The Online Library of Liberty

A project of Liberty Fund, Inc.

• Preface to Volumes Vi - Ix
• Introductory Notes to the Correspondence
• 1.: Ricardo to Horner
• 2.: Ricardo to Horner
• 3.: Ricardo to Sir Philip Francis
• 4.: Mill to Ricardo1[answered By 5]
• 5.: Ricardo to Mill3[reply to 4—answered By 6]
• 6.: Mill to Ricardo1[reply to 5]
• 7.: Ricardo to Dumont
• 8.: Malthus to Ricardo1[answered By 9]
• 9.: Ricardo to Malthus1[reply to 8.—ANSWERED By 10]
• 10.: Malthus to Ricardo1[reply to 9]
• 11.: Malthus to Ricardo
• 12.: Ricardo to [malthus][fragment]
• 13.: Malthus to Ricardo
• 14.: Ricardo to [malthus] [a Note On the Jamaica Exchange]
• 15.: Malthus to Ricardo 3[answered By 16]
• 16.: Ricardo to Malthus 2[reply to 15.—ANSWERED By 17]
• 17.: Malthus to Ricardo 1[reply to 16]
• 18.: Ricardo to Perceval 1[answered By 19]
• 19.: Perceval (by Rosenhagen) to Ricardo 1[reply to 18]
• 20.: Ricardo to Bentham 2
• 21.: Malthus to Ricardo 1
• 22.: Mill to Ricardo 1[answered By 23]
• 23.: Ricardo to Mill 1[reply to 22.—ANSWERED By 24]
• 24.: Mill to Ricardo 1[reply to 23]
• 25.: Ricardo to Malthus 1[answered By 26]
• 26.: Malthus to Ricardo 1[reply to 25.—ANSWERED By 27]
• 27.: Ricardo to Malthus 1[reply to 26]
• 28.: Malthus to Ricardo1
• 29.: Ricardo to Tierney 1[answered By 30]
• 30.: Tierney to Ricardo1[reply to 29]
• 31.: Malthus to Ricardo1
• 32.: Ricardo to Malthus3[answered By 33]
• 33.: Malthus to Ricardo5[reply to 32]
• 34.: Ricardo to Horner1
• 35.: Malthus to Ricardo2
• 36.: Ricardo to Malthus1[fragment]
• 37.: Ricardo to Malthus1
• 38.: Ricardo to Malthus1
• 39.: Ricardo to Malthus2
• 40.: Ricardo to Malthus 1
• 41.: Ricardo to Malthus2
• 42.: Ricardo to Malthus1
• 43.: Ricardo to Malthus1
• 44.: Ricardo to Trower1
• 45.: Ricardo to Malthus1
• 46.: Ricardo to Malthus1
• 47.: Trower to Ricardo1[answered By 48]
• 48.: Ricardo to Trower1[reply to 47]
• 49.: Mill to Ricardo1
• 50.: Ricardo to Malthus1[answered By 51]
• 51.: Malthus to Ricardo3[reply to 50.—ANSWERED By 53]
• 52.: Ricardo to Bentham and Mill1
• 53.: Ricardo to Malthus1[reply to 51.—ANSWERED By 54]
• 54.: Malthus to Ricardo1[reply to 53.—ANSWERED By 55]
• 55.: Ricardo to Malthus3[reply to 54.—ANSWERED By 56]
• 56.: Malthus to Ricardo1[reply to 55.—ANSWERED By 58]
• 57.: Mill to Ricardo1
• 58.: Ricardo to Malthus1[reply to 56.—ANSWERED By 59]
• 59.: Malthus to Ricardo3[reply to 58.—ANSWERED By 60]
• 60.: Ricardo to Malthus1[reply to 59.—ANSWERED By 62]
• 61.: Mill to Ricardo1
• 62.: Malthus to Ricardo1[reply to 60.—ANSWERED By 64]
• 63.: Sinclair to Ricardo1
• 64.: Ricardo to Malthus1[reply to 62.—ANSWERED By 67]
• 65.: Sinclair to Ricardo1[answered By 66]
• 66.: Ricardo to Sinclair1[reply to 65]
• 67.: Malthus to Ricardo2[reply to 64.—ANSWERED By 70]
• 68.: Mill to Ricardo1
• 69.: Place to Ricardo1
• 70.: Ricardo to Malthus1[reply to 67.—ANSWERED By 72]
• 71.: Ricardo to Say2
• 72.: Malthus to Ricardo1[reply to 70.—ANSWERED By 73]
• 73.: Ricardo to Malthus1[reply to 72]
• 74.: Ricardo to Malthus1[answered By 75]
• 75.: Malthus to Ricardo1[reply to 74.—ANSWERED By 76]
• 76.: Ricardo to Malthus2[reply to 75]
• 77.: Ricardo to Malthus3[answered By 78]
• 78.: Malthus to Ricardo2[reply to 77]
• 79.: Trower to Ricardo2
• 80.: Malthus to Ricardo1[answered By 81]
• Malthus to Horner4
• 81.: Ricardo to Malthus3[reply to 80.—ANSWERED By 82]
• 82.: Malthus to Ricardo2[reply to 81.—ANSWERED By 83]
• 83.: Ricardo to Malthus1[reply to 82.—ANSWERED By 84]
• 84.: Malthus to Ricardo3[reply to 83.—ANSWERED By 85]
• 85.: Ricardo to Malthus1[reply to 84.—ANSWERED By 86]
• 86.: Malthus to Ricardo1[reply to 85.—ANSWERED By 87]
• 87.: Ricardo to Malthus2[reply to 86.—ANSWERED By 88]
• 88.: Malthus to Ricardo1[reply to 87.—ANSWERED By 89]
• 89.: Ricardo to Malthus1[reply to 88.—ANSWERED By 90]
• 90.: Malthus to Ricardo1[reply to 89]
• 91.: Ricardo to Malthus1[answered By 92]
• 92.: Malthus to Ricardo3[reply to 91.—ANSWERED By 93]
• 93.: Ricardo to Malthus1[reply to 92.—ANSWERED By 94]
• 94.: Malthus to Ricardo2[reply to 93]
• 95.: Malthus to Ricardo1[answered By 96]
• 96.: Ricardo to Malthus1[reply to 95]
• 97.: Malthus to Ricardo1
• 98.: Ricardo to Murray1
• 99.: Malthus to Ricardo1[answered By 100]
• 100.: Ricardo to Malthus1[reply to 99.—ANSWERED By 101]
• 101.: Malthus to Ricardo1[reply to 100.—ANSWERED By 103]
• 102.: Trower to Ricardo1
• 103.: Ricardo to Malthus1[reply to 101.—ANSWERED By 110]
• 104.: Grenfell to Ricardo1
• 105.: Whishaw to Ricardo2
• 106.: Say to Ricardo1[answered By 107]
• 107.: Ricardo to Say1[reply to 106.—ANSWERED By 117]
• 108.: Ricardo to [say]1[answered By 117]
• 109.: Mill to Ricardo5[answered By 114]
• 110.: Malthus to Ricardo1[reply to 103.—ANSWERED By 116]
• 111.: Grenfell to Ricardo1
• 112.: Grenfell to Ricardo1[fragment]
• 113.: Grenfell to Ricardo1
• 114.: Ricardo to Mill3[reply to 109.—ANSWERED By 134]
• 115.: Grenfell to Ricardo1
• 116.: Ricardo to Malthus2[reply to 110.—ANSWERED By 126]
• 117.: Say to Ricardo1[reply to 107 & 108]
• Say to Ricardo
• 118.: Grenfell to Ricardo1
• 119.: Grenfell to Ricardo1
• 120.: Trower to Ricardo1[answered By 136]
• 121.: Grenfell to Ricardo1
• 122.: Grenfell to Ricardo1
• 123.: Grenfell to Ricardo1
• 124.: Grenfell to Ricardo1
• 125.: Grenfell to Ricardo1
• 126.: Malthus to Ricardo5[reply to 116.—ANSWERED By 127]
• 127.: Ricardo to Malthus1[reply to 126.—ANSWERED By 128]
• 128.: Malthus to Ricardo1[reply to 127.—ANSWERED By 130]
• 129.: Malthus to Ricardo1[answered By 130]
• 130.: Ricardo to Malthus1[reply to 128 & 129.—ANSWERED By 137]
• 131.: Malthus to Ricardo2[answered By 132]
• 132.: Ricardo to Malthus1[reply to 131.—ANSWERED By 137]
• 133.: Grenfell to Ricardo1
• 134.: Mill to Ricardo1[reply to 114.—ANSWERED By 135]
• 135.: Ricardo to Mill1[reply to 134.—ANSWERED By 138]
• 136.: Ricardo to Trower2[reply to 120.—ANSWERED By 141]
• 137.: Malthus to Ricardo3[reply to 130 & 132]
• 138.: Mill to Ricardo2[reply to 135]
• 139.: Malthus to Ricardo1
• 140.: Ricardo to Mill2[answered By 142]
• 141.: Trower to Ricardo1[reply to 136.—ANSWERED By 147]
• 142.: Mill to Ricardo1[reply to 140.—ANSWERED By 143]
• 143.: Ricardo to Mill3[reply to 142.—ANSWERED By 145]
• 144.: Ricardo to Malthus1[answered By 148]
• 145.: Mill to Ricardo1[reply to 143.—ANSWERED By 149]
• 146.: Malthus to Ricardo1[answered By 150]
• 147.: Ricardo to Trower1[reply to 141.—ANSWERED By 154]
• 148.: Malthus to Ricardo1[reply to 144.—ANSWERED By 150]
• 149.: Ricardo to Mill1[reply to 145.—ANSWERED By 151]

92.

malthus to ricardo3
[Reply to 91.—Answered by 93]

[East India College, 18 April 1815]

My dear Sir

I should have great pleasure in joining your party on wednesday, but of all the days in the week, that is the one, when it is least possible for me to leave College, as it is the first of my two lecture days. I rather believe that I shall be in Town with Mrs. Malthus for two or three days towards the latter end of the next week, when I hope we shall have an opportunity of meeting.

Do you not perceive that the conclusion you have drawn from your calculation depends entirely upon the arbitrary assumption that the next portion of land taken into cultivation will require 8½ men to produce 80 quarters of corn. But as you have distinctly allowed that, on account of the rise of price occasioned by demand, from 4£ to £4. 10^s., the profits on the old land will rise from 25 to 32 per cent, surely there is land that may be brought into cultivation at all the intermediate gradations of profit from 32 per cent to 25, and 19.7 and nothing can be so improbable as that if the last land yielded 32 the next taken into cultivation should yield only19.7. I suppose in this case the rise in the price of corn to be occasioned by demand, and to be its market price. What additional quantity of labour will be employed on new land will depend entirely upon circumstances—upon the causes which determine the general rate profits.

I assure you I have been reading over your essay again, and giving it great attention, as I particularly wish to get to the bottom of this subject.

I think your theory simple just and consistent as far as it goes; but I think you wrong in the application of it, that is, you expect similar results when the premises are essentially different. The source of this error, as it appears to me, is, that because a relative rise in the price of corn (or rather perhaps fall in the price of manufactures) always accompanies an accumulation of stock and fall of profits, you assume such rise in the price of corn as the cause, when in fact the whole operation of this rise as far as relates to the land, goes the other way, and tends to raise rather than to lower profits, although of course when the rise is absolutely occasioned by the fall of profits, such fall must overcome the tendency, and all the advantage derived from it will go, as you justly observe to the Landlord.

But there are other causes of a relative rise in the price of corn besides the fall of profits, such as a foreign demand for it, a greater home demand occasioned by restrictions on importation, and a prosperous foreign trade, by which we can at once import a great abundance and a great value of foreign commodities. These are causes (particularly the two former) of a rise in the relative price of corn in no respect necessarily connected with a fall of profits, and under the influence of these causes fresh land may be taken into cultivation, at various profits (to refer to your instance) from 32 to 26 per cent. With regard to manufactures in this case, if they did not rise immediately from increased demand, some of the capital vested in them would go to the land till the level was restored.

Now the error you appear to me to fall into is, that, of applying your neat simple and ingenious table1 to a state of things not contemplated in it, and to which it does not apply. The high profits of stock which appear in the early periods of your table are owing, not to the low relative price of corn (which in fact has a contrary tendency) but to the small quantity of capital in the country compared with the means of employing it, and particularly to the small quantity of capital employed in manufactures, which unless furnished very sparingly could never bring such high profits as could be obtained from the land. But this state of things cannot surely be brought back by a low price of corn not occasioned by scantiness of capital and high profits, and if it be not preceded by these causes, its effects will be to lower not to raise the profits of agriculture. A large tract of rich land added to the Island, would indeed restore the state contemplated in your table. Before any fall of price had taken place, capital would be removing fast both from the old land and from manufactures. There would be a real want of stock compared with the means of profitably employing it; manufactures would rise considerably in price, from higher profits, and corn not rising, on account of the abundance of rich land, the relative price of corn would become low; but as a consequence (remark) not as a cause of high profits.

The case would be quite different if you begin by a fall in the price of corn, not occasioned by high profits, such as the opening of the ports or the stoppage of a foreign demand for corn. Capital would in this case be expelled from the land slowly by low profits, instead of removing with alacrity for high profits. Manufactures would be overloaded with capital instead of being very scantily furnished with it; and nothing I conceive but the immediate vicinity of such a country could under such circumstances so increase the prices of manufactures as to occasion generally high profits.

In your table, by the by, putting the affair of mining out of the question which it is difficult to estimate, I should say that the regular progress would be a fall in the price of manufactures from lower profits, and a stationary price of corn, rather than a rising price of corn, and a stationary one of manufactures. And this I think accords best with experience, but it is of no great consequence which, except perhaps, as it might serve to distinguish a rise occasioned by demand from a rise by a fall of profits.

You did not tell me how you liked Mr. Torrens. Did you set him right as to the consistency of my bullion opinions.1

Ever truly Yours

T R Malthus

[3 ]Addressed: ‘D. Ricardo Esqr. / Upper Brook Street / Grosvenor Square.’ Postmarks: Hertford, undated; London, 19 April 1815. Tuesday the 18th is probably the date of the letter.

MS in R.P.

[1 ]Essay on Profits, above, IV, 17.

[1 ]Above, p. 205, nn. 3 and 4.