WEALTH OF NATIONS. 147 



(3.) From 1640 to 1776 Dr. Smith does not consider 

 that any material change has taken place in the relative 

 value of silver and other commodities ; and he examines 

 with much particularity, and in great detail, the facts on 

 which the prevailing suspicion rests, and traces the pro- 

 gress of the supply and demand from the produce of the 

 mines on the one hand, and the advance of society on the 

 other. He also has occasion to show how groundless 

 are the notions of those who regard the precious metals 

 as constituting wealth, that is all wealth, when they are 

 but a commodity valuable for use or for ornament, but 

 still more valuable for aiding the commerce of the world 

 as an indispensable medium of exchange. 



II. The subject of the second book is stock its nature, 

 accumulation and employment; and it consists of five 

 several subdivisions the distribution of stock, the nature 

 and use of money, the profitable employment of stock by 

 its owners, its profitable employment by others on loan, 

 and the various employments of stock. Each subdivision 

 is considered in one of the five chapters into which the 

 book is distributed. 



i. The stock which any one possesses is of two kinds 

 that which he retains for his support, or which he has 

 exchanged for articles of present use, and this remains in 

 his possession, or which he takes from his revenue arising 

 from the other portions of his stock : this is the second 

 kind, and is used in obtaining a profit by its employment. 

 This second kind is commonly called capital, which is of 

 two kinds fixed and circulating ; the former (fixed) 

 consisting of capital vested in land, or tools, or ma- 

 chinery, or manufactures, or shipping, which . yield pro- 

 fit without being exchanged or parted with ; the latter 



L 2 



