and moves them to places of storage. It is
convenient in practice to adhere to the more general
classification suggested in the text.

_Form Utility._--A form utility is created when a raw material is
fashioned into a new shape, subdivided, or combined with other
materials, as is done in manufacturing and, in a certain way, in
commerce. Buying goods in bulk and selling them in small quantities is
the creating of form utilities and makes an addition to total wealth.
Oil in small cans is worth far more for consumption than it would be
if each consumer were forced to buy a tankful. Sugar is worth more to
a consumer when it is doled out to him in paper sacks than it would be
if it were to be had only in hogsheads. Merchants are not mere
exchangers, for they make positive additions to the utility of goods.
In primitive life no such class exists; and yet form utilities of
every kind are created, since men make for themselves the goods that
they use and adapt them in shape and in quantity to their current
needs.

_Place Utility._--Carrying things to places where they become more
useful creates place utilities. In primitive life men do their own
carrying; but in civilized states the common carrier does most of it,
and so imparts place utility to matter on the most extensive scale.
All useful transportation creates this quality, which is a general
attribute of wealth; and the operation of so moving matter as to
create place utility is one of the general functions of labor.[5]

[5] In a way all kinds of production may be analyzed into the
moving of matter. In cutting up raw materials a manufacturer
moves waste portions away from those that are to be utilized,
while combining materials, of course, moves them toward each
other. Neither of these operations creates place utility.
This quality consists in a relation, not between some
materials and others, but between goods and the persons who
are to use them. Bringing things to us from a distance
changes their local relation to us, and in this is the
essence of place utility, and every article that we use must
have acquired this quality. The service-rendering power which
it possesses is only potential until it reaches a place where
the power can be exercised.

_Time Utility._--There is, moreover, a kind of utility which depends
on the existence of a good at the time when it is needed. Ice in the
warm season, a plow in