rofits
continue the same, the same effect will be produced; 200_l._ per annum
will be added to my capital. The merchant who imported wine after
profits had been raised from 20 per cent. to 40 per cent., instead of
purchasing his English goods for 1000_l._, must purchase them for
857_l._ 2_s._ 10_d._, still selling the wine which he imports in return
for those goods for 1200_l._; or, if he continued to purchase his
English goods for 1000_l._, must raise the price of his wine to
1400_l._; he would thus obtain 40 instead of 20 per cent. profit on his
capital; but if, in consequence of the cheapness of all the commodities
on which his revenue was expended, he and all other consumers could save
the value of 200_l._ out of every 1000_l._ they before expended, they
would more effectually add to the real wealth of the country; in one
case, the savings would be made in consequence of an increase of
revenue, in the other in consequence of diminished expenditure.

If, by the introduction of machinery, the generality of the commodities
on which revenue was expended fell 20 per cent. in value, I should be
enabled to save as effectually as if my revenue had been raised 20 per
cent.; but in one case the rate of profits is stationary, in the other
it is raised 20 per cent.--If, by the introduction of cheap foreign
goods, I can save 20 per cent. from my expenditure, the effect will be
precisely the same as if machinery had lowered the expense of their
production, but profits would not be raised.

It is not, therefore, in consequence of the extension of the market that
the rate of profits is raised, although such extension may be equally
efficacious in increasing the mass of commodities, and may thereby
enable us to augment the funds destined for the maintenance of labour,
and the materials on which labour may be employed. It is quite as
important to the happiness of mankind, that our enjoyments should be
increased by the better distribution of labour, by each country
producing those commodities for which by its situation, its climate, and
its other natural or artificial advantages it is adapted, and by their
exchanging them for the commodities of other countries, as that they
should be augmented by a rise in the rate of profits.

It has been my endeavour to shew throughout this work, that the rate of
profits can never be increased but by a fall in wages, and that there
can be no permanent fall of wages but in consequence of a fall of