F.H.Giddings' corrected 3 page draft of reply to J.B. Clark dated March 19,1890.

     F. H. Giddings' corrected 3 page draft of reply to
     J. B. Clark dated March 19, 1890.

Relations of
Rent[,] Wages[,] Etc. to Price.
 Landlordism may be a factor in price
making, but rent can not be.
Rent follows price, rising with
it and falling with it.
 To carry this line of thought
a step further, I can unhesitatingly
accept the proposition in the ap-
pendix to your paper on a scien-
tific law of wages, that the same
reasoning that proves that rent is
not a factor in price making will
prove that interest and wages are
not elements in price making, pro-
vided you will let me take it
literally! Wages and interest
are not factors in price mak-
ing. They are effects of price
making; they rise and fall
with price, as you yourself
have most convincingly dem-
onstrated in The Philosophy of
of Wealth, p.114 and p.128. It is not wages but
the cost of production of the
last necessary increment of efficient labor that
is a factor in price making (over) it
is not interest but the cost
of production of the last necessary
increment of capital that acts on
price (over). In like manner
it is not rent but
the cost of extending the margin
of cultivation that lifts the
price of agricultural produce.
 Here you see one important appli-
cation that I am may make
bye and bye of my doctrine of natural wages
as authored in the
Modem Distributive Process.
 In this distinction you see
an application that I may
make of my theory of the
Cost of Production of Capital.