200 
POLITICAL ECONOMY 
up to recent times the charge for land, 
apart from the charge for the capital sunk 
n it, has been represented as a payment 
merely for differential advantages. However, 
for the sake of perfection of theory, the 
possibility at the least of a charge based upon 
marginal worth must be admitted. 
The differential advantages dealt with up 
to this point are those connected solely with 
fertility, but it is apparent that there are 
other differential advantages. So far as land 
is concerned, there are also advantages 
connected with its situation. When the rent 
of a plot of farm land is being calculated, both 
its fertility and its situation are taken into 
account, and the sum that must be paid for 
its hire is determined by the sum of the 
differential advantages which it enjoys in 
respect of the two taken together. When, 
however, a plot of ground is intended for a 
building site its fertility, naturally, does not 
enter into the settlement of its value ; but 
of course the charge made for it must exceed 
the value of its differential advantages for 
farming purposes. What are known as situa 
tional advantages, it scarcely need be pointed 
out, comprise conveniences of quite different 
sorts. In one case the situational advantage 
may consist mainly in the low cost of trans-