It is impossible to contest these propositions as thus stated. But there
is one consideration which clearly shews, that there is something more
in the matter than is here taken into the account; and this is, that the
above reasoning tends distinctly to prove, that it does a tradesman no
good to go into his shop and buy his goods. How can he be enriched? it
might be asked. He merely receives a certain value in money, for an
equivalent value in goods. Neither does this give employment to his
capital; for there never exists more capital than can find employment,
and if one person does not buy his goods another will; or if nobody
does, there is over-production in that business, he can remove his
capital, and find employment for it in another trade.

Every one sees the fallacy of this reasoning as applied to individual
producers. Every one knows that as applied to them it has not even the
semblance of plausibility; that the wealth of a producer does in a great
measure depend upon the number of his customers, and that in general
every additional purchaser does really add to his profits. If the
reasoning, which would be so absurd if applied to individuals, be
applicable to nations, the principle on which it rests must require much
explanation and elucidation.

Let us endeavour to analyse with precision the real nature of the
advantage which a producer derives from an addition to the number of his
customers.

For this purpose, it is necessary that we should premise a single
observation on the meaning of the word capital. It is usually defined,
the food, clothing, and other articles set aside for the consumption of
the labourer, together with the materials and instruments of production.