The Private Ownership of Land [pp. 125-147]

THE PRINCE TON RE VIE IV.
unavoidable, from the beginnings of civilization. The voluntary
contributions of individual property-holders to this object are
always of great importance, and all which a landed proprietor
does in this way is to be reckoned as a part of the expense
which he has incurred in bringing his land up to its present
price either for rent or sale.
In respect to land situated in cities this consideration becomes of paramount importance. The high prices which land
bears when situated in the heart of a great city does not necessarily belong to our subject; but as the same principles prevail
here as in respect to land used for agriculture, it is not inappropriate to consider it. The demand which exists for such lands
depends upon the investment of capital, and we apprehend no
one who has ever reflected on the subject at all will for a moment entertain the thought that the present value of real estate
in London, Paris, or New York would amount to as much as
the capital expended in its improvement, and current interest
on the same. One piece of ground may have contributed much
more to the result than another, and it may not be possible to
equalize them; but we may be quite certain that the present
value of real estate in the city of New York is less than the
capital expended in bringing its improvements to their present
value, with current interest on them. Nothing justifies the vast
investment but the use of the capital invested there as an instrument for the use and development of pre-eminent skill and
business talent, just as in the case of improving land for the
purposes of agriculture. This is the source of the vast profits
which have been realized, and not the rent of the land on which
the city is built. In order' to estimate correctly the capital expended in bringing its lands to their present value, we must not
only take account of the actual outlays made upon the lands
which are held by individual proprietors, but all which the proprietors have contributed, either by taxation or voluntary gift,
for the streets, squares, public buildings, and institutions of the
city.
There is reason to believe that this argument holds with
much greater force in respect to most other portions of the
world than to those in the particular region to which it has
been above applied. In very few instances in the world's his
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