NormalizeHEADmain

1 files changed, 0 insertions, 2221 deletions

diff --git a/old/62407-0.txt b/old/62407-0.txt
deleted file mode 100644
index cf3cb9e..0000000
--- a/old/62407-0.txt
+++ /dev/null
@@ -1,2221 +0,0 @@
-The Project Gutenberg EBook of The Measure of Value Stated and Illustrated, by 
-Thomas Robert Malthus
-
-This eBook is for the use of anyone anywhere in the United States and
-most other parts of the world at no cost and with almost no restrictions
-whatsoever.  You may copy it, give it away or re-use it under the terms
-of the Project Gutenberg License included with this eBook or online at
-www.gutenberg.org.  If you are not located in the United States, you'll
-have to check the laws of the country where you are located before using
-this ebook.
-
-
-
-Title: The Measure of Value Stated and Illustrated
-       With an Application of it to the Alterations in the Value
-       of the English Currency since 1790
-
-Author: Thomas Robert Malthus
-
-Release Date: June 15, 2020 [EBook #62407]
-
-Language: English
-
-Character set encoding: UTF-8
-
-*** START OF THIS PROJECT GUTENBERG EBOOK THE MEASURE OF VALUE ***
-
-
-
-
-Produced by Charlie Howard and the Online Distributed
-Proofreading Team at https://www.pgdp.net (This file was
-produced from images generously made available by The
-Internet Archive)
-
-
-
-
-
-
-
-
-
-  THE
-
-  MEASURE OF VALUE
-
-  STATED AND ILLUSTRATED,
-
-  WITH
-
-  AN APPLICATION OF IT TO THE ALTERATIONS IN
-
-  THE VALUE OF THE ENGLISH CURRENCY
-
-  SINCE 1790.
-
-  —♦—
-
-  BY THE REV. T. R. MALTHUS, M.A. F.R.S.
-
-  PROFESSOR OF HISTORY AND POLITICAL ECONOMY IN THE
-  EAST INDIA COLLEGE, HERTFORDSHIRE.
-
-
-  LONDON:
-  JOHN MURRAY, ALBEMARLE STREET.
-  MDCCCXXIII.
-
-
-
-
-  London: Printed by C. Roworth,
-  Bell-yard, Temple-bar.
-
-
-
-
-THE MEASURE OF VALUE.
-
-
-It is generally allowed that the word value, in common language,
-has two different meanings; one, value in use, the other, value in
-exchange; the first expressing merely the usefulness of an object in
-supplying the most important wants of mankind, without reference to
-its power of commanding other objects in exchange; and the second
-expressing the power of commanding other objects in exchange, without
-reference to its usefulness in supplying the most important wants of
-mankind.
-
-It is obviously value in the last sense, not the first, with which the
-science of Political Economy is mainly concerned.
-
-But the power of one object to command another in exchange, or in other
-words the power of purchasing, may obviously arise either from causes
-affecting the object itself, or the commodities against which it is
-exchanged.
-
-In the one case, the value of the object itself may properly be said
-to be affected; in the other, only the value of the commodities which
-it purchases; and if we could suppose any object always to remain of
-the same value, the comparison of other commodities with this one would
-clearly show, which had risen, which had fallen, and which had remained
-the same. The value of any commodity estimated in a measure of this
-kind might with propriety be called its absolute or natural value;
-while the value of a commodity estimated in others which were liable to
-variation, whether they were one or many, could only be considered as
-its nominal or relative value, that is, its value in relation to any
-particular commodity, or to commodities in general.
-
-That a correct measure of the power of purchasing generally, or
-of commanding such important commodities as the necessaries and
-conveniences of life, in whatever way such power might arise, would be
-very desirable, cannot for a moment be doubted, as it would at once
-enable us to form a just estimate and comparison of wages, salaries,
-and revenues, in all countries, and at all periods. But when we
-consider what such a measure implies, we must feel certain that no one
-object exists, or can be supposed to exist, with such qualities as
-would fit it to become a standard measure of this kind. It would imply
-steadiness of value, not merely in one object, but in a great number,
-which is contrary to all theory and experience.
-
-Whether there is any object, which, though it cannot measure the power
-of purchasing generally under the varying facilities of production and
-varying state of the demand and supply by which different commodities
-are affected, may be a correct measure of absolute and natural value as
-above described, is the specific object of the present inquiry.
-
-It follows directly, from the principles of Adam Smith, that the
-conditions of the supply of the great mass of commodities are, that
-the returns should be sufficient to pay the wages, profits and rents
-necessary to their production. If these payments be made in money at
-the ordinary rates of the time, they form what Adam Smith calls their
-natural prices. Money however we know is variable. But if for money we
-substitute the objects necessary to give the producer the same power
-of production and accumulation as the natural money prices would have
-commanded, such returns maybe considered as the natural conditions of
-the supply of commodities, and may with propriety be denominated their
-natural value, in contradistinction to their natural price.
-
-Of these three conditions of supply, or elements of natural value,
-the two first are obviously the most important. They are not only the
-sole conditions of supply in those early stages of society before the
-appropriation of land has taken place, but they continue to be so in
-reference to large classes of objects in the most advanced stages
-of improvement; and it is now generally acknowledged that even the
-main vegetable food of an improving country, which is the foundation
-of wages, must necessarily be of the same value as that part of the
-produce which is almost exclusively resolvable into wages and profits,
-and pays very little rent.
-
-We cannot therefore essentially err in assuming for the present that
-the natural value of objects in their more simple forms is composed of
-labour and profits,[A] and the effect of any portion of rent, or of
-other ingredients which are sometimes added to these elements, may be
-allowed for subsequently.
-
-We may also consider as a postulate which will be readily granted, that
-any given quantity of labour must be of the same value as the wages
-which command it, or for which it actually exchanges.
-
-Of the two main elements of value, labour and profits, the former,
-particularly if we include, as we ought to do, accumulated as well as
-immediate labour, is much the largest and most powerful.
-
-The great instrument of production is labour. There is no commodity nor
-implement used to assist manual exertions in which it does not enter
-as a condition of supply, and very few in which it does not enter very
-largely. If in the production of commodities and of the implements
-which assist in this production, no other ingredient were required than
-labour, and the interval between the exertion of the labour and its
-remuneration in the completed commodity were so inconsiderable that it
-might be entirely disregarded, it is certain that, as the same quantity
-of labour would have a constant tendency to produce commodities in the
-same relative proportion to each other, and to the demand for them,
-they would be found on an average to exchange with each other according
-to the quantity of labour which had been employed to obtain them.
-
-Thus if ten mackerel were, on an average, obtained by the same quantity
-of labour as two soals, it would be necessary, in order to continue
-the supply of both in the market, that the value of a soal should be
-five times as great in the power of purchasing similar commodities,
-as the value of a mackerel; because if it were less, none would apply
-themselves to the catching of soals; and though it is quite certain
-that at any given period the relative value of soals and mackerel
-would be exclusively determined by the state of the demand and
-supply of each; and that they would, in consequence, often vary very
-considerably; yet it is as certain, that on the supposition of the
-hypothesis being correct, and that they both continued to be brought
-to market, each would on an average be supplied in such a quantity,
-compared with the demand for it, that a soal would ordinarily exchange
-for five mackerel, and the different quantities of labour required to
-produce them would, in this case, be a correct measure both of their
-natural and relative value in exchange.
-
-Now supposing that the skill and power of the labourers were so to
-increase, that, in the same time and with the same personal exertions,
-they could obtain three soals and fifteen mackerel, it is obvious that
-the relative value of soals to mackerel would remain the same, but they
-would both have essentially altered their value compared with all those
-commodities which still required the same quantity of labour to produce
-the same supply of them. With regard to such commodities, soals and
-mackerel would have become of less value, and consequently they would
-have become of less value with regard to a given quantity of labour.
-The correct language in this case would be, not that labour had become
-dearer, but that soals and mackerel had become cheaper. And if the
-same increase of skill and power could be conceived to extend to all
-other commodities, and all commodities were similarly circumstanced
-as to their mode of production and bringing to market; it cannot be
-doubted, that though they might retain the same relative value compared
-with each other, they would all become more plentiful with regard to
-the wants of the society, and any given quantity of labour. And the
-correct language would still be, not that labour had become dearer, but
-that all commodities had become cheaper. This fall would be a fall in
-the absolute and natural value of commodities; and as long as labour
-alone was concerned in their production, and they were brought to
-market immediately, it would be allowed that the different quantities
-of labour employed upon them would be a correct measure both of their
-relative value compared with each other, and of their absolute and
-natural value in reference to the conditions of their supply. Their
-natural values would be exactly represented by the different quantities
-of labour worked up in them; while their natural prices would be these
-different quantities of labour estimated in money, according to the
-money price of the labour employed.
-
-But at a very early period of society a considerable interval must
-elapse between the exertion of some sorts of labour and the completion
-of the article on which they are employed. And the next simplest form
-of production, beyond the result of mere labour, is that, where, in
-addition to the labour employed directly on the commodity and on the
-simple tools necessary to its production, the condition of the supply
-requires that a certain compensation be made in the final remuneration
-for the time which has elapsed from the period of the advances of
-the labour, to the period when the labourer, or capitalist, can be
-remunerated. This compensation, which equally applies to the formation
-of the capital, as to the products to be obtained by it, is the profit
-which must be paid on the advances of the labour, and is absolutely
-necessary to the encouragement of such advances.
-
-But in this state of things commodities would cease to exchange with
-each other according to the quantity of labour employed upon them. Some
-commodities, on which the same quantity of accumulated and immediate
-labour had been employed, would be of a different exchangeable value,
-on account of the different quantity of profits which had entered into
-their composition; while others, on which different quantities of
-accumulated and immediate labour had been employed, might be of the
-same exchangeable value, on account of the greater quantity of profits
-of which they were composed being balanced by the smaller quantity of
-labour advanced to produce them.
-
-In the earliest stages of society accumulations of capital are very
-rare, and profits may be extremely high, perhaps forty or fifty per
-cent. If under these circumstances the construction of a war canoe
-were to take two years before it were fit for use, it is evident that
-its value in exchange would be prodigiously enhanced by such profits.
-Compared with a number of deer which might have cost exactly the same
-quantity of accumulated and immediate labour to bring to market, the
-canoe would be seventy or eighty per cent. of greater value; and on
-the fall of profits from forty or fifty per cent. to ten per cent. in
-the progress of society, an object of this kind might fall in value
-sixty or seventy per cent. compared with such objects as deer or fish,
-without any difference in the quantity of labour employed upon either.
-
-It is observed by Adam Smith that corn is an annual crop, butchers’
-meat a crop which requires four or five years to grow; and
-consequently, if we compare two quantities of corn and beef which are
-of equal exchangeable value, it is certain that a difference of three
-or four additional years profit at fifteen per cent. upon the capital
-employed in the production of the beef would, exclusively of any
-other considerations, make up in value for a much smaller quantity of
-labour, and thus we might have two commodities of the same exchangeable
-value, while the accumulated and immediate labour of the one was forty
-or fifty per cent. less than that of the other. This is an event of
-daily occurrence in reference to a vast mass of the most important
-commodities in the country; and if profits were to fall from fifteen
-per cent. to eight per cent. the value of beef compared with corn
-would fall above twenty per cent.
-
-When commodities are obtained by the assistance of a large proportion
-of fixed capital of a very durable nature, the advances are only
-consumed in part, and the whole produce of the accumulated and
-immediate labour employed must be considered as composed of the new
-produce obtained, together with the remainder of the fixed capital
-which is unconsumed.[B] In reference to the separate value of the new
-produce, this will be the same as if to the labour actually worked up
-in such produce were added the profits of the whole capital advanced.
-It sometimes happens that the proportion of value arising from these
-profits is very considerable; and commodities so produced will
-necessarily have much less labour worked up in them, and will be much
-more affected in their value by a rise or fall of profits, than those
-which are composed mainly of immediate labour.
-
-Thus, if a commodity were produced by the aid of accumulated labour
-in machinery worth £2,000, the annual wear and tear of which was
-one-twentieth, or £100, and the labour employed on cheap materials and
-in the working of the machinery were worth £200, while profits were
-20 per cent. then the value of the labour worked up in the commodity
-would be £100 added to £200, equal to £300; and the whole capital
-advanced being £2,300, the profits upon it would be £460, which, added
-to £300 would make the whole value of the produce £760. Compared with a
-commodity of equal value which had been produced without fixed capital,
-and had yet been brought to market in the same time and with the same
-rate of profits, it would contain less than half of the labour worked
-up in it; while, if profits were to fall from 20 per cent. to 10 per
-cent. the value of the commodity would fall in the proportion of from
-£760 to £530, or, if profits had been 10 per cent. and were to rise to
-20 per cent. the value of the commodity would rise in the proportion
-of from £530 to £760, or above 42 per cent., without any change in the
-quantity of labour employed.[C]
-
-It must be allowed, then, that whenever two elements are necessary to
-the supply, and enter into the composition of commodities, their value
-cannot depend exclusively upon one of them, except by accident, or
-when the other can be considered as a given or common quantity. But
-it is universally acknowledged, that the great mass of commodities
-in civilized and improved countries is made up at the least of two
-elements--labour and profits; consequently, the exchangeable value of
-commodities into which these two elements enter as the conditions of
-their supply, will not depend exclusively upon the quantity of labour
-employed upon them, except in the very peculiar cases when both the
-returns of the advances and the proportions of fixed and circulating
-capitals are exactly the same.
-
-It cannot, then, be said with any thing like an approximation towards
-correctness, that the labour worked up in commodities is the measure of
-their exchangeable value.
-
-But if to the accumulated and immediate labour worked up in
-commodities, we add the profits upon the whole advances for the time
-that they are advanced, we shall then make the proper allowance for
-the other element of value, and may expect to obtain a more accurate
-measure. If we had estimated the value of the labour advanced in money,
-or any other medium, we should of course estimate the profits in the
-same medium, and the natural price of the commodity estimated in such
-medium, would obviously be equal to the price of the accumulated and
-immediate labour expended on the commodity, together with the ordinary
-profits estimated upon such advances. But if, with a view to the
-natural conditions of supply, we consider only the quantity of labour
-advanced, without reference to any other medium, we must of course
-estimate the profits in quantity of labour also, which will give us an
-amount of labour in proportion to which commodities will be found to
-exchange with each other, just in the same way as they would exchange
-with each other according to the quantity of labour employed on them,
-if labour had been the sole ingredient which had entered into their
-composition.
-
-Thus, if a hundred days labour were employed upon a commodity, at two
-shillings a day, and the average interval between the advance of such
-wages and the period when the commodity could be brought to sale were
-a year, and profits were 20 per cent. the price of the commodity would
-be £12, while the price of a commodity which had cost the same quantity
-of labour of the same kind, and could be brought to market immediately,
-would be only £10. And it is equally certain, that, if putting money
-or any other medium of exchange out of the question, we had estimated
-the profits for a year upon the advances of the hundred days labour
-actually employed, we should obtain a quantity of labour which,
-compared with the labour employed on the commodity sold immediately,
-would be in the proportion of 120 to 100, and expressing the relative
-conditions of supply, would accurately measure the rate at which the
-two commodities obtained under these different circumstances would
-exchange with each other.
-
-It appears, then, that in the same country, and at the same time,
-the exchangeable value of those commodities which can be resolved
-into labour and profits alone, would be accurately measured by the
-quantity of labour which would result from adding to the accumulated
-and immediate labour actually worked up in them the varying amount
-of the profits on all the advances estimated in labour. But this
-must necessarily be the same as the quantity of labour which they
-will command, as appears from the instances above stated, and will
-be more fully shown farther on; and where the precious metals may be
-considered for short periods as of a uniform value, the conformity of
-this measure with the proportions of money prices at which commodities
-would be exchanging all around us, might daily be brought to the test
-of experience and be established beyond the possibility of doubt.
-
-It will be said, perhaps, that in the same place, and at the same
-time, almost every commodity may be considered as an accurate measure
-of the relative value of others, and that what is true of labour in
-this respect is true of cloth, cotton, iron, or any other article. Any
-two commodities which, at the same time, and in the same place, will
-purchase or command the same quantity of cloth, cotton, or iron, of a
-given quality, will have the same relative value, or will exchange with
-each other.
-
-This will be readily granted, if we take the same time and place
-exactly, and consider only relative value; but not if either any
-latitude be allowed as to time and place, or if we consider, as it
-is our object to do, not merely relative, but absolute and natural
-value. Cloth, cotton, iron, and similar commodities, are subject to
-vary most essentially in a single year, or even month, so that the
-manufacturer who could obtain for his goods the same quantity of cloth
-as he could the year before, would be very little likely to obtain the
-same quantity of other articles. But even supposing that these articles
-and the product of the capitalist were to continue of the same relative
-value to each other, he might still be quite unable to carry on his
-business. The conditions of the supply of commodities do not require
-that they should retain always the same relative values, but that each
-should retain its proper _natural_ value, or the means of obtaining
-those objects which will continue to the producer the same power of
-production and accumulation. If the advances of capitalists consisted
-specifically in cloth, then these advances would always have the effect
-required in production; and as profits are calculated upon the advances
-necessary to production, whatever they may be, the quantity of cloth
-advanced, with the addition of the ordinary profits estimated also in
-quantity of cloth, would represent both the natural and relative value
-of the commodity. But the specific advances of capitalists do not
-consist of cloth, but of labour; and as no other object whatever can
-represent a given quantity of labour, it is obvious that labour stands
-quite alone in this respect, and that it is the quantity of _labour_
-which a commodity will command, and not the quantity of any other
-commodity, which can represent the conditions of its supply, or its
-natural value.[D]
-
-It will be allowed, then,
-
-First, that when commodities are obtained by labour alone, and sold
-immediately, they will, on an average, exchange with each other
-according to the quantity of labour employed upon them.
-
-Secondly, that when profits are concerned, and differ either in rate or
-quantity, commodities can no longer exchange with each other, according
-to the quantity of labour employed upon them, except by accident.
-
-Thirdly, that the quantity of accumulated and immediate labour applied
-to their production, must, in all the less complex cases, form the
-advances on which profits may be correctly calculated.
-
-And, fourthly, that when profits are calculated upon these advances,
-a quantity of labour is obtained, according to which it is found, by
-experience, that commodities do exchange with each other in the same
-country; and, further, that this quantity of labour not only expresses
-correctly their value in exchange with each other, but their absolute
-and natural value in reference to the conditions of their supply.
-
-       *       *       *       *       *
-
-In proceeding to consider what takes place in different countries where
-the value of the precious metals is very different, it will readily be
-acknowledged, that the rate at which commodities exchange with each
-other is not proportioned to the labour which has been employed upon
-them, with the addition of profits. And it is quite certain, that
-they cannot be proportioned to the quantity of labour alone of which
-they are composed. We know, from experience, that the commodities of
-different countries are actually exchanged with each other according to
-their money prices at the time. These prices must be determined partly
-by those natural elements of value which determine the rate at which
-commodities exchange with each other, and the natural conditions of
-their supply in each country, and partly by the different value of the
-precious metals in different situations, which must necessarily have
-a most powerful effect on the rate at which foreign commodities are
-exchanged.
-
-Knowing then the elements of the natural and relative value of
-commodities in the same country, if we knew also the difference in the
-value of money in different countries, we should know at once the rate
-at which the commodities of different countries would exchange with
-each other.
-
-Now there is no supposition but one, relating to the value of money in
-different countries, which, combined with the natural elements of the
-value of produce in each, would constitute the present natural prices
-of commodities in these countries, or the rates at which they actually
-exchange with each other. This is the supposition that the differences
-in the value of money in different countries are proportioned to the
-differences in the money prices of agricultural labour.[E]
-
-The conditions of the supply of an Indian commodity are the advance and
-consumption of a certain quantity of Indian labour, with the profits
-on all the advances for the time that they are employed. Thus, if for
-the production of an Indian commodity, a fixed capital consisting of
-accumulated labour and profits, equal to 300 days, were advanced for a
-year, and a quantity of accumulated and immediate labour, consisting
-of the wear and tear of the machinery, the materials to be worked up,
-and direct labour, equal to 1500 days, were consumed on the commodity
-in the same time, profits being 20 per cent., the natural value of such
-commodity in India would be equal to the 1500 days labour consumed,
-with a profit of 20 per cent. upon 1800 days labour, which would amount
-to 1860 days labour.
-
-If labour in India were fourpence a day, the fixed money capital in
-this case would equal £5, the labour advanced and consumed £25, and
-the labour consumed, together with the profits on the whole advances,
-would be equal to £31. And this would evidently be the natural price
-at which the commodity would circulate, and according to which it would
-exchange with any foreign commodity brought to India.
-
-On the same principle, if for the production of an English commodity,
-300 days labour were advanced in fixed capital for a year, and 1500
-days labour were consumed on the commodity in the same time, while
-profits were 10 per cent., the natural value of such commodity, or the
-conditions of its supply, would be 1500 days labour, with a profit
-of 10 per cent. upon 1800, which together would equal 1680: and if
-labour were two shillings a day, the natural price at which the
-commodity would circulate, and according to which it would exchange
-with any foreign commodity brought to England, would be £168. This
-prodigious difference in the natural prices of two commodities in
-England and India, the natural values of which in each country were
-nearly the same, could only arise from a difference in the value of
-money occasioned by the very superior efficiency of English labour in
-the purchase of the precious metals, owing to the energy, skill, and
-situation of English labourers and capitalists, compared with those
-of India. But in estimating this difference in the value of money in
-England and India, it is quite obvious, that if, after ascertaining
-the natural conditions of the supply of a commodity in each country,
-we were to estimate the value of money either by its general power of
-purchasing, by a mean between corn and labour,[F] or by the quantity
-of labour alone which had been actually employed in bringing the
-money from the mine to the market, or by any other measure whatever,
-except the labour which it would command, we should not account for
-the natural prices which are found actually to prevail in the two
-countries, and according to which Indian and English commodities are
-found to exchange with each other by experience.
-
-Consequently, as no other supposition will suit the actual phenomena,
-and as it has already appeared that the value of commodities in the
-same country is determined by the quantity of labour which they will
-command, we may safely conclude that the value of the precious metals
-in different countries is determined by the same measure, or by the
-different quantities of common agricultural labour, taking the average
-of summer and winter wages, which a given portion of them will command.
-
-       *       *       *       *       *
-
-When we come to consider the varying value of commodities at distant
-periods in the same country, or the rise or fall of produce in the
-progress of cultivation and improvement, we are necessarily deprived
-of the test of an actual exchange. We know, however, that at different
-periods in the same country both the value of the precious metals, and
-the rate of profits and corn wages, may alter most essentially.
-
-The effect of the varying value of the precious metals, when we have
-once obtained a measure of value, will be easily estimated. The most
-important point at present is, to consider the effects which must be
-produced upon the value of commodities in the progress of society, by
-the changes which necessarily take place in the profits of stock and
-the corn wages of labour.
-
-On the supposition of high profits at an early period of society, and
-a considerable fall of them subsequently, how are we to measure and
-compare the value of commodities at these different periods? With
-regard to those which had continued to cost the same quantity of
-accumulated and immediate labour, we could not say that they were of
-the same value, unless we were prepared to assert that the value of
-commodities is determined solely by the labour employed upon them,
-not only when the rate of profits is the same but when it is totally
-different;[G] a proposition which no one can venture to assert in the
-case of foreign commodities, and which there is as little reason to
-assert in comparing the commodities of distant periods.
-
-If profits were 50 per cent. five hundred years ago, and are 10 per
-cent. now, the question is, whether a piece of cloth which had cost
-the same quantity of labour at these different periods would be of the
-same value. By the supposition it was composed of a greater quantity
-of profits in the earlier period, and having cost the same quantity of
-labour, we should naturally conclude that it would be of a higher value.
-
-It is said, however, that, although it cost the same quantity of
-labour, yet that the labour in the former period was of much less
-value, which would counterbalance the greater quantity of profits, and
-leave the value obtained by the same quantity of labour the same. But
-when we are thus referred to the lower value of labour, the principle
-of compensation which had before been applied is quite forgotten. The
-corn which pays the labourer is indeed obtained by a smaller quantity
-of labour, on account of the superior fertility of the soil from which
-it is raised, but it is sold as the cloth is sold, at a profit of 50
-per cent.; and if it be said that, in the case of the cloth, the low
-value of wages which is supposed to be the result of superior fertility
-counteracts the high profits and keeps the value of cloth the same,
-surely it may be said, in the case of the corn which pays the wages,
-that the smaller quantity of labour necessary to produce it is made up
-by the greater rate of profits at which it is sold, and the value of
-wages is thus kept the same.
-
-If 100 quarters of corn be obtained in the different periods of society
-by the labour of a different number of men, such as 7, 8 and 9, each
-paid at the rate of 10 quarters a year, the value of the 100 quarters
-of corn, or the value of the wages of any one of the men employed,
-estimated in the labour advanced, with the addition of the profits
-upon such advances, must obviously always be the same.
-
-At an early period of society, when the soil was very fertile and the
-labour of 7 men only was necessary to produce 100 quarters of corn
-on land which paid little or no rent, the advances in labour being 7
-men, or in corn 70 quarters, and the return 100 quarters, the rate of
-profits would be 42-6/7 per cent., and the advances of the labour of
-7 men increased by a profit of 42-6/7 would equal the labour of 10
-men, or the quantity of labour which the whole return would command.
-At a more advanced period, when the last land taken into cultivation
-was less fertile, and the labour of 8 men was necessary to obtain the
-return of 100 quarters, the advances in labour being 8 men, or in corn
-80 quarters, the rate of profits would be 25 per cent., and the labour
-of 8 men increased by 25 per cent. would exactly equal the labour of
-10 men. On the same principle, if at a still later period 9 men were
-necessary to produce the 100 quarters, the rate of profits would be
-11-1/9 per cent., and the quantity of labour employed increased by the
-profits would still be equal to the labour of 10 men.
-
-It appears then that when the labourer continues to be paid the same
-corn wages, the value of the whole corn produce, or the value of each
-man’s wages estimated in the usual way in labour and profits, must
-obviously remain constant, and that it must be most erroneous to infer
-that labour rises in value because it requires more labour in the
-progress of cultivation to produce the wages of 10 men or one man, if
-at the same time it requires such a diminished value of profits as
-exactly to balance it.
-
-But in the progress of cultivation, the corn wages of labour do not
-continue the same, and corn must consequently be liable to great
-variation of value, both on account of temporary variations in the
-state of the supply compared with labour, and on account of the more
-permanent state of the demand and supply of corn compared with labour,
-owing to the increasing difficulty of production.
-
-It may be laid down, however, as a general proposition, liable to no
-exception, that when the value of any produce can be resolved into
-labour and profits, then as the _proportion_ of such produce which goes
-to labour increases, the proportion which goes to profits must decrease
-in the same degree, and as the _proportion_ which goes to labour
-decreases, the proportion which goes to profits must increase in the
-same degree.[H]
-
-Thus if ¾ of the produce, whatever that produce may be, go to labour, ¼
-will remain for profits; if ⅚ go to labour, ⅙ will remain for profits;
-and if ½ only go to labour, ½ will remain for profits.
-
-In reference to corn or commodities in general, compared with each
-other at different periods in the progress of cultivation, it is
-obvious that neither an increase in the quantity of labour required to
-produce them, nor an increase in the quantity of produce awarded to
-the labourer, can ever determine the proportion of the whole produce
-which goes to labour and affect profits accordingly; because if the
-quantity of labour required to produce them increases, the effect of
-this upon profits may be totally destroyed by a diminution at the same
-time of the quantity of produce awarded to the labourer; or if a larger
-quantity of produce be awarded to the labourer, it may be only in
-consequence of a smaller quantity of labour being necessary to obtain
-the same produce, in which case profits may remain undiminished, or
-even rise, at the same time that corn wages rise.
-
-But if instead of referring to commodities generally, we refer to the
-variable quantity of produce which, under different circumstances,
-forms the wages of a given number of labourers, we shall find that the
-variable quantity of labour required to obtain this produce will always
-exactly agree with the proportion of the whole produce which goes to
-labour; because, however variable may be the amount of this produce, it
-will be divided into a number of parts equal to the number of labourers
-which it will command, and as the first set of labourers who produced
-these wages may be considered as having been paid at the same rate as
-the second set, whose labour the produce commands; it is obvious that
-if to obtain the produce which commands ten labourers, 6, 7, 8, or
-9 labourers be required, the proportion of the produce which goes to
-labour, in these different cases, will be 6/10, 7/10, 8/10, or 9/10,
-leaving 4/10, 3/10, 2/10, or 1/10, for profits.
-
-It is impossible to refer what is proposed as a standard to any
-_other_ measure, because, in that case, the other measure would be the
-standard. But if it can be shown, that any object, the value of which
-is composed of two elements, is of such a nature that while the value
-of one of these elements increases, the value of the other decreases
-exactly in the same degree, such object must be of a constant value.
-If the values of two variable quantities, _X_ and _Y_, be equal to the
-constant value _A_, it follows that, in all the variations to which
-_X_ and _Y_ are subject, whatever value _X_ gains must be lost by _Y_,
-and whatever value _Y_ gains must be lost by _X_. The converse of this
-proposition must also be true, that is, if the value of any object be
-made up of the variable values of two other objects, and it can be
-shown that, from the nature of these two objects, whatever increase
-of value one of them gains, must necessarily be lost by the other,
-and vice versâ, it follows that the value of the object, to which the
-two others are equal, must be constant. Now it has appeared that the
-variable values of the labour and of the profits which compose the
-value of the variable quantity of corn awarded in wages to a given
-number of labourers, must necessarily be such, that, as the quantity
-of labour required to produce them increases, either from difficulty
-of production or from the greater quantity of produce awarded to the
-labourer, all the value thus gained by labour is lost by profits; and
-as the quantity of labour required to produce them is diminished,
-either by facility of production or the small quantity of produce
-awarded to the labourer, all the value which is gained by profits is
-lost by labour. Consequently, the value of the variable quantity of
-produce which, under different circumstances, forms the wages of a
-given number of men, being composed of the values of the two elements,
-labour and profits, varying as above described, must be constant, and
-may therefore, with propriety, be proposed as a standard measure.
-
-I have entered at some length into the details which show the necessary
-constancy of the value of labour, on account of its great importance;
-but, in reality, it follows directly from the manner in which the
-natural value of commodities and of wages is estimated, that when the
-labourer earns a greater or a smaller quantity of money or necessaries,
-it is not the value of labour which varies, but, as Adam Smith says,
-“it is the goods which are cheap in the one case and dear in the other.”
-
-If labour alone, without any capital, were employed in procuring the
-fruits of the earth, the greater facility of procuring one sort of them
-compared with another, would not, it is acknowledged, alter the value
-of labour, or the exchangeable value of the whole produce obtained by a
-given quantity of exertion. We should, without hesitation, allow that
-the difference was in the cheapness or dearness of the produce, not of
-the labour.
-
-In the same manner it will follow, that when capital and profits enter
-into the computation of value, and the demand for labour varies, the
-high or low reward of labour estimated in produce, implies a change in
-the value of the produce, not a change in the value of the labour.
-
-If the increased reward of the labourer takes place without an increase
-of produce, this cannot happen without a fall of profits, as it is
-a self-evident truth, that given the quantity of the produce to be
-divided between labour and profits, the greater the portion of it which
-goes to labour the less will be left for profits. What then will be
-the result? It will appear that the value of the produce has fallen,
-and the value of wages, or of labour, will have remained the same. To
-obtain any given portion of the produce the same quantity of labour is
-necessary as before, but profits being diminished, the value of the
-produce is decreased; while this diminution of profits in reference to
-the value of wages is just counterbalanced by the increased quantity
-of labour necessary to procure the increased produce awarded to the
-labourer, leaving the value of labour the same as before.
-
-Perhaps in the case just supposed, the result may be said to be
-occasioned by a fall in the value of the produce, without what could
-properly be called an increased demand for labour. But if we suppose
-that a considerable number of labourers were sent out of the country,
-or swept off by a plague, there could then be no doubt of a great
-demand for labour, yet the result would be similar. A larger quantity
-of produce would necessarily be awarded to the labourer, and profits
-would fall. A given quantity of produce obtained by the same quantity
-of labour as before, would fall in value on account of the fall of that
-part of its value which consisted of profits, while the fall of profits
-on the increased wages would be balanced by the increased labour
-necessary to obtain them.
-
-If instead of labourers being sent out of the country, labourers were
-imported, the result would be just opposite. A smaller quantity of
-produce would be awarded to the labourer and profits would rise. A
-given quantity of produce, which had been obtained by the same quantity
-of labour as before, would rise in value on account of the rise of
-profits, while this rise of profits, in reference to the wages of the
-labourer, would be balanced by the smaller quantity of labour necessary
-to obtain the diminished produce awarded to the labourer.
-
-In the former case of the demand for labour, it appeared that the
-greater earnings of the labourer were occasioned, not by a rise in the
-value of labour, but by a fall in the value of the produce for which
-the labour was exchanged. And in the latter case of the abundance
-of labour, it appeared that the small earnings of the labourer were
-occasioned by a rise in the value of the produce, and not by a fall in
-the value of the labour.
-
-The result would be similar, if instead of supposing the same quantity
-of produce to be obtained by the same quantity of labour, we were to
-suppose the greatest variations to take place in the fertility of
-the soil, and, consequently, in the productive power of labour. In
-all cases it would still be found that, as Adam Smith says, it is
-the produce which varies in value, not the labour for which it will
-exchange; and if money were obtained in the way in which its value
-would unquestionably be the most constant, all these variations would
-appear in the money prices of commodities, whenever the demand for
-labour varied; while the money price of a given quantify of labour
-would remain the same.[I]
-
-The following Table will further illustrate the necessary constancy
-in the value of labour, and some of its most important results, in a
-clearer manner and in a shorter compass than if each case were taken
-separately.
-
-The first column represents the varying fertility of the soil, by the
-varying quantity of corn which can be obtained by the labour of a given
-number of men.
-
-The second column represents the yearly corn wages of each labourer,
-determined by the state of the demand and supply of produce compared
-with labour.
-
-The third column represents the variable advances of produce, in the
-form of corn wages, which, according to the rate at which the labourers
-are paid, are necessary to obtain the produce of the first column.
-
-The fourth column represents the rate of profits determined in the
-common way, by the proportion which the excess of the produce in the
-first column above the produce paid to the labourers in the third,
-bears to these advances.
-
-The fifth and sixth columns represent the quantity of labour required
-to produce the varying corn wages of the given number of men, with the
-profits estimated also in quantity of labour; and the reader will see
-at once that these two columns must necessarily, from the manner in
-which profits and wages are estimated, make up the constant quantity
-and value of labour which appears in the seventh column.
-
-The eighth and ninth columns show the value of a given quantity of
-corn, and the value of the produce of a given number of men under the
-varying circumstances supposed.
-
-_Table illustrating the invariable Value of Labour and its Results._
-
-  KEY:
-
-  1.  Quarters of Corn produced by Ten Men, of varying Fertility of the
-      Soil.
-
-  2.  Yearly Corn Wages to each Labourer, determined by the Demand and
-      Supply.
-
-  3.  Advances in Corn Wages, or variable Produce commanding the Labour
-      of Ten Men.
-
-  4.  Rate of Profits under the foregoing Circumstances.
-
-  5.  Quantity of Labour required to produce the Wages of Ten Men under
-      the foregoing Circumstances.
-
-  6.  Quantity of Profits on the Advances of Labour.
-
-  7.  Invariable Value of the Wages of a given Number of Men.
-
-  8.  Value of 100 Quarters of Corn under the varying Circumstances
-      supposed.
-
-  9.  Value of the Product of the Labour of Ten Men under the
-      Circumstances supposed.
-
-  +---------+--------+---------+-----------+------+------+----+------+-------+
-  |    1.   |   2.   |    3.   |     4.    |  5.  |  6.  | 7. |  8.  |   9.  |
-  +---------+--------+---------+-----------+------+------+----+------+-------+
-  | 150 qrs.| 12 qrs.| 120 qrs.| 25 pr. Ct.| 8    | 2    | 10 | 8.33 | 12.5  |
-  | 150     | 13     | 130     | 15.38     | 8.66 | 1.34 | 10 | 7.7  | 11.53 |
-  | 150     | 10     | 100     | 50        | 6.6  | 3.4  | 10 | 10   | 15    |
-  | 140     | 12     | 120     | 16.66     | 8.6  | 1.4  | 10 | 7.14 | 11.6  |
-  | 140     | 11     | 110     | 27.2      | 7.85 | 2.15 | 10 | 9.09 | 12.7  |
-  | 130     | 12     | 120     | 8.3       | 9.23 | 0.77 | 10 | 8.33 | 10.8  |
-  | 130     | 10     | 100     | 30        | 7.7  | 2.3  | 10 | 10   | 13    |
-  | 120     | 11     | 110     | 9         | 9.17 | 0.83 | 10 | 9.09 | 10.9  |
-  | 120     | 10     | 100     | 20        | 8.33 | 1.67 | 10 | 10   | 12    |
-  | 110     | 10     | 100     | 10        | 9.09 | 0.91 | 10 | 10   | 11    |
-  | 110     | 9      | 90      | 22.2      | 8.18 | 1.82 | 10 | 11.1 | 12.2  |
-  | 100     | 9      | 90      | 11.1      | 9    | 1    | 10 | 11.1 | 11.1  |
-  | 100     | 8      | 80      | 25        | 8    | 2    | 10 | 12.5 | 12.5  |
-  | 90      | 8      | 80      | 12.5      | 8.88 | 1.12 | 10 | 12.5 | 11.25 |
-  +---------+--------+---------+-----------+------+------+----+------+-------+
-
-The first and most important truth illustrated in the table is, that,
-from the division of value into labour and profits, and the mode in
-which profits are always estimated, it follows necessarily, that the
-quantity of labour required to produce the wages of a given number of
-men, with the addition of the profits upon these advances estimated
-in labour, must always be exactly the same as the quantity of labour
-which the wages will command, and must together always make up the
-constant quantity which appears in the seventh column. But the quantity
-of labour required to produce the varying wages of ten men is, under
-the different circumstances supposed, very different, as appears in
-the fifth column; and it is obvious, that while the numbers in the
-fifth column vary, the numbers in the seventh column, or the quantity
-of labour and profits united, cannot be constant, unless, as the
-quantity of labour required to produce the wages of ten men increases,
-the quantity of profits estimated in labour diminishes exactly in the
-same degree. But this, from what has before been stated, must, under
-the circumstances supposed, be the case. And it follows, that if the
-natural value of a commodity may be estimated by the labour and profits
-of which it is composed, the natural value of the corn wages of a
-given number of men must always be the same. But such wages, according
-to the postulate with which we commenced, must necessarily be equal to
-the quantity of labour for which they will exchange. Consequently the
-value of a given quantity of labour must, under every variety which can
-take place in the fertility of the soil and the corn wages of labour,
-be always constant. It is, however, of the greatest importance to
-remark, that an exact balance of labour, and of profits estimated in
-labour, so as to yield always a constant quantity, cannot take place in
-the production of any one commodity or given portion of a commodity;
-because any one commodity, or given portion of a commodity, is liable
-to vary in relation to labour, and such variation will either increase
-or decrease the amount of the labour and profits united. It is only the
-varying wages of a given number of men bearing, as the terms imply, a
-constant relation to labour, which, under any changes in the quantity
-of labour required to produce them, can still continue of the same
-natural value. And it is precisely this necessary constancy in the
-natural value of the varying corn wages of labour, which renders the
-labour which a commodity will command, a standard measure both of its
-natural and exchangeable value.
-
-2dly. It appears from the Table, that given the produce obtained by ten
-men, then as corn wages rise, the value of the produce will fall, or
-command less labour; and the constant value of the advances in labour
-absorbing a larger proportion of the value of the produce, profits will
-fall in proportion. But when more is produced by the same number of
-persons, then unless the corn wages rise so high as exactly to balance
-it, the value of the whole produce is increased, and the rate of
-profits and corn wages may both rise at the same time. Thus while the
-produce is 130 quarters, as labour rises from ten to twelve quarters,
-profits fall in an opposite direction from 30 per cent. to 8.3. per
-cent.; but if we compare the wages of labour when the produce is 130
-quarters, with the wages of labour when the produce is 150, it appears
-that labour may rise from twelve to thirteen quarters, at the same time
-that profits rise from 8.3. to 15.38.
-
-A third result illustrated in the Table is, that labour being constant,
-all commodities into which profits enter, which may be said to be
-nearly the whole mass, must fall on the fall of profits, and among
-these will, of course, be found metallic money. Supposing, therefore,
-money always to require in its production the same quantity of labour
-and capital, it will regularly fall in value in the progress of
-cultivation and population; while labour being uniform in value will
-rise in money price,[J] and the demand for corn increasing, compared
-with the demand for labour, the money price of corn will probably rise
-still more. But if the labourers were paid at all times exactly the
-same quantity of corn, (which, however, cannot be the case,) the value
-of corn, like the value of wages, would be constant, and the variations
-of fertility would only show themselves in the enormous variations of
-profits.
-
-Thus, when labour is paid at ten quarters each man, the numbers in the
-eighth column, or the value of a given quantity of corn, must, it is
-obvious, always be the same, whatever be the quantity produced; and
-when the land is fertile, the small quantity of labour required to
-produce ten quarters is balanced by the great profits which appear in
-the fourth column.
-
-In the actual state of things, corn generally rises in the progress
-of cultivation, not only nominally, but really, as may be seen in the
-eighth column, while labour, it is evident, can only rise nominally.
-
-A fourth result shown in the Table is, that the value of the corn
-obtained by ten men depends mainly upon the rate of profits, which
-again depends mainly upon the demand and supply of corn compared with
-labour. If corn be in such demand, that notwithstanding the fertility
-of the soil, a small quantity of it comparatively will purchase the
-labour required, profits will be very high, and the value of the
-produce will greatly exceed the constant value of the wages of the
-labour advanced; but if the supply of corn be so great, compared with
-labour, that a large quantity of it is required to purchase the given
-quantity of labour, profits will be low, and the excess of the value of
-the produce above the constant value of the advances in wages will be
-inconsiderable.
-
-Thus, when the produce is 150 quarters, if corn be in such plenty that
-each labourer is awarded thirteen quarters, the profits of stock will
-be only 15.38 per cent.; and this rate of profit, added to the constant
-value of the advances in labour, which are represented by 10, will
-make the natural value of the produce equal to 11.53. But if corn,
-notwithstanding the fertility of the soil, be only supplied in such
-quantities, compared with labour, as to award the labourer no more than
-ten quarters, the rate of profits, instead of 15.38 per cent., will be
-50 per cent., and the value of the produce, instead of being 11.53,
-will be 15.
-
-This shows how greatly the natural value of commodities depends upon
-the average state of the demand and supply, and completely confirms
-the position in my last work, that the only difference between natural
-and market prices is, that the former are regulated by the average and
-ordinary relations of the demand to the supply, and the latter, when
-they differ from the former, upon the accidental and extraordinary
-relations of the demand to the supply.
-
-Fifthly, it follows, from the constant value of labour, that,
-
-Given the value of money in different countries, the natural prices of
-commodities, in which the same quantities of labour have been employed,
-will depend upon the rate and quantity of profits.
-
-Given the rate and quantity of profits, and the value of money, the
-natural prices of commodities in different countries will depend upon
-the quantity of labour employed upon them.
-
-And given the quantity of labour employed on them, and the rate and
-quantity of profits, the natural prices of commodities will depend upon
-the value of money.
-
-But in reality none of the ingredients of natural or money price are
-given, excepting the natural value of labour, and consequently the
-money prices of commodities which regulate the ordinary rate at which
-different countries exchange their commodities with each other, will be
-determined partly by the quantity of labour employed upon them, partly
-by the ordinary rate of profits, and partly by the value of money.
-
-The value of metallic money, it has before been stated, while it
-continues to be obtained by the same quantity of labour and capital,
-must always fall with the fall of profits, and will consequently
-have a strong tendency to fall with the progress of cultivation and
-improvement; but as few nations comparatively have mines of their own,
-the supplies which they obtain of the precious metals must be purchased
-by their exportable commodities; and these are produced and exported
-under such a variety of circumstances, in respect to cost, and the
-value of the same amount of the precious metals is further so much
-affected by the demand for corn and labour, the state of credit, paper
-currencies, taxation, and other circumstances, that no rule can safely
-be laid down on the subject.
-
-Generally the value of money is the lowest in the richest and most
-manufacturing countries; but this is not always the case; and a country
-which raises an abundance of raw produce at a small expense of labour
-and profits, while its money value is kept up by a ready sale for it
-in foreign markets, and a continued demand for labour, may have the
-value of its money very low, although it is not rich or manufacturing.
-This is the case with the United States of America, where, owing to the
-low value of money, or high money price of labour, there are no doubt
-some commodities which, though produced by a less value of labour and
-profits, cannot be exported to England on account of the higher value
-of money in England; while we know that there are many other products
-which are obtained by so much a smaller quantity of labour and profits
-as more than to counterbalance the higher value of money in England, or
-the higher money price of labour in the United States.
-
-In the same manner there are no doubt many commodities which, though
-obtained in England by a much less quantity of labour and profits than
-in India, cannot be exported to that country on account of the very
-high value of money in India; while, on the other hand, there are a few
-commodities in England in which the saving of labour and the effects of
-capital and skill have been so great, as to allow of their exportation
-from a country where the money wages of labour are two shillings a day,
-to one where they are only fourpence; that is, from a country where
-the value of money is six times lower than in the country to which the
-commodities are sent.
-
-On the same principle, commodities may be imported from India into
-England, although the same commodities might be produced in England
-by a much less quantity of labour and profits, the low value of money
-in England more than compensating the greater quantity of labour and
-profits employed in India.
-
-It is evident, therefore, that the values which determine what
-commodities shall be exported, and what imported, depend, as before
-stated, partly upon the quantity of labour employed in their
-production, partly upon the ordinary rates of profits in each country,
-and partly upon the value of money.
-
-A sixth result illustrated in the Table is the important distinction
-between cost and value. The two last columns show the value of a given
-quantity of corn, and the value of the product of a given quantity of
-labour, under all the variations which may be supposed of fertility and
-corn wages. The difference between the numbers in the last column, and
-the uniform number expressing the value of labour, shows exactly the
-difference between the value of the labour which has been employed upon
-a production, or its cost, and the labour which that production will
-command, or its natural and exchangeable value; which, where profits
-and wages are alone concerned, must be exactly equal to the additional
-value occasioned by the amount of profits.
-
-The reader will be aware that neither the preceding Table, nor any
-thing which has been said, tends in any degree to contradict the
-acknowledged truth that different _kinds_ of labour are of very
-different natural and exchangeable value. It will be further allowed,
-that even the same kind of labour, and the kind which has been
-especially referred to, namely common agricultural labour, may, under
-particular circumstances, and in particular places, vary in value from
-a partial or temporary state of demand and supply. We well know, that,
-from a partial and temporary demand at a particular period of the year,
-summer wages are of a very different value from winter wages; but in
-reality summer wages form a very important part of the wages of the
-whole year. They are generally employed to pay the rent of the house,
-or to purchase the necessary clothing for the family. They could not be
-essentially diminished, without altering the condition of the labourer
-throughout the year, or the rate of the increase of population. And if
-the labourer earned a smaller quantity of corn throughout the year,
-with an undiminished produce, it appears from the Table that the value
-of that corn would still remain the same, owing to the increased value
-of those profits of which it was in part composed.
-
-With regard to the variations in the value of labour in different
-parts of the same country, if they are not partial, or temporary, and
-consequently exceptions to the general average, they are all resolvable
-into those differences in the value of money, which unquestionably take
-place in different parts of the same country, and arise from a want of
-demand for corn and labour, and a want of commodities to exchange with
-those parts of the country which are richer in the precious metals.
-
-Having obtained a measure of the value of commodities in their more
-simple forms, we may apply this measure to the ingredients which
-compose the most complicated productions, and estimate all the advances
-which consist of accumulated profits, rents, tithes, and taxes in
-labour. In the case of taxes on the wages of labour, or an increase in
-the prices of those other necessaries of the labourer, besides food,
-which may occasion the sale of a greater quantity of the produce, in
-order to pay the same number of labourers, as these increased advances
-will have the same effect upon profits as a simple increase of wages,
-they will in no respect interfere with the constant value of labour,
-though an increase of wages, under such circumstances, will be of no
-advantage to the labourer.
-
-Cases will of course frequently occur, in which the advances which do
-not consist of wages vary in a different degree from wages; but still
-the value of labour will remain constant. If the produce, instead of
-being obtained by the direct labour of a certain number of men, were
-obtained by the direct labour of only a part of this number, together
-with an amount of materials, or other advances consumed in the same
-time, equal to the labour of the other part, then upon a rise in the
-corn wages of labour, if the other advances were to fall, or not to
-be worth so much labour as before, it is obvious that the profits of
-stock would not fall so much as if the same rise of corn wages had
-taken place, when all the advances had been in labour; and it might be
-thought at first that profits not falling in proportion to the rise of
-labour, the value of labour would not continue the same. But it will
-be observed, that, in all cases of this kind, there will be a less
-value of labour, which is equivalent to a less quantity of it employed
-to obtain the same produce; and a less quantity of labour altogether
-being consequently necessary to produce the food of the labourer, than
-if labour alone had been employed, the higher profits, or smaller
-diminution of the former profits, will only just be such as to maintain
-labour of a constant value.
-
-Let us suppose, for instance, that 120 quarters of corn are produced by
-ten men. If each man were paid ten quarters, profits would be 20 per
-cent.; and if wages were increased to eleven quarters, profits would
-fall from 20 per cent. to 9.09 per cent. Now supposing, that, instead
-of ten men being directly employed, five only are so employed, and that
-the other advances consist of capital which will continue of the same
-value as the corn;[K] then, while each labourer earns ten quarters,
-and the other capital advanced is worth the labour of five men so
-paid, profits will be, as before, 20 per cent. But if the labourer be
-paid eleven quarters instead of ten, profits will not fall, as before,
-from 20 per cent. to 9.09 per cent., but only from 20 per cent. to
-14.28 per cent.; because the advances, instead of being 110, will only
-be 105; and the value of these advances estimated in labour paid at
-eleven quarters each man, being only 9.54, instead of 10; 9.54 may be
-considered as the number of persons employed. Then if 120 quarters
-be produced by 9.54 men, 105 quarters will be produced by 8.34. But
-8.34, increased by a profit of 14.28, will make 9.54, the quantity of
-labour employed, and show that the natural value of labour is always
-proportioned to its quantity. In the former case, when ten men were
-employed at eleven quarters, as the advances were 110 quarters,
-instead of 105, the labour required to produce the food of the labourer
-was 9.166, and consequently a profit of only 9.09 will be sufficient to
-make up ten, the number of men employed, and thus equalize the value
-with the quantity.
-
-In the case of fixed capital of considerable duration, there is always
-a probability that it will alter in value in reference to the quantity
-of labour, and of profits estimated in labour, of which it was composed
-when first produced; but after having advanced so far in establishing
-the labour which a commodity will command, as the measure of its value,
-we are entitled to consider the present value estimated in labour of
-any fixed capital which is about to be employed in production, as
-representing the quantity of accumulated labour actually so applied.
-It is further necessary, as before stated, to reckon the remaining
-value of the fixed capital as a part of the produce resulting from the
-whole of the accumulated and immediate labour employed. When, however,
-these corrections have been made, all the cases in which fixed capital
-enters, which may be said to include the great mass of commodities,
-will be found to answer to the theory as accurately as the simplest
-case that can be stated.
-
-The exceptions, therefore, to the general proposition that the labour
-which commodities will command may be considered as a standard measure
-of their value are only apparent, not real, and may all be consistently
-explained.
-
-And if the proposition be true, a standard measure of value is of so
-much importance in political economy, and the one proposed is at all
-times so very ready and easy of application,[L] that there is scarcely
-any part of the science in which it will not tend to simplify and
-facilitate our inquiries.
-
-To advert shortly to a few points on which there have been some
-differences of opinion.
-
-On the subject of rents, such a standard would determine, among other
-things, that, as the increase in the _value_ of corn is only measured
-by a decrease in the corn wages of labour, such increase of value is
-a very inconsiderable source of the increase of rents compared with
-improvements in agriculture; and on the same principle that, if tithes
-do not fall mainly on the labourer, the acknowledged diminution in the
-_corn_ rents of the landlord, occasioned by tithes, cannot be balanced
-by an increase of their value, and that, consequently, tithes must fall
-mainly on the landlord.
-
-On the subject of labour it would determine, that the increasing
-_value_ of the funds destined for the maintenance of labour can alone
-occasion an increase in the demand for it, or the will and power
-to employ a greater number of labourers; and that it is consistent
-with theory, as well as general experience, that high corn wages, in
-proportion to the quantity of work done, should frequently occur with
-a very slack demand for labour;[M] or, in other words, that when the
-_value_ of the whole produce falls from excess of supply compared with
-the demand, it cannot have the power of setting the same number of
-labourers to work.
-
-On the subject of profits, it would show, that they are determined,
-not by the varying value of a given quantity of labour compared with
-the constant value of the commodities which it produces, but, as is
-more conformable to our experience, by the variable value of the
-commodities produced by a given quantity of labour, compared with the
-constant value of such labour; and that profits never, on any occasion,
-rise or fall, unless the value of the produce of a given quantity of
-labour rises or falls, either from the temporary or ordinary state of
-the demand and supply.
-
-On the subject of the distinction between wealth and value, it would
-show, that though they are by no means the same, they are much more
-closely connected than they have of late been supposed to be; and
-that the best practical measure of the relative wealth of different
-countries would be the quantity of common labour which the value of the
-whole annual produce of each country would enable it to command at the
-actual price of the time, which in some rich countries might amount
-to above double the number of families actually employed, and in poor
-countries might not greatly exceed such number.
-
-On the subject of foreign trade, it would show that its universally
-acknowledged effect in giving a stimulus to production, generally, is
-mainly owing to its increasing the value of the produce of a country’s
-labour by the extension of demand, before the value of its labour is
-increased by the increase of its quantity; and that the effect of every
-extension of demand, whether foreign or domestic, is always, as far as
-it goes, to increase the average rate of profits[N] till this increase
-is counteracted by a further accumulation of capital.
-
-On the subject of the accumulation of capital it would show that if the
-increase of capital be measured by the increase of its materials, such
-as corn, clothing, &c., then it is obvious that the supply of these
-materials may, by saving, increase so rapidly, compared with labour and
-the wants of the effective demanders, that with a greater quantity of
-materials the capitalist will neither have the power nor the will to
-set in motion the same quantity of labour, and that consequently the
-progress of wealth will be checked; but that if the increase of capital
-be measured, as it ought to be, by the increase of its power to command
-labour, then accumulation so limited cannot possibly go on too fast.
-
-On the general subject of demand and supply, it would show that they
-must be restored to their universal empire, both in reference to the
-prices of commodities, and the dependence of the progress of wealth on
-the due proportion maintained between them. If the cost of a commodity
-be considered as composed exclusively of the actual advances of the
-capital required for its production, which seems to be the most natural
-and correct mode of viewing it,[O] then it is obvious, that as both the
-prices and values of commodities are proportioned to these advances,
-with the _addition_ of profits very variable in their amount, neither
-of them can be determined by these advances alone, or by the costs of
-production so defined. We must therefore have recourse to demand and
-supply. And on the other hand, if profits be included in the costs of
-production, then, as it follows, from the constancy of the value of
-labour, that ordinary profits are determined by the ordinary demand
-compared with the ordinary supply of the products of the same quantity
-of labour, the certain conclusion must be, that demand and supply
-enter powerfully into the costs of production according to this latter
-definition, and that therefore their dominion as to prices and value is
-absolutely universal.[P]
-
-Nor would they be less so in their effect on the general progress of
-wealth. If commodities and the materials of capital increase faster
-than the effectual demand for them, profits fall prematurely, and
-capitalists are ruined without a proportionate benefit to the labouring
-classes, because an increasing demand for labour cannot go on under
-such circumstances. If the value of commodities and the materials of
-capital increase for some time without an increase of their quantity,
-the labouring classes must soon be supported on the lowest amount of
-food on which they will consent to keep up their actual number; and
-the main part of the population would suffer severely without any
-proportionate benefit to the capitalists; because the value of their
-capitals, measured by the labour which they can command, would shortly
-be incapable of further increase. In either of these cases a decided
-check would be given to the progress of wealth, which progress must
-necessarily be the greatest, when the joint product of the capitalist
-and labourer, which the state of the land and the skill with which
-it is worked enable them to obtain, is so divided between them, that
-in the progress of cultivation and improvement any unnecessary or
-premature fall either of profits or corn wages is prevented. But this
-can only be accomplished by a proper proportion of the supply to the
-demand, that is, by an accumulation so proportioned to the actual
-consumption of produce by those who can make an effectual demand for
-it, as to occasion the greatest permanent annual increase in the value
-of the materials of capital.
-
-The reader of my last work, in which I laid down as my rule, to admit
-no principles of Political Economy as just which were inconsistent
-with general experience, will be aware that the conclusions to which
-I have here shortly adverted, as following necessarily from the
-constancy of the value of labour, are almost exactly the same as the
-conclusions of that work. And the reason is, that although at that time
-I did not think that the labour which a commodity would command could,
-with propriety, be considered as a _standard_ measure of value, yet I
-thought it the nearest approximation to a standard of any one object
-known, and consequently applied it, on almost all occasions, to correct
-the errors arising from the application of more variable measures. The
-conclusions, therefore, of my former and present reasonings were likely
-to be nearly the same, although the premises might now admit of further
-correction and illustration, and the conclusions might be pronounced
-with greater precision and certainty.
-
-It was my intention to have done this much more fully than in
-the present treatise; but having been interrupted by unforeseen
-circumstances, and being unwilling to delay any longer the publication
-of this essential part of my proposed plan, I have determined to submit
-it to the public in its present form; and will only add here a few
-observations on a question closely connected with it, which has lately
-excited much interest and discussion.
-
-Among the questions for the determination of which a standard measure
-of value is most particularly required, are those which relate to
-alterations in the value of the currency. We know perfectly well, from
-experience, that commodities are subject to great variations of price,
-and that many of these variations may arise from causes which alter
-the natural value of these commodities, and are equally applicable to
-a large mass of them, as to a very few. On the supposition of a large
-mass being altered, any article which had retained the same natural
-value, would have its power of purchasing considerably affected;
-but this would be owing to an alteration in the value of the mass
-of commodities, and not in the value of the article, which by the
-supposition remains the same. It follows, that although money may
-increase in its power of purchasing, it does not necessarily increase
-in value. But in estimating the value of money, some criterion or other
-must be referred to. If we cannot refer to the mass of commodities, we
-must refer to some one object, and this object can only be labour. Our
-present inquiry, therefore, must be into the causes which affect the
-value of the precious metals as compared with labour.
-
-These causes are of two kinds:--first, those which occasion a high
-or low rate of profits, which, as connected with the progressive
-cultivation of poorer land, and operating universally and necessarily
-on the precious metals in common with all other commodities, and
-raising or lowering them with regard to labour, may be denominated
-the primary and necessary cause of the high or low value of metallic
-money.--And secondly, those which depend on the fertility and vicinity
-of the mines; the different efficiency of labour in different
-countries; the abundance or scarcity of exportable commodities; and the
-state of the demand and supply of commodities and labour compared with
-money; which may be denominated the secondary and incidental causes of
-the high or low value of metallic money.
-
-These two different kinds of causes will sometimes act in conjunction,
-and sometimes in opposition, so that it may not always be easy to
-distinguish their separate effects; but as these effects have really a
-different origin, it is desirable to keep them as separate as we can.
-
-The marks which distinguish a fall in the value of the precious metals,
-arising from the primary cause, are,--a rise in the money price of raw
-produce and labour, without a general rise in the price of wrought
-commodities. All of them, indeed, as far as they are composed of
-raw produce, will have a tendency to rise; but, in a large class of
-commodities, this tendency to rise will be more than counterbalanced
-by the effect of the fall of profits.--Some therefore will rise, and
-some will fall, as I stated in my last work,[Q] according to the nature
-of the capitals employed upon them, compared with those which produce
-money; and while the money prices of corn and labour very decidedly
-increase, the prices of commodities, taken on the average, may possibly
-remain not far from the same.
-
-On the other hand, when the value of metallic money falls, from
-the secondary causes above noticed, there will be a tendency to a
-proportionate rise of all commodities as well as of corn and labour,
-though in some cases it may take a considerable time before it is
-completely effected. And, in general, whenever a fall in the value of
-money takes place, without a fall in the rate of profits, an event
-which is generally open to observation, it is to be attributed to
-incidental and secondary causes affecting the relations of money to
-labour, and not to that which is connected with the taking of poorer
-land into cultivation.
-
-Of these two classes of causes the second produces much the greatest
-part of those differences in the value of metallic money, which are the
-most observable in different countries, and at different periods in
-the same country. If India and England had each of them mines of equal
-natural fertility, the superior efficiency of English labour, assisted
-by machinery, would extract a much greater quantity of metal from such
-mines; and the money price of labour might be three or four times
-higher, and the value of money three or four times lower in England
-than in India.
-
-The same effect is, at present, practically produced by the skill and
-machinery employed on the manufactures with which England purchases her
-gold. If she can prepare exportable commodities which are in demand
-abroad, with much less labour than other nations, she will be able to
-buy gold at a much lower natural value, and will continue to import it
-under favourable exchanges, till its value falls in proportion.
-
-It is farther established by experience, that a brisk or slack
-demand for commodities and labour, and particularly for corn, has
-a considerable effect on the value of gold. Such a demand not only
-occasions a more rapid circulation of money, and enables the same
-quantity to perform a greater number of transactions, but calls into
-action a greater quantity of credit and private paper,[R] so that a
-general rise of bullion prices, including labour, seems to be at all
-times possible, even without any fresh importations of the precious
-metals; and the only practical limit to this rise, is the turn of the
-exchange, and the impossibility of maintaining the exchanges nearly at
-par beyond a certain elevation of labour and commodities.
-
-The secondary and incidental causes here enumerated, as affecting the
-value of gold, often completely overcome the effects arising from the
-primary cause. The state of bullion prices in most of the countries of
-the commercial world make it evident, that the efficiency of labour,
-and the abundance of exportable commodities, are much more powerful
-in lowering the value of bullion in the countries where they prevail,
-than high profits in raising it; and the same appears to be true, in
-reference to an increased demand for corn and labour.
-
-It cannot be doubted that the rate of interest and profits was
-comparatively high during the late war, and this high rate of profits
-would naturally have a tendency to lower the bullion price of labour;
-but this was more than counterbalanced by the tendency of a brisk
-demand for corn and labour to raise money prices generally, including
-labour, and the consequence was a fall, during the greatest part of the
-time, in the value of bullion.
-
-It can as little be doubted, that the rate of interest and profits has
-fallen since the war, and this low rate of profits would have a natural
-tendency to raise the bullion price of labour; but this has been more
-than counterbalanced by the tendency of a slack demand for corn and
-labour to lower prices generally, and the consequence has been a rise
-in the value of gold, and a still greater rise in the value of the
-currency.
-
-This rise, however, in the value of the currency, has been by no means
-so considerable as those are inclined to make it, who would measure it
-by the fall of agricultural produce; nor is it so inconsiderable as
-those imagine who would measure it solely by the difference between
-paper and gold. But whether this difference is the whole of what can
-be fairly attributed to the Bank Restriction and the return to cash
-payments, or not, it may by no means be the whole change which has
-taken place in the value of the currency, when compared with an object
-which has not changed.
-
-It would be very desirable to be able to form an accurate estimate of
-the rise and fall which has taken place in the bullion price of labour
-for the last thirty years; but unfortunately, during the latter part of
-the period, no general estimates of the price of labour have been made,
-at least none that have come to my knowledge; and there is reason to
-think that, under the late stagnation in the demand for agricultural
-labour, the common rate of wages in England has been more than usually
-interrupted by the operation of the poor laws. On this account, I have
-made some inquiries respecting wages in Scotland, and have obtained a
-most valuable communication; but before I refer to it particularly,
-it may be useful to consider the results of the data we possess in
-England. The rise in the bullion price of labour from 1790 to 1810 and
-11, may be established upon satisfactory grounds, although the amount
-of the fall which has since taken place may be a matter of considerable
-uncertainty.
-
-According to the communications to the Board of Agriculture, the price
-of labour, in 1790, was 8_s._ 1_d._ per week. In 1796, Sir F. M.
-Eden, in his work on the Poor, stated it at 8_s._ 11_d._ per week. In
-1803, the communications to the Board of Agriculture make it 11_s._
-5_d._, and in 1810 and 11, according to satisfactory returns obtained
-by Arthur Young, it was 14_s._ 6_d._[S] This was a steady and very
-great rise in the price of agricultural labour during the course of
-twenty years. But in 1810 and 11, paper had separated from gold to a
-considerable extent. Taking an average of the market prices of gold
-during these two years, this price was £4. 13_s._ and reducing the
-14_s._ 6_d._ currency to a bullion price, it will appear that the
-bullion wages of labour in 1810 and 11 were a little above 12_s._ The
-bullion price of labour had therefore risen 50 per cent. Now, on the
-supposition that manufacturing and mercantile labour continued to bear
-the same proportion to agricultural labour as before,[T] it is obvious
-that there would be a difference of 50 per cent. between the quantity
-of labour and profits with which an ounce of gold could be purchased
-at the former period, compared with the latter; that is, while labour
-was 8_s._ 1_d._ per week, it would require a piece of muslin, which
-would command above nine and a half weeks labour, to purchase an ounce
-of gold; but when wages were 12_s._ per week, a piece of muslin, which
-would command little more than six and a half weeks labour, would be
-sufficient for the purpose. The natural value of bullion, therefore,
-the quantity of English labour and profits of which it was composed,
-must have fallen to that extent.
-
-Mr. Tooke, in his late valuable publication, after stating very justly
-that an unusual proportion of unfavourable seasons must have had a
-considerable effect in raising the prices of corn and labour during
-the period adverted to, goes on to “ask upon what ground of fact or
-reasoning can the high prices included in such a period be ascribed, in
-fairness, to alterations in the currency, beyond the degree indicated
-by the difference between paper and gold, when, after a sufficient time
-has elapsed for the subsidence of the extraordinary effects of such an
-unusual succession of bad seasons, there is a restoration to a level
-even somewhat lower than that from which the rise is assumed to have
-taken place, and to have continued progressively.”
-
-Of the subsidence here alluded to, before 1814, Mr. Tooke has certainly
-not given proofs sufficiently general; but without dwelling on this
-point, it appears to me that the question of the fall in the value of
-the currency including the gold, is exclusively a question of fact, and
-must be referred to some criterion. It is a very intelligible thing to
-say that paper has fallen, if it has fallen with regard to the gold
-which it professes to represent; but it is not intelligible to say
-that gold has not fallen, when it is acknowledged to have fallen both
-with regard to its power of purchasing generally, and its power of
-commanding labour; unless a reference can be made for the proof of it
-to some more satisfactory criterion. A season of scarcity will make
-corn dear, and a season of plenty cheap, without necessarily affecting
-labour in either case, as is shown by Adam Smith, and proved by
-repeated experience. But if seasons of scarcity occur so frequently as
-to raise generally the bullion price of labour, it must of necessity be
-accompanied by a power of purchasing bullion with a smaller quantity of
-labour and profits; otherwise the event could not occur. Whenever it
-does occur, the natural value of bullion falls.[U]
-
-The observations here made, with a view to place the controversy
-respecting the alterations in the currency on its proper ground, and to
-make the necessary distinction between facts and the causes which may
-have produced them, apply still more strongly to the publication of Mr.
-Blake, in much of the reasoning of which I entirely concur. He proposes
-to prove that it was the gold which rose, and not the paper which fell
-during the war, although he acknowledges as a matter of fact, that
-almost all prices, including labour, rose not only in paper but in
-gold. This has, no doubt, the air of a contradiction, according to all
-the common modes of estimating the value of money; and it certainly is
-not removed by showing that the main cause of these high prices was a
-great demand compared with the supply of commodities--a cause which,
-involving as it always does, more transactions on credit, and a more
-rapid circulation of currency, is one of the most legitimate causes of
-a fall in the value of money.
-
-Mr. Blake, however, is certainly right in his view of the effects of
-an unfavourable exchange on the price of gold, when it ceases to form
-a part of the circulation. It is not only possible that from this
-cause gold might for a time rise in value much beyond the expense of
-transporting it; but as a matter of fact, this did unquestionably occur
-at certain periods during the war. There is no account of the price
-of agricultural labour in England subsequently to 1811. Probably it
-did not rise any more; but if it did, judging from what took place in
-Scotland, it did not rise sufficiently to balance the subsequent rise
-in the market price of gold, which was from £4. 15_s._ in 1811, to £5.
-8_s._[V] in 1813. Consequently, in 1813, as compared with 1811, the
-value of gold must have risen considerably; and on the supposition that
-the price of labour did not rise after 1811, it would appear that the
-natural and exchangeable value of gold, as measured by the standard,
-rose above 13½ per cent.
-
-The rise of gold from the sudden fall of the exchange in consequence
-of Buonaparte’s return from Elba was still more remarkable. The price
-had been as low, in the spring of 1815, as 4_l._ 9_s._, and without
-any known change in the currency price of labour, it rose suddenly to
-5_l._ 5_s._, or 18 per cent.; and consequently, to purchase an ounce
-of gold it was necessary at that time to give commodities worth 18 per
-cent. more of agricultural labour than it might have been purchased
-for a month or two before. Whatever might have been the case with the
-paper, there could not, on any view of the subject, be the slightest
-foundation for the supposition of a sudden abundance and cheapness of
-labour just before the battle of Waterloo. In fact, agricultural labour
-had not fallen, and manufacturing labour was higher than usual; so
-that even without considering labour as a standard, it must have been
-acknowledged, that, of these two objects which had altered in relative
-value, it was the gold which had risen, not the labour which had fallen.
-
-In attempting to measure the _rise_ in the value of the currency since
-the period of the high prices, we shall be greatly assisted by the
-following very valuable document respecting the price of labour in the
-county or stewartry of Kircudbright. It is considered that the prices
-in this table represent pretty nearly (though they are rather below)
-the wages in other parts of Scotland. The labourers have no other
-allowances whatever except the daily wages specified in the table. In
-the intermediate years not quoted the wages remained stationary at the
-rates last mentioned; and when any change took place, the period of
-such change and the degree of it are regularly stated.
-
-  --------+-----------+-----------
-          | Rate per  |  Rate per
-   Years. |  day in   |   day in
-          |  winter.  |   summer.
-  --------+-----------+-----------
-   1760   |    4_d._  |     6_d._
-   1765   |    6_d._  |     8_d._
-   1770   |    8_d._  |    10_d._
-   1772   |    8_d._  |    12_d._
-   1776   |    7_d._  |     9_d._
-   1780   |    8_d._  |    10_d._
-   1791   |    8_d._  |    11_d._
-   1793   |    9_d._  |    12_d._
-   1798   |   11_d._  |    14_d._
-   1799   |   12_d._  |    15_d._
-   1800   |   14_d._  |    16_d._
-   1802   |   16_d._  |    18_d._
-   1811   |   18_d._  |    22_d._
-   1812   |   20_d._  |    24_d._
-   1816   |   18_d._  |    22_d._
-   1817   |   16_d._  |    20_d._
-   1819   |   15_d._  |    18_d._
-   1822   |   12_d._  |    15_d._
-
-In 1812, farm servants boarded in the house received from 14_l._ to
-22_l._ a year; women servants from 5_l._ to 8_l._ At present, (April,
-1823,) men receive from 10_l._ to 14_l._, and women from 3_l._ 10_s._
-to 6_l._
-
-Masons’ wages per day were three shillings in 1812, and are now
-half-a-crown.
-
-All work done by the piece, such as building stone fences, cutting
-ditches either for fences or drains, making roads, &c. may be done at
-a greater reduction of price than the fall in the rate of labour by
-the day. Work is now performed more frequently by the piece; and the
-best labourers are employed by the day; while the inferior workmen, and
-those unable from age, or other causes, to perform a full day’s work,
-are turned over to work by the piece. Agricultural affairs are under
-such depression, that the work is curtailed, and the competition for
-work is thereby increased.[W]
-
-The first thing that strikes us in the table is the very remarkable
-rise of labour in Scotland from 1760--much greater than in England, and
-much greater than in proportion to the rise in the price of corn. This
-was no doubt owing in part to the comparatively unimproved state of the
-district in question, and of Scotland in general at the earliest period
-adverted to. But to go no farther back than 1790, the period with which
-we commenced in England, it appears that the rise from 1790 to 1811,
-was considerably greater than in England, and nearly in proportion
-to the rise in the price of wheat. If, indeed, we take the price of
-labour as mentioned in the table for 1812, and compare it with the
-average price of wheat for the four years from 1812 to 1815 inclusive,
-during which period the same price of labour seems to have continued,
-it will appear, that labour, taking summer and winter wages together,
-rose in the proportion of from 19_s._ to 44_s._, while wheat rose
-from 43_s._ in 1792, (according to the average of England and Wales,
-which commences with that year,) to 88_s._ and therefore labour rose
-decidedly more than wheat, except in reference to the peculiarly high
-price of wheat in 1812.
-
-Taking the currency price of labour in Scotland as having risen from
-9½_d._ to 22_d._, and reducing the 22_d._ to its value in bullion,
-the average price of bullion in that year being 5_l._ 1_s._, it will
-appear, that the bullion price of labour in Scotland rose, in the
-interval between 1790 and 1812, from 9½_d._ to 16½_d._, or nearly 73
-per cent. And consequently, the same quantity of gold for which it
-would have been necessary to give commodities worth 173 days labour in
-1790, might be purchased for 100 days labour in 1812; or the value of
-the currency estimated in gold might be considered as having fallen in
-that proportion.
-
-In 1812, the bullion price of labour as above stated was 16½_d._;
-it has since fallen to 13½_d._, or in the proportion of from 100 to
-81·8--rather more than 18 per cent. This view of it shows most clearly
-the change in the bullion value of the currency since 1812. But if we
-wish to estimate the whole fall which has taken place in the currency,
-and then subtract what is due to the difference between paper and
-gold, it will appear that the whole fall since 1812, estimated on the
-currency wages of 1812, has been rather less than 39 per cent.; of
-which, if the average difference between paper and gold in the year
-1812 was as 101 to 78, about 23 per cent. would belong to the paper,
-leaving about 16 per cent. for the fall in the currency independently
-of the excess of paper prices above gold prices. The apparent
-difference in the results of these estimates arises merely from the per
-centage in the latter case being taken on a higher number.
-
-I stated before, that I was not aware of any data on which reliance
-could be placed respecting the amount of the fall of agricultural wages
-in England since the termination of the war; but on the supposition
-that the wages, which in 1810 and 1811 were 14_s._ 6_d._ per week,
-had fallen to 10_s._ then as the bullion wages of 1810 and 1811 were
-a little above 12_s._, the fall in the bullion value of the currency
-would be nearly 17 per cent., or for the same quantity of gold which in
-1810 and 1811 might be purchased by commodities worth 83 days labour,
-it would now be necessary to give commodities the natural value of
-which would be represented by 100 days labour. This difference of
-course includes the effects which have been attributed to the purchases
-of bullion by the Bank with a view to a return to cash payments, the
-amount of which separately it is scarcely possible to calculate; but I
-am inclined to agree with Mr. Tooke in thinking that it is not above
-one or two per cent. If the price of agricultural labour in England
-has not fallen so much as is here supposed, the difference in the
-value of the currency will not be so great as above stated, but on any
-supposition which is at all probable, it must be something considerable.
-
-It is certain therefore that the currency, estimated in what appears to
-be a correct standard of value, has fallen in such a degree beyond the
-difference between paper and gold, as to add much to the pressure upon
-the landed interest, though by no means to the extent which would be
-implied by measuring the value of the currency in agricultural produce.
-This produce, from the scantiness of the supply compared with the
-demand, was at one time much above its natural and ordinary value, and
-has since, from the abundance of the supply compared with the demand,
-been as much below its natural value; while the value of the currency,
-though it has fallen and risen considerably, has been much more steady
-than the value of corn.
-
-To what extent the alterations in the value of the currency beyond
-the difference between bullion and paper are attributable to the Bank
-restriction, and the return to cash payments, it is by no means easy
-to say. That the currency would have fallen very considerably under
-the circumstances of the last war, and risen very considerably under
-the circumstances which accompanied the peace, although paper had been
-kept on a par with gold, I cannot feel the least doubt; and probably
-the only difference has been, that as the increase of paper beyond what
-would circulate at par with gold gave facilities to production, and
-to the bringing of poor land into cultivation during the war, it has
-tended to increase the glut and low prices since the peace.
-
-But whatever may have been the pressure on the owners of land since
-the peace, they cannot have the slightest plea for an attempt to
-indemnify themselves at the expense of the public creditor. In the
-turns of the wheel of fortune all parties should have fair play; no
-class of persons can be justified in endeavouring to lift themselves
-up by using unfair and dishonourable means to pull others down; and
-least of all ought such means to be thought of by the landlords of this
-country, who, whatever inconveniences they may have suffered latterly,
-have unquestionably altogether benefited much more largely from the
-alterations in the value of the currency, than the very persons who in
-their opinion should be made to relieve them from their embarrassments.
-
-
-  London: Printed by C. Roworth,
-  Bell-Yard, Temple-Bar.
-
-
-
-
-FOOTNOTES
-
-
-[A] Mr. Ricardo, speaking of the commodities produced by the
-capitalist, says, “their whole value is divided into two portions only:
-one constitutes the profits of stock; the other the wages of labour.”
-(p. 107. 3d edit.) The language of Mr. Mill, in his _Elements of
-Political Economy_, is similar.
-
-[B] This is very properly stated by Colonel Torrens, in his _Production
-of Wealth_, c. 1. p. 28.
-
-[C] The effects of slow or quick returns, and of the different
-proportions of fixed and circulating capitals, are distinctly allowed
-by Mr. Ricardo; but in his last edition, (the third, p. 32.) he
-has much underrated their amount. They are both theoretically and
-practically so considerable as entirely to destroy the position that
-commodities exchange with each other according to the quantity of
-labour which has been employed upon them; but no one that I am aware
-of has ever stated that the different quantity of labour employed on
-commodities is not a much more powerful source of difference of value.
-
-[D] Colonel Torrens, by representing capital under the form of certain
-quantities of cloth and corn, instead of value in labour, has precluded
-himself from the possibility of giving a just view either of value,
-profits, or effectual demand. An increase of cloth and corn from
-the same quantity of labour is of no avail whatever in increasing
-value, profits, or effectual demand, if this increased produce will
-not command so much labour as before, an event which is continually
-occurring, from deficiency of demand.
-
-[E] Agricultural labour is taken for the obvious reasons that it is
-the commonest species of labour, that it directly produces the food of
-the labourer, and that it is the most immediately connected with the
-gradations of soil, and the necessary variations of profits. It is also
-assumed with Adam Smith, Mr. Ricardo, and other political economists,
-that, on an average, other kinds of labour continue to bear the same
-proportions to agricultural labour.
-
-[F] In my last work, I thought that a mean between corn and labour
-might be a better measure of value than labour alone; but I am now
-convinced that I was wrong, and that labour alone is the true measure.
-
-[G] Whenever it is said that the value of labour rises in the progress
-of cultivation, a comparison is made between the value of a given
-quantity of labour at two different periods; and when it is added that
-wages rise in proportion to the quantity of labour required to produce
-them, objects are measured solely by the quantity of labour employed
-upon them, although the rate of profits may be totally different.
-
-[H] This proposition is essentially the same as that which is very
-clearly and ably expressed by Mr. Ricardo in his chapter on Profits,
-(p. 128. 3d ed.) in the following terms: “in all countries and at all
-times profits depend on the quantity of labour requisite to provide
-necessaries for the labourers on that land, or with that capital which
-yields no rent;” a proposition which though incomplete in reference
-to the ultimate causes of the variations of profits, contains a most
-important truth. From this truth the legitimate deduction appears to
-me to be, the constant value of labour; but Mr. Ricardo has formed
-his system on a deduction exactly opposite to it. He has, however, in
-my opinion, amply compensated for the errors into which he may have
-fallen, by furnishing us, at the same time, not only with the means of
-their refutation, but the means of improving the science of Political
-Economy.
-
-[I] Mr. Ricardo, by supposing gold to be produced always by a certain
-quantity of labour and _capital_, is compelled to acknowledge that his
-standard “would be a perfect measure of value for all things produced
-under the same circumstances precisely as itself, but for no others.”
-p. 43. This concession appears to me quite fatal. We want to measure
-the value of commodities under _all circumstances_, and it is only gold
-obtained exclusively by labour, or labour itself, which can do this.
-See _Principles of Political Economy considered with a View to their
-Practical Application_, pp. 111 and 118.
-
-[J] It is this rise in the money price of labour, occasioned by the
-fall of profits, which Mr. Ricardo considers as that necessary rise in
-the _value_ of labour on which he makes so much depend in his system;
-but if the foregoing reasoning be well founded, it follows that this
-rise is not a rise in the _value_ of labour, but a fall in the value of
-money.
-
-[K] This applies to the seed, and the food of the working cattle in
-agriculture.
-
-[L] The labour worked up in a commodity could not, in many cases, be
-ascertained without considerable difficulty; but the labour which it
-will command is always open and palpable.
-
-[M] Practically, in all countries such as South America and Ireland,
-where there is a slack demand for labour, and the people are but half
-employed, the food wages of labour are high, compared with the work
-done.
-
-[N] If profits rise in some departments without falling proportionally
-in others, the _average_ rate of profits will have increased, although,
-from the difficulty of moving capital, the rate of profits in some
-employments may not have had time to rise before the stimulus to such
-rise comes to an end by a fresh increase of capital.
-
-[O] This is the view taken of it by Colonel Torrens in his _Production
-of Wealth_, which I think the just one; because it makes the proper
-distinction between cost and value, on which the great stimulus to
-production depends. But he has most unnecessarily and incorrectly given
-the same interpretation to _natural price_, which always includes
-profits.
-
-[P] In order to exclude demand and supply from the costs of production,
-when ordinary profits are considered as making a part of them, it
-would be necessary to assume that the corn wages of labour are always
-the same, an assumption which would be quite unwarranted, not only in
-reference to short periods, but to periods of fifty or sixty years, as
-the history of corn wages in this country alone amply testifies (see
-ch. iv. sect. 4, of my Princ. of Pol. Econ. &c.); and what but the
-state of the demand and supply of corn, compared with labour, prevents
-profits in the United States from being 100 per cent.? The quantity
-of corn divided between the labourer and capitalist would be amply
-sufficient to yield such profits, if the corn wages of labour were no
-higher than in England.
-
-[Q] Sect. IV. p. 91, et seq.
-
-[R] One of the most valuable sections in Mr. Tooke’s late work _On
-High and Low Prices_, is the seventh, in which he proves the frequent
-occurrence of this event, and explains, with great clearness and
-knowledge of the subject, the mode in which it takes place.
-
-[S] Inquiry into the Rise of Prices in Europe, p. 15.
-
-[T] Perhaps at the time specifically adverted to, this supposition will
-not be allowed. But it is always assumed as a general proposition; and
-although 1810 and 11 were years of great manufacturing distress, yet
-Mr. Tooke himself brings evidence which shows that manufacturing labour
-was particularly high in 1805 and 6.
-
-[U] In poor countries a succession of bad seasons sometimes takes place
-without any rise in the price of labour, and in that case, though there
-may be a high price of corn, there is no fall in the natural value of
-money. It will not be purchased with less labour.
-
-[V] These averages are taken from Lord Lauderdale’s _Further
-Considerations on the State of the Currency, published in 1813_.
-Appendix, p. 33.
-
-[W] For the foregoing valuable table, and the information accompanying
-it, I am indebted to Mr. Mure, of Kircudbright, through the kind
-intervention of Mr. M’Culloch, of Edinburgh.
-
-
-
-
-Transcriber’s Notes
-
-
-Simple typographical errors were corrected. Punctuation, hyphenation,
-and spelling were made consistent when a predominant preference was
-found in the original book; otherwise they were not changed.
-
-This book has no Table of Contents.
-
-
-
-
-
-End of the Project Gutenberg EBook of The Measure of Value Stated and
-Illustrated, by Thomas Robert Malthus
-
-*** END OF THIS PROJECT GUTENBERG EBOOK THE MEASURE OF VALUE ***
-
-***** This file should be named 62407-0.txt or 62407-0.zip *****
-This and all associated files of various formats will be found in:
-        http://www.gutenberg.org/6/2/4/0/62407/
-
-Produced by Charlie Howard and the Online Distributed
-Proofreading Team at https://www.pgdp.net (This file was
-produced from images generously made available by The
-Internet Archive)
-
-
-Updated editions will replace the previous one--the old editions will
-be renamed.
-
-Creating the works from print editions not protected by U.S. copyright
-law means that no one owns a United States copyright in these works,
-so the Foundation (and you!) can copy and distribute it in the United
-States without permission and without paying copyright
-royalties. Special rules, set forth in the General Terms of Use part
-of this license, apply to copying and distributing Project
-Gutenberg-tm electronic works to protect the PROJECT GUTENBERG-tm
-concept and trademark. Project Gutenberg is a registered trademark,
-and may not be used if you charge for the eBooks, unless you receive
-specific permission. If you do not charge anything for copies of this
-eBook, complying with the rules is very easy. You may use this eBook
-for nearly any purpose such as creation of derivative works, reports,
-performances and research. They may be modified and printed and given
-away--you may do practically ANYTHING in the United States with eBooks
-not protected by U.S. copyright law. Redistribution is subject to the
-trademark license, especially commercial redistribution.
-
-START: FULL LICENSE
-
-THE FULL PROJECT GUTENBERG LICENSE
-PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK
-
-To protect the Project Gutenberg-tm mission of promoting the free
-distribution of electronic works, by using or distributing this work
-(or any other work associated in any way with the phrase "Project
-Gutenberg"), you agree to comply with all the terms of the Full
-Project Gutenberg-tm License available with this file or online at
-www.gutenberg.org/license.
-
-Section 1. General Terms of Use and Redistributing Project
-Gutenberg-tm electronic works
-
-1.A. By reading or using any part of this Project Gutenberg-tm
-electronic work, you indicate that you have read, understand, agree to
-and accept all the terms of this license and intellectual property
-(trademark/copyright) agreement. If you do not agree to abide by all
-the terms of this agreement, you must cease using and return or
-destroy all copies of Project Gutenberg-tm electronic works in your
-possession. If you paid a fee for obtaining a copy of or access to a
-Project Gutenberg-tm electronic work and you do not agree to be bound
-by the terms of this agreement, you may obtain a refund from the
-person or entity to whom you paid the fee as set forth in paragraph
-1.E.8.
-
-1.B. "Project Gutenberg" is a registered trademark. It may only be
-used on or associated in any way with an electronic work by people who
-agree to be bound by the terms of this agreement. There are a few
-things that you can do with most Project Gutenberg-tm electronic works
-even without complying with the full terms of this agreement. See
-paragraph 1.C below. There are a lot of things you can do with Project
-Gutenberg-tm electronic works if you follow the terms of this
-agreement and help preserve free future access to Project Gutenberg-tm
-electronic works. See paragraph 1.E below.
-
-1.C. The Project Gutenberg Literary Archive Foundation ("the
-Foundation" or PGLAF), owns a compilation copyright in the collection
-of Project Gutenberg-tm electronic works. Nearly all the individual
-works in the collection are in the public domain in the United
-States. If an individual work is unprotected by copyright law in the
-United States and you are located in the United States, we do not
-claim a right to prevent you from copying, distributing, performing,
-displaying or creating derivative works based on the work as long as
-all references to Project Gutenberg are removed. Of course, we hope
-that you will support the Project Gutenberg-tm mission of promoting
-free access to electronic works by freely sharing Project Gutenberg-tm
-works in compliance with the terms of this agreement for keeping the
-Project Gutenberg-tm name associated with the work. You can easily
-comply with the terms of this agreement by keeping this work in the
-same format with its attached full Project Gutenberg-tm License when
-you share it without charge with others.
-
-1.D. The copyright laws of the place where you are located also govern
-what you can do with this work. Copyright laws in most countries are
-in a constant state of change. If you are outside the United States,
-check the laws of your country in addition to the terms of this
-agreement before downloading, copying, displaying, performing,
-distributing or creating derivative works based on this work or any
-other Project Gutenberg-tm work. The Foundation makes no
-representations concerning the copyright status of any work in any
-country outside the United States.
-
-1.E. Unless you have removed all references to Project Gutenberg:
-
-1.E.1. The following sentence, with active links to, or other
-immediate access to, the full Project Gutenberg-tm License must appear
-prominently whenever any copy of a Project Gutenberg-tm work (any work
-on which the phrase "Project Gutenberg" appears, or with which the
-phrase "Project Gutenberg" is associated) is accessed, displayed,
-performed, viewed, copied or distributed:
-
-  This eBook is for the use of anyone anywhere in the United States and
-  most other parts of the world at no cost and with almost no
-  restrictions whatsoever. You may copy it, give it away or re-use it
-  under the terms of the Project Gutenberg License included with this
-  eBook or online at www.gutenberg.org. If you are not located in the
-  United States, you'll have to check the laws of the country where you
-  are located before using this ebook.
-
-1.E.2. If an individual Project Gutenberg-tm electronic work is
-derived from texts not protected by U.S. copyright law (does not
-contain a notice indicating that it is posted with permission of the
-copyright holder), the work can be copied and distributed to anyone in
-the United States without paying any fees or charges. If you are
-redistributing or providing access to a work with the phrase "Project
-Gutenberg" associated with or appearing on the work, you must comply
-either with the requirements of paragraphs 1.E.1 through 1.E.7 or
-obtain permission for the use of the work and the Project Gutenberg-tm
-trademark as set forth in paragraphs 1.E.8 or 1.E.9.
-
-1.E.3. If an individual Project Gutenberg-tm electronic work is posted
-with the permission of the copyright holder, your use and distribution
-must comply with both paragraphs 1.E.1 through 1.E.7 and any
-additional terms imposed by the copyright holder. Additional terms
-will be linked to the Project Gutenberg-tm License for all works
-posted with the permission of the copyright holder found at the
-beginning of this work.
-
-1.E.4. Do not unlink or detach or remove the full Project Gutenberg-tm
-License terms from this work, or any files containing a part of this
-work or any other work associated with Project Gutenberg-tm.
-
-1.E.5. Do not copy, display, perform, distribute or redistribute this
-electronic work, or any part of this electronic work, without
-prominently displaying the sentence set forth in paragraph 1.E.1 with
-active links or immediate access to the full terms of the Project
-Gutenberg-tm License.
-
-1.E.6. You may convert to and distribute this work in any binary,
-compressed, marked up, nonproprietary or proprietary form, including
-any word processing or hypertext form. However, if you provide access
-to or distribute copies of a Project Gutenberg-tm work in a format
-other than "Plain Vanilla ASCII" or other format used in the official
-version posted on the official Project Gutenberg-tm web site
-(www.gutenberg.org), you must, at no additional cost, fee or expense
-to the user, provide a copy, a means of exporting a copy, or a means
-of obtaining a copy upon request, of the work in its original "Plain
-Vanilla ASCII" or other form. Any alternate format must include the
-full Project Gutenberg-tm License as specified in paragraph 1.E.1.
-
-1.E.7. Do not charge a fee for access to, viewing, displaying,
-performing, copying or distributing any Project Gutenberg-tm works
-unless you comply with paragraph 1.E.8 or 1.E.9.
-
-1.E.8. You may charge a reasonable fee for copies of or providing
-access to or distributing Project Gutenberg-tm electronic works
-provided that
-
-* You pay a royalty fee of 20% of the gross profits you derive from
-  the use of Project Gutenberg-tm works calculated using the method
-  you already use to calculate your applicable taxes. The fee is owed
-  to the owner of the Project Gutenberg-tm trademark, but he has
-  agreed to donate royalties under this paragraph to the Project
-  Gutenberg Literary Archive Foundation. Royalty payments must be paid
-  within 60 days following each date on which you prepare (or are
-  legally required to prepare) your periodic tax returns. Royalty
-  payments should be clearly marked as such and sent to the Project
-  Gutenberg Literary Archive Foundation at the address specified in
-  Section 4, "Information about donations to the Project Gutenberg
-  Literary Archive Foundation."
-
-* You provide a full refund of any money paid by a user who notifies
-  you in writing (or by e-mail) within 30 days of receipt that s/he
-  does not agree to the terms of the full Project Gutenberg-tm
-  License. You must require such a user to return or destroy all
-  copies of the works possessed in a physical medium and discontinue
-  all use of and all access to other copies of Project Gutenberg-tm
-  works.
-
-* You provide, in accordance with paragraph 1.F.3, a full refund of
-  any money paid for a work or a replacement copy, if a defect in the
-  electronic work is discovered and reported to you within 90 days of
-  receipt of the work.
-
-* You comply with all other terms of this agreement for free
-  distribution of Project Gutenberg-tm works.
-
-1.E.9. If you wish to charge a fee or distribute a Project
-Gutenberg-tm electronic work or group of works on different terms than
-are set forth in this agreement, you must obtain permission in writing
-from both the Project Gutenberg Literary Archive Foundation and The
-Project Gutenberg Trademark LLC, the owner of the Project Gutenberg-tm
-trademark. Contact the Foundation as set forth in Section 3 below.
-
-1.F.
-
-1.F.1. Project Gutenberg volunteers and employees expend considerable
-effort to identify, do copyright research on, transcribe and proofread
-works not protected by U.S. copyright law in creating the Project
-Gutenberg-tm collection. Despite these efforts, Project Gutenberg-tm
-electronic works, and the medium on which they may be stored, may
-contain "Defects," such as, but not limited to, incomplete, inaccurate
-or corrupt data, transcription errors, a copyright or other
-intellectual property infringement, a defective or damaged disk or
-other medium, a computer virus, or computer codes that damage or
-cannot be read by your equipment.
-
-1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except for the "Right
-of Replacement or Refund" described in paragraph 1.F.3, the Project
-Gutenberg Literary Archive Foundation, the owner of the Project
-Gutenberg-tm trademark, and any other party distributing a Project
-Gutenberg-tm electronic work under this agreement, disclaim all
-liability to you for damages, costs and expenses, including legal
-fees. YOU AGREE THAT YOU HAVE NO REMEDIES FOR NEGLIGENCE, STRICT
-LIABILITY, BREACH OF WARRANTY OR BREACH OF CONTRACT EXCEPT THOSE
-PROVIDED IN PARAGRAPH 1.F.3. YOU AGREE THAT THE FOUNDATION, THE
-TRADEMARK OWNER, AND ANY DISTRIBUTOR UNDER THIS AGREEMENT WILL NOT BE
-LIABLE TO YOU FOR ACTUAL, DIRECT, INDIRECT, CONSEQUENTIAL, PUNITIVE OR
-INCIDENTAL DAMAGES EVEN IF YOU GIVE NOTICE OF THE POSSIBILITY OF SUCH
-DAMAGE.
-
-1.F.3. LIMITED RIGHT OF REPLACEMENT OR REFUND - If you discover a
-defect in this electronic work within 90 days of receiving it, you can
-receive a refund of the money (if any) you paid for it by sending a
-written explanation to the person you received the work from. If you
-received the work on a physical medium, you must return the medium
-with your written explanation. The person or entity that provided you
-with the defective work may elect to provide a replacement copy in
-lieu of a refund. If you received the work electronically, the person
-or entity providing it to you may choose to give you a second
-opportunity to receive the work electronically in lieu of a refund. If
-the second copy is also defective, you may demand a refund in writing
-without further opportunities to fix the problem.
-
-1.F.4. Except for the limited right of replacement or refund set forth
-in paragraph 1.F.3, this work is provided to you 'AS-IS', WITH NO
-OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
-LIMITED TO WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE.
-
-1.F.5. Some states do not allow disclaimers of certain implied
-warranties or the exclusion or limitation of certain types of
-damages. If any disclaimer or limitation set forth in this agreement
-violates the law of the state applicable to this agreement, the
-agreement shall be interpreted to make the maximum disclaimer or
-limitation permitted by the applicable state law. The invalidity or
-unenforceability of any provision of this agreement shall not void the
-remaining provisions.
-
-1.F.6. INDEMNITY - You agree to indemnify and hold the Foundation, the
-trademark owner, any agent or employee of the Foundation, anyone
-providing copies of Project Gutenberg-tm electronic works in
-accordance with this agreement, and any volunteers associated with the
-production, promotion and distribution of Project Gutenberg-tm
-electronic works, harmless from all liability, costs and expenses,
-including legal fees, that arise directly or indirectly from any of
-the following which you do or cause to occur: (a) distribution of this
-or any Project Gutenberg-tm work, (b) alteration, modification, or
-additions or deletions to any Project Gutenberg-tm work, and (c) any
-Defect you cause.
-
-Section 2. Information about the Mission of Project Gutenberg-tm
-
-Project Gutenberg-tm is synonymous with the free distribution of
-electronic works in formats readable by the widest variety of
-computers including obsolete, old, middle-aged and new computers. It
-exists because of the efforts of hundreds of volunteers and donations
-from people in all walks of life.
-
-Volunteers and financial support to provide volunteers with the
-assistance they need are critical to reaching Project Gutenberg-tm's
-goals and ensuring that the Project Gutenberg-tm collection will
-remain freely available for generations to come. In 2001, the Project
-Gutenberg Literary Archive Foundation was created to provide a secure
-and permanent future for Project Gutenberg-tm and future
-generations. To learn more about the Project Gutenberg Literary
-Archive Foundation and how your efforts and donations can help, see
-Sections 3 and 4 and the Foundation information page at
-www.gutenberg.org Section 3. Information about the Project Gutenberg
-Literary Archive Foundation
-
-The Project Gutenberg Literary Archive Foundation is a non profit
-501(c)(3) educational corporation organized under the laws of the
-state of Mississippi and granted tax exempt status by the Internal
-Revenue Service. The Foundation's EIN or federal tax identification
-number is 64-6221541. Contributions to the Project Gutenberg Literary
-Archive Foundation are tax deductible to the full extent permitted by
-U.S. federal laws and your state's laws.
-
-The Foundation's principal office is in Fairbanks, Alaska, with the
-mailing address: PO Box 750175, Fairbanks, AK 99775, but its
-volunteers and employees are scattered throughout numerous
-locations. Its business office is located at 809 North 1500 West, Salt
-Lake City, UT 84116, (801) 596-1887. Email contact links and up to
-date contact information can be found at the Foundation's web site and
-official page at www.gutenberg.org/contact
-
-For additional contact information:
-
-    Dr. Gregory B. Newby
-    Chief Executive and Director
-    gbnewby@pglaf.org
-
-Section 4. Information about Donations to the Project Gutenberg
-Literary Archive Foundation
-
-Project Gutenberg-tm depends upon and cannot survive without wide
-spread public support and donations to carry out its mission of
-increasing the number of public domain and licensed works that can be
-freely distributed in machine readable form accessible by the widest
-array of equipment including outdated equipment. Many small donations
-($1 to $5,000) are particularly important to maintaining tax exempt
-status with the IRS.
-
-The Foundation is committed to complying with the laws regulating
-charities and charitable donations in all 50 states of the United
-States. Compliance requirements are not uniform and it takes a
-considerable effort, much paperwork and many fees to meet and keep up
-with these requirements. We do not solicit donations in locations
-where we have not received written confirmation of compliance. To SEND
-DONATIONS or determine the status of compliance for any particular
-state visit www.gutenberg.org/donate
-
-While we cannot and do not solicit contributions from states where we
-have not met the solicitation requirements, we know of no prohibition
-against accepting unsolicited donations from donors in such states who
-approach us with offers to donate.
-
-International donations are gratefully accepted, but we cannot make
-any statements concerning tax treatment of donations received from
-outside the United States. U.S. laws alone swamp our small staff.
-
-Please check the Project Gutenberg Web pages for current donation
-methods and addresses. Donations are accepted in a number of other
-ways including checks, online payments and credit card donations. To
-donate, please visit: www.gutenberg.org/donate
-
-Section 5. General Information About Project Gutenberg-tm electronic works.
-
-Professor Michael S. Hart was the originator of the Project
-Gutenberg-tm concept of a library of electronic works that could be
-freely shared with anyone. For forty years, he produced and
-distributed Project Gutenberg-tm eBooks with only a loose network of
-volunteer support.
-
-Project Gutenberg-tm eBooks are often created from several printed
-editions, all of which are confirmed as not protected by copyright in
-the U.S. unless a copyright notice is included. Thus, we do not
-necessarily keep eBooks in compliance with any particular paper
-edition.
-
-Most people start at our Web site which has the main PG search
-facility: www.gutenberg.org
-
-This Web site includes information about Project Gutenberg-tm,
-including how to make donations to the Project Gutenberg Literary
-Archive Foundation, how to help produce our new eBooks, and how to
-subscribe to our email newsletter to hear about new eBooks.
-