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  Transactions. 
  — 
  Miscellaneous, 
  

  

  past 
  services 
  done 
  to 
  the 
  community. 
  The 
  money 
  owner 
  has 
  a 
  very 
  

   pecuhar 
  duty, 
  as 
  he 
  has 
  only 
  to 
  see 
  that 
  he 
  keeps 
  no 
  more 
  of 
  it 
  on 
  hand 
  

   than 
  is 
  required. 
  If 
  a 
  hanker 
  keeps 
  a 
  larger 
  reserve 
  than 
  he 
  needs, 
  he 
  will 
  

   not 
  get 
  the 
  average 
  banker's 
  interest. 
  He 
  gets 
  no 
  interest, 
  directly, 
  on 
  his 
  

   gold 
  reserve, 
  but 
  the 
  profit 
  on 
  his 
  other 
  transactions 
  is 
  larger 
  on 
  account 
  

   of 
  it. 
  If 
  it 
  is 
  unnecessarily 
  large, 
  he, 
  of 
  course, 
  loses 
  the 
  interest 
  on 
  all 
  the 
  

   money 
  he 
  needlessly 
  keeps. 
  This 
  is 
  also 
  true 
  of 
  the 
  merchant 
  and 
  manu- 
  

   facturer. 
  The 
  consumer 
  who 
  keeps 
  money 
  in 
  hand 
  to 
  meet 
  current 
  

   expenditure 
  gets 
  no 
  interest 
  for 
  it. 
  

  

  A 
  capitalist 
  who 
  uses 
  his 
  capital 
  unskilfully 
  benefits 
  all 
  other 
  capitaUsts 
  

   and 
  injures 
  the 
  community 
  at 
  large, 
  except 
  in 
  the 
  case 
  of 
  a 
  money 
  owner, 
  

   who 
  injures 
  no 
  one, 
  except 
  himself, 
  by 
  mismanagement. 
  If 
  he 
  keeps 
  more 
  

   on 
  hand 
  than 
  the 
  nature 
  of 
  his 
  business 
  requu-es, 
  the 
  stock 
  in 
  the 
  hands 
  of 
  

   others 
  becomes 
  more 
  valuable, 
  by 
  the 
  exact 
  amount 
  of 
  his 
  excess, 
  and 
  the 
  

   smaller 
  amount 
  in 
  circulation 
  is 
  quite 
  as 
  efiicient 
  as 
  the 
  larger 
  would 
  be. 
  

  

  Cost 
  of 
  Production. 
  

  

  The 
  cost 
  of 
  production 
  of 
  any 
  commodity 
  is 
  simply 
  the 
  labour 
  required 
  

   to 
  produce 
  it 
  ; 
  it 
  does 
  not 
  matter 
  whether 
  the 
  labourer 
  be 
  a 
  Millais 
  or 
  a 
  

   coal-heaver. 
  Wealth 
  being 
  required, 
  there 
  is 
  only 
  one 
  way 
  of 
  getting 
  it, 
  

   and 
  that 
  is 
  by 
  labour, 
  and 
  the 
  labour 
  of 
  all 
  is 
  equally 
  necessary 
  to 
  the 
  

   production 
  of 
  the 
  common 
  stock. 
  The 
  problem 
  to 
  assess 
  the 
  utility 
  

   of 
  each 
  man's 
  production 
  would 
  be 
  quite 
  insoluble. 
  There 
  would 
  even 
  be 
  

   a 
  difficulty 
  in 
  deciduig 
  whether 
  a 
  day's 
  labour 
  of 
  Turner 
  or 
  West, 
  or 
  

   of 
  Browning 
  or 
  Tupper, 
  were 
  worth 
  most. 
  It 
  would 
  be 
  easier 
  to 
  assess 
  the 
  

   relative 
  value 
  of 
  two 
  navvies' 
  work, 
  one 
  of 
  whom 
  could 
  dig 
  ten 
  and 
  the 
  

   other 
  only 
  five 
  yards 
  of 
  earth 
  in 
  a 
  day. 
  Even 
  in 
  this 
  latter 
  case 
  the 
  labour 
  

   of 
  both 
  men 
  would 
  be 
  equally 
  requisite 
  to 
  the 
  jproductiou 
  of 
  the 
  total 
  stock, 
  

   if 
  it 
  were 
  necessary 
  to 
  dig 
  fifteen 
  yards 
  a 
  day, 
  A 
  capitalist 
  must 
  take 
  into 
  

   account 
  not 
  only 
  the 
  labour 
  which 
  was 
  required 
  to 
  produce 
  his 
  wares, 
  but 
  

   also 
  the 
  rate 
  of 
  wages 
  he 
  was 
  obhged 
  to 
  pay 
  his 
  workmen, 
  and 
  the 
  interest 
  

   he 
  would 
  be 
  obliged 
  to 
  pay 
  to 
  other 
  capitalists 
  ; 
  from 
  his 
  point 
  of 
  view, 
  

   therefore, 
  both 
  interest 
  and 
  wages 
  form 
  part 
  of 
  the 
  cost 
  of 
  production. 
  

  

  It 
  would 
  be 
  well 
  to 
  keep 
  distinct 
  what 
  is 
  essential 
  under 
  all 
  cir- 
  

   cumstances 
  from 
  what 
  is 
  due 
  to 
  the 
  accidental 
  conditions 
  under 
  which 
  

   society 
  may 
  happen 
  to 
  regulate 
  its 
  labour 
  ; 
  and 
  as 
  a 
  medium 
  of 
  exchange, 
  

   like 
  money, 
  is 
  necessary 
  in 
  a 
  community 
  divided 
  into 
  capitalists 
  and 
  

   labourers, 
  I 
  think 
  the 
  capitalists' 
  costs 
  of 
  production 
  should 
  be 
  called 
  the 
  

   ^^ 
  price 
  of 
  production." 
  

  

  The 
  exchange 
  value 
  of 
  wealth 
  tends 
  to 
  be 
  in 
  proportion 
  to 
  its 
  price 
  of 
  

   production 
  and 
  not 
  to 
  its 
  cost. 
  

  

  