The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1868-08-08
From the Lon5cn Bee Hiv e.
THE A d OF SOCIAL SCIENCE.
PRO FIT.


Capital being necessary for the production
Of wealth, those that possess it are often IN
duced TO employ il in the production or dis
tribution Of wealth, in the hopes Of adding
to 1t F; the name given to such increase being
called their profit.
Profit, in fact, may be said to be the CAPT.
talist's share Of the wealth produced. as
wages is the lsborer's share, and consists of
the surplus that remains to him after all the
expenses incurred in his manufacture or
business are paid. These consist-acco
ing TO the kind Of business-of his rent. the
cost Of his materials, tools, machinery, the
wages Of labor, &c, the name Of gross pro-
fit being given 10 the whole Of his receipts !;
and Of net profit to that which remains to
him when all his outgoings are met.
The amount of profit greatly varies in DIFF
ieTent manufactures, trades, or occupations
some Of them requiring larger profit than
others to indemnify them for the great ex-
pense OF outlay Of capital required in them.
Some Of them also require large profit OF
account of the long credit they are required
to give; and others on account of the great
labor needed in vending out their commod-
ties in small quantities. Others again ere
content with a moderate profit on their pro-
auctions on account Of the large amount they
dispose Of and others by reason Of their
quick sales and the rapid turning over Of
their capital.
The rate Of profit, or the rate per cent. on
every flO0 III generally largest in the most
dangerous, repulsive, and unhealthy employ
ments, as the competitors 10 them are gener-
ally fewer"
The rate Of profit is also generally higher
IN retail businesses than in wholesale ones.
as the labor required in disposIng OF their
articles in small quantities lie much greater
and the pretit they obtain NAV be said 10
combine wages with il, to indemnify them
for that trouble.
Large profits, however in any business is
almost certain 10 attract other capitalists in
to it in order TO obtain share OF such pro-
fit; unless, indeed, the persons carrying il
on possess some manufacturing secret, OF
patent right, which others cannot command:
OF that il requires an enormous capital for
carrying It on, or special business talent for
conducting it. Otherwise the competition
between capitalists is ever tending 10 equal
ize profits, as the competition between labor
ers tends to reduce wages.
The lowestrate OF profit, however, which
will induce capitalist to continue TO carry
on his business or manufacture however he |
may do SO for time 10 the hopes of better |
trade--is such as will repay him for the use
Of his capital, equal to the interest or return |
he could otherwise procure for Il; sufficient |
to lernGnerate him for the superiniendence |
or management Of his capital equal to what
his abilities would otherwise command and |
sufficient to compensate him for the risk he
runs in employing it in his business when
he might secure it against risk. Tb1se three
combined form the lowest rate Of profit that /
. manufacturer or person In business is I
likely 10 be content with for any length OF
time.
The capitalists, however. most likely to
-ealise the largest profits are those who have
the largest amount Of intelligence, business
tact and Judgment, combined
With the largest amount of capital. Their
knowledge and ability enabling them to dis
cover and produce whals-er i best suited h
to the wants and tastes Of their customers
their large capital en-. bling lbem 10 provide
means tor producing the article or commod-
" st the lowest cost; to pufchase their ma
eTils N tho best ard cheapest markets
ind their Judgment and business habits
generally aiding them 10 discover the best
market for disposing Of their productions.
Great losses oilen take place, and ini7ict r
'sfions injury on society, from persons en-
'arkinE In business--not only without The