of the laws. Lawyers, therefore, are of essential benefit to the community. If there were no persons of this profession, every man must spend much time in the study of the laws, in order to know how to maintain his rights. But it is much cheaper to hire the service of a lawyer when it is wanted, who, with his knowledge of the law, may serve a whole neighborhood.

$769. The physician also is a productive laborer. By his knowledge of the laws of health, he may cure the sick, and enable them to work; so that there is more labor performed than there would be if there were no physicians. Hence they must be ranked among the productive classes of the community.

§ 770. But how, it may be asked, do clergymen contribute to the production of wealth? Without Christian teachers, men would doubtless be less virtuous and industrious than they now are; and, consequently, less labor would be performed. As vice should increase, the laws would be oftener broken, and the rights of men would be more insecure. The prevalence of religious principles affords a more effectual security to the rights of person and property, than the wisest laws; for where there is no virtue in a society, the laws will command but little respect.

§ 771. We must conclude, then, that professional men are productive laborers. But as they increase the productiveness of a community, not directly by the creation of any material product, but in an indirect manner, they are called indirect productive laborers; and as the products of their labor are incapable of becoming objects of barter or exchange, they may be called immaterial products.

productive? Show how a lawyer's labor is productive? § 769. How that of a physician? §770. Of what service is the labor of a clergyman in production? § 771. What are these labors and their products properly called? Why?

CHAPTER IV.

Capital.-Its necessity in Production.

§772. Ir has been shown that industry or labor is essential to the production of wealth, and how the several kinds of industry concur in production. But it must be at once perceived, that industry alone can produce nothing valuable. There must be some materials with which, and upon which men may operate. The farmer can do nothing without land, manure, seed, and animals; the manufacturer must have leather, iron, wool, and cotton; and the merchant must have wares and merchandise to transport and sell.

§ 773. These several classes of producers need tools and implements also, to perform the labor of their several occupations. The farmer must have ploughs, carts, spades, and other utensils; the mechanic and manufacturer want saws, planes, hammers, and machines for spinning and weaving; and transporters need vessels and land vehicles to convey their goods from place to place. And all laborers must also be provided with food and clothing, and other things necessary for their subsistence and comfort.

§774. All these items, together with the money used to carry on the several occupations, constitute what is called capital. Neither the farmer, manufacturer, or merchant, has a large portion of his capital or wealth in money; but its use is very convenient, and even necessary, in all kinds of business, in order to facilitate the exchange of products. The utility and general objects of money will be considered hereafter. Capital; in these several forms, employed in such manner as to become more valuable, or to produce a profit or income, in consequence of the changes and transformations which it undergoes, is called productive capital.

§ 775. Productive capital, though constantly undergoing changes, in the progress of production, remains in effect the

§ 772, 773. Mention some of those things which must be united with industry or labor in production? §774. What are these several items called? Is money any part of a man's capital? What is pro

same; for, though the value of capital be consumed in its employment and use, it reproduces itself; and if prudently managed, the more frequent the changes of capital, the greater, in general, will be its productiveness. A part of the capital of a farmer yearly expended or consumed, consists of the seeds for his ground, provisions, fodder for his cattle, and the wages of his laborers. But this capital is not lost; for its value reappears, and perhaps with increase, in the successive yearly products of his farm. A similar result follows from the use and change of capital employed in manufactures and commerce.

§ 776. But all capital is not employed in the business of production. In every country there is a greater or less amount of capital which lies entirely inactive, or is unprofit ably expended. Such are uncultivated and barren lands, machinery not in operation, and money hoarded up. These,. while in this state, yield no income to the owner; and the nation loses the profit of the industry which it might have kept in motion. Hence, this is called unproductive capital.

777. That portion of capital which is changed in the business of reproduction, is called circulating capital. Such are the grain and manures of the farmer, and the wages of his laborers; the materials from which goods are manufactured; and the stock of goods of a merchant. They are constantly disappearing, and returning in a different shape. A small part of the capital of a farmer is circulating. capital; that of a manufacturer is much greater; while the capital of a merchant is almost wholly a circulating capital.

§778. Another kind of capital is that which consists of the lands, buildings, working animals, and the various utensils of the farmer; the machinery of the manufacturer, and the building with which it is connected; and the warehouse of the merchant. These do not undergo the same changes and transformations as the items of circulating capital, but are kept for permanent use; and the most perishable of them last for many years. Hence this kind of capital is denominated fixed capital.

ductive capital? § 775. Describe the nature of productive capital, and its operation in reproduction. § 776. Of what does unproductive capital consist? § 777. What is circulating capital? Name some of

§ 779. Wherever, and in whatever branches of industry circulating capital is actively and profitably employed, we see an increase of fixed capital. A thriving farmer usually appropriates a part of his income to the improvement of his farm, buildings, and other items of fixed capital, or to the purchase of more land. The manufacturer, also, expends a portion of the increase of his circulating capital in the enlargement of his manufactory, and in making additions to his machinery. The merchant, too, improves or enlarges his warehouse and dwelling, or erects new and more commodious ones. This change of circulating into fixed capital may be considered one of the surest indications of a prosperous community.

CHAPTER V.

The use of Natural Agents in Production.

§ 780. THE power of man alone applied to capital, could scarcely furnish him with the most meagre subsistence. A man with nothing but a spade and a hoe to cultivate his land, would receive but a scanty remuneration for his labor. But if he had ten times as much strength as he now has, his labor would be ten times as productive; for the greater the power brought to the assistance of man, the greater will be the amount produced by human labor.

§ 781. The productiveness of human industry is owing, principally, to the assistance which it receives from natural agents. These agents are of two kinds, animate and inanimate. Animate natural agents are beasts of burden, as the horse, ox, ass, mule, &c. By the aid of these, mankind are enabled vastly to increase the productiveness of labor.

the items. §778. What is fixed capital? Mention some of the items of fixed capital. §779. What effect has the profitable employment of circulating, upon fixed capital?

$780. To what is the productiveness of human labor proportioned? § 781. By what means is the necessary power furnished to man to

We may imagine, with tolerable accuracy, how slow would be the progress of improvement in a new country, if its inhabitants could not avail themselves of the assistance of working animals in clearing the soil, and preparing it for tillage; and how much smaller would be the quantity of land cultivated, and, consequently, how much less productive human labor would be, without this assistance. And let us imagine, too, how much less grain a man would carry at a single draught to mill or to market, if he were obliged to bear it on his shoulders, and we may appreciate the aid derived by human industry from these agents.

§ 782. Inanimate natural agents are water, wind, steam, fire, gunpowder, and such other powers as assist the productive labor of man. The utility of these agents also is apparent. The advantages which man derives from natural agents are in proportion to the amount of personal labor and capital which it enables him to dispense with.

A

§783. Water is a powerful agent in production. The aid which human industry derives from the power of falling water, will appear from contrasting the effects of this agent in propelling carding machines, spinning jennies, and power looms, with the old mode of manufacturing cloth, by which each of these operations was performed by hand labor. similar advantage has been derived from its application to the use of grinding grain. In ancient times, this necessary business was performed by pounding grain with the hand, and was done by women. (See Mat. 24:41.) Water or wind mills like those of the present day were not in use. One miller with the assistance of the power of water upon machinery, now grinds as much, probably, as was in those days ground by twenty persons.

784. Wind also is a very valuable, as well as powerful agent, brought into the service of human industry. How great a number of men would it require to propel a large vessel on the ocean, by means of oars! It is probable that a long voyage would never have been performed; perhaps

render labor productive? Illustrate the benefits of animate natural agents? § 782. What are some of the inanimate natural agents? 783. Illustrate the utility of water as an agent in production. 784. For what purposes is wind useful? For which of these pur.