THE WEALTH OF NATIONS.

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guishcd into two parts. That part which, he expects, is toafford him this revenue, is called his capital. The other isthat which supplies his immediate consumption; and whichconsists either, first, in that portion of his whole stock whichwas originally reserved for this purpose; or, secondly, in hisrevenue, from whatever source derived, as it gradually comesin; or, thirdly, in such things as had been purchased byeither of these in former years, and which are not yet entirelyconsumed; such as a stock of clothes, household furniture,and the like. In one, or other, or all of these three articles,consists the stock which men commonly reserve for their ownimmediate consumption.

There are two different ways in which a capital may beemployed so as to yield revenue or profit to its employer.

First, it may be employed in raising, manufacturing, orpurchasing goods, and selling them again with a profit. Thecapital employed in this manner yields no revenue or profitto its employer, while it either remains in his possession, orcontinues in the same shape. The goods of the merchantyield him no revenue or profit till he sells them for money,and the money yields him as little till it is again exchangedfor goods. His capital is continually going from him in oneshape, and returning to him in another, and it is only bymeans of such circulation, or successive exchanges, that it canyield him any profit. Such capitals, therefore, may veryproperly be called circulating capitals.

Secondly, itanay be employed in the improvement of land,in the purchase of useful machines and instruments of trade,or in such-like things as yield a revenue or profit withoutchanging masters, or circulating any further. Such capitals,therefore, may very properly be called fixed capitals.

Different occupations require very different proportionsbetween the fixed and circulating capitals employed in them.

The capital of a merchant, for example, is altogether a cir-culating capital. He has occasion for no machines or in-struments of trade, unless his shop or warehouse be consi-dered as such.

Some part of the capital of every master artificer or manu-facturer must be fixed in the instruments of his trade. Thispart, however, is very small in some, and very great in others.A master tailor requires no other instruments ol trade but aparcel of needles. Those of the master shoemaker are alittle, though but a very little more expensive. Those of the