The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790Malthus, T. R. (Thomas Robert)
General
The Measure of Value Stated and Illustrated: With an Application of it to the Alterations in the Value of the English Currency since 1790
Malthus, T. R. (Thomas Robert)
Currency question -- Great Britain; Value
A fourth result shown in the Table is, that the value of the corn
obtained by ten men depends mainly upon the rate of profits, which
again depends mainly upon the demand and supply of corn compared with
labour. If corn be in such demand, that notwithstanding the fertility
of the soil, a small quantity of it comparatively will purchase the
labour required, profits will be very high, and the value of the
produce will greatly exceed the constant value of the wages of the
labour advanced; but if the supply of corn be so great, compared with
labour, that a large quantity of it is required to purchase the given
quantity of labour, profits will be low, and the excess of the value of
the produce above the constant value of the advances in wages will be
inconsiderable.
Thus, when the produce is 150 quarters, if corn be in such plenty that
each labourer is awarded thirteen quarters, the profits of stock will
be only 15.38 per cent.; and this rate of profit, added to the constant
value of the advances in labour, which are represented by 10, will
make the natural value of the produce equal to 11.53. But if corn,
notwithstanding the fertility of the soil, be only supplied in such
quantities, compared with labour, as to award the labourer no more than
ten quarters, the rate of profits, instead of 15.38 per cent., will be
50 per cent., and the value of the produce, instead of being 11.53,
will be 15.
This shows how greatly the natural value of commodities depends upon
the average state of the demand and supply, and completely confirms
the position in my last work, that the only difference between natural
and market prices is, that the former are regulated by the average and
ordinary relations of the demand to the supply, and the latter, when
they differ from the former, upon the accidental and extraordinary
relations of the demand to the supply.
Fifthly, it follows, from the constant value of labour, that,
Given the value of money in different countries, the natural prices of
commodities, in which the same quantities of labour have been employed,
will depend upon the rate and quantity of profits.
Given the rate and quantity of profits, and the value of money, the
natural prices of commodities in different countries will depend upon
the quantity of labour employed upon them.
And given the quantity of labour employed on them, and the rate and
quantity of profits, the natural prices of commodities will depend upon
the value of money.
But in reality none of the ingredients of natural or money price are
given, excepting the natural value of labour, and consequently the
money prices of commodities which regulate the ordinary rate at which
different countries exchange their commodities with each other, will be
determined partly by the quantity of labour employed upon them, partly
by the ordinary rate of profits, and partly by the value of money.
Public-domain text, read in full here on John Shaqi.
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