FullReads

Phed
. Take it and welcome. It would be impossible for most people to raise a cabbage out of the sea-shore, though the sand were manured by principles the noblest. You, therefore, my dear friend, that promise to raise from it, not a cabbage, but a system of Political Economy, are doubly entitled to your modicum of sand, and to your principle beside; which last is, I dare say, a very worthy and respectable principle, and not at all the worse for being as old as my great-grandfather.

X
. Pardon me, Phaedrus; the principle is no older than the first edition of Mr. Ricardo’s book; and when you make me this concession so readily under the notion that you are conceding nothing more than has long been established, I fear that you will seek to retract it, as soon as you are aware of its real import and consequences.

Phed
. In most cases, X., I should hesitate to contradict you peremptorily upon a subject which you have studied so much more closely than myself; but here I cannot hesitate; for I happen to remember the very words of Adam Smith, which are–

X
. Substantially the same, you will say, as those which I have employed in expressing the great principle of Mr. Ricardo: this is your meaning, Phaedrus; and excuse me for interrupting you; I am anxious to lose no time; and therefore let me remind you, as soon as possible, that “the words” of Adam Smith cannot prove any agreement with Mr. Ricardo, if it appears that those words are used as equivalent and convertible at pleasure with certain other words not only irreconcilable with Mr. Ricardo’s principle, but expressing the very doctrine which Mr. Ricardo does, and must in consistency, set himself to oppose. Mr. Ricardo’s doctrine is, that A and B are to each other in value as the quantity of labor is which produces A to the quantity which produces B; or, to express it in the very shortest formula by substituting the term base, as synonymous with the term producing labor, All things are to each other in value as their bases are in quantity. This is the Ricardian law: you allege that it was already the law of Adam Smith; and in some sense you are right; for such a law is certain to be found in the “Wealth of Nations.” But, if it is explicitly affirmed in that work, it is also implicitly denied: formally asserted, it is virtually withdrawn. For Adam Smith everywhere uses, as an equivalent formula, that A and B are to each other in value as the value of the labor which produces A to the value of the labor which produces B.

Phed
. And the formula for Mr. Ricardo’s law is, if I understand you, that A and B are to each other in value not as the value, but as the quantity of the labor which produces A to the quantity which produces B.

X
. It is.

Phed
. And is it possible that any such mighty magic can lurk in the simple substitution of quantity for value? Surely, X., you are hair-splitting a little in this instance, and mean to amuse yourself with my simplicity, by playing off some logical legerdemain upon me from the “seraphic” or “angelic” doctors.

X
. The earnestness and good faith of my whole logic and reasoning will soon become a pledge for me that I am incapable of what you call hair-splitting; and in this particular instance I might appeal to Philebus, who will tell you that Mr. Malthus has grounded his entire opposition to Mr. Ricardo on the very distinction which you are now treating as aerial. But the fact is, you do not yet perceive to what extent this distinction goes; you suppose me to be contending for some minute and subtle shades of difference; so far from that, I mean to affirm that the one law is the direct, formal, and diametrical negation of the other: I assert in the most peremptory manner that he who says, “The value of A is to the value of B as the quantity of labor producing A is to the quantity of labor producing B,” does of necessity deny by implication that the relations of value between A and B are governed by the value of the labor which severally produces them.