Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy
John Stuart Mill · en
It does worse, for even its customary annual produce requires to be
extracted by a greater and greater expenditure of labor and capital. As a
mine does not reproduce the coal or ore taken from it, not only are all
mines at last exhausted, but even when they as yet show no signs of
exhaustion they must be worked at a continually increasing cost; shafts
must be sunk deeper, galleries driven farther, greater power applied to
keep them clear of water; the produce must be lifted from a greater depth,
or conveyed a greater distance. The law of diminishing return applies
therefore to mining in a still more unqualified sense than to agriculture;
but the antagonizing agency, that of improvements in production, also
applies in a still greater degree. Mining operations are more susceptible
of mechanical improvements than agricultural: the first great application
of the steam-engine was to mining; and there are unlimited possibilities
of improvement in the chemical processes by which the metals are
extracted. There is another contingency, of no unfrequent occurrence,
which avails to counterbalance the progress of all existing mines toward
exhaustion: this is, the discovery of new ones, equal or superior in
richness.
Professor Jevons has applied this economic law to the industrial
situation of England.(139) While explaining that the supply of
cheap coal is the basis of English manufacturing prosperity, yet
he insists that, if the demand for coal is constantly increasing,
the point must inevitably be reached in the future when the
increased supply can be obtained only at a higher cost. When coal
costs England as much as it does any other nation, then her
exclusive industrial advantage will cease to exist. In the United
States the outlying iron deposits of Lake Superior, Lake
Champlain, and Pennsylvania, so geologists tell us, will find
competition arising from the new grades of greater productiveness
in the richer deposits of States like Alabama. In that case we
shall be going from poorer to better grades of iron-mines, but
after the change is made a series of different grades of
productiveness will be established as before.
To resume: all natural agents which are limited in quantity are not only
limited in their ultimate productive power, but, long before that power is
stretched to the utmost, they yield to any additional demands on
progressively harder terms. This law may, however, be suspended, or
temporarily controlled, by whatever adds to the general power of mankind
over nature, and especially by any extension of their knowledge, and their
consequent command, of the properties and powers of natural agents.
Chapter X. Consequences Of The Foregoing Laws.
§ 1. Remedies for Weakness of the Principle of Accumulation.