heir real value,
viz. by the quantity of labour and capital employed in producing them,
and not by their nominal value either in coats, hats, money, or corn.
Under the circumstances I have just supposed, commodities would have
fallen to half their former value; and, if money had not varied, to half
their former price also. If then in this medium, which had not varied in
value, the wages of the labourer should be found to have fallen, it will
not the less be a real fall, because they might furnish him with a
greater quantity of cheap commodities, than his former wages.

The variation in the value of money, however great, makes no difference
in the _rate_ of profits; for suppose the goods of the manufacturer to
rise from 1000_l._ to 2000_l._, or 100 per cent., if his capital, on
which the variations of money have as much effect as on the value of
produce, if his machinery, buildings, and stock in trade rise more than
100 per cent., his rate of profits has fallen, and he has a
proportionably less quantity of the produce of the labour of the country
at his command.

If, with capital of a given value, he double the quantity of produce,
its value falls one half, and then it will bear the same proportion to
the capital which produced it, as it did before.

If at the same time that he doubles the quantity of produce by the
employment of the same capital, the value of money is by any accident
lowered one half, the produce will sell for twice the money value that
it did before; but the capital employed to produce it, will also be of
twice its former money value; and therefore in this case too, the value
of the produce will bear the same proportion to the value of the capital
as it did before; and although the produce be doubled, rent, wages, and
profits will only vary as the proportions vary, in which this double
produce may be divided among the three classes that share it.

It appears then that the accumulation of capital, by occasioning
different proportions of fixed and circulating capital to be employed
in different trades, and by giving different degrees of durability to
such fixed capital, introduces a considerable modification to the rule,
which is of universal application in the early states of society.

Commodities, though they continue to rise and fall, in proportion as
more or less labour is necessary to their production, are also affected
in their relative value by a rise or fall of profits, since equal
profits m