PREFACE
Theproduceoftheearth-allthatisderivedfromitssurfacebytheunitedapplicationoflabour，machinery，andcapital，isdividedamongthreeclassesofthecommunity；namely，theproprietoroftheland，theownerofthestockorcapitalnecessaryforitscultivation，andthelabourersbywhoseindustryitiscultivated。
Butindifferentstagesofsociety，theproportionsofthewholeproduceoftheearthwhichwillbeallottedtoeachoftheseclasses，underthenamesofrent，profit，andwages，willbeessentiallydifferent；dependingmainlyontheactualfertilityofthesoil，ontheaccumulationofcapitalandpopulation，andontheskill，ingenuity，andinstrumentsemployedinagriculture。
Todeterminethelawswhichregulatethisdistribution，istheprincipalprobleminPoliticalEconomy:muchasthesciencehasbeenimprovedbythewritingsofTurgot，Stuart，Smith，Say，Sismondi，andothers，theyaffordverylittlesatisfactoryinformationrespectingthenaturalcourseofrent，profit，andwages。
In1815，MrMalthus，inhis'InquiryintotheNatureandProgressofRent，'andaFellowofUniversityCollege，Oxford'。inhis'EssayontheApplicationofCapitaltoLand，'presentedtotheworld，nearlyatthesamemoment，thetruedoctrineofrent；withoutaknowledgeofwhich，itisimpossibletounderstandtheeffectoftheprogressofwealthonprofitsandwages，ortotracesatisfactorilytheinfluenceoftaxationondifferentclassesofthecommunity；particularlywhenthecommoditiestaxedaretheproductionsimmediatelyderivedfromthesurfaceoftheearth。AdamSmith，andtheotherablewriterstowhomIhavealluded，nothavingviewedcorrectlytheprinciplesofrent，have，itappearstome，overlookedmanyimportanttruths，whichcanonlybediscoveredafterthesubjectofrentisthoroughlyunderstood。
Tosupplythisdeficiency，abilitiesarerequiredofafarsuperiorcasttoanypossessedbythewriterofthefollowingpages；yet，afterhavinggiventothissubjecthisbestconsideration-aftertheaidwhichhehasderivedfromtheworksoftheabove-mentionedeminentwriters-andafterthevaluableexperiencewhichafewlateyears，aboundinginfacts，haveyieldedtothepresentgeneration-itwillnot，hetrusts，bedeemedpresumptuousinhimtostatehisopinionsonthelawsofprofitsandwages，andontheoperationoftaxes。Iftheprincipleswhichhedeemscorrect，shouldbefoundtobeso，itwillbeforothers，moreablethanhimself，totracethemtoalltheirimportantconsequences。
Thewriter，incombatingreceivedopinions，hasfounditnecessarytoadvertmoreparticularlytothosepassagesinthewritingsofAdamSmithfromwhichheseesreasontodiffer；buthehopesitwillnot，onthataccount，besuspectedthathedoesnot，incommonwithallthosewhoacknowledgetheimportanceofthescienceofPoliticalEconomy，participateintheadmirationwhichtheprofoundworkofthiscelebratedauthorso。justlyexcites。
ThesameremarkmaybeappliedtotheexcellentworksofM。Say，whonotonlywasthefirst，oramongthefirst，ofcontinentalwriters，whojustlyappreciatedandappliedtheprinciplesofSmith，andwhohasdonemorethanallothercontinentalwriterstakentogether，torecommendtheprinciplesofthatenlightenedandbeneficialsystemtothenationsofEurope；butwhohassucceededinplacingthescienceinamorelogical，andmoreinstructiveorder；andhasenricheditbyseveraldiscussions，original，accurate，andprofound。(1*)Therespect，however，whichtheauthorentertainsforthewritingsofthisgentleman，hasnotpreventedhimfromcommentingwiththatfreedomwhichhethinkstheinterestsofsciencerequire，onsuchpassagesofthe'EconomiePolitique，'asappearedatvariancewithhisownideas。
AdvertisementtotheThirdEditionInthisEditionIhaveendeavouredtoexplainmorefullythaninthelast，myopiniononthedifficultsubjectofVALUE，andforthatpurposehavemadeafewadditionstothefirstchapter。IhavealsoinsertedanewchapteronthesubjectofMACHlNERY，andontheeffectsofitsimprovementontheinterestsofthedifferentclassesoftheState。InthechapterontheDISTINCTIVEPROPERTIESOFVALUEAND
RICHES，IhaveexaminedthedoctrinesofM。Sayonthatimportantquestion，asamendedinthefourthandlasteditionofhiswork。Ihaveinthelastchapterendeavouredtoplaceinastrongerpointofviewthanbefore，thedoctrineoftheabilityofacountrytopayadditionalmoneytaxes，althoughtheaggregatemoneyvalueofthemassofitscommoditiesshouldfall，inconsequenceeitherofthediminishedquantityoflabourrequiredtoproduceitscornathome，byimprovementsinitshusbandry，orfromitsobtainingapartofitscornatacheaperpricefromabroad，bymeansoftheexportationofitsmanufacturedcommodities。Thisconsiderationisofgreatimportance，asitregardsthequestionofthepolicyofleavingunrestrictedtheimportationofforeigncorn，particularlyinacountryburthenedwithaheavyfixedmoneytaxation，theconsequenceofanimmenseNationalDebt。Ihaveendeavouredtoshew，thattheabilitytopaytaxes，depends，notonthegrossmoneyvalueofthemassofcommodities，noronthenetmoneyvalueoftherevenuesofcapitalistsandlandlords，butonthemoneyvalueofeachman'srevenue，comparedtothemoneyvalueofthecommoditieswhichheusuallyconsumes。
March26，1821。
Chapter1
OnValueThevalueofacommodity，orthequantityofanyothercommodityforwhichitwillexchange，dependsontherelativequantityoflabourwhichisnecessaryforitsproduction，andnotonthegreaterorlesscompensationwhichispaidforthatlabour。
IthasbeenobservedbyAdamSmith，that'thewordValuehastwodifferentmeanings，andsometimesexpressestheutilityofsomeparticularobject，andsometimesthepowerofpurchasingothergoodswhichthepossessionofthatobjectconveys。Theonemaybecalledvalueinuse；theothervalueinexchange。Thethings，'hecontinues，'whichhavethegreatestvalueinuse，havefrequentlylittleornovalueinexchange；and，onthecontrary，thosewhichhavethegreatestvalueinexchange，havelittleornovalueinuse；Waterandairareabundantlyuseful；theyareindeedindispensabletoexistence，yet，underordinarycircumstances，nothingcanbeobtainedinexchangeforthem。Gold，onthecontrary，thoughoflittleusecomparedwithairorwater，willexchangeforagreatquantityofothergoods。
Utilitythenisnotthemeasureofexchangeablevalue，althoughitisabsolutelyessentialtoit。Ifacommoditywereinnowayuseful，-inotherwords，ifitcouldinnowaycontributetoourgratification，-itwouldbedestituteofexchangeablevalue，howeverscarceitmightbe，orwhateverquantityoflabourmightbenecessarytoprocureit。
Possessingutility，commoditiesderivetheirexchangeablevaluefromtwosources:fromtheirscarcity，andfromthequantityoflabourrequiredtoobtainthem。
Therearesomecommodities，thevalueofwhichisdeterminedbytheirscarcityalone。Nolabourcanincreasethequantityofsuchgoods，andthereforetheirvaluecannotbeloweredbyanincreasedsupply。
Somerarestatuesandpictures，scarcebooksandcoins，winesofapeculiarquality，whichcanbemadeonlyfromgrapesgrownonaparticularsoil，ofwhichthereisaverylimitedquantity，areallofthisdescription。Theirvalueiswhollyindependentofthequantityoflabouroriginallynecessarytoproducethem，andvarieswiththevaryingwealthandinclinationsofthosewhoaredesiroustopossessthem。
Thesecommodities，however，formaverysmallpartofthemassofcommoditiesdailyexchangedinthemarket。Byfarthegreatestpartofthosegoodswhicharetheobjectsofdesire，areprocuredbylabour，。andtheymaybemultiplied，notinonecountryalone，butinmany，almostwithoutanyassignablelimit，ifwearedisposedtobestowthelabournecessarytoobtainthem。
Inspeakingthenofcommodities，oftheirexchangeablevalue，andofthelawswhichregulatetheirrelativeprices，wemeanalwayssuchcommoditiesonlyascanbeincreasedinquantitybytheexertionofhumanindustry，andontheproductionofwhichcompetitionoperateswithoutrestraint。
Intheearlystagesofsociety，theexchangeablevalueofthesecommodities，ortherulewhichdetermineshowmuchofoneshallbegiveninexchangeforanother，dependsalmostexclusivelyonthecomparativequantityoflabourexpendedoneach。
'Therealpriceofeverything，'saysAdamSmith，'whateverythingreallycoststothemanwhowantstoacquireit，isthetoilandtroubleofacquiringit。Whateverythingisreallyworthtoit，orthemanwhohasacquiredit，andwhowantstodisposeofit，orexchangeitforsomethingelse，isthetoilandtroublewhichitcansavetohimself，andwhichitcanimposeuponotherpeople。''Labourwasthefirstprice-theoriginalpurchase-moneythatwaspaidforallthings。'Again，，inthatearlyandrudestateofsociety，whichprecedesboththeaccumulationofstockandtheappropriationofland，theproportionbetweenthequantitiesoflabournecessaryforacquiringdifferentobjectsseemstobetheonlycircumstancewhichcanaffordanyruleforexchangingthemforoneanother。Ifamonganationofhunters，forexample，itusuallycosttwicethelabourtokillabeaverwhichitdoestokilladeer，onebeavershouldnaturallyexchangefor，orbeworthtwodeer。Itisnaturalthatwhatisusuallytheproduceoftwodays'，ortwohours'labour，shouldbeworthdoubleofwhatisusuallytheproduceofoneday's，oronehour'slabour。'(2*)
Thatthisisreallythefoundationoftheexchangeablevalueofallthings，exceptingthosewhichcannotbeincreasedbyhumanindustry，isadoctrineoftheutmostimportanceinpoliticaleconomy；forfromnosourcedosomanyerrors，andsomuchdifferenceofopinioninthatscienceproceed，asfromthevagueideaswhichareattachedtothewordvalue。
Ifthequantityoflabourrealizedincommodities，regulatetheirexchangeablevalue，everyincreaseofthequantityoflabourmustaugmentthevalueofthatcommodityonwhichitisexercised，aseverydiminutionmustlowerit。
AdamSmith，whosoaccuratelydefinedtheoriginalsourceofexchangeablevalue，andwhowasboundinconsistencytomaintain，thatallthingsbecamemoreorlessvaluableinproportionasmoreorlesslabourwasbestowedontheirproduction，hashimselferectedanotherstandardmeasureofvalue，andspeaksofthingsbeingmoreorlessvaluable，inproportionastheywillexchangeformoreorlessofthisstandardmeasure。Sometimeshespeaksofcorn，atothertimesoflabour，asastandardmeasure；notthequantityoflabourbestowedontheproductionofanyobject，butthequantitywhichitcancommandinthemarket:asiftheseweretwoequivalentexpressions，andasifbecauseaman'slabourhadbecomedoublyefficient，andhecouldthereforeproducetwicethequantityofacommodity，hewouldnecessarilyreceivetwicetheformerquantityinexchangeforit。
Ifthisindeedweretrue，iftherewardofthelabourerwerealwaysinproportiontowhatheproduced，thequantityoflabourbestowedonacommodity，andthequantityoflabourwhichthatcommoditywouldpurchase，wouldbeequal，andeithermightaccuratelymeasurethevariationsofotherthings:buttheyarenotequal；thefirstisundermanycircumstancesaninvariablestandard，indicatingcorrectlythevariationsofotherthings；thelatterissubjecttoasmanyfluctuationsasthecommoditiescomparedwithit。AdamSmith，aftermostablyshowingtheinsufficiencyofavariablemedium，suchasgoldandsilver，forthepurposeofdeterminingthevaryingvalueofotherthings，hashimself，byfixingoncornorlabour，chosenamediumnolessvariable。
Goldandsilverarenodoubtsubjecttofluctuations，fromthediscoveryofnewandmoreabundantmines；butsuchdiscoveriesarerare，andtheireffects，thoughpowerful，arelimitedtoperiodsofcomparativelyshortduration。Theyaresubjectalsotofluctuation，fromimprovementsintheskillandmachinerywithwhichtheminesmaybeworked；asinconsequenceofsuchimprovements，agreaterquantitymaybeobtainedwiththesamelabour。Theyarefurthersubjecttofluctuationfromthedecreasingproduceofthemines，aftertheyhaveyieldedasupplytotheworld，forasuccessionofages。Butfromwhichofthesesourcesoffluctuationiscornexempted?Doesnotthatalsovary，ononehand，fromimprovementsinagriculture，fromimprovedmachineryandimplementsusedinhusbandry，aswellasfromthediscoveryofnewtractsoffertileland，whichinothercountriesmaybetakenintocultivation，andwhichwillaffectthevalueofcornineverymarketwhereimportationisfree?Isitnotontheotherhandsubjecttobeenhancedinvaluefromprohibitionsofimportation，fromincreasingpopulationandwealth，andthegreaterdifficultyofobtainingtheincreasedsupplies，onaccountoftheadditionalquantityoflabourwhichthecultivationofinferiorlandsrequires?Isnotthevalueoflabourequallyvariable；beingnotonlyaffected，asallotherthingsare，bytheproportionbetweenthesupplyanddemand，whichuniformlyvarieswitheverychangeintheconditionofthecommunity，butalsobythevaryingpriceoffoodandothernecessaries，onwhichthewagesoflabourareexpended?
Inthesamecountrydoublethequantityoflabourmayberequiredtoproduceagivenquantityoffoodandnecessariesatonetime，thatmaybenecessaryatanother，andadistanttime；yetthelabourer'srewardmaypossiblybeverylittlediminished。Ifthelabourer'swagesattheformerperiod，wereacertainquantityoffoodandnecessaries，heprobablycouldnothavesubsistedifthatquantityhadbeenreduced。
Foodandnecessariesinthiscasewillhaverisen100percentifestimatedbythequantityoflabournecessarytotheirproduction，whiletheywillscarcelyhaveincreasedinvalue，ifmeasuredbythequantityoflabourforwhichtheywillexchange。
Thesameremarkmaybemaderespectingtwoormorecountries。InAmericaandPoland，onthelandlasttakenintocultivation，ayear'slabourofanygivennumberofmen，willproducemuchmorecornthanonlandsimilarlycircumstancedinEngland。Now，supposingallothernecessariestobeequallycheapinthosethreecountries，woulditnotbeagreatmistaketoconclude，thatthequantityofcornawardedtothelabourer，wouldineachcountrybeinproportiontothefacilityofproduction?
Iftheshoesandclothingofthelabourer，could，byimprovementsinmachinery，beproducedbyonefourthofthelabournownecessarytotheirproduction，theywouldprobablyfall75percent；butsofarisitfrombeingtrue，thatthelabourerwouldtherebybeenabledpermanentlytoconsumefourcoats，orfourpairofshoes，insteadofone，thatitisprobablehiswageswouldinnolongtimebeadjustedbytheeffectsofcompetition，andthestimulustopopulation，tothenewvalueofthenecessariesonwhichtheywereexpended。Iftheseimprovementsextendedtoalltheobjectsofthelabourer'sconsumption，weshouldfindhimprobablyattheendofaveryfewyears，inpossessionofonlyasmall，ifany，additiontohisenjoyments，althoughtheexchangeablevalueofthosecommodities，comparedwithanyothercommodity，inthemanufactureofwhichnosuchimprovementweremade，hadsustainedaveryconsiderablereduction；andthoughtheyweretheproduceofaveryconsiderablydiminishedquantityoflabour。
Itcannotthenbecorrect，tosaywithAdamSmith，'thataslabourmaysometimespurchaseagreater，andsometimesasmallerquantityofgoods，itistheirvaluewhichvaries，notthatofthelabourwhichpurchasesthem；'andtherefore，'thatlabouralonenevervaryinginitsownvalue，isalonetheultimateandrealstandardbywhichthevalueofallcommoditiescanatalltimesandplacesbeestimatedandcompared；'-
butitiscorrecttosay，asAdamSmithhadpreviouslysaid，'thattheproportionbetweenthequantitiesoflabournecessaryforacquiringdifferentobjectsseemstobetheonlycircumstancewhichcanaffordanyruleforexchangingthemforoneanother；orinotherwords，thatitisthecomparativequantityofcommoditieswhichlabourwillproduce，thatdeterminestheirpresentorpastrelativevalue，andnotthecomparativequantitiesofcommodities，whicharegiventothelabourerinexchangeforhislabour。
Twocommoditiesvaryinrelativevalue，andwewishtoknowinwhichthevariationhasreallytakenplace。Ifwecomparethepresentvalueofone，withshoes，stockings，hats，iron，sugar，andallothercommodities，wefindthatitwillexchangeforpreciselythesamequantityofallthesethingsasbefore。Ifwecomparetheotherwiththesamecommodities，wefindithasvariedwithrespecttothemall:wemaythenwithgreatprobabilityinferthatthevariationhasbeeninthiscommodity，andnotinthecommoditieswithwhichwehavecomparedit。Ifonexaminingstillmoreparticularlyintoallthecircumstancesconnectedwiththeproductionofthesevariouscommodities，wefindthatpreciselythesamequantityoflabourandcapitalarenecessarytotheproductionoftheshoes，stockings，hats，iron，sugar，&c。；butthatthesamequantityasbeforeisnotnecessarytoproducethesinglecommoditywhoserelativevalueisaltered，probabilityischangedintocertainty，andwearesurethatthevariationisinthesinglecommodity。
wethendiscoveralsothecauseofitsvariation。
IfIfoundthatanounceofgoldwouldexchangeforalessquantityofallthecommoditiesaboveenumerated，andmanyothers；andif，moreover，Ifoundthatbythediscoveryofanewandmorefertilemine，orbytheemploymentofmachinerytogreatadvantage，agivenquantityofgoldcouldbeobtainedwithalessquantityoflabour，I
shouldbejustifiedinsayingthatthecauseofthealterationinthevalueofgoldrelativelytoothercommodities，wasthegreaterfacilityofitsproduction，orthesmallerquantityoflabournecessarytoobtainit。Inlikemanner，iflabourfellveryconsiderablyinvalue，relativelytoallotherthings，andifIfoundthatitsfallwasinconsequenceofanabundantsupply，encouragedbythegreatfacilitywithwhichcorn，andtheothernecessariesofthelabourer，wereproduced，itwould，I
apprehend，becorrectformetosaythatcornandnecessarieshadfalleninvalueinconsequenceoflessquantityoflabourbeingnecessarytoproducethem，andthatthisfacilityofprovidingforthesupportofthelabourerhadbeenfollowedbyafallinthevalueoflabour。No，sayAdamSmithandMrMalthus，inthecaseofthegoldyouwerecorrectincallingitsvariationafallofitsvalue，becausecornandlabourhadnotthenvaried；andasgoldwouldcommandalessquantityofthem，aswellasofallotherthings，thanbefore，itwascorrecttosaythatallthingshadremainedstationary，andthatgoldonlyhadvaried；butwhencornandlabourfall，thingswhichwehaveselectedtobeourstandardmeasureofvalue，notwithstandingallthevariationstowhichweacknowledgetheyaresubject，itwouldbehighlyimpropertosayso；thecorrectlanguagewillbetosay，thatcornandlabourhaveremainedstationary，andallotherthingshaveriseninvalue。
NowitisagainstthislanguagethatIprotest。Ifindthatprecisely，asinthecaseofthegold，thecauseofthevariationbetweencornandotherthings，isthesmallerquantityoflabournecessarytoproduceit，andtherefore，byalljustreasoning，Iamboundtocallthevariationofcornandlabourafallintheirvalue，andnotariseinthevalueofthethingswithwhichtheyarecompared。IfIhavetohirealabourerforaweek，andinsteadoftenshillingsIpayhimeight，novariationhavingtakenplaceinthevalueofmoney，thelabourercanprobablyobtainmorefoodandnecessaries，withhiseightshillings，thanhebeforeobtainedforten:
butthisisowing，nottoariseintherealvalueofhiswages，asstatedbyAdamSmith，andmorerecentlybyMrMalthus，buttoafallinthevalueofthethingsonwhichiswagesareexpended，thingsperfectlydistinct；andyetforcallingthisafallintherealvalueofwages，IamtoldthatIadoptnewandunusuallanguage，notreconcileablewiththetrueprinciplesofthescience。Tomeitappearsthattheunusualand，indeed，inconsistentlanguage，isthatusedbymyopponents。
Supposealabourertobepaidabushelofcornforaweek'swork，whenthepriceofcornis80s。perquarter，andthatheispaidabushelandaquarterwhenthepricefallsto40s。Suppose，too，thatheconsumeshalfabushelofcorna-weekinhisownfamily，andexchangestheremainderforotherthings，suchasfuel，soap，candles，tea，sugar，salt，&c。&c。；ifthethree-fourthsofabushelwhichwillremaintohim，inonecase，cannotprocurehimasmuchoftheabovecommoditiesashalfabusheldidintheother，whichitwillnot，willlabourhaverisenorfalleninvalue?Risen，AdamSmithmustsay，becausehisstandardiscorn，andthelabourerreceivesmorecornforaweek'slabour。Fallen，mustthesameAdamSmithsay，'becausethevalueofathingdependsonthepowerofpurchasingothergoodswhichthepossessionofthatobjectconveys，'
andlabourhasalesspowerofpurchasingsuchothergoods。
SectionII
Labourofdifferentqualitiesdifferentlyrewarded。Thisisnocauseofvariationintherelativevalueofcommodities。
Inspeaking，however，oflabour，asbeingthefoundationofallvalue，andtherelativequantityoflabourasalmostexclusivelydeterminingtherelativevalueofcommodities，Imustnotbesupposedtobeinattentivetothedifferentqualitiesoflabour，andthedifficultyofcomparinganhour'soraday'slabour，inoneemployment，withthesamedurationoflabourinanother。Theestimationinwhichdifferentqualitiesoflabourareheld，comessoontobeadjustedinthemarketwithsufficientprecisionforallpracticalpurposes，anddependsmuchonthecomparativeskillofthelabourer，andintensityofthelabourperformed。Thescale，whenonceformed，isliabletolittlevariation。Ifaday'slabourofaworkingjewellerbemorevaluablethanaday'slabourofacommonlabourer，ithaslongagobeenadjusted，andplacedinitsproperpositioninthescaleofvalue。(3*)
Incomparingthereforethevalueofthesamecommodity，atdifferentperiodsoftime，theconsiderationofthecomparativeskillandintensityoflabour，requiredforthatparticularcommodity，needsscarcelytobeattendedto，asitoperatesequallyatbothperiods。Onedescriptionoflabouratonetimeiscomparedwiththesamedescriptionoflabouratanother；ifatenth，afifth，orafourth，hasbeenaddedortakenaway，aneffectproportionedtothecausewillbeproducedontherelativevalueofthecommodity。
Ifapieceofclothbenowofthevalueoftwopiecesoflinen，andif，intenyearshence，theordinaryvalueofapieceofclothshouldbefourpiecesoflinen，wemaysafelyconclude，thateithermorelabourisrequiredtomakethecloth，orlesstomakethelinen，orthatbothcauseshaveoperated。
AstheinquirytowhichIwishtodrawthereader'sattention，relatestotheeffectofthevariationsintherelativevalueofcommodities，andnotintheirabsolutevalue，itwillbeoflittleimportancetoexamineintothecomparativedegreeofestimationinwhichthedifferentkindsofhumanlabourareheld。Wemayfairlyconclude，thatwhateverinequalitytheremightoriginallyhavebeeninthem，whatevertheingenuity，skill，ortimenecessaryfortheacquirementofonespeciesofmanualdexteritymorethananother，itcontinuesnearlythesamefromonegenerationtoanother；oratleast，thatthevariationisveryinconsiderablefromyeartoyear，andtherefore，canhavelittleeffect，forshortperiods，ontherelativevalueofcommodities。
'Theproportionbetweenthedifferentratesbothofwagesandprofitinthedifferentemploymentsoflabourandstock，seemsnottobemuchaffected，ashasalreadybeenobserved，bytherichesorpoverty，theadvancing，stationary，ordecliningstateofthesociety。Suchrevolutionsinthepublicwelfare，thoughtheyaffectthegeneralratesbothofwagesandprofit，mustintheendaffectthemequallyinalldifferentemployments。Theproportionbetweenthemthereforemustremainthesame，andcannotwellbealtered，atleastforanyconsiderabletime，byanysuchrevolutions。'(4*)
SectionIII
Notonlythelabourappliedimmediatelytocommoditiesaffecttheirvalue，butthelabouralsowhichisbestowedonthecomplements，tools，andbuildings，withwhichmuchlabourisassisted。
EveninthatearlystatetowhichAdamSmithrefers，somecapital，thoughpossiblymadeandaccumulatedbythehunterhimself，wouldbenecessarytoenablehimtokillhisgame。Withoutsomeweapon，neitherthebeavernorthedeercouldbedestroyed，andthereforethevalueoftheseanimalswouldberegulated，notsolelybythetimeandlabournecessarytotheirdestruction，butalsobythetimeandlabournecessaryforprovidingthehunter'scapital，theweapon，bytheaidofwhichtheirdestructionwaseffected。
Supposetheweaponnecessarytokillthebeaver，wasconstructedwithmuchmorelabourthanthatnecessarytokillthedeer，onaccountofthegreaterdifficultyofapproachingneartotheformeranimal，andtheconsequentnecessityofitsbeingmoretruetoitsmark；onebeaverwouldnaturallybeofmorevaluethantwodeer，andpreciselyforthisreason，thatmorelabourwould，onthewhole，benecessarytoitsdestruction。Orsupposethatthesamequantityoflabourwasnecessarytomakebothweapons，butthattheywereofveryunequaldurability；ofthedurableimplementonlyasmallportionofitsvaluewouldbetransferredtothecommodity，amuchgreaterportionofthevalueofthelessdurableimplementwouldberealizedinthecommoditywhichitcontributedtoproduce。
Alltheimplementsnecessarytokillthebeaveranddeermightbelongtooneclassofmen，andthelabouremployedintheirdestructionmightbefurnishedbyanotherclass；still，theircomparativepriceswouldbeinproportiontotheactuallabourbestowed，bothontheformationofthecapital，andonthedestructionoftheanimals。Underdifferentcircumstancesofplentyorscarcityofcapital，ascomparedwithlabour，underdifferentcircumstancesofplentyorscarcityofthefoodandnecessariesessentialtothesupportofmen，thosewhofurnishedanequalvalueofcapitalforeitheroneemploymentorfortheother，mighthaveahalf，afourth，oraneighthoftheproduceobtained，theremainderbeingpaidaswagestothosewhofurnishedthelabour。yetthisdivisioncouldnotaffecttherelativevalueofthesecommodities，sincewhethertheprofitsofcapitalweregreaterorless，whethertheywere50，20，orIOpercentorwhetherthewagesoflabourwerehighorlow，theywouldoperateequallyonbothemployments。
Ifwesupposetheoccupationsofthesocietyextended，thatsomeprovidecanoesandtacklenecessaryforfishing，otherstheseedandrudemachineryfirstusedinagriculture，stillthesameprinciplewouldholdtrue，thattheexchangeablevalueofthecommoditiesproducedwouldbeinproportiontothelabourbestowedontheirproduction；notontheirimmediateproductiononly，butonallthoseimplementsormachinesrequiredtogiveeffecttotheparticularlabourtowhichtheywereapplied。
Ifwelooktoastateofsocietyinwhichgreaterimprovementshavebeenmade，andinwhichartsandcommerceflourish，weshallstillfindthatcommoditiesvaryinvalueconformablywiththisprinciple:inestimatingtheexchangeablevalueofstockings，forexample，weshallfindthattheirvalue，comparativelywithotherthings，dependsonthetotalquantityoflabournecessarytomanufacturethem，andbringthemtomarket。First，thereisthelabournecessarytocultivatethelandonwhichtherawcottonisgrown；secondly，thelabourofconveyingthecottontothecountrywherethestockingsaretobemanufactured，whichincludesaportionofthelabourbestowedinbuildingtheshipinwhichitisconveyed，andwhichischargedinthefreightofthegoods；thirdly，thelabourofthespinnerandweaver；fourthly，aportionofthelabouroftheengineer，smith，andcarpenter，whoerectedthebuildingsandmachinery，bythehelpofwhichtheyaremade；fifthly，thelabouroftheretaildealer，andofmanyothers，whomitisunnecessaryfurthertoparticularize。Theaggregatesumofthesevariouskindsoflabour，determinesthequantityofotherthingsforwhichthesestockingswillexchange，whilethesameconsiderationofthevariousquantitiesoflabourwhichhavebeenbestowedonthoseotherthings，willequallygoverntheportionofthemwhichwillbegivenforthestockings。
Toconvinceourselvesthatthisistherealfoundationofexchangeablevalue，letussupposeanyimprovementtobemadeinthemeansofabridginglabourinanyoneofthevariousprocessesthroughwhichtherawcottonmustpass，beforethemanufacturedstockingscometothemarket，tobeexchangedforotherthings；andobservetheeffectswhichwillfollow。Iffewermenwererequiredtocultivatetherawcotton，oriffewersailorswereemployedinnavigating，orshipwrightsinconstructingtheship，inwhichitwasconveyedtous；iffewerhandswereemployedinraisingthebuildingsandmachinery，orifthese，whenraised，wererenderedmoreefficient，thestockingswouldinevitablyfallinvalue，andconsequentlycommandlessofotherthings。Theywouldfall，becausealessquantityoflabourwasnecessarytotheirproduction，andwouldthereforeexchangeforasmallerquantityofthosethingsinwhichnosuchabridgmentoflabourhadbeenmade。
Economyintheuseoflabourneverfailstoreducetherelativevalueofacommodity，whetherthesavingbeinthelabournecessarytothemanufactureofthecommodityitself，orinthatnecessarytotheformationofthecapital，bytheaidofwhichitisproduced。Ineithercasethepriceofstockingswouldfall，whethertherewerefewermenemployedasbleachers，spinners，andweavers，personsimmediatelynecessarytotheirmanufacture；orassailors，carriers，engineers，andsmiths，personsmoreindirectlyconcerned。Intheonecase，thewholesavingoflabourwouldfallonthestockings，becausethatportionoflabourwaswhollyconfinedtothestockings；intheother，aportiononlywouldfallonthestockings，theremainderbeingappliedtoallthoseothercommodities，totheproductionofwhichthebuildings，machinery，andcarriage，weresubservient。
Supposethatintheearlystagesofsociety，thebowsandarrowsofthehunterwereofequalvalue，andofequaldurability，withthecanoeandimplementsofthefisherman，bothbeingtheproduceofthesamequantityoflabour。Undersuchcircumstancesthevalueofthedeer，theproduceofthehunter'sday'slabour，wouldbeexactlyequaltothevalueofthefish，theproduceofthefisherman'sday'slabour。Thecomparativevalueofthefishandthegame，wouldbeentirelyregulatedbythequantityoflabourrealizedineach；whatevermightbethequantityofproduction，orhoweverhighorlowgeneralwagesorprofitsmightbe。Ifforexamplethecanoesandimplementsofthefishermanwereofthevalueof=A3100andwerecalculatedtolastfortenyears，andheemployedtenmen，whoseannuallabourcost=A3100andwhoinonedayobtainedbytheirlabourtwentysalmon:Iftheweaponsemployedbythehunterwerealsoof=A3100valueandcalculatedtolasttenyears，andifhealsoemployedtenmen，whoseannuallabourcost=A3100andwhoinonedayprocuredhimtendeer；thenthenaturalpriceofadeerwouldbetwosalmon，whethertheproportionofthewholeproducebestowedonthemenwhoobtainedit，werelargeorsmall。Theproportionwhichmightbepaidforwages，isoftheutmostimportanceinthequestionofprofits；
foritmustatoncebeseen，thatprofitswouldbehighorlow，exactlyinproportionaswageswereloworhigh；butitcouldnotintheleastaffecttherelativevalueoffishandgame，aswageswouldbehighorlowatthesametimeinbothoccupations。Ifthehunterurgedthepleaofhispayingalargeproportion，orthevalueofalargeproportionofhisgameforwages，asaninducementtothefishermantogivehimmorefishinexchangeforhisgame，thelatterwouldstatethathewasequallyaffectedbythesamecause；andthereforeunderallvariationsofwagesandprofits，underalltheeffectsofaccumulationofcapital，aslongastheycontinuedbyaday'slabourtoobtainrespectivelythesamequantityoffish，andthesamequantityofgame，thenaturalrateofexchangewouldbeonedeerfortwosalmon。
Ifwiththesamequantityoflabouralessquantityoffish，oragreaterquantityofgamewereobtained，thevalueoffishwouldriseincomparisonwiththatofgame。If，onthecontrary，withthesamequantityoflabouralessquantityofgame，oragreaterquantityoffishwasobtained，gamewouldriseincomparisonwithfish。
Iftherewereanyothercommoditywhichwasinvariableinitsvalue，weshouldbeabletoascertain，bycomparingthevalueoffishandgamewiththiscommodity，howmuchofthevariationwastobeattributedtoacausewhichaffectedthevalueoffish，andhowmuchtoacausewhichaffectedthevalueofgame。
Supposemoneytobethatcommodity。Ifasalmonwereworth=A31andadeer=A32onedeerwouldbeworthtwosalmon。Butadeermightbecomeofthevalueofthreesalmon，formorelabourmightberequiredtoobtainthedeer，orlesstogetthesalmonorboththesecausesmightoperateatthesametime。Ifwehadthisinvariablestandard，wemighteasilyascertaininwhatdegreeeitherofthesecausesoperated。Ifsalmoncontinuedtosellfor=A31whilstdeerroseto=A33wemightconcludethatmorelabourwasrequiredtoobtainthedeer。Ifdeercontinuedatthesamepriceof=A32andsalmonsoldfor13s。4d。wemightthenbesurethatlesslabourwasrequiredtoobtainthesalmon；andifdeerrosetoA3210sandsalmonfellto16s。8d。weshouldbeconvincedthatbothcauseshadoperatedinproducingthealterationoftherelativevalueofthesecommodities。
Noalterationinthewagesoflabourcouldproduceanyalterationintherelativevalueofthesecommodities；forsupposethemtorise，nogreaterquantityoflabourwouldberequiredinanyoftheseoccupations，butitwouldbepaidforatahigherprice，andthesamereasonswhichshouldmakethehunterandfishermanendeavourtoraisethevalueoftheirgameandfish，wouldcausetheowneroftheminetoraisethevalueofhisgold。Thisinducementactingwiththesameforceonallthesethreeoccupations，andtherelativesituationofthoseengagedinthembeingthesamebeforeandaftertheriseofwages，therelativevalueofgame，fish，andgold，wouldcontinueunaltered。Wagesmightrisetwentypercent，andprofitsconsequentlyfallinagreaterorlessproportion，withoutoccasioningtheleastalterationintherelativevalueofthesecommodities。
Nowsuppose，thatwiththesamelabourandfixedcapital，morefishcouldbeproduced，butnomoregoldorgame，therelativevalueoffishwouldfallincomparisonwithgoldorgame。If，insteadoftwentysalmon，twenty-fiveweretheproduceofoneday'slabour，thepriceofasalmonwouldbesixteenshillingsinsteadofapound，andtwosalmonandahalf，insteadoftwosalmon，wouldbegiveninexchangeforonedeer，butthepriceofdeerwouldcontinueat=A32asbefore。Inthesamemanner，iffewerfishcouldbeobtainedwiththesamecapitalandlabour，fishwouldriseincomparativevalue。Fishthenwouldriseorfallinexchangeablevalue，onlybecausemoreorlesslabourwasrequiredtoobtainagivenquantity；anditnevercouldriseorfallbeyondtheproportionoftheincreasedordiminishedquantityoflabourrequired。
Ifwehadthenaninvariablestandard，bywhichmeasurethevariationinothercommodities，weshouldtheutmostlimittowhichtheycouldpermanentlyrise，ifproducedunderthecircumstancessupposed，wasproportionedtheadditionalquantityoflabourrequiredfortheirproduction；andthatunlessmorelabourwererequiredfortheirproduction，theycouldnotriseinanydegreewhatever。Ariseofwageswouldnotraisetheminmoneyvalue，norrelativelytoanyothercommodities，theproductionofwhichrequirednoadditionalquantityoflabour，whichemployedthesameproportionoffixedandcirculatingcapital，andfixedcapitalofthesamedurability。Ifmoreorlesslabourwererequiredintheproductionoftheothercommodity，wehavealreadystatedthatthiswillimmediatelyoccasionanalterationinitsrelativevalue，butsuchalterationisowingtothealteredquantityofrequisitelabour，andnottotheriseofwages。
SectionIV
Theprinciplethatthequantityoflabourbestowedontheproductionofcommoditiesregulatestheirrelativevalue，considerablymodifiedbytheemploymentofmachineryandotherfixedanddurablecapital。
Intheformersectionwehavesupposedtheimplementsandweaponsnecessarytokillthedeerandsalmon，tobeequallydurable，andtobetheresultofthesamequantityoflabour，andwehaveseenthatthevariationsintherelativevalueofdeerandsalmondependedsolelyonthevaryingquantitiesoflabournecessarytoobtainthem，-butineverystateofsociety，thetools，implements，buildings，andmachineryemployedindifferenttradesmaybeofvariousdegreesofdurability，andmayrequiredifferentportionsoflabourtoproducethem。Theproportions，too，inwhichthecapitalthatistosupportlabour，andthecapitalthatisinvestedintools，machineryandbuildings，maybevariouslycombined。Thisdifferenceinthedegreeofdurabilityoffixedcapital，andthisvarietyintheproportionsinwhichthetwosortsofcapitalmaybecombined，introduceanothercause，besidesthegreaterorlessquantityoflabournecessarytoproducecommodities，forthevariationsintheirrelativevalue-thiscauseistheriseorfallinthevalueoflabour。
Thefoodandclothingconsumedbythelabourer，thebuildingsinwhichheworks，theimplementswithwhichhislabourisassisted，areallofaperishablenature。Thereishoweveravastdifferenceinthetimeforwhichthesedifferentcapitalswillendure:asteam-enginewilllastlongerthanaship，ashipthantheclothingofthelabourer，andtheclothingofthelabourerlongerthanthefoodwhichheconsumes。
Accordingascapitalisrapidlyperishable，andrequirestobefrequentlyreproduced，orisofslowconsumption，itisclassedundertheheadsofcirculating，oroffixedcapital。(5*)Abrewer，whosebuildingsandmachineryarevaluableanddurable，issaidtoemployalargeportionoffixedcapital:onthecontrary，ashoemaker，whosecapitalischieflyemployedinthepaymentofwages，whichareexpendedonfoodandclothing，commoditiesmoreperishablethanbuildingsandmachinery，issaidtoemployalargeproportionofhiscapitalascirculatingcapital。
Itisalsotobeobservedthatthecirculatingcapitalmaycirculate，orbereturnedtoitsemployer，inveryunequaltimes。Thewheatboughtbyafarmertosowiscomparativelyafixedcapitaltothewheatpurchasedbyabakertomakeintoloaves。Oneleavesitintheground，andcanobtainnoreturnforayear；theothercangetitgroundintoflour，sellitasbreadtohiscustomers，andhavehiscapitalfreetorenewthesame，orcommenceanyotheremploymentinaweek。
Twotradesthenmayemploythesameamountofcapital；butitmaybeverydifferentlydividedwithrespecttotheportionwhichisfixed，andthatwhichiscirculating。
Inonetradeverylittlecapitalmaybeemployedascirculatingcapital，thatistosayinthesupportoflabour-itmaybeprincipallyinvestedinmachinery，implements，buildings，&c。capitalofacomparativelyfixedanddurablecharacter。Inanothertradethesameamountofcapitalmaybeused，butitmaybechieflyemployedinthesupportoflabour，andverylittlemaybeinvestedinimplements，machines，andbuildings。Ariseinthewagesoflabourcannotfailtoaffectunequally，commoditiesproducedundersuchdifferentcircumstances。
Againtwomanufacturersmayemploythesameamountoffixed，andthesameamountofcirculatingcapital；butthedurabilityoftheirfixedcapitalsmaybeveryunequal。Onemayhavesteam-enginesofthevalueof=A310，000，theother，shipsofthesamevalue。
Ifmenemployednomachineryinproductionbutlabouronly，andwereallthesamelengthoftimebeforetheybroughttheircommoditiestomarket，theexchangeablevalueoftheirgoodswouldbepreciselyinproportiontothequantityoflabouremployed。
Iftheyemployedfixedcapitalofthesamevalueandofthesamedurability，then，too，thevalueofthecommoditiesproducedwouldbethesame，andtheywouldvarywiththegreaterorlessquantityoflabouremployedontheirproduction。
Butalthoughcommoditiesproducedundersimilarcircumstances，wouldnotvarywithrespecttoeachother，fromanycausebutanadditionordiminutionofthequantityoflabournecessarytoproduceoneorotherofthem，yetcomparedwithothersnotproducedwiththesameproportionatequantityoffixedcapital，theywouldvaryfromtheothercausealsowhichIhavebeforementioned，namely，ariseinthevalueoflabour，althoughneithermorenorlesslabourwereemployedintheproductionofeitherofthem。Barleyandoatswouldcontinuetobearthesamerelationtoeachotherunderanyvariationofwages。Cottongoodsandclothwoulddothesame，iftheyalsowereproducedundercircumstancespreciselysimilartoeachother，butyetwithariseorfallofwages，barleymightbemoreorlessvaluablecomparedwithcottongoods，andoatscomparedwithcloth。
Supposetwomenemployonehundredmeneachforayearintheconstructionoftwomachines，andanothermanemploysthesamenumberofmenincultivatingcorn，eachofthemachinesattheendoftheyearwillbeofthesamevalueasthecorn，fortheywilleachbeproducedbythesamequantityoflabour。Supposeoneoftheownersofoneofthemachinestoemployit，withtheassistanceofonehundredmen，thefollowingyearinmakingcloth，andtheowneroftheothermachinetoemployhisalso，withtheassistancelikewiseofonehundredmen，inmakingcottongoods，whilethefarmercontinuestoemployonehundredmenasbeforeinthecultivationofcorn。Duringthesecondyeartheywillallhaveemployedthesamequantityoflabour，butthegoodsandmachinetogetheroftheclothier，andalsoofthecottonmanufacturer，willbetheresultofthelabouroftwohundredmen，employedforayear；or，rather，ofthelabourofonehundredmenfortwoyears；whereasthecornwillbeproducedbythelabourofonehundredmenforoneyear，consequentlyifthecornbeofthevalueof=A3500themachineandclothoftheclothiertogether，oughttobeofthevalueof=A31，000andthemachineandcottongoodsofthecottonmanufactureroughttobealsooftwicethevalueofthecorn。Buttheywillbeofmorethantwicethevalueofthecorn，fortheprofitontheclothier'sandcottonmanufacturer'scapitalforthefirstyearhasbeenaddedtotheircapitals，whilethatofthefarmerhasbeenexpendedandenjoyed。Onaccountthenofthedifferentdegreesofdurabilityoftheircapitals，or，whichisthesamething，onaccountofthetimewhichmustelapsebeforeonesetofcommoditiescanbebroughttomarket，theywillbevaluable，notexactlyinproportiontothequantityoflabourbestowedonthem，-theywillnotbeastwotoone，butsomethingmore，tocompensateforthegreaterlengthoftimewhichmustelapsebeforethemostvaluablecanbebroughttomarket。
Supposethatforthelabourofeachworkman=A350perannumwerepaid，orthat=A35，000capitalwereemployedandprofitswere10percent，thevalueofeachofthemachinesaswellasofthecorn，attheendofthefirstyear，wouldbe=A35，500。Thesecondyearthemanufacturersandfarmerwillagainemploy=A35，000eachinthesupportoflabour，andwillthereforeagainselltheirgoodsfor=A35，500，butthemenusingthemachines，tobeonaparwiththefarmer，mustnotonlyobtain=A35，500，fortheequalcapitalsof=A35，000employedonlabour，buttheymustobtainafurthersumof=A3550；fortheprofiton=A35，500whichtheyhaveinvestedinmachinery，andconsequentlytheirgoodsmustsellfor=A36，050。Herethenarecapitalistsemployingpreciselythesamequantityoflabourannuallyontheproductionoftheircommodities，andyetthegoodstheyproducedifferinvalueonaccountofthedifferentquantitiesoffixedcapital，oraccumulatedlabour，employedbyeachrespectively。
Theclothandcottongoodsareofthesamevalue，becausetheyaretheproduceofequalquantitiesoflabour，andequalquantitiesoffixedcapital；butcornisnotofthesamevalueasthesecommodities，becauseitisproduced，asfarasregardsfixedcapital，underdifferentcircumstances。
Buthowwilltheirrelativevaluebeaffectedbyariseinthevalueoflabour?Itisevidentthattherelativevaluesofclothandcottongoodswillundergonochange，forwhataffectsonemustequallyaffecttheother，underthecircumstancessupposed:neitherwilltherelativevaluesofwheatandbarleyundergoanychange，fortheyareproducedunderthesamecircumstancesasfarasfixedandcirculatingcapitalareconcerned；buttherelativevalueofcorntocloth，ortocottongoods，mustbealteredbyariseoflabour。
Therecanbenoriseinthevalueoflabourwithoutafallofprofits。Ifthecornistobedividedbetweenthefarmerandthelabourer，thelargertheproportionthatisgiventothelatter，thelesswillremainfortheformer。Soifclothorcottongoodsbedividedbetweentheworkmanandhisemployer，thelargertheproportiongiventotheformer，thelessremainsforthelatter。Supposethen，thatowingtoariseofwages，profitsfallfrom10to9percent，insteadofadding=A3550tothecommonpriceoftheirgoods(to=A35，500)fortheprofitsontheirfixedcapital，themanufacturerswouldaddonly9percentonthatsum，or=A3495，consequentlythepricewouldbe=A35，995insteadof=A36，050。Asthecornwouldcontinuetosellfor=A35，500，themanUfacturedgoodsinwhichmorefixedcapitalwasemployed，wouldfallrelativelytocornortoanyothergoodsinwhichalessportionoffixedcapitalentered。Thedegreeofalterationintherelativevalueofgoods，onaccountofariseorfalloflabour，woulddependontheproportionwhichthefixedcapitalboretothewholecapitalemployed。Allcommoditieswhichareproducedbyveryvaluablemachinery，orinveryvaluablebuildings，orwhichrequireagreatlengthoftimebeforetheycanbebroughttomarket，wouldfallinrelativevalue，whileallthosewhichwerechieflyproducedbylabour，orwhichwouldbespeedilybroughttomarketwouldriseinrelativevalue。
Thereader，however，shouldremark，thatthiscauseofthevariationofcommoditiesiscomparativelyslightinitseffects。Withsuchariseofwagesasshouldoccasionafallofoneper。centinprofits，goodsproducedunderthecircumstancesIhavesupposed，varyinrelativevalueonlyonepercent:theyfallwithsogreatafallofprofitsfrom=A36，050to=A35，995。Thegreatesteffectswhichcouldbeproducedontherelativepricesofthesegoodsfromariseofwages，couldnotexceed6or7percent；forprofitscouldnot，probably，underanycircumstances，admitofagreatergeneralandpermanentdepressionthantothatamount。
Notsowiththeothergreatcauseofthevariationinthevalueofcommodities，namely，theincreaseordiminutioninthequantityoflabournecessarytoproducethem。Iftoproducethecorn，eighty，insteadofonehundredmen，shouldberequired，thevalueofthecornwouldfall20percentorfrom=A35，500to=A34，400。Iftoproducethecloth，thelabourofeightyinsteadofonehundredmenwouldsuffice，clothwouldfallfrom=A36，050to=A34，950。Analterationinthepermanentrateofprofits，toanygreatamount，istheeffectofcauseswhichdonotoperatebutinthecourseofyears；whereasalterationsinthequantityoflabournecessarytoproducecommodities，areofdailyoccurrence。Everyimprovementinmachinery，intools，inbuildings，inraisingtherawmaterial，saveslabour，andenablesustoproducethecommoditytowhichtheimprovementisappliedwithmorefacility，andconsequentlyitsvaluealters。Inestimating，then，thecausesofthevariationsinthevalueofcommodities，althoughitwouldbewrongwhollytoomittheconsiderationoftheeffectproducedbyariseorfalloflabour，itwouldbeequallyincorrecttoattachmuchimportancetoit；andconsequently，inthesubsequentpartofthiswork，thoughIshalloccasionallyrefertothiscauseofvariation，Ishallconsiderallthegreat。variationswhichtakeplaceintherelativevalueofcommoditiestobeproducedbythegreaterorlessquantityoflabourwhichmayberequiredfromtimetotimetoproducethem。
Itishardlynecessarytosay，thatcommoditieswhichhavethesamequantityoflabourbestowedontheirproduction，willdifferinexchangeablevalue，iftheycannotbebroughttomarketinthesametime。
SupposeIemploytwentymenatanexpenseof=A31，000forayearintheproductionofacommodity，andattheendoftheyearIemploytwentymenagainforanotheryear，atafurtherexpenseof=A31，000infinishingorperfectingthesamecommodity，andthatIbringittomarketattheendoftwoyears，ifprofitsbe10percent，mycommoditymustsellfor=A32，310；forIhaveemployed=A31，000capitalforoneyear，and=A32，100
capitalforoneyearmore。Anothermanemployspreciselythesamequantityoflabour，butheemploysitallinthefirstyear；heemploysfortymenatanexpenseof=A32，000，andattheendofthefirstyearhesellsitwith10percentprofit，orfor=A32，200。Herethenaretwocommoditieshavingpreciselythesamequantityoflabourbestowedonthem，oneofwhichsellsfor=A32，310-theotherfor=A32，200。
Thiscaseappearstodifferfromthelast，butis，infact，thesame。Innbothcasesthesuperiorpriceofonecommodityisowingtothegreaterlengthoftimewhichmustelapsebeforeitcanbebroughttomarket。Intheformercasethemachineryandclothweremorethandoublethevalueofthecorn，althoughonlydoublethequantityoflabourwasbestowedonthem。Inthesecondcase，onecommodityismorevaluablethantheother，althoughnomorelabourwasemployedonitsproduction。
Thedifferenceinvaluearisesinbothcasesfromtheprofitsbeingaccumulatedascapital，andisonlyajustcompensationforthetimethattheprofitswerewithheld。
Itappearsthenthatthedivisionofcapitalintodifferentproportionsoffixedandcirculatingcapital，employedindifferenttrades，introducesaconsiderablemodificationtotherule，whichisofuniversalapplicationwhenlabourisalmostexclusivelyemployedinproduction；
namely，thatcommoditiesnevervaryinvalue，unlessagreaterorlessquantityoflabourbebestowedontheirproduction，itbeingshowninthissectionthatwithoutanyvariationinthequantityoflabour，theriseofitsvaluemerelywilloccasionafallintheexchangeablevalueofthosegoods，intheproductionofwhichfixedcapitalisemployed；thelargertheamountoffixedcapital，thegreaterwillbethefall。
SectionV
Theprinciplethatvaluedoesnotvarywiththeriseoffallofwages，modifiedalsobytheunequaldurabilityofcapital，andbytheunequalrapiditywithwhichitisreturnedtoitsemployer。
Inthelastsectionwehavesupposedthatoftwoequalcapitalsintwodifferentoccupations，theproportionsoffixedandcirculatingcapitalswereunequal，nowletussupposethemtobeinthesameproportionbutofunequaldurability。Inproportionasfixedcapitalislessdurable，itapproachestothenatureofcirculatingcapital。Itwillbeconsumedanditsvaluereproducedinashortertime，inordertopreservethecapitalofthemanufacturer。Wehavejustseen，thatinproportionasfixedcapitalpreponderatesinamanufacture，whenwagesrise，thevalueofcommoditiesproducedinthatmanufacture，isrelativelylowerthanthatofcommoditiesproducedinmanufactureswherecirculatingcapitalpreponderates。Inproportiontothelessdurabilityoffixedcapital，anditsapproachtothenatureofcirculatingcapital，thesameeffectwillbeproducedbythesamecause。
Iffixedcapitalbenotofadurablenature，itwillrequireagreatquantityoflabourannuallytokeepitinitsoriginalstateofefficiency；
butthelaboursobestowedmaybeconsideredasreallyexpendedonthecommoditymanufactured，whichmustbearavalueinproportiontosuchlabour。IfIhadamachineworth=A320，000whichwithverylittlelabourwasefficienttotheproductionofcommodities，andifthewearandtearofsuchmachinewereoftriflingamount，andthegeneralrateofprofit10percent，Ishouldnotrequiremuchmorethan=A32，000tobeaddedtothepriceofthegoods，onaccountoftheemploymentofmymachine；butifthewearandtearofthemachineweregreat，ifthequantityoflabourrequisitetokeepitinanefficientstatewerethatoffiftymenannually，Ishouldrequireanadditionalpriceformygoods，equaltothatwhichwouldbeobtainedbyanyothermanufacturerwhoemployedfiftymenintheproductionofothergoods，andwhousednomachineryatall。
Butariseinthewagesoflabourwouldnotequallyaffectcommoditiesproducedwithmachineryquicklyconsumed，andcommoditiesproducedwithmachineryslowlyconsumed。Intheproductionoftheone，agreatdealoflabourwouldbecontinuallytransferredtothecommodityproduced-intheotherverylittlewouldbesotransferred。Everyriseofwages，therefore，or，whichisthesamething，everyfallofprofits，wouldlowertherelativevalueofthosecommoditieswhichwereproducedwithacapitalofadurablenature，andwouldproportionallyelevatethosewhichwereproducedwithcapitalmoreperishable。Afallofwageswouldhavepreciselythecontraryeffect。
Ihavealreadysaidthatfixedcapitalisofvariousdegreesofdurability-supposenowamachinewhichcouldinanyparticulartradebeemployedtodotheworkofonehundredmenforayear，andthatitwouldlastonlyforoneyear。Supposetoo，themachinetocost=A35，000，andthewagesannuallypaidtoonehundredmentobe=A35，000，itisevidentthatitwouldbeamatterofindifferencetothemanufacturerwhetherheboughtthemachineoremployedthemen。Butsupposelabourtorise，andconsequentlythewagesofonehundredmenforayeartoamountto=A35，500，itisobviousthatthemanufacturerwouldnownolongerhesitate，itwouldbeforhisinteresttobuythemachineandgethisworkdonefor=A35，000。Butwillnotthemachineriseinprice，willnotthatalsobeworth=A35，500inconsequenceoftheriseoflabour?Itwouldriseinpriceiftherewerenostockemployedonitsconstruction，andnoprofitstobepaidtothemakerofit。Ifforexample，themachineweretheproduceofthelabourofonehundredmen，workingoneyearuponitwithwagesof=A350each，anditspricewereconsequently=A35，000；
shouldthosewagesriseto=A355，itspricewouldbe=A35，500，butthiscannotbethecase；lessthanonehundredmenareemployedoritcouldnotbesoldfor=A35，000，foroutofthe=A35，000mustbepaidtheprofitsofthestockwhichemployedthemen。Supposethenthatonlyeighty-fivemenwereemployedatanexpenseof=A350each，or=A34，250perannum，andthatthe=A3750whichthesaleofthemachinewouldproduceoverandabovethewagesadvancedtothemen，constitutedtheprofitsoftheengineer'sstock。Whenwagesrose10percenthewouldbeobligedtoemployanadditionalcapitalof=A3425andwouldthereforeemploy=A34，675insteadof=A34，250，onwhichcapitalhewouldonlygetaprofitof=A3325ifhecontinuedtosellhismachinefor=A35，000；butthisispreciselythecaseofallmanufacturersandcapitalists；theriseofwagesaffectsthemall。Ifthereforethemakerofthemachineshouldraisethepriceofitinconsequenceofariseofwages，anunusualquantityofcapitalwouldbeemployedintheconstructionofsuchmachines，tilltheirpriceaffordedonlythecommonrateofprofits。(6*)Weseethenthatmachineswouldnotriseinprice，inconsequenceofariseofwages。
Themanufacturer，however，whoinageneralriseofwages，canhaverecoursetoamachinewhichshallnotincreasethechargeofproductiononhiscommodity，wouldenjoypeculiaradvantagesifhecouldcontinuetochargethesamepriceforhisgoods；buthe，aswehavealreadyseen，wouldbeobligedtolowerthepriceofhiscommodities，orcapitalwouldflowtohistradetillhisprofitshadsunktothegenerallevel。Thusthenisthepublicbenefitedbymachinery:thesemuteagentsarealwaystheproduceofmuchlesslabourthanthatwhichtheydisplace，evenwhentheyareofthesamemoneyvalue。Throughtheirinfluence，anincreaseinthepriceofprovisionswhichraiseswageswillaffectfewerpersons；itwillreach，asintheaboveinstance，eighty-fivemeninsteadofahundred，andthesavingwhichistheconsequence，showsitselfinthereducedpriceofthecommoditymanufactured。
Neithermachines，northecommoditiesmadebythem，riseinrealvalue，butallcommoditiesmadebymachinesfall，andfallinproportiontotheirdurability。
Itwillbeseen，then，thatintheearlystagesofsociety，beforemuchmachineryordurablecapitalisused，thecommoditiesproducedbyequalcapitalswillbenearlyofequalvalue，andwillriseorfallonlyrelativelytoeachotheronaccountofmoreorlesslabourbeingrequiredfortheirproduction；butaftertheintroductionoftheseexpensiveanddurableinstruments，thecommoditiesproducedbytheemploymentofequalcapitalswillbeofveryunequalvalue；andalthoughtheywillstillbeliabletoriseorfallrelativelytoeachother，asmoreorlesslabourbecomesnecessarytotheirproduction，theywillbesubjecttoanother，thoughaminorvariation，also，fromtheriseorfallofwagesandprofits。
Sincegoodswhichsellfor=A35，000maybetheproduceofacapitalequalinamounttothatfromwhichareproducedothergoodswhichsellfor=A310，000，theprofitsontheirmanufacturewillbethesame；butthoseprofitswouldbeunequal，ifthepricesofthegoodsdidnotvarywithariseorfallintherateofprofits。
Itappears，too，thatinproportiontothedurabilityofcapitalemployedinanykindofproduction，therelativepricesofthosecommoditiesonwhichsuchdurablecapitalisemployed，willvaryinverselyaswages；theywill。fallaswagesrise，andriseaswagesfall；
and，onthecontrary，thosewhichareproducedchieflybylabourwithlessfixedcapital，orwithfixedcapitalofalessdurablecharacterthanthemediuminwhichpriceisestimated，willriseaswagesrise，andfallaswagesfall。
SectionVI
OnaninvariablemeasureofvalueWhencommoditiesvariedinrelativevalue，itwouldbedesirabletohavethemeansofascertainingwhichofthemfellandwhichroseinrealvalue，andthiscouldbeeffectedonlybycomparingthemoneafteranotherwithsomeinvariablestandardmeasureofvalue，whichshoulditselfbesubjecttononeofthefluctuationstowhichothercommoditiesareexposed。Ofsuchameasureitisimpossibletobepossessed，becausethereisnocommoditywhichisnotitselfexposedtothesamevariationsasthethings，thevalueofwhichistobeascertained；thatis，thereisnonewhichisnotsubjecttorequiremoreorlesslabourforitsproduction。Butifthiscauseofvariationinthevalueofamediumcouldberemoved-ifitwerepossiblethatintheproductionofourmoneyforinstance，thesamequantityoflabourshouldatalltimesberequired，stillitwouldnotbeaperfectstandardorinvariablemeasureofvalue，because，asIhavealreadyendeavouredtoexplain，itwouldbesubjecttorelativevariationsfromariseorfallofwages，onaccountofthedifferentproportionsoffixedcapitalwhichmightbenecessarytoproduceit，andtoproducethoseothercommoditieswhosealterationofvaluewewishedtoascertain。Itmightbesubjecttovariationstoo，fromthesamecause，onaccountofthedifferentdegreesofdurabilityofthefixedcapitalemployedonit，andthecommoditiestobecomparedwithit-orthetimenecessarytobringtheonetomarket，mightbelongerorshorterthanthetimenecessarytobringtheothercommoditiestomarket，thevariationsofwhichweretobedetermined；allwhichcircumstancesdisqualifyanycommoditythatcanbethoughtoffrombeingaperfectlyaccuratemeasureofvalue。
If，forexample，weweretofixongoldasastandard，itisevidentthatitisbutacommodityobtainedunderthesamecontingenciesaseveryothercommodity，andrequiringlabourandfixedcapitaltoproduceit。
Likeeveryothercommodity，improvementsinthesavingoflabourmightbeappliedtoitsproduction，andconsequentlyitmightfallinrelativevaluetootherthingsmerelyonaccountofthegreaterfacilityofproducingit。
Ifwesupposethiscauseofvariationtoberemoved，andthesamequantityoflabourtobealwaysrequiredtoobtainthesamequantityofgold，stillgoldwouldnotbeaperfectmeasureofvalue，bywhichwecouldaccuratelyascertainthevariationsinallotherthings，becauseitwouldnotbeproducedwithpreciselythesamecombinationsoffixedandcirculatingcapitalasallotherthings；norwithfixedcapitalofthesamedurability'。norwoulditrequirepreciselythesamelengthoftime，beforeitcouldbebroughttomarket。Itwouldbeaperfectmeasureofvalueforallthingsproducedunderthesamecircumstancespreciselyasitself，butfornoothers。If，forexample，itwereproducedunderthesamecircumstancesaswehavesupposednecessarytoproduceclothandcottongoods，itwouldbeaperfectmeasureofvalueforthosethings，butnotsoforcorn，forcoals，andothercommoditiesproducedwitheitheralessoragreaterproportionoffixedcapital，because，aswehaveshown，everyalterationinthepermanentrateofprofitswouldhavesomeeffectontherelativevalueofallthesegoods，independentlyofanyalterationinthequantityoflabouremployedontheirproduction。Ifgoldwereproducedunderthesamecircumstancesascorn，eveniftheyneverchanged，itwouldnot，forthesamereasons，beatalltimesaperfectmeasureofthevalueofclothandcottongoods。Neithergoldthen，noranyothercommodity，caneverbeaperfectmeasureofvalueforallthings；butIhavealreadyremarked，thattheeffectontherelativepricesofthings，fromavariationinprofits，iscomparativelyslight；thatbyfarthemostimportanteffectsareproducedbythevaryingquantitiesoflabourrequiredforproduction；andtherefore，ifwesupposethisimportantcauseofvariationremovedfromtheproductionofgold，weshallprobablypossessasnearanapproximationtoastandardmeasureofvalueascanbetheoreticallyconceived。Maynotgoldbeconsideredasacommodityproducedwithsuchproportionsofthetwokindsofcapitalasapproachnearesttothetheaveragequantityemployedintheproductionofmostcommodities?Maynottheseproportionsbesonearlyequallydistantfromthetwoextremes，theonewherelittlefixedcapitalisused，theotherwherelittlelabourisemployed，astoformajustmeanbetweenthem?
If，then，Imaysupposemyselftobepossessedofastandardsonearlyapproachingtoaninvariableone，theadvantageis，thatIshallbeenabledtospeakofthevariationsofotherthings，withoutembarrassingmyselfoneveryoccasionwiththeconsiderationofthepossiblealterationinthevalueofthemediuminwhichpriceandvalueareestimated。
Tofacilitate，then，theobjectofthisenquiry，althoughIfullyallowthatmoneymadeofgoldissubjecttomostofthevariationsofotherthings，Ishallsupposeittobeinvariable，andthereforeallalterationsinpricetobeoccasionedbysomealterationinthevalueofthecommodityofwhichImaybespeaking。
BeforeIquitthissubject，itmaybepropertoobserve，thatAdamSmith，andallthewriterswhohavefollowedhim，have，withoutoneexceptionthatIknowof，maintainedthatariseinthepriceoflabourwouldbeuniformlyfollowedbyariseinthepriceofallcommodities。I
hopeIhavesucceededinshowing，thattherearenogroundsforsuchanopinion，andthatonlythosecommoditieswouldrisewhichhadlessfixedcapitalemployeduponthemthanthemediuminwhichpricewasestimated，andthatallthosewhichhadmore，wouldpositivelyfallinpricewhenwagesrose。Onthecontrary，ifwagesfell，thosecommoditiesonlywouldfall，whichhadalessproportionoffixedcapitalemployedonthem，thanthemediuminwhichpricewasestimated；allthosewhichhadmore，wouldpositivelyriseinprice。
Itisnecessaryformealsotoremark，thatIhavenotsaid，becauseonecommodityhassomuchlabourbestoweduponitaswillcost=A31，000andanothersomuchaswillcost=A32，000thatthereforeonewouldbeofthevalueof=A31，000andtheotherofthevalueof=A32，000butIhavesaidthattheirvaluewillbetoeachotherastwotoone，andthatinthoseproportionstheywillbeexchanged。Itisofnoimportancetothetruthofthisdoctrine，whetheroneofthesecommoditiessellsfor=A31，10Oandtheotherfor=A32，200，oronefor=A31，500andtheotherfor=A33，000；intothatquestionIdonotatpresentenquire；Iaffirmonly，thattheirrelativevalueswillbegovernedbytherelativequantitiesoflabourbestowedontheirproduction。(7*)
SectionVII
Differenteffectsfromthealterationinthevalueofmoney，themediuminwhichPRICEisalwaysexpressed，orfromthealterationinthevalueofthecommoditieswhichmoneypurchases。
AlthoughIshall，asIhavealreadyexplained，haveoccasiontoconsidermoneyasinvariableinvalue，forthepurposeofmoredistinctlypointingoutthecausesofrelativevariations。inthevalueofotherthings，itmaybeusefultonoticethedifferenteffectswhichwillfollowfromthepricesofgoodsbeingalteredbythecausestowhichI
havealreadyadverted，namely，thedifferentquantitiesoflabourrequiredtoproducethem，andtheirbeingalteredbyavariationinthevalueofmoneyitself。
Money，beingavariablecommodity，theriseofmoney-wageswillbefrequentlyoccasionedbyafallinthevalueofmoney。Ariseofwagesfromthiscausewill，indeed，beinvariablyaccompaniedbyariseinthepriceofcommodities；butinsuchcases，itwillbefoundthatlabourandallcommoditieshavenotvariedinregardtoeachother，andthatthevariationhasbeenconfinedtomoney。
Money，fromitsbeingacommodityobtainedfromaforeigncountry，fromitsbeingthegeneralmediumofexchangebetweenallcivilizedcountries，andfromitsbeingalsodistributedamongthosecountriesinproportionswhichareeverchangingwitheveryimprovementincommerceandmachinery，andwitheveryincreasingdifficultyofobtainingfoodandnecessariesforanincreasingpopulation，issubjecttoincessantvariations。Instatingtheprincipleswhichregulateexchangeablevalueandprice，weshouldcarefullydistinguishbetweenthosevariationswhichbelongtothecommodityitself，andthosewhichareoccasionedbyavariationinthemediuminwhichvalueisestimated，orpriceexpressed。
Ariseinwages，fromanalterationinthevalueofmoney，producesageneraleffectonprice，andforthatreasonitproducesnorealeffectwhateveronprofits。Onthecontrary，ariseofwages，fromthecircumstanceofthelabourerbeingmoreliberallyrewarded，orfromadifficultyofprocuringthenecessariesonwhichwagesareexpended，doesnot，exceptinsomeinstances，producetheeffectofraisingprice，buthasagreateffectinloweringprofits。Intheonecase，nogreaterproportionoftheannuallabourofthecountryisdevotedtothesupportofthelabourers；intheothercase，alargerportionissodevoted。
Itisaccordingtothedivisionofthewholeproduceofthelandofanyparticularfarm，betweenthethreeclassesoflandlord，capitalist，andlabourer，thatwearetojudgeoftheriseorfallof。rent，profit，andwages，andnotaccordingtothevalueatwhichthatproducemaybeestimatedinamediumwhichisconfessedlyvariable。
Itisnotbytheabsolutequantityofproduceobtainedbyeitherclass，thatwecancorrectlyjudgeoftherateofprofit，rent，andwages，butbythequantityoflabourrequiredtoobtainthatproduce。Byimprovementsinmachineryandagriculture，thewholeproducemaybedoubled；butifwages，rent，andprofitbealsodoubled，thesethreewillbearthesameproportionstooneanotherasbefore，andneithercouldbesaidtohaverelativelyvaried。Butifwagespartooknotofthewholeofthisincrease；ifinsteadofbeingdoubled，wereonlyincreasedone-half；
ifrentinsteadofbeingdoubled，wereonlyincreasedthree-fourths，andtheremainingincreasewenttoprofit，itwould，Iapprehendbecorrectformetosay，thatrentandwageshadhadrisen；forifwehadaninvariablestandardbywhichtomeasurethevalueofthisproduce，weshouldfindthatalessvaluehadfallentotheclassoflabourersandlandlords，andagreatertotheclassofcapitalists，thanhadgivenbefore。
Wemightfind，forexample，thatthoughtheabsolutequantityofcommoditieshadbeendoubled，theyweretheproduceofpreciselytheformerquantityoflabour。Ofeveryhundredhats，coats，andquartersofcornproduced，ifThelabourershadbefore……25
Thelandlords……25
Andthecapitalists……50
100:
Andif，afterthesecommoditiesweredoublethequantity，ofevery100
Thelabourershadonly……22
Thelandlords……22
Andthecapitalists……56
100:
InthatcaseIshouldsay，thatwagesandrenthadfallenandprofitsrisen；though，inconsequenceoftheabundanceofcommodities，thequantitypaidtothelabourerandlandlordwouldhaveincreasedintheproportionof25to44。Wagesaretobeestimatedbytheirrealvalue，viz。
bythequantityoflabourandcapitalemployedinproducingthem，andnotbytheirnominalvalueeitherincoats，hats，money，orcorn。UnderthecircumstancesIhavejustsupposed，commoditieswouldhavefallentohalftheirformervalue，andifmoneyhadnotvaried，tohalftheirformerpricealso。Iftheninthismedium，whichhadnotvariedinvalue，thewagesofthelabourershouldbefoundtohavefallen，itwillnotthelessbearealfall，becausetheymightfurnishhimwithagreaterquantityofcheapcommoditiesthanhisformerwages。
Thevariationinthevalueofmoney，howevergreat，makesnodifferenceintherateofprofits；forsupposethegoodsofthemanufacturertorisefrom=A31，000to=A32，000，or100percent，ifhiscapital，onwhichthevariationsofmoneyhaveasmucheffectasonthevalueofproduce，ifhismachinery，buildings，andstockintraderisealso100percent，hisrateofprofitswillbethesame，andhewillhavethesamequantity，andnomore，oftheproduceofthelabourofthecountryathiscommand。
If，withacapitalofagivenvalue，hecan，byeconomyinlabour，doublethequantityofproduce，anditfalltohalfitsformerprice，itwillbearthesameproportiontothecapitalthatproduceditwhichitdidbefore，andconsequentlyprofitswillstillbeatthesamerate。
If，atthesametimethathedoublesthequantityofproducebytheemploymentofthesamecapital，thevalueofmoneyisbyanyaccidentloweredonehalf，theproducewillsellfortwicethemoneyvaluethatitdidbefore；butthecapitalemployedtoproduceitwillalsobeoftwiceitsformermoneyvalue；andthereforeinthiscasetoo，thevalueoftheproducewillbearthesameproportiontothevalueofthecapitalasitdidbefore；andalthoughtheproducebedoubled，rent，wages，andprofitswillonlyvaryastheproportionsvary，inwhichthisdoubleproducemaybedividedamongthethreeclassesthatshareit。
返回顶部