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Babbage, Charles, 1792-1871

"On the Economy of Machinery and Manufactures"

Such persons will each possess
some small portion of capital; and let them join with one or two
others who have raised themselves into the class of small master
manufacturers, and, therefore possess rather a larger portion of
capital. Let these persons, after well considering the subject,
agree to establish a manufactory of fire-irons and fenders; and
let us suppose that each of the ten workmen can command forty
pounds, and each of the small capitalists possesses two hundred
pounds: thus they have a capital of L800 with which to commence
business; and, for the sake of simplifying, let us further
suppose the labour of each of these twelve persons to be worth
two pounds a week. One portion of their capital will be expended
in procuring the tools necessary for their trade, which we shall
take at L400, and this must be considered as their fixed capital.
The remaining L400 must be employed as circulating capital, in
purchasing the iron with which their articles are made, in paying
the rent of their workshops, and in supporting themselves and
their families until some portion of it is replaced by the sale
of the goods produced.


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