,inthisquotationMillpresup-posedthatnoprevailingwagerateoralternativeearningexistsforthemetayertenant,anditisnotevenclearwhetherthepopu-lar”subsistence”,withoutexplicitlystatingthelawofdiminishingreturns,itwouldbedifficulttoarriveatanykindofequilibrium.[31]Second,inregardto”improvements,”Milldidnotallowthemtobemadethroughadjustingtherentalpercentage-eventhoughhewaswellawareofdifferingrentalpercentages.[32]

ThelackofanydefiniteconclusionbyMillstemsfromtomandnotbypetition,[33]sothat”whenthepartitionoftheproduceisamatteroffixedusage,notofvaryingconvention,politicaleconomyhasnolawsofdistributiontoinvestigate.”[34]FromwhomdidMillgetthis”custom”idea?FromSismondi:

Thisconnexion[ofinputmitments]isoftenthesubjectofacontract,todefinecertainservicesandcertainoccasionalpaymentstowhichthemetayerbindshimself:neverthelessthedifferencesintheobligationsofonesuchcontractandanotherareinconsiderable;usagegovernsalikealltheseengagements,andsuppliesthestipulationswhichhavenotbeenexpressed:andthelandlordwhoattemptedtodepartfromusage,whoexactedmorethanhisneighbor,whotookforthebasisoftheagreementanythingbuttheequaldivisionofthecrops,wouldrenderhimselfsoodious,hewouldbesosureofnotobtainingametayerwhowasanhonestman,thatthecontractofallthemetayersmaybeconsideredasidentical,atleastineachprovince,andnevergivesrisetoanypetitionamongpeasantsinsearchofemployment,oranyoffertocultivatethesoiloncheapertermsthanoneanother.[35]

Thecontractualstipulationsasdescribedareimpliedbythetheoryofsharetenancy,andasweshallseeingreaterdetail,”nevergivesrisetopetition”,therestraintsonthecontractingpartiesasvisualizedbySismondiarerestraintsimposedbypetitionitself.

Wemaywellask:Whywerethetermsofasharecontractviewedas”customary”andnotdeterminedbypetition?Theanswer,Ibelieve,isthatfactorpricesarenotexplicitlystatedinasharecontract.[36]Underfixedrentorawagecontract,notonlyistherentalpriceoflandorthewagerateexplicitlystated,butalsoonepartytothecon,wherethepricingmechanismoperatesbyadjustingtherentalpercentageandtheratioofnonlandinputstoland,itnotonlyyieldsanimpressionthatmarketpricesdonotexist,butthemutuallystipulatedinputintensityalsoyieldsanimpressionof”fixity.”SismondiandMillwereunabletoseethat,ceterisparibus,areductioninfarmsizerepresentseitherafallinthewagerate（orinthecostofnonlandinputs）orariseintherentalpriceofland;orthatafallintherentalpercentage,achangeinrelativefactorpricesinthemarketcanbeflexiblyadjustedinasharecontractthroughseveraldimensions,,a50percentincreaseinthewageratewouldappearsignificantinawagecontract;but,underasharecontract,thesameincreasemaybeaccountedforbyloweringtherentalpercentageatrifle,reducinglaborinputatrifle,andexpandinglandsizeatrifle.

Thus,,inlightofthediversifiedargumentsconfrontinghim,thefollowingjudgmenthemadeisofconsiderablewisdom:

Ifthe[metayer]systeminTuscany[Italy]worksaswellinpracticeasitisrepresentedtodo,witheveryappearanceofminuteknowledge,bysopetentanauthorityasSismondi;ifthemodeoflivingofthepeople,andthesizeoffarms,haveforagesmaintainedandstillmaintainthemselvessuchastheyaresaidtobebyhim,itweretoberegrettedthatastateofruralwell-beingsomuchbeyondwhatisrealizedinmostEuropeancountries,shouldbeputtohazardbyanattempttointroduce,undertheguiseofagriculturalimprovement,asystemofmoney-rentsandcapitalistfarmers.[37]

[1].

[2].Whenthefirstdraftofthisstudywaswritten,”ResourceAllocationunderShareContracts,”JournalofPoliticalEconomy（April,1950）,www.youxs.org.

[3].AdamSmith,WealthofNations（1776；NewYork:ModernLibraryedition,1937）,www.youxs.org.

[4].Ibid.,www.youxs.org

[5].Ibid.,Book3,

[6].Ibid.,www.youxs.org.

[7].Ibid.,www.youxs.org:”NotonlydidSmithobjecttosharerenting,butheproposedthattaxesbeusedtoinducelandlordstouseotherleasingarrangement.”SeeJohnson,”ResourceAllocation,”www.youxs.org；andSmith,WealthofNations,www.youxs.org.

[8].Smith,WealthofNations,www.youxs.org.

[9].Ibid.,www.youxs.org.

[10].Ibid.,www.youxs.org.

[11].YoungsTravelswasfirstpublishedin1792,,www.youxs.org；anabridgedversioneditedbyConstantiaMaxwell（Cambridge:AttheUniversityPress,1929）；andMissBetham-Edwards,edArthurYoungsTravelsinFranceduringtheYears1787,1788,1789（London:GeorgeBellandSons,1892）.