ADVERTISEMENT
Mr。Malthus，ProfessorofPoliticalEconomy，attheEastIndiaCompany’sCollege，hasraisedhimselfveryhighintheliteraryworldbyhisEssayonPopulation，whichhasbeentranslatedintoallthelanguagesofEurope。
Forthesetwoyearspasthehasinformedus，thatheispreparingnewPrinciplesofPoliticalEconomy，consideredwithrespecttothepracticalApplications。
Thiswork，whichwasimpatientlyexpected，appearedinLondon，afewmonthssince。M。J。B。Say，whohasrenderedgreatservicestothisscienceinourCountry，andwhomwecanproudlyopposetothemostcelebratedEnglishnames，hasnotwaitedforaFrenchTranslationofit（1）tocombatthoseopinionswhichareinoppositiontohis。
Thisdiscussion，betweentwomenwhohaveprovedthemselvesable，andwhichisatthismomentinterestingtoalltheTradingInterestintheworld，hasappearedtousworthytheattentionofthepublic，notonlyunderexistingcircumstances，butatalltimes。
ItwillfurtherservetomakeMr。Malthus’sworkknowntothosewhohavenotreadit。
LETTERI。
Sir，AllthosewhocultivatethenewandbeautifulscienceofPoliticalEconomydesiretoreadtheworkwithwhichyouhavejustenrichedthatsubject。
Youarenotoneofthoseauthorswhoaddressthepublicwithouthavingsomethingtoinformthem；andwhentothecelebrityofthewriterisjoinedtheimportanceofthesubject，whenthesubjectisofnolessimportancetosociety，thantoinformthemwhataretheirmeansofexistenceandenjoyment，itistobesupposedthatthereader’scuriositymustbedoublyexcited。
Ishallnotundertake，Sir，tojoinmysuffragetothatofthepublic，bypointingouteverythingthatisingenious，andatthesametimejust，inyourwork；thiswouldbetoogreatatask。NorshallIundertaketoenterintoadiscussionwithyou，uponsomepointstowhichyouseemtometoattachanimportancethattheyscarcelyappeartomerit。Ishallnotheretireeitherthepublicoryoubydullcontroversies。But，Isayitwithsorrow，thattherearesomefundamentalprinciplesdiscoverableinyourdoctrine，which，weretheytobeadmittedonsopowerfulanauthorityasyours，mightcausetoretrogradeascience，theprogressofwhichyouaresogoodastoassistbyyourextensiveknowledgeandtalent。
And，inthefirstplace，whatfixesmyattention，becausealltheinterestofthemomentisattachedtoit，is，fromwhencecomesthatgeneraloverstockofallthemarketsoftheuniverse，towhichgoodsareincessantlycarriedwhichsellataloss？——Whencecomesitthatintheinteriorofeachstate，withawantofactioninunisonwithallthedevelopmentsofindustry，whencecomes，Isay，thatuniversaldifficultythat。isexperiencedinobtaininglucrativeemploy？Andwhenthecauseofthischronicmaladyisdiscovered，whatarethemeansofcure？Thesearequestionsuponwhichthehappinessandtranquillityofnationsdepend。WhereforeIcannotthinkadiscussiontendingtoelucidatethemwillbeunworthyyourattention，andthatofanenlightenedpublic。
Allthosewho，sinceAdamSmith，haveturnedtheirattentiontoPoliticalEconomy，agreethatinrealitywedonotbuyarticlesofconsumptionwithmoney，thecirculatingmediumwithwhichwepayforthem。Wemustinthefirstinstancehaveboughtthismoneyitselfbythesaleofourproduce。
Toaproprietorofamine，thesilvermoneyisaproducewithwhichhebuyswhathehasoccasionfor。Toallthosethroughwhosehandsthissilverafterwardspasses，itisonlythepriceoftheproducewhichtheythemselveshaveraisedbymeansoftheirpropertyinland，theircapitals，ortheirindustry。Insellingthemtheyinthefirstplaceexchangethemformoney，andafterwardstheyexchangethemoneyforarticlesofconsumption。
Itisthereforereallyandabsolutelywiththeirproducethattheymaketheirpurchases：thereforeitisimpossibleforthemtopurchaseanyarticleswhatever，toagreateramountthanthosetheyhaveproduced，eitherbythemselvesorthroughthemeansoftheircapitalortheirland。
FromthesepremisesIhavedrawnaconclusionwhichappearstomeevident，lbuttheconsequencesofwhichappeartohavealarmedyou。Ihadsaid——
Asnoonecanpurchasetheproduceofanotherexceptwithhisownproduce，astheamountforwhichwecanbuyisequaltothatwhichwecanproduce，the。morewecanproducethemorewecanpurchase。Fromwhenceproceedsthisotherconclusion，whichyourefusetoadmit——Thatifcertaincommoditiesdonotsell，itisbecauseothersarenotproduced，andthatitistheraisingproducealonewhichopensamarketforthesaleofproduce。
Iknowthatthispropositionhasaparadoxicalcomplexion，whichcreatesaprejudiceagainstit。Iknowthatonehasmuchgreaterreasontoexpecttobesupportedbyvulgarprejudices，whenoneassertsthatthecauseoftoomuchproduceisbecausealltheworldisemployedinraisingit。——
Thatinsteadofcontinuallyproducing，oneoughttomutiplybarrenconsumptions，andexpendtheoldcapitalinsteadofaccumulatingnew。Thisdoctrinehas，indeed，probabilityonitsside；itcanbesupportedbyarguments，factsmaybeinterpretedinitsfavor。But，Sir，whenCopernieusandGalileotaught，forthefirsttime，thatthesun，althoughweseeitriseeverymorningintheeast，magnificentlypassoverourheadsatnoon，andprecipitateitselftowardsthewestintheevening，stilldoesnotmovefromitsplace，theyhadalsouniversalprejudiceagainstthem，theopinionsoftheAncients，andtheevidenceofthesenses。Oughttheyonthataccounttorelinquishthosedemonstrationswhichwereproducedbyasoundjudgment？Ishoulddoyouaninjusticetodoubtyouranswer。
Besides，whenIassertthatproduceopensaventforproduce；thatthemeansofindustry，whatevertheymaybe，lefttothemselves，alwaysinclinethemselvestothosearticleswhicharethemostnecessarytonations，andthatthesenecessaryarticlescreateatthesametimefreshpopulations，andfreshenjoymentsforthosepopulations，allprobabilityisnotagainstme。
Letusgobackonlytwohundredyears，andsupposethatamerchanthadtakenarichcargotothesitesonwhichthepresentcitiesofNewYorkandPhiladelphiastand——Wouldhehavesoldit？Supposethat，withoutfailingavictimtothenatives，hehadsucceededinlayingthefoundationofanagriculturaloramanufacturalestablishment：Wouldhehavesoldthereanyoneofhisarticles？Mostcertainlynot。Hewouldhavebeenobligedtoconsumethemallhimself。Whydoweseeitsodifferentinourdays？
Why，assoonasgoodsarrive，oraremanufacturedatPhiladelphiaorNewYork，arewesuretosellthematthecourseofexchange？Itappearsevidenttomethatitisbecausethefarmers，themerchants，andatpresentthemanufacturers，evenofNewYorkandPhiladelphia，andofthesurroundingprovinces，produce，andimportproduce，bythemeansofwhichtheyacquirethatwhichisofferedtothembyothers。
WhatistrueasregardsanewState，itwillbesaidisnotsoofanoldone。TherewasroominAmericaformoreproducersandmoreconsumers；
butinacountrywheretherewerealreadymoreproducersthanwerenecessary，consumersonlywerewanted。Allowmetoanswer，thattheonlyrealconsumersarethosewhoproduceontheirpart，becausetheyalonecanbuytheproduceofothers，andthatbarrenconsumerscanbuynothingexceptbythemeansofvaluecreatedbyproducers。
ItisprobablethatinthetimeofthereignofQueenElizabeth，whenEnglandhadnothalfthepopulationofthepresentday，theyhadthendiscoveredthatthereweremorelaborersthanwork。Idesirenootherproofofthisthanthatverylawwhichwasthenpassedinfavorofthepoor，theresultofwhichisoneofthebanesofEngland。Itsprincipalobjectistofurnishworkfortheunfortunatewhocanfindnoemploy。Therewasnoemployinacountrywhichsincethenhasbeenabletofurnishenoughforadoubleandtriplenumberoflaborers。Whencecomesit，Sir，whencecomesit，howeverunfortunatemaybethesituationofGreatBritain？Aremoreofdiversarticlessoldinit，thaninthedaysofElizabeth？Whatcanbethecauseofthis，ifnotthatmoreisproduced？Oneproducesonething，whichheexchangeswithhisneighbourwhoproducesanother。Havingmorethanenoughforuse，thepopulationisincreased，andstilleverybodyhasbeenbettersupplied。
Itisthecapabilityofproductionwhichmakesthedifferencebetweenacountryandadesert。Andthemoreacountryproduces，themoreitisadvanced，themorepopulousitis，andisthebetterprovided。
Thisobservation，whichisself—evident，probablyisnotdeniedbyyou，butyoucomplainoftheconclusionsIdrawfromit。
Ihaveassertedthatifthereisanoverstock，asuperabundanceofmanykindsofgoods，itisbecauseothergoodsarenotproducedinsufficientquantitiestobeexchangedwiththefirst。Thatiftheproducersofthemcouldproducemore，orothers，thefirstwouldfindtheventwhichnowfails；inaword，thatthereisonlytoomuchproduceofcertainkindsbecausethereisnotenoughofothers，andyoupretendthattheremaybeasuperabundanceofallkindsatthesametime，citingatthesametimefactsinyourfavor。M。deSismondihadalreadyopposedmydoctrine，andIamverygladtoquoteherehismostforcibleexpressions，inordernottodepriveyou，Sir，ofanyadvantagethatbelongstoyou，andthatmyanswersmayserveforboth。
"Europe，"saysthisingeniousauthor，"isarrivedatapointtohave，inallitsparts，anindustryandamanufacturesuperiortoitswants。"
Headds，that"theincumbrancewhichresultsfromitbeginstobefeltintherestoftheworld。""Examinethereportsofcommerce，thenewspapers，randtheaccountsoftravellers，andeverywherewillbeseenproofsofthatsuper—abundanceofproductionbeyondtheconsumption，ofthatmanufacture，proportionate，nottothedemand，buttothecapitalemployed；ofthatactivityofmerchantswhichinducesthemtogoincrowdstoeverynewsettlement，andwhichexposesthembyturnstoruinouslossesineverytradeinwhichtheyexpectedprofit。Wehaveseenmerchandiseofallkinds，butparticularlythatofEngland，thegreatmanufacturingpower，aboundinallthemarketsofItaly，inaproportionsofarbeyondthedemand，astocompelthemerchants，inordertorealisepartoftheirfunds，toselltheirgoodsatalossofaquarter，orathird，insteadofataprofit。
ThetideofcommerceturnedawayfromItaly，founditswayintoGermany，Russia，andtheBrazils，andverysoonmetwiththesameobstaclesthere。
"Thelastadvicesinformusofsimilarlossesinnewcountries。InthemonthofAugust，1818，complaintsweremadeattheCapeofGoodHope，thatallthewarehouseswerefilledwithEuropeangoods，whichwereofferedatalowerpricethaninEurope，butwithoutfindingasale。InthemonthofJune，atCalcutta，thecomplaintsofcommercewereofthesamenature。
Astrangephenomenonatfirstappeared——EnglandsendingcottongoodstoIndia，andconsequentlysucceedinginworkingatalowerpricethanthehalf—nakedinhabitantsofHindostan，andreducingitsworkmentoastillmoremiserablestate。
"Butthiswhimsicalturngivertocommercedidnotlastlong。AtpresentBritishproductionsarccheaperinIndiathaninEnglanditself。InthemonthofMaytheywereobligedtore—exportfromNew—Holland，Europeangoodswhichhadbeensentthereintoogreatabundance。BuenosAyres，NewGrenada，andChili，arealreadyreturninggoodsinthesameway。
"Mr。Fearon’svoyagetotheUnitedStates，completedonlyinthespringof1818，presentsthisspectacleinastillmorestrikingpointofview。
Fromoneextremitytotheother，ofthisvastandprosperouscontinent，thereisnotacity，noratown，inwhichthequantityofgoodsofferedforsaleisnotinfinitelygreaterthanthemeansofthebuyers，notwithstandingthemerchantsendeavourtoinducethem，byverylongcredit，andeverykindoffacilityinthepayments，whichtheytakeinbillsorinprovisionsofallkinds。
"Nofactpresentsitselftousinagreaternumberofplaces，orundermorevariedshapes，thanthedisproportionofthemeansofconsumptionwiththeproduction——thantheimpossibilitywhichproducersfindtogiveuptheirindustrybecauseitisdeclining，——andthecertaintythattheirranksareneverthinnedbutbyfailures。Howisitthatphilosopherswillnotseethatwhichisevidenttoeveryvulgareye？
"Theerrorintowhichtheyhavefallenisentirelyowingtothisfalseprinciple——thattheproductionisthesamethingastherevenue。Mr。
Ricardo，accordingtoM。Say，repeatsandaffirmsit。’M。Sayhasprovedinthemostsatisfactorymanner，’sayshe，thatthereisnocapital，howeverlarge，thatcannotbeemployed，becausethedemandforproduceisonlyboundedbyproduction。’Nopersonproducesbutwiththeintentionofconsumingorsellingthearticleheproduces，andnoonesellsbutwiththeintentionofbuyingsomeotherproduction，whichmaybeofimmediateuse，orcontributetofutureproduction。
"Theproducerbecomesthereforeconsumerofhisproduce，orbuyerandconsumeroftheproduceofsomeotherperson。"Uponthisprinciple，"continuesM。deSismondi，"itbecomesabsolutelyimpossibletocomprehendorexplainthebestdemonstratedfactinallthehistoryofcommerce，viz。thechoakingupthemarkets。"（2）
Ishallfirstofallobserve，tothosepersonstowhomthefactsaboutwhichM。deSismondiafflictshimselfwithsomereason，appearconclusive，thattheyareineffectconclusive；butthatconclusionisagainsthimself。
TherearetoomanyEnglishgoodsofferedinItalyandelsewhere，becausetherearenotasufficientquantityofItaliangoodssuitedtoEngland。
Acountrybuysonlywhatitcanpayfor；forifitdidnotpay，otherswouldsoonceasetoselltoit。NowwithwhatdotheItalianspaytheEnglish？
Withoil，silks，andraisins；besidesthesearticlesandafewothers，iftheywantmoreEnglishproductions，withwhatwouldtheypayforthem？
Withmoney!ButtheymustobtainthemoneywherewithtopayfortheEnglishproductions。Youseeclearly，Sir，thatinordertoobtainproductions，anation，aswellasanindividual，musthaverecoursetoitsownproductions。
ItissaidthattheEnglishsellatalossinthoseplaceswhichtheyinundatewiththeirgoods，whichIreadilybelieve。Theymultiplythegoodsoffered，whichdepreciatesit；andtheytakespecieinpaymentasmuchastheycan，whichconsequentlymakesmorescarceandmorevaluable。——
Beingbecomemoreprecious，alessquantityisgivenineachexchange。
Thisisthereasontheyareobligedtosellataloss。Butsupposeforamoment，thattheItalianshadmorecapital——thattheyemployedtheirlandandtheirindustriouspowersbetter——inaword，thattheyproducedmore；andsuppose，atthesametime，thattheEnglishlaws，insteadofhavingbeenframedupontheabsurdideaofthebalancepfcommerce，hadadmitted，onmoderateterms，everythingthattheItalianscouldhaveproduced，inpaymentforEnglishproductions；canyouimaginethatEnglishgoodswouldthenincumbertheItalianports，ordoubtthatastillgreaterquantityofgoodswouldfindareadysale？
TheBrazils，avastcountry，highlyfavoredbynature，couldconsumeahundredtimestheEnglishgoodswhichaccumulatethere，anddon’tsell；
butitwouldbenecessarythatBrazilshouldproduceallthatitiscapableofproducing；andhowisthispoorBraziltosucceedinthis？AlltheeffortsofhercitizensareparalisedbyherAdministration。Ifanybranchofindustryappearslikelytoyieldaprofit，theexecutivepowerseizesanddestroysit。Ifanyonefindsapreciousstone，itistakenawayfromhim。GreatencouragementtoseekformorewherewithtobuyEuropeangoods!!
TheEnglishGovernmentrejects，onitspart，bymeansofitsCustomHousesandImportationDuties，theproductionwhichtheEnglishmightbringfromabroad，inexchangefortheirgoods，andeventhenecessaryprovisions，ofwhichtheirmanufacturersstandsomuchinneed；
andthisbecauseitisnecessarythattheEnglishfarmersshouldselltheirwheatataboveeightyshillingsperquarter，inordertoenablethemtopaytheenormoustaxes。Allthesenationscomplainofthesufferingstowhichtheyhavereducedthemselvesbytheirownfault。Thisputsmeinmindofinvalidswhoareoutoftemperwiththeirsufferings，butwhowillnotcorrectthemselvesofthoseexcesseswhicharetheprimarycauseofthem。Iknowthatanoakisnotsoeasilygrubbedupasaperniciousweed。
Iknowthatoldbarriersarenottakenaway，howeverrottentheymaybe，whentheyaresupportedbythedirtwhichhascollectedaroundthem。I
knowthatcertaincorruptandcorruptinggovernmentsstandinneedofmonopoliesandcustom—duties，topayforthevoteofthehonorablemajoritieswhopretendtobetherepresentativesofnations。Iamnotsufficientlyunjusttodesirethatoneshouldgovernwithaviewtothegeneralinterest，inordertoobtainallthevoteswithoutpayingforthem；butatthesametime，whyshouldIbesurprisedthatdeplorableconsequencesshouldbetheresultofsomanyvicioussystems？
Youwillreadilyadmitwithme，Sir，atleastIpresumeso，themischiefwhichnationsdotoeachotherbytheirjealousies，theirsordidinterest，orbytheignoranceofthosewhosetthemselvesupastheirorganisers；
butyoumaintainthat，evensupposingtheyhavehadmoreliberalinstitutions，thecommoditiesproducedmayexceedthewantsofconsumers。Well，Sir，Iamreadytodefendmyselfonthisground。
Letuspassoverthewarwhichnationscarryonagainsteachotherwiththeir"douaniers，"letusconsidereachpeopleintheirrelationswiththemselves，andletusunderstand，onceforall，whetherwearebeyondthereachofconsumingwhatwearecapableofproducing。
"M。Say，’Mr。Mill，andMr。Ricardo，whomyoucalltheprincipalauthorsofthenewdoctrineofprofit，appeartomet。ohavefallenintofundamentalerrorsonthatsubject。Inthefirstplacetheyhavelookeduponmerchandiseasthoughitwereanalgebraiccharacterinsteadofbeinganarticleofconsumption，whichmustnecessarilyhavereferencetothenumberofconsumers，andtothenatureoftheirwants。"（3）
Idon’tknow，Sir，atleastasfarasregardsmyself，uponwhatyoufoundthataccusation。Ihaveconsideredthisideainallitsshapes——
thatthevalueofthings（theonlyqualitywhichmakesthemriches）isroundedontheirutility，ontheaptitudetheypossesstosatisfyourwants。
"Theneedwehaveofthings，Isaid，（4）dependsuponthemoralandphysicalnatureofman，theclimatehelivesin，andonthemannersandlegislationofhiscountry。Hehaswantsofthebody，wantsofthemind，andofthesoul；wantsforhimself，othersforhisfamily，othersstillasamemberofsociety。Theskinofabear，andarein—deer，arearticlesofthefirstnecessitytoaLaplander，whilsttheverynameofthemisunknowntotheLazzaroniofNaples。Thelatterforhispartcandowithouteverything，providedhecanobtainmacaroni。InthestonemannertheCourtsofJudicatureinEuropeareconsideredasoneofthestrongestbondsofthesocialbody，whilsttheindigentpeopleofAmerica，theArabs，andtheTartars，doverywellwithoutthem。
"Ofthesewrests，somearesatisfiedbytheusewemakeofcertainthings，withwhichNaturefurnishesusgratuitously，suchastheair，water，andthelightofthesun。Wemaycallthesethingsnaturalriches，becauseNaturealonepaysthecostofthem。Asshegivesthemindiscriminatelytoall，noonehasoccasiontoacquirethembymeansofanysacrificewhatever；
therefore，theyhavenoexchangeablevalue。
"Otherwantscanonlybesatisfiedbytheusewemakeofcertainthings，towhichtheusetheyareofcouldonly，begiventhembycausingthemtoundergoamodification，byhavingeffectedachangeintheirstate，andbyhavingforthatpurposesurmountedsomedifficultyorother。Sucharethethingswhichwecanonlyobtainbyagriculturalprocess，bycommerce，orthearts。Thesearetheonlypropertythathasanexchangeablevalue。
Thereasonofwhichisevident——theyare，bythesimplefactoftheirproduction，theresultofanexchangeinwhichtheproducerhasgivenhisproductiveservicesforthepurposeofreceivingthisproduce。Fromthattimetheycannotbeobtainedfromhim，exceptbyvirtueofanotherexchange——bygivinghimanotherproductionwhichhemayestimateatasmuchashisown。
"Thesethingsmaybecalledsocialriches，becausenoexchangecantakeplacewithoutsocialintercourse，andbecauseitisonlyinsocietythattherightofexclusivelypossessingwhathasbeenobtainedbyproduction，orexchange，canbeguaranteed。"
Iadd；"Letusobserve，atthesametime，thatsocialrichesare，asriches，theonlyoneswhichcanbecometheobjectofascientificstudy；
1st。becausetheyaretheonlyoneswhichareappreciable，oratleastwhoseappreciationisnotarbitrary；2nd。becausetheyaretheonlyoneswhichareobtained，distributed，anddestroyed，agreeablytothelawswhichwemaymake。"
Isthisconsideringproductionsasalgebraiccharacters，byabstractingthenumberofconsumers，andthenatureoftheirwants？Doesnotthisdoctrineestablish，onthecontrary，thatourwantsalonecompelustomakesacrificesbymeanswhereofweobtainproductions？
Thesesacrificesarethepricewepaytoobtainthem。Youcallthesesacrifices，accordingtoSmith，bythenameoflabor，whichisaninsufficientexpression，fortheyincludetheconcurrenceoflandandcapital。
Icallthemproductiveservice。Theyhaveeverywhereapricecurrent；assoonasthispriceexceedsthevalueofthethingproduced，adisadvantageousexchangeistheresult，inwhichagreatervaluehasbeenconsumedthanhasbeenproduced。
Assoonasaproducehasbeencreated，whichisequivalenttoservices，theservicesarepaidbytheproduce，thevalueofwhich，bybeingdistributedamongsttheproducers，formstheirrevenue。Youseethereforethatthisrevenueonlyexistsinproportiontotheexchangeablevalueoftheproduce，andthatitcanonlyhavethatvalueinconsequenceofthedemandforit，inthepresentstateofsociety。Idonotthereforeseparatethiswant，nordoIgiveitanarbitraryvaluation。Itakeitforwhatitis——forwhattheconsumerswillhaveittobe。Icouldquote，ifitwerenecessary，thewholeofmybookiii。whichdetailsthedifferentmodesofconsuming，theircausesandeffects；but1willnotintrudeuponyourtimeandattention。
Let，usproceed。
Yousay"Itisbynomeanstrue；infact，thatcommoditiesarealwaysbarteredforcommodities。Thegreatestpartofcommoditiesaredirectlyexchangedforlabor，productiveorunproductive，anditisevidentthatthismassofcommoditiesaltogether，comparedtothelaborforwhichtheyaretobeexchanged，maydepreciateinvalueonaccountofitssuperabundance，thesameasasinglearticle，inparticular，maybyitssuperabundancefallinvalueinrespecttolaborormoney。"（5）
Allowmetoobserve，inthefirstplace，thatIdidnotsaythatcommoditiesarealwaysbarteredforcommodities，butratherthatproductionsareonlyboughtwithproductions。
Inthesecondplace，thatthosewhoadmitthisexpression，commodity，mightreplytoyou，thatwhencommoditiesaregiveninpaymentoflabor，thesecommoditiesareineffectexchangedforothercommodities，thatistosayforthosewhichareproducedbythelaborthatispaidfor。
Butthisanswer。isnotsufficientforthosewhotakeamoreextendedandcompleteviewofthephenomenonoftheproductionofourriches。Allowmetolaybeforeyouastrikingfigure；thepublic，bywhomwearejudged，willIhopefindgreatfacilitiesinit，inweighingthemeritofyourobjectionsandmyanswers。
Forthepurposeofshowingtheoperationofindustry，capital，andland，intheworkofproduction，Ipersonifythem；andIfindthateachoneofthesepersonssellshisservices，（whichIcallproductiveservices，）
toanenterpriserwhoisamerchant，amanufacturer，orratherafarmer。
Thisenterpriserhavingboughttheservicesofaparcelofland，bypayingarenttotheproprietor，theservicesofacapitalbypayinginteresttoacapitalist，andtheindustriousservicesoflaborers，clerks，oragentsofanykind，bypayingthemasalary，consumesandannihilatesalltheseproductiveservices；andfromthisconsumption，aproduceofacertainvalueemanates。
’Thevalueoftheproduce，provideditbeequaltothecostsofproduction，thatistosay，tothepricewhichithasbeennecessary。toadvanceforalltheproductiveservices，issufficienttopaytheprofitsofallthosewhohavecontributed，directlyorindirectly，tothisproductionTheprofitoftheenterpriser，onwhoseaccounttheoperationhasbeenmade，bydeductingtheinterestofthecapitalthathasbeenemployed，representsthesalaryforhistimeandtalent，thatistosay，hisownservicesproductivetohimself。
Ifhiscapacitywasgreat，andhiscalculationswellmade，hisprofitisconsiderable。Ifinsteadoftalent，hehasshownignoranceinhisbusiness，hewillhavegainednothing；hewillhavelost。Itistheenterpriserwhotakesalltherisk；butitishe，ontheotherhand，whobenefitsbyeveryfavorableresult。
Alltheproductionswhichdailycomebeforeus，andallthosewhichourimaginationstanconceive，havebeenformedbyoperations，everyoneofwhichformspartofthoseIhavejustexplained，butcombinedinaninfinityofdifferentways。Whatsomeenterprisersdotoobtaincertainproductions，othersdotoobtainotherproductions。Nowitisthesevariousproductions，whichbeingexchangedagainsteachother，openareciprocalventeachtotheother……Thegreaterorlesswantthereisofoneoftheseproductions，comparedwithothers，determinesanexchangeatagreaterorlessprice；thatis，foragreaterorlessquantityofanyotherproduction。
Moneyisnothingmoreinthismatterthanapassingagent，which，theexchangeoncecomplete，hasnothingmoretodowithit，butisemployedinotherexchanges。
Itiswiththerentoftheland，theinterest，andthesalaries，whichformtheprofitsresultingfromthisproduction，thattheproducerspurchasethearticlesoftheirconsumption。Producersareatthesametimeconsumers；
andthenatureoftheirwants，havinganinfluence，indifferentdegrees，onthedemandfordifferentproductions，alwaysfavors，whenlibertyexists，theproductionofthatwhichismostnecessary，because，beingthemostindemand，itimmediatelybecomesthearticlewhichyieldsthegreatestprofittoenterprisers。
Ihavesaid，thatforthepurposeofbettershowinghowindustry。capital，andland，actinproductiveoperations，Iwouldpersonifythem，andmarktheservicestheyrender。Butthisisnotamerefiction：theyarefacts。
Industryisrepresentedbytheindustriousofallclasses，capitalbythecapitalists，andlandbytheproprietors。Itisthesethreeclassesofpersonswhoselltheproductiveactionoftheircommodity，andwhoaffixthepricetoit。
Mymodeofexpressingmyselfmaybecensured；butthenitwillbenecessarytoproduceabetter，foritcannotbedeniedthatthingstakeplaceasIhaveasserted。Ihavedescribedthefacts。Themodeofdescriptionmaybecensured；butdon’tletanyoneflatterhimselfthathecancontrovertthefacts；theretheyare，andwilldefendthemselves。
Letusnowresumeyouraccusation——Yousay，Sir，thatmanycommoditiesareboughtwithlabor；andIgofurtherthanyoudo，Isaythattheymustallbesobought；extendingthisexpression，labor，totheservicerenderedbycapitalandland，（6）Isaythattheycannotbeboughtinanyotherway；thatitisinvariablybysuchservicesthatuseandvaluearegiventothings；andthatultimatelytwothingspresentthemselvestous，oneofconsumingourselvestheutilityandconsequentlythevaluewehaveproduced，theothertoemployitinpurchasingtheutilityandvalueproducedbyothers；thatinbotheaseswepurchasecommoditieswithproductiveservices，andthatthegreaterportionofproductiveserviceweemploy，themorewecanbuy。
Youpretendthatthereisnosuchthingasimmaterialproduce。Ah!Sir，originallytherewasnoother。Afielditselffurnishednothingtowardstheproductionbutitsservice，whichisanimmaterialproduce。Itservesasacrucibleinwhichmineralsareput，andfromwhencetomeoutmetalanddross。Isthereanypartofthecrucibleintheseproductions？No；
thecrucibleservesforanewproductiveoperation。Isthereanypartofthefieldintheharvestwhichitproduces？Ianswerthesame：No；forifafundoflandexhausteditself，itwouldfinishattheendofacertainnumberofyears，bybeingentirelyannihilated。Afundoflandonlyreturnswhatisputintoit；butthisisafteranelaborationwhichIcalltheproductiveserviceofthefield。Imaybecriticisedabouttheword，butIfearnotanycriticismonthesubject，becausethethingis，andwillbe，andwhereverpoliticaleconomyisstudiedthiswillbefoundtobethefact，whatevernamemaybethoughtpropertobegiventoit。Theservicewhichacapitalrenders，inwhateverenterpriseitisemployed，whethercommercial，agricultural，ormanufactural，isthesame——animmaterialproduce。Hewhoexpendsacapitalunproductivelydestroysthecapitalitself；hewhoexpendsitproductivelyexpendsthematerialcapital，andtheserviceofthiscapitalbesides，whichisanimmaterialproduce。
Whenadyerputsonethousandfrancs’worthofindigointohiscauldronheconsumesathousandfrancs’worthofindigo，immaterialproduce，andheconsumes，besides，thetimehiscapitalisemployed，thatisitsinterest。
Thedyeheobtainsreturnshimthevalueofthematerialcapitalwhichhehasemployed，andthevalueoftheimmaterialserviceofthissamecapitalbesides。
Theserviceoftheworkmanisalsoanimmaterialproduce。Theworkmanleaveshismanufactory，intheevening，justashewentintoitinthemorning。Hehasleftnothingmaterialinhisworkshop，thereforeitisanimmaterialservicewhichhehasfurnishedtoaproductiveoperation。
ThisserviceisthedailyandannualproduceofafundwhichIcallhisindustriouspowers，andwhichconstituteshiswealth；apoorwealth!
particularlyinEngland，andIknowthecauseofit。
Allthesethingsconstituteimmaterialproduce；call。thembywhatevernameyouplease，theywillbenootherthanimmaterialproduce，whichwillexchangeoneagainsttheother，orformaterialproduce，andwhichinalltheseexchangeswillformtheirregulatedprice—current，likeallotherprice—currentsintheworld，ontheproportionbetweenthesupplyandthedemand。
Alltheseservices，ofindustry，capital，andland，whichareproductionsindependentofallmatter，formtherevenueofallmankind。What!
allourrevenuesareimmaterial!!Yes，Sir，all：otherwiseitwouldbenecessarythatthemassofmatterofwhichtheGlobeiscomposedshouldbeaugmentedeveryyear。Thiswouldbenecessaryinorderthateveryyearwemighthaveafreshmaterialrevenue。Weneithercreatenordestroyasingleatom。Weconfineourselvestochangingitscombinations，andeverythingweemployinitisimmaterial。Itisofvalue；anditisthatvalue，alsoimmaterial，whichweconsumedailyandyearly，andwhichkeepsusalive；forconsumptionisachangeofformgiventomatter，or，ifyoupreferit，aderangementofform，asproductionisthearrangementofit。
Ifyoufindanythingparadoxicalinallthesepropositions，lookatthethingstheyexpress，andIhavenodoubttheywillappearverysimpleandveryreasonabletoyou。
WithoutthisanalysisIdefyyoutoexplaintheentirefacts；toexplain，forexample，howthesamecapitalisconsumedtwice，productivelybyanenterpriser，andunproductivelybyhisworkman。Byhelpoftheprecedinganalysisitwillbeseen，thattheworkmansupplieshislabor，theproduceofhiscapacity，whichhesellstotheenterpriser——takeshomehissalary，whichformshisrevenue，andconsumesitunproductively。Theenterpriser，（whohasboughtthelaboroftheworkman）onhispart，bydevotingapartofhiscapitaltoit，consumesitproductively，thesameasthedyerproductivelyconsumestheindigohethrowsintohiscauldron。Thesevalues，havingbeenreproductivelydestroyed，reappearintheproducewhichcomesoutofthehandsoftheenterpriser。Itisnottheenterpriser’scapitalwhichformstheworkman’srevenue，asM。Sismondipretends。Itisintheworkshops，andnotintheworkman’sdwelling，thattheenterpriser’scapitalisconsumed。
Thevalueconsumedattheworkman’shousehasanothersource，itistheproduceofhisindustriouspowers。Theenterpriserdevotesapartofhiscapitaltothepurchaseofthislabor。
Havingboughtit，heconsumesit；andtheworkmanonhispartconsumesthevaluehehasobtainedinexchangeforhislabor。Whereverthereisanexchange，therearetwovalues。createdandbartered；andwhereevertwovaluesarecreated，therecanbeandthereisinfacttwoconsumptions。（7）
Itisthesamewithproductiveserviceyieldedbythecapital。Thecapitalistwholendsitsellstheservice，thelaborofhiscommodity，andthedailyoryearlyprice，whichanenterpriserpayshimforit，iscalledinterest。
Thetwotermsofexchangeare，theoneserviceatecapital，theotherinterest。
Theenterpriser，atthesametimethatheproductivelyconsumesthecapital，alsoproductivelyconsumestheserviceofthecapital。Thelender，onhispart，whohassoldtheserviceofhiscapital，unproductivelyconsumestheinterestofit，whichisamaterialvalue，giveninexchangefortheimmaterialserviceofthecapital。Itisastonishingthatthereisadoubleconsumption：thatoftheenterprisertomakehisproduce，andthatofthecapitalisttosatisfyhiswants，sincetherearethetwotermsofoneexchange，twovaluesproceedingfromtwodifferentfunds，bartered，andbothconsumable？
Yousay，Sir，thatthedistinctionbetweenproductiveandunproductivelaboristheearnerstoneofAdamSmith’swork，andthattocall，asIhavedone，thatlaborproductivewhichisnotfixedinanymaterialobject，istooverthrowhisworkfromtoptobottom。No，Sir，thisisnottheearnerstoneofAdamSmith’swork，since，thatstonebeingshaken，theedificeisimperfectwithoutbeinglessstable。Whatwilleternallysupportthatexcellentworkis，thatitproclaimsinallitspages，thatthechangeablevalueofthingsisthefoundationofallwealth。
Itisfromthattimethatpoliticaleconomyisbecomeapositivescience；
fortheprice—currentofeachthingisadeterminedquantity，theelementsofwhichmaybeanalised，thecausesassigned，thebearingsstudied，andthechangesforeseen。Bytakingawayfromthedefinitionofwealththisessentialcharacter，allowmetoinformyou，Sir，wereplungethescienceintothesurge，anddriveitback。
FarfromunderminingthecelebratedinquiriesintotheWealthofNations，Isupporttheminalltheiressentialparts；butatthestonetime，IthinkAdamSmithhasmisconceivedrealexchangeablevalue，byforgettingthatwhichisattachedtoproductiveservice，whichleavesnotracebehind，becausethewholeofitisconsumed。Ithinkhehasalsoforgottenrealservices，whichevenleavetracesbehindthem，inmaterialproductionssuchasserviceofcapital，consumed，independentlyofthecapitalitself。
Ithinkhehasgotintoinfiniteobscurity，forwantofhavingdistinguishedtheconsumptionoftheindustriousservicesofanenterpriser，fromtheservicesofhiscapital——adistinctionsoreal，however，thatthereisscarcelyanycommercialhousethatdoesnotkeeptheseaccountsunderdistinctheads。
IrevereAdamSmith，——heismymaster。AtthecommencementofmycareerinPoliticalEconomy，whilstyettottering，anddrivenontheonehandbytheDoctorsoftheBalanceofTrade，andontheotherbytheDoctorsofNetProceeds，Istumbledateverystep，heshowedmethefightroad。
LeaninguponhisWealthofNations，whichatthesametimediscoverstousthewealthofhisgenius，Ilearnedtogoalone。NowInolongerbelongtoanyschool，andshallnotsharetheridiculeoftheReverendJesuitFatherswhotranslatedNewton’sElements，withnotes。TheyfeltthatthelawsofnaturalphilosophydidnotwellaccordwiththoseofLoyola；theyalsotookcaretoinformthepublicbyanAdvertisement，thatalthoughtheyhadapparentlyshownthemotionoftheEarth，inordertocompletethedevelopmentofcelestialphilosophy，theywerenotlessundersubjectiontothedecreesofthePope，whodidnotadmitthismotion。
IamonlyunderthesubjectionofthedecreesofeternalReason，andI
amnotafraidtosayso。AdamSmithhasnotembracedthewholeofthephenomenonoftheproductionandconsumptionofwealth，buthehasdonesomuchthatweoughttofeelgratefultohim。Thankstohim，themostvague，themostobscureofscienceswillsoonbecomethemostprecise，andthatwhichofallotherswillleavethefewestpointsunexplained。
Letusfiguretoourselves，producers（andunderthisnameIcompriseaswellthepossessorsofcapitalsandlands，asthepossessorsofindustriouspowers，）letusfancythemadvancing，tomeeteachotherwiththeirproductiveservices，ortheprofitwhichhasresultedfromthem（animmaterialquality）。
Thisprofitistheirproduce。Sometimesitisfixedonanimmaterialobject，whichistransmittedwiththeimmaterialproduce，butwhichinitselfisofnoimportance，isnothing，inpoliticalEconomy：formatter，dispossessedofvalue，isnotwealth。Sometimesitistransmitted，issoldbyone，andboughtbyanother，withoutbeingfixedinanymatter。ItistheadviceoftheDoctorortheLawyer，theserviceoftheSoldierorthepublicOfficer。
Everyoneexchangestheutilityheproducesagainstthatwhichisproducedbyothers，andineveryoneoftheseexchanges，whicharecarriedtoaccountinabookofcompetition，astheutilityofferedbyPaulismoreorlessindemandthanthatofferedbyJacques，itsellsdearerorcheaper——thatistosay，thatitobtainsinexchangemoreorlessoftheutilityofferedbythelatter。Itisinthissensethattheinfluenceofthedemandandsupplymustbeunderstood。（8）
This，Sir，isnotadoctrineadvancedbywayofafterthought；itistobefoundinsundrypartsofmyTreatiseonPoliticalEconomy；（9）andbythehelpofmyEpitomeitscoincidencewitheveryotherprincipleofthescience，andwithallthefactswhichserveforitsbasis，isfundamentallythesame。ItisalreadyprofessedinmanypartsofEurope；butIearnestlydesirethatitmaysucceedinconvincingyou，andthatitmayappeartoyoutobeworthyofbeingintroducedintothechair，whichyoufillwithsomucheclat。
Afterthesenecessaryexplanations，youwillnotaccusemeoffinesseifIrestuponthoselawswhichIhaveshowntoberoundedonthenatureofthingsandonthefactswhichissuefromthem。
Commodities，yousay，areonlyexchangedforcommodities：theyarealsoexchangedforlabor。Ifthislaborbeaproducethatsomepersonssell，thatothersbuy，andthatthelatterconsume，itwillcostmeverylittletocallitaCommodity，anditwillcostvouverylittlemoretoassimilateothercommoditiestoit，fortheyarealsoproduce……ThencomprisingbothunderthegenericnameofProduce，youmayperhapsadmitthatproduceisboughtonlywithproduce。
LETTERTHESECOND。
SIR，IthinkIhaveprovedinmyfirstletterthatProducecanonlybeboughtwithProduce。Istillseenoeausetoabandonthisdoctrine，thatitisproduetionwhichopensamarketforproduction。ItistruethatIhavetakenasproduce，alltheserviceswhichproceedfromourpersonalcapacities，fromourcapitals，andourpropertyinland，whiehhasputmeunderthenecessityofsketchingafresh，andinotherterms，theDoctrineofProduction，whichSmithevidentlyhasneitherunderstood，norentirelydescribed。
However，Sir，onreadingagainthe3rdsectionofyourchapter7，（10）Ifeelthatthereisstillonepointinwhichyoudonotagreewithme。
Youwillperhapsconfessthatproduceisboughtonlvwithotherproduce，butyoupersistinmaintainingthatmencan，puttingallproductionstogether，produceacluantitvmorethanequaltotheirwants，andconsequently——
thieftherewillbenoemployforapartoftheseproductions——thattheremaybeasuperabundanceandglutofallkindsatthesametime。Forthepurposeofpresentingyourobjectioninallitsforce，Iwilltransformitintoafigure，andwillsay，M。Malthusreadilyadmitsthatonehundredsacksofwheatwillpurchaseahundredpiecesofcloth，inapartnershipwhichhasoccasionforthisquantityofclothandwheattoclotheandfeedthemselves，butthatifthesamecompanyshouldproducetwohundredsacksofwheatandtwohundredpiecesofcloth，itwouldbeinvainthatthesetwocommoditiescouldbeexchangedtheonefortheother：hewillmaintainthatapartof’themwouklfindnobuyers。Imusttherefore，Sir，proveinthefirstplace，thatwhateverbethequantityproduced，andtheconsequentdepreciationofitsprice，aquantityproducedofonekindisalwayssufficienttoenabletheproducertoacquirethequantityproducedofanotherkind；
andafterhavingprovedthatthepossibilityofacquiringexists，Imustenquirehowthoseproductionswhichsuperaboundgiverisetowantstoconsumethem。
Thefarmerwhoproduceswheat，afterhavingboughttheproductiveservicesoftheland，ofthecapitalheemploys，andofhisservants，andhavingaddedhisoxrnlabourtoit，hasconsumedallthesevaluestoconvertthemintosacksofwheat，andeachsack，includinghisownlabour，thatistosayhisprofit，wewillsupposereturnshim30francs。Ontheotherhandthemanufacturerwhoproducesflaxen，woollen，orcottoncloth，nomatterwhich，——themanufacturerinfactafterhavinginthesamemannerconsumedtheservicesofhiscapital，hisownservices，andthoseofhismen，hasmanufacturedpiecesofcloth，eachofwhichalsoreturnshim30francs。
Ifyouwillallowmetocomeatoncetothemainpointofthequestion，Iwillconfesstoyouthatmycloth—merchantrepresentsinmymindtheproducersofallmanufacturedproduce，andmywheat—merchanttheproducersofalltheprovisionsoflifeandrawmaterials。Thequestionis，whetherthewholeoftheirtwoproductions，towhateverextenttheymaybemultiplied，andwhatevermavbetheconsequentdepressionintheirprice，canbeboughtbytheirproducers，whoareatthesametimetheirconsumers，andhowthewantcontinuallyincreasesinproportiontothequantityproduced。
Wewillfirstexaminewhattakesplaceinthehypothesisofaperfectliberty，whichallowstheindefinitemultiplicationofallproductions，andafterwardswewillexamineintotheobstacleswhichthenatureofthingsortheimperfectionsofsocietyopposetothisindefinitelibertyofproduction。
Butyouwillsaythatthehypothesisofanindefiniteproductionismorefavorabletoyourcause，becauseitismoredifficulttodisposeofanunlimitedthanofacircumscribedproduction，andthatthehypothesisofacircumscribedproduction，sometimesfromonecausesometimesanother，ismorefavorabletomine，whichestablishes，thatitistheseveryrestrictionswhich，bypreventingcertainproductions，injurethepurchasethatmightbemadeofthoseproductionswhichcanonlybeindefinitelymultiplied。
Inthehypothesisofperfectliberty，theproducerofwheatarrivesatmarketwithasackwhichyieldshim，includinghisprofit，30francs；
andtheproducerofclothwithapiecewhichbringshimthesameprice：
andconsequentlywithtwoproductionswhichexchangeequally：（11）thatwhichsellsaboveitscostofproduction，willinduceapartoftheproducersoftheothercommoditytoturntotheproductionofthisuntiltheproductiveservicesareequallypaidbyboth。Thisisaneffectgenerallyadmitted。
Itisrighttoobservethatinthishypothesistheproducersofthepieceofclothaltogetherhavegainedsufficienttobuyinthewholepieceoranyotherproductionofequalvalue。——Ifitamountsforexampleto30francs，includingeverythingeventhemanufacturer’sprofitattherateatwhichcompetitionhasfixedit，thissumisfounddistributedamongsttheproducersofthepieceofcloth，butinunequalparts，accordingtothekindandquantityofservicesrenderedtoproduceit。
Ifthepiececontainstenells，hewhohasgained6francscanbuytwoellsofit，hewhohasgained30sonscanonlybuyhalfanell，butitisstillclearthatallofthemtogethercanbuythewholepiece。That，ifinsteadofbuyingcloththeywishtobuywheat，theycanalsobuythewholequantity，becauseliketheclothitisonlyworth30francs，thesameastheycanbuyindifferentlyaccordingtotheirwants，eitheraportionofthepieceofclothoranequivalentpartofthesackofwheat。
Hewhohasgainedbyeitheroftheseproductionssixfrancs，mayemploythreefrancsinatenthofthepieceofcloth，andthreefrancsinatenthofthewheat，stillitistruethatalltheproducerstogethercanacquirethe。wholeoftheproductions。
Itishere，Sir，thatyougroundyourobjections。——Ifproductionsincrease，yousay，orwantsdiminish，theproductionswillfalltotoolowapricetopayforthelabournecessarytotheirproduction。（12）BeforeIreplytoyou，Sir，Iinformyouthat，ifoutofpolitenessImakeuseofyourwordlabour，which，accordingtotheexplanationgiveninmyprecedingletter，isincomplete，Ishallcompriseunderthatterm，notonlytheproductiveserviceofaworkmanandhismaster，butalsotheproductiveservicesrenderedbythecapitalandtheland，serviceswhichhavetheir’price，aswellaspersonallabor，andsorealapricethatthecapitalistandthelandholderliveuponit。
Thispointbeingunderstood，Ireply，inthefirstplace，thatproductionsbydiminishinginpricedonotdisenabletheproducerstopurchasethelaborwhichhascreatedthem，oranyotherequivalentlabor。Inourhypothesistheproducersofcorn，byamoreskilfulprocess，willproduceadoublequantityofcorn，andtheproducersofclothadoublequantityofcloth，andthecornaswellastheclothwillbediminishedonehalf，inprice。