BY E. M. JOHNSTON, F.L.S. 211 



P rm = Maximum Nominal Price of Products, 

 pre = Minimum Nominal Price of Products. 

 Then E + N=P or Supply 

 C + W 



C + W 



--V™ or Price Maximum. 



= P™ or Price Minimum. 



Now it can be seen at once, if these premises be granted, 

 that as the application or efforts of labour receive the same 

 reward whether engaged upon the least (N), or most pro- 

 ductive land in cultivation (E), that any alteration in the rate 

 of wages, if general, would not affect the proportion falling to 

 E, no matter whether the nominal wages rose or fell ; for E 

 (rent,) is solely determined byN, and — excepting cases where 

 employment and area under cultivation are curtailed — is in no 

 way concerned with the rate of wages. The surplus, B (rent),ha,s 

 not come into existence as the sole work of labour; for inrelation 

 to the laws which determine price it is a measure of the gift of 

 nature monopolised in the hands of landowners as rent. It 

 is the fluctuations of demand (D) which directly affect the 

 value of products coming to E, and not the scale of wages, 

 whether high or low, so long as the scale is general. As about 

 52 per cent, of the breadwinners in various countries depend 

 upon agriculture and pastoral industries, it is also clear that 

 if the increase of their wages was only local, or partial, the 

 condition of the great mass of workers would not be 

 improved. 



Going back to our analysis it follows that 



E + N = P or produce of land, labour, and capital 

 or = Supply. 

 Seeing that supply and demand are among the principal 

 factors in determining price or nominal value in the market 

 and as these are ever varying factors, it follows that nominal 

 value or price ever fluctuates with the variations of (P) 

 supply and demand (D). Thus— 



B + N P -or -r, ■ 



— =: or — = P 1 or Price. 



But the actual cost of products being determined mainly 

 by the cost of labour and machinery cannot fall below the 

 actual aggregate cost of the standard of living for the 

 labourer and the actual cost of maintaining the capitalist's 

 machines and instruments. 



On the other hand, the nominal value for products divided 

 between E + G + W cannot be increased much above the 

 minimum producing cost without operating upon demand 



