which　has　fallen　very　much　below　what　it　was　said　to　have　been
  when　it　first　fell　under　the　management　of　the　company。　The
  servants　of　the　company　may；　perhaps；　have　profited　by　this
  change；　but　at　the　expense；　it　is　probable；　both　of　their　masters
  and　of　the　country。
  Taxes　upon　the　Rent　of　House。
  The　rent　of　a　house　may　be　distinguished　into　two　parts；　of
  which　the　one　may　very　properly　be　called　the　Building…rent；　the
  other　is　commonly　called　the　Ground…rent。
  The　building…rent　is　the　interest　or　profit　of　the　capital
  expended　in　building　the　house。　In　order　to　put　the　trade　of　a
  builder　upon　a　level　with　other　trades；　it　is　necessary　that　this
  rent　should　be　sufficient；　first；　to　pay　him　the　same　interest
  which　he　would　have　got　for　his　capital　if　he　had　lent　it　upon
  good　security；　and；　secondly；　to　keep　the　house　in　constant
  repair；　or；　what　comes　to　the　same　thing；　to　replace；　within　a
  certain　term　of　years；　the　capital　which　had　been　employed　in
  building　it。　The　building…rent；　or　the　ordinary　profit　of
  building；　is；　therefore；　everywhere　regulated　by　the　ordinary
  interest　of　money。　Where　the　market　rate　of　interest　is　four　per
  cent　the　rent　of　a　house　which；　over　and　above　paying　the
  ground…rent；　affords　six　or　six　and　a　half　per　cent　upon　the
  whole　expense　of　building；　may　perhaps　afford　a　sufficient　profit
  to　the　builder。　Where　the　market　rate　of　interest　is　five　per
  cent；　it　may　perhaps　require　seven　or　seven　and　a　half　per　cent。
  If；　in　proportion　to　the　interest　of　money；　the　trade　of　the
  builder　affords　at　any　time　a　much　greater　profit　than　this；　it
  will　soon　draw　so　much　capital　from　other　trades　as　will　reduce
  the　profit　to　its　proper　level。　If　it　affords　at　any　time　much
  less　than　this；　other　trades　will　soon　draw　so　much　capital　from
  it　as　will　again　raise　that　profit。
  Whatever　part　of　the　whole　rent　of　a　house　is　over　and　above
  what　is　sufficient　for　affording　this　reasonable　profit　naturally
  goes　to　the　ground…rent；　and　where　the　owner　of　the　ground　and
  the　owner　of　the　building　are　two　different　persons；　is；　in　most
  cases；　completely　paid　to　the　former。　This　surplus　rent　is　the
  price　which　the　inhabitant　of　the　house　pays　for　some　real　or
  supposed　advantage　of　the　situation。　In　country　houses　at　a
  distance　from　any　great　town；　where　there　is　plenty　of　ground　to
  choose　upon；　the　ground…rent　is　scarce　anything；　or　no　more　than
  what　the　ground　which　the　house　stands　upon　would　pay　if　employed
  in　agriculture。　In　country　villas　in　the　neighborhood　of　some
  great　town；　it　is　sometimes　a　good　deal　higher；　and　the　peculiar
  conveniency　or　beauty　of　situation　is　there　frequently　very　well
  paid　for。　Ground…rents　are　generally　highest　in　the　capital；　and
  in　those　particular　parts　of　it　where　there　happens　to　be　the
  greatest　demand　for　houses；　whatever　be　the　reason　of　that
  demand；　whether　for　trade　and　business；　for　pleasure　and　society；
  or　for　mere　vanity　and　fashion。
  A　tax　upon　house…rent；　payable　by　the　tenant　and
  proportioned　to　the　whole　rent　of　each　house；　could　not；　for　any
  considerable　time　at　least；　affect　the　building…rent。　If　the
  builder　did　not　get　his　reasonable　profit；　he　would　be　obliged　to
  quit　the　trade；　which；　by　raising　the　demand　for　building；　would
  in　a　short　time　bring　back　his　profit　to　its　proper　level　with
  that　of　other　trades。　Neither　would　such　a　tax　fall　altogether
  upon　the　ground…rent；　but　it　would　divide　itself　in　such　a　manner
  as　to　fall　partly　upon　the　inhabitant　of　the　house；　and　partly
  upon　the　owner　of　the　ground。
  Let　us　suppose；　for　example；　that　a　particular　person　judges
  that　he　can　afford　for　house…rent　an　expense　of　sixty　pounds　a
  year；　and　let　us　suppose；　too；　that　a　tax　of　four　shillings　in
  the　pound；　or　of　one…fifth；　payable　by　the　inhabitant；　is　laid
  upon　house…rent。　A　house　of　sixty　pounds　rent　will　in　this　case
  cost　him　seventy…two　pounds　a　year；　which　is　twelve　pounds　more
  than　he　thinks　he　can　afford。　He　will；　therefore；　content　himself
  with　a　worse　house；　or　a　house　of　fifty　pounds　rent；　which；　with
  the　additional　ten　pounds　that　he　must　pay　for　the　tax；　will　make
  up　the　sum　of　sixty　pounds　a　year；　the　expense　which　he　judges　he
  can　afford；　and　in　order　to　pay　the　tax　he　will　give　up　a　part　of
  the　additional　conveniency　which　he　might　have　had　from　a　house
  of　ten　pounds　a　year　more　rent。　He　will　give　up；　I　say；　a　part　of
  this　additional　conveniency；　for　he　will　seldom　be　obliged　to
  give　up　the　whole；　but　will；　in　consequence　of　the　tax；　get　a
  better　house　for　fifty　pounds　a　year　than　he　could　have　got　if
  there　had　been　no　tax。　For　as　a　tax　of　this　kind　by　taking　away
  this　particular　competitor；　must　diminish　the　competition　for
  houses　of　sixty　pounds　rent；　so　it　must　likewise　diminish　it　for
  those　of　fifty　pounds　rent；　and　in　the　same　manner　for　those　of
  all　other　rents；　except　the　lowest　rent；　for　which　it　would　for
  some　time　increase　the　competition。　But　the　rents　of　every　class
  of　houses　for　which　the　competition　was　diminished　would
  necessarily　be　more　or　less　reduced。　As　no　part　of　this
  reduction；　however；　could；　for　any　considerable　time　at　least；
  affect　the　building…rent；　the　whole　of　it　must　in　the　long…run
  necessarily　fall　upon　the　ground…rent。　The　final　payment　of　this
  tax；　therefore；　would　fall　partly　upon　the　inhabitant　of　the
  house；　who；　in　order　to　pay　his　share；　would　be　obliged　to　give
  up　a　part　of　his　conveniency；　and　partly　upon　the　owner　of　the
  ground；　who；　in　order　to　pay　his　share；　would　be　obliged　to　give
  up　a　part　of　his　revenue。　In　what　proportion　this　final　payment
  would　be　divided　between　them　it　is　not　perhaps　very　easy　to
  ascertain。　The　division　would　probably　be　very　different　in
  different　circumstances；　and　a　tax　of　this　kind　might；　according
  to　those　different　circumstances；　affect　very　unequally　both　the
  inhabitant　of　the　house　and　the　owner　of　the　ground。
  The　inequality　with　which　a　tax　of　this　kind　might　fall　upon
  the　owners　of　different　ground…rents　would　arise　altogether　from
  the　accidental　inequality　of　this　division。　But　the　inequality
  with　which　it　might　fall　upon　the　inhabitants　of　different　houses
  would　arise　not　only　from　this；　but　from　another　cause。　The
  proportion　of　the　expense　of　house…rent　to　the　whole　expense　of
  living　is　different　in　the　different　degrees　of　fortune。　It　is
  perhaps　highest　in　the　highest　degree；　and　it　diminishes
  gradually　through　the　inferior　degrees；　so　as　in　general　to　be
  lowest　in　the　lowest　degree。　The　necessaries　of　life　occasion　the
  great　expense　of　the　poor。　They　find　it　difficult　to　get　food；
  and　the　greater　part　of　their　little　revenue　is　spent　in　getting
  it。　The　luxuries　and　vanities　of　life　occasion　the　principal
  expense　of　the　rich；　and　a　magnificent　house　embellishes　and　sets
  off　to　the　best　advantage　all　the　other　luxuries　and　vanities
  which　they　possess。　A　tax　upon　house…rents；　therefore；　would　in
  general　fall　heaviest　upon　the　rich；　and　in　this　sort　of
  inequality　there　would　not；　perhaps；　be　anything　very
  unreasonable。　It　is　not　very　unreasonable　that　the　rich　should
  contribute　to　the　public　expense；　not　only　in　proportion　to　their
  revenue；　but　something　more　than　in　that　proportion。
  The　rent　of　houses；　though　it　in　some　respects　resembles　the
  rent　of　land；　is　in　one　respect　essentially　different　from　it。
  The　rent　of　land　is　paid　for　the　use　of　a　productive　subject。　The
  land　which　pays　it　produces　it。　The　rent　of　houses　is　paid　for
  the　use　of　an　unproductive　subject。　Neither　the　house　nor　the
  ground　which　it　stands　upon　produce　anything。　The　person　who　pays
  the　rent；　therefore；　must　draw　it　from　some　other　source　of
  revenue　distinct　from　the　independent　of　this　subject。　A　tax　upon
  the　rent　of　houses；　so　far　as　it　falls　upon　the　inhabitants；　must
  be　drawn　from　the　same　source　as　the　rent　itself；　and　must　be
  paid　from　their　revenue；　whether　derived　from　the　wages　of
  labour；　the　profits　of　stock；　or　the　rent　of　land。　So　far　as　it
  falls　upon　the　inhabitants；　it　is　one　of　those　taxes　which　fall；
  not　upon　one　only；　but　indifferently　upon　all　the　three　different
  sources　of　revenue；　and　is　in　every　respect　of　the　same　nature　as
  a　tax　upon　any　other　sort　of　consumable　commodities。　In　general
  there　is　not；　perhaps；　any　one　article　of　expense　or　consumption
  by　which　the　liberality　or　narrowness　of　a　man's　whole　expense
  can　be　better　judged　of　than　by　his　house…rent。　A　proportional
  tax　upon　this　particular　article　of　expense　might；　perhaps；
  produce　a　more　considerable　revenue　than　any　which　has　hitherto
  been　drawn　from　it　in　any　part　of　Europe。　If　the　tax　indeed　was
  very　high；　the　greater　part　of　people　would　endeavour　to　evade
  it；　as　much　as　they　could；　by　contenting　themselves　with　smaller
  houses；　and　by　turning　the　greater　part　of　their　expense　into
  some　other　channel。
  The　rent　of　houses　might　easily　be　ascertained　with
  sufficient