Chapter2

OnRentItremainshowevertobeconsidered，whethertheappropriationofland，andtheconsequentcreationofrent，willoccasionanyvariationintherelativevalueofcommodities，independentlyofthequantityoflabournecessarytoproduction。Inordertounderstandthispartofthesubject，wemustenquireintothenatureofrent，andthelawsbywhichitsriseorfallisregulated。

Rentisthatportionoftheproduceoftheearth，whichispaidtothelandlordfortheuseoftheoriginalandindestructiblepowersofthesoil。

Itisoften，however，confoundedwiththeinterestandprofitofcapital，and，inpopularlanguage，thetermisappliedtowhateverisannuallypaidbyafarmertohislandlord。If，oftwoadjoiningfarmsofthesameextent，andofthesamenaturalfertility，onehadalltheconveniencesoffarmingbuildings，and，besides，wereproperlydrainedandmanured，andadvantageouslydividedbyhedges，fencesandwalls，whiletheotherhadnoneoftheseadvantages，moreremunerationwouldnaturallybepaidfortheuseofone，thanfortheuseoftheother；yetinbothcasesthisremunerationwouldbecalledrent。Butitisevident，thataportiononlyofthemoneyannuallytobepaidfortheimprovedfarm，wouldbegivenfortheoriginalandindestructiblepowersofthesoil；theotherportionwouldbepaidfortheuseofthecapitalwhichhadbeenemployedinamelioratingthequalityoftheland，andinerectingsuchbuildingsaswerenecessarytosecureandpreservetheproduce。AdamSmithsometimesspeaksofrent，inthestrictsensetowhichIamdesirousofconfiningit，butmoreofteninthepopularsense，inwhichthetermisusuallyemployed。Hetellsus，thatthedemandfortimber，anditsconsequenthighprice，inthemoresoutherncountriesofEurope，causedarenttobepaidforforestsinNorway，whichcouldbeforeaffordnorent。Isitnot，however，evident，thatthepersonwhopaidwhathethuscallsrent，paiditinconsiderationofthevaluablecommoditywhichwasthenstandingontheland，andthatheactuallyrepaidhimselfwithaprofit，bythesaleofthetimber?If，indeed，afterthetimberwasremoved，anycompensationwerepaidtothelandlordfortheuseoftheland，forthepurposeofgrowingtimberoranyotherproduce，withaviewtofuturedemand，suchcompensationmightjustlybecalledrent，becauseitwouldbepaidfortheproductivepowersoftheland；butinthecasestatedbyAdamSmith，thecompensationwaspaidforthelibertyofremovingandsellingthetimber，andnotforthelibertyofgrowingit。Hespeaksalsooftherentofcoalmines，andofstonequarries，towhichthesameobservationapplies-thatthecompensationgivenforthemineorquarry，ispaidforthevalueofthecoalorstonewhichcanberemovedfromthem，andhasnoconnectionwiththeoriginalandindestructiblepowersoftheland。Thisisadistinctionofgreatimportance，inanenquiryconcerningrentandprofits；foritisfound，thatthelawswhichregulatetheprogressofrent，arewidelydifferentfromthosewhichregulatetheprogressofprofits，andseldomoperateinthesamedirection。Inallimprovedcountries，thatwhichisannuallypaidtothelandlord，partakingofbothcharacters，rentandprofit，issometimeskeptstationarybytheeffectsofopposingcauses；atothertimesadvancesorrecedes，asoneortheotherofthesecausespreponderates。Inthefuturepagesofthiswork，then，wheneverIspeakoftherentofland，Iwishtobeunderstoodasspeakingofthatcompensation，whichispaidtotheowneroflandfortheuseofitsoriginalandindestructiblepowers。

Onthefirstsettlingofacountry，inwhichthereisanabundanceofrichandfertileland，averysmallproportionofwhichisrequiredtobecultivatedforthesupportoftheactualpopulation，orindeedcanbecultivatedwiththecapitalwhichthepopulationcancommand，therewillbenorent；fornoonewouldpayfortheuseofland，whentherewasanabundantquantitynotyetappropriated，and，therefore，atthedisposalofwhosoevermightchoosetocultivateit。

Onthecommonprinciplesofsupplyanddemand，norentcouldbepaidforsuchland，forthereasonstatedwhynothingisgivenfortheuseofairandwater，orforanyotherofthegiftsofnaturewhichexistinboundlessquantity。Withagivenquantityofmaterials，andwiththeassistanceofthepressureoftheatmosphere，andtheelasticityofsteam，enginesmayperformwork，andabridgehumanlabourtoaverygreatextent；butnochargeismadefortheuseofthesenaturalaids，becausetheyareinexhaustible，andateveryman'sdisposal。Inthesamemannerthebrewer，thedistiller，thedyer，makeincessantuseoftheairandwaterfortheproductionoftheircommodities；butasthesupplyisboundless，theybearnoprice。(8*)Ifalllandhadthesameproperties，ifitwereunlimitedinquantity，anduniforminquality，nochargecouldbemadeforitsuse，unlesswhereitpossessedpeculiaradvantagesofsituation。Itisonly，then，becauselandisnotunlimitedinquantityanduniforminquality，andbecauseintheprogressofpopulation，landofaninferiorquality，orlessadvantageouslysituated，iscalledintocultivation，thatrentiseverpaidfortheuseofit。Whenintheprogressofsociety，landoftheseconddegreeoffertilityistakenintocultivation，rentimmediatelycommencesonthatofthefirstquality，andtheamountofthatrentwilldependonthedifferenceinthequalityofthesetwoportionsofland。

Whenlandofthethirdqualityistakenintocultivation，rentimmediatelycommencesonthesecond，anditisregulatedasbefore，bythedifferenceintheirproductivepowers。Atthesametime，therentofthefirstqualitywillrise，forthatmustalwaysbeabovetherentofthesecond，bythedifferencebetweentheproducewhichtheyyieldwithagivenquantityofcapitalandlabour。Witheverystepintheprogressofpopulation，whichshallobligeacountrytohaverecoursetolandofaworsequality，toenableittoraiseitssupplyoffood，rent，onallthemorefertileland，willrise。

Thussupposeland-No。1，2，3，-toyield，withanequalemploymentofcapitalandlabour，anetproduceof100，90，and80quartersofcorn。

Inanewcountry，wherethereisanabundanceoffertilelandcomparedwiththepopulation，andwherethereforeitisonlynecessarytocultivateNo。1，thewholenetproducewillbelongtothecultivator，andwillbetheprofitsofthestockwhichheadvances。AssoonaspopulationhadsofarincreasedastomakeitnecessarytocultivateNo。2，fromwhichninetyquartersonlycanbeobtainedaftersupportingthelabourers，rentwouldcommenceonNo。1；foreithertheremustbetworatesofprofitonagriculturalcapital，ortenquarters，orthevalueoftenquartersmustbewithdrawnfromtheproduceofNo。1，forsomeotherpurpose。Whethertheproprietoroftheland，oranyotherperson，cultivatedNo。1，thesetenquarterswouldequallyconstituterent；forthecultivatorofNo。2wouldgetthesameresultwithhiscapital，whetherhecultivatedNo。1，payingtenquartersforrent，orcontinuedtocultivateNo。2，payingnorent。InthesamemanneritmightbeshownthatwhenNo。3isbroughtintocultivation，therentofNo。2mustbetenquarters，orthevalueoftenquarters，whilsttherentofNo。1wouldrisetotwentyquarters；forthecultivatorofNo。3wouldhavethesameprofitswhetherhepaidtwentyquartersfortherentofNo。1，tenquartersfortherentofNo。2，orcultivatedNo。3freeofallrent。

Itoften，and，indeed，commonlyhappens，thatbeforeNo。2，3，4，or5，ortheinferiorlandsarecultivated，capitalcanbeemployedmoreproductivelyonthoselandswhicharealreadyincultivation。Itmayperhapsbefound，thatbydoublingtheoriginalcapitalemployedonNo。

1，thoughtheproducewillnotbedoubled，willnotbeincreasedby100

quarters，itmaybeincreasedbyeighty-fivequarters，andthatthisquantityexceedswhatcouldbeobtainedbyemployingthesamecapital，onlandNo。3。

Insuchcase，capitalwillbepreferablyemployedontheoldland，andwillequallycreatearent；forrentisalwaysthedifferencebetweentheproduceobtainedbytheemploymentoftwoequalquantitiesofcapitalandlabour。If，withacapitalof=A31，000，atenantobtain100quartersofwheatfromhisland，andbytheemploymentofasecondcapitalof=A31，000，heobtainafurtherreturnofeighty-five，hislandlordwouldhavethepowerattheexpirationofhislease，ofobliginghimtopayfifteenquarters，oranequivalentvalue，foradditionalrent；fortherecannotbetworatesofprofit。Ifheissatisfiedwithadiminutionoffifteenquartersinthereturnforhissecond=A31，000，itisbecausenoemploymentmoreprofitablecanbefoundforit。Thecommonrateofprofitwouldbeinthatproportion，andiftheoriginaltenantrefused，someotherpersonwouldbefoundwillingtogiveallwhichexceededthatrateofprofittotheownerofthelandfromwhichhederivedit。

Inthiscase，aswellas。intheother，thecapitallastemployedpaysnorent。Forthegreaterproductivepowersofthefirst=A31，000，fifteenquartersispaidforrent，fortheemploymentofthesecond=A31，000norentwhateverispaid。Ifathird=A31，000beemployedonthesameland，withareturnofseventy-fivequarters，rentwillthenbepaidforthesecond=A31，000，andwillbeequaltothedifferencebetweentheproduceofthesetwo，ortenquarters；andatthesametimetherentofthefirst=A31，000willrisefromfifteentotwenty-fivequarters；whilethelast=A31，000willpaynorentwhatever。

If，then，goodlandexistedinaquantitymuchmoreabundantthantheproductionoffoodforanincreasingpopulationrequired，orifcapitalcouldbeindefinitelyemployedwithoutadiminishedreturnontheoldland，therecouldbenoriseofrent；forrentinvariablyproceedsfromtheemploymentofanadditionalquantityoflabourwithaproportionallylessreturn。

Themostfertile，andmostfavorablysituated，landwillbefirstcultivated，andtheexchangeablevalueofitsproducewillbeadjustedinthesamemannerastheexchangeablevalueofallothercommodities，bythetotalquantityoflabournecessaryinvariousforms，fromfirsttolast，toproduceit，andbringittomarket。Whenlandofaninferiorqualityistakenintocultivation，theexchangeablevalueofrawproducewillrise，becausemorelabourisrequiredtoproduceit。

Theexchangeablevalueofallcommodities，whethertheybemanufactured，ortheproduceofthemines，ortheproduceofland，isalwaysregulated，notbythelessquantityoflabourthatwillsufficefortheirproductionundercircumstanceshighlyfavorable，andexclusivelyenjoyedbythosewhohavepeculiarfacilitiesofproduction；butbythegreaterquantityoflabournecessarilybestowedontheirproductionbythosewhohavenosuchfacilities；bythosewhocontinuetoproducethemunderthemostunfavorablecircumstances；meaning-bythemostunfavorablecircumstances，themostunfavorableunderwhichthequantityofproducerequired，rendersitnecessarytocarryontheproduction。

Thus，inacharitableinstitution，wherethepooraresettoworkwiththefundsofbenefactors，thegeneralpricesofthecommodities，whicharetheproduceofsuchwork，willnotbegovernedbythepeculiarfacilitiesaffordedtotheseworkmen，butbythecommon，usual，andnaturaldifficulties，whicheveryothermanufacturerwillhavetoencounter。Themanufacturerenjoyingnoneofthesefacilitiesmightindeedbedrivenaltogetherfromthemarket，ifthesupplyaffordedbythesefavoredworkmenwereequaltoallthewantsofthecommunity；

butifhecontinuedthetrade，itwouldbeonlyonconditionthatheshouldderivefromittheusualandgeneralrateofprofitsonstock；andthatcouldonlyhappenwhenhiscommoditysoldforapriceproportionedtothequantityoflabourbestowedonitsproduction。(9*)

Itistrue，thatonthebestland，thesameproducewouldstillbeobtainedwiththesamelabourasbefore，butitsvaluewouldbeenhancedinconsequenceofthediminishedreturnsobtainedbythosewhoemployedfreshlabourandstockonthelessfertileland。

Notwithstanding，then，thattheadvantagesoffertileoverinferiorlandsareinnocaselost，butonlytransferredfromthecultivator，orconsumer，tothelandlord，yet，sincemorelabourisrequiredontheinferiorlands，andsinceitisfromsuchlandonlythatweareenabledtofurnishourselveswiththeadditionalsupplyofrawproduce，thecomparativevalueofthatproducewillcontinuepermanentlyaboveitsformerlevel，andmakeitexchangeformorehats，cloth，shoes，&c。&c。

intheproductionofwhichnosuchadditionalquantityoflabourisrequired。

Thereasonthen，whyrawproducerisesincomparativevalue，isbecausemorelabourisemployedintheproductionofthelastportionobtained，andnotbecausearentispaidtothelandlord。Thevalueofcornisregulatedbythequantityoflabourbestowedonitsproductiononthatqualityofland，orwiththatportionofcapital，whichpaysnorent。Cornisnothighbecausearentispaid，butarentispaidbecausecornishigh；andithasbeenjustlyobserved，thatnoreductionwouldtakeplaceinthepriceofcorn，althoughlandlordsshouldforegothewholeoftheirrent。Suchameasurewouldonlyenablesomefarmerstolivelikegentlemen，butwouldnotdiminishthequantityoflabournecessarytoraiserawproduceontheleastproductivelandincultivation。

Nothingismorecommonthantohearoftheadvantageswhichthelandpossessesovereveryothersourceofusefulproduce，onaccountofthesurpluswhichityieldsintheformofrent。Yetwhenlandismostabundant，whenmostproductive，andmostfertile，ityieldsnorent；anditisonlywhenitspowersdecay，andlessisyieldedinreturnforlabour，thatashareoftheoriginalproduceofthemorefertileportionsissetapartforrent。Itissingularthatthisqualityintheland，whichshouldhavebeennoticedasanimperfection，comparedwiththenaturalagentsbywhichmanufacturersareassisted，shouldhavebeenpointedoutasconstitutingitspeculiarpre-eminence。Ifair，water，theelasticityofsteam，andthepressureoftheatmosphere，wereofvariousqualities；iftheycouldbeappropriated，andeachqualityexistedonlyinmoderateabundance，they，aswellastheland，wouldaffordarent，asthesuccessivequalitieswerebroughtintouse。Witheveryworsequalityemployed，thevalueofthecommoditiesinthemanufactureofwhichtheywereused，wouldrise，becauseequalquantitiesoflabourwouldbelessproductive。Manwoulddomorebythesweatofhisbrow，andnatureperformless；andthelandwouldbenolongerpre-eminentforitslimitedpowers。

Ifthesurplusproducewhichlandaffordsintheformofrentbeanadvantage，itisdesirablethat，everyyear，themachinerynewlyconstructedshouldbelessefficientthantheold，asthatwouldundoubtedlygiveagreaterexchangeablevaluetothegoodsmanufactured，notonlybythatmachinerybutbyalltheothermachineryinthekingdom；andarentwouldbepaidtoallthosewhopossessedthemostproductivemachinery。(10*)

Theriseofrentisalwaystheeffectoftheincreasingwealthofthecountry，andofthedifficultyofprovidingfoodforitsaugmentedpopulation。Itisasymptom，butitisneveracauseofwealth；forwealthoftenincreasesmostrapidlywhilerentiseitherstationary，orevenfalling。Rentincreasesmostrapidly，asthedisposablelanddecreasesinitsproductivepowers。Wealthincreasesmostrapidlyinthosecountrieswherethedisposablelandismostfertile，whereimportationisleastrestricted，andwherethroughagriculturalimprovements，productionscanbemultipliedwithoutanyincreaseintheproportionalquantityoflabour，andwhereconsequentlytheprogressofrentisslow。

Ifthehighpriceofcornweretheeffect，andnotthecauseofrent，pricewouldbeproportionallyinfluencedasrentswerehighorlow，andrentwouldbeacomponentpartofprice。Butthatcornwhichisproducedbythegreatestquantityoflabouristheregulatorofthepriceofcorn；andrentdoesnotandcannotenterintheleastdegreeasacomponentpartofitsprice。(11*)AdamSmith，therefore，cannotbecorrectinsupposingthattheoriginalrulewhichregulatedtheexchangeablevalueofcommodities，namely，thecomparativequantityoflabourbywhichtheywereproduced，canbeatallalteredbytheappropriationoflandandthepaymentofrent。Rawmaterialentersintothecompositionofmostcommodities，butthevalueofthatrawmaterial，aswellascorn，isregulatedbytheproductivenessoftheportionofcapitallastemployedontheland，andpayingnorent；andthereforerentisnotacomponentpartofthepriceofcommodities。

Wehavebeenhithertoconsideringtheeffectsofthenaturalprogressofwealthandpopulationonrent，inacountryinwhichthelandisofvariouslyproductivepowers；andwehaveseen，thatwitheveryportionofadditionalcapitalwhichitbecomesnecessarytoemployonthelandwithalessproductivereturn，rentwouldrise。Itfollowsfromthesameprinciples，thatanycircumstancesinthesocietywhichshouldmakeitunnecessarytoemploythesameamountofcapitalontheland，andwhichshouldthereforemaketheportionlastemployedmoreproductive，wouldlowerrent。Anygreatreductioninthecapitalofacountry，whichshouldmateriallydiminishthefundsdestinedforthemaintenanceoflabour，wouldnaturallyhavethiseffect。Populationregulatesitselfbythefundswhicharetoemployit，andthereforealwaysincreasesordiminisheswiththeincreaseordiminutionofcapital。Everyreductionofcapitalisthereforenecessarilyfollowedbyalesseffectivedemandforcorn，byafallofprice，andbydiminishedcultivation。Inthereverseordertothatinwhichtheaccumulationofcapitalraisesrent，willthediminutionofitlowerrent。Landofalessunproductivequalitywillbeinsuccessionrelinquished，theexchangeablevalueofproducewillfall，andlandofasuperiorqualitywillbethelandlastcultivated，andthatwhichwillthenpaynorent。

Thesameeffectsmayhoweverbeproduced，whenthewealthandpopulationofacountryareincreased，ifthatincreaseisaccompaniedbysuchmarkedimprovementsinagriculture，asshallhavethesameeffectofdiminishingthenecessityofcultivatingthepoorerlands，orofexpendingthesameamountofcapitalonthecultivationofthemorefertileportions。

Ifamillionofquartersofcornbenecessaryforthesupportofagivenpopulation，anditberaisedonlandofthequalitiesofNo。1，2，3；andifanimprovementbeafterwardsdiscoveredbywhichitcanberaisedonNo。1and2，withoutemployingNo。3，itisevidentthattheimmediateeffectmustbeafallofrent；forNo。2，insteadofNo。3，willthenbecultivatedwithoutpayinganyrent；andtherentofNo。1，insteadofbeingthedifferencebetweentheproduceofNo。3andNo。1，willbethedifferenceonlybetweenNo。2and1。Withthesamepopulation，andnomore，therecanbenodemandforanyadditionalquantityofcorn；thecapitalandlabouremployedonNo。3willbedevotedtotheproductionofothercommoditiesdesirabletothecommunity，andcanhavenoeffectinraisingrent，unlesstherawmaterialfromwhichtheyaremadecannotbeobtainedwithoutemployingcapitallessadvantageouslyontheland，inwhichcaseNo。3mustagainbecultivated。

Itisundoubtedlytrue，thatthefallintherelativepriceofrawproduce，inconsequenceoftheimprovementinagriculture，orratherinconsequenceoflesslabourbeingbestowedonitsproduction，wouldnaturallyleadtoincreasedaccumulation；fortheprofitsofstockwouldbegreatlyaugmented。Thisaccumulationwouldleadtoanincreaseddemandforlabour，tohigherwages，toanincreasedpopulation，toafurtherdemandforrawproduce，andtoanincreasedcultivation。Itisonly，however，aftertheincreaseinthepopulation，thatrentwouldbeashighasbefore；thatistosay，afterNo。3wastakenintocultivation。A

considerableperiodwouldhaveelapsed，attendedwithapositivediminutionofrent。

Butimprovementsinagricultureareoftwokinds:thosewhichincreasetheproductivepowersoftheland，andthosewhichenableus，byimprovingourmachinery，toobtainitsproducewithlesslabour。

Theybothleadtoafallinthepriceofrawproduce；theybothaffectrent，buttheydonotaffectitequally。Iftheydidnotoccasionafallinthepriceofrawproduce，theywouldnotbeimprovements；foritistheessentialqualityofanimprovementtodiminishthequantityoflabourbeforerequiredtoproduceacommodity；andthisdiminutioncannottakeplacewithoutafallofitspriceorrelativevalue。

Theimprovementswhichincreasetheproductivepowersoftheland，aresuchasthemoreskilfulrotationofcrops，orthebetterchoiceofmanure。Theseimprovementsabsolutelyenableustoobtainthesameproducefromasmallerquantityofland。If，bytheintroductionofacourseofturn。ps，Icanfeedmysheepbesidesraisingmycorn，thelandonwhichthesheepwerebeforefedbecomesunnecessary，andthesamequantityofrawproduceisraisedbytheemploymentofalessquantityofland。IfIdiscoveramanurewhichwillenablemetomakeapieceoflandproduce20percentmorecorn，Imaywithdrawatleastaportionofmycapitalfromthemostunproductivepartofmyfarm。But，asIbeforeobserved，itisnotnecessarythatlandshouldbethrownoutofcultivation，inordertoreducerent:toproducethiseffect，itissufficientthatsuccessiveportionsofcapitalareemployedonthesamelandwithdifferentresults，andthattheportionwhichgivestheleastresultshouldbewithdrawn。If，bytheintroductionoftheturniphusbandry，orbytheuseofamoreinvigoratingmanure，Icanobtainthesameproducewithlesscapital，andwithoutdisturbingthedifferencebetweentheproductivepowersofthesuccessiveportionsofcapital，Ishalllowerrent；foradifferentandmoreproductiveportionwillbethatwhichwillformthestandardfromwhicheveryotherwillbereckoned。If，forexample，thesuccessiveportionsofcapitalyielded100，90，80，70；

whilstIemployedthesefourportions，myrentwouldbe60，orthedifferencebetween70and100=3D30

70and90=3D20

70and80=3D10

60

whilsttheproducewouldbe340

100

90

80

70

340

andwhileIemployedtheseportions，therentwouldremainthesame，althoughtheproduceofeachshouldhaveanequalaugmentation。If，insteadof100，90，80，70，theproduceshouldbeincreasedto125，115，105，95，therentwouldstillbe60，orthedifferencebetween95and125=3D30

95and115=3D20

95and105=3D10

60

whilsttheproducewouldbeincreasedto440

125

115

105

95

440

Butwithsuchanincreaseofproduce，withoutanincreaseofdemand，(12*)therecouldbenomotiveforemployingsomuchcapitalontheland；oneportionwouldbewithdrawn，andconsequentlythelastportionofcapitalwouldyield105insteadof95，andrentwouldfallto30，orthedifferencebetween105adn125=3D20

105and115=3D10

30

whilsttheproducewillbestilladequatetothewantsofthepopulation，foritwouldbe345quarters，or125

115

105

345

thedemandbeingonlyfor340quarters-Butthereareimprovementswhichmaylowertherelativevalueofproducewithoutloweringthecornrent，thoughtheywilllowerthemoneyrentofland。Suchimprovementsdonotincreasetheproductivepowersoftheland；buttheyenableustoobtainitsproducewithlesslabour。Theyareratherdirectedtotheformationofthecapitalappliedtotheland，thantothecultivationofthelanditself。Improvementsinagriculturalimplements，suchastheploughandthethrashingmachine，economyintheuseofhorsesemployedinhusbandry，andabetterknowledgeoftheveterinaryart，areofthisnature。Lesscapital，whichisthesamethingaslesslabour，willbeemployedontheland；buttoobtainthesameproduce，lesslandcannotbecultivated。Whetherimprovementsofthiskind，however，affectcornrent，mustdependonthequestion，whetherthedifferencebetweentheproduceobtainedbytheemploymentofdifferentportionsofcapitalbeincreased，stationary，ordiminished。Iffourportionsofcapital，50，60，70，80，beemployedontheland，givingeachthesameresults，andanyimprovementintheformationofsuchcapitalshouldenablemetowithdraw5fromeach，sothattheyshouldbe45，55，65，and75，noalterationwouldtakeplaceinthecornrent；butiftheimprovementsweresuchastoenablemetomakethewholesavingonthatportionofcapital，whichisleastproductivelyemployed，cornrentwouldimmediatelyfall，becausethedifferencebetweenthecapitalmostproductive，andthecapitalleastproductive，wouldbediminished；anditisthisdifferencewhichconstitutesrent。

Withoutmultiplyinginstances，Ihopeenoughhasbeensaidtoshow，thatwhateverdiminishestheinequalityintheproduceobtainedfromsuccessiveportionsofcapitalemployedonthesameoronnewland，tendstolowerrent；andthatwhateverincreasesthatinequality，necessarilyproducesanoppositeeffect，andtendstoraiseit。

Inspeakingoftherentofthelandlord，wehaveratherconsidereditastheproportionoftheproduce，obtainedwithagivencapitalonanygivenfarm，withoutanyreferencetoitsexchangeablevalue；butsincethesamecause，thedifficultyofproduction，raisestheexchangeablevalueofrawproduce，andraisesalsotheproportionofrawproducepaidtothelandlordforrent，itisobviousthatthelandlordisdoublybenefitedbydifficultyofproduction。First，heobtainsagreatershare，andsecondlythecommodityinwhichheispaidisofgreatervalue。(13*)

Chapter3

OntheRentofMinesThemetals，likeotherthings，areobtainedbylabour。Nature，indeed，producesthem；butitisthelabourofmanwhichextractsthemfromthebowelsoftheearth，andpreparesthemforourservice。

Mines，aswellasland，generallypayarenttotheirowner；andthisrent，aswellastherentofland，istheeffect，andneverthecauseofthehighvalueoftheirproduce。

Iftherewereabundanceofequallyfertilemines，whichanyonemightappropriate，theycouldyieldnorent；thevalueoftheirproducewoulddependonthequantityoflabournecessarytoextractthemetalfromthemineandbringittomarket。

Butthereareminesofvariousqualities，affordingverydifferentresults，withequalquantitiesoflabour。Themetalproducedfromthepoorestminethatisworked，mustatleasthaveanexchangeablevalue，notonlysufficienttoprocurealltheclothes，food，andothernecessariesconsumedbythoseemployedinworkingit，andbringingtheproducetomarket，butalsotoaffordthecommonandordinaryprofitstohimwhoadvancesthestocknecessarytocarryontheundertaking。Thereturnforcapitalfromthepoorestminepayingnorent，wouldregulatetherentofalltheothermoreproductivemines。Thismineissupposedtoyieldtheusualprofitsofstock。Allthattheotherminesproducemorethanthis，willnecessarilybepaidtotheownersforrent。Sincethisprincipleispreciselythesameasthatwhichwehavealreadylaiddownrespectingland，itwillnotbenecessaryfurthertoenlargeonit。

Itwillbesufficienttoremark，thatthesamegeneralrulewhichregulatesthevalueofrawproduceandmanufacturedcommodities，isapplicablealsotothemetals；theirvaluedependingnotontherateofprofits，norontherateofwages，norontherentpaidformines，butonthetotalquantityoflabournecessarytoobtainthemetal，andtobringittomarket。

Likeeveryothercommodity，thevalueofthemetalsissubjecttovariation。Improvementsmaybemadeintheimplementsandmachineryusedinmining，whichmayconsiderablyabridgelabour；

newandmoreproductiveminesmaybediscovered，inwhich，withthesamelabour，moremetalmaybeobtained；orthefacilitiesofbringingittomarketmaybeincreased。Ineitherofthesecasesthemetalswouldfallinvalue，andwouldthereforeexchangeforalessquantityofotherthings。Ontheotherhand，fromtheincreasingdifficultyofobtainingthemetal，occasionedbythegreaterdepthatwhichtheminemustbeworked，andtheaccumulationofwater，oranyothercontingency，itsvaluecomparedwiththatofotherthings，mightbeconsiderablyincreased。

Ithasthereforebeenjustlyobserved，thathoweverhonestlythecoinofacountrymayconformtoitsstandard，moneymadeofgoldandsilverisstillliabletofluctuationsinvalue，notonlytoaccidentalandtemporary，buttopermanentandnaturalvariations，inthesamemannerasothercommodities。

BythediscoveryofAmericaandtherichminesinwhichitabounds，averygreateffectwasproducedonthenaturalpriceofthepreciousmetals。Thiseffectisbymanysupposednotyettohaveterminated。Itisprobable，however，thatalltheeffectsonthevalueofthemetals，resultingfromthediscoveryofAmerica，havelongceased；andifanyfallhasoflateyearstakenplaceintheirvalue，itistobeattributedtoimprovementsinthemodeofworkingthemines。

Fromwhatevercauseitmayhaveproceeded，theeffecthasbeensoslowandgradual，thatlittlepracticalinconveniencehasbeenfeltfromgoldandsilverbeingthegeneralmediuminwhichthevalueofallotherthingsisestimated。Thoughundoubtedlyavariablemeasureofvalue，thereisprobablynocommoditysubjecttofewervariations。Thisandtheotheradvantageswhichthesemetalspossess，suchastheirhardness，theirmalleability，theirdivisibility，andmanymore，havejustlysecuredthepreferenceeverywheregiventothem，asastandardforthemoneyofcivilizedcountries。

Ifequalquantitiesoflabour，withequalquantitiesoffixedcapital，couldatalltimesobtain，fromthatminewhichpaidnorent，equalquantitiesofgold，goldwouldbeasnearlyaninvariablemeasureofvalue，aswecouldinthenatureofthingspossess。Thequantityindeedwouldenlargewiththedemand，butitsvaluewouldbeinvariable，anditwouldbeeminentlywellcalculatedtomeasurethevaryingvalueofallotherthings。Ihavealreadyinaformerpartofthisworkconsideredgoldasendowedwiththisuniformity，andinthefollowingchapterI

shallcontinuethesupposition。Inspeakingthereforeofvaryingprice，thevariationwillbealwaysconsideredasbeinginthecommodity，andneverinthemediuminwhichitisestimated。

Chapter4

OnNaturalandMarketPriceInmakinglabourthefoundationofthevalueofcommodities，andthecomparativequantityoflabourwhichisnecessarytotheirproduction，therulewhichdeterminestherespectivequantitiesofgoodswhichshallbegiveninexchangeforeachother，wemustnotbesupposedtodenytheaccidentalandtemporarydeviationsoftheactualormarketpriceofcommoditiesfromthis，theirprimaryandnaturalprice。

Intheordinarycourseofevents，thereisnocommoditywhichcontinuesforanylengthoftimetobesuppliedpreciselyinthatdegreeofabundance，whichthewantsandwishesofmankindrequire，andthereforethereisnonewhichisnotsubjecttoaccidentalandtemporaryvariationsofprice。

Itisonlyinconsequenceofsuchvariations，thatcapitalisapportionedprecisely，intherequisiteabundanceandnomore，totheproductionofthedifferentcommoditieswhichhappentobeindemand。

Withtheriseorfallofprice，profitsareelevatedabove，ordepressedbelowtheirgenerallevel，andcapitaliseitherencouragedtoenterinto，oriswarnedtodepartfromtheparticularemploymentinwhichthevariationhastakenplace。

Whilsteverymanisfreetoemployhiscapitalwherehepleases，hewillnaturallyseekforitthatemploymentwhichismostadvantageous；

hewillnaturallybedissatisfiedwithaprofitof10percent，ifbyremovinghiscapitalhecanobtainaprofitof15percent。Thisrestlessdesireonthepartofalltheemployersofstock，toquitalessprofitableforamoreadvantageousbusiness，hasastrongtendencytoequalizetherateofprofitsofall，ortofixtheminsuchproportions，asmayintheestimationoftheparties，compensateforanyadvantagewhichonemayhave，ormayappeartohaveovertheother。Itisperhapsverydifficulttotracethestepsbywhichthischangeiseffected:itisprobablyeffected，byamanufacturernotabsolutelychanginghisemployment，butonlylesseningthequantityofcapitalhehasinthatemployment。Inallrichcountries，thereisanumberofmenformingwhatiscalledthemoniedclass；thesemenareengagedinnotrade，butliveontheinterestoftheirmoney，whichisemployedindiscountingbills，orinloanstothemoreindustriouspartofthecommunity。Thebankerstooemployalargecapitalonthesameobjects。Thecapitalsoemployedformsacirculatingcapitalofalargeamount，andisemployed，inlargerorsmallerproportions，byallthedifferenttradesofacountry。Thereisperhapsnomanufacturer，howeverrich，wholimitshisbusinesstotheextentthathisownfundsalonewillallow:hehasalwayssomeportionofthisfloatingcapital，increasingordiminishingaccordingtotheactivityofthedemandforhiscommodities。Whenthedemandforsilksincreases，andthatforclothdiminishes，theclothierdoesnotremovewithhiscapitaltothesilktrade，buthedismissessomeofhisworkmen，hediscontinueshisdemandfortheloanfrombankersandmoniedmen；

whilethecaseofthesilkmanufactureristhereverse:hewishestoemploymoreworkmen，andthushismotiveforborrowingisincreased:

heborrowsmore，andthuscapitalistransferredfromoneemploymenttoanother，withoutthenecessityofamanufacturerdiscontinuinghisusualoccupation。Whenwelooktothemarketsofalargetown，andobservehowregularlytheyaresuppliedbothwithhomeandforeigncommodities，inthequantityinwhichtheyarerequired，underallthecircumstancesofvaryingdemand，arisingfromthecapriceoftaste，orachangeintheamountofpopulation，withoutoftenproducingeithertheeffectsofaglutfromatooabundantsupply，oranenormouslyhighpricefromthesupplybeingunequaltothedemand，wemustconfessthattheprinciplewhichapportionscapitaltoeachtradeinthepreciseamountthatitisrequired，ismoreactivethanisgenerallysupposed。

Acapitalist，inseekingprofitableemploymentforhisfunds，willnaturallytakeintoconsiderationalltheadvantageswhichoneoccupationpossessesoveranother。Hemaythereforebewillingtoforegoapartofhismoneyprofit，inconsiderationofthesecurity，cleanliness，ease，oranyotherrealorfanciedadvantagewhichoneemploymentmaypossessoveranother。

Iffromaconsiderationofthesecircumstances，theprofitsofstockshouldbesoadjusted，thatinonetradetheywere20，inanother25，andinanother30percent，theywouldprobablycontinuepermanentlywiththatrelativedifference，andwiththatdifferenceonly；forifanycauseshouldelevatetheprofitsofoneofthesetrades10percenteithertheseprofitswouldbetemporaryandwouldsoonagainfallbacktotheirusualstation，ortheprofitsoftheotherswouldbeelevatedinthesameproportion。

Thepresenttimeappearstobeoneoftheexceptionstothejustnessofthisremark。TheterminationofthewarhassoderangedthedivisionwhichbeforeexistedofemploymentsinEurope，thateverycapitalisthasnotyetfoundhisplaceinthenewdivisionwhichhasnowbecomenecessary。

Letussupposethatallcommoditiesareattheirnaturalprice，andconsequentlythattheprofitsofcapitalinallemploymentsareexactlyatthesamerate，ordifferonlysomuchas，intheestimationoftheparties，isequivalenttoanyrealorfanciedadvantagewhichtheypossessorforego。Supposenowthatachangeoffashionshouldincreasethedemandforsilks，andlessenthatforwoollens；theirnaturalprice，thequantityoflabournecessarytotheirproduction，wouldcontinueunaltered，butthemarketpriceofsilkswouldrise，andthatofwoollenswouldfall；andconsequentlytheprofitsofthesilkmanufacturerwouldbeabove，whilstthoseofthewoollenmanufacturerwouldbebelow，thegeneralandadjustedrateofprofits。Notonlytheprofits，butthewagesoftheworkmen，wouldbeaffectedintheseemployments。Thisincreaseddemandforsilkswouldhoweversoonbesupplied，bythetransferenceofcapitalandlabourfromthewoollentothesilkmanufacture；whenthemarketpricesofsilksandwoollenswouldagainapproachtheirnaturalprices，andthentheusualprofitswouldbeobtainedbytherespectivemanufacturersofthosecommodities。

Itisthenthedesire，whicheverycapitalisthas，ofdivertinghisfundsfromalesstoamoreprofitableemployment，thatpreventsthemarketpriceofcommoditiesfromcontinuingforanylengthoftimeeithermuchabove，ormuchbelowtheirnaturalprice。Itisthiscompetitionwhichsoadjuststheexchangeablevalueofcommodities，thatafterpayingthewagesforthelabournecessarytotheirproduction，andallotherexpensesrequiredtoputthecapitalemployedinitsoriginalstateofefficiency，theremainingvalueoroverpluswillineachtradebeinproportiontothevalueofthecapitalemployed。

Inthe7thchap。oftheWealthofNations，allthatconcernsthisquestionismostablytreated。Havingfullyacknowledgedthetemporaryeffectswhich，inparticularemploymentsofcapital，maybeproducedonthepricesofcommodities，aswellasonthewagesoflabour，andtheprofitsofstock，byaccidentalcauses，withoutinfluencingthegeneralpriceofcommodities，wages，orprofits，sincetheseeffectsareequallyoperativeinallstagesofsociety，wewillleavethementirelyoutofourconsideration，whilstwearetreatingofthelawswhichregulatenaturalprices，naturalwagesandnaturalprofits，effectstotallyindependentoftheseaccidentalcauses。Inspeakingthenoftheexchangeablevalueofcommodities，orthepowerofpurchasingpossessedbyanyonecommodity，Imeanalwaysthatpowerwhichitwouldpossess，ifnotdisturbedbyanytemporaryoraccidentalcause，andwhichisitsnaturalprice。

Chapter5

OfWagesLabour，likeallotherthingswhicharepurchasedandsold，andwhichmaybeincreasedordiminishedinquantity，hasitsnaturalanditsmarketprice。Thenaturalpriceoflabouristhatpricewhichisnecessarytoenablethelabourers，onewithanother，tosubsistandtoperpetuatetheirrace，withouteitherincreaseordiminution。

Thepowerofthelabourertosupporthimself，andthefamilywhichmaybenecessarytokeepupthenumberoflabourers，doesnotdependonthequantityofmoneywhichhemayreceiveforwages，butonthequantityoffood，necessaries，andconveniencesbecomeessentialtohimfromhabit，whichthatmoneywillpurchase。Thenaturalpriceoflabour，therefore，dependsonthepriceofthefood，necessaries，andconveniencesrequiredforthesupportofthelabourerandhisfamily。

Withariseinthepriceoffoodandnecessaries，thenaturalpriceoflabourwillrise；withthefallintheirprice，thenaturalpriceoflabourwillfall。

Withtheprogressofsocietythenaturalpriceoflabourhasalwaysatendencytorise，becauseoneoftheprincipalcommoditiesbywhichitsnaturalpriceisregulated，hasatendencytobecomedearer，fromthegreaterdifficultyofproducingit。As，however，theimprovementsinagriculture，thediscoveryofnewmarkets，whenceprovisionsmaybeimported，mayforatimecounteractthetendencytoariseinthepriceofnecessaries，andmayevenoccasiontheirnaturalpricetofall，sowillthesamecausesproducethecorrespondenteffectsonthenaturalpriceoflabour。

Thenaturalpriceofallcommodities，exceptingrawproduceandlabour，hasatendencytofall，intheprogressofwealthandpopulation；

forthough，ononehand，theyareenhancedinrealvalue，fromtheriseinthenaturalpriceoftherawmaterialofwhichtheyaremade，thisismorethancounterbalancedbytheimprovementsinmachinery，bythebetterdivisionanddistributionoflabour，andbytheincreasingskill，bothinscienceandart，oftheproducers。

Themarketpriceoflabouristhepricewhichisreallypaidforit，fromthenaturaloperationoftheproportionofthesupplytothedemand；

labourisdearwhenitisscarce，andcheapwhenitisplentiful。Howevermuchthemarketpriceoflabourmaydeviatefromitsnaturalprice，ithas，likecommodities，atendencytoconformtoit。

Itiswhenthemarketpriceoflabourexceedsitsnaturalprice，thattheconditionofthelabourerisflourishingandhappy，thathehasitinhispowertocommandagreaterproportionofthenecessariesandenjoymentsoflife，andthereforetorearahealthyandnumerousfamily。

When，however，bytheencouragementwhichhighwagesgivetotheincreaseofpopulation，thenumberoflabourersisincreased，wagesagainfalltotheirnaturalprice，andindeedfromare-actionsometimesfallbelowit。

Whenthemarketpriceoflabourisbelowitsnaturalprice，theconditionofthelabourersismostwretched:thenpovertydeprivesthemofthosecomfortswhichcustomrendersabsolutenecessaries。Itisonlyaftertheirprivationshavereducedtheirnumber，orthedemandforlabourhasincreased，thatthemarketpriceoflabourwillrisetoitsnaturalprice，andthatthelabourerwillhavethemoderatecomfortswhichthenaturalrateofwageswillafford。

Notwithstandingthetendencyofwagestoconformtotheirnaturalrate，theirmarketratemay，inanimprovingsociety，foranindefiniteperiod，beconstantlyaboveit；fornosoonermaytheimpulse，whichanincreasedcapitalgivestoanewdemandforlabourbeobeyed，thananotherincreaseofcapitalmayproducethesameeffect；andthus，iftheincreaseofcapitalbegradualandconstant，thedemandforlabourmaygiveacontinuedstimulustoanincreaseofpeople。

Capitalisthatpartofthewealthofacountrywhichisemployedinproduction，andconsistsoffood，clothing，tools，rawmaterials，machinery，&c。necessarytogiveeffecttolabour。

Capitalmayincreaseinquantityatthesametimethatitsvaluerises。

Anadditionmaybemadetothefoodandclothingofacountry，atthesametimethatmorelabourmayberequiredtoproducetheadditionalquantitythanbefore；inthatcasenotonlythequantity，butthevalueofcapitalwillrise。

Orcapitalmayincreasewithoutitsvalueincreasing，andevenwhileitsvalueisactuallydiminishing；notonlymayanadditionbemadetothefoodandclothingofacountry，buttheadditionmaybemadebytheaidofmachinery，withoutanyincrease，andevenwithanabsolutediminutionintheproportionalquantityoflabourrequiredtoproducethem。Thequantityofcapitalmayincrease，whileneitherthewholetogether，noranypartofitsingly，willhaveagreatervaluethanbefore，butmayactuallyhavealess。

Inthefirstcase，thenaturalpriceoflabour，whichalwaysdependsonthepriceoffood，clothing，andothernecessaries，willrise；inthesecond，itwillremainstationary，orfall；butinbothcasesthemarketrateofwageswillrise，forinproportiontotheincreaseofcapitalwillbetheincreaseinthedemandforlabour；inproportiontotheworktobedonewillbethedemandforthosewhoaretodoit。

Inbothcasestoothemarketpriceoflabourwillriseaboveitsnaturalprice；andinbothcasesitwillhaveatendencytoconformtoitsnaturalprice，butinthefirstcasethisagreementwillbemostspeedilyeffected。

Thesituationofthelabourerwillbeimproved，butnotmuchimproved；

fortheincreasedpriceoffoodandnecessarieswillabsorbalargeportionofhisincreasedwages；consequentlyasmallsupplyoflabour，oratriflingincreaseinthepopulation，willsoonreducethemarketpricetothethenincreasednaturalpriceoflabour。

Inthesecondcase，theconditionofthelabourerwillbeverygreatlyimproved；hewillreceiveincreasedmoneywages，withouthavingtopayanyincreasedprice，andperhapsevenadiminishedpriceforthecommoditieswhichheandhisfamilyconsume；anditwillnotbetillafteragreatadditionhasbeenmadetothepopulation，thatthemarketpriceoflabourwillagainsinktoitsthenlowandreducednaturalprice。

Thus，then，witheveryimprovementofsociety，witheveryincreaseinitscapital，themarketwagesoflabourwillrise；butthepermanenceoftheirrisewilldependonthequestion，whetherthenaturalpriceoflabourhasalsorisen；andthisagainwilldependontheriseinthenaturalpriceofthosenecessariesonwhichthewagesoflabourareexpended。

Itisnottobeunderstoodthatthenaturalpriceoflabour，estimatedeveninfoodandnecessaries，isabsolutelyfixedandconstant。Itvariesatdifferenttimesinthesamecountry，andverymateriallydiffersindifferentcountries。(14*)Itessentiallydependsonthehabitsandcustomsofthepeople。AnEnglishlabourerwouldconsiderhiswagesundertheirnaturalrate，andtooscantytosupportafamily，iftheyenabledhimtopurchasenootherfoodthanpotatoes，andtoliveinnobetterhabitationthanamudcabin；yetthesemoderatedemandsofnatureareoftendeemedsufficientincountrieswhere'man'slifeischeap'，andhiswantseasilysatisfied。ManyoftheconveniencesnowenjoyedinanEnglishcottage，wouldhavebeenthoughtluxuriesatanearlierperiodofourhistory。

Frommanufacturedcommoditiesalwaysfalling，andrawproducealwaysrising，withtheprogressofsociety，suchadisproportionintheirrelativevalueisatlengthcreated，thatinrichcountriesalabourer，bythesacrificeofaverysmallquantityonlyofhisfood，isabletoprovideliberallyforallhisotherwants。

Independentlyofthevariationsinthevalueofmoney，whichnecessarilyaffectmoneywages，butwhichwehaveheresupposedtohavenooperation，aswehaveconsideredmoneytobeuniformlyofthesamevalue，itappearsthenthatwagesaresubjecttoariseorfallfromtwocauses:

1st。Thesupplyanddemandoflabourers。

2dly。Thepriceofthecommoditiesonwhichthewagesoflabourareexpended。

Indifferentstagesofsociety，theaccumulationofcapital，orofthemeansofemployinglabour，ismoreorlessrapid，andmustinallcasesdependontheproductivepowersoflabour。Theproductivepowersoflabouraregenerallygreatestwhenthereisanabundanceoffertileland:

atsuchperiodsaccumulationisoftensorapid，thatlabourerscannotbesuppliedwiththesamerapidityascapital。

Ithasbeencalculated，thatunderfavourablecircumstancespopulationmaybedoubledintwenty-fiveyears；butunderthesamefavourablecircumstances，thewholecapitalofacountrymightpossiblybedoubledinashorterperiod。Inthatcase，wagesduringthewholeperiodwouldhaveatendencytorise，becausethedemandforlabourwouldincreasestillfasterthanthesupply。

Innewsettlements，wheretheartsandknowledgeofcountriesfaradvancedinrefinementareintroduced，itisprobablethatcapitalhasatendencytoincreasefasterthanmankind:andifthedeficiencyoflabourerswerenotsuppliedbymorepopulouscountries，thistendencywouldverymuchraisethepriceoflabour。Inproportionasthesecountriesbecomepopulous，andlandofaworsequalityistakenintocultivation，thetendencytoanincreaseofcapitaldiminishes；forthesurplusproduceremaining，aftersatisfyingthewantsoftheexistingpopulation，mustnecessarilybeinproportiontothefacilityofproduction，viz。tothesmallernumberofpersonsemployedinproduction。Although，then，itisprobable，thatunderthemostfavourablecircumstances，thepowerofproductionisstillgreaterthanthatofpopulation，itwillnotlongcontinueso；forthelandbeinglimitedinquantity，anddifferinginquality，witheveryincreasedportionofcapitalemployedonit，therewillbeadecreasedrateofproduction，whilstthepowerofpopulationcontinuesalwaysthesame。

Inthosecountrieswherethereisabundanceoffertileland，butwhere，fromtheignorance，indolence，andbarbarismoftheinhabitants，theyareexposedtoalltheevilsofwantandfamine，andwhereithasbeensaidthatpopulationpressesagainstthemeansofsubsistence，averydifferentremedyshouldbeappliedfromthatwhichisnecessaryinlongsettledcountries，where，fromthediminishingrateofthesupplyofrawproduce，alltheevilsofacrowdedpopulationareexperienced。Intheonecase，theevilproceedsfrombadgovernment，fromtheinsecurityofproperty，andfromawantofeducationinallranksofthepeople。Tobemadehappiertheyrequireonlytobebettergovernedandinstructed，astheaugmentationofcapital，beyondtheaugmentationofpeople，wouldbetheinevitableresult。Noincreaseinthepopulationcanbetoogreat，asthepowersofproductionarestillgreater。Intheothercase，thepopulationincreasesfasterthanthefundsrequiredforitssupport。

Everyexertionofindustry，unlessaccompaniedbyadiminishedrateofincreaseinthepopulation，willaddtotheevil，forproductioncannotkeeppacewithit。

Withapopulationpressingagainstthemeansofsubsistence，theonlyremediesareeitherareductionofpeople，oramorerapidaccumulationofcapital。Inrichcountries，whereallthefertilelandisalreadycultivated，thelatterremedyisneitherverypracticablenorverydesirable，becauseitseffectwouldbe，ifpushedveryfar，torenderallclassesequallypoor。Butinpoorcountries，wherethereareabundantmeansofproductioninstore，fromfertilelandnotyetbroughtintocultivation，itistheonlysafeandefficaciousmeansofremovingtheevil，particularlyasitseffectwouldbetoelevateallclassesofthepeople。

Thefriendsofhumanitycannotbutwishthatinallcountriesthelabouringclassesshouldhaveatasteforcomfortsandenjoyments，andthattheyshouldbestimulatedbyalllegalmeansintheirexertionstoprocurethem。Therecannotbeabettersecurityagainstasuperabundantpopulation。1Inthosecountries，wherethelabouringclasseshavethefewestwants，andarecontentedwiththecheapestfood，thepeopleareexposedtothegreatestvicissitudesandmiseries。Theyhavenoplaceofrefugefromcalamity；theycannotseeksafetyinalowerstation；theyarealreadysolow，thattheycanfallnolower。Onanydeficiencyofthechiefarticleoftheirsubsistence，therearefewsubstitutesofwhichtheycanavailthemselves，anddearthtothemisattendedwithalmostalltheevilsoffamine。

Inthenaturaladvanceofsociety，thewagesoflabourwillhaveatendencytofall，asfarastheyareregulatedbysupplyanddemand；forthesupplyoflabourerswillcontinuetoincreaseatthesamerate，whilstthedemandforthemwillincreaseataslowerrate。If，forinstance，wageswereregulatedbyayearlyincreaseofcapital，attherateof2percent，theywouldfallwhenitaccumulatedonlyattherateof11/2percent。Theywouldfallstilllowerwhenitincreasedonlyattherateof1，or1/2percent，andwouldcontinuetodosountilthecapitalbecamestationary，whenwagesalsowouldbecomestationary，andbeonlysufficienttokeepupthenumbersoftheactualpopulation。Isaythat，underthesecircumstances，wageswouldfall，iftheywereregulatedonlybythesupplyanddemandoflabourers；butwemustnotforget，thatwagesarealsoregulatedbythepricesofthecommoditiesonwhichtheyareexpended。

Aspopulationincreases，thesenecessarieswillbeconstantlyrisinginprice，becausemorelabourwillbenecessarytoproducethem。If，then，themoneywagesoflabourshouldfall，whilsteverycommodityonwhichthewagesoflabourwereexpendedrose，thelabourerwouldbedoublyaffected，andwouldbesoontotallydeprivedofsubsistence。

Instead，therefore，ofthemoneywagesoflabourfalling，theywouldrise；buttheywouldnotrisesufficientlytoenablethelabourertopurchaseasmanycomfortsandnecessariesashedidbeforetheriseinthepriceofthosecommodities。Ifhisannualwageswerebefore=A324，orsixquartersofcornwhenthepricewas=A34perquarter，hewouldprobablyreceiveonlythevalueoffivequarterswhencornroseto=A35perquarter。Butfivequarterswouldcost=A325；hewouldthereforereceiveanadditioninhismoneywages，thoughwiththatadditionhewouldbeunabletofurnishhimselfwiththesamequantityofcornandothercommodities，whichhehadbeforeconsumedinhisfamily。

Notwithstanding，then，thatthelabourerwouldbereallyworsepaid，yetthisincreaseinhiswageswouldnecessarilydiminishtheprofitsofthemanufacturer；forhisgoodswouldsellatnohigherprice，andyettheexpenseofproducingthemwouldbeincreased。This，however，willbeconsideredinourexaminationintotheprincipleswhichregulateprofits。

Itappears，then，thatthesamecausewhichraisesrent，namely，theincreasingdifficultyofprovidinganadditionalquantityoffoodwiththesameproportionalquantityoflabour，willalsoraisewages；andthereforeifmoneybeofanunvaryingvalue，bothrentandwageswillhaveatendencytorisewiththeprogressofwealthandpopulation。

Butthereisthisessentialdifferencebetweentheriseofrentandtheriseofwages。Theriseinthemoneyvalueofrentisaccompaniedbyanincreasedshareoftheproduce；notonlyisthelandlord'smoneyrentgreater，buthiscornrentalso；hewillhavemorecorn，andeachdefinedmeasureofthatcornwillexchangeforagreaterquantityofallothergoodswhichhavenotbeenraisedinvalue。Thefateofthelabourerwillbelesshappy；hewillreceivemoremoneywages，itistrue，buthiscornwageswillbereduced；andnotonlyhiscommandofcorn，buthisgeneralconditionwillbedeteriorated，byhisfindingitmoredifficulttomaintainthemarketrateofwagesabovetheirnaturalrate。Whilethepriceofcornrises10percent，wageswillalwaysriselessthan10percent，butrentwillalwaysrisemore；theconditionofthelabourerwillgenerallydecline，andthatofthelandlordwillalwaysbeimproved。

Whenwheatwasat=A34perquarter，supposethelabourer'swagestobe=A324perannum，orthevalueofsixquartersofwheat，andsupposehalfhiswagestobeexpendedonwheat，andtheotherhalf，or=A312，onotherthings。Hewouldreceive=A32414s。

=A32510s。

=A3268s。

=A3278s。6d。

whenwheatwasat=A344s。8d。

=A3410s。

=A3416s。

=A352s。10d。

orthevalueof5。83qrs。

5。66qrs。

5。50qrs。

5。33qrs。

Hewouldreceivethesewagestoenablehimtolivejustaswell，andnobetter，thanbefore；forwhencornwasat=A34perquarter，hewouldexpendforthreequartersofcorn，at=A34perquarter……=A312

andonotherthing……=A312

=A324

Whenwheatwas=A344s。8d。，threequarters，whichheandhisfamilyconsumed，wouldcosthim……=A31214s。

otherthingsnotalteredinprice……=A312

=A32414s。

Whenat=A3410s。，threequartersofwheatwouldcost=A31310s。

andotherthings=A312。

=A32510s。

Whenat=A3416s。，threequartersofwheat……=A3148s。

Otherthings=A312

=A3268s。

Whenat=A352s。10d。threequartersofwheatwouldcost=A3158s。6d。

Otherthings=A312

=A3278s。6d。

Inproportionascornbecamedear，hewouldreceivelesscornwages，buthismoneywageswouldalwaysincrease，whilsthisenjoyments，ontheabovesupposition，wouldbepreciselythesame。Butasothercommoditieswouldberaisedinpriceinproportionasrawproduceenteredintotheircomposition，hewouldhavemoretopayforsomeofthem。Althoughhistea，sugar，soap，candles，andhouserent，wouldprobablybenodearer，hewouldpaymoreforhisbacon，cheese，butter，linen，shoes，andcloth；andtherefore，evenwiththeaboveincreaseofwages，hissituationwouldbecomparativelyworse。ButitmaybesaidthatIhavebeenconsideringtheeffectofwagesonprice，onthesuppositionthatgold，orthemetalfromwhichmoneyismade，istheproduceofthecountryinwhichwagesvaried；andthattheconsequenceswhichIhavededucedagreelittlewiththeactualstateofthings，becausegoldisametalofforeignproduction。Thecircumstance，however，ofgoldbeingaforeignproduction，willnotinvalidatethetruthoftheargument，becauseitmaybeshewn，thatwhetheritwerefoundathome，orwereimportedfromabroad，theeffectsultimatelyand，indeed，immediatelywouldbethesame。

Whenwagesrise，itisgenerallybecausetheincreaseofwealthandcapitalhaveoccasionedanewdemandforlabour，whichwill，infalliblybeattendedwithanincreasedproductionofcommodities。Tocirculatetheseadditionalcommodities，evenatthesamepricesasbefore，moremoneyisrequired，moreofthisforeigncommodityfromwhichmoneyismade，andwhichcanonlybeobtainedbyimportation。Wheneveracommodityisrequiredingreaterabundancethanbefore，itsrelativevaluerisescomparativelywiththosecommoditieswithwhichitspurchaseismade。Ifmorehatswerewanted，theirpricewouldrise，andmoregoldwouldbegivenforthem。Ifmoregoldwererequired，goldwouldrise，andhatswouldfallinprice，asagreaterquantityofhatsandofallotherthingswouldthenbenecessarytopurchasethesamequantityofgold。Butinthecasesupposed，tosaythatcommoditieswillrise，becausewagesrise，istoaffirmapositivecontradiction；forwefirstsaythatgoldwillriseinrelativevalueinconsequenceofdemand，andsecondly，thatitwillfallinrelativevaluebecausepriceswillrise，twoeffectswhicharetotallyincompatiblewitheachother。Tosaythatcommoditiesareraisedinprice，isthesamethingastosaythatmoneyisloweredinrelativevalue；foritisbycommoditiesthattherelativevalueofgoldisestimated。Ifthenallcommoditiesroseinprice，goldcouldnotcomefromabroadtopurchasethosedearcommodities，butitwouldgofromhometobeemployedwithadvantageinpurchasingthecomparativelycheaperforeigncommodities。Itappears，then，thattheriseofwageswillnotraisethepricesofcommodities，whetherthemetalfromwhichmoneyismadebeproducedathomeorinaforeigncountry。

Allcommoditiescannotriseatthesametimewithoutanadditiontothequantityofmoney。Thisadditioncouldnotbeobtainedathome，aswehavealreadyshewn；norcoulditbeimportedfromabroad。Topurchaseanyadditionalquantityofgoldfromabroad，commoditiesathomemustbecheap，notdear。Theimportationofgold，andariseinthepriceofallhome-madecommoditieswithwhichgoldispurchasedorpaidfor，areeffectsabsolutelyincompatible。Theextensiveuseofpapermoneydoesnotalterthisquestion，forpapermoneyconforms，oroughttoconform，tothevalueofgold，andthereforeitsvalueisinfluencedbysuchcausesonlyasinfluencethevalueofthatmetal。

Thesethenarethelawsbywhichwagesareregulated，andbywhichthehappinessoffarthegreatestpartofeverycommunityisgoverned。

Likeallothercontracts，wagesshouldbelefttothefairandfreecompetitionofthemarket，andshouldneverbecontrolledbytheinterferenceofthelegislature。

Theclearanddirecttendencyofthepoorlaws，isindirectoppositiontotheseobviousprinciples:itisnot，asthelegislaturebenevolentlyintended，toamendtheconditionofthepoor，buttodeterioratetheconditionofbothpoorandrich；insteadofmakingthepoorrich，theyarecalculatedtomaketherichpoor；andwhilstthepresentlawsareinforce，itisquiteinthenaturalorderofthingsthatthefundforthemaintenanceofthepoorshouldprogressivelyincrease，tillithasabsorbedallthenetrevenueofthecountry，oratleastsomuchofitasthestateshallleavetous，aftersatisfyingitsownneverfailingdemandsforthepublicexpenditure。(15*)

Thispernicioustendencyoftheselawsisnolongeramystery，sinceithasbeenfullydevelopedbytheablehandofMrMalthus；andeveryfriendtothepoormustardentlywishfortheirabolition。Unfortunately，however，theyhavebeensolongestablished，andthehabitsofthepoorhavebeensoformedupontheiroperation，thattoeradicatethemwithsafetyfromourpoliticalsystem，requiresthemostcautiousandskilfulmanagement。Itisagreedbyallwhoaremostfriendlytoarepealoftheselaws，thatifitbedesirabletopreventthemostoverwhelmingdistresstothoseforwhosebenefittheywereerroneouslyenacted，theirabolitionshouldbeeffectedbythemostgradualsteps。

Itisatruthwhichadmitsnotadoubt，thatthecomfortsandwell-

beingofthepoorcannotbepermanentlysecuredwithoutsomeregardontheirpart，orsomeeffortonthepartofthelegislature，toregulatetheincreaseoftheirnumbers，andtorenderlessfrequentamongthemearlyandimprovidentmarriages。Theoperationofthesystemofpoorlawshasbeendirectlycontrarytothis。Theyhaverenderedrestraintsuperfluous，andhaveinvitedimprudence，byofferingitaportionofthewagesofprudenceandindustry。(16*)

Thenatureoftheevilpointsouttheremedy。Bygraduallycontractingthesphereofthepoorlaws；byimpressingonthepoorthevalueofindependence，byteachingthemthattheymustlooknottosystematicorcasualcharity，buttotheirownexertionsforsupport，thatprudenceandforethoughtareneitherunnecessarynorunprofitablevirtues，weshallbydegreesapproachasounderandmorehealthfulstate。

Noschemefortheamendmentofthepoorlawsmeritstheleastattention，whichhasnottheirabolitionforitsultimateobject；andheisthebestfriendtothepoor，andtothecauseofhumanity，whocanpointouthowthisendcanbeattainedwiththemostsecurity，andatthesametimewiththeleastviolence。Itisnotbyraisinginanymannerdifferentfromthepresent，thefundfromwhichthepooraresupported，thattheevilcanbemitigated。Itwouldnotonlybenoimprovement，butitwouldbeanaggravationofthedistresswhichwewishtoseeremoved，ifthefundwereincreasedinamount，orwereleviedaccordingtosomelateproposals，asageneralfundfromthecountryatlarge。Thepresentmodeofitscollectionandapplicationhasservedtomitigateitsperniciouseffects。Eachparishraisesaseparatefundforthesupportofitsownpoor。Henceitbecomesanobjectofmoreinterestandmorepracticabilitytokeeptherateslow，thanifonegeneralfundwereraisedforthereliefofthepoorofthewholekingdom。Aparishismuchmoreinterestedinaneconomicalcollectionoftherate，andasparingdistributionofrelief，whenthewholesavingwillbeforitsownbenefit，thanifhundredsofotherparishesweretopartakeofit。

Itistothiscause，thatwemustascribethefactofthepoorlawsnothavingyetabsorbedallthenetrevenueofthecountry；itistotherigourwithwhichtheyareapplied，thatweareindebtedfortheirnothavingbecomeoverwhelminglyoppressive。Ifbylaweveryhumanbeingwantingsupportcouldbesuretoobtainit，andobtainitinsuchadegreeastomakelifetolerablycomfortable，theorywouldleadustoexpectthatallothertaxestogetherwouldbelightcomparedwiththesingleoneofpoorrates。Theprincipleofgravitationisnotmorecertainthanthetendencyofsuchlawstochangewealthandpowerintomiseryandweakness；tocallawaytheexertionsoflabourfromeveryobject，exceptthatofprovidingmeresubsistence；toconfoundallintellectualdistinction；tobusythemindcontinuallyinsupplyingthebody'swants；

untilatlastallclassesshouldbeinfectedwiththeplagueofuniversalpoverty。Happilytheselawshavebeeninoperationduringaperiodofprogressiveprosperity，whenthefundsforthemaintenanceoflabourhaveregularlyincreased，andwhenanincreaseofpopulationwouldbenaturallycalledfor。Butifourprogressshouldbecomemoreslow；ifweshouldattainthestationarystate，fromwhichItrustweareyetfardistant，thenwilltheperniciousnatureoftheselawsbecomemoremanifestandalarming。andthen，too，willtheirremovalbeobstructedbymanyadditionaldifficulties。

Chapter6

OnProfitsTheprofitsofstock，indifferentemployments，havingbeenshewntobearaproportiontoeachother，andtohaveatendencytovaryallinthesamedegreeandinthesamedirection，itremainsforustoconsiderwhatisthecauseofthepermanentvariationsintherateofprofit，andtheconsequentpermanentalterationsintherateofinterest。

Wehaveseenthattheprice(17*)ofcornisregulatedbythequantityoflabournecessarytoproduceit，withthatportionofcapitalwhichpaysnorent。Wehaveseen，too，thatallmanufacturedcommoditiesriseandfallinprice，inproportionasmoreorlesslabourbecomesnecessarytotheirproduction。Neitherthefarmerwhocultivatesthatquantityofland，whichregulatesprice，northemanufacturer，whomanufacturesgoods，sacrificeanyportionoftheproduceforrent。Thewholevalueoftheircommoditiesisdividedintotwoportionsonly:oneconstitutestheprofitsofstock，theotherthewagesoflabour。

Supposingcornandmanufacturedgoodsalwaystosellatthesameprice，profitswouldbehighorlowinproportionaswageswereloworhigh。Butsupposecorntoriseinpricebecausemorelabourisnecessarytoproduceit；thatcausewillnotraisethepriceofmanufacturedgoodsintheproductionofwhichnoadditionalquantityoflabourisrequired。

If，then，wagescontinuedthesame，theprofitsofmanufacturerswouldremainthesame；butif，asisabsolutelycertain，wagesshouldrisewiththeriseofcorn，thentheirprofitswouldnecessarilyfall。

Ifamanufactureralwayssoldhisgoodsforthesamemoney，for=A31，000，forexample，hisprofitswoulddependonthepriceofthelabournecessarytomanufacturethosegoods。Hisprofitswouldbelesswhenwagesamountedto=A3800thanwhenhepaidonly=A3600。Inproportionthenaswagesrose，wouldprofitsfall。Butifthepriceofrawproducewouldincrease，itmaybeasked，whetherthefarmeratleastwouldnothavethesamerateofprofits，althoughheshouldpayanadditionalsumforwages?Certainlynot:forhewillnotonlyhavetopay，incommonwiththemanufacturer，anincreaseofwagestoeachlabourerheemploys，buthewillbeobligedeithertopayrent，ortoemployanadditionalnumberoflabourerstoobtainthesameproduce；andtheriseinthepriceofrawproducewillbeproportionedonlytothatrent，orthatadditionalnumber，andwillnotcompensatehimfortheriseofwages。

Ifboththemanufacturerandfarmeremployedtenmen，onwagesrisingfrom=A324to=A325perannumperman，thewholesumpaidbyeachwouldbe=A3250insteadof=A3240。Thisis，however，thewholeadditionthatwouldbepaidbythemanufacturertoobtainthesamequantityofcommodities；butthefarmeronnewlandwouldprobablybeobligedtoemployanadditionalman，andthereforetopayanadditionalsumof=A325forwages；andthefarmerontheoldlandwouldbeobligedtopaypreciselythesameadditionalsumof=A325forrent；withoutwhichadditionallabour，cornwouldnothaverisen，norrenthavebeenincreased。Onewillthereforehavetopay=A3275forwagesalone，theother，forwagesandrenttogether；each=A325morethanthemanufacturer:forthislatter=A325thefarmeriscompensatedbytheadditiontothepriceofrawproduce，andthereforehisprofitsstillconformtotheprofitsofthemanufacturer。Asthispropositionisimportant，Iwillendeavourstillfurthertoelucidateit。

Wehaveshewnthatinearlystagesofsociety，boththelandlord'sandthelabourer'sshareofthevalueoftheproduceoftheearth，wouldbebutsmall；andthatitwouldincreaseinproportiontotheprogressofwealth，andthedifficultyofprocuringfood。Wehaveshewn，too，thatalthoughthevalueofthelabourer'sportionwillbeincreasedbythehighvalueoffood，hisrealsharewillbediminished；whilstthatofthelandlordwillnotonlyberaisedinvalue，butwillalsobeincreasedinquantity。

Theremainingquantityoftheproduceoftheland，afterthelandlordandlabourerarepaid，necessarilybelongstothefarmer，andconstitutestheprofitsofhisstock。Butitmaybealleged，thatthoughassocietyadvances，hisproportionofthewholeproducewillbediminished，yetasitwillriseinvalue，he，aswellasthelandlordandlabourer，may，notwithstanding，receiveagreatervalue。

Itmaybesaidforexample，thatwhencornrosefrom=A34to=A310，the180quartersobtainedfromthebestlandwouldsellfor=A31，800insteadof=A3720；and，therefore，thoughthelandlordandlabourerbeprovedtohaveagreatervalueforrentandwages，stillthevalueofthefarmer'sprofitmightalsobeaugmented。This，however，isimpossible，asIshallnowendeavourtoshew。

Inthefirstplace，thepriceofcornwouldriseonlyinproportiontotheincreaseddifficultyofgrowingitonlandofaworsequality。

Ithasbeenalreadyremarked，thatifthelabouroftenmenwill，onlandofacertainquality，obtain180quartersofwheat，anditsvaluebe=A34perquarter，or=A3720；andifthelabouroftenadditionalmen，willonthesameoranyotherlandproduceonly170quartersinaddition，wheatwouldrisefrom=A34to=A344s。8d。；for170:180::=A34:=A344s。8d。Inotherwords，asfortheproductionof170quarters，thelabouroftenmenisnecessary，intheonecase，andonlythatof9。44intheother，therisewouldbeas9。44to10，or，as=A34to=A344s。8d。Inthesamemanneritmightbeshewn，thatifthelabouroftenadditionalmenwouldonlyproduce160quarters，thepricewouldfurtherriseto=A3410s。；if150，toA3416s。&c。

&c。

Butwhen180quarterswereproducedonthelandpayingnorent，anditspricewas=A34perquarter，itissoldfor……=A3720

Andwhen170quarterswereproducedonthelandpayingnorent，andthepriceroseto=A344s。8d。itstillsoldfor……720

So160quartersat=A3410s。produce……720

And150quartersat=A3416s。producethesamesumof。720

Nowitisevident，thatifoutoftheseequalvalues，thefarmerisatonetimeobligedtopaywagesregulatedbythepriceofwheatat=A34，andatothertimesathigherprices，therateofhisprofitswilldiminishinproportiontotheriseinthepriceofcorn。

Inthiscase，therefore，Ithinkitisclearlydemonstratedthatariseinthepriceofcorn，whichincreasesthemoneywagesofthelabourer，diminishesthemoneyvalueofthefarmer'sprofits。

Butthecaseofthefarmeroftheoldandbetterlandwillbeinnowaydifferent；healsowillhaveincreasedwagestopay，andwillneverretainmoreofthevalueoftheproduce，howeverhighmaybeitsprice，than=A3720tobedividedbetweenhimselfandhisalwaysequalnumberoflabourers；inproportionthereforeastheygetmore，hemustretainless。

Whenthepriceofcornwasat=A34thewhole180quartersbelongedtothecultivator，andhesolditfor=A3720。Whencornroseto=A344s。8d。hewasobligedtopaythevalueoftenquartersoutofhis180forrent，consequentlytheremaining170yieldedhimnomorethan=A3720:whenitrosefurtherto=A3410s。hepaidtwentyquarters，ortheirvalue，forrent，andconsequentlyonlyretained160quarters，whichyieldedthesamesumof=A3720。Itwillbeseen，then，thatwhateverrisemaytakeplaceinthepriceofcorn，inconsequenceofthenecessityofemployingmorelabourandcapitaltoobtainagivenadditionalquantityofproduce，suchrisewillalwaysbeequalledinvaluebytheadditionalrent，oradditionallabouremployed；sothatwhethercornsellsfor=A34，=A3410s。or=A352s。10d。thefarmerwillobtainforthatwhichremainstohim，afterpayingrent，thesamerealvalue。Thuswesee，thatwhethertheproducebelongingtothefarmerbe180，170，160，or150quarters，healwaysobtainsthesamesumof=A3720forit；thepriceincreasinginaninverseproportiontothequantity。

Rentthen，itappears，alwaysfallsontheconsumer，andneveronthefarmer；foriftheproduceofhisfarmshoulduniformlybe180quarters，withtheriseofprice，hewouldretainthevalueofalessquantityforhimself，andgivethevalueofalargerquantitytohislandlord；butthedeductionwouldbesuchastoleavehimalwaysthesamesumof=A3720。

Itwillbeseentoo，that，inallcases，thesamesumof=A3720mustbedividedbetweenwagesandprofits。Ifthevalueoftherawproducefromthelandexceedthisvalue，itbelongstorent，whatevermaybeitsamount。Iftherebenoexcess，therewillbenorent。Whetherwagesorprofitsriseorfall，itisthissumof=A3720fromwhichtheymustbothbeprovided。Ontheonehand，profitscanneverrisesohighastoabsorbsomuchofthis=A3720thatenoughwillnotbelefttofurnishthelabourerswithabsolutenecessaries；ontheotherhand，wagescanneverrisesohighastoleavenoportionofthissumforprofits。

Thusineverycase，agricultural，aswellasmanufacturingprofitsareloweredbyariseinthepriceofrawproduce，ifitbeaccompaniedbyariseofwages。(18*)Ifthefarmergetsnoadditionalvalueforthecornwhichremainstohimafterpayingrent，ifthemanufacturergetsnoadditionalvalueforthegoodswhichhemanufactures，andifbothareobligedtopayagreatervalueinwages，cananypointbemoreclearlyestablishedthanthatprofitsmustfall，withariseofwages?

Thefarmerthen，althoughhepaysnopartofhislandlord'srent，thatbeingalwaysregulatedbythepriceofproduce，andinvariablyfallingontheconsumers，hashoweveraverydecidedinterestinkeepingrentlow，orratherinkeepingthenaturalpriceofproducelow。Asaconsumerofrawproduce，andofthosethingsintowhichrawproduceentersasacomponentpart，hewill，incommonwithallotherconsumers，beinterestedinkeepingthepricelow。Butheismostmateriallyconcernedwiththehighpriceofcornasitaffectswages。

Witheveryriseinthepriceofcorn，hewillhavetopayoutofanequalandunvaryingsumof=A3720anadditionalsumforwagestothetenmenwhomheissupposedconstantlytoemploy。Wehaveseenintreatingonwagesthattheyinvariablyrisewiththeriseinthepriceofrawproduce。

Onabasisassumedforthepurposeofcalculation，pp。123-4，itwillbeseenthatifwhenwheatisat=A34perquarter，wagesshouldbe=A324perannumWhenwheatisatwageswouldbe=A344s。8d。=A32414s。0d。

410025100

41602680

52102786

Now，oftheunvaryingfundof=A3720tobedistributedbetweenlabourersandfarmers，Whenthepricethelabourerswillthefarmerwillofwheatisatreceivereceive=A340s。0d。=A32400s。=A34800s。0d。

448247047300

4100255046500

4160264045600

52102745455151

Andsupposingthattheoriginalcapitalofthefarmerwas=A33，000，theprofitsofhisstockbeinginthefirstinstance=A3480wouldbeattherateof16percent。Whenhisprofitsfellto=A3473theywouldbeattherateof15。7percent。

=A3465……15。5

=A3456……15。2

=A3445……14。8

Buttherateofprofitswillfallstillmore，becausethecapitalofthefarmer，itmustberecollected，consistsinagreatmeasureofrawproduce，suchashiscornandhay-ricks，hisunthreshedwheatandbarley，hishorsesandcows，whichwouldallriseinpriceinconsequenceoftheriseofproduce。Hisabsoluteprofitswouldfallfrom=A3480to=A344515s。；butiffromthecausewhichIhavejuststated，hiscapitalshouldrisefrom=A33，000to=A33，200therateofhisprofitswould，whencornwasat=A352s。10d。beunder14percent。

Ifamanufacturerhadalsoemployed=A33，000inhisbusiness，hewouldbeobligedinconsequenceoftheriseofwages，toincreasehiscapitalinordertobeenabledtocarryonthesamebusiness。Ifhiscommoditiessoldbeforefor=A3720theywouldcontinuetosellatthesameprice；butthewagesoflabour，whichwerebefore=A3240wouldrisewhencornwasat=A352s。10d。to=A32745s。Inthefirstcasehewouldhaveabalanceof=A3480asprofiton=A33，000，inthesecondhewouldhaveaprofitonlyof=A344515s。，onanincreasedcapital，andthereforehisprofitswouldconformtothealteredrateofthoseofthefarmer。

Therearefewcommoditieswhicharenotmoreorlessaffectedintheirpricebytheriseofrawproduce，becausesomerawmaterialfromthelandentersintothecompositionofmostcommodities。Cottongoods，linen，andcloth，willallriseinpricewiththeriseofwheat；buttheyriseonaccountofthegreaterquantityoflabourexpendedontherawmaterialfromwhichtheyaremade，andnotbecausemorewaspaidbythemanufacturertothelabourerswhomheemployedonthosecommodities。

Inallcases，commoditiesrisebecausemorelabourisexpendedonthem，andnotbecausethelabourwhichisexpendedonthemisatahighervalue。Articlesofjewellery，ofiron，ofplate，andofcopper，wouldnotrise，becausenoneoftherawproducefromthesurfaceoftheearthentersintotheircomposition。

ItmaybesaidthatIhavetakenitforgranted，thatmoneywageswouldrisewithariseinthepriceofrawproduce，butthatthisisbynomeansanecessaryconsequence，asthelabourermaybecontentedwithfewerenjoyments。Itistruethatthewagesoflabourmaypreviouslyhavebeenatahighlevel，andthattheymaybearsomereduction。Ifso，thefallofprofitswillbechecked；butitisimpossibletoconceivethatthemoneypriceofwagesshouldfall，orremainstationarywithagraduallyincreasingpriceofnecessaries；andthereforeitmaybetakenforgrantedthat，underordinarycircumstances，nopermanentrisetakesplaceinthepriceofnecessaries，withoutoccasioning，orhavingbeenprecededbyariseinwages。

Theeffectsproducedonprofitswouldhavebeenthesame，ornearlythesame，iftherehadbeenanyriseinthepriceofthoseothernecessaries，besidesfood，onwhichthewagesoflabourareexpended。

Thenecessitywhichthelabourerwouldbeunderofpayinganincreasedpriceforsuchnecessaries，wouldobligehimtodemandmorewages；andwhateverincreaseswages，necessarilyreducesprofits。Butsupposethepriceofsilks，velvets，furniture，andanyothercommodities，notrequiredbythelabourer，toriseinconsequenceofmorelabourbeingexpendedonthem，wouldnotthataffectprofits?Certainlynot:fornothingcanaffectprofitsbutariseinwages；silksandvelvetsarenotconsumedbythelabourer，andthereforecannotraisewages。

ItistobeunderstoodthatIamspeakingofprofitsgenerally。Ihavealreadyremarked，thatthemarketpriceofacommoditymayexceeditsnaturalornecessaryprice，asitmaybeproducedinlessabundancethanthenewdemandforitrequires。This，however，isbutatemporaryeffect。

Thehighprofitsoncapitalemployedinproducingthatcommodity，willnaturallyattractcapitaltothattrade；andassoonastherequisitefundsaresupplied，andthequantityofthecommodityisdulyincreased，itspricewillfall，andtheprofitsofthetradewillconformtothegenerallevel。Afallinthegeneralrateofprofitsisbynomeansincompatiblewithapartialriseofprofitsinparticularemployments。Itisthroughtheinequalityofprofits，thatcapitalismovedfromoneemploymenttoanother。Whilstthengeneralprofitsarefalling，andgraduallysettingatalowerlevelinconsequenceoftheriseofwages，andtheincreasingdifficultyofsupplyingtheincreasingpopulationwithnecessaries，theprofitsofthefarmermay，foranintervalofsomelittleduration，beabovetheformerlevel。Anextraordinarystimulusmaybealsogivenforacertaintime，toaparticularbranchofforeignandcolonialtrade；buttheadmissionofthisfactbynomeansinvalidatesthetheory，thatprofitsdependonhighorlowwages，wagesonthepriceofnecessaries，andthepriceofnecessarieschieflyonthepriceoffood，becauseallotherrequisitesmaybeincreasedalmostwithoutlimit。

Itshouldberecollectedthatpricesalwaysvaryinthemarket，andinthefirstinstance，throughthecomparativestateofdemandandsupply。

Althoughclothcouldbefurnishedat40s。peryard，andgivetheusualprofitsofstock，itmayriseto60or80s。fromageneralchangeoffashion，orfromanyothercausewhichshouldsuddenlyandunexpectedlyincreasethedemand，ordiminishthesupplyofit。Themakersofclothwillforatimehaveunusualprofits，butcapitalwillnaturallyflowtothatmanufacture，tillthesupplyanddemandareagainattheirfairlevel，whenthepriceofclothwillagainsinkto40s。，itsnaturalornecessaryprice。Inthesamemanner，witheveryincreaseddemandforcorn，itmayrisesohighastoaffordmorethanthegeneralprofitstothefarmer。Iftherebeplentyoffertileland，thepriceofcornwillagainfalltoitsformerstandard，aftertherequisitequantityofcapitalhasbeenemployedinproducingit，andprofitswillbeasbefore；

butiftherebenotplentyoffertileland，if，toproducethisadditionalquantity，morethantheusualquantityofcapitalandlabourberequired，cornwillnotfalltoitsformerlevel。Itsnaturalpricewillberaised，andthefarmer，insteadofobtainingpermanentlylargerprofits，willfindhimselfobligedtobesatisfiedwiththediminishedratewhichistheinevitableconsequenceoftheriseofwages，producedbytheriseofnecessaries。

Thenaturaltendencyofprofitsthenistofall；forintheprogressofsocietyandwealth，theadditionalquantityoffoodrequiredisobtainedbythesacrificeofmoreandmorelabour。Thistendency，thisgravitationasitwereofprofits，ishappilycheckedatrepeatedintervalsbytheimprovementsinmachinery，connectedwiththeproductionofnecessaries，aswellasbydiscoveriesinthescienceofagriculturewhichenableustorelinquishaportionoflabourbeforerequired，andthereforetolowerthepriceoftheprimenecessaryofthelabourer。Theriseinthepriceofnecessariesandinthewagesoflabourishoweverlimited；forassoonaswagesshouldbeequal(asinthecaseformerlystated)to=A3720，thewholereceiptsofthefarmer，theremustbeanendofaccumulation；

fornocapitalcanthenyieldanyprofitwhatever，andnoadditionallabourcanbedemanded，andconsequentlypopulationwillhavereacheditshighestpoint。Longindeedbeforethisperiod，theverylowrateofprofitswillhavearrestedallaccumulation，andalmostthewholeproduceofthecountry，afterpayingthelabourers，willbethepropertyoftheownersoflandandthereceiversoftithesandtaxes。

Thus，takingtheformerveryimperfectbasisasthegroundsofmycalculation，itwouldappearthatwhencornwasat=A320perquarter，thewholenetincomeofthecountrywouldbelongtothelandlords，forthenthesamequantityoflabourthatwasoriginallynecessarytoproduce180

quarters，wouldbenecessarytoproduce36；since=A320:=A34::180:36。Thefarmerthen，whoproduced180quarters，(ifanysuchtherewere，fortheoldandnewcapitalemployedonthelandwouldbesoblended，thatitcouldinnowaybedistinguished，)wouldsellthe180qrs。at=A320perqr。or……=A33600

thevalueof144qrs。tothelandlordforrentbeingthedifferencebetween36and180qrs。2880

thevalueof36qrs。tolabourersteninnumber720

leavingnothingwhateverforprofit。

Ihavesupposesthatatthispriceof=A320thelabourerswouldcontinuetoconsumethreequarterseachperannumor=A360

Andthatontheothercommoditiestheywouldexpend……12

72foreachlabourer。

InallthesecalculationsIhavebeendesirousonlytoelucidatetheprinciple，anditisscarcelynecessarytoobserve，thatmywholebasisisassumedatrandom，andmerelyforthepurposeofexemplification。Theresultsthoughdifferentindegree，wouldhavebeenthesameinprinciple，howeveraccuratelyImighthavesetoutinstatingthedifferenceinthenumberoflabourersnecessarytoobtainthesuccessivequantitiesofcornrequiredbyanincreasingpopulation，thequantityconsumedbythelabourer'sfamily，&c。&c。Myobjecthasbeentosimplifythesubject，andIhavethereforemadenoallowancefortheincreasingpriceoftheothernecessaries，besidesfood，ofthelabourer；

an。increasewhichwouldbetheconsequenceoftheincreasedvalueoftherawmaterialsfromwhichtheyaremade，andwhichwouldofcoursefurtherincreasewages，andlowerprofits。

Ihavealreadysaid，thatlongbeforethisstateofpriceswasbecomepermanent，therewouldbenomotiveforaccumulation；fornooneaccumulatesbutwithaviewtomakehisaccumulationproductive，anditisonlywhensoemployedthatitoperatesonprofits。Withoutamotivetherecouldbenoaccumulation，andconsequentlysuchastateofpricesnevercouldtakeplace。Thefarmerandmanufacturercannomorelivewithoutprofit，thanthelabourerwithoutwages。Theirmotiveforaccumulationwilldiminishwitheverydiminutionofprofit，andwillceasealtogetherwhentheirprofitsaresolowasnottoaffordthemanadequatecompensationfortheirtrouble，andtheriskwhichtheymustnecessarilyencounterinemployingtheircapitalproductively。

【推荐阅读】幽幽深宫，醒来一梦似千年，重生于下堂妃身躯中的她，将如何手刃仇人? 点击阅读