“Speaking of manufacturing produce, I reckon two,—the two I have mentioned; and I never listen to any question of their comparative value, since they are both necessary to production.” “I should have thought Labour more valuable than Capital,” said Mrs. Wallace, “because it must have been in operation first. The first material must have been obtained, the first machine must have been made, by labour.” “True. Capital owes its origin to labour; but labour is in its turn assisted and improved by capital to such a degree that its productiveness is incalculably increased. Our labourers could no more send ship-loads of bar-iron abroad without the help of the furnace and forge and machinery supplied by their masters, than their masters without the help of their labour.” “Then the more valuable this capital is, the more abundant the material wrought, the more perfect the machinery, the better for the labourer. And yet all do not think so.” “Because those who object to machinery do not perceive its true nature and office. Machinery, as it does the work of many men, or that which it would take one man a long time to do, may he be viewed as _hoarded labour_. This, being set to work in addition to natural labour, yields a greatly-increased produce; and the gains of the capitalist being thus increased, he employs a yet larger portion of labour with a view to yet further gains; and so a perpetual progress is made.” “Not without drawbacks, however,” said Armstrong. “Do not forget the consequent failure of demand.” “That is only a temporary evil: for when the market is overstocked, prices fall; and when the price has fallen, more people can afford to buy than bought before, and so a new demand grows up. If printing and paper-making, for instance, were still unknown, we should have no newspapers; if the machinery were very imperfect, they would be so expensive as to be within reach of none but the wealthy; but, as the produce of both arts is abundant and therefore cheap, we find newspapers in every alehouse, and if it were not for a duty which has nothing to do with their production, we should see them lying in many a cottage window. Thus the public are equally obliged to the owners of printing presses and their workmen. These workmen are obliged to the masters whose capital sets them to work; and the masters are obliged to their men for the labour which sets their presses going. All are gainers by the co-operation of Labour and Capital.” “I was very near doing a thing the other day,” said Armstrong, “which would have made you suppose that I was going to adopt some of your notions. I had observed a man lingering about the hills——” “Is his name Paul?” “I never asked; but he was a beggar, covered with rags who used to sit for hours watching what went on below. I was so persuaded that he was of my opinion about your doings, that I became quite interested in him.” “You liked him for being neither a labourer nor a capitalist?”