ThisIdeny。Thenineteenlaborershavetheirindustriousfacultiesleft，withthesamestrength，thesamecapacities，thesamemeansoflaborasbefore。Themilldoesnotcompelthemtoremainunemployed，butonlytoseekanotheroccupation。Manycircumstancesoccasionasimilarinconveniencewithoutcarryingwiththemthesameremedy。
Afashionoutofuse，awarwhichblocksupavent，acommercewhichchangesitscourse，doahundredtimesmoreinjurytothelaboringclassesthananynewinventionwhatever。
Isupposethatitwillbesaidandinsistedon，thatthenineteenvacantlaborers，supposingeventheyimmediatelyfindcapitalstosetthemtoworkatafreshbusiness，couldnotselltheirproductionbecausethemassofproductionofsocietywouldbetherebyincreased，butnottheamountoftheirincome。Ithasthenbeenforgottenthattheincomesofsocietyareincreasedbytheveryfactoftheproductionofthenineteennewlaborers。
Thesalaryfortheirlaboristheincomewhichenablesthemtoacquiretheproduceoftheirlabor，ortoexchangeitagainstanyotherequivalentproduction：thisissufficientlyestablishedinmyprecedingletters。
Nothingthereforeremains，strictlyspeaking，buttheinconvenienceofbeingobligedtochangetheoccupation。Nowtheprogresswhichismadeinonekindinparticular，isbeneficialtoindustryingeneral。Theincreaseofincome，whichresultstosocietyfromasavinginexpences，iscarriedtowardsotherarticles。Asingleoccupationisinterdictedtonineteenmenwho，tillthen，poundedgrain，andahundredfreshoccupations，orahundredextensionsofoldoccupations，havebeenopenedtothem。Idesirenootherproofofthisthantheincreasewhichhastakenplaceinthelaborandpopulation，ineveryplacewheretheartshavebeenimproved。Theconstanthabitweareinofseeingtheproductionsofnewartscausesustodisregardthem，buthowwouldtheystrikeourancestors，iftheycouldagaincomeamongstus!Letuspicturetoourselvesforamomentsomeofthemostenlightenedamongstthem，suchasPlinyorArchimedes，comingtowalkroundoneofourmoderncities；theywouldfancythemselvessurroundedbymiracles。
Theabundanceofourcrystalsandglasses，thegreatquantityofourlargemirrors，ourdocks，watches，embroidery，ironbridges，warlikeinstruments，andships，wouldastonishthembeyondallconception。Andiftheyweretogointoourwork—shops，whatamultiplicityofoccupationswouldtheyseeofwhichtheycouldnothavethesmallestconception。WouldtheyevenbelievethatthirtythousandmenwerenightlyemployedinEuropeinprintingnewspapers，whicharereadeverymorningoverthebreakfast—tablewhilsttakingtea，coffee，chocolate，orotherfood，quiteasnewtothemasthepapersthemselves？Donotletusdoubt，Sir，thatiftheartsstillimprove，asIflattermyselftheywill，thatis，thattheywillproducemoreatlessexpence，freshmillionsofmeninthecourseofafewageswillproduceobjects，whichwouldexciteinourminds，couldweseethem，asurpriseequaltothatwhichthegreatArchimedesandPlinywouldexperiencecouldtheyrevisitus。Letustakecare，wewhoscribbleinsearchoftruth，ifourwritingsdescendtoposterity，thattheapprehensionwithwhichthoseimprovementsinspireus（butwhichtheywillthenhavefarsurpassed）
donotappearridiculous。Andastotheworkmenofyourcountry，atoncesoableandsowretched，ourdescendantsmaywelllookuponthemasmenwhowerecompelledtogettheirlivingbydancingontherope，withaweightattachedtotheirfeet。Theywillreadinhistory，thatinorderthatthesemenmightcontinuetheirdance，somefreshplanwasdailysuggestedtothem，indeedeveryplanexcepttheveryonewhichwouldhavebeenefficacious，viz。thatoftakingofftheweight：thenourdescendantsafterhavingderidedusmightverywellconcludethewholebypityingus。
Ihavesaidthatausefulimprovementmaybeattendedwithtemporaryinconvenience；fortunatelythoseinconvenienceswhichareoccasionedbyexpeditiousprocesses，aremitigatedbysomecircumstanceswhichhavebeenalreadynoticed，andbyothersofwhichnomentionhasbeenmade。Ithasbeensaid（andyouyourself，Sir，lookuponthiscircumstanceascapableofoverbalancingtheinconvenience）thatthelowpricewhichresultsfromaneconomicalprocessfavorstheconsumptionofthearticletosogreatadegree，thatthesameproductionemploysmorepeoplethanbefore；ashasbeenremarkedinspinningandweavingcotton。Ishalladdthat，asmachineryandexpeditiousmeansincrease，itwillbemoredifficulttodiscoverfreshones，particularlyinanestablishedartinwhichworkmenarealreadyinitiated。Themostsimplemachinesappearedfirst，afterwardscamethemorecomplicated：theycostmoretoerect，andrequiremoreworkmentomanoeuvrethem，whichpartlyrecompensesthatclassfortheoccupationtheyhavelostintheadoptionofthenewprocess。Thecomplexityandcostlinessofamachineareobstaclestoitstoopromptadoption……Theclothshearingmachinebymeansofaturningmotion，costintheoriginfrom25to30
thousandfrancs……Manymanufacturerscannotinthefirstinstancelayoutsuchasum，othersconsiderandreconsiderbeforetheybuyit，andawaitforadecidedproofofitssuccess。Thistardinessintheintroductionofnewmachinesnearlypreventsalltheinconveniencesattendingthem。
Infact，Iconfesstoyou，thatinpracticeIhavealwaysseennewmachinesoccasionmorefearofharm，thanharmitself。Astothegood，itissureandlasting。
M。deSismondiopposesafactthatoccurred，inwhichahundredthousandstocking—knitterswiththeirneedles，andathousandworkmenprovidedwithframes，eachmanufacturedtenthousandpairofstockings。Theresultwas，thatinthelattercasetheconsumersofstockingsonlysaved50centimesperpair，andstillamanufactorywhichusedtoemployahundredthousandwork—people，nowonlyemployedtwelvehundred。Butheonlycomestothisconclusionbysuppositionswhicharenotadmissible。
Toprovethatconsumersobtainedthestockingsonly50centimesless，hesupposesthatthecostofproductionwouldbe，inthefirstcase，asfollows：
10millions，forthepurchaseofthematerial。
40millions，wagestoahundredthousandwork—people，at400francseach。
Total50millions，40ofwhichpaidtothework—people。
Andinthesecondease，hesupposesthecostasfollows：
10millions，forthematerial。
30millions，forinterestoffixedcapitalandenterpriser’sprofits。
2millions，forinterestofcirculatingcapital。
2millions，forrepairsandnewmachines。
1million，wagesof1200workmen。
Total45millions，ofwhich1ispaidtotheworkmeninsteadof40。
NowIseethatthisitemof30millionsforinterestoffixedcapital，andenterpriser’sprofit，takenonthesuppositionofanenterprisecapableofemployingtwelvehundredwork—people，andofyielding15percentontheircapitals，supposesacapitaloftwohundredmillions，asuppositiontrulypreposterous。
Oneworkmancannotworkattwoframesatonce，athousandworkmenwouldthereforerequireathousandframestobeemployed。Agoodstocking—framecosts600francs，consequentlythethousandwouldcostsixhundredthousandfrancs；addtothiscapital，alikecapitalfortheotherutensils，work—shops，etc。stillweshouldonlyhaveoccasionfora。capitaloftwelvehundredthousandfrancs。Weadmitthattheinterestandtheenterpriser’sprofitonthecapitalwouldbe15percent，whichisverymoderate，foracurrentbusinesswhichproducedmorewouldsoonbycompetitionbebroughttothisrate。Admittingthis，weshallfindfortheinterestandtheenterpriser’sprofit，180thousandfrancs，insteadof30millions!
Thesameobservationappliestothe2millionsforexpencesofkeepingandrepairingthemachines；forif，insteadofrepairingtheframes，newoneswereboughtyearly，stilltheywouldonlycost600thousandfrancs。
Norwouldthecirculatingcapitalcost2millions，forinMr。Sismondi’shypothesis，ofwhatdoesitconsist？Oftherawmaterial，whichhequotesat10millions，andwages，whichhecalls1million，together11millions，theinterestofwhich，at5percent，is550thousandfrancs。Butasinthisbusinesstheproductionmaybecompletedandsoldwithin6months，thecapitalpaidforiftheauthorhasquotedthecapitalforthemachinescosteachtime275thousandfrancs，insteadof2millions。
Alltheseexpencestogetherstillonlymake12，055，000francs，insteadof50millions，whichstockingsknitwiththeneedlewouldcost，accordingtoM。Sismondi。Iamfarfromthinkingthatthesavingcouldbesogreat，foriftheauthorhasquotedthecapitalforthemachinestoohigh，hehasattributedtoogreatafacilitytothem，insupposingthatbytheirmeanstwelvehundredworkmencoulddoasmuchasahundredthousand；butIsaythatifthesavinginthisproductionweresogreat，thelowpriceofstockingsoranyotherarticleofthatnaturewouldsofavortheconsumption，thatinsteadofseeingthehundredthousandwork—people，asissupposed，employed，weshouldprobablyseethenumberincreasetotwohundredthousand。
Andiftheconsumptionofthisarticleinparticular，。didnotadmitthisexcessivemultiplicationofthesameproduction，thedemandwouldincreaseinrespecttomanyothers；forobserve，thataftertheintroductionofmachinery，thesamerevenueisstillfoundinsociety，thatis，thesamenumberofworkmen，thesameamount。ofcapital，andthesameportionofland。Nowif，insteadofdevotingoutofthismassofrevenue50millionsyearlyforstockings，itisonlynecessary，inconsequenceoftheframes，toemploy12，the38millionsremainingmaybeappliedtootherconsumptions，ifnottotheextensionofthis。
Thisiswhatprinciplesteach，andexperienceconfirms。ThemiserysufferedbythepopulationofEngland，andwhichM。Sismondideploreswithatrulyphilanthropicfeeling，arisesfromothercauses，principallyfromthepoorlaws，and，asIhavehinted，fromaweightoftaxationwhichmakesproductiontooexpensive；somuchso，thatwhenthearticlesarefinished，agreatpartoftheconsumersdonotgetsufficienttoobtainthem，atthepricethatisobligedtobeaskedforthem。
LETTERTHEFIFTH。
SIR，OnreadingyourPrinciplesofPoliticalEconomy，thefirstobjectwhichstruckmyattentionwasthatgreatevilwhichtormentsthehumanrace，andpreventsthemfromlivingontheirproductions。Althoughintheorderofideas，adiscussiononthenatureofwealthoughttoprecedethis，inordertoassistthemindincomprehendingallthephenomenawhichrelatetoitsformationanddistribution，Ihavenotthoughtitrighttogiveitthepreference，asitappearstobemorepeculiarlyinterestingtothosewhocultivatethescienceofpoliticaleconomy，withoutanyviewofcarryingitintopractice。StillIcannotlaydownmypenwithoutgivingyoumyopiniononthishead。Ihaveyourownsanctionforsodoing，inthenoblecandorwithwhichyouinviteeverydiscussionthatmaytendtoenlightenthepublic。\"Itistobedesired，\"yousay，（page4）\"thatthosewhoarelookeduponbythepublictobecompetentjudgesshouldagreeupontheprincipalpoints。\"Theycannotbemadetooclear。
YoucomplainofthedefinitionwhichLordLauderdalegivesofwealth，whenhesaysthat\"itiseverythingmancandesire，thatcanbeusefuloragreeabletohim，\"asbeingtoovague，andIthinkyouareveryright。
Iamseekingthedefinitionwhichyouthinkoughttobesubstitutedforthis，andIfindthatyougivethetermwealthto\"allmaterialobjectsthatarenecessary，useful，oragreeabletoman\"（page28）。TheonlydifferenceIseebetweenthesetwodefinitionsconsistsinthewordmaterial，whichyouaddtothatofmyLordLauderdale，andInmstconfessthatthiswordappearstoometobecontrarytothetruth。
Youwillanticipatemyreasons。Thegreatdiscoveryofpoliticaleconomy，andwhatwillrenderiteverlastinglyprecious，isthehavingshownthateverythingmaybeconvertedintowealth。Fromthattimemanhasbeenmadecapableofknowingwhatitisnecessaryforhimtodo，toattainthesehappymeansofsatisfyinghisdesires。ButasIhaveformerlyhadoccasiontoobserve，itisbeyondthepowerofmantoaddasingleatomtothemassofmatter，ofwhichtheworldiscomposed。Ifhecreateswealth，wealthisnotmatter：thereisnomedium。Bymeansofhiscapitalandhisland，mancanonlychangethecombinationofmatter，toconferutilityuponit，bututilityisanimmaterialquality。
Thisisnotall，Sir；Ifearyourdefinitiondoesnotcontaintheessentialcharacterofwealth。Allowmetogiveafewexplanationsinsupportofmyidea。
AdamSmithandalltheworldhaveobserved，thataglassofwater，whichisaverypreciousthingwhenwearethirsty，wasnotwealth……Itishoweveramaterialobject，itiseithernecessary，useful，oragreeabletoman。
Itfulfilsalltheconditionsofyourdefinition，anditisnotwealth。
Atleastnotthatwealthwhichisthesubjectofourstudy，andthatofyourbook。Whatiswantingtomakeitso？possessingvalue。
Therearethingsindeedwhicharenaturalwealth，veryprecioustoman，butwhicharenotofthatkind。aboutwhichpoliticaleconomycanbeemployed。
Canitincreasethem？Canitconsumethem？No，theyaresubjecttootherlaws。Aglassofwaterisunderthegovernmentofnaturallaw。Theattachmentofourfriends，andourreputationintheworld，dependuponthemorallaw，andnotonthatofpoliticaleconomy。Whattheniswealth，themainspringofthisscience？thatwhichissusceptibleofcreationanddestruction，ofmoreandofless；andthismore，thisless，whatisitagainstvalue。
Youyourself，Sir，areobligedtoconfessitinmanyplaces。Yousay（page340，）\"Itappearstherefore，thatthewealthofanationdependspartlyonthequantityofproductionobtainedbyitslabor，（itdependsonthisaltogether，）andpartlyontheadaptationofthislabortothewantsandmeansofthepopulation，forthepurposeofgivingvaluetoitsproductions。\"Andinthefollowingpage，youarestillmorepositive。Afterhavinggonefurtherintothequestion，youadmitthat，\"itisevidentthatinthepresentstateofthings，thevalueofcommoditiesmaybeconsideredastheonlycauseoftheexistenceofwealth。\"Howcanitbethen，thatsoessentialaningredientasvalue，iswantingtoyourdefinition？
Butthatisnotsufficient：weshouldknowbutveryimperfectlythenatureofwealth，ifwewerenotwelltodefinethiswordvalue。Inorder。
topossessgreatwealth，isitenoughthatwevalueourpossessionsveryhigh？IfIhave，builtahousewhichIfinddelightful，andthinkitmighttoestimateitatahundredthousandfrancs，amIreallyworthahundredthousandfrancsonaccountofthishouse？Wereceiveapresentfromapersonwhoisdeartous，whichisinestimableinoureyes——doesitfollowthatthatmakesusimmenselyrich？Youcannotthinkso。Inorderforavaluetoberiches，itmustbeanadmittedvalue；notbythepossessor，butbyanotherperson……Nowwhatirresistibleproofcanbegiven，thatavalueisadmitted，ifnot，thatinordertohaveit，otherpersonsconsenttogiveinexchangeacertainquantityofotherthings，whicharevaluable。
NotwithstandingImayhaveestimatedmyhouseatahundredthousandfrancs，whatshallIhavemadeofit，ifIcanfindnoonewhowillgivememorethanfiftythousandofthosepieceswhichwecallfrancs。Itisinfactworthnomorethanfiftythousand，itmakesmeworthnomorethanfiftythousand，orwhatevermaybeboughtforfiftythousandfrancs。
ThusAdamSmith，（38）immediatelyafterhavingobservedthattherearetwosortsofvalues，onevalueinuse，theothervalueinexchange，completelyabandonsthefirst，andentirelyoccupieshimselfallthewaythroughhisbookwithexchangeablevalueonly。Thisiswhatyouyourselfhavedone，Sir；（39）whatMr。Ricardohasdone；whatIhavedone；whatwehavealldone：forthisreason，thatthereisnoothervalueinpoliticaleconomythanthatwhichaloneissubjecttofixedlaws；thatthataloneforms，distributes，anddestroysitselfconformablytoinvariablerules，whichmaybecomethesubjectofascientificstudy。Byanecessaryconsequence，thepriceofeacharticlebeingitsexchangeablevalueinmoney，therearenootherthancurrentpricesinpoliticaleconomy。WhatSmithcallsnaturalpriceshavenothingmorenaturalinthem，thanalltherest。Itisthecostofproduction，thepricecurrentofproductiveservices。
IdonotpretendtodenythatyouhaveinMr。Ricardoapowerfulandrespectableauxiliary。HewasagainstyouinthequestionofVent，hecontendswithyouonthequestionofValue，butnotwithstandingmyconnexionwithhim，andthemutualesteemweentertainforeachother，Ihavenothesitatedtocombathisopinions。（40）Ourfirstinclinationforeachother，andIamboldtosayyoursandminealso，wasitnotforthesakeofthepublicgoodandoftruth？
TheseareMr。Ricardo’swords：\"Valueisessentiallydifferentfromwealth，forvaluedoesnotdependupontheabundance（ofthethingsnecessaryoritagreeable，）butonthedifficultyorfacilityoftheirproduction。
Themanufacturallaborofamillionofpersonswillalwaysproducethestonevalue，butnotalwaysthesamewealth。Bymoreperfectmachines，amorepractisedability，abetterdividedlabor，theopeningoffreshmarketsgivingrisetomoreadvantageousexchanges，amillionpersonsmayproducedoubleandtreblethequantityofnecessaryoragreeablethings，thantheycouldproduceinanothersocialsituation，andstilltheywouldaddnothingtothetotalvalue。’’（41）
Thisargument，foundedonuncontestedfacts，appearsperfectlytoa~reewiththeopinionyoumaintain。Thequestionis，howthesefactsstrengtheninsteadofweakenthedoctrineofvalue，thedoctrinewhichestablishes，thatwealthconsistsinthevalueofthethingswepossess；confiningthiswordvaluetotheonlyadmittedandexchangeablevalue。
Infactwhatisvalue，butthatqualitysusceptibleofappreciation，susceptibleofmoreorless，whichisinherentinthethingswepossess。
Itisthequalitywhichenablesustoobtainthethingswewant，inexchangeforthethingswehave。Thisvalueisthegreater，inproportiontothequantitywhichthethingwehavecanobtainofthatwewant；forinstance，whenIhaveoccasiontochangemyhorseforwheat，ifmyhorseisworthsixhundredfrancs，Ishallreceivedoublethequantityofbushelsofwheatthanifhewereworthonlythreehundredfrancs，andatthesametimethatpartofmywealthwouldbedouble。AndasthesamereasoningmayhegenerallyappliedtoallIpossess，itfollowsthatourwealthdependsonthevalueofthethingswepossess。Thisisaconsequencethatnoonecanreasonablyrefusetoadmit。
Youcannotonyourpartdeny，saysMr。Ricardotome，thatwearenotricher，whenwehavemoreofthenecessaryoragreeablethingstoconsume，whatevermaybetheirvalueinanothersense。ThisinfactIadmit，butisitnottohavemorethingstoconsume，havingthepowertoacquirethemingreaterquantity？Topossessmorewealthistohaveinourhandswherewithtobuyalargerquantityofusefulthings，agreaterquantityofutility，inextendingthisexpressiontoeverythingthatisnecessaryoragreeabletous。Nowthereisnothinginthisproposition，whichiscontrarytowhatistrueinthedefinitionwhichMr。Rieardoandyourselfgiveofwealth。
Yousaythatwealthisinthequantityofnecessaryoragreeablethingswepossess。Isaysotoo，butasthesewords，quantityofnecessaryoragreeablethings，haveavagueandarbitrarymeaning，whicheannotbeadmittedinagooddefinition，Idefinethembytheirexchangeablevalue；
thenthelimitationoftheideaofutilityisthebeingequaltoanyotherutility，whichotherpersonseonsenttogiveinexehangeforthatyoupossess；
fromthattimethereisequation，onevaluecanbecomparedwithanotherbythemeansofathird。Asackofwheatisarichesequaltoapieceofcloth，whenonecanbeexehangedagainsttheotherforanequalnumberoferowns。Thiswillserveasabasisforcomparisons，willadmitofmeasuringanaugmentation，oradiminution——inaword，thisisthebasisofascience。
ltrithoutthis，politicaleconomydoesnotexist。Itisthisconsiderationalonewhichhasbroughtittolight：itissoessential，thatyouinvoluntarilvdoithomage，andthereisnooneofyourargumentsinwhichitisnoteitherexpressedorunderstood；otherwise，youwouldhavecausedthesciencetorecede，insteadofenriehingitwithfreshtruths。
AtthesametimethatyourandMr。Ricardo’sdefinitionfailsinpreeision，itfailsalsoinextent。Itdoesnotembracethewholeofwhatourwealthiscomposedof。What!ourwealtheonfinedtomaterialobjectseitherneeessaryoragreeable!Andourtalents？Whatthendoyoutakethesefor？Aretheynotproductirefunds？Dowenotderiveincomefromthem？Greaterorlessincomes，thesameaswederiveagreaterincomefromanacreofgoodlandthanfromanacreofbrambles？Iknowsomecleverartists，whohavenootherincomethanwhattheyderivefromtheirtalents，andwhoareopulent：
accordingtoyourideatheywouldbenoricherthanameredauber。
Youcannotdenyit，thateverythingthathasanexchangeablevaluemakespartofourriches。Theyareessentiallycomposedoftheproductivefundswepossess。Thesefundsareeitherland，capital，orpersonalfaculties。
Ofthesefundssomearealienable，asland；othersarealienableandconsumable，ascapital；othersinalienable，andyetconsumable，astalents，whichperishwiththeirpossessor。Fromthesefundsproceedalltherevenueswhichkeepsocietyalive，andwhatappearsparadoxical，althoughperfectlytrue，alltheserevenuesareimmaterial，sincetheyarederivedfromanimmaterialqualitywhichisutility。Thedifferentutilitiesproducedbyourproductivefundsarecomparedwitheachotherbytheirvalue，whichIhavenooccasiontocallexchangeable，becauseinpoliticaleconomyIrecognizenootherthanexchangeable。
AstothedifficultyMr。Ricardomakes，whenhesaysthat，bybetterunderstoodprocesses，athousandpersonsmayproducetwiceandthreetimesasmuchwealthwithoutproducingmorevalue，thisisnodifficulty，whenweconsider，（asweought，）productionasanexchange，inwhichtheproductiveservicesofourlabor，ourland，andcapitalaregiveninordertoobtainproductions。Bymeansoftheseproductiveservices，weacquirealltheproductionsthatareinthe。world，andthisbythebyeiswhatgivesvaluetoproductions；for，afterhavingobtainedthembvgivingvalueforthem，wecannotgivethemawayfornothing。Nowsinceourfirstpropertyistheproductivefundswepossess，ourfirstrevenuetheproductiveserviceswhichproceedfromthem，wearericherinproportionasourproductiveservicesaremorevaluable，astheyobtainintheexchangecalledproduction，agreaterorlessquantityofusefulthings。Andatthesametime，asagreaterquantityofusefulthingsandtheirlowprice，areperfectlysynonimousexpressions，theproducersarerich，whenproductionsaremoreabundantandcheaper。Isayproducersingeneral，becausecompetitioncompelsthemtogivetheirproductionsforwhattheycostthem；sothatwhenproducersofwheatorclothsucceedbyhelpofthesameproductiveservicesinproducingadoublequantityofwheatorcloth，alltheotherproducerscanpurchaseadoublequantityofwheatorclothwithalikequantityofproductiveservices，orwhatisthesamething，withtheproducetheyderivefromthem。
Such，Sir，isthewell—connecteddoctrine，withoutwhichIdeclareittobeimpossibletoexplainthegreatestdifficultiesofpoliticaleconomy，andparticularlyhowanationcanbericher，whenitsproductionsdiminishinvalue，althoughrichesarevalue。YouseethatIamnotafraidtoreducemypretendedparadoxestotheirsimpleexpression。Istripthemnaked，andtrustthemtoyourequity，tothatofMr。Ricardo，andtothegoodsenseofthepublic。Butatthesametimereservingtomyselftherightofexplainingthem，iftheyareillunderstood，andofdefendingthemboldlyifunjustlyattacked。
NOTES：
1。TheTranslationofProfessorMalthus’sPrinciplesofPoliticalEconomy，byM。F。S。Constancie，（whotranslatedMr。Ricardo’swork）isinthepress，andwillappearinthecourseofthemonthofAugust，publishedbyJ。P。Aillaud，Bookseller，No。21，QuaiVoltaire。Itwillconsistoftwooctavovolumes，ofabout400pageseach。
2。Sismondi’sNewPrinciplesofPoliticalEconomy，vol。i。337，andfollowingpages。
3。Malthus’sPrinciplesofPoliticalEconomy，page354。（IquotefromtheEnglishEdition，nothavingyetseenatranslation）。
4。TreatiseonPoliticalEconomy，orsimpleexplanationofthemannerinwhichrichesareobtained，distributedandconsumed，4thedition。Vol。ii。page5。
5。Malthus’sPrinciplesetc。page353。
6。WhatoftentimesmakesEnglishauthorsobscureis，thattheyconfoundbytheexampleofSmith，underthenameoflabor，theservicesrenderedbymen，bycapital，andbyland。
7。Adomesticproducespersonalservices，which，assoonasproduced，areunproductivelyconsumedbyhismaster。Theserviceofapublicfunctionaryisalsoentirelyconsumedbythepublic，asitisproduced。Thisisthereasonwhythesedifferentservicesdonotproduceanyaugmentationofwealth。Theconsumerenjoystheseservicesbutcannotaccumulatethem。ThisisparticularlyexplainedinmyTreatiseonPoliticalEconomy，4thEd。vol。i。page124。HowMr。Malthuscouldprintpage35afterthis，isinconceivable：inwhichhesaysthat，\"theprogresswhichEuropehasmadesincethefeudaltimescannotbeexplained，ifperanalserviceisconsideredasproductiveasthelaboroftradesmenandmanufacturers。
Itisthesamewiththeseservicesaswiththelaborofthegardenerwhohascultivatedsaladsorstrawberries。ThewealthofEuropecertainlydoesnotproceedfromthestrawberries，becausethey，likepersonalservice，areallunproductivelyconsumedastheyripen，althoughnotsoquickaspersonalservice。
Imentionstrawberrieshere，asaproduceofveryshortduration，butitisnotbecauseaproductionisdurablethatitgivesgreaterfacilitytoaccumulation。Itisbecauseitissoconsumedastoproduceitsvalueinanotherarticle：fordurableornot。everyproductionisdevotedtoconsumption，andisnofurtherusefulthanbyitsconsumption（thisutilityconsists，eitherinsatisfyingawant，orinproducingafreshvalue）。
Whenwebegintowriteuponpoliticaleconomy，thefirstthingtobedoneistodivestourselvesoftheideathatadurableproductionaccumulatesbetterthanaperishableone。
8。WhattheEnglishcallWantandSupply。
9。Fourthedition。Bk。I。ch。15。Bk。IIch。l。2。
3and5。SeealsotheEpitomeatthoendofeachwork，particularlythewordsProductiveServices，ChargesofProduction，Revenues，Profit，Value。
10。Malthus’sPrinciplesofPoliticalEconomy，page351。
11。Afarmerwhosellsasackofwheatfor30francs，andbuysapieceofcalicofor30francs，doeshenotexchangehiswheatforthecloth？andthemanufacturerwhobuysasackofwheatfor30francs，thepriceofhispieceofcloth，doeshenotexchangehisclothforasackofwheat？
12。ThatImaynotbeaccusedofhavingpervertedtheestimableProfessor’smeaning，byendeavouringtocompressitandrenderitclearer，Ihavethoughtitrighttoannexanexacttranslationofhiswordsinanote。
\"Ifcommoditieswereonlytobecomparedandexchangedonewithanother，itwouldthenbetruethatiftheyincreasedinconvenientproportions，theymight，whateverwastheirincreasepreservethesamerelativevalue。
Butifwecomparethemasweought，withthenumberandwantsofconsumers，agreatincreaseofproductionwithastationarynumberofconsumers，andwantsreducedbyparsimony，wouldofnecessityoccasionagreatfallinthevalueoftheproductionsestimatedinlabor，sothatthesameproductionwhichcoststhesamelaborasheretoforecouldnolongerpurchasethesamequantityofit。\"Page355。
\"Itissaidthataneffectivedemandisnothingmorethantheeffectivesupplywhichisproducedofoneccmmodityinexchangeforanother。Butisthisallthatisreallynecessarytoaneffectivedemand？
\"Althougheachofthecommoditiesmayhavecostinproducingit，thesameportionoflaborandcapital，andthattheoneisequivalenttotheother，stilltheymaybothbesoabundantasnottohecapableofpurchasingmorelaborthantheycost，oratleastbutverylittlemorethantheycost。
Inthiscasewouldthedemandbeeffective？Certainlynot。\"ibid。
13。AgreeablytotheEnglishexpression，Whentheydonotcommandthesamequantityoflaborasbefore。
14。ThisdemonstrationbythebyecompletelyruinsanassertionofMr。Malthusthatalowpriceisalwaysattheexpenceofprofit，（page370）andconsequentlyruinsallthereasoningroundeduponthatbasis。ThesamedemonstrationisequallyfataltoallthatpartofMr。Ricardo’sdoctrineinwhichheflattershimselftohaveestablished，thatthecostofproduction，andnottheproportionofthesupplytothedemand，regulatesthepriceofproductions。Heidentifiesthecostofproductionswiththeproductions，whilsttheyareopposite，andtheformerarethelessinproportionasthelatteraremoreabundant。
15。Somepersonsimaginethat，whenacapitalisemployedinanenterprise，thatportionofitwhichisdevotedtothepurchaseofthefirstmaterialsisnotemployedinthepurchaseofproductiveservices。
Thisisanerror。Thefirstmaterialsthemselvesareaproducewhichhavenoothervaluewhichhaspreviouslybeenspreadbytheproductiveserviceswhichhavemadeaproduceandavalueofthem。Whenthefirstmaterialsareofnovaluetheyemploynopartofthecapital。Whentheymustbepaidfor，thispaymentisnootherthanthereimbursementoftheproductiveserviceswhichhavegiventhemtheirvalue。
16。Theprofitswhichanenterprisermakesofhisenterprise，arethesalaryofthelaborandtalentshehasemployedinit。Hecarriesonthisenterprisenolongerthanthissalaryissuchthathecouldnothopeforabetterinanotherenterprise。Heisoneofthenecessaryproducers，andhisprofitsarepartofthenecessaryexpensesofproduction。
17。ThiscaseismuchmorefrequentinFrancethaninEngland，wheretherateoftheprofitsofindustryandtheinterestofcapitalaretoolowintheordinaryoccupationsofindustryfortheformertomaintainafamily，thathasnocapital。
18。Whatanaccumulationofproductions。WhataprodigiousventaccordingtoMr。Say，saysMr。Malthus，wouldsuchaneventopen。Thelearnedprofessortotallymistakesinthiscasethemeaningofthewordaccumulation；anaccumulationisnotanon—consumptionitisthesubstitutionofareproductiveforanunproductiveconsumption。BesidesIdidnotsaythataproducesavedwasaventopened。Isaidthataproducecreatedwasaventopenedforanotherproduce，andthatistruewhetherthevalueofitisspentunproductively，oraddedtothesavings，thatis，tothereproductiveexpenceswhichareproposedtobemade。
19。Itmustbeadmittedthatproducesavedyearlyisasregularlyconsumedasthatwhichisexpendedyearly，butthatitisconsumedbyotherpersons。Mr。Malthus’sPrinciplesofEconomy。
page31。
20。\"Whentherearemorecapitalsinacountrythanarewanted，torecommendsaving，iscontrarytoeveryprincipleofPoliticalEconomy。Itislikerecommendingmarriagestoapeopledyingofhunger。\"PrinciplesdPoliticalEconomy，page495。
21。TheprincipalobstaclestoagriculturalimprovementsinFrance，areinthefirstplacetheresidenceofrichproprietorsandlargecapitalistsinthetownsandparticularlyinanimmensecapital：
theycannottakeaccountofamendmentsinwhichtheymightemploytheirlands：andtheycannotinspecttheemploymentofthemsothatitmaybefollowedwithacorrespondingincreaseofincome。Inthesecondplace，itwouldbeinvainthatanycantonintheheartofthecountryshoulddoubleitsproductions，foritearscarcelygetridofwhatitalreadyproduces，forwantofgoodroadsintheneighbourhoodandforwantofindustrioustownswithinreach。Industrioustownsconsumeruralproductions，andmanufactureinexchangemanufacturalproductions，whichcontaininggreatervalueinlesscompass，canbetransmittedtoagreaterdistance。ThisisthechiefobstacletotheincreaseofFrenchagriculture。Smallandnumerousnavigationcanals，roadsingoodcondition，wouldincreasethevalueofruralproductions。
Buttoaccomplishthis。localadministrationchosenbytheinhabitants，whoseonlycareshouldbethegoodoftheneighbourhood，wouldbenecessary。
Thepossibilityofventexists，butallthatmaybedonetobenefitbyitisnotdone。Managersintheinterestofthecentralauthorityalmostallbecomepoliticalorfinancial’agents，orwhatisstillworsepolice—agents。
22。TravelsinFrance，vol。2，page98，Engl。
Edition。
23。Thissuppositionisveryadmissible，forinEnglandthreepartsofthepopulationliveintowns。andconsequentlyarenotemployedincountrylabors。Acountrythereforewhichfeeds60millioninhabitants。maybeverywellcultivateby15millioncultivators。thenumberwhichiscomputedinFranceatthepresentday。
24。Themeanswehaveofattaining，aretheprofitswhicheveryoneobtainsfromhisindustry，hiscapital。andland。Consumers，whohaveneitherindustry，norcapital，norland，spendwhattheytakeawayfromtheprofitoftheformer。Ineveryeaseeachpersonhasanincomewhichhasalimit。andalthoughthosepersonswhohaveaverylargeincomecansacrificelargesumsofmoneyforverytriflingpleasures，stillitmaybeconceivedthedearerthepleasurethelessitissoughtafter。
25。Ifhediminishesthequality，itisthesameasifheraisedtheprice。
26。NewPrinciples，bookiv。chap。4。
27。Theworkmancanonlycontinuetoworksolongashecansubsistbyhislabor；andwhenhissubsistenceistoodear，itisnotconvenienttoanyenterprisertoemployhim。Thenitmaybesaid，inPoliticalEconomy。thattheworkmannolonger。supplieshisproductivelabor，althoughheoffersitwithgreatearnestness；butthisofferisnotacceptableontheonlydurableconditionsonwhichitcanbeperformed。
28。Mr。Ricardopretendsthatinspiteoftaxesandotherobstructions，thereisalwaysasmuchindustryascapitalemployedandthatallcapitalssavedarestillemployedbecausecapitalistswillnotlosetheinterest。Thereare，onthecontrary，manysavingsunemployedonaccountofthedifficultyinemployingthem，orbeingemployedarelostinconsequenceofbadmanagement。Besides，Mr。Ricardoiscontradictedbywhathappenedtousin1813，whenthefaultsofthegovernmentruinedallcommerce，andwheninterestofmoneyfellsolow，forwantofgoodopportunitiesofemployingit——andbywhatishappeningtousatthismomentinwhichthecapitalssleepatthebottomofthecoffersofcapitalists。
——TheBankofFrancealonehas223millionsinspecieinitscoffers；
asum。morethandoubletheamountofthenotesincirculation，andsixtimesgreaterthanprudencewarrantstobekeptforcasualpayments。
29。SeethereportuponthesituationofFrance，madein1813，bythethenMinisteroftheInterior。Hewasinterestedindisguisingthisdeclineofcommerce30。Humbolt’sEssayonNewSpain，vol。iii，page183。
31。SeeMalthus’sEssayonPopulation，bookii，chap。11，oftheFrenchtranslation，andchap。13ofthe5thEnglishedition。
32。MrMalthus，stillconvincedthatthereareclasseswhorenderservicetosocietysimplybyconsumingwithoutproducing，wouldconsideritamisfortuneifthewholeoragreatpartoftheEnglishnationaldebtwerepaidoff。Thiscircumstancewould，onthecontrary，inmyopinionbeveryfavorableforEngland，becausetheresultwouldbethatthestock—holder，beingpaidoff，wouldobtainsomeincomefromtheircapitals。Thatthosewhopaytaxeswouldthemselvesspendthe40millionssterlingwhichtheynowpaytothecreditorsoftheState。Thatthe40millionoftaxesbeingtakenoff，allproductionswouldbecheaper，andtheconsumptionwouldconsiderablyincrease；thatitwouldgiveworktothelaborer，inplaceofsabrecuts，whicharenowdealtouttothem；andIconfessthattheseconsequencesdonotappeartomeofanaturetoterrifythefriendsofpublicwelfare。
33。Page498。
34。Themanufacturedlaborswhichanewstatecanperformtothegreatest。advantage，areingeneralthoseofpreparingmatterfromitsroughstate，orinexpensivecommerce。ItisnotprobablethattheUnitedStateswilleverfurnishEuropewithcloth，buttheywillperhapsfurnishitwithmanufacturedtobacco，andrefinedsugar：andwhoknowsthattheywillnotsucceedinestablishingcottonmanufactoriesatacheaperratethanEngland？
35。ConsiderationsonthePolicyofEntails，page14。
36。\"Whenamachineisinvented，whichbysavingmanuallaborbringsthecommoditiestoalowerpricetheordinaryeffectisanincreaseinthedemand，sothatthetotalvalueofthequantityofcommoditiesthusmadefarexceedsthetotalformervalueofthesamecommodities；
wherebythenumberofworkmenemployedinthemanufactureisincreasedratherthandiminished。\"Malthus’sPrinciplesofPoliticalEconomy，page402。
\"Butwemustadmitthattheprincipaladvantagearisingfromthesubstitutionofmachinesformanuallabor。dependsupontheextentofthesale。andtheencouragementwhichresultsfromitforconsumption，andthatwithoutthistheadvantageofthissubstitutionisallbutlost。\"Page412。
37。NewPrinciplesofPoliticalEconomy，vol。2，page317。
38。Book1。Chap。4。
39。\"Itisthereforeevidentthatthevalueofcommodities，thatis，thesacrificeinlabororinanyotherarticlewhichpersonsconsenttomaketoobtaintheminexchange，\"etc。Malthus’PrinciplesofPoliticalEconomy。page341。EnglishEdition。
40。SeetheNotesaddedbymetotheFrenchTranslationbyM。Constance，ofMr。Ricardo’sPrinciplesofPoliticalEconomy。
41。Mr。Ricardo’sPrinciplesofPoliticalEconomy，2d。EnglishEdition。chap。20。