To give an idea of interest and its mechanism, allow me to make use of
two or three anecdotes. But, first, I must say a few words upon capital.

There are some persons who imagine that capital is money, and this is
precisely the reason why they deny its productiveness; for, as M. Thoré
says, crowns are not endowed with the power of reproducing themselves.
But it is not true that capital and money are the same thing. Before the
discovery of the precious metals, there were capitalists in the world;
and I venture to say that at that time, as now, everybody was a
capitalist, to a certain extent.

What is capital, then? It is composed of three things:--

1st. Of the materials upon which men operate, when these materials have
already a value communicated by some human effort, which has bestowed
upon them the principle of remuneration--wool, flax, leather, silk,
wood, &c.

2nd. Instruments which are used for working--tools, machines, ships,
carriages, &c.

3rd. Provisions which are consumed during labour--victuals, stuffs,
houses, &c.

Without these things the labour of man would be unproductive and almost
void; yet these very things have required much work, especially at
first. This is the reason that so much value has been attached to the
possession of them, and also that it is perfectly lawful to exchange and
to sell them, to make a profit of them if used, to gain remuneration
from them if lent.