No More Learning

_ But will he be able now to purchase the machine at the
former price? will not its value be increased, in consequence of the
rise of labour? It would be increased, if there were no stock employed
in its construction, and no profits to be paid to the maker of it. If,
for example, the machine were produced by 100 men working one year upon
it with wages of 50_l. _ each, and its price were 5000_l. _, should those
wages rise to 55_l. _ its price would be 5500_l. _: but this cannot be the
case; less than 100 men are employed, or it could not be sold for
5000_l. _; for out of the 5000_l. _ must be paid the profits of the stock
which employed the men. Suppose then that only eighty-five men were
employed at an expense of 4250_l. _ per annum, and that the 750_l. _,
which the sale of the machine would produce over and above the wages
advanced to the men, constituted the profits of the engineer's stock.
When wages rose 10 per cent. , he would be obliged to employ an
additional capital of 425_l. _, and would therefore employ 4675_l. _,
instead of 4250_l. _, on which capital he would only get a profit of
325_l. _ if he continued to sell his machine for 5000_l. _; but this is
precisely the case of all manufacturers and capitalists; the rise of
wages affects them all. If therefore the maker of the machine should
raise the price of his machine in consequence of a rise of wages, an
unusual quantity of capital would be employed in the construction of
such machines, till their price afforded only the usual profits. The
manufacturer of hats, by the employment of the machine, if he sells his
hats for 8000_l. _, is precisely in the same situation as before; he
employs no more capital, and obtains the same profits. The competition
of trade would not long allow this; for as capital would flow to the
most profitable employment, he would be obliged to lower the price of
hats, till his profits had sunk to the general level. Thus then is the
public benefited by machinery: these mute agents are always the produce
of much less labour than that which they displace, even when they are
of the same money value. Through their influence, an increase in the
price of provisions which raises wages, will affect fewer persons: it
will reach, as in the above instance, eighty-five men instead of a
hundred; and the saving which is the consequence, shews itself in the
reduced price of the commodity manufactured. Neither machines nor any
other commodities are raised in price, but all commodities which are
made by machines fall, and fall in proportion to their durability.

It appears, then, that in proportion to the quantity and the durability
of the fixed capital employed in any kind of production, the relative
prices of those commodities on which such capital is employed, will vary
inversely as wages; they will fall as wages rise. It appears too that no
commodities whatever are raised in absolute price, merely because wages
rise; that they never rise unless additional labour be bestowed on them;
but that all commodities in the production of which fixed capital
enters, not only do not rise with a rise of wages, but absolutely fall;
fall too as much as 68 per cent. , with a rise of seven per cent. in
wages, if fixed capital be exclusively employed, and be of the duration
of 100 years.

The above statement, which asserts the compatibility of a rise of wages,
with a fall of prices, has, I know, the disadvantage of novelty, and
must trust to its own merits for advocates; whilst it has for its
opponents, writers of distinguished and deserved reputation. It should
however be carefully remembered, that in this whole argument I am
supposing money to be of an invariable value; in other words, to be
always the produce of the same quantity of unassisted labour. Money,
however, is a variable commodity; and the rise of wages as well as of
commodities, is frequently occasioned by a fall in the value of money. A
rise of wages from this cause will indeed be invariably accompanied by a
rise in the price of commodities: but in such cases, it will be found
that labour and all commodities have not varied in regard to each other,
and that the variation has been confined to money.

Money, from its being a commodity obtained from a foreign country, from
its being the general medium of exchange between all civilized
countries, and from its being also distributed among those countries in
proportions which are ever changing with every improvement in commerce
and machinery, and with every increasing difficulty of obtaining food
and necessaries for an increasing population, is subject to incessant
variations. In stating the principles which regulate exchangeable value
and price, we should carefully distinguish between those variations
which belong to the commodity itself, and those which are occasioned by
a variation in the medium in which value is estimated, or price
expressed.

A rise in wages, from an alteration in the value of money, produces a
general effect on price, and for that reason it produces no real effect
whatever on profits. On the contrary, a rise of wages, from the
circumstance of the labourer being more liberally rewarded, or from a
difficulty of procuring the necessaries on which wages are expended,
does not produce the effect of raising price, but has a great effect in
lowering profits. In the one case, no greater proportion of the annual
labour of the country is devoted to the support of the labourers, in the
other case, a larger portion is so devoted.

It is according to the division of the whole produce of the land and
labour of the country, between the three classes of landlords,
capitalists, and labourers, that we are to judge of rent, profit, and
wages, and not according to the value at which that produce may be
estimated in a medium which is confessedly variable.

It is not by the absolute quantity of produce obtained by either class,
that we can correctly judge of the rate of profit, rent, and wages, but
by the quantity of labour required to obtain that produce. By
improvements in machinery and agriculture, the whole produce may be
doubled; but if wages, rent, and profit, be also doubled, these three
will bear the same proportions to one another, and neither could be said
to have relatively varied. But if wages partook not of the whole of this
increase; if they, instead of being doubled, were only increased one
half, if rent, instead of being doubled, were only increased
three-fourths, and the remaining increase went to profit, it would, I
apprehend, be correct for me to say, that rent and wages had fallen,
while profits had risen; for if we had an invariable standard, by which
to measure the value of this produce, we should find that a less value
had fallen to the class of labourers and landlords, and a greater to the
class of capitalists, than had been given before. We might find for
example, that though the absolute quantity of commodities had been
doubled, they were the produce of precisely the former quantity of
labour. Of every hundred hats, coats, and quarters of corn produced,

if the labourers had 25
The landlords 25
And the capitalists 50
---
100

And if, after these commodities were doubled in quantity, of every 100

The labourers had only 22
The landlords 22
And the capitalists 56
---
100

In that case I should say, that wages and rent had fallen, and profits
risen; though in consequence of the abundance of commodities, the
quantity paid to the labourer and landlord would have increased in the
proportion of 25 to 44. Wages are to be estimated by their real value,
viz. by the quantity of labour and capital employed in producing them,
and not by their nominal value either in coats, hats, money, or corn.
Under the circumstances I have just supposed, commodities would have
fallen to half their former value; and, if money had not varied, to half
their former price also. If then in this medium, which had not varied in
value, the wages of the labourer should be found to have fallen, it will
not the less be a real fall, because they might furnish him with a
greater quantity of cheap commodities, than his former wages.

The variation in the value of money, however great, makes no difference
in the _rate_ of profits; for suppose the goods of the manufacturer to
rise from 1000_l. _ to 2000_l. _, or 100 per cent. , if his capital, on
which the variations of money have as much effect as on the value of
produce, if his machinery, buildings, and stock in trade rise more than
100 per cent. , his rate of profits has fallen, and he has a
proportionably less quantity of the produce of the labour of the country
at his command.

If, with capital of a given value, he double the quantity of produce,
its value falls one half, and then it will bear the same proportion to
the capital which produced it, as it did before.

If at the same time that he doubles the quantity of produce by the
employment of the same capital, the value of money is by any accident
lowered one half, the produce will sell for twice the money value that
it did before; but the capital employed to produce it, will also be of
twice its former money value; and therefore in this case too, the value
of the produce will bear the same proportion to the value of the capital
as it did before; and although the produce be doubled, rent, wages, and
profits will only vary as the proportions vary, in which this double
produce may be divided among the three classes that share it.

It appears then that the accumulation of capital, by occasioning
different proportions of fixed and circulating capital to be employed
in different trades, and by giving different degrees of durability to
such fixed capital, introduces a considerable modification to the rule,
which is of universal application in the early states of society.

Commodities, though they continue to rise and fall, in proportion as
more or less labour is necessary to their production, are also affected
in their relative value by a rise or fall of profits, since equal
profits may be derived from goods which sell for 2,000_l. _ and from
those which sell for 10,000_l. _; and consequently the variations of
those profits, independently of any increased or diminished quantity of
labour required for the goods in question, must affect their prices in
different proportions.

It appears too, that commodities may be lowered in value in consequence
of a real rise of wages, but they never can be raised from that cause.
On the other hand, they may rise from a fall of wages, as they then lose
the peculiar advantages of production, which high wages afforded them.




CHAPTER II.

ON RENT.


It remains however to be considered, whether the appropriation of land,
and the consequent creation of rent, will occasion any variation in the
relative value of commodities, independently of the quantity of labour
necessary to production. In order to understand this part of the
subject, we must inquire into the nature of rent, and the laws by which
its rise or fall is regulated. Rent is that portion of the produce of
the earth, which is paid to the landlord for the use of the original and
indestructible powers of the soil. It is often however confounded with
the interest and profit of capital, and in popular language the term is
applied to whatever is annually paid by a farmer to his landlord. If,
of two adjoining farms of the same extent, and of the same natural
fertility, one had all the conveniences of farming buildings, were,
besides, properly drained and manured, and advantageously divided by
hedges, fences, and walls, while the other had none of these advantages,
more remuneration would naturally be paid for the use of one, than for
the use of the other; yet in both cases this remuneration would be
called rent. But it is evident, that a portion only of the money
annually to be paid for the improved farm, would be given for the
original and indestructible powers of the soil; the other portion would
be paid for the use of the capital which had been employed in
ameliorating the quality of the land, and in erecting such buildings as
were necessary to secure and preserve the produce. Adam Smith sometimes
speaks of rent, in the strict sense to which I am desirous of confining
it, but more often in the popular sense, in which the term is usually
employed. He tells us, that the demand for timber, and its consequent
high price, in the more southern countries of Europe, caused a rent to
be paid for forests in Norway, which could before afford no rent. Is it
not however evident, that the person who paid, what he thus calls rent,
paid it in consideration of the valuable commodity which was then
standing on the land, and that he actually repaid himself with a profit,
by the sale of the timber? If, indeed, after the timber was removed, any
compensation were paid to the landlord for the use of the land, for the
purpose of growing timber or any other produce, with a view to future
demand, such compensation might justly be called rent, because it would
be paid for the productive powers of the land; but in the case stated by
Adam Smith, the compensation was paid for the liberty of removing and
selling the timber, and not for the liberty of growing it. He speaks
also of the rent of coal mines, and of stone quarries, to which the same
observation applies--that the compensation given for the mine or quarry,
is paid for the value of the coal or stone which can be removed from
them, and has no connexion with the original and indestructible powers
of the land. This is a distinction of great importance, in an inquiry
concerning rent and profits; for it is found, that the laws which
regulate the progress of rent, are widely different from those which
regulate the progress of profits, and seldom operate in the same
direction. In all improved countries, that which is annually paid to the
landlord, partaking of both characters, rent and profit, is sometimes
kept stationary by the effects of opposing causes, at other times
advances or recedes, as one or other of these causes preponderates. In
the future pages of this work, then, whenever I speak of the rent of
land, I wish to be understood as speaking of that compensation, which is
paid to the owner of land for the use of its original and indestructible
powers.

On the first settling of a country, in which there is an abundance of
rich and fertile land, a very small proportion of which is required to
be cultivated for the support of the actual population, or indeed can be
cultivated with the capital which the population can command, there will
be no rent; for no one would pay for the use of land, when there was an
abundant quantity not yet appropriated, and therefore at the disposal of
whosoever might choose to cultivate it.

On the common principles of supply and demand, no rent could be paid for
such land, for the reason stated, why nothing is given for the use of
air and water, or for any other of the gifts of nature which exist in
boundless quantity. With a given quantity of materials, and with the
assistance of the pressure of the atmosphere, and the elasticity of
steam, engines may perform work, and abridge human labour to a very
great extent; but no charge is made for the use of these natural aids,
because they are inexhaustible, and at every man's disposal. In the same
manner the brewer, the distiller, the dyer, make incessant use of the
air and water for the production of their commodities; but as the supply
is boundless, it bears no price. [5] If all land had the same
properties, if it were boundless in quantity, and uniform in quality, no
charge could be made for its use, unless where it possessed peculiar
advantages of situation. It is only then because land is of different
qualities with respect to its productive powers, and because in the
progress of population, land of an inferior quality, or less
advantageously situated, is called into cultivation, that rent is ever
paid for the use of it. When, in the progress of society, land of the
second degree of fertility is taken into cultivation, rent immediately
commences on that of the first quality, and the amount of that rent will
depend on the difference in the quality of these two portions of land.

When land of the third quality is taken into cultivation, rent
immediately commences on the second, and it is regulated as before, by
the difference in their productive powers. At the same time, the rent of
the first quality will rise, for that must always be above the rent of
the second, by the difference between the produce which they yield with
a given quantity of capital and labour. With every step in the progress
of population, which shall oblige a country to have recourse to land of
a worse quality, to enable it to raise its supply of food, rent, on all
the more fertile land, will rise.

Thus suppose land--No. 1, 2, 3,--to yield, with an equal employment of
capital and labour, a net produce of 100, 90, and 80 quarters of corn.
In a new country, where there is an abundance of fertile land compared
with the population, and where therefore it is only necessary to
cultivate No. 1, the whole net produce will belong to the cultivator,
and will be the profits of the stock which he advances. As soon as
population had so far increased as to make it necessary to cultivate No.
2, from which ninety quarters only can be obtained after supporting the
labourers, rent would commence on No. 1; for either there must be two
rates of profit on agricultural capital, or ten quarters, or the value
of ten quarters must be withdrawn from the produce of No. 1, for some
other purpose. Whether the proprietor of the land, or any other person,
cultivated No. 1, these ten quarters would equally constitute rent; for
the cultivator of No. 2 would get the same result with his capital,
whether he cultivated No. 1, paying ten quarters for rent, or continued
to cultivate No. 2, paying no rent. In the same manner it might be shewn
that when No. 3 is brought into cultivation, the rent of No. 2 must be
ten quarters, or the value of ten quarters, whilst the rent of No. 1
would rise to twenty quarters; for the cultivator of No. 3 would have
the same profits whether he paid twenty quarters for the rent of No. 1,
ten quarters for the rent of No. 2, or cultivated No. 3 free of all
rent.

It often, and indeed commonly happens that before No. 2, 3, 4, or 5, or
the inferior lands are cultivated, capital can be employed more
productively on those lands which are already in cultivation. It may
perhaps be found, that by doubling the original capital employed on No.
1, though the produce will not be doubled, will not be increased by 100
quarters, it may be increased by eighty-five quarters, and that this
quantity exceeds what could be obtained by employing the same capital on
land, No. 3.

In such case, capital will be preferably employed on the old land, and
will equally create a rent; for rent is always the difference between
the produce obtained by the employment of two equal quantities of
capital and labour. If with a capital of 1000_l. _ a tenant obtain 100
quarters of wheat from his land, and by the employment of a second
capital of 1000_l. _, he obtain a further return of eighty-five, his
landlord would have the power at the expiration of his lease, of
obliging him to pay fifteen quarters, or an equivalent value, for
additional rent; for there cannot be two rates of profit. If he is
satisfied with a diminution of fifteen quarters in the return for his
second 1000_l. _, it is because no employment more profitable can be
found for it. The common rate of profit would be in that proportion, and
if the original tenant refused, some other person would be found willing
to give all which exceeded that rate of profit to the owner of the land
from which he derived it.

In this case, as well as in the other, the capital last employed pays no
rent. For the greater productive powers of the first 1000_l. _, fifteen
quarters is paid for rent, for the employment of the second 1000_l. _ no
rent whatever is paid. If a third 1000_l. _ be employed on the same land,
with a return of seventy-five quarters, rent will then be paid for the
second 1000_l. _ and will be equal to the difference between the produce
of these two, or ten quarters; and at the same time the rent of the
first 1000_l. _ will rise from fifteen to twenty-five quarters; while the
last 1000_l. _ will pay no rent whatever.

If then good land existed in a quantity much more abundant than the
production of food for an increasing population required, or if capital
could be indefinitely employed without a diminished return on the old
land, there could be no rise of rent; for rent invariably proceeds from
the employment of an additional quantity of labour with a proportionally
less return.

The most fertile, and most favourably situated land will be first
cultivated, and the exchangeable value of its produce will be adjusted
in the same manner as the exchangeable value of all other commodities,
by the total quantity of labour necessary in various forms, from first
to last, to produce it, and bring it to market. When land of an inferior
quality is taken into cultivation, the exchangeable value of raw produce
will rise, because more labour is required to produce it.

The exchangeable value of all commodities, whether they be manufactured,
or the produce of the mines, or the produce of land, is always
regulated, not by the less quantity of labour that will suffice for
their production under circumstances highly favourable, and exclusively
enjoyed by those who have peculiar facilities of production; but by the
greater quantity of labour necessarily bestowed on their production by
those who have no such facilities; by those who continue to produce them
under the most unfavourable circumstances; meaning--by the most
unfavourable circumstances, the most unfavourable under which the
quantity of produce required renders it necessary to carry on the
production.

Thus, in a charitable institution, where the poor are set to work with
the funds of benefactors, the general prices of the commodities, which
are the produce of such work, will not be governed by the peculiar
facilities afforded to these workmen, but by the common, usual, and
natural difficulties, which every other manufacturer will have to
encounter. The manufacturer enjoying none of these facilities might
indeed be driven altogether from the market, if the supply afforded by
these favoured workmen were equal to all the wants of the community; but
if he continued the trade, it would be only on condition that he should
derive from it the usual and general rate of profits on stock; and that
could only happen when his commodity sold for a price proportioned to
the quantity of labour bestowed on its production. [6]

It is true, that on the best land, the same produce would still be
obtained with the same labour as before, but its value would be enhanced
in consequence of the diminished returns obtained by those who employed
fresh labour and stock on the less fertile land. Notwithstanding then,
that the advantages of fertile over inferior lands are in no case lost,
but only transferred from the cultivator, or consumer, to the landlord,
yet since more labour is required on the inferior lands, and since it is
from such land only that we are enabled to furnish ourselves with the
additional supply of raw produce, the comparative value of that produce
will continue permanently above its former level, and make it exchange
for more hats, cloth, shoes, &c. &c. in the production of which no such
additional quantity of labour is required.

The reason then, why raw produce rises in comparative value, is because
more labour is employed in the production of the last portion obtained,
and not because a rent is paid to the landlord. The value of corn is
regulated by the quantity of labour bestowed on its production on that
quality of land, or with that portion of capital, which pays no rent.
Corn is not high because a rent is paid, but a rent is paid because corn
is high; and it has been justly observed, that no reduction would take
place in the price of corn, although landlords should forego the whole
of their rent. Such a measure would only enable some farmers to live
like gentlemen, but would not diminish the quantity of labour necessary
to raise raw produce on the least productive land in cultivation.

Nothing is more common than to hear of the advantages which the land
possesses over every other source of useful produce, on account of the
surplus which it yields in the form of rent. Yet when land is most
abundant, when most productive, and most fertile, it yields no rent; and
it is only when its powers decay, and less is yielded in return for
labour, that a share of the original produce of the more fertile
portions is set apart for rent. It is singular that this quality in the
land, which should have been noticed as an imperfection, compared with
the natural agents by which manufacturers are assisted, should have been
pointed out as constituting its peculiar pre-eminence. If air, water,
the elasticity of steam, and the pressure of the atmosphere, were of
various qualities; if they could be appropriated, and each quality
existed only in moderate abundance, they as well as the land would
afford a rent, as the successive qualities were brought into use. With
every worse quality employed, the value of the commodities in the
manufacture of which they were used would rise, because equal quantities
of labour would be less productive. Man would do more by the sweat of
his brow, and nature perform less; and the land would be no longer
pre-eminent for its limited powers.

If the surplus produce which land affords in the form of rent be an
advantage, it is desirable that, every year, the machinery newly
constructed should be less efficient than the old, as that would
undoubtedly give a greater exchangeable value to the goods manufactured,
not only by that machinery, but by all the other machinery in the
kingdom; and a rent would be paid to all those who possessed the most
productive machinery. [7]

The rise of rent is always the effect of the increasing wealth of the
country, and of the difficulty of providing food for its augmented
population. It is a symptom, but it is never a cause of wealth; for
wealth often increases most rapidly while rent is either stationary, or
even falling. Rent increases most rapidly, as the disposable land
decreases in its productive powers. Wealth increases most rapidly in
those countries where the disposable land is most fertile, where
importation is least restricted, and where through agricultural
improvements, productions can be multiplied without any increase in the
proportional quantity of labour, and where consequently the progress of
rent is slow.

If the high price of corn were the effect, and not the cause of rent,
price would be proportionally influenced as rents were high or low, and
rent would be a component part of price. But that corn which is produced
with the greatest quantity of labour is the regulator of the price of
corn, and rent does not and cannot enter in the least degree as a
component part of its price. Adam Smith, therefore, cannot be correct in
supposing that the original rule which regulated the exchangeable value
of commodities, namely the comparative quantity of labour by which they
were produced, can be at all altered by the appropriation of land and
the payment of rent. Raw material enters into the composition of most
commodities, but the value of that raw material as well as corn, is
regulated by the productiveness of the portion of capital last employed
on the land, and paying no rent; and therefore rent is not a component
part of the price of commodities.

We have been hitherto considering the effects of the natural progress of
wealth and population on rent, in a country in which the land is of
variously productive powers; and we have seen, that with every portion
of additional capital which it becomes necessary to employ on the land
with a less productive return, rent would rise. It follows from the same
principles, that any circumstances in the society which should make it
unnecessary to employ the same amount of capital on the land, and which
should therefore make the portion last employed more productive, would
lower rent. Any great reduction in the capital of a country, which
should materially diminish the funds destined for the maintenance of
labour, would naturally have this effect. Population regulates itself by
the funds which are to employ it, and therefore always increases or
diminishes with the increase or diminution of capital. Every reduction
of capital is therefore necessarily followed by a less effective demand
for corn, by a fall of price, and by diminished cultivation. In the
reverse order to that in which the accumulation of capital raises rent,
will the diminution of it lower rent. Land of a less unproductive
quality will be in succession relinquished, the exchangeable value of
produce will fall, and land of a superior quality will be the land last
cultivated, and that which will then pay no rent.

The same effects may however be produced when the wealth and population
of a country are increased, if that increase is accompanied by such
marked improvements in agriculture, as shall have the same effect of
diminishing the necessity of cultivating the poorer lands, or of
expending the same amount of capital on the cultivation of the more
fertile portions.

If a million of quarters of corn be necessary for the support of a given
population, and it be raised on land of the qualities of No. 1, 2, 3;
and if an improvement be afterwards discovered by which it can be raised
on No. 1 and 2, without employing No. 3, it is evident that the
immediate effect must be a fall of rent; for No. 2, instead of No. 3,
will then be cultivated without paying any rent; and the rent of No. 1,
instead of being the difference between the produce of No. 3 and No. 1,
will be the difference only between No. 2 and 1. With the same
population, and no more, there can be no demand for any additional
quantity of corn; the capital and labour employed on No. 3, will be
devoted to the production of other commodities desirable to the
community, and can have no effect in raising rent unless the raw
material from which they are made cannot be obtained without employing
capital less advantageously on the land, in which case No. 3 must again
be cultivated.

It is undoubtedly true, that the fall in the relative price of raw
produce, in consequence of the improvement in agriculture, or rather in
consequence of less labour being bestowed on its production, would
naturally lead to increased accumulation; for the profits of stock would
be greatly augmented. This accumulation would lead to an increased
demand for labour, to higher wages, to an increased population, to a
further demand for raw produce, and to an increased cultivation. It is
only, however, after the increase in the population, that rent would be
as high as before; that is to say, after No. 3 was taken into
cultivation. A considerable period would have elapsed, attended with a
positive diminution of rent.

But improvements in agriculture are of two kinds: those which increase
the productive powers of the land, and those which enable us to obtain
its produce with less labour. They both lead to a fall in the price of
raw produce; they both affect rent, but they do not affect it equally.
If they did not occasion a fall in the price of raw produce, they would
not be improvements; for it is the essential quality of an improvement
to diminish the quantity of labour before required to produce a
commodity; and this diminution cannot take place without a fall of its
price or relative value.

The improvements which increase the productive powers of the land, are
such as the more skilful rotation of crops, or the better choice of
manure. These improvements absolutely enable us to obtain the same
produce from a smaller quantity of land. If, by the introduction of a
course of turnips, I can feed my sheep besides raising my corn, the land
on which the sheep were fed becomes unnecessary, and the same quantity
of raw produce is raised by the employment of a less quantity of land.
If I discover a manure which will enable me to make a piece of land
produce 20 per cent. more corn, I may withdraw at least a portion of my
capital from the most unproductive part of my farm. But, as I have
before observed, it is not necessary that land should be thrown out of
cultivation, in order to reduce rent: to produce this effect, it is
sufficient that successive portions of capital are employed on the same
land with different results, and that the portion which gives the least
result should be withdrawn. If, by the introduction of the turnip
husbandry, or by the use of a more invigorating manure, I can obtain the
same produce with less capital, and without disturbing the difference
between the productive powers of the successive portions of capital, I
shall lower rent; for a different and more productive portion will be
that which will form the standard from which every other will be
reckoned. If, for example, the successive portions of capital yielded
100, 90, 80, 70; whilst I employed these four portions, my rent would be
60, or the difference between

70 and 100 = 30 } { 100
70 and 90 = 20 } { 90
70 and 80 = 10 } whilst the produce { 80
-- } would be 340 { 70
60 } { ---
{ 340

and while I employed these portions, the rent would remain the same,
although the produce of each should have an equal augmentation. If,
instead of 100, 90, 80, 70, the produce should be increased to 125, 115,
105, 95, the rent would still be 60, or the difference between

95 and 125 = 30 } { 125
95 and 115 = 20 } whilst the produce { 115
95 and 105 = 10 } would be increased { 105
-- } to 440 { 95
60 } { ---
{ 440

But with such an increase of produce, without an increase of demand,
there could be no motive for employing so much capital on the land; one
portion would be withdrawn, and consequently the last portion of capital
would yield 105 instead of 95, and rent would fall to 30, or the
difference between

105 and 125 = 20 } whilst the produce would be still { 125
105 and 115 = 10 } adequate to the wants of the { 115
-- } population, for it would be 345 { 105
30 } quarters, or { ---
{ 345

the demand being only for 340 quarters. --But there are improvements
which may lower the relative value of produce without lowering the corn
rent, though they will lower the money rent of land. Such improvements
do not increase the productive powers of the land, but they enable us to
obtain its produce with less labour.
They are rather directed to the
formation of the capital applied to the land, than to the cultivation of
the land itself. Improvements in agricultural implements, such as the
plough and the threshing machine, economy in the use of horses employed
in husbandry, and a better knowledge of the veterinary art, are of this
nature. Less capital, which is the same thing as less labour, will be
employed on the land; but to obtain the same produce, less land cannot
be cultivated. Whether improvements of this kind, however, affect corn
rent, must depend on the question, whether the difference between the
produce obtained by the employment of different portions of capital be
increased, stationary, or diminished. If four portions of capital, 50,
60, 70, 80, be employed on the land, giving each the same results, and
any improvement in the formation of such capital should enable me to
withdraw 5 from each, so that they should be 45, 55, 65, and 75, no
alteration would take place in the corn rent; but if the improvements
were such as to enable me to make the whole saving on the largest
portion of capital, that portion which is least productively employed,
corn rent would immediately fall, because the difference between the
capital most productive and the capital least productive would be
diminished; and it is this difference which constitutes rent.

Without multiplying instances, I hope enough has been said to shew, that
whatever diminishes the inequality in the produce obtained from
successive portions of capital employed on the same or on new land,
tends to lower rent; and that whatever increases that inequality,
necessarily produces an opposite effect, and tends to raise it.

In speaking of the rent of the landlord, we have rather considered it as
the proportion of the whole produce, without any reference to its
exchangeable value; but since the same cause, the difficulty of
production, raises the exchangeable value of raw produce, and raises
also the proportion of raw produce paid to the landlord for rent, it is
obvious that the landlord is doubly benefited by difficulty of
production. First he obtains a greater share, and secondly the commodity
in which he is paid is of greater value. [8]




CHAPTER III.

ON THE RENT OF MINES.


The metals, like other things, are obtained by labour. Nature, indeed,
produces them; but it is the labour of man which extracts them from the
bowels of the earth, and prepares them for our service.

Mines, as well as land, generally pay a rent to their owner; and this
rent, as well as the rent of land, is the effect, and never the cause of
the high value of their produce.

If there were abundance of equally fertile mines, which any one might
appropriate, they could yield no rent; the value of their produce would
depend on the quantity of labour necessary to extract the metal from the
mine and bring it to market.

But there are mines of various qualities, affording very different
results, with equal quantities of labour. The metal produced from the
poorest mine that is worked, must at least have an exchangeable value,
not only sufficient to procure all the clothes, food, and other
necessaries consumed by those employed in working it, and bringing the
produce to market, but also to afford the common and ordinary profits to
him who advances the stock necessary to carry on the undertaking. The
return for capital from the poorest mine paying no rent, would regulate
the rent of all the other more productive mines. This mine is supposed
to yield the usual profits of stock. All that the other mines produce
more than this, will necessarily be paid to the owners for rent. Since
this principle is precisely the same as that which we have already laid
down respecting land, it will not be necessary further to enlarge on it.

It will be sufficient to remark, that the same general rule which
regulates the value of raw produce and manufactured commodities, is
applicable also to the metals; their value depending not on the rate of
profits, nor on the rate of wages, nor on the rent paid for mines, but
on the total quantity of labour necessary to obtain the metal, and to
bring it to market.

Like every other commodity, the value of the metals is subject to
variation. Improvements may be made in the implements and machinery used
in mining, which may considerably abridge labour; new and more
productive mines may be discovered, in which, with the same labour, more
metal may be obtained; or the facilities of bringing it to market may be
increased. In either of these cases the metals would fall in value, and
would therefore exchange for a less quantity of other things. On the
other hand, from the increasing difficulty of obtaining the metal,
occasioned by the greater depth at which the mine must be worked, and
the accumulation of water, or any other contingency, its value, compared
with that of other things, might be considerably increased.

It has therefore been justly observed, that however honestly the coin of
a country may conform to its standard, money made of gold and silver is
still liable to fluctuations in value, not only to accidental and
temporary, but to permanent and natural variations, in the same manner
as other commodities.

By the discovery of America and the rich mines in which it abounds, a
very great effect was produced on the natural price of the precious
metals. This effect is by many supposed not yet to have terminated. It
is probable however that all the effects on the value of the metals,
resulting from the discovery of America have long ceased, and if any
fall has of late years taken place in their value, it is to be
attributed to improvements in the mode of working the mines.

From whatever cause it may have proceeded, the effect has been so slow
and gradual, that little practical inconvenience has been felt from gold
and silver being the general medium in which the value of all other
things is estimated. Though undoubtedly a variable measure of value,
there is probably no commodity subject to fewer variations. This and the
other advantages which these metals possess, such as their hardness,
their malleability, their divisibility, and many more, have justly
secured the preference every where given to them, as a standard for the
money of civilized countries.

Having acknowledged the imperfections to which money made of gold and
silver is liable as a measure of value, from the greater or less
quantity of labour which may, under varying circumstances, be necessary
for the production of those metals, we may be permitted to make the
supposition that all these imperfections were removed, and that equal
quantities of labour could at all times obtain, from that mine which
paid no rent, equal quantities of gold. Gold would then be an invariable
measure of value. The quantity indeed would enlarge with the demand, but
its value would be invariable, and it would be eminently well calculated
to measure the varying value of all other things. I have already in a
former part of this work considered gold as endowed with this
uniformity, and in the following chapter I shall continue the
supposition. In speaking therefore of varying price, the variation will
be always considered as being in the commodity, and never in the medium
in which it is estimated.




CHAPTER IV.

ON NATURAL AND MARKET PRICE.


In making labour the foundation of the value of commodities, and the
comparative quantity of labour which is necessary to their production,
the rule which determines the respective quantities of goods which shall
be given in exchange for each other, we must not be supposed to deny the
accidental and temporary deviations of the actual or market price of
commodities from this, their primary and natural price.

In the ordinary course of events, there is no commodity which continues
for any length of time to be supplied precisely in that decree of
abundance, which the wants and wishes of mankind require, and therefore
there is none which is not subject to accidental and temporary
variations of price.

It is only in consequence of such variations, that capital is
apportioned precisely, in the requisite abundance and no more, to the
production of the different commodities which happen to be in demand.
With the rise or fall of price, profits are elevated above, or depressed
below their general level, and capital is either encouraged to enter
into, or is warned to depart from the particular employment in which the
variation has taken place.

Whilst every man is free to employ his capital where he pleases, he will
naturally seek for it that employment which is most advantageous; he
will naturally be dissatisfied with a profit of 10 per cent. , if by
removing his capital he can obtain a profit of 15 per cent. This
restless desire on the part of all the employers of stock, to quit a
less profitable for a more advantageous business, has a strong tendency
to equalize the rate of profits of all, or to fix them in such
proportions, as may in the estimation of the parties, compensate for
any advantage which one may have, or may appear to have over the other.
It is perhaps very difficult to trace the steps by which this change is
effected: it is probably effected, by a manufacturer not absolutely
changing his employment, but only lessening the quantity of capital he
has in that employment. In all rich countries, there is a number of men
forming what is called the monied class; these men are engaged in no
trade, but live on the interest of their money, which is employed in
discounting bills, or in loans to the more industrious part of the
community. The bankers too employ a large capital on the same objects.
The capital so employed forms a circulating capital of a large amount,
and is employed, in larger or smaller proportions, by all the different
trades of a country. There is perhaps no manufacturer, however rich, who
limits his business to the extent that his own funds alone will allow:
he has always some portion of this floating capital, increasing or
diminishing according to the activity of the demand for his commodities.
When the demand for silks increases, and that for cloth diminishes, the
clothier does not remove with his capital to the silk trade, but he
dismisses some of his workmen, he discontinues his demand for the loan
from bankers and monied men; while the case of the silk manufacturer is
the reverse: he wishes to employ more workmen, and thus his motive for
borrowing is increased: he borrows more, and thus capital is transferred
from one employment to another, without the necessity of a manufacturer
discontinuing his usual occupation. When we look to the markets of a
large town, and observe how regularly they are supplied both with home
and foreign commodities, in the quantity in which they are required,
under all the circumstances of varying demand, arising from the caprice
of taste, or a change in the amount of population, without often
producing either the effects of a glut from a too abundant supply, or an
enormously high price from the supply being unequal to the demand, we
must confess that the principle which apportions capital to each trade
in the precise amount that it is required, is more active than is
generally supposed.

A capitalist, in seeking profitable employment for his funds, will
naturally take into consideration all the advantages which one
occupation possesses over another. He may therefore be willing to forego
a part of his money profit, in consideration of the security,
cleanliness, ease, or any other real or fancied advantage which one
employment may possess over another.

If from a consideration of these circumstances, the profits of stock
should be so adjusted that in one trade they were 20, in another 25, and
in another 30 per cent. , they would probably continue permanently with
that relative difference, and with that difference only; for if any
cause should elevate the profits of one of these trades 10 per cent.
either these profits would be temporary, and would soon again fall back
to their usual station, or the profits of the others would be elevated
in the same proportion.

Let us suppose that all commodities are at their natural price, and
consequently that the profits of capital in all employments are exactly
at the same rate, or differ only so much as, in the estimation of the
parties, is equivalent to any real or fancied advantage which they
possess or forego. Suppose now, that a change of fashion should
increase the demand for silks, and lessen that for woollens; their
natural price, the quantity of labour necessary to their production,
would continue unaltered, but the market price of silks would rise, and
that of woollens would fall; and consequently the profits of the silk
manufacturer would be above, whilst those of the woollen manufacturer
would be below, the general and adjusted rate of profits. Not only the
profits, but the wages of the workmen would be affected in these
employments. This increased demand for silks would however soon be
supplied, by the transference of capital and labour from the woollen to
the silk manufacture; when the market prices of silks and woollens would
again approach their natural prices, and then the usual profits would be
obtained by the respective manufacturers of those commodities.

It is then the desire, which every capitalist has, of diverting his
funds from a less to a more profitable employment, that prevents the
market price of commodities from continuing for any length of time
either much above, or much below their natural price. It is this
competition which so adjusts the exchangeable value of commodities, that
after paying the wages for the labour necessary to their production, and
all other expenses required to put the capital employed in its original
state of efficiency, the remaining value or overplus will in each trade
be in proportion to the value of the capital employed.

In the 7th chap. of the Wealth of Nations, all that concerns this
question is most ably treated. Having fully acknowledged the temporary
effects which, in particular employments of capital, may be produced on
the prices of commodities, as well as on the wages of labour, and the
profits of stock, by accidental causes, without influencing the general
price of commodities, wages, or profits, since these effects are equally
operative in all stages of society, we may be permitted to leave them
entirely out of our consideration, whilst we are treating of the laws
which regulate natural prices, natural wages, and natural profits,
effects totally independent of these accidental causes. In speaking
then of the exchangeable value of commodities, or the power of
purchasing possessed by any one commodity, I mean always that power
which it would possess, if not disturbed by any temporary or accidental
cause, and which is its natural price.




CHAPTER V.

ON WAGES


Labour, like all other things which are purchased and sold, and which
may be increased or diminished in quantity, has its natural and its
market price. The natural price of labour is that price which is
necessary to enable the labourers, one with another, to subsist and to
perpetuate their race, without either increase or diminution.

The power of the labourer to support himself, and the family which may
be necessary to keep up the number of labourers, does not depend on the
quantity of money, which he may receive for wages; but on the quantity
of food, necessaries, and conveniences become essential to him from
habit, which that money will purchase. The natural price of labour,
therefore, depends on the price of the food, necessaries, and
conveniences required for the support of the labourer and his family.
With a rise in the price of food and necessaries, the natural price of
labour will rise; with the fall in their price, the natural price of
labour will fall.

With the progress of society, the natural price of labour has always a
tendency to rise, because one of the principal commodities by which its
natural price is regulated, has a tendency to become dearer, from the
greater difficulty of producing it. As, however, the improvements in
agriculture, the discovery of new markets, whence provisions may be
imported, may for a time counteract the tendency to a rise in the price
of necessaries, and may even occasion their natural price to fall, so
will the same causes produce the correspondent effects on the natural
price of labour.

The natural price of all commodities excepting raw produce and labour
has a tendency to fall, in the progress of wealth and population; for
though, on one hand, they are enhanced in real value, from the rise in
the natural price of the raw material of which they are made, this is
more than counterbalanced by the improvements in machinery, by the
better division and distribution of labour, and by the increasing skill,
both in science and art, of the producers.

The market price of labour is the price which is really paid for it,
from the natural operation of the proportion of the supply to the
demand; labour is dear when it is scarce, and cheap when it is
plentiful. However much the market price of labour may deviate from its
natural price, it has, like commodities, a tendency to conform to it.

It is when the market price of labour exceeds its natural price, that
the condition of the labourer is flourishing and happy, that he has it
in his power to command a greater proportion of the necessaries and
enjoyments of life, and therefore to rear a healthy and numerous family.
When however, by the encouragement which high wages give to the increase
of population, the number of labourers is increased, wages again fall to
their natural price, and indeed from a re-action sometimes fall below
it.

When the market price of labour is below its natural price, the
condition of the labourers is most wretched: then poverty deprives them
of those comforts which custom renders absolute necessaries. It is only
after their privations have reduced their number, or the demand for
labour has increased, that the market price of labour will rise to its
natural price, and that the labourer will have the moderate comforts,
which the natural price of wages will afford.

Notwithstanding the tendency of wages to conform to their natural rate,
their market rate may, in an improving society, for an indefinite
period, be constantly above it; for no sooner may the impulse, which an
increased capital gives to a new demand for labour be obeyed, than
another increase of capital may produce the same effect; and thus if the
increase of capital be gradual and constant, the demand for labour may
give a continued stimulus to an increase of people.

Capital is that part of the wealth of a country, which is employed in
production, and consists of food, clothing, tools, raw material,
machinery, &c. necessary to give effect to labour.

Capital may increase in quantity at the same time that its value rises.
An addition may be made to the food and clothing of a country, at the
same time that more labour may be required to produce the additional
quantity than before; in that case not only the quantity, but the value
of capital will rise.

Or capital may increase without its value increasing, and even while its
value is actually diminishing; not only may an addition be made to the
food and clothing of a country, but the addition may be made by the aid
of machinery, without any increase, and even with an absolute diminution
in the proportional quantity of labour required to produce them. The
quantity of capital may increase, while neither the whole together, nor
any part of it singly, will have a greater value than before.

In the first case, the natural price of wages, which always depends on
the price of food, clothing, and other necessaries, will rise; in the
second, it will remain stationary, or fall; but in both cases the market
rate of wages will rise, for in proportion to the increase of capital
will be the increase in the demand for labour; in proportion to the work
to be done will be the demand for those who are to do it.

In both cases too the market price of labour will rise above its natural
price; and in both cases it will have a tendency to conform to its
natural price, but in the first case this agreement will be most
speedily effected. The situation of the labourer will be improved, but
not much improved; for the increased price of food and necessaries will
absorb a large portion of his increased wages; consequently a small
supply of labour, or a trifling increase in the population, will soon
reduce the market price to the then increased natural price of labour.

In the second case, the condition of the labourer will be very greatly
improved; he will receive increased money wages, without having to pay
any increased price, and perhaps, even a diminished price for the
commodities which he and his family consume; and it will not be till
after a great addition has been made to the population, that the market
price of wages will again sink to their then low and reduced natural
price.

Thus, then, with every improvement of society, with every increase in
its capital, the market wages of labour will rise; but the permanence of
their rise will depend on the question, whether the natural price of
wages has also risen; and this again will depend on the rise in the
natural price of those necessaries, on which the wages of labour are
expended.

It is not to be understood that the natural price of wages, estimated
even in food and necessaries, is absolutely fixed and constant. It
varies at different times in the same country, and very materially
differs in different countries. It essentially depends on the habits and
customs of the people. An English labourer would consider his wages
under their natural rate, and too scanty to support a family, if they
enabled him to purchase no other food than potatoes, and to live in no
better habitation than a mud cabin; yet these moderate demands of nature
are often deemed sufficient in countries where "man's life is cheap,"
and his wants easily satisfied. Many of the conveniences now enjoyed in
an English cottage, would have been thought luxuries at an early period
of our history.

From manufactured commodities always falling, and raw produce always
rising, with the progress of society, such a disproportion in their
relative value is at length created, that in rich countries a labourer,
by the sacrifice of a very small quantity only of his food, is able to
provide liberally for all his other wants.

Independently of the variations in the value of money, which necessarily
affect wages, but which we have here supposed to have no operation, as
we have considered money to be uniformly of the same value, wages are
subject to a rise or fall from two causes:

1st. The supply and demand of labourers.

2dly. The price of the commodities on which the wages of
labour are expended.

In different stages of society, the accumulation of capital, or of the
means of employing labour, is more or less rapid, and must in all cases
depend on the productive powers of labour. The productive powers of
labour are generally greatest when there is an abundance of fertile
land: at such periods accumulation is often so rapid, that labourers
cannot be supplied with the same rapidity as capital.

It has been calculated, that under favourable circumstances population
may be doubled in twenty-five years; but under the same favourable
circumstances, the whole capital of a country might possibly be doubled
in a shorter period. In that case, wages during the whole period would
have a tendency to rise, because the demand for labour would increase
still faster than the supply.

In new settlements, where the arts and knowledge of countries far
advanced in refinement are introduced, it is probable that capital has a
tendency to increase faster than mankind: and if the deficiency of
labourers were not supplied by more populous countries, this tendency
would very much raise the price of labour. In proportion as these
countries become populous, and land of a worse quality is taken into
cultivation, the tendency to an increase of capital diminishes; for the
surplus produce remaining, after satisfying the wants of the existing
population, must necessarily be in proportion to the facility of
production, viz. to the smaller number of persons employed in
production. Although, then, it is probable, that under the most
favourable circumstances, the power of production is still greater than
that of population, it will not long continue so; for the land being
limited in quantity, and differing in quality; with every increased
portion of capital employed on it, there will be a decreased rate of
production, whilst the power of population continues always the same.

In those countries where there is abundance of fertile land, but where,
from the ignorance, indolence, and barbarism of the inhabitants, they
are exposed to all the evils of want and famine, and where it has been
said that population presses against the means of subsistence, a very
different remedy should be applied from that which is necessary in long
settled countries, where, from the diminishing rate of the supply of raw
produce, all the evils of a crowded population are experienced. In the
one case, the misery proceeds from the inactivity of the people. To be
made happier, they need only to be stimulated to exertion; with such
exertion, no increase in the population can be too great, as the powers
of production are still greater. In the other case, the population
increases faster than the funds required for its support. Every exertion
of industry, unless accompanied by a diminished rate of increase in the
population, will add to the evil, for production cannot keep pace with
it.

In some countries of Europe, and many of Asia, as well as in the islands
in the South Seas, the people are miserable, either from a vicious
government or from habits of indolence, which make them prefer present
ease and inactivity, though without security against want, to a moderate
degree of exertion, with plenty of food and necessaries. By diminishing
their population, no relief would be afforded, for productions would
diminish in as great, or even in a greater, proportion. The remedy for
the evils under which Poland and Ireland suffer, which are similar to
those experienced in the South Seas, is to stimulate exertion, to create
new wants, and to implant new tastes; for those countries must
accumulate a much larger amount of capital, before the diminished rate
of production will render the progress of capital necessarily less rapid
than the progress of population. The facility with which the wants of
the Irish are supplied, permits that people to pass a great part of
their time in idleness: if the population were diminished, this evil
would increase, because wages would rise, and therefore the labourer
would be enabled, in exchange for a still less portion of his labour, to
obtain all that his moderate wants require.

Give to the Irish labourer a taste for the comforts and enjoyments which
habit has made essential to the English labourer, and he would be then
content to devote a further portion of his time to industry, that he
might be enabled to obtain them. Not only would all the food now
produced be obtained, but a vast additional value in those other
commodities, to the production of which the now unemployed labour of the
country might be directed. In those countries, where the labouring
classes have the fewest wants, and are contented with the cheapest food,
the people are exposed to the greatest vicissitudes and miseries. They
have no place of refuge from calamity; they cannot seek safety in a
lower station; they are already so low, that they can fall no lower. On
any deficiency of the chief article of their subsistence, there are few
substitutes of which they can avail themselves, and dearth to them is
attended with almost all the evils of famine.

In the natural advance of society, the wages of labour will have a
tendency to fall, as far as they are regulated by supply and demand; for
the supply of labourers will continue to increase at the same rate,
whilst the demand for them will increase at a slower rate. If, for
instance, wages were regulated by a yearly increase of capital, at the
rate of 2 per cent. , they would fall when it accumulated only at the
rate of 1-1/2 per cent. They would fall still lower when it increased
only at the rate of 1, or 1/2 per cent. , and would continue to do so
until the capital became stationary, when wages also would become
stationary, and be only sufficient to keep up the numbers of the actual
population. I say that, under these circumstances, wages would fall, if
they were regulated only by the supply and demand of labourers; but we
must not forget, that wages are also regulated by the prices of the
commodities on which they are expended.

As population increases, these necessaries will be constantly rising in
price, because more labour will be necessary to produce them. If, then,
the money wages of labour should fall, whilst every commodity on which
the wages of labour were expended rose, the labourer would be doubly
affected, and would be soon totally deprived of subsistence. Instead,
therefore, of the money wages of labour falling, they would rise; but
they would not rise sufficiently to enable the labourer to purchase as
many comforts and necessaries as he did before the rise in the price of
those commodities. If his annual wages were before 24_l. _, or six
quarters of corn when the price was 4_l. _ per quarter, he would probably
receive only the value of five quarters when corn rose to 5_l. _ per
quarter. But five quarters would cost 25_l. _; he would therefore receive
an addition in his money wages, though with that addition he would be
unable to furnish himself with the same quantity of corn and other
commodities, which he had before consumed in his family.

Notwithstanding, then, that the labourer would be really worse paid, yet
this increase in his wages would necessarily diminish the profits of the
manufacturer; for his goods would sell at no higher price, and yet the
expense of producing them would be increased. This, however, will be
considered in our examination into the principles which regulate
profits.

It appears, then, that the same cause which raises rent, namely, the
increasing difficulty of providing an additional quantity of food with
the same proportional quantity of labour, will also raise wages; and
therefore if money be of an unvarying value, both rent and wages will
have a tendency to rise with the progress of wealth and population.

But there is this essential difference between the rise of rent and the
rise of wages. The rise in the money value of rent is accompanied by an
increased share of the produce; not only is the landlord's money rent
greater, but his corn rent also; he will have more corn, and each
defined measure of that corn will exchange for a greater quantity of all
other goods which have not been raised in value. The fate of the
labourer will be less happy: he will receive more money wages, it is
true, but his corn wages will be reduced; and not only his command of
corn, but his general condition will be deteriorated, by his finding it
more difficult to maintain the market rate of wages above their natural
rate. While the price of corn rises 10 per cent. , wages will always rise
less than 10 per cent. , but rent will always rise more; the condition of
the labourer will generally decline, and that of the landlord will
always be improved.

When wheat was at 4_l. _ per quarter, suppose the labourer's wages to be
24_l. _ per annum, or the value of six quarters of wheat, and suppose
half his wages to be expended on wheat, and the other half, or 12_l. _,
on other things. He would receive

£24. 14. } { £4. 4. 8. } { 5. 83 qrs.
25. 10. } when wheat { 4. 10. } or the { 5. 66 qrs.
26. 8. } was at { 4. 16. } value of { 5. 50 qrs.
27. 8. 6 } { 5. 2. 10 } { 5. 33 qrs.

He would receive these wages to enable him to live just as well, and no
better, than before; for when corn was at 4_l. _ per quarter, he would
expend for three quarters of corn,

at 4_l. _ per qr. £12
and on other things 12
--
24

When wheat was 4_l. _ 4_s. _ 8_d. _, three quarters,
which he and his family consumed, would
cost him £12. 14
other things not altered in price 12
-----
24. 14

When at 4_l. _ 10_s. _, three quarters of wheat
would cost £13. 10
and other things 12
-----
25. 10

When at 4_l. _ 16_s. _, three qrs. of wheat £14. 8
Other things 12
----
26. 8

When at 5. 2. 10_l. _ three quarters of wheat
would cost £15.