CHAPTER I.

must fall to 1007 l. 13 s. 8 d. viz. 1000l. 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.

for such are the sums requisite to place his profits on a par with others, and to replace his capital at the end of ten years; or, which is the same thing, such are the annuities which 20,000l. would purchase for ten years at those rates. If the machine would last only three years, when profits were 10 per cent.