with so much dispatch and beautiful effect。 Almost every species
of workman； however； from having acquired a certain dexterity in
the use of his hands； and from having frequently seen the
operations of other workmen； could learn the art of another man
much better than a person who had never practised any kind of
manual dexterity； and never seen it practised。 But if a skilled
labourer could not direct any kind of instruments so well as the
man who has been constantly accustomed to use them； it is plain
that the whole productive power of such instruments must depend
altogether on the peculiar skill of the artisan and mechanic； who
has been trained to practise different arts。 Fixed capital； of
whatever species； then； is only a costly production； costly to
make； and costly to preserve； without that particular species of
skill and labour which guides each instrument； and which； as I
have before shown； is nourished； instructed and maintained by
wages alone。 The utility of the instruments the labourer uses can
in no wise be separated from his skill。 Whoever may be the owner
of fixed capital and in the present state of society he who
makes it is not； and he who uses it is not it is the hand and
knowledge of the labourer which make it； preserve it from decay；
and which use it to any beneficial end。
For a nation to have fixed capital； then； and to make a good
use of it； three things； and only three things； seem to me to be
requisite。 First； knowledge and ingenuity for inventing machines。
No labourer would； I am sure； be disposed to deny to these their
reward。 But no subject of complaint is more general or more just
than that the inventor of any machine does not reap the benefit
of it。 Of all the immense number of persons who have acquired
large fortunes by the modern improvements in steam engines and
cotton mills； Mr Watt and Mr Arkwright are the only two； I
believe； who have been distinguished for their inventions； they
also acquired wealth less as inventors than as capitalists。 Mr
Watt found a capitalist who appreciated his genius； and Mr
Arkwright saved and borrowed the means of profiting by his own
inventions。 Thousands of capitalist have been enriched by
inventions and discoveries of which they were not the authors；
and capital； by robbing the inventor of his just reward； is
guilty of stifling genius。 The second requisite for having fixed
capital is the manual skill and dexterity for carrying these
inventions into execution。 The third requisite is the skill and
labour to use these instruments after they are made。 Without
knowledge they could not be invented； without manual skill and
dexterity they could not be made； and without skill and labour
they could not be productively used。 But there is nothing more
than the knowledge； skill and labour requisite on which the
capitalist can found a claim to any share of the produce。
Naturally and individually man is one of the most feeble and
destitute of all created animals。 His intelligence； however；
compensates for his physical inferiority。 After he has inherited
the knowledge of several generations； and when he lives
congregated into great masses； he is enabled by his mental
faculties to complete； as it were； the work of nature； and add to
his intelligence the physical powers of the lower animals。 He
directs his course on the waters； he floats in the air； he dives
into the bowels of the earth； and all which its surface bears he
makes tributary to his use。 The gales which threaten at first to
blow him from the earth； grind his corn； and waft to him a share
in the treasures of the whole world。 He creates at this pleasure
the devouring element of fire； and checks its progress； so that
it destroys only what he has no wish to preserve。 He directs the
course of the stream； and he sets bounds to the ocean； in short；
he presses all the elements into his service； and makes Nature
herself the handmaid to his will。 The instruments he uses to do
all this； which have been invented by his intelligence to aid his
feeble powers； and which are employed by his skill and his hands；
have been called fixed capital； and shutting out of view man
himself； in order to justify the existing order of society； which
is founded on property or possessions； and the existing
oppression of the labourer； who forms unhappily part of these
possessions all these glorious effects have been attributed；
with a more extraordinary perversion of thought； perhaps； than is
to be found in any other department of knowledge； to fixed and
circulating capital。 The skill and the art of the labourer have
been overlooked； and he has been vilified； while the work of his
hands has been worshipped。 1
＇1。 In all errors which are generally adopted there is a
tolerable substratum of truth。 In the present case the substratum
of truth is this： There was time in society when capital and
capitalists were of the most essential service to it。 On the
establishment of towns in Europe； and on the introduction of
manufactures into them； they became the refuge of all the
oppressed and enslaved peasantry who could escape from their
feudal tyrants。 The capitalists and manufacturers who inhabited
them were the skilled labourers； and really gave employment and
protection to the peasantry。 They taught them useful arts； and
hence became invested with the character of benefactors； both to
the poor and the state。 They were infinitely better than the
feudal barons with whom they were compared； and the character
they then acquired they now retain。 The veneration men have for
capital and capitalists is founded on a sort of superstitious and
transmitted notion of their utility in former times。 But they
have long since reduced the ancient tyrant of the soil to
comparative insignificance； while they have inherited his power
over all the labouring classes。 It is； therefore； now time that
the reproaches so long cast on the feudal aristocracy should be
heaped on capital and capitalists； or on that still more
oppressive aristocracy which is founded on wealth； and which is
nourished by profit。＇
I have now show the reader that the effects attributed to
circulating capital result from co…existing labour； and the
assurance common to each labourer； that he will be able to
procure what he wants； or that while he is at work other men are
also at work。 I have also shown that fixed capital is produce by
the skill of the labourer。 Circulating capital； consisting of
food and clothes； is created only for consumption； while fixed
capital； consisting of instruments and tools； is made； not to be
consumed； but to aid the labourer in producing those things which
are to be consumed。 There is no analogy between these two
descriptions of commodities； except that both are the produce of
labour； and both give the owner of them a profit。
There is； however； a striking difference between them which
deserves to be noticed。 It is usually stated that 〃the productive
industry of any country is in proportion to its capital； increase
when its capital increases； and declines when its capital
declines。〃 This position is true only of circulating capital； but
not of fixed capital。 The number of productive labourers depends
certainly on the quantity of food； clothing； etc。； produced and
appropriated to their use； it is not； however； the quantity but
the quality of the fixed capital on which the productive industry
of a country depends。 Instruments are productive； to use the
improper language of the political economists； not in proportion
as they multiplied； but as they are efficient。 It is probable
that since Mr Watt's improvements on the steam engine one man can
perform as much work with these instruments as ten men did
before。 As the efficiency of the fixed capital is increased by
men obtaining greater knowledge and greater skill； it is quite
possible； and is the case； that a greater quantity of
commodities； or a greater means of nourishing and supporting men；
is obtained with less capital。 Although； therefore； the number of
labourers must at all times depend on the quantity of circulating
capital； or； as I should say； on the quantity of the products of
co…existing labour； which labourers are allowed to consume； the
quality of commodities they produce will depend on the efficiency
of their fixed capital。 Circulating capital nourishes and
supports men as its quantity is increased； fixed capital as a
means of nourishing and supporting men depends for its efficiency
altogether on the skill of the labourer； and consequently the
productive industry of a country； as far as fixed capital is
concerned； is in proportion to the knowledge and skill of the
people。
The warmest admirers of circulating capital will not pretend
that it adds in the same way as fixed capital to the productive
power of the labourer。 The most extraordinary visionary who ever
wrote cannot suppose circulating capital adds anything to
productive power。 The degree and nature of the utility of both
species of capital is perfectly different and distinct。 The
labourer subsists on what is called circulating capital； he works
with fixed capital。 But equal quantities or equal values of both