CannuTHERS.—On some of the Terms used in Political Economy. 5 
Mill frequently uses it where it can have no other meaning than this 
notwithstanding that he has defined it to be “a stock previously accumu- 
lated of the product of former labour,” —a definition which scarcely differs 
from that given of wealth; for, except land and its natural productions, 
nothing possesses exchangeable value which is not the product of former 
labour. 
Fixed and Circulating Capital, 
Capital, again, is subdivided into “fixed” and “circulating.” Mill's 
explanation of these terms, given in Book I., chap. vi., is too long for 
quotation, and is very far from being clear or exact. His summation is, 
however, that the result of a single use of circulating capital must be a 
reproduction equal to the whole amount of the circulating capital used, 
and a profit besides; and that with fixed capital, such as machinery, 
this is not necessary, as it is not wholly consumed by one use. 
If capital means wealth of any kind, this sentence is absolutely without 
meaning. How can, for instance, the result of a single use of a sack of 
coals in a locomotive engine be a reproduction equal to a sack of coals and 
a profit besides? If, however, capital has the meaning above given, of a 
right to a share of the wealth of the community, the sentence becomes 
intelligible. The use of the coals must reproduce to the owner a right to 
some other wealth which he values more highly ; and if the coals and the 
other wealth be both compared with a common standard of value, like 
money, the use of the coals must reproduce to the owner their price and a 
profit besides. Capital, with this meaning, can have nothing to do with 
the production of wealth except indirectly, and its subdivision into fixed 
and circulating does not seem to serve any good purpose in political 
economy. s 
There is, however, a natural division which cannot be disregarded. 
Some things, such as bread, wine, dwelling-houses, clothes, ete., etc., are 
useful for their own sakes ; the production of these is the end and aim of all 
labour and sacrifice, or at least of all that falls within the province of political 
economy ; they may be called direct wealth. Others are of no use for their 
own sakes; they are useful only by co-operating with human labour in the 
Production of direct wealth; they are land, steam-engines, ploughs, coal 
when used to drive an engine, warehouses, ete., etc. ; these may be called 
implements. Of course, neither direct wealth nor implements, if the pro- 
duct of human labour, are made complete at one operation ; they first pass 
through the stage of materials, such as corn, wool, iron, wood, ete. ; but 
it is not necessary to place materials in a separate class, as they may be 
classed with the final products of which they eventually form a part. 
