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Show 122 ON THE NATURE AND [cH. II. to the same thino-, the quantity of labour or la-· hour's worth, \Vlricl1 people will give to obtain it, vvill be a very exact measure of its exchangeable value. In short, this measure will, in the san1e place, and at the same ti1ne, exactly accord with the non1inal prices of co1nn1odities, v;ith this great a?vantao- e in its favour, that it will serve to expla1n very :Ccurately and usef~lly all_ variatio~s of value, without reference to a circulating n1edttnn. It may be said, perhaps, that in the saine place and at the same ti1ne exactly, aln1ost every conlmodity n1ay be considered as an accurate n1easure of the relative value of others, and that what has just been said of labour may be said of cloth, co~ton, iron, or any other article. Any two con1mod1- ties which at the san1e tin1e and in the same place "Wrould purchase or coinn1and the same quantity of cloth, cotton or iron, of a given quality, would have the san1e relative value, or would exchange for each other. 1.,his is no doubt true, if 've take the san1e ti1ne precisely ; but not, if a moderate latitude be allowed, such as may be allowed in the case of labour or of the precious metals. Cloth, cotton, iron and sin1ilar com1nodities, are much more exposed to sudden changes of value, both frotn the variations of den1and, and the influence of machinery and other causes, than labour. Day-labour, taking the average of sun1n1er and winter, is the tnost steady of all exchangeable articles; and the merchant who, in a foreign venture, th·e returns of ,vhich were slo,v, was sure of gaining fifteen per cent. estimated in labour, \Vould be 111uch n1ore secure SEC. VI.) MEASURES. OF VALUE. 123 of finally gaining fifteen per cent. of real profits, than he, who could only be sure of gaining fifteen per cept. estimated in cloth; cotton, iron, or even money. While labour thus constitutes an accurate measure of value in the satne place, and within short periods ' of time, it approaches the nearest of any one commodity to such a measure, when applied to different places and distant periods of time. J\.dam Srnith has considered labour in the sense here understood as so good a measure of corn, or, what comes to the san1e thing, he has considered corn as so good a measure of labour, that in his Digression on the value of silver during the four last centuries, he has actually substituted corn for labour, and drawn the same conclusions from his inquiry as if the one were always an accurate measure of the other. In doing this I think he has fallen into an important error, and dra\vn inferences inconsistent with his own general principles. At the same time, 've must allow that, from century to century, and in different and distant countries where the precious metals greatly vary in value, corn, as beino· the . . b pnnc1pal necessary of life, may fairly be considered as the best measure of the real exchano-eable value b of labour; and consequently the power of a com-tnodity to eon1mand labour will, at distant times and in different countries, be the best criterion of its power of commanding the first necessary of life-corn. With regard to the other necessaries and conve- |
