have not an _extent of business_, at all adequate to the amount of the
capital they dispose of. It is true that, in the communities in which
industry and commerce are practised with greatest success, the
contrivances of banking enable the possessor of a larger capital than he
can employ in his own business, to employ it productively and derive a
revenue from it notwithstanding. Yet even then, there is, of necessity,
a great quantity of capital which remains fixed in the shape of
implements, machinery, buildings, &c, whether it is only half employed,
or in complete employment: and every dealer keeps a stock in trade, to
be ready for a possible sudden demand, though he probably may not be
able to dispose of it for an indefinite period.

This perpetual non-employment of a large proportion of capital, is the
price we pay for the division of labour. The purchase is worth what it
costs; but the price is considerable.

Of the importance of the fact which has just been noticed there are
three signal proofs. One is, the large sum often given for the goodwill
of a particular business. Another is, the large rent which is paid for
shops in certain situations, near a great thoroughfare for example,
which have no advantage except that the occupier may expect a larger
body of customers, and be enabled to turn over his capital more quickly.
Another is, that in many trades, there are some dealers who sell
articles of an equal quality at a lower price than other dealers. Of
course, this is not a voluntary sacrifice of profits: they expect by the
consequent overflow of customers to turn over their capital more
quickly, and to be gainers by keeping the whole of their capital in more
constant employment, though on any given operation their gains are less.

The reasoning cited in the earlier part of this paper, to show the