capital, as also that which it can, without retrograding in wealth,
expend unproductively, or for enjoyment. Now, it is impossible that both
the above propositions can be true. If the net produce is that which
remains after replacing capital, then net produce is not the only fund
out of which accumulation may be made: for accumulation may be made from
wages; this is in all countries one of the great sources, and in countries
like America perhaps the greatest source of accumulation. If, on the other
hand, it is desirable to reserve the name of net produce to denote the
fund available for accumulation or for unproductive consumption, we must
define net produce differently. The definition which appears the best
adapted to render the ordinary doctrines relating to net produce true,
would be this:

The net produce of a country is whatever is annually produced beyond
what is necessary for maintaining the stock of materials and implements
unimpaired, for keeping all productive labourers alive and in condition
for work, and for just keeping up their numbers without increase. What
is required for these purposes, or, in other words, for keeping up the
productive resources of the country, cannot be diverted from its
destination without rendering the nation as a whole poorer. But all
which is produced beyond this, whether it be in the hands of the
labourer, of the capitalist, or of any of the numerous varieties of
rent-owners, may be taken for immediate enjoyment, without prejudice to
the productive resources of the community; and whatever part of it is
not so taken, constitutes a clear addition to the national capital, or
to the permanent sources of enjoyment.