PrefaceIntroduction。TheSubject—ItsLimits—andDivisionChapter1。ProductionLabourCapitalChapter2。DistributionRentWagesThattherateofwagesdependsontheproportionbetween
Population,andEmployment,inotherwords,CapitalProofofthetendencyofPopulationtoincrease
rapidlyProofthatcapitalhasalesstendencythanPopulationto
increaserapidlyThatforciblemeansemployedtomakecapitalincrease
fasterthanitsnaturaltendencywouldnotproducedesirableeffectsProfitsChapter3。InterchangeNatureoftheAdvantageDerivedfromtheInterchangeof
Commodities,andthePrincipalAgentsEmployedinitWhatDeterminestheQuantityinWhichCommoditiesExchange
forOneAnotherEffectUponExchangeableValuesofaFluctuationinWagesand
ProfitsOccasionsonWhichitistheInterestofNationstoExchange
CommoditieswithOneAnotherTheCommoditiesImportedaretheCauseoftheBenefits
DerivedfromaForeignTradeConvenienceofaParticularCommodity,asaMediumof
ExchangeWhatRegulatestheValueofMoneyWhatRegulatestheQuantityofMoneyTheEffectofEmployingTwoMetalsbothasStandardMoney,
andofUsingSubsidiaryCoins,atlessthantheMetallicValueSubstitutesforMoneyAdvantagesDerivedfromtheUseofPaperMoneyInconveniencestowhichtheUseofPaperMoneyisLiableTheValueofthePreciousMetalsinEachCountryDetermines
WhetherItShallExportorImportTheValueofthePreciousMetal,orMediumofExchange,
WhichExportationIsNotDeterminestheSameinallCountriesModeinwhichthePreciousMetal,orMediumofExchange,
DistributesItselfAmongtheNationsoftheGlobeMoneyTransactionsbetweenNations—BillsofExchangeBountiesandProhibitionsColoniesChapter4。ConsumptionOfProductiveandUnproductiveConsumptionThatWhichIsAnnuallyProducedIsAnnuallyConsumedThatConsumptionIsCo—ExtensiveWithProductionInWhatMannerGovernmentConsumesTaxesonRentATaxonProfitsATaxonWagesDirectTaxesWhichAreDestinedtoFallEquallyUponAll
SourcesofIncomeTaxesonCommodities;EitherSomeParticularCommodities;
OrAllCommoditiesEquallyATaxUpontheProduceoftheLandATaxUpontheProfitsoftheFarmer,andUponAgricultural
InstrumentsTithesandPoorRatesATaxperAcreontheLandTaxesUpontheTransferofPropertyLawTaxesTaxesonMoney,andthePreciousMetalsEffectsoftheTaxationofCommoditiesUpontheValueof
Money,andtheEmploymentofCapitalPreface(P。1)TherearefewthingsofwhichIhaveoccasiontoadvertizethereader,beforeheenters
upontheperusalofthefollowingwork。
(P。2)Myobjecthasbeentocomposeaschool—bookofPoliticalEconomy,todetachthe
essentialprinciplesofthesciencefromallextraneoustopics,tostatethepropositionsclearlyand
intheirlogicalorder,andtosubjoinitsdemonstrationtoeach。Iam,myself,persuaded,that
nothingmoreisnecessaryforunderstandingeverypartofthebook,thantoreaditwith
attention;suchattentionaspersonsofeithersex,ofordinaryunderstanding,arecapableof
bestowing。
(P。3)Theywhoarecommencingthestudyoughttoproceedslowly,andtofamiliarize
themselveswiththenewcombinationsofideas,astheyaresuccessivelypresentedtothem。If
theyproceedtoasubsequentpropositionbeforetheyaresufficientlyimbuedwiththefirst,they
willofcourseexperienceadifficulty,onlybecausetheyhavenotpresenttotheirmemorythe
truthwhichiscalculatedtoremoveit。Iftheywhobeginthestudyofmathematicswereto
contentthemselveswithmerelyreadingandassentingtothedemonstrations,theywouldsoon
arriveatdoctrines,whichtheywouldbeunabletocomprehend,solelybecausetheyhadnot,by
frequentrepetition,establishedintheirmindsthosepreviouspropositions,onwhichthe
evidenceofthesubsequentonesdepends。
(P。4)InaworkofthisdescriptionIhavethoughtitadviseablenottoquoteanyauthorities,
becauseIamanxiousthatthelearnershouldfixhisminduponthedoctrineanditsevidence,
withoutanyextraneousconsideration。Icannotfearanimputationofplagiarism,becauseI
professtohavemadenodiscovery;andthosemenwhohavecontributedtotheprogressofthe
scienceneednotestimonyofminetoestablishtheirfame。
(P。5)Inthisthirdedition,theonlyalterations,notmerelyverbal,willbefound,inthe
sectionon
Profits,wherethedifferentmodesofexpressingtherelationofprofitstowagesismorefully
expounded;inthesectionwhichtreatsof\"whatdeterminesthequantityinwhichcommodities
exchangeforoneanother,\"whereIhaveaddedsomethinginillustrationoftheanalysisofwhat
regulatesvalue;inthesection,whichexplainsthe\"occasionsonwhichitistheinterestof
nationstoexchangecommoditieswithoneanother,\"whereIhavecorrectedanerrorofthe
formereditions;andinthesection,whichtreatsofataxperacreontheland,whereIhave
thoughtitnecessarytoexplainacasetowhichIhadnotbeforeadverted。
IntroductionTheSubject—ItsLimits—andDivision(I。1)PoliticalEconomyistotheState,whatdomesticeconomyistothefamily。
(I。2)Thefamilyconsumes;and,inordertoconsume,itmustsupply。
(I。3)Domesticeconomyhas,therefore,twograndobjects;theconsumptionandsupplyof
the
family。Theconsumptionbeingaquantityalwaysindefinite,forthereisnoendtothedesireof
enjoyment,thegrandconcernis,toincreasethesupply。
(I。4)Thosethings,whichareproduced,insufficientabundanceforthesatisfactionofall,
withouttheinterventionofhumanlabour;asair,thelightofthesun,water,andsoon;arenot
objectsofcareorprovidence;andtherefore,accuratelyspeaking,donotformpartofthesubject
ofdomesticeconomy。Theartofhim,whomanagesafamily,consistsinregulatingthesupply
andconsumptionofthosethings,whichcannotbeobtainedbutwithcost;inotherwords,with
humanlabour,\"theoriginalpurchasemoney,whichisgivenforeverything。\"
(I。5)ThesameisthecasewithPoliticalEconomy。Italsohastwograndobjects,the
ConsumptionoftheCommunity,andthatSupplyuponwhichtheconsumptiondepends。Those
things,whicharesuppliedwithouttheinterventionofhumanlabour,asnothingisrequiredin
ordertoobtainthem,neednotbetakenintoaccount。Hadeverything,desiredforconsumption,
existedwithouthumanlabour,therewouldhavebeennoplaceforPoliticalEconomy。Scienceis
notimpliedinputtingforththehand,andusing。Butwhenlabouristobeemployed,andthe
objectsofdesirecanbemultipliedonlybyapreconcertedplanofoperations,itbecomesan
objectofimportancetoascertaincompletelythemeansofthatmultiplication,andtoframea
systemofrulesforapplyingthemwithgreatestadvantagetotheend。
(I。6)Itisnotpretended,thatwritersonPoliticalEconomyhavealwayslimitedtheir
disquisitions
tothisobject。Itseems,however,importanttodetachthesciencefromallconsiderationsnot
essentialtoit。TheReaderisthereforerequestedtoobservethat,inthefollowingpages,Ihaveit
merelyinview,toascertainthelaws,accordingtowhichtheproductionandconsumptionare
regulatedofthosecommodities,whichtheinterventionofhumanlabourisnecessarytoprocure。
(I。7)TheScienceofPoliticalEconomy,thusdefined,dividesitselfintotwograndinquiries;
that
whichrelatestoProduction,andthatwhichrelatestoConsumption。
(I。8)But,afterthingsareproduced,itisevident,that,beforetheyareconsumed,theymust
be
distributed。Thelawsofdistribution,therefore,constituteanintermediateinquiry。
(I。9)Whencommoditiesareproduced,anddistributed,itishighlyconvenient,forthesake
both
ofreproductionandconsumption,thatportionsofthemshouldbeexchangedforoneanother。To
ascertain,therefore,thelaws,accordingtowhichcommoditiesareexchangedforoneanother,is
asecondinquiry,precedingthatwhichrelatestothelastgreattopicofPoliticalEconomy,
Consumption。
(I。10)Itthusappears,thatfourinquiriesarecomprehendedinthisscience。
(I。11)1st。Whatarethelaws,whichregulatetheproductionofcommodities:
(I。12)2dly。Whatarethelaws,accordingtowhichthecommodities,producedbythelabour
of
thecommunity,aredistributed:
(I。13)3dly。Whatarethelaws,accordingtowhichcommoditiesareexchangedforone
another:
(I。14)4thly。Whatarethelaws,whichregulateconsumption。
Chapter1。Production(1。1)Thedistinction,betweenwhatisdonebylabour,andwhatisdonebynature,isnot
always
observed。
(1。2)Labourproducesitseffectsonlybyconspiringwiththelawsofnature。
(1。3)Itisfoundthattheagencyofmancanbetracedtoverysimpleelements。Hedoes
nothing
butproducemotion。Hecanmovethingstowardsoneanother,andhecanseparatethemfrom
oneanother。Thepropertiesofmatterperformtherest。Hemovesignitedirontoaportionof
gunpowder,andanexplosiontakesplace。Hemovestheseedtotheground,andvegetation
commences。Heseparatestheplantfromtheground,andvegetationceases。Why,orhow,these
effectstakeplace,heisignorant。Hehasonlyascertained,byexperience,thatifheperformsuch
andsuchmotions,suchandsucheventsaretheconsequence。Instrictnessofspeech,itismatter
itself,whichproducestheeffects。Allthatmencandoistoplacetheobjectsofnatureina
certainposition。Thetailor,whenhemakesacoat;thefarmer,whenheproducescorn,dobut
thesamething。Eachperformsasetofmotions;thepropertiesofmatteraccomplishtherest。It
wouldbeabsurdtoask,towhichofanytwoeffectsthepropertiesofmattercontributethemost;
seeingtheycontributeeverything,aftercertainportionsofmatterareplacedinacertain
position。
(1。4)Asourinquiryisconfinedtothatspeciesofproduction,ofwhichhumanlabouristhe
instrument;andashumanlabourproducesitseffectschieflyintwomodes;eitherwith,or
without,theaidofimplements;thischapternaturallydividesitselfintotwosections;ofwhich
thefirstwilltreatofLabour,simply,andasmuchaspossibledetachedfromtheconsiderationof
theinstrumentsbywhichthepowersoflabourmaybeimproved:thesecondwilltreatofCapital,
oroftheorigin,andnatureofthatprovisionofmaterials,onwhichlabourisemployed,andby
whichitsoperationsareassisted。
SectionI。Labour(1。i。1)Inthestateofsociety,inwhichweexist,weseldomseeLabouremployedexceptin
conjunctionwithCapital。ToconceivetheseparateoperationofLabourmoredistinctly,itmay
beusefultorecur,inimagination,tothatsimplestateofthings,inwhichsocietymaybe
conceivedtohaveoriginated。
(1。i。2)Whenthesavageclimbsatree,andgathersthefruit;whenheensnaresawildbeast,
or
beatsitdownwithaclub,hemaybeconsideredasoperatingwithhisnakedpowers,andwithout
theaidofanything,towhichthenameofCapitalcanproperlybeannexed。
(1。i。3)Theprincipalthing,which,withaviewtotheconclusionsofPoliticalEconomy,itis
necessarytoremark,inregardtoLabour,consideredasadistinctportionofacompositewhole,
andapartfromCapital,is,thenecessityofsubsistencetothelabourer。Intheideaoflabour,the
ideaofthissubsistenceisincluded。Wheneverwesaythatsuchandsucheffectsareproducedby
purelabour,wemeantheconsumptionandoperationsofthelabourer,takenconjunctly。There
canbenolabour,withouttheconsumptionofthelabourer。Iftheman,whoclimbsthetreeto
gatherthefruit,canmanagetofindtwosuchtrees,andtoclimbtheminaday,hecancontinue
hisemploymentwiththesubsistenceofhalfadayprovidedinadvance。Ifthemanwhosubsists
onanimalscannotmakesureofhisprey,inlessthanaday,hecannothavelessthanawhole
day’ssubsistenceinadvance。Ifhuntingexcursionsareundertaken,whichoccupyaweekora
month,subsistenceforseveraldaysmayberequired。Itisevident,whenmencometoliveupon
thoseproductionswhichtheirlabourraisesfromthesoil,andwhichcanbebroughttomaturity
onlyonceintheyear,thatsubsistenceforawholeyearmustbelaidupinadvance。
(1。i。4)Thepreviousprovisionorthelabourermaybegreaterorsmaller,indifferentcases,in
proportiontothegreaterorlesstimewhichitmayrequire,torealizethefruitofhislabour,in
theshapeofsubsistence;butinallthesecases,equally,wheneverwespeakofhislabour,asa
thingbyitself,adetached,independent,instrumentofproduction,theideaorthesubsistenceis
includedinit。
(1。i。5)Thisisthemorenecessarytoberemembered,thattheterms,Labour,andWages,are,
sometimes,incautiouslyused;andconfusionofideas,andsomefundamentalerrors,arethe
consequence。Itisclear,that,whenwespeakofthelabourofaman,foraday,oramonth,ora
year,theideaofhissubsistenceisasnecessarilyincluded,asthatoftheactionofhismuscles,or
hislife。Hislabourisnotonething,theactionofhismusclesanotherthing;tothepurposein
hand,theyareoneandthesamething。Ifwagesbetakenassynonymouswiththeconsumption
ofthelabourer,thelabourcannotbetaken,asoneitemofanaggregate,anditswagesas
another。Asoftenasthisisdone,anerroristhenecessaryconsequence。
(1。i。6)Havingthusseen,whatideasarenecessarilyincludedinthatoflabour,inits
detached,
andsimplestform,itisonlyfurthernecessary,underthishead,toconsidertheimprovements,in
respecttoitsproductivepowers,ofwhichitissusceptible。
(1。i。7)Itwillbeseenhereafter,thatthemostimportantoftheseimprovementsarise,from
the
useofthoseinstruments,whichformoneoftheportionsofcapital。Greatimprovementsalso
arise,fromthedivision,includingthedistribution,oflabour。
(1。i。8)Thefoundationofthislatterclassofimprovementsislaid,inthefact,thatan
operation,
whichweperformslowlyatfirst,isperformedwithgreaterandgreaterrapiditybyrepetition。
Thisisalawofhumannaturesofamiliar,andwellunderstood,thatithardlystandsinneedof
illustration。Thesimplestofalloperations,thatofbeatingadrum,isaproperexample。Aman
whohasnotpractisedthisoperation,isoftensurprised,upontrial,attheslownesswithwhichhe
performsit,whiletherapidityofapractiseddrummerisstillmoreastonishing。
(1。i。9)Therepetition,uponwhichthegreatestceleritydepends,mustbefrequent。Itisnot
thereforecompatiblewithagreatnumberofdifferentoperations。Theman,whowouldperform
one,orafew,operations,withthegreatestpossiblerapidity,mustconfinehimselftooneora
few。Oftheoperations,therefore,conducivetotheproductionofthecommoditiesdesiredby
man,ifanyoneconfineshimselftoasmallnumber,hewillperformthemwithmuchmore
rapidity,thanifheemployedhimselfinagreater;andnotonlywithmorerapidity,but,whatis
oftenofthehighestconsequence,withgreatercorrectnessandprecision。
(1。i。10)Acertainimmenseaggregateofoperations,issubservienttotheproductionofthe
commoditiesusefulandagreeabletoman。Itisofthehighestimportancethatthisaggregate
shouldbedividedintoportions,consisting,each,ofassmallanumberofoperationsaspossible,
inorderthateveryoperationmaybethemorequicklyandperfectly,performed。Ifeachman
could,bythemorefrequentrepetitionthusoccasioned,performtwooftheseoperations,instead
ofone,andalsoperformeachofthembetter,thepowersofthecommunity,inproducingarticles
usefulandagreeabletothem,would,uponthissupposition,bemorethandoubled。Notonly
wouldtheybedoubledinquantity,butagreatadvantagewouldbegainedinpointofquality。
(1。i。11)ThissubjecthasbeenfullyillustratedbyDr。Smith,inthefirstchapterofthefirst
book
ofthe\"InquiryintotheNatureandCausesoftheWealthofNations,\"wheretheextraordinary
effectofthedivisionoflabourinincreasingitsproductivepowers,inthemorecomplicated
cases,isdisplayedinsomeveryremarkableinstances。Hestatesthataboy,whohasbeen
accustomedtomakenothingbutnails,canmake—upwardsoftwothousandthreehundredina
day;whileacommonblacksmith,whoseoperationsareneverthelesssomuchakintothoseof
thenailer,cannotmakeabovethreehundred,andthoseverybadones。
(1。i。12)Eveninthesimpleststateoflabour,itcannotbedoubted,that,ifonemanshould
confinehimselftotheoperationofclimbingtreesfortheirfruit,anothertotheoperationsof
ensnaringandkillinganimals,theywouldacquireadexterity,theoneinclimbingtrees,the
otherinprocuringanimals,greaterthantheywouldhaveacquired,hadeachoccasionally
performedbothoperations;andthattheywouldbysuchmeansobtainagreaterabundance,both
offruit,andofgame。
(1。i。13)Soobviousisthisadvantage,thatsomeremarkablecasesofthedivisionoflabour
are
exemplified,intheearlieststagesofthearts。Thehandswhichspinthethread,andthehands
whichweaveitintocloth,weredifferent,ineverycountry,perhaps,inwhichwehaveany
memorialoftheearlystateoftheart。Themanwhotansthehide,andthemanwhomakesitinto
shoes;themanwhoworksiniron,andthemanwhoworksinwood,wereallseparatedatan
earlyperiod,andhaddivisionsoflabourappropriatedtothem。
(1。i。14)Iftheimmenseaggregateoftheoperationswhicharesubservienttothecomplicated
accommodations,requiredinanartificialandopulentstateofsociety,weretobedivided,under
circumstancesthebestcalculatedforbreakingitdownintothosesmallgroupesofoperations,
whichaffordthegreatestaidtotheproductivepowersoflabour,themostperfectphilosophical
analysisofthesubjectwouldbethefirstoperationtobeperformed;thenextwouldbean
equallyperfectphilosophicalsynthesis。
(1。i。15)Inordertoknowwhatistobedonewithavastaggregateofmaterials,existingin
forms,
illadoptedtotheendswhicharetobeobtained,itisnecessarytocontemplatetheaggregatein
itselements;toresolveitintothoseelements;andcarefullyandcomprehensivelytopassthem
underreview。Thisistheanalyticaloperation。
(1。i。16)Whenwehavethefullknowledgeoftheelements,whichwearetocombine,as
means,
towardsourends,andwhenwehaveanequallyperfectknowledgeoftheends,itthenremains
thatweproceedtoformthosecombinations,bywhichtheendswillbemostadvantageously
produced。Thisisthesyntheticaloperation。
(1。i。17)Itiswellknown,thatneitheroftheseoperationshasasyetbeenperformed,inorder
to
obtainthebestdivisionanddistributionoflabour。Itisequallycertain,thatthisdivisionisstillin
amostimperfectstate。Asfarasithasbeenperformed,ithasbeenperformedpractically,asthey
callit;thatis,inagreatdegree,accidentally;asthefortuitousdiscoveriesofindividuals,
engagedinparticularbranches,enabledthemtoperceivethatinthesebranchesaparticular
advantagewastobegained。Suchimprovementshavealmostalwaysbeenfoundedonsomevery
narrowview;ananalysisandsynthesis,certainly;butincludingasmallnumberofelements,and
thesebutimperfectlyunderstood。Improvements,foundeduponnarrowviews,arealmostalways
equallyconfinedintheirapplication。Thereisnogeneralization。Animprovement,introduced
intoonemachine,oronemanufacture,isoftenlongbeforeitisintroducedintoanother,whereit
wouldbeequallyimportant。Andoneimprovementisstillmoreslowinsuggestinganother,
whichisakintoit;becauseanarrowviewdiscoversnorelations,betweenthethingswhichit
embraces,andthethingswhichitexcludes。
SectionII。Capital(1。ii。1)Wehavealreadyobserved,thatlabourperformsitsoperations,eithersimply,bythe
unaidedpowersofthehumanbody;or,withtheuseofinstruments,whichaugmentnotonlythe
quantity,butoftenalsotheaccuracyandprecisionofitsresults。
(1。ii。2)Asexamplesoftheearliestandsimplestoftheinstruments,contrivedforthis
purpose,
wemaymentionthebowandarrow,andthesling,ofthehuntsman。Thespadeisaninstrument
easilyinventedforturningthesoil;andacertainrudemachine,towhichtheforceofcattlemay
beapplied,andwhichisthefirstformofaplough,suggestsitselfatanearlystageof
improvement。
(1。ii。3)Fromthesebeginningsmenproceed,inventingoneinstrumentafteranother,theaxe,
the
hammer,thesaw,thewheel,thewheel—carriage,andsoon,tilltheyarriveatlastatthatcopious
supplyofcomplicatedmachinerybywhichlabourisrenderedproductiveinthemostartificial
statesofsociety。Theprovisionwhichismadeoftheseinstrumentsisdenominatedcapital。
(1。ii。4)This,however,isnotthewholeofwhatisdenominatedcapital。Labourinitsearliest
stageisnotemployeduponanymaterialsbutsuchasnaturepresents,withoutanypreparationat
thehandsofman。Whenthesavageclimbsthetree,togatherthefruit;whenthehuntsmantears
downthebranch,toformhiscluborhisbow,heoperatesuponmaterials,whicharepreparedfor
himbythehandofnature。Atasubsequentstageintheprogressofindustry,thematerialsupon
whichlabourisemployed,havegenerallybeentheresultofpreviouslabour。Thus,theflaxand
thecotton,whicharetobemanufacturedintoclothandmuslin,havebeentheresultofthe
labourofagriculture;theironhasbeentheresultofthelaboursoftheminerandsmelter,andso
ofotherthings。Thematerials,uponwhichlabouristobeemployed,whentheyhavethusbeen
theresultofpreviouslabour,arealsodenominatedcapital。
(1。ii。5)Whenwespeakoflabour,asoneoftheinstrumentsofproduction,andofcapital,as
the
other,thesetwoconstituents,namely,theinstrumentswhichaidlabour,andthematerialson
whichitisemployed,areallthatcanbecorrectlyincludedintheideaofcapital。Itistruethat
wagesareingeneralincludedunderthatterm。But,inthatsense,labourisalsoincluded;andcan
nolongerbespokenofasaninstrumentofproductionapartfromcapital。Wehavealreadyseen,
that,wheneverlabourisspokenofasaseparate,distinct,instrumentofproduction,theideaof
thesubsistence,orconsumption,ofthelabourer,forwhichwagesisbutanothername,is
includedintheideaofthelabour。
(1。ii。6)HavingthusendeavouredtoannexpreciseideastothetermsCapitalandLabour,a
matteroftheutmostimportanceinthestudyofpoliticaleconomy,andtodistinguishtheir
respectivedepartments,inthebusinessofproduction,itisonlyfurthernecessary,toadvertto
theoriginofcapital,andthelawsofitsaccumulation。
(1。ii。7)Itiseasytodiscover,thatthesource,fromwhichcapitalisultimatelyderived,is
labour。
Production,ofnecessity,beginswiththehands。Therecanbenoinstrumenttillitismade;and
thefirstinstrumenthadnopreviousinstrumenttobemadewith。
(1。ii。8)Thefirstportionofcapital,therefore,wastheresultofpurelabour,withoutthe
co—operationofcapital。
(1。ii。9)Speedily,however,afterthefirstinstrument,whichincreasedtheproductivepowers
of
labour,hadbeenmade,anotherinstrumentwouldbemadetoassistintheformationofit,asa
knife,toaidintheformationofthebow;andthencapital,forthefirsttime,becomestheresult
oflabour,andofcapital,conjoined。
(1。ii。10)Thissubjectistoocleartoneedtobeillustrated,bytracingthemode,inwhich
capital
andlabourcombine,inproducingthearticles,ofwhichcapitaliscomposed,fromthesimplest,
tothemostcomplicated,cases。Itwillbehereafterseen,that,inthemoreartificialandimproved
statesofthebusinessofproduction,averygreatproportionofthewholeofthelabourand
capitalofthecountryisconstantlyemployedintheproductionofthearticles,whichform
capital。
(1。ii。11)Ascapital,fromitssimplest,toitsmostcomplicatedstate,means,something
produced,
forthepurposeofbeingemployed,asthemeanstowardsafurtherproduction;itisevidentlya
resultofwhatiscalledsaving。
(1。ii。12)Withoutsavingtherecouldbenocapital。Ifalllabourwereemployeduponobjects
of
immediateconsumption,allimmediatelyconsumed,suchasthefruit,forwhichthesavage
climbsthetree,noarticleofcapital,noarticletobeemployed,asameanstofurtherproduction,
wouldeverexist。Tothisend,somethingmustbeproduced,whichisnotimmediatelyconsumed;
whichissavedandsetapartforanotherpurpose。
(1。ii。13)Oftheconsequencesofthisfact,all,towhichitisnecessaryheretoadvert,are
sufficientlyobvious。
(1。ii。14)Everyarticle,whichisthussaved,becomesanarticleofcapital。Theaugmentation
of
capital,therefore,iseverywhereexactlyinproportiontothedegreeofsaving;infact,the
amountofthataugmentation,annually,isthesamethingwiththeamountofthesavings,which
areannuallymade。
(1。ii。15)Thelabourandthecapital,whichcombinetotheproductionofacommodity,may
belongbothtooneparty,oroneofthem,maybelongtooneparty,theothertoanother。Thus,
whenthesavage,whokillsadeer,killsitwithhisownbowandarrows,heistheownerbothof
thelabourandofthecapital:whenhekillsitwiththebowandarrowsofanotherman,theoneis
theownerofthelabour,theotherofthecapital。Theman,whocultivateshislittlefarmwithhis
ownlabourandthatofhisfamily,withouttheaidofhiredservants,isownerbothofthecapital
andofthelabour。Theman,whocultivateswithnonebuthiredservants,isownerofthecapital。
Theservantsmaybeconsidered,atleastforthepresentpurpose,asownersofthelabour,though
weshallpresentlyseeunderwhatmodificationthatmeaningistobetaken。
(1。ii。16)Inthissenseoftheterm\"ownersoflabour,\"theparties,concernedabout
production,
aredividedintotwoclasses,thatofcapitalists,therichmenwhosupplythematerialsand
instrumentsofproduction;andthatoftheworkmen,whosupplythelabour。
(1。ii。17)Thesetermsareallsufficientlyfamiliar;butafewobservationsarefurther
necessary,in
order,onthisimportantsubject,topreclude,asfaraspossible,confusionofideas。
(1。ii。18)Thegreatcapitalist,theownerofamanufactory,ifheoperatedwithslavesinstead
of
freelabourers,liketheWestIndiaplanter,wouldberegardedasownerbothofthecapital,and
ofthelabour。Hewouldbeowner,inshort,ofbothinstrumentsofproduction:andthewholeof
theproduce,withoutparticipation,wouldbehisown。
(1。ii。19)Whatisthedifference,inthecaseoftheman,whooperatesbymeansoflabourers
receivingwages?Thelabourer,whoreceiveswages,sellshislabourforaday,aweek,amonth,
orayear,asthecasemaybe。Themanufacturer,whopaysthesewages,buysthelabour,forthe
day,theyear,orwhateverperioditmaybe。Heisequallythereforetheownerofthelabour,with
themanufacturerwhooperateswithslaves。Theonlydifferenceis,inthemodeofpurchasing。
Theowneroftheslavepurchases,atonce,thewholeofthelabour,whichthemancanever
perform:he,whopayswages,purchasesonlysomuchofaman’slabourashecanperformina
day,oranyotherstipulatedtime。Beingequally,however,theownerofthelabour,sopurchased,
astheowneroftheslaveisofthatoftheslave,theproduce,whichistheresultofthislabour,
combinedwithhiscapital,isallequallyhisown。Inthestateofsociety,inwhichweatpresent
exist,itisinthesecircumstancesthatalmostallproductioniseffected:thecapitalististhe
ownerofbothinstrumentsofproduction:andthewholeoftheproduceishis。
(1。ii。20)Thereisadistinctionofcapitalintotwosorts,arisingfromadifferenceinthemode
of
applyingit。Tothisdistinctionassomeconsequencesofimportanceareattached,itisnecessary
thatacorrectideashouldbeattainedofit。
(1。ii。21)Ofthearticles,whereofcapitalconsists,someareofadurablenature,and
contributeto
productionwithoutbeingdestroyed。Ofthisnatureisagreatproportionofthetoolsand
machines,whichareemployedbothinagricultureandmanufactures。Sucharethebuildings
subservienttothevariouskindsofproduction;andsucharealltheotheraccommodations,not
necessarytobeenumerated,whichdonotperishintheusing。Thatportionofcapital,which
comesunderthisdescription,hasbeendenominated\"Fixedcapital。\"
(1。ii。22)Thereisanotherportionofthearticles,subservienttoproduction,whichdoperish
in
theusing。Suchareallthetoolswornoutinonesetofoperations,allthearticles,which
contributetoproductiononlybytheirconsumption,ascoals,oil,thedyestuffsofthedyer,the
seedofthefarmer,andsoon。Ofthisnature,also,aretherawmaterialsworkedupinthe
finishedmanufacture。Thewooloftheclothierisconsumedinthemakingofhiscloth,the
cottonofthecottonmanufacturerinmakinghismuslins。Underthesameheadmustbeincluded
theexpenceofrepairingandkeepinginorderthemoredurablearticlesoffixedcapital。The
distinctivecharacterofallthisportionofcapitalis,thatitisnecessarilyconsumed,in
contributingtoproduction,andthatitmustbereproduced,inordertoenabletheproducerto
continuehisoperations。Thishasbeendenominated\"circulating\"capital;butbyavery
inappropriateappellation。Thereisnothinginitsconsumptionandreproductionwhichbears
muchresemblancetocirculation。Itwouldbemuchbettertocallit\"reproduced\"capital,
althoughtheword\"reproduced,\"beingapastandnotafutureparticiple,isnotunexceptionable;
itiscapitalwhichconstantlyneedstobereproduced,because,incontributingtoproduction,itis
constantlyconsumed。
(1。ii。23)Thereisanotherthing,whichisalsoconstantlyconsumed,andconstantlyneedsto
be
reproduced,andthatis,thesubsistence,orconsumption,orwagesofthelabourer;andthat,
equally,whetherthelabourersuppliesittohimself,orreceivesitfromthecapitalist,inthe
shapeofwages;thatis,pay,inadvance,forhislabour。Inthislattershape,beingadvancedby
thecapitalistoutofthosefunds,whichwouldotherwisehaveconstitutedcapitalinthe
distinctivesenseoftheword,andbeingconsideredasyieldingthesameadvantage,itis
uniformlyspokenofunderthenameofcapital,andaconfusionofideasissometimesthe
consequence。
(1。ii。24)Whenalltheseitemsareincluded,itisobvious,thataverygreatproportionofthe
consumptionandproduction,ofeverycountry,takesplaceforthesakeofreproduction。Thisisa
highlyimportantfact,ofwhichtheconsequenceswillhereafteroccurformoreparticular
consideration。
(1。ii。25)Itfollows,necessarily,iftheinstrumentsoflabour,thematerialsonwhichitis
employed,andthesubsistenceofthelabourer,areallincludedunderthenameofcapital,that
theproductiveindustryofeverycountryisinproportiontoitscapital;increaseswhenitscapital
increases;anddeclineswhenitdeclines。Iftheinstrumentsoflabour,thematerialstowork
upon,andthepayofworkmen,areallincreased,thequantityofworkwillbeincreased,
providedmoreworkmencanbeobtained。Ifmoreworkmencannotbeobtained,twothingswill
happen:First,wageswillberaised;which,givinganimpulsetopopulation,willincreasethe
numberoflabourers:Secondly,thescarcityofhandswillwhettheingenuityofcapitaliststo
supplythedeficiency,bynewinventionsinmachinery,andbydistributinganddividinglabour
togreateradvantage。
Chapter2。Distribution(2。1)Wehaveseenthattwoclassesofpersonsareconcernedinproduction;Labourers,and
Capitalists。Eachoftheseclassesmusthaveitsshareofthecommoditiesproduced:or,which
comestothesamething,ofthebenefitderivedfromthem。WhentheLandisoneofthe
instrumentsofproduction,anotherpartycomesinforaportion;Imean,theOwnersoftheLand。
Andthesethreeclasses;thelabourers,thecapitalists,andthelandlords;immediatelyshare,that
is,divideamongthem,thewholeoftheannualproduceofthecountry。
(2。2)Whenthepartiesaredetermined,amongwhomthewholeoftheproduceisdistributed,
it
remainstobeascertained,bywhatlawstheproportionsareestablished,accordingtowhichthe
divisionismade。WeshallbeginwiththeexplanationofRent,orthesharereceivedby
Landlords;asitisthemostsimple,andwillfacilitatetheexplanationofthelaws,uponwhich
theshares,oftheLabourers,andoftheCapitalists,depend。
SectionI。Rent(2。i。1)Landisofdifferentdegreesoffertility。Thereisaspeciesofland,theelevatedor
stony
parts,forexample,ofhighmountains,loosesand,andcertainmarshes,whichmaybesaidto
producenothing。Betweenthisandthemostproductivesort,therearelandsofallthe
intermediatedegreesoffertility。
(2。i。2)Again;lands,ofthehighestfertility,donotyieldthewholeofwhattheyarecapable
of
yielding,withthesamefacility。Apieceofland,forexample,maybecapableofyielding
annuallytenquartersofcorn,ortwiceten,orthreetimesten,Ityields,however,thefirstten,
withacertainquantityoflabour,thesecondten,notwithoutagreater,thethirdten,notwithout
agreaterstill,andsoon;everyadditionaltenrequiringtoitsproductionagreatercostthanthe
tenwhichprecededit。Thisiswellknowntobethelaw,accordingtowhich,byagreater
expenditureofcapital,agreaterproduceisobtained,fromthesameportionofland。
(2。i。3)Tillthewholeofthebestlandisbroughtundercultivation,andtillithasreceivedthe
applicationofacertainquantityofcapital,allthecapitalemployeduponthelandisemployed
withanequalreturn。Atacertainpoint,however,noadditionalcapitalcanbeemployedupon
thesameland,withoutadiminutionofreturn。Inanycountry,therefore,afteracertainquantity
ofcornhasbeenraised,nogreaterquantitycanberaised,butatagreatercost。Ifsuchadditional
quantityisraised,thecapital,employedupontheland,maybedistinguishedinto,twoportions;
one,producingahigher;another,alowerreturn。
(2。i。4)Whencapitalproducingalowerreturnisappliedtotheland,itisappliedinoneof
two
ways。Itiseitherappliedtonewlandoftheseconddegreeoffertility,thenforthefirsttime
broughtundercultivation;oritisappliedtolandofthefirstdegreeoffertility,whichhasalready
receivedallthecapitalwhichcanbeappliedwithoutadiminutionofreturn。
(2。i。5)Whethercapitalshallbeappliedtolandoftheseconddegreeoffertility,orina
second
dosetothelandofthefirstdegreeoffertility,willdepend,ineachinstance,uponthenatureand
qualitiesofthetwosoils。Ifthesamecapitalwhichwillproduceonlyeightquarters,when
appliedinaseconddosetothebestland,willproduceninequarters,whenappliedtolandofthe
seconddegreeoffertility,itwillbeappliedtothatland,andviceversa(2。i。6)Thelandofthedifferentdegreesoffertility;first,orhighestsort;second,ornext
highest,
andsoon,may,forfacilityofreference,bedenominated,No。1,No。2,No。3,&;c。Inlike
manner,thedifferentdosesofcapital,whichmaybeappliedtothesameland,oneafteranother,
withlessandlesseffect,maybedenominated1stdose,2ddose,3ddose,andsoon。
(2。i。7)Solongaslandproducesnothing,itisnotworthappropriating。Solongasapartonly
of
thebestlandisrequiredforcultivation,allthatisuncultivatedyieldsnothing;thatis,nothing
whichhasanyvalue。Itnaturally,therefore,remainsunappropriated;andanymanmayhaveit,
whoundertakestorenderitproductive。
(2。i。8)Duringthistime,land,speakingcorrectly,yieldsnorent。Thereisadifference,no
doubt,
betweenthelandwhichhasbeencultivated,andthelandwhichisyetunclearedforcultivation。
Ratherthanclearthefreshland,amanwillpayanequivalent,annual,orotherwise,forthecost
ofclearing:anditisevidentthathewillpaynomore。This,therefore,isnotapaymentforthe
powerofthesoil,butsimplyforthecapitalbestoweduponthesoil。Itisnotrent;itisinterest。
(2。i。9)Thetime,however,arrives,aspopulation,andthedemandforfoodincrease,whenit
is
necessaryeithertohaverecoursetolandofthesecondquality,ortoapplyaseconddoseof
capital,lessproductively,uponlandofthefirstquality。
(2。i。10)Ifamancultivateslandofthesecondquality;uponwhichacertainquantityof
capital
willproduceonlyeightquartersofcorn,whilethesamequantityofcapitaluponlandofthefirst
qualitywillproducetenquarters;itwillmakenodifferencetohim,whetherhepaytwoquarters
forleavetocultivatethefirstsort,orcultivatethesecondwithoutanypayment。Hewill
thereforebecontenttopaytwoquartersforleavetocultivatethefirstsort;andthatpayment
constitutesrent。
(2。i。11)Letussuppose,again,thatinsteadofcultivatinglandofthesecondquality,itis
more
advisabletoapplyaseconddoseofcapitaltolandofthefirstquality;andthat,whilethefirst
doseproducestenquarters,thesecond,ofequalamount,willproduceonlyeightquarters;itis
equallyimpliedinthis,asilltheformercase,thatitisimpossibletoemployanymorecapital
withsogreataneffectasthetensupposedquarters,andthattherearepersonswhoarewillingto
applyitwithsolittleareturnaseight。Butiftherearepersonswhoarewillingtoapplytheir
capitalonthelandwithsolittleareturnaseightquarters,theownersofthelandmaymakea
bargain,bywhichtheywillobtainallthatisproducedaboveeight。Theeffectuponrentisthus
thesameinbothcases。
(2。i。12)Itfollowsthatrentincreasesinproportionastheproductivepowerofthecapital,
successivelybestowedupontheland,decreases。Ifpopulationhasarrivedatanotherstage,when,
allthelandofsecondqualitybeingcultivated,itisnecessarytohaverecoursetolandofthird
quality,yielding,insteadofeightquarters,onlysix,itisevident,fromthesameprocessof
reasoningthatthelandofsecondqualitywillnowyieldrent,namely,twoquarters;andthatland
offirstqualitywillyieldanaugmentedrent,namely,twoquartersmore。Thecasewillbeexactly
thesame,if,insteadofhavingrecoursetolandoflessfertility,asecondandathirddoseof
capital,withthesamediminutionofproduce,arebestoweduponlandofthefirstquality。
(2。i。13)Wemaythusobtainageneralexpressionforrent。Inapplyingcapital,eithertolands
of
variousdegreesoffertility,or,insuccessivedoses,tothesameland,someportionsofthecapital
soemployedareattendedwithagreaterproduce,somewithaless。Thatwhichyieldstheleast,
yieldsallthatisnecessaryforreimbursingandrewardingthecapitalist。Thecapitalistwill
receivenomorethanthisremunerationforanyportionofthecapitalwhichheemploys,because
thecompetitionofotherswillpreventhim。Allthatisyieldedabovethisremuneration,the
landlordwillbeabletoappropriate。Rent,therefore,isthedifferencebetweenthereturnmade
tothemoreproductiveportions,andthatwhichismadetotheleastproductiveportion,of
capital,employedupontheland。
(2。i。14)Taking,forillustration,thethreecases,Oftenquarters,eightquarters,andsix
quarters,
weperceive,thatrentisthedifferencebetweensixquartersandeightquartersfortheportionof
capitalwhichyieldsonlyeightquarters;thedifferencebetweensixquartersandtenquartersfor
theportionofcapitalwhichyieldstenquarters;andifthreedosesofcapital,oneyieldingten,
anothereight,andanothersixquarters,areappliedtothesameportionofland,itsrentwillbe
fourquartersfordoseNo。1,andtwoquartersfordoseNo。2,makingtogethersixquartersfor
thewhole。
(2。i。15)Iftheseconclusionsarewellsupported,thedoctrineofrentissimple,andthe
consequences,asweshallseehereafter,areexceedinglyimportant。Thereisbutoneobjection,
whichitseemspossibletomaketothem。Itmaybesaid,that,afterlandisappropriated,thereis
noportionofitwhichdoesnotpayrent,noownerbeingdisposedtogivetheuseofitfor
nothing。Thisobjectionhas,indeed,beenraised;andithasbeenurged,thatsomerentispaid
evenforthemostbarrenoftheScottishmountains。
(2。i。16)Ifanobjectionistaken,itaffectstheconclusion,eithertoamaterial,ortoan
immaterial
extent……Wherethematterallegedinobjection,evenifadmitted,wouldstillleavetheconclusion
substantially,andtoallpracticalpurposes,true,theobjectionmustbeowingtooneoftwo
defectsinthemindoftheobjector;eitheraconfusionofideas,whichpreventshimfromseeing
tohowsmalladegreethematterwhichheallegesaffectsthedoctrinewhichhedenies;ora
dispositiontoevadetheadmissionofthedoctrine,eventhoughnothingsolidcanbefoundwith
whichtoopposeit。
(2。i。17)Thatthematteralledgedinthisobjection,evenifallowed,wouldleavethe
conclusion,
toallpracticalpurposes,justwhereitwas,canhardlyfailtobeacknowledged,assoonasthe
circumstancesaredisclosed。Itcannotbesomuchaspretendedthattherentpaidforthebarren
mountainsofScotlandisanythingbutatrifle;anevanescentquantity,whenwespeakofany
moderateextent。Ifitwere5l。forathousandacres,thatis,aboutonepennyperacre,itwould
bearsosmallaproportiontothecostofcultivation,whichcouldnotbelessthanseveralpounds
peracre,thatitwouldlittleaffectthetruthoftheconclusionwehaveendeavouredtoestablish。
(2。i。18)Letussuppose,forthesakeoftheargument,thattheworstspeciesoflandunder
cultivationpaysonepennyperacre:rent,inthatcase,wouldbethedifferencebetweenthe
produceresultingfromdifferentportionsofcapital,asexplainedabove,withthecorrection
requiredonaccountofthepennyperacrepaidasrentfortheworstspeciesoflandunder
cultivation。Assuredly,ifrightineveryotherrespect,weshallnotbefarwronginour
conclusions,byleavingthispennyoutofthequestion。Averyslightadvantage,insimplifying
ourlanguageonthesubject,wouldjustifythisomission。
(2。i。19)Butitisnottrue,thatourconclusionsstandinneedofanysuchcorrection,evenfor
metaphysicalexactness。Thereisland,suchasthesandsofArabia,whichyieldsnothing。Landis
foundatalltheintermediatestagesfromthistothehighestfertility。Someland,thoughnot
absolutelyincapableofyieldinganythingfortheaccommodationofman,couldnotbemadeto
yieldwhatwouldmaintainthelabourersrequiredforitscultivation。Thislandcanneverbe
cultivated。Thereisland,theannualproduceofwhichwouldjustmaintainthelabournecessary
foritscultivation,andnomore。Thislandisjustcapableofbeingcultivated,butobviously
incapableofpayingrent。Theobjection,therefore,isnotonlypracticallyimmaterial,itis
metaphysicallyunsound。
(2。i。20)Itmaybesafelyaffirmed,thatthereisnocountry,ofanyconsiderableextent,in
which
thereisnotlandincapableofyieldingrent:thatis,incapableofyieldingtohumanlabourmore
thanwouldbenecessaryforthemaintenanceofthatlabour。Thatsuch,atleast,isthecaseinthis
country,seemsveryunlikelytobedisputed。Therearepartsofitsmountainswherenothingless
hardythanheath,otherswherenothingbutmoss,canvegetate。Whenitisassertedthatevery
partofthemountainsofScotlandpaysrent,thestateofthefactsismisunderstood。Itisonlytrue
thatthereisnotenantofanyportionofanyman’sestateinthehighlandsofScotland,whodoes
notpayrent。Thereasonis,becauseeveninthemountainsofScotlandtherearespotsinthe
valleys,theproduceofwhichisconsiderable。Itdoesnotfollow,thoughhundredsofacresof
mountainareaddedtothesevalleys,thatthereforeeverypartofthemountainyieldsrent;itis
certainthatmanypartsneitherdonorcan。
(2。i。21)Evenwherethelandisnotabsolutelybarren,andwherethereisstillsomethingfor
the
morehardyoftheusefulanimalstopickup,itisnottobeallowedthatrentisthenecessary
consequence。Itoughttoberemembered,thatthesecattlearecapital,andthatthelandmust
affordenoughnotonlytomakethereturnforthatcapital,buttopayforthetendanceofthe
cattle,ofwhich,insuchsituations,especiallyinwinter,notalittleisrequired。Unlesstheland
yieldsallthis,andsomethingmore,itcannotyieldanyrent。
(2。i。22)Inthegreaterpartofthisisland,thereishardlyafarm,ofanyconsiderableextent,
which
doesnotcontainland,someofmore,someoflessfertility,varyingfromahighormoderate
degreeoffertility,downtolandwhichyieldsnotenoughtoaffordanyrent。OfcourseIdonot
requestadmissiontothisaffirmationuponmyauthority;Irestituponanappealtothe
experienceofthosemenwhoambestacquaintedwiththecircumstances。Ifthestateofthefacts
correspondswiththeaffirmation,itfollowsdemonstratively,thatthelastportionoftheland
whichisplacedundercultivationyieldsnorent。Insuchfarmsasthosewehavenowdescribed,
thetenanthasbargainedforacertainsumtothelandlord。That,ofcourse,wascalculated,upon
theproduceofthelandwhichyieldednotonlytheproperreturnforthecapitalwithwhichitwas
cultivated,butsomethingmore。Asthemotiveofthetenanttocultivateiswhollyconstitutedby
theproperreturntohiscapital,ifthereisanyportionofthebarrenland,includedinhisfarm,
whichwilljustyieldtheprofitofstock,andnomore;thoughitwillnotaffordanythingforrent,
itaffordstohimtheadequatemotiveforcultivation。Itcanhardlybedeniedthat,inthe
insensibledegreesbywhichlanddeclinesfromgreatertolessfertility,therewill,inall
considerablefarms,begenerallyfoundaportionwiththisparticulardegreeandnomore。
(2。i。23)Theconclusion,however,maybeestablished,bytheclearestevidence,without
regardto
thequestion,whetheralllandpaysordoesnotpayrent。Onlandwhichpaysthehighestrent,we
haveseenthatcapital,appliedinsuccessivedoses,isnotattendedwithequalresults。Thefirst
doseyieldsmore,possiblymuchmore,thanthereturnforthecapital。Thesecondalsomayyield
more,andsoon。Therent,ifaccuratelycalculated,willbeequaltoallthatisrenderedbythose
severaldoses,overandabovetheprofitsofstock。Thecultivator,ofcourse,appliesallthose
severaldosesofcapitalonwhichhehasagreedtopayrent。Butimmediatelyafterthemcomes
anotherdose,whichthoughityieldsnothingforrent,mayfullyyieldtheordinaryprofitsof
stock。Itisfortheprofitsofstock,andthemalone,thatthefarmercultivates。Aslong,therefore,
ascapitalappliedtohisfarmwillyieldtheordinaryprofitsofstock,hewillapplycapital,ifhe
hasit。Ithereforeconclude,withassurance,thatinthenaturalstateofthings,inevery
agriculturalcountry,oneportionofthecapitalemployeduponthelandpaysnorent;thatrent,
therefore,consistswholly,ofthatproducewhichisyieldedbythemoreproductiveportionsof
capital,overandaboveaquantityequaltothatwhichconstitutesthereturntotheleast
productiveportion,andwhichmustbereceived,toaffordhisrequisiteprofits,bythefarmer。
SectionII。Wages(2。ii。1)Productionisperformedbylabour。Labour,however,receivestherawmaterial
whichit
fashions,andthemachinerybywhichitisaided,fromcapital,ormoreproperlyspeaking,these
articlesarethecapital。
(2。ii。2)Thelabourerissometimestheownerofallthecapitalwhichhislabourrequires。The
shoemakerortailorhas,sometimes,notonlythetoolswithwhichheworks,butalsotheleather
orclothuponwhichhislabourisemployed。Inallcasesofthatdescription,thecommodityis
whollythepropertyofthemanbywhoselabouritisprepared。
(2。ii。3)Inthegreaternumberofcases,however,especiallyinthemoreimprovedstagesof
society,thelabourerisoneperson,theownerofthecapitalanother。Thelabourerhasneither
rawmaterialnortools。Theserequisitesareprovidedforhimbythecapitalist。Formakingthis
provision,thecapitalist,ofcourse,expectsareward。Asthecommodity,whichwasproducedby
theshoemaker,whenthecapitalwashisown,belongedwhollytohimself,andconstitutedthe
wholeofhisreward,bothaslabourerandcapitalist,so,inthiscase,thecommoditybelongsto
thelabourerandcapitalisttogether。Whenprepared,thecommodity,orthevalueofit,istobe
sharedbetweenthem。Therewardtobothmustbederivedfromthecommodity,andthereward
ofbothmakesupthewholeofthecommodity。
(2。ii。4)Instead,however,ofwaitingtillthecommodityisproduced,andabidingallthedelay
anduncertaintiesofthemarketinwhichthevalueofitisrealized,ithasbeenfoundtosuit
muchbettertheconvenienceofthelabourerstoreceivetheirshareinadvance。Theshapeunder
whichithasbeenfoundmostconvenientforallpartiesthattheyshouldreceiveit,isthatof
wages。Whenthatshareofthecommodity,whichbelongstothelabourer,hasbeenallreceived
intheshapeofwages,thecommodityitselfbelongstothecapitalist,hehaving,inreality,bought
theshareorthelabourerandpaidforitinadvance。
1。Thattherateofwagesdependsontheproportionbetween
Population,andEmployment,inotherwords,Capital(2。ii。5)Wecomenowtothequestionastowhatdeterminestheshareofthelabourer,orthe
proportioninwhichthecommodity,oritsworth,isdividedbetweenhimandthecapitalist。
Whatevertheshareofthelabourer,suchistherateofwages;and,viceversawhatevertherate
ofwages,suchistheshareofthecommodity,orcommodity’sworth,whichthelabourer
receives。