the value of raw materials would affect, in an equal
proportion, all home commodities; that if the effect on one were to
raise it 10 per cent., it would raise all 10 per cent.; but as the value
of commodities is very differently made up of raw material and labour;
as some commodities, for instance all those made from the metals, would
be unaffected by the rise of raw produce from the surface of the earth,
it is evident that there would be the greatest variety in the effects
produced on the value of commodities, by a tax on raw produce. As far as
this effect was produced, it would stimulate or retard the exportation
of particular commodities, and would undoubtedly be attended with the
same inconvenience that attends the taxing of commodities; it would
destroy the natural relation between the value of each. Thus, the
natural price of a hat, instead of being the same as a yard and a half
of cloth, might only be of the value of a yard and a quarter, or it
might be of the value of a yard and three quarters, and therefore rather
a different direction might be given to foreign trade. All these
inconveniences would not interfere with the value of the exports and
imports; they would only prevent the very best distribution of the
capital of the whole world, which is never so well regulated, as when
every commodity is freely allowed to settle at its natural price.

Although then the rise in the price of most of our own commodities,
would for a time check exportation generally, and might permanently
prevent the exportation of a few commodities, it could not materially
interfere with foreign trade, and would not place us under any
comparative disadvantage as far as regarded competition in foreign
markets.

CHAPTER VIII.*

TAXES ON RENT.

A tax on rent would affect rent only; it would fall wholly on landlords,
and could not be shifted to any class of consumers. The landlord could
not raise his rent, because he would leave unaltered the difference
between the produce obtained from the least productive land in
cultivation, and that obtained from land of every other quality. Three
sorts of land, No. 1, 2, and 3, are in cultivation, and yield
respectively with the same labour 180, 170, and 160 quarters of wheat;
but No. 3 pays no rent, and is therefore untaxed: the rent then of No. 2
cannot be made to exceed the value of ten, nor No. 1, of twenty
quarters. Such a tax could not raise the price of raw produce, because
as the