s, and to replace his capital at the end of ten years; or, which is
the same thing, such are the annuities which 20,000_l._ would purchase
for ten years at those rates. If the machine would last only three
years, when profits were 10 per cent.

the price of the goods would be L8042
at 5 per cent. 7344
4 per cent. 7206
3 per cent. 7070

If it would last only one year, when profits
were 10 per cent.

the goods would sell for L22,000
at 5 per cent. 21,000
4 per cent. 20,800
3 per cent. 20,600:

therefore when profits fell from 10 to 3 per cent. the goods, which
were produced with equal capitals, would fall

68 per cent. if the machine would last 100 years.
28 per cent. if the machine would last 10 years.
13 per cent. if it would last 3 years.
And little more than 6 per cent. if it}
would last only } 1 year.

These results are of such importance to the science of political
economy, yet accord so little with some of its received doctrines, which
maintain that every rise in wages is necessarily transferred to the
price of commodities, that it may not be superfluous to elucidate the
subject still further.

A manufacturer of hats employs a hundred men at an annual expense of
50_l._ each, who produce him commodities of the value of 8000_l._ A
machine calculated to last precisely a year, and to do equally well the
same work as the 100 men, is offered to him for 5000_l._, the sum,
exactly, that he is expending on wages. It will be a matter of
indifference to the manufacturer, whether he purchase the machine, or
continue to employ the men. Now if the wages of labour rise 10 per cent.
and an additional capital of 500_l._ be consequently required to enable
him to employ the same labour, whilst his commodities continue to sell
for 8000_l._, he will no longer hesitate, but will at once purchase the
machine, and will do the same annually, while wages continue above the
original 5000_l._ But will he be able now to purchase the machine at the
former price? will not its value be increased, in consequence of the
rise of labour? It would be increased, if there were no stock employed
in its construction, and no profits to be paid to the maker of it. If,
for example, the machine were p