are three distinct operations which are the same in each and all of these several branches of industry. That is to say, industry, whether agricultural, manufacturing, or commercial, may be divided into (1.) theory; (2.) application; and (3.) execution. All of these three operations are necessary to the formation of any product, as we shall presently see.

§ 763. In the production of a watch, for example, the first step is the study of the nature and properties of iron; by which investigation it has been discovered that this metal can be drawn out to almost any degree of attenuation, and that it is capable of receiving a great degree of elasticity. The second step is the applying of the laws and properties of iron to the purpose of moving a watch by means of main and hair springs. The last operation is the execu tion of the manual labor necessary to complete the product.

§764. The same operations may be traced in agricul. tural and commercial industry. The natural philosopher or man of science has in the first place discovered the order and conduct of nature in the production of grain, the chemical quales of the various substances by which the soil may be fertilized. The farmer, having acquired a knowl edge of these discoveries, proceeds to apply this knowledge to the purpose of creating a useful product, and directs the mode of manuring the soil and the time and manner of preparing the soil in order to effect the production of the desired object. In the last place, the laborer ploughs the ground, and sows the seed.

§765. These operations are not always, however, performed by different. persons; sometimes the same person performs two; but it seldom happens that he performs all of them. Franklin discovered the laws of electricity, and applied them to the construction of the lightning rod; thus performing the labor of discoverer and of inventor; but he probably never made a rod with his own hands. In most of

tinct operations are performed in the formation of a product? § 763 Illustrate this in the case of a mechanical product. § 764. In the case of an agricultural production. § 765. Are these several opera tions always performed by different persons? Why is not the first of

the products of the present day, no person performs more than two of these operations; because new discoveries are seldom made. Most of the new inventions which are taking place, are the result of the knowledge of the laws of nature long since discovered. The nature of iron and of heat, and the effect of the latter upon the former, were discovered at an early period; but the application of the knowledge of this effect to the construction of cast iron ploughs, is of recent invention. And almost all the labor done is exerted in the creation of products which are the result of old dis. coveries and inventions.

§706. We see, then, that in each branch of industry there are three classes of laborers. First, discoverers, in cluding philosophers and men of science, who investigate and discover the laws of nature; secondly, inventors of ma. chinery, and all who teach us how to apply the knowledge of these laws to some practical purpose; among whom may be classed also the lawyer, physician, and clergyman, by whose knowledge society is in various ways made more prosperous and happy; and thirdly, all persons who labor in the several trades and manual employments.

§767. The labor of lawyers, physicians, and clergymen, is by some called unproductive labor; because it imparts no value to any substance; that is, it invests no matter with any utility or exchangeable value. The physician visits at patient, and prescribes a remedy for his disease, but no pro. duct is created which the sick person can transfer or dispose of to another, or keep for future use. Of a similar nature is the labor of a lawyer and a clergyman.

§768. But laborers in these professions are no less pro. ductive laborers than farmers and mechanics. Laws are enacted to secure to persons their rights. But to avail himself of the benefit of the law, a man must have a knowl. edge of the law. And if he must at any time have recourse to the law to obtain justice, he may procure the advice and assistance of the lawyer, who has the necessary knowledge

these operations so common as the others? § 766. Who compose each of the three classes of laborers in the several branches of industry? 767. Why is the labor of lawyers; physicians, and clergymen called unproductive labor? 768. Is not the labor of these men

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 per. formed 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 contrib. ute to the production of wealth? Without Christian teach. ers, 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 essen. tial 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 man. ufactures 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.

of

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 his laborers; the materials from which goods are manufac tured; 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 capi. tal; 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