CHAPTER III 



ON CAPITAL 



Third proposition. — To provide employment, a 

 very careful reform of the tariff will probably be 

 required in due course. For the clearer under- 

 standing of this proposition certain preliminaries 

 are necessary. 



Proposition A. — The productive national capital 

 is the total national capacity to increase values, 

 and thus produce all articles necessary to the 

 nation. The productive capital of a member of 

 the nation may be his total capacity to increase 

 values, and thus produce some article or articles, 

 or parts of them ; or it may be the total value of 

 his investments ; or it may partake of both kinds. 



There are different ways of dividing capital 

 into classes. Thus, it might be described as 

 reproductive and non-reproductive. The food of 

 the workman is reproductive capital ; the capital 

 which has become tobacco is non-reproductive. 

 But as it is only desired to understand what use- 

 ful capital really is, and not to compose absolutely 

 exhaustive definitions, the number of classes may 

 be limited to three : labour-capital, the capital 

 that sets labour to work, and invested capital. 



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