Among the different descriptions of Capital, we give the first place to tools, machines, instruments of labour. They serve to make natural forces co-operate in the work of production, and, attributing to these forces the faculty of creating value, people were led to imagine that instruments of labour, as such, were endowed with the same faculty, independently of any human services. Thus the spade, the plough, the steam-engine, were supposed to co-operate simultaneously with natural agents and human forces in creating not only Utility, but Value also. But all value is remunerated by exchange. Who, then, is to receive that portion of value which is independent of all human service? [p158] It is thus that the school of Proudhon, after having brought the ‹rent of land› into question, has contested also the ‹interest of capital›—a larger thesis, because it includes the other. I maintain that the Proudhonian error, viewed scientifically, has its root in the prior error of Adam Smith. I shall demonstrate that capital, like natural agents, considered in itself, and with reference to its own proper action, creates utility, but never creates value. The latter is essentially the fruit of a legitimate ‹service›. I shall demonstrate also that, in the social order, capital is not an accumulation of material objects, depending on material durability, but an accumulation of ‹Values›, that is to say, of ‹services›. This will put an end (virtually at least, by removing its foundation) to the recent attack upon the productiveness of capital, and in a way satisfactory to the objectors themselves; for if I prove that there is nothing in the business of exchange but a ‹mutuality of services›, M. Proudhon must own himself vanquished by my victory over his principle. ‹Labour.›—Adam Smith and his disciples have assigned the principle of Value to Labour under the condition of Materiality. This is contrary to the other opinion that natural forces play a certain part in the production of Value. I have not here to combat the contradictions which become apparent in all their fatal consequences when these authors come to discuss the rent of land and the interest of capital. Be that as it may, when they refer the principle of Value to Labour, they would be very near the truth if they did not allude to manual labour. I have said, in fact, at the beginning of this chapter, that Value must have reference to ‹Effort›,—an expression which I prefer to the word Labour, as more general, and embracing the whole sphere of human activity. But I hasten to add that it can spring only from efforts exchanged—from reciprocal Services; because value is not a thing having independent existence, but a relation.