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
But if to the accumulated and immediate labour worked up in
commodities, we add the profits upon the whole advances for the time
that they are advanced, we shall then make the proper allowance for
the other element of value, and may expect to obtain a more accurate
measure. If we had estimated the value of the labour advanced in money,
or any other medium, we should of course estimate the profits in the
same medium, and the natural price of the commodity estimated in such
medium, would obviously be equal to the price of the accumulated and
immediate labour expended on the commodity, together with the ordinary
profits estimated upon such advances. But if, with a view to the
natural conditions of supply, we consider only the quantity of labour
advanced, without reference to any other medium, we must of course
estimate the profits in quantity of labour also, which will give us an
amount of labour in proportion to which commodities will be found to
exchange with each other, just in the same way as they would exchange
with each other according to the quantity of labour employed on them,
if labour had been the sole ingredient which had entered into their
composition.
Thus, if a hundred days labour were employed upon a commodity, at two
shillings a day, and the average interval between the advance of such
wages and the period when the commodity could be brought to sale were
a year, and profits were 20 per cent. the price of the commodity would
be £12, while the price of a commodity which had cost the same quantity
of labour of the same kind, and could be brought to market immediately,
would be only £10. And it is equally certain, that, if putting money
or any other medium of exchange out of the question, we had estimated
the profits for a year upon the advances of the hundred days labour
actually employed, we should obtain a quantity of labour which,
compared with the labour employed on the commodity sold immediately,
would be in the proportion of 120 to 100, and expressing the relative
conditions of supply, would accurately measure the rate at which the
two commodities obtained under these different circumstances would
exchange with each other.
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