# Profits of Stock — funds — Accumulation of Stock

## Subject

Profits of Stock

## Predicate

funds

## Object

Accumulation of Stock

## Relation Type

produces

## VSM Channel

S3 → S3 (profit retained by capital managers re-enters the stock managed at S3)

## Evidence

Book II, Chapter 3: "Whatever a person saves from his revenue he adds to
his capital, and either employs it himself in maintaining an additional
number of productive hands, or enables some other person to do so, by
lending it to him for an interest."

## Feedback Role

**Capital Accumulation loop (positive/reinforcing):**
Accumulation of Stock → enables → Division of Labour → increases →
Productive Powers of Labour → raises → Profits of Stock → funds →
Accumulation of Stock.

This edge (funds) closes the loop: profit not consumed becomes saving,
and saving becomes the new stock that enables the next round of division
of labour. This is why Smith regards frugality as a public virtue — it
fuels productive capacity rather than dissipating it.
