n rent and taxes. When their crops
fail the ryot peasants are unable to pay the tax-gatherers, and they get
into debt and become quite helpless.

65. #Peasant Proprietorship.# One of the best modes of holding land,
when it can exist, is that known as peasant proprietorship, because the
owner of the land is the peasant himself, who labours with his own arms,
and finds the capital also. In this system, as in slavery, all the
requisites of production are in the same hands; thus--

#Peasant.#
|
/------------------------------------------------\
#Land.# #Labour.# #Capital.#

But in every other respect this system is the opposite of slavery. Its
advantages are evident; the labourer being the owner of the farm and of
all upon it, is an independent man, who has every inducement to work
hard, and to increase his savings. Every little improvement which he can
make in his farm is so much added to his wealth, and that of his family
after him. There is what is called the #magic of property#. The feeling
that he is working entirely for his own and his family's benefit #almost
magically increases his inclination to work#. In newly-settled
countries, such as the Western Territories of the United States, and
Canada, or the colonies of Australia, and the Cape, this mode of holding
land seems to be suitable, because the land is there very cheap, and
crops can be raised with little capital. In such countries there is no
need of expensive manures, elaborate machinery, and the cost of draining
and improving land.

The objection to peasant proprietorship is, that he who does the labour
of a farm with his own hands, must usually be a poor and unskilful
person. If he were rich he would probably prefer to buy up the labour of
other men, and become a capitalist farmer; if he were a really skilful
farmer, it would be a pity to waste his skill upon a small farm, when,
with more division of labour, he might profitably direct and manage a
large one. Being poor, his capital will be mostly absorbed in building
his cottage and barns, and in paying the small price of his land; he
will have little left to make improvements, or to buy good labour-saving
implements, and good stock, such as well-bred horses, cows, and pigs.
Thus, unless his land be new and very fertile, he will not get a large
return for his labour. Owing to the magic of property, he may work very
hard, and during long