200 
Of the Influence of Capital [July, 
idea is given of. how capital acts in production ; its distinctive property, that of 
only being brought into operation, when a saving is thereby effected in expenditure, 
is kept completely out of sight ; and the circumstance also is unnoticed, that by 
the influence of labour alone, how greatly soever accumulated, and applied at 
different times, it would be utterly impossible to obtain similar results to those 
which capital yields. 
If, as I conceive, there can be no employment of capital, except in cases where 
the amount of producing labour can be diminished, in a degree, at least, equal to 
the amount of the profits ; then it appears, that in no case should we be justified in 
supposing, that the cost of a product can have an addition for profits tacked to it ; 
noi can it be necessary that a reduction, equal to profits, should be made from the 
workmen. When a capitalist sinks his accumulations in production, the cost to 
consumers may not, in the first instance, be reduced ; although to the productive 
capitalist it must be lessened: but if the saving, effected through the means of 
capital, be any thing considerable, the consumers will ultimately obtain the pro- 
ducts on more easy terms, for the reasons already adduced, where I account for 
falls of price in wrought wares. 
Capital being that portion of wealth which is devoted to facilitating and increasing 
production, the motive for its accumulation will exist in its fullest force, when, 
through some recent improvement, a saving has been effected in productive outlay; 
and when, in consequence, such a change has been brought about in the relations 
of outlay and net return, as indicates the possibility of increasing the capitalist's 
income, with increases of his productive outlay. With the progress of accumulation 
and employment to capital, the power of investing fresh accumulations will gradu- 
ally be diminished ; and the net proceeds, resulting from the employment of any 
specific quantity, will be gradually becoming less ; while, at the same time, the 
powei of making accumulations will be becoming greater, on account of the 
increasing richness of the class of capitalists; and this difficulty of finding new 
investments for capital, together with this falling rate of profits, will regularly 
proceed, till all openings for the employment of new accumulations have been 
filled; and this will have been effected, when capitalists find it impossible any 
longer to increase their share of the increasing national income. The enrichment 
consequent on the improvement in production, will now have become complete; 
and no further addition can now be made to the productive capital sunk in business, 
till, from other improvements, further facilities be afforded for obtaining similar 
results, with less outlay. Should such discoveries be made, and in a free and 
enlightened society they may be of daily occurrence, national wealth will again 
e progi e i,si\ e ; the rate of profits will again be raised ; and profitable employment 
will be again obtainable for new accumulations. 
The progress of national wealth does not then depend on the mere progress of 
accumulations, ready to be appropriated to production, as we are continually told 
by the teachers ot Political Economy ; but on the power enjoyed of finding profit- 
able investments for new accumulations : and nations are not impeded in their 
advance, by that loss ot the power of accumulation, which writers on the subject of 
wealth lead us to attribute to the continual falls which they conceive must be taking 
place in the rate of profits ; the rate of profits being considered, in their systems, as 
inevitably sinking, till the whole sum realized becomes an evanescent quantity. On 
the contrary, it appears, that when profits have fallen to their lowest permanent 
rate, it is then that accumulators will be found most eager and ready to contend 
or employment for capital, whenever new investments occur; and it is then, that 
e^ery projected enterprize, however wild, will find speculators ready to engage^ 
