The Crown of Wild Olive, John Ruskin [best ereader for graphic novels .txt] 📗

of currency, are calculable; but its proportion to their will for labour is not. The worth of the piece of money which claims a given quantity of the store is, in exchange, less or greater according to the facility of obtaining the same quantity of the same thing without having recourse to the store. In other words it depends on the immediate Cost and Price of the thing. We must now, therefore, complete the definition of these terms.

59. All cost and price are counted in Labour. We must know first, therefore, what is to be counted as Labour.

I have already defined labour to be the Contest of the life of man with an opposite. Literally, it is the quantity of "Lapse," loss, or failure of human life, caused by any effort. It is usually confused with effort itself, or the application of power (opera); but there is much effort which is merely a mode of recreation, or of pleasure. The most beautiful actions of the human body, and the highest results of the human intelligence, are conditions, or achievements, of quite unlaborious,—nay, of recreative,—effort. But labour is the suffering in effort. It is the negative quantity, or quantity of de-feat, which has to be counted against every Feat, and of de-fect which has to be counted against every Fact, or Deed of men. In brief, it is "that quantity of our toil which we die in."

We might, therefore, à priori, conjecture (as we shall ultimately find), that it cannot be bought, nor sold. Everything else is bought and sold for Labour, but labour itself cannot be bought nor sold for anything, being priceless.[25] The idea that it is a commodity to be bought or sold, is the alpha and omega of Politico-Economic fallacy.

60. This being the nature of labour, the "Cost" of anything is the quantity of labour necessary to obtain it;—the quantity for which, or at which, it "stands" (constant). It is literally the "Constancy" of the thing;—you shall win it—move it—come at it, for no less than this.

Cost is measured and measurable (using the accurate Latin terms) only in "labour," not in "opera."[26] It does not matter how much work a thing needs to produce it; it matters only how much distress. Generally the more the power it requires, the less the distress; so that the noblest works of man cost less than the meanest.

True labour, or spending of life, is either of the body, in fatigue or pain; of the temper or heart (as in perseverance of search for things,—patience in waiting for them,—fortitude or degradation in suffering for them, and the like), or of the intellect. All these kinds of labour are supposed to be included in the general term, and the quantity of labour is then expressed by the time it lasts. So that a unit of labour is "an hour's work" or a day's work, as we may determine.[27]

61. Cost, like value, is both intrinsic and effectual. Intrinsic cost is that of getting the thing in the right way; effectual cost is that of getting the thing in the way we set about it. But intrinsic cost cannot be made a subject of analytical investigation, being only partially discoverable, and that by long experience. Effectual cost is all that the political Economist can deal with; that is to say, the cost of the thing under existing circumstances, and by known processes.

Cost, being dependent much on application of method, varies with the quantity of the thing wanted, and with the number of persons who work for it. It is easy to get a little of some things, but difficult to get much; it is impossible to get some things with few hands, but easy to get them with many.

62. The cost and value of things, however difficult to determine accurately, are thus both dependent on ascertainable physical circumstances.[28]

But their price is dependent on the human will.

Such and such a thing is demonstrably good for so much. And it may demonstrably be had for so much.

But it remains questionable, and in all manner of ways questionable, whether I choose to give so much.[29]

This choice is always a relative one. It is a choice to give a price for this, rather than for that;—a resolution to have the thing, if getting it does not involve the loss of a better thing. Price depends, therefore, not only on the cost of the commodity itself, but on its relation to the cost of every other attainable thing.

Farther. The power of choice is also a relative one. It depends not merely on our own estimate of the thing, but on everybody else's estimate; therefore on the number and force of the will of the concurrent buyers, and on the existing quantity of the thing in proportion to that number and force.

Hence the price of anything depends on four variables.

(1.) Its cost.

(2.) Its attainable quantity at that cost.

(3.) The number and power of the persons who want it.

(4.) The estimate they have formed of its desirableness.

Its value only affects its price so far as it is contemplated in this estimate; perhaps, therefore, not at all.

63. Now, in order to show the manner in which price is expressed in terms of a currency, we must assume these four quantities to be known, and the "estimate of desirableness," commonly called the Demand, to be certain. We will take the number of persons at the lowest. Let A and B be two labourers who "demand," that is to say, have resolved to labour for, two articles, a and b. Their demand for these articles (if the reader likes better, he may say their need) is to be conceived as absolute, their existence depending on the getting these two things. Suppose, for instance, that they are bread and fuel, in a cold country, and let a represent the least quantity of bread, and b the least quantity of fuel, which will support a man's life for a day. Let a be producible by an hour's labour, but b only by two hours' labour.

Then the cost of a is one hour, and of b two (cost, by our definition, being expressible in terms of time). If, therefore, each man worked both for his corn and fuel, each would have to work three hours a day. But they divide the labour for its greater ease.[30] Then if A works three hours, he produces 3 a, which is one a more than both the men want. And if B works three hours, he produces only 1-1/2 b, or half of b less than both want. But if A work three hours and B six, A has 3 a, and B has 3 b, a maintenance in the right proportion for both for a day and half; so that each might take half a day's rest. But as B has worked double time, the whole of this day's rest belongs in equity to him. Therefore the just exchange should be, A giving two a for one b, has one a and one b;—maintenance for a day. B giving one b for two a, has two a and two b; maintenance for two days.

But B cannot rest on the second day, or A would be left without the article which B produces. Nor is there any means of making the exchange just, unless a third labourer is called in. Then one workman, A, produces a, and two, B and C, produce b:—A, working three hours, has three a;—B, three hours, 1-1/2 b;—C, three hours, 1-1/2 b. B and C each give half of b for a, and all have their equal daily maintenance for equal daily work.

To carry the example a single step farther, let three articles, a, b, and c be needed.

Let a need one hour's work, b two, and c four; then the day's work must be seven hours, and one man in a day's work can make 7 a, or 3-1/2 b, or 1-3/4 c.

Therefore one A works for a, producing 7 a; two B's work for b, producing 7 b; four C's work for c, producing 7 c.

A has six a to spare, and gives two a for one b, and four a for one c. Each B has 2-1/2 b to spare, and gives 1/2 b for one a, and two b for one c.

Each C has 3/4 of c to spare, and gives 1/2 c for one b, and 1/4 of c for one a.

And all have their day's maintenance.

Generally, therefore, it follows that if the demand is constant,[31] the relative prices of things are as their costs, or as the quantities of labour involved in production.

64. Then, in order to express their prices in terms of a currency, we have only to put the currency into the form of orders for a certain quantity of any given article (with us it is in the form of orders for gold), and all quantities of other articles are priced by the relation they bear to the article which the currency claims.

But the worth of the currency itself is not in the slightest degree founded more on the worth of the article which it either claims or consists in (as gold) than on the worth of every other article for which the gold is exchangeable. It is just as accurate to say, "so many pounds are worth an acre of land," as "an acre of land is worth so many pounds." The worth of gold, of land, of houses, and of food, and of all other things, depends at any moment on the existing quantities and relative demands for all and each; and a change in the worth of, or demand for, any one, involves an instantaneously correspondent change in the worth of, and demand for, all the rest;—a change as inevitable and as accurately balanced (though often in its process as untraceable) as the change in volume of the outflowing river from some vast lake, caused by change in the volume of the inflowing streams, though no eye can trace, nor instrument detect, motion, either on its surface, or in the depth.

65. Thus, then, the real working power or worth of the currency is founded on the entire sum of the relative estimates formed by the population of its possessions; a change in this estimate in any direction (and therefore every change in the national character), instantly alters the value of money, in its second great function of commanding labour. But we must always carefully and sternly distinguish between this worth of currency, dependent on the conceived or appreciated value of what it represents, and the worth of it, dependent on the existence of what it represents. A currency is true, or false, in proportion to the security with which it gives claim to the possession of land, house, horse, or picture; but a currency is strong or weak,[32] worth much, or worth little, in proportion to the degree of estimate in which the nation holds the house, horse, or picture which is claimed. Thus the power of the English currency has been, till of late, largely based on the national estimate of horses and of wine: so that a man might always give any price to furnish choicely his stable, or his cellar; and receive public approval therefor: but if he gave the same sum to furnish his library, he was called mad or a biblio-maniac. And although he might lose his fortune by his horses, and his health or life by his cellar, and rarely lost either by his books, he was yet never called a