148 ADAM SMITH. 



(circulating) being vested in goods which, to yield a pro- 

 fit, must be sold or exchanged. The stock of the com- 

 munity 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 currency, provisions in the hands of the 

 raisers of them, unmanufactured materials of articles of 

 consumption, and manufactured articles of consumption. 

 But the circulating capital of the community differs 

 from that of an individual ; because the latter is wholly 

 excluded from his net revenue, his profits, while the 

 former may enter into the whole trade of the community 

 and be replaced with a profit. 



ii. The only part of the circulating capital of the 

 community which cannot be maintained without dimi- 

 nishing the net revenue is the money of the community- 

 It resembles the fixed capital, first, in requiring like 

 machinery an expense for keeping it up; secondly, in 

 making no part of revenue; and, thirdly, in adding to 

 the revenue by improvements which may economise its 

 use. Under this head Dr. Smith discusses the prin- 

 ciples of banking and of currency. 



iii. The capital employed by the owner is distin- 

 guished by Dr. Smith into two kinds, as it puts in 

 motion and maintains productive or unproductive labour. 

 In this phraseology he follows the French Economists, 

 but he differs materially from them in his classification of 

 labour, considering as productive important branches of 

 what they consider as unproductive. The Economists 



