Thus, taking the former very imperfect basis as the grounds of my calculation, it would appear that when corn was at 20l. per quarter, the whole net income of the country would belong to the landlords, for then the same quantity of labour that was originally necessary to produce 180 quarters, would be necessary to produce 36; since 20l. : 4l. :: 180 : 36. The farmer then, who originally produced 180 quarters, (if any such there were, for the old and new capital employed on the land would be so blended, that it could in no way be distinguished,) would sell the
| 180 qrs. at 20l. per qr. or | £3600 | ||
| The value of | 144grs. | to landlord for rent, being thedifference between 36 and 180 qrs. | 2880 |
| —— | |||
| 36 grs. | 720 | ||
| the value of | 50 grs. | to labourers ten in number | 720 |
leaving nothing whatever for profit.
| At this price of 20l. the labourers would continue to consume three quarters each per annum or | £60 |
| And on other commodities they would expend | 12 |
| —— | |
| 72 for each labourer | |
| —— | |
| And therefore ten labourers would cost | 720l. per annum. |
In all these calculations I have been desirous only to elucidate the principle, and it is scarcely necessary to observe, that my whole basis is assumed at random, and merely for the purpose of exemplification. The results though different in degree, would have been the same in principle, however accurately I might have set out in stating the difference in the number of labourers necessary to obtain the successive quantities of corn required by an increasing population, the quantity consumed by the labourer's family, &c. &c. My object has been to simplify the subject, and I have therefore made no allowance for the increasing price of the other necessaries, besides food, of the labourer; an increase which would be the consequence of the increased value of the raw material from which they are made, and which would of course further increase wages, and lower profits.
I have already said, that long before this state of prices was become permanent, there would be no motive for accumulation; for no one accumulates but with a view to make his accumulation productive, and it is only when so employed that it operates on profits. Without a motive there could be no accumulation, and consequently such a state of prices never could take place. The farmer and manufacturer can no more live without profit, than the labourer without wages. Their motive for accumulation will diminish with every diminution of profit, and will cease altogether when their profits are so low as not to afford them an adequate compensation for their trouble, and the risk which they must necessarily encounter in employing their capital productively.
I must again observe, that the rate of profits would fall much more rapidly than I have estimated in my calculation: for the value of the produce being what I have stated it under the circumstances supposed, the value of the farmer's stock would be greatly increased from its necessarily consisting of many of the commodities which had risen in value. Before corn could rise from 4l. to 12l. his capital would probably be doubled in exchangeable value, and be worth 6000l. instead of 3000l. If then his profit were 180l., or 6 per cent. on his original capital, profits would not at that time be really at a higher rate than 3 per cent.; for 6000l. at 3 per cent. gives 180l.; and on those terms only could a new farmer with 6000l. money in his pocket enter into the farming business.
Many trades would derive some advantage, more or less, from the same source. The brewer, the distiller, the clothier, the linen manufacturer, would be partly compensated for the diminution of their profits, by the rise in the value of their stock of raw and finished materials; but a manufacturer of hardware, of jewellery, and of many other commodities, as well as those whose capitals uniformly consisted of money, would be subject to the whole fall in the rate of profits, without any compensation whatever.
We should also expect that, however the rate of the profits of stock might diminish in consequence of the accumulation of capital on the land, and the rise of wages, yet the aggregate amount of profits would increase. Thus supposing that, with repeated accumulations of 100,000l., the rate of profit should fall from 20 to 19, to 18, to 17 per cent., a constantly diminishing rate, we should expect that the whole amount of profits received by those successive owners of capital would be always progressive; that it would be greater when the capital was 200,000l., than when 100,000l.; still greater when 300,000l.; and so on, increasing, though at a diminishing rate, with every increase of capital. This progression however is only true for a certain time: thus 19 per cent. on 200,000l. is more than 20 on 100,000l.; again 18 per cent. on 300,000l. is more than 19 per cent. on 200,000l.; but after capital has accumulated to a large amount, and profits have fallen, the further accumulation diminishes the aggregate of profits. Thus suppose the accumulation should be 1,000,000l., and the profits 7 per cent. the whole amount of profits will be 70,000l.; now if an addition of 100,000l. capital be made to the million, and profits should fall to 6 per cent., 66,000l. or a diminution of 4000l. will be received by the owners of stock, although the whole amount of stock will be increased from 1,000,000l. to 1,100,000l.
There can, however, be no accumulation of capital, so long as stock yields any profit at all, without its yielding not only an increase of produce, but an increase of value. By employing 100,000l. additional capital, no part of the former capital will be rendered less productive. The produce of the land and labour of the country must increase, and its value will be raised, not only by the value of the addition which is made to the former quantity of productions, but by the new value which is given to the whole produce of the land, by the increased difficulty of producing the last portion of it, which new value always goes to rent. When the accumulation of capital, however, becomes very great, notwithstanding this increased value, it will be so distributed that a less value than before will be appropriated to profits, while that which is devoted to rent and wages will be increased. Thus with successive additions of 100,000l. to capital, with a fall in the rate of profits, from 20 to 19, to 18, to 17 per cent. &c. the productions annually obtained will increase in quantity, and be of more than the whole additional value, which the additional capital is calculated to produce. From 20,000l. it will rise to more than 39,000l. and then to more than 57,000l., and when the capital employed is a million, as we before supposed, if 100,000l. more be added to it, and the aggregate of profits is actually lower than before, more than 6000l. will nevertheless be added to the revenue of the country, but it will be to the revenue of the landlords; they will obtain more than the additional produce, and will from their situation be enabled to encroach even on the former gains of the capitalist. Thus, suppose the price of corn to be 4l. per quarter, and that therefore, as we before calculated, of every 720l. remaining to the farmer after payment of his rent, 480l. were retained by him, and 240l. were paid to his labourers; when the price rose to 6l. per quarter, he would be obliged to pay his labourers 300l. and retain only 420l. for profits. Now if the capital employed were so large as to yield a hundred thousand times 720l. or 72,000,000l. the aggregate of profits would be 48,000,000l. when wheat was at 4l. per quarter; and if by employing a larger capital, 105,000 times 720l. were obtained when wheat was at 6l., or 75,600,000l., profits would actually fall from 48,000,000l. to 44,100,000l. or 105,000 times 420l., and wages would rise from 24,000,000l. to 31,500,000l. Wages would rise because more labourers would be employed, in proportion to capital; and each labourer would receive more money wages; but the condition of the labourer, as we have already shewn, would be worse, inasmuch as he would be able to command a less quantity of the produce of the country. The only real gainers would be the landlords; they would receive higher rents, first, because produce would be of a higher value, and secondly, because they would have a greatly increased proportion.