A specific statement of the law of diminishing returns is that _in the cultivation of land an increased amount of effort under usual conditions fails to give a correspondingly increased amount of produce_.
_Exceptions to law of diminishing returns._--Exceptions to this law are easy to find, as where the first selection of land in a new country has had reference rather to safety from wild beasts and savages or malarial diseases than actual store of fertility. Another exception is found in any new country, where imperfect adjustment of labor to conditions of soil and climate are liable at the outset to prevent the full use of natural powers of the soil. So evident are these two exceptions in imperfectly developed agriculture that some have disputed the general fact, yet all must admit the certainty of diminished returns from multiplication of the same kind of efforts upon the same space, and general proof is abundant in all long settled communities.
_Effect of improved farming._--Counteracting this tendency to diminishing returns, and in many instances more than overcoming the difficulty, is a tendency toward improved methods in farming by more perfect application of labor to the soil, better developed crops, better adaptation of live stock to culture, improved machinery of every sort, and more extended range of operations in farming, reducing the restraints of space by improved transportation and more economical use of natural fertilizers; in short, by any improvement through which labor is made more directly effective in either quantity or quality of agricultural products. The whole story of the development of agriculture in all these ways furnishes abundant illustration of this counteracting tendency. In some regions it has more than counter-balanced the tendency to diminishing returns. Various staple products, like wheat, show in their diminishing value the advance in methods of culture and adjustment of labor to production.
_Diminishing values._--The above is only a particular illustration of the general tendency of all values to diminish with every improvement in tools, machinery, economy of materials and saving of time, as the world gains wisdom in applying labor to the meeting of material wants. With every discovery of more perfect power or better use of natural forces, like electricity, or easier ways of handling raw materials, as in developing aluminum from crude clay, the value of the product quickly diminishes.