WEALTH OF NATIONS. 219 



on which the prevailing suspicion rests, and traces the 

 progress of the supply and demand from the produce 

 of the mines on the one hand, and the advance of 

 society on the other. He also has occasion to show 

 how groundless are the notions of those who regard 

 the precious metals as constituting wealth, that is all 

 wealth, when they are but a commodity valuable for 

 use or for ornament, but still more valuable for aiding 

 the commerce of the world as an indispensable medium 

 of exchange. 



II. The subject of the second book is stock its 

 nature, accumulation and employment; and it consists 

 of five several subdivisions the distribution of stock, 

 the nature and use of money, the profitable employ- 

 ment of stock by its owners, its profitable employment 

 by others on loan, and the various employments of 

 stock. Each subdivision is considered in one of the 

 five chapters into which the book is distributed. 



i. The stock which any one possesses is of two kinds 

 that which he retains for his support, or which he 

 has exchanged for articles of present use, and this re- 

 mains in his possession, or which he takes from his 

 revenue arising from the other portions of his stock : 

 this is the second kind, and is used in obtaining a profit 

 by its employment. This second kind is commonly 

 called capital, which is of two kinds fixed and circu- 

 lating ; the former (fixed) consisting of capital vested 

 in land, or tools, or machinery, or manufactures, or 

 shipping, which yield profit without being exchanged 

 or parted with ; the latter (circulating) being vested in 

 goods which, to yield a profit, must be sold or ex- 

 changed. The stock of the community consists of the 

 same two subdivisions stock used for support, and 

 capital or stock employed at a profit ; and the national 

 capital in the same way is either fixed, being of four 

 kinds machines or instruments, buildings used for 

 profit, improvements in land, acquired talents, useful 

 and profitable, or circulating, likewise of four kinds 



