IN systems of Political Economy the word Capital and the
theory of Capital are regularly met with in two distinct
spheres; first, under Production, and, second, under Distribution.
In the former case capital is represented as a factor or
tool of production: as an instrument which men use to extort
from nature the various forms of wealth unattainable by simple
labour. In the latter case capital appears as a source of
income or a rent fund; and we are shown how, in the division
among the various members of society of that wealth which
has been produced in common, capital acts like a magnet,
drawing a portion of the national product to itself, and delivering
it over to its owner: it appears, in a word, as the source
of Interest.