Principles of Political Economy and Taxation. 185 



Also w (1 + 7 ') -(*» + !) (7-7) =0; 7 '-£±2iz!f 



OT + 1 + M 



If / = To' M = 9' a tex of jo raises wa & es 5- 

 Also for the effect on the rate of profit, we have 



,._./- "(1+7) 

 w + 1 + ?< 



profits are less affected, as (*) the proportion of fixed capital, is 

 greater. 



FOREIGN TRADE. 



14. We now come to a part of the subject altogether distinct 

 from that which we have been considering ; a part both of great 

 interest and great difficulty : I refer to the doctrines concerning 

 foreign trade ; and, as connected with these, the laws of the in- 

 flux and efflux of the precious metals, and the influence upon 

 prices exercised by their abundance or scarcity. This is a por- 

 tion of Political Economy on which the postulates which have 

 hitherto been the basis of our reasoning have no bearing. The 

 proportionality of the exchangeable value to the cost or labour 

 of production no longer obtains, when the labour of different 

 countries is concerned. "The produce of the labour of 100 

 Englishmen may" as Mr. Ricardo says, " be given for the labour 

 of 80 Portuguese, 60 Russians, or 120 East Indians." Nor can 

 we assume the equality of profits in different countries. The 

 difficulty with which labour and capital travel from one country 

 to another, is a sufficient obstacle in the way of the establish- 

 ment of such a uniformity of the value of labour, and of the rate 

 of profits. 



Vol. IV. Part I A A 



