produce these things in
large quantities as they are required. And this power is furnished by
the durable instruments of production, which we thus rightly regard as
the true representatives of modern capital. If it is argued that this
power to produce consumable goods may be regarded as being _in effect_
a store of consumable goods, it must be sternly replied that this is
the language of symbolism, not of science, and that symbolism is
highly dangerous in this connection. The false conception of capital
as essentially a store of consumers' goods has led and still leads to
many serious fallacies. It was this that gave rise to the notorious
doctrine of the Wages Fund; the notion that the sum which can at any
time be paid in wages is equal to the quantity of capital, _alias_
consumable goods, which happens to exist. To this day it blocks, with
an undergrowth of obscurantist controversies, the way to a
straightforward account of the problem of trade cycles.

Sec.5. _The Essence of Waiting_. But it is with positive conclusions that
we must here concern ourselves. What is the essence of this waiting,
as we have called it? What are its results from the point of view of
the community? The individual, who saves and lends, waits in the
obvious sense that he postpones consumption. He foregoes his right to
purchase now a quantity of consumers' goods in consideration of the
prospect of purchasing a larger quantity of such things in the
future. From the standpoint of the whole community, there is a similar
postponement of consumption, though it need not commence so soon. The
store of consumable goods is what it is: the quantity of goods in
_process_ of manufacture, which will shortly be coming forward, is
also what it is. For some time, therefore, a sudden access of saving
cannot affect the quantity of goods available for consumption; and if,
in fact, they should be consumed less rapidly, that will represent an
unfortunate defect, not an essential condition of a smoothly working
system. The _necessary_ consequence comes later. The increased saving
will cause labor, materials, land, agents of production generally, to
be devoted to distant purposes. Men will be set to work producing
durable goods, largely durable instruments of production like ships or
railways or factories or plant. If the increased saving is
considerable, the labor, materials, etc., required for these purposes
will be withdrawn even under our present system, as und