[169] See Ricardo, _Principles_, p. 83. “Let us suppose that all commodities are at their natural price, and consequently that the profits of capital in all employments are exactly at the same rate, or differ only so much as, in the estimation of the parties, is equivalent to any real or fancied advantage which they possess or forego.” [170] _Some Leading Principles of Political Economy Newly Expounded._ London, 1874. [171] A third point might be taken up were it not for the fact that Cairnes’s treatment of it is hardly worthy of consideration. This is his rebuttal against the then newly appeared utility theory of Jevons. Cairnes seems to have had virtually no understanding of the point Jevons was trying to make. [172] P. 9. [173] See Marshall’s _Principles_, 3rd ed., p. 172, note, and also the reference there cited, _Fortnightly Review_, April, 1876. [174] P. 41. Cairnes claims, with great justice, that his term “normal value” or “normal price” is superior to the old terms “natural” and “necessary” price (p. 46). [175] P. 82. [176] P. 88. It is a waste of terms to call the duration and quantity of labor the same thing, and consequently to consider the quantity of labor cost and quantity of labor different things. Smith and Ricardo merely touched on this matter, but the former says in a passage incorporated also by the latter in his text: “There may be more labour in an hour’s hard work than in two hours early business;” or quantity of labor is the product of duration multiplied by disutility per unit of time; and this is the preferable usage. [177] P. 97. Abstinence is described as a “negative” sacrifice except for the “small positive element of risk.” [178] P. 50. [179] P. 58. [180] P. 95. [181] Pp. 62-3. [182] Pp. 65-70. [183] P. 74. [184] Pp. 72-3. Cairnes makes the same classification of the industrial population into groups that Mill made. For criticism and a new classification see Giddings, “The Persistence of Competition,” _Political Science Quarterly_, vol. ii, p. 69 _et seq._; and J. B. Clark, “The Limits of Competition,” _ibid._, p. 45 _et seq._ [185] P. 76. “Very frequently” ought really to be “nearly always.” [186] P. 76. [187] P. 80. [188] P. 80. [189] P. 98. [190] Pp. 105-6. The italics are mine except for the word “average.” [191] That is to say, for Senior and Cairnes, interest is no longer an unexplained difficulty in the way of the cost philosophy of value, but the conception of cost has been widened so as to include and explain the case of interest. Cairnes has no longer a labor-cost philosophy, but a subjective cost philosophy of value. [192] P. 84. [193] P. 78. [194] _Principles_, chapter i, section iii. _Cf._ chap. v, sec. iv of the present essay.