Capital good

“ All capital is justly and rationally invested which supports productive labor (that is to say, labor directly producing or distributing good food, clothes, lodging, or fuel) ; so long as it renders to the possessor of the capital, and to those whom he employs, only such gain as shall justly remunerate the superintendence and labor given to the business, and maintain both master and operative happily in the positions of life involved by their several functions. And it is highly advantageous for the nation that wise superintendence and honest labor should both be highly rewarded. ”

“ Do you understand this, bishops and people?
The capitalists may say, "What are we to do with our means?" Go and build factories and have one, two, or three thousand spindles going. Send for fifty, a hundred, or a thousand sheep and raise wool. Some of you go to raising flax and build a factory to manufacture it, and do not take every advantage and pocket every dollar that is to be made. You are rich, and I want to turn the stream so as to do good to the whole community.
I am delighted every time I hear a company say, "We do not want your capital, we have plenty." ”

“ And we could have every great source of power harnessed and working for the common good were it not that the expense of obtaining capital stands in the way. I think that we shall have to revise some of our notions about capital. ”

“ First, the capitalist must calculate on at least as large a return on the capital he was to put into the venture as he could obtain by lending it on good security--that is to say, the ruling rate of interest. ”

“ Whatever else may benefit particular portions of society, whatever else may assist capital, whatever else may favor sharp-sighted commercial enterprise, professional skill, or extraordinary individual sagacity or good fortune, be assured, Gentlemen, that nothing can advance the mass of society in prosperity and happiness, nothing can uphold the substantial interest and steadily improve the general condition and 300 character of the whole, but this one thing, compensating rewards to labor. ”

“ The objective of increasing the purchasing power of the farming third, the industrial third and the service third of our population presupposes the cooperation of what we call capital and labor.
Capital is essential; reasonable earnings on capital are essential; but misuse of the powers of capital or selfish suspension of the employment of capital must be ended, or the capitalistic system will destroy itself through its own abuses.
The overwhelming majority of business men and bankers intend to be good citizens. ”

“ Therefore society as a whole must take possession of industrial capital, production for use must be substituted for production for profit, work at a good wage must be guaranteed to every one who asks for it, and the fair distribution of wealth among the workers must be regarded as of more primary importance than the quantity which is produced. ”

“ These factors are the vendible items that men handle in these processes of production and distribution; and economic laws come, therefore, to be expressions of the algebraic relations subsisting between the various elements of wealth and investment,—capital, labor, land, supply and demand of one and the other, profits, interest, wages. Even such items as credit and population become dissociated from the personal factor, and figure in the computation as elemental factors acting and reacting though a permutation of values over the heads of the good people whose welfare they are working out. ”

“ But further, apart from the class of lazy annuitants thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation—as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven—the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy. ”

“ Values to-day permit their holders either to purchase means of production and of profit or their products. In the transformed society, when the private capital of production and exploitation shall have been made social, when the social community shall have placed the means of production at the disposition of associated laborers, the indemnity values which shall have been given the capitalists of yesterday will permit them no longer to buy the means of production, of rent, and of profit: they will permit them to buy only the products of the transformed social activity. ”

“ Therefore in the accumulation of wealth, so far as it arises from the saving by anyone of the products of his labour, from his bequest of this capital to another who farther adds to it by saving some of the profit which the capital yields, as employed in the payment for labour or in trade either by the capitalist himself or someone to whom he lends it, and from the continuation of this process through generations, there is nothing which tends to lessen for anyone else the possibilities of ownership. ”

“ Now, Sir, it is the effect of a well-regulated system of paper credit to break in upon this line thus dividing the many from the few, and to enable more or less of the more numerous class to pass over it, and to participate in the profits of capital by means of a safe and convenient substitute for capital; and thus to diffuse far more widely the general earnings, and therefore the general prosperity and happiness, of society. ”

“ Let us now take these questions up again, and examine them more minutely, and we shall find that interest is justified from a practical point of view by the fact that the enjoyment of capital by this particular means is not only the sole manner of enjoying it which is consistent with the general welfare, but also constitutes the advantage which, in the eyes of most great producers, gives to capital the larger part of its value, and renders the desire of producing it efficient as a social motive. ”

“ And so, if I use my own capital in directly aiding production, as by machinery, or in indirectly aiding production, in exchange, I receive a special and distinguishable advantage from the reproductive character of capital, which is as real, though perhaps not as clear, as though I had lent my capital to another and he had paid me interest. ”

“ We have seen that capital does not advance wages or subsist labourers, but that its functions are to assist labour in production with tools, seed, etc., and with the wealth required to carry on exchanges. ”

“ To make their industry most effective, and to enable them, individually, to put into their own pockets as large a portion as possible of their own earnings, they need, on an average, one thousand dollars each of money capital. ”

“ And, as has been previously shown, food, clothing, etc.—in short, all articles of wealth—are only capital so long as they remain in the possession of those who propose, not to consume, but to exchange them for other commodities or for productive services, and cease to be capital when they pass into the possession of those who will consume them ”

“ He intoned, "The man of wealth has a special responsibility in our society. He is the trustee of invested capital, on which our economy rests. His proud charge is to direct and build his holdings wisely; and natural economic laws have justly placed the nation's considerable estates in the hands of men equal to the charge. ”

“ If Capital obtains this right, in addition to financial reward for the use of capital for the time for which it is invested, is Labor not in justice equally entitled, in addition to its monetary reward, to a voice in the control of industry in which, for the time being, its life and skill are likewise invested? ”

“ They all know perfectly well, that in a private fortune, the most important fact to consider is the income, and that by the income must be regulated consumption or expenditure, or the capital will be destroyed. ”

“ If all persons were to expend in personal indulgences all that they produce, and all the income they receive from what is produced by others, capital could not increase. All capital, with a trifling exception, was originally the result of saving. ”

“ Hence, if we define capital as wealth in course of exchange, understanding exchange to include not merely the passing from hand to hand, but also such transmutations as occur when the reproductive or transforming forces of nature are utilized for the increase of wealth, we shall, I think, comprehend all the things that the general idea of capital properly includes, and shut out all it does not. Under this definition, it seems to me, for instance, will fall all such tools as are really capital. ”

“ Any analysis will show that much of the profits which are, in common thought, confounded with interest are in reality due, not to the power of capital, but to the power of concentrated capital, or of concentrated capital194 acting upon bad social adjustments. ”

“ Ability, using wage-capital as its implement of direction, gives rise to fixed capital, in the form of the elaborate implements of modern production, which are the material embodiments of the knowledge, ingenuity, and energy of the highest minds. ”

“ Thus social capital and its counterpart, the whole of social surplus value, are not merely real quantities, having an objective existence, but, what is more, the relation between them, the average profit, guides and directs the whole process of exchange. ”

“ The use of capital in production is, therefore, but a mode of labor. As capital can be used only by being consumed, its use is the expenditure of labor, and for the maintenance of capital, its production by labor must be commensurate with its consumption in aid of labor. Hence the principle that, under circumstances which permit free competition, operates to bring wages to a common standard199 and profits to a substantial equality—the principle that men will seek to gratify their desires with the least exertion—operates to establish and maintain this equilibrium between wages and interest. ”

“ Whereas the real aspect which he ought to have is that of a person wiser than others, entrusted with the management of a larger quantity of capital, which he administers for the profit of all, directing each man to the labour which is most healthy for him, and most serviceable for the community. ”

“ That indeed which forms the inducement to save, is not the whole of the fund which supplies the means of saving, not the whole net produce of the land, capital, and labour of the country, but only a part of it, the part which forms the remuneration of the capitalist, and is called profit of stock. ”

“ Are we maintaining a reason- able equation in our balance of payments? Does a reason- able percentage of the national income go to the formation of capital and is that capital being invested in productive enterprises? ”

“ Let us therefore consider whether, and in what cases, the property of those who live on the interest of what they possess, without being personally engaged in production, can be regarded as capital. It is so called in common language, and, with reference to the individual, not improperly. ”

“ The capital which, as we have seen, is the condition of all welfare on earth, the fortification of existence, and the means of growth, is an object of cupidity. Some want to get it without paying the price of industry and economy. ”

“ I expect to see the State, which is in a position to calculate the marginal efficiency of capital-goods on long views and on the basis of the general social advantage, taking an ever greater responsibility for directly organising investment; ”

“ As a philanthropist, you may [63] feel sorry that a humble laborer should work through a long day to receive two dollars, but as an economist you console yourself with the reflection that that is all he produces. You may at times, as a sentimentalist, wonder whether the vast sums drawn as interest on capital are consistent with social fairness; but if it is shown that interest is simply the "natural price" of capital representing the actual "productive power" of the capital, there is nothing further to say. ”

“ It is the circulating capital which furnishes the materials and wages of labor, and puts industry into motion. Every saving, therefore, in the expense of maintaining the fixed capital, which does not diminish the productive powers of labor, must increase the fund which puts industry into motion, and consequently the annual produce of land and labor, the real revenue of every society. ”

“ Hence it necessarily results that, as has been forcibly expressed, "the additional capital, whenever it is productively employed, will tend as certainly to the benefit of the working population at large as if the owner were a trustee for their benefit." ”

“ Only too well. You said, but at great length, and with much embroidery of language more than questionable, that capital had no bowels for the worker, nor owners of capital either; and that since no one else would be kind to them, the workers must be kind to themselves and take the matter into their own hands.
J. N. (making notes) . Owners of the capital; workman must take the matter—take the matter—into their own hands.
J. F. Well, I have no more questions to ask your Grace. ”

“ As capital is created by profit, and as the useful occupations cannot flourish without capital, each transfer of their profits, whether to the government by unnecessary taxation, or to exclusive privileges, diminishes their ability to promote consumptions, and the national prosperity; and establishes a domestick commerce by which the majority pays all, and receives nothing, and the minority receives all, and pays nothing. ”