• John Locke, Works (1726), p. 20. "The intrinsic natural worth of



IN A SYSTEM OF NATIONALISM 161

ideas in very similar language.* But Locke contributed
greatly to the establishment of the labor theory of market
values in another place, where, in seeking for the sources
of wealth and finding them in labor and land, he wrote:
"Labor makes the greatest part of the value of the things
we enjoy in this world," and stated, in applying this truth
to particular instances, "bread, wine and cloth are things
of daily use, and great plenty; yet notwithstanding what-
ever bread is worth more than acorns, wine more than
water, or cloth and silk than leaves, skins, or moss, that is
wholly owing to labor and industry." " The labor intended
by Locke in this statement included all expenditure of
human effort necessary to the production of the raw
materials, the construction of machinery and the working
up of the finished product; in comparison with this mass
of labor, he said, "the ground which produces the materials
is scarce to be reckoned in"; * he believed that land, one
of his sources of wealth, could well be disregarded, and-
that we might conclude, "it is labor that puts the difference \
of value on everything." *

Sir WilHam Petty conducted his analysis of value along
similar lines. The origin of wealth, he, like Locke, believed
to be land and labor; ^ and, again like Locke, he thought
that of these by far the more important was labor. He
drew the same distinction between intrinsic and extrinsic
values, finding the cause of the former in the utility of the
goods and the cause of the latter in the relation of supply

anything consists in its fitness to supply the necessities or serve the con-
veniences of human life; and the more necessary it is to our well-being
the greater is its worth. . . . The marketable value of any assigned quan-
tity of two or more commodities, are pro hie and nunc equal, when they
will exchange for one another."

' John Law, Money and Trade (1705), p. 12.
