [159-2] Besides, precisely in times when rent is high, the sale and divisibility of landed estates act as a beneficent reaction against the monopoly of land, which is always akin to the condition of things created by rent.
But it is of immeasurably greater importance that high rents deter the people from abusing the soil in an anti-economic way ”

“ But in agriculture a landlord has only to inquire who can give the highest rent, having the largest capital, subject by the strictest penalties of law to the conditions of a lease dictated by the most scientific agriculturists under penalties fixed by the most cautious conveyancers. By this mode of procedure, recommended by the most liberal economists of our age,—barring those still more liberal who deny that property in land is any property at all,—by this mode of procedure, I say, a landlord does his duty to his country. ”

“ If they tax the incomes of the landlords under the durable rent system, why would not the parties aggrieved have the same right to take up arms to resist such an act of oppression as our fathers had in 1776? ”

“ Thence the consequence that not only is the landlord never willing to spend a farthing on the improvements of the land, but also that he systematically opposes them, for fear he should have to pay for them in the end. Besides many landlords have signed their new leases only after the farmer has given them a formal renunciation to the tenant right; or else they have taken advantage of the pretext that offered itself, and raised the rent by way of compensation against all risks. ”

“ Fortunately there is a solid substratum of tenants whose sound common sense prevents them from listening to the rather enchanting cry, 'Every man his own landlord.' They may desire and obtain a reduction of rent, but they treat it as a purely business transaction, and there lies all the difference. They do not make the shilling an acre less the groundwork of a revolution; because ten per cent, is remitted at the audit they do not cry for confiscation. ”