But  the  wages  of  labour  are  generally  higher  in  a  great  town
than  in  a  country  villagec  In  a  thriving  town  the  people  who
have  great  stocks  to  employ,  frequently  cannot  get  the  num-
ber of  workmen  they  want,  and  therefore  bid  against  one  an-
other, in  order  to  get  as  many  as  they  can,  which  raises  the
wages  of  labour  and  lowers  the  profits  of  stock. In  the  re-
mote parts  of  the  country  there  is  frequently  not  stock  suffi-
cient to  employ  all  the  people,  who  therefore  bid  against  one
another  in  order  to  get  employment,  which  lowers  the  wages
of  labour  and  raises  the  profits  of  stock."t

In  refuting  the  notion  which  was  at  one  time  preva-
lent, that  the  rate  of  interest  depended  on  the  plenty  or
scarcity  of  money,  Mr  Hume  had  previously  written  as  fol-
lows : —

"  High  interest,"  he  had  said,  "  arises  from  three  circum-
stances :  a  great  demand  for  borrowing ;  little  riches  to  sup-
ply that  demand ;  and  great  profits  arising  from  commerce :
and  the  circumstances  are  a  clear  proof  of  the  small  advance
of  commerce  and  industry,  not  of  the  scarcity  of  gold  and
silver. Low  interest,  on  the  other  hand,  proceeds  from  the
three  opposite  circumstances  :  a  small  demand  for  borrowing  ;
great  riches  to  supply  that  demand ;  and  small  profits  arising
from  commerce:  and  these  circumstances  are  all  connected
together,  and  proceed  from  the  increase  of  industry  and  com-
merce, not  of  gold  and  silver."  J


*  Wealth  of  Nations,  book  i. chap. 9. f  Ibid,

$  Essays,  part  ii. essay  4,


CHAP. VI. THE  RATE  OF  PROFIT. 277

And  again  in  the  same  essay, — "  Low  interest  and  low
profits  of  merchandise,"  Mr  Hume  had  further  observed,
"  are  two  events  which  naturally  forward  each  other,  and  are
both  originally  derived  from  that  extensive  commerce  which
produces  opulent  merchants,  and  renders  the  monied  interest
considerable. Where  merchants  possess  great  stocks,  whether
represented  by  few  or  many  pieces  of  metal,  it  must  frequently
happen,  that,  when  they  either  become  tired  of  business,  or
leave  heirs  unwilling  or  unfit  to  engage  in  commerce,  a  great
proportion  of  these  riches  naturally  seeks  an  annual  and  secure
revenue. The  plenty  diminishes  the  price,  and  makes  the
lenders  accept  of  a  low  interest. 