_Phæd_. Don't think it, my dear friend: you are a dexterous _retiarius_; but a gladiator who is armed with Ricardian weapons will cut your net to pieces. He is too strong in his cause, as I am well satisfied from what passed yesterday. He'll slaughter you,--to use the racy expression of a friend of mine in describing the redundant power with which one fancy boxer disposed of another,--he'll slaughter you "with ease and affluence." But here he comes.--Well, X., you're just come in time. Philebus says that you are a fly, whilst _he_ is a murderous spider, and that he'll slaughter you with "ease and affluence;" and, all things considered, I am inclined to think he will. _Phil_. Phædrus does not report the matter quite accurately; however, it is true that I believe myself to have detected a fatal error in your argument of yesterday on the case of the hat; and it is this: When the value of labor rose by twenty-five per cent., you contended that this rise would be paid out of profits. Now, up to a certain limit this may be possible; beyond that it is impossible. For the price of the hat was supposed to be eighteen shillings: and the price of the labor being assumed originally at twelve shillings;-- leaving six shillings for profits,--it is very possible that a rise in wages of no more than three shillings may be paid out of these profits. But, as this advance in wages increases, it comes nearer and nearer to that point at which it will be impossible for profits to pay it; since, let the advance once reach the whole six shillings, and all motive for producing hats will be extinguished; and let it advance to seven shillings, there will in that case be no fund at all left out of which the seventh shilling can be paid, even if the capitalist were disposed to relinquish all his profits. Now, seriously, you will hardly maintain that the hat could not rise to the price of nineteen shillings--or of any higher sum? _X_. Recollect, Philebus, what it is that I maintain; assuredly the hat may rise to the price of nineteen shillings, or of any higher sum, but not as a consequence of the cause you assign. Taking your case, I _do_ maintain that it is impossible the hat should exceed, or even reach, eighteen shillings. When I say eighteen shillings, however, you must recollect that the particular sum of twelve shillings for labor, and six shillings for profits, were taken only for the sake of illustration; translating the sense of the proposition into universal forms, what I assert is, that the rise in the value of the labor can go no further than the amount of profits will allow it: profits swallowed up, there will remain no fund out of which an increase of wages can be paid, and the production of hats will cease. _Phil_. This is the sense in which I understood you; and in this sense I wish that you would convince me that the hat could not, under the circumstances supposed, advance to nineteen shillings or twenty shillings.