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BOOK Competition of the different dealers obliges them I. all to accept of this price, but does not oblige them to accept of lefs.

The quantity of every commodity brought to market naturally fuits itself to the effectual demand. It is the intereft of all thofe who employ their land, labour, or ftock, in bringing any commodity to market, that the quantity never fhould exceed the effectual demand; and it is the intereft of all other people that it never fhould fall fhort of that demand.

If at any time it exceeds the effectual demand, fome of the component parts of its price must be paid below their natural rate. If it is rent, the intereft of the landlords will immediately prompt them to withdraw a part of their land; and if it is wages or profit, the intereft of the labourers in the one cafe, and of their employers in the other, will prompt them to withdraw a part of their labour or ftock from this employment. The quantity brought to market will foon be no more than fufficient to fupply the effectual demand. All the different parts of its price will rife to their natural rate, and the whole price to its natural price.

If, on the contrary, the quantity brought to market fhould at any time fall fhort of the effectual demand, fome of the component parts of its price must rise above their natural rate. If it is rent, the intereft of all other landlords will naturally prompt them to prepare more land for the raifing of this commodity; if it is wages or profit, the intereft of all other labourers and

dealers

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dealers will foon prompt them to employ more CHA P. labour and flock in preparing and bringing it to market. The quantity brought thither will foon be fufficient to fupply the effectual demand. All the different parts of its price will foon fink to their natural rate, and the whole price to its natural price.

The natural price, therefore, is, as it were, the central price, to which the prices of all commodities are continually gravitating. Different accidents may fometimes keep them fufpended a good deal above it, and fometimes force them down even fomewhat below it. whatever may be the obftacles which hinder them from fettling in this center of repofe and continuance, they are conftantly tending towards it.

But

The whole quantity of industry annually employed in order to bring any commodity to market, naturally fuits itself in this manner to the effectual demand. It naturally aims at bringing always that precife quantity thither which may be fufficient to fupply, and no more than fup: ply, that demand.

But in fome employments the fame quantity of industry will in different years produce very different quantities of commodities; while in others it will produce always the fame, or very nearly the fame. The fame number of labourers in husbandry will, in different years, produce very different quantities of corn, wine, oil, hops, &c. But the fame number of fpinners and weavers will every year produce the fame or very nearly the fame quantity of linen and woollen cloth.

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BOOK cloth. It is only the average produce of the I. one species of industry which can be fuited in any refpect to the effectual demand; and as its actual produce is frequently much greater and frequently much less than its average produce, the quantity of the commodities brought to market will fometimes exceed a good deal, and fometimes fall fhort a good deal, of the effectual demand. Even though that demand therefore fhould continue always the fame, their market price will be liable to great fluctuations, will fometimes fall a good deal below, and fometimes rife a good deal above, their natural price. In the other fpecies of industry, the produce of equal quantities of labour being always the fame, or very nearly the fame, it can be more exactly fuited to the effectual demand. While that demand continues the fame, therefore, the market price of the commodities is likely to do fo too, and to be either altogether, or as nearly as can be judged of, the fame with the natural price. That the price of linen and woollen cloth is liable neither to fuch frequent nor to fuch great variations as the price of corn, every man's experience will inform him. The price of the one fpecies of commodities varies only with the variations in the demand: That of the other varies not only with the variations in the demand, but with the much greater and more frequent variations in the quantity of what is brought to market in order to fupply that demand.

The occafional and temporary fluctuations in the market price of any commodity fall chiefly upon

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upon thofe parts of its price which refolve them- CHAP. felves into wages and profit. That part which refolves itself into rent is lefs affected by them. A rent certain in money is not in the least affected by them either in its rate or in its value. A rent which confifts either in a certain proportion or in a certain quantity of the rude produce, is no doubt affected in its yearly value by all the occafional and temporary fluctuations in the market price of that rude produce; but it is feldom affected by them in its yearly rate. In fettling the terms of the leafe, the landlord and farmer endeavour, according to their best judgment, to adjust that rate, not to the temporary and occafional, but to the average and ordinary price of the produce.

Such fluctuations affect both the value and the rate either of wages or of profit, according as the market happens to be either over-stocked or under-ftocked with commodities or with labour; with work done, or with work to be done. A public mourning raises the price of black cloth (with which the market is almost always underftocked upon fuch occafions), and augments the profits of the merchants who poffefs any confiderable quantity of it. It has no effect upon the wages of the weavers. The market is underftocked with commodities, not with labour; with work done, not with work to be done. It raifes the wages of journeymen taylors. The market is here under-stocked with labour. There is an effectual demand for more labour, for more work to be done than can be had. It finks the

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BOOK price of coloured filks and cloths, and thereby reduces the profits of the merchants who have any confiderable quantity of them upon hand. It finks too the wages of the workmen employed in preparing fuch commodities, for which all demand is stopped for fix months, perhaps for a twelvemonth. The market is here over-stocked both with commodities and with labour.

But though the market price of every particular commodity is in this manner continually gravitating, if one may fay fo, towards the natural price, yet fometimes particular accidents, fometimes natural caufes, and fometimes particular regulations of police, may, in many commodities, keep up the market price, for a long time together, a good deal above the natural price.

When by an increase in the effectual demand, the market price of fome particular commodity happens to rife a good deal above the natural price, those who employ their ftocks in fupplying that market are generally careful to conceal this change. If it was commonly known, their great profit would tempt fo many new rivals to employ their flocks in the fame way, that, the effectual demand being fully fupplied, the market price would foon be reduced to the natural price, and perhaps for fome time even below it. If the market is at a great diftance from the refidence of those who fupply it, they may fometimes be able to keep the fecret for feveral years together, and may fo long enjoy their extraordinary profits without any new rivals. Secrets of this kind, however,

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