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。