[38] In the "Essays on Political Economy," since reprinted as "Munera Pulveris." See p. 10, § 12 of that book, where the passage is printed in italics: "The reader must, by anticipation, be warned against confusing value with cost, or with price. Value is the life-giving power of anything; cost, the quantity of labor required to produce it; price, the quantity of labor which its possessor will take in exchange for it." [From "The Scotsman," November 10, 1873.] _MR. RUSKIN AND PROFESSOR HODGSON._ CORPUS CHRISTI COLLEGE, OXFORD, _Nov. 8th_, 1873. _To the Editor of "The Scotsman."_ SIR: In your impression of the 6th inst. I find a report of a lecture delivered by Professor Hodgson in the University of Edinburgh on the subject of "Supply and Demand," in which the Professor speaks of my "denunciations" of the principles he had expounded. Permit me, in a matter respecting which accuracy is of more importance to others than to myself, to correct the Professor's expression. I have never "denounced" the principles expounded by the Professor. I have simply stated that no such principles exist; that no "law of supply and demand," as expounded by Professor Hodgson and modern economists, ever did or can exist. Professor Hodgson, as reported in your columns, states that "demand regulates supply." He does not appear to entertain the incomparably more important economical question, "What regulates demand?" But without pressing upon him that first question of all, I am content absolutely to contradict and to challenge him before the University of Edinburgh to maintain his statement that "demand regulates supply," and together with it (if he has ventured to advance it) the correlative proposition, "supply regulates demand." A. Demand does not regulate supply. For instance--there is at this moment a larger demand for champagne wine in England and Scotland than there was ten years ago; and a much more limited supply of champagne wine. B. Supply does not regulate demand. For instance--I can name many districts in Scotland where the supply of pure water is larger than in other namable localities, but where the inhabitants drink less water and more whiskey than in other namable localities. I do not therefore denounce the so-called law of supply and demand, but I absolutely deny the existence of such law; and I do in the very strongest terms denounce the assertion of the existence of such a law before the University of Edinburgh as disgraceful both to its assertor and to the University, unless immediate steps be taken to define, in scientific terms, the limitations under which such statement is to be understood. I am, etc., JOHN RUSKIN.[39] FOOTNOTES: [39] To this letter Professor Hodgson replied by one printed in the _Scotsman_ of November 14. [From "The Scotsman," November 18, 1873] _MR. RUSKIN AND PROFESSOR HODGSON._ OXFORD, _November_ 15, 1873.