1831 .] 
in Manufactures. 
m 
of the aggregate amount of profits realized in the whole society; that many 
producers, who had not been able, or willing, to increase their outlay, on the 
introduction of improved processes in production, must, after the rise had taken 
place in the rate of profits, have known nothing but increasing impoverishment with 
every subsequent fall in their rate ; and that the desire of each to render his new 
accumulations as productive of revenue as his former accumulations had become, 
by similar employment, would tempt men still to thrust capital into production, 
till profits sunk to a very low rate. But it will be remembered, that the sinking of 
more than a certain amount of capital in manufactures, tends to an immediate 
reduction of the selling price in all commodities in the market, to the preparation 
of which this excess of capital had been applied ; more than a certain quantity of 
wares not finding a vent, without the occurrence of such a reduction of price as 
prevails during the existence of a glut. It matters not then to general production, 
whether certain individuals have failed to take advantage of the opportunity, when 
it existed, of increasing their productive capital, and with it their gains ; and it 
affects it as little, if, owing to the perseverance and large disposable capital of 
some, who continue, in despite of glutted markets and loss, to sink their growing 
accumulations in production, it should so happen, that their less wealthy compe- 
titors were, eventually, forced to give place, and to be supplanted in the market by 
the more substantial ; the struggle could only be temporary ; and the quantity of 
capital actually found yielding an income, in any branch of business, would be 
found the same in the end, as if no such struggle had taken place ; provided no 
real reduction of the cost of production had been effected, which however is highly 
probable, in consequence of this competition. 
There is less likelihood in agriculture than in manufactures, that overtrading 
should take place ; the source of reproduction and increase being more immediately 
under the eye of the agricultural capitalist, his dependence on its cooperation is 
more evident. If, however, an excess of capital should be forced into employment, 
we have seen, that by such a proceeding, the capitalist only brings upon himself, at 
first, unrequited trouble and risk ; and ultimately absolute impoverishment, if he 
should persevere to such an extent, as left the land incapable of feeding the 
number of labourers, and repaying, with an increased aggregate of profit, the 
whole increase of capital sunk upon it. 
It may be as well, at this place, farther to advert to the false notions re- 
garding that of which products are the result, which are engendered by the 
use of the terms “accumulated labour,” or “ labour in the last resort,” in place 
of the term capital. In Mr. Malthus’s work on Definitions in Political Econo- 
my, page 242, we find him stating, that the conditions of the supply of pro- 
ducts are the advance of the accumulated, and immediate labour expended in 
their production, with the profits, superadded, of those whose advances are 
instrumental in effecting the production. Now this certainly conveys the idea, 
that products are the result of labour alone, some of which is directly, and some 
indirectly, applied ; and that when a capitalist comes between labourers and 
the consumers of products resulting from labour, there shall be an extra charge 
laid upon the commodity, to make good his profits ; or if we take the view of the 
case given by Adam Smith 1 , we may suppose, that on this occasion, a deduction 
is made by the capitalist, to form his profits, of a part of the wages of labour ; and 
that the consumer goes free : understand this, however, as we will, it is quite clear, 
that a wrong notion is created by the employment of such terms ; and that no clear 
1 See his chapter on the Component Parts of Price. 
