to favor, spurn it. And that the "practical" but relatively inequitable program of the orthodox Single Taxers will probably prevail over it I must admit. But it is the right program nevertheless. It is the right one, primarily, because it is the only one that accords with the highest justice we can conceive in the matter with our present knowledge. It is the right one, secondarily, because it is the least costly to society. All the land titles in this country can be bought "on the installment plan" by payments not exceeding the value, above their present market prices, of the titles to the public. And even if they could not be bought without the bearing of a positive economic burden by the community, they should be bought nevertheless; for there are other burdens besides economic burdens to be considered. How much did the Civil War cost this country, not only economically but vitally and morally, in comparison with the cost of buying the freedom of every slave?
§ 110. This completes the outline of my theory of interest. Some mistakes will doubtless be found in it; and even if found to be true in the main, it will be greatly developed by later writers. But it is as nearly true, and as complete in essentials, as I could make it without postponing its publication too long. I hope it will do good, especially in eliminating from party Socialism - much of the spirit and some of the tenets of which society should adopt-a grave economic error that threatens seriously to pervert it.
Words printed in italics are technical terms, and in most cases they are more or
less formally defined on the pages the numbers of which immediately follow
them.
Advance, 49, 47-49, three ways of
making an, 49-52; to be distinguished
from what is advanced, 49, 56-57;
not always embodied in discrete ob-
jects, 63-64. Advance to persons, 52.
Advance to nature, 52, 50–51; signifi-
cance of, for theory of interest, 52-
53; represented in Figures I and II
(p. 48) and in Diagram III (p. 91);
value of, 61-63; cost of, 64-66; sup-
ply of, 66-68; point of contact of,
with consumption, 103-104. Rela-
tion of advances to persons to advances
to nature, 52-53, 58-60. Relation of
same to loan interest and to natural
interest respectively, 54-55.
Anarchists, vi-vii, 203-211, 217, 221.
See also Tucker, Proudhon, and
Monopoly.
Aristotle, 1.
Banking facilities and rate of interest,
III-II2.
Bastiat, F., 189.
Bible. See Mosaic law.
Böhm-Bawerk, E. von, author's obli-
gations to, viii, 2 n.; inadequate
definition of principal by, 7-8, 7 n.;
definition of value in terms of margi-
nal utility, 27-32; 66 'differences in
want and provision for want," 117-
123; "underestimation of future
pleasures and pains," 123-124;
"technical superiority of present
goods," 124-146 (esp. 144).
Boninsegni, P., on "ophelimity," 43-46.
Carver, T. N., definition of value, 9,
9 n.; theory of interest, 157-159.
Cause, 32-33; causal relations between
value and cost, 21-25; number of
causes of rate of interest, 105-107.
Changing market, 17–19.
Commodity, 13. See Good.
Consumption, point of contact of, with
making advances to nature, 103-104;
increased, in relation to quality, 177.
Cost, 19; determined by two factors,
19; kinds of, 19-20; personal, 19;
market, 19; nominal, 20; equation
of value and, at margin, 21-23.
Crusoe, natural interest may accrue to,
88-89, 82; interest accruing to, not
to be defined in terms of price, 55-56;
formula for rate of interest in case of,
89.
Davenport, H. J., definition of value,
"Depend," "dependent on," and other
words involving conception of cause,
26-33.
"Differences in want and provision for
want" as cause of interest (Böhm-
Bawerk), 117–123.
Discount, 86, 5, 9, 86-87, 185, 194;
formula for, 87; rate of, 87.
Dishonesty, relation of, to rate of inter-
est, III-112.
Distribution in relation to subjective
factors of value, 25.
"Durable consumption goods," 5-6, 55.
Earned and unearned incomes, vi, 157,
172-173, 177-178, 218-221.
Estimation of advancer, 65, 71-72, and
passim. See also Improvidence and
Underestimation.
"Exploitation" theory, as expressed by | Labor, 13, 12-13.
Marx, 159-170; criticism of, 170- Labor-saving instruments. See Tools.
175. See also Marx and Socialists. Land, income from, in relation to word
rent, 219-221; income from, in rela-
tion to interest according to Turgot,
178-184.
"Fallacy of saving," 176-178. See
Robertson.
"Fructification" theory (Turgot and
H. George), 178-194; criticism of,
193-194.
"Future goods" and "present goods,"
need of exact definition of, 7-10.
George, Henry, 178-193; his theory of
interest, 185-193, criticism of, 193-
Gossen, H. H., on conception of the
margin, 150; on bearing of time for
enjoyment on pain, 12 n.
Heirs, possible influence on advancing
of, 79-80; connection of, with rate
of interest, 108-109.
Hours of labor, not related to rate of
interest as Marx thought, 172.
Improvidence, relation of, to interest,
8-9. See also Estimation.
Interest, cause of, 5-6; causes of nor-
mal rate of, 100-116; secret of prob-
lem of, §§ 43-47, and references under
Principal and Nominal value; in-
dependent of wage system, 172–175;
in what cases it must be conceived
as a value instead of as a price, 55-56.
See also Natural interest and Loan
interest and Interest problem.
Interest problem, difficulty of, 1-10,
esp. 4-5; importance of solution of,
v-vi; secret of, 73-85; relations
of, represented geometrically, Chap-
ter V (esp. Diagram III) (p. 91).
See also Principal and Nominal
value.
Inventions, 6, 102-107, 109-110.
Investment in consumption, 103-104.
Justification of interest, vi, 1, 157, 170-
175, 176-178, 218-221.
Landry, A., 2 n.; his theory, 194–201;
criticism of, 201–203.
Lassalle, F., 156.
Life, duration of, in relation to the
rate of interest, 108-109.
Loan, 49.
Loan interest, 2, 3-4, 54.
Macfarlane, C. W., 1 n., 41 n.
Macvane, S., 156.
Management, efficiency of, and profits,
Marginal utility, a term not needed in
economic theory, 41, 26-27; its
place taken in this book by "depend"
and "dependent on," 26-27; Böhm-
Bawerk on, 27-32. See Utility.
Market. See Market value, Market cost,
Changing market, and Market in
advances.
Market cost, 19. See also Cost and
Value.
Market in advances, 34, 71, Diagram
II (p. 69), Diagram III (p. 91), and
passim.
Market value, 16–17. See also Value.
Marshall, A., 156.
Natural capital, 63-64; not always em-
bodied in discrete objects, 63-64.
Natural interest, 3, 3 n., 54-56; more
formally defined, 82.
Nominal surplus (same as interest), 76,
82-85, 97, 148, 157, 171-173, 176-
177, 218; in relation to tools and ma-
chines, 62-63.
Nominal value, 17-19; subjective factor
of, 19; objective factor of, 19; repre-
sented geometrically, 48, 91, in con-
nection with definition of the prin-
cipal, 57-58; of advances to nature,
61 n.; algebraic equation of, 74-75;
geometrical equation of, 91, 95.
Normal (or normally), 24, 23-24, 173 n.,
and passim; divergence of actual
from normal conditions, in relation
to the rate of interest, 111-116;
normal price, 34.
"Objective exchange value," 16 n.
Objective factor of cost, 15; of pleasure,
14; of value, 15; may be the objec-
tive factor of a value also, 20-21.
Ophelimity, 14 n., 42-46. See Pareto.
Pain, 11; its opposite, II.
Pantaleoni, M., 12 n.
to rent and interest according to
Marx, 170; "average rate of," Marx's
term for natural interest, 3.
Protective tariff system and other causes
that prevent producers from getting
their dues in real wages, 179 n., 219.
Proudhon, P. J., 203.
Rate of Interest, 82; formula for nor-
mal, 85; determined primarily in
respect to advances to nature, 52-53;
on loans, how determined, 53, 84-
85; formula for, per cent, 85; rep-
resented geometrically, 90-98;
causes of, 100-116; actual, as modi-
fied by a factor of risk, 114; apparent,
115; cause of rise of, on value side,
101-105, on cost side, 107-109;
cause of fall of, on value side, 107,
on cost side, 109; tendency of, at
present, 109-110.
Rent, 219-220; Fetter on, 220; rela-
tion of, to interest, 64, 220-224, 173,
173 n.; in Turgot's theory of inter-
est, 178-185. See also Rent contract.
Rent contract (same as lease), 49–50, 219–
220; Fetter on, 220; distinction of
interest contract from, 50. See also
Rent.
Pareto, V., on ophelimity, 14 n., 42-46. | Risk, factor of, 114-115.
Patten, S. N., 41 n.
Pleasure, 11; its opposite, II; on what
dependent, II; dependent on both
objective and subjective factor, 13-
15.
Price, 34; normal, 34, theory of,
Robertson, J. M., 176; theory of,
criticized, 176-178.
Roman Catholic Church and usury, I.
"Sacrifice capitalistique," 194-203.
Saving, "fallacy of." See Robertson.
Seager, H. R., 41 n.
Senior, N. W., his "abstinence theory,"
149-157.
34-
40, causes of, 40, of advances, 47-
89, of advances represented geomet-
rically, 69, 91, 90–98.
Principal, 49, 57-58, 7-10; represented
geometrically, 48, 91, 53-54; ex-
pressed algebraically, 73-75; signifi-
cance of author's definition of, for
theory of interest, 76-77, 117;
hitherto not correctly defined, 7-10.
Privileges, 218-219, 173 n.; rent de-
fined as income from, 219-220.
Productivity, 146, 4, 146–148.
Profit, in wide popular sense, 171 n.;
Marx's definition of, 169; relation of, | Subjective factor of pleasure, 14.
Single-Taxers, 221; program of most
radical of, confuses interest with rent,
222-224.
Socialists, views on interest of, 3, 4, 6,
159-175, v-vii, 221, 156 (Lassalle),
176-178.
Socially created "values," private ap-
propriation of, 173 n., 222-224.
Subjective factor of cost, 15.
Subjective factor of value, 15, 16, 22;
in the case of market value, 16, 23, 73;
in the case of comparative personal
and market value, 25; in the case of
nominal value, 19; in the case of
comparative personal and nominal
values, 77-80. See also 43-46 and
"Subjective use value," 16 n.
Substitution, principle of, 37, 37–38, 26–
33; Böhm-Bawerk on, 27-32, 37.
Surplus value, Marx's theory of, 163-
165; Marx's theory of rate of, 165-
166. See Nominal surplus.
Tools, 61-63, persistence of interest not
due to, 5.
Tucker, B. R., 203, 208, 211, 214–216.
Turgot, A. R. J., 178, 193; his theory,
178-184; criticism of, 185, 193–194.
for properties measured by the curve
OR in Diagram I (p. 36), 41. See
Marginal utility.
Value, 15; determined by two factors,
15; specific kinds of, 16-19; per-
sonal, 16; equation of personal value
and personal cost at margin, 74;
market, 16-17; nominal, 17-19;
equation of cost and, at margin, 21-
23, 38; correspondence of personal
values and market values, 16, 19-20,
23-25, 38-39, 60, 70-71; normal
market, 34-39; non-normal, curve rep-
resenting, Diagram I (p. 36) and
page 42. See also Nominal value,
Subjective factor of value, and Objec-
tive factor of value.
Wage-system and interest, 172–175.
Waiting, 156, 156-157; productivity
and, 157-158.
Walker, F. A., on value, 9, 9 n.
Walras, L., 158.
"Underestimation of future pleasures
and pains," as a cause of interest,
123-124. See also Estimation.
Utility, 13; its dependence on a sub- Want. See Differences in Want.
jective factor, 14; not the right word | Wicksteed, P. H., 17 n.
|