Asforprices，inthesecircumstancestheywouldbeaffected
ornot，accordingastheimprovementsinproductiondidordid
notextendtothepreciousmetals。Ifthematerialsofmoneywere
anexceptiontothegeneraldiminutionofcostofproduction，the
valuesofallotherthingswouldfallinrelationtomoney，that
is，therewouldbeafallofgeneralpricesthroughouttheworld。
Butifmoney，likeotherthings，andinthesamedegreeasother
things，wereobtainedingreaterabundanceandcheapness，prices
wouldbenomoreaffectedthanvalueswould:andtherewouldbe
novisiblesigninthestateofthemarkets，ofanyofthe
changeswhichhadtakenplace;exceptthattherewouldbe（if
peoplecontinuedtolabourasmuchasbefore）agreaterquantity
ofallsortsofcommodities，circulatedatthesamepricesbya
greaterquantityofmoney。
Improvementsinproductionarenottheonlycircumstance
accompanyingtheprogressofindustry，whichtendstodiminish
thecostofproducing，oratleastofobtaining，commodities。
Anothercircumstanceistheincreaseofintercoursebetween
differentpartsoftheworld。Ascommerceextends，andthe
ignorantattemptstorestrainitbytariffsbecomeobsolete，
commoditiestendmoreandmoretobeproducedintheplacesin
whichtheirproductioncanbecarriedonattheleastexpenseof
labourandcapitaltomankind。Ascivilizationspreads，and
securityofpersonandpropertybecomesestablished，inpartsof
theworldwhichhavenothithertohadthatadvantage，the
productivecapabilitiesofthoseplacesarecalledintofuller
activity，forthebenefitbothoftheirowninhabitantsandof
foreigners。Theignoranceandmisgovernmentinwhichmanyofthe
regionsmostfavouredbynaturearestillgrovelling，afford
work，probably，formanygenerationsbeforethosecountrieswill
beraisedeventothepresentlevelofthemostcivilizedparts
ofEurope。Muchwillalsodependontheincreasingmigrationof
labourandcapitaltounoccupiedpartsoftheearth，ofwhichthe
soil，climate，andsituationarefound，bytheamplemeansof
explorationnowpossessed，topromisenotonlyalargereturnto
industry，butgreatfacilitiesofproducingcommoditiessuitedto
themarketsofoldcountries。Muchasthecollectiveindustryof
theearthislikelytobeincreasedinefficiencybythe
extensionofscienceandoftheindustrialarts，astillmore
activesourceofincreasedcheapnessofproductionwillbefound，
probably，forsometimetocome，inthegraduallyunfolding
consequencesofFreeTrade，andintheincreasingscaleonwhich
EmigrationandColonizationwillbecarriedon。
Fromthecausesnowenumerated，unlesscounteractedby
others，theprogressofthingsenablesacountrytoobtainat
lessandlessofrealcost，notonlyitsownproductionsbut
thoseofforeigncountries。Indeed，whateverdiminishesthecost
ofitsownproductions，whenofanexportablecharacter，enables
it，aswehavealreadyseen，toobtainitsimportsatlessreal
cost。
2。Butisitthefact，thatthesetendenciesarenot
counteracted？Hastheprogressofwealthandindustrynoeffect
inregardtocostofproduction，buttodiminishit？Areno
causesofanoppositecharacterbroughtintooperationbythe
sameprogress，sufficientinsomecasesnotonlytoneutralize，
buttoovercometheformer，andconvertthedescendingmovement
ofcostofproductionintoanascendingmovement？Wearealready
awarethattherearesuchcauses，andthat，inthecaseofthe
mostimportantclassesofcommodities，foodandmaterials，there
isatendencydiametricallyoppositetothatofwhichwehave
beenspeaking。Thecostofproductionofthesecommoditiestends
toincrease。
Thisisnotapropertyinherentinthecommodities
themselves。Ifpopulationwerestationary，andtheproduceofthe
earthneverneededtobeaugmentedinquantity，therewouldbeno
causeforgreatercostofproduction。Mankindwould，onthe
contrary，havethefullbenefitofallimprovementsin
agriculture，orintheartssubsidiarytoit，andtherewouldbe
nodifference，inthisrespect，betweentheproductsof
agricultureandthoseofmanufactures。Theonlyproductsof
industry，which，ifpopulationdidnotincrease，wouldbeliable
toarealincreaseofcostofproduction，arethosewhich，
dependingonamaterialwhichisnotrenewed，areeitherwholly
orpartiallyexhaustible;suchascoal，andmostifnotall
metals;foreveniron，themostabundantaswellasmostuseful
ofmetallicproducts，whichformsaningredientofmostminerals
andofalmostallrocks，issusceptibleofexhaustionsofaras
regardsitsrichestandmosttractableores。
When，however，populationincreases，asithasneveryet
failedtodowhentheincreaseofindustryandofthemeansof
subsistencemaderoomforit，thedemandformostofthe
productionsoftheearth，andparticularlyforfood，increasesin
acorrespondingproportion。Andthencomesintoeffectthat
fundamentallawofproductionfromthesoil，onwhichwehaveso
frequentlyhadoccasiontoexpatiate;thelaw，thatincreased
labour，inanygivenstateofagriculturalskill，isattended
withalessthanproportionalincreaseofproduce。Thecostof
productionofthefruitsoftheearthincreases，caeteris
paribus，witheveryincreaseofthedemand。
Notendencyofalikekindexistswithrespectto
manufacturedarticles。Thetendencyisinthecontrarydirection。
Thelargerthescaleonwhichmanufacturingoperationsare
carriedon，themorecheaplytheycaningeneralbeperformed。Mr
Seniorhasgonethelengthofenunciatingasaninherentlawof
manufacturingindustry，thatinitincreasedproductiontakes
placeatasmallercost，whileinagriculturalindustryincreased
productiontakesplaceatagreatercost。Icannotthink，
however，thateveninmanufactures，increasedcheapnessfollows
increasedproductionbyanythingamountingtoalaw。Itisa
probableandusual，butnotanecessary，consequence。
Asmanufactures，however，dependfortheirmaterialseither
uponagriculture，ormining，orthespontaneousproduceofthe
earth，manufacturingindustryissubject，inrespectofoneof
itsessentials，tothesamelawasagriculture。Butthecrude
materialgenerallyformssosmallaportionofthetotalcost，
thatanytendencywhichmayexisttoaprogressiveincreasein
thatsingleitem，ismuchover。balancedbythediminution
continuallytakingplaceinalltheotherelements;towhich
diminutionitisimpossibleatpresenttoassignanylimit。
Thetendency，then，beingtoaperpetualincreaseofthe
productivepoweroflabourinmanufactures，whileinagriculture
andminingthereisaconflictbetweentwotendencies，theone
towardsanincreaseofproductivepower，theothertowardsa
diminutionofit，thecostofproductionbeinglessenedbyevery
improvementintheprocesses，andaugmentedbyeveryadditionto
population;itfollowsthattheexchangevaluesofmanufactured
articles，comparedwiththeproductsofagricultureandofmines，
have，aspopulationandindustryadvance，acertainanddecided
tendencytofall。Moneybeingaproductofmines，itmayalsobe
laiddownasarule，thatmanufacturedarticlestend，associety
advances，tofallinmoneyprice。Theindustrialhistoryof
modernnations，especiallyduringthelasthundredyears，fully
bearsoutthisassertion。
3。Whetheragriculturalproduceincreasesinabsoluteaswell
ascomparativecostofproduction，dependsontheconflictofthe
twoantagonistagencies，increaseofpopulation，andimprovement
inagriculturalskill。Insome，perhapsinmost，statesof
society，（lookingatthewholesurfaceoftheearth，）both
agriculturalskillandpopulationareeitherstationary，or
increaseveryslowly，andthecostofproductionoffood，
therefore，isnearlystationary。Inasocietywhichisadvancing
inwealth，populationgenerallyincreasesfasterthan
agriculturalskill，andfoodconsequentlytendstobecomemore
costly;buttherearetimeswhenastrongimpulsesetsintowards
agriculturalimprovement。Suchanimpulsehasshownitselfin
GreatBritainduringthelasttwentyorthirtyyears。InEngland
andScotlandagriculturalskillhasoflateincreased
considerablyfasterthanpopulation，insomuchthatfoodandother
agriculturalproduce，notwithstandingtheincreaseofpeople，can
begrownatlesscostthantheywerethirtyyearsago:andthe
abolitionoftheCornLawshasgivenanadditionalstimulusto
thespiritofimprovement。Insomeothercountries，and
particularlyinFrance，theimprovementofagriculturegains
groundstillmoredecidedlyuponpopulation，becausethough
agriculture，exceptinafewprovinces，advancesslowly，
populationadvancesstillmoreslowly，andevenwithincreasing
slowness;itsgrowthbeingkeptdown，notbypoverty，whichis
diminishing，butbyprudence。
Whichofthetwoconflictingagenciesisgaininguponthe
otheratanyparticulartime，mightbeconjecturedwithtolerable
accuracyfromthemoneypriceofagriculturalproduce（supposing
bullionnottovarymateriallyinvalue），providedasufficient
numberofyearscouldbetaken，toformanaverageindependentof
thefluctuationsofseasons。This，however，ishardly
practicable，sinceMrTookehasshownthatevensolongaperiod
ashalfacenturymayincludeamuchgreaterproportionof
abundantandasmallerofdeficientseasonsthanisproperlydue
toit。Amereaverage，therefore，mightleadtoconclusionsonly
themoremisleading，fortheirdeceptivesemblanceofaccuracy。
Therewouldbelessdangeroferrorintakingtheaverageofonly
asmallnumberofyears，andcorrectingitbyaconjectural
allowanceforthecharacteroftheseasons，thanintrustingtoa
longeraveragewithoutanysuchcorrection。Itishardly
necessarytoadd，thatinfoundingconclusionsonquotedprices，
allowancemustalsobemadeasfaraspossibleforanychangesin
thegeneralexchangevalueofthepreciousmetals。（1*）
4。Thusfar，oftheeffectoftheprogressofsocietyonthe
permanentoraveragevaluesandpricesofcommodities。Itremains
tobeconsidered，inwhatmannerthesameprogressaffectstheir
fluctuations。Concerningtheanswertothisquestiontherecanbe
nodoubt。Ittendsinaveryhighdegreetodiminishthem。In
poorandbackwardsocieties，asintheEast，andinEuropeduring
theMiddleAges，extraordinarydifferencesinthepriceofthe
samecommoditymightexistinplacesnotverydistantfromeach
other，becausethewantofroadsandcanals，theimperfectionof
marinenavigation，andtheinsecurityofcommunications
generally，preventedthingsfrombeingtransportedfromthe
placeswheretheywerecheaptothosewheretheyweredear。The
thingsmostliabletofluctuationsinvalue，thosedirectly
influencedbytheseasons，andespeciallyfood，wereseldom
carriedtoanygreatdistances。Eachlocalitydepended，asa
generalrule，onitsownproduceandthatofitsimmediate
neighbourhood。Inmostyears，accordingly，therewas，insome
partorotherofanylargecountry，arealdearth。Almostevery
seasonmustbeunpropitioustosomeamongthemanysoilsand
climatestobefoundinanextensivetractofcountry;butasthe
sameseasonisalsoingeneralmorethanordinarilyfavourableto
others，itisonlyoccasionallythattheaggregateproduceofthe
wholecountryisdeficient，andeventheninalessdegreethan
thatofmanyseparateportions;whileadeficiencyatall
considerable，extendingtothewholeworld，isathingalmostun。
known。Inmoderntimes，therefore，thereisonlydearth，where
thereformerlywouldhavebeenfamine，andsufficiencyeverywhere
whenancientlytherewouldhavebeenscarcityinsomeplacesand
superfluityinothers。
Thesamechangehastakenplacewithrespecttoallother
articlesofcommerce。Thesafetyandcheapnessofcommunications，
whichenableadeficiencyinoneplacetobesuppliedfromthe
surplusofanother，atamoderateorevenasmalladvanceonthe
ordinaryprice，renderthefluctuationsofpricesmuchless
extremethanformerly。Thiseffectismuchpromotedbythe
existenceoflargecapitals，belongingtowhatarecalled
speculativemerchants，whosebusinessitistobuygoodsinorder
toresellthemataprofit。Thesedealersnaturallybuyingthings
whentheyarecheapest，andstoringthemuptobebroughtagain
intothemarketwhenthepricehasbecomeunusuallyhigh;the
tendencyoftheiroperationsistoequalizeprice，oratleastto
moderateitsinequalities。Thepricesofthingsareneitherso
muchdepressedatonetime，norsomuchraisedatanother，as
theywouldbeifspeculativedealersdidnotexist。
Speculators，therefore，haveahighlyusefulofficeinthe
economyofsociety;and（contrarytocommonopinion）themost
usefulportionoftheclassarethosewhospeculatein
commoditiesaffectedbythevicissitudesofseasons。Ifthere
werenocorn—dealers，notonlywouldthepriceofcornbeliable
tovariationsmuchmoreextremethanatpresent，butina
deficientseasonthenecessarysuppliesmightnotbeforthcoming
atall。Unlesstherewerespeculatorsincorn，orunless，in
defaultofdealers，thefarmersbecamespeculators，thepricein
aseasonofabundancewouldfallwithoutanylimitorcheck，
exceptthewastefulconsumptionthatwouldinvariablyfollow。
Thatanypartofthesurplusofoneyearremainstosupplythe
deficiencyofanother，isowingeithertofarmerswhowithhold
cornfromthemarket，ortodealerswhobuyitwhenatthe
cheapestandlayitupinstore。
5。Amongpersonswhohavenotmuchconsideredthesubject，
thereisanotionthatthegainsofspeculatorsareoftenmadeby
causinganartificialscarcity;thattheycreateahighpriceby
theirownpurchases，andthenprofitbyit。Thismayeasilybe
showntobefallacious。Ifacorn—dealermakespurchaseson
speculation，andproducesarise，whenthereisneitheratthe
timenorafterwardsanycauseforariseofpriceexcepthisown
proceedings;henodoubtappearstogrowricheraslongashis
purchasescontinue，becauseheisaholderofanarticlewhichis
quotedatahigherandhigherprice:butthisapparentgainonly
seemswithinhisreachsolongashedoesnotattempttorealize
it。Ifhehasbought，forinstance，amillionofquarters，andby
with。holdingthemfromthemarket，hasraisedthepriceten
shillingsaquarter;justsomuchasthepricehasbeenraisedby
withdrawingamillionquarters，willitbeloweredbybringing
themback，andthebestthathecanhopeisthathewilllose
nothingexceptinterestandhisexpenses。Ifbyagradualand
cautioussaleheisabletorealize，onsomeportionofhis
stores，apartoftheincreasedprice，soalsohewill
undoubtedlyhavehadtopayapartofthatpriceonsomeportion
ofhispurchases。Herunsconsiderableriskofincurringastill
greaterloss;forthetemporaryhighpriceisverylikelytohave
temptedothers，whohadnoshareincausingit，andwhomight
otherwisenothavefoundtheirwaytohismarketatall，tobring
theircornthere，andinterceptapartoftheadvantage。Sothat
insteadofprofitingbyascarcitycausedbyhimself，heisbyno
meansunlikely，afterbuyinginanaveragemarket，tobeforced
tosellinasuper—abundantone。
Asanindividualspeculatorcannotgainbyariseofprice
solelyofhisowncreating，soneithercananumberof
speculatorsgaincollectivelybyarisewhichtheiroperations
haveartificiallyproduced。Someamonganumberofspeculators
maygain，bysuperiorjudgmentorgoodfortuneinselectingthe
timeforrealizing，buttheymakethisgainattheexpense，not
oftheconsumer，butoftheotherspeculatorswhoareless
judicious。They，infact，converttotheirownbenefitthehigh
priceproducedbythespeculationsoftheothers，leavingto
thesethelossresultingfromtherecoil。Itisnottobedenied，
therefore，thatspeculatorsmayenrichthemselvesbyother
people’sloss。Butitisbythelossesofotherspeculators。As
muchmusthavebeenlostbyonesetofdealersasisgainedby
anotherset。
Whenaspeculationinacommodityprovesprofitabletothe
speculatorsasabody，itisbecause，intheintervalbetween
theirbuyingandreselling，thepricerisesfromsomecause
independentofthem，theironlyconnexionwithitconsistingin
havingforeseenit。Inthiscase，theirpurchasesmaketheprice
begintorisesoonerthanitotherwisewoulddo，thusspreading
theprivationoftheconsumersoveralongerperiod，but
mitigatingitatthetimeofitsgreatestheight:evidentlyto
thegeneraladvantage。Inthis，however，itisassumedthatthey
havenotoverratedtherisewhichtheylookedforwardto。Forit
oftenhappensthatspeculativepurchasesaremadeinthe
expectationofsomeincreaseofdemand，ordeficiencyofsupply，
whichafteralldoesnotoccur，ornottotheextentwhichthe
speculatorexpected。Inthatcasethespeculation，insteadof
moderatingfluctuation，hascausedafluctuationofpricewhich
otherwisewouldnothavehappened，oraggravatedonewhichwould。
Butinthatcase，thespeculationisalosingone，tothe
speculatorscollectively，howevermuchsomeindividualsmaygain
byit。Allthatpartoftheriseofpricebywhichitexceeds
whatthereareindependentgroundsfor，cannotgivetothe
speculatorsasabodyanybenefit，sincethepriceisasmuch
depressedbytheirsalesasitwasraisedbytheirpurchases;and
whiletheygainnothingbyit，theylose，notonlytheirtrouble
andexpenses，butalmostalwaysmuchmore，throughtheeffects
incidenttotheartificialriseofprice，inchecking
consumption，andbringingforwardsuppliesfromunforeseen
quarters。Theoperations，therefore，ofspeculativedealers，are
usefultothepublicwheneverprofitabletothemselves;and
thoughtheyaresometimesinjurioustothepublic，byheightening
thefluctuationswhichtheirmoreusualofficeistoalleviate，
yetwheneverthishappensthespeculatorsarethegreatest
losers。Theinterest，inshort，ofthespeculatorsasabody，
coincideswiththeinterestofthepublic;andastheycanonly
failtoservethepublicinterestinproportionastheymiss
theirown，thebestwaytopromotetheoneistoleavethemto
pursuetheotherinperfectfreedom。
Idonotdenythatspeculatorsmayaggravatealocal
scarcity。Incollectingcornfromthevillagestosupplythe
towns，theymakethedearthpenetrateintonooksandcorners
whichmightotherwisehaveescapedfrombearingtheirshareof
it。Tobuyandresellinthesameplace，tendstoalleviate
scarcity;tobuyinoneplaceandresellinanother，mayincrease
itintheformerofthetwoplaces，butrelievesitinthe
latter，wherethepriceishigher，andwhich，therefore，bythe
verysupposition，islikelytobesufferingmore。Andthese
sufferingsalwaysfallhardestonthepoorestconsumers，since
therich，byoutbidding，canobtaintheiraccustomedsupply
undiminishediftheychoose。Tonopersons，therefore，arethe
operationsofcorn—dealersonthewholesobeneficialastothe
poor。Accidentallyandexceptionally，thepoormaysufferfrom
them:itmightsometimesbemoreadvantageoustotheruralpoor
tohavecorncheapinwinter，whentheyareentirelydependenton
it，eveniftheconsequencewereadearthinspring，whenthey
canperhapsobtainpartialsubstitutes。Butthereareno
substitutes，procurableatthatseason，whichserveinanygreat
degreetoreplacebread—cornasthechiefarticleoffood:if
therewere，itspricewouldfallinthespring，insteadof
continuing，asitalwaysdoes，torisetilltheapproachof
harvest。
Thereisanoppositionofimmediateinterest，atthemoment
ofsale，betweenthedealerincornandtheconsumer，asthere
alwaysisbetweenthesellerandthebuyer:andatimeofdearth
beingthatinwhichthespeculatormakeshislargestprofits，he
isanobjectofdislikeandjealousyatthattime，tothosewho
aresufferingwhileheisgaining。Itisanerror，however，to
supposethatthecorn。dealer’sbusinessaffordshimany
extraordinaryprofit:hemakeshisgainsnotconstantly，butat
particulartimes，andtheymustthereforeoccasionallybegreat，
butthechancesofprofitinabusinessinwhichthereissomuch
competition，cannotonthewholebegreaterthaninother
employments。Ayearofscarcity，inwhichgreatgainsaremadeby
corn—dealers，rarelycomestoanendwithoutarecoilwhich
placesmanyoftheminthelistofbankrupts。Therehavebeenfew
morepromisingseasonsforcorn—dealersthantheyear1847，and
seldomwasthereagreaterbreak—upamongthespeculatorsthanin
theautumnofthatyear。Thechancesoffailure，inthismost
precarioustrade，areasetoffagainstgreatoccasionalprofits。
Ifthecorn—dealerweretosellhisstores，duringadearth，ata
lowerpricethanthatwhichthecompetitionoftheconsumers
assignstohim，hewouldmakeasacrifice，tocharityor
philanthropy，ofthefairprofitsofhisemployment，whichmaybe
quiteasreasonablyrequiredfromanyotherpersonofequal
means。Hisbusinessbeingausefulone，itistheinterestofthe
publicthattheordinarymotivesshouldexistforcarryingiton，
andthatneitherlawnoropinionshouldpreventanoperation
beneficialtothepublicfrombeingattendedwithasmuchprivate
advantageasiscompatiblewithfullandfreecompetition。
Itappears，then，thatthefluctuationsofvaluesandprices
arisingfromvariationsofsupply，orfromalterationsinreal
（asdistinguishedfromspeculative）demand，maybeexpectedto
becomemoremoderateassocietyadvances。Withregardtothose
whicharisefrommiscalculation，andespeciallyfromthe
alterationsofundueexpansionandexcessivecontractionof
credit，whichoccupysoconspicuousaplaceamongcommercial
phenomena，thesamethingcannotbeaffirmedwithequal
confidence。Suchvicissitudes，beginningwithirrational
speculationandendingwithacommercialcrisis，havenot
hithertobecomeeitherlessfrequentorlessviolentwiththe
growthofcapitalandextensionofindustry。Rathertheymaybe
saidtohavebecomemoreso:inconsequence，asisoftensaid，of
increasedcompetition;but，asIprefertosay，ofalowrateof
profitsandinterest，whichmakescapitalistsdissatisfiedwith
theordinarycourseofsafemercantilegains。Theconnexionof
thislowrateofprofitwiththeadvanceofpopulationand
accumulation，isoneofthepointstobeillustratedinthe
ensuingchapters。
NOTES:
1。Astillbettercriterion，perhaps，thanthatsuggestedinthe
text，wouldbetheincreaseordiminutionoftheamountofthe
labourer’swagesestimatedinagriculturalproduce。
ThePrinciplesofPoliticalEconomy
byJohnStuartMill
Book4
Chapter3
InfluenceoftheProgressofIndustryandPopulationonRents，
Profits，andWages
1。Continuingtheinquiryintothenatureoftheeconomical
changestakingplaceinasocietywhichisinastateof
industrialprogress，weshallnextconsiderwhatistheeffectof
thatprogressonthedistributionoftheproduceamongthe
variousclasseswhoshareinit。Wemayconfineourattentionto
thesystemofdistributionwhichisthemostcomplex，andwhich
virtuallyincludesallothers—thatinwhichtheproduceof
manufacturesissharedbetweentwoclasses，labourersand
capitalists，andtheproduceofagricultureamongthree，
labourers，capitalists，andlandlords。
Thecharacteristicfeaturesofwhatiscommonlymeantby
industrialprogress，resolvethemselvesmainlyintothree，
increaseofcapital，increaseofpopulation，andimprovementsin
production;understandingthelastexpressioninitswidest
sense，toincludetheprocessofprocuringcommoditiesfroma
distance，aswellasthatofproducingthem。Theotherchanges
whichtakeplacearechieflyconsequencesofthese;as，for
example，thetendencytoaprogressiveincreaseofthecostof
productionoffood;arisingfromanincreaseddemand，whichmay
beoccasionedeitherbyincreasedpopulation，orbyanincrease
ofcapitalandwages，enablingthepoorerclassestoincrease
theirconsumption。Itwillbeconvenienttosetoutby
consideringeachofthethreecauses，asoperatingseparately;
afterwhichwecansupposethemcombinedinanymannerwethink
fit。
Letusfirstsupposethatpopulationincreases，capitaland
theartsofproductionremainingstationary。Oneoftheeffects
ofthischangeofcircumstancesissufficientlyobvious:wages
willfall;thelabouringclasswillbereducedtoaninferior
condition。Thestateofthecapitalist，onthecontrary，willbe
improved。Withthesamecapital，hecanpurchasemorelabour，and
obtainmoreproduce。Hisrateofprofitisincreased。The
dependenceoftherateofprofitsonthecostoflabourishere
verified;forthelabourerobtainingadiminishedquantityof
commodities，andnoalterationbeingsupposedinthe
circumstancesoftheirproduction，thediminishedquantity
representsadiminishedcost。Thelabourerobtainsnotonlya
smallerrealreward，buttheproductofasmallerquantityof
labour。Thefirstcircumstanceistheimportantonetohimself，
thelasttohisemployer。
Nothinghasoccurred，thusfar，toaffectinanywaythe
valueofanycommodity;andnoreason，therefore，hasyetshown
itself，whyrentshouldbeeitherraisedorlowered。Butifwe
lookforwardanotherstageintheseriesofeffects，wemaysee
ourwaytosuchaconsequence。Thelabourershaveincreasedin
numbers:theirconditionisreducedinthesameproportion;the
increasednumbersdivideamongthemonlytheproduceofthesame
amountoflabourasbefore。Buttheymayeconomizeintheirother
comforts，andnotintheirfood:eachmayconsumeasmuchfood，
andofascostlyaqualityaspreviously;ortheymaysubmittoa
reduction，butnotinproportiontotheincreaseofnumbers。On
thissupposition，notwithstandingthediminutionofrealwages，
theincreasedpopulationwillrequireanincreasedquantityof
food。Butsinceindustrialskillandknowledgearesupposedtobe
stationary，morefoodcanonlybeobtainedbyresortingtoworse
land，ortomethodsofcultivationwhicharelessproductivein
proportiontotheoutlay。Capitalforthisextensionof
agriculturewillnotbewanting;forthough，byhypothesis，no
additiontakesplacetothecapitalinexistence，asufficient
amountcanbesparedfromtheindustrywhichpreviouslysupplied
theotherandlesspressingwantswhichthelabourershavebeen
obligedtocurtail。Theadditionalsupplyoffood，therefore，
willbeproduced，butproducedatagreatercost;andthe
exchangevalueofagriculturalproducemustrise。Itmaybe
objected，thatprofitshavingrisen，theextracostofproducing
foodcanbedefrayedfromprofits，withoutanyincreaseofprice。
Itcould，undoubtedly，butitwillnot;becauseifitdid，the
agriculturistwouldbeplacedinaninferiorpositiontoother
capitalists。Theincreaseofprofits，beingtheeffectof
diminishedwages，iscommontoallemployersoflabour。The
increasedexpensesarisingfromthenecessityofamorecostly
cultivation，affecttheagriculturistalone。Forthispeculiar
burthenhemustbepeculiarlycompensated，whetherthegeneral
rateofprofitbehighorlow。Hewillnotsubmitindefinitelyto
adeductionfromhisprofits，towhichothercapitalistsarenot
subject。Hewillnotextendhiscultivationbylayingoutfresh
capital，unlessforareturnsufficienttoyieldhimashigha
profitascouldbeobtainedbythesamecapitalinother
investments。Thevalue，therefore，ofhiscommoditywillrise，
andriseinpro。portiontotheincreasedcost。Thefarmerwill
thusbeindemnifiedfortheburthenwhichispeculiartohimself，
andwillalsoenjoytheaugmentedrateofprofitwhichiscommon
toallcapitalists。
Itfollows，fromprincipleswithwhichwearealready
familiar，thatinthesecircumstancesrentwillrise。Anyland
canaffordtopay，andunderfreecompetitionwillpay，arent
equaltotheexcessofitsproduceabovethereturntoanequal
capitalontheworstland，orundertheleastfavourable
conditions。Whenever，therefore，agricultureisdriventodescend
toworseland，ormoreonerousprocesses，rentrises。Itsrise
willbetwofold，for，inthefirstplace，rentinkind，orcorn
rent，willrise;andinthesecond，sincethevalueof
agriculturalproducehasalsorisen，rent，estimatedin
manufacturedorforeigncommodities（whichisrepresented，
caeterisparibus，bymoneyrent）willrisestillmore。
Thestepsoftheprocess（if，afterwhathasbeenformerly
said，itisnecessarytoretracethem）areasfollows。Cornrises
inprice，torepaywiththeordinaryprofitthecapitalrequired
forproducingadditionalcornonworselandorbymorecostly
processes。Sofarasregardsthisadditionalcorn，theincreased
priceisbutanequivalentfortheadditionalexpense;butthe
rise，extendingtoallcorn，affordsonall，exceptthelast
produced，anextraprofit。Ifthefarmerwasaccustomedto
produce100quartersofwheatat40s。，and120quartersarenow
required，ofwhichthelasttwentycannotbeproducedunder45s。，
heobtainstheextrafiveshillingsontheentire120quarters，
andnotonthelasttwentyalone。Hehasthusanextra25l。
beyondtheordinaryprofits，andthis，inastateoffree
competition，hewillnotbeabletoretain。Hecannothoweverbe
compelledtogiveituptotheconsumer，sincealesspricethan
45s。wouldbeinconsistentwiththeproductionofthelasttwenty
quarters。Theprice，then，willremainat45s。，andthe25l。will
betransferredbycompetitionnottotheconsumerbuttothe
landlord。Ariseofrentsisthereforeinevitablyconsequenton
anincreaseddemandforagriculturalproduce，whenunaccompanied
byincreasedfacilitiesforitsproduction。Atruthwhich，after
thisfinalillustration，wemayhenceforthtakeforgranted。
Thenewelementnowintroduced—anincreaseddemandforfood
—besidesoccasioninganincreaseofrent，stillfurtherdisturbs
thedistributionoftheproducebetweencapitalistsand
labourers。Theincreaseofpopulationwillhavediminishedthe
rewardoflabour:andifitscostisdiminishedasgreatlyasits
realremuneration，profitswillbeincreasedbythefullamount。
If，however，theincreaseofpopulationleadstoanincreased
productionoffood，whichcannotbesuppliedbutatanenhanced
costofproduction，thecostoflabourwillnotbesomuch
diminishedastherealrewardofit，andprofits，therefore，will
notbesomuchraised。Itisevenpossiblethattheymightnotbe
raisedatall。Thelabourersmaypreviouslyhavebeensowell
providedfor，thatthewholeofwhattheynowlosemaybestruck
offfromtheirotherindulgences，andtheymaynot，eitherby
necessityorchoice，undergoanyreductioninthequantityor
qualityoftheirfood。Toproducethefoodfortheincreased
numbermaybeattendedwithsuchanincreaseofexpense，that
wages，thoughreducedinquantity，mayrepresentasgreatacost，
maybetheproductofasmuchlabour，asbefore，andthe
capitalistmaynotbeatallbenefited。Onthissuppositionthe
losstothelabourerispartlyabsorbedintheadditionallabour
requiredforproducingthelastinstalmentofagricultural
produce;andtheremainderisgainedbythelandlord，theonly
sharerwhoalwaysbenefitsbyanincreaseofpopulation。
2。Letusnowreverseourhypothesis，andinsteadof
supposingcapitalstationaryandpopulationadvancing，letus
supposecapitaladvancingandpopulationstationary;the
facilitiesofproduction，bothnaturalandacquired，being，as
before，unaltered。Therealwagesoflabour，insteadoffalling，
willnowrise;andsincethecostofproductionofthethings
consumedbythelabourerisnotdiminished，thisriseofwages
impliesanequivalentincreaseofthecostoflabour，and
diminutionofprofits。Tostatethesamedeductioninother
terms;thelabourersnotbeingmorenumerous，andtheproductive
poweroftheirlabourbeingonlythesameasbefore，thereisno
increaseoftheproduce;theincreaseofwages，therefore，must
beatthechargeofthecapitalist。Itisnotimpossiblethatthe
costoflabourmightbeincreasedinevenagreaterratiothan
itsrealremuneration。Theimprovedconditionofthelabourers
mayincreasethedemandforfood。Thelabourersmayhavebeenso
illoffbefore，asnottohavefoodenough;andmaynowconsume
more:ortheymaychoosetoexpendtheirincreasedmeanspartly
orwhollyinamorecostlyqualityoffood，requiringmorelabour
andmoreland;wheat，forexample，insteadofoats，orpotatoes。
Thisextensionofagricultureimplies，asusual，agreatercost
ofproductionandahigherprice，sothatbesidestheincreaseof
thecostoflabourarisingfromtheincreaseofitsreward，there
willbeafurtherincrease（andanadditionalfallofprofits）
fromtheincreasedcostlinessofthecommoditiesofwhichthat
rewardconsists。Thesamecauseswillproduceariseofrent。
Whatthecapitalistslose，abovewhatthelabourersgain，is
partlytransferredtothelandlord，andpartlyswallowedupin
thecostofgrowingfoodonworselandorbyalessproductive
process。
3。Havingdisposedofthetwosimplecases，anincreasing
populationandstationarycapital，andanincreasingcapitaland
stationarypopulation，wearepreparedtotakeintoconsideration
themixedcase，inwhichthetwoelementsofexpansionare
combined，bothpopulationandcapitalincreasing。Ifeither
elementincreasesfasterthantheother，thecaseissofar
assimilatedwithoneorotherofthetwopreceding:weshall
supposethem，therefore，toincreasewithequalrapidity;the
testofequalitybeing，thateachlabourerobtainsthesame
commoditiesasbefore，andthesamequantityofthose
commodities。Letusexaminewhatwillbetheeffect，onrentand
profits，ofthisdoubleprogress。
Populationhavingincreased，withoutanyfallingoffinthe
labourer’scondition，thereisofcourseademandformorefood。
Theartsofproductionbeingsupposedstationary，thisfoodmust
beproducedatanincreasedcost。Tocompensateforthisgreater
costoftheadditionalfood，thepriceofagriculturalproduce
mustrise。Theriseextendingoverthewholeamountoffood
produced，thoughtheincreasedexpensesonlyapplytoapart，
thereisagreatlyincreasedextraprofit，which，bycompetition，
istransferredtothelandlord。Rentwillrisebothinquantity
ofproduceandincost;whilewages，beingsupposedtobethe
sameinquantity，willbegreaterincost。Thelabourerobtaining
thesameamountofnecessaries，moneywageshaverisen;andas
theriseiscommontoallbranchesofproduction，thecapitalist
cannotindemnifyhimselfbychanginghisemployment，andtheloss
mustbebornebyprofits。
Itappears，then，thatthetendencyofanincreaseofcapital
andpopulationistoaddtorentattheexpenseofprofits:
thoughrentdoesnotgainallthatprofitslose，apartbeing
absorbedinincreasedexpensesofproduction，thatis，inhiring
orfeedingagreaternumberoflabourerstoobtainagivenamount
ofagriculturalproduce。Byprofits，mustofcoursebeunderstood
therateofprofit;foralowerrateofprofitonalarger
capitalmayyieldalargergrossprofit，consideredabsolutely，
thoughasmallerinproportiontotheentireproduce。
Thistendencyofprofitstofall，isfromtimetotime
counter。actedbyimprovementsinproduction:whetherarising
fromincreaseofknowledge，orfromanincreaseduseofthe
knowledgealreadypossessed。Thisisthethirdofthethree
elements，theeffectsofwhichonthedistributionoftheproduce
weunder。tooktoinvestigate;andtheinvestigationwillbe
facilitatedbysupposing，asinthecaseoftheothertwo
elements，thatitoperates，inthefirstinstance，alone。
4。Letusthensupposecapitalandpopulationstationary，and
asuddenimprovementmadeintheartsofproduction;bythe
inventionofmoreefficientmachines，orlesscostlyprocesses，
orbyobtainingaccesstocheapercommoditiesthroughforeign
trade。
Theimprovementmayeitherbeinsomeofthenecessariesor
indulgenceswhichenterintothehabitualconsumptionofthe
labouringclass;oritmaybeapplicableonlytoluxuries
consumedexclusivelybyricherpeople。Veryfew，however，ofthe
greatindustrialimprovementsarealtogetherofthislast
description。Agriculturalimprovements，exceptsuchasspecially
relatetosomeoftherarerandmorepeculiarproducts，act
directlyupontheprincipalobjectsofthelabourer’s
expenditure。Thesteam。engineandeveryotherinventionwhich
affordsamanageablepower，areapplicabletoallthings，andof
coursetothoseconsumedbythelabourer。Eventhepower—loomand
thespinningjenny，thoughappliedtothemostdelicatefabrics，
areavailablenolessforthecoarsecottonsandwoollenswornby
thelabouringclass。Allimprovementsinlocomotioncheapenthe
transportofnecessariesaswellasofluxuries。Seldomisanew
branchoftradeopened，without，eitherdirectlyorinsome
indirectway，causingsomeofthearticleswhichthemassofthe
peopleconsumetobeeitherproducedorimportedatsmallercost。
Itmaysafelybeaffirmed，therefore，thatimprovementsin
productiongenerallytendtocheapenthecommoditiesonwhichthe
wagesofthelabouringclassareexpended。
Insofarasthecommoditiesaffectedbyanimprovementare
thosewhichthelabourersgenerallydonotconsume，the
improvementhasnoeffectinalteringthedistributionofthe
produce。Thoseparticularcommodities，indeed，arecheapened;
beingproducedatlesscost，theyfallinvalueandinprice，and
allwhoconsumethem，whetherlandlords，capitalists，orskilled
andprivilegedlabourers，obtainincreasedmeansofenjoyment。
Therateofprofits，however，isnotraised。Thereisalarger
grossprofit，reckonedinquantityofcommodities。Butthe
capitalalso，ifestimatedinthosecommodities，hasrisenin
value。Theprofitisthesamepercentageonthecapitalthatit
wasbefore。Thecapitalistsarenotbenefitedascapitalists，but
asconsumers。Thelandlordsandtheprivilegedclassesof
labourers，iftheyareconsumersofthesamecommodities，share
thesamebenefit。
Thecaseisdifferentwithimprovementswhichdiminishthe
costofproductionofthenecessariesoflife，orofcommodities
whichenterhabituallyintotheconsumptionofthegreatmassof
labourers。Theplayofthedifferentforcesbeinghererather
complex，itisnecessarytoanalyseitwithsomeminuteness。
Asformerlyobserved，therearetwokindsofagricultural
improvements。Someconsistinameresavingoflabour，andenable
agivenquantityoffoodtobeproducedatlesscost，butnoton
asmallersurfaceoflandthanbefore。Othersenableagiven
extentoflandtoyieldnotonlythesameproducewithless
labour，butagreaterproduce;sothatifnogreaterproduceis
required，apartofthelandalreadyunderculturemaybe
dispensedwith。Asthepartrejectedwillbetheleastproductive
portion，themarketwillthenceforthberegulatedbyabetter
descriptionoflandthanwhatwaspreviouslytheworstunder
cultivation。
Toplacetheeffectoftheimprovementinaclearlight，we
mustsupposeittotakeplacesuddenly，soastoleavenotime
duringitsintroduction，foranyincreaseofcapitalorof
population。Itsfirsteffectwillbeafallofthevalueand
priceofagriculturalproduce。Thisisanecessaryconsequenceof
eitherkindofimprovement，butespeciallyofthelast。
Animprovementofthefirstkind，notincreasingtheproduce，
doesnotdispensewithanyportionoftheland;themarginof
cultivation（asDrChalmerstermsit）remainswhereitwas;
agriculturedoesnotrecede，eitherinextentofcultivatedland，
orinelaboratenessofmethod:andthepricecontinuestobe
regardedbythesameland，andbythesamecapital，asbefore。
Butsincethatlandorcapital，andallotherlandorcapital
whichproducesfood，nowyieldsitsproduceatsmallercost，the
priceoffoodwillfallproportionally。Ifone—tenthofthe
expenseofproductionhasbeensaved，thepriceofproducewill
fallone—tenth。
Butsupposetheimprovementtobeofthesecondkind;
enablingthelandtoproduce，notonlythesamecornwith
one—tenthlesslabour，butatenthmorecornwiththesame
labour。Heretheeffectisstillmoredecided。Cultivationcan
nowbecontracted，andthemarketsuppliedfromasmaller
quantityofland。Evenifthissmallersurfaceoflandwereof
thesameaveragequalityasthelargersurface，thepricewould
fallone—tenth，becausethesameproducewouldbeobtainedwitha
tenthlesslabour。Butsincetheportionoflandabandonedwill
betheleastfertileportion，thepriceofproducewill
thenceforthberegulatedbyabetterqualityoflandthanbefore。
Inaddition，therefore，totheoriginaldiminutionofone—tenth
inthecostofproduction，therewillbeafurtherdiminution，
correspondingwiththerecessionofthe’margin’ofagriculture
tolandofgreaterfertility。Therewillthusbeatwofoldfall
ofprice。
Letusnowexaminetheeffectoftheimprovements，thus
suddenlymade，onthedivisionoftheproduce;andinthefirst
place，onrent。Bytheformerofthetwokindsofimprovement，
rentwouldbediminished。Bythesecond，itwouldbediminished
stillmore。
Supposethatthedemandforfoodrequiresthecultivationof
threequalitiesofland，yielding，onanequalsurface，andatan
equalexpense，100，80，and60bushelsofwheat。Thepriceof
wheatwill，ontheaverage，bejustsufficienttoenablethe
thirdqualitytobecultivatedwiththeordinaryprofit。The
firstqualitythereforewillyieldfortyandthesecondtwenty
bushelsofextraprofit，constitutingtherentofthelandlord。
Andfirst，letanimprovementbemade，which，withoutenabling
morecorntobegrown，enablesthesamecorntobegrownwith
one—fourthlesslabour。Thepriceofwheatwillfallone。fourth，
and8obushelswillbesoldforthepriceforwhich6oweresold
before。Buttheproduceofthelandwhichproduces6obushelsis
stillrequired，andtheexpensesbeingasmuchreducedasthe
price，thatlandcanstillbecultivatedwiththeordinary
profit。Thefirstandsecondqualitieswillthereforecontinueto
yieldasurplusof40and20bushels，andcornrentwillremain
thesameasbefore。Butcornhavingfalleninpriceone。fourth，
thesamecornrentisequivalenttoafourthlessofmoneyandof
allothercommodities。Sofar，therefore，asthelandlordexpends
hisincomeinmanufacturedorforeignproducts，heisone。fourth
worseoffthanbefore。Hisincomeaslandlordisreducedto
three。quartersofitsamount:itisonlyasaconsumerofcorn
thatheisaswelloff。
Iftheimprovementisoftheotherkind，rentwillfallina
stillgreaterratio。Supposethattheamountofproducewhichthe
marketrequires，canbegrownnotonlywithafourthlesslabour，
butonafourthlessland。Ifallthelandalreadyincultivation
continuedtobecultivated，itwouldyieldaproducemuchlarger
thannecessary。Land，equivalenttoafourthoftheproduce，must
nowbeabandoned;andasthethirdqualityyieldedexactly
one。fourth，（being60outof240，）thatqualitywillgooutof
cultivation。The240bushelscannowbegrownonlandofthe
firstandsecondqualitiesonly;being，onthefirst，100bushels
plusone—third，or1331/3bushels;onthesecond，80bushels
plusone—third，or1062/3bushels;together240。Thesecond
qualityofland，insteadofthethird，isnowthelowest，and
regulatestheprice。Insteadof6o，itissufficientif1062/3
bushelsrepaythecapitalwiththeordinaryprofit。Thepriceof
wheatwillconsequentlyfall，notintheratioof6oto8o，asin
theothercase，butintheratioof60to1062/3。Eventhis
givesaninsufficientideaofthedegreeinwhichrentwillbe
affected。Thewholeproduceofthesecondqualityoflandwill
nowberequiredtorepaytheexpensesofproduction。Thatland，
beingtheworstincultivation，willpaynorent。Andthefirst
qualitywillonlyyieldthedifferencebetween1331/3bushels
and1062/3，being262/3bushelsinsteadof40。Thelandlords
collectivelywillhavelost331/3outof60bushelsincornrent
alone，whilethevalueandpriceofwhatisleftwillhavebeen
diminishedintheratioof6oto1062/3。
Itthusappears，thattheinterestofthelandlordis
decidedlyhostiletothesuddenandgeneralintroductionof
agriculturalimprovements。Thisassertionhasbeencalleda
paradox，andmadeagroundforaccusingitsfirstpromulgator，
Ricardo，ofgreatintellectualperverseness，tosaynothing
worse。Icannotdiscerninwhattheparadoxconsists;andthe
obliquityofvisionseemstometobeonthesideofhis
assailants。Theopinionisonlymadetoappearabsurdbystating
itunfairly。Iftheassertionwerethatalandlordisinjuredby
theimprovementofhisestate，itwouldcertainlybe
indefensible;butwhatisassertedis，thatheisinjuredbythe
improvementoftheestatesofotherpeople，althoughhisownis
included。Nobodydoubtsthathewouldgaingreatlybythe
improvementifhecouldkeepittohimself，andunitethetwo
benefits，anincreasedproducefromhisland，andapriceashigh
asbefore。Butiftheincreaseofproducetookplace
simultaneouslyonalllands，thepricewouldnotbeashighas
before;andthereisnothingunreasonableinsupposingthatthe
landlordswouldbe，notbenefited，butinjured。Itisadmitted
thatwhateverpermanentlyreducesthepriceofproducediminishes
rent:anditisquiteinaccordancewithcommonnotionsto
supposethatif，bytheincreasedproductivenessofland，less
landwererequiredforcultivation，itsvalue，likethatofother
articlesforwhichthedemandhaddiminished，wouldfall。
Iamquitewillingtoadmitthatrentshavenotreallybeen
loweredbytheprogressofagriculturalimprovement;butwhy？
Becauseimprovementhasneverinrealitybeensudden，butalways
slow;atnotimemuchoutstripping，andoftenfallingfarshort
of，thegrowthofcapitalandpopulation，whichtendsasmuchto
raiserent，astheothertolowerit，andwhichisenabledaswe
shallpresentlysee，toraiseitmuchhigher，bymeansofthe
additionalmarginaffordedbyimprovementsinagriculture。First，
however，wemustexamineinwhatmannerthesuddencheapeningof
agriculturalproducewouldaffectprofitsandwages。
Inthebeginning，moneywageswouldprobablyremainthesame
asbefore，andthelabourerswouldhavethefullbenefitofthe
cheapness。Theywouldbeenabledtoincreasetheirconsumption
eitheroffoodorofotherarticles，andwouldreceivethesame
cost，andagreaterquantity。Sofar，profitswouldbe
unaffected。Butthepermanentremunerationofthelabourers
essentiallydependsonwhatwehavecalledtheirhabitual
standard;theextentoftherequirementswhich，asaclass，they
insistonsatisfyingbeforetheychoosetohavechildren。If
theirtastesandrequirementsreceiveadurableimpressfromthe
suddenimprovementintheircondition，thebenefittotheclass
willbepermanent。Butthesamecausewhichenablesthemto
purchasegreatercomfortsandindulgenceswiththesamewages，
wouldenablethemtopurchasethesameamountofcomfortsand
indulgenceswithlowerwages;andagreaterpopulationmaynow
exist，withoutreducingthelabourersbelowtheconditionto
whichtheyareaccustomed。Hithertothisandnootherhasbeen
theusewhichthelabourershavecommonlymadeofanyincreaseof
theirmeansofliving;theyhavetreateditsimplyasconvertible
intofoodforagreaternumberofchildren。Itisprobable，
therefore，thatpopulationwouldbestimulated，andthatafter
thelapseofagenerationtherealwagesoflabourwouldbeno
higherthanbeforetheimprovement:thereductionbeingpartly
broughtaboutbyafallofmoneywages，andpartlythroughthe
priceoffood，thecostofwhich，fromthedemandoccasionedby
theincreaseofpopulation，wouldbeincreased。Totheextentto
whichmoneywagesfell，profitswouldrise:thecapitalist
obtainingagreaterquantityofequallyefficientlabourbythe
sameoutlayofcapital。Wethusseethatadiminutionofthecost
ofliving，whetherarisingfromagriculturalimprovementsorfrom
theimportationofforeignproduce，ifthehabitsand
requirementsofthelabourersarenotraised，usuallylowers
moneywagesandrent，andraisesthegeneralrateofprofit。
Whatistrueofimprovementswhichcheapentheproductionof
food，istruealsoofthesubstitutionofacheaperforamore
costlyvarietyofit。Thesamelandyieldstothesamelaboura
muchgreaterquantityofhumannutrimentintheformofmaizeor
potatoes，thanintheformofwheat。Ifthelabourerswereto
giveupbread，andfeedonlyonthosecheaperproducts，takingas
theircompensationnotagreaterquantityofotherconsumable
commodities，butearliermarriagesandlargerfamilies，thecost
oflabourwouldbemuchdiminished，andiflabourcontinued
equallyefficient，profitswouldrise;whilerentwouldbemuch
lowered，sincefoodforthewholepopulationcouldberaisedon
halforathirdpartofthelandnowsownwithcorn。Atthesame
time，itbeingevidentthatlandtoobarrentobecultivatedfor
wheatmightbemadeincaseofnecessitytoyieldpotatoes
sufficienttosupportthelittlelabournecessaryforproducing
them，cultivationmightultimatelydescendlower，andrent
eventuallyrisehigher，onapotatoormaizesystem，thanona
cornsystem;becausethelandwouldbecapableoffeedingamuch
largerpopulationbeforereachingthelimitofitspowers。
Iftheimprovement，whichwesupposetotakeplace，isnotin
theproductionoffood，butofsomemanufacturedarticleconsumed
bythelabouringclass，theeffectonwagesandprofitswillat
firstbethesame;buttheeffectonrentverydifferent。Itwill
notbelowered;itwilleven，iftheultimateeffectofthe
improvementisanincreaseofpopulation，beraised:inwhich
lastcaseprofitswillbelowered。Thereasonsaretooevidentto
requirestatement。