found now in some newer portions of the United States. It
is impossible to estimate exactly the existing ratio between fixed and
circulating capital from statistics at hand. Farmers in older, more
developed regions can use, without suffering, a larger per cent of fixed
capital than pioneers can, because the circulation is more rapid. For the
same reason the raising of staple annual crops gives place to double
cropping, dairying and full feeding as land grows more valuable, frequent
returns serving instead of large circulating capital.

In general, the wealth of a community is better judged by its fixed
capital, while its thrift is known from its circulating capital. Fixed
capital is always secured by consumption of circulating capital. The
extension of railroads always implies great reduction of ready supplies.
Money _between_ individuals and communities ranks as circulating capital,
but _within_ any community the stock of money needed for domestic trade
may be thought of as a permanent machine. Even machinery may be
circulating capital in the hands of one who manufactures or sells it,
though fixed when located in its work, and for the whole community is
"fixed" as soon as its destined use is determined by its form. Thus the
distinction, though real, is flexible. Its importance in discussing the
industries of a country, or in understanding the relations of various
industries to each other and to the world, will appear later in the book.

_Capital unproductive._--Capital is sometimes said to be unproductive in
contrast with _productive_, although the very nature of capital requires
productiveness. The occasion for this distinction is in the fact that
means devoted to future production of wealth in a particular way may be
years in returning the product; the destination is evident and the return
confidently expected, yet the owner is without income or near prospect of
income. Such ventures are seen in the reclaiming of waste lands by
drainage, the equipment of extensive mines, and the construction of dykes
and levees. Land held for sale or use in the indefinite future is a most
common illustration of unproductive capital.

If wealth in some readily exchangeable form is intended for productive
use, but is held for a satisfactory opportunity, it is sometimes called
free or _floating capital_. It may be available for any temporary use, and
so afloat among a variety of investments. Some great enterprises, like the
building o