Page:The Case for Capitalism (1920).djvu/74

 another, but merely pre-empt adjacent patches," and so as the process of occupation goes on, and as new-comers still pour into the land, "there is nothing for the new-comer to pre-empt save soil of the second quality. Again, division of labour sets in amongst Adam's neighbours; and with it, of course, comes the establishment of a market for the exchange of the products of their divided labour. Now it is not well to be far afield from that market, because distance from it involves cost for roads, beasts of burden, time. . . . All this will be saved to Adam at the centre, and incurred by the new-comer at the margin," and so Mr. Shaw estimates the annual value of Adam's produce at £1,000, while the annual produce of the new-comer on the margin is £500, with equal industry on the part of Adam and the new-comers, so here is a clear advantage of £500 a year to the first corner, which is economic rent. "The two men labour equally, and yet one gets £500 a year more than the other through the superior fertility of his land and convenience of its situation. . . . Why should not Adam let his patch to the new-comer at rent of £500 a year? Since the produce will be £1,000, the new-comer will have £500 left for himself, or as much as he