future rapid progress are diminished by the high prices of corn
and labour, compared with other countries.

It is, therefore, of great importance, that these prices
should be increased as little as possible artificially, that is,
by taxation. But every tax which falls upon agricultural capital
tends to check the application of such capital, to the bringing
of fresh land under cultivation, and the improvement of the old.
It was shown, in a former part of this inquiry, that before such
application of capital could take place, the price of produce,
compared with the instruments of production, must rise
sufficiently to pay the farmer. But, if the increasing difficulties
to be overcome are aggravated by taxation, it is necessary,
that before the proposed improvements are undertaken, the
price should rise sufficiently, not only to pay the farmer,
but also the government. And every tax, which falls on
agricultural capital, either prevents a proposed improvement, or
causes it to be purchased at a higher price.

When new leases are let, these taxes are generally thrown off
upon the landlord. The farmer so makes his bargain, or ought so
to make it, as to leave himself, after every expense has been
paid, the average profits of agricultural stock in the actual
circumstances of the country, whatever they may be, and in
whatever manner they may have been affected by taxes,
particularly by so general a one as the property tax. The farmer,
therefore, by paying a less rent to his landlord on the renewal
of his lease, is relieved from any peculiar pressure, and may go
on in the common routine of cultivation with the common profits.
But his encouragement to lay out fresh capital in improvements is