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297- а system of barter, regulates the localization of the forms of agriculture. Onesidedness in the solution of this problem by modern German theory. The theory cannot start from the po­ stulate of the given prices, but should show the objective con-, nection existing between the forming of prices and the! organi­ sation of production. The distortion of the nature of price­ forming in the theories based upon the marginal principle. The proper connection between price-forming and production -is expressed in the principle of costs. The statistical nature of this principle. The indefiniteness of the costs in the orga­ nisation of production is overcome by the principle of the least costs. The formal character of this principle obliges the theory to indicate the special mechanism reducing the costs to the lowest level. .The differential principle regulates the geography of prices, notably of rent. The principle of substitution regu­ lates the combination of the productive elements in the organi­ sation of production. The general picture of the mechanism ■of connection between price-forming and the organisation of agricultural production. The problem of the localization in the light of general economic theory. The mechanism of organisa­ tion of agricultural production should not be understood as the mere result of rationalistic reasoning. The significance of ele­ mental selection in the historic succession in the development of agriculture. ' ’ Chapter 8. The Localization of Agriculture In North America. Agriculture in North America as the empirical example of the .-working of the mechanism which forms and localizes the types of agricultural productioii. The combination of productive fac­ tors' as one of the aspects of the organisation of agriculture. The characterisics of the labour-capacity and intensity of agri­ culture in North America as compared with other leading count­ ries, as illustrating the workings of the principle of substitution; The geography of intensity of agriculture in North America elucidates also the workings of this principle. The combina­ tion of the elements of agricultural production is geographically changed under the effect of changing the correlations of prices, into productive factors. , Dearer land absorbs more units of labour and capital. The result is that the sum-total of the costs per acre is geographically correlated in a high degree to the level of rent. For the United States, until 1920,, the coefficient w as-j-0.636. ^ Chart 35. Land prices’ in Canada. Chart .36. The same for the United States. In spite of the marginal theory, rent plays equally with any other price an active part in the process of localization of agri­ culture. Rent-forming constitutes the very mechanism whereby Электронная Научная СельскоХозяйственная Библиотека