94.: malthus to ricardo2[Reply to 93] - David Ricardo, The Works and Correspondence of David Ricardo, Vol. 6 Letters 1810-1815 
The Works and Correspondence of David Ricardo, ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 6 Letters 1810-1815.
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First published by Cambridge University Press in 1951. Copyright 1951, 1952, 1955, 1973 by the Royal Economic Society. This edition of The Works and Correspondence of David Ricardo is published by Liberty Fund, Inc., under license from the Royal Economic Society.
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malthus to ricardo
[Reply to 93]
E I Coll April 23. 1815.
My dear Sir,
We will dine with you on monday with great pleasure, but I fear we cannot engage for sunday, and as we shall only stay in Town till tuesday, we will not put you to the trouble of a bed, though we are much obliged to you and Mrs. Ricardo for the kind offer. I will endeavour to breakfast with you one or two of the mornings I am in Town.
We do indeed differ materially as to the mode by [which] a large additional tract of rich land would bring things back to the state contemplated in the early parts of your table. If as you suppose more capital would go to manufactures, from the impossibility of employing it with advantage on the land, no two cases could well have less resemblance; and nothing certainly but the continued absorption of fresh capital on the land, to supply the wants of a rapidly increasing population could put a manufacturing country into the state [of] America. If any cause were to stop the rapid increase of population, the profits of stock would almost immediately fall.
Surely you are wrong in your view of the subject. For what is it in fact that you maintain. It is this that a given quantity of food, fallen in relative value compared with manufactures to one half, should not only exchange for the same mass of manufactures as before, but a much greater mass. Under the circumstances that you suppose it is contrary to every principle of supply and demand that your manufactures should keep up their price. At the old prices and in such quantities it is not in the nature of things that there should be a demand for them.
Surely I have always maintained that when corn rises, though other commodities would rise they would not rise in proportion. I do not see then why it should be contrary to my principles, as you intimate, that manufactures should rise in price from the comparative scarcity of capital, and consequent high profits; while the same scarcity of capital should not raise the price of corn, on account of the superior fertility of the land employed. You ask whether the natural consequence of employing more capital in manufactures, is not their stationary price. I should say that according to the usual doctrines of political Economy, it would be on the contrary a fall in their price, from a fall of profits.
The more I consider the subject, the more I am inclined to think that in the natural progress of accumulation the fall in the profits of stock employed in manufactures is occasioned rather by the fall in their price owing to the abundant supply occasioned by such accumulation, than to the rise in the price of wages.
The bell rings I must finish
Ever truly Yours
T R Malthus