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[1] Professor Marshall regards this restricted use of capital as "misleading," rightly urging that "there are many other things which truly perform the services commonly attributed to capital" (Principles Bk. II., chap. iv.). But if we enlarge our definition so as to include all these "other things" we shall be driven to a political economy which shall widely transcend Industry as we now understand the term, and shall comprehend the whole science and art of life so far as it is concerned with human effort and satisfaction. If it is convenient and justifiable to retain for certain purposes of study the restricted connotation of Industry now in vogue, the confinement of Capital as above to Trade Capital is logically justified. For a fuller treatment of the question of the use of the term Capital in forming a terminology descriptive of the parts of Industry the reader is referred to Chapter VII., and in particular to Appendix I.

[2] Logical Method of Political Economy, p. 81, etc.