materials, and man to make use of those materials,--what more is
necessary? Nothing else would be necessary if all of Nature's gifts
were readily accessible, and if man unaided could make the best use of
them. But Nature hides or disguises many of her treasures, and man is
physically weak. Hence he has hit upon the device of making tools to
help him in his contest with Nature. During the period of the
Industrial Revolution many simple tools were supplanted by complicated
devices run by power and called engines and machines. To the economist
tools and similar devices are a form of capital, capital being defined
as inclusive of everything which man has created, or caused to be
created, in order to help in further production. [Footnote: Land has
not been created by man but is a gift of Nature. Land, therefore, is
not a form of capital.]

The fashioning of hammers and saws, the construction of railways, and
the manufacture of machinery, all these operations create capital. The
systematic creation and use of capital is one of the distinguishing
features of modern civilization. The laborer alone can produce little;
aided by capital he can produce much. Capital is not important if one
is willing to live like a savage; on the other hand, it is
indispensable if one wishes to enjoy the benefits of civilization.

71. COÖRDINATION A FOURTH FACTOR IN PRODUCTION.--Land, labor, and
capital are factors in production. Two hundred years ago nothing else
was essential to production. The average individual had his own land,
produced his own tools or capital, and relied chiefly or entirely upon
his own labor.

But the Industrial Revolution enlarged and complicated production. It
created an industrial system in which the individual is generally a