How this is the case with machinery I have already illustrated by examples. It is less easy to illustrate by examples, but equally easy to see how it is the case with Capital continuously employed as wages. It is less easy to select illustrations, because the whole of modern progress is itself one great, though infinitely complex example of it; and it will be enough here as we shall recur to the subject presently, to consider one obvious and very familiar fact. Many new commodities, and many new methods of production, depend on the invention not of new machines, but of new processes. The Capital employed in working a new process is mainly employed as wages, by the administration of which the actions of the workmen are guided, controlled, and organised. Thus if fifty men, working independently and selling their own produce, produce a hundred articles of a certain sort weekly, and another fifty men, ◆¹ working for a wage-paying employer, produce, owing to the way in which their labour is guided and organised, just double the number of such articles in the same time, we shall say that the hundred extra articles are the product of Wage Capital, just as we should say, if the increased production had been due to the introduction of a machine, that these extra hundred articles were the product of Fixed Capital. And in both cases we should mean, as I am now going to insist more particularly, that they were really the product of the capacities which each kind of Capital represents. This brings us to the heart of the whole problem. CHAPTER V _That the Chief Productive Agent in the modern world is not Labour, but Ability, or the Faculty which directs Labour._ [Sidenote ◆1 What was said in the last chapter shows that productive Human Exertion is of two kinds, and does not consist only of what is meant by Labour,] [Sidenote ◆2 As familiar instances will show us.]