ee WA AA 
CarrutHErs.—On some of the Terms used in Political Economy. 29 
honesty of governments is the only reason why gold should not be given up 
as the medium of exchange and bank notes substituted, the number issued 
to be limited in accordance with a fixed and unvarying rule. The whole of 
the enormous expense of gold-mining would be saved to the world and the 
existing stock of gold made available for use in the arts. In any case, 
whether it consists of metal or paper, money has no intrinsic worth, being 
a mere implement to assist in the distribution of wealth. 
Implements should also be deducted; their costliness is not an element 
of prosperity but only an indication of past privations. Their efficiency 
does influence production, but cannot be valued in money, as it is the result 
of thought and knowledge, as well as of labour. The engines of one of the 
Cunard steamers of the present day cost no more labour to produce than 
did those of five-and-twenty years ago; they will, however, develope the 
same horse-power with one-third of the cost of coal and repairs. As far as 
they are concerned the “capital of the country’’ has trebled, but no indica- 
tion of the increase would appear in a return of the machines in use and 
their cost. 
In short, there is no means of comparing the prosperity of two different 
countries or the same country at different times. Present prosperity 
depends on the stock of direct wealth in actual use or stored ready for 
use, and on the number of men, such as actors and singers, employed in 
producing for the immediate gratification of the community enjoyments not 
capable of being stored. Future prosperity depends on the number of men 
who are employed in producing a further stock, and in the efficiency of their 
labour. The only further requisites are, that the choice of things to be 
produced shall be judicious and their distribution moderately equal. 
A large part of capital consists of what is generally called floating 
capital. Its ownership is attested by bank accounts, promissory notes, and 
other acknowledgments of indebtedness. At first sight it would appear that 
this was not included in any of the forms above enumerated, but the 
owners of floating capital really own a share of the wealth nominally owned 
by those who are indebted to them ; they do not, as is generally supposed, 
own money of which the supply in existence is comparatively small. 
It has been assumed throughout that the owner of capital applies it with 
average skill and energy, in such way as shall give him a right to share in 
the future wealth ; the implement-owner must take care that his machines 
are kept fully employed; the employer of labour must keep his men to their 
work, and must direct their labour judiciously ; the landlord must find 
tenants or farm the land himself; the fund-holder has nothing to do but 
to draw his dividends when they become due—his claim is the reward of 
we 
