CHAPTER 57. FUTURE TREND OF VALUES

1. Make a list of the things discussed in this course that tend toward improving the average condition of men.

2. Make a list of those that tend toward worse conditions for the mass of men.

3. State what kinds of material agents will probably increase in value relative to other kinds, giving reasons.

4. State what to your mind are three important economic problems whose answer is most uncertain, giving reasons.

5. If you had the power, what single public measure that you believe would be practicable and effective would you put on the statute books, in order to make a juster division of the social income? Give reasons.

NOTE.--On the subject of this chapter, see Devine, _Economics_, ch. XVII (disposition of the social surplus); Jenks, _The Trust Problem_, pp. 190-211; Marshall, Bk. VI, chs. XI and XII.

INDEX

Ability, variety, 177-83; physical differences, 178; intelligence, 179; training, 180; moral qualities, 180; inequality, 181; scarcity, 182; and occupation, 203; grades, 212; types, 264; selection, 270-2; sterilization, 561-2

Abstinence, definition, kinds, 163; see Saving

Acquisition vs. social production, 259

Affection in personal distribution, 402

Agricultural classes, opposition to commercial, 113

Agricultural stage, 261

Agriculture, machinery in, 238

Alternative uses, relation to costs, 277

America, farms let on shares, 59; land changes hands, 60; exhaustion of the lands, 82; use of interchangeable parts, 85; destruction of forests, 87; coal deposits, 88-9; improvement of horses, 91; watch-factory, 92; price of horses in Boer War, 95; discovery of mines, 102; varied industrial conditions, 108; use of money, 109; expression of wealth, 114; land became part of world's supply, 155; standard of living, 192; size of families, 193; food supply, 194; increase of population, 194; army rations, 196; standard of food, 196; caste, 199; democracy and efficiency, 200; wage system dominant, 227; wages, 232; changing occupations, 234; favorable effect of machinery, 242; difference of race among workers, 247; industrial superiority, 262; Oriental competition, 263; fortunes, 271; profit-sharing, 283; producers' coöperation, 296; consumers' coöperation, 300; industrial stage, 313; crises, 352; gifts by wealthy men, 368; law of inheritance, 373; fortunes, 375; dress of workers, 397; colonial policy toward, 425, 426; custom, 426; gold standard, 432; silver supplies from, 441; gold supplies, 442; paper money, 448-9; effect of silver supplies from, 454, 457; effect of gold output, 457; banks, 468-70; discussion of taxation, 479; prices in California, 483; in different sections, 484; protective tariff, 491-503; growth of manufactures, 497; factory laws, 509-12; state enterprise, 514-17; early settlement on the coast, 526; trade in War of 1812, 526; canals, 528; railroad building, 529; aid to railroads, 535

American Federation of Labor, 245; claims of, 254

American Revolution, economic issues in, 8

Animal economy, provision for wants, 40

Animals, problem of numbers, 185-6

Antisocial profits, 289; of monopoly, 311; from speculation, 377; antisocial use of ability, 378

Appropriation stage, 261

Ashley, W. J., 575

Assignats, 448

Attribution of product, 176

Austrian economists, 570

Authoritative distribution, 406-8; use of, 410-11

Balance of trade, international, 486-7; so-called favorable, 493

Bank-notes, and paper money compared, 447; typical, 465-8; in United States, 469

Banks, and credit, 462-70; functions, 462-5; in United States, 468-70

Barter, definition, 31; under simple conditions, 32-5; difficulty of, 99; decline, 108-14; economy in Middle Ages, 110

Bequest, limitation of right, 368

Bets, see Gambling

Bimetallism, international, 457-9; national, 459-61

Biologic doctrine of population, 186, 187

Biology, shows inequality of talents, 181

Birth-rate, of animals, 187; decreasing American, 193, 561

Böhm-Bawerk, E. von, 570, 571, 572, 577, 580, 583

Boycott, 251

Brooks, R. C., 593

Building laws, 505

Bullock, C. J., 568

Buyers, bidding, 34; margin of advantage, 35

Canadian bank-notes, 468, 470

Canals, as carriers, 528-9

Cannan, Edwin, 571, 573

Capital, origin of term, 112; concept in modern business, 114-7; definition, 115; not identical with money, 115; purpose of borrowing, 116; sum, expressed in years' purchase, 121; sum of expected rents, 122; value not primary, 123; stock, 127; value of stocks fluctuate, 134; time-value and, 142; fixed and increasable forms, 152-3; use by enterprisers, 285; insured by enterprisers, 286; in coöperation, 295; large, 312; amount in factories, 315; value affected by protection, 501

Capitalistic, age, 114, 117; monopoly, 306

Capitalization, of all forms of rent, 118-30; rent-charges as an example of, 118; of land rents, 124; of uniform or varying series of rents, 125-6; increasing role, 127; of any continuing income, 128; of franchises, 129; of corporate incomes, 130; rate, 147; and interest, 168; influenced by taxation, 475

Capitalization, theory of crises, 353-4

Carlyle, T., on wage, 229

Carnegie, Andrew, 268, 270, 372, 377; economies of gifts to libraries, 387, 390

Carver, T. N., 578

Cassel, 578

Caste, and efficiency, 199

Chance, unavoidable, 333; average in industry, 334; artificial, 334; legitimate and illegitimate, 335

Character, affected by expenditure, 398; highest point of production, 400; unity of choice determining, 401

Charitable distribution, 405-6

Charity, public, 507

Cheating and gambling, 335

Child-labor legislation, 509

Choice, of goods, harmony in, 400

Cities, wealth of, contrasted with feudal estates, 111, 113; growth, 504; large, on waterways, 528

City ownership, 514-5; see Public ownership

Clark, J. B., 398; theory of profits and wages, 418, 573, 575, 584

Clews, Henry, on Wall Street finance, 378

Climate, and income, 48

Closed shop, 249-50

Clothing and efficiency, 196; effect of choice of, 396

Coal, use and exhaustion, 88, 558; strike of 1902, 251, 252

Coinage, 433-6; definition, 433; free or gratuitous, 434-6; token, 443-7; free and gratuitous, 443

Coins, light-weight, 443-7

Collective bargaining, 248

Collective enjoyment, as a mode of distribution, 408

Collectivism, 552

Combination and wages, 253-6; of the factors, 260; opposes competition, 429; of capital, see Trusts

Comforts, relative meaning, 11; and luxury, 388

Commercial monopoly, 306

Commercial paper, discounting of, 132

Commissions, to control railroads; 541-3; to control corporations, 545

Commodity-money theory, 450

Common denominator of values, see Money

Commons, J. R., 573

Communism, among Germanic tribes, questioned, 365

Comparative costs, doctrine of, 482-3

Competition, definition, 33; one-sided, 33; present limitations on, 228; the worker in, 229; reduced by trade-unions, 248-50; costly in mercantile business, 298; free, not equality of efficiency, 303; alleged cause of trusts, 322; persistence of, 331; and state action, 422-30; and custom, 422-5; economic harmony through, 425-8; social limiting of, 428-30; modern restrictions, 504

Competitive distribution, 409-10

Competitive price, forces governing, 308

Complementary agents, and value, 78; intensive use of, 78; labor and wealth, 175

Compulsory distribution, 404

Conquest theory of property, 363

Consolidation of railroads, 539-40

Consumers, determining costs, 280; gain from trusts, 325

Consumers', choice influences value, 392; choice influences wages, 394; coöperation, 298-301; League, 394

Consumption, reaction upon production, 392-401; definition of economic, 392; reaction upon material agents, 392-5; reaction upon efficiency of workers, 395-410; effects on consumer, 398; as a conventional division of political economy, 419

Consumption, tax on, 475

Consumption goods, definition, 20; immediately enjoyable, 21; a part of income, 41; differential advantages, 73-5; diagram, grades by quality, 75; proposed uses, 161; saved, 166; see Goods

Continental notes, 448

Contracting out, forbidden, 512

Contract interest, see Interest

Contract rent, see Rent

Contract wages, see Wages

Coöperation, producers', 295-7; consumers', 298-301

Corporation, securities, 127-8; public-service, 129; increase of, 133

Cost, involved in improvements, 90; of operation, 168; in larger production, 319; of government, 474; see Comparative costs

Cost of production, 273-81; from the enterpriser's point of view, 273-6; psychic, 273; alternative, 274; money, 274; and price 276; from the economist's standpoint, 276-81, 422

Courts and industrial legislation, 543, 550-1

Credit, sales involve interest, 134; and banking, 462-70

Crises and industrial depressions, 345-55; caused by sudden tariff changes, 502-3

Crusoe economy, subjective valuations, 30; time-value, 131, 140; saving, 166; economic wages, 208; present and future goods, 219-20; need of judgment, 265

Cultivation, margin of, 64; see Utilization

Custom, and rents, 56; and efficiency, 199, 200; affecting distribution, 409; and competition, 422-5, 429

Daniels, Winthrop M., 571

Davenport, Herbert J., 567

Death-rate, decreasing, 192

Debts, public, as investments, 133

Deferred payments, standard of, 453-61; definition, 453; ideals for a standard, 455-7

Demand, definition, 27; social aspect of choice, 28; law of, 28; curve, 29; elasticity, 29; reciprocal, becomes exchange, 30; curve, diagram, 35

Democracy, and efficiency, 199; effect on race progress, 561, 563

Deposit and discount, 462

Depreciation and rent, 85-7

Desire, see Wants

Destruction, and rent, of wealth, 87-9; accidental, of wealth, 381-2; intentional, 382-3

Devine, Edward T., 587, 594

Dewey, Davis R., 568

Differential advantages, in consumption goods, 73-5; in indirect goods, 75-80

Diminishing returns, law, 61-72; definition, 61; of all agents, 62; technical, 62; economic, 63; other meanings of term, 66-9; general application to space relations, 67-8; confused with large production, 68; technical, 68; historical, 68; development of the concept, 69-72; applies to all wealth, 70; and population, 184; and productivity of labor, 215; the broadest principle of value, 420

Diminishing utility, law, 22; diagram, 24; relation to diminishing returns, 71

Directors, of railroads, obligations of, 539

Discount, commercial, 132, 135

Discovery enlarges natural resources, 156

Discrimination in rates, by monopoly, 310; in railroad rates, 530-3

Distribution, personal and functional, 359; impersonal, 360; personal, nature of, 402-3; definition, 402; of the social income, 402-11; methods of, 404-11; as a conventional division of political economy, 419

Dividends, manipulation of, 130

Division of labor, 201-4; definition, 201; kinds, 201; advantages, 202; calls for directive ability, 264; growth of territorial, 480-2

Dollar, meaning of, 435

Drink, effect of, 396

Durable agents, see Goods

Durableness of rented agents, 55

Economic goods, definition of, 19; see Goods

Economic harmony, through competition, 425-8; definition, 427

Economic law, nature of, 206

Economic monopoly, 306

Economic motives, see Wants

Economic production, 258; see Production

Economic rent, see Rent

Economic wages, see Wages

Economics, nature and purpose 3-8; definition, 3, 4; subject matter, 4; place among social sciences, 5, 6; as a science, 7; synonym for political economy, 7; democratic in aim, 8; importance, 8; aim of study, 412; a part only of social science, 413; central point of, 413; redefined, 555; relation to practical life, 555

Economy, involves choice, 27; the barter, 108; the money, 108-14

Education, free public, 507

Efficiency, talent, and training as factors in, 180; resultant of many qualities, 181; of labor, 195-204; equality of, not essential to competition, 423; see Ability

Ely, Richard T., 568, 584

Emery, Henry C., 585

Employer, adjusts labor to interest rate, 220; see Enterpriser

Employment, no lack of, 183

Energy, sources of, and income, 50

Engels, Frederick, 416

England, idea of rent in, 59; long leases, 59; food supply during Napoleonic wars, 69; coal deposits, 89; wages, 232; changes in 18th century, 237; loans, 240; abnormal effect of machinery, 241; coöperation, 296, 299; use of term monopoly, 304; cotton crisis, 345; crises, 348; endowments limited, 368; grants to royal families, 373; gold standard, 432; prices in Napoleonic wars, 442; bank restriction act, 448-9; balance of imports, 493; discussion of protection, 496

Enjoyable goods, see Consumption goods

Enterprise, income, and social service, 376-7

Enterpriser, function of, 265-72; qualities of, 267-70; selection of, 270-2; his task, 273-5; his costs, 275; medium for consumers' estimates, 280; profits of, 283; origin of term, 284; his services reviewed, 285-8; his risk, 287; intermediary in industry, 287; lacking in coöperation, 297; relation to profit-sharing and coöperation, 300; as risk-taker, 338

Environment, betterment, 92, 162

Ethics, definition, 6; and economics of time-value, 144; of consumption, 395, 398, 401; of railroad problem, 532, 539; see Morality

Europe, industrial methods of, 262

Exchange, in a market, 30-8; and demand, 30, 31; advantage, 31; isolated, 32; of present and future goods, 145-9; as a conventional division of political economy, 419; foreign and domestic, of money, 463; international, see International trade

Extensive margin of indirect goods, 78-9; see Utilization

Extravagance to give employment, 386

Factors, definition, 260; combination of, 260-4; cost of, 274; proportioning of, 275; mutual employment of, 420

Factory, system, growth and effect, 243-4; change in number, 314; limits to growth, 319; legislation, 509-13

Farmers and the tariff, 498-9

Fauna and income, 49

Feeling and utility, 26

Fiat-money theory, 450-1

Fisher, Irving, 571, 575

Fixed charges, 168

Flora and income, 49

Food, and income, 50; and efficiency, 196; effect of, 396; laws and inspection of goods, 506

Foreign exchanges, theory of, 485-8

Forestry, need of, 88

Forests, destruction of, 87-8

Franchises, for public utilities, 96; capitalizing of, 129; granting monopolies, 522

Free competition, see Competition

Free coinage, money value, 435

Freedom, economic, 422-30; definition, 422

Free goods, definition, 19; on the margin of utilization, 75

Free-silver movement in America, 459-61

Free trade, see International trade

Future rents capitalized, 125

Gambling vs. insurance, 333-8; definition of typical, 334; economic theory of 336

George, Henry, his theory of value, 417

Gibson, A. H., 577

Gilman, N. P., on profit-sharing, 293

Glut theory of crises, 351-2

Gold, fitness as money, 102; as money, 432-3; supply of, 435; discoveries, 442; as a standard, 455, 457; increased output, 461; shipping point, 485

Goods, definition, 19; adjustment to wants, 21; shifting series, 27; substitution, 27; series of, 39; relation of indirect to gratification, 46; enjoyable, 47; durable, 47; unripened, 47; degrees of durableness, 48; limited number, 52; free and unlimited, 152

Government, a condition of efficient labor, 198; as consumptive good and productive agent, 473; paper money, see Paper money

Granger stores, 300

Gratification, defined, 16; and marginal utility, 22; temporary, 39; at different times, 45; time-value of, 141, 143

Greenbacks, 448, 451

Gresham's law, 446-7

Hadley, A. T., 579, 580

Happiness, and wealth, 18; and ostentation, 388; and character, 401

Hildebrand, 575

Historical diminishing returns, 68; confused with technical, 70; see Diminishing returns

Home-market argument for protection, 498-9

Honesty, a condition of efficiency, 198; of public officials, 551

Household industry in America, 313

Immigration and protection, 498

Improvements to increase products, 90

Incidence of taxation, 476

Income, as a flow of goods, 39-42; national, social, individual, private, objective, money, 40; gross, net, 41; of consumption goods, 41; present, future, 41; funded, unfunded, 42; as a series of gratifications, 43; psychic, 43-5; all sources of, are productive, 43; affected by objective conditions, 48-52; affected by increasing capital, 152; and social service, 370-80; from property, 370-6; from personal services, 376-80; justice of large, 389-91; distribution of the social, 402-11; and taxation, 474-7; affected by crises, 354-5; personal and impersonal shares, 359-62; personal, 361; complex sources of psychic, 403

Increasable agents, 153-5; scale of increasableness, 158

Increase, of product, 90; of agents, 92, 95; of rent-bearer affects others, 93

Indestructibility imputed to rented agents, 55

Indirect goods, see Goods

Individualism, extreme, its ideal of competition, 410

Industrial depressions, definition, 346

Industrial revolution caused by machinery, 237

Industrial stage, 261

Industry, changes in, affecting money, 101; money reacts upon, 102; diversity of condition in America, 108; changes in Europe, 109; growing complexity as interest falls, 168

Infant-industry argument for protection, 497

Inheritance, effect on industry, 12; social effects, 369-73

Insurance, origin, 337; economic theory of, 338; sound conditions in, 338

Integration of industry, 321

Intensive margin, see Utilization

Interest, opposition to, in Middle Ages, 112; the modern contract forms for borrowing wealth, 114; contract and rent contract, 116; on loans contrasted with rent-charges, 120; increased use of, 121; permitted by Rome, 122; two modes of approach, 123; "the prevailing rate" and capitalization, 124; on money loans, 131-7; gross and net, 132; in credit sales, 134; concealed, 135; evasion of legal rate, 135; adjustment of business to the rate, 140; rate of contract, 147-8; in sacrifice sale, 149; and time-value, 150; relation to rent, 150; first use of term, 151; rate divides present and future uses, 159; and future goods, diagram, 160; equalizer of time-values, 162; rate of, and saving, 165; and capitalization, 168; and improvements, 168; rate relates present and future, 220; contract, with enterpriser, 285; conventional conception of, 413; contract, and deferred payments, 454

Intermediate products and costs, 279

Internal revenue, 475

International demand, ratio of, 484-5

International trade, general theory of, 480-90; as a case of exchange, 480-5; definition, 480; equation of international exchange, definition, 483; cash balance of, 486; real benefits of, 488-90

Interstate Commerce Act, discussion of, 537, 542; workings of, 543; importance of, 545

Inventions, affect rent, 85-6; to increase rent-bearers, 91; adds to supply, 156

Investment, and rate of interest, 148; and saving, 165; in stock of corporation, 342

Ireland, tenants' improvements in, 59

Iron law of wages, 216

Jenks, J. W., on trusts, 327, 584, 594

Jevons, W. S., on the coal-supply, 88

Johnson, A. S., 572

Justice in taxation, 477

Just price, 547

Keasbey, L. M., 576

Knights of Labor, 245

Labor, the old distinction between productive and unproductive, 43, 260; and classes of laborers, 173-83; definition, 173; and play, 173; pleasurable, 174; and wealth, 175; direct and indirect services, 176; grades of, 177; scarcity, 182; supply of, 184-194; employer's and social view, 184; conditions for efficient, 195-204; objective physical conditions, 195-8; social conditions, 198-201; division of, 201-4; of different grades, 212; relation to value, 215-25; productivity of, 215; distance from gratification, 219; no unit of, 224; value of product insured by enterpriser, 286; economized in large production, 318; legislation, 509-13

Labor theory of property, 364

_Laissez faire_, ideal of, 518

Land, rented in Middle Ages, 57, 110; and diminishing returns, 69, 70; and repairs, 81-2; continues to be rented, 113; products of increasing cost, 154; relatively fixed in quantity, 154-5; economic supply of, 155-6; produced, 157; not monopoly, 303

Land grants, to railroads, 535

Large industry, social effects of, 244; in United States, 312-7; advantages of, 318-20; economics of combination, 321

Large production, confused with diminishing returns, 68; sharing of the economics of, 325

Lasalle, Ferdinand, 416

Latin Union, 458

Law, definition, 6; nature of economic, 206; in relation to wealth, 361

Legislation and local interests, 549

Liberty of wage-worker, 231

Lloyd, Henry D., on coöperation, 296

Legal theory of property, 364

Legal-tender, quality of paper money, 447

Loans, short-time, 132, 137; long-time, 133, 138

Luck and profits, 289

Lump of labor, error of notion, 240

Luxury, relative meaning, 11; 385-91; definition, 385; fallacy of, 386-7

Machinery, need of repairs, 83-4; and natural resources, 91; definition, 236; and labor, 236-44; extent of use, 236-8; age of, 237; effect on wages, 239-44; evils of sudden introduction, 239; economy in large production, 318

Malthus, Robert, on fixity of land, 154; on population, 579

Malthusian doctrine, 578

Manual workers, social service of, 379

Manufactures, fallacious contrast with agriculture, 67; do not fix interest rate, 124-5; machinery in, 283

Marx Karl, 416, 417

Marginal contribution of labor, 213

Marginal labor, 210

Marginal pair, 34; diagram, 35

Marginal utility, definition, 23-7; in barter, 32; in use of goods, 64; of consumption goods, 75; of indirect goods, 78-9; of wages, 211, 213; fixes cost of factors, 277; applied to gambling, 336-7; in insurance, 338; of income, 399; extension of the principle, 420-1

Margin of advantage, 34; diagram, 35

Markets, definition, 36; exchange in, 36-8; widening, 36-7; growth, 263

Market value, built on subjective valuation, 35, 38; of time, 145

Marriage, postponement, 190

Marshall, Alfred, 573, 574, 583, 594

Material resources, relation to efficiency, 195

Material wants as motives, 9

Medium of exchange, see Money

Merchants impart utility, 31

Middle Ages, markets, 36; customary rents, 56; renting contract, 57-9; limited use of money, 109-13; rent-charges, 118-22; use of term interest, 151; death-rate, 192; caste, 199; system of labor, 227; industrial changes, 237; marine insurance, 337; no crises, 348; favored classes, 373; sumptuary laws, 390; custom, 424; competition, 425; prices, 441; depreciation of money, 444-5; small political units in, 481; control of industry in, 553

Mill, John Stuart, on fixity of land, 155; on coöperation, 296, 361, 368, 398, 417, 572

Money, as a tool in exchange, 98-107; origin, 98-103; nature of use, 103-5; value, 105-10; as medium of exchange, 99; qualities, 100; materials, 101; an indirect agent, 103; as common denominator, 104; as storehouse of saving, 105; commodities with monetary use, 106; general use of, 107; defined, 107, 431-2; and the concept of capital, 108-17; use in various countries, 109; increasing use in medieval cities, 111; not identical with capital, 115; time-value and, 142; form taken by saving, 167; movement of, before a crisis, 346; use, coinage, and value, 431-42; the precious metals as, 431-6; quantity theory of, 436-42; standard, or primary, 432; fundamental use, 436; average demand for, 437; effect of changes in supply, 454, 457, 459; territorial distribution, 487-8; and foreign trade, 484

Money-changing, 463

Money market, for short-time loans, 137; for productive loans, 139

Money theories of crises, 352-3

Monopoly, of labor, 253; profits, 302-11; nature of, 302-5; definition, 304; kinds of, 305-8; test of, 308; price fixed by, 308-11; meaning, 312; and supply, 324; profits, social burden, 326; in protective tariff, 500-1; in localized public utilities, 519-21; public gain from, 522; power of the railroad, 530, 533

Moral qualities in industry, 180

Morality, as motive, 13-14; of luxury, 389; opposes competition, 429

Mortgages, nature of security, 133

Motives, economic, 9-14; see Wants

Nail trust, 329

Natural economy, 110

Natural law, philosophy of, 426

Natural resources, and income, 49; exhaustion of, 89, 558; adapted and improved, 90; machinery an adaption of, 91; development of, 560; see Land

Natural-rights theory of property, 364

National ownership, 516-7; see Public ownership

Necessities, relative meaning, 11

Negro, simple wants, 11; caste sentiment regarding, 199; working hours, 201

Normal price, 37

Occupation and talent, 203

Occupation theory of property, 363

Oil trust, 328

Open shop, 249-50

Organization, of workers, need of, 246; required for efficiency, 262; and the enterpriser's function, 265-72

Orthodox economists, 415, 416; predictions of, 557

Over-production theory of crises, 351

Ownership, forms of, 363

Paper money, bank-notes as political, 466; experiments, 447-9; definition, 447; theories of, 450-2

Par of exchange, definition, 485, 486

Pastoral stage, 261

Patten, S. N., 586

Permanent possession, 53; see Capitalization, Property

Personal distribution, see Distribution

Physiocratic school, 415

Political corruption and industrial legislation, 550

Political economy, see Economics

Political money, see Paper money

Political monopoly, 305

Political security, and saving, 163; a condition of efficiency, 198

Politics, definition, 6; and the tariff, 503; influence of railroads in, 538

Population, growth in Europe in 18th century, 69; doctrine of, 184-7; related to resources, 184; animal stage of problem, 185; human population, 186; in human society, 187-90; excess, 188; control, 188; current aspect of, 191-4; resultant of many forces, 191; growth not fatalistic, 191; quality, 193, 561, 562; increase in the 19th century, 194

Present and future, wants, 44; rents, 125; goods, 145; competing for labor, 220-21

Price, definition, 36; market and normal, 37; under competition, 308; under monopoly, 309-310; of trusts affected by competition, 331; a social fact, 360; changes, see Money

Primitive society, war in, 188; custom in, 424

Private property, and saving, 164; and monopoly, 306; and inheritance, 359-69; origin, 362-6; limitations, 367-9; vs. socialism, 376

Producers injured by trusts, 330

Producers' coöperation, 295-7; definition, 295

Production, and rate of interest, 166-9; agents of, 175; two sources of economic, 222; and the combination of the factors, 257-64; nature of, 257; economic and personal, 258; social, 259; vs. welfare, 398; unity of process, 418; as a conventional division of political economy, 419; by transportation, 525

Productive goods, definition, 20; affect output of labor, 195

Productive and unproductive industries, 260

Productive labor, see Labor

Profits, unearned, by some directors, 130; on purchase of capital, 138; margin of, 275; loss of, 282-91; definition, 282, 291; meaning of terms, 282-5; a species of economic wages, 284; fluctuation of, 288; statement of law, 289; pseudo, 289; chance, 289-90; conditioned on skill, 290; risk theory of, 291; to promoters of trusts, 322; of promoter, 342; of trustee, 343; before and after a crisis, 347; relation to wages, 415; Clark's theory, 418; in foreign trade, 495

Profit-sharing, 292-5; definition, 292

Progress, of the masses, 232; cause of, 232-3; must grow out of wage system, 234; marked by control over nature, 261; stimulated by luxury, 388; and refinement of desire, 399; by wise method of distribution, 411; due to temporary conditions, 558; social vs. racial, 560; depends on race quality, 561; depends on competition, 562; endangered by status and envy, 563

Promoter, services of, 342; profits, 342-3

Property, private, effect on industry, 12; effect on population, 189, 190; and wealth, 361-2; definition, 362; and social expediency, 370; in land, 374; defense of, 374-5; see Private property

Property tax, 475

Protective social and labor legislation, 504-13

Protective tariff, claimed to be socially expedient, 374, 491-503; definition, 491; nature and claims of protection, 491-6; measure of justification in, 496-501; values as affected by, 501-3; compared with other social legislation, 512

Psychic income, 39-45; complex sources of, 403; see Income

Psychology of crises, 354

Public control of industry, examples, 544-8; difficulties, 548-51

Public interests, limiting private property, 367; paramount in social legislation, 505-9

Public officers, interested in corporations, 343

Public ownership of industry, 514-24; examples of, 514-7; economic aspects of, 517-24

Public policy as to control of industry, see Public control

Public utilities, increase of rents from, 96

Public wants, development of, 472

Publicity of corporation management, 546-7

Quantity theory of money, 436-42; definition, 438; objections to, 439-41

Railroad, need of repairs, 83; and industry, 525-33; as a carrier, 527-30; economic vs. technical efficiency, 527; public nature of, 534-43; privileges of, 534-8; obligations of, 536-8; political and economic power of, 538-40; commissions to control, 541-3

Railroad rates, discrimination in, 530-3; similarity to taxes, 538

Rank of goods, technical, 46

Rapp, George, 266

Real wages, definition, 207; raised by machinery, 242

Recreation, influence on efficiency, 397

Religion, as economic motive, 13-14; opposes competition, 429

Remuneration, profit-sharing as a method, 295; methods of, see Wages

Rent, the renting contract, 53-60; origin of term, 53; several meanings, 54; essence, 55; as usufruct, 55; imputed durableness of rented agents, 55; gross and net, 55; economic and contract, 56-7; history of contract, 56-60; rent charge, 58; economic rent wider than renting contract, 60; connection with gratification, 73; varies with quality, 75; with quantity, diagram, 77; limits of, 79; economic and contract, 79-80; of wealth, affected by repair, depreciation, and destruction, 81-9; changes in, 90-7; of money, 106; basis of capitalization, 122-4; discounted, 123; relation to time-discount, 150-1; and wages, mutually influence, 175; "of ability," 178; and wages, 205; "of labor," 205; relation to wages, 215-8, 221; as personal or impersonal income, 359; conventional conception of, 413; as usufruct, 414; in Middle Ages, 424

Rent-bearers and rents, 90-7

Rent-charges, 58; sale and purchase, 118-22

Renting contract, 53-60; definition, 57; in the Middle Ages, 57; narrow use, 58, 59, 60; and economic rent, 60; hindered improvements, 110; contrasted with interest contract, 116

Repairs, and rent, 81-84; do not prevent decay, 85; and time-value, 143

Replenishing agents, 154

Rhodes, Cecil, 372

Ricardo, David, on fixity of land, 155; labor theory of value, 224, 398, 417, 442, 574

Ripley, W. Z., 575

Risk by enterpriser, 287

Risk theory of profits, 291

Risk-taking, legitimate and illegitimate, 335

Roosevelt, Theodore, efforts to control corporations, 546

Rossignol, J. E. le, 584

Roundabout process, 46, 576

Sage, Russell, on great corporations, 377

Satisfaction, see Gratification

Saturation point for coinage, 443

Saving, and rate of interest, 159-63; conditions favorable to, 163-6; influence on methods of production, 166-9; benefits, 169; future effect of, 560

Scarcity, basis of economy, 19; effect on utility, 73; of various goods, 76; of present goods, 146; of common materials, 153; of all economic goods, 153; of human services, 182; of labor, 207, 225; not synonymous with monopoly, 302

Seager, H. R., 568

Seigniorage, definition, 434; and value, 443-7

Self-interest, social effects of, 427

Sellers' margin of advantage, 35

Serfdom, conditions, 227; see Middle Ages

Services, a condition of income, 207; and wages, 210, 213; social and individual estimates of, 379; see Labor

Shifting of taxes, 476

Silver, fitness as money, 102; as money, 432-3; as a standard, 455

Single-tax, purpose, 374; theory of value, 417

Skill, condition of continuing profits, 290; of labor, see Ability

Slavery, as a system of labor, 227

Smart, 570, 571, 583

Smith, Adam, on money, 103, 181, 182; his "Wealth of Nations," 425-6, 484, 557

Social amelioration, various kinds, 504-9

Social changes, and rents, 94; temporary, 95

Social classes, volitional control in, 190

Social control, progress of, 551-4; see Public control

Social effects of a tariff, 498

Social-expediency theory of property, 365-6; basis of private property, 370; of inheritance, 370-3; of class legislation, 373; of protective tariffs, 374; of rewarding talent, 378; in taxation, 478

Social institutions and personal incomes, 360

Social legislation, growing need, 197, 504

Social sciences, nature, 5; complexity, 5, 6

Socialism, extreme, its ideal of distribution, 410; radical, vs. social reform, 552

Socialistic theory of value, 416

Socialists, predictions of, 553

Social prophecy, 553

Social regulation of bank-notes, 467, 470

Social service and income, 370-80

Specialization, and size of market, 263; of risk-taking, 339-40

Speculation, in goods, 336; as risk-taking, 338-42; in all business, 339; as insurance, 340; by lambs, 341; legitimate and illegitimate, 344; income from, 376-7

Spencer, Herbert, 518

Spiritual needs as economic motives, 13-4

Stages of industry, 313

Standard of deferred payments, see Deferred payments

Standard of living, definition, 191; Asiatic, 191; American, 192; theory of wages, 216; result of sudden change in, 387-8; change in 19th century, 557

State, function to direct competition, 429-30; function of the, 471-3; regulates railroads, 541-2; regulates corporate industry, 544-8; increasing functions, 548

State ownership, 515-6; see Public ownership

State socialism, growth of, 551-2

Status, as method of distribution, 409

Storehouse of saving, see Money

Strength of men and women, 179

Strikes, 251; violence, 252; cost, 252

Subsidiary coinage, 445-6

Subsistence theory of wages, 217

Sugar trust, 328

Sumner, W. G., 567

Supply, relation to utility, 24-6; curve, diagram, 35; of land in economic sense, 155; limitation of better qualities, 158; of labor, 184; and monopoly, 324; and trust prices, 331

Sympathy, as an economic force, 13, 235

Talent and occupation, 203; see Ability

Tariff for revenue, 491; see Protective tariff

Taussig, F. W., 580

Taxation, in its relation to value, 471-9; definition, 471; purposes of, 471-4; forms of, 474-7; principles and practice, 477-9

Taxes, as a mode of distribution, 407

Technical diminishing returns, 68; confused with historical, 70; refers to limited time, 71

Technical rank of goods, 46

Temperance legislation, 507

Temporary use, 53; see Rent

Tenement-house laws, 505

Time, in relation to wants, 44; relation to gratification, 161

Time-discount, of future rents, 125-6; rate fixed in practice, 126

Time relations of goods to wants, 46

Time-value, and interest, 131; theory of, 141-51; definition and scope, 141-5; fixing of rate, 145-51; and rate of interest, 159-50; relation to wages, 219-22; the highest problem of value, 414

Tin-plate trust, 329

Token coins, 445-6

Trade-unions, 245-56; objects, 245-8; methods, 248-53; claims of, 254; effects, on wages, 253-6; and profit-sharing, 294; monopoly of labor, 308

Transportation, as a form of production, 525; changes in 19th century, 529-30

Trant, book on trade-unions, 254-5

Trustee, speculating, 343

Trusts, in United States, growth of, 312-22; recent organization of, 315-7; economic possibilities of consolidation, 321; causes of, 320-2; in legal and popular sense, 320; effect on prices, 323-32; control of, 332

Under-consumption theory of crises, 351

Unearned increments, various kinds, 96

Unions, see Trade-unions

United States, see America

Unproductive labor, see Labor

Unripe goods, see Goods

Usufruct, see Rent

Usury, in Middle Ages, 113; usury laws, 508

Utility, broad sense, 19; see Marginal utility

Utilization, intensive margin, 64; extensive, 65; diagram, 65; equilibrium of two margins, 66; of indirect goods, 78-9

Value, definition, 20; relation of labor to, 222-5; characteristics of, 258; cost of production explanation, 277; genealogy of, (diagram) 278-80; law of, and monopoly price, 311; law of, and trusts, 323; survey of the theory, 412; the unit of, 413; stages of value, 414; various aspects, 419; generality of the law, 420; effect of taxation on, 475-7; future trend of, 555-63

Value theories, relation to social reforms, 415-8

Volitional control, of population, 188, 189, 191, 193, 561

Wage contract, terms of, 229

Wage-fund theory of wages, 217

Wages, related to scarcity, 182; and efficiency, 196; law of, 205-14; nature of, 205-8; and rent, 205; economic and contract, 206; real and nominal, 207; modes of earning, 208-11; methods of remuneration, 211; and the general law of value, 211-4; term "general rate," 211; differences in, 212; statement of law, 213; and rent, 215-8; and time-value, 219-22; law of wages, 215; iron law, 216; and ambition, 230; rise of money form of, 232; real, changes in, 232; more better-paid callings, 233; raised by machinery, 242; in general industry determined by impersonal economic forces, 255; and profits, 284; and profit-sharing, 295; as personal or impersonal income, 359; influenced by consumers' choice, 394; relation to profits, 415; and protective tariff, 495; laws regulating payment, 511

Wages system, and its result, 226-35; defined, 226; development, 227; as it is, 229-31; progress under, 232-5; gloomy view of, 233

Walker, Francis A., theory of wages, 417, 578

Wants, material, 9-12; non-material, 13-4; of animals, 9; primitive, 10; civilized, 10; and progress, 11; growth, 12; refinement, 12; complex, 14; dependence on things, 15; relation to goods, 16; kinds, 21; changing, 26; recurrence, 39; in series, 39; present and future, 44; see Consumption

War, to remedy over-population, 188; affects productive agents, 394

Waste, and luxury, 381-91; of wealth, 381-5; individual, 384; in public outlay, 384-5; fallacy of, 385

Water routes, influence on local advantages, 526-7; economy of, 528

Wealth, and welfare, 15-20; definition, 17, 18; and income, 41; related to gratification, 44; and its indirect uses, 46-52; conditions of economic, 48-52; in city and country, contrasted, 111; loan of, in Middle Ages, 112; concept, and capital concept, 116; and property, 362; inequality of, 375

Welfare, and wealth, 15-20; and instinctive choice, 395; vs. production, 398

Wieser, 570, 571, 580, 583

Wind and water as sources of power, 51

Woman's work, 510

Work, see Labor

Workers, effect of machinery on, 239-44; need of organization, 246; need of direction, 265-7; and profit-sharing, 294; gains from trusts, 325; health in factories, 509-10

Years' purchase, 120

End of Project Gutenberg's The Principles of Economics, by Frank A. Fetter