Since the fund destined for consumption no longer produces any thing, and since each man strives incessantly to preserve and augment his fortune, each will also restrict his consumable fund, and instead of accumulating in his house a quantity of necessaries greatly superior to what he can consume, he will augment his fixed or circulating capital, by all that he does not expend. In the present condition of society, a part of the fund destined for consumption remains in the retail-dealer's hand, awaiting the buyer's confidence; another part destined to be consumed very slowly, as houses, furniture, carriages, horses, continues in the hands of persons whose business it is to sell the use of it, without abandoning the property. A considerable portion of the wealth of opulent nations is constantly thrown back into the fields destined for consumption; but although it still gives profit to its holders, it has ceased to augment the national re-production.

The annual distribution of the wealth, annually reproduced, among all the citizens composing the nation, constitutes the national revenue. It consists of all the value, by which the re-production surpasses the consumption that produced it. Thus the farmer, after deducting from his crop a quantity equal to the seed of the foregoing year, finds remaining the part which is to support his family, - a revenue to which they have acquired right by means of their annual labour; the part which is to support his workmen, who have acquired the right to it by the same title; the part with which he is to satisfy the landlord, who has acquired right to this revenue by the original improvement of the soil, now no longer repeated; and lastly, the part with which he is to pay the interest of his debts, or indemnify himself for the employment of his own capital - a revenue to which he has acquired right by the primitive labours which produced his capital.

So likewise, the manufacturer finds, in the annual produce of his manufactory, first the raw material employed; secondly, the equivalent of his own wages, and those of his workmen, to which their labour alone gives them right; thirdly, an equivalent for the annual detriment and interest of his fixed capital, to which revenue he or the proprietor has acquired right by a primitive labour; and lastly, an equivalent for the interest of his circulating capital, which has been produced by another primitive labour.

It is to be observed that, among those who share the national revenue, some acquire a new right in it every year by a new labour, others have previously acquired a permanent right by a primitive labour, which has rendered the annual labour more advantageous. No one obtains a share of the national revenue, except in virtue of what he himself or his representatives have accomplished to produce it; unless, as we shall soon see, he receives it at second hand, from its primitive proprietors, by way of compensation for services done to them. Now, whoever consumes without fulfilling the condition which alone gives him right to the revenue; whoever consumes without having a revenue, or beyond what he has; whoever consumes his capital in place of revenue, is advancing to ruin; and a nation composed of such consumers is advancing to ruin likewise. Revenue, indeed, is that quantity by which the national wealth is increased every year, and which accordingly may be destroyed, without the nation's becoming poorer; but the nation which, without re-production, destroys a quantity of wealth, superior in this annual increase, destroys the very means by which it would have acquired an equal re-production in subsequent years.

By a circular concatenation, in which every effect becomes a cause in its turn, production gives revenue, revenue furnishes and regulates a consumable fund, which fund again causes production and measures it. The national wealth continues to augment, and the state to prosper, so long as these three quantities, which are proportional to each other, continue to augment in a gradual manner, but whenever the proportion among them is broken, the state decays. A derangement of the mutual proportion subsisting among production, revenue, and consumption, becomes equally prejudicial to the nation, whether the production give a revenue smaller than usual, in which case a part of the capital must pass to the fund of consumption; or whether, on the contrary, this consumption diminish, and no longer call for a fresh production. To cause distress in the state, it is enough that the equilibrium be broken. Production may diminish when habits of idleness gain footing among the labouring classes; capital may diminish when prodigality and luxury become fashionable; and lastly, consumption may diminish from causes of poverty, unconnected with the diminution of labour, and yet, as it will not offer employment for future re-production, it must diminish labour in its turn.

Thus nations incur dangers that seem incompatible: they fall into ruin equally by spending too much, and by spending too little. A nation spends too much whenever it exceeds its revenue, because it cannot do so except by encroaching on its capital, and thus diminishing future production; it then does what the solitary cultivator would do if he should eat the corn which ought to be secured for seed. A nation spends too little, whenever, being destitute of foreign commerce, it does not consume its own production; or when, enjoying foreign commerce, it does not consume the excess of its production above its exportation; for, if so, it soon comes into the condition of the solitary cultivator, who having filled all his granaries far beyond the probability of consumption, would be obliged, that he might not work in vain, partly to abandon his cultivation of the ground.