WEALTH OF NATIONS. 209 



thus better accommodated tlian a savage chief, who 

 wholly possesses 10,000 slaves, and has their lives and 

 liberties at his disposal. Among the beneficial effects, 

 however, of the division of labour, one is to save labour 

 by different contrivances, and especially by the inven- 

 tion of machinery. This in many instances, though by 

 no means in all, improves the quality of the article ; in 

 all cases, it increases its quantity. It therefore greatly 

 augments the power of labour. 



2. Labour is the measure of the exchangeable value 

 of all commodities, because the possession of all is 

 governed by labour ; and in the case of exchanging 

 one against another, the produce of the labour by which 

 both were obtained is mutually given and received. 

 But it is easier to compare two commodities with each 

 other than either of them with labour as their common 

 measure ; not to mention that it is not easy to compare 

 the different kinds of labour, as hard and easy working, 

 skilful and unskilful, with one another. Hence, prices 

 are generally estimated by the proportion which the 

 commodities bear to one another. Labour is thus es- 

 timated as well as other commodities, in commodities, 

 and its natural wages are the whole of its produce. 

 But as each labourer seeks for employment, and as each 

 employer is desirous of giving as little for labour as he 

 can, therefore the competition of workmen for work 

 enables the employer to obtain it at much less than the 

 whole produce. When there is a superabundance of 

 workmen and more hands than are wanted, the com- 

 petition of workmen lowers their wages. When there 

 is a scarcity of workmen and more work than hands to 

 do it, the competition of employers raises wages. But, 

 in all cases, except where a man labours for himself, 

 less than the produce of the labour is paid to reward 

 it, and the difference belongs to the employers. 



It is most material to observe, first, that there is a 

 tendency in the competition of workmen to lower their 

 wages ; secondly, that there is a point below which 



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