Political Economy Designed As a Text book for Colleges

Cover Political Economy Designed As a Text book for Colleges
Political Economy Designed As a Text book for Colleges
John Bascom
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The term profits is used in popular speech with a much broader signification than in Political Economy. In the first, it stands for the whole complex return that recom- penses capital, the labor of its superintendence, and the risks that pertain to its employment. In the last, it repre- sents but one of these, the rate per cent, which expresses the yearly value of use of the capital. The wages of the labor of superintendence and the cost of insurance are distinct items. This rate per cent, in t...he several methods of employing capital, will be very nearly equal. If it were not so, capital would rapidly transfer itself from the least to the most profitable employment, till the equilib- rium of profits was restored, and this with much greater facility than in the case of labor. Capital, accumulated in the reservoirs of banking institutions, will flow out in any direction, according to the demand of labor ; and it is not necessary that the same labor which formerly accompanied it should be transferred with it to the new use.

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