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18 to such a proposition when stated in plain terms, yet, when the error can be partially concealed in some of the difficulties of complicated questions, it will be found to vitiate many popular opinions which at first sight appear plausible. Capital, let it again be borne in mind, is all that wealth, in whatever shape or form it may exist, which is set aside to assist future production. It is true that if, for instance, you ask a farmer how much capital he has with which to work his farm, he will reply that he has so many thousand pounds, but his capital is not actually in money, and even if it were in money it could not fulfil the functions of capital until the money had been exchanged for various commodities. For why does a farmer require capital to work his farm? He requires capital because implements and stock are wanted, and because he must have money, or some other property in hand which he converts into money, in order to pay the wages of his labourers; although a farmer estimates his capital in money, he obtains the amount of this estimate by ascertaining the pecuniary value of the various items of which his capital is composed. In making this calculation, he takes account of the value of his stock, his implements, and the amount of money which it is necessary for him to keep in hand in order to pay his labourers' wages, and to provide the outlay which is requisite for other purposes.

It has been just stated that the whole capital of any country is the sum of the wealth existing in any shape or form which has been set aside with the object of being devoted to assist future production. Hence it is manifest that the whole capital of the country is not at any particular time actually employed. This may be readily explained by an illustration.

Let us consider some commodity, such as wheat, which is produced in our own country, and to simplify the matter we will suppose that all the wheat of one harvest is consumed by the time the next harvest is gathered in. Now it may naturally be asked, What portion of this wheat ought at any time to be regarded as constituting capital? Immediately the harvest is gathered in, the wheat is of course so much wealth, and at that time just so much of the wheat as each individual owner intends