1830.] 
Of Wealth and Value. 
333 
Relative value, says Mr. Ricardo, is price. I take leave to differ with him in this. 
Relative value is the relation of products to products; and price is that by which 
positive value is designated and known ; it, is the mark of estimation in which is held 
the produce of that exertion by which alone man obtains wealth. Price then is not 
relative, but positive value. Mr. Ricardo proceeds: “ It is only through price that 
consumers can be affected.” This I grant, if he means real price ; but be does not, 
he means by price, the relative values of the commodity gold, and other products ; 
and consequently I deny that it is through the means of such price that consumers 
are affected. 
But if what appeared to Mr. Ricardo, in his chapter on profits, the demonstration 
of the truth of his principles be not sufficient for their establishment, what answer, 
it may he asked, can be given to the concluding paragraph of the same chapter, in 
which it is shewn, that whether prices rise or not, the effect will still be the same, 
a reduction of the capitalists profits ? He writes as follows. “ In the chapter on 
wages, we have endeavoured to shew that the money price of commodities would not 
he raised by a rise of wages, either on the supposition that gold, the standard of 
money, was the produce of this country, or that it was imported from abroad. But 
if it were otherwise, if the prices of commodities were permanently raised by high 
wages, the proposition would not be the less true, which asserts that high wages 
invariably affect the employers of capital, by depriving them of their real profits. 
Supposing the hatter, the hosier, and the shoemaker each paid 10£ more wages 
in the manufacture of a particular quantity of their commodities, and that the 
price of hats, stockings, and shoes rose by a sum sufficient to repay the manu- 
facturer £10, their situation would be no better than if no such rise took place. 
If the hosier sold his stockings for £\ 10, instead of £100, his profits would be 
precisely the same money amount as before ; hut as be would obtain in exchange 
for this equal sum, one tenth less of hats, shoes, and every Other commodity, and 
as he could with his former amount of savings employ fewer labourers at the in- 
creased prices, he would be in no better situation than if bis money profits had 
been really diminished in amount, and every thing had remained at it> former pr.ee. 
Thus then 1 have endeavoured to shew, first, that a rise of wages would not raise 
the price of commodities, but would lower profits ; and secondly, that if the price 
of all commodities could be raised, still the effect on profits would be the same. 
fPage 130 ) Now this looks verv imposing, and seems to prove beyond all doubt the 
correctness of his reasoning : for it can first shew itself to be right, not only on the 
amT do* not increase the profits ..Iso in proportion, you reduce the capitalists rate of 
and do not mc.ea < I • hearing t |, e question ,*■ for it is assuming the ve- 
profits. Now this, ’ WH J?a lone will be repaid in tbeincreased price of 
ry point at issue, l f £ corresponding to the increase of capital, 
wall not be made. If we increase the capita, with winch products are obtained 
profits. Now 
ry point at issue, namc.v, niy " " r V (rres i)onding' to the increase of capital, 
wares, and that an incieas 1 - » ‘ j | which products are obtained, 
will not he made. If we is clear that the rate 
and do not increase pioti s in a ' * jj j . sses will be advancing while capi- 
of profits Will he suffer, ng reduc .0 n i l ‘*‘ pro. i. .ce go, eg to the use' of 
talists are standing still . it « e - can be more certain, than that 
every class except the class of capita »», * , )Ut the qiKMi rion is, have 
the capitalists will be renders C l' 11 1 1 ie imuovenshmeDt of the capitalists should 
any sufficient reasons been given why this imporenslimeni o 
take place ? satisfaction, that all who admit the possibi 
Mr. Ricardo establishes, to d m ‘ rrence 0 f « general rise of wages, or 01 
lity of a general rise of price, o ross Hn d palpable contradiction; 
any other sufficient occasion, run i « country under discussion, or win* 
this, whether money be the produce S"»wo.iii.» th.t money is - 
it be imported from abioad. influenced by a rise of wages, he says, i 
modity, and like all other pro. unnoticed that, when money is a hmne pro- 
mitting a general rise of price we ], hunter and fisherman to raise the va- 
duct, the same reasons winch 'nd, ce the h„„w ^ ^ a|<o ^ of 
lue of their game and hsh, can e the o djt we forget that gold must be 
his gold ; and when money is a lo£ign . . t be inevitable for increased cir- 
influenced by the new demand for it, which most 
on 
and 
ther 
Cum- 
in ad- 
