Let us now turn to the capitalist. What is a capitalist? He is really a money-lender. He lends money, or machinery, and he charges interest on it. Suppose Brown wants to dig, but has no spade. He borrows a spade of Jones, who charges him a price for the use of the spade. Then Jones is a capitalist: he takes part of the wealth Brown produces, and calls it _interest_. Suppose Jones owns a factory and machinery, and suppose Brown is a spinner, who owns nothing but his strength and skill. In that case Brown the spinner stands in the same relation to Jones the capitalist as the landless labourer stands in to the landlord. That is to say, the spinner cannot get food without money, and he can only get money by working as a spinner for the man who owns the factory. Therefore Brown the spinner goes to Jones the capitalist, who engages him as a spinner, and pays him wages. There are many other spinners in the same position. They work for Jones, who pays them wages. They spin yarn, and Jones sells it. Does Jones spin any of the yarn? Not a thread: the spinners spin it all. Do the spinners get all the money the yarn is sold for? No. How is the money divided? It is divided in this way-- A quantity of yarn is sold for twenty shillings, but of that twenty shillings the factory owner pays the cost of the raw material, the wages of the spinners, the cost of rent, repairs to machinery, fuel and oil, and the salaries and commissions of clerks, travellers, and managers. What remains of the twenty shillings he takes for himself as _profit_. This "profit," then, is the difference between the cost price of the yarn and the sale price. If a certain weight of yarn costs nineteen shillings to produce, and sells for twenty shillings, there is a profit of one shilling. If yarn which cost L9000 to produce is sold for L10,000, the profit is L1000. This profit the factory owner, Jones the capitalist, claims as interest on his capital. It is then a kind of rent charged by him for the use of his money, his factory, and his machinery. Now we must be careful here not to confuse the landlord with the farmer, nor the capitalist with the manager. I am, so far, dealing only with those who _own_ and _let_ land or capital, and not with those who manage them. A capitalist is one who lends capital. A capitalist may use capital, but in so far as he uses capital he is a worker. So a landlord may farm land, but in so far as he farms land he is a farmer, and therefore a worker. The man who finds the capital for a factory, and manages the business himself, is a capitalist, for he lends his factory and machines to the men who work for him. But he is also a worker, since he conducts the manufacture and the sale of goods. As a capitalist he claims interest, as a worker he claims salary. And he is as much a worker as a general is a soldier or an admiral a sailor. Well, the _idle_ landlord and the _idle_ capitalist charge rent or interest for the use of their land or capital.