Sec. 6] SUMMARY OF PART III 315

We may suppose a man’s capital to be divided into
three classes: first, money-paying investments; second,
money; third, enjoyable articles purchased by money.
We may juxtapose these elements, as in Figure 27.

Enjoyable Capital

piper] Sed

Money

rr rr

Investments

 

 

Fig. 27.

Here, whenever an investment pays money, & tooth
is produced in the first curve and a transection
takes place between the categories “ investments and
“money.” By each such transaction the investments are
reduced in value by the amount of coupons detached, and
the stock of money is increased by the same amount. In
like manner, every time money is spent, a transaction takes
place between the belt representing money and that representing
 enjoyable capital. By such transaction the money
stock is depleted, and the value of the enjoyable capital
increased by the same amount. These operations are