This classification into speculative, executive and operative labor helps to a fair estimate in sharing the proceeds of combined labors, and gives a proper importance to the inventive and foreseeing energy which causes the growth of civilization. _That form of exertion which has done most to meet the world's wants is speculative labor._
_Invention in farming._--A capital illustration of speculative labor, productive in the highest degree, is the invention of reaping machinery. The inventor has gained riches by his contrivance, but the world has gained far more by his foresight and ingenuity. Similar energy has been put into all labor-saving machinery, and still plays an important part in devising the best uses for it.
Every farmer has a similar need of planning for every field he plows. There is a certain draft for each horse, a certain speed for the plow, a certain adjustment of harness to the team, which gives a full return for the force employed. A failure to find this causes waste. All the effort of scientific research into causes and conditions of growth or disease of plants and animals is speculative labor, out of which the next advance of agriculture must come. The mere operative power of a laborer can be supplanted by brute force or by machinery, but nothing can ever supplant the intelligent foresight that invents, plans and devises the end to be reached, and the ways and the means for reaching it.
The very foundation of any success in farming is clear foresight and distinct planning for a succession of crops, each to be tended, harvested, stored and marketed in the very nick of time. The best energy of every farmer is properly given to finding what crop to raise, how and when to have it ready for the world that is going to need it. He best meets his own daily wants when "Mr. Contrivance" stands by him in all his efforts. This contrivance is the chief exertion of a successful farmer's life.
Chapter IV. Capital Defined And Classified.
_Capital distinguished from wealth._--Whenever material wealth is used not directly in meeting present wants, but to produce more wealth suited to future wants, it is called capital. Any store of good things devoted only to meeting wants as they come is thought of as wealth, as well as possible capital, since at any time it may be made the means of creating other wealth to more than take its place. The distinction grows wholly out of the uses of wealth, not its forms. A horse used, or to be used, as a force in production by drawing loads is counted as capital; but if used for mere pleasure-riding is only wealth, which leaves no material return when consumed. Thus the same horse may, in the hands of a breeder, a trainer, or a liveryman be capital, but in the hands of a fancier or a pleasure seeker be only wealth, to be used as wanted.