2.0 Introduction

In the present book, the author intends to explain the nature of "stock" - the supply of raw materials, finished goods, and capital resources that accumulate in an economy.

In the crudest state of society, every man must provide for himself everything the he needs. And it is most common in such a state that the provision of needs is undertaken as need arises - if a man is hungry, he hunts, or if he needs clothing or shelter, he seeks to fashion it. He seldom ever develops a stock of goods for future use, and is thus seldom ever able to draw upon such a stock for the provision of his present needs.

As society advances to the point where there is division of labor, the direct product of a man's labor supplies but a single good, which he must then trade with other men to obtain the totality of goods for the satisfaction of his needs: the farmer raises wheat, quite efficiently, but makes no clothing and must trade his wheat, directly or indirectly, to the tailor.

Another natural consequence is that production occurs in advance of need: the tailor, in the example above, amasses sufficient cloth for future production and produces sufficient clothing for future trade. In some instances, a worker may find that he produces goods just as they are needed to trade for other goods, but the accumulation of stock is more commonplace, even if it is only in small amounts for short periods of time.

It is also a consequences of the division of labor that productivity is improved, such that minimal effort is required to produce the quantity that is needed for the producer to procure the bare necessities of life, and that it is the habit of the greater number of men not to restrict their production to this level, but to produce in excess so as to be able to afford additional comforts and luxuries.