Principles of Political Economy, Vol. 1Roscher, Wilhelm
History
Principles of Political Economy, Vol. 1
Roscher, Wilhelm
Economics
Capital, according to the employment that can be given it, may be divided
into such as affects the production of material goods, and such as affects
personal goods or useful relations. The former, under the name of
productive capital, is, in recent politico-economical literature, usually
opposed to capital in use.(279) Evidently any one of the two kinds of
capital mentioned above, may be used for both purposes.(280) Indeed, the
two classes are, in many respects, coincident. Thus, a livery-stable
carriage or a circulating library is productive capital to its proprietor,
and capital in use(281) (_Gebrauchskapital_) to the nation in general;
although the circulating library from which an Arkwright obtains technic
information, or the livery-stable vehicle which carries a Borsig to his
counting-room, has certainly been used in the production of material
goods. Almost all capital in use may be converted into productive capital,
and hence, the former might be called quiescent capital, and the latter
working capital.(282) One of the principal differences between productive
capital and capital in use is, that the former, even when most judiciously
employed, does not so immediately replace itself, as the latter, by its
returns.(283) On the other hand, the real dividing line between capital in
use, and objects consumed which are not capital, is, and it is in complete
harmony with our definition of capital, that the latter are subject not
only to a more speedy destruction and one which is always contemplated,
while in the case of the former, its destruction is only the unintended
reverse-side of its use.
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