ey were 20, in another 25, and
in another 30 per cent., they would probably continue permanently with
that relative difference, and with that difference only; for if any
cause should elevate the profits of one of these trades 10 per cent.
either these profits would be temporary, and would soon again fall back
to their usual station, or the profits of the others would be elevated
in the same proportion.

Let us suppose that all commodities are at their natural price, and
consequently that the profits of capital in all employments are exactly
at the same rate, or differ only so much as, in the estimation of the
parties, is equivalent to any real or fancied advantage which they
possess or forego. Suppose now, that a change of fashion should
increase the demand for silks, and lessen that for woollens; their
natural price, the quantity of labour necessary to their production,
would continue unaltered, but the market price of silks would rise, and
that of woollens would fall; and consequently the profits of the silk
manufacturer would be above, whilst those of the woollen manufacturer
would be below, the general and adjusted rate of profits. Not only the
profits, but the wages of the workmen would be affected in these
employments. This increased demand for silks would however soon be
supplied, by the transference of capital and labour from the woollen to
the silk manufacture; when the market prices of silks and woollens would
again approach their natural prices, and then the usual profits would be
obtained by the respective manufacturers of those commodities.

It is then the desire, which every capitalist has, of diverting his
funds from a less to a more profitable employment, that prevents the
market price of commodities from continuing for any length of time
either much above, or much below their natural price. It is this
competition which so adjusts the exchangeable value of commodities, that
after paying the wages for the labour necessary to their production, and
all other expenses required to put the capital employed in its original
state of efficiency, the remaining value or overplus will in each trade
be in proportion to the value of the capital employed.

In the 7th chap. of the Wealth of Nations, all that concerns this
question is most ably treated. Having fully acknowledged the temporary
effects which, in particular employments of capital, may be produced on
the prices of commodities, as well as on the wages of la