Butthewholepriceofanycommoditymuststillfinallyresolveitselfintosomeoneorother，orallofthosethreeparts;aswhateverpartofitremainsafterpayingtherentoftheland，andthepriceofthewholelabouremployedinraising，manufacturing，andbringingittomarket，mustnecessarilybeprofittosomebody。
Asthepriceorexchangeablevalueofeveryparticularcommodity，takenseparately，resolvesitselfintosomeoneorotherorallofthosethreeparts;sothatofallthecommoditieswhichcomposethewholeannualproduceofthelabourofeverycountry，takencomplexly，mustresolveitselfintothesamethreeparts，andbeparcelledoutamongdifferentinhabitantsofthecountry，eitherasthewagesoftheirlabour，theprofitsoftheirstock，ortherentoftheirland。Thewholeofwhatisannuallyeithercollectedorproducedbythelabourofeverysociety，orwhatcomestothesamething，thewholepriceofit，isinthismanneroriginallydistributedamongsomeofitsdifferentmembers。Wages，profit，andrent，arethethreeoriginalsourcesofallrevenueaswellasofallexchangeablevalue。Allotherrevenueisultimatelyderivedfromsomeoneorotherofthese。
Whoeverderiveshisrevenuefromafundwhichishisown，mustdrawiteitherfromhislabour，fromhisstock，orfromhisland。Therevenuederivedfromlabouriscalledwages。Thatderivedfromstock，bythepersonwhomanagesoremployesit，iscalledprofit。Thatderivedfromitbythepersonwhodoesnotemployithimself，butlendsittoanother，iscalledtheinterestortheuseofmoney。Itisthecompensationwhichtheborrowerpaystothelender，fortheprofitwhichhehasanopportunityofmakingbytheuseofthemoney。Partofthatprofitnaturallybelongstotheborrower，whorunstheriskandtakesthetroubleofemployingit;andparttothelender，whoaffordshimtheopportunityofmakingthisprofit。Theinterestofmoneyisalwaysaderivativerevenue，which，ifitisnotpaidfromtheprofitwhichismadebytheuseofthemoney，mustbepaidfromsomeothersourceofrevenue，unlessperhapstheborrowerisaspendthrift，whocontractsaseconddebtinordertopaytheinterestofthefirst。Therevenuewhichproceedsaltogetherfromland，iscalledrent，andbelongstothelandlord。Therevenueofthefarmerisderivedpartlyfromhislabour，andpartlyfromhisstock。Tohim，landisonlytheinstrumentwhichenableshimtoearnthewagesofthislabour，andtomaketheprofitsofthisstock。Alltaxes，andantherevenuewhichisfoundeduponthem，allsalaries，pensions，andannuitiesofeverykind，areultimatelyderivedfromsomeoneorotherofthosethreeoriginalsourcesofrevenue，andarepaideitherimmediatelyormediatelyfromthewagesoflabour，theprofitsofstock，ortherentofland。
Whenthosethreedifferentsortsofrevenuebelongtodifferentpersons，theyarereadilydistinguished;butwhentheybelongtothesametheyaresometimesconfoundedwithoneanother，atleastincommonlanguage。
Agentlemanwhofarmsapartofhisownestate，afterpayingtheexpenseofcultivation，shouldgainboththerentofthelandlordandtheprofitofthefarmer。Heisapttodenominate，however，hiswholegain，profit，andthusconfoundsrentwithprofit，atleastincommonlanguage。ThegreaterpartofourNorthAmericanandWestIndianplantersareinthissituation。
Theyfarm，thegreaterpartofthem，theirownestates，andaccordinglyweseldomhearoftherentofaplantation，butfrequentlyofitsprofit。
Commonfarmersseldomemployanyoverseertodirectthegeneraloperationsofthefarm。Theygenerally，too，workagooddealwiththeirownhands，asploughmen，harrowers，etc。Whatremainsofthecropafterpayingtherent，therefore，shouldnotonlyreplacetothemtheirstockemployedincultivation，togetherwithitsordinaryprofits，butpaythemthewageswhichareduetothem，bothaslabourersandoverseers。Whateverremains，however，afterpayingtherentandkeepingupthestock，iscalledprofit。Butwagesevidentlymakeapartofit。Thefarmer，bysavingthesewages，mustnecessarilygainthem。Wages，therefore，areinthiscaseconfoundedwithprofit。
Anindependentmanufacturer，whohasstockenoughbothtopurchasematerials，andtomaintainhimselftillhecancarryhisworktomarket，shouldgainboththewagesofajourneymanwhoworksunderamaster，andtheprofitwhichthatmastermakesbythesaleofthejourneyman’swork。Hiswholegains，however，arecommonlycalledprofit，andwagesare，inthiscasetoo，confoundedwithprofit。
Agardenerwhocultivateshisowngardenwithhisownhands，unitesinhisownpersonthethreedifferentcharactersoflandlord，farmer，andlabourer。Hisproduce，therefore，shouldpayhimtherentofthefirst，theprofitofthesecond，andthewagesofthethird。Thewhole，however，iscommonlyconsideredastheearningsofhislabour。Bothrentandprofitare，inthiscase，confoundedwithwages。
Asinacivilisedcountrytherearebutfewcommoditiesofwhichtheexchangeablevaluearisesfromlabouronly，rentandprofitcontributinglargelytothatofthefargreaterpartofthem，sotheannualproduceofitslabourwillalwaysbesufficienttopurchaseorcommandamuchgreaterquantityoflabourthanwhatemployedinraising，preparing，andbringingthatproducetomarket。Ifthesocietywereannuallytoemployallthelabourwhichitcanannuallypurchase，asthequantityoflabourwouldincreasegreatlyeveryyear，sotheproduceofeverysucceedingyearwouldbeofvastlygreatervaluethanthatoftheforegoing。Butthereisnocountryinwhichthewholeannualproduceisemployedinmaintainingtheindustrious。Theidleeverywhereconsumeagreatpartofit;andaccordingtothedifferentproportionsinwhichitisannuallydividedbetweenthosetwodifferentordersofpeople，itsordinaryoraveragevaluemusteitherannuallyincrease，ordiminish，orcontinuethesamefromoneyeartoanother。
CHAPTERVII
OftheNaturalandMarketPriceofCommoditiesTHEREisineverysocietyorneighbourhoodanordinaryoraverageratebothofwagesandprofitineverydifferentemploymentoflabourandstock。Thisrateisnaturallyregulated，asIshallshowhereafter，partlybythegeneralcircumstancesofthesociety，theirrichesorpoverty，theiradvancing，stationary，ordecliningcondition;andpartlybytheparticularnatureofeachemployment。
Thereislikewiseineverysocietyorneighbourhoodanordinaryoraveragerateofrent，whichisregulatedtoo，asI
shallshowhereafter，partlybythegeneralcircumstancesofthesocietyorneighbourhoodinwhichthelandissituated，andpartlybythenaturalorimprovedfertilityoftheland。
Theseordinaryoraverageratesmaybecalledthenaturalratesofwages，profit，andrent，atthetimeandplaceinwhichtheycommonlyprevail。
Whenthepriceofanycommodityisneithermorenorlessthanwhatissufficienttopaytherentoftheland，thewagesofthelabour，andtheprofitsofthestockemployedinraising，preparing，andbringingittomarket，accordingtotheirnaturalrates，thecommodityisthensoldforwhatmaybecalleditsnaturalprice。
Thecommodityisthensoldpreciselyforwhatitisworth，orforwhatitreallycoststhepersonwhobringsittomarket;
forthoughincommonlanguagewhatiscalledtheprimecostofanycommoditydoesnotcomprehendtheprofitofthepersonwhoistosellitagain，yetifhesellitatapricewhichdoesnotallowhimtheordinaryrateofprofitinhisneighbourhood，heisevidentlyaloserbythetrade;sincebyemployinghisstockinsomeotherwayhemighthavemadethatprofit。Hisprofit，besides，ishisrevenue，theproperfundofhissubsistence。As，whileheispreparingandbringingthegoodstomarket，headvancestohisworkmentheirwages，ortheirsubsistence;soheadvancestohimself，inthesamemanner，hisownsubsistence，whichisgenerallysuitabletotheprofitwhichhemayreasonablyexpectfromthesaleofhisgoods。Unlesstheyyieldhimthisprofit，therefore，theydonotrepayhimwhattheymayveryproperlybesaidtohavereallycosthim。
Thoughtheprice，therefore，whichleaveshimthisprofitisnotalwaysthelowestatwhichadealermaysometimessellhisgoods，itisthelowestatwhichheislikelytosellthemforanyconsiderabletime;atleastwherethereisperfectliberty，orwherehemaychangehistradeasoftenashepleases。
Theactualpriceatwhichanycommodityiscommonlysoldiscalleditsmarketprice。Itmayeitherbeabove，orbelow，orexactlythesamewithitsnaturalprice。
Themarketpriceofeveryparticularcommodityisregulatedbytheproportionbetweenthequantitywhichisactuallybroughttomarket，andthedemandofthosewhoarewillingtopaythenaturalpriceofthecommodity，orthewholevalueoftherent，labour，andprofit，whichmustbepaidinordertobringitthither。Suchpeoplemaybecalledtheeffectualdemanders，andtheirdemandtheeffectualdemand;sinceitmaybesufficienttoeffectuatethebringingofthecommoditytomarket。Itisdifferentfromtheabsolutedemand。Averypoormanmaybesaidinsomesensetohaveademandforacoachandsix;hemightliketohaveit;buthisdemandisnotaneffectualdemand，asthecommoditycanneverbebroughttomarketinordertosatisfyit。
Whenthequantityofanycommoditywhichisbroughttomarketfallsshortoftheeffectualdemand，allthosewhoarewillingtopaythewholevalueoftherent，wages，andprofit，whichmustbepaidinordertobringitthither，cannotbesuppliedwiththequantitywhichtheywant。Ratherthanwantitaltogether，someofthemwillbewillingtogivemore。A
competitionwillimmediatelybeginamongthem，andthemarketpricewillrisemoreorlessabovethenaturalprice，accordingaseitherthegreatnessofthedeficiency，orthewealthandwantonluxuryofthecompetitors，happentoanimatemoreorlesstheeagernessofthecompetition。Amongcompetitorsofequalwealthandluxurythesamedeficiencywillgenerallyoccasionamoreorlesseagercompetition，accordingastheacquisitionofthecommodityhappenstobeofmoreorlessimportancetothem。
Hencetheexorbitantpriceofthenecessariesoflifeduringtheblockadeofatownorinafamine。
Whenthequantitybroughttomarketexceedstheeffectualdemand，itcannotbeallsoldtothosewhoarewillingtopaythewholevalueoftherent，wages，andprofit，whichmustbepaidinordertobringitthither。Somepartmustbesoldtothosewhoarewillingtopayless，andthelowpricewhichtheygiveforitmustreducethepriceofthewhole。Themarketpricewillsinkmoreorlessbelowthenaturalprice，accordingasthegreatnessoftheexcessincreasesmoreorlessthecompetitionofthesellers，oraccordingasithappenstobemoreorlessimportanttothemtogetimmediatelyridofthecommodity。Thesameexcessintheimportationofperishable，willoccasionamuchgreatercompetitionthaninthatofdurablecommodities;intheimportationoforanges，forexample，thaninthatofoldiron。
Whenthequantitybroughttomarketisjustsufficienttosupplytheeffectualdemand，andnomore，themarketpricenaturallycomestobeeitherexactly，orasnearlyascanbejudgedof，thesamewiththenaturalprice。Thewholequantityuponhandcanbedisposedofforthisprice，andcannotbedisposedofformore。Thecompetitionofthedifferentdealersobligesthemalltoacceptofthisprice，butdoesnotobligethemtoacceptofless。
Thequantityofeverycommoditybroughttomarketnaturallysuitsitselftotheeffectualdemand。Itistheinterestofallthosewhoemploytheirland，labour，orstock，inbringinganycommoditytomarket，thatthequantitynevershouldexceedtheeffectualdemand;anditistheinterestofallotherpeoplethatitnevershouldfallshortofthatdemand。
Ifatanytimeitexceedstheeffectualdemand，someofthecomponentpartsofitspricemustbepaidbelowtheirnaturalrate。Ifitisrent，theinterestofthelandlordswillimmediatelypromptthemtowithdrawapartoftheirland;andifitiswagesorprofit，theinterestofthelabourersintheonecase，andoftheiremployersintheother，willpromptthemtowithdrawapartoftheirlabourorstockfromthisemployment。
Thequantitybroughttomarketwillsoonbenomorethansufficienttosupplytheeffectualdemand。Allthedifferentpartsofitspricewillrisetotheirnaturalrate，andthewholepricetoitsnaturalprice。
If，onthecontrary，thequantitybroughttomarketshouldatanytimefallshortoftheeffectualdemand，someofthecomponentpartsofitspricemustriseabovetheirnaturalrate。
Ifitisrent，theinterestofallotherlandlordswillnaturallypromptthemtopreparemorelandfortheraisingofthiscommodity;ifitiswagesorprofit，theinterestofallotherlabourersanddealerswillsoonpromptthemtoemploymorelabourandstockinpreparingandbringingittomarket。Thequantitybroughtthitherwillsoonbesufficienttosupplytheeffectualdemand。Allthedifferentpartsofitspricewillsoonsinktotheirnaturalrate，andthewholepricetoitsnaturalprice。
Thenaturalprice，therefore，is，asitwere，thecentralprice，towhichthepricesofallcommoditiesarecontinuallygravitating。Differentaccidentsmaysometimeskeepthemsuspendedagooddealaboveit，andsometimesforcethemdownevensomewhatbelowit。Butwhatevermaybetheobstacleswhichhinderthemfromsettlinginthiscentreofreposeandcontinuance，theyareconstantlytendingtowardsit。
Thewholequantityofindustryannuallyemployedinordertobringanycommoditytomarketnaturallysuitsitselfinthismannertotheeffectualdemand。Itnaturallyaimsatbringingalwaysthatprecisequantitythitherwhichmaybesufficienttosupply，andnomorethansupply，thatdemand。
Butinsomeemploymentsthesamequantityofindustrywillindifferentyearsproduceverydifferentquantitiesofcommodities;whileinothersitwillproducealwaysthesame，orverynearlythesame。Thesamenumberoflabourersinhusbandrywill，indifferentyears，produceverydifferentquantitiesofcorn，wine，oil，hops，etc。Butthesamenumberofspinnersandweaverswilleveryyearproducethesameorverynearlythesamequantityoflinenandwoollencloth。Itisonlytheaverageproduceoftheonespeciesofindustrywhichcanbesuitedinanyrespecttotheeffectualdemand;andasitsactualproduceisfrequentlymuchgreaterandfrequentlymuchlessthanitsaverageproduce，thequantityofthecommoditiesbroughttomarketwillsometimesexceedagooddeal，andsometimesfallshortagooddeal，oftheeffectualdemand。Eventhoughthatdemandthereforeshouldcontinuealwaysthesame，theirmarketpricewillbeliabletogreatfluctuations，willsometimesfallagooddealbelow，andsometimesriseagooddealabovetheirnaturalprice。
Intheotherspeciesofindustry，theproduceofequalquantitiesoflabourbeingalwaysthesame，orverynearlythesame，itcanbemoreexactlysuitedtotheeffectualdemand。Whilethatdemandcontinuesthesame，therefore，themarketpriceofthecommoditiesislikelytodosotoo，andtobeeitheraltogether，orasnearlyascanbejudgedof，thesamewiththenaturalprice。Thatthepriceoflinenandwoolenclothisliableneithertosuchfrequentnortosuchgreatvariationsasthepriceofcorn，everyman’sexperiencewillinformhim。Thepriceoftheonespeciesofcommoditiesvariesonlywiththevariationsinthedemand:thatoftheothervaries，notonlywiththevariationsinthedemand，butwiththemuchgreaterandmorefrequentvariationsinthequantityofwhatisbroughttomarketinordertosupplythatdemand。
Theoccasionalandtemporaryfluctuationsinthemarketpriceofanycommodityfallchieflyuponthosepartsofitspricewhichresolvethemselvesintowagesandprofit。Thatpartwhichresolvesitselfintorentislessaffectedbythem。Arentcertaininmoneyisnotintheleastaffectedbythemeitherinitsrateorinitsvalue。Arentwhichconsistseitherinacertainproportionorinacertainquantityoftherudeproduce，isnodoubtaffectedinitsyearlyvaluebyalltheoccasionalandtemporaryfluctuationsinthemarketpriceofthatrudeproduce;butitisseldomaffectedbytheminitsyearlyrate。Insettlingthetermsofthelease，thelandlordandfarmerendeavour，accordingtotheirbestjudgment，toadjustthatrate，nottothetemporaryandoccasional，buttotheaverageandordinarypriceoftheproduce。
Suchfluctuationsaffectboththevalueandtherateeitherofwagesorofprofit，accordingasthemarkethappenstobeeitheroverstockedorunderstockedwithcommoditiesorwithlabour;withworkdone，orwithworktobedone。Apublicmourningraisesthepriceofblackcloth（withwhichthemarketisalmostalwaysunderstockeduponsuchoccasions），andaugmentstheprofitsofthemerchantswhopossessanyconsiderablequantityofit。Ithasnoeffectuponthewagesoftheweavers。
Themarketisunderstockedwithcommodities，notwithlabour;
withworkdone，notwithworktobedone。Itraisesthewagesofjourneymentailors。Themarketishereunderstockedwithlabour。
Thereisaneffectualdemandformorelabour，formoreworktobedonethancanbehad。Itsinksthepriceofcolouredsilksandcloths，andtherebyreducestheprofitsofthemerchantswhohaveanyconsiderablequantityofthemuponhand。Itsinks，too，thewagesoftheworkmenemployedinpreparingsuchcommodities，forwhichalldemandisstoppedforsixmonths，perhapsforatwelvemonth。Themarketishereover—stockedbothwithcommoditiesandwithlabour。
Butthoughthemarketpriceofeveryparticularcommodityisinthismannercontinuallygravitating，ifonemaysayso，towardsthenaturalprice，yetsometimesparticularaccidents，sometimesnaturalcauses，andsometimesparticularregulationsofpolice，may，inmanycommodities，keepupthemarketprice，foralongtimetogether，agooddealabovethenaturalprice。
Whenbyanincreaseintheeffectualdemand，themarketpriceofsomeparticularcommodityhappenstoriseagooddealabovethenaturalprice，thosewhoemploytheirstocksinsupplyingthatmarketaregenerallycarefultoconcealthischange。Ifitwascommonlyknown，theirgreatprofitwouldtemptsomanynewrivalstoemploytheirstocksinthesamewaythat，theeffectualdemandbeingfullysupplied，themarketpricewouldsoonbereducedtothenaturalprice，andperhapsforsometimeevenbelowit。Ifthemarketisatagreatdistancefromtheresidenceofthosewhosupplyit，theymaysometimesbeabletokeepthesecretforseveralyearstogether，andmaysolongenjoytheirextraordinaryprofitswithoutanynewrivals。Secretsofthiskind，however，itmustbeacknowledged，canseldombelongkept;andtheextraordinaryprofitcanlastverylittlelongerthantheyarekept。
Secretsinmanufacturesarecapableofbeinglongerkeptthansecretsintrade。Adyerwhohasfoundthemeansofproducingaparticularcolourwithmaterialswhichcostonlyhalfthepriceofthosecommonlymadeuseof，may，withgoodmanagement，enjoytheadvantageofhisdiscoveryaslongashelives，andevenleaveitasalegacytohisposterity。Hisextraordinarygainsarisefromthehighpricewhichispaidforhisprivatelabour。Theyproperlyconsistinthehighwagesofthatlabour。Butastheyarerepeateduponeverypartofhisstock，andastheirwholeamountbears，uponthataccount，aregularproportiontoit，theyarecommonlyconsideredasextraordinaryprofitsofstock。
Suchenhancementsofthemarketpriceareevidentlytheeffectsofparticularaccidents，ofwhich，however，theoperationmaysometimeslastformanyyearstogether。
Somenaturalproductionsrequiresuchasingularityofsoilandsituationthatallthelandinagreatcountry，whichisfitforproducingthem，maynotbesufficienttosupplytheeffectualdemand。Thewholequantitybroughttomarket，therefore，maybedisposedoftothosewhoarewillingtogivemorethanwhatissufficienttopaytherentofthelandwhichproducedthem，togetherwiththewagesofthelabour，andtheprofitsofthestockwhichwereemployedinpreparingandbringingthemtomarket，accordingtotheirnaturalrates。Suchcommoditiesmaycontinueforwholecenturiestogethertobesoldatthishighprice;andthatpartofitwhichresolvesitselfintotherentoflandisinthiscasethepartwhichisgenerallypaidaboveitsnaturalrate。Therentofthelandwhichaffordssuchsingularandesteemedproductions，liketherentofsomevineyardsinFranceofapeculiarlyhappysoilandsituation，bearsnoregularproportiontotherentofotherequallyfertileandequallywell—cultivatedlandinitsneighbourhood。Thewagesofthelabourandtheprofitsofthestockemployedinbringingsuchcommoditiestomarket，onthecontrary，areseldomoutoftheirnaturalproportiontothoseoftheotheremploymentsoflabourandstockintheirneighbourhood。
Suchenhancementsofthemarketpriceareevidentlytheeffectofnaturalcauseswhichmayhindertheeffectualdemandfromeverbeingfullysupplied，andwhichmaycontinue，therefore，tooperateforever。
Amonopolygrantedeithertoanindividualortoatradingcompanyhasthesameeffectasasecretintradeormanufactures。
Themonopolists，bykeepingthemarketconstantlyunderstocked，byneverfullysupplyingtheeffectualdemand，selltheircommoditiesmuchabovethenaturalprice，andraisetheiremoluments，whethertheyconsistinwagesorprofit，greatlyabovetheirnaturalrate。
Thepriceofmonopolyisuponeveryoccasionthehighestwhichcanbegot。Thenaturalprice，orthepriceoffreecompetition，onthecontrary，isthelowestwhichcanbetaken，notuponeveryoccasion，indeed，butforanyconsiderabletimetogether。Theoneisuponeveryoccasionthehighestwhichcanbesqueezedoutofthebuyers，orwhich，itissupposed，theywillconsenttogive:theotheristhelowestwhichthesellerscancommonlyaffordtotake，andatthesametimecontinuetheirbusiness。
Theexclusiveprivilegesofcorporations，statutesofapprenticeship，andallthoselawswhichrestrain，inparticularemployments，thecompetitiontoasmallernumberthanmightotherwisegointothem，havethesametendency，thoughinalessdegree。Theyareasortofenlargedmonopolies，andmayfrequently，foragestogether，andinwholeclassesofemployments，keepupthemarketpriceofparticularcommoditiesabovethenaturalprice，andmaintainboththewagesofthelabourandtheprofitsofthestockemployedaboutthemsomewhatabovetheirnaturalrate。
Suchenhancementsofthemarketpricemaylastaslongastheregulationsofpolicewhichgiveoccasiontothem。
Themarketpriceofanyparticularcommodity，thoughitmaycontinuelongabove，canseldomcontinuelongbelowitsnaturalprice。Whateverpartofitwaspaidbelowthenaturalrate，thepersonswhoseinterestitaffectedwouldimmediatelyfeeltheloss，andwouldimmediatelywithdraweithersomuchland，orsomuchlabour，orsomuchstock，frombeingemployedaboutit，thatthequantitybroughttomarketwouldsoonbenomorethansufficienttosupplytheeffectualdemand。Itsmarketprice，therefore，wouldsoonrisetothenaturalprice。Thisatleastwouldbethecasewheretherewasperfectliberty。
Thesamestatutesofapprenticeshipandothercorporationlawsindeed，which，whenamanufactureisinprosperity，enabletheworkmantoraisehiswagesagooddealabovetheirnaturalrate，sometimesobligehim，whenitdecays，toletthemdownagooddealbelowit。Asintheonecasetheyexcludemanypeoplefromhisemployment，sointheothertheyexcludehimfrommanyemployments。Theeffectofsuchregulations，however，isnotnearsodurableinsinkingtheworkman’swagesbelow，asinraisingthemabovetheirnaturalrate。Theiroperationintheonewaymayendureformanycenturies，butintheotheritcanlastnolongerthanthelivesofsomeoftheworkmenwhowerebredtothebusinessinthetimeofitsprosperity。Whentheyaregone，thenumberofthosewhoareafterwardseducatedtothetradewillnaturallysuititselftotheeffectualdemand。ThepolicemustbeasviolentasthatofIndostanorancientEgypt（whereeverymanwasboundbyaprincipleofreligiontofollowtheoccupationofhisfather，andwassupposedtocommitthemosthorridsacrilegeifhechangeditforanother），whichcaninanyparticularemployment，andforseveralgenerationstogether，sinkeitherthewagesoflabourortheprofitsofstockbelowtheirnaturalrate。
ThisisallthatIthinknecessarytobeobservedatpresentconcerningthedeviations，whetheroccasionalorpermanent，ofthemarketpriceofcommoditiesfromthenaturalprice。
Thenaturalpriceitselfvarieswiththenaturalrateofeachofitscomponentparts，ofwages，profit，andrent;andineverysocietythisratevariesaccordingtotheircircumstances，accordingtotheirrichesorpoverty，theiradvancing，stationary，ordecliningcondition。Ishall，inthefourfollowingchapters，endeavourtoexplain，asfullyanddistinctlyasIcan，thecausesofthosedifferentvariations。
First，Ishallendeavourtoexplainwhatarethecircumstanceswhichnaturallydeterminetherateofwages，andinwhatmannerthosecircumstancesareaffectedbytherichesorpoverty，bytheadvancing，stationary，ordecliningstateofthesociety。
Secondly，Ishallendeavourtoshowwhatarethecircumstanceswhichnaturallydeterminetherateofprofit，andinwhatmanner，too，thosecircumstancesareaffectedbythelikevariationsinthestateofthesociety。
Thoughpecuniarywagesandprofitareverydifferentinthedifferentemploymentsoflabourandstock;yetacertainproportionseemscommonlytotakeplacebetweenboththepecuniarywagesinallthedifferentemploymentsoflabour，andthepecuniaryprofitsinallthedifferentemploymentsofstock。
Thisproportion，itwillappearhereafter，dependspartlyuponthenatureofthedifferentemployments，andpartlyuponthedifferentlawsandpolicyofthesocietyinwhichtheyarecarriedon。Butthoughinmanyrespectsdependentuponthelawsandpolicy，thisproportionseemstobelittleaffectedbytherichesorpovertyofthatsociety;byitsadvancing，stationary，ordecliningcondition;buttoremainthesameorverynearlythesameinallthosedifferentstates。Ishall，inthethirdplace，endeavourtoexplainallthedifferentcircumstanceswhichregulatethisproportion。
Inthefourthandlastplace，Ishallendeavourtoshowwhatarethecircumstanceswhichregulatetherentofland，andwhicheitherraiseorlowertherealpriceofallthedifferentsubstanceswhichitproduces。
CHAPTERVIII
OftheWagesofLabourTHEproduceoflabourconstitutesthenaturalrecompenseorwagesoflabour。
Inthatoriginalstateofthings，whichprecedesboththeappropriationoflandandtheaccumulationofstock，thewholeproduceoflabourbelongstothelabourer。Hehasneitherlandlordnormastertosharewithhim。
Hadthisstatecontinued，thewagesoflabourwouldhaveaugmentedwithallthoseimprovementsinitsproductivepowerstowhichthedivisionoflabourgivesoccasion。Allthingswouldgraduallyhavebecomecheaper。Theywouldhavebeenproducedbyasmallerquantityoflabour;andasthecommoditiesproducedbyequalquantitiesoflabourwouldnaturallyinthisstateofthingsbeexchangedforoneanother，theywouldhavebeenpurchasedlikewisewiththeproduceofasmallerquantity。
Butthoughallthingswouldhavebecomecheaperinreality，inappearancemanythingsmighthavebecomedearerthanbefore，orhavebeenexchangedforagreaterquantityofothergoods。Letussuppose，forexample，thatinthegreaterpartofemploymentstheproductivepowersoflabourhadbeenimprovedtotenfold，orthataday’slabourcouldproducetentimesthequantityofworkwhichithaddoneoriginally;butthatinaparticularemploymenttheyhadbeenimproved，onlytodouble，orthataday’slabourcouldproduceonlytwicethequantityofworkwhichithaddonebefore。Inexchangingtheproduceofaday’slabourinthegreaterpartofemploymentsforthatofaday’slabourinthisparticularone，tentimestheoriginalquantityofworkinthemwouldpurchaseonlytwicetheoriginalquantityinit。Anyparticularquantityinit，therefore，apoundweight，forexample，wouldappeartobefivetimesdearerthanbefore。Inreality，however，itwouldbetwiceascheap。Thoughitrequiredfivetimesthequantityofothergoodstopurchaseit，itwouldrequireonlyhalfthequantityoflaboureithertopurchaseortoproduceit。Theacquisition，therefore，wouldbetwiceaseasyasbefore。
Butthisoriginalstateofthings，inwhichthelabourerenjoyedthewholeproduceofhisownlabour，couldnotlastbeyondthefirstintroductionoftheappropriationoflandandtheaccumulationofstock。Itwasatanend，therefore，longbeforethemostconsiderableimprovementsweremadeintheproductivepowersoflabour，anditwouldbetonopurposetotracefurtherwhatmighthavebeenitseffectsupontherecompenseorwagesoflabour。
Assoonaslandbecomesprivateproperty，thelandlorddemandsashareofalmostalltheproducewhichthelabourercaneitherraise，orcollectfromit。Hisrentmakesthefirstdeductionfromtheproduceofthelabourwhichisemployeduponland。
Itseldomhappensthatthepersonwhotillsthegroundhaswherewithaltomaintainhimselftillhereapstheharvest。Hismaintenanceisgenerallyadvancedtohimfromthestockofamaster，thefarmerwhoemployshim，andwhowouldhavenointeresttoemployhim，unlesshewastoshareintheproduceofhislabour，orunlesshisstockwastobereplacedtohimwithaprofit。Thisprofit，makesaseconddeductionfromtheproduceofthelabourwhichisemployeduponland。
Theproduceofalmostallotherlabourisliabletothelikedeductionofprofit。Inallartsandmanufacturesthegreaterpartoftheworkmenstandinneedofamastertoadvancethemthematerialsoftheirwork，andtheirwagesandmaintenancetillitbecompleted。Hesharesintheproduceoftheirlabour，orinthevaluewhichitaddstothematerialsuponwhichitisbestowed;
andinthisshareconsistshisprofit。
Itsometimeshappens，indeed，thatasingleindependentworkmanhasstocksufficientbothtopurchasethematerialsofhiswork，andtomaintainhimselftillitbecompleted。Heisbothmasterandworkman，andenjoysthewholeproduceofhisownlabour，orthewholevaluewhichitaddstothematerialsuponwhichitisbestowed。Itincludeswhatareusuallytwodistinctrevenues，belongingtotwodistinctpersons，theprofitsofstock，andthewagesoflabour。
Suchcases，however，arenotveryfrequent，andineverypartofEurope，twentyworkmenserveunderamasterforonethatisindependent;andthewagesoflabourareeverywhereunderstoodtobe，whattheyusuallyare，whenthelabourerisoneperson，andtheownerofthestockwhichemployshimanother。
Whatarethecommonwagesoflabour，dependseverywhereuponthecontractusuallymadebetweenthosetwoparties，whoseinterestsarebynomeansthesame。Theworkmendesiretogetasmuch，themasterstogiveaslittleaspossible。Theformeraredisposedtocombineinordertoraise，thelatterinordertolowerthewagesoflabour。
Itisnot，however，difficulttoforeseewhichofthetwopartiesmust，uponallordinaryoccasions，havetheadvantageinthedispute，andforcetheotherintoacompliancewiththeirterms。Themasters，beingfewerinnumber，cancombinemuchmoreeasily;andthelaw，besides，authorizes，oratleastdoesnotprohibittheircombinations，whileitprohibitsthoseoftheworkmen。Wehavenoactsofparliamentagainstcombiningtolowerthepriceofwork;butmanyagainstcombiningtoraiseit。Inallsuchdisputesthemasterscanholdoutmuchlonger。Alandlord，afarmer，amastermanufacturer，amerchant，thoughtheydidnotemployasingleworkman，couldgenerallyliveayearortwouponthestockswhichtheyhavealreadyacquired。Manyworkmencouldnotsubsistaweek，fewcouldsubsistamonth，andscarceanyayearwithoutemployment。Inthelongruntheworkmanmaybeasnecessarytohismasterashismasteristohim;butthenecessityisnotsoimmediate。
Werarelyhear，ithasbeensaid，ofthecombinationsofmasters，thoughfrequentlyofthoseofworkmen。Butwhoeverimagines，uponthisaccount，thatmastersrarelycombine，isasignorantoftheworldasofthesubject。Mastersarealwaysandeverywhereinasortoftacit，butconstantanduniformcombination，nottoraisethewagesoflabourabovetheiractualrate。Toviolatethiscombinationiseverywhereamostunpopularaction，andasortofreproachtoamasteramonghisneighboursandequals。Weseldom，indeed，hearofthiscombination，becauseitistheusual，andonemaysay，thenaturalstateofthings，whichnobodyeverhearsof。Masters，too，sometimesenterintoparticularcombinationstosinkthewagesoflabourevenbelowthisrate。Thesearealwaysconductedwiththeutmostsilenceandsecrecy，tillthemomentofexecution，andwhentheworkmenyield，astheysometimesdo，withoutresistance，thoughseverelyfeltbythem，theyareneverheardofbyotherpeople。Suchcombinations，however，arefrequentlyresistedbyacontrarydefensivecombinationoftheworkmen;whosometimestoo，withoutanyprovocationofthiskind，combineoftheirownaccordtoraisethepriceoftheirlabour。Theirusualpretencesare，sometimesthehighpriceofprovisions;sometimesthegreatprofitwhichtheirmastersmakebytheirwork。Butwhethertheircombinationsbeoffensiveordefensive，theyarealwaysabundantlyheardof。Inordertobringthepointtoaspeedydecision，theyhavealwaysrecoursetotheloudestclamour，andsometimestothemostshockingviolenceandoutrage。Theyaredesperate，andactwiththefollyandextravaganceofdesperatemen，whomusteitherstarve，orfrightentheirmastersintoanimmediatecompliancewiththeirdemands。Themastersupontheseoccasionsarejustasclamorousupontheotherside，andneverceasetocallaloudfortheassistanceofthecivilmagistrate，andtherigorousexecutionofthoselawswhichhavebeenenactedwithsomuchseverityagainstthecombinationsofservants，labourers，andjourneymen。Theworkmen，accordingly，veryseldomderiveanyadvantagefromtheviolenceofthosetumultuouscombinations，which，partlyfromtheinterpositionofthecivilmagistrate，partlyfromthenecessitysuperiorsteadinessofthemasters，partlyfromthenecessitywhichthegreaterpartoftheworkmenareunderofsubmittingforthesakeofpresentsubsistence，generallyendinnothing，butthepunishmentorruinoftheringleaders。
Butthoughindisputeswiththeirworkmen，mastersmustgenerallyhavetheadvantage，thereis，however，acertainratebelowwhichitseemsimpossibletoreduce，foranyconsiderabletime，theordinarywagesevenofthelowestspeciesoflabour。