circulating capital. He has occasion for no machines or instruments of trade, unless his shop or warehouse be considered as such.
Some part of the capital of every master artificer or manufacturer must be fixed in the instruments of his trade. This part, however, is very small in some, and very great in others. A master tailor requires no other instruments of trade but a parcel of needles. Those of the master shoemaker are a little, though but a very little, more expensive. Those of the weaver rise a good deal above those of the shoemaker. The far greater part of the capital of all such master artificers, however, is circulated, either in the wages of their workmen, or in the price of their materials, and repaid with a profit by the price of the work.
In other works a much greater fixed capital is required. In a great iron works, for example, the furnace for melting the ore, the forge, the slit-mill, are instruments of trade which cannot be erected without a very great expense. In coal works, and mines of every kind, the machinery necessary both for drawing out the water and for other purposes, is frequently still more expensive.
That part of the capital of the farmer which is employed in the instruments of agriculture is a fixed, that which is employed in the wages and maintenance of his laboring servants, is a circulating capital. He makes a profit of the one by keeping it in his own possession, and of the other by parting with it. The price or value of his laboring cattle is a fixed capital in the same manner as that of the instruments of husbandry; their maintenance is a circulating capital in the same manner as that of the laboring servants. The farmer makes his profit by keeping the laboring cattle, and by parting with their maintenance. Both the price and the
