. . . "For where wages are paid before the object of the labour
is obtained, or is finished—as in agriculture, where
ploughing and sowing must precede by several months the
harvesting of the crop; as in the erection of buildings,
the construction of ships, railroads, canals, &c.—it is
clear that the owners of the capital paid in wages cannot
expect an immediate return, but, as the phrase is, must
"outlay it" or "lie out of it" for a time which sometimes
amounts to many years. And hence, if first principles are
not kept in mind, it is easy to jump to the conclusion
that wages are advanced by capital" (p. 44).
Those who have paid attention to the argument of former parts of this paper may not be able to understand how, if sound "first principles are kept in mind," any other conclusion can be reached, whether by jumping, or by any other mode of logical progression. But the first principle which our author "keeps in mind" possesses just that amount of ambiguity which enables him to play hocus-pocus with it. It is this; that "the creation of value does not depend upon the finishing of the product" (p. 44).
There is no doubt that, under certain limitations, this proposition is correct. It is not true that "labour always adds to capital by its exertion before it takes from capital its wages" (p. 44), but it is true that it may, and often does, produce that effect.
To take one of the examples given, the construction of a ship. The shaping of the timbers undoubtedly gives them a value (for a shipbuilder) which they did not possess before. When they are put together to constitute the framework of the ship, there is a still further addition of value (for a shipbuilder); and when the outside planking is added, there is another addition (for a shipbuilder). Suppose everything else about the hull is finished, except the one little item of caulking the seams, there is no doubt that it has still more value for a shipbuilder. But for whom else has it any value, except perhaps for a fire-wood merchant? What price will any one who wants a ship—that is to say, something that will carry a cargo from one port to another—give for the unfinished vessel which would take water in at every seam and go down in half an hour, if she were launched? Suppose the shipbuilder's capital to fail before the vessel is caulked, and that he cannot find another shipbuilder who cares to buy and finish it, what sort of proportion does the value created by the labour, for which he has paid out of his capital, stand to that of his advances?
Surely no one will give him one-tenth of the capital disbursed in wages, perhaps not so much even as the prime cost of the raw materials. Therefore, though the assertion that "the creation of value does not depend on the finishing of the product" may be strictly true under certain circumstances, it need not be and is not always true. And, if it is meant to imply or suggest that the creation of value in a manufactured article does not depend upon the finishing of that article, a more serious error could hardly be propounded.
Is there not a prodigious difference in the value of an uncaulked and in that of a finished ship; between the value of a house in which only the tiles of the roof are wanting and a finished house; between that of a clock which only lacks the escapement and a finished clock?
As ships, house, and clock, the unfinished articles have no value whatever—that is to say, no person who wanted to purchase one of these things, for immediate use, would give a farthing for either. The only value they can have, apart from that of the materials they contain, is that which they possess for some one who can finish them, or for some one who can make use of parts of them for the construction of other things. A man might buy an unfinished house for the sake of the bricks; or he might buy an incomplete clock to use the works for some other piece of machinery.
Thus, though every stage of the labour