48 THE EMPLOYMENT OF CAPITAL 



beginning, and thus a new capital is created to 

 take the place of the old. 



It is not necessary to repeat here what has 

 been said of the replacement of stocks of food 

 consumed. The wear and tear of the rolling 

 stock and of the line give employment to fresh 

 sets of workmen, and these replace capital in the 

 same manner as the artisan who works for a 

 manufacturing employer. 



Even the distributors who retail goods in small 

 parcels proceed on similar lines. Buying goods 

 wholesale, they give in exchange for them some 

 portion of their credit at their bank. To any 

 individual trader his credit at a bank is a part 

 of his individual capital : in parting with that 

 credit he, as far as his business is concerned, 

 destroys a part of his capital. The goods he 

 has bought replace the destroyed capital by a 

 new capital. He sells these goods in retail ; this 

 is his work, the occupation of his life : and he 

 so does this that, when he sends the proceeds 

 to his bank, his credit there has become greater 

 than it was before. In other words, he has 

 replaced a smaller capital by a greater capital. 

 But he does so only after an interval, and in 

 consequence of work done by him. He then 

 again reduces his credit by purchasing fresh 

 goods wholesale; and this time he is able to 

 obtain a greater quantity than before : or, what 

 comes to the same thing, if he acquires at each 

 deal only the same quantity of fresh goods, he 

 can make the exchange of. credit for goods at 

 shorter and shorter intervals. Thus, wherever 



