Economy； Preface； p。 1； 2nd Ed。）
〃It is self…evident；〃 says Mr M'Culloch； 〃that only three
classes； the labourers； the possessors of capital； and the
proprietors of land； are ever directly concerned in the
production of commodities。 It is to them； therefore； that all
which is derived from the surface of the earth； or from its
bowels； by the united application of immediate labour； and of
capital； or accumulated labour； must primarily belong。 The other
classes of society have no revenue except what they derive either
voluntarily or by compulsion from these three classes。〃
The proportions in which the whole produce is divided among
these three classes is said to be as follows： 〃Land is of
different degrees of fertility。〃 〃When； in the progress of
society； land of the second quality （or an inferior degree of
fertility to land before cultivated） is taken into cultivation；
rent immediately commences on that of the first quality； and the
amount of that rent will depend on the difference in the quality；
and the amount of that rent will depend on the difference in the
quality of these two portions or land。〃 ＇Principles of Political
Economy＇ Rent； therefore； or that quantity of the whole produce
of the country which goes to the landlords； is； in every stage of
society； that portion of this produce which is obtained from
every district belonging to a politically organized nation； more
than is obtained from the least fertile land cultivated by； or
belonging to； that nation。 It is the greater produce of all the
land which is more fertile than the least fertile land
cultivated。 To produce this surplus would not break the back； and
to give it up would not break the heart of the labourer。 The
landlord's share； therefore； does not keep the labourer poor。
The labourer's share of the produce of a country； according
to this theory； is the 〃necessaries and conveniences required for
the support of the labourer and his family； or that quantity
which is necessary to enable the labourers； one with another； to
subsist and to perpetuate their race； without either increase or
diminution。〃 Whatever may be the truth of the theory in other
respects； there is no doubt of its correctness in this
particular。 The labourers do only receive； and ever have only
received； as much as will subsist them； the landlords receive the
surplus produce of the more fertile soils； and all the rest of
the whole produce of labour in this and in every country goes to
the capitalist under the name of profit for the use of his
capital。
Capital which thus engrosses the whole produce of a country；
except the bare subsistence of the labourer； and the surplus
produce of fertile land； is； 〃the produce of labour；〃 〃is
commodities；〃 〃is the food the labourer eats； and the machines he
uses〃： so that we are obliged to give that enormous portion of
the whole produce of the country which remains； after we have
been supplied with subsistence； and the rent of the landlord has
been paid； for the privilege of eating the food we have ourselves
produced； and of using our own skill in producing more。 Capital；
the reader will suppose； must have some wonderful properties；
when the labourer pays so exorbitantly for it。 In fact； its
claims are founded on its wonderful properties； and to them；
therefore； I mean especially to direct his attention。
Several good and great men； whom we must all respect and
esteem； seeing that capital did obtain all the large share I have
mentioned； and being more willing； apparently； to defend and to
explain the present order of society than to ascertain whether it
could be improved； have endeavoured to point out the method in
which capital aids production。 From their writings I shall
extract some passages explanatory of its effects。 I must；
however； beg not to be understood as doing this invidiously。 The
only motive I have for selecting these authors； as the
representatives of the political economists； is； that they are by
far the more efficient and eloquent supporters of the doctrine I
do not assent to。
Mr M'Culloch says： 〃The accumulation and employment of both
fixed and circulating capital is indispensably necessary to
elevate any nation in the scale of civilization。 And it is only
by their conjoined and powerful operation that wealth can be
largely produced and universally diffused。〃 ＇Article 〃Political
Economy〃 in Supplement to Encyclopedia Britannica。＇
〃The quantity of industry；〃 he further says； 〃therefore not
only increases in every country with the increase of the stock or
capital which sets it in motion； but； in consequence of this
increase； the division of labour becomes extended； new and more
powerful implements and machines are invented； and the same
quantity of labour is thus made to produce an infinitely greater
quantity of commodities。
〃Besides its effect in enabling labour to be divided；
capital contributes to facilitate labour； and produce wealth in
the three following ways：
〃First。 It enables us to execute work that could not be
executed； or to produce commodities that could not be produced
without it。
〃Second。 It saves labour in the production of almost
every species of commodities。
〃Third。 It enables us to execute work better； as well as
more expeditiously。〃
Mr Mill's account of these effects； though not so precise；
is still more astounding。 〃The labourer；〃 he says； 〃has neither
raw materials nor tools。 These are provided for him by the
capitalist。 For making this provision the capitalist of course
expects a reward。〃 According to this statement； the capitalist
provides for the labourer and only； therefore； expects a profit。
In other parts of his book it is not the capitalist who provides；
but the capital which works。 He speaks of capital as an
instrument of production co…operating with labour； as an active
agent combining with labour to produce commodities； and thus he
satisfies himself； and endeavours to prove to the reader that
capital is entitled to all that large share of the produce it
actually receives。 He also attributes to capital power of
accumulation。 This power or tendency to accumulate； he adds； is
not so great as the tendency of population to augment and on
the difference between these two tendencies he and other authors
have erected a theory of society which places poor Mother Nature
in no favourable light。
Without troubling myself to quote more passages from these
authors； or to transcribe the opinion of other writers； I shall
proceed to examine the effects of capital； and I shall begin with
circulating capital。 Mr M'Culloch says； 〃without circulating
capital；〃 meaning the food the labourer consumes； and the
clothing he wears； 〃the labourer never could engage in any
undertaking which did not yield an almost immediate return。〃
Afterwards he says； 〃that division of labour is a consequence of
previous accumulation of capital；〃 and quotes the following
passage from Dr Smith； as a proper expression for his own
opinions：
〃Before labour can be divided； 'a stock of goods of
different kinds must be stored up somewhere； sufficient to
maintain the labourer； and to supply him with tools for carrying
on his work。 A weaver； for example； could not apply himself
entirely to his peculiar business； unless there was beforehand
stored up somewhere； either in his own possession； or in that of
some other person； a stock sufficient for his maintenance； and
for supplying him with the materials and implements required to
carry on his work； till he has not only completed； but sold his
web。 This accumulation must evidently be previous to his applying
himself for so long a time to a peculiar business。'〃
The only advantage of circulating capital is that by it the
labourer is enabled； he being assured of his present subsistence；
to direct his power to the greatest advantage。 He has time to
learn an art； and his labour is rendered more productive when
directed by skill。 Being assured of immediate subsistence； he can
ascertain which； with his peculiar knowledge and acquirements；
and with reference to the wants of society； is the best method of
labouring； and he can labour in this manner。 Unless there were
this assurance there could be no continuous thought； an
invention； and no knowledge but that which would be necessary for
the supply of our immediate animal wants。 The weaver； I admit；
could not complete his web； nor would the shipwright begin to
build his ship； unless he knew that while he was engaged in this
labour he should be able to procure food。 A merchant certainly
could not set out for South America or the East Indies unless he
were confident that during the period of his absence he and his
family could find subsistence； and that he would be able at the
end of his voyage to pay all the expenses he had incurred。 It is
this assurance； this knowledge； this confidence of obtaining
subsistence and reward； which enables and induces men to
undertake long and complicated operations； and the question is；
do men derive this assurance from a stock of goods already
provided （saved from the produce of previous labour） and ready to
pay them； or from any other source？
I SHALL ENDEAVOUR TO SHOW THAT THIS ASSURANCE ARISES FROM A
GENERAL PRINCIPLE IN THE CONSTITUTION OF MAN； AND THAT THE
EFFECTS ATTRIBUTED TO A STOCK OF COMMODITIES； UNDER THE NAME OF
CIRCULATING CAPITAL； ARE CAUSED BY CO…EXISTING LABOUR。
The labourer； the real maker of any commodity； derives this
assurance from a knowledge he has that the person who set him to
work will pay him； and that with the money he will be able to buy
what he requires。 He is not in possession of any stock of
commodities。 Has the person who employs and pays him such a
stock？ Clearly not。 Only a very few capitalists possess any of
those commodities which the labourers they employ consume。
Farmers may have a stock of corn； and merchants and shipowners
may have a few weeks' or months' supply of provisions for their
seamen； according to the length of the voyage they are to
undertake； but； beyond this； no capitalist possesses ready
prepared the commodities which his labourers require。 He
possesses money；