other things, greatly exceed that of cloth; while, on the other hand, an unusually abundant harvest, or an unusual demand for cloth, would have the effect to raise its exchangeable value in relation to corn. And hence it is obvious, that though a commodity did exist, requiring at all times the same quantity of labour for its production, it would not, as has been sometimes supposed, form a standard by which to measure variations in the exchangeable value of other commodities, or of labour. For, its value in exchange might vary from the influence of causes affecting itself, though extrinsic to, and independent on the quantity of labour required for its production; or it might vary from similar causes, operating on the commodity with which it was to be compared. If A was always produced by the same quantity of labour, and if B and C were produced by varying quantities of labour, then, if value in exchange depended on nothing else but quantities of labour, or if it always bear the same proportion to these quantities, we should be able, by comparing B and C with A, to say at once, whether their value had remained constant, or to point out the precise extent to which it had varied. But, when there are other causes which may affect the value of A itself, as well as the values of B and C, it is obvious we should not be able, by merely comparing A with the others, to say if a variation took place in the relation that had formerly obtained amongst them, whether it had been occasioned by causes exclusively affecting A, orexclusive

ly affecting B and C, or whether they had all been affected, though in different degrees.

But, though it is quite visionary to expect to find what cannot possibly exist-an invariable standard of exchangeable value, it is not so difficult as might, at first, be supposed, to trace all variations in the exchangeable value of commodities to their proper source. The discrepancies that obtain between the real and exchangeable value of commodities, are not arbitrary and capricious. They all depend on a very few principles whose operation and effect admit of being clearly exhibited and defined. And when this is done, the proportion which the exchangeable value of a commodity bears to its real value, at any given period, may be easily determined.

Having premised these observations on value, I shall now proceed to investigate the laws which govern the distribution of the productions of art and industry among the different classes of the society, and the circumstances which determine their exchangeable value in the different stages of its progress.

SECTION II.

Classes among which the Produce of Industry is divided Equality of Wages in all the Different Departments of Industry-Equality of Profits-Capitals of every degree of Durability.

THE inhabitants of such countries as have made considerable any in civilization and the arts, progress are generally divided into the three classes of la

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bourers, capitalists, and landlords; and whatever may be the condition of any society whether it is rude or refined, rich or poor-every person belonging to it, who is not a pauper, or who does not subsist on the bounty of others, must be reckoned in one or other of these classes. Public functionaries of all sorts, and the various individuals engaged in what are called liberal or learned professions, exchange their services for valuable considerations. The whole subsistence of such persons is derived from wages; and they are as evidently labourers as if they handled a spade or a plough. It is to these three classes, therefore, that all the wealth of the world must primarily belong. And hence it is, that the inquiry, with respect to its distribution, really resolves itself into an investigation of the laws which regulate rent, wages, and profits.

The differences in the wages paid to the labourers engaged in different employments, and the different rates of profit which the capitals invested in them yield to those who carry them on, appear, at first sight, to oppose an insuperable obstacle to the establishment of any principles that should be generally applicable to them all. Such, however, is not the case. The differences in question are apparent only. They consist wholly of variations in the amount of money, or commodities paid to the labourer, or in the rate of gross profit accruing to the capitalist. But, when the other considerations affecting wages are taken into account, it will be found that they are really the same, or very nearly the same, at any given period,

in every employment; and it will also be found, notwithstanding the differences in the rate of gross profit, that the rate of net profit is the same at any given period in all employments; or that the variations are very trifling.

I. EQUALITY OF THE WAGES OF LABOUR IN DIFFERENT EMPLOYMENTS.-If all employments were equally agreeable and healthy, if the labour to be performed in each of them was of the same intensity, and if they all required the same degree of dexterity and skill on the part of the labourer, it is evident, supposing industry to be quite free, there could be no permanent or considerable difference in the rate of wages paid to the labourers engaged in different businesses: For if, on the one hand, those employed in a particular business were to earn more than their neighbours, there would be an influx of labourers into that particular business, until the increased number of hands had reduced wages to their common level; and if, on the other hand, those employed in a particular business were to earn less than their neighbours, there would be an efflux of labourers from it, until, in consequence of the diminished number of hands, wages had been raised to the same level. In point of fact, however, the intensity of the labour to be performed in different employments, the degree of skill required to carry them on, their healthiness, and the estimation in which they are held, differ exceedingly; and these varying circumstances necessarily occasion proportional differences in the rate of

wages paid to different classes of workmen. Wages are a compensation given to the labourer for the exertion of his physical powers, or of his skill, or inge nuity. They must, therefore, vary according to the greater severity of the labour to be performed, and to the degree of skill and ingenuity required. A jeweller or engraver, for example, must be paid a higher rate of wages than a common servant or a scavenger. A long course of training is necessary to instruct a man in the business of jewelling and engraving; and if the cost of this training were not made up to him in a higher rate of wages, he would, instead of learning so difficult an art, addict himself, in preference, to such employments as hardly require any instruction. Hence it is that the discrepancies that actually obtain in the rate of wages are all confined within certain limits-increasing or diminishing it only so far as may be necessary fully to equalize the unfavourable or favourable circumstances attending any employment.

The following have been stated by Dr Smith, as the principal circumstances which occasion the rate of wages in some employments either to fall below, or rise above the general average rate of wages1st, The agreeableness and disagreeableness of the employments:

2d, The easiness or cheapness, or the difficulty and expence, of learning them:

3d, The constancy or inconstancy of the employ

ments: