This paper expounds the Theory of Pipeline Capital. It explains the determinants of the stock of funds that would have to remain conserved in a business system with a view to ensuring a (predetermined) rate of activity. For this purpose, it establishes the relationship between inputs and prices, the lengths of various intervals comprising the cash cycle, and the business programme. It also determines how, at what rate, and at what points of time deficits or spareable surpluses occur, as activities go on over a given period of time.