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This book is a companion volume to the Royal Economic Society edition of
The Works and Correspondence of David Ricardo, edited by Piero Sraffa with the
collaboration of Maurice Dobb. It completes the record on Ricardian value
theory by showing Ricardo's reaction to Malthus's pamphlet The Measure of
Value Stated and Illustrated of 1823. Ricardo's Notes are, in Sraffa's words, 'the
only considerable item' not appearing in the Royal Economic Society edition of
his works. In addition, the recent publication by Cambridge of the variorum
edition of Malthus's Principles of Political Economy, edited by J. M. Pullen, makes
it possible to understand Malthus's pamphlet as an intermediate step between
the 1820 and 1836 editions of the Principles.
In his introduction Pier Luigi Porta highlights the place of these Notes in the
development of Ricardo's thinking. When taken with Ricardo's paper on
'Absolute Value and Exchangeable Value', these Notes provide the essentials of
Ricardian value theory. The style of the present edition conforms throughout
with Volume II (Notes on Malthus) of the Sraffa edition of Ricardo's Works.
David Ricardo:
Notes on Malthus's
'Measure of Value'
David Ricardo:
Notes on Malthus's
'Measure of Value'
Edited by
PIER LUIGI P O R T A
Published in the United States of America by Cambridge University Press, New York
www.cambridge.org
Information on this title: www.cambridge.org/9780521112536
A catalogue record for this publication is available from the British Library
Introduction page ix
Index 60
vn
Introduction
1
London: John Murray. Advertised as 'Published this day' in the Morning Chronicle, 24 April
1823; no indication of price. Priced at 3s. 6d. in the Monthly Literary Advertiser, 10 May 1823.
2
Ricardo's letter 523 in The Works and Correspondence of David Ricardo, eleven volumes, edited
by Piero Sraffa with. the collaboration of M. H. Dobb, Cambridge University Press
(henceforth quoted as Works), vol. IX, p. 280. For Malthus's sense, cp. also Malthus's Measure
of Value, pp. v, 13-16; below, pp. 6, 16-17.
3
Ricardo died on 11 September 1823 and his last letter (to Mill) was of 5 September. Before
April 1823 the last letter in which Ricardo dealt extensively with value was to McCulloch, 29
January 1821 (letter 418, Works, vol. VIII, pp. 342-5).
ix
Introduction
while, at the same time, he was also compiling his extensive commentary on
Malthus's Principles.4
The significance of Ricardo's final reflections on value could not be fully
appreciated before the appearance of Piero Sraffa's edition of Ricardo's
works. In particular, the discovery, in 1943, of the 'Mill-Ricardo Papers'
brought to light Ricardo's very last paper which - according to Sraffa - 'has
importance since it develops an idea which existed previously in Ricardo's
writings only in occasional hints and allusions: namely, the notion of a real
or absolute value underlying and contrasted with exchangeable or relative
value'.5 Among the same set of papers a further item was found, namely a
series of seventeen rough Notes on Malthus's pamphlet on the Measure of
Value. Curiously, however, these Notes were not included in the Sraffa
edition, where they are described as 'the only considerable item' left behind.
They were first published in Padua by a leading economic journal in Italy.6
4
Notes on Malthus's Principles of Political Economy, in Works, vol. II. On Ricardo's concern with
value, see Works, vol. I, Introduction, pp. xxx and ff.
5
Works, vol. IV, p. 359. Ricardo's last paper is published in Works, vol. IV, pp. 361—97 (rough
draft) and 398-412 (later version), with two minor additions on pp. 396—7 and 399, fn.),
under the title of'Absolute Value and Exchangeable Value'. The significance of the concept
of 'absolute value' is also emphasized by the Sraffa edition in Works, vol. I, pp. xliii and
xlv-xlvii.
6
See Rivista Internazionale di Scienze Economiche e Commerciali-lnternational Review of Economics
and Business, vol. XXVI (1979), pp. 7-35.
The proper place for Ricardo's Notes should have been in Works, vol. IV, first published
in 1951, among the 'Notes from Ricardo's Manuscripts 1818—23', immediately after the
Notes on Blake and before 'Absolute Value and Exchangeable Value'. They are, in fact, only
described in vol. X, app. B, containing the final survey of Ricardo's manuscripts, which
appeared four years later, in 1955 (see in particular ibid., p. 392). It is curious that James Mill -
almost certainly independently of Ricardo - left a series of notes on Malthus's 1823 value
pamphlet. The MS of Mill's Notes belongs to the 'Mill-Taylor Collection', vol. LIX, fol. 14
at the London School of Economics. A reference to this MS is made in D. Winch (ed.),
Selected Economic Writings of James Mill (Edinburgh, 1966), p. 191, fn.
7
Works, vol. X, p. 391.
Introduction
xi
Introduction
now given access to the relevant documents preserved among the 'Keynes
Papers'. The Mill-Ricardo Papers were found at the beginning ofJuly 1943
in Ireland through the good offices of Professor Hayek, who was then
working on the biography of John Stuart Mill. The discovery occurred in
the house of Mr F. E. Cairnes, the son ofJohn Elliot, the economist and close
friend of John Stuart Mill. The find was described in a letter of Mr C. K.
Mill from Dublin of 2 July 1943. This stated that an 'old box' had just been
discovered with 'a number of letters which may be of interest to you. They
have not yet been sorted out, but from a first inspection they appear to
contain a beautifully written manuscript by Ricardo, a few letters between
him and James Mill . . . When these are sorted out I shall pass them on to
Professor O'Brien.'11 The letter was addressed to 'Professor F. A. Hayek,
The London School of Economics and Political Science, The Hostel,
Peterhouse, Cambridge'.12 Piero Sraffa immediately prepared a copy of this
letter and sent it to Keynes in London. 'My dear Maynard', he wrote on 5
July, 'this is the most sensational news there has ever been about Ricardo.
His letters to Mill have been found! And a MS by Ricardo in addition.'13 Both
Professor George O'Brien and Lord Keynes compared this find with the
famous discovery of James Boswell's MSS diaries, which had occurred in
Ireland in the inter-war years, and had aroused an immense stir.14
The main items on value which came to light among the papers are the
following: (1) a draft of the paper on 'Absolute Value and Exchangeable
Value', (2) an unfinished later version of the same paper, (3) a series of rough
11
Letter of Mr C. K. Mill, a son-in-law of Mr F. E. Cairnes, to Professor Hayek. Copy in
'Keynes Papers' 1, (quoted in Opere di David Ricardo (Turin: Utet, 1983), p. 84.
12
The London School had moved to Cambridge during the war.
13
MS in 'Keynes Papers' (quoted in Opere di David Ricardo): 'The enclosed copy — Sraffa adds —
of a letter received today by Hayek from C. K. Mill, of Dublin, tells its own story . . . [T]his
letter of Mill is in reply to one of Hayek in which he told him that I was editing Ricardo for
the R.E.S. and was anxious to find these letters, and enquired on my behalf Hayek's letter
has not been found. However, the originals of the new materials may not have reached
Piero Sraffa until after the war. A hint of this is given also by Professor Hayek, who, in a
private letter of 29 June 1979, from Obergurgl, Tyrol, writes to the present editor: 'All I
clearly remember is that when later, almost certainly when I gave the Finlay Lecture at
the University of Dublin in December 1945, Sraffa asked me to bring some papers kept
there for him and which he did not wish to entrust to the post.'
14
Keynes had written to O'Brien at Sraffa's suggestion: 'It would be tactful to write, at the
same time, to O'Brien, who has made the discovery and been helpful to Hayek: so as to
avoid the impression that we are stealing a march on him, and the danger of a competitive
situation arising, as it happened with Hollander.' Letter of 5 July 1943 (quoted in Opere di
David Ricardo); cp. also P. L. Porta, 'How Piero Sraffa Took up the Editorship of David
Ricardo's Works and Correspondence', The History of Economics Society Bulletin, VIII (1986),
p. 35, n. 1.
xii
Introduction
Notes on Malthus's Measure of Value. All these MSS are now in the
possession of the University Library at Cambridge.
The Notes were evidently drafted by Ricardo on reading and studying
Malthus's new pamphlet and the MS consists of fourteen pages in Ricardo's
hand; it can be dated from the fact that two pages are written on the back of
two letters addressed to Ricardo, postmarked 7 April and 7 May 1823. Some
of the Notes are echoed by Ricardo's letter to Malthus of 29 April 1823.
xiii
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