90 
POLITICAL ECONOMY 
of analysis the distinction between them has 
a certain value. Capital is not an original 
agent in production. It is the product of 
land, labour, organising and saving. Immense 
discussion has taken place over the question 
of what it is most appropriate to regard as 
capital. For our requirements it is sufficient 
to think of it as wealth which is not consumed 
to afford immediate gratification but is on 
the contrary applied to further production. 
Its value in the form of ships, factories, 
engines and machinery will not be questioned. 
The efficiency of labour is of fundamental im 
portance, not merely with a view to the creation 
of wealth, but also with regard to intangible 
social well-being. The efficiency of labour is 
governed by natural and social conditions, 
the duration of work, wages, and labour’s 
prospects. A bracing climate makes a lusty 
and active population. Work which is mono 
tonous, or excessively exhausting, is bound 
to cause all-round deterioration of a people’s 
vital forces. Dreariness in one’s environ 
ment breeds general listlessness, and a foul 
atmosphere and other insanitary conditions 
undermine strength and generate disease. 
Wages and their spending have obviously a 
direct bearing upon efficiency and so also has 
the outlook of people. Divested of all chances