POLITICAL ECONOMY. 



15 



The production of wealth involves three requisites : natural 

 agents, labour, and abstinence. Men are dependent for their power 

 of producing anything on their ability to avail themselves of the 

 powers of nature. Any natural object which is capable of afford- 

 ing a man a suitable basis for his efforts is termed a natural agent. 

 It may have exchange value or not; that is determined by its 

 being either limited in supply and monopolized, or readily acces- 

 sible. In order that a man may utilize the advantages presented 

 by the natural agent, he must exert his bodily and mental facul- 

 ties ; and then, that he may accomplish his work, he must abstain 

 from the consumption of the result of the labour expended until 

 the desired product is brought to completion. In order to be able 

 to wait until he has finished his product, a man evidently needs to 

 be furnished with some of the fruits of previous production to 

 supply his wants in life. Often also, to bring his work to com- 

 pletion, he will need the labour of other men, and the use of 

 various articles to aid the labour employed. To provide these he 

 will require the possession of articles of wealth which will enable 

 him to obtain them. These fruits of previous production, or articles 

 of wealth employed in the production of wealth, are called capital. 



There are two main laws relating to production. 1st. That 

 where there is an increase in the production of any article, such 

 increase, so far as it is dependent on natural agents limited in 

 supply, will be produced necessarily at a greater proportionate cost. 

 2nd. That so far as such increase is dependent on labour, it will 

 have a tendency to lessen the proportionate cost of such produce. 

 We may therefore state as rules — 1st. That additional labour when 

 employed in agriculture is less efficient in proportion than that 

 previously applied, and therefore, although an increased demand 

 may be met, it will be at an increased proportionate cost. 2nd. 

 That additional labour when employed in manufactures is more 

 efficient in proportion than that previously applied, and therefore 

 that an increased demand for manufactured articles tends to lower 

 the cost of their production. 



The other branch of the science investigates the distribution of 

 wealth, in other words, shows what portion of the produce is 

 naturally payable respectively for the three requisites for its pro- 

 duction ; that is, what is due to the owner of the natural agent, if 

 an article of wealth, for rent, what to the labourers for wages, and 

 what to the capitalist for profit. The portion payable as rent is the 



