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  importance, ­
  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  monotonous, ­
  or  excessively  exhausting,  is  bound
to  cause  all-round  deterioration  of  a  people’s
vital  forces.  Dreariness  in  one’s  environment ­
  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