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Show 31 !2 . OF 'filE PROFITS OF CAPITAL. . [CH. V. the effects of a scanty but stationary capital on an overflo,ving but stationary popul.ation might last for ever. In d\velling thus upon the powerful effects 'vhich n1ustinevitably beproduceq by the proportion which capital bears to labour, and upon the necessity of giving adequate weight to the principle of den1and and supply or competition in every explanation of · the circun1stances 'vhich determine profits, it is not n1eant to underrate the in1portance of that cause "\lvhich has been aln1ost exclusively co1~siderecl by Mr. Ilicardo. It is indeed of such a nature as finally to. over\vhel rn ·every other. 1'o recur to the jllustration already used-as the I .. ong Annuities . approach nearer and nearer to the tern1 at vvh1ch they expire, their value rnust necessarily so diminish, on this account alone, that no den1and arising fron1 plenty of money could possibly keep up their value. In the san1e manner, when cultivation is pushed to its extreme practical limits, that is, when . the labour of a n1an upon the last land taken into cultivation will scarcely do n1ore than support such a fan1ily as is necessary to n1aintain a stationary population, it is evident that no other cause or causes can prevent profits fron1 sinking to the lowest rate required to maintain the actual capital. But though the principle here considered' is ~nally of the very greatest po\ver, yet its progress Is extremely slow and oTadual · and while it is 5 ' proceeding with scarcely perceptible steps to its final destination, the second cause, particularly when con1bined \vith others which will be noticed SEC. III.] OF THE PROFITS O:F CAPITAL. S1S in the next section, is producing effects \vhich entirely overcon1e it, and often for tvventy or thirty, or even 100 years together, make the rate of profits take a course absolutely different fro1n \vhat it ought to be according to the first cause. SECTION III. Of Profits as affected b.lJ the Causes practically in oper·ation. We co1ne no\v to the consideration of the causes which influence profits in the actual state of things. And here it is evident that \iVe shall have in operation not only both · the causes already stated, but others \iVhich will variously modify then1. In the progressive cultivation of poorer land for instanee, as capital and population increase, profits, according to the first cause, will regularly fall; but if at the san1e time improvements in agriculture are taking place, they 1nay certainly be such as, for a considerable period, not only to prevent profits fron1 falling, but to allo'v of a considerable rise. To \vhat extent, and for what lenoth of tin1e this cir-b ' cun1stance 1night interrupt the progress of profits arising fron1 the first cause, it is not easy to say; hut, as it is certain that in an extensive ~erritory, consisting of soils not very different in their natural powers of production, the fall of profits ansntg |
