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1817.] results,—viz. That no increase in the wages of labour can increase the relative exchangeable values of commodities.

If a stocking manufacturer employs one hundred men, during ten days, in manufacturing stockings, which exchange for the gloves manufactured by the same number of men in twenty days, the values of these products are precisely equal. But if some more expeditious method of manufacturing gloves should be discovered,—if one man was enabled to do as much work as was previously executed by two, the value of gloves, compared with stockings, (supposing, for the sake of simplifying the question, that the value of the raw materials consumed in both manufactures are equal,) would be reduced one half. If an equal improvement had been made in the stocking manufacture, the relative values of both commodities would remain the same as at first;—a greater quantity of the one would merely be exchanged for a greater quantity of the other. It is obvious, however, that an increase in the wages of labour could not affect this conclusion. Suppose wages to rise 10 per cent., the stocking manufacturer could not say to the glove manufacturer that he must have a greater quantity of gloves in exchange for his stockings, on account of the increased wages of his workmen, because the other would answer, that the same rise affected him in precisely the same degree. The relation of proportional numbers is not altered by being all multiplied by the same number. If a pair of stockings be exchanged for a pair of gloves when wages are at 1s. per diem, the same exchange would take place after wages had risen to 20s. per diem. In the one case a very small share only of the produce of the labourer's exertions would belong to himself, and a large share to his employer; in the other, the labourer's share would be much augmented, and his employer's proportionally reduced. The value of the commodity would, in both cases, be the same, but it would be very differently divided. Mr Ricardo, however, has not only shewn that a rise in the wages of labour does not raise the price of the commodities purchased by that labour, but he has also shewn, that when fixed capitals, and machinery, are employed in producing, a rise in the wages of labour the price of commodities.

"Suppose," says Mr Ricardo, "that an engine is made, which will last for 100 years, and that its value is £20,000, Suppose too, that this machine, without any labour whatever, could produce a certain quantity of commodities annually, and that profits were 10 per cent., the whole value of the goods produced would be annually £2000 : 2 : 11 ; for the profit of £20,000. "If the same amount of capital, viz. £20,000, be employed in supporting productive labour, and be annually consumed and reproduced, as it is when employed in paying wages, then to give an equal profit of 10 per cent, the commodities must sell for £22,000. Now suppose labour so to rise, that instead of £20,000 being sufficient to pay the wages of those employed in producing the latter commodities, £20,952 is required; then profits will fall to 5 per cent.; for as these commodities would sell for no more than £22,000, and to produce them £20,952 would be requisite, there would remain no more than £1,048, on a capital of £20,952. If labour so rise, that £21,153 were required, profits would fall to 4 per cent; and if it rose, so that £21,359 was employed, profits would fall to 3 per cent. "

But as no wages would be paid by the owner of the machine when profits fell to 5 per cent., the price of his goods must fall to £1007 : 13 : 8, viz. £1000 to pay his profits, and £7 : 13 : 8 to accumulate for 100 years, at 5 per cent, to replace his capital of £20,000. When profits fall to 5 per cent. his goods must sell for £816 : 3: 2; and when at 3 per cent. for £632 : 16 : 7. By a rise in the price of labour, then, under 7 per cent, which has no effect on the prices of commodities wholly produced by labour, a fall of no less than 68 per cent is effected on those commodities wholly produced by machinery lasting 100 years. If the proprietor of the machine sold his goods for more than £632 : 16 : 7, he would get more than 3 per cent, the general profit of stock; and as others could furnish themselves with machines at the same price of £20,000, they would be so multiplied, that he would be inevitably obliged to sink the price of his goods, till they afforded only the usual and general profits of stock."

In proportion as the machine was more or less durable, prices would be more or less affected by a rise of wages; but, for a further elucidation of this subject, our readers must peruse Mr. Ricardo's own statements. Rh