The same laws apply to coal-pits, which, notwithstanding the great assistance derived from machinery, give work to several hundred thousand labourers who earn their maintenance, besides the profits of their employer and the rent of the proprietor; and this rent is in general more considerable than that of agricultural land, as the produce of coal-pits is more valuable than that of the soil.

CAROLINE.

The mines containing metals are, I suppose, of still greater value?

MRS. B.

Yes, and their rent proportionally higher, but the profits of the capitalist who rents them, and of the labourers who work them, are not greater. As the value of a mine, however, depends upon the quantity as well as on the quality of the metal it affords, it frequently happens that a lead-mine will fetch a higher rent than a silver-mine. The expense of working coalpits is less than that of metallic mines. The coal requires nothing more than to be extracted from the earth; but with the metals the labour is much more complicated; they must be separated from the ore in the furnace, and undergo a variety of processes before they are fit for the purposes of art.

The risk and uncertainty attending mining is greater than that of any other employment of capital; and accordingly we find both larger fortunes made and more people ruined in that than in any other branch of industry.

CAROLINE.

The chance of gain, then, compensates for the risk of loss; but upon the whole I suppose the profits are

similar to those derived from other modes of employ. ing capital?

MRS. B.

I am inclined to believe the profits of mining to be rather below the common standard. In all hazardous enterprises men are prone to trust to their good. fortune, and generally consider the chances more in their favour than an accurate calculation would warrant. This is evinced by the readiness with which men venture to stake their money in lotteries, though it is well known that the chances of gain are decidedly against them. Mining speculations are more advantageous lotteries no doubt, but they contain a prodigious number of blanks, and only a few great prizes. Sanguine hopes and expectations in some measure supply the place of actual gains; yet if the average profits of mining should at any time fall so low as to discourage the spirit of enterprise, and diminish the requisite supply of metals, their price would rise until it had brought back a sufficient capital to that branch of industry.

income.

I have mentioned fisheries as a source of employment for capital, and a means of affording an Very large capitals are engaged in the whale, the cod, and the herring fisheries, besides those smaller ones which supply the country with fresh fish. But as the sea in which these fisheries are carried on is not susceptible of becoming private property, they yield no rent. There are, however, some considerable inland. river fisheries which belong to individuals, and bring in a rent. No fewer than forty-one different salmon fisheries upon the river Tweed are rented for several thousands a-year; and I am informed that the Duke of Gordon lets a salmon fishery on the Spey for

S

7000l. a year. In the Scotch fisheries it is very common to take four or five score of salmon at a draught. In England there are also considerable salmon fisheries in the Tyne, the Trent, the Severn, and the Thames.

CAROLINE.

The rent of fisheries depends, I suppose, upon some rivers abounding more with fish than others.

MRS. B.

Yes; all rent is derived from the same principle, the lesser quantity of labour required to produce the commodity in some situations than in others.

We have already noticed the manner in which an income is obtained from manufactures; what further observations we have to make on this branch of industry we shall defer till we enter on the subject of trade, with which it is so naturally connected.

CAROLINE.

And will that be the subject of our next conversation ?

MRS. B.

No; we have yet many general remarks to make upon income. And it will be necessary also, before we turn our attention to trade or commerce, that you should understand the nature and use of money, without a knowledge of which it would be extremely difficult to render the subject perspicuous.

259

CONVERSATION XV.

ON THE INCOME OF THOSE WHO DO NOT EMPLOY THEIR CAPITAL THEMSELVES.

RENT,

OR INCOME DERIVED FROM LETTING LAND. INTEREST OF MONEY, OR INCOME DERIVED FROM LOANS.CAUSES OF THE DIFFERENT RATE OF INTEREST YIELDED BY LAND OR BY MONEY. CAUSES OF THE FLUCTUATIONS OF INTEREST. RATE OF INTEREST IN INDIA, IN CHINA, AND IN AMERICA. OF USURY. — GOVERNMENT LOANS, OR INCOME DERIVED FROM THE FUNDS. OF UNPRODUCTIVE LABOURERS, OR THOSE WHO DERIVE AN INCOME FROM THE EXPENDITURE OF OTHERS.

I

• CAROLINE.

THINK I now understand very well how an income is derived from agriculture and manufactures ; and also how it is produced by trade; but there are many men of property who follow none of these occupations; how, therefore, can their capital yield an income?

MRS. B.

When a man possesses a very large property, he frequently will not be at the trouble of employing it himself; but will engage some other person to do it for him. You have seen that a landed proprietor who does not farm his own estate derives an income from the farmer in the form of rent.

CAROLINE.

But I allude to men of fortune without landed property, who live upon their income, although their capital is not employed.

MRS. B.

Reflect a moment, and you will be convinced that no capital can yield an income without being employed. If, therefore, the owner does not invest it in some branch of industry himself, another person must do it for him. A capitalist under such circumstances may be supposed to say, "I am possessed of an ample "stock of subsistence for labourers, and of materials "for workmanship, but I will engage some other person to take charge of so troublesome an under"taking as that of setting the people to work, and "collecting the profits derived from their labours."

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CAROLINE.

This person must be handsomely remunerated for the time and pains he bestows on the management of a capital which is not his own.

MRS. P.

No doubt; a considerable share of the profits derived from the use of capital must go to him who takes charge of it; but when a man's property is very large, he would rather lose that share than be at the trouble of managing it himself. Thus you see that the employer and the proprietor of capital are frequently different persons.

CAROLINE.

Yet I do not recollect ever to have heard of a man of fortune making use of an agent to employ his capital.