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Adult Suffrage

Answers to Correspondents


1. In Adam Smith's day 3 per cent, was the usual rate of profit for sound security. To-day L.C.C. stock, second only to Consols, are issued at 3 ½ per cent. In many cases as large rates as ever are made to-day. The Cold Storage Co. paid over 100 per cent., some of the electric power companies have made similar profits, while some of the catering firms pay dividends of 30 to 40 per cent year after year.

The amount of profit apart from the rate, has of course increased enormously with the increased productiveness of labour.

2. Surplus value is the portion of wealth remaining after paying wages, cost of raw material and of machinery used up in the given time. But this as a rule undergoes further deduction for rent for the land, interest, and rates and taxes. The portion of the surplus value that remains is the capitalist's Profit. Profit, therefore, is only a part of surplus value.

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