-------

If the same amount of capital, viz. 20,000_l._, be employed in
supporting productive labour, and be annually consumed and reproduced,
as it is when employed in paying wages, then to give an equal profit of
10 per cent. on 20,000_l._ the commodities produced must sell for
22,000_l._ Now suppose labour so to rise, that instead of 20,000_l._
being sufficient to pay the wages of those employed in producing the
latter commodities, 20,952_l._ is required; then profits will fall to 5
per cent.: for as these commodities would sell for no more than before,

viz. L22,000 and to
produce them L20,952 would be
requisite, there would remain -------
no more than L1,048 on a capital

of 20,952_l._ If labour so rose, that 21,153_l._ were required, profits
would fall to 4 per cent. and if it rose, so that 21,359_l._ was
employed, profits would fall to 3 per cent.

But, as no wages would be paid by the owner of the machine, which would
last 100 years, when profits fell to 5 per cent. the price of his goods
must fall to 1007_l._ 13_s._ 8_d._ viz. 1000_l._ to pay his profits, and
7_l._ 13_s._ 8_d._ to accumulate for 100 years at 5 per cent. to replace
his capital of 20,000_l._ When profits fell to 4 per cent. his goods
must sell for 816_l._ 3_s._ 2_d._, and when at 3 per cent. for 632_l._
16_s._ 7_d._ By a rise in the price of labour then, under 7 per cent.,
which has no effect on the prices of commodities wholly produced by
labour, a fall of no less than 68 per cent. is effected on those
commodities wholly produced by machinery. If the proprietor of the
machine sold his goods for more than 632_l._ 16_s._ 7_d._, he would get
more than 3 per cent., the general profit of stock; and as others could
furnish themselves with machines at the same price of 20,000_l._ they
would be so multiplied, that he would be inevitably obliged to sink the
price of his goods, till they afforded only the usual and general
profits of stock.

In proportion as this machine were less durable, prices would be less
affected by the fall of profit, and the rise of wages. If, for example,
the machine would last only ten years, when profits were at 10 per cent.

the goods should sell for L3254
when at 5 per cent. 2590
4 per cent. 2465
3 per cent. 2344

for such are the sums requisite to place his profits on a par with
other