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some part of the price of the hay in the cost of carrying. Potatoes can usually be carried farther than hay without using up the value in transportation; Indian corn farther than potatoes; wheat farther than corn; animals farther than grain; and dairy products farther than animals. Tea, coffee, and spices will bear longer transportation than ordinary food products. Thus, all transportation may be regarded as a direct charge or tax upon the land, and must be deducted from its value.

The adaptation of the products to the market, and the competition to be met in such market, must also be taken into the economic account. So, also, must we take account of the return supplies to be obtained from the market, since these too cost something for transportation.

In this discussion of the nature of land values, no mention has been made of mineral products found in the earth. If the land covers a gold mine, or mines of iron or other metals, it has an independent value, and high in proportion to the richness and accessibility of its ores. So, also, coal-beds beneath the surface, or forests standing upon it, give each a distinct increment of value. But the value of mines must be considered as something distinct from the value of soil. If the land is taken into consideration at all in mining, it is simply as including the right to the mines, or as a site for the above-ground works connected with the mine.

107. Land as site.-Land as a site is useful for the space and support it affords for the property or works to be placed upon it. For this purpose it matters little whether it consists of richest mold, of rocks, or of barren sand; what is wanted is space and situation. For these purposes the values are sometimes enormous. In great cities, plots of ground, fronting upon business streets, have been sold for four thousand dollars for each foot of frontage. Residence lots on fashionable streets also bring incredible prices.

Land as a site varies in value with the presence or absence of adjacent population; with the proximity to roads, rivers,

harbors, cities, markets, and other civic or economic institutions; and, finally, with its adaptations to the uses for which it is desired, as a place of abode or of business.

108. Land values also include effort.-In this discussion of the value of lands, it is to be understood that the value meant is a possible rather than an actual value. Land and mines offer no real exception to the doctrine of value, heretofore given, as requiring effort as one of its essential elements. Neither lands nor mines, as they lie in nature, have any true value. The value is given to them by the work which affects their situation or surroundings. Just as surplus and therefore worthless products of one country become valuable by the work of transporting them to another-to the vicinity of those who need them so land becomes valuable, not by transporting it to the people who will use it, but by transporting these people to or towards it. When we open new roads, or railroads, into unoccupied territory, we say we are bringing its lands into market. We mean that we are bringing the market to the lands. Speculators buy the lands in anticipation of their coming value. Let it be certain that no immigration will ever reach them, and the shadowy value reflected upon them, in anticipation of their coming value, will fade out at once.

When the immigrants come, and begin their work of improvement, every road they make and every house they build, reflects something of possible value upon the wild lands near them; for, as we have seen, soil has two elements of valueits productiveness and its nearness to markets.

So, also, mines are counted valuable in anticipation of the values to be given to them by the workers to come. These prospective values are not uncommon in other spheres. The surplus wheat of this year has a value in view of the probable wants of the year to come.

But neither in lands or mines is the value so large as speculation represents it. In strict truth, it is found, in the long run, that metals are worth what it costs to mine and smelt them;

and lands, after they are fully improved, can nearly always be bought for what the improvements cost, often for less.

The illusion which exists in regard to land, mines, and other gifts of nature (for it is an illusion to count them as valuable in their natural state*), comes from the failure to discriminate between utility and value. Where there is evident utility, men readily conclude there must be value. The Scotch farmer, who found some garnets and other precious stones among the rocks on his land, thought himself wealthy, and might have sold a part of his new-found riches to his neighbors, if he could have persuaded them to believe in the value of his findings; but when he had gathered and carried a quantity of the garnets to the London lapidary, he was disgusted to learn that till the lapidary had expended his labor upon them, they would not pay him for the trouble of getting them to market. His belief that they were valuable in their native state did not make them Men must learn that there is no wealth without labor. What nature gives can be made valuable only by labor upon or around it. It must be changed by human toil, in substance, in form, or in relative position.

So.

* Bastiat asserted, strongly and clearly, that no mere product of nature (land, of course, included) possesses value. Roscher partly contradicts this, and instances mineral veins and coal-fields which immediately, on discovery, he says, "acquire great exchangeable value." But suppose the coal-field to be discovered in an uninhabited land, remote and difficult of access. Its supposed value would diminish with the distance, till it finally disappeared. It evidently owes much, if not all, of its value to location and surroundings; just as in the case of a city lot. The supposed value is of that speculative and unreal character which is almost daily given to worthless stocks used in the gambling operations of stock exchanges.

CHAPTER X.

LABOR-STRENGTH.

109. Synoptic view.-The following tabular presentation of topics will enable the reader and student to follow more easily the discussion :

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110. General aspects of labor.-We come now from the

gratuitous to the costly factors in work.

In the great economic field of Work, labor stands central and conspicuous. To many careless eyes it seems the only real or needful presence there. Labor, all-conquering, wealth-producing, appears to them the sole source of value-the true wealth creator. Its presence is so active and imposing that it seems to fill the whole field, and labor and work are taken as interchangeable terms.

As here used, labor includes all voluntary human efforts of strength or skill, to do service, or to produce valuable changes in matter.

Economically, labor represents the difficulty in the way of the attainment of man's wishes. He sees a ripe fruit upon a high tree; it will cost a painful effort to obtain it. He weighs the pain of the effort against the pleasure to be derived from the fruit. He is offered a gold watch for one hundred dollars; it will cost the wages of a month or two of labor to earn the price. He measures the pain of this toil against the gratification to be gotten from the watch. He has reared a good horse for which one offers him two hundred dollars; he measures the toil and care which his horse has already cost him against the labor it would require to get the money some other way. This is a simple, elementary view. It tells a part of the truth, but not all. There are other aspects of

the subject.

Labor is a productive effort. It is the application of energy to effect some change of place, form, or substance, which will not take place without such labor. Thus it is creative, giving existence to forms and qualities-utilities-which would else remain non-existent.

The power to labor is the power to produce objects of desire, and therefore of value. He who labors is entitled to the fruits of his labor. They are his to enjoy or to sell. If he chooses to sell his laboring power to another, then the price of the labor is his, but the products belong to him who purchased the labor..

P. E.-10.

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