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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  situational ­
  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-