The elements of social science, or, Physical, sexual, and natural religion : an exposition of the true cause and only cure of the three primary social evils: poverty, prostitution and celibacy / by a doctor of medicine.

Drysdale, George R., 1825-1904.

Date:: 1889

Credit: The elements of social science, or, Physical, sexual, and natural religion : an exposition of the true cause and only cure of the three primary social evils: poverty, prostitution and celibacy / by a doctor of medicine. Source: Wellcome Collection.

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$parafive rate of profits, by which values are ellbcted. Ilij^li or low profits, wlien coiiiiuon to all einployiiioiits, do not make high or low values and prices. It is only when tiic rate of prolit is Iiigher in one eniployuieiu than in otiiers, or when tiie capital has to be advanced for a longer time, that the value of commodities is affected. For example, there are some ocen])ations (such as tiiose of the fjun- powder manufacturer or of the butchei) m which the rate of profit if permanently higher than usual, lo compensate for the peculiar risks cr unpleasantnesses of the business. In these cases, ihe ViJue of tlie conm-.odities numufactured or sold, is proportionally raised. In other employments, again, although the rate of profit is not unusually high, yet the tune during which the cai)ital is advanced, is longer. A wine- merchant often keeps his wine several years before selling it; and the price he ultimately receives must be sufficient to repay him for so long a detention of his capital. In the case of all articles made by mac/linen/, also, the capital is advanced for a longer time, than in those made wholly by immediate hand labor. Capital lias first to be em- ployed in making the machine, and afterwards in producing the goods with its assistance; and as the price of the goods must be sufficient to replace with a profit the wliole capital expended in any stage of their production, it will evidently be higher in proportion to the length of the period, during \vhk:h that capital, or any part of it, has been advanced. The greater the proportion of the cajiital which is spent in previous operations before the inmiediate work commences; in other words, the greater the amount, not only of machinerj^, but also of materials and buildings, which has to be provided; the more largely do profits enter into the cost of production, and therefore into the value, of the ultimate product. Greater durabilili/ in the fixed capital has the same efl^ect as a greater amount of it. The more durable a machine is, the less necessity is there that its original cost of produc- tion should be speedily replaced, and the less docs it stand in need of repairs. In those employments, therefore, where the machinery and buildings are of a very durable nature, a less proportionate amount of immediate hand labor is required, and the capital is advanced for a longer period; so that here also profits will enter more largely into the value of the uitimate product. Hence it follows that even a general rise or fall of v\ ;.rcs will to a certain extent, affect values. It will not indeed raise cilower values generally (which is impossible) ; but, by its action on profits, it wiU raise the value of some things and lower that of others. Every rise of wages causes a fall of profits, and conversely. Now when profits tall the relative value of those things into whose cost of production prohts enter most largely, will be proportionally diminished. A fal2 of profits therefore will lower the value of things made by machinery in comparison with those made by hand labor; and a rise of profits Will have a contrary efl^ect. This cause of variations in value is, tiowever, but slight; sinoe tlie alterations in the general rate of profit tre confined within comparatively narrow limits The manner in which wages and profits affect the value of commo- 2 p$