Thoughtherealvalueofacornrent，itistobeobserved，however，variesmuchlessfromcenturytocenturythanthatofamoneyrent，itvariesmuchmorefromyeartoyear。Themoneypriceoflabour，asIshallendeavourtoshowhereafter，doesnotfluctuatefromyeartoyearwiththemoneypriceofcorn，butseemstobeeverywhereaccommodated，nottothetemporaryoroccasional，buttotheaverageorordinarypriceofthatnecessaryoflife。Theaverageorordinarypriceofcornagainisregulated，asIshalllikewiseendeavourtoshowhereafter，bythevalueofsilver，bytherichnessorbarrennessofthemineswhichsupplythemarketwiththatmetal，orbythequantityoflabourwhichmustbeemployed，andconsequentlyofcornwhichmustbeconsumed，inordertobringanyparticularquantityofsilverfromtheminetothemarket。Butthevalueofsilver，thoughitsometimesvariesgreatlyfromcenturytocentury，seldomvariesmuchfromyeartoyear，butfrequentlycontinuesthesame，orverynearlythesame，forhalfacenturyoracenturytogether。Theordinaryoraveragemoneypriceofcorn，therefore，may，duringsolongaperiod，continuethesameorverynearlythesametoo，andalongwithitthemoneypriceoflabour，provided，atleast，thesocietycontinues，inotherrespects，inthesameornearlyinthesamecondition。Inthemeantimethetemporaryandoccasionalpriceofcornmayfrequentlybedouble，oneyear，ofwhatithadbeentheyearbefore，orfluctuate，forexample，fromfiveandtwentytofiftyshillingsthequarter。Butwhencornisatthelatterprice，notonlythenominal，buttherealvalueofacornrentwillbedoubleofwhatitiswhenattheformer，orwillcommanddoublethequantityeitheroflabourorofthegreaterpartofothercommodities;themoneypriceoflabour，andalongwithitthatofmostotherthings，continuingthesameduringallthesefluctuations。
Labour，therefore，itappearsevidently，istheonlyuniversal，aswellastheonlyaccuratemeasureofvalue，ortheonlystandardbywhichwecancomparethevaluesofdifferentcommoditiesatalltimes，andatallplaces。Wecannotestimate，itisallowed，therealvalueofdifferentcommoditiesfromcenturytocenturybythequantitiesofsilverwhichweregivenforthem。Wecannotestimateitfromyeartoyearbythequantitiesofcorn。Bythequantitiesoflabourwecan，withthegreatestaccuracy，estimateitbothfromcenturytocenturyandfromyeartoyear。Fromcenturytocentury，cornisabettermeasurethansilver，because，fromcenturytocentury，equalquantitiesofcornwillcommandthesamequantityoflabourmorenearlythanequalquantitiesofsilver。Fromyeartoyear，onthecontrary，silverisabettermeasurethancorn，becauseequalquantitiesofitwillmorenearlycommandthesamequantityoflabour。
Butthoughinestablishingperpetualrents，oreveninlettingverylongleases，itmaybeofusetodistinguishbetweenrealandnominalprice;itisofnoneinbuyingandselling，themorecommonandordinarytransactionsofhumanlife。
Atthesametimeandplacetherealandthenominalpriceofallcommoditiesareexactlyinproportiontooneanother。Themoreorlessmoneyyougetforanycommodity，intheLondonmarketforexample，themoreorlesslabouritwillatthattimeandplaceenableyoutopurchaseorcommand。Atthesametimeandplace，therefore，moneyistheexactmeasureoftherealexchangeablevalueofallcommodities。Itisso，however，atthesametimeandplaceonly。
Thoughatdistantplaces，thereisnoregularproportionbetweentherealandthemoneypriceofcommodities，yetthemerchantwhocarriesgoodsfromtheonetotheotherhasnothingtoconsiderbuttheirmoneyprice，orthedifferencebetweenthequantityofsilverforwhichhebuysthem，andthatforwhichheislikelytosellthem。HalfanounceofsilveratCantoninChinamaycommandagreaterquantitybothoflabourandofthenecessariesandconveniencesoflifethananounceatLondon。A
commodity，therefore，whichsellsforhalfanounceofsilveratCantonmaytherebereallydearer，ofmorerealimportancetothemanwhopossessesitthere，thanacommoditywhichsellsforanounceatLondonistothemanwhopossessesitatLondon。IfaLondonmerchant，however，canbuyatCantonforhalfanounceofsilver，acommoditywhichhecanafterwardssellatLondonforanounce，hegainsahundredpercentbythebargain，justasmuchasifanounceofsilverwasatLondonexactlyofthesamevalueasatCanton。ItisofnoimportancetohimthathalfanounceofsilveratCantonwouldhavegivenhimthecommandofmorelabourandofagreaterquantityofthenecessariesandconveniencesoflifethananouncecandoatLondon。AnounceatLondonwillalwaysgivehimthecommandofdoublethequantityofallthesewhichhalfanouncecouldhavedonethere，andthisispreciselywhathewants。
Asitisthenominalormoneypriceofgoods，therefore，whichfinallydeterminestheprudenceorimprudenceofallpurchasesandsales，andtherebyregulatesalmostthewholebusinessofcommonlifeinwhichpriceisconcerned，wecannotwonderthatitshouldhavebeensomuchmoreattendedtothantherealprice。
Insuchaworkasthis，however，itmaysometimesbeofusetocomparethedifferentrealvaluesofaparticularcommodityatdifferenttimesandplaces，orthedifferentdegreesofpoweroverthelabourofotherpeoplewhichitmay，upondifferentoccasions，havegiventothosewhopossessedit。Wemustinthiscasecompare，notsomuchthedifferentquantitiesofsilverforwhichitwascommonlysold，asthedifferentquantitiesoflabourwhichthosedifferentquantitiesofsilvercouldhavepurchased。
Butthecurrentpricesoflabouratdistanttimesandplacescanscarceeverbeknownwithanydegreeofexactness。Thoseofcorn，thoughtheyhaveinfewplacesbeenregularlyrecorded，areingeneralbetterknownandhavebeenmorefrequentlytakennoticeofbyhistoriansandotherwriters。Wemustgenerally，therefore，contentourselveswiththem，notasbeingalwaysexactlyinthesameproportionasthecurrentpricesoflabour，butasbeingthenearestapproximationwhichcancommonlybehadtothatproportion。Ishallhereafterhaveoccasiontomakeseveralcomparisonsofthiskind。
Intheprogressofindustry，commercialnationshavefounditconvenienttocoinseveraldifferentmetalsintomoney;goldforlargerpayments，silverforpurchasesofmoderatevalue，andcopper，orsomeothercoarsemetal，forthoseofstillsmallerconsideration。Theyhavealways，however，consideredoneofthosemetalsasmorepeculiarlythemeasureofvaluethananyoftheothertwo;andthispreferenceseemsgenerallytohavebeengiventothemetalwhichtheyhappenedfirsttomakeuseofastheinstrumentofcommerce。Havingoncebeguntouseitastheirstandard，whichtheymusthavedonewhentheyhadnoothermoney，theyhavegenerallycontinuedtodosoevenwhenthenecessitywasnotthesame。
TheRomansaresaidtohavehadnothingbutcoppermoneytillwithinfiveyearsbeforethefirstPunicwar，whentheyfirstbegantocoinsilver。Copper，therefore，appearstohavecontinuedalwaysthemeasureofvalueinthatrepublic。AtRomeallaccountsappeartohavebeenkept，andthevalueofallestatestohavebeencomputedeitherinassesorinsestertii。
Theaswasalwaysthedenominationofacoppercoin。Thewordsestertiussignifiestwoassesandahalf。Thoughthesestertius，therefore，wasoriginallyasilvercoin，itsvaluewasestimatedincopper。AtRome，onewhoowedagreatdealofmoneywassaidtohaveagreatdealofotherpeople’scopper。
ThenorthernnationswhoestablishedthemselvesupontheruinsoftheRomanempire，seemtohavehadsilvermoneyfromthefirstbeginningoftheirsettlements，andnottohaveknowneithergoldorcoppercoinsforseveralagesthereafter。ThereweresilvercoinsinEnglandinthetimeoftheSaxons;buttherewaslittlegoldcoinedtillthetimeofEdwardIIInoranycoppertillthatofJamesIofGreatBritain。InEngland，therefore，andforthesamereason，Ibelieve，inallothermodernnationsofEurope，allaccountsarekept，andthevalueofallgoodsandofallestatesisgenerallycomputedinsilver:andwhenwemeantoexpresstheamountofaperson’sfortune，weseldommentionthenumberofguineas，butthenumberofpoundssterlingwhichwesupposewouldbegivenforit。
Originally，inallcountries，Ibelieve，alegaltenderofpaymentcouldbemadeonlyinthecoinofthatmetal，whichwaspeculiarlyconsideredasthestandardormeasureofvalue。InEngland，goldwasnotconsideredasalegaltenderforalongtimeafteritwascoinedintomoney。Theproportionbetweenthevaluesofgoldandsilvermoneywasnotfixedbyanypubliclaworproclamation;butwaslefttobesettledbythemarket。Ifadebtorofferedpaymentingold，thecreditormighteitherrejectsuchpaymentaltogether，oracceptofitatsuchavaluationofthegoldasheandhisdebtorcouldagreeupon。Copperisnotatpresentalegaltenderexceptinthechangeofthesmallersilvercoins。Inthisstateofthingsthedistinctionbetweenthemetalwhichwasthestandard，andthatwhichwasnotthestandard，wassomethingmorethananominaldistinction。
Inprocessoftime，andaspeoplebecamegraduallymorefamiliarwiththeuseofthedifferentmetalsincoin，andconsequentlybetteracquaintedwiththeproportionbetweentheirrespectivevalues，ithasinmostcountries，Ibelieve，beenfoundconvenienttoascertainthisproportion，andtodeclarebyapubliclawthataguinea，forexample，ofsuchaweightandfineness，shouldexchangeforone—and—twentyshillings，orbealegaltenderforadebtofthatamount。Inthisstateofthings，andduringthecontinuanceofanyoneregulatedproportionofthiskind，thedistinctionbetweenthemetalwhichisthestandard，andthatwhichisnotthestandard，becomeslittlemorethananominaldistinction。
Inconsequenceofanychange，however，inthisregulatedproportion，thisdistinctionbecomes，oratleastseemstobecome，somethingmorethannominalagain。Iftheregulatedvalueofaguinea，forexample，waseitherreducedtotwenty，orraisedtotwo—and—twentyshillings，allaccountsbeingkeptandalmostallobligationsfordebtbeingexpressedinsilvermoney，thegreaterpartofpaymentscouldineithercasebemadewiththesamequantityofsilvermoneyasbefore;butwouldrequireverydifferentquantitiesofgoldmoney;agreaterintheonecase，andasmallerintheother。Silverwouldappeartobemoreinvariableinitsvaluethangold。Silverwouldappeartomeasurethevalueofgold，andgoldwouldnotappeartomeasurethevalueofsilver。Thevalueofgoldwouldseemtodependuponthequantityofsilverwhichitwouldexchangefor;andthevalueofsilverwouldnotseemtodependuponthequantityofgoldwhichitwouldexchangefor。Thisdifference，however，wouldbealtogetherowingtothecustomofkeepingaccounts，andofexpressingtheamountofallgreatandsmallsumsratherinsilverthaningoldmoney。OneofMr。Drummond’snotesforfive—and—twentyorfiftyguineaswould，afteranalterationofthiskind，bestillpayablewithfive—and—twentyorfiftyguineasinthesamemannerasbefore。Itwould，aftersuchanalteration，bepayablewiththesamequantityofgoldasbefore，butwithverydifferentquantitiesofsilver。Inthepaymentofsuchanote，goldwouldappeartobemoreinvariableinitsvaluethansilver。Goldwouldappeartomeasurethevalueofsilver，andsilverwouldnotappeartomeasurethevalueofgold。Ifthecustomofkeepingaccounts，andofexpressingpromissorynotesandotherobligationsformoneyinthismanner，shouldeverbecomegeneral，gold，andnotsilver，wouldbeconsideredasthemetalwhichwaspeculiarlythestandardormeasureofvalue。
Inreality，duringthecontinuanceofanyoneregulatedproportionbetweentherespectivevaluesofthedifferentmetalsincoin，thevalueofthemostpreciousmetalregulatesthevalueofthewholecoin。Twelvecopperpencecontainhalfapound，avoirdupois，ofcopper，ofnotthebestquality，which，beforeitiscoined，isseldomworthsevenpenceinsilver。Butasbytheregulationtwelvesuchpenceareorderedtoexchangeforashilling，theyareinthemarketconsideredasworthashilling，andashillingcanatanytimebehadforthem。EvenbeforethelatereformationofthegoldcoinofGreatBritain，thegold，thatpartofitatleastwhichcirculatedinLondonanditsneighbourhood，wasingenerallessdegradedbelowitsstandardweightthanthegreaterpartofthesilver。One—and—twentywornanddefacedshillings，however，wereconsideredasequivalenttoaguinea，whichperhaps，indeed，waswornanddefacedtoo，butseldomsomuchso。Thelateregulationshavebroughtthegoldcoinasnearperhapstoitsstandardweightasitispossibletobringthecurrentcoinofanynation;andtheorder，toreceivenogoldatthepublicofficesbutbyweight，islikelytopreserveitso，aslongasthatorderisenforced。Thesilvercoinstillcontinuesinthesamewornanddegradedstateasbeforethereformationofthegoldcoin。Inthemarket，however，one—and—twentyshillingsofthisdegradedsilvercoinarestillconsideredasworthaguineaofthisexcellentgoldcoin。
Thereformationofthegoldcoinhasevidentlyraisedthevalueofthesilvercoinwhichcanbeexchangedforit。
IntheEnglishmintapoundweightofgoldiscoinedintoforty—fourguineasandahalf，which，atone—and—twentyshillingstheguinea，isequaltoforty—sixpoundsfourteenshillingsandsixpence。Anounceofsuchgoldcoin，therefore，isworthL317s。
101/2d。insilver。InEnglandnodutyorseignorageispaiduponthecoinage，andhewhocarriesapoundweightoranounceweightofstandardgoldbulliontothemint，getsbackapoundweightoranounceweightofgoldincoin，withoutanydeduction。Threepoundsseventeenshillingsandtenpencehalfpennyanounce，therefore，issaidtobethemintpriceofgoldinEngland，orthequantityofgoldcoinwhichthemintgivesinreturnforstandardgoldbullion。
Beforethereformationofthegoldcoin，thepriceofstandardgoldbullioninthemarkethadformanyyearsbeenupwardsofL318s。sometimesL319s。andveryfrequentlyL4anounce;thatsum，itisprobable，inthewornanddegradedgoldcoin，seldomcontainingmorethananounceofstandardgold。
Sincethereformationofthegoldcoin，themarketpriceofstandardgoldbullionseldomexceedsL317s。7d。anounce。Beforethereformationofthegoldcoin，themarketpricewasalwaysmoreorlessabovethemintprice。Sincethatreformation，themarketpricehasbeenconstantlybelowthemintprice。Butthatmarketpriceisthesamewhetheritispaidingoldorinsilvercoin。Thelatereformationofthegoldcoin，therefore，hasraisednotonlythevalueofthegoldcoin，butlikewisethatofthesilvercoininproportiontogoldbullion，andprobably，too，inproportiontoallothercommodities;throughthepriceofthegreaterpartofothercommoditiesbeinginfluencedbysomanyothercauses，theriseinthevalueeitherofgoldorsilvercoininproportiontothemmaynotbesodistinctandsensible。
IntheEnglishmintapoundweightofstandardsilverbullioniscoinedintosixty—twoshillings，containing，inthesamemanner，apoundweightofstandardsilver。Fiveshillingsandtwopenceanounce，therefore，issaidtobethemintpriceofsilverinEngland，orthequantityofsilvercoinwhichthemintgivesinreturnforstandardsilverbullion。Beforethereformationofthegoldcoin，themarketpriceofstandardsilverbullionwas，upondifferentoccasions，fiveshillingsandfourpence，fiveshillingsandfivepence，fiveshillingsandsixpence，fiveshillingsandsevenpence，andveryoftenfiveshillingsandeightpenceanounce。Fiveshillingsandsevenpence，however，seemstohavebeenthemostcommonprice。Sincethereformationofthegoldcoin，themarketpriceofstandardsilverbullionhasfallenoccasionallytofiveshillingsandthreepence，fiveshillingsandfourpence，andfiveshillingsandfivepenceanounce，whichlastpriceithasscarceeverexceeded。Thoughthemarketpriceofsilverbullionhasfallenconsiderablysincethereformationofthegoldcoin，ithasnotfallensolowasthemintprice。
IntheproportionbetweenthedifferentmetalsintheEnglishcoin，ascopperisratedverymuchaboveitsrealvalue，sosilverisratedsomewhatbelowit。InthemarketofEurope，intheFrenchcoinandintheDutchcoin，anounceoffinegoldexchangesforaboutfourteenouncesoffinesilver。IntheEnglishcoin，itexchangesforaboutfifteenounces，thatis，formoresilverthanitisworthaccordingtothecommonestimationofEurope。Butasthepriceofcopperinbarsisnot，eveninEngland，raisedbythehighpriceofcopperinEnglishcoin，sothepriceofsilverinbullionisnotsunkbythelowrateofsilverinEnglishcoin。Silverinbullionstillpreservesitsproperproportiontogold;forthesamereasonthatcopperinbarspreservesitsproperproportiontosilver。
UponthereformationofthesilvercoininthereignofWilliamIIIthepriceofsilverbullionstillcontinuedtobesomewhatabovethemintprice。Mr。Lockeimputedthishighpricetothepermissionofexportingsilverbullion，andtotheprohibitionofexportingsilvercoin。Thispermissionofexporting，hesaid，renderedthedemandforsilverbulliongreaterthanthedemandforsilvercoin。Butthenumberofpeoplewhowantsilvercoinforthecommonusesofbuyingandsellingathome，issurelymuchgreaterthanthatofthosewhowantsilverbullioneitherfortheuseofexportationorforanyotheruse。
Theresubsistsatpresentalikepermissionofexportinggoldbullion，andalikeprohibitionofexportinggoldcoin:andyetthepriceofgoldbullionhasfallenbelowthemintprice。ButintheEnglishcoinsilverwasthen，inthesamemannerasnow，under—ratedinproportiontogold，andthegoldcoin（whichatthattimetoowasnotsupposedtorequireanyreformation）
regulatedthen，aswellasnow，therealvalueofthewholecoin。
Asthereformationofthesilvercoindidnotthenreducethepriceofsilverbulliontothemintprice，itisnotveryprobablethatalikereformationwilldosonow。
Werethesilvercoinbroughtbackasneartoitsstandardweightasthegold，aguinea，itisprobable，would，accordingtothepresentproportion，exchangeformoresilverincointhanitwouldpurchaseinbullion。Thesilvercoincontainingitsfullstandardweight，therewouldinthiscasebeaprofitinmeltingitdown，inorder，first，tosellthebullionforgoldcoin，andafterwardstoexchangethisgoldcoinforsilvercointobemelteddowninthesamemanner。Somealterationinthepresentproportionseemstobetheonlymethodofpreventingthisinconveniency。
Theinconveniencyperhapswouldbelessifsilverwasratedinthecoinasmuchaboveitsproperproportiontogoldasitisatpresentratedbelowit;provideditwasatthesametimeenactedthatsilvershouldnotbealegaltenderformorethanthechangeofaguinea，inthesamemannerascopperisnotalegaltenderformorethanthechangeofashilling。Nocreditorcouldinthiscasebecheatedinconsequenceofthehighvaluationofsilverincoin;asnocreditorcanatpresentbecheatedinconsequenceofthehighvaluationofcopper。Thebankersonlywouldsufferbythisregulation。Whenaruncomesuponthemtheysometimesendeavourtogaintimebypayinginsixpences，andtheywouldbeprecludedbythisregulationfromthisdiscreditablemethodofevadingimmediatepayment。Theywouldbeobligedinconsequencetokeepatalltimesintheircoffersagreaterquantityofcashthanatpresent;andthoughthismightnodoubtbeaconsiderableinconveniencytothem，itwouldatthesametimebeaconsiderablesecuritytotheircreditors。
Threepoundsseventeenshillingsandtenpencehalfpenny（themintpriceofgold）certainlydoesnotcontain，eveninourpresentexcellentgoldcoin，morethananounceofstandardgold，anditmaybethought，therefore，shouldnotpurchasemorestandardbullion。Butgoldincoinismoreconvenientthangoldinbullion，andthough，inEngland，thecoinageisfree，yetthegoldwhichiscarriedinbulliontothemintcanseldombereturnedincointotheownertillafteradelayofseveralweeks。Inthepresenthurryofthemint，itcouldnotbereturnedtillafteradelayofseveralmonths。Thisdelayisequivalenttoasmallduty，andrendersgoldincoinsomewhatmorevaluablethananequalquantityofgoldinbullion。IfintheEnglishcoinsilverwasratedaccordingtoitproperproportiontogold，thepriceofsilverbullionwouldprobablyfallbelowthemintpriceevenwithoutanyreformationofthesilvercoin;thevalueevenofthepresentwornanddefacedsilvercoinbeingregulatedbythevalueoftheexcellentgoldcoinforwhichitcanbechanged。
Asmallseignorageordutyuponthecoinageofbothgoldandsilverwouldprobablyincreasestillmorethesuperiorityofthosemetalsincoinaboveanequalquantityofeitheroftheminbullion。Thecoinagewouldinthiscaseincreasethevalueofthemetalcoinedinproportiontotheextentofthissmallduty;forthesamereasonthatthefashionincreasesthevalueofplateinproportiontothepriceofthatfashion。Thesuperiorityofcoinabovebullionwouldpreventthemeltingdownofthecoin，andwoulddiscourageitsexportation。Ifuponanypublicexigencyitshouldbecomenecessarytoexportthecoin，thegreaterpartofitwouldsoonreturnagainofitsownaccord。Abroaditcouldsellonlyforitsweightinbullion。Athomeitwouldbuymorethanthatweight。Therewouldbeaprofit，therefore，inbringingithomeagain。InFranceaseignorageofabouteightpercentisimposeduponthecoinage，andtheFrenchcoin，whenexported，issaidtoreturnhomeagainofitsownaccord。
Theoccasionalfluctuationsinthemarketpriceofgoldandsilverbullionarisefromthesamecausesasthelikefluctuationsinthatofallothercommodities。Thefrequentlossofthosemetalsfromvariousaccidentsbyseaandbyland，thecontinualwasteofthemingildingandplating，inlaceandembroidery，inthewearandtearofcoin，andinthatofplate;
require，inallcountrieswhichpossessnominesoftheirown，acontinualimportation，inordertorepairthislossandthiswaste。Themerchantimporters，likeallothermerchants，wemaybelieve，endeavour，aswellastheycan，tosuittheiroccasionalimportationstowhat，theyjudge，islikelytobetheimmediatedemand。Withalltheirattention，however，theysometimesoverdothebusiness，andsometimesunderdoit。Whentheyimportmorebullionthaniswanted，ratherthanincurtheriskandtroubleofexportingitagain，theyaresometimeswillingtosellapartofitforsomethinglessthantheordinaryoraverageprice。When，ontheotherhand，theyimportlessthaniswanted，theygetsomethingmorethanthisprice。Butwhen，underallthoseoccasionalfluctuations，themarketpriceeitherofgoldorsilverbullioncontinuesforseveralyearstogethersteadilyandconstantly，eithermoreorlessabove，ormoreorlessbelowthemintprice，wemaybeassuredthatthissteadyandconstant，eithersuperiorityorinferiorityofprice，istheeffectofsomethinginthestateofthecoin，which，atthattime，rendersacertainquantityofcoineitherofmorevalueoroflessvaluethantheprecisequantityofbullionwhichitoughttocontain。
Theconstancyandsteadinessoftheeffectsupposesaproportionableconstancyandsteadinessinthecause。
Themoneyofanyparticularcountryis，atanyparticulartimeandplace，moreorlessanaccuratemeasureofvalueaccordingasthecurrentcoinismoreorlessexactlyagreeabletoitsstandard，orcontainsmoreorlessexactlytheprecisequantityofpuregoldorpuresilverwhichitoughttocontain。
IfinEngland，forexample，forty—fourguineasandahalfcontainedexactlyapoundweightofstandardgold，orelevenouncesoffinegoldandoneounceofalloy，thegoldcoinofEnglandwouldbeasaccurateameasureoftheactualvalueofgoodsatanyparticulartimeandplaceasthenatureofthethingwouldadmit。Butif，byrubbingandwearing，forty—fourguineasandahalfgenerallycontainlessthanapoundweightofstandardgold;thediminution，however，beinggreaterinsomepiecesthaninothers;themeasureofvaluecomestobeliabletothesamesortofuncertaintytowhichallotherweightsandmeasuresarecommonlyexposed。Asitrarelyhappensthattheseareexactlyagreeabletotheirstandard，themerchantadjuststhepriceofhisgoods，aswellashecan，nottowhatthoseweightsandmeasuresoughttobe，buttowhat，uponanaverage，hefindsbyexperiencetheyactuallyare。Inconsequenceofalikedisorderinthecoin，thepriceofgoodscomes，inthesamemanner，tobeadjusted，nottothequantityofpuregoldorsilverwhichthecornoughttocontain，buttothatwhich，uponanaverage，itisfoundbyexperience，itactuallydoescontain。
Bythemoney—priceofgoods，itistobeobserved，I
understandalwaysthequantityofpuregoldorsilverforwhichtheyaresold，withoutanyregardtothedenominationofthecoin。Sixshillingsandeightpence，forexample，inthetimeofEdwardI，Iconsiderasthesamemoney—pricewithapoundsterlinginthepresenttimes;becauseitcontained，asnearlyaswecanjudge，thesamequantityofpuresilver。
CHAPTERVI
OftheComponentPartsofthePriceofCommoditiesINthatearlyandrudestateofsocietywhichprecedesboththeaccumulationofstockandtheappropriationofland，theproportionbetweenthequantitiesoflabournecessaryforacquiringdifferentobjectsseemstobetheonlycircumstancewhichcanaffordanyruleforexchangingthemforoneanother。Ifamonganationofhunters，forexample，itusuallycoststwicethelabourtokillabeaverwhichitdoestokilladeer，onebeavershouldnaturallyexchangefororbeworthtwodeer。Itisnaturalthatwhatisusuallytheproduceoftwodays’ortwohours’labour，shouldbeworthdoubleofwhatisusuallytheproduceofoneday’soronehour’slabour。
Iftheonespeciesoflabourshouldbemoreseverethantheother，someallowancewillnaturallybemadeforthissuperiorhardship;andtheproduceofonehour’slabourintheonewaymayfrequentlyexchangeforthatoftwohours’labourintheother。
Oriftheonespeciesoflabourrequiresanuncommondegreeofdexterityandingenuity，theesteemwhichmenhaveforsuchtalentswillnaturallygiveavaluetotheirproduce，superiortowhatwouldbeduetothetimeemployedaboutit。Suchtalentscanseldombeacquiredbutinconsequenceoflongapplication，andthesuperiorvalueoftheirproducemayfrequentlybenomorethanareasonablecompensationforthetimeandlabourwhichmustbespentinacquiringthem。Intheadvancedstateofsociety，allowancesofthiskind，forsuperiorhardshipandsuperiorskill，arecommonlymadeinthewagesoflabour;andsomethingofthesamekindmustprobablyhavetakenplaceinitsearliestandrudestperiod。
Inthisstateofthings，thewholeproduceoflabourbelongstothelabourer;andthequantityoflabourcommonlyemployedinacquiringorproducinganycommodityistheonlycircumstancewhichcanregulatethequantityexchangeforwhichitoughtcommonlytopurchase，command，orexchangefor。
Assoonasstockhasaccumulatedinthehandsofparticularpersons，someofthemwillnaturallyemployitinsettingtoworkindustriouspeople，whomtheywillsupplywithmaterialsandsubsistence，inordertomakeaprofitbythesaleoftheirwork，orbywhattheirlabouraddstothevalueofthematerials。Inexchangingthecompletemanufactureeitherformoney，forlabour，orforothergoods，overandabovewhatmaybesufficienttopaythepriceofthematerials，andthewagesoftheworkmen，somethingmustbegivenfortheprofitsoftheundertakeroftheworkwhohazardshisstockinthisadventure。Thevaluewhichtheworkmenaddtothematerials，therefore，resolvesitselfinthiseaseintotwoparts，ofwhichtheonepaystheirwages，theothertheprofitsoftheiremployeruponthewholestockofmaterialsandwageswhichheadvanced。Hecouldhavenointeresttoemploythem，unlessheexpectedfromthesaleoftheirworksomethingmorethanwhatwassufficienttoreplacehisstocktohim;andhecouldhavenointeresttoemployagreatstockratherthanasmallone，unlesshisprofitsweretobearsomeproportiontotheextentofhisstock。
Theprofitsofstock，itmayperhapsbethoughtareonlyadifferentnameforthewagesofaparticularsortoflabour，thelabourofinspectionanddirection。Theyare，however，altogetherdifferent，areregulatedbyquitedifferentprinciples，andbearnoproportiontothequantity，thehardship，ortheingenuityofthissupposedlabourofinspectionanddirection。Theyareregulatedaltogetherbythevalueofthestockemployed，andaregreaterorsmallerinproportiontotheextentofthisstock。Letussuppose，forexample，thatinsomeparticularplace，wherethecommonannualprofitsofmanufacturingstockaretenpercent，therearetwodifferentmanufactures，ineachofwhichtwentyworkmenareemployedattherateoffifteenpoundsayeareach，orattheexpenseofthreehundredayearineachmanufactory。
Letussuppose，too，thatthecoarsematerialsannuallywroughtupintheonecostonlysevenhundredpounds，whilethefinermaterialsintheothercostseventhousand。Thecapitalannuallyemployedintheonewillinthiscaseamountonlytoonethousandpounds;whereasthatemployedintheotherwillamounttoseventhousandthreehundredpounds。Attherateoftenpercent，therefore，theundertakeroftheonewillexpectayearlyprofitofaboutonehundredpoundsonly;whilethatoftheotherwillexpectaboutsevenhundredandthirtypounds。Butthoughtheirprofitsaresoverydifferent，theirlabourofinspectionanddirectionmaybeeitheraltogetherorverynearlythesame。Inmanygreatworksalmostthewholelabourofthiskindiscommittedtosomeprincipalclerk。Hiswagesproperlyexpressthevalueofthislabourofinspectionanddirection。Thoughinsettlingthemsomeregardishadcommonly，notonlytohislabourandskill，buttothetrustwhichisreposedinhim，yettheyneverbearanyregularproportiontothecapitalofwhichheoverseesthemanagement;andtheownerofthiscapital，thoughheisthusdischargedofalmostalllabour，stillexpectsthathisprofitsshouldbeararegularproportiontohiscapital。Inthepriceofcommodities，therefore，theprofitsofstockconstituteacomponentpartaltogetherdifferentfromthewagesoflabour，andregulatedbyquitedifferentprinciples。
Inthisstateofthings，thewholeproduceoflabourdoesnotalwaysbelongtothelabourer。Hemustinmostcasesshareitwiththeownerofthestockwhichemployshim。Neitheristhequantityoflabourcommonlyemployedinacquiringorproducinganycommodity，theonlycircumstancewhichcanregulatethequantitywhichitoughtcommonlytopurchase，command，orexchangefor。Anadditionalquantity，itisevident，mustbeduefortheprofitsofthestockwhichadvancedthewagesandfurnishedthematerialsofthatlabour。
Assoonasthelandofanycountryhasallbecomeprivateproperty，thelandlords，likeallothermen，lovetoreapwheretheyneversowed，anddemandarentevenforitsnaturalproduce。
Thewoodoftheforest，thegrassofthefield，andallthenaturalfruitsoftheearth，which，whenlandwasincommon，costthelaboureronlythetroubleofgatheringthem，come，eventohim，tohaveanadditionalpricefixeduponthem。Hemustthenpayforthelicencetogatherthem;andmustgiveuptothelandlordaportionofwhathislaboureithercollectsorproduces。Thisportion，or，whatcomestothesamething，thepriceofthisportion，constitutestherentofland，andinthepriceofthegreaterpartofcommoditiesmakesathirdcomponentpart。
Therealvalueofallthedifferentcomponentpartsofprice，itmustbeobserved，ismeasuredbythequantityoflabourwhichtheycan，eachofthem，purchaseorcommand。Labourmeasuresthevaluenotonlyofthatpartofpricewhichresolvesitselfintolabour，butofthatwhichresolvesitselfintorent，andofthatwhichresolvesitselfintoprofit。
Ineverysocietythepriceofeverycommodityfinallyresolvesitselfintosomeoneorother，orallofthosethreeparts;andineveryimprovedsociety，allthethreeentermoreorless，ascomponentparts，intothepriceofthefargreaterpartofcommodities。
Inthepriceofcorn，forexample，onepartpaystherentofthelandlord，anotherpaysthewagesormaintenanceofthelabourersandlabouringcattleemployedinproducingit，andthethirdpaystheprofitofthefarmer。Thesethreepartsseemeitherimmediatelyorultimatelytomakeupthewholepriceofcorn。Afourthpart，itmayperhapsbethought，isnecessaryforreplacingthestockofthefarmer，orforcompensatingthewearandtearofhislabouringcattle，andotherinstrumentsofhusbandry。Butitmustbeconsideredthatthepriceofanyinstrumentofhusbandry，suchasalabouringhorse，isitselfmadeupofthesamethreeparts;therentofthelanduponwhichheisreared，thelabouroftendingandrearinghim，andtheprofitsofthefarmerwhoadvancesboththerentofthisland，andthewagesofthislabour。Thoughthepriceofthecorn，therefore，maypaythepriceaswellasthemaintenanceofthehorse，thewholepricestillresolvesitselfeitherimmediatelyorultimatelyintothesamethreepartsofrent，labour，andprofit。
Inthepriceofflourormeal，wemustaddtothepriceofthecorn，theprofitsofthemiller，andthewagesofhisservants;inthepriceofbread，theprofitsofthebaker，andthewagesofhisservants;andinthepriceofboth，thelabouroftransportingthecornfromthehouseofthefarmertothatofthemiller，andfromthatoftheminertothatofthebaker，togetherwiththeprofitsofthosewhoadvancethewagesofthatlabour。
Thepriceofflaxresolvesitselfintothesamethreepartsasthatofcorn。Inthepriceoflinenwemustaddtothispricethewagesoftheflaxdresser，ofthespinner，oftheweaver，ofthebleacher，etc。，togetherwiththeprofitsoftheirrespectiveemployers。
Asanyparticularcommoditycomestobemoremanufactured，thatpartofthepricewhichresolvesitselfintowagesandprofitcomestobegreaterinproportiontothatwhichresolvesitselfintorent。Intheprogressofthemanufacture，notonlythenumberofprofitsincrease，buteverysubsequentprofitisgreaterthantheforegoing;becausethecapitalfromwhichitisderivedmustalwaysbegreater。Thecapitalwhichemploystheweavers，forexample，mustbegreaterthanthatwhichemploysthespinners;becauseitnotonlyreplacesthatcapitalwithitsprofits，butpays，besides，thewagesoftheweavers;andtheprofitsmustalwaysbearsomeproportiontothecapital。
Inthemostimprovedsocieties，however，therearealwaysafewcommoditiesofwhichthepriceresolvesitselfintotwopartsonly，thewagesoflabour，andtheprofitsofstock;andastillsmallernumber，inwhichitconsistsaltogetherinthewagesoflabour。Inthepriceofsea—fish，forexample，onepartpaysthelabourofthefishermen，andtheothertheprofitsofthecapitalemployedinthefishery。Rentveryseldommakesanypartofit，thoughitdoessometimes，asIshallshowhereafter。Itisotherwise，atleastthroughthegreaterpartofEurope，inriverfisheries。Asalmonfisherypaysarent，andrent，thoughitcannotwellbecalledtherentofland，makesapartofthepriceofasalmonaswellaswagesandprofit。InsomepartsofScotlandafewpoorpeoplemakeatradeofgathering，alongthesea—shore，thoselittlevariegatedstonescommonlyknownbythenameofScotchPebbles。Thepricewhichispaidtothembythestone—cutterisaltogetherthewagesoftheirlabour;neitherrentnorprofitmakeanypartofit。