Application of Capital to Land. — This is done in various ways, — by the use of fertilizing materials, drainage, deep ploughing, &c. For every such appliance, wisely made, a rent is received, supposed to be equivalent to the expenditure incurred.

And here it may be found that the same expenditure, applied to the different qualities of land, produces unequal results. Five dollars, expended per annum on No. 1, may return but a profit or additional rent of eight dollars; while the same amount, applied to No. 2, will give seven dollars; or to No. 3, will give six dollars, &c.

This will cause a variation in the relative rentals of the different qualities or tiers of land we have supposed.

Improvements, more or less permanent, are investments of capital in real estate, changing the income from the form of interest to that of rent. They are made to an immense extent in the older countries of Europe. Their profitableness depends, like that of all other investments, upon the wisdom with which they are made: but men are more disposed to invest capital in real estate, other things equal, than in any thing else, for the reasons that it has the greatest security; that it gives a certain degree of social importance to the holders in all countries, and, in some, confers political rights and privileges.