34 ON CAPITAL 



in foreign securities. In the latter case they 

 form no part of the national capital, though here, 

 as elsewhere, the interest, when paid and brought 

 home, does form part of the national capital. In 

 the former case, provided they are not merely 

 a portion of a State debt, the investments are a 

 part of the national capital. 



There are many persons who derive their 

 whole income from invested capital. Some of 

 these have their capital invested entirely at home, 

 others have both home and foreign investments, 

 and some, no doubt, have almost the whole of 

 their capital invested abroad. All these persons, 

 as a matter of course, employ domestic labour, 

 but they are not employers in the industrial 

 sense. Those who have all their capital invested 

 abroad bring into the country in which they 

 live the interest on their principal, and add a 

 portion thereof to the national capital. The other 

 portion, which defrays their necessary expendi- 

 ture, though it may appear to give employment, is 

 an addition to the national capital only in so far 

 as that employment creates a demand for com- 

 modities. 



It is thus quite clear that there is a vast 

 difference between national capital and collected 

 individual capital, and hence it was necessary, 

 in stating Proposition A, to divide it into two 

 parts. This difference is twofold. In the first 

 place, the total national capital is not by any 

 means the same as the total capital of the in- 

 dividual members of the nation. In the second 

 place, the mobility of national capital is not 



