the menial servant, so far from increasing the revenue of his master, is an expense to him, his wages being necessarily paid with the produce of some other labour.

CAROLINE.

There is no doubt an essential difference between these two kinds of labourers: keeping a number of workmen is a source of wealth, whilst keeping a number of menial servants is a source of expense.

MRS. B.

The one is the employment of capital; the other the expenditure of income. Franklin, in his Correspondence, expresses this difference with his usual perspicuity and neatness:-"The first elements "of wealth are obtained by labour from the earth "and waters. I have land and I raise corn: with "this I feed a family that does nothing; my corn "will be consumed, and at the end of the year I "shall be no richer than I was at the beginning. "But if, while I feed them, I employ them, some "in spinning, others in hewing timber and sawing “boards, others in making bricks for building, "the value of my corn will be arrested, and re"main with me, and at the end of the year we

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may all be better clothed and better lodged. "And if instead of employing a man, I feed, in

making bricks, I employ him in fiddling for me, "the corn he eats is gone, and no part of his ma"nufacture remains to augment the wealth and "conveniences of the family: I shall therefore be "the poorer for this fiddling man, unless the rest "of my family work more or eat less to make up "the deficiency he occasions."

But the class of unproductive labourers is far from being confined to menial servants; it extends to all the servants of the public: actors, singers, dancers, and all those who are maintained by the productive labour of others, are of this description.

CAROLINE.

Is it not to be regretted that these people cannot be compelled to a more useful mode of employment?

MRS. B.

Their labour, though of an unproductive nature, is generally useful. Servants, for instance, by relieving the productive labourer of much necessary work, enable him to do more than he could otherwise accomplish. Thus a man engaged in the employment of a considerable capital can spend his time to greater advantage, both to himself and to the community, than in cleaning his own shoes and cooking his own dinner.

CAROLINE.

The use of servants is evidently attended with some of the benefits of the division of labour.

MRS. B.

You will probably be surprised to hear that many of the most valuable ranks of society are included in the class of unproductive labourers. The divine, the physician, the soldier, ministers of state, and magistrates, are of this description.

CAROLINE.

I did not imagine that the class of unproductive labourers had been so respectable. And although their labour is of an unproductive nature, they are, I think, in many instances, more valuable members of society than some of the productive labourers. A magistrate, who faithfully administers justice; a physician, who restores health; a clergyman, who teaches religion and morals; are certainly of more essential benefit to society, than the confectioner or the perfumer, or any of those productive labourers who are employed in the fabrication of

luxuries.

A

No doubt they are. I do not, however, consider luxuries as wholly devoid of advantage. In a future conversation we shall treat of the subject of

expenditure; we shall then have an opportunity of examining how far luxury is beneficial, and under what circumstances it is prejudicial to the welfare of society.

PRICE. OF THE CAUSE OF VALUE. -OF VALUE IN USE, AND VALUE IN EXCHANGE. OF THE COST OF PRODUCTION, OR NATURAL VALUE OF COMMODITIES. OF THE COMPONENT PARTS OF

THE COST OF PRODUCTION, RENT, PROFIT, AND OF THEIR IMPERFECTION AS A MEA

WAGES.

SURE OF VALUE.

OF SUPPLY AND DEMAND.

OF THE COMPONENT PARTS OF THE EXCHANGEABLE VALUE OF COMMODITIES. HIGH PRICE OF COMMODITIES ARISING FROM SCARCITY. - LOW PRICE ARISING FROM EXCESSIVE SUPPLY.-LOW PRICE ARISING FROM DIMINUTION OF COST OF

PRODUCTION.

BEFORE

MRS. B.

RE we proceed to the subject of trade, it is necessary that you should understand what is meant by the value of commodities.