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The relative amounts of these different forms of capital differ with the different departments of industry. In agriculture, the raw materials consist chiefly of the seed and fertilizers. The land itself is to be counted as a machine. The farmer's plant includes his farm, teams, tools, barns and other buildings, fences, and vehicles. Cows and sheep, kept for their products, belong to the machinery; animals bought or raised for fattening may be properly counted as materials. The supplies are the food provided for men and working or productive animals, with all necessaries for both.

In the mercantile industries, the goods bought and sold must be regarded as materials, which it is the merchant's business to collect from the several producers, and to store and distribute to his customers. Most of his active capital must, evidently, be in this form, while in agriculture the material used is comparatively small in amount. The merchant's plant is chiefly his store-house and its fittings, unless he is also an importer of goods, when his ships and other vehicles of transportation are to be reckoned as a part of his machinery.

195. Other classifications of capital.-Other classifications of capital have been employed by many economists, two of which it is just to mention. The first divides all capital into productive, or "capital in use," as some choose to call it, and non-productive. Productive capital agrees nearly with what we have named true or active capital. Non-productive is simply goods not employed in production, but devoted to consumption. The distinction is not well taken, since all wealth, unless hoarded, is in process of consumption,—that which is employed in production, as well as that which is being used to satisfy wants. The cotton-mill is consuming its machinery, as much as its fabrics are being consumed by those using them. Nor is the latter consumption unproductive, since those fabrics may be a part of the necessary supplies of its own operatives, or of those of other manufactories.

The second division is into fixed and circulating capital. By fixed capital is meant, as ordinarily defined, products which have reached their final form, and are not to undergo any other changes except in their consumption. Amasa Walker ("Science of Wealth") limits fixed capital to "property employed in production, which, from its nature, can not be advantageously changed to any other use than that for which it was originally designed." He, however, includes money in circulating capital, though it is evident that it can not be applied to any other use than that of money, except by destroying its character as money, and reducing it to bullion. Dr. Roscher says: "Fixed capital may be used many times in production by its owner; circulating capital only once." He classes a farmer's beasts of burthen as fixed capital, and his cattle intended for slaughter as circulating capital. It is obvious that the distinction between the two kinds is too vague and indeterminate to be of much use. All wealth which is in use in any way, whether as materials, as machinery, as supplies, or in ordinary use to satisfy human wants, is undergoing changes more or less rapidly, and, in most cases, disappears in one form to reappear in another, either in a new form of the same substance, or in a new value created by the use of the old. Bread is consumed at once, but a house may wear for a century. Both yield pleasure, and both nourish bodily strength and health as their proper and valuable result.

A farmer's oxen are slowly consumed in dragging the plow, while his fat cattle are killed and consumed in a few days, as meat upon the table, and both consumptions may be productive. The former produces grain which furnishes bread and seed for the next year; while the latter serves as food for this. It can not even be said that wealth tends constantly toward more fixed and permanent forms. With the increase of wealth the more permanent forms will increase in amount, but not more than the goods of immediate use and consumption. Permanency belongs to no form of value. All values begin

to decay and disappear from the moment they reach their full ripeness and completion. There is, it is true, in some articles, a value in their antiquity, but in these the value may be said to be still ripening. But objects valued for the use that is in them, and not for associations which they represent, change with years if not with use, and so their values gradually decay or are consumed. As J. S. Mill says, wealth is perpetuated like population-by constant reproduction. The majority of the wealth of any country is said to be the product of the year. The accumulated wealth of the United States probably does not, in any case, exceed five times the annual production.

CHAPTER XVIII.

RELATIONS OF CAPITAL AND LABOR.

196. Economic relations.-Capital has been seen in its origin, nature, and kinds. We advance, now, to see it standing beside labor, in mighty companionship,-the twin giants of modern arts and civilization.

The relations which bind these powerful agencies of industry together, in mutual helpfulness, have incidentally appeared along the track of the discussion, but their importance, if not their difficulty, demand for these relations a fuller exposition. But we must still, for a time, cleave to the purely economic side of the subject. It is the relations of capital and labor, not those of the capitalist and laborer, which are here in sight. The man behind the capital and the man behind the labor must finally be seen; but in this chapter both capital and labor may be regarded as belonging to one and the same man. The separation in ownership imports much in social science, but is unimportant in pure economics.

In the early stages of society and of the arts, capital is scarcely thought of separately from labor. The savage does not think of his bow and arrow, or of his knife and hatchet, as capital, nor calculate their share in the work of the hunt; but he knows full well their convenience, and will not willingly start on the chase without them. He does not count his hut as a producing agent, nor consider his store of corn and venison, dried for winter use, as giving him any larger power as a producer. He avails himself, indeed, of all these, but it

is as he uses his hands or feet, without a thought of their separate force or value. A long distance must have been traveled over the roadways of human progress before labor and capital began to be seen as separate economic agents; but their relations existed from the outset, and were the same in form and force that they are to-day.

197. Union of labor and capital necessary.—The first and simplest relation between capital and labor is that of their necessary union-their almost unity. Capital is simply the product of labor; but a product, as we have seen, in which labor has stored itself to unite with new labor. The idea which the first laborer sought to realize passed into the material product, as far as completed; and now it lies partly accomplished and visible in the work done, and partly an unrealized conception in the mind of labor. Thus, capital is the incomplete thought of labor; it is unfinished work. The felled oak is the initial idea of the finished ship.

To discard capital, labor must disjoin itself from all its products, and perpetually begin anew. Its half-finished work of yesterday must be thrown away, since, in the strictest sense, that, too, is capital to-day. The food it has stored, the tools it has prepared, and the material it has gathered must be abandoned, if it will not unite its efforts with capital, for these are the very forms that capital chiefly takes to help labor. The laborer who would be rid of capital and its helps, must disarm himself of his tools, disrobe himself of his clothing, turn himself into the street for his dwelling, and abandon all provisions he has made for his sustenance in labor; nay, he must fling aside his products as fast as they are sufficiently advanced to be valuable, for the very matter he works on turns to capital under his strokes. Even the man himself is, as a laborer, the stored-up toil of years of costly nurture.

But the union of capital and labor is something more than that of cause and effect of producer and products. forms into which these products are purposely wrought have

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