Adam Smith quote about capital from The Wealth of Nations - It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country.
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It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country.
 Adam Smith, The Wealth of Nations (1776). copy citation

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Author Adam Smith
Source The Wealth of Nations
Topic capital industry banking
Date 1776
Language English
Reference An Inquiry into the Nature and Causes of the Wealth of Nations
Note
Weblink http://www.gutenberg.org/files/3300/3300-h/3300-h.htm

Context

“I do not, however, pretend to warrant either the greatness of the sum, or the shortness of the time. Upon other occasions, this great company has been reduced to the necessity of paying in sixpences.
It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country. That part of his capital which a dealer is obliged to keep by him unemployed and in ready money, for answering occasional demands, is so much dead stock, which, so long as it remains in this situation, produces nothing, either to him or to his country.” source

Meaning and analysis

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