CannvTHERS.—Ün Mill's Fourth Fundamental Theorem respecting Capital, 31 
The wealth which has been produced to replace that consumed by 
allthe workmen concerned is also much the same as if no change had 
taken place in our philanthropist's expenditure. Had no such change 
taken place there would have been employed a certain number of velvet 
makers whose produce would have been quite useless to the working classes. 
There would also have been employed. an equal number of manufac- 
turers’ men, whose produce might or might not have been useful, according 
to their employment. 
The change having taken place, there are employed the same number 
of gardeners, whose produce is nil, also the same number of velvet-makers 
who, having been thrown out of employment, have taken to some other 
trade, where their produce, like that of the manufacturer, may or may not 
be useful to workmen. 
The nett results of these endeavours to do good are—when charity is 
tried, a reduction in the poor rates; when keeping retainers is tried, a 
slight derangement of trade. 
As to the theorem itself, the illustration of whioh we have now discussed, 
it is partly a truism, partly an error. 
It will perhaps be best to examine separately the two sentences of which 
it is composed.* ** What supports and employs productive labour is the capital 
expended in setting it to work, and not the demand of purchasers for the produce 
of the labour, when completed." In other words, the labourer is supported 
by the food and other things he gets while at work, and this food is part of 
the food at the time in the world. This, of course, is a truism. The 
velvet-weaver is supported by the food he gets, and if he got no food he 
would make no velvet, however strong the demand for velvet might be. 
* Demand for commodities is not demand for labour. The demand for 
commodities determines in what particular branch of production the labour and 
capital shall be employed ; it determines the direction of the labour ; but not the 
more or less of the labour itself, or of the maintenance or payment of the labour. 
These depend on the amount of the capital, or other funds directly devoted to the 
sustenance and remuneration of labour." This sentence is very confused. 
The capitalist’s own demand for commodities is the only cause of the 
employment of labour. The demand of others may decide the direction of 
that labour. A farmer, for instance, of a backwoods farm in Canada, with 
his stock of potatoes and pork, is a capitalist. He knows that his stock 
will soon be exhausted, and therefore labours to replace it. He consumes 
his present stock, not for the purpose of renewing it, but to keep himself 
alive. His own demand for commodities is the sole cause of his labour, 
and it gives also the direction of his labour. He meets the demand by 
growing more potatoes and pork. If he has neighbours who can produce 
*Part 9, Chap. V., Book L, p. 49, People’s Ed., 1869. 
