Suppose that an engine is made, which will last for a hundred years, and that its value is 20,000l.. Suppose too, that this machine, without any labour whatever, could produce a certain quantity of commodities annually, and that profits were 10 per cent.: the whole value of the goods produced would be annually 2,000l. 2s. 11d.; for the profit of 20,000l.
| at 10 per cent. per annum, isat 10 per cent. per annum, is | £2,000 |
|---|---|
| And an annuity of 2 s. 11 d. will, at the end of that period, replace a capital of 20,000 l. | 2 11 |
| ——— | |
| Consequently the goods must sell for | £2000 2 11 |
If the same amount of capital, viz. 20,000l., 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 20,000l. the commodities produced must sell for 22,000l. Now suppose labour so to rise, that instead of 20,000l. being sufficient to pay the wages of those employed in producing the latter commodities, 20,952l. is required; then profits will fall to 5 per cent.: for as these commodities would sell for no more than before,
| viz. | £22,000 |
|---|---|
| and to produce them | £20,952 would be requisite, |
| ——— | |
| there would remain no more than | £1,048 |
on a capital of 20,952l. If labour so rose, that 21,153l. were required, profits would fall to 4 per cent. and if it rose, so that 21,359l. 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