CHAPTER IV 



THE EMPLOYMENT OF CAPITAL 



Proposition B. — Capital of higher value is created 

 by the destruction of capital of lower value : this 

 is the true employment of capital. Capital is also 

 in certain ways sent abroad. It is also mis- 

 employed. 



From the definition of capital in Proposition A, 

 the proper method of employing it, from the 

 industrial point of view, immediately follows. 

 It should be so employed as to increase to the 

 utmost the national capacity for enhancing values, 

 and thus producing all articles necessary for the 

 nation. 



Then comes the question, how the national 

 capacity in the required direction is to be in- 

 creased. It is the very same thing as increasing 

 capital itself; and to increase capital there is only 

 one legitimate way, all other roads ending in 

 nothing. 



Whatever tales be spread about to raise the 

 prices of stocks and shares, or to sink them 

 to a paying level for purchasers, these manoeuvres 

 do not touch, and never can touch, the capital 

 itself. The shares of a particular gold mine may 



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