,note3 ,images ( ! orig9al pages are available ?r\gh ,int]net ,ar*ive4 ,see https3_/_/ar*ive4org_/details_/di/ributi veju/#jjryaniala ,,di/ributive ,,ju/ice 99 99 99 99 99 ,illu/ration3 7,,macmillan ,,logo7 ,,! ,,macmillan ,,company ,,new ,,york ,,bo/on ,,*icago ,,dallas ,,atlanta ,,san ,,francisco ,,macmillan ,,co41 ,,limit$ ,,london ,,bombay ,,calcutta ,,melb\rne ,,! ,,macmillan ,,co4 ,,( ,,canada1 ,,ltd4 ,,toronto 99 99 99 99 99 ,,di/ributive ,,ju/ice ,! ,"r & ,wrong ( ,our ,pres5t ,di/ribution ( ,weal? by ,,john ,a4 ,,ryan1 ,d4,d4 ,associate ,pr(essor ( ,political ,sci5ce at ! ,ca?olic ,univ]sity ( ,am]ica2 ,pr(essor ( ,economics at ,tr9ity ,college2 ,au?or ( ,a ,liv+ ,wage1 ,alleg$ ,socialism ( ! ,*ur* ,fa!rs1 ,jo9t ,au?or ) ,morris ,hillquit ( ,socialism3 ,promise or ,m5ace8 ,new ,york ,! ,macmillan ,company #aiaf ,all rights res]v$ ,nihil ,ob/at4 ,,remigius ,,la=t1 ,s4 ,t4 ,d41 ,c5sor4 ,imprimatur4 ,,john ,,c>d9al ,,f>ley1 ,ar*bi%op ( ,new ,york4 ,,copyright1 #aiaf1 ,,by ,,! ,,macmillan ,,company ,set up & electrotyp$4 ,publi%$ ,novemb]1 #aiaf4 ,,to ,,ar*bi%op ,,irel& ,,9 ,,admiration ,,& ,,gratitude ,,preface ,five ( ! n9e memb]s ( ! late ,f$]al ,commission on ,indu/rial ,relations unit$ 9 ! decl>ation t ! fir/ cause ( indu/rial unre/ is1 unju/ di/ribution ( weal? & income4 ,9 all probability ?is judgm5t is %>$ by ! majority ( ! ,am]ican p4 ,reg>d+ ! precise nature & ext5t ( ! inju/ice1 h[ev]1 !re is no su* prepond]ance ( op9ion4 ,ev5 ! mak]s ( e?ical & economic treatises fail to give u any?+ l uni=m or def9ite pron\ncem5ts conc]n+ ! moral defects ( ! pres5t di/ribution4 ,:ile ! ,sociali/s & ! ,s+le ,tax]s are suffici5tly positive 9 _! /atem5ts1 !y =m only a small portion ( ! total population1 & include only an insignificant fraction ( ! recognis$ au?orities on ei!r e?ics or economics4 ,! volume 9 h& repres5ts an attempt to discuss sy/ematically & compreh5sively ! ju/ice ( ! processes by :i* ! product ( indu/ry is di/ribut$4 ,inasmu* z ! product is actually apportion$ among l&[n]s1 capitali/s1 bus9ess m51 & lab\r]s1 ! moral aspects ( ! di/ribution are /udi$ ) ref]5ce to ^! f\r classes4 ,:ile _! rights & obligations =m ! ma9 subject ( ! book1 ! ef=t is also made to propose re=ms t w\ld remove ! pr9cipal defects ( ! pres5t sy/em & br+ ab\t a l>g] measure ( ju/ice4 ,_m treatises h be5 writt5 conc]n+ ! morality ( "o or o!r elem5t or section ( ! di/ributive process2 = example1 wages1 int]e/1 monopoly1 ! l& "q2 b1 s f> z ! au?or kn[s1 no attempt has hi!rto be5 made to discuss ! moral aspects ( ! entire process 9 all its p>ts4 ,at lea/1 no su* task has be5 und]tak5 by any "o :o believes t ! exi/+ economic sy/em is n inh]5tly unju/4 ,t ! pres5t essay 9 ?is field falls f> %ort ( adequate a*ievem5t ! au?or fully realises1 b he is su/a9$ by ! hope t x w provoke discussion1 & move "s m compet5t p]son to till ! same field 9 a m ?or\gh & fruitful way4 ,,john ,a4 ,,ryan4 ,! ,ca?olic ,univ]sity ( ,am]ica1 ,wa%+ton1 ,d4 ,c41 ,june #ad1 #aiaf4 ,,cont5ts ,,preface vii ,,introductory ,,*apt]3 ,,! ,,elem5ts ,,& ,,scope ,,( ,,! ,,problem xiii ,g5]al ,ref]5ces xvii ,,section ,i ,,! ,,morality ,,( ,,private ,,l&[n]%ip ,,& ,,r5t ,,*apt] ,,page ,i ,,! ,,l&[n]',s ,,%>e ,,( ,,! ,,national ,,product #c ,economic ,r5t ,always ,goes to ! ,l&[n] #d ,economic ,r5t & ,comm]cial ,r5t #e ,! ,cause ( ,economic ,r5t #f ,,ii ,,l&[n]%ip ,,9 ,,hi/ory #h ,no ,private ,own]%ip 9 ,pre-,agricultural ,conditions #aj ,h[ ! ,*ange ,probably ,took ,place #ab ,limit$ ,"* ( ,primitive ,common ,own]%ip #ad ,private ,own]%ip ,g5]al 9 ,hi/orical ,times #ae ,conclusions f ,hi/ory #ag ,,iii ,,! ,,argum5ts ,,aga9/ ,,private ,,l&[n]%ip #ai ,argum5ts by ,sociali/s #ai ,h5ry ,george's ,attack on ! ,title ( ,fir/ ,occupancy #ba ,8 ,def5ce ( ! ,title ( ,lab\r #bd ,! ,"r ( all ,m5 to ! ,b\nty ( ! ,e>? #cj ,! ,alleg$ ,"r ( ! ,community to ,l& ,values #ci ,,iv ,,private ,,own]%ip ,,! ,,be/ ,,sy/em ,,( ,,l& ,,t5ure #dh ,! ,sociali/ ,proposals ,impracticable #dh ,inf]iority ( ! ,s+le ,tax ,sy/em #ea ,v ,,private ,,l&[n]%ip ,a ,,natural ,,"r #ef ,?ree ,pr9cipal ,k9ds ( ,natural ,rights #eg ,private ,l&[n]%ip ,indirectly ,necess>y = ,individual ,welf>e #ei ,excessive ,int]pretations ( ! ,"r ( ,private ,l&[n]%ip #fa ,! ,doctr9e ( ! ,fa!rs & ! ,!ologians #fb ,! ,tea*+ ( ,pope ,leo ,,xiii #fd ,,vi ,,limitations ,,( ,,! ,,l&[n]',s ,,"r ,,to ,,r5t #fg ,! ,t5ant's ,"r to a ,dec5t ,livelihood #fi ,! ,lab\r]'s ,claim ,^u ! ,r5t #ga ,,vii ,,defects ,,( ,,! ,,exi/+ ,,l& ,,sy/em #gd ,l&[n]%ip & ,monopoly #ge ,excessive ,ga9s f ,private ,l&[n]%ip #hj ,exclusion f ! ,l& #ij ,,viii ,,me?ods ,,( ,,re=m+ ,,our ,,l& ,,sy/em #id ,! ,leas+ ,sy/em #ie ,public ,agricultural ,l&s #ig ,public ,own]%ip ( ,urban ,l& #ih ,appropriat+ ,future ,increases ( ,l& ,value #ajj ,"s ,objections to ! ,increm5t ,tax #ajb ,! ,morality ( ! ,proposal #ajh ,! ,g]man & ,briti% ,increm5t ,taxes #aad ,transf]r+ ,o!r ,taxes to ,l& #aag ,! ,morality ( ! ,plan #abj ,am\nt ( ,taxes ,practically ,transf]able #abb ,! ,social ,b5efits ( ! ,plan #abg ,a ,sup]tax on ,l>ge ,hold+s #acj ,ref]5ces on ,section ,i #acc ,,section ,,ii ,,! ,,morality ,,( ,,private ,,capital ,,& ,,int]e/ ,,ix ,,! ,,nature ,,& ,,! ,,rate ,,( ,,int]e/ #acg ,mean+ ( ,capital & ,capitali/ #acg ,mean+ ( ,int]e/ #ach ,! ,rate ( ,int]e/ #ada ,x ,,! ,,alleg$ ,,"r ,,( ,,lab\r ,,to ,,! ,,entire ,,product ,,( ,,indu/ry #ade ,! ,lab\r ,!ory ( ,value #adf ,! ,"r ( ,productivity #adi ,,xi ,,! ,,sociali/ ,,s*eme ,,( ,,indu/ry #aeb ,sociali/ ,inconsi/5cy #aeb ,expropriat+ ! ,capitali/s #aed ,ineffici5t ,indu/rial ,lead]%ip #aeh ,ineffici5t ,lab\r #afb ,attempt$ ,replies to ,objections #afb ,re/rict+ ,individual ,lib]ty #afh ,,xii ,,alleg$ ,,intr9sic ,,ju/ifications ,,( ,,int]e/ #aga ,attitude ( ! ,*ur* ,t[>d ,int]e/ on ,loans #agb ,int]e/ on ,productive ,capital #age ,! ,claims ( ,productivity #agg ,! ,claims ( ,s]vice #aha ,! ,claims ( ,ab/95ce #ahb ,,xiii ,,social ,,& ,,presumptive ,,ju/ifications ,,( ,,int]e/ #ahg ,limitations ( ! ,sacrifice ,pr9ciple #ahg ,! ,value ( ,capital 9 a ,no-,int]e/ ,rgime #ahh ,:e!r ! ,pres5t ,rate ( ,int]e/ is ,necess>y #aia ,:e!r at ,lea/ two ,p] ,c5t4 is ,necess>y #aic ,:e!r any ,int]e/ is ,necess>y #aif ,! ,/ate is ,ju/ifi$ 9 ,p]mitt+ ,int]e/ #aii ,civil ,au?orisation n ,suffici5t = ,individual ,ju/ification #bja ,h[ ! ,int]e/-,tak] is ,ju/ifi$ #bjd ,,xiv ,,co-,,op]ation ,a ,,p>tial ,,solv5t ,,( ,,capitalism #baj ,r$uc+ ! ,rate ( ,int]e/ #baa ,ne$ = a ,wid] ,di/ribution ( ,capital #bac ,! ,ess5ce ( ,co-op]ative ,ent]prise #bad ,co-op]ative ,cr$it ,societies #baf ,co-op]ative ,agricultural ,societies #bag ,co-op]ative ,m]cantile ,societies #bbj ,co-op]ation 9 ,production #bbb ,advantages & ,prospects ( ,co-op]ation #bbh ,ref]5ces on ,section ,,ii #bcc ,,section ,,iii ,,! ,,moral ,,aspect ,,( ,,pr(its ,,xv ,,! ,,nature ,,( ,,pr(its #bcg ,! ,functions & ,rew>ds ( ! ,bus9ess ,man #bcg ,! ,am\nt ( ,pr(its #bci ,pr(its 9 a ,jo9t-,/ock ,company #bda ,,xvi ,,! ,,pr9cipal ,,canons ,,( ,,di/ributive ,,ju/ice #bdc ,! ,canon ( ,equality #bdc ,! ,canon ( ,ne$s #bdd ,! ,canon ( ,ef=ts & ,sacrifice #bdf ,! ,canon ( ,productivity #bdg ,! ,canon ( ,sc>city #bej ,! ,canon ( ,human ,welf>e #beb ,,xvii ,,j ,,pr(its ,,9 ,,conditions ,,( ,,competition #bed ,! ,"q ( ,indef9itely ,l>ge ,pr(its #bee ,! ,"q ( ,m9imum ,pr(its #beh ,! ,"q ( ,sup]flu\s ,bus9ess ,m5 #bfj ,,xviii ,,! ,,moral ,,aspect ,,( ,,monopoly #bfb ,surplus & ,excessive ,pr(its #bfc ,! ,"q ( ,monopoli/ic ,effici5cy #bfe ,discrim9ative ,und]sell+ #bfg ,exclusive-,sales ,contracts #bgj ,discrim9ative ,transportation ,arrangem5ts #bgb ,natural ,monopolies #bgc ,me?ods ( ,prev5t+ ,monopoli/ic ,inju/ice #bge ,legalis$ ,price ,agreem5ts #bgg ,,xix ,,! ,,moral ,,aspects ,,( ,,/ockwat]+ #bgi ,injuri\s ,effects ( ,/ockwat]+ #bha ,! ,moral ,wrong #bhd ,! ,innoc5t ,inve/or #bhf ,magnitude ( ,ov]capitalisation #bhh ,,xx ,,! ,,legal ,,limitation ,,( ,,=tunes #bia ,! ,me?od ( ,direct ,limitation #bib ,limitation ,?r\gh ,progressive ,taxation #bif ,! ,prop] ,rate ( ,income & ,inh]itance ,taxes #bii ,effectiv5ess ( ,su* ,taxation #cjj ,,xxi ,,! ,,duty ,,( ,,di/ribut+ ,,sup]flu\s ,,weal? #cjc ,! ,"q ( ,di/ribut+ ,"s #cjc ,! ,"q ( ,di/ribut+ ,all #cjh ,"s ,objections #caa ,a ,false ,conception ( ,welf>e & ,sup]flu\s ,goods #cad ,! ,true ,conception ( ,welf>e #caf ,ref]5ces on ,section ,,iii #cah ,,section ,,iv ,,! ,,moral ,,aspects ,,( ,,wages ,,xxii ,,"s ,,unacceptable ,,!ories ,,( ,,wage-,,ju/ice #cbc ,i ,! ,prevail+-,rate ,!ory #cbc ,n 9 ,h>mony ) ,ju/ice #cbe ,,ii ,ex*ange-,equival5ce ,!ories #cbf ,! ,rule ( ,equal ,ga9s #cbf ,! ,rule ( ,free ,contract #cbh ,! ,rule ( ,m>ket ,value #ccj ,! ,m$ival ,!ory #ccb ,a ,mod]n ,v>iation ( ! ,m$ival ,!ory #ccg ,,iii ,productivity ,!ories #cdj ,lab\r's ,"r to ! ,:ole ,product #cda ,cl>k's ,!ory ( ,specific ,productivity #cdg ,c>v]'s ,modifi$ ,v]sion ( ,productivity #cea ,,xxiii ,,! ,,m9imum ,,( ,,ju/ice2 ,a ,,liv+ ,,wage #cef ,! ,pr9ciple ( ,ne$s #cef ,?ree ,fundam5tal ,pr9ciples #ceh ,! ,"r to a ,dec5t ,livelihood #cfj ,! ,claim to a ,dec5t ,livelihood f a ,pres5t ,occupation #cfb ,! ,lab\r]'s ,"r to a ,liv+ ,wage #cfc ,:5 ! ,employ] is ,unable to ,pay a ,liv+ ,wage #cff ,an ,objection & ,"s ,difficulties #cgj ,! ,family ,liv+ ,wage #cgc ,o!r ,argum5ts 9 ,fav\r ( a ,liv+ ,wage #cgf ,! ,money ,measure ( a ,liv+ ,wage #cgh ,,xxiv ,,! ,,problem ,,( ,,complete ,,wage ,,ju/ice #cha ,comp>ative ,claims ( ,diff]5t ,lab\r ,gr\ps #cha ,wages ,v]sus ,pr(its #chh ,wages ,v]sus ,int]e/ #cij ,wages ,v]sus ,prices #cic ,conclud+ ,rem>ks #cih ,,xxv ,,me?ods ,,( ,,increas+ ,,wages #djj ,! ,m9imum ,wage 9 ,op]ation #djj ,! ,"q ( ,con/itutionality #dje ,! ,e?ical & ,political ,aspects #djg ,! ,economic ,aspect #djh ,op9ions ( ,economi/s #dab ,o!r ,legislative ,proposals #daf ,lab\r ,unions #dag ,organisation ,v]sus ,legislation #dbj ,p>ticipation 9 ,capital ,own]%ip #dbc ,ref]5ces on ,section ,,iv #dbe ,,xxvi ,,summ>y ,,& ,,conclusion #dbf ,! ,l&[n] & ,r5t #dbf ,! ,capitali/ & ,int]e/ #dbg ,! ,bus9ess ,man & ,pr(its #dbh ,! ,lab\r] & ,wages #dcj ,conclud+ ,obs]vations #dca ,,index #dec ,,introductory ,,*apt] ,,! ,,elem5ts ,,& ,,scope ,,( ,,! ,,problem ,di/ributive ju/ice is prim>ily a problem ( incomes r ?an ( possessions4 ,x is n imm$iately conc]n$ ) ,john ,br[n's railway /ock1 ,john ,:ite's h\se1 or ,john ,smi?'s automobile4 ,x deals ) ! morality ( su* possessions only indirectly & "u "o aspect2 t is1 9 s f> z !y h be5 acquir$ ?r\gh income4 ,moreov]1 x deals only ) ^? incomes t are d]iv$ f p>ticipation 9 ! process ( production4 ,= example2 x consid]s ! lab\r]'s wages1 b n ! subsidies t he may receive ?r\gh *>ity or fri5d%ip4 ,its prov9ce is n ! di/ribution ( all ! goods ( ! c\ntry among all ! p ( ! c\ntry1 b only ! di/ribution ( ! products ( indu/ry among ! classes t h tak5 "p 9 ! mak+ ( ^! products4 ,^! classes are f\r1 designat$ z l&[n]s1 capitali/s1 und]tak]s or bus9ess m51 & lab\r]s or wage e>n]s4 ,! individual memb] ( ea* class is an ag5t ( production1 :ile ! in/rum5t or en]gy t he owns & contributes is a factor ( production4 ,?us1 ! l&[n] is an ag5t ( production because he contributes to ! productive process ! factor kn[n z l&1 & ! capitali/ is an ag5t ( production because he contributes ! factor kn[n z capital2 :ile ! bus9ess man & ! lab\r] are ag5ts n only 9 ! s5se t !y contribute factors to ! process1 b 9 ! v special s5se t _! contributions involve ! cont9u\s exp5diture ( human en]gy4 ,n[ ! product ( indu/ry is di/ribut$ among ^! f\r classes precisely because !y are ag5ts ( production2 t is because !y own & put at ! disposal ( indu/ry ! indisp5sable factors ( production4 ,we say t ! ag5ts ( production put ! factors ( production at ! disposal ( indu/ry1 r ?an ex]cise or op]ate ! factors1 because nei!r ! l&[n] nor ! capitali/1 z su*1 exp5d cont9u\s en]gy 9 ! productive process4 ,all t is necess>y to en=ce a claim ^u ! product is to contribute an in/rum5t or factor )\t :i* production _c be c>ri$ on4 ,! product di/ribut$ 9 any c\ntry dur+ a s+le ye> is v>i\sly describ$ by economi/s z ! national product1 ! national income1 ! national divid5d4 ,x consi/s n m]ely ( mat]ial goods1 su* z h\ses1 food1 clo?+1 & automobiles1 b also ( ^? non-mat]ial goods kn[n z s]vices4 ,su* are ! tasks p]=m$ by ! dome/ic s]vant1 ! b>b]1 ! *auffeur1 ! public (ficial1 ! physician1 ! tea*]2 or any o!r p]sonal s]vice t is valu$1 z mat]ial commodities are valu$1 accord+ to _! sell+ prices4 ,ev5 ! s]vices ( ! cl]gyman are includ$ 9 ! national income or product1 s9ce !y are paid = & =m a "p ( ! annual supply ( good ?+s produc$ & di/ribut$ )9 ! c\ntry4 ,9 ! language ( ! economi/1 any?+ t satisfies a human want is a utility1 & =ms "p ( ! national weal?2 h5ce !re c be no suffici5t reason = exclud+ f ! national income goods :i* m9i/] to spiritual or intellectual wants4 ,! s]vices ( ! cl]gyman1 ! actor1 ! au?or1 ! pa9t]1 & ! physician are q z mu* a "p ( ! utilities ( life z ! s]vices ( ! cook1 ! *amb]maid1 or ! b>b]2 & all are z cle>ly utilities z bread1 hats1 h\ses1 or any o!r mat]ial ?+4 ,9 a g5]al way1 !re=e1 we say t ! national product :i* is available = di/ribution among ! diff]5t productive classes comprises all ! utilities1 mat]ial & non-mat]ial1 t are produc$ ?r\gh human ag5ts & satisfy human desires4 ,9 ! great majority ( in/ances ! product is n di/ribut$ 9 k9d4 ,! :eat produc$ on a giv5 f>m is n directly apportion$ among ! f>m]s1 lab\r]s1 & l&[n]s t h co-op]at$ 9 its production2 nor are ! %oes turn$ out by a giv5 factory divid$ among ! co-op]at+ lab\r]s & capitali/s2 & x is obvi\s t p]sonal s]vices _c be return$ to ! p]sons t h r5d]$ !m4 ,cases ( p>tial direct di/ribution d1 inde$1 occur2 z :5 ! t5ant takes two-?irds & ! l&[n] "o-?ird ( ! crop rais$ by ! =m] on l& belong+ to ! latt]2 or :5 ! mill] receives 8 comp5sation 9 a "p ( ! fl\r t he gr9ds4 ,to-day1 h[ev]1 su* in/ances are relatively insignificant4 ,by f> ! great] "p ( ! mat]ial product is sold by ! und]tak] or bus9ess man1 & ! price is !n divid$ betwe5 himself & ! o!r ag5ts ( production4 ,all p]sonal s]vices are sold1 & ! price is obta9$ by ! p]=m]s !re(4 ,! f>m] sells 8 :eat1 ! mill] 8 fl\r1 & ! b>b] 8 s]vices4 ,) ! money receiv$ = 8 "p 9 production ea* productive ag5t obta9s possession ( su* k9ds & am\nts ( ! national product z 8 desires dictate & 8 income w procure4 ,h5ce ! di/ribution ( ! product is effect$ ?r\gh ! conv]sion ( produc]s' claims into money1 & ! ex*ange ( ! latt] = specific quantities & qualities ( ! product4 ,:ile ! national product z a :ole is divid$ among ! f\r productive classes1 n e portion ( x is di/ribut$ among actually di/9ct repres5tatives ( ^! classes4 ,:5 m ?an "o factor ( production is own$ by ! same p]son1 ! product w obvi\sly n g to f\r diff]5t classes ( p]sons4 ,= example2 ! crop rais$ by a man on 8 own unmortgag$ l&1 ) 8 own in/rum5ts1 & )\t any hir$ assi/ance2 & ! products ( ! small %opkeep]1 tailor1 & b>b] :o are simil>ly self suffici5t & indep5d5t1--are 9 ea* case obta9$ by "o p]son1 & d n und]go any actual di/ribution4 ,ev5 9 ^! in/ances1 h[ev]1 !re occurs :at may be call$ virtual di/ribution1 inasmu* z ! s+le ag5t owns m ?an "o factor1 & p]=ms m ?an "o productive function4 ,& ! problem ( di/ributive ju/ice 9 su* cases is to det]m9e :e!r all ^! productive functions are prop]ly rew>d$ ?r\gh ! total am\nt :i* ! individual has receiv$4 ,:]e ! factors are own$ by di/9ct p]sons1 or gr\ps ( p]sons1 ! problem is to det]m9e :e!r ea* gr\p is prop]ly remun]at$ = ! s+le function t x has p]=m$4 ,! problem ( ! morality ( indu/rial incomes is obvi\sly complex4 ,= example2 ! income ( ! f>m] is sometimes d]iv$ f a product :i* he mu/ divide ) a l&[n] & ) lab\r]s2 sometimes f a product :i* he %>es ) lab\r]s only2 & sometimes f a product :i* he c reta9 :olly = himself4 ,! lab\r]'s income arises sometimes out ( a product :i* he divides ) o!r ag5ts ( production2 sometimes out ( a product :i* he divides ) o!r lab\r]s z well z o!r ag5ts2 & sometimes out ( a product ( :i* he receives ! full money equival5t4 ,! complexity ( ! =ces det]m9+ di/ribution & income indicate a complexity 9 ! =ces affect+ ! morality ( income4 ,moreov]1 !re is ! m fundam5tal e?ical "q conc]n+ ! titles ( di/ribution3 :e!r m]e own]%ip ( a factor ( production gives a j claim ^u ! product1 z 9 ! case ( ! l&[n] & ! capitali/2 :e!r su* a claim1 assum+ x to be valid1 is z good z t ( ! lab\r] & ! bus9ess man1 :o exp5d human en]gy 9 ! productive process2 :e!r diff]5t k9ds ( productive activity %\ld be rew>d$ at diff]5t rates2 & if s 9 :at proportion4 ,:y %\ld ! capitali/ receive six p] c5t41 r ?an two p] c5t41 or sixte5 p] c5t48 ,:y %\ld ! locomotive eng9e] receive m ?an ! trackman8 ,:y %\ld n all p]sons be comp5sat$ equally8 ,%\ld all or any ( ! b5efits ( indu/rial improvem5ts g to ! consum]8 ,su* are typical que/ions 9 ! /udy ( di/ributive ju/ice4 ,!y are suffici5t to give "s idea ( ! magnitude & difficulty ( ! problem4 ,sc>cely less =midable is ! task ( sugge/+ means to correct ! inju/ices ( ! pres5t di/ribution4 ,! difficulties 9 ?is "p ( ! field are indicat$ by ! multiplicity ( social rem$ies t h be5 propos$1 & by ! fact t none ( !m has succe$$ 9 w9n+ ! adhesion ( m ?an a m9ority ( ! population4 ,we %all be oblig$ n only to pass moral judgm5t ^u ! mo/ important ( ^! proposals1 b to indicate & advocate a m or less complete & sy/ematic gr\p ( su* re=ms z seem to be at once feasible & righte\s4 ,,g5]al ,,ref]5ces ,,taussig3 ,pr9ciples ( ,economics4 ,macmillan2 #aiaa4 ,,devas3 ,political ,economy4 ,longmans2 #aija4 ,,hobson3 ,! ,indu/rial ,sy/em4 ,longmans2 #aiji4 ,,cl>k3 ,! ,di/ribution ( ,weal?4 ,macmillan2 #ahii4 ,,sm>t3 ,! ,di/ribution ( ,income4 ,london2 #ahii4 ,,will\ghby3 ,social ,ju/ice4 ,macmillan2 #aijj4 ,,c>v]3 ,essays 9 ,social ,ju/ice4 ,h>v>d ,univ]sity ,press2 #aiae4 ,,ely3 ,prop]ty & ,contract 9 ,_! ,relations to ! ,di/ribution ( ,weal?4 ,macmillan2 #aiad4 ,,ne>+3 ,income4 ,macmillan2 #aiae4 ,,/reight(f3 ,! ,di/ribution ( ,incomes 9 ! ,unit$ ,/ates4 ,longmans2 #aiab4 ,,wagn]3 ,grundlegung d] ,nationaloekonomie4 ,leipzig2 #ahib-ahid4 ,,pes*3 ,lehrbu* d] ,nationaloekonomie4 ,freiburg2 #aije-aiac4 ,,anto9e3 ,c\rs d'conomie ,sociale4 ,p>is2 #ahii4 ,,hitze3 ,capital et ,travail4 ,l\va92 #ahih4 ,,holl&]3 ,! ,abolition ( ,pov]ty4 ,h\ghton ,miffl9 ,company2 #aiad4 ,,ellwood3 ,! ,social ,problem4 ,macmillan2 #aiae4 ,,g>riguet3 ,! ,social ,value ( ! ,gospel4 ,h]d]2 #aiaa4 ,,p>k9son3 ,a ,prim] ( ,social ,sci5ce4 ,dev9-,adair ,co42 #aiac4 ,,v]me]s*3 ,quae/iones de ,ju/itia4 ,bruges2 #aija4 ,,k+3 ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates4 ,macmillan2 #aiae4 ,,commission ,,on ,,indu/rial ,,relations4 ,f9al ,report2 #aiae4 ,,section ,i ,,! ,,morality ,,( ,,private ,,l&[n]%ip ,,& ,,r5t ,,di/ributive ,,ju/ice ,,*apt] ,i ,,! ,,l&[n]',s ,,%>e ,,( ,,! ,,national ,,product ,t "p ( ! national product :i* repres5ts l&1 & is attribut$ specifically to l&1 goes to ! l&[n]4 ,x is call$ economic r5t1 or simply r5t4 ,we say t r5t is attribut$ specifically to l&1 r ?an is produc$ specifically by l&1 because we d n "k :at proportion ( ! jo9t product ( ! diff]5t factors ( production exactly reflects ! productive contribution ( any factor4 ,economic r5t repres5ts ! productivity ( l& 9 s f> z x indicates :at m5 are will+ to pay = l&-use 9 ! productive process4 ,9 any p>ticul> case r5t comes into exi/5ce because ! l& makes a comm]cially valuable contribution to ! product2 & x goes to ! l&[n] because ?is is "o ( ! p[]s or rights includ$ 9 ! in/itution ( private own]%ip4 ,& ! l&[n]'s %>e is receiv$ by him precisely 9 8 capacity z l&[n]1 & n because he may happ5 to be lab\r]1 f>m]1 or proprietor ( agricultural capital4 ,x is p]haps sup]flu\s to obs]ve t n all l& produces r5t4 ,:ile almo/ all l& is useful & productive1 at lea/ pot5tially1 !re is 9 almo/ e locality "s l& :i* 9 pres5t conditions does n w>rant m5 9 pay+ a price = its use4 ,if ! crop rais$ on v s&y soil is s small z to cov] m]ely ! outlay = lab\r & capital1 m5 w n pay r5t = ! use ( t soil4 ,yet ! l& has contribut$ some?+ to ! product4 ,h]e9 we h ano!r indication t r5t is n an adequate measure ( l& productivity4 ,x m]ely repres5ts l& value1--at a giv5 "t1 9 giv5 circum/ances4 ,economic ,r5t ,always ,goes to ! ,l&[n] ,all l& t is 9 use1 & = ! use ( :i* m5 are will+ to pay a price yields r5t1 :e!r x is us$ by a t5ant or by ! own]4 ,9 ! latt] case ! own] may n call ! r5t t he receives by t "n2 he may n di/+ui% betwe5 x & ! o!r portions ( ! product t he gets f ! l&2 he may call ! entire product pr(its1 or wages4 ,nev]!less ! r5t exi/s z a surplus ov] t "p ( ! product t he c reg>d z ! prop] return = 8 lab\r1 & = ! use ( 8 capital-in/rum5ts1 su* z1 horses1 build+s1 & ma*9]y4 ,if a f>m] employs ! same am\nt & k9d ( lab\r & capital 9 ! cultivation ( two pieces ( l&1 "o ( :i* he owns1 ! o!r be+ hir$ f "s "o else2 if 8 net product is ! same 9 bo? cases1 say1 #a1jjj doll>s2 & if he mu/ pay #bjj doll>s to ! own] ( ! hir$ l&1--!n1 #bjj ( ! #a1jjj doll>s t he receives f 8 own l&1 is likewise to be attribut$ specifically to 8 l& r ?an to 8 capital or lab\r4 ,x is r5t4 ,:ile ! :ole product is due 9 "s degree to ! productive p[] ( l&1 #bjj doll>s ( x repres5ts l& value 9 ! process ( production1 & goes to him solely 9 8 capacity z l&[n]4 ,! r5t t arises on l& us$ = build+ sites is ( ! same g5]al "*1 & goes likewise to ! own] ( ! l&4 ,! own] ( ! site ^u :i* a factory is locat$ may hire x to ano!r = a c]ta9 sum annually1 or he may op]ate ! factory himself4 ,9 ei!r case he receives r5t1 ! am\nt t ! l& itself is wor? = use1 indep5d5tly ( ! return t he obta9s = 8 exp5diture ( capital & lab\r4 ,ev5 :5 a p]son uses 8 l& z a site = a dwell+ :i* he himself occupies1 ! l& /ill br+s him economic r5t1 s9ce x af=ds him some?+ = :i* he w\ld be oblig$ to pay if 8 h\se 7 locat$ on l& ( ! same k9d own$ by "s "o else4 ,economic ,r5t & ,comm]cial ,r5t ,x w be obs]v$ t ! l&[n]'s %>e ( ! product1 or economic r5t1 is n id5tical ) comm]cial r5t4 ,! latt] is a paym5t = l& & capital1 or l& & improvem5ts1 comb9$4 ,:5 a man pays n9e hundr$ doll>s = ! use ( a h\se & lot = a ye>1 ?is sum conta9s two elem5ts1 economic r5t = ! lot1 & int]e/ on ! money inve/$ 9 ! h\se4 ,assum+ t ! h\se is wor? t5 ?\s& doll>s1 & t ! usual return on su* inve/m5ts is eight p] c5t41 we see t eight hundr$ doll>s goes to ! own] z int]e/ on 8 capital1 & only "o hundr$ doll>s z r5t = 8 l&4 ,simil>ly ! price paid by a t5ant = ! use ( an improv$ f>m is p>tly int]e/ on ! value ( ! improvem5ts1 & p>tly economic r5t4 ,9 bo? cases ! own] may reckon ! l& z s mu* capital value1 & ! economic r5t z int]e/ !reon1 j z ! comm]cial r5t = ! build+s & o!r improvem5ts is int]e/ on _! capital value2 b ! economi/ di/+ui%es betwe5 !m because he kn[s t !y are det]m9$ by diff]5t =ces1 & t ! di/9ction is ( importance4 ,he kn[s1 = example1 t ! supply ( l& is fix$1 :ile ! supply ( capital is capable ( indef9ite increase4 ,9 _m situations1 !re=e1 r5t increases1 b int]e/ rema9s /ation>y or decl9es4 ,sometimes1 ?\gh m r>ely1 ! rev]se occurs4 ,z we %all see lat]1 ?is & "s o!r specific *>act]i/ics ( l& & r5t h important moral aspects2 consequ5tly ! morali/ _c af=d to confuse r5t ) int]e/4 ,! ,cause ( ,economic ,r5t ,! cause ( economic r5t is ! fact t l& is limit$ relatively to ! dem& = x4 ,if l& 7 z pl5tiful z air m]e own]%ip ( "s portion ( x w\ld n enable ! own] to collect r5t4 ,z l&[n] he w\ld receive no income4 ,if he cultivat$ 8 l& himself ! return !refrom w\ld n exce$ normal comp5sation = 8 lab\r1 & normal int]e/ on 8 capital4 ,s9ce no "o w\ld be compell$ to pay = ! use ( l&1 competition among ! diff]5t cultivators w\ld keep ! price ( _! product s l[ t x w\ld m]ely reimburse !m = _! exp5ditures ( capital & lab\r4 ,9 simil> conditions no r5t w\ld arise on build+ sites4 ,! cause ( ! am\nt ( r5t may also be /at$ 9 t]ms ( sc>city4 ,at any giv5 "t & place1 ! r5t ( a piece ( l& w be det]m9$ by ! supply ( t k9d ( l& relatively to ! dem& = x4 ,h[ev]1 ! dem& itself w be regulat$ by ! f]tility or by ! location ( ! l& 9 "q4 ,two pieces ( agricultural l& equally di/ant f a city1 b ( v>y+ f]tility1 w yield diff]5t r5ts because ( ?is diff]5ce 9 natural productiv5ess4 ,two pieces ( gr\nd ( equal natural adaptability = build+ sites1 b at unequal di/ances f ! c5tre ( a city1 w produce diff]5t r5ts on acc\nt ( _! diff]5ce ( location4 ,! absolute sc>city ( l& is1 ( c\rse1 fix$ by nature2 its relative sc>city is ! result ( human activities & desires4 ,! def9ition ( r5t adopt$ 9 ^! pages1 :at m5 are will+ to pay = ! use ( l&1 or1 :at l& is wor? = use1 is simpl] & m concrete1 ?\gh possibly less sci5tific1 ?an ^? ord9>ily f\nd 9 manuals ( economics1 namely3 t portion ( ! product t rema9s aft] all ! usual exp5ditures = lab\r1 capital1 & directive ability h be5 d$uct$2 or1 ! surplus :i* any piece ( l& yields ov] ! poore/ l& devot$ to ! same use1 :5 ! return f ! latt] is only suffici5t to cov] ! usual exp5ses ( production4 ,! /atem5t t all r5t goes to ! l&[n] supposes t1 9 ! case ( hir$ l&1 ! t5ant pays ! full am\nt t w\ld result f competitive bidd+4 ,evid5tly ?is 0 n ! case "u ! feudal sy/em1 :5 r5ts 7 fix$ by cu/om & rema9$ /ation>y = c5turies4 ,ev5 to-day1 competition is n p]fect1 & m5 (t5 obta9 ! use ( l& = less ?an !y or o!rs might h be5 will+ to give4 ,b ! /atem5t 9 "q does describe :at t5ds to happ5 9 a sy/em ( competitive r5ts4 ,be=e discuss+ ! morality ( ! l&[n]'s income1 & ( r5t receiv+1 we may ) pr(it glance at ! hi/ory ( l& t5ure4 ,?us we %all get "s idea1 fir/1 ( ! antiquity ( ! pres5t sy/em1 &1 second1 ( its effects ^u individual & social welf>e4 ,bo? ^! consid]ations h an important be>+ ^u ! moral problem2 = l5g? ( exi/5ce creates a presumption 9 fav\r ( ! social1 & !re=e ! moral1 value ( any in/itution2 & pa/ exp]i5ce is our *ief means ( det]m9+ :e!r an in/itution is likely to be socially b5eficial1 & !re=e morally "r1 9 ! future4 ,,*apt] ,,ii ,,l&[n]%ip ,,9 ,,hi/ory ,?irty or ?irty-five ye>s ago1 ! majority ( economic hi/orians seem$ to accept ! !ory t l& 0 orig9ally own$ 9 common4#a ,!y held t 9 ! beg9n+ ! community1 usually a village community1 0 ! l&[n]2 t ! community ei!r cultivat$ ! l& z a corporation1 & di/ribut$ ! product among ! individual memb]s1 or p]iodically divid$ ! l& among ! social units1 & p]mitt$ ! latt] to cultivate _! allotm5ts sep>ately4 ,! second ( ^! =ms ( t5ure 0 ! m g5]al4 ,! primitive "t to :i* ! !ory ref]r$ 0 n ! p]iod :5 m5 got _! liv+ by hunt+ & fi%+1 or by re>+ h]ds1 b ! agricultural /age ( economic developm5t1 :5 life _h become settl$4 ,( ! argum5ts ^u :i* ! !ory 0 bas$1 "s consi/$ ( ambigu\s /atem5ts by anci5t writ]s1 su* z ,plato1 ,cs>1 & ,tacitus1 & o!rs 7 m]ely inf]5ces drawn f ! exi/5ce ( c]ta9 agr>ian in/itutions3 family own]%ip ( l&2 common pa/ure l&s & woodl&s2 p]iodical di/ribution ( l& among ! cultivators1 z 9 ! ,g]man ,m>k1 ! ,russian ,mir1 ! ,slavonic ,zadruga1 & ! ,javanese ,dessa4 ,all ^! practices h be5 int]pret$ z survivals ( primitive common own]%ip4 ,only on ?is hypo!sis1 x is argu$1 c !y be satisfactorily expla9$4 ,m rec5t writ]s h subject$ ! v>i\s argum5ts = ?is !ory to a se>*+ criticism4#b ,to-day ! great majority ( s*ol>s w\ld und\bt$ly accept ! conclusion ( ,fu/el de ,c\langes1 t ! argum5ts & evid5ce are n suffici5t to prove t 9 ! e>lie/ /ages ( agricultural life l& 0 held 9 common2 & a majority w\ld probably take ! m positive gr\nd t common own]%ip 9 ! s5se ( communal cultivation & di/ribution1 nev] exi/$ = any consid]able l5g? ( "t among any agricultural p4 ,! pres5t au?oritative op9ion on ! subject is ?us summ>iz$ by ,pr(essor ,a%ley3 ,f ! e>lie/ hi/orical times1 9 ,gaul & ,g]many1 v mu* l& 0 own$ individually1 & weal? on "o side & slav]y on ! o!r 7 always v important factors 9 ! situation4 ,ev5 9 ,g]many1 communal own]%ip ( l& 0 nev] a fundam5tal or g5]ally p]vasive social in/itution2 !re 0 some?+ v mu* l l>ge private e/ates1 work$ by dep5d5ts & slaves1 f ! v e>lie/ days ( ,teutonic ,settlem5t4 ,z to ,engl&1 x is highly probable t we %all n f9d any?+ t c fairly be call$ a g5]al communal sy/em ( l&[n+1 comb9$ ) a sub/antial equality among ! majority ( ! p1 "u conditions ( settl$ agriculture4 ,to f9d x 9 any s5se we %all h to g back to an e>li] & 'tribal' condition1 if1 inde$1 we %all f9d x !re6#c ,no ,private ,own]%ip 9 ,pre-,agricultural ,conditions ,:5ev] & :]ev] m5 got _! liv+ by hunt+ & fi%+1 !re 0 no inducem5t to own l& privately1 except possibly ^? portions ^u :i* !y built _! huts or h\ses4 ,until !y become m or less an agricultural p !y are usually hunt]s or fi%]m5 or bo?1 & possibly also to a limit$ ext5t keep]s ( %eep & cattle4 ,population is !n sp>se & unoccupi$ t]ritory is pl5tiful1 & que/ions ( ! own]%ip ( p>ticul> tracts ( l& d n conc]n !m4#d ,9 any region occupi$ by a gr\p or tribe1 all portions ( ! l& & ! wat] 7 ab\t equally productive ( game & fi%2 ! am\nt obta9able by any individual _h no relation to lab\r on any p>ticul> piece ( soil2 & x 0 mu* easi] = ea* to range ov] ! :ole region 9 common ) 8 fell[s ?an to m>k (f a def9ite section ^u :i* he w\ld n p]mit o!rs to come1 b beyond :i* he himself w\ld n be p]mitt$ to g4 ,9 su* conditions private own]%ip ( l& w\ld h be5 folly4 ,tribal or gr\p own]%ip 01 h[ev]1 9 vogue1 especially among ^? gr\ps t 7 9 control ( ! bett] gr\nds or /reams4 ,ev5 ?is =m ( proprietor%ip 0 comp>atively un/able1 s9ce ! p 7 to a consid]able degree nomadic1 & 7 will+ to ab&on pres5t possessions :5ev] !re 0 a prospect ( obta9+ bett] ones else:]e4 ,among m5 :o got _! liv+ by re>+ h]ds1 ! inducem5t to hold l& 9 exclusive private control w\ld be some:at /rong]4 ,! bett] graz+ tracts w\ld be covet$ by _m diff]5t p]sons1 especially 9 ! m popul\s communities4 ,& !re w\ld always be ! possibility ( confusion among ! diff]5t h]ds1 & cont5tion among _! own]s4 ,9 su* circum/ances ! advantages ( exclusive control w\ld sometimes outweigh ! b5efits ( common use & own]%ip4 ,9 ! ?irte5? *apt] ( ,g5esis we are told t1 ow+ to /rife betwe5 ! h]dsm5 ( ,abram & ,lot1 ! bro!rs sep>at$1 & agre$ to become ! exclusive possessors ( diff]5t t]ritories4 ,nev]!less1 x is probable t tribal own]%ip 0 ! prevail+ =m ( l& t5ure s long z p rema9$ ma9ly 9 pa/oral conditions4 ,x is likewise probable t ! same sy/em cont9u$ 9 _m cases = "s "t aft] m5 began to cultivate ! soil4 ,at lea/1 ?is w\ld seem to h be5 ! natural arrangem5t :ile l& 0 pl5tiful1 & ! me?ods ( cultivation crude & soil-exhau/+4 ,x w\ld be m pr(itable to take up new l&s ?an to cont9ue ^u ! old4 ,)9 hi/orical times ?is sy/em prevail$ among ! anci5t ,g]mans1 "s ( ! tribes ( ,new ,zeal&1 & "s ( ! tribes ( ,we/]n ,africa4 ,:]e l& 0 n s pl5tiful x 0 sometimes r$i/ribut$ among individuals or heads ( families1 z (t5 z a dea? occurr$ or a new memb] arriv$ 9 ! community4 ,"s ( ! tribes & peoples :o obs]v$ ?is practice 7 ! anci5t ,iri%1 ! aborig9es ( ,p]u1 ,mexico1 & p>ts ( :at is n[ ! ,unit$ ,/ates1 & ,au/ralia1 & "s ( ! tribes ( ,africa1 ,india1 & ,malaysia4#e ,:e!r ! mo/ primitive agricultural sy/ems ( e p 7 ( ?is nature we h1 ( c\rse1 no means ( kn[+1 b ! supposition is antec$5tly probable2 = agriculture mu/ h begun v gradually1 & be5 = "s "t practis$ 9 connection ) ! m primitive me?ods ( obta9+ a livelihood4 ,z ! l& _h be5 held = ! mo/ "p 9 common dur+ ! hunt+ & fi%+ /age & dur+ ! pa/oral /age1 ! same arrangem5t w\ld probably cont9ue until ! p f\nd x necess>y to cultivate ! same tracts ( l& ye> aft] ye>1 & conceiv$ ! desire to reta9 _! hold+s 9 /able possession & to transmit !m to _! *ildr54 ,moreov]1 s long z ! memb]s ( ! clan rema9$ /rongly consci\s ( _! k9%ip1 & realis$ ! necessity ( act+ z a unit aga9/ _! enemies1 !re w\ld be a /rong inc5tive to clan own]%ip ( ! l&1 & clan allotm5t ( x among ! individual memb]s4 ,9 o!r words1 ! clan w\ld1 9 ^! circum/ances1 h ! same motives = common own]%ip t exi/ to-day 9 ! family4 ,! olde/ hi/orical peoples1 ! ,israelites1 ,egyptians1 ,assyrians1 ,babylonians1 & ,*9ese1 _h private own]%ip ( l& at ! beg9n+ ( _! record$ hi/ory4 ,mo/ ( !m1 h[ev]1 _h be5 cultivat+ l& = a consid]able l5g? ( "t1 & _h acquir$ a consid]able degree ( civilisation1 be=e ! e>lie/ p]iod ( _! exi/5ce ( :i* we h any k4 ,x is q possible t ^? among !m t _h pass$ ?r\gh ! hunt+ & fi%+ or ! pa/oral /age ( exi/5ce1 _h practis$ tribal or common own]%ip dur+ ! e>li] portion ( _! agricultural life4 ,h[ ! ,*ange ,probably ,took ,place ,! *ange f tribal to private l&[n]%ip c\ld h occurr$ 9 a great v>iety ( ways4 ,= example1 ! *ief1 patri>*1 or k+ might h gradually obta9$ great] au?ority 9 mak+ ! allotm5ts ( l& among ! memb]s ( ! tribe or gr\p1 & ?us acquir$ a degree ( control ov] ! l& :i* 9 "t became practical own]%ip2 he might h seiz$ ! hold+s ( deceas$ p]sons1 or ( ^? :o 7 unable to pay him ! tax or tribute t he dem&$1 or ( ^? :o 7 = any reason obnoxi\s to him4 ,aga91 ! taxes paid to ! *ief man 9 a community = 8 s]vices z rul] might h come 9 "t to be reg>d$ z a paym5t = ! use ( ! l&1 & !re=e z an ackn[l$gm5t t ! *ief 0 also ! l&lord4 ,ev5 9 ! ,middle ,ages ! r5ts receiv$ by ! feudal lords 7 9 great measure a return = social & political s]vices1 j z are ! taxes receiv$ to-day f private l&[n]s by ! ,/ate4 ,9 primitive times1 z well z lat] on1 ! *ief w\ld naturally d 8 be/ to conv]t ?is in/itution ( tax pay+ or tribute pay+ into r5t pay+1 & to add ! position ( l&[n] to 8 o!r pr]ogatives4 ,aft] all1 ! transition f tribal own]%ip1 ) private cultivation & private receipt ( ! produce ( individual allotm5ts1 to ov]lord%ip & l&lordism1 w\ld n h be5 great] ?an t :i* actually took place 9 ,engl& betwe5 ! fifte5? & ! n9ete5? c5turies1 :5 ! lords became absolute own]s ( l& t !y _h previ\sly held ) _! t5ants 9 a sort ( divid$ or dual own]%ip4 ,9 a ^w1 tribal own]%ip c\ld h be5 displac$ by l&lordism ?r\gh ! same me?ods t h be5 us$ ev]y:]e by ! p[]ful1 ! ambiti\s1 & ! gre$y aga9/ ! weak1 ! indiff]5t1 & ! upright4 ,nor mu/ we =get ! influ5ce ( conque/4 ,mo/ ( ! c\ntries t appe> 9 hi/orical times ) a sy/em ( private own]%ip _h at "s previ\s p]iod be5 subjugat$ by an ali5 p4 ,9 _m ( ^! ! conqu]ors und\bt$ly introduc$ a consid]able degree ( individual own]%ip1 ! m p[]ful among !m becom+ l&lords1 :ile _! weak] companions & ! mass ( ! conqu]$ population 7 e/abli%$ 9 a condition ( t5ancy4 ,:]e a some:at widely diffus$ private own]%ip succe$$ ! primitive sy/em1 x 0 probably due to ! free action ( ! cultivators1 z soon z !y came to realise ! inconv5i5ces ( own]%ip 9 common4 ,any enclos$ l& r\nd _! p]man5t dwell+s1 & any l& outside ! settlem5t :i* 0 cle>$1 reclaim$1 & cultivat$1 or occupi$ ) cattle by individuals or families1 0 recognis$ z _! p]sonal prop]ty4 ,only ^? :o 7 indu/ri\s1 ent]pris+1 & c\rage\s en\gh w\ld cle>1 occupy1 reta91 cultivate1 & def5d wa/e l&4 ,!y w\ld become p]sonal own]s ( cattle1 & w\ld gradually acquire weal? :i* w\ld enable !m to employ o!rs & /ill fur!r improve _! position4 ,z _! p[] increas$1 & z population grew1 ! brave/1 weal?ie/1 & mo/ capable fight+ m5 among/ !m w\ld become *iefs or a species ( nobles1 & ! =ce ( circum/ances1 (t5 no d\bt aid$ by =ce & fraud1 w\ld ev5tually make !m ! l&[n]s ( ! great] "p ( ! di/rict1 ) ! m or less will+ acquiesc5ce & cons5t ( ! community among/ :om !y liv$1 & to :om !y ext5d$ _! protection4#f ,limit$ ,"* ( ,primitive ,common ,own]%ip ,a great deal ( ! opposition to ! !ory ( primitive common own]%ip ( agricultural l&1 seems to be bas$ ^u an exagg]at$ conception ( ! scope ( t in/itution4 ,! av]age man :o ?9ks or speaks ( own]%ip to-day has 9 m9d ! ,roman concept & practice ( private prop]ty4 ,?is includes ! unre/rict$ "r ( disposal2 t is1 ! p[] to hold p]man5tly1 to transf] or transmit1 to use or to abuse or n to use at all1 to reta9 ! product ( ! own]'s use1 to r5t ! prop]ty to any p]son & = any p]iod t ! own] *ooses1 & to obta9 a price 9 return call$ r5t4 ,any man :o takes ! !ory ( primitive common own]%ip to imply t ! community or tribe ex]cis$ all ^! p[]s ov] its l&1 w h no difficulty 9 prov+ t ! evid5ce is ov]:elm+ly aga9/ any su* !ory4 ,ev5 among ^? p t are c]ta9ly kn[n to h practis$ s-call$ common own]%ip ( l&1 !re are v few in/ances ( communal cultivation1 or communal di/ribution ( ! product4 ,yet ^! are includ$ 9 ! ,roman concept ( own]%ip4 ,! usual me?od seems to h be5 p]iodical allotm5t by ! community ( ! l& among individuals1 individual cultivation ( ! allott$ tracts1 & individual own]%ip ( ! product4 ,moreov]1 !re 0 always a *ief or patri>* :o ex]cis$ consid]able au?ority 9 ! di/ribution ( ! l&1 frequ5tly collect$ a r5t or tax f ! cultivators1 & almo/ inv>iably ex]cis$ some?+ l private own]%ip ( a portion ( ! l& = 8 direct & special b5efit4 ,sometimes o!r m5 ( importance 9 ! community possess$ l& :i* 0 n subject to ! communal allotm5t4 ,primitive own]%ip ( l& 9 common 01 !re=e1 v f> f ve/+ 9 ! community all ! p[]s t inh]e 9 ! private proprietor ( l& accord+ to ! ,roman law & usage4 ,private ,own]%ip ,g5]al 9 ,hi/orical ,times ,s mu* = l& t5ure 9 prehi/oric times4 ,dur+ ! hi/orical p]iod ( ! exi/5ce ( ! race1 almo/ all civilis$ peoples h practis$ "s =m ( private own]%ip 9 ! matt] ( _! arable l&s4 ,:ile diff]+ consid]ably at v>i\s times & places1 x has always exclud$ communal allotm5t ( l& & communal di/ribution ( ! product1 & has always includ$ private receipt ( ! product by ! own]-us]1 or private receipt ( r5t :5 ! own] transf]r$ ! use to "s "o else4 ,b x did n always include ! "r to det]m9e :o %\ld be ! us]4 ,9 ! lat] c5turies ( ! feudal sy/em1 = example1 ! "l c\ld n always expel ! t5ants f ! l&1 nor prev5t !m f transmitt+ ! use ( x to _! *ildr54 ,moreov]1 ! r5t t he receiv$ 0 cu/om>y & fix$1 n competitive & arbitr>y1 & x 0 look$ ^u 9 great measure z a return to ! "l = social1 milit>y1 & political s]vices1 z well z a paym5t = ! use ( l&4 ,?is sy/em 0 private own]%ip1 inde$1 b if we apply ! ,roman notion ( own]%ip we %all f9d x difficult to decide :e!r ! t5ant or ! "l %\ld m prop]ly be call$ ! own]4 ,at any rate1 ! "r ( own]%ip possess$ by ! "l 0 greatly limit$ by re/rictions :i* fav\r$ ! masses ( ! cultivators4 ,9 e community !re 7 common wood l&s & pa/ure l&s = ! free use ( all ! inhabitants4 ,among o!r re/rictions ( private own]%ip & control 9 fav\r ( ! pr9ciple ( equal access to ! l& by all p]sons1 we may m5tion ! division ( ! ,engli% ville9's hold+ into sev]al portions1 int]m+l$ ) ^? ( 8 neighb\rs1 s t ea* w\ld h ab\t ! same am\nt ( good l&2 & ! anci5t ,hebrew law :]eby ali5at$ l& 0 return$ to ! desc5dants ( its orig9al own]s e fifty ye>s4#g ,reckon+ ! feudal "l1 & all o!r ov]lords :o _h ! same control ov] l&1 z private proprietors1 we may say t 9 hi/orical times ! arable l& ( e c\ntry has be5 own$ by a m9ority ( ! population4 ,s9ce ! d[nfall ( feudalism1 ! t5d5cy 9 mo/ regions ( ! ,we/]n _w has be5 t[>d an increase 9 ! numb] ( own]s1 & a decrease 9 ! numb] ( great e/ates4 ,?is t5d5cy has be5 especially m>k$ dur+ ! la/ "o hundr$ ye>s4 ,x w1 h[ev]1 ne$ to cont9ue = a v long "t1 or else to increase its pace v rapidly1 be=e l& own]%ip w be diffus$ 9 any?+ l ! measure t is necess>y if its b5efits are to be %>$ by all ! p4 ,ev5 9 ! ,unit$ ,/ates1 :]e ! di/ribution is p]haps m g5]al ?an 9 any o!r c\ntry1 only #ch4d p] c5t4 ( ! families 9 t[ns & cities own$1 9 #aiaj1 ! homes 9 :i* !y liv$1 & !re=e ! l& ^u :i* _! homes 7 locat$4 ,9 ! rural di/ricts ! p] c5t4 ( home-own+ families 0 only #fb4h4 ,conclusions f ,hi/ory ,:at conclusions does hi/ory w>rant conc]n+ ! social & moral value ( private l&[n]%ip8 ,"h we are on v unc]ta9 gr\nd2 = diff]5t inf]5ces may be drawn f ! same gr\p ( facts if a diff]5t section ( !m be select$ = emphasis4 ,sir ,h5ry ,ma9e & ,h5ry ,george bo? accept$ ! !ory ( primitive agr>ian communism1 b ! =m] saw 9 ?is assum$ fact a pro( t common own]%ip 0 suit$ only to ! ne$s ( rude & undevelop$ peoples1 :ile ! latt] reg>d$ x z a sure indication t common own]%ip 0 fundam5tally natural & 9 accordance ) p]man5t social welf>e4 ,! fact t practically all peoples ^: hi/ory we "k disc>d$ communal = private own]%ip z soon z !y _h acquir$ a mod]ate degree ( pr(ici5cy 9 me?ods ( cultivation & 9 ! arts ( civilis$ life does1 inde$1 create a presumption t ! latt] sy/em is ! bett] = civilis$ m54 ,to ?is ext5t ,sir ,h5ry ,ma9e is "r4 ,aga9/ ?is presumption ,h5ry ,george ma9ta9$ t common own]%ip 0 ab&on$ solely because ( ! usurpation1 fraud1 & =ce employ$ by ! p[]ful & privileg$ classes4 ,und\bt$ly ?is factor play$ a great "p 9 br++ ab\t ! private own]%ip t has exi/$ & /ill exi/s1 b x does n acc\nt = ! in/itution z a :ole & ev]y:]e4 ,if *iefs1 k+s1 & o!r p[]ful p]sonages _h nev] usurp$ control ( ! l&1 if no p _h ev] conqu]$ ! t]ritory ( ano!r1 x is probable t private own]%ip w\ld h tak5 place to ! same ext5t1 al?\gh x w\ld h be5 mu* m widely diffus$4 ,= ! sy/em ( p]iodical rep>tition ( l&1 to say no?+ ( communal cultivation & communal di/ribution ( ! product1 does h9d] t atta*m5t to a p>ticul> portion ( ! soil & t int5sive cultivation :i* are s necess>y to ! be/ int]e/s ( ! cultivator1 ! mo/ productive use ( ! l&1 & !re=e ! welf>e ( society4 ,on ! o!r h&1 ! limitations on ! "r ( private own]%ip :i* h be5 e/abli%$ 9 s _m places & times 9 fav\r ( ^? :o 7 n own]s1 %[ t m5 h v g5]ally look$ ^u l& z 9 "s measure ! inh]itance ( all ! p4 ,h5ce arises ! presumption t ?is conviction is b ! reflection ( fundam5tal & p]man5t human ne$s4 ,summ+ up ! matt]1 we may say t ! hi/ory ( l& t5ure po9ts on ! :ole to ! conclusion t private own]%ip is socially & individually pref]able to agr>ian communism1 b t x %\ld be some:at /rictly limit$ 9 ! int]e/ ( ! non-own]s1 & ( ! community z a :ole4 ,,footnotes3 #a ,! mo/ notable expon5ts ( ?is view 73 ,von ,maur]1 ,e9leitung zur ,ges*i*te d] ,m>k1 #ahed2 ,viollet1 ,biblio!que de l'cole des *>tres1 #ahgb2 ,ma9e1 ,village ,communities 9 ! ,ea/ & ! ,we/1 #ahgb2 & ,de ,laveleye1 ,de la proprit et ses =mes primitives1 #ahgd1 ( :i* an ,engli% translation appe>$ 9 #ahgh "u ! title1 ,primitive ,prop]ty4 #b ,*ief among ^! writ]s are3 ,fu/el de ,c\langes 9 an article 9 ,revue des ,que/ions ,hi/oriques1 ,april1 #ahhi2 translat$ by ,m>g>et ,a%ley1 & publi%$ ) an introductory *apt] by ,w4 ,j4 ,a%ley "u ! title1 ,! ,orig9 ( ,prop]ty 9 ,l&1 #ahia2 ,g4 ,von ,bel[1 ,beilage zur ,allgeme9e ,zeitung3 ,das kurze ,leb5 e9] vielg5annt5 ,!orie1 #aijc2 ,f4 ,seebohm1 ,! ,village ,community1 #ahhc4 ,cf4 ,:ittak]1 ,own]%ip1 ,t5ure1 & ,taxation ( ,l&1 #aiad1 *4 ii2 ,ca?re91 ,das ,privatgrundeig5?um und se9e ,gegn]1 #aiji2 & ,pes*1 ,lehrbu* d] ,nationaloekonomie1 ,i1 #ahc-ahh4 #c ,quot$ 9 ,:ittak]1 op4 cit41 pp4 #bg1 #bh4 #d ,idem1 p4 #bi4 #e ,cf4 ,p4 ,w4 ,joyce1 ,a ,social ,hi/ory ( ,anci5t ,irel&1 #aijc2 & ,let\rneau1 ,prop]ty3 ,its ,orig9 & ,developm5t1 #ahif4 #f ,:ittak]1 op4 cit41 pp4 #cj1 #ca4 #g ,leviticus xxv1 #bc-bh4 ,,*apt] ,,iii ,,! ,,argum5ts ,,aga9/ ,,private ,,l&[n]%ip ,if l& 7 n privately own$ !re w\ld be no receiv+ ( r5t by individuals4 ,!re=e1 ! morality ( ! l&lord's %>e ( ! national product is intimately relat$ to1 & is usually treat$ 9 connection )1 ! morality ( private own]%ip4 ,sub/antially all ! oppon5ts ( private prop]ty 9 l& to-day are ei!r ,sociali/s or disciples ( ,h5ry ,george4 ,9 ! view ( ! =m]1 l& z well z ! o!r means ( production %\ld be own$ & manag$ by ! ,/ate4 ,al?\gh !y are m num]\s ?an ! ,georgeites1 _! attack ^u private l&[n]%ip is less conspicu\s & less =midable ?an ! propag&a c>ri$ on by ! ,h5ry ,george m54 ,! ,sociali/s give mo/ ( _! att5tion to ! artificial in/rum5ts ( production1 deal+ ) l& only incid5tally1 implicitly1 or occasionally4 ,! foll[]s ( ,h5ry ,george1 commonly kn[n z ,s+le ,tax]s or ,s+le ,tax m51 def5d ! private own]%ip ( artificial capital1 or capital 9 ! /rict economic s5se1 b desire t ! control ( ! community ov] ! natural means ( production %\ld be s f> ext5d$ z to appropriate = public uses all economic r5t4 ,_! criticism ( private own]%ip is n only m prom95t ?an t made by ! ,sociali/s1 b is bas$ to a mu* great] ext5t ^u e?ical consid]ations4 ,argum5ts by ,sociali/s ,inde$1 ! or?odox or ,m>xian ,sociali/s are logically deb>r$ by _! social philosophy f pass+ a /rictly moral judgm5t ^u prop]ty 9 l&4 ,= _! !ory ( economic det]m9ism1 or hi/orical mat]ialism1 involves ! belief t private l&[n]%ip1 l all o!r social in/itutions1 is a necess>y product ( economic =ces & processes4 ,h5ce x is nei!r morally good nor morally bad4 ,s9ce nei!r its exi/5ce nor its cont9uance dep5ds ^u ! human w1 x is entirely devoid ( moral quality4 ,x is z unmoral z ! succession ( ! seasons1 or ! movem5t ( ! tides4 ,& x w disappe> ?r\gh ! inevitable processes ( economic evolution4 ,z express$ by ,engels3 ,! gr[+ p]ception t exi/+ social in/itutions are unreasonable & unju/1 t reason has become unreason1 & "r wrong1 is only pro( t 9 ! modes ( production & ex*ange *anges h tak5 place1 ) :i* ! social ord]1 adapt$ to e>li] economic conditions1 is no long] 9 keep+4#h ,frequ5tly1 h[ev]1 ! individual ,sociali/ =gets ?is mat]iali/ic !ory1 & falls back ^u 8 common s5se1 & 8 innate conceptions ( "r & wrong1 ( free w & responsibility4 ,in/ead ( reg>d+ ! exi/+ l& sy/em z a m]e product ( bl9d economic =ces1 he (t5 d5\nces x z morally wrong & unju/4 ,8 cont5tions may be r$uc$ to two propositions3 ,! proprietor :o takes r5t f a cultivator robs ! produc] ( a "p ( 8 product2 & no "o has a "r to take = 8 exclusive use t :i* is ! natural h]itage & means ( support = all ! p4 ,ref]r+ to ! receipt ( #ce1jjj1jjj p\nds a ye> 9 r5t by #h1jjj ,briti% l&lords1 ,hyndman & ,morris exclaim3 ,yet 9 ! face ( all ?is a c]ta9 s*ool /ill cont5d t !re is no class robb]y4#i ,s9ce ! claim t ! lab\r] has a "r to ! full product ( 8 lab\r applies to capital z well z to l&1 x c be m conv5i5tly consid]$ :5 we come to treat ( ! income ( ! capitali/4 ,) reg>d to ! second cont5tion1 ! foll[+ /atem5t by ,rob]t ,blat*=d may be tak5 z fairly repres5tative ( ,sociali/ ?\ght3 ,! e>? belongs to ! p4444 ,s t he :o possesses l& possesses t to :i* he has no "r1 & he :o inve/s 8 sav+s 9 l& becomes ! pur*as] ( /ol5 prop]ty4#aj ,inasmu* z ?is argum5t is sub/antially ! same z "o ( ! fundam5tal cont5tions 9 ! sy/em ( ,h5ry ,george1 x w be discuss$ 9 connection ) ! latt]1 9 ! pages imm$iately foll[+4 ,h5ry ,george's ,attack on ! ,title ( ,fir/ ,occupancy ,e concrete "r1 :e!r to l& or to artificial goods1 is bas$ ^u "s cont+5t fact or gr\nd1 call$ a title4 ,by reason ( "s title a man is ju/ifi$ 9 appropriat+ a p>ticul> f>m1 h\se1 or hat4 ,:5 he becomes ! proprietor ( a ?+ t has hi!rto be5 own]less1 8 title is said to be orig9al2 :5 he acquires an article f "s previ\s own]1 8 title is said to be d]iv$4 ,z an endless s]ies ( proprietors is impossible1 e d]iv$ title mu/ be traceable ultimately to "s orig9al title4 ,among ! d]iv$ titles ! mo/ important are contract1 inh]itance1 & prescription4 ,! orig9al title is ei!r fir/ occupancy or lab\r4 ,! prevail+ view among ! def5d]s ( private l&[n]%ip has always be5 t ! orig9al title is n lab\r b fir/ occupancy4 ,if ?is title be n valid e d]iv$ title is wor?less1 & no man has a true "r to ! l& t he calls 8 own4 ,h5ry ,george's attack ^u ! title ( fir/ occupancy is an important l9k 9 8 argum5t aga9/ private prop]ty 9 l&4 ,priority ( occupation give exclusive & p]petual title to ! surface ( a globe 9 :i*1 9 ! ord] ( nature1 c\ntless g5]ations succe$ ea* o!r6444 ,has ! fir/ com] at a banquet ! "r to turn back all ! *airs1 & claim t none ( ! o!r gue/s %all p>take ( ! food provid$1 except z !y make t]ms ) him8 ,does ! fir/ man :o pres5ts a ticket at ! door ( a !atre1 & passes 91 acquire by 8 priority ! "r to %ut ! doors & h ! p]=mance g on = him alone8444 ,& to ?is manife/ absurdity does ! recognition ( ! individual "r to l& come :5 c>ri$ to its ultimate t any human be+1 c\ld he conc5trate 9 himself ! individual rights to ! l& ( any c\ntry1 c\ld expel !refrom all ! re/ ( ! inhabitants2 & c\ld he conc5trate ! individual rights to ! :ole surface ( ! globe1 he alone ( all ! teem+ population ( ! e>? w\ld h ! "r to live4#aa ,9 pass+1 x may be obs]v$ t ,h5ry ,george 0 n ! fir/ di/+ui%$ writ] to use ! illu/ration drawn f ! !atre4 ,cic]o1 ,/4 ,basil1 & ,/4 ,?omas ,aqu9as all employ$ x to refute extravagant conceptions ( private own]%ip4 ,9 reply to ! =ego+ argum5t ( ,h5ry ,george1 we po9t out3 fir/1 t ! "r ( own]%ip creat$ by fir/ occupancy is n unlimit$1 ei!r ext5sively or int5sively2 &1 second1 t ! hi/orical inju/ices connect$ ) private own]%ip h be5 9 only a comp>atively slight degree due to ! fir/ occupation ( v l>ge tracts ( l&4 ,! "r ( fir/ occupancy does n involve ! "r to take a :ole region or cont95t1 compell+ all subsequ5t arrivals to become t5ants ( ! fir/4 ,!re seems to be no good reason to ?9k t ! fir/ occupant is ju/ifi$ 9 claim+ z 8 own m l& ?an he c cultivate by 8 own lab\r1 or ) ! assi/ance ( ^? :o pref] to be 8 employs or 8 t5ants r ?an indep5d5t proprietors4 ,he has n ! "r to res]ve = himself alone ! :ole t]ritory1 b only t "p ( x :i* is really useful to him1 :i* he c make fruitful4#ab ,nor is ! "r ( private l&[n]%ip1 on :atev] title x may re/1 unlimit$ int5sively1 t is1 9 its p[]s or compreh5sion4 ,?\gh a man %\ld h become ! rightful own] ( all ! l& 9 a neighb\rhood1 he w\ld h no moral "r to exclude !refrom ^? p]sons :o c\ld n )\t extreme inconv5i5ce f9d a liv+ else:]e4 ,he w\ld be morally b\nd to let !m cultivate x at a fair r5tal4 ,! ,*ri/ian conception ( ! int5sive limitations ( private own]%ip is well exemplifi$ 9 ! action ( ,pope ,clem5t ,,iv1 :o p]mitt$ /rang]s to occupy ! ?ird "p ( any e/ate :i* ! proprietor refus$ to cultivate himself4#ac ,own]%ip und]/ood z ! "r to d :at "o pleases ) "o's possessions1 is due p>tly to ! ,roman law1 p>tly to ! ,code ,napolon1 b *iefly to mod]n !ories ( individualism4 ,9 ! second place1 ! abuses :i* h accompani$ private prop]ty 9 l& are v r>ely traceable to abuses ( ! "r ( fir/ occupancy4 ,! m5 :o h possess$ too mu* l&1 & ! m5 :o h us$ _! l& z an in/rum5t ( social oppression1 h sc>cely ev] be5 fir/ occupants or ! successors !re( ?r\gh d]iv$ titles4 ,?is is especially true ( mod]n abuses1 & mod]n legal titles4 ,9 ! words ( ,h]b]t ,sp5c]3 ,viol5ce1 fraud1 ! pr]ogative ( =ce1 ! claims ( sup]ior cunn+1--^! are ! s\rces to :i* ^! titles may be trac$4 ,! orig9al de$s 7 writt5 ) ! sword1 r ?an ) ! p53 n lawy]s b soldi]s 7 ! conveyanc]s3 bl[s 7 ! curr5t co9 giv5 9 paym5t2 & = seals blood 0 us$ 9 pref]5ce to wax4#ad ,n ! appropriation ( l& :i* nobody own$1 b ! =cible & fraudul5t seizure ( l& :i* _h already be5 occupi$1 has be5 "o ( ! ma9 causes ( ! evils att5d+ ^u private l&[n]%ip4 ,moreov]1 9 ,engl& & all o!r c\ntries t h adopt$ h] legal sy/em1 ! title ( fir/ occupancy c\ld nev] be utilis$ by individuals3 all unoccupi$ l& 0 claim$ by ! ,cr[n or by ! ,/ate1 & transf]r$ !nce to private p]sons or corporations4 ,if "s individuals h got possession ( too mu* l& ?r\gh ?is process1 ! ,/ate1 n ! title ( fir/ occupancy1 mu/ be> ! blame4 ,?is is q cle> 9 ! hi/ory ( l& t5ure 9 ! ,unit$ ,/ates & ,au/ralasia4 ,h5ry ,george's attack ^u private l&[n]%ip ?r\gh ! title ( fir/ occupancy is !re=e ineffective2 = he attributes to ?is qualities t x does n possess1 & consequ5ces = :i* x is n responsible4 ,8 ,def5ce ( ! ,title ( ,lab\r ,?9k+ t he has %att]$ ! title ( fir/ occupancy1 ,h5ry ,george und]takes to set up 9 its place ! title ( lab\r4 ,!re c be to ! own]%ip ( any?+ no rightful title :i* is n d]iv$ f ! title ( ! produc]1 & does n re/ on ! natural "r ( ! man to himself4#ae ,! only orig9al title is man's "r to ! ex]cise ( 8 own faculties2 f ?is "r foll[s 8 "r to :at he produces2 n[ man does n produce l&2 !re=e he _c h rightful prop]ty 9 l&4 ,( ^! f\r propositions ! fir/ is a pure assumption1 ! second is untrue1 ! ?ird is a truism1 & ! f\r? is z unf\nd$ z ! fir/4 ,dep5d5tly ^u ,god1 man has1 inde$1 a "r to himself & to ! ex]cise ( 8 own faculties2 b ?is is a "r ( action1 n ( prop]ty4 ,by ! ex]cise ( ?is "r alone man c nev] produce any?+1 nev] become ! own] ( any?+4 ,he c produce only by ex]t+ 8 p[]s ^u some?+ outside ( himself2 t is1 ^u ! goods ( ext]nal nature4 ,to become ! produc] & ! own] ( a product1 he mu/ fir/ become ! own] ( mat]ials4 ,by :at title is he to acquire ^!8 ,9 "o passage#af ,h5ry ,george seems to ?9k t no title is necess>y1 & ref]s to ! raw mat]ial z an accid5t1 :ile ! f9i%$ product is ! ess5ce1 decl>+ t ! "r ( private own]%ip atta*es ! accid5t to ! ess5ce1 & gives ! "r ( own]%ip to ! natural mat]ial 9 :i* ! lab\r ( production is embodi$4 ,n[ ?is solution ( ! difficulty is too simple & arbitr>y4 ,its au?or w\ld h %runk f apply+ x univ]sally2 = example1 to ! case ( ! %oemak] :o produces a pair ( %oes out ( /ol5 mat]ials1 or ! burgl> :o makes an ov]coat m useful 7& !re=e p]=ms a task ( production7 by transf]r+ x f a w>eh\se to 8 %iv]+ back6 ,evid5tly ,h5ry ,george has 9 m9d only raw mat]ial 9 ! /rict s5se1 t :i* has n yet be5 sep>at$ f ! /oreh\se ( nature2 = he decl>es 9 ano!r place t ! "r to ! produce ( lab\r _c be enjoy$ )\t ! free use ( ! opportunities (f]$ by nature4#ag ,9 o!r words1 man's title to ! mat]ials ^u :i* he is to ex]cise 8 faculties1 & ( :i* he is to become ! own] by "r ( production1 is ! title ( gift conf]r$ by nature1 or nature's ,god4 ,nev]!less ?is title is applicable only to ^? goods t exi/ 9 unlimit$ abundance1 n to ^? p>ts ( ! natural b\nty t are sc>ce & possess economic value4 ,a g5]al assumption by produc]s t !y 7 entitl$ to take possession ( ! gifts ( nature indiscrim9ately w\ld mean indu/rial an>*y & civil w>4 ,h5ce ,h5ry ,george tells u t ! individual %\ld pay r5t to ! community to satisfy ! equal rights ( all o!r memb]s ( ! community4#ah ,inasmu* z ! individual mu/ pay ?is price be=e he beg9s to produce1 8 "r to ! use ( natural opportunities is n free1 nor does 8 lab\r alone con/itute a title to t "p ( !m t he utilises 9 production4 ,consequ5tly lab\r does n create a "r to ! concrete product4 ,x m]ely gives ! produc] a "r to ! value t he adds to ! raw mat]ial4 ,8 "r to ! raw mat]ial itself1 to ! elem5ts t he )draws f ! common /ore1 & fa%ions into a product1 say1 :eat1 lumb]1 or /eel1 does n orig9ate 9 ! title ( lab\r b 9 ! title ( contract4 ,?is is ! contract by :i* 9 ex*ange = r5t paid to ! community he is au?oris$ to utilise ^! mat]ials4 ,until he has made ?is contract he has manife/ly no full "r to ! product into :i* natural =ces z well z 8 own lab\r h ent]$4 ,accord+ to ,h5ry ,george's own /atem5ts1 !re=e1 ! "r to ! product does n spr+ f lab\r alone1 b f lab\r plus comp5sation to ! community4 ,s9ce ! contract by :i* ! prospective us] agrees to pay ?is comp5sation or r5t mu/ prec$e 8 application ( lab\r1 x in/ead ( lab\r is ! orig9al title4 ,s9ce ! contract is made ) a p>ticul> community = ! use ( a p>ticul> piece ( l&1 ! title t x conveys mu/ d]ive ultimately f ! occupation ( t l& by t community1--or "s previ\s community ( :i* ! pres5t "o is ! legal heir4 ,s f> z economically valuable mat]ials are conc]n$1 !re=e1 ! logic ( ,h5ry ,george's pr9ciples leads inevitably to ! conclusion t ! orig9al title ( own]%ip is fir/ occupancy4 ,ev5 9 ! case ( economically free goods1 ! orig9al title ( own]%ip is occupancy4 ,h5ry ,george decl>es t ! travell] :o has fill$ 8 vessels at a free-=-all spr+ owns ! wat] :5 he has c>ri$ x into a des]t1 by ! title ( lab\r4#ai ,nev]!less1 9 its orig9al place ?is wat] belong$ ei!r to ! community or to nobody4 ,9 ! =m] supposition x c become ! prop]ty ( ! travell] only ?r\gh an explicit or implicit gift f ! community2 & x is ?is contract1 n lab\r1 t con/itutes 8 title to ! wat]4 ,if we assume t ! spr+ 0 own]less1 we see t ! lab\r ( c>ry+ a portion ( x into ! des]t /ill lacks ! qualifications ( a title2 = ! ab/ract$ wat] mu/ h belong$ to him be=e he began ! j\rney4 ,x mu/ h be5 8 f ! mom5t t he sep>at$ x f ! spr+4 ,o!rwise he _h no "r to take x away4 ,8 lab\r ( transport+ x gave him a "r to ! utility ?us add$ to ! wat]1 b n a "r to ! wat] :5 x fir/ f\nd a local habitation 9 8 vessels4 ,nor 0 ! lab\r ( transf]r+ x f ! spr+ into 8 vessels ! true title2 = lab\r alone _c create a "r to ! mat]ial ^u :i* x is ex]t$1 z we see 9 ! case ( /ol5 objects4 ,if x be cont5d$ t lab\r toge!r ) ! natural "r to use ! own]less goods ( nature h all ! elem5ts ( a valid title1 ! ass]tion mu/ be reject$ z unprecise & inadequate4 ,! "r to use own]less goods is a g5]al & ab/ract "r t requires to become specific & concrete ?r\gh "s title4 ,9 ! case ( wat] x is a "r to wat] 9 g5]al1 to "s wat]1 b n a "r to a def9ite portion ( ! wat] 9 ?is p>ticul> spr+4 ,! requir$ & suffici5t title "h is t ( appreh5sion1 occupation1 ! act ( sep>at+ a portion f ! natural res]voir4 ,!re=e1 x is fir/ occupancy z exemplifi$ 9 m]e seizure ( an own]less good1 n lab\r 9 ! s5se ( productive activity1 nor lab\r 9 ! s5se ( pa9ful ex]tion1 t con/itutes ! precise title :]eby ! man acquires a "r to ! wat] t he has put into 8 cup or b>rel4 ,m]e seizure is a suffici5t title 9 all su* cases z t :i* we are n[ consid]+1 simply because x is a reasonable me?od ( det]m9+ & specify+ own]%ip4 ,!re is no ne$ :atev] ( hav+ rec\rse to ! concept ( lab\r to ju/ify ?is k9d ( prop]ty "r4 ,9 ! pres5t case1 inde$1 ! acts ( appreh5sion & ( productive lab\r 7! lab\r ( dipp+ ! wat] into a vessel is productive inasmu* z ! wat] is m useful !re ?an 9 ! spr+7 are ! same physically1 b !y are di/9ct logically & e?ically4 ,"o is m]e occupation1 :ile ! o!r is production2 & own]%ip ( a ?+ mu/ prec$e1 9 morals if n 9 "t1 ! exp5diture ^u x ( productive lab\r4 ,! !ory :i* bases ! "r ( prop]ty on lab\r really dep5ds 9 ! ultimate resort on ! "r ( possession & ! fact t x is socially exp$i5t1 & is !re=e upheld by ! laws ( society4 ,grotius1 discuss+ ?is 9 ! old ,roman days1 po9t$ out t s9ce no?+ c be made except out ( pre-exi/+ matt]1 acquisition by means ( lab\r dep5ds1 ultimately1 on possession by means ( occupation4#bj ,s9ce man's "r to 8 faculties does n ( itself give him a "r to ex]cise !m ^u mat]ial objects1 productive lab\r _c ( itself give him a "r to ! product !refrom creat$1 nor con/itute ! orig9al title ( own]%ip4 ,s9ce lab\r is n ! orig9al title to prop]ty1 x is n ! only possible title to prop]ty 9 l&4 ,h5ce ! fact t lab\r does n produce l&1 has no be>+ on ! "q ( private l&[n]%ip4 ,9 pass+ x may be obs]v$ t ,h5ry ,george implicitly admitt$ t ! argum5t f ! lab\r title 0 n ( itself suffici5t to disprove ! "r ( private prop]ty 9 l&4 ,consid]+ ! objection1 if private prop]ty 9 l& be n j1 !n private prop]ty 9 ! products ( l& is n j1 z ! mat]ial ( ^! products is tak5 f ! l&1 he repli$ t ! latt] =m ( own]%ip is 9 reality a m]e "r ( tempor>y possession1 s9ce ! raw mat]ial 9 ! products soon] or lat] returns to ! res]voirs provid$ = all 444 & ?us ! own]%ip ( !m by "o works no injury to o!rs4#ba ,b private own]%ip ( l&1 he cont9u$1 %uts out o!rs f ! v res]voirs4 ,"h we h a complete ab&onm5t ( ! pr9ciple :i* und]lies ! lab\r argum5t4 ,in/ead ( try+ to %[ f ! nature ( ! situation t !re is a logical diff]5ce betwe5 ! two k9ds ( own]%ip1 he %ifts 8 gr\nd to a consid]ation ( consequ5ces4 ,he makes ! title ( social utility in/ead ( ! title ( lab\r ! di/+ui%+ & decisive consid]ation4 ,z we %all see lat]1 he is wrong ev5 on ?is gr\nd2 = ! fundam5tal ju/ification ( private l&[n]%ip is precisely ! fact t x is ! sy/em ( l& t5ure mo/ conducive to human welf>e4 ,at pres5t we m]ely call att5tion to ! breakd[n 9 8 own h&s ( ! lab\r argum5t4 ,to sum up ! entire discussion on ! orig9al title ( own]%ip3 ,h5ry ,george's attack ^u fir/ occupancy is futile because bas$ ^u an exagg]at$ conception ( ! scope ( private l&[n]%ip1 & ^u a false assumption conc]n+ ! responsibility ( t title = ! hi/orical evils ( ! sy/em4 ,8 attempt to sub/itute lab\r z ! orig9al title is likewise unsuccessful1 s9ce lab\r c give a "r only to ! utility add$ to natural mat]ials1 n to ! mat]ials !mselves4 ,own]%ip ( ! latt] rea*es back f9ally to occupation4 ,:5ce x foll[s t ! title to an artificial ?+1 su* z a hat or coat1 wat] tak5 f a spr+1 a fi% drawn f ! sea1 is a jo9t or two-fold title2 namely1 occupation & lab\r4 ,:]e ! product embodies sc>ce & economically valuable raw mat]ial1 occupation is usually prior to lab\r 9 "t2 9 all cases x is prior to lab\r logically & e?ically4 ,s9ce lab\r is n ! orig9al title1 its abs5ce 9 ! case ( l& does n leave t =m ( prop]ty unju/ifi$4 ,! title ( fir/ occupancy rema9s4 ,9 a ^w1 ! "o orig9al title ( all prop]ty1 natural & artificial1 is fir/ occupancy4 ,! o!r argum5ts ( ,h5ry ,george aga9/ private l&[n]%ip are bas$ ^u ! assum$ "r ( all mank9d to l& & l& values1 & on ! cont5tion t ?is "r is violat$ by ! pres5t sy/em ( t5ure4 ,! ,"r ( ,all ,m5 to ! ,b\nty ( ! ,e>? ,! equal "r ( all m5 to ! use ( l& is z cle> z _! equal "r to brea! ! air--x is a "r proclaim$ by ! fact ( _! exi/5ce4 ,= we _c suppose t "s m5 h a "r to be 9 ! _w1 & o!rs no "r4 ,if we are "h by ! equal p]mission ( ! ,creator1 we are all "h ) an equal title to ! enjoym5t ( 8 b\nty--) an equal "r to ! use ( all t nature s imp>tially (f]s4444 ,!re is 9 nature no su* ?+ z a fee simple 9 l&4 ,!re is on e>? no p[] :i* c rightfully make a grant ( exclusive own]%ip ( l&4 ,if all exi/+ m5 7 to grant away _! equal rights1 !y c\ld n grant away ! rights ( ^? :o foll[ !m4 ,= :at are we b t5ants = a day8 ,h we made ! e>? t we %\ld det]m9e ! rights ( ^? :o aft] u %all t5ant x 9 _! turn8#bb ,! "r to use ! goods ( nature = ! support ( life is c]ta9ly a fundam5tal natural "r2 & x is sub/antially equal 9 all p]sons4 ,x arises1 on ! "o h&1 f man's intr9sic wor?1 8 ess5tial ne$s1 & 8 f9al de/9y2 &1 on ! o!r h&1 f ! fact t nature's b\nty has be5 plac$ by ,god at ! disposal ( all ,8 *ildr5 indiscrim9ately4 ,b ?is is a g5]al & ab/ract "r4 ,:at does x imply specifically & 9 ! concrete8 ,9 ! fir/ place1 x includes ! actual & cont9u\s use ( "s l&2 = a man _c support life unless he is p]mitt$ to occupy "s portion ( ! e>? = ! purposes ( work+1 & eat+1 & sleep+4 ,secondly1 x means t 9 "t ( extreme ne$1 & :5 m ord]ly me?ods are n available1 a man has ! "r to seize suffici5t goods1 natural or produc$1 public or private1 to support life4 ,s mu* is admitt$ & taught by all ,ca?olic au?orities1 & probably by all o!r au?orities4 ,fur!rmore1 ! ab/ract "r 9 "q seems v cle>ly to include ! concrete "r to obta9 on reasonable conditions at lea/ ! requisites ( a dec5t livelihood2 = example1 by direct access to a piece ( l&1 or 9 return = a reasonable am\nt ( useful lab\r4 ,all ( ^! p>ticul> rights are equally valid 9 all p]sons4 ,does ! equal "r to use ! b\nty ( nature include ! "r to equal %>es ( l&1 or l& values1 or l& advantages8 ,s9ce ! res\rces ( nature h be5 giv5 to all m5 9 g5]al1 & s9ce human nature is specifically & juridically equal 9 all1 h n all p]sons ! "r to %>e equally 9 ^! res\rces8 ,suppose t "s philan?ropi/ h&s ov] to "o hundr$ p]sons an un9habit$ isl&1 on condition t !y %all divide x among !mselves ) absolute ju/ice4 ,are !y n oblig$ to divide x equally8 ,on :at gr\nd c any p]son claim or be aw>d$ a l>g] %>e ?an 8 fell[s8 ,none is ( great] intr9sic wor? ?an ano!r1 nor has any "o made ef=ts1 or sacrifices1 or products :i* w entitle him to exceptional treatm5t4 ,! correct pr9ciple ( di/ribution w\ld seem to be absolute equality1 except 9 s f> z x may be modifi$ on acc\nt ( v>y+ ne$s1 & v>y+ capacities = social s]vice4 ,9 any j di/ribution acc\nt mu/ be tak5 ( diff]5ces 9 ne$s & capacities2 = x is n j to treat m5 z equal 9 ^? respects 9 :i* !y are unequal1 nor is x fair to deprive ! community ( ^? social b5efits :i* c be obta9$ only by giv+ exceptional rew>ds = exceptional s]vices4 ,! same am\nt ( food allott$ to two p]sons might leave "o hungry & ! o!r sat$2 ! same am\nt ( l& assign$ to two p]sons might tempt ! "o to wa/efulness & disc\rage ! o!r4 ,to be sure1 ! factor ( exceptional capacity %\ld n figure 9 ! di/ribution until all p]sons _h receiv$ t measure ( natural goods :i* 0 9 ea* case suffici5t = a dec5t livelihood4 ,= ! fundam5tal ju/ification ( any di/ribution is to be s\ght 9 human ne$s2 & among human ne$s ! mo/ des]v+ & ! mo/ urg5t are ^? :i* mu/ be satisfi$ z a pr]equisite to "r & reasonable life4 ,n[ x is true t private own]%ip ( l& has n[h]e realis$ ?is pr9ciple ( proportional equality & proportional ju/ice4 ,no su* result is possible 9 a sy/em t1 9 addition to o!r difficulties1 w\ld be requir$ to make a new di/ribution at e bir? & at e dea?4 ,private own]%ip ( l& c nev] br+ ab\t ideal ju/ice 9 di/ribution4 ,nev]!less x is n necess>ily out ( h>mony ) ! dem&s ( practical ju/ice4 ,a community t lacks ei!r ! k or ! p[] to e/abli% ! ideal sy/em is n guilty ( actual inju/ice because ( ?is failure4 ,9 su* a situation ! proportionally equal rights ( all m5 to ! b\nty ( nature are n actual rights4 ,!y are conditional1 or hypo!tical1 or susp5d$4 ,at be/ !y h no m moral validity ?an ! "r ( a cr$itor to a loan t1 ow+ to ! untimely dea? ( ! debtor1 he c nev] recov]4 ,9 bo? cases x is mislead+ to talk ( inju/ice2 = ?is t]m always implies t "s p]son or community is guilty ( "s action :i* c\ld h be5 avoid$4 ,! sy/em ( private l&[n]%ip is n1 inde$1 p]fect2 b ?is is n exceptional 9 a _w :]e ! ideal is nev] atta9$1 & all ?+s are imp]fect4 ,h5ry ,george decl>es t !re is on e>? no p[] :i* c rightfully make a grant ( exclusive own]%ip 9 l&2 b :at w\ld he h a community d :i* has nev] he>d ( 8 sy/em8 ,introduce "s crude =m ( communism1 or refra9 f us+ ! l& at all1 & p]mit ! p to />ve to dea? 9 ! int]e/s ( ideal ju/ice8 ,evid5tly su* a community mu/ make grants ( exclusive own]%ip1 & ^! w be z valid 9 reason & 9 morals z any o!r act t is subject to human limitations :i* are at ! "t irremovable4 ,p]haps ! ,s+le ,tax] w\ld admit ! =ce ( ! =ego+ argum5t4 ,he might insi/ t ! titles giv5 by ! ,/ate 9 su* conditions 7 n exclusive grants 9 ! /rict s5se1 b 7 valid only until a bett] sy/em c\ld be set up1 & ! p put 9 possession ( _! natural h]itage4 ,let u suppose1 !n1 t a nation 7 %[n a m excell5t way4 ,suppose t ! p ( ! ,unit$ ,/ates set ab\t to e/abli% ,h5ry ,george's sy/em 9 ! way t he himself advocat$4 ,!y w\ld =?) impose ^u all l& an annual tax equival5t to ! annual r5t4 ,:at w\ld be ! effect ^u private l&-incomes1 & private l&-weal?8 ,s9ce ! fir/ w\ld be h&$ ov] to ! ,/ate 9 ! =m ( a tax1 ! second w\ld utt]ly disappe>4 ,= ! value ( l&1 l ! value ( any o!r economic good1 dep5ds ^u ! utilities t x embodies or produces4 ,:oev] controls ^! w control ! m>ket value ( ! l& itself4 ,no man w pay any?+ = a rev5ue-produc+ prop]ty if "s "o else1 = example1 ! ,/ate1 is =ev] to take ! rev5ue4 ,! own] ( a piece ( l& :i* br+s him an annual rev5ue or r5t ( "o hundr$ doll>s1 w n f9d a pur*as] = x if ! ,/ate appropriates ! "o hundr$ doll>s 9 ! =m ( a tax t is to be levi$ ye> aft] ye> = all "t4 ,on ! assumption t ! rev5ue repres5ts a sell+ value ( two ?\s& doll>s1 ! private own] w be wor? t mu* less aft] ! introduction ( ! new sy/em4 ,h5ry ,george def5ds ?is proce$+ z emphatically j1 & d5ies ! ju/ice ( comp5sat+ ! private own]s4 ,9 ! *apt] ( ,progress & ,pov]ty head$1 ,claim ( ,l& ,own]s to ,comp5sation1 he decl>es t private prop]ty 9 l& is a bold1 b>e1 enorm\s wrong1 l t ( *attel slav]y2 & aga9/ ,mill's /atem5t t l& own]s h a "r to r5t & to ! sell+ value ( _! hold+s1 he exclaims3 ,if ! l& ( any c\ntry belong to ! p ( t c\ntry1 :at "r1 9 morality & ju/ice1 h ! individuals call$ l& own]s to ! r5t8 ,if ! l& belong to ! p1 :y 9 ! "n ( morality & ju/ice %\ld ! p pay its salable value = _! own8#bc ,"h1 !n1 we h ! full implication ( ! ,georgean pr9ciple t private prop]ty 9 l& is ess5tially unju/4 ,x is n m]ely imp]fect1--tol]able :ile unavoidable4 ,:5 x c be supplant$ by ! "r sy/em1 its inequalities mu/ n cont9ue "u ano!r =m4 ,if inequalities are cont9u$ ?r\gh ! comp5sation ( private own]s1 individuals are /ill h9d]$ f enjoy+ _! equal rights to l&1 & ! ,/ate becomes guilty ( =mal & culpable inju/ice4 ,! titles :i* ! ,/ate =m]ly gu>ante$ to ! private own]s did n h 9 morals ! p]petual validity :i* !y pr(ess$ to h4 ,s9ce ! ,/ate is n ! own] ( ! l&1 x 0 morally p[]less to create or sanction titles ( ?is "*4 ,ev5 if all ! citiz5s at any giv5 "t _h delib]ately transf]r$ ! necess>y au?orisation to ! ,/ate1 !y c\ld n1 9 ! words ( ,h5ry ,george1 grant away ! "r ( ^? :o foll[ !m4 ,! individual's "r to l& is innate & natural1 n civil or social4 ,! au?or ( ,progress & ,pov]ty attributes to ! individual's common "r to l& precisely ! same absolute "* t ,fa!r ,lib]atore pr$icates ( ! "r to become a private l& own]4#bd ,9 ! view ( ,h5ry ,george1 ! ,/ate is m]ely ! tru/ee ( ! l&1 hav+ ! duty ( di/ribut+ its b5efits & values s z to make effective ! equal rights ( all individuals4 ,consequ5tly1 ! legal titles ( private own]%ip :i* x creates or sanctions are valid only s long z no?+ bett] is available4 ,at be/ su* titles h no great] moral =ce ?an ! title by :i* an innoc5t pur*as] holds a /ol5 wat*2 & ! p]sons :o are !reby depriv$ ( _! prop] %>es ( l& b5efits1 h ! same "r to recov] !m f ! exi/+ private own]s t ! wat*-own] has to recov] 8 prop]ty f ! innoc5t pur*as]4 ,h5ce ! dem& = comp5sation has no m m]it 9 ! "o case ?an 9 ! o!r4 ,to ! objection t ! civil laws ( _m civilis$ c\ntries w\ld p]mit ! innoc5t pur*as] ( ! wat* to reta9 x1 provid$ t suffici5t "t _h elaps$ to create a title ( prescription1 ! ,s+le ,tax] w\ld reply t ! two k9ds ( goods are n on ! same moral basis 9 all respects4 ,he w\ld cont5d t ! natural h]itage ( ! race is too valuable1 & too important = human welf>e to fall "u ! title ( prescription4 ,to put ! matt] briefly1 !n1 ,h5ry ,george cont5ds t ! individual's equal "r to l& is s mu* sup]ior to ! claim ( ! private own] t ! latt] mu/ give way1 ev5 :5 x repres5ts an exp5diture ( money or o!r valuable goods4 ,! av]age oppon5t does n seem to realise ! full =ce ( ! impression :i* ?is !ory makes ^u ! man :o ov]emphasises ! innate rights ( m5 to a %>e 9 ! gifts ( nature4 ,let u see :e!r ?is "r has ! absolute & ov]p[]+ value :i* is attribut$ to x by ,h5ry ,george4 ,9 consid]+ ?is "q1 ! supremely important fact to be kept 9 m9d is t ! natural "r to l& is n an end 9 itself4 ,x is n a pr]ogative t inh]es 9 m51 reg>dless ( its purposes or effects4 ,x has validity only 9 s f> z x promotes individual & social welf>e4 ,z reg>ds individual welf>e1 we mu/ be> 9 m9d t ?is phrase includes ! well be+ ( all p]sons1 ( ^? :o d z well z ( ^? :o d n at pres5t enjoy ! b5efits ( private l&[n]%ip4 ,consequ5tly ! proposal to re/ore to ! dis9h]it$ ! use ( _! l& rights mu/ be judg$ by its effects ^u ! welf>e ( all p]sons4 ,if exi/+ l&[n]s are n comp5sat$ !y are depriv$1 9 v>y+ am\nts1 ( ! conditions ( mat]ial well be+ to :i* !y h become accu/om$1 & are !reby subject$ to v>y+ degrees ( positive inconv5i5ce & h>d%ip4 ,! ass]tion t ?is loss w\ld be (fset by ! moral ga9 9 altrui/ic feel+s & consci\sness1 may be pass$ ov] z apply+ to a diff]5t race ( be+s f ^? :o w\ld be despoil$4 ,! h>d%ip is aggravat$ consid]ably by ! fact t v _m ( ! dispossess$ private own]s h paid ! full value ( _! l& out ( ! e>n+s ( lab\r or capital1 & t all ( !m h be5 enc\rag$ by society & ! ,/ate to reg>d l&$ prop]ty 9 precisely ! same way z any o!r k9d ( prop]ty4 ,9 ! latt] respect !y are n 9 ! same position z ! innoc5t pur*as] ( ! /ol5 wat*2 = !y h nev] be5 w>n$ by society t ! l& might h be5 virtually /ol51 or t ! suppos$ly rightful claimants might "s day be emp[]$ by ! law to recov] possession4 ,on ! o!r h&1 ! p]sons :o own no l& "u ! pres5t sy/em1 ! p]sons :o are depriv$ ( _! bir?right1 suff] no su* degree ( h>d%ip :5 !y are cont9u$ 9 t condition4 ,!y are kept out ( some?+ :i* !y h nev] possess$1 :i* !y h nev] hop$ to get by any su* easy me?od1 & f :i* !y h n be5 accu/om$ to d]ive any b5efit4 ,to prolong ?is condition is n to inflict ^u !m any new or positive inconv5i5ce4 ,evid5tly _! welf>e & claims 9 ! circum/ances are n ( ! same moral importance z ! welf>e & claims ( p]sons :o w\ld be call$ ^u to suff] ! loss ( goods already possess$ & enjoy$1 & acquir$ ) ! full sanction ( society4 ,h5ry ,george is fond ( comp>+ ! private own] ( l& ) ! slave own]1 & ! l&less man ) ! man enslav$2 b !re is a _w ( diff]5ce betwe5 _! respective positions & moral claims4 ,lib]ty is immeasurably m important ?an l&1 & ! h>d%ip suff]$ by ! ma/] :5 he is compell$ to free ! slave is immeasurably less ?an t endur$ by ! slave :o is =cibly deta9$ 9 bondage4 ,moreov]1 ! moral s5se ( mank9d recognises t x is 9 accordance ) equity to comp5sate slave own]s :5 ! slaves are legally emancipat$4 ,inf9itely /rong] is ! claim ( ! l&[n] to comp5sation4 ,if ! ,georgeite replies t ! l&less man is at pres5t kept out ( some?+ to :i* he has a "r1 :ile confiscation w\ld take f ! private own] some?+ :i* does n really belong to him1 ! rejo9d] mu/ be t ?is ass]tion begs ! "q4 ,! "q is likewise begg$ :5 ! unreasonable def5d] ( private prop]ty decl>es t ! "r ( ! l&less is vague & undet]m9$1 & !re=e morally inf]ior to ! det]m9ate & specific "r ( ! individual l&[n]4 ,?is is precisely ! "q to be solv$4 ,does ! ab/ract "r ( ! l&less man become a concrete "r :i* is s /rong z to ju/ify confiscation8 ,is 8 natural "r valid aga9/ ! acquir$ "r ( ! private proprietor8 ,^! que/ions c be answ]$ intellig5tly only by apply+ ! te/ ( human welf>e1 individual & social4 ,to say t l& ( its v nature is n morally susceptible ( private own]%ip1 is to make an easy ass]tion t may be z easily d5i$4 ,to int]pret man's natural "r to l& by any o!r /&>d ?an human welf>e1 is to make ( x a feti%1 n a ?+ ( reason4 ,h5ry ,george himself seem$ to recognise ?is :5 he wrote t wond]fully eloqu5t b ov]drawn & "o-sid$ description ( ! effects ( private own]%ip :i* occurs 9 ! *apt] entitl$1 ,claim ( ,l&[n]s to ,comp5sation4#be ,:5 we say t human welf>e is ! f9al det]m9ant ( ! "r to l&1 we und]/& ?is phrase 9 ! wide/ possible s5se4 ,to divide ! goods ( ! idle ri* among ! des]v+ poor1 might be tempor>ily b5eficial to bo? ^! classes1 b ! m remote & endur+ consequ5ces w\ld be individually & socially disa/r\s4 ,to re/ore a legacy to p]sons :o _h be5 defraud$ ( x :5 v "y1 w\ld probably cause m h>d%ip to ! sw9dl] ?an ! heirs w\ld h suff]$ _h !re be5 no re/itution2 nev]!less ! l>g] view ( human welf>e requires t ! legacy %\ld be re/or$4 ,:51 h[ev]1 two or ?ree g5]ations h be5 kept out ( _! inh]itance1 ! civil law p]mits ! *ildr5 ( ! sw9dl] to reta9 ! prop]ty by ! title ( prescription2 & = precisely ! same reason1 human welf>e4 ,! social consequ5ces ( ! confiscation ( r5t & l& values1 w\ld be ev5 m injuri\s ?an ^? fall+ ^u ! individuals despoil$4 ,social peace & ord] w\ld be gravely di/urb$ by ! prote/s & opposition ( ! l&[n]s1 :ile ! popul> conception ( prop]ty rights1 & ( ! inviolability ( prop]ty1 w\ld be greatly weak5$1 if n entirely de/roy$4 ,! av]age man w\ld n grasp or s]i\sly consid] ! ,georgean di/9ction betwe5 l& & o!r k9ds ( prop]ty 9 ?is connection4 ,he w\ld inf] t pur*ase1 or inh]itance1 or beque/1 or any o!r title hav+ ! immemorial sanction ( ! ,/ate1 does n create a moral "r to movable goods any m ?an to l&4 ,?is w\ld be especially likely 9 ! matt] ( capital4 ,:y %\ld ! capitali/1 :o is no m a work] ?an ! l&[n]1 be p]mitt$ to extract rev5ue f 8 possessions8 ,9 bo? cases ! mo/ significant & practical feature is t "o class ( m5 contributes to ano!r class an annual paym5t = ! use ( socially necess>y productive goods4 ,if r5t-confiscation w\ld b5efit a l>ge numb] ( p1 :y n increase ! numb] by confiscat+ int]e/8 ,inde$1 ! proposal to confiscate r5t is s abhorr5t to ! moral s5se ( ! av]age man t x c\ld nev] take place except 9 conditions ( revolution & an>*y4 ,if t day %\ld ev] arrive ! policy ( confiscation w\ld n /op ) l&4 ,! ,alleg$ ,"r ( ! ,community to ,l& ,values ,9 ! =ego+ pages we h conf9$ our att5tion to ! ,georgean pr9ciple :i* bases m5's common "r to l& & r5t ^u _! common nature1 & _! common claims to ! mat]ial gifts ( ! ,creator4 ,ano!r argum5t aga9/ private own]%ip takes ?is =m3 ,consid] :at r5t is4 ,x does n arise spontane\sly f ! soil2 x is due to no?+ t ! l&[n]s h done4 ,x repres5ts a value creat$ by ! :ole community4444 ,b r5t1 ! creation ( ! :ole community1 necess>ily belongs to ! :ole community4#bf ,be=e tak+ up ! ma9 cont5tion 9 ?is passage1 let u notice two incid5tal po9ts4 ,if all r5t be due to ! community by ! title ( social production1 :y does ,h5ry ,george def5d at su* l5g? ! title ( bir?right8 ,if ! latt] title does n ext5d to r5t x is re/rict$ to l& :i* is s pl5tiful z to yield no r5t4 ,s9ce ! own]s or hold]s ( su* l& r>ely take ! tr\ble to exclude any "o f x1 ! "r 9 "q1 ! inborn "r1 has n mu* practical value4 ,probably1 h[ev]1 ! words quot$ above ought n to be int]pret$ z exclud+ ! title ( bir?right4 ,9 t case1 ! mean+ w\ld be t r5t belongs to ! community by ! title ( production1 z well z by ! cong5ital title4 ,! second prelim9>y consid]ation is t ! community does n create all l& values nor all r5t4 ,^! ?+s are z c]ta9ly due to nature z to social action4 ,9 no case c !y be attribut$ exclusively to "o factor4 ,l& t has no natural qualities or capacities suitable = ! satisfaction ( human wants w nev] h value or yield r5t1 no matt] :at society does 9 connection ) x3 ! ri*e/ l& 9 ! _w w likewise rema9 valueless1 until x is br\ght into relation ) society1 ) at lea/ two human be+s4 ,if ,h5ry ,george m]ely means to say t1 )\t ! pres5ce ( ! community1 l& w n produce r5t1 he is /at+ some?+ t is p]fectly obvi\s1 b x is n peculi> to l&4 ,manufactur$ products w\ld h no value outside ( society1 yet no "o ma9ta9s t _! value is all creat$ by social action4 ,al?\gh ! value ( l& is always due to bo? nature & society1 = practical purposes we may correctly attribute ! value ( a p>ticul> piece ( l& pr$om9antly to nature1 or pr$om9antly to society4 ,:5 ?ree tracts1 equally di/ant f a city1 & equally affect$ by society & its activities1 h diff]5t values because "o is fit only = graz+1 :ile ! second produces l>ge crops ( :eat1 & ! ?ird conta9s a ri* coal m9e1 _! relative values are evid5tly due to nature r ?an to society4 ,on ! o!r h&1 ! v>y+ values ( two equally f]tile pieces ( l& unequally di/ant f a city1 mu/ be ascrib$ prim>ily to social action4 ,9 g5]al1 x is probably safe to say t almo/ all ! value ( l& 9 cities1 & ! great] "p ( ! value ( l& 9 ?ickly settl$ di/ricts1 is specifically due to social action r ?an to diff]5ces 9 f]tility4 ,nev]!less1 x rema9s true t ! value ( e piece ( l& arises p>tly f nature1 & p>tly f society2 b x is impossible to say 9 :at proportion4 ,our pres5t conc]n is ) ^? values & r5ts :i* are to be attribut$ to social action4 ,^! _c be claim$ by any p]son1 nor by any community1 9 virtue ( ! individual's natural "r to ! b\nty ( nature4 ,s9ce !y are n includ$ among ! ready made gifts ( ,god1 !y are no "p ( man's bir?right4 ,if !y belong to all ! p ! title to !m mu/ be s\ght 9 "s hi/orical fact1 "s fact ( exp]i5ce1 "s social fact4 ,accord+ to ,h5ry ,george1 ! requir$ title is f\nd 9 ! fact ( production4 ,socially creat$ l& values & r5ts belong to ! community because ! community1 n ! private proprietor1 has produc$ !m4 ,let u see 9 :at s5se ! community produces ! social value ( l&4 ,9 ! fir/ place1 ?is value is produc$ by ! community 9 two diff]5t s5ses ( ! ^w community1 namely1 z a civil1 corporate entity1 & z a gr\p ( individuals :o d n =m a moral unit4 ,"u ! fir/ head mu/ be plac$ a great deal ( ! value ( l& 9 cities2 = example1 t :i* arises f municipal in/itutions & improvem5ts1 su* z1 fire & police protection1 wat] works1 sew]s1 pav$ /reets1 & p>ks4 ,on ! o!r h&1 a consid]able "p ( l& values bo? )9 & )\t cities is due1 n to ! community z a civil body1 b to ! community z a collection ( individuals & gr\ps ( individuals4 ,?us1 ! erection & ma9t5ance ( build+s1 ! v>i\s economic ex*anges ( goods & lab\r1 ! sup]ior opportunities = social int]c\rse & amusem5t :i* *>act]ise a city1 make ! l& ( ! city & its environs m valuable ?an l& at a di/ance4 ,:ile ! activities involv$ 9 ^! economic & social facts & relations are1 inde$1 a social n an individual product1 !y are ! product ( small1 tempor>y1 & %ift+ gr\ps )9 ! community4 ,!y are n ! activities ( ! community z a moral :ole4 ,= example1 ! ma9t5ance ( a groc]y bus9ess implies a s]ies ( social relations & agreem5ts betwe5 ! groc] & 8 cu/om]s2 b none ( ^! transactions is p>ticipat$ 9 by ! community act+ z a community4 ,consequ5tly su* actions & relations1 & ! l& values to :i* !y give rise are n due to1 are n ! products ( ! community z a unit1 z a moral body1 z an organic entity4 ,:at is true ( ! l& values creat$ by ! groc]y bus9ess applies to ! values :i* are due to o!r economic in/itutions & relations1 z well z to ^? values :i* arise out ( ! purely social activities & advantages4 ,if ^! values are to g to _! produc]s !y mu/ be tak51 9 v>i\s proportions1 by ! diff]5t small gr\ps & ! v>i\s individuals ^: actions & transactions h be5 directly responsible4 ,to di/ribute ^! values among ! produc]s !re( 9 proportion to ! productive contribution ( ea* p]son is obvi\sly impossible4 ,h[ c x be kn[n1 = example1 :at portion ( ! increase 9 ! value ( a city's real e/ate dur+ a giv5 ye> is due to ! m]*ants1 ! manufactur]s1 ! railroads1 ! lab\r]s1 ! pr(essional classes1 or ! city z a corporation8 ,! only practical me?od is = ! city or o!r political unit to act z ! repres5tative ( all its memb]s1 appropriate ! increase 9 value1 & di/ribute x among ! citiz5s 9 ! =m ( public s]vices1 in/itutions1 & improvem5ts4 ,assum+ t ! socially produc$ value ( l& ought to g to its social produc] r ?an to ! individual proprietor1 ?is me?od ( public appropriation & disbursem5t w\ld seem to be ! ne>e/ approximation to practical ju/ice t is available4 ,is ! assumption correct8 ,d ! socially produc$ l& values necess>ily belong to ! produc]1 society8 ,does n ! assumption re/ ^u a misconception ( ! moral validity ( production z a canon ( di/ribution8 ,let u exam9e "s ( ! ways 9 :i* values are produc$4 ,! man :o conv]ts lea!r & o!r suitable raw mat]ials into a pair ( %oes1 increases ! utility ( ^! mat]ials1 & 9 normal m>ket conditions increases _! value4 ,9 a c]ta9 s5se he has creat$ value1 & he is univ]sally ackn[l$g$ to h a "r to ?is product4 ,simil>ly ! man :o increases ! utility & value ( l& by f]tilis+1 irrigat+1 or dra9+ x1 is conc$$ ! b5efit ( ^! improvem5ts by ! title ( production4 ,b value may be increas$ by m]e re/riction ( supply1 & by m]e increase 9 dem&4 ,if a gr\p ( m5 get control ( ! exi/+ supply ( :eat or cotton1 !y c artificially raise ! price1 !reby produc+ value z effectively z ! %oemak] or ! f>m]4 ,if a syndicate ( speculators gets possession ( all ! l& ( a c]ta9 quality 9 a community1 !y c likewise increase its value1 produce new value4 ,if a few p[]ful lead]s ( fa%ion decide to adopt a c]ta9 /yle ( mill9]y1 _! action & example w effect an increase 9 ! dem& = & ! value ( t k9d ( goods4 ,yet none ( ^! produc]s ( value are reg>d$ z hav+ a moral "r to _! product4 ,:5 we turn to :at is call$ ! social creation ( l& values1 we f9d t x takes two =ms4 ,x always implies increase ( social dem&2 b ! latt] may be ei!r purely subjective1 reflect+ m]ely ! desires & p[] ( ! dem&]s !mselves1 or x may h an objective basis connect$ ) ! l&4 ,9 ! fir/ case x may be due solely to an increase ( population4 ,)9 ! la/ few ye>s1 agricultural l& :i* is no m f]tile nor any bett] situat$ ) reg>d to m>kets or o!r social advantages ?an x 0 ?irty ye>s ago1 has ris5 9 value because its products h ris5 9 value4 ,its products h become de>] because population1 & !re=e dem&1 h gr[n fa/] ?an agricultural production4 ,m]ely by increas+ its wants ! population has produc$ l& values2 b x has obvi\sly no m "r to !m ?an h ! lead]s ( fa%ion to ! enhanc$ value :i* !y h giv5 to fem99e headge>4 ,on ! o!r h&1 ! increas$ dem& = l&1 & ! consequ5t increase 9 its value1 are frequ5tly attributable specifically to *anges connect$ ) ! l& itself4 ,!y are *anges :i* affect its utility r ?an its sc>city4 ,! f>m] :o irrigates des]t l& increases its utility1 z x 71 intr9sically4 ,! community t e/abli%es a city increases ! utility ( ! l& !re9 & !reab\t extr9sically4 ,new relations are introduc$ betwe5 t l& & c]ta9 desirable social in/itutions4 ,l& t 0 =m]ly useful only = agriculture becomes pr(itable = a factory or a /ore4 ,?r\gh its new ext]nal relations1 ! l& acquires new utility2 or bett]1 its lat5t & pot5tial uses h become actual4 ,n[ ^! new relations1 ^! utility-creat+ & value-creat+ relations1 h be5 e/abli%$ by society1 9 its corporate capacity ?r\gh civil in/itutions & activities1 & 9 its non-corporate capacity ?r\gh ! economic & social 79 ! n>r[] society s5se7 activities ( gr\ps & individuals4 ,9 ?is s5se1 !n1 ! community has creat$ ! increas$ l& values4 ,has x a /rict "r to !m8 a "r s rigor\s & exact t private appropriation ( !m is unju/8 ,z we h j se51 m5 d n admit t m]e production ( value con/itutes a title ( own]%ip4 ,nei!r ! monopoli/ :o increases value by re/rict+ supply1 nor ! pace-mak]s ( fa%ion1 :o increase value by m]ely increas+ dem&1 are reg>d$ z possess+ a moral "r to ! value t !y h creat$4 ,x is increase ( utility1 & n ei!r actual or virtual increase ( sc>city to :i* m5 attribute a moral claim4 ,:y d m5 assign ^! diff]5t e?ical qualities to ! production ( value8 ,:y has ! %oemak] a "r to ! value t he adds to ! raw mat]ial 9 mak+ a pair ( %oes8 ,:at is ! precise basis ( 8 "r8 ,x _c be lab\r m]ely2 = ! cotton monopoli/ has lab\r$ 9 gett+ 8 corn] on cotton4 ,x _c be ! fact t ! %oemak]'s lab\r is socially useful2 = a *emi/ might sp5d labori\s days & nights produc+ wat] f its compon5t elem5ts1 & f9d 8 product a drug on ! m>ket4 ,yet he w\ld h no reasonable gr\nd ( compla9t4 ,:y1 !n1 is x reasonable = ! %oemak] to require1 :y has he a "r to require paym5t = ! utilities t he produces8 ,because m5 want to use 8 products1 & because !y h no "r to require him to s]ve !m )\t comp5sation4 ,he is morally & juridically _! equal1 & has ! same "r z !y to h access on reasonable t]ms to ! e>? & ! e>?'s possibilities ( a livelihood4 ,be+ ?us equal to 8 fell[s1 he is "u no obligation to subord9ate himself to !m by becom+ a m]e in/rum5t = _! welf>e4 ,to assume t he is oblig$ to produce socially useful ?+s )\t remun]ation1 is to assume t all ^! propositions are false2 x is to assume t 8 life & p]sonality & p]sonal developm5t are ( no intr9sic importance1 & t 8 pursuit ( ! ess5tial ends ( life has no mean+ except 9 s f> z may be conducive to 8 function z an in/rum5t ( production4 ,9 a ^w1 ! ultimate basis ( ! produc]'s "r to 8 product1 or its value1 is ! fact t ?is is ! only way 9 :i* he c get 8 j %>e ( ! e>?'s goods1 & ( ! means ( life & p]sonal developm5t4 ,8 "r to comp5sation does n re/ on ! m]e fact ( value-production4 ,z a produc] ( l& values1 ! community is n on ! same moral gr\nd ) ! %oemak]4 ,its productive action is indirect & extr9sic1 in/ead ( direct & intr9sic1 & is m]ely incid5tal to its pr9cipal activities & purposes4 ,l& values are a by-product :i* d n require ! community to devote !reto a s+le mom5t ( "t or a s+le ounce ( ef=t4 ,! activities ( :i* l& values are a by-product1 h already be5 remun]at$ 9 ! price paid to ! wage-e>n] = 8 lab\r1 ! physician = 8 s]vices1 ! manufactur] & ! m]*ant = _! w>es1 & ! municipal corporation 9 ! =m ( taxes4 ,on :at gr\nd c ! community1 or any "p ( x1 set up a claim 9 /rict ju/ice to ! increas$ l& values8 ,! "r ( ! memb]s ( ! community to ! means ( liv+ & self developm5t is n dep5d5t ^u ! tak+ ( ^! values by ! community4 ,nor are !y treat$ z in/rum5ts to ! welf>e ( ! private own]s :o d get ! socially creat$ l& values2 = !y exp5d nei!r "t nor lab\r 9 ! int]e/ ( ! latt] directly4 ,_! lab\r is precisely :at x w\ld h be5 _h !re be5 no increase 9 ! value ( ! l&4 ,s9ce social production does n con/itute a "r to l& values nor to r5t1 x af=ds n a %ad[ ( ju/ification = ! confiscation ( ^! ?+s by ! community4 ,if social appropriation ( socially creat$ l& values _h be5 introduc$ ) ! fir/ occupation ( a piece ( l&1 x might possibly h prov$ m g5]ally b5eficial ?an ! pres5t sy/em4 ,9 t case1 h[ev]1 ! moral claim ( ! community to ^! values w\ld h re/$ on ! fact t !y did n belong to anybody by a title ( /rict ju/ice4 ,!y w\ld h be5 a res nullius 7nobody's prop]ty7 :i* might fairly h be5 tak5 by ! community accord+ z !y made _! appe>ance4 ,! community c\ld h appropriat$ !m by ! title ( fir/ occupancy4 ,b !re c\ld h be5 no moral title ( social production4 ,:51 h[ev]1 ! community or ! ,/ate fail$ to take advantage ( its opportunity to be ! fir/ occupant ( ^! values1 :5 x p]mitt$ ! individual proprietor to appropriate !m1 x =feit$ its own claim4 ,ev] s9ce x has _h no m "r to already exi/+ l& values ?an x has to seize ! lab\r]'s wages or ! capitali/'s int]e/1--no m "r ?an "o p]son has to recov] a gift or donation t he has unconditionally be/[$ ^u ano!r4 ,to sum up ! conclusions ( ?is *apt]3 ,! argum5t aga9/ fir/ occupancy is valid only ) reg>d to ! abuses ( private own]%ip1 n ) reg>d to ! in/itution2 ! argum5t bas$ ^u ! title ( lab\r is ! outcome ( a faulty analysis1 & is inconsi/5t ) o!r /atem5ts ( its au?or2 ! argum5t d]iv$ f m5's equal rights to l& m]ely proves t private own]%ip does n secure p]fect ju/ice1 & ! proposal to correct ?is defect by confiscat+ r5t is unju/ because x w\ld produce great] evils2 & ! s call$ production ( ! social values ( l& conf]s ^u ! community no prop]ty "r :atev]4 ,,footnotes3 #h ,socialism3 ,utopian & ,sci5tific1 p4 #de2 ,*icago1 #aijj4 #i ,a summ>y ( ! ,pr9ciples ( ,socialism1 p4 #bc2 ,london1 #ahii4 #aj ,socialism3 ,a ,reply to ! ,pope's ,encyclical1 p4 #d2 ,london1 #ahii4 #aa ,progress & ,pov]ty1 book vii1 *4 i4 #ab ,la ,proprit ,prive1 p> ,l4 ,g>riguet1 ,i1 #fb2 ,p>is1 #aijc4 #ac ,cf4 ,ardant1 ,papes et ,paysans1 pp4 #da1 sq4 #ad ,social ,/atics1 *ap1 ix2 #ahej4 ,sp5c]'s retractation1 9 a lat] edition ( ?is "w1 ( 8 e>li] views on ! "r ( prop]ty 9 l& does n affect ! tru? ( ! description quot$ 9 ! passage above4 #ae ,progress & ,pov]ty1 loc4 cit4 #af ,op5 ,lett] to ,pope ,leo ,,xiii1 page #be ( ,vi]?'s edition4 #ag ,progress & ,pov]ty1 loc4 cit4 #ah ,progress & ,pov]ty1 loc4 cit4 #ai ,op5 ,lett] to ,pope ,leo ,,xiii1 loc4 cit4 #bj ,:ittak]1 op4 cit41 p4 #cb4 #ba ,op5 ,lett]1 loc4 cit4 #bb ,progress & ,pov]ty1 book vii1 *4 i4 #bc ,cf4 *apt] entitl$ ,comp5sation 9 ,a ,p]plex$ ,philosoph]4 #bd ,cf4 ,pr9ciples ( ,political ,economy1 #ahia1 p4 #acj4 #be ,progress & ,pov]ty4 #bf ,progress & ,pov]ty1 book vii1 *4 iii4 ,,*apt] ,,iv ,,private ,,own]%ip ,,! ,,be/ ,,sy/em ,,( ,,l& ,,t5ure ,! def5ce ( private l&[n]%ip set =? 9 ! la/ *apt] has be5 conditional4 ,x has t5d$ to %[ t ! in/itution is morally lawful s long z no bett] sy/em is available4 ,z soon z a bett] sy/em has be5 discov]$1 ! ,/ate & ! citiz5s are und\bt$ly "u "s degree ( moral obligation to put x into practice4 ,h5ce ! important pres5t "q is :e!r ?is condition or cont+5cy has become a reality4 ,! only propos$ & ! only possible alt]native sy/ems are ,socialism & ! ,s+le ,tax4 ,all o!r =ms ( t5ure are prop]ly class$ z modifications ( private own]%ip1 r ?an z di/9ct sy/ems4 ,consequ5tly ! wor?1 & effici5cy1 & morality ( private own]%ip c be adequately det]m9$ by comp>ison ) ! two j m5tion$4 ,! ,sociali/ ,proposals ,impracticable ,z n[ exi/+ & z commonly und]/ood1 private l&[n]%ip comprises f\r elem5ts :i* are n f\nd toge!r 9 ei!r ,socialism or ! ,s+le ,tax4 ,!y are3 security ( possession comb9$ ) ! p[] to transf] & transmit2 ! use ( l& comb9$ ) ! p[] to let ! use to o!rs2 ! receipt ( rev5ue f improvem5ts 9 or ^u ! l&2 & ! receipt ( economic r5t1 ! rev5ue due to ! l& itself1 ap>t f improvem5ts4 ,9 its extreme =m1 & z =m]ly und]/ood by ! majority ( its au?oritative expon5ts1 ,socialism w\ld take f ! individual all ( ^! elem5ts or p[]s4 ,! ,/ate1 or ! ,collectivity1 w\ld own & manage all productive l& & l&-capital1 & w\ld receive & di/ribute ! product4 ,consequ5tly ! cultivators ( ! l& w\ld be depriv$ ( ev5 t limit$ degree ( control :i* is n[ possess$ by ! t5ant on a r5t$ f>m2 = ! latt]1 ?\gh n a l&[n]1 is ! own] ( a f>m+ bus9ess1 & ( agricultural in/rum5ts ( production4 ,"u ,socialism ! us]s ( ! l& w\ld n receive ! rev5ue ei!r f improvem5ts or f ! l& itself4 ,!y w\ld be sub/antially employs ( ! community1 receiv+ a %>e ( ! product accord+ to "s plan ( di/ribution e/abli%$ by public au?ority4 ,l& occupi$ by dwell+s w\ld likewise be own$ & manag$ by ! ,/ate1 al?\gh its product1 ! b5efit ( its use1 w\ld necess>ily g 9 ! fir/ in/ance to ! occupi]4 ,9 return = ?is b5efit he w\ld und\bt$ly be requir$ to pay "s k9d ( r5t to ! ,/ate4 ,n[ ! majority ( p]sons believe t ?is sy/em ( l& t5ure w\ld be inf]ior to private own]%ip1 bo? z reg>ds individual welf>e & social welf>e4 ,! reasons = ?is belief w be giv5 9 detail 9 ! *apt] on ,! ,sociali/ ,s*eme ( ,indu/ry4 ,= ! pres5t x w be suffici5t to po9t out 9 a summ>y way t ,socialism w\ld be unable to organise & c>ry on effici5tly all agricultural & extractive indu/ries1 ei!r "u "o c5tral direction or "u _m prov9cial au?orities2 t x c\ld n adju/ wages & sal>ies satisfactorily1 nor give ! individual work] an inc5tive z effective z ! self int]e/ t goes ) private own]%ip2 t x w\ld deprive ! work] ( a great "p ( ! fre$om t he n[ enjoys 9 ! matt]s ( occupation & resid5ce2 t x w\ld leave to ! consum] less *oice 9 ! dem& = ! products ( l&2 t x w\ld place all ! p 9 a position ( dep5d5ce ^u a s+le ag5cy = all ^! products2 & t x w\ld make all l& us]s1 :e!r z work]s or z resid5ts1 t5ants-at-w on ! prop]ty ( ! ,/ate4 ,f ! nature ( ! case1 none ( ! =ego+ propositions c be demon/rat$ ma!matically4 ,nev]!less !y are z ne>ly evid5t z any o!r practical conclusions :i* are bas$ ^u our g5]al exp]i5ce ( human nature1 its t5d5cies1 & its limitations4 ,at any rate1 ! burd5 ( pro( is ^u ! advocates ( ! new sy/em4 ,until !y h assum$ & satisfactorily dispos$ ( ?is burd51 we are ju/ifi$ 9 reject+ _! prophecies1 & 9 ma9ta9+ ! sup]iority ( private own]%ip4#bg ,to-day1 h[ev]1 _m ,sociali/s1 possibly ! majority ( !m 9 "s c\ntries1 w\ld reject ! extreme =m ( l& socialisation discuss$ 9 ! prec$+ p>agraphs4 ,! ne>e/ approa* :i* ,sociali/s h made to a volte face s9ce ,m>x1 has be5 9 relation to ,agr>ianism4444 ,m>x ?\ght t ! advantage ( conc5trat+ capital w\ld be felt 9 agriculture z 9 o!r indu/ries2 b1 9 spite ( a tempor>y confirmation ( ?is view by ! mammo? f>ms :i* sprang up 9 ,nor? ,am]ica1 x n[ appe>s v d\btful4444 ,recognition ( ?is has l$ re=mi/s to sub/itute a policy ( actively assi/+ ! peasants = ! or?odox policy ( leav+ !m to succumb to capitalism4 ,_! =mula is3 ',collectivise cr$it1 transport1 ex*ange1 & all subsidi>y manufacture1 b individualise culture4'#bh ,! ,belgian ,sociali/ lead]1 ,v&]velde1 seems to pref] ,/ate own]%ip & managem5t ( ! great agricultural indu/ries :i* require l>ge masses ( capital = _! effici5t op]ation1 su* z dairy+1 di/ill+1 & sug> mak+1 toge!r ) ,/ate own]%ip ( ! l& ?us us$4 ,o!r l&s he w\ld h own$ by ! ,/ate1 b cultivat$ by individuals accord+ to a sy/em ( leas+ & r5t-pay+4#bi ,by a ref]5dum vote ! memb]s ( ! ,sociali/ p>ty 9 ! ,unit$ ,/ates rec5tly am5d$ _! plat=m on l&1 to read z foll[s3 ,! ,sociali/ p>ty /rives to prev5t l& f be+ us$ = ! purpose ( exploitation & speculation4 ,x dem&s ! collective possession1 control or managem5t ( l& to :atev] ext5t may be necess>y to atta9 t end4 ,x is n oppos$ to ! occupation & possession ( l& by ^? us+ x 9 a useful & bona fide mann] )\t exploitation4#cj ,z to l& occupi$ by dwell+s1 p]haps ! majority ( ,sociali/s w\ld n[ agree ) ,sp>go 9 ! /atem5t t1 s f> z ! c5tral pr9ciple ( ,socialism is conc]n$1 !re is no m reason = d5y+ ! "r ( a man to own 8 own home ?an !re is to d5y him ! "r to own 8 hat4#ca ,9 s f> z ! =ego+ modifications ( ,sociali/ proposals w\ld all[ ! individual to own ! l& t he cultivates or occupies1 !y d n call = fur!r discussion "h4 ,9 s f> z !y comb9e ,/ate own]%ip ( l& ) individual managem5t ( cultivation1 !y are subject to at lea/ all ! limitations ( ! ,s+le ,tax4 ,to ! latt] sy/em we n[ turn our att5tion4 ,inf]iority ( ! ,s+le ,tax ,sy/em ,( ! f\r lead+ elem5ts ( private own]%ip enum]at$ above1 ! ,s+le ,tax s*eme w\ld comprise all b "o4 ,9 ! words ( ,h5ry ,george himself3 ,let ! individuals :o n[ hold x /ill reta91 if !y want to1 possession ( :at !y are pleas$ to call _! l&4 ,let !m cont9ue to call x _! l&4 ,let !m buy & sell1 & bequea? & devise x4 ,we may safely leave !m ! %ell1 if we take ! k]nel4 ,x is n necess>y to confiscate l&2 x is only necess>y to confiscate r5t4444 ,9 ?is way ! ,/ate may become ! univ]sal l&lord )\t call+ h]self s1 & )\t assum+ a s+le new function4 ,9 =m1 ! own]%ip ( l& w\ld rema9 j z n[4 ,no own] ( l& ne$ be dispossess$1 & no re/riction ne$ be plac$ ^u ! am\nt ( l& t any "o c\ld hold4#cb ,individuals w\ld1 !re=e1 /ill enjoy security ( possession1 ! manag]ial use ( l&1 & ! rev5ue due to improvem5ts4 ,! income aris+ f ! l& itself1 ! economic r5t1 !y w\ld be oblig$ to h& ov] z a free gift to ! ,/ate4 ,z we h se5 9 a prec$+ *apt]1 ?is confiscation ( r5t by ! ,/ate w\ld be pure & simple robb]y ( ! private own]4 ,suppose1 h[ev]1 t ! ,/ate 7 will+ to comp5sate individual proprietors ) a sum equal to ! pres5t value1 or ! capitalis$ r5t1 ( _! l&4 ,9 t case ! only diff]5ce made to ! individual w\ld be t he c\ld no long] inve/ 8 money 9 l& nor pr(it by ! increases 9 l& values4 ,:ile ?is w\ld deprive "s p]sons ( advantages t !y n[ enjoy1 x w\ld be b5eficial to ! majority1 & to ! community4 ,s9ce no man w\ld f9d x pr(itable to reta9 control ( m l& ?an he c\ld use himself1 ! numb] ( actual l& us]s w\ld be increas$4 ,! l& speculator w\ld disappe>1 toge!r ) ! opportunity ( mak+ & los+ =tunes by gambl+ on ! *anges 9 l& values4 ,ow+ to ! removal ( taxation f ! necess>ies ( life & f indu/ry1 consum]s w\ld get goods *eap]1 & "s /imulus w\ld be giv5 to production & employm5t4 ,^? monopolies :i* d]ive _! /r5g? f l& w\ld become weak] & t5d to disappe>4 ,soon] or lat] !re w\ld probably be a consid]able increase 9 ! am\nt ( money available = public improvem5ts & socially b5eficial in/itutions4 ,on ! o!r h&1 !re w\ld be c]ta9 & s]i\s disadvantages4 ,a consid]able numb] ( l& us]s might p]mit _! hold+s to det]iorate ?r\gh c>eless cultivation4 ,to be sure1 !y w\ld n f9d ?is a pr(itable c\rse if !y int5d$ to rema9 on ! l& p]man5tly2 b !y might pref] to exhau/ ! be/ qualities ( a f>m 9 a few ye>s1 & !n retire1 or g into "s o!r bus9ess1 or repeat ! we>+-out process on o!r l&s4 ,?us ! community w\ld suff] ?r\gh ! l[]$ productiv5ess ( its l&1 & because ( ! l[] r5t t x w\ld receive f all subsequ5t us]s ( ! det]iorat$ tracts4 ,9 ! second place1 ! adm9i/rative ma*9]y requir$ to levy & collect ! r5t1 & to apportion ! diff]5t hold+s among competitive bidd]s1 w\ld inevitably involve a va/ am\nt ( error1 inequality1 fav\ritism1 & corruption4 ,= ! l& tax to be levi$ & collect$ w\ld n be1 z n[1 a fraction ( ! r5tal value1 b ! full am\nt ( ! annual r5t4 ,9 ! ?ird place1 cultivators w\ld n h ! inducem5t to make improvem5ts :i* arises f ! hope ( sell+ bo? ! improvem5ts & ! l& at a pr(it1 ow+ to ! increas$ dem& = ! l&4 ,p]haps ! greate/ disadvantage ( ! sy/em w\ld be ! in/ability ( t5ure1 ) reg>d to bo? productive & resid5tial l&s4 ,ow+ to mis=tunes ( v>i\s k9ds1 = example1 "o or two bad crops1 _m cultivators w\ld be tempor>ily unable to pay ! full am\nt ( ! l& tax or r5t4 ,x is sc>cely conceivable t ! ,/ate w\ld remit ! defici5cy1 or refuse to turn ! l& ov] to o!r p]sons on t]ms m advantage\s to itself4 ,inasmu* z ! value & r5t ( l& w\ld be cont9u\sly adju/$ by competition1 ! m effici5t & m weal?y w\ld frequ5tly supplant ! less effici5t & ! less weal?y1 ev5 ?\gh ! latt] _h occupi$ _! hold+s or _! dwell+s = a great numb] ( ye>s4 ,legal security ( t5ure1 ?\gh !oretically ! same z t enjoy$ by ! private own] to-day1 w\ld be mu* less effective practically4 ,9 ?is respect l& us]s w\ld be 9 almo/ z bad a case z r5t]s are at pres5t4#cc ,our conclusion1 !n1 is t private l&[n]%ip is c]ta9ly bett] ?an extreme ,socialism1 or any =m ( ,socialism :i* does n conc$e to ! l& us] all ! control t he w\ld h "u ! ,s+le ,tax sy/em1 & t x is v probably sup]ior to ! latt]4 ,9 mak+ ?is comp>ison & draw+ ?is conclusion1 we h 9 m9d private own]%ip1 n at its wor/ nor z x exi/s or has exi/$ 9 any p>ticul> c\ntry1 b private own]%ip 9 its ess5tial elem5ts1 & ) its capacity = modification & improvem5t4 ,if we 7 to exam9e c>efully ! results ( private own]%ip z x obta9$ 9 ,irel& = sev]al c5turies be=e ! enactm5t ( ! rec5t ,l& ,pur*ase ,act1 we %\ld probably be tempt$ to decl>e t ! mo/ extreme =m ( agr>ian ,socialism c\ld sc>cely h be5 productive ( m individual & social injury4 ,c]ta9 o!r c\ntries pres5t almo/ equally unfav\rable conditions ( comp>ison4 ,failure to note ?is di/9ction betwe5 ! hi/orical & ! pot5tial aspects ( private l&[n]%ip has vitiat$ _m o!rwise excell5t def5ces ( ! in/itution4 ,x has provok$ ! retort t almo/ any plausible *ange w\ld be an improvem5t ^u private own]%ip z x has exi/$ 9 ?is or t c\ntry4 ,b ^! are n ! real alt]natives4 ,! practical *oice is betwe5 private own]%ip z %[n by exp]i5ce & reason to be capable ( improvem5t1 & "s untri$ sy/em :i* is subject to grave defects1 & :i* at its be/ w\ld be probably inf]ior to modifi$ private own]%ip4 ,an attempt to describe "s ( ^! modifications & improvem5ts w be made 9 a subsequ5t *apt]4 ,9 ! meantime we cont5t ourselves ) ! /atem5t t private l& own]%ip is capable ( becom+ bett] ?an ,socialism c]ta9ly1 & probably bett] ?an ! ,s+le ,tax sy/em4 ,consequ5tly x is ju/ifi$ n m]ely s long z nei!r ( ^! s*emes is introduc$1 b z an in/itution :i* ! ,/ate w\ld d well to ma9ta91 protect1 & improve4 ,,footnotes3 #bg ,cf4 ,*apt] xi4 #bh ,ensor1 ,mod]n ,socialism1 p4 xxxi1 ,n4 ,y41 #aijd4 #bi ,idem1 pp4 #bac-baf4 #cj ,cit$ by ,sp>go1 ,! ,sub/ance ( ,socialism1 p4 #hh1 ,n4 ,y41 #aiji4 #ca ,idem1 p4 #ij4 #cb ,progress & ,pov]ty1 book viii1 *4 ii4 #cc ,cf4 ,walk]1 ,l& & ,its ,r5t2 & ,seligman1 ,essays 9 ,taxation4 ,,*apt] ,v ,,private ,,l&[n]%ip ,a ,,natural ,,"r ,! conclusions ( ! prec$+ *apt] include ! /atem5t t individuals are morally ju/ifi$ 9 becom+ & rema9+ l&[n]s4 ,may we take a fur!r /ep1 & ass]t t private l&[n]%ip is a natural "r ( ! individual8 ,if x is1 ! abolition ( x by ! ,/ate1 ev5 ) comp5sation to ! own]s1 w\ld be an act ( inju/ice4 ,! doctr9e ( natural rights is s prom95t 9 ! argum5ts ( bo? ! advocates & ! oppon5ts ( private l&[n]%ip t x des]ves specific treatm5t4 ,moreov]1 ! claim t private l&[n]%ip is a natural "r re/s ^u precisely ! same basis z ! simil> claim ) reg>d to ! individual own]%ip ( capital2 & ! conclusions p]t95t to ! =m] w be equally applicable to ! latt]4 ,a natural "r is a "r d]iv$ f ! nature ( ! individual1 & exi/+ = 8 welf>e4 ,h5ce x diff]s f a civil "r1 :i* is d]iv$ f society or ! ,/ate1 & is int5d$ = a social or civil purpose4 ,su*1 = example1 is ! "r to vote1 or ! "r to hold a public (fice4 ,s9ce a natural "r nei!r proce$s f nor is prim>ily design$ = a civil end1 x _c be annull$1 & x may n be ignor$1 by ! ,/ate4 ,= example3 ! "r to life & ! "r to lib]ty are s sacr$ to ! individual1 s necess>y to 8 welf>e1 t ! ,/ate _c rightfully kill an innoc5t man1 nor puni% him by a t]m 9 prison4 ,?ree ,pr9cipal ,k9ds ( ,natural ,rights ,al?\gh natural rights are all equally valid1 !y diff] 9 reg>d to _! basis1 & _! urg5cy or importance4 ,f ?is po9t ( view1 we may pr(itably di/+ui% ?ree pr9cipal types4 ,! fir/ is exemplifi$ 9 ! "r to live4 ,! object ( ?is "r1 life itself1 is intr9sically good1 good = its own sake1 an end 9 itself4 ,x is ! end to :i* ev5 civil society is a means4 ,s9ce life is good intr9sically1 ! "r to life is also valid intr9sically1 & n because ( consequ5ces4 ,s9ce !re is no conceivable equival5t = life 9 ! case ( any individual 9 any cont+5cy1 ! "r to life is imm$iate & direct 9 all possible circum/ances4 ,among ! natural rights ( ! second class1 ! mo/ prom95t are ! "r to m>ry1 to enjoy p]sonal fre$om1 & to own consumption-goods1 su* z food & clo?+4 ,! objects ( ^! rights are n ends 9 !mselves1 b means to human welf>e4 ,conf9+ our att5tion to m>riage1 we see t memb]%ip 9 ! conjugal union is an indisp5sable means to reasonable life & self developm5t 9 ! majority ( p]sons4 ,! only conceivable sub/itutes are free love & celibacy4 ,( ^! ! fir/ is inadequate = any p]son1 & ! second is adequate only = a m9ority4 ,m>riage is1 !re=e1 directly & p] se necess>y = ! majority ( individuals2 = ! majority x is an individual necessity4 ,if ! ,/ate 7 to aboli% m>riage x w\ld deprive ! majority ( an indisp5sable means ( "r & reasonable life4 ,consequ5tly ! majority h a direct natural "r to ! legal p[] ( m>ry+4 ,9 ! case ( ! m9ority :o d n ne$ to m>ry1 :o c live z well or bett] z celibates1 ! legal opportunity ( m>riage is evid5tly n directly necess>y4 ,b x is necess>y indirectly1 inasmu* z ! p[] ( *oice betwe5 m>riage & celibacy is an individual necessity4 ,no argum5t is requir$ to %[ t ! ,/ate c\ld n decide ?is matt] consi/5tly ) individual welf>e or social peace4 ,:5ce x foll[s t ev5 ! m9ority :o d n wi% or d n ne$ to m>ry1 h a natural "r to embrace or reject ! conjugal condition4 ,9 _! case ! "r to m>ry is indirect1 b none ! less inviolable4#cd ,private own]%ip ( l& belongs 9 a ?ird class ( natural rights4 ,inasmu* z x is n an intr9sic good1 b m]ely a means to human welf>e1 x diff]s f life & resembles m>riage4 ,on ! o!r h&1 x is unlike m>riage 9 t x is n directly necess>y = any individual :atev]4#ce ,! alt]native to m>riage1 namely1 celibacy1 w\ld n ev5 "u ! be/ social adm9i/ration enable ! majority to lead "r & reasonable lives4 ,! alt]native to private l&[n]%ip 7& to private own]%ip ( capital z well71 namely1 "s =m ( employm5t z wage receiv]1 sal>y receiv]1 or fee receiv] enables ! individual to atta9 all ! vital ends ( private own]%ip3 food1 clo?+1 %elt]1 security ( livelihood & resid5ce1 & ! means ( m5tal1 moral1 & spiritual developm5t4 ,none ( ^! vital ends or ne$s is ess5tially dep5d5t ^u private own]%ip ( l&2 = millions ( p]sons satisfy !m e day )\t becom+ l&[n]s4 ,nor are !y exceptions1 z ^? :o c get along )\t m>riage are exceptions4 ,! p]sons :o live reasonable lives )\t own+ l& are av]age p]sons4 ,:at !y d any o!r p]son c\ld d if plac$ 9 ! same circum/ances4 ,!re=e1 private l&[n]%ip is n directly necess>y = ! welf>e ( any individual4 ,private ,l&[n]%ip ,indirectly ,necess>y = ,individual ,welf>e ,9 our pres5t indu/rial civilisation1 h[ev]1 private l&[n]%ip is indirectly necess>y = ! welf>e ( ! individual4 ,x is said to be indirectly necess>y because x is necess>y z a social in/itution1 r ?an z some?+ imm$iately connect$ ) individual ne$s z su*4 ,x is n1 inde$1 s necess>y t society w\ld promptly g to pieces "u any o!r =m ( l& t5ure4 ,z we h se5 9 ! la/ *apt]1 x is necess>y 9 ! s5se t x is capable ( promot+ ! welf>e ( ! av]age p]son1 ( ! majority ( p]sons1 to a mu* great] degree ?an ,/ate own]%ip4 ,x is necess>y = ! same reason & 9 ! same way z a civil police =ce4 ,z ! ,/ate is oblig$ to ma9ta9 a police =ce1 s x is oblig$ to ma9ta9 a sy/em ( private l&[n]%ip4 ,z ! citiz5 has a "r to police protection1 s he has a "r to ! social & economic advantages :i* are connect$ ) ! sy/em ( private own]%ip ( l&4 ,^! rights are natural1 d]iv$ f ! ne$s ( ! individual 9 society1 n dep5d5t ^u ! good pleasure ( ! city or ! ,/ate4 ,!y are individual rights to ! pres5ce & b5efits ( ^! social in/itutions4 ,b man's rights 9 ! matt] ( l& t5ure are m ext5sive ?an 8 rights ) reg>d to a police =ce4 ,!y are n re/rict$ to ! pres5ce & function+ ( a social in/itution4 ,e citiz5 has a natural "r to police protection1 b no citiz5 has a natural "r to become a policeman4 ,! welf>e ( ! citiz5 is suffici5tly look$ aft] :5 ! memb]s ( ! police are select$ by ! au?orities ( ! city4 ,on ! contr>y1 8 welf>e w\ld n be adequately safegu>d$ if ! ,/ate 7 to decide :o might & :o might n become l&[n]s4 ,9 ! fir/ place1 ! ideal condition is t 9 :i* all p]sons c easily become actual own]s4 ,9 ! second place1 ! m]e legal opportunity ( becom+ own]s is a consid]able /imulus to ! en]gy & ambition ( all p]sons1 ev5 ( ^? :o are nev] able to conv]t x into an economic opportunity4 ,!re=e1 only a v p[]ful reason ( social utility w\ld ju/ify ! ,/ate 9 exclud+ any p]son or any class f ! legal p[] to own l&4 ,no su* reason exi/s2 & !re are _m reasons :y ! ,/ate %\ld n attempt any?+ ( ! sort4 ,z a consequ5ce ( ^! facts1 e p]son1 :e!r an actual own] or n1 has a natural "r to acquire prop]ty 9 l&4 ,?is "r is evid5tly a necess>y condition ( a fair & effici5t sy/em ( private own]%ip1 :i* is 9 turn a necess>y condition ( individual welf>e4 ,! "r ( private l&[n]%ip is1 !re=e1 an indirect "r2 b x is q z valid & q z c]ta9 z any o!r natural "r4 ,n[ ?is "r is c]ta9ly valid z aga9/ complete ,socialism1 :i* includes ,/ate managem5t & use1 z well z ,/ate own]%ip4 ,is x valid aga9/ ! ,s+le ,tax sy/em1 or aga9/ su* modifi$ =ms ( ,socialism z w\ld all[ ! individual to r5t & use ! l& z an indep5d5t cultivator ) security ( t5ure8 ,w\ld ! introduction ( "s su* s*eme 9 a c\ntry 9 :i* only a small m9ority ( ! population 7 actual own]s1 con/itute a violation ( individual rights8 ,:ile we _c ) any feel+ ( c]ta9ty return an affirmative answ] to ^! que/ions1 we c confid5tly affirm t re=m )9 ! l9es ( private own]%ip w\ld 9 ! long run be m effective1 &1 !re=e1 t ! "r ( private own]%ip is probably valid ev5 aga9/ ^! modifi$ =ms ( common own]%ip4#cf ,excessive ,int]pretations ( ! ,"r ( ,private ,l&[n]%ip ,! indirect "* ( ! "r ( private l&[n]%ip1 its relativity to & dep5d5ce ^u social conditions1 is n always suffici5tly grasp$ by ei!r its advocates or its oppon5ts4 ,9 ! writ+s ( ! =m] we sometimes f9d language :i* sugge/s t ?is "r is z indep5d5t ( social conditions z ! "r to m>riage or ! "r to life4 ,! ,/ate has no "r to aboli% private prop]ty 9 l& because private prop]ty is n a social "r1 b an individual "r d]iv$ f nature1 n d]iv$ f ! ,/ate4 ,x exi/s = human welf>e1 n m]ely = civil welf>e4#cg ,! only defect 9 ?is reason+ is t ! premises d n ju/ify ! conclusion4 ,und\bt$ly ! ,/ate may n aboli% private own]%ip1 s long z x is necess>y = human or individual welf>e2 b1 :5 ?is necessity ceases1 ! moral ju/ification ( ! in/itution likewise disappe>s4 ,! in/itution may !n be aboli%$1 someh[1 by "s ag5cy1 )\t any violation ( individual rights4 ,:y may n ! task ( abolition be p]=m$ by ! ,/ate8 ,no o!r ag5cy is available4 ,! ass]tion t ! ,/ate is incompet5t to decide :e!r ! in/itution ( private own]%ip has outliv$ its usefulness1 is entirely gratuit\s2 besides1 x implies t a small m9ority ( selfi%ly int]e/$ p]sons may ju/ly require ! cont9uation ( a sy/em ( l& t5ure :i* has become h>mful to ! ov]:elm+ majority ( ! community4 ,extreme def5ces ( ! "r ( private l&[n]%ip are l>gely responsible = ! misconceptions ( _m ( its oppon5ts4 ,occasionally ! latt] repres5t ?is "r z an a priori mon/rosity :i* is s]5ely indep5d5t ( ! facts ( life & indu/ry4 ,:ile su* p]sons are at lib]ty to reject ! int]pretations ( facts conta9$ 9 ! prec$+ p>agraphs1 !y _c reasonably d5y ! logic ( ! process :i* has l$ to ! conclusion t ! individual has a natural "r to own l&4 ,s mu* = ! natural "r ( l&[n]%ip z se5 9 ! light ( reason4 ,let u n[ consid] x briefly f ! side ( doctr9al au?ority1 namely1 ! writ+s ( ! ,fa!rs & ,!ologians ( ! ,*ur*1 & ! =mal pron\ncem5ts ( ! ,popes4 ,! ,doctr9e ( ! ,fa!rs & ,!ologians ,"s ( ! ,*ur* ,fa!rs1 p>ticul>ly ,augu/9e1 ,ambrose1 ,basil1 ,*ryso/om1 & ,j]ome1 d5\nc$ ri*es & ! ri* s sev]ely t !y h be5 accus$ ( d5y+ ! "r ( private own]%ip4 ,! facts1 h[ev]1 are t none ( ! passages ^u :i* ?is accusation is bas$ proves x to be true1 & t 9 num]\s o!r passages all ( ^! writ]s explicitly affirm t private own]%ip is lawful4#ch ,speak+ g5]ally1 we may say t !y taught ! moral goodness ( private own]%ip )\t insi/+ ^u its necessity4 ,h5ce !y _c be cit$ z au?orities = ! doctr9e t ! individual has a natural "r to own l&4 ,"s ( ! great !ologians ( m$ival & po/-m$ival times d5i$ ?is "r1 inasmu* z !y d5i$ t ! in/itution ( private own]%ip 0 impos$ or comm&$ by ! natural law4 ,among !m are ,scotus1#ci ,mol9a1#dj ,lessius1#da ,su>ez1#db ,vasquez1#dc & ,billu>t4#dd ,s9ce private own]%ip is n absolutely necess>y to human welf>e 9 all =ms ( society1 x _c1 9 _! view1 be reg>d$ z /rictly prescrib$ by ! natural law1 nor be in/itut$ )\t ! positive action ( civil au?ority1 or ! cons5t ( ! community4 ,nev]!less !y all admit t x is mu* bett] ?an common own]%ip 9 contempor>y societies4 ,! diff]5ce betwe5 _! position & t ( de ,lugo1 = example1 seems to be two-fold3 ,fir/1 !y put /rong] emphasis ^u ! doctr9es t ! e>? belongs to all m5 9 common1 t 9 ! abs5ce ( orig9al s9 own]%ip w\ld likewise h be5 common1 & t ?is arrangem5t is !re=e 9 a fundam5tal s5se normal1 agree+ ) nature & ! natural law2 &1 second1 !y put a l[] e/imate ^u ! sup]iority ( private own]%ip ev5 9 contempor>y conditions4 ,9 a ^w1 !y d5i$ t private own]%ip 0 s mu* bett] ?an any alt]native sy/em z to conf] ^u ! individual a natural "r 9 ! /rict s5se2 t is1 a "r :i* laid ^u ! ,/ate ! correlative obligation ( ma9ta9+ ! in/itution ( private l&[n]%ip4 ,on ! o!r h&1 _m ( ! able/ !ologians ( ! same p]iod decl>$ t private own]%ip 0 enjo9$ by ! natural law & "r reason1 & consequ5tly t x 0 among ! individual's natural rights4 ,accord+ to ,/4 ,?omas ,aqu9as1 private prop]ty is necess>y = human life1 & is "o ( ^? social in/itutions :i* are prescrib$ by ! jus g5tium2 & ! cont5t ( ! jus g5tium is n det]m9$ by positive law1 b by ! dictates ( natural reason1 by natural reason itself4#de ,^! /atem5ts seem to convey ! doctr9e ( natural "r z cle>ly z c\ld be expect$ 9 ! abs5ce ( an explicit decl>ation4 ,c>d9al de ,lugo sets =? ! same tea*+ some:at m compactly1 b 9 sub/antially ! same t]ms3 ,speak+ g5]ally1 a division ( goods & ( own]%ip-titles proce$s f ! law ( nature1 = natural reason dictates su* division z necess>y 9 ! pres5t circum/ances ( fall5 nature & d5se populations4#df ,?is view is to-day univ]sally accept$ among ,ca?olic writ]s4 ,! ,tea*+ ( ,pope ,leo ,,xiii ,! (ficial tea*+ ( ! ,*ur* on ! subject is f\nd 9 ! ,encyclical1 ,on ! ,condition ( ,lab\r1 by ,pope ,leo ,,xiii4 ,9 ?is docum5t we are told t ! proposals ( ! ,sociali/s are manife/ly aga9/ ju/ice2 t ! "r ( private prop]ty 9 l& is grant$ to man by nature2 t x is d]iv$ f nature n f man1 & ! ,/ate has ! "r to control its use 9 ! int]e/ ( ! public good alone1 b by no means to aboli% x altoge!r4 ,^! /atem5ts ! ,pope d$uces f a consid]ation ( man's ne$s4 ,private prop]ty 9 l& is necess>y to satisfy ! wants1 pres5t & future1 ( ! individual & 8 family4 ,7 ! ,/ate to attempt ! task ( mak+ ?is provision1 x w\ld exce$ its prop] sph]e1 & produce manifold dome/ic & social confusion4 ,:ile ,pope ,leo def9es ! natural "r ( private own]%ip z incompatible ) complete ,socialism1 t is1 collective use z well z collective own]%ip1 8 /atem5ts _c fairly or c]ta9ly be int]pret$ z condemn+ ! ,s+le ,tax sy/em1 or any o!r arrangem5t :i* w\ld leave to ! individual manag]ial use & secure possession ( 8 hold+1 toge!r ) ! p[] to transmit & transf] x1 & full own]%ip ( improvem5ts4 ,^! are ! only elem5ts ( own]%ip :i* ! ,holy ,fa!r def5ds1 & :i* he insi/s ^u z necess>y4 ,! "o elem5t ( private own]%ip :i* ! ,s+le ,tax sy/em w\ld exclude2 namely1 ! p[] to take r5t f & pr(it by ! *anges 9 l& values1 f9ds no place among ! advantages ( private own]%ip enum]at$ 9 ! ,encyclical4 ,!re is1 inde$1 "o passage ( ! ,encyclical 9 :i* ,pope ,leo seems to allude to ! ,s+le ,tax1 or to "s simil> proposal4 ,he expresses 8 amazem5t at ^? p]sons :o ass]t t x is "r = private p]sons to h ! use ( ! soil & its v>i\s fruits1 b t x is unju/ = any "o to possess outright ei!r ! l& on :i* he has built1 or ! e/ate :i* he has br\ght "u cultivation4 ,b ^? :o d5y ^! rights d n p]ceive t !y are defraud+ man ( :at 8 own lab\r has produc$4 ,= ! soil :i* is till$ & cultivat$ ) toil & skill utt]ly *anges its conditions3 x 0 wild be=e1 n[ x is fruitful2 0 b>r51 b n[ br+s =? 9 abundance4 ,t :i* has ?us alt]$ & improv$ ! l& becomes s truly a "p ( itself z to be 9 great measure indi/+ui%able & insep>able f x4 ,is x j t ! fruit ( a man's own lab\r %\ld be possess$ & enjoy$ by any "o else8 ,z effects foll[ _! cause1 s is x j & "r t ! results ( lab\r %\ld belong to ^? :o h be/[$ _! lab\r4 ,9 ?is passage we f9d two pr9cipal /atem5ts3 fir/1 t ^? p]sons are 9 error :o decl>e full private own]%ip ( l& to be unju/2 &1 second1 t x is wrong to deprive a man ( ! improvem5ts :i* he makes 9 ! soil4 ,n[ ! fir/ ( ^! propositions does n t\* ! ,s+le ,tax sy/em z su*2 x only condemns ! ass]tion ( ,h5ry ,george t private own]%ip is ess5tially unju/4 ,x is direct$ aga9/ "o ( ! argum5ts = ! sy/em1 n aga9/ ! sy/em itself4 ,m specifically1 x is a refutation ( an argum5t aga9/ private l& own]%ip1 r ?an a positive attack ^u any o!r sy/em4 ,x c\ld be accept$ by any ,s+le ,tax] :o does n agree ) ,h5ry ,george t ! pres5t sy/em is ess5tially unju/4 ,! second proposition does n apply to ! ,s+le ,tax sy/em at all2 = ! latt] w\ld conc$e to ! individual hold] ! full own]%ip & b5efit ( improvem5ts2 & x c\ld easily be s adm9i/]$ z to protect him aga9/ injury 9 any case 9 :i* improvem5t values 7 n exactly & cle>ly di/+ui%able f l& values4 ,:ile ,h5ry ,george oppos$ ! doctr9es ( ! ,encyclical 9 8 ,op5 ,lett] to ,pope ,leo ,,xiii1 all 8 argum5ts are direct$ aga9/ ! proposition t private own]%ip is "r & j4 ,! ,lett] is an attack ^u private own]%ip r ?an a def5ce ( ! ,s+le ,tax4 ,app>5tly its au?or did n f9d t ,pope ,leo condemn$ any positive or ess5tial elem5t ( ! ,s+le ,tax z a propos$ sy/em ( l& t5ure4 ,if ! rejo9d] be made t ,pope ,leo c\ld h _h no o!r gr\p ( p]sons 9 m9d ?an ! ,s+le ,tax]s1 :5 he wrote ! p>agraph quot$ above1 our answ] mu/ be t he did n def9itely id5tify !m1 ei!r by nam+ !m1 z he nam$ ! ,sociali/s1 or by any o!r suffici5tly explicit designation4 ,apply+ to ?is p>agraph ! cu/om>y & recognis$ rules ( int]pretation1 we are oblig$ to conclude t x does n conta9 an explicit condemnation ( ! ,s+le ,tax sy/em4 ,to put ! sub/ance ( ?is *apt] 9 two s5t5ces3 ,private l&[n]%ip is a natural "r because 9 pres5t conditions ! in/itution is necess>y = individual & social welf>e4 ,! "r is c]ta9ly valid z aga9/ complete ,socialism1 & probably valid z aga9/ any su* radical modification ( ! pres5t sy/em z t contemplat$ by ! ?or\ghgo+ ,s+le ,tax]s4 ,,footnotes3 #cd ,! m>riage rights ( crim9als1 deg5]ates1 & o!r socially dang]\s p]sons1 are pass$ ov] "h z n p]t95t to ! pres5t discussion4 ,= ! same reason no?+ is said ( ! p]fectly valid social argum5t 9 fav\r ( ! individual "r ( m>riage4 #ce ,cf4 ,v]me]s*1 ,quae/iones de ,ju/itia1 no4 #bjd4 #cf ,! argum5t 9 ! text is obvi\sly empirical1 drawn f consequ5ces4 ,!re is1 h[ev]1 a putatively intr9sic or metaphysical argum5t :i* is sometimes urg$ aga9/ ! ju/ice ( ! ,s+le ,tax sy/em4 ,x runs ?us3 s9ce ! fruits ( a ?+ belong to ! own] ( ! ?+1 res fructificat dom9o1 r5t1 :i* is ! economically imput$ fruit ( l&1 necess>ily & z a matt] ( natural "r %\ld g to ! own] ( ! l&4 ,z w be %[n lat]1 ! =mula at ! basis ( ?is cont5tion is n a metaphysical pr9ciple at all1 b a conclusion f exp]i5ce4 ,l e o!r =mula or pr9ciple ( prop]ty rights1 x mu/ f9d its ultimate basis 9 human welf>e4 #cg ,lib]atore1 ,pr9ciples ( ,political ,economy1 pp4 #acj1 #acd4 #ch ,cf4 ,v]me]s*1 op4 cit41 no4 #baj2 ,ryan1 ,alleg$ ,socialism ( ! ,*ur* ,fa!rs4 #ci ,9 ,,iv ,s5t41 d4 #ae1 q4 #b1 n4 #e2 & ,reportata p>isi5sia1 d4 #ae1 q4 #d1 n4 #g-ab4 #dj ,de ,ju/itia et ,jure1 tr4 #b1 d4 #ah & #bj4 #da ,de ,ju/itia et ,jure1 c4 #e1 n4 #c4 #db ,de ,legibus1 l4 #b1 c4 #ad1 n4 #ac & #af4 #dc ,9 ,summa1 #ama #b;ae1 d4 #aeg1 n4 #ag4 #dd ,de ,ju/itia et ,jure1 d4 #d1 a4 #a4 #de ,summa ,!ologica1 #b;a #b;ae1 q4 #eg1 a4 #b & #c4 #df ,de ,ju/itia et ,jure1 d4 #f1 s4 #a1 n4 #f4 ,,*apt] ,,vi ,,limitations ,,on ,,! ,,l&[n]',s ,,"r ,,to ,,r5t ,! *apt]s imm$iately prec$+ h l$ to ! conclusion t private own]%ip is ! be/ sy/em ( l& t5ure1 & t ! individual has a natural "r to p>ticipate 9 its advantages4 ,al?\gh ?is sy/em conf]s ^u ! individual own] ! p[] to take ! r5t ( ! l&1 we are n logically deb>r$ f rais+ ! "q :e!r ?is p[] is a necess>y "p ( ! moral rights ( l&[n]%ip4 ,does ! "r to own a piece ( l& necess>ily include ! "r to take its r5t8 ,by :at e?ical pr9ciple ( di/ribution is ! l&[n] ju/ifi$ 9 appropriat+ a rev5ue 9 return = :i* he has p]=m$ no lab\r1 nor made any sacrifice8 ,?is is unque/ionably :at happ5s :5 a man hires out 8 l& to ano!r4 ,& 9 conditions ( p]fect competition1 ^? own]s :o op]ate _! own l& are fully remun]at$ = _! lab\r 9 ! =m ( pr(its4 ,ov] & above ?is sum !y receive r5t1 ! paym5t t !y c\ld get f ! l& if !y 7 to let its use to t5ants4 ,9 ! normal situation1 !re=e1 r5t is a workless income4 ,on :at moral gr\nd may x be tak5 by ! l&[n]8#dg ,! fact t we h reject$ ! ,s+le ,tax & ! confiscation ( r5t by ! community1 does n ( itself commit u to ! conclusion t ! private own] has a moral "r to receive r5t4 ,we h condemn$ ! ,/ate appropriation ( r5t on ! assumption t x w\ld take place )\t a simil> confiscation ( int]e/4 ,su* discrim9ation w\ld be grossly unfair2 = x w\ld cause l& values to s9k to z]o1 :ile leav+ ! value ( capital sub/antially undi/urb$4 ,to c>ry out su* a programme w\ld be to treat prop]ty own]s unequally1 to p5alise "o set ( b5efici>ies ( workless incomes1 :ile leav+ ano!r set unt\*$4 ,consequ5tly1 ! ,/ate is n ju/ifi$ 9 confiscat+ r5t unless x is ju/ifi$ 9 confiscat+ or prohibit+ int]e/2 & ! l&[n] is z fully ju/ifi$ 9 tak+ r5t z ! capital own] is 9 tak+ int]e/4 ,! cont5tion ( ! ,s+le ,tax] t own]%ip ( ! =m] k9d is morally wrong1 :ile own]%ip ( capital is morally legitimate1 has already receiv$ suffici5t discussion4 ,! specific "q rema9s1 !re=e1--:e!r ! l&[n] & ! capitali/ are ju/ifi$ 9 receiv+ & reta9+ _! workless incomes4 ,inasmu* z ! pr9ciples & p]t95t facts involv$ 9 ?is "q c be m effectively & m conv5i5tly discuss$ 9 relation to int]e/ ?an 9 relation to r5t1 ! solution w be def]r$ to ! *apt]s on int]e/4 ,assum+ provisionally t ! outcome ( ! discussion w be fav\rable to ! claims ( ! l&[n]1 let u inquire :e!r he always has a moral "r to all ! r5t4 ,! p>allel "q reg>d+ ! capitali/ w be consid]$ 9 connection ) ! "r ( ! lab\r] to a liv+ wage4 ,! ,t5ant's ,"r to a ,dec5t ,livelihood ,! actual paym5ts made by t5ants to l&[n]s sometimes leave ! =m] )\t ! means ( dec5t liv+4 ,su* _h be5 ! condition ( a l>ge "p ( ! ,iri% t5ant f>m]s be=e #ahha1 :5 ! ,l& ,c\rts 7 e/abli%$4 ,9 ! c\rse ( tw5ty-five ye>s ^! c\rts r$uc$ ! r5ts by tw5ty p] c5t4 on ! av]age 9 upw>ds ( half a million cases4 ,:ile a "p ( ! r$uctions 0 int5d$ to free ! t5ants f ! unju/ burd5 ( pay+ r5t on _! own improvem5ts1 ano!r "p 0 und\bt$ly ord]$ on ! !ory t ! t5ants 7 entitl$ to reta9 a l>g] %>e ( ! product = _! own support4 ,yet ! latt] portion ( ! r$uction app>5tly repres5t$ true economic r5t2 = x 0 includ$ 9 ! diff]5ce betwe5 ! product & ! curr5t co/ ( production2 x 0 includ$ 9 ! am\nt t m5 9 ,irel& 7 will+ to pay = ! use ( l&4 ,x 0 a "p ( ! surplus t !y _h left aft] defray+ _! exp5ditures = capital & lab\r4 ,to be sure1 ! t5ants 9 "s o!r c\ntries1 say1 ! ,unit$ ,/ates1 w\ld n h be5 satisfi$ ) su* a small remun]ation1 & w\ld n h h&$ ov] s mu* to ! l&lord2 b if ! concept ( economic r5t is to h any s]viceable mean+ x mu/ be det]m9$ by ! actual returns to capital & lab\r 9 ea* locality1 & n by ! /&>ds ( "s o!r place :i* are assum$ to be normal4 ,9 any case1 ! ,iri% ,l& ,c\rts did r$uce ! r5ts bel[ ! level fix$ by competition1 by ! unregulat$ =ces ( supply & dem&4 ,0 ?is treat+ ! l&lords ju/ly8 ,may a t5ant ev] reta9 a "p ( ! r5t :i* ! free c\rse ( competition w\ld yield to ! l&[n]8 ,"h we mu/ di/+ui% betwe5 ! t5ant :o is & ! t5ant :o is n 9 possession ( a hold+ suffici5tly l>ge to require all ! "t & lab\r ( a cultivator possess+ av]age effici5cy4 ,! t5ant :o controls & cultivates less ?an ?is am\nt ( l& ought n to expect to get all 8 livelihood !refrom4 ,failure to d s w\ld n necess>ily mean t he 0 pay+ exorbitant r5t4 ,hold+s ( ?is sort are rightly call$ uneconomic2 t is1 !y are too small to p]mit a pr(itable & reasonable application ( lab\r & capital4 ,on su* hold+s ! fair r5t w\ld be t am\nt p] acre :i* w\ld be reg>d$ z fair = ! use ( ! same l& held 9 f>ms ( economic size4 ,! prop] rec\rse = ! occupi]s ( uneconomic hold+s is to get control ( m l&1 :i* is exactly :at has be5 happ5+ 9 ,irel& ?r\gh ! action ( ! ,conge/$ ,di/ricts ,bo>d4 ,?is br+s u to ! case ( ! man :o _c pay ! competitive r5t on a hold+ ( normal size1 & h suffici5t left to provide himself & family ) a dec5t livelihood4 ,! fundam5tal reason :y ! r5t is s high is to be f\nd 9 ! economic weakness ( ! great mass ( ! t5ants1 :o c nei!r emigrate to ano!r c\ntry nor get a bett] liv+ z wage e>n]s 9 _! own4 ,_! pr$icam5t is exactly ! same z t ( ! helpless & unskill$ lab\r]s :o are compell$ by ! =ce ( competition to accept less ?an liv+ wages4 ,9 ^! circum/ances x seems cle> t a gov]nm5t commission w\ld be ju/ifi$ 9 r$uc+ ! r5ts to su* a level z w\ld leave ! t5ants ( av]age effici5cy on normal hold+s ! means ( ma9ta9+ a dec5t /&>d ( liv+4 ,9 su* cases1 !n1 ! l&[n] has n a "r to ! full economic or competitive r5t4 ,8 "r !reto is morally inf]ior to ! t5ant's "r to a dec5t livelihood1 j z ! capitali/-employ]'s "r to ! prevail+ rate ( int]e/ is morally inf]ior to ! lab\r]'s "r to a liv+ wage4 ,nei!r 9 ! "o case nor 9 ! o!r is m]e competition ! f9al det]m9ant & measure ( ju/ice4 ,x has no moral validity :5 x comes into conflict ) man's natural "r to get a reasonable livelihood on reasonable conditions f ! b\nty ( ! e>?4 ,^! fundam5tal que/ions w be discuss$ at l5g? 9 ! *apt]s on wages4 ,to ! possible objection t ! concept ( a normal hold+ is vague1 ! suffici5t reply is t 9 practice x c be e/imat$ ) z mu* def9it5ess z ! concept ( ! av]age lab\r]4 ,z we see f ! hi/ory ( ! ,iri% ,l& ,c\rts & _! ,judicial ,r5ts1 x c be def9$ ) suffici5t accuracy to s]ve ! ends ( practical ju/ice4 ,m ?an ?is is n atta9$ 9 any dep>tm5t ( human relations1 p>ticul>ly1 economic relations4 ,! ,lab\r]'s ,claim ,^u ! ,r5t ,%\ld any "p ( ! r5t g to ! lab\r]8 ,let u take fir/ ! case ( ! lab\r] :o is employ$ by a t5ant1 & :o is n occupi$ 9 p]sonal s]vice b 9 "s productive task connect$ ) ! l&4 ,l all o!r wage e>n]s he has a "r to a suffici5t %>e ( ! product to af=d him a dec5t livelihood4 ,s9ce ! t5ant is ! employ]1 ! director ( ! bus9ess1 & ! own] ( ! product1 he r ?an ! l&[n] is ! p]son :o is prim>ily *>g$ ) ! obligation ( provid+ ! lab\r] ) a liv+ wage4 ,z not$ above1 8 own claim to a dec5t livelihood is morally sup]ior to ! l&lord's claim to r5t2 b if1 hav+ tak5 ?is am\nt f ! product1 he f9ds himself unable to pay liv+ wages to all 8 employees unless he d$ucts some?+ ei!r f ! normal int]e/-return on 8 own capital or f ! r5t t w\ld ord9>ily g to ! l&[n]1 he is morally b\nd to *oose ! =m] c\rse4 ,he1 n ! l&[n]1 is ! wage pay]4 ,t he is oblig$ to provide liv+ wages to 8 lab\r =ce ev5 at ! co/ ( int]e/ on 8 own inve/m5t 9 ! bus9ess1 is a proposition t w receive ample discussion & def5ce 9 a lat] *apt]4#dh ,suppose1 h[ev]1 t ! t5ant has n ! means ( pay+ full liv+ wages aft] turn+ into ! wage fund all ! money t he _h hop$ to reta9 z int]e/ on 8 capital4 ,may he )hold f ! l&[n] a suffici5t portion ( ! r5t to cov] ! deficit 9 wages8 ,7 ?is action practicable x w\ld be und\bt$ly ju/ifiable2 = ! l&[n]'s claim to r5t is no /rong] ?an ! t5ant-capitali/'s claim to int]e/4 ,z claims ^u ! product1 bo? are morally weak] ?an ! lab\r]'s "r to a liv+ wage4 ,nev]!less1 ! t5ant :o %\ld attempt to c>ry out ?is c\rse w\ld probably be prosecut$ = non-fulfilm5t ( 8 contract ) ! l&[n]1 or w\ld be evict$ f ! hold+4 ,nor is ! l&[n] oblig$ 9 su* cases to give up ! r5t 9 ord] t a liv+ wage may be paid to ! t5ant's lab\r =ce4 ,he _c be c]ta9 t ! failure ( ! latt] to receive full liv+ wages has n be5 due to ineffici5cy or fraudul5t conduct on ! "p ( ! t5ant4 ,moreov]1 ! l&[n] w\ld be ju/ifi$ 9 seek+ to protect himself aga9/ ! recurr5ce ( su* situations by putt+ 8 l& 9 *>ge ( a m capable t5ant1 or by sell+ x & inve/+ or l5d+ ! money else:]e4 ,h[ev] cle> may be ! ab/ract proposition t ! claim to a liv+ wage possess$ by ! employee ( ! t5ant is sup]ior to ! claim to r5t possess$ by ! l&[n]1 ! difficulty ( realis+ ?is "r 9 practice is suffici5t to relieve ev5 consci5ti\s proprietors f ! obligation ( giv+ up ! r5t = ?is purpose4 ,:5 ! l&[n] is op]at+ or cultivat+ 8 l& himself1 he is evid5tly oblig$ to pay a liv+ wage to all 8 employees at ! exp5se ( r5t1 j z he is oblig$ to d s at ! co/ ( int]e/ on 8 artificial capital4 ,to be sure1 ! fir/ *>ge ^u ! product %\ld be a dec5t livelihood = himself2 b1 :5 he has obta9$ ?is1 ! "r ( 8 employees to a liv+ wage is morally sup]ior to 8 "r to ei!r r5t or int]e/4 ,at pres5t ! ,/ate takes a "p ( ! r5t ?r\gh taxation4 ,may x take a l>g] %>e )\t violat+ ju/ice8 ,?is "q w be consid]$ 9 ! second *apt] foll[+4 ,9 ! meantime1 we %all exam9e ! pr9cipal defects ( ! exi/+ sy/em ( l& t5ure ) a view to ! sugge/ion ( appropriate rem$ies1 :e!r ?r\gh taxation or o!rwise4 ,,footnotes3 #dg ,! assumption t p]fect competition is ev5 r\ghly approximat$ 9 relation to m5 :o op]ate _! own l&1 & t !y g5]ally obta9 an adequate return = _! lab\r 9 addition to ! sum t !y might h obta9$ ?r\gh hir+ out _! l&1 may appe> r viol5t 9 view ( ! e/imate t ! av]age f>m] 9 ! ,unit$ ,/ates gets only #djb annually 9 paym5t = ! lab\r ( himself & family4 ,see article on ,! ,f>m]'s ,income 9 ! ,am]ican ,economic ,review1 ,m>*1 #aiaf4 ,h[ev]1 ?is income is mo/ly 9 ! =m ( food1 fuel1 & %elt]1 :i* w\ld co/ v mu* m 9 ! city2 consequ5tly x is probably equival5t to an urban income ( #fjj4 ,its value is /ill fur!r enhanc$ by ! f>m]'s indep5d5t position1 & by 8 expectation ( pr(it+ by ! future increase ( l& values4 ,h5ce x w\ld seem t ! r5t & int]e/ all[ance ( #cbb might fairly be reg>d$ z a surplus 9 excess ( ! necess>y paym5t = lab\r4 #dh ,*apt] xxii4 ,,*apt] ,,vii ,,defects ,,( ,,! ,,exi/+ ,,l& ,,sy/em ,/>t+ f ! pr9ciple t ! rightness or wrongness ( any sy/em ( l& t5ure is det]m9$ n by metaphysical & intr9sic consid]ations1 b by ! effects ( ! in/itution ^u human welf>e1 we arriv$ at ! conclusion t private l&[n]%ip is n unju/1 s long z no bett] sy/em is available4 ,by ! same te/ ( human welf>e we f\nd t x w\ld be wrong to sub/itute a bett] sy/em ?r\gh ! process ( confiscat+ r5t1 :ile leav+ int]e/ undi/urb$4 ,a fur!r /ep br\ght u to ! conclusion t complete ,socialism w\ld c]ta9ly1 & ! complete ,s+le ,tax probably1 be inf]ior to ! pres5t sy/em4 ,z a sort ( coroll>y1 ! social & moral sup]iority ( private l&[n]%ip 0 /at$ 9 t]ms ( natural rights4 ,f9ally1 ! "q 0 rais$ :e!r ! l&[n] has a "r to take r5t1 & to take all ! r5t4 ,9 /at+ ! sup]iority ( ! pres5t sy/em1 we explicitly not$ t we _h 9 m9d ! sy/em z capable ( improvem5t4 ,?is impli$ t !re are defects 9 ! pres5t =m ( l& t5ure1 & t ^! c be elim9at$ 9 su* a way z to make ! sy/em m b5eficial & m 9 h>mony ) ! pr9ciples ( ju/ice4 ,9 ! pres5t *apt] we %all give a summ>y review ( ! pr9cipal defects1 & 9 ! foll[+ *apt] we %all sugge/ "s me?ods ( re=m4 ,all ! defects & abuses may conv5i5tly be gr\p$ "u ?ree heads3 ,monopoly2 ,excessive ,ga9s2 & ,exclusion f ! ,l&4 ,l&[n]%ip & ,monopoly ,9 ! lit]ature ( ! ,s+le ,tax movem5t ! phrase1 l& monopoly1 is con/antly recurr+4 ,! expression is inaccurate2 = ! sy/em ( individual l&[n]%ip does n con=m to ! requirem5ts ( a monopoly4 ,!re is1 inde$1 a c]ta9 resemblance betwe5 ! control ex]cis$ by ! own] ( l& & t possess$ by ! monopoli/4 ,z ! proprietor ( e sup]ior soil or site has an economic advantage ov] ! own] ( ! poore/ soil or site1 s ! proprietor ( a monopoli/ic bus9ess obta9s l>g] ga9s ?an ! man :o mu/ op]ate 9 conditions ( competition4 ,9 bo? cases ! advantage is bas$ ^u ! sc>city ( ! ?+ controll$1 & ! ext5t ( ! advantage is measur$ by ! degree ( sc>city4 ,nev]!less1 !re is an important diff]5ce betwe5 l&[n]%ip & monopoly4 ,! latt] is usually def9$ z t degree ( unifi$ control :i* enables ! p]sons 9 control arbitr>ily to limit supply & raise price4 ,z a rule1 no su* p[] is ex]cis$ by individuals1 or by comb9ations ( individuals ) reg>d to l&4 ,! pecuni>y advantage possess$ by ! l&[n]1 t is1 ! p[] to take r5t1 is conf]r$ & det]m9$ by influ5ces outside ( himself1 by ! natural sup]iority ( 8 l&1 or by its proximity to a city4 ,he c nei!r dim9i% ! am\nt ( l& 9 exi/5ce nor raise ! price ( 8 own4 ,! =m] result is inhibit$ by nature2 ! latt] by ! competition ( o!r p]sons :o own ! same k9d ( l&4 ,to be sure1 !re are c]ta9 k9ds ( l& :i* are s sc>ce & s conc5trat$ t !y d fall "u true monopoli/ic control4 ,su* are ! an?racite coal m9es ( ,p5nsylvania1 & "s peculi>ly situat$ plots 9 a few great cities1 = example1 l& t is desir$ = a railway t]m9al4 ,b ^! in/ances are exceptional4 ,! g5]al fact is t ! own]s ( any k9d ( l& are 9 competition ) simil> own]s4 ,:ile ! elem5t ( sc>city is common to l&[n]%ip & to monopoly1 x diff]s 9 its op]ation4 ,9 ! case ( monopoly x is subject1 )9 limits1 to ! human w4 ,?is diff]5ce is suffici5tly important1 bo? !oretically & practically1 to =bid ! id5tification or confusion ( l&[n]%ip ) monopoly4 ,a notable illu/ration ( su* confusion is ! volume by ,dr4 ,f4 ,c4 ,h[e1 entitl$1 ,privilege & ,democracy 9 ,am]ica4 ,he ma9ta9s t bitum9\s coal1 copp] ore1 & natural gas are true monopolies1 b gives no adequate pro( to support ?is ass]tion4 ,moreov]1 he exagg]ates consid]ably ! "p play$ by l&[n]%ip 9 ! =mation ( indu/rial monopolies4 ,?us1 8 cont5tion t ! petroleum monopoly is due to own]%ip ( oil-produc+ l&s is c]ta9ly incorrect2 = ! ,/&>d ,oil ,company 7or companies7 has nev] controll$ z mu* z half ! supply ( raw mat]ial4 ,! p[] ( ! ,/&>d does n re/ ^u a direct monopoly ( ! production ( crude oil ?r\gh own]%ip ( ! wells4#di ,p]haps ! mo/ rem>kable mis/atem5t 9 ! volume is ?is3 ,! railway is a monopoly because ( its id5tity ) l&4#ej ,n[ !re are a few important railway l9es trav]s+ r\tes or possess+ t]m9al sites :i* are s mu* bett] ?an any alt]native r\tes or sites z to give all ! advantages ( a true monopoly4 ,b !y are 9 a small m9ority4 ,9 ! great majority ( cases1 a second p>allel /rip or p>allel site c\ld be f\nd :i* w\ld be equally or almo/ equally suitable4 ,nei!r ! am\nt nor ! k9d ( l& own$ by a railroad1 nor its legal privilege ( hold+ l& 9 a long1 cont9u\s /rip1 is ! effici5t cause ( a railway monopoly4 ,to attribute ! monopoly to l& is to conf\nd a condition ) a cause4 ,"o might z well say t ! l& und]ly+ ! :eat k+'s (fice is ! cause ( 8 corn] 9 :eat4 ,x is true t 9 a few ( ! great cities ! exi/+ railroads may1 ?r\gh _! own]%ip ( all ! suitable t]m9al sites1 prev5t ! entrance ( a compet+ l9e4 ,9 ! fir/ place1 su* in/ances are r>e2 9 ! second place1 ! fact t !re are sev]al roads already 9 exi/5ce %[s t competition 0 possible )\t ! entrance ( ano!r "o4 ,! influ5ce impell+ !m to =m a monopoly = ! regulation ( *>ges is n _! own]%ip ( t]m9al sites4 ,no sort ( uni=m action ) reg>d to t]m9als w\ld produce any su* effect4 ,! true s\rce ( ! monopoly elem5t 9 railways is inh]5t 9 ! indu/ry itself4 ,x is ! fact ( increas+ returns1 :i* means t ea* additional increm5t ( bus9ess is m pr(itable ?an ! prec$+ "o1 & t 9 mo/ cases ?is process c be kept up indef9itely4 ,z a consequ5ce1 ea* ( two or m railroads betwe5 two po9ts /rives to get all ! traffic2 !n foll[s unpr(itable rate cutt+1 & f9ally comb9ation4#ea ,! same =ces w\ld produce id5tical results if railroad tracks & t]m9als 7 susp5d$ 9 ! air4 ,dr4 ,h[e ass]ts t ! monopoli/ic "* ( su* public utility corporations z /reet railways & telephone companies is due to _! occupation ( fav\r$ sites4#eb ,h[ c ?is be true1 :5 x is possible to build a compet+ l9e on an adjo9+ & p>allel /reet8 ,if ! city =bids ?is1 & gives an exclusive fran*ise to "o company1 ?is legal ord9ance1 & n any exceptional advantage 9 ! nature ( ! l& occupi$1 is ! specific cause ( ! monopoly4 ,if ! city p]mits a compet+ l9e1 & if ! two l9es soon] or lat] ent] into a comb9ation1 ! true s\rce & explanation are to be f\nd 9 ! fact ( increas+ returns4 ,comb9ation is immeasurably m pr(itable ?an cut-?roat competition4 ,moreov]1 ! evils ( public s]vice monopolies c be rem$i$ ?r\gh public control ( *>ges & ?r\gh taxation4 ,nei!r 9 railroads nor 9 public utilities is l& an impell+ cause ( monopoly1 or a s]i\s h9drance to prop] regulation4 ,mo/ ( ,dr4 ,h[e's exagg]ations ( ! influ5ce ( l& ^u monopoly take ! =m ( sugge/ion r ?an ( specific & direct /atem5t4 ,:5 he attempts 9 precise language to enum]ate ! lead+ s\rces ( monopoly1 he m5tions f\r2 namely1 l&1 railways1 ! t>iff1 & public s]vice fran*ises4#ec ,nor is he able to prove 8 ass]tion t ( ^! ! mo/ important is l&4 ,nev]!less1 l& is "o ( ! =emo/ causes4 ,! mo/ prom95t examples ( l& monopoly 9 ?is c\ntry are ! an?racite coal m9es & ! iron ore b$s4 ,fully n9ety p] c5t4 ( our an?racite coal supply 7exclusive ( ,alaska7 is "u ! control ( eight railway sy/ems :i* 9 ?is matt] act z a unit4#ed ,accord+ to ,dr4 ,h[e1 ! excessive pr(its reap$ f ?is monopoli/ic control am\nt to betwe5 "o hundr$ & two hundr$ million doll>s annually4#ee ,9 o!r words1 ! consum]s ( an?racite coal mu/ pay e ye> t mu* m ?an !y w\ld h exp5d$ if ! supply _h n be5 monopolis$4 ,on ! o!r h&1 ! =mation ( monopoly w\ld h be5 mu* m difficult if ! railroads _h be5 legally =bidd5 to own coal m9es4 ,z ?+s /&1 railway monopoly is an important cause ( ! an?racite coal monopoly4 ,"s au?orities are ( ! op9ion t a simil> condition ( monopoly w ultimately prevail 9 ! bitum9\s coal m9es4 ,iron ore has be5 br\ght "u ! control ( ! ,unit$ ,/ates ,/eel ,corporation to su* an ext5t t ! ,commission] ( ,corporations writes3 ,inde$1 s f> z ! ,/eel ,corporation's position 9 ! entire iron & /eel indu/ry is ( a monopoli/ic "*1 x is *iefly ?r\gh its control ( ore hold+s & ! transportation ( ore4#ef ,f ?is /atem5t1 h[ev]1 x is evid5t t ! monopoly dep5ds ^u control ( transportation z well z ^u own]%ip ( ! ore b$s4 ,if ! =m] 7 prop]ly regulat$ by law1 ! latt] w\ld n be s effective 9 promot+ monopoly4 ,speak+ g5]ally1 we may say t :5 a great corporation controls a l>ge proportion ( ! raw mat]ial ent]+ into its manufactur$ products1 su* control w supplem5t & re9=ce v mat]ially ^? o!r special advantages :i* make = monopoly4#eg ,prom95t examples are to be f\nd 9 /eel1 natural gas1 petroleum1 & wat] p[]s4 ,9 8 ,report on ,wat] ,p[] ,developm5t 9 ! ,unit$ ,/ates1 ! ,commission] ( ,corporations 7,m>* #ad1 #aiab7 decl>$ t ! rapidly increas+ conc5tration ( control might easily become ! nucleus ( a monopoly ( bo? /eam & wat] p[]4 ,t5 great gr\ps ( int]e/s1 he said1 already dom9at$ ab\t sixty p] c5t4 ( ! develop$ wat] p[]1 & 7 pursu+ a policy *>act]is$ by a l>ge measure ( agreem5t4#eh ,z a r\gh g5]alisation1 x w\ld be fair to say t 9 "o or two in/ances1 at lea/1 l&[n]%ip is ! *ief basis1 & 9 sev]al o!r cases an important contributory cause ( monopoly4 ,ev5 an approximately accurate e/imate ( ! am\nt ( money :i* consum]s are compell$ to pay annually = ! products ( su* conc]ns ov] & above :at !y w\ld pay if ! raw mat]ial 7 n :olly or p>tially monopolis$1 is obvi\sly impossible4 ,x may possibly run into hundr$s ( millions ( doll>s4 ,excessive ,ga9s f ,private ,l&[n]%ip ,! second evil ( private l&[n]%ip to be consid]$ "h1 is ! g5]al fact t x enables "s m5 to take a l>g] %>e ( ! national product ?an is consi/5t ) ! welf>e ( _! neighb\rs & ( society z a :ole4 ,z 9 ! matt] ( monopoly1 h[ev]1 s "h1 ,s+le ,tax advocates are *>geable ) a c]ta9 am\nt ( ov]/atem5t4 ,!y cont5d t ! l&[n]'s %>e ( ! national product is con/antly increas+1 t r5t advances fa/] ?an int]e/ or wages1 nay1 t all ( ! annual increase 9 ! national product t5ds to be ga!r$ 9 by ! l&[n]1 :ile wages & int]e/ rema9 /ation>y1 if !y d n actually decl9e4#ei ,! %>e ( ! product receiv$ by any ( ! f\r ag5ts ( production dep5ds ^u ! relative sc>city ( ! correspond+ factor4 ,:5 und]tak+ ability becomes sc>ce 9 proportion to ! supply ( l&1 lab\r1 & capital1 !re is a rise 9 ! remun]ation ( ! bus9ess man2 :5 lab\r decreases relatively to und]tak+ ability1 l&1 & capital1 !re is an increase 9 wages4 ,simil> /atem5ts are true ( ! o!r two ag5ts & factors4 ,all ^! propositions are m]ely p>ticul> illu/rations ( ! g5]al rule t ! price ( any commodity is imm$iately gov]n$ by ! movem5t ( supply & dem&4 ,9 view ( ?is fact1 x is n impossible t r5t might increase to ! ext5t describ$ 9 ! prec$+ p>agraph4 ,all t is necess>y is t l& %\ld become suffici5tly sc>ce1 & ! o!r factors suffici5tly pl5tiful4 ,z a fact1 ! supply ( l& is /rictly limit$ by nature1 :ile ! o!r factors c & d increase4 ,!re are1 h[ev]1 sev]al =ces :i* neutralise or ret>d ! t5d5cy ( l& to become sc>ce1 & ( r5t to rise4 ,mod]n me?ods ( transportation1 ( dra9age1 & ( irrigation h greatly increas$ ! supply ( available l&1 & ( comm]cially pr(itable l&4 ,dur+ ! n9ete5? c5tury1 ! transcont95tal railroads ( ! ,unit$ ,/ates made s mu* ( our ,we/]n t]ritory accessible t ! value & r5t ( ,new ,engl& l&s actually decl9$2 & !re are /ill _m millions ( acres ?r\gh\t ! c\ntry :i* c be made productive ?r\gh dra9age & irrigation4 ,9 ! second place1 e increase ( :at is call$ ! int5sive use ( l& gives employm5t to lab\r & capital :i* o!rwise w\ld h to g ^u new l&4 ,9 ,am]ica ?is practice is only 9 its infancy4 ,) its inevitable gr[?1 bo? 9 agriculture & m9+1 ! dem& = additional l& w be *eck$1 & ! rise 9 l& values & r5ts be correspond+ly dim9i%$4 ,f9ally1 ! proportion ( capital & lab\r t is absorb$ 9 ! manufactur+1 f9i%+1 & di/ributive op]ations ( mod]n indu/ry is con/antly increas+4 ,^! processes call = v little l& 9 comp>ison ) t requir$ = ! extractive op]ations ( agriculture & m9+4 ,an increase ( "o-fif? 9 ! am\nt ( capital & lab\r occupi$ 9 gr[+ :eat or 9 tak+ out coal1 implies a mu* great] dem& = l& ?an ! same quantity employ$ 9 factories1 /ores1 & railroads4#fj ,z a consequ5ce ( ^! c\nt]act+ influ5ces1 x appe>s t ! %>e ( ! l&[n]s has n increas$ disproportionately4 ,! mo/ compreh5sive endeav\r yet made to det]m9e ! gr[? & relative size ( ! diff]5t %>es ( ! national product is embodi$ 9 ,pr(essor ,w4 ,i4 ,k+'s volume1 ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 publi%$ 9 #aiae4 ,x e/imates t ! total annual income ( ! nation increas$ f a little less ?an two & "o-f\r? billions ( doll>s 9 #ahej to a little m ?an ?irty & "o-half billions 9 #aiaj1 or slightly m ?an fifte5 times4 ,dur+ ! same p]iod r5t1 ! %>e ( ! l&[n]s1 advanc$ f #agj1fjj1jjj to #b1fgc1ijj1jjj1 or ab\t fifte5 & ?ree qu>t] times4 ,9 ! ye> #aiaj1 !re=e1 ! l&[n]s 7 receiv+ b a v small fraction m ( ! national product ?an _! pr$ecessors obta9$ sixty ye>s e>li]4#fa ,z to ! relative size ( ! %>es go+ to ! diff]5t factors 9 #aiaj1 ! figures are ev5 m rem>kable4 ,wages & sal>ies absorb$ #df4i p] c5t42 pr(its1 #bg4e p] c5t42 int]e/1 #af4h p] c5t42 & r5t1 only #h4h p] c5t4#fb ,?is 0 exactly ! same p] c5t4 t ! l&[n]s receiv$ 9 #ahfj4 ,to be sure1 ^! figures are only approximations1 b !y are probably ! mo/ reliable t c be obta9$ f our notori\sly incomplete /ati/ics1 & !y w des]ve respectful consid]ation until !y h be5 refut$ by specific criticism & argum5t4 ,9 ! op9ion ( _! compil]3 ,! figures = wages & sal>ies are believ$ to be fairly accurate2 ^? = r5t are ?\ght to h an error ( n m ?an tw5ty p] c5t4 ,! sep>ation ( ! %>e ( capital f t ( ! entrepr5eur is v crudely done & no /ress %\ld be laid on ! results4 ,! total = all %>es is ?\ght to be m accurate ?an ! mode ( di/ribution1 & = ! la/ ?ree c5sus ye>s %\ld come )9 t5 p] c5t4 ( ! correct /atem5t ( ! national income4 ,= e>li] ye>s ! error %\ld n be ov] tw5ty p] c5t4 at ! outside4#fc ,if we make ! maximum all[ance = error 9 ref]5ce to ! %>e ( ! l&[n]1 & assume t ! r5t e/imate is tw5ty p] c5t4 too l[1 we f9d t x 0 /ill only t5 & "o-half p] c5t4 ( ! total product 9 #aiaj1 :i* repres5ts an increase ( less ?an ?ree p] c5t4 s9ce #ahej4 ,x is significant t ,dr4 ,h[e1 :o has no bias t[>d belittl+ ! %>e ( ! l&[n]1 sugge/$ z 8 m9imum & maximum e/imates ( ! l& values ( ! c\ntry 9 #aiaj figures :i* are respectively fifty p] c5t4 bel[ & only five p] c5t4 above ! am\nt tak5 by ,pr(essor ,k+ z ! basis = 8 e/imate ( r5t4#fd ,!re is1 consequ5tly1 a /rong presumption t ,pr(essor ,k+ is "r :5 he /igmatises z absurd ! cont5tion ( ! ,s+le ,tax]1 t all ! improvem5ts ( indu/ry result only 9 ! enri*m5t ( ! l&lord4444 ,! value ( our products has increas$ s9ce #ahej to ! ext5t ( "s tw5ty-eight billions ( doll>s1 :ile r5t has ga9$ less ?an ?ree billions4 ,evid5tly x has captur$ b a meagre "p ( ! new production4#fe ,!re are /rong indications1 h[ev]1 t ! p] c5t4 ( ! product go+ to ! own]s ( l& has increas$ consid]ably 9 ! la/ tw5ty ye>s1 & t ?is movem5t w cont9ue indef9itely4 ,accord+ to ,pr(essor ,k+'s calculations1 ! p] c5t4 ( ! total product assignable z r5t advanc$ f #g4h 9 #aijj to #h4h 9 #aiaj1 :i* meant t dur+ t p]iod ! national income increas$ only #gj p] c5t41 :ile ! %>e ( ! l&[n] increas$ #ia p] c5t4#ff ,x is true t a disproportionate advance 9 r5t has occurr$ betwe5 o!r c5sus ye>s1 only to be neutralis$ by subsequ5t decreases2 b ! pres5t in/ance seems to include c]ta9 features :i* did n *>act]ise any ( ! =m] ga9s 9 ! relative %>e ( ! l&[n]4 ,s9ce #ahif ! prices ( food products rose mo/ rapidly 9 ! case ( meat1 dairy products1 & c]eals1 :i* 7 d]iv$ directly f ! l&4 ,! prices ( raw mat]ials %[ a l relation4 ,timb]1 gra91 & o!r raw mat]ials obta9$ directly f ! l& h ris5 rapidly 9 price1 :ile semi-manufactur$ articles h increas$ less rapidly1 or h decreas$ 9 price4444 ,!re is no p>allel 9 any o!r field to ! advance 9 ^? l& values ^u :i* civilisation mo/ directly dep5ds--timb] l&s1 f]tile agricultural l&1 & l& 9 l>ge comm]cial & indu/rial c5tres4 ,! rec5t rise 9 l& values has be5 little %ort ( revolution>y4#fg ,betwe5 #aijj & #aiaj ! value ( f>m l&s p] acre 9 ! ,unit$ ,/ates advanc$ #ajh4a p] c5t4#fh ,dur+ ! eight ye>s beg9n+ ) ,july #a1 #aijf1 ! value ( l& 9 ,great] ,new ,york increas$ some?+ m ?an "o-?ird2 9 ! pr9cipal cities ( ,new ,j]sey1 & 9 ,worce/]1 ,wa%+ton1 ,bo/on1 & ,buffalo1 some:at less2 9 ,spr+field & ,holyoke1 consid]ably m4 ,9 ! mo/ rec5t t5 ye>s = :i* figures are available 7s9ce #aijj 9 e case7 ! l& values ( ,milwaukee1 ,/4 ,l\is & ,san ,francisco av]ag$ only a slight degree ( expansion1 :ile ^? ( ,kansas ,city d\bl$1 & ^? ( ,h\/on1 ,dallas1 ,los ,angeles1 & ,seattle trebl$4 ,to quote ,pr(essor ,ne>+1 f ^: compilations ^! e/imates h be5 summ>is$3 ,! total ext5t ( ! increase 9 ,am]ican city l& values may be h9t$ at r ?an /at$ ) any c]ta9ty4 ,! scatt]+ in/ances 9 :i* l& & improvem5ts are sep>ately assess$ l$ to ! conclusion t 9 a l>ge1 well-e/abli%$ city1 gr[+ at approximately ! same rate z ! o!r portions ( ! ,unit$ ,/ates1 ! l& value is d\bl+ 9 f t5 to tw5ty-five ye>s4 ,9 ! new1 rapidly gr[+ city ( ! middle & f> ,we/ & 9 "s ( ! small] cities ( ! ,ea/1 ! ratio ( increase 9 l& values is f> great]1 am\nt+ to two-fold or ev5 ?ree-fold 9 a decade4 ,9 a few in/ances ! rate ( increase is mu* small]1 & 9 "o case1 ,j]sey ,city1 l& values ov] a p]iod ( sev5 ye>s h actually decreas$4444 ,nev]!less1 ! few available long range figures indicate a widespread & consid]able increase 9 ,am]ican city l& values4#fi ,! rise 9 ! value ( timb] l&s dur+ ! la/ ?irty ye>s has be51 9 ! words ( ! f$]al inve/igators1 enorm\s4 ,= ! t5-ye> p]iod end+ 9 #aijh1 ! value ( a giv5 piece ( s\!rn p9e tak5 at r&om is likely to h increas$ 9 any ratio f ?ree-fold to t5-fold4 ,ab\t ! same ratio ( increase obta9$ 9 ! ,pacific ,nor?we/1 & a some:at small] increase 9 ! region ( ! ,great ,lakes4#gj ,:ile a consid]able decl9e has tak5 place s9ce #aijh1 x is only tempor>y2 = ! dem& = timb] is notori\sly increas+ sev]al times z fa/ z ! supply4 ,t ?is upw>d movem5t 9 ! value ( all ?ree k9ds ( l& w cont9ue )\t s]i\s int]ruption1 seems to be z ne>ly c]ta9 z any economic proposition t is dep5d5t ^u ! future4 ,al?\gh millions ( acres ( arable l&s are /ill unoccupi$ 9 ! ,unit$ ,/ates & ,canada1 ! f> great] "p ( !m require a comp>atively l>ge initial outlay = dra9+1 cle>+1 irrigation1 etc41 9 ord] to become productive4 ,h5ce !re is no likelihood t !y c be br\ght "u cultivation fa/ en\gh to halt or greatly ret>d ! advanc+ values :i* foll[ ^u ! gr[? ( population & ! increas$ dem& = agricultural products4 ,9 all probability ! great] "p ( !m w n come into use until ! prices ( f>m products h ris5 above ! pres5t level4 ,obvi\sly ?is supposes an increase 9 ! value ( all f>m l&1 old & new4 ,nor is ! adoption ( bett] me?ods ( f>m+ likely to *eck s]i\sly ! upw>d movem5t4 ,betwe5 #aijj & #aiaj ! urban population ( ,am]ica increas$ #cd4h p] c5t41 z aga9/ a ga9 ( only #ba p] c5t4 9 ! total population4 ,?is disproportionate gr[? 9 ! numb] ( ! city dwell]s w if cont9u$ make c]ta9 :at is 9 any case extremely probable1 a /eady & consid]able advance 9 urban l& values & r5ts4 ,! circum/ance t ^! rem>kable increases 9 l& values are a comp>atively rec5t ph5om5on has prev5t$ !m f receiv+ ! att5tion t !y des]ve1 ei!r f ! g5]al public or f ! /ud5ts ( economic & social problems4 ,! total value ( ! l& ( ! c\ntry has increas$ /eadily f decade to decade1 b s has ! total value ( capital1 & ev5 betwe5 #aijj & #aiaj ! increase 9 ! %>e ( ! capitali/ 0 exactly equal to ! increase 9 ! %>e ( ! l&[n]1 t is1 #ia p] c5t4#ga ,^? p]sons :o complac5tly make su* comp>isons ov]look ! new & significant feature ( ! m rec5t advances 9 l& value2 namely1 t !y are due 9 only a slight degree to an expansion ( ! area ( l& "u consid]ation4 ,! increases ( value quot$ 9 ! =ego+ p>agraphs are increases p] acre & p] urban lot1 n increases d]iv$ f br++ new l& "u cultivation or new tracts )9 municipal limits4 ,on ! o!r h&1 ! increases 9 ! value ( capital1 n[ z always1 repres5t = ! mo/ "p concrete additions to ! exi/+ /ock ( productive in/rum5ts4 ,except :]e monopoly holds sway1 p>ticul> capital in/rum5ts1 unlike p>ticul> pieces ( l&1 d n increase 9 value4 ,h5ce ! own] ( a giv5 am\nt ( capital does n pr(it by ! advance 9 ! total value ( capital z ! own] ( ! av]age p>cel ( l& pr(its by ! g5]al increase 9 ! value ( l&4 ,?is means t all ^? consum]s ( products :o are n l&[n]s mu/ pay an increas+ tribute to ^? :o are l&$ proprietors4 ,s mu* = ! proportion ( ! national product :i* goes to ! l&[n+ class4 ,let u next inquire h[ ! l&[n]'s %>e1 or r5t1 is di/ribut$ ?r\gh\t ! population4 ,if x 7 equally divid$ among all p]sons1 its increase relatively to ! %>es ( ! o!r factors w\ld1 f ! social viewpo9t1 be a matt] ( consid]able indiff]5ce4 ,on ! o!r h&1 if x is secur$ by a m9ority ( ! population1 & if t m9ority t5ds to become small] z ! %>e itself becomes l>g]1 we h a socially undesirable condition4 ,9 ! tw5ty ye>s betwe5 #ahij & #aiaj1 ! proportion ( f>m families 9 ! ,unit$ ,/ates own+ f>m l&1 mortgag$ or unmortgag$1 decl9$ f #fe4i p] c5t4 to #fb4h p] c5t42 ! proportion ( urban families own+ _! homes1 encumb]$ or un5cumb]$1 increas$ f #cf4i to #ch4d p] c5t41 & ! proportion ( all families own+ homes1 encumb]$ or un5cumb]$1 fell f #dg4h to #de4h p] c5t4 ,( ! homes own$ by _! occupi]s1 #bh p] c5t4 7 mortgag$ 9 #ahij1 & #cb4h p] c5t4 9 #aiaj4gb ,:ile a decl9e ( two p] c5t4 9 ! home own+ & l&[n+ families 9 tw5ty ye>s1 & an increase ( almo/ five p] c5t4 9 ! numb] ( ^? families :o hold _! prop]ty subject to encumbrance1 may n seem v s]i\s 9 !mselves1 !y indicate a def9itely unheal?y tr5d4 ,n only are ! l&[n+ families 9 a m9ority1 b ! m9ority is becom+ small]4 ,nev]!less1 :5 we consid] ! am\nt ( ga9s accru+ to ! av]age memb] ( ! l&[n+ class1 we d n f9d t x is unreasonably l>ge4 ,! great majority ( l&$ proprietors h n receiv$1 nor are !y likely to receive1 f _! hold+s incomes suffici5tly l>ge to be call$ excessive %>es ( ! national product4 ,_! gross returns f l& h n exce$$ ! equival5t ( fair int]e/ on _! actual inve/m5t1 & fair wages = _! lab\r4 ,! l&[n]s :o h be5 enabl$ ?r\gh _! hold+s to rise above ! level ( mod]ate liv+ con/itute a comp>atively small m9ority4 ,& ^! /atem5ts are true ( bo? agricultural & urban proprietors4 ,x is true t a consid]able numb] ( p]sons1 absolutely speak+1 h amass$ great weal? out ( l&4 ,x is a well kn[n fact t l& 0 ! pr9cipal s\rce ( ! great m$ival & po/-m$ival =tunes1 d[n to ! end ( ! eighte5? c5tury4 ,! hi/orical f\ndation ( capitalism is r5t4#gc ,capitalism _h its beg9n+ 9 ! rev5ue f agricultural l&s1 city sites1 & m9es4 ,a conspicu\s example is t ( ! great ,fugg] family ( ! sixte5? c5tury1 ^: weal? 0 mo/ly d]iv$ f ! own]%ip & exploitation ( ri* m9]al l&s4#gd ,9 ! ,unit$ ,/ates v few l>ge =tunes h be5 obta9$ f agricultural l&1 b ! same is n true ( m9]al l&s1 timb] l&s1 or urban sites4 ,! gr[? ( cities has1 ?r\gh real e/ate speculation & increm5tal income1 made _m ( our millionaires4#ge ,z ) ! une>n$ income ( city l&1 our m9]al res\rces h be5 conspicu\sly prolific produc]s ( millionaires4#gf ,! mo/ /rik+ in/ance ( great weal? d]iv$ f urban l& is ! =tune ( ! ,a/or family4 ,:ile ga9s f trad+ v5tures =m$ ! beg9n+ ( ! ri*es ( ! orig9al ,a/or1 ,john ,jacob1 ^! 7 a comp>atively insignificant portion ( ! great =tune :i* he transmitt$ to 8 desc5dants4#gg ,at 8 dea?1 9 #ahdh1 ,john ,jacob ,a/or's real e/ate hold+s 9 ,new ,york ,city 7 valu$ at eighte5 or tw5ty million doll>s4 ,to-day ! ,a/or e/ate 9 t city is e/imat$ at betwe5 #dej & #ejj millions1 & )9 a qu>t] ( a c5tury w n improbably be wor? "o billion doll>s4#gh ,accord+ to an inve/igation made 9 #ahib by ! ,new ,york ,tribune1 #bf4d p] c5t4 ( ! millionaire =tunes ( ! ,unit$ ,/ates at t "t 7 traceable to l&[n]%ip1 :ile #da4e p] c5t4 7 d]iv$ f competitive indu/ries :i* 7 l>gely assi/$ by l& possessions4#gi ,! proportion ( su* =tunes t is due1 directly or indirectly1 9 :ole or 9 "p1 to l&[n]%ip has und\bt$ly increas$ consid]ably s9ce #ahib4 ,) reg>d to great individual or corporate l& hold+s1 !re exi/ no adequate /ati/ics4 ,a few conspicu\s in/ances may be cit$4 ,! ,unit$ ,/ates ,/eel ,corporation owns l&s yield+ iron ore1 coal1 coke1 & timb] :i* are valu$ by ! ,commission] ( ,corporations at ne>ly #bej million doll>s1 & by ! ,/eel ,corporation itself at m ?an #hjj million doll>s4#hj ,?ree companies own ne>ly elev5 p] c5t41 & #aie individuals or corporations own #dh p] c5t4 ( all ! privately own$ timb] 9 ! ,unit$ ,/ates4#ha ,! ,unit$ ,/ates ,c5sus ( #aiaj %[s t ! numb] ( f>ms conta9+ #ejj acres or ov] 0 ab\t #age1jjj1 & compris$ t5 p] c5t4 ( ! total f>m acreage4 ,"o hundr$ & fifty p]sons & corporations are said to own #bbj1jjj1jjj acres ( v>i\s k9ds ( l&4 ,none ( ^! hold]s has less ?an t5 ?\s& acres1 & two ( ! syndicates possess fifty million acres ea*4#hb ,exclusion f ! ,l& ,"o ( ! mo/ frequ5t *>ges br\ght aga9/ ! pres5t sy/em ( l& t5ure is t x keeps a l>ge proportion ( our natural res\rces out ( use4 ,x is cont5d$ t ?is evil appe>s 9 ?ree pr9cipal =ms3 own]s ( l>ge e/ates refuse to break up _! hold+s by sale2 _m proprietors are unwill+ to let ! use ( _! l& on reasonable t]ms2 & a great deal ( l& is held at speculative prices1 in/ead ( at economic prices4 ,s f> z ! ,unit$ ,/ates are conc]n$1 ! fir/ ( ^! *>ges does n seem to repres5t a condition t is at all g5]al4 ,al?\gh _m hold]s ( l>ge m9]al & timb] tracts seem to be 9 no hurry to sell portions ( _! hold+s1 !y are probably mov$ by a desire to obta9 high] prices r ?an to cont9ue z l>ge l&[n]s4 ,z a rule1 ! great l&hold]s ( ,am]ica are )\t ^? s5tim5ts ( tradition1 local atta*m5t1 & social asc5d5cy :i* are s p[]ful 9 ma9ta9+ intact ! imm5se e/ates ( ,great ,brita94 ,on ! contr>y1 "o ( ! common facts ( to-day is ! p]si/5t ef=t c>ri$ on by railroads & o!r hold]s ( l>ge tracts to dispose ( _! l& to settl]s4 ,:ile ! price ask$ by ^! proprietors is frequ5tly high] ?an t :i* corresponds to ! pres5t productiv5ess ( ! l&1 x is g5]ally z l[ z t :i* is dem&$ by ! own]s ( small] p>cels4 ,to be sure1 ?is is "o way ( unreasonably h9d]+ access to ! l&1 b x falls prop]ly "u ! head ( ! ?ird *>ge enum]at$ above4 ,!re is no suffici5t evid5ce t ! l>ge l&hold]s are exceptional (f5d]s 9 refus+ to sell _! hold+s to actual settl]s4 ,! ass]tion t unus$ l& _c be r5t$ on reasonable t]ms is 9 ! ma9 unf\nd$1 s f> z x ref]s to l& :i* is desir$ = agriculture4 ,z a rule1 any man :o wi%es to cultivate a portion ( su* l& c fulfil 8 desire if he is will+ to pay a r5t t corresponds to its productiv5ess4 ,aft] all1 l&[n]s are nei!r fools nor fanatics3 :ile await+ a high] price ?an is n[ obta9able = _! l&1 !y w\ld pref] to get f x "s rev5ue r ?an none at all4 ,z a matt] ( fact1 almo/ all ! agricultural l& t is imm$iately available = r5t+1 is con/antly "u cultivation4 ,?is ref]s to l& t is already "u ! pl\gh1 & is provid$ ) build+s & o!r necess>y improvem5ts4 ,practically none ( ?is is out ( use4 ,new l& :i* is )\t build+s is n want$ by t5ants1 unless x is conv5i5t to _! resid5ces1 because !y d n desire to exp5d money = p]man5t improvem5ts ^u l& t !y d n own4 ,true1 ! pres5t own]s ( su* l& might erect build+s1 & !n let x to t5ants4 ,9 s f> z new l& might pr(itably be improv$ & cultivat$1 & 9 s f> z ! own]s are unwill+ or unable to provide ! improvem5ts1 ! pres5t sy/em does keep out ( use agricultural l& t c\ld be cultivat$ by t5ants4 ,m9]al & timb] l&s are sometimes )held f t5ants because ! own]s wi% to limit ! supply ( ! product1 or because !y fe> t a long-t]m lease w\ld prev5t !m f sell+ ! l& to ! be/ advantage4 ,z to urban sites1 ! cont5tion t we are n[ exam9+ is g5]ally true4 ,! practice ( leas+ l& to p]sons :o wi% to build !reon does n1 ) ! exception ( a v few cities1 obta9 9 ! ,unit$ ,/ates = o!r ?an v l>ge bus9ess /ructures4 ,z a rule1 x does n apply to sites = resid5ces4 ,! man :o wants a piece ( urban l& = a dwell+ or = a mod]ately siz$ bus9ess build+ _c obta9 x except by pur*ase4 ,_c ! l& be b\ght at a reasonable price8 ,?is br+s u to ! ?ird & mo/ s]i\s ( ! *>ges conc]n+ exclusion f ! l&4 ,s9ce ! value ( l& 9 mo/ cities is ris+1 & app>5tly w cont9ue to rise m or less /eadily1 ! price at :i* x is held & pur*asable is n ! economic price b a speculative price4 ,x is high] ?an ! capitalis$ value ( ! pres5t rev5ue or r5t4 ,= example3 if five p] c5t4 be ! prevail+ rate ( int]e/1 a piece ( l& :i* returns t rate on a capital ( "o ?\s& doll>s _c be b\ght = "o ?\s& doll>s4 ,! pur*as] is will+ to pay m because he hopes to sell x = a /ill high] price )9 a reasonable "t4 ,he kn[s t he _c imm$iately obta9 five p] c5t4 on ! am\nt 7say1 #a1bjj doll>s7 t he is ready to pay = ! l&1 b 8 valuation ( x is n det]m9$ m]ely by its pres5t income-produc+ p[]1 b by its anticipat$ rev5ue value & sell+ value4#hc ,! buy] w pay m = su* l& ?an = a h\se :i* yields ! same return2 = he kn[s t ! latt] w n1 & hopes t ! =m] w1 br+ a high] return & a high] price 9 ! future4 ,:]ev] ?is disc\nt+ ( ! future obta9s1 ! price ( l& is unreasonably high1 & access to vacant l& is unreasonably difficult4 ,?is condition und\bt$ly exi/s mo/ ( ! "t 9 ! great majority ( our l>g] cities4 ,m5 w n sell vacant l& at a price :i* w enable ! buy] to obta9 imm$iately a reasonable return on 8 inve/m5t4 ,!y dem& 9 addition a "p ( ! anticipat$ increase 9 value4 ,9 ! rural regions ?is evil appe>s to be small] & less g5]al4 ,! own]s ( unus$ or uneconomically us$ arable l& are m eag] to sell _! hold+s ?an ! av]age proprietor ( a vacant lot4 ,s f> z ?is sort ( l& is conc]n$1 x is probable t mo/ ( ! d5unciation ( l& speculators & l& monopoli/s ov]%oots ! m>k4 ,n ! high price at :i* unus$ arable l&s are held1 b ! great initial co/ ( dra9+1 cle>+1 or irrigat+ !m1 is ! ma9 reason :y !y are n pur*as$ by cultivators4 ,:ile no g5]al & precise e/imate c be giv5 ( ! ext5t to :i* ! speculative exce$s ! actual r5t-produc+ value ( l& 9 gr[+ cities1 tw5ty-five p] c5t4 w\ld n improbably be a fair conjecture4 ,ev5 :5 a reaction occurs aft] a p]iod ( excessive l&-boom+1 ! l[] prices d n br+ ! manless l& any ne>] to ! l&less m54 ,only ! few :o possess ready money or excell5t cr$it c take advantage ( su* a situation4 ,on ! :ole ! evil t we are n[ consid]+ is probably great] ?an any o!r connect$ ) ! private own]%ip ( l&4 ,all ! t5d5cies & =ces t h be5 describ$ 9 ! pres5t *apt] "u ! heads ( ,monopoly1 ,excessive ,ga9s1 & ,exclusion f ! ,l&1 are 9 "s degree real defects & abuses ( ! exi/+ sy/em ( l& t5ure4 ,mo/ ( !m d n seem to be suffici5tly und]/ood or appreciat$ by ! m ard5t def5d]s ( private own]%ip4 ,to recognise !m1 & to seek adequate correctives ( !m w\ld seem to be ! task ( bo? righte\sness & exp$i5cy4 ,9 ! next & f9al *apt] ( ?is ,section1 we %all consid] c]ta9 rem$ies t seem to be at once effective & j4 ,,footnotes3 #di ,report ( ! ,commission] ( ,corporations on ! ,petroleum ,indu/ry1 ,"p ,i1 p4 #h4 #ej ,p4 #ach4 #ea ,cf4 ,ely1 ,monopolies & ,tru/s1 pp4 #ei1 sq4 #eb ,p4 #acc4 #ec ,pp4 #fh1 #fi4 #ed ,f9al ,report ( ! ,u4 ,s4 ,indu/rial ,commission1 p4 #dfc2 ,bliss1 ,new ,encyclop$ia ( ,social ,re=m1 pp4 #bde1 #ggj2 ,van ,hise1 ,conc5tration & ,control1 pp4 #cb1 #cc4 #ee ,idem1 pp4 #df1 #dg2 cf4 ,f9al ,report ( ,indu/rial ,commission1 pp4 #dfc-dfe4 #ef ,report ( ! ,commission] ( ,corporations on ! ,/eel ,indu/ry1 ,"p ,i1 p4 #fj4 #eg ,cf4 ,hobson1 ,! ,indu/rial ,sy/em1 pp4 #aib-aig4 #eh ,pp4 #ae1 #af1 #bi-ca4 #ei ,cf4 ,progress & ,pov]ty1 books ,,iii & ,,iv4 #fj ,cf4 ,walk]1 ,l& & ,its ,r5t1 pp4 #afh-ahb1 ,bo/on1 #ahhc4 #fa ,page #aeh4 #fb ,page #afj4 #fc ,page #aeh2 footnote4 #fd ,privilege & ,democracy1 p4 #cjg4 #fe ,page #afj4 #ff ,op4 cit41 pages #afj1 #aeh4 #fg ,pr(essor ,ne>+ 9 ,! ,annals ( ! ,am]ican ,academy ( ,political & ,social ,sci5ce1 ,m>*1 #aiae4 #fh ,?irte5? ,c5sus1 ,bullet9 on ,f>ms & ,f>m ,prop]ty1 page #a4 #fi ,! ,public1 ,nov4 #bf1 #aiae4 ,= an acc\nt ( increases 9 ! pr9cipal ,european cities1 see ,camille-,husymans1 ,la plus-value immobilire dans les communes belges2 ,g&1 #aiji4 #gj ,report ( ! ,commission] ( ,corporations on ! ,lumb] ,indu/ry1 ,"p ,i1 pp4 #bad-baf4 #ga ,k+1 op4 cit41 p4 #aeh4 #gb ,?irte5? ,c5sus1 ,vol4 ,i1 p4 #abie4 #gc ,hobson1 ,! ,evolution ( ,mod]n ,capitalism1 p4 #d2 ,london1 #aijg4 #gd ,h>p]'s ,mon?ly ,magaz9e1 ,jan41 #aiaj4 #ge ,watk9s1 ,! ,gr[? ( ,l>ge ,=tunes1 p4 #ge2 ,n4 ,y41 #aijg4 #gf ,idem1 p4 #ic4 #gg ,y\ngman1 ,! ,economic ,causes ( ,great ,=tunes1 p4 #de2 ,n4 ,y41 #aiji4 #gh ,h[e1 op4 cit41 pp4 #abe1 #abf4 #gi ,cf4 ,commons1 ,! ,di/ribution ( ,weal?1 pp4 #beb1 #beg2 ,n4 ,y41 #ahic4 #hj ,report ( ! ,commission] ( ,corporations on ! ,/eel ,indu/ry1 ,"p ,i1 p4 #cad4 #ha ,summ>y ( ,report ( ! ,commission] ( ,corporations on ! ,lumb] ,indu/ry1 pp4 #c-h4 #hb ,f articles 9 ,! ,s+le ,tax ,review1 vol4 #i1 nos4 #e1 #f4 #hc ,9 a gr[+ city1 an advantage\s site w comm& a price m ?an 9 proportion to its pres5t r5t1 because x is expect$ t ! r5t w increase /ill fur!r z ! ye>s g on4 ,taussig1 ,pr9ciples ( ,economics1 ,,ii1 #ih2 ,n4 ,y41 #aiaa4 ,,*apt] ,,viii ,,me?ods ,,( ,,re=m+ ,,our ,,l& ,,sy/em ,9 economic & social discussion ! ^w re=m is commonly oppos$ to ! ^w revolution4 ,x implies modification r ?an abolition1 gradual r ?an viol5t *ange4 ,h5ce re=ms ( ! sy/em ( l& t5ure d n include su* radical proposals z ^? ( l& nationalisation or ! ,s+le ,tax4 ,on ! o!r h&1 "s ext5sion ( ,/ate own]%ip ( l&1 & "s increase 9 ! proportion ( taxes impos$ ^u l&1 may q prop]ly be plac$ "u ! head ( re=m1 inasmu* z !y are *anges 9 r ?an a de/ruction ( ! exi/+ sy/em4 ,9 g5]al1 ! re=m measures ne$$ are su* z w meet ! defects describ$ 9 ! la/ *apt]2 namely1 monopoly1 excessive ga9s1 & exclusion f ! l&4 ,obvi\sly !y c be provid$ only by legislation2 & !y may all be includ$ "u two heads1 own]%ip & taxation4 ,by f> ! great] "p ( ! m valuable l&s ( ! c\ntry are no long] "u ! own]%ip ( ! ,/ate4 ,urban l& is practically all 9 ! h&s ( private proprietors4 ,:ile _m millions ( acres ( l& suitable = agriculture are /ill "u public own]%ip1 almo/ all ( ?is area requires a consid]able outlay = irrigation1 cle>+1 & dra9+ be=e x c become productive4 ,=ty ye>s ago1 ?ree-f\r?s ( ! timb] n[ /&+ 0 public prop]ty2 at pres5t ab\t f\r-fif?s ( x is own$ by private p]sons or corporations4#hd ,! bulk ( our m9]al deposits1 coal1 copp]1 gold1 silv]1 etc41 h likewise fall5 "u private own]%ip1 ) ! exception ( ^? ( ,alaska4 ,! undevelop$ wat] p[] rema9+ "u gov]nm5t own]%ip has be5 r\ghly e/imat$ at f\rte5 million horse p[] 9 ! national =e/s1 & consid]ably less ?an t am\nt 9 o!r p>ts ( ! public doma94#he ,?is is a gratify+ proportion ( ! :ole supply1 develop$ & undevelop$1 ( ?is national res\rce1 :i* is said to be some:]e betwe5 #bg & #fj millions horse p[]4#hf ,only ab\t sev5 million horse p[] has yet be5 develop$1 almo/ all ( :i* is privately own$4 ,! ,leas+ ,sy/em ,9 _m c\ntries ( ,europe x has long be5 ! policy ( gov]nm5ts to reta9 own]%ip ( all l&s conta9+ timb]1 m9]als1 oil1 natural gas1 phosphate1 & wat] p[]4 ,! products ( ^! l&s are extract$ & put ^u ! m>ket ?r\gh a leas+ sy/em4 ,t is2 ! us] ( ! l& pays to ! ,/ate a r5tal accord+ to ! am\nt & quality ( raw mat]ial :i* he takes f ! /oreh\se ( nature4 ,!oretically1 ! ,/ate c\ld sell su* l&s at prices t w\ld br+ 9 z mu* rev5ue z does ! leas+ sy/em2 practically1 ?is result has nev] be5 atta9$4 ,! pr9cipal advantages ( ! leas+ arrangem5t are3 to prev5t ! premature de/ruction ( =e/s1 ! private monopolisation ( limit$ natural res\rces 7:i* has happ5$ 9 ! case ( ! an?racite coal fields ( ,p5nsylvania7 & ! private acquisition ( exceptionally valuable l& at ridicul\sly l[ prices2 & to enable ! ,/ate to secure j treatm5t = ! consum] & ! lab\r] by /ipulat+ t ! =m] %all obta9 ! product at fair prices1 & t ! latt] %all receive fair wages4 ,?is example %\ld be foll[$ by ! ,unit$ ,/ates4 ,all timb]1 m9]al1 gas1 oil1 & wat] p[] l&s :i* h n be5 ali5at$ to private p]sons %\ld rema9 "u gov]nm5t own]%ip1 & be br\ght into use ?r\gh a leas+ arrangem5t :i* w\ld enable ! private op]ators to obta9 ! rates ( pr(it & int]e/ :i* are ord9>ily yield$ by ent]prises subject to ! same degree ( risk4 ,happily ?is policy n[ seems likely to be adopt$4 ,9 #aiac a law 0 pass$ by ! ,unit$ ,/ates provid+ = ! op]ation ( ! coal m9es ( ,alaska on leases4 ,! am\nt t c be leas$ by any p]son or corporation is limit$ to #befj acres1 & ! p5alty = attempt+ to monopolise ! product is =feiture ( t5ure4 ,! ,secret>y ( ! ,int]ior has urg$ a simil> arrangem5t = ! developm5t & extraction ( wat] p[]1 coal1 oil1 gas1 phosphate1 sodium1 & potassium on ! public doma9 ( ,cont95tal ,unit$ ,/ates1 & 8 recomm5dation w probably be adopt$ by ,congress4 ,?us ! r5t ( ^! l&s w g to ! :ole p in/ead ( to a comp>atively small numb] ( individuals1 monopoly ( ! products w be made impossible1 & our rema9+ public res\rces w be protect$ f rapid & ru9\s exploitation4 ,to ! objection t capitali/s w n inve/ _! money 9 nor c>ry on extractive ent]prises on a leas+ basis1 ! suffici5t answ] is t !y are do+ x n[4 ,9 #aiji1 #bd4e p] c5t4 ( all ! l&s produc+ m9]als1 preci\s metals1 & /one2 #id4f p] c5t4 ( ! l&s produc+ petroleum & gas2 & #fa4b p] c5t4 ( ! two gr\ps ( l&s comb9$1 7 op]at$ "u leases f private own]s or f ! gov]nm5t4#hg ,if ! r5tal or royalty dem&$ is n unreasonably high capitali/s w be q z will+ to produce raw mat]ials ( ^! k9ds f leas$ l& z !y are to manufacture or sell goods 9 a r5t$ build+4 ,n ! leas+ sy/em1 b ! t]ms ( ! p>ticul> lease are ! important consid]ation4 ,public graz+ l&s %\ld rema9 gov]nm5t prop]ty until su* "t z !y become available = agriculture4 ,cattle own]s c\ld lease ! l& f ! ,/ate on equitable t]ms1 & receive ample protection = money inve/$ 9 improvem5ts4 ,public ,agricultural ,l&s ,! leas+ sy/em _c well be appli$ to agricultural l&s4 ,9 ord] t !y may be cont9u\sly improv$ & protect$ aga9/ det]ioration1 !y mu/ be own$ by ! cultivators4 ,! temptation to we> out a piece ( l& quickly1 & !n move to ano!r piece1 & all ! o!r ob/acles t /& 9 ! way ( ! ,s+le ,tax z appli$ to agricultural l&1 %[ t ! gov]nm5t _c ) advantage assume ! function ( l&lord 9 ?is doma94 ,9 ! great majority ( cases ! ,/ate w\ld d bett] to sell ! l& 9 small p>cels to g5u9e settl]s4 ,!re are1 inde$1 _m situations1 especially 9 connection ) gov]nm5t projects ( irrigation1 cle>+1 & dra9age1 9 :i* ! leas+ arrangem5t c\ld be adopt$ tempor>ily4 ,x %\ld n be cont9u$ long] ?an is necess>y to enable ! t5ants to become own]s4 ,) ?is end 9 view ! ,/ate %\ld make loans to cultivators at mod]ate rates ( int]e/1 z is done 9 ,new ,zeal& & ,au/ralia4 ,:e!r ! ,/ate ought to pur*ase undevelop$ l& f private own]s 9 ord] to sell x to settl]s1 may well be d\bt$4 ,! only l&s to :i* su* a s*eme w\ld be at all applicable are l>ge e/ates :i* are held out ( use by _! proprietors4 ,ev5 "h ! transf] ( ! l& to cultivators c\ld be accompli%$ indirectly1 ?r\gh an extra heavy tax4 ,?is me?od has be5 adopt$ ) success by ,au/ralia & ,new ,zeal&4 ,! only o!r action by ! ,/ate t seems necess>y or wise 9 ord] to place settl]s ^u privately own$ agricultural l&1 is ! e/abli%m5t ( a compreh5sive sy/em ( rural cr$its4 ,! ne$ ( *eap] food products1 & ! desirability ( *eck+ ! abnormal gr[? ( our urban populations1 are p[]ful additional reasons = ! adoption ( ?is policy4 ,! ,hollis ,rural ,cr$its ,bill rec5tly enact$ into law by ,congress goes a consid]able way t[>d meet+ ^! ne$s4 ,public ,own]%ip ( ,urban ,l& ,no city %\ld "p ) ! own]%ip ( any l& t x n[ possesses4 ,s9ce capitali/s are will+ to erect co/ly build+s on sites leas$ f private own]s1 !re is no good reason :y any "o %\ld refuse to put up or pur*ase any sort ( /ructure on l& own$ by ! municipality4 ,! situation diff]s f t pres5t$ by agricultural l&2 = ! value ( ! l& c easily be di/+ui%$ f t ( improvem5ts1 ! own] ( ! latt] c sell !m ev5 if he is n ! own] ( ! l&1 & he _c be depriv$ ( !m )\t full comp5sation4 ,:ile ! lessee paid 8 annual r5t1 8 control ( ! l& w\ld be z complete & c]ta9 z t ( ! l&[n] :o cont9ues to pay 8 taxes4 ,on ! o!r h&1 ! leasehold] c\ld n p]mit or cause ! l& to det]iorate if he w\ld2 = ! nature ( ! l& r5d]s ?is impossible4 ,f9ally1 ! (ficial activities involv$ 9 ! collection ( ! r5t & ! p]iodical revaluation ( ! l&1 w\ld n diff] ess5tially f ^? n[ requir$ to make assessm5ts & ga!r taxes4 ,! b5efits ( ?is sy/em w\ld be great & manife/4 ,p]sons :o 7 unable to own a home because ( _! inability to pur*ase l&1 c\ld get secure possession ( ! necess>y l& ?r\gh a lease f ! city4 ,in/ead ( sp5d+ all _! lives 9 r5t$ h\ses1 ?\s&s ^u ?\s&s ( families c\ld become ! own]s & occupi]s ( homes4 ,! great] ! am\nt ( l& ?us own$ & leas$ by ! city1 ! less w\ld be ! p[] ( private own]s to hold l& = exorbitant prices4 ,competition ) ! city w\ld compel !m to sell ! l& at its rev5ue-produc+ value in/ead ( at its speculative value4 ,f9ally1 ! city w\ld obta9 ! b5efit ( e increase 9 ! value ( its l& by means ( p]iodical revaluation1 & p]iodical readju/m5t ( r5t4 ,un=tunately ! am\nt ( municipal l& available = su* an arrangem5t 9 our ,am]ican cities is negligible4 ,if !y are to e/abli% ! sy/em !y mu/ fir/ pur*ase ! l& f private own]s4 ,und\bt$ly ?is ought to be done by all l>ge cities 9 :i* ! h\s+ problem has become acute1 & ! value ( l& is con/antly ris+4 ,?is policy has be5 adopt$ ) happy results by _m ( ! municipalities ( ,france & ,g]many4#hh ,at ! /ate election ( #aiae ! vot]s ( ,massa*usetts adopt$ by an ov]:elm+ majority a con/itutional am5dm5t au?oris+ ! cities ( ! commonweal? to acquire l& = prospective home build]s4 ,9 ,savannah1 ,georgia1 no ext5sion ( ! municipal limits is made until ! l& to be embrac$ has pass$ into ! own]%ip ( ! city4 ,ano!r me?od is to refra9 f op5+ a new /reet 9 a suburban di/rict until ! city has become ! proprietor ( ! abutt+ l&4 ,:atev] be ! p>ticul> means adopt$1 ! objects ( municipal pur*ase & own]%ip ( l& are def9ite & obvi\s3 to *eck ! conge/ion ( population 9 ! great urban c5tres1 to provide homes = ! homeless1 & to secure = ! :ole community ! socially occasion$ increases 9 l& values4 ,inde$1 x is probable t no compreh5sive s*eme ( h\s+ re=m c be realis$ )\t a consid]able am\nt ( l& pur*ase by ! municipalities4 ,cities mu/ be 9 a position to provide sites = ^? home build]s :o _c obta9 l& on fair conditions f private proprietors4#hi ,turn+ n[ f ! direct me?od ( public own]%ip to ! indirect me?od ( re=m ?r\gh taxation1 we reject ! ?or\ghgo+ proposals ( ! ,s+le ,tax]s4 ,to appropriate all economic r5t = ! public treasury w\ld be to transf] all ! value ( l& )\t comp5sation f ! private own] to ! ,/ate4 ,= example3 a piece ( l& t br\ght to ! own] an annual rev5ue ( "o hundr$ doll>s w\ld be tax$ exactly t am\nt2 if ! prevail+ rate ( int]e/ 7 five p] c5t4 ! proprietor w\ld be depriv$ ( weal? to ! am\nt ( two ?\s& doll>s2 = ! value ( all productive goods is det]m9$ by ! rev5ue t !y yield1 & b5efits ! p]son :o receives ! rev5ue4 ,?us ! ,/ate w\ld become ! b5efici>y & ! virtual own] ( ! l&4 ,inasmu* z we d n admit t ! s-call$ social creation ( l& values gives ! ,/ate a moral "r to ^! values1 we mu/ reg>d ! complete appropriation ( economic r5t ?r\gh taxation z an act ( pure & simple confiscation4#ij ,appropriat+ ,future ,increases ( ,l& ,value ,let u exam9e1 !n1 ! mild] sugge/ion ( ,john ,/u>t ,mill1 t ! ,/ate %\ld impose a tax ^u l& suffici5t to absorb all future increases 9 its value4#ia ,?is s*eme is commonly kn[n z ! appropriation ( future une>n$ increm5t4 ,ei!r 9 :ole or 9 "p x is at lea/ plausible1 & is to-day )9 ! range ( practical discussion4 ,x is expect$ to obta9 = ! :ole community all future increases 9 l& values1 & to wipe out ! speculative1 z di/+ui%$ f ! rev5ue-produc+ value ( l&4 ,consequ5tly x w\ld make l& *eap] & m accessible ?an w\ld be ! case if ! pres5t sy/em ( l& taxation 7 cont9u$4 ,be=e discuss+ its moral "*1 let u see briefly :e!r ! ends t x seeks may prop]ly be s\ght by ! me?od ( taxation4 ,= ^! ends are ma9ly social r ?an fiscal4 ,to use ! tax+ p[] = a social purpose is nei!r unusual nor unreasonable4 ,all gov]nm5ts1 says ,pr(essor ,seligman1 h all[$ social consid]ations 9 ! wid] s5se to influ5ce _! rev5ue policy4 ,! :ole sy/em ( productive duties has be5 fram$ n m]ely ) ref]5ce to rev5ue consid]ations1 b 9 ord] to produce results :i* %\ld directly affect social & national prosp]ity4 ,taxes on luxuries h (t5 be5 m]e sumptu>y laws design$ z mu* to *eck consumption z to yield rev5ue4 ,excise taxes h z frequ5tly be5 levi$ f a wide social1 z f a n>r[ fiscal1 /&po9t4 ,f ! v beg9n+ ( all tax sy/ems ^! social reasons h (t5 be5 pres5t4#ib ,our ,f$]al taxes on imports1 on intoxicat+ liquors1 on oleo-m>g>9e1 & on :ite phosphorus mat*es1 & _m ( ! lic5se taxes 9 our municipalities1 z on p$l>s1 saloon keep]s1 & dog own]s1 are 9 l>ge "p int5d$ to meet social z well z fiscal ends4 ,!y are 9 ! int]e/ ( dome/ic production1 public heal?1 & public safety4 ,! reasonabl5ess ( effect+ social re=ms ?r\gh taxation _c be s]i\sly que/ion$4 ,:ile ! ma9t5ance ( gov]nm5t is ! prim>y object ( taxation1 its ultimate end1 ! ultimate end ( gov]nm5t itself1 is ! welf>e ( ! p4 ,n[ if ! public welf>e c be promot$ by c]ta9 social *anges1 & if ^! 9 turn c be effect$ ?r\gh taxation1 ?is use ( ! tax+ p[] w be q z normal & legitimate z ?\gh x 7 employ$ = ! upkeep ( gov]nm5t4 ,h5ce ! morality ( tax+ l& = purposes ( social re=m w dep5d entirely ^u ! nature ( ! p>ticul> tax t is impos$4 ,"s ,objections to ! ,increm5t ,tax ,! tax t we are n[ consid]+ c be condemn$ z unju/ on only two possible gr\nds3 fir/1 t x w\ld be injuri\s to society2 &1 second1 t x w\ld wrong ! private l&[n]4 ,if x 7 fairly adju/$ & effici5tly adm9i/]$ x c\ld n prove h>mful to ! community4 ,9 ! fir/ place1 l&[n]s c\ld n %ift ! tax to ! consum]4 ,all ! au?orities on ! subject admit t taxes on l& /ay :]e !y are put1 & are paid by ^? ^u :om !y are levi$ 9 ! fir/ in/ance4#ic ,! only way 9 :i* ! own]s ( a commodity c %ift a tax to ! us]s or consum]s ( x1 is by limit+ ! supply until ! price rises suffici5tly to cov] ! tax4 ,by ! simple device ( refus+ to erect m build+s until ^? 9 exi/5ce h become sc>ce en\gh to comm& an increase 9 r5t equival5t to ! new tax1 ! actual & prospective own]s ( build+s c pass ! tax on to ! t5ants !re(4 ,by refus+ to put _! money into1 say1 %oe factories1 inve/ors c limit ! supply ( %oes until any new tax on ?is commodity is %ift$ ^u ! we>]s ( %oes 9 ! =m ( high] prices4 ,until ^! rises take place 9 ! r5t ( build+s & ! price ( %oes1 inve/ors w put _! money into ent]prises :i* are n burd5$ ) equival5t taxes4 ,b no?+ ( ?is sort c foll[ ! imposition ( a new tax ^u l&4 ,! supply ( l& is fix$1 & _c be affect$ by any action ( l&[n]s or w\ld-be l&[n]s4 ,! us]s ( l& & ! consum]s ( its products are at pres5t pay+ all t competition c compel !m to pay4 ,!y w\ld n pay m m]ely because !y 7 reque/$ to d s by l&[n]s :o 7 lab\r+ "u ! burd5 ( a new tax4 ,if all l&[n]s 7 to c>ry out an agreem5t to refra9 f produc+1 & to )hold _! l& f o!rs until r5ts & prices _h gone up suffici5tly to (fset ! tax1 !y c\ld1 inde$1 %ift ! latt] to ! r5t]s ( l& & ! consum]s ( its products4 ,su* a monopoly1 h[ev]1 is n )9 ! range ( practical a*ievem5t4 ,9 its abs5ce1 individual l&[n]s are n likely to )hold l& nor to discont9ue production 9 suffici5t numb]s to raise r5ts or prices4 ,inde$1 ! t5d5cy w be all ! o!r way2 = all l&[n]s1 includ+ ! proprietors ( l& n[ vacant1 w be anxi\s to put _! l& to ! be/ use 9 ord] to h ! means ( pay+ ! tax4 ,ow+ to ?is increas$ production1 & ! increas$ will+ness to sell & let l&1 r5ts & prices mu/ fall4 ,x is axiomatic t new taxes ^u l& always make x *eap] ?an x w\ld h be5 o!rwise1 & are b5eficial to ! community z aga9/ ! pres5t own]s4 ,9 ! second place1 ! tax 9 "q c\ld n injure ! community on acc\nt ( disc\rag+ inve/m5t 9 l&4 ,once m5 c\ld no long] hope to sell l& at an advance 9 price1 !y w\ld n seek x to ! ext5t t !y n[ d z a field ( inve/m5t4 ,= ! same reason _m ( ! pres5t own]s w\ld sell _! hold+s soon] ?an !y w\ld h sold !m if ! tax _h n be5 levi$4 ,f ! viewpo9t ( ! public ! outcome ( ?is situation w\ld be :olly good4 ,l& w\ld be *eap] & m easy ( access to all :o desir$ to buy or use x = ! sake ( production1 r ?an = ! sake ( speculation4 ,inve/m5ts 9 l& :i* h z _! ma9 object a rise 9 value are an injury r ?an a b5efit to ! community2 = !y d n increase ! products ( l&1 :ile !y d advance its price1 !reby keep+ x out ( use4 ,h5ce ! ,/ate %\ld disc\rage in/ead ( enc\rag+ m]e speculators 9 l&4 ,:e!r x is or is n b\ght & sold1 ! supply ( l& rema9s ! same4 ,! supreme int]e/ ( ! community is t x %\ld be put to use1 & made to supply ! wants ( ! p4 ,consequ5tly ! only l& inve/m5ts t help ! community are ^? t t5d to make ! l& productive4 ,"u a tax on future increases 9 value1 su* inve/m5ts w\ld increase = ! simple reason t l& w\ld be *eap] ?an x w\ld h be5 )\t ! tax4 ,m5 :o desir$ l& = ! sake ( its r5t or its product w\ld cont9ue z n[ to pay su* prices = x z w\ld enable !m to obta9 ! prevail+ rate ( int]e/ on _! inve/m5t aft] all *>ges1 includ+ taxes1 _h be5 paid4 ,m5 :o want$ to r5t l& w\ld cont9ue z n[ to get x at a r5tal t w\ld give !m ! usual return = _! capital & lab\r4 ,s mu* = ! effect ( ! tax ^u ! community4 ,w\ld x n1 h[ev]1 be unju/ to ! l&[n]s8 ,does n private own]%ip ( its v nature dem& t increases 9 ! value ( ! prop]ty %\ld g to ! own]s !re(8 ,res fructificat dom9o3 a ?+ fructifies to its own]2 & value-increases may be class$ z a k9d ( fruit4 ,9 ! fir/ place1 ?is =mula 0 orig9ally a dictum ( ! civil law m]ely1 ! law ( ! ,roman ,empire4 ,x 0 a legal r ?an an e?ical maxim4 ,:atev] validity x has 9 morals mu/ be e/abli%$ on moral gr\nds1 by moral argum5ts4 ,x _c =?) be assum$ to be morally s\nd on ! m]e au?ority ( legal usage4 ,9 ! second place1 x 0 = a long "t appli$ only to natural products1 to ! gra9 gr[n 9 a field1 to ! (fspr+ ( dome/ic animals4 ,x simply enunciat$ ! policy ( ! law to def5d ! own] ( ! l& 9 8 claim to su* fruits1 z aga9/ any outsid] :o %\ld attempt to set up an adv]se title ?r\gh m]e appropriation or possession4 ,?us f>1 ! =mula 0 evid5tly 9 con=mity ) reason & ju/ice4 ,lat] on x 0 ext5d$1 bo? by lawy]s & morali/s1 to cov] comm]cial fruits1 su* z1 r5t f l&s & h\ses1 & int]e/ f loans & inve/m5ts4 ,its validity 9 ?is field w be exam9$ 9 connection ) ! ju/ification ( int]e/4 ,m rec5tly ! maxim has receiv$ ! /ill wid] application :i* we are n[ consid]+4 ,obvi\sly increases 9 value are q a diff]5t ?+ f ! concrete fruit ( ! l&1 its natural product4 ,a "r to ! latt] does n necess>ily & =?) imply a "r to ! =m]4 ,9 ! ?ird place1 ! =mula 9 "q is n a self evid5t1 fundam5tal pr9ciple4 ,x is m]ely a summ>y conclusion drawn f ! consid]ation ( ! facts & pr9ciples ( social & indu/rial life4 ,consequ5tly its validity z appli$ to any p>ticul> situation w dep5d on ! correctness ( ^! premises1 & on ! s\ndness ( ! process by :i* x has be5 d$uc$4 ,! increm5t tax is sometimes oppos$ on ! gr\nd t x is new1 9 fact1 revolution>y4 ,9 "s degree ! *>ge is true1 b ! conditions :i* ! proposal is int5d$ to meet are likewise ( rec5t orig94 ,! case = ?is legislation re/s ma9ly on ! fact t1 = ! fir/ "t 9 ! _w's hi/ory1 l& values ev]y:]e %[ an unmi/akable t5d5cy to advance indef9itely4 ,?is means t ! l&[n+ m9ority w be 9 a position to reap unb\ght & cont9u\s b5efits at ! exp5se ( ! l&less majority4 ,?is new fact1 ) its v important significance = human welf>e1 may well require a new limitation on ! "r ( prop]ty 9 l&4 ,x is also object$ t to deprive m5 ( ! opportunity ( pr(it+ by *anges 9 ! value ( _! l& w\ld be an unfair discrim9ation aga9/ "o class ( proprietors4 ,b !re are good reasons = mak+ ! di/9ction4 ,except 9 ! case ( monopoly1 increases 9 ! value ( goods o!r ?an l& are almo/ always due to exp5ditures ( lab\r or money ^u ! goods !mselves4 ,! value increases t c be specifically trac$ to ext]nal & social influ5ces are int]mitt5t1 unc]ta91 & tempor>y4 ,h\ses1 furniture1 ma*9]y1 & e o!r important category ( artificial goods are p]i%able1 & decl9e /eadily 9 value4 ,l&1 h[ev]1 is sub/antially imp]i%able1 becomes /eadily sc>c] relatively to ! dem&1 & its value-increases are on ! :ole con/ant1 c]ta91 & p]man5t4 ,moreov]1 x is ! settl$ policy ( mo/ enlight5$ gov]nm5ts to appropriate or to prev5t all notable increases 9 ! value ( monopoli/ic goods1 ei!r ?r\gh special taxation or ?r\gh regulation ( prices & *>ges4 ,tak+ ! increm5t values ( l& is1 !re=e1 n s discrim9ative z x appe>s at fir/ glance4#id ,ano!r objection is t ! proposal w\ld violate ! canons ( j taxation1 s9ce x w\ld impose a specially heavy burd5 ^u "o =m ( prop]ty4 ,! g5]al doctr9e ( ju/ice 9 taxation :i* is held by sub/antially all economi/s to-day1 & :i* has be5 taught by ,ca?olic morali/s = c5turies1 is t kn[n z ! faculty !ory4#ie ,m5 %\ld be tax$ 9 proportion to _! ability to pay1 n 9 accordance ) ! b5efits t !y may be assum$ to receive f ! ,/ate4 ,& x is univ]sally recognis$ t ! prop] measure ( ability is n a man's total possessions1 productive & unproductive1 b 8 income1 8 annual rev5ue4 ,n[1 ! increm5t tax does seem to violate ! rule ( taxation accord+ to ability1 inasmu* z x w\ld take all ( "o species ( rev5ue1 :ile all o!r incomes & prop]ties pay only a c]ta9 p]c5tage4 ,all ! adh]5ts ( ! faculty !ory ma9ta91 h[ev]1 t x is subject to c]ta9 modifications4 ,incomes f int]e/1 r5t1 & socially occasion$ increases 9 ! value ( prop]ty %\ld be tax$ at a high] rate ?an incomes t repres5t exp5ditures ( lab\r2 = to give up a c]ta9 p] c5t4 ( ! =m] involves less sacrifice ?an to give up ! same p] c5t4 ( ! latt]4 ,!re=e1 increm5ts ( l&-value may be fairly tax$ at a high] rate ?an sal>ies1 p]sonal prop]ty1 or ev5 r5t & int]e/4 ,:51 h[ev]1 ! law absorbs ! :ole ( ! value increm5ts1 x seems to be some?+ m ?an a tax4 ,! ess5tial nature ( a tax is to take only a portion ( ! p>ticul> class ( income or prop]ty ^u :i* x is impos$4 ,! ne>e/ approa* to ! plan ( tak+ all future increases 9 l& value is to be f\nd 9 ! special assessm5ts t are levi$ 9 _m ,am]ican cities4 ,?us1 ! own]s ( urban lots are frequ5tly compell$ to defray ! entire co/ ( /reet improvem5ts on ! !ory t _! l& is !reby & to t ext5t increas$ 9 value4 ,9 su* cases ! contribution is levi$ n on ! basis ( ! faculty !ory1 b on t ( ! b5efit !ory2 t is1 ! own]s are requir$ to pay 9 proportion to b5efits receiv$4 ,all adh]5ts ( ! faculty !ory admit t ! b5efit !ory is ju/ifiably appli$ 9 situations ( ?is k9d4 ,x might be argu$ t ! latt] !ory c also be fairly appli$ to increm5ts ( l& value t are to arise 9 ! future4 ,9 bo? cases ! own] returns to ! ,/ate ! equival5t ( b5efits :i* h co/ him no?+4 ,!re is1 h[ev]1 a diff]5ce4 ,9 ! =m] case ! value increases are specifically due to exp5ditures made by ! ,/ate1 :ile 9 ! latt] !y are indirectly br\ght ab\t by ! g5]al activities ( ! community4 ,we d n admit ) ! ,s+le ,tax]s t ?is social production ( value increm5ts creates a "r !reto on ! "p ( ei!r ! community or ! civil body2 b ev5 if we did we %\ld be compell$ to admit t ! two situations are n exactly p>allel2 = ! social production ( increases 9 ! value ( l& involves no special exp5diture ( lab\r or money4 ,h5ce x is v que/ionable :e!r ! appropriation ( ! :ole ( ! future value increm5ts c be h>monis$ ) ! receiv$ conceptions & applications ( ! canons ( taxation4 ,! ,morality ( ! ,proposal ,h[ev]1 x is nei!r necess>y nor desirable to ju/ify ! proposal on ! m]e gr\nd ( taxation4 ,only 9 =m & adm9i/ration is x a tax2 prim>ily & 9 ess5ce x is a me?od ( di/ribution4 ,x resembles ! action by :i* ! ,/ate takes possession ( a newly discov]$ t]ritory by ! title ( fir/ occupancy4 ,! future increases ( l& value may be reg>d$ z a sort ( no man's prop]ty :i* ! ,/ate appropriates = ! b5efit ( ! community4 ,& ! morality ( ?is proce$+ mu/ be det]m9$ by ! same crit]ion t is appli$ to e o!r me?od or rule ( di/ribution2 namely1 social & individual consequ5ces4 ,no pr9ciple1 title1 or practice ( own]%ip1 nor any canon ( taxation1 has intr9sic or metaphysical value4 ,all are to be evaluat$ ) ref]5ce to human welf>e4 ,s9ce ! "r ( prop]ty is n an end 9 itself1 b only a means ( human welf>e1 its j pr]ogatives & limitations are det]m9$ by _! conduciv5ess to ! welf>e ( human be+s4 ,by human welf>e is meant n m]ely ! good ( society z a :ole1 b ! good ( all individuals & classes ( individuals4 ,= society is made up ( individuals1 all ( :om are ( equal wor? & importance1 & h equal claims to consid]ation 9 ! matt] ( livelihood1 mat]ial goods1 & prop]ty4 ,9 g5]al1 !n1 any me?od ( di/ribution1 any modification ( prop]ty rights1 any =m ( taxation1 is morally lawful :i* promotes ! int]e/s ( ! :ole community1 )\t caus+ undue inconv5i5ce to any individual4 ,:e!r a giv5 rule ( own]%ip or me?od ( di/ribution :i* is evid5tly conducive to ! public good is1 nev]!less1 unduly sev]e on a c]ta9 class ( individuals1 is a "q t is n always easily answ]$4 ,"s ( ! me?ods & practices appe>+ 9 hi/ory 7 cle>ly fair & j1 o!rs cle>ly unfair & unju/1 & /ill o!rs ( d\btful morality4 ,frequ5tly ! ,/ate has compell$ private p]sons to give up _! l& at a l[] price ?an !y paid = x2 9 m ?an "o c\ntry freeboot]s & k+ly fav\rites robb$ ! p ( ! l&1 yet _! heirs & successors are recognis$ by bo? morali/s & /atesm5 z ! legitimate own]s ( t l&2 9 ,irel& /ubborn l&lords are to-day compell$ by ! ,briti% gov]nm5t to sell _! hold+s to ! t5ants at an apprais$ valuation2 9 _m c\ntries m5 may become own]s ( _! neighb\rs' l&s by ! title ( prescription1 )\t ! paym5t ( a c5t ( comp5sation4 ,all ^! practices & titles inflict consid]able h>d%ip ^u individuals1 b mo/ ( !m are held to be ju/ifi$ on gr\nds ( social welf>e4 ,n[ ! public appropriation ( all future increm5ts ( l& value w\ld evid5tly be b5eficial to ! community z a :ole4 ,x w\ld enable all ! p to pr(it by ga9s t n[ g to a m9ority1 & x w\ld enable ! l&less majority to acquire l& m easily & m *eaply4 ,we h 9 m9d1 ( c\rse1 only ^? value increases t are n due to improvem5ts 9 or on ! l&1 & we assume t ^! c\ld be di/+ui%$ 9 practice f ! increm5ts ( value t repres5t improvem5ts4 ,w\ld ! measure 9 "q inflict undue h>d%ip ^u individuals8 ,"h we mu/ make a di/9ction betwe5 ^? p]sons :o own l& at ! "t t1 & ^? :o buy l& aft]1 ! law is enact$4 ,! only inconv5i5ce fall+ ^u ! latt] class w\ld be deprivation ( ! p[] to obta9 future increases 9 value4 ,! law w\ld n cause ! value ( ! l& to decl9e bel[ _! pur*ase price4 ,o!r =ces might1 inde$1 br+ ab\t su* a result2 b1 z a rule1 su* depreciation w\ld be relatively insignificant1 = ! simple reason t x w\ld already h be5 disc\nt$ 9 ! r$uction ( value :i* foll[$ ! law at ! outset4 ,! v k t !y c\ld n hope to pr(it by future increases 9 ! value ( ! l& w\ld impel pur*as]s to l[] _! price accord+ly4 ,:ile tak+ away ! possibility ( ga9+1 ! law enables ! buy]s to take ! ord9>y precautions aga9/ los+4 ,!re=e1 x does n1 z sometimes object$1 less5 ! s call$ gambl]'s *ances4 ,on ! o!r h&1 ! tax does n deprive ! own]s ( any value t !y may add to ! l& ?r\gh ! exp5diture ( lab\r or money1 nor 9 any way disc\rage productive ef=t4 ,n[ x is1 z a rule1 bett] = individuals z well z = society t m5's incomes %\ld repres5t lab\r1 exp5diture1 & sav+ in/ead ( be+ ! result ( w9dfalls1 or o!r =tuit\s & conjunctural circum/ances4 ,& ! p[] to take future value increm5ts is n an intr9sically ess5tial elem5t ( private prop]ty 9 l&4 ,l e o!r condition ( own]%ip1 its morality is det]m9$ by its effects ^u human welf>e4 ,b we h se5 9 ! la/ p>agraph t human welf>e 9 ! s5se ( ! social good is bett] promot$ by a sy/em ( l&[n]%ip :i* does n include ?is elem5t2 & we h j %[n t su* a sy/em causes no undue h>d%ip to ! individual :o buys l& aft] its e/abli%m5t4 ,su* is ! answ] to ! cont5tion1 notic$ a few pages back1 t ! l&[n] has a "r to future increm5ts ( value because !y are a k9d ( fruit ( 8 prop]ty4 ,x is m reasonable t he %\ld n enjoy ?is p>ticul> & peculi> fruit4 ,7 ! increm5t tax introduc$ into a new community be=e any "o _h pur*as$ l&1 x w\ld cle>ly be a fair & valid limitation on ! "r ( own]%ip4 ,^? :o %\ld become own]s aft] ! regulation w5t into effect 9 an old community w\ld be 9 exactly ! same moral & economic position4 ,f9ally1 !re exi/s "s k9d ( legal prec$5t = ! proposal 9 ! pres5t policy ( effici5t gov]nm5ts ) reg>d to ! only important increases t occur 9 ! value ( goods o!r ?an l&2 namely1 increases due to ! possession ( monopoly p[]4 ,by v>i\s devices ^! are ei!r prev5t$ or appropriat$ by ! ,/ate4 ,^? p]sons :o are l&[n]s :5 ! increm5t tax goes into effect are 9 a v diff]5t situation f ^? t we h j be5 consid]+4 ,_m ( !m w\ld und\bt$ly suff] injury ?r\gh ! op]ation ( ! measure1 inasmu* z _! l& w\ld rea* & ma9ta9 a level ( value bel[ ! price t !y _h paid = x4 ,! imm$iate effect ( ! increm5t tax w\ld be a decl9e 9 ! value ( all l&1 caus$ by m5's increas$ desire to sell & decreas$ desire to buy4 ,9 all gr[+ communities a "p ( ! pres5t value ( l& is speculative2 t is1 x is due to dem& = ! l& by p]sons :o want x ma9ly to sell at an expect$ rise1 & also to ! dis9cl9ation ( pres5t own]s to sell until ?is expectation is realis$4 ,! practical result ( ! attitude ( ^! two classes ( p]sons is t ! dem& =1 & !re=e ! value ( l& is consid]ably enhanc$4 ,let a law be enact$ depriv+ !m ( all hope ( secur+ ! anticipat$ increases 9 value1 & ! "o gr\p w cease to buy1 :ile ! o!r w ha/5 to sell1 ?us caus+ a decl9e 9 dem& relatively to supply1 & !re=e a decl9e 9 value & price4 ,all p]sons :o _h paid m = _! l& ?an ! value :i* x came to h z a result ( ! increm5t tax law1 w\ld lose ! diff]5ce4 ,=1 no matt] h[ mu* ! l& might rise 9 value subsequ5tly1 ! increase w\ld all be tak5 by ! ,/ate4 ,& all own]s ( vacant l& ! value ( :i* aft] ! law 0 pass$ did n rema9 suffici5tly high to provide accumulat$ int]e/ on ! pur*ase price1 w\ld also lose accord+ly4 ,to be sure1 bo? ^! k9ds ( losses w\ld exi/ ev5 if ! law %\ld cause no decl9e 9 ! value ( l&1 b !y w\ld n be s great ei!r 9 numb] or 9 volume4 ,l&[n]s :o %\ld suff] ei!r ( ^! sorts ( losses w\ld h a valid moral claim aga9/ ! ,/ate = comp5sation4 ,?r\gh its sil5ce on ! subject ( increm5t-tax legislation1 ! ,/ate virtually promis$ !m at ! "t ( _! pur*ases t x w\ld n ?us int]f]e ) ! ord9>y c\rse ( values4 ,_h x giv5 any intimation t x w\ld enact su* a law at a future "t1 ^! p]sons w\ld n h paid z mu* = _! l& z !y actually did pay4 ,:5 ! ,/ate passes ! law1 x violates its implicit promise1 & consequ5tly is "u obligation to make good ! result+ losses4 ,is x n oblig$ to g fur!r1 & pay = ! positive ga9s t _m ( ! own]s w\ld h reap$ 9 ! abs5ce ( ! law8 ,= example3 a piece ( l& is wor? "o ?\s& doll>s ! day aft] ! tax goes into effect1 & t 0 exactly ! price paid = x by ! pres5t own]2 ano!r piece has ! same value1 b 0 b\ght by ! pres5t own] = eight hundr$ doll>s4 ,:ile nei!r ( ^! m5 suff] any loss on _! inve/m5ts1 !y are depriv$ ( possible ga9s2 = _h ! law n be5 enact$ _! hold+s w\ld be wor?1 say1 elev5 hundr$ doll>s4 ,nev]!less1 !y are no worse (f 9 ?is respect ?an ^? p]sons :o buy l& aft] ! increm5t tax goes into effect1 & h no great] claim to comp5sation = aboli%$ opportunities ( positive ga94 ,z we h se5 above1 ! c]ta9 advantages ( ! measure to ! community1 ! d\btful advantages to individuals ( pr(it+ by *anges 9 price :i* d n repres5t lab\r1 exp5se1 or sav+1 %[ t ! own]s h no /rict "r to comp5sation4 ,& x is /ill cle>] t no l&[n] has a valid claim on acc\nt ( value increases t w\ld h tak5 place subsequ5t to ! "t t ! measure 0 enact$4 ,!re is no way by :i* own]s :o w\ld h held _! l& long en\gh to pr(it by ^! increm5ts c be di/+ui%$ f own]s :o w\ld n h avail$ !mselves ( ?is conjectural opportunity1 nor any me?od by :i* ! am\nt ( su* ga9s c be det]m9$4 ,on ! o!r h&1 x might be object$ t1 9 reimburs+ all own]s :o suff] ! positive losses above describ$1 ! ,/ate is unduly g5]\s2 = if ! law _h n be5 enact$ _m ( ! reimburs$ p]sons w\ld h sold _! hold+s at a price insuffici5t to cov] _! losses4 ,b ^! _c be di/+ui%$ f ^? :o w\ld h sold at a remun]ative price4 ,h5ce ! ,/ate mu/ comp5sate all or none4 ,! =m] alt]native is n only ! m j all r\nd1 b 9 ! long run ! m exp$i5t4 ,9 view ( ! social b5efits ( ! increm5t tax1 especially ! removal ( _m ( ! inequities ( ! pres5t tax+ sy/em1 ! ,/ate might sometimes be ju/ifi$ 9 mak+ good only a "p ( ! losses t we h be5 discuss+4 ,b ?is c\ld probably occur only = adm9i/rative reasons1 su* z ! difficulty ( det]m9+ ! p]sons entitl$ to & ! am\nts ( comp5sation4 ,x w\ld n be ju/ifi$ m]ely to enable ! ,/ate to pr(it at ! exp5se ( individuals4 ,&1 9 any case1 !re seems to be no good reason :y ! unpaid losses %\ld am\nt to m ?an a small fraction ( ! :ole4 ,9 ! =ego+ pages we h be5 consid]+ a law :i* w\ld f ! beg9n+ ( its op]ation take all ! future increm5ts ( l& value4 ,!re is1 h[ev]1 no likelihood t any su* measure w soon be enact$ 9 any c\ntry1 lea/ ( all1 9 ! ,unit$ ,/ates4 ,:at we %all probably see is ! spread ( legislation design$ to take a "p1 & a gradual gr[+ "p1 ( value increases1 aft] ! example ( ,g]many & ,great ,brita94 ,let u glance at ! laws 9 =ce 9 ^! two c\ntries4 ,! ,g]man & ,briti% ,increm5t ,taxes ,! fir/ increm5t tax 7,w]?zuwa*s/eu]7 0 e/abli%$ 9 ! ye> #ahih 9 ! ,g]man colony ( ,kiauts*\1 ,*9a4 ,9 #aijd ! pr9ciple ( ! tax 0 adopt$ by ,frank=t-am-,ma91 & 9 #aije by ,cologne4 ,by ,april1 #aiaj1 x _h already be5 enact$ 9 #deg cities & t[ns ( ,g]many1 "s tw5ty ( :i* _h a population ( m ?an #ajj1jjj ea*1 9 #feb communes1 sev]al di/ricts1 "o pr9cipality1 & "o gr& du*y4 ,9 #aiaa x 0 ins]t$ 9 ! imp]ial fiscal sy/em1 & ?us ext5d$ ov] ! :ole ,g]man ,empire4 ,:ile ^! laws are all alike 9 c]ta9 ess5tials1 !y v>y greatly 9 details4 ,!y agree 9 tak+ only a p] c5t4 ( ! value increases1 & 9 impos+ a high] rate on ! m rapid increases4 ,! rates ( ! imp]ial law v>y f t5 p] c5t4 on increases ( t5 p] c5t4 or less to ?irty p] c5t4 on increases ( #bij p] c5t4 or ov]4 ,9 ,dortmund ! scale progresses f "o to #ab-a_/b p] c5t4 ,inasmu* z ! highe/ rate 9 ! imp]ial law is #cj p] c5t41 & 9 any municipal law 7,cologne & ,frank=t7 #be p] c5t42 inasmu* z all ! laws all[ d$uctions f ! tax to cov] ! int]e/ t 0 n obta9$ :ile ! l& 0 unproductive2 & inasmu* z only ^? increases are tax$ :i* are measur$ f ! value t ! l& _h :5 x came into ! possession ( ! pres5t own]1--x is cle> t l&[n]s are n oblig$ to und]go any positive loss1 & t !y are p]mitt$ to reta9 ! lion's %>e ( ! une>n$ increm5t4#if ,x is to be not$ t mo/ ( ! ,g]man laws are retroactive1 s9ce !y apply n m]ely to future value increases1 b to "s ( ^? t occurr$ be=e ! law 0 enact$4 ,?us1 ! ,hamburg ord9ance measures ! increases f ! la/ sale1 no matt] h[ long ago t transaction took place4 ,! imp]ial law uses ! same />t+ po9t1 except 9 cases :]e ! la/ sale occurr$ be=e #ahhe4 ,accord+ly1 a man :o _h 9 #ahhj paid #bejj m>ks = a piece ( l& :i* 9 #ahhe 0 wor? only #bjjj m>ks1 & :o sold x = #cjjj m>ks aft] ! law w5t into effect1 w\ld pay ! increm5t tax on #ajjj m>ks1--unless he c\ld prove t 8 pur*ase price 0 #bejj m>ks4 ,9 all su* cases ! burd5 ( pro( is on ! own] to %[ t ! value ( ! l& 9 #ahhe 0 l[] ?an :5 he _h b\ght x at ! e>li] date4 ,obvi\sly ?is retroactive feature ( ! ,g]man legislation inflicts no wrong on ! own]1 s9ce x does n t\* value increases t he has paid =4 ,inde$1 ! value ( ! l& :5 x came into ! pres5t own]'s possession seems to be a fair] & m easily asc]ta9$ basis f :i* to reckon increases ?an any date subsequ5t to ! enactm5t ( ! law4 ,on ! "o h&1 p]sons ^: l&s _h fall5 9 value dur+ _! own]%ip w\ld be automatically exclud$ f ! op]ation ( ! law until su* "t z ! acquisition value 0 aga9 rea*$2 on ! o!r h&1 ^? own]s ^: l&s _h increas$ 9 value be=e ! law w5t into effect w\ld be tax$ z well z ^? ^: ga9s began aft] t ev5t2 ?us ! law w\ld rea* a great] proportion ( ! exi/+ b5efici>ies ( une>n$ increm5t4 ,moreov]1 x w\ld br+ 9 a l>g] am\nt ( rev5ue4 ,! ,briti% law =m$ a "p ( ! fam\s ,lloyd-,george budget ( #aiji4 ,x taxes only ^? increm5ts t occur aft] its enactm5t4 ,^! are subject to a tax ( tw5ty p] c5t4 on ! occasion ( ! next transf] ( ! l&1 by sale1 beque/1 or o!rwise4#ig ,9 "s cases ?is arrangem5t w und\bt$ly cause h>d%ip4 ,= example3 if l& :i* 0 b\ght = #a1jjj p\nds 9 #aijj _h fall5 to #hjj p\nds 9 #aiji1 & 7 sold = #a1jjj p\nds 9 #aiae1 ! own] w\ld h to pay a tax ( tw5ty p] c5t4 on #bjj p\nds4 ,?is w\ld mean a net loss ( =ty p\nds1 to say no?+ ( ! loss ( int]e/ 9 case ! l& 0 unproductive4 ,x w\ld seem t "s comp5sation ought to be giv5 "h2 yet ! r>ity ( su* in/ances1 ! adm9i/rative difficulties1 & ! g5]al advantages ( ?is sort ( legislation q conceivably might =bid ! conclusion t ! own] 0 made to suff] c]ta9 inju/ice4 ,! comp5sat+ social advantages ( ! increm5t tax z well z ( o!r special taxes on l&1 w receive adequate discussion pres5tly4 ,transf]r+ ,o!r ,taxes to ,l& ,ano!r taxation plan = r$uc+ ! evils ( our l& sy/em consi/s 9 ! imposition ( special taxes on ! pres5t value ( l&4 ,z a rule1 ^! imply1 n an addition to ! total tax levy1 b a transf] ( taxes f o!r =ms ( prop]ty4 ,! usual practice is to beg9 by exempt+ ei!r p>tly or :olly build+s & o!r k9ds ( improvem5ts f taxation1 & !n to apply ! same measure to c]ta9 k9ds ( p]sonal prop]ty4 ,9 mo/ cases ! transf] ( su* taxes to l& is gradual1 ext5d+ ov] a p]iod ( five1 t51 or fifte5 ye>s4 ,! plan is 9 op]ation 9 ,canada & ,au/ralasia1 & to a slight ext5t 9 ! ,unit$ ,/ates4 ,x has receiv$ its greate/ developm5t 9 ! we/]n prov9ces ( ,canada2 namely1 ,briti% ,columbia1 ,alb]ta1 ,saskat*ewan1 & ,manitoba4 ,! cities ( ,edmonton1 ,m$ic9e ,hat1 & ,r$ ,de]2 ,vanc\v]1 ,victoria1 & ?irte5 o!rs ( ! ?irty-?ree cities ( ,briti% ,columbia2 all ! t[ns ( ,alb]ta except two2 all b "o ( ! villages ( ,alb]ta1 & "o-f\r? ( ^? 9 ,saskat*ewan2 all ! rural municipalities & local improvem5ts di/ricts 9 ,alb]ta1 ,manitoba1 & ,saskat*ewan1 & #bd ( ! #bh 9 ,briti% ,columbia1--exempt improvem5ts entirely f taxation4 ,! ?ree cities 9 ,alb]ta :i* reta9 "s taxes on improvem5ts2 all ! cities & t[ns & ?ree-f\r?s ( ! villages 9 ,saskat*ewan2 ! f\r l>ge/ cities 9 ,manitoba2 & a consid]able numb] ( ! municipalities 9 ,ont>io 7by ! device ( illegal "u-assessm5t 9 ?is in/ance71--tax improvem5ts at less ?an full value1 9 "s cases z l[ z fifte5 p] c5t4 ,l& is inv>iably assess$ at its full value4 ,x is to be obs]v$ t ^! special l& taxes provide only local rev5ues2 !y d n contribute any?+ to ! ma9t5ance ( ei!r ! prov9cial or ! dom9ion gov]nm5ts4 ,! reason :y ! local jurisdictions h adopt$ ^! taxes s mu* m ext5sively 9 ,alb]ta ?an 9 ! o!r prov9ces is to be f\nd 9 a prov9cial law enact$ 9 #aiab1 :i* requires all t[ns1 villages1 & rural areas to e/abli% )9 sev5 ye>s ! practice ( exempt+ f taxation p]sonal prop]ty & build+s4 ,saskat*ewan p]mits cities & t[ns to tax improvem5ts up to sixty p] c5t4 ( _! value1 :ile ,briti% ,columbia & ,manitoba leave ! matt] entirely 9 ! h&s ( ! local au?orities4 ,! prov9cial rev5ues are d]iv$ f _m s\rces1 *iefly real e/ate1 p]sonal prop]ty1 & incomes2 b ,briti% ,columbia1 ,saskat*ewan1 & ,alb]ta levy a special tax on unimprov$ & only slightly improv$ rural l&4 ,! rate ( ?is wild l&s tax is 9 ,briti% ,columbia f\r p] c5t41 & 9 ! o!r two prov9ces "o p] c5t4 ,"s ( ! municipalities ( ,briti% ,columbia & ,saskat*ewan also impose a wild l&s tax4 ,by a law pass$ 9 #aiac ,alb]ta levies a prov9cial tax ( five p] c5t4 on ! value increases ( non-agricultural l&s4 ,a movem5t = ! r$uction ( ! tax on build+s has develop$ consid]able /r5g? 9 ! ea/]n prov9ces ( ,ont>io1 ,nova ,scotia1 & ,new ,brunswick4#ih ,new ,zeal& & mo/ ( ! /ates ( ,au/ralia h = sev]al ye>s levi$ special taxes on l&1 consi/+ ma9ly ( g5]al rates on e/ates ( mod]ate size1 & a progressive sup] tax on l>ge e/ates4 ,! ,commonweal? ( ,au/ralia also imposes a tax ( "o p5ny 9 ! p\nd on ! value ( l&4 ,a consid]able proportion ( ! cities & t[ns 9 bo? ,new ,zeal& & ,au/ralia d]ive practically all _! rev5ues f l&1 exempt+ improvem5ts entirely4 ,9 bo? c\ntries1 h[ev]1 ! bulk ( ! total rev5ue is obta9$ f o!r s\rces ?an l& taxes4 ,9 ,new ,zeal& !y yield less ?an ?irte5 p] c5t4 ( ! national receipts4#ii ,pittsburgh & ,scranton 7 requir$ by a law enact$ 9 #aiac to r$uce ! local tax rate on build+s at su* a pace t 9 #aibe & !reaft] x w\ld be only "o-half ! highe/ rate on o!r =ms ( prop]ty4 ,ev]ett1 ,wa%41 & ,pueblo1 ,col41 )9 rec5t ye>s adopt$ by popul> vote m sweep+ measures ( ! same "*1 b ! ,ev]ett law has nev] gone into effect1 & ! ,pueblo /atute 0 repeal$ two ye>s aft] x _h be5 pass$4 ,9 _m cities ( ! ,unit$ ,/ates1 build+s are und]valu$ relatively to l& by ! in=mal & illegal action ( assessors4 ,! mo/ pron\nc$ & be/ kn[n in/ance ( ?is k9d is ,h\/on1 ,texas1 :]e 9 #aiad l& 0 assess$ at sev5ty p] c5t4 ( its value & build+s at only tw5ty-five p] c5t4 ,9 #aiae1 h[ev]1 ! practice 0 =bidd5 by ! c\rts z contr>y to ! ,texas con/itution4 ,at m ?an "o rec5t session ( ! ,new ,york legislature1 bills h be5 introduc$ provid+ = ! gradual r$uction ( ! tax on build+s 9 ,new ,york ,city to a basis ( fifty p] c5t4 ( _! value4 ,:ile none ( !m has be5 pass$1 ! s5tim5t 9 fav\r ( "s su* measure is probably increas+4 ,a simil> movem5t ( op9ion is app>5t 9 _m o!r sections ( ! c\ntry4 ,on ! :ole1 ! special l& taxes ( ,canada & ,au/ralasia are n rem>kably high4 ,!y seem to be z l[ or l[] ?an ! av]age rates impos$ on l&1 z well z on o!r =ms ( g5]al prop]ty1 9 ! ,unit$ ,/ates4 ,9 ! prov9ces1 ! special l& taxes provide only a small portion ( ! total rev5ues2 9 ! cities & t[ns1 !re are1 z a rule1 o!r s\rces ( rev5ue z well z l&1 & ! exp5ses ( municipal gov]nm5t are probably n z high z 9 ?is c\ntry4 ,h5ce ! l& taxes ( ,canada h n rea*$ an abnormally high level1 & are probably l[] ?an mo/ p]sons :o h he>d ( !m w\ld be incl9$ to expect4 ,! *ief exceptions to ! =ego+ /atem5ts are to be f\nd 9 ! wild l&s tax ( ,briti% ,columbia1 & 9 ! l& taxes ( "s ( ! t[ns 7n ! cities7 ( ,alb]ta4 ,a rate ( f\r p] c5t4 on unimprov$ & slightly improv$ rural l& is extraord9>y 9 fiscal annals1 & is sc>cely w>rant$ by any receiv$ pr9ciple ( taxation1 al?\gh x may possibly be ju/ifi$ by peculi> social & adm9i/rative conditions 9 ! prov9ce ( ,briti% ,columbia4 ,"s ( ! small] t[ns ( ,alb]ta :i* adopt$ ! l& tax dur+ ! rec5t p]iod ( depression h be5 compell$ to impose ev5 high] rates1 ! maximum be+ rea*$ by ,ca/or 9 #aiab1 ) a rate ( #h-a_/b p] c5t4 ,z a natural consequ5ce1 a l>ge proportion ( ! l& 9 ?is t[n 0 surr5d]$ by its own]s to ! municipality4 ,:ile ?is amaz+ tax rate is probably tempor>y1 & is likely to be l[]$ aft] ! return ( ! av]age conditions ( prosp]ity1 x inflicts unfair h>d%ip ^u ^? own]s ^: circum/ances are su* t !y mu/ give up _! l&1 in/ead ( await+ ! hop$ = decl9e 9 ! rate ( taxation4 ,! ,morality ( ! ,plan ,! losses ( v>i\s k9ds t w\ld result f ! transf] ( o!r taxes to l& may be ?us summ>is$4 ,l& w\ld depreciate 9 value by an am\nt equal to ! capitalis$ tax4 ,= example2 if ! rate ( int]e/ 7 five p] c5t41 an additional tax ( "o p] c5t4 w\ld r$uce l& wor? "o hundr$ doll>s an acre to eighty doll>s4 ,?is decl9e might1 inde$1 be p>tly1 :olly1 or m ?an (fset by a simultane\s rise due to economic =ces4 ,9 any case1 h[ev]1 ! l& w\ld be wor? tw5ty doll>s less ?an x w\ld h be5 wor? _h ! tax n be5 impos$4 ,= "s own]s ?is w\ld mean a positive loss2 = o!rs x w\ld signify m]e failure to ga94 ,! latt] w\ld happ5 9 ! case ( all ^? own]s :o at any "t aft] ! imposition ( ! tax sold _! l& at z high a price z !y _h paid = x4 ,n all ( ! own]s ^: l& 0 =c$ by ! tax to a figure bel[ _! pur*ase price w\ld suff] positive loss2 = ! l& might subsequ5tly rise 9 value suffici5tly to wipe out ! unfav\rable diff]5ce4 ,9 ?is respect a special tax on ! pres5t value ( l& has a diff]5t effect f a tax t appropriates all ! future value increases4 ,only ^? own]s :o actually sold _! l& bel[ _! pur*ase price c\ld *>ge ! =m] tax ) inflict+ ^u !m positive losses4 ,9 ! case ( ! l& exemplifi$ above1 ! own] :o sold at n9ety doll>s p] acre c\ld prop]ly attribute to ! tax a loss ( t5 doll>s2 ! own] :o sold at eighty doll>s w\ld h a grievance am\nt+ to tw5ty doll>s2 & a loss w\ld be suff]$ by any own] :o sold = less ?an eighty doll>s4 ,9 ! second place1 all own]s ( vacant l& :o sold at a price insuffici5t to provide = accumulat$ int]e/ on ! pur*ase price1 c\ld ju/ly hold ! tax responsible1 s long z ! defici5cy did n exce$ ! value-depreciation caus$ by ! tax4 ,?irdly1 all p]sons ^: l& _h an unusually high value relatively to ! value ( _! exempt$ prop]ty1 w\ld suff] losses z taxpay]s4 ,!y w\ld lose m ?r\gh ! heavi] l& taxes ?an !y w\ld ga9 ?r\gh ! light] taxes1 or ! abs5ce ( taxes1 on _! o!r prop]ty4 ,to comp5sate all own]s :o und]w5t ^! ?ree k9ds ( losses w\ld be practically impossible4 ,! numb] ( p]sons w\ld be too l>ge1 ! difficulty ( prov+ _m ( ! claims w\ld be too exp5sive1 & ! comp5sation process w\ld be too long drawn out1 s9ce x w\ld h to cont9ue until ! dea? ( all p]sons :o _h own$ l& :5 ! la/ in/alm5t ( ! increas$ l& taxes w5t into effect4 ,!re=e1 ! losses 9 "q mu/ be c\nt]balanc$ by o!r & indirect me?ods4 ,^! w be f\nd ma9ly 9 ! foll[+ consid]ations3 ! am\nt ( ! new taxes2 ! gradual me?od ( impos+ !m2 & _! socially b5eficial results4 ,am\nt ( ,taxes ,practically ,transf]able ,accord+ to ,pr(essor ,k+'s computations1 ! total r5t ( l& 9 ! ,unit$ ,/ates 9 #aiaj 0 #b1fgc1ijj1jjj1 :ile ! total exp5ditures ( national1 /ate1 c\nty & city gov]nm5ts 7 #b1eia1hjj1jjj4ajj ,9 8 op9ion 7p4 #afb7 ! r5t w\ld h be5 b>ely suffici5t to pay (f ! v>i\s gov]nm5tal budgets z at pres5t con/itut$1 & ) ! gr[+ conc5tration ( activities 9 ! h&s ( ! gov]nm5t1 x appe>s t r5t w soon be a quantity f> too small to meet ! requir$ *anges4 ,) increas+ pressure on our natural res\rces1 h[ev]1 x is probable t ! p]c5tage ( ! total income paid = r5t w gradually increase &1 s9ce ?is is true1 ! lag beh9d ! gr[+ gov]nm5tal exp5ses w be consid]ably less ?an w\ld o!rwise be ! case4 ,a *ange 9 our fiscal sy/em provid+ = ! imm$iate d]ivation ( all rev5ues f l& taxes w\ld1 !re=e1 involve ! confiscation ( all r5t1 & ! de/ruction ( all private l& values4 ,l& w\ld be wor? no?+ to ! own]s :5 its entire annual return 0 tak5 by ! ,/ate 9 ! guise ( taxes4 ,ev5 if ! process ( impos+ ! new taxes on l& 7 ext5d$ ov] a long t]m ( ye>s ! same result w\ld be rea*$ 9 ! end2 = :atev] increase _h tak5 place 9 ! economic value ( l& dur+ ! process w\ld 9 all probability h be5 neutralis$ by ! increase 9 gov]nm5tal exp5ditures4 ,x is evid5t1 !re=e1 t ! proposal to put all taxes on l& mu/ be reject$ on gr\nds ( bo? morals & exp$i5cy4 ,let u suppose t all national rev5ues cont9u$1 z n[1 to be rais$ f o!r s\rces ?an l&1 & t all /ate1 c\nty1 & city rev5ues rema9$ z !y are1 except ^? d]iv$ f ! g5]al prop]ty tax4 ,?is w\ld mean t all ! foll[+ taxes w\ld be un*ang$3 all f$]al taxes1 ! taxes on lic5ses ( all k9ds1 all taxes on bus9ess1 incomes1 & inh]itances1 & all special prop]ty taxes4 ,if1 !n1 ! :ole ( ! g5]al prop]ty tax 7 conc5trat$ on l&2 t is1 if all ! taxes on improvem5ts & on all =ms ( p]sonal prop]ty 7 legally %ift$ to l&1--! entire rev5ue to be rais$ f l& w\ld 9 #aiab h am\nt$ to #a1cdi1hda1jch4aja ,?is is slightly m ?an "o-half ( ,pr(essor ,k+'s e/imate ( ! total r5t = #aiaj1 :i* 0 #b1fgc1ijj1jjj4 ,b ?is figure equals f\r p] c5t4 ( ! l& values ( ! c\ntry2 h5ce ! conc5tration ( ! g5]al prop]ty tax on l& w\ld mean a tax rate ( two p] c5t4 on ! full value ( ! l&4 ,h[ mu* w\ld ?is *ange increase ! pres5t rate ( l& taxes1 & decrease exi/+ l& values8 ,:ile no accurate & def9ite answ] c be giv5 to ei!r ( ^! que/ions1 c]ta9 approximations c be attempt$ :i* %\ld be ( consid]able s]vice4 ,9 #aiab ! av]age tax rate on ! assess$ valuation ( all goods subject to ! g5]al prop]ty tax 0 4#jaid1 or #ai4dj p] ?\s& doll>s4#ajb ,! assess$ valuation ( tax$ real prop]ty & improvem5ts 7l&1 build+s1 & o!r improvem5ts7 0 ne>ly fifty-two billion doll>s1 :ile ! true value ( ! same prop]ty 0 ne>ly n9ety-eight & "o-half billions4#ajc ,consequ5tly1 ! actual tax rate ( 4#jaid on ! assess$ valuation 0 exactly "o p] c5t4 on ! true value ( real e/ate4 ,on ! assumption t bo? l& & improvem5ts 7 und]valu$ to ! same ext5t1 ! l& tax 0 "o p] c5t4 ( ! full value ( ! l&4 ,if n[ we take ,?omas ,g4 ,%e>man's e/imate1 t l& values =m sixty p] c5t4 ( ! total value ( real e/ate1 we f9d t ! taxes d]iv$ f l& con/itut$ only =ty-f\r p] c5t4 ( ! total rev5ues rais$ by ! g5]al prop]ty tax4 ,to conc5trate ! :ole ( ! g5]al prop]ty tax on l&1 by transf]r+ !reto ! taxes on improvem5ts & on p]sonal prop]ty1 w\ld1 accord+ly1 cause ! l& tax to be some:at m ?an d\bl$4 ,x w\ld be slightly above two p] c5t4 on ! full value ( ! l&4 ,?is is ! same e/imate t we obta9$ above by a diff]5t process2 t is1 by comp>+ ,pr(essor ,k+'s e/imate ( l& value & r5t ) ! total rev5ues d]iv$ f ! g5]al prop]ty tax4 ,h[ev]1 x is n improbable t sixty p] c5t4 is too l[ an e/imate ( ! ratio ( l& values to entire real e/ate values4 ,9 #aijj1 f>m l& & improvem5ts1 exclusive ( build+s1 =m$ #gh4f p] c5t4 ( ! value ( real e/ate1 i4e41 l&1 improvem5ts1 & build+s4 ,9 #aiaj1 ! p] c5t4 0 a little less ?an #hb4 ,n[ x is q unlikely t ! value ( non-build+ improvem5ts on f>ms am\nt$ to ! diff]5ce betwe5 sixty p] c5t4 & sev5ty-eight p] c5t4 9 #aijj1 or betwe5 sixty p] c5t4 & eighty-two p] c5t4 9 #aiaj4 ,h5ce ! value ( f>m l& is some?+ m ?an sixty p] c5t4 ( f>m real e/ate4 ,on ! o!r h&1 ! value ( factory l& 9 #aijj =m$ only #da4e p] c5t4 ( ! total value ( factory l& & build+s1 :ile ! value ( city & t[n lots 9 five rural /ates v>i$ f #cd to #fb p] c5t4 ( ?is species ( real e/ate4#ajd ,9 ,great] ,new ,york l& con/itutes #fa p] c5t4 ( real e/ate values4#aje ,ow+ to ! lack ( data1 ! av]age ratio = all k9ds ( real e/ate = ! :ole c\ntry is impossible ( det]m9ation4 ,if ! e/imate ( sev5ty p] c5t4 be adopt$1 :i* is probably ! upp] limit ( ! av]age proportion betwe5 l& values & real e/ate values ?r\gh\t ! c\ntry1 ! portion ( ! g5]al prop]ty tax n[ paid by l& am\nts to ab\t fifty-two p] c5t4 ,consequ5tly ! imposition ( ! :ole g5]al prop]ty tax on l& w\ld n q d\ble ! pres5t rate on l&4 ,to ! fir/ ( ! two que/ions rais$ above ! answ] c be giv5 ) a fair am\nt ( confid5ce t ! transf] ( improvem5t & p]sonal prop]ty taxes to l& w\ld cause l& taxes to be ab\t twice :at !y are at pres5t4 ,to ! second "q1 conc]n+ ! ext5t to :i* l& values w\ld fall 9 consequ5ce ( ! heavi] taxes1 ! answ] mu/ be some:at less def9ite4 ,! add$ l& taxes w\ld be ab\t "o-half ! pres5t g5]al prop]ty taxes1 or #fge1jjj1jjj4 ,?is is ab\t "o p] c5t4 ! total l& values ( ! c\ntry4 ,"o p] c5t4 ( l& values capitalis$ at five p] c5t4 repres5ts a depreciation ( tw5ty p] c5t4 9 ! value ( l&2 capitalis$ at f\r p] c5t41 x repres5ts a depreciation ( tw5ty-five p] c5t4 ,= example2 if l& wor? "o hundr$ doll>s an acre returns to its own] a net income ( five doll>s annually1 ! appropriation ( "o doll> by a new tax w leave a net rev5ue ( only f\r doll>s2 capitalis$ at ! curr5t rate ( five p] c5t41 ?is repres5ts only eighty doll>s ( l& value1 or a depreciation ( tw5ty p] c5t4 ,if ! l& has ! same value ( "o hundr$ doll>s1 & /ill yields only f\r doll>s rev5ue1 a d$uction ( "o doll> 9 new taxes w leave only ?ree doll>s net2 capitalis$ at ! curr5t rate ( f\r p] c5t41 ?is repres5ts only sev5ty-five doll>s ( l& value1 or a depreciation ( tw5ty-five p] c5t4 ,us+ ! o!r me?od ( calculation1 :i* e/imat$ ! pres5t tax rate on ! full value ( l& at "o p] c5t41 we get exactly ! same results2 namely1 ! new tax is "o p] c5t41 :i* is equival5t to a depreciation ( tw5ty p] c5t4 or ( tw5ty-five p] c5t41 accord+ z we assume an int]e/ rate ( five p] c5t4 or ( f\r p] c5t4 ,suppose1 h[ev]1 t ! assessors d n und]value l& to ! ext5t t we h be5 assum+2 suppose t ! pres5t rate ( 4#jaid on assess$ valuation is equival5t to1 n m]ely "o p] c5t41 b "o & "o-half p] c5t4 ( ! full value ( l&4 ,9 t hypo!sis ! additional tax w\ld likewise be "o & "o-half p] c5t41 :i* capitalis$ at five p] c5t1 w\ld repres5t a depreciation ( ?irty p] c5t41 & at f\r p] c5t4 a depreciation ( ?irty-sev5 & "o-half p] c5t4 ,comb9+ 9 "o g5]alisation ! v>i\s suppositions made 9 ?is p>agraph1 we e/imate ! depreciation ( l& values result+ f ! propos$ tax transf] z some:]e betwe5 tw5ty & =ty p] c5t4 ,we h consid]$ two hypo!tical transf]s ( taxes to l&4 ,! fir/ we f\nd to be out ( ! "q because x w\ld appropriate ! :ole ( ! r5t & de/roy all private l& values4 ,! second w\ld app>5tly am\nt to two p] c5t4 ( ! value ( l&1 & cause l& values to depreciate f tw5ty to =ty p] c5t4 ,x is unnecess>y to consid] ! probable effects ( any plan t w\ld involve heavi] l& taxes ?an ! second2 t is1 ! s*eme ( impos+ all ! g5]al prop]ty tax on l&2 = x repres5ts ! extreme feasible & fair limit ( ! movem5t )91 at any rate1 ! next fifte5 or tw5ty ye>s4 ,ev5 ?is degree ( tax transf]5ce w\ld be unju/ to ! l&[n]s if x 7 br\ght ab\t at once4 ,no social or o!r consid]ations exi/ t w\ld ju/ify a depreciation 9 l& values ( f tw5ty to =ty p] c5t4 ,if1 h[ev]1 ! process 7 ext5d$ ov] a p]iod (1 say1 tw5ty ye>s1 ! decl9e w\ld be only "o or two p] c5t4 annually1 :i* is consid]ably less ?an ! rate at :i* f>m l&s & ! l& 9 l>ge cities h ris5 9 value dur+ rec5t ye>s4 ,"u su* an arrangem5t ! great majority ( own]s w\ld probably f9d t ! depreciation caus$ by ! heavi] l& taxes1 _h be5 m ?an (fset by ! upw>d t5d5cy result+ f ! increas$ dem& = l&4 ,nev]!less1 !re w\ld /ill be positive losses ( ! ?ree k9ds describ$ a few pages back2 namely1 to own]s :o sold l& bel[ ! price t !y _h paid = x2 to own]s :o sold vacant l& at a price insuffici5t to cov] accumulat$ int]e/ on ! inve/m5t2 & to own]s ^: aggregate tax burd5s 7 increas$4 ,"s degree ( ea* ( ^! sorts ( losses w\ld be due specifically to ! new l& taxes4 ,z not$ above1 public comp5sation 9 all su* cases w\ld be impracticable4 ,consequ5tly ! ju/ification ( a law t inflicts su* losses mu/ be f\nd1 if x exi/s1 9 social consid]ations4 ,! ,social ,b5efits ( ! ,plan ,^! may be summ$ up "u ?ree heads3 mak+ l& easi] to acquire2 *eap5+ ! products & r5t ( l&2 & r$uc+ ! burd5s ( taxation borne by ! poor] & middle classes4 ,an increase 9 ! tax on l& w\ld r$uce its value & price1 or at lea/ cause ! price to be l[] ?an x w\ld h be5 9 ! abs5ce ( ! tax4 ,?is does n mean t l& w\ld be m pr(itable to ! pur*as]1 s9ce he is enabl$ to buy x at a l[] price only because x yields him less net rev5ue1 or because x is less likely to increase 9 value4 ,! value ( l& is always det]m9$ by its rev5ue-produc+ p[]1 & by its probabilities ( price-appreciation4 ,consequ5tly1 :at ! pur*as]s w\ld ga9 by ! l[] price result+ f ! new tax1 !y w\ld lose :5 !y came to pay ! tax itself1 & :5 !y f\nd ! *ances ( value increases dim9i%$4 ,if a piece ( l& :i* br+s a return ( five doll>s a ye> co/s "o hundr$ doll>s be=e ! new tax ( "o p] c5t4 is impos$1 & c be b\ght = eighty doll>s aft]w>d1 ! net int]e/ on ! pur*ase price has n *ang$4 ,x is /ill five p] c5t4 ,h5ce ! only advantage to ! prospective pur*as] ( l& 9 gett+ x *eap] consi/s 9 ! fact t he c obta9 x ) a small] outlay ( capital4 ,= p]sons 9 mod]ate circum/ances ?is is a v important consid]ation4 ,9 ! second place1 high] taxes w\ld cause _m exi/+ own]s ei!r to improve _! l&1 9 ord] to h ! means ( meet+ ! add$ fiscal *>ges1 or to sell x to p]sons :o w\ld be will+ to make improvem5ts4 ,& ! desire to erect build+s & o!r =ms ( improvem5ts w\ld be re9=c$ by ! r$uction or abolition ( taxes on ^? k9ds ( p]sonal prop]ty :i* consi/ ( build+ mat]ials4 ,an increase 9 ! rapidity ( improvem5ts on l& w\ld mean an increase 9 ! rate at :i* l& 0 br\ght into use1 & !re=e an unusual increase 9 ! volume ( products4 ,?is virtual increase 9 ! supply ( l&1 & actual increase 9 ! supply ( products1 w\ld cause a fall 9 ?ree k9ds ( prices3 ! price ( products1 ! r5t ( l&1 & ! price ( l&4 ,! la/ nam$ r$uction w\ld be di/9ct f ! r$uction ( l& value caus$ 9 ! fir/ in/ance by ! imposition ( ! tax4 ,9 ! ?ird place1 ! r$uction1 & f9ally ! abolition1 ( taxes on improvem5ts & p]sonal prop]ty w\ld be especially b5eficial to ! poor] & middle classes because !y n[ pay a disproportionate %>e ( ^! *>ges4 ,l[] taxes on dwell+s w\ld mean l[] r5ts = all p]sons :o did n own _! homes1 & l[] taxes = all own]s ^: resid5ce values 7 unusually l>ge relatively to _! l& values4 ,& ! t5d5cy to l[] r5ts on dwell+s w\ld be re9=c$ by ! l[] co/ ( build+ mat]ials result+1 z not$ above1 f ! increas$ supply & ! l[] tax on ?is =m ( p]sonal prop]ty4 ,l[] taxes on t species ( p]sonal prop]ty :i* consi/s ( consum]s' goods1 su* z h\sehold furniture & we>+ app>el1 w\ld less5 ! pres5t inequity ( taxation because ?is class ( goods is rea*$ to a mu* great] ext5t 9 ! case ( ! poor ?an 9 ! case ( ! ri*4 ,x is n easy to conceal or to und]value a relatively small numb] ( simple & /&>d articles2 b diamonds1 co/ly furniture1 & luxuri\s w>drobes c be ei!r hidd51 or c]tifi$ to ! assessor at a l[ valuation4 ,z = ^? =ms ( p]sonal prop]ty :i* are ( ! nature ( capital & o!r pr(it produc+ goods1 su* z ma*9]y & tools ( all k9ds1 productive animals1 money1 mortgages1 securities1 ! /ocks ( goods held by manufactur]s & m]*ants1 & likewise build+s :i* are us$ = productive purposes1--! taxes on all ^! k9ds ( prop]ty are = ! mo/ "p %ift$ to ! consum]4 ,! latt] ultimately pays ! tax 9 ! =m ( high] prices = food1 clo?+1 %elt]1 & ! o!r necess>ies & com=ts ( life4#ajf ,n[ a tax on consumption is notori\sly unfair to ! poor] & middle classes because x affects a great] portion ( _! total exp5ditures1 & takes a l>g] p] c5t4 ( _! income ?an 9 ! case ( ! ri*4 ,h5ce ! removal ( ! taxes specifi$ 9 ?is p>agraph w\ld be at once ! abolition ( a fiscal inju/ice1 & a consid]able assi/ance to ! less =tunate classes4 ,all ^? l&[n]s :o occupi$ r5t$ dwell+s w\ld b5efit by ! r$uction 9 h\se r5t1 & all l&[n]s )\t exception w\ld reap "s advantage f ! r$uction or abolition ( ! taxes on consum]s' goods & on ! v>i\s =ms ( produc]s' goods4 ,x is n improbable t a consid]able proportion ( !m w\ld ga9 z mu* 9 ^! respects z !y w\ld lose 9 ! capacity ( l&[n]s4 ,w\ld ! social b5efits summ>ily describ$ 9 ! =ego+ p>agraphs be suffici5t to ju/ify ! increas$ l& taxes 9 ! face ( ! losses t w\ld be und]gone by "s l&[n]s 9 ! ?ree ways already specifi$8 ,9 view ( our ignorance conc]n+ ! probable am\nt ( b5efits on ! "o h& & losses on ! o!r1 x is impossible to give a dogmatic answ]4 ,h[ev]1 :5 we reflect on ! manifold social evils t are ?reat5$ by a rapid & cont9u\s increase 9 l& values1 & ! result+ decrease 9 ! proportion ( ! population t c hope to p>ticipate 9 ! own]%ip ( l&1 we are =c$ to conclude t "s means ( *eck+ bo? t5d5cies is urg5tly necess>y = ! sake ( social ju/ice & social peace4 ,! project t we h be5 consid]+2 namely1 ! transf] ( taxes on improvem5ts & on p]sonal prop]ty to l& by a process ext5d+ ov] tw5ty ye>s1 seems to involve a suffici5tly l>ge am\nt ( advantage & a suffici5tly small am\nt ( disadvantage to ju/ify sy/ematic & c>eful exp]im5t4 ,a ,sup]tax on ,l>ge ,hold+s ,e e/ate conta9+ m ?an a maximum numb] ( acres1 say1 t5 ?\s&1 :e!r compos$ ( a s+le tract or ( sev]al tracts1 c\ld be compell$ to pay a special tax 9 addition to ! ord9>y tax levi$ on l& ( ! same value4 ,! rate ( ?is sup]tax %\ld increase ) ! size ( ! e/ate above ! fix$ maximum4 ,?r\gh ?is device l>ge hold+s c\ld be brok5 up1 & divid$ among _m own]s & occupi]s4 ,= sev]al ye>s x has be5 successfully appli$ = ?is purpose 9 ,new ,zeal& & ,au/ralia4#ajg ,inasmu* z ?is tax exemplifies ! pr9ciple ( progression1 x is 9 accord ) ! pr9ciples ( ju/ice2 = relative ability to pay is closely connect$ ) relative sacrifice4 ,o!r ?+s be+ equal1 ! less ! sacrifice involv$1 ! great] is ! ability ( ! individual to pay ! tax4 ,?us1 ! man ) an income ( t5 ?\s& doll>s a ye> makes a small] sacrifice 9 giv+ up two p] c5t4 ( x ?an ! man ^: income is only "o ?\s& doll>s2 = ! latt] case ! tw5ty doll>s surr5d]$ repres5t a privation ( ! necess>ies or ! elem5t>y com=ts ( life1 :ile ! two hundr$ doll>s tak5 f ! ri* man w\ld h be5 exp5d$ = luxuries or conv]t$ into capital4 ,:ile ! incomes ( bo? are r$uc$ 9 ! same proportion1 _! satisfactions are n dim9i%$ to ! same degree4 ,! wants t are depriv$ ( satisfaction are mu* less important 9 ! case ( ! ri*] ?an 9 t ( ! poor] man4 ,h5ce ! only way to br+ ab\t any?+ l equality ( sacrifice betwe5 !m is to increase ! proportion ( income tak5 f ! =m]4 ,?is means t ! rate ( taxation w\ld be progressive4#ajh ,x is 9 ord] to object t ! pr9ciple ( progression %\ld n be appli$ to ! taxation ( great l&$ e/ates1 s9ce a consid]able "p ( !m is unproductive1 & consequ5tly does n directly affect sacrifice4 ,b ! same objection c be urg$ aga9/ any taxation ( unoccupi$ l&4 ,! obvi\s reply is t ! equal taxation ( unproductive ) productive l& is ju/ifi$ by social reasons1 *iefly1 ! unwisdom ( p]mitt+ l& to be held out ( use4 ,! same social reasons apply to ! "q ( levy+ an exceptionally high tax on l>ge e/ates1 ev5 ?\gh !y may at pres5t produce no rev5ue4 ,:ile ! tax is s\nd 9 pr9ciple1 x is probably n mu* ne$$ 9 ,am]ica 9 connection ) agricultural or urban l&4 ,its ma9 sph]e ( usefulness w\ld seem to be c]ta9 great hold+s ( m9]al1 timb]1 & wat] p[] l&s4 ,!re are _m great comb9ations 9 o!r indu/ries ^: =mation is complete4 ,9 ! lumb] indu/ry1 on ! o!r h&1 ! ,bureau n[ f9ds 9 ! mak+ a comb9ation caus$1 fundam5tally1 by a long /&+ public policy4 ,! conc5tration already exi/+ is suffici5tly impressive4 ,/ill m impressive are ! possibilities = ! future4 ,9 ! la/ =ty ye>s conc5tration has s proce$$ t #aie hold]s1 _m int]relat$1 n[ h practically "o-half ( ! privately own$ timb] 9 ! inve/igation area 7:i* conta9s eighty p] c5t4 ( ! :ole74 ,?is =midable process ( conc5tration1 9 timb] & 9 l&1 cle>ly involves grave future possibilities ( impregnable monopoli/ic conditions1 ^: f> rea*+ consequ5ces to society x is n[ difficult to anticipate fully or to ov]e/imate4#aji ,9 ,janu>y1 #aiaf1 ! ,secret>y ( ,agriculture call$ ! att5tion ( ,congress to ! fact t a small numb] ( corporations closely associat$ 9 a policy ( community ( int]e/ 7 ?reat5+ to secure & ex]cise a monopoly ov] ! develop$ wat] p[] ( ! c\ntry4 ,n9ety p] c5t4 ( ! an?racite coal l&s ( ,p5nsylvania are own$ or controll$ by "s n9e railroads act+ z a unit 9 all important matt]s4 ,= situations ( ?is k9d a sup]tax on l>ge e/ates w\ld seem to hold ! promise ( a l>ge measure ( relief4 ,to sum up ! ma9 conclusions ( ?is v long *apt]3 ,exceptionally valuable l&s1 z ^? conta9+ timb]1 m9]als1 oil1 gas1 phosphate1 & wat] p[]1 :i* are /ill "u public own]%ip %\ld rema9 !re4 ,?r\gh a judici\s sy/em ( loans1 des]v+ & effici5t p]sons %\ld be assi/$ to get possession ( "s l&4 ,municipalities %\ld lease r ?an sell _! l&s1 & %\ld /rive to increase _! hold+s4 ,to take all ! future increases 9 ! value ( l& w\ld be morally lawful1 provid$ t comp5sation 7 giv5 to own]s :o !reby suff]$ positive losses ( int]e/ or pr9cipal4 ,to take a small "p ( ! increase1 & to transf] v gradually ! taxes on improvem5ts & on p]sonal prop]ty to l&1 w\ld probably be j1 ow+ to ! b5eficial effects ^u public welf>e4 ,a sup]tax on l>ge hold+s ( exceptionally valuable & sc>ce l& w\ld likewise be b5eficial & legitimate4#aaj ,,ref]5ces ,,on ,,section ,i ,,a%ley3 ,! ,orig9 ( ,prop]ty 9 ,l&4 ,london2 #ahib4 ,,laveleye3 ,primitive ,prop]ty4 ,london2 #ahgh4 ,,:ittak]3 ,! ,taxation1 ,t5ure1 & ,own]%ip ( ,l&4 ,london2 #aiad4 ,,preuss3 ,! ,fundam5tal ,fallacy ( ,socialism4 ,/4 ,l\is2 #aijh4 ,,george3 ,progress & ,pov]ty2 & ,a ,p]plex$ ,philosoph]4 ,,m>%3 ,l& ,value ,taxation 9 ,am]ican ,cities4 ,n4 ,y42 #aiaa4 ,,fillebr[n3 ,a ,s+le ,tax ,h&book = #aiac4 ,bo/on2 #aiab4 ,,"y3 ,! ,s+le ,tax ,movem5t 9 ! ,unit$ ,/ates4 ,pr9ceton2 #aiaf4 ,,%e>man3 ,natural ,taxation4 ,n4 ,y42 #ahih4 ,,ma!ws3 ,taxation & ! ,di/ribution ( ,weal?4 ,n4 ,y42 #aiad4 ,,ca?re93 ,das ,privatgrundeig5?um und se9e ,gegn]4 ,freiburg2 #aiji4 ,,fallon3 ,les ,plus-,values et l',impot4 ,p>is2 #aiad4 ,,ne>+3 ,an?racite4 ,philadelphia2 #aiaf4 ,,haig3 ,f9al ,report ( ! ,committee on ,taxation ( ! ,city ( ,new ,york2 #aiaf4 ,! exemption ( ,improvem5ts f ,taxation 9 ,canada & ,u4 ,s42 #aiae4 ,"s ,probable ,effects ( ,exemption 9 ,city ( ,new ,york2 #aiae4 ,,kelleh]3 ,private ,own]%ip4 ,dubl92 #aiaa4 ,proce$+s ( ! #aiac ,meet+ ( ! ,am]ican ,economic ,association4 ,u4 ,s4 ,,commission] ,,( ,,corporations3 ,reports on ! ,lumb]1 ,petroleum1 ,/eel1 & ,wat] ,p[] ( ! ,unit$ ,/ates4 ,,seligman3 ,essays 9 ,taxation2 ,%ift+ & ,incid5ce ( ,taxation2 & ,progressive ,taxation 9 ,!ory & ,practice4 ,also ! works ( ,taussig1 ,devas1 ,c>v]1 ,pes*1 ,k+1 ,v]me]s*1 ,will\ghby1 & ! ,commission on ,indu/rial ,relations1 all ( :i* are cit$ at ! end ( ! introductory *apt]4 ,,footnotes3 #hd ,summ>y ( ,report ( ! ,commission] ( ,corporations on ! ,timb] ,indu/ry 9 ! ,unit$ ,/ates1 p4 #c4 #he ,report ( ! ,commission] ( ,corporations on ,wat] ,p[] ,developm5t 9 ! ,unit$ ,/ates1 pp4 #aic-aie4 #hf ,idem1 pp4 #d1 #e4 #hg ,ab/ract ( ! ,?irte5? ,c5sus1 p4 #eeb4 #hh ,cf4 ,m>%1 ,l& ,value ,taxation 9 ,am]ican ,cities1 p4 #ie4 #hi ,municipal pur*ase & own]%ip ( l& h be5 advocat$ by su* a cons]vative au?ority z ! ,rev4 ,he9ri* ,pes*1 ,s4,j4 ,lehrbu* d] ,nationaloekonomie1 ,i1 #bjc4 #ij ,z we %all see 9 a lat] *apt]1 ! confiscation & inju/ice w\ld be small] if ! ,/ate %\ld simultane\sly aboli% int]e/4 ,9 any case1 ! decl9e 9 l& value result+ f complete confiscation ( r5t %\ld be made up to ! private own] by public comp5sation4 #ia ,pr9ciples ( ,political ,economy1 book ,v1 *4 #b1 sect4 v4 #ib ,progressive ,taxation 9 ,!ory & ,practice1 #aijh1 p4 #acj4 #ic ,cf4 ,taussig1 ,pr9ciples ( ,economics1 ,,ii1 #eaf3 ,seligman1 ,! ,%ift+ & ,incid5ce ( ,taxation1 p4 #bbc4 #id ,! discrim9ation objection is put 9 a some:at diff]5t =m by ! ,rev4 ,sydney ,f4 ,smi?1 ,s4,j41 9 an article 9 ,! ,mon?1 ,sept41 #aiji1 entitl$ ,! ,!ory ( ,une>n$ ,increm5t4 ,8 argum5t is 9 sub/ance t if ! p ( a city c claim ! increases 9 l& values :i* _! pres5ce & activity h occasion$1 ! pur*as]s ( food1 clo!s1 books1 or conc]t tickets are equally ju/ifi$ 9 claim+ t1 hav+ add$ to ! value ( ! %ops & music halls1 !y _h acquir$ a co-propriet>y "r 9 ! increas$ value ( ! own]s' /ock1 & ! own]s' premises4 ,:ile ?is argum5t is specifically direct$ aga9/ ^? :o ma9ta9 t ! social production ( values conf]s a "r !reto1 x affects to "s ext5t our !sis t !re is a va/ diff]5ce betwe5 value-increases 9 l& & 9 o!r goods4 ,fa!r ,smi? seems to confuse ! orig9ation ( value ) ! increase ( value4 ,! pres5ce ( consum]s is an obvi\s pr]equisite to ! exi/5ce ( any value at all 9 any k9d ( goods1 b lab\r & f9ancial outlay on ! "p ( ! produc]s ( ! goods are an equally indisp5sable pr]equisite4 ,! reason :y ! value is appropriat$ by ! latt] r ?an ! =m] is t ?is is cle>ly ! only rational me?od ( di/ribution4 ,:at we are conc]n$ ) "h1 h[ev]1 is n ?is initial or co/-(-production-value ( artificial goods1 b ! increases 9 value above ?is level :i* are br\ght ab\t by ext]nal & social influ5ces4 ,!oretically1 ! ,/ate c\ld z reasonably take ^! z ! increases 9 ! value ( l&2 practically1 su* a p]=mance is out ( ! "q1 = ! simple reason t su* increases are spasmodic & exceptional4 ,if ,fa!r ,smi? ?9ks t food or clo!s1 or books1 or conc]t tickets regul>ly advance above ! co/-(-production-value1 he is simply mi/ak54 ,s9ce ^! & o!r artificial goods br+ to _! own]s z a rule no socially occasion$ increm5ts ( value1 !y & _! own]s are 9 q a diff]5t situation f l& & ! own]s ( l&4 #ie ,cf4 ,seligman1 ,progressive ,taxation 9 ,!ory & ,practice1 "p ,,ii1 *s4 ii & iii2 also ! classic refutation ( ! b5efit !ory by ,john ,/u>t ,mill 9 ,pr9ciples ( ,political ,economy1 book ,v1 *4 ii1 sec4 #b4 ,! traditional ,ca?olic tea*+ on ! subject is compactly /at$ by ,c>d9al de ,lugo 9 ,de ,ju/itia et ,jure1 disp4 #cf2 cf4 ,devas1 ,political ,economy1 p4 #eid1 #b;d ed4 #if ,cf4 ,fallon1 ,les ,plus-,values et l',impot1 pp4 #dee1 sq42 ,p>is1 #aiad2 ,fillebr[n1 ,a ,s+le ,tax ,h&book = #aiac2 ,bo/on1 #aiab2 ,m>%1 ,taxation ( ,l& ,values 9 ,am]ican ,cities1 pp4 #ij-ib2 ,new ,york1 #aiaa2 ,! ,qu>t]ly ,j\rnal ( ,economics1 vols4 #bb1 #bd1 #be2 ,! ,s+le ,tax ,review1 ,m>*-,april1 #aiab2 ,/imm5 aus ,m>ia-,laa*1 ,oct41 #aijg4 #ig ,see ! ref]5ces 9 ! second la/ p>agraph4 #ih ,! mo/ compreh5sive & reliable acc\nt ( ! special l& taxes 9 ,canada is conta9$ 9 ! report prep>$ = ! ,committee on ,taxation ( ! ,city ( ,new ,york1 by ,rob]t ,murray ,haig1 ,ph4,d41 entitl$1 ,! ,exemption ( ,improvem5ts f ,taxation 9 ,canada & ! ,unit$ ,/ates2 ,new ,york1 #aiae4 ,see also ,fallon1 op4 cit41 pp4 #deb-dee4 #ii ,cf4 ,fallon1 op4 cit41 pp4 #ddc-deb4 #ajj ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 pp4 #aeh1 #adc4 #aja ,ab/ract ( ,bullet9s on ,weal?1 ,debt1 & ,taxation1 p4 #af2 ,u4 ,s4 ,c5sus1 #aiac4 #ajb ,idem1 p4 #ae4 #ajc ,idem1 p4 #af2 & ,bullet9 ( ! ,c5sus on ,e/imat$ ,valuation ( ,national ,weal?1 p4 #ae4 #ajd ,special ,report ( ! ,twelf? ,c5sus on ,weal?1 ,debt1 & ,taxation1 pp4 #ab1 #ac4 #aje ,haig1 ,probable ,effects ( ,exemption ( ,improvem5ts44441 p4 #bc4 #ajf ,cf4 ,seligman1 ,! ,%ift+ & ,incid5ce ( ,taxation1 pp4 #ahg1 #bde1 #bgb1 & all ( "p ,,ii2 ,n4 ,y41 #ahii2 ,taussig1 ,pr9ciples ( ,economics1 ,,ii1 #eah-edi1 & *s4 #fg-fi4 #ajg ,cf4 ,fallon1 op4 cit41 pp4 #ddb1 sq4 #ajh ,cf4 ,v]me]s*1 ,quae/iones de ,ju/itia1 pp4 #id-abf2 ,seligman1 ,progressive ,taxation 9 ,!ory & ,practice1 pp4 #baj1 #baa2 ,mill1 ,pr9ciples ( ,political ,economy1 book ,v1 *4 ii1 sec4 #c4 #aji ,summ>y ( ,report ( ! ,commission] ( ,corporations on ! ,lumb] ,indu/ry 9 ! ,unit$ ,/ates1 p4 #h4 #aaj ,probably ! mo/ concrete & satisfactory discussion ( ! increm5t tax & ! project to transf] improvem5t taxes to l&1 is t pres5t$ 9 ! ,f9al ,report ( ! ,committee on ,taxation ( ! ,city ( ,new ,york2 #aiaf4 ,x conta9s brief1 ?\gh complete1 /atem5ts ( all phases ( ! subject1 toge!r ) concise argum5ts on bo? sides1 majority & m9ority recomm5dations1 a great v>iety ( diss5t+ individual op9ions1 & consid]able te/imony by exp]ts1 au?orities1 & o!r int]e/$ p]sons4 ,,section ,,ii ,,! ,,morality ,,( ,,private ,,capital ,,& ,,int]e/ ,,*apt] ,,ix ,,! ,,nature ,,& ,,! ,,rate ,,( ,,int]e/ ,int]e/ d5otes t "p ( ! product ( indu/ry :i* goes to ! capitali/4 ,z ! own]%ip ( l& comm&s r5t1 s ! own]%ip ( capital comm&s int]e/2 z r5t is a price paid = ! use ( l&1 s int]e/ is a price paid = ! use ( capital4 ,h[ev]1 ! t]m capital is less def9ite & unambigu\s1 bo? 9 popul> & 9 economic usage1 ?an ! ^w l&4 ,! f>m]1 ! m]*ant1 & ! manufactur] (t5 speak ( _! l&1 build+s1 & *attels z _! capital1 & reckon ! returns f all ^! s\rces z equival5t to a c]ta9 p] c5t4 ( int]e/ or pr(it4 ,?is is n te*nically correct2 :5 we use ! t]ms capital & int]e/ we %\ld exclude ! notions ( l& & r5t4 ,mean+ ( ,capital & ,capitali/ ,capital is ord9>ily def9$ z1 weal? employ$ directly = ! production ( new weal?4 ,accord+ z x is consid]$ 9 ! ab/ract or ! concrete1 x is capital-value or capital-in/rum5ts4 ,= example1 ! own] ( a wagon factory may describe 8 capital z hav+ a value ( #ajj1jjj doll>s1 or z consi/+ ( c]ta9 build+s1 ma*9es1 tools1 (fice furniture1 etc4 ,9 ! =m] case he ?9ks ( 8 capital z s mu* ab/ract value :i*1 ?r\gh a sale1 he c\ld take out ( ! factory1 & put into o!r concrete capital =ms1 su* z a railroad or a jobb+ h\se4 ,9 ! latt] case he has 9 m9d ! p>ticul> in/rum5ts 9 :i* 8 capital is at pres5t embodi$4 ,! capital-value concept is ! m conv5i5t1 & is usually int5d$ :5 ! ^w capital is us$ )\t qualification4 ,x is also ! basis ^u :i* int]e/ is reckon$2 = ! capitali/ does n measure 8 %>e ( ! product z s _m doll>s ( r5t on 8 capital-in/rum5ts1 b z s _m p] c5t4 on 8 capital-value4 ,capitali/s are ( two pr9cipal k9ds3 ^? :o employ _! own money 9 _! own ent]prises2 & ^? :o l5d _! money to o!rs = use 9 indu/ry4 ,! =m] may be call$ active capitali/s1 ! latt] loan-capitali/s4 ,p]haps a majority ( active capitali/s use "s borr[$ money 9 _! bus9ess4 ,to ! l5d]s ( ?is borr[$ money or capital !y turn ov] a "p ( ! product 9 ! =m ( int]e/4 ,:51 !re=e1 int]e/ is def9$ z ! %>e ( ! product t goes to ! capitali/1 x is ! own] ( capital-value r ?an ( capital-in/rum5ts t is meant4 ,= ! man :o has loan$ #ej1jjj doll>s at five p] c5t4 to ! wagon manufactur] is n1 except hypo!tically1 ! own] ( ! build+s :i* h be5 erect$ ) t money4 ,^! are own$ 7subject possibly to a mortgage7 by ! borr[]1 ! active capitali/4 ,b ! ab/ract value :i* has gone into !m cont9ues to be ! prop]ty ( ! l5d]4 ,z own] !re(1 he1 in/ead ( ! active capitali/1 receives ! int]e/ t is assign$ to ?is portion ( ! total capital4 ,h5ce int]e/ is ! %>e ( ! product t is tak5 by ! own] ( capital1 :e!r he employs x himself or l5ds x to "s "o else4 ,:ile ! fundam5tal reason ( int]e/ is ! fact t c]ta9 concrete in/rum5ts are necess>y to ! mak+ ( ! product1 int]e/ is always reckon$ on capital-value1 & goes to ! own] ( ! capital-value4 ,x goes to ! man ^: money has be5 put into ! in/rum5ts1 :e!r or n he is ! own] ( ! in/rum5ts4 ,mean+ ( ,int]e/ ,int]e/ is ! %>e ( ! capitali/ z capitali/4 ,! man :o employs 8 own capital 9 8 own bus9ess receives !refrom 9 addition to int]e/ o!r returns4 ,let u suppose t "s "o has inve/$ #ajj1jjj doll>s ( borr[$ money & #ajj1jjj doll>s ( 8 own money 9 a :olesale groc]y bus9ess4 ,at ! end ( ! ye>1 aft] defray+ ! co/ ( lab\r1 mat]ials1 r5t1 repairs1 & replacem5t1 8 gross returns are #ae1jjj doll>s4 ,out ( ?is sum he mu/ pay five ?\s& doll>s z int]e/ on ! money t he has borr[$4 ,?is leaves him a total am\nt ( t5 ?\s& doll>s1 z 8 %>e ( ! product ( ! indu/ry4 ,s9ce he c\ld comm& a sal>y ( ?ree ?\s& doll>s if he work$ = "s "o else1 he reg>ds 8 lab\r ( direct+ 8 own bus9ess z wor? at lea/ ?is sum4 ,d$uct+ x f t5 ?\s& doll>s1 he has left sev5 ?\s& doll>s1 :i* mu/ 9 "s s5se be accr$it$ z paym5t = ! use ( 8 own capital4 ,h[ev]1 x is n all pure int]e/2 = he runs ! risk ( los+ 8 capital1 & also ( fail+ to get ! normal rate ( int]e/ on x dur+ future unprosp]\s ye>s4 ,h5ce he w require a "p ( ! sev5 ?\s& doll>s z insurance aga9/ ^! two cont+5cies4 ,two p] c5t4 ( 8 capital1 or two ?\s& doll>s1 is n an excessive all[ance4 ,if ! bus9ess did n provide him ) ?is am\nt ( insurance he w\ld probably reg>d x z unsafe1 & w\ld sell x & inve/ 8 money else:]e4 ,subtract+ two ?\s& doll>s f sev5 ?\s&1 we h five ?\s& left z pure int]e/ on ! director's own capital4 ,?is is equival5t to five p] c5t41 :i* is ! rate t he is pay+ on ! capital t he has borr[$4 ,if he c\ld n get ?is rate on 8 own money he w\ld probably pref] to become a l5d] himself1 a loan capitali/ in/ead ( an active capitali/4 ,?is "p ( 8 total %>e1 !n1 & only ?is "p1 is pure int]e/4 ,! o!r two sums t he receives1 ! ?ree ?\s& doll>s & ! two ?\s& doll>s1 are respectively wages = 8 lab\r & insurance aga9/ 8 risks4 ,sometimes !y are classifi$ toge!r "u ! g5]al "n ( pr(its4 ,let u suppose1 h[ev]1 t ! gross returns are n #ae1jjj doll>s1 b #ag1jjj4 ,h[ is ! additional sum to be d5om9at$8 ,9 /rict economic language x w\ld probably be call$ net pr(its1 z di/+ui%$ f normal or necess>y pr(its1 :i* comprise wages ( direction & insurance aga9/ loss4 ,sometimes x is call$ int]e/4 ,9 t case ! own] ( ! /ore w\ld receive sev5 in/ead ( five p] c5t1 on 8 own capital4 ,:e!r ! extra two p] c5t4 7#b1jjj doll>s7 be call$ net pr(its or surplus int]e/1 is ma9ly a matt] ( t]m9ology4 ,! important ?+ is to indicate cle>ly t ^! t]ms designate ! surplus :i* goes to ! active capitali/ 9 addition to necess>y pr(its & necess>y int]e/4 ,at ! risk ( we>isome repetition1 "o m example w be giv5 to illu/rate ! di/9ction betwe5 int]e/ & ! o!r returns t are receiv$ 9 connection ) capital4 ,! annual income f a railway bond is int]e/ on l5d]'s capital1 & consequ5tly pure int]e/4 ,ord9>ily ! bondhold] is adequately protect$ aga9/ ! loss ( 8 capital by a mortgage on ! railroad4 ,on ! o!r h&1 ! hold] ( a %>e ( railway /ock is a "p own] ( ! railroad1 & consequ5tly incurs ! risk ( los+ 8 prop]ty4 ,h5ce ! divid5d t he receives on 8 /ock comprises int]e/ on capital plus insurance aga9/ loss4 ,x is usually "o or two p] c5t4 high] ?an ! rate on ! bonds4 ,s9ce ! (fic]s & directors are ! only %>ehold]s :o p]=m any lab\r 9 ! managem5t ( ! railroad1 only !y receive wages ( managem5t4 ,consequ5tly ! gross pr(its are divid$ into int]e/ & divid5ds at fix$ rates1 & fix$ sal>ies4 ,:5 a surplus exi/s above ^! requirem5ts x is n1 z a rule1 di/ribut$ among ! /ockhold]s annually4 ,9 railroads1 !re=e1 & _m o!r corporations1 int]e/ is easily di/+ui%$ f ^? o!r returns ) :i* x is frequ5tly confus$ 9 p>tn]%ips & ent]prises c>ri$ on by individuals4 ,! ,rate ( ,int]e/ ,is !re a s+le rate ( int]e/ ?r\gh\t indu/ry8 ,at fir/ sight ?is "q w\ld seem to dem& a negative answ]4 ,unit$ ,/ates bonds pay ab\t two p] c5t42 banks ab\t ?ree p] c5t42 municipal bonds ab\t f\r p] c5t42 railway bonds ab\t five p] c5t42 ! /ocks ( /able indu/rial corporations ab\t six p] c5t4 net2 real e/ate mortgages f five to sev5 p] c5t42 promissory notes some:at high] rates2 & pawnbrok]s' loans f twelve p] c5t4 upw>ds4 ,moreov]1 ! same k9d ( loans br+s diff]5t rates 9 diff]5t places4 ,= example1 money l5t on ! security ( f>m mortgages yields only ab\t five p] c5t4 9 ! /ates ( ! ,ea/1 b sev5 or eight p] c5t4 on ! ,pacific coa/4 ,^! & simil> v>iations are diff]5ces n s mu* ( int]e/ z ( security1 co/ ( negotiation1 & m5tal attitude4 ,! f>m mortgage pays a high] rate ?an ! gov]nm5t bond p>tly because x is less secure1 p>tly because x involves great] tr\ble ( inve/m5t1 & p>tly because x does n run = s long a "t4 ,= ! same reasons a high] rate ( int]e/ is *>g$ on a promissory note ?an on a bank deposit c]tificate4 ,aga91 ! l[] rates on gov]nm5t bonds & bank deposits are due 9 "s degree to ! peculi> attitude ( t class ( inve/ors ^: sav+s are small 9 am\nt1 :o are n well aw>e ( ! range ( inve/m5t opportunities1 & to :om security & conv5i5ce are exceptionally important consid]ations4 ,if su* p]sons did n exi/ ! rates on gov]nm5t bonds & sav+s deposits w\ld be high] ?an !y actually are4 ,! high] rates 9 a new c\ntry on1 say1 f>m mortgages are likewise due 9 "p to psy*ical peculi>ities4 ,:]e m5 are m speculative & m eag] to borr[ money = indu/rial purposes1 ! dem& = loans is great] relatively to ! supply ?an 9 old] & m cons]vative communities4 ,!re=e1 ! price ( ! loans1 ! rate ( int]e/1 is high]4 ,9 "o s5se x w\ld seem t ! l[e/ ( ! rates cit$ above1 namely1 t on ,unit$ ,/ates bonds1 repres5ts pure int]e/1 & t all ! o!r rates are int]e/ plus some?+ else4 ,nev]!less1 ! sums inve/$ 9 ^! bonds =m b a v small "p ( ! :ole am\nt ( money & capital draw+ int]e/1 & !y come f p]sons :o d n display ! av]age degree ei!r ( bus9ess ability or ( will+ness to take risks4 ,h5ce x is m conv5i5t & m correct to reg>d z ! /&>d rate ( int]e/ 9 any community t :i* is obta9$ on fir/ class indu/rial security1 su* z ! bonds ( railroads & o!r /able corporations1 & mortgages on real e/ate4 ,loans to ^! ent]prises are subject to :at may prop]ly be call$ ! av]age or prevail+ indu/rial risks1 are negotiat$ 9 av]age psy*ical conditions1 & embrace by f> ! great] "p ( all money draw+ int]e/2 consequ5tly ! rate t !y comm& may be look$ ^u z 9 a v real & practical s5se normal4 ,:ile ?is conception ( ! normal rate is 9 a measure conv5tional1 x accords ) popul> usage4 ,x is :at mo/ m5 h 9 m9d :5 !y speak ( ! prevail+ rate ( int]e/4 ,! prevail+ or /&>d rate 9 any community c usually be /at$ ) a suffici5t approa* to precision to be satisfactory = all practical purposes4 ,9 all ! ,ea/]n ,/ates x is n[ ab\t five p] c5t42 9 ! ,middle ,we/ x is some:]e betwe5 five & six p] c5t42 on ! ,pacific coa/ x is betwe5 six & sev5 p] c5t4 ,! supreme c\rt ( ,m9nesota decid$ 9 #ahif t1 9 view ( ! actual rates ( int]e/ !n obta9+1 five p] c5t4 on ! reproduction co/ ( railroads 0 a fairly lib]al return1 & c\ld be adopt$ by ! /ate au?orities 9 fix+ *>ges = c>ry+ freight & pass5g]s4#aaa ,a few ye>s lat] ! ,mi*igan tax commission all[$ ! railroads f\r p] c5t4 on ! reproduction co/ ( _! prop]ty1 on ! gr\nd t inve/m5ts :i* yield$ t rate 9 addition to ! usual tax ( "o p] c5t4 7or five p] c5t4 be=e ! d$uction ( ! tax7 /ood at p> on ! /ock m>ket4#aab ,9 o!r words1 ! prevail+ rate 0 five p] c5t4 ,at ! beg9n+ ( ! ye> #aijg1 ! railroad commission ( ,wiscons9 fix$ six p] c5t4 z ! return to :i* ! /ockhold]s ( railroads 7 entitl$1 because ?is 0 ab\t ! return :i* inve/ors g5]ally 7 able to get on t k9d ( security4 ,9 ! view ( ! ,commission1 ! curr5t rate ( int]e/ on railroad bonds1 & simil> inve/m5ts1 0 ab\t five p] c5t4#aac ,! significance ( ^! decisions by ! public au?orities ( ?ree /ates is f\nd n s mu* 9 ! p>ticul> rates :i* !y sanction$ z 9 ! fact t !y 7 able to det]m9e a /&>d or prevail+ rate4 ,!re=e a /&>d rate exi/s4 ,at ! same "t x is int]e/+ to note t 9 all ?ree /ates ! rate ( indu/rial int]e/ 0 decl>$ to be ab\t ! same1 t is1 five p] c5t4 ,p]haps x is safe to say t1 ?r\gh\t ! great] "p ( ! indu/rial field ( ,am]ica1 five or six p] c5t4 is ! prevail+ rate ( int]e/4 ,:at causes ! rate to be five p] c5t41 or six p] c5t41 or any o!r p] c5t48 ,briefly /at$1 x is ! int]play ( supply & dem&4 ,s9ce int]e/ is a price paid = ! use ( a ?+1 i4e41 capital1 its rate or level is det]m9$ by ! same g5]al =ces t gov]n ! price ( :eat1 or %oes1 or hats1 or any o!r commodity t is b\ght & sold 9 ! m>ket4 ,! rate is five or six p] c5t4 because at t rate ! am\nt ( money (f]$ by l5d]s equals ! am\nt dem&$ by borr[]s4 ,%\ld ! am\nt (f]$ at t rate increase )\t a correspond+ increase 9 ! am\nt dem&$1 ! rate w\ld fall1 j z x w\ld rise "u opposite conditions4 ,supply & dem&1 h[ev]1 are m]ely ! imm$iate =ces4 ,!y are !mselves ! outcome or resultant ( factors m remote4 ,on ! side ( supply1 ! pr9cipal remote =ces :i* regulate ! rate ( int]e/ are3 ! indu/rial res\rces ( ! community1 & ! relative /r5g? ( its habits ( sav+ & sp5d+4 ,on ! side ( dem&1 ! *ief ultimate factors are3 ! productivity ( capital-in/rum5ts1 ! comp>ative int5sity ( ! social desires ( inve/+ & l5d+1 & ! supplies ( l&1 bus9ess ability & lab\r4 ,ea* ( ^! factors ex]cises ^u ! rate ( int]e/ an influ5ce ( its own1 & ea* ( !m may be assi/$ or c\nt]act$ by "o or m ( ! o!rs4 ,precisely :at rate w result f any giv5 condition ( ! factors1 _c be /at$ be=eh&1 = ! factors _c be measur$ 9 su* a way z to provide a basis = ?is k9d ( =eca/4 ,all t c be said is t1 :5 *anges occur on ! side ( ei!r dem& or supply1 !re w be a correspond+ *ange 9 ! rate ( int]e/1 provid$ t no neutralis+ *ange takes place on ! o!r side4 ,,footnotes3 #aaa ,f9al ,report ( ! ,indu/rial ,commission1 pp4 #daj1 #daa4 #aab ,report ( ! ,indu/rial ,commission1 vol4 ,,ix1 p4 #chj4 #aac ,publication ,no4 #cb ( ! ,railroad ,commission ( ,wiscons91 pp4 #afe1 #aff4 ,,*apt] ,x ,,! ,,alleg$ ,,"r ,,( ,,lab\r ,,to ,,! ,,entire ,,product ,,( ,,indu/ry ,9 a prec$+ *apt] we saw t ,m>xian ,socialism is logically deb>r$ f pass+ moral judgm5t ^u any social in/itution or practice4#aad ,if social in/itutions are produc$ necess>ily by socio-economic =ces !y are nei!r morally good nor morally bad4 ,!y are q z unmoral z ra9 & sn[1 v]dure & decay1 tadpoles & elephants4 ,consi/5t ,sociali/s _c1 !re=e1 c5sure on purely e?ical gr\nds ! sy/em ( private capital & int]e/4 ,?is logical requirem5t ( ! !ory ( economic det]m9ism is exemplifi$ 9 mu* ( ! rigidly sci5tific discussions ( ,sociali/s4 ,m>x ma9ta9$ t ! value ( commodities is all det]m9$ & creat$ by lab\r1 & t int]e/ is ! surplus :i* ! lab\r] produces above ! co/ ( 8 keep2 nev]!less ,m>x did n =mally ass]t t ! lab\r] has a moral "r to ! :ole product1 nor t int]e/ is !ft4 ,he set =? 8 !ories ( value & surplus value z positive explanations ( economic facts1 n z an e?ical evaluation ( human actions4 ,8 object 0 to %[ ! causes & nature ( value1 wages1 & int]e/1 n to e/imate ! moral claims ( ! ag5ts ( production1 or ! morality ( ! di/ributive process4 ,9 8 =mal discussion ( ! !ory ( value & ( surplus value1 ,m>x said no?+ t impli$ a belief 9 g5u9e moral responsibility1 or t contradict$ ! pr9ciples ( philosophical mat]ialism & economic det]m9ism4 ,x is1 !re=e1 q errone\s to inf] t1 s9ce ! ,m>xian !ory attributes all value & products to ! action ( lab\r1 ,m>xian ,sociali/s mu/ condemn ! int]e/-tak] z a robb]4 ,nei!r ,m>x nor any o!r ,sociali/ au?ority1 h[ev]1 has always held consi/5tly to ?is purely positive me?od ( economic exposition4 ,:5 !y decl>e t ! lab\r] is exploit$1 t surplus value is fil*$ f him1 t ! capitali/ is a p>asite1 etc41 !y are express+ & convey+ di/9ct moral judgm5ts4 ,9 _! m popul> writ+s ,sociali/ au?ors d n s]i\sly attempt to obs]ve ! logical requirem5ts ( _! necessit>ian philosophy4 ,!y assume ! same e?ical po/ulates1 & give expression to ! same e?ical intuitions z ! man :o believes 9 ! human s\l & free w4#aae ,& ! great majority ( _! foll[]s likewise reg>d ! "q ( di/ribution z a moral "q1 z a "q ( ju/ice4 ,9 _! view ! lab\r] n only creates all value1 b has a j claim to ! :ole product4 ,! ,lab\r ,!ory ( ,value ,?is doctr9e is sometimes =mally bas$ ^u ! ,m>xian !ory ( value1 & is sometimes def5d$ indep5d5tly ( t !ory4 ,9 ! =m] case its gr\ndwork is ab\t z foll[s3 ,by elim9at+ ! factors ( utility & sc>city1 ,m>x f\nd t ! only elem5t common to all commodities is lab\r1 & !n conclud$ t lab\r is ! only possible explanation1 creator1 & det]m9ant ( value4#aaf ,s9ce capital1 t is1 concrete capital1 is a commodity1 its value is likewise det]m9$ & creat$ by lab\r4 ,s9ce x _c create value1 = only lab\r has t p[]1 x c contribute to ! product ( ! productive process 9 :i* x is engag$ only z mu* value z x orig9ally receiv$4 ,s9ce x is only a res]voir ( value1 x _c transf] m value ?an x holds & possesses4 ,9 ! words ( ,m>x1 ! means ( production transf] value to ! new product1 s f> only z dur+ ! lab\r-process !y lose value 9 ! %ape ( ! old use-value4 ,! maximum loss ( value t !y c suff] 9 ! process is pla9ly limit$ by ! am\nt ( ! orig9al value ) :i* !y came into ! process1 or1 9 o!r words1 by ! lab\r "t necess>y = _! production4 ,!re=e1 ! means ( production c ev] add m value to ! product ?an !y !mselves possess indep5d5tly ( ! process 9 :i* !y assi/4 ,h[ev] useful a giv5 k9d ( raw mat]ial1 or a ma*9e1 or o!r means ( production may be1 ?\gh x may co/ #aej p\nds1 or say #ejj days' lab\r1 yet x _c1 "u any circum/ances1 add to ! value ( ! product m ?an #aej p\nds4#aag ,to view ! matt] f ano!r angle3 capital contributes to ! product only suffici5t value to pay = its own reproduction4 ,:51 z is ! normal usage1 ! und]tak] has d$uct$ f ! product suffici5t value or money to replace ! det]iorat$ or worn out ma*9e1 or o!r concrete capital1 all ! rema9+ value 9 ! product is due specifically to lab\r4 ,:51 !re=e1 ! capitali/ goes fur!r1 & appropriates f ! product int]e/ & pr(its1 he takes a "p ( ! value t lab\r has creat$4 ,he seizes ! surplus value :i* lab\r has produc$ 9 excess ( ! wages t x receives4 ,9 e?ical t]ms1 he robs ! lab\r]s ( a "p ( _! product4 ,x is n necess>y to introduce any ext5d$ refutation ( ?is arbitr>y1 unreal1 & fanta/ic argum5t4 ,! !ory t lab\r is ! sole s\rce ( value has few def5d]s to-day4 ,9 ! face ( ! ov]:elm+ criticism :i* has be5 direct$ aga9/ x1 ev5 good ,m>xi/s are =c$ to ab&on x1 or to expla9 x away4#aah ,x may1 h[ev]1 be useful to rec\nt v briefly ! facts :i* disprove ! !ory4 ,lab\r creates "s ?+s :i* h no value1 z wood5 %oes 9 a community t does n desire wood5 %oes2 "s ?+s h value1 ex*ange value1 al?\gh no lab\r has be5 exp5d$ ^u !m1 z l& & m9]als2 ! value ( ?+s is sometimes great]1 sometimes less1 proportionately1 ?an ! lab\r embodi$ 9 !m2 = example1 pa9t+s by ! old ma/]s1 & la/ ye>'s /yles ( mill9]y2 &1 f9ally1 ! true det]m9ants ( value are utility & sc>city4 ,if x be object$ t ,m>x 0 aw>e ( ^! two factors1 ! reply is t he ei!r re/rict$ !m to ! function ( conditions r ?an effici5t causes ( value1 or attribut$ to !m an influ5ce t is inconsi/5t ) 8 ma9 !ory t lab\r is ! sole det]m9ant ( value4 ,inde$1 ! contradictions into :i* ,m>x 0 l$ by ! !ory are its suffici5t refutation4#aai ,) ! de/ruction ( ! lab\r !ory ( value1 ! ,m>xian cont5tion t capital contributes only its own orig9al value to ! product is likewise ov]?r[n4 ,! same conclusion is rea*$ m directly by recall+ ! obvi\s facts ( exp]i5ce t1 s9ce ! jo9t action ( bo? capital & lab\r is requir$ to br+ into be+ e atom ( ! product1 ea* is 9 its own ord] ! cause ( ! :ole product1 & ! proportion ( ! :ole t is specifically due to ! casual influ5ce ( ei!r is z incapable ( det]m9ation z ! procreative contribution ( ei!r p>5t to _! common (fspr+4 ,! productive process c>ri$ on by lab\r & capital is virtually an organic process1 9 :i* ! precise am\nt contribut$ by ei!r factor is unkn[n & unkn[able4 ,9 s f>1 !re=e1 z ! alleg$ "r ( lab\r to ! :ole product is bas$ ^u ! ,m>xian !ory ( value1 x has n a %ad[ ( validity4 ,! ,"r ( ,productivity ,b ! claim is n necess>ily dep5d5t ^u ?is f\ndation4 ,^? ,sociali/s :o h ab&on$ ! lab\r !ory ( value c argue t ! lab\r] 7includ+ ! active director ( indu/ry7 is ! only human produc]1 t ! capitali/ z su* produces no?+1 & consequ5tly has no moral claim to any "p ( ! product4 ,:atev] !ory ( value we may adopt1 or :e!r we adopt any1 we _c annul ! fact t int]e/ does n repres5t lab\r exp5d$ ^u ! product by ! capitali/4 ,nev]!less1 ?is fact does n compel ! conclusion t ! %>e ( ! product n[ tak5 by ! capitali/ belongs ( "r to ! lab\r]4 ,productivity does n ( itself create a "r to ! product4 ,x is n an intr9sic title4 ,t is to say1 a "r to ! product is n inh]5t 9 ! relation betwe5 product & produc]4 ,x is det]m9$ by c]ta9 extr9sic relations4 ,:5 ,br[n makes a pair ( %oes out ( mat]ials t he has /ol51 he has n a "r to ! :ole product2 :5 ,jones turns out a simil> product f mat]ials t he has b\ght1 he becomes ! exclusive own] ( ! %oes4 ,! intr9sic relation ( productivity is ! same 9 bo? cases4 ,x is ! diff]5ce ( extr9sic relation1 namely1 ! relation betwe5 ! produc] & ! mat]ial1 t begets ! diff]5ce betwe5 ! moral claims ( ! two produc]s ^u ! product4 ,! "r ( ! produc] is condition$ by c]ta9 o!r & m fundam5tal relations4 ,:y has ,jones a "r to ! %oes t he has made out ( mat]ials t he has b\ght8 ,n because he ne$s !m2 he is n alone 9 ?is condition4 ,! ultimate reason & basis ( 8 own]%ip is to be s\ght 9 ! practical requirem5ts ( an equitable social di/ribution4 ,unless m5 receive an adequate return = _! lab\r1 !y w n be able to satisfy _! wants 9 a regul> & suffici5t mann]4 ,if !y are =c$ to lab\r = o!rs )\t comp5sation1 !y are depriv$ ( ! opportunity to develop _! p]sonality4 ,!y are treat$ z m]e in/rum5ts to ! welf>e ( be+s :o are n _! sup]iors1 b _! moral & juridical equals4 ,_! intr9sic wor? & sacr$ness ( p]sonality is outrag$1 _! ess5tial equality ) _! fell[s is disreg>d$1 & _! inde/ructible rights are violat$4 ,on ! o!r h&1 :5 a produc]1 su* z ,jones1 gets possession ( 8 product1 he subord9ates no human be+ to himself1 deprives no man ( ! opportunity to p]=m remun]ative lab\r1 nor appropriates an unreasonable %>e ( ! common b\nty ( ! e>?4 ,he has a "r to 8 product because ?is is "o ( ! reasonable me?ods ( di/ribution4 ,9 fact1 x is ! exig5cies ( reasonable di/ribution t con/itute ! fundam5tal ju/ification ( e title ( own]%ip4 ,! title ( pur*ase by :i* a man claims ! hat t he we>s2 ! title ( inh]itance by :i* a son claims ! h\se t once belong$ to 8 fa!r2 ! title ( contract ?r\gh :i* a lab\r] gets wages1 a m]*ant prices1 & a l&lord r5t1--are all valid simply because !y are reasonable devices = enabl+ m5 to obta9 ! goods ( ! e>? = ! satisfaction ( _! wants4 ,all titles ( prop]ty1 productivity includ$1 are conv5tional in/itutions :i* reason & exp]i5ce h %[n to be conducive to human welf>e4 ,none ( !m possesses intr9sic or metaphysical validity4#abj ,!re=e1 ! ,sociali/ _c e/abli% ! "r ( lab\r to ! full product ( indu/ry until he proves t ?is s-call$ "r c\ld be r$uc$ to practice consi/5tly ) individual & social welf>e4 ,9 o!r words1 he mu/ %[ t to give ! entire product to ! lab\r] w\ld be a reasonable me?od ( di/ribution4 ,n[ ! arrangem5t by :i* ! ,sociali/ proposes to aw>d ! :ole product ( lab\r is ! collective own]%ip & op]ation ( ! means ( production1 & ! social di/ribution ( ! product4 ,if ?is sy/em w\ld n enable ! lab\r] & ! memb]s ( society g5]ally to satisfy _! wants to bett] advantage ?an is possible "u ! pres5t sy/em1 ! cont5tion t ! lab\r] has a "r to ! entire product ( indu/ry falls to ! gr\nd4 ,! "q w be consid]$ 9 ! foll[+ *apt]4 ,,footnotes3 #aad ,cf4 ,engels1 ,socialism3 ,utopian & ,sci5tific1 pp4 #de1 #df2 & ,hillquit-,ryan1 ,socialism3 ,promise or ,m5ace1 #ajc1 #ajd1 #adc-ade4 #aae ,cf4 ,hillquit-,ryan1 op4 cit41 pp4 #ge1 #gf4 #aaf ,capital1 pp4 #a-i4 #aag ,op4 cit41 p4 #aag2 ,humboldt ,edition4 #aah ,skelton1 ,socialism3 ,a ,critical ,analysis1 pp4 #aba1 #abb4 #aai ,cf4 ,skelton1 loc4 cit4 #abj ,! exagg]at$ claims made on behalf ( social productivity 9 ! matt] ( l& values h be5 exam9$ 9 a previ\s *apt]4 ,simil> exagg]ations ) reg>d to capital w be consid]$ 9 *apt] xii4 ,,*apt] ,,xi ,,! ,,sociali/ ,,s*eme ,,( ,,indu/ry ,nev] has our p>ty told ! work+man ab\t a ',/ate ( ! future1' nev] 9 any way ?an z a m]e utopia4 ,if anybody says3 ',i picture to myself society aft] our programme has be5 realis$1 aft] wage lab\r has be5 aboli%$1 & ! exploitation ( m5 has ceas$1 9 su* & su* a mann]1--' well & good2 ideas are free1 & ev]ybody may conceive ! ,sociali/ ,/ate z he pleases4 ,:oev] believes 9 x may d s2 :oev] does n1 ne$ n4 ,^! pictures are b dreams1 & ,social ,democracy has nev] und]/ood !m o!rwise4#aba ,su* is ! (ficial attitude ( ,socialism t[>d descriptions ( its contemplat$ indu/rial organisation4 ,! p>ty has nev] drawn up nor approv$ any ( ! v>i\s outl9es ( ?is sort :i* h be5 def5d$ by individual ,sociali/s4 ,x ma9ta9s t x _c anticipate ev5 ! ess5tial factors 9 ! op]ation ( a social & indu/rial sy/em :i* w diff] s widely f ! "o t we h to-day1 & :i* w be s pr(\ndly det]m9$ by ev5ts t are 9 ! nature ( ! case impossible to progno/icate4 ,sociali/ ,inconsi/5cy ,f ! viewpo9t ( all b conv9c$ ,sociali/s1 ?is position is indef5sible4 ,we are ask$ to believe t ! collective own]%ip & op]ation ( ! means ( production w\ld be m j & b5eficial ?an ! pres5t plan ( private own]%ip & op]ation4 ,yet ! ,sociali/ p>ty refuses to tell u h[ ! s*eme w\ld br+ ab\t ^! results2 refuses to give u1 ev5 9 outl9e1 a picture ( ! ma*9e at "w4 ,z reasonably might we be expect$ to turn ! direction ( indu/ry ov] to a ,rockefell] or a ,morgan1 mak+ an act ( fai? 9 _! effici5cy & fairness4 ,we are 9 ! position ( a man :o %\ld be advis$ to demoli% an unsatisfactory h\se1 )\t receiv+ any solid assurance t ! propos$ new "o w\ld be z good4 ,to our reque/s = specific in=mation ab\t ! work+ ( ! new indu/rial ord] ! ,sociali/s1 z a rule1 answ] 9 t]ms ( prophesi$ results4 ,!y leave u 9 ! d>k conc]n+ ! causes by :i* ^! wond]ful results are to be produc$4 ,f ! viewpo9t ( ! confirm$ ,sociali/1 h[ev]1 ?is failure to be specific is n at all unreasonable4 ,he c h fai? 9 ! ,sociali/ sy/em )\t kn[+ be=eh& h[ x w "w4 ,he believes 9 its efficacy because he believes t x is inevitable4 ,9 ! words ( ,kautsky1 :at is prov$ to be inevitable is prov$ n only to be possible1 b to be ! only possible outcome4#abb ,! ,sociali/ believes t 8 s*eme is inevitable because he ?9ks t x is necess>ily includ$ 9 ! outcome ( economic & social evolution4 ,nei!r ! premises nor ! conclusion ( ?is reason+ is valid4 ,! doctr9es ( economic det]m9ism1 ! class /ruggle1 ! conc5tration ( capital1 ! disappe>ance ( ! middle classes1 ! progressive paup]isation ( ! work+ classes1 & all ! o!r t5ets ( ! ,sociali/ philosophy1 h be5 ?or\ghly discr$it$ by ! facts ( psy*ology1 ! exp]i5ce ( ! la/ half c5tury1 & ! pres5t tr5d ( indu/rial & social =ces4#abc ,ev5 if ! ,sociali/ outcome 7 inevitable1 x w\ld n necess>ily be an improvem5t on ! pres5t sy/em4 ,x might illu/rate ! pr9ciple ( retrogression4 ,s9ce we _c make an act ( fai? 9 ei!r ! inevitabl5ess or ! efficacy ( ! ,sociali/ indu/rial s*eme1 we are compell$ to submit x to ! ord9>y te/s ( exam9ation & criticism4 ,we mu/ try to see :at w\ld be ! ess5tial /ructure1 elem5ts1 & op]ation ( a sy/em 9 :i* ! means ( production 7 own$ & manag$ collectively1 & ! product socially di/ribut$4 ,9 attempt+ to describe ! sy/em1 we %all be guid$ by :at seems to be inh]5tly necess>y to x1 & by ! preval5t conception ( x among pres5t day ,sociali/s4 ,9 ?is connection we h to obs]ve t "s ( ! criticisms ( ! ,sociali/ ord] attribute to x elem5ts t are n ess5tial1 nor any long] dem&$ by ! au?oritative spokesm5 ( ! movem5t2 = example1 complete confiscation ( capital1 compulsory assignm5t ( m5 to ! diff]5t indu/rial tasks1 equality ( remun]ation1 ! use ( lab\r *ecks in/ead ( money1 ! socialisation ( all capital d[n to ! smalle/ tool1 & collective own]%ip ( homes4 ,expropriat+ ! ,capitali/s ,! fir/ problem confront+ a ,sociali/ adm9i/ration w\ld be ! me?od ( gett+ possession ( ! in/rum5ts ( production4 ,9 ! e>ly ye>s ( ! ,sociali/ movem5t1 mo/ ( its adh]5ts seem$ to fav\r a policy ( outright confiscation4 ,pr(essor ,ne>+ e/imates ! total prop]ty income n[ paid 9 ! ,unit$ ,/ates z1 well above ! six-billion-doll> m>k4#abd ,7 ! ,sociali/ ,/ate to seize all l& & capital )\t comp5sation1 x c\ld conceivably transf] m ?an six billion doll>s annually f l&[n]s & capitali/s to ! community4 ,n all ( x1 h[ev]1 w\ld be available = div]sion to ! lab\r]s4 ,accord+ to ! computations ( ,pr(essor ,k+1 ab\t two billion doll>s 7 9 #aiaj sav$ & conv]t$ into capital4#abe ,a progressive ,sociali/ rgime w\ld want to appropriate at lea/ t sum = ! r5ewal & increase ( ! in/rum5ts ( production4 ,consequ5tly1 x w\ld h only f\r billion doll>s to add to ! pres5t total income ( lab\r4 ,?is w\ld be equival5t to #dc4ej = e p]son 9 ! ,unit$ ,/ates4 ,desirable z w\ld be su* an addition to ! remun]ation ( lab\r1 x c\ld nev] be realis$ ?r\gh ! process ( confiscation4 ,! own]s ( l& & capital w\ld be suffici5tly p[]ful to defeat any su* simple s*eme ( sett+ up ! collectivi/ commonweal?4 ,!y con/itute probably a majority ( ! adults ( our population1 & _! economic advantages w\ld make !m mu* /rong] relatively ?an _! numb]s4#abf ,e?ically ! policy ( confiscation w\ld be1 on ! :ole1 %e] robb]y4 ,to be sure1 n all own]s ( l& & capital h a valid claim to all _! possessions1 b practically all ( !m hold ! great] "p ( _! weal? by "s k9d ( j title4 ,mu* l& & capital t 0 orig9ally acquir$ by unju/ means has become morally legitimatis$ by ! title ( prescription4 ,! majority ( pres5t day ,sociali/s seem to advocate at lea/ p>tial comp5sation4#abg ,b ?is plan does n seem to (f] any consid]able advantage ov] complete confiscation4 ,z reg>ds morality1 x w\ld diff] only 9 ! degree ( its inju/ice2 z reg>ds exp$i5cy1 x w\ld be at be/ ( d\btful efficacy4 ,if ! capitali/s 7 giv5 only a small fraction ( ! value ( _! hold+s !y w\ld oppose ! *ange ) q z mu* det]m9ation z ?\gh !y 7 (f]$ no?+2 if !y 7 paid almo/ ! full value ( _! possessions !re w\ld be no sub/antial ga9 to ! community f ! transf]2 if !y 7 comp5sat$ at a figure some:]e betwe5 ^! two extremes _! resi/ance w\ld /ill be m co/ly to ! ,/ate ?an ! extra am\nt requir$ to make full comp5sation4 ,f9ally1 if full comp5sation 7 (f]$ x w\ld h to take ! =m ( gov]nm5t obligations1 securities1 or bonds4 ,if ^! did n be> int]e/ ! great majority ( capital own]s w\ld reg>d ! s*eme z p>tial & consid]able confiscation1 & w\ld fight x ) det]m9ation & effectiv5ess4 ,if ! ,/ate b\nd itself to pay int]e/ on ! bonds x w\ld probably f9d itself giv+ ! dispossess$ capitali/s z high a rate ( return on _! capital1 z l>ge a %>e ( ! national product1 z !y receive "u ! pres5t sy/em4 ,consequ5tly1 ! expropriation ( ! capitali/s w\ld br+ no direct & pecuni>y ga9 to ! lab\r+ classes4 ,inde$1 ! latt] w\ld suff] positive loss by ! *ange1 ow+ to ! fact t ! ,/ate w\ld be requir$ to )draw f ! national product a consid]able am\nt = ! ma9t5ance1 r5ewal1 & expansion ( ! in/rum5ts ( production4 ,at pres5t ! capitali/ class p]=ms ! great] "p ( ?is function ?r\gh ! re9ve/m5t ( ! incomes t x receives 9 ! =m ( int]e/ & r5t4 ,! av]age ,sociali/ entirely ignores ?is capitali/ic s]vice1 :5 he draws 8 pessimi/ic picture ( ! va/ %>e ( ! national product :i* n[ goes to idle capitali/s4 ,s f> z ! l>g] capitali/ incomes are conc]n$2 t is1 ^? 9 excess ( tw5ty-five ?\s& doll>s annually1 x is probable t ! great] "p is n consum$ by ! receiv]s1 b is conv]t$ into socially necess>y capital in/rum5ts4 ,s9ce ?is w\ld n be p]mitt$ 9 a ,sociali/ ord]1 ! capitali/s w\ld /rive to consume ! :ole ( ! incomes receiv$ f ! public securities1 & ! ,/ate w\ld be compell$ to provide ! requir$ new capital out ( ! curr5t national product4 ,9 a ^w1 society w\ld h to give ! capitali/s z mu* z x does at pres5t1 & to )hold f ! lab\r]s = new capital an imm5se sum :i* is n[ furni%$ by ! capitali/s4 ,x is und\bt$ly true t ! ri*e/ capitali/s w\ld be unable to exp5d ! :ole ( _! incomes ^u !mselves & _! families4 ,if !y turn$ a consid]able "p ( x ov] to ! ,/ate1 ! surr5d]$ sum w\ld be available z capital1 !reby r$uc+ ! am\nt t ! ,/ate w\ld ne$ to take out ( ! national product = ?is purpose4 ,7 all ^? possess+ incomes 9 excess ( fifty ?\s& doll>s p] family to give up all above t am\nt1 ! total ?us accru+ to ! ,/ate w\ld be a little m ?an "o billion doll>s4#abh ,b ?is w\ld be only "o-half ! requir$ new capital4 ,a "p ( ! additional "o billion is n[ provid$ out ( wages & sal>ies1 b ! great] "p probably comes out ( r5t & int]e/4 ,"u ,socialism ?is latt] portion w\ld h to be d$uct$ f t "p ( ! national product :i* at pres5t goes to ! work]s & is consum$ by !m4 ,h5ce !y w\ld und]go a loss ( sev]al hundr$ million doll>s4 ,"o reply to ?is difficulty is t ! total product ( indu/ry w\ld be mu* increas$ "u ,socialism4 ,und\bt$ly an effici5t organisation ( indu/ry on collectivi/ l9es w\ld be able to effect economies by comb9+ manufactur+ plants1 di/ributive conc]ns1 & transportation sy/ems1 & by r$uc+ unemploym5t to a m9imum2 b x c\ld n possibly make ! enorm\s economies t are promis$ by ! ,sociali/s4 ,! ass]tion t "u ,socialism m5 w\ld be able to provide abundantly = all _! wants on a basis ( a work+ day ( f\r1 or ev5 two1 h\rs is s$uctive & int]e/+1 b x has no support 9 ! asc]ta9able facts ( indu/rial res\rces4 ,ev5 if ! ,sociali/ organisation 7 op]at+ ) a fair degree ( effici5cy1 ! ga9s t x c\ld effect ov] ! pres5t sy/em w\ld probably n m ?an (fset ! social losses result+ f increas$ consumption by ! comp5sat$ capitali/s4 ,b ! propos$ indu/rial organisation w\ld n op]ate ) a fair degree ( effici5cy4 ,accord+ to pres5t ,sociali/ ?\ght1 indu/ries t are national 9 scope1 su* z ! manufacture ( petroleum1 /eel1 & tobacco1 w\ld be c>ri$ on "u national direction1 :ile ^? t suppli$ only a local m>ket1 su* z laundries1 bak]ies1 & retail /ores1 w\ld be manag$ by ! municipalities4 ,?is division ( control w\ld be und\bt$ly wise & necess>y4 ,moreov]1 ! majority ( ,sociali/s no long] dem& t all tools & all indu/ries %\ld be br\ght "u collective or gov]nm5tal direction4 ,v small conc]ns :i* employ$ no hir$ lab\r1 or at mo/ "o or two p]sons1 c\ld rema9 "u private own]%ip & op]ation1 :ile ev5 l>g] ent]prises might be c>ri$ on by co-op]ative associations4#abi ,nev]!less ! attempt to organise & op]ate collectively ! indu/ries ( ! c\ntry1 ev5 ) ^! limitations1 w\ld enc\nt] c]ta9 insup]able ob/acles4 ,^! w be consid]$ "u ! g5]al heads ( ineffici5t indu/rial lead]%ip1 ineffici5t lab\r1 & int]f]5ce ) individual lib]ty4 ,ineffici5t ,indu/rial ,lead]%ip ,"u ,socialism ! bo>ds ( directors or commissions :i* ex]cis$ supreme control 9 ! v>i\s indu/ries1 w\ld h to be *os5 ei!r by ! g5]al popul> vote1 by ! gov]nm5t1 or by ! work]s 9 ea* p>ticul> indu/ry4 ,! fir/ me?od may be at once exclud$ f consid]ation4 ,ev5 n[ ! numb] ( (ficials *os5 directly by ! p is f> too l>ge2 h5ce ! widespread agitation = ! %ort ballot4 ,public op9ion is com+ to realise t ! vot]s %\ld be requir$ to select only a few important (ficials1 ^: qualifications %\ld be g5]al r ?an te*nical1 & !re=e easily recognis$ by ! masses4 ,^! supreme function>ies %\ld h ! p[] ( fill+ all adm9i/rative (fices1 & all positions dem&+ exp]t or te*nical ability4 ,if ! task ( *oos+ adm9i/rative exp]ts _c be safely left to ! mass ( ! vot]s at pres5t1 x c]ta9ly ought n to be assign$ to !m "u ,socialism1 :5 ! numb] & qualifications ( ^! function>ies w\ld be indef9itely increas$4 ,if ! bo>ds ( indu/rial directors 7 select$ by ! gov]nm5t1 t is1 by ! national & municipal au?orities1 ! result w\ld be indu/rial ineffici5cy & an intol]able bureaucracy4 ,no body ( (ficials1 :e!r legislative or executive1 w\ld possess ! v>i$1 ext5sive1 & specific k requir$ to pick out effici5t adm9i/rative commissions = all ! indu/ries ( ! c\ntry or ! city4 ,& no gr\p ( political p]sons c\ld safely be entru/$ ) su* trem5d\s p[]4 ,x w\ld enable !m to dom9ate ! indu/rial z well z ! political life ( ! nation or ! municipality1 to e/abli% a bureaucracy t w\ld be impregnable = a long p]iod ( ye>s1 & to revive all ! conceivable evils ( gov]nm5tal absolutism4 ,! ?ird me?od is app>5tly ! "o n[ fav\r$ by mo/ ,sociali/s4 ,! work]s 9 ea* indu/ry may p]iodically select ! manag+ au?ority1 says ,morris ,hillquit4#acj ,ev5 if ! work]s 7 z able z ! /ockhold]s ( a corporation to select an effici5t gov]n+ bo>d1 !y w\ld be mu* less likely to *oose m5 :o w\ld insi/ on h>d & effici5t "w f all subord9ates4 ,! memb]s ( a private corporation h a /rong pecuni>y int]e/ 9 select+ directors :o w secure ! maximum ( product at ! m9imum ( co/1 :ile ! employs 9 a ,sociali/ indu/ry w\ld want manag+ au?orities :o 7 will+ to make work+ conditions z easy z possible4 ,! dep5d5ce ( ! bo>ds ( directors ^u ! mass ( ! work]s1 & ! lack ( adequate pecuni>y motives1 w\ld r5d] _! managem5t mu* less effici5t & progressive ?an t ( private ent]prises4 ,9 ! rules t !y w\ld make = ! adm9i/ration ( ! indu/ry & ! gov]nm5t ( ! lab\r =ce1 9 _! selection ( subord9ate (fic]s1 su* z sup]9t5d5ts1 g5]al manag]s1 & =em51 & 9 all ! o!r details ( managem5t1 !y w\ld h always be=e !m ! abid+ fact t _! au?ority 0 d]iv$ f & dep5d5t ^u ! votes ( ! majority ( ! employs4 ,_! supreme consid]ation w\ld be to conduct ! indu/ry 9 su* a way z to satisfy ! m5 :o elect$ !m4 ,h5ce !y w\ld /rive to ma9ta9 an adm9i/ration :i* w\ld p]mit ! mass ( ! lab\r =ce to "w leisurely1 to be provid$ ) ! mo/ exp5sive conditions ( employm5t1 & to be immune f dis*>ge except 9 r>e & flagrant cases4 ,ev5 if ! memb]s ( ! direct+ bo>ds 7 suffici5tly c\rage\s or suffici5tly consci5ti\s to exact reasonable & effici5t s]vice f all _! subord9ates & all ! work]s1 !y w\ld n h ! necess>y pecuni>y motives4 ,_! sal>ies w\ld be fix$ by ! gov]nm5t1 & 9 ! nature ( ?+s c\ld n be promptly adju/$ to rew>d effici5t & to puni% ineffici5t managem5t4 ,s long z _! adm9i/ration ( indu/ry ma9ta9$ a c]ta9 r\t9e level ( m$iocrity1 !y w\ld h no fe> ( be+ remov$2 s9ce !y w\ld be sup]vis$ & paid by public (ficials :o w\ld h nei!r ! extraord9>y capacity nor ! necess>y inc5tive to recognise & rew>d promptly effici5t managem5t1 !y w\ld lack ! p[]ful /imulus :i* is provid$ by ! hope ( ga94 ,9 ! l>ge private corporations1 ! t5ure ( ! bo>ds ( directors dep5ds n ^u ! work]s b ^u ! /ockhold]s1 ^: ma9 int]e/ is to obta9 a maximum ( product at a m9imum ( co/1 & :o w employ & dis*>ge1 rew>d & puni%1 accord+ z ?is end is atta9$4 ,moreov]1 ! memb]s ( ! bo>ds1 & ! executive (fic]s g5]ally1 are !mselves f9ancially int]e/$ 9 ! bus9ess & 9 ! ma9t5ance ( ! policy dem&$ by ! o!r /ockhold]s4 ,all ! subord9ate (fic]s1 su* z dep>tm5t manag]s1 sup]9t5d5ts1 =em51 etc41 w\ld exemplify ! same abs5ce ( effici5cy4 ,kn[+ t !y mu/ c>ry out ! prud5t policy ( ! bo>d ( directors1 !y w\ld be sl[ to puni% %irk+ or to dis*>ge incompet5ts4 ,realis+ t ! bo>d ( directors lack$ ! inc5tive to make promotions promptly = effici5t s]vice1 or to dis*>ge promptly = ineffici5t s]vice1 !y w\ld devote _! ma9 en]gies to ! task ( hold+ _! positions ?r\gh a policy ( indiff]5t & r\t9e adm9i/ration4 ,inv5tion & progress w\ld likewise suff]4 ,m5 :o 7 capable ( devis+ new ma*9es1 new processes1 new me?ods ( comb9+ capital & lab\r1 w\ld be sl[ to conv]t _! pot5cies into action4 ,!y w\ld be pa9fully aw>e t ! _s ( in]tia & r\t9e prevail+ ?r\gh\t ! indu/rial & political organisation w\ld prev5t _! ef=ts f receiv+ quick recognition & adequate rew>ds4 ,inv5tors ( me*anical devices p>ticul>ly w\ld be depriv$ ( ! /imulus :i* !y n[ f9d 9 ! hope ( indef9itely l>ge ga9s4 ,bo>ds ( directors1 g5]al manag]s1 & o!r p]sons ex]cis+ indu/rial au?ority w\ld be v sl[ to introduce new & m effici5t f9ancial or te*nical me?ods :5 !y _h no c]ta9ty t !y w\ld receive adequate rew>d 9 ! =m ( ei!r promotion or money comp5sation4 ,!y w\ld see no suffici5t reason = ab&on+ ! e/abli%$ & pleasant policy ( r\t9e me?ods & unprogressive managem5t4 ,ineffici5t ,lab\r ,! same _s ( ineffici5cy & m$iocrity w\ld p]meate ! rank & file ( ! work]s4 ,inde$1 x w\ld op]ate ev5 m /rongly among !m ?an among ! (fic]s & sup]iors2 = _! intellectual limitations & ! nature ( _! tasks w\ld make !m less responsive to o!r ?an mat]ial & pecuni>y motives4 ,!y w\ld desire to foll[ ! l9e ( lea/ resi/ance1 to lab\r 9 ! mo/ pleasant conditions1 to r$uce irksome toil to a m9imum4 ,s9ce ! great bulk ( _! tasks w\ld necess>ily be me*anical & monoton\s1 !y w\ld dem& ! %orte/ possible work+ day1 & ! mo/ leisurely rate ( work+ spe$4 ,& because ( _! num]ical /r5g? !y w\ld h ! p[] to en=ce ?is policy ?r\gh\t ! field ( indu/ry4 ,!y w\ld h ! necess>y & suffici5t votes4 ,9 a g5]al way !y might1 inde$1 realise t ! practice ( univ]sal %irk+ & laz9ess mu/ soon] or lat] result 9 su* a dim9ution ( ! national product z to cause !m great h>d%ip1 b ! work]s 9 ea* indu/ry w\ld hope t ^? 9 all ! o!rs w\ld be m effici5t2 or d\bt t a bett] example set by !mselves w\ld be imitat$ by ! work]s 9 o!r indu/ries4 ,!y w\ld n be ke5 to give up ! c]ta9ty ( easy work+ conditions = ! remote possibility ( a l>g] national product4 ,attempt$ ,replies to ,objections ,all ! attempts made by ,sociali/s to answ] or expla9 away ! =ego+ difficulties may be r$uc$ to two3 ! a*ievem5ts ( gov]nm5t ent]prises 9 our pres5t sy/em2 & ! assum$ efficacy ( altruism & public hon\r 9 a rgime ( ,socialism4 ,"u ! fir/ head appeal is made to su* publicly own$ & manag$ conc]ns z ! po/ (fice1 railroads1 telegraphs1 telephones1 /reet railways1 wat] works1 & light+ plants4 ,x is probably true t all ^! ent]prises are on ! :ole c>ri$ on ) bett] results to ! public ?an if !y 7 9 private h&s4 ,x is likewise probable t ^! & all o!r public utility monopolies w soon] or lat] be tak5 ov] by ! ,/ate 9 all advanc$ c\ntries4 ,ev5 if ?is %\ld prove 9 all cases to be a bett] arrangem5t f ! viewpo9t ( ! g5]al public welf>e ?an private own]%ip & managem5t1 ! fact w\ld con/itute no argum5t = a ,sociali/ organisation ( all indu/ry4 ,9 ! fir/ place1 ! effici5cy ( lab\r1 managem5t1 & te*nical organisation is g5]ally l[] 9 public ?an 9 private ent]prises1 & ! co/ ( op]ation high]4 ,despite ^! defects1 gov]nm5t own]%ip ( public utilities1 su* z /reet railways & light+ conc]ns1 may be socially pref]able because ^! indu/ries are monopolies4 ,inasmu* z _! *>ges & s]vices _c be regulat$ by ! automatic action ( competition1 ! only alt]native to public own]%ip is public sup]vision4 ,inasmu* z ! latt] is (t5 incapable ( secur+ satisfactory s]vice at fair prices1 public own]%ip & managem5t becomes on ! :ole m conducive to social welf>e4 ,9 o!r words1 ! losses ?r\gh ineffici5t op]ation are m ?an (fset by ! ga9s f bett] s]vice & l[] *>ges4 ,?ree c5t f>es & adequate s]vice on an ineffici5tly manag$ municipal /reet railway are pref]able to five c5t f>es on a privately own$ /reet railway ^: managem5t is sup]ior4 ,on ! o!r h&1 all ^? indu/ries :i* are n natural monopolies c be prev5t$ f practis+ extortion ^u ! public ?r\gh regulat$ competition4 ,9 !m1 !re=e1 ! advantages ( private op]ation1 ( :i* competition itself is n ! lea/1 %\ld be reta9$4 ,9 ! second place1 practically all ! public s]vice monopolies are simpl] 9 /ructure1 m r\t9e 9 op]ation1 & m mature 9 organisation & effici5cy ?an ! o!r indu/ries4 ,! degree ( manag]ial ability requir$1 ! necessity ( exp]im5t+ ) new me?ods & processes1 & ! opportunity ( introduc+ fur!r improvem5ts 9 organisation are relatively less4 ,n[1 x is precisely 9 ^! respects t private has %[n itself sup]ior to public op]ation4 ,initiative1 inv5tiv5ess1 & eag]ness to effect economies & increase pr(its are ! qualities 9 :i* private managem5t excels4 ,:5 ! nature & maturity ( ! conc]n h r5d]$ ^! qualities relatively unimportant1 public managem5t c exemplify a fair degree ( effici5cy4 ,9 ! ?ird place1 ! ability ( ! ,/ate to op]ate a few ent]prises1 does n prove t x c\ld repeat ! p]=mance ) an equal degree ( success 9 all indu/ries4 ,i c drive two horses1 b ,i c\ld n drive tw5ty-two4 ,no matt] h[ sci5tific ! organisation & dep>tm5talisation ( indu/ries "u ,socialism1 ! f9al control ( & responsibility = all ( !m w\ld re/ ) "o organ1 "o au?ority1 namely1 ! city 9 municipal indu/ries1 & ! nation 9 indu/ries hav+ national scope4 ,?is w\ld prove too great a task1 too heavy a burd51 = any body ( (ficials1 = any gr\p ( human be+s4 ,f9ally1 x mu/ be kept 9 m9d t ! publicly op]at$ utilities are subject cont9u\sly to ! indirect competition ( private managem5t4 ,by f> ! great] "p ( indu/ry is n[ "u private control1 :i* sets ! pace = effici5t op]ation 9 a hundr$ p>ticul>s4 ,z a consequ5ce1 comp>isons are /eadily provok$ betwe5 public & private managem5t1 & ! =m] is subject to con/ant criticism4 ,! manag]s ( ! ,/ate conc]ns are /imulat$ & practically compell$ to emulate ! success ( private managem5t4 ,?is factor is probably m effective 9 secur+ effici5cy 9 public indu/ries ?an all o!r causes put toge!r4 ,9 ! words ( ,pr(essor ,skelton3 ,a limit$ degree ( public own]%ip succe$s simply because x is a limit$ degree1 succe$s because private indu/ry1 9 individual =ms or 9 ! socialis$ jo9t /ock =m1 dom9ates ! field z a :ole4 ,x is private indu/ry t provides ! capital1 private indu/ry t tra9s ! m5 & tries out ! me?ods1 private indu/ry t sets ! pace1 &--n ! lea/ ( its s]vices--private indu/ry t provides ! ev]-possible outlet ( escape4#aca ,! ,sociali/ expectation t altrui/ic s5tim5ts & public hon\r w\ld induce all indu/rial lead]s & all ord9>y work]s to ex]t !mselves z effectively z !y n[ d = ! sake ( money1 is bas$ ^u ! v %all[ fallacy t :at is true ( a few m5 may v readily become true ( all m54 ,!re are1 inde$1 p]sons 9 e walk ( life :o "w fai?fully "u ! influ5ce ( ! high] motives1 b !y are & always h be5 ! exceptions 9 _! respective classes4 ,! great majority h be5 affect$ only feebly1 int]mitt5tly1 & on ! :ole ineffectively by ei!r love ( _! k9d or ! hope ( public approval4 ,a ,sociali/ ord] c\ld g5]ate no =ces :i* w\ld be z productive ( unselfi% conduct z ! motives t are drawn f religion4 ,hi/ory %[s no?+ comp>able ei!r 9 ext5t or int5sity to ! record ( self surr5d] & s]vice to ! neighb\r :i* are due to ! latt] influ5ce4 ,yet religion has nev] be5 able1 ev5 9 ! p]iods & places mo/ ?or\ghly dom9at$ by ,*ri/ianity1 to induce m ?an a small m9ority ( ! population to adopt t life ( altruism :i* w\ld be requir$ ( ! great majority "u ,socialism4 ,moreov]1 ! efficacy ( ! high] motives is mu* great] among m5 devot$ to sci5tific1 intellectual1 & religi\s pursuits ?an 9 ei!r ! lead]s or ! rank & file engag$ 9 indu/rial occupations4 ,! cause ( ?is diff]5ce is to be s\ght 9 ! v>y+ nature ( ! two classes ( activity3 ! fir/ necess>ily develops an appreciation ( ! high] goods1 ! ?+s ( ! m9d & ! s\l2 ! second compels ! att5tion ( m5 to re/ ^u matt]1 ^u ! ?+s t appeal to ! s5ses1 ^u ! ?+s t are measurable 9 t]ms ( money4 ,!re is a special fallacy und]ly+ ! emphasis plac$ by ,sociali/s on ! p[] ( public hon\r4 ,x consi/s 9 ! failure to p]ceive t ?is good decl9es 9 efficacy accord+ z ! numb] ( its recipi5ts increases4 ,ev5 if all ! indu/rial population 7 will+ to "w z h>d = public approval z !y n[ d = money1 ! results expect$ by ,sociali/s w\ld n be =?com+4 ,public recognition ( unselfi% s]vice is n[ available 9 relatively great measure because ! p]sons qualify+ = x are relatively few4 ,!y easily /& out conspicu\s among _! fell[s4 ,let _! numb]s va/ly increase1 & unselfi%ness w\ld become commonplace4 ,x w\ld no long] comm& popul> recognition1 save 9 ^? :o display$ x 9 exceptional or h]oic measure4 ,! public w\ld n h ! "t nor take ! tr\ble to notice & hon\r adequately e floor walk]1 retail cl]k1 factory op]ative1 /reet clean]1 agricultural lab\r]1 dit* digg]1 etc41 :o might become a c&idate = su* recognition4 ,:5 ! ,sociali/s po9t to su* examples ( dis9t]e/$ public s]vice z t ( ,colonel ,goe?als 9 build+ ! ,panama ,canal1 !y conf\nd ! exceptional ) ! av]age4 ,!y assume t1 s9ce an exceptional man p]=ms an exceptional task f high motives1 all m5 c be got to act likewise 9 all k9ds ( op]ations4 ,!y =get t ! ,panama ,canal pres5t$ opportunities ( self satisfy+ a*ievem5t & fame :i* d n occur once 9 a ?\s& ye>s2 t ! traditions & tra9+ ( ! army h dur+ _m c5turies delib]ately & consi/5tly aim$ & t5d$ to produce an exceptionally high /&>d ( hon\r & dis9t]e/$ness2 t1 ev5 s1 ! majority ( army (fic]s h n 9 _! civil assignm5ts %[n ! same degree ( fai?fulness to ! public welf>e z ,colonel ,goe?als2 t ! ,canal 0 built "u a rgime ( b5evol5t despotism1 :i* plac$ no reliance ^u ! social m9d$ness ( ! subord9ate work]s2 & t ! latt]1 f> f %[+ any desire to qualify z altrui/s or public b5efactors1 dem&$ & receiv$ mat]ial recognition 9 ! =m ( wages1 p]quisites1 & gratuities :i* greatly surpass$ ! remun]ation receiv$ by any o!r lab\r =ce 9 hi/ory4#acb ,9 a ^w1 :]ev] 9 ! con/ruction ( ! ,canal notable dis9t]e/$ness or appreciation ( public hon\r 0 %[n1 ! circum/ances 7 exceptional2 :]e ! situation 0 ord9>y1 ! ,canal build]s 7 unable to rise above ! ord9>y motives ( selfi% advantage4 ,b5ea? all ! ,sociali/ argum5t on ?is subject lies ! assumption t ! attitude ( ! av]age man t[>d ! high] motives c by "s my/]i\s process be completely revolutionis$4 ,?is is contr>y to all exp]i5ce1 & to all reasonable probability4 ,only a small m9ority ( m5 h ev]1 9 any society or environm5t1 be5 dom9at$ ma9ly by altruism or ! desire ( public hon\r4 ,:at reason is !re to expect t m5 w act diff]5tly 9 ! future8 ,nei!r legislation nor education c make m5 love _! neighb\rs m ?an !mselves1 or love ! applause ( _! neighb\rs m ?an _! own mat]ial welf>e4 ,re/rict+ ,individual ,lib]ty ,ev5 ?\gh human nature %\ld und]go ! degree ( miracul\s trans=mation necess>y to ma9ta9 an effici5t indu/rial sy/em on ,sociali/ l9es1 su* a social organisation mu/ soon collapse because ( its injuri\s effect ^u individual lib]ty4 ,fre$om ( *oice w\ld be aboli%$ 9 ! mo/ vital economic transactions2 = !re w\ld be b "o buy] ( lab\r1 & "o sell] ( commodities4 ,& ^! two w\ld be id5tical1 namely1 ! ,/ate4 ,) ! exception ( ! small m9ority t might be engag$ 9 purely individual avocations1 & 9 co-op]ative ent]prises1 m5 w\ld be compell$ to sell _! lab\r to ei!r ! municipality or ! national gov]nm5t4 ,z competition betwe5 ^! two political ag5cies 9 ! matt] ( wages & o!r conditions ( lab\r c\ld n be p]mitt$1 !re w\ld be virtually only "o employ]4 ,practically all mat]ial goods w\ld h to be pur*as$ f ei!r ! municipal or ! national %ops & /ores4 ,s9ce ! city & ! nation w\ld produce diff]5t k9ds ( goods1 ! pur*as] ( any giv5 article w\ld be compell$ to deal ) "o sell]4 ,8 fre$om ( *oice w\ld be fur!r re/rict$ by ! fact t he w\ld h to be cont5t ) ^? k9ds & grades ( commodities :i* ! sell] saw fit to produce4 ,he c\ld n create an effective dem& = new =ms & v>ieties ( goods1 z he n[ does1 by /imulat+ ! +5uity & acquisitiv5ess ( compet+ produc]s & deal]s4 ,prices & wages w\ld1 ( c\rse1 be fix$ be=eh& by ! gov]nm5t4 ,! supposition t ?is function might be left to ! work]s 9 ea* indu/ry is utt]ly impracticable4 ,su* an arrangem5t w\ld involve a gr& scramble among ! diff]5t indu/ries to see :i* c\ld pay its own memb]s ! highe/ wages1 & *>ge its neighb\rs' memb]s ! highe/ prices4 ,! f9al result w\ld be a level ( prices s high t only an al]t & vigor\s section ( ! work]s 9 ea* indu/ry c\ld f9d employm5t4 ,n only wages & prices b h\rs1 safety requirem5ts1 & all ! o!r g5]al conditions ( employm5t1 w\ld be regulat$ by ! gov]nm5t4 ,! individuals 9 ea* indu/ry c\ld n be p]mitt$ to det]m9e ^! matt]s any m ?an !y c\ld be p]mitt$ to det]m9e wages4 ,moreov]1 all ^! regulations w\ld f ! nature ( ! case cont9ue un*ang$ = a consid]able p]iod ( "t4 ,! re/riction ( *oice en=c$ ^u ! sell]s ( lab\r & ! buy]s ( goods1 ! utt] dep5d5ce ( ! population ^u "o ag5cy 9 all ! affairs ( _! economic z well z _! political life1 ! trem5d\s social p[] conc5trat$ 9 ! ,/ate1 w\ld produce a dim9ution ( individual lib]ty & a p]fection ( political despotism surpass+ any?+ t ! _w has ev] se54 ,x w\ld n long be tol]at$ by any self respect+ p4 ,to reply t ! ,sociali/ ord] w\ld be a democracy1 & t ! p c\ld vote out ( exi/5ce any di/a/eful regulation1 is to play ) words4 ,no matt] h[ responsive ! gov]n+ & manag+ au?orities might be to ! popul> w1 ! dep5d5ce ( ! individual w\ld prove intol]able4 ,n ! mann] 9 :i* ?is trem5d\s social p[] is con/itut$1 nor ! p]sonnel ( ^? ex]cis+ x1 b ! fact t s mu* p[] is lodg$ 9 "o ag5cy1 & s little imm$iate control ( 8 affairs left to ! individual1--is ! he>t ( ! evil situation4 ,9 a ^w1 x is a "q ( ! lib]ty ( ! individual v]sus ! all p]vad+ control ( 8 actions by an ag5cy o!r ?an himself4 ,moreov]1 ! p 9 a democracy means a majority1 or a compact m9ority4 ,"u ,socialism ! controll+ section ( ! vot+ population w\ld possess s mu* p[]1 political & economic1 t x c\ld impose :atev] conditions x pleas$ ^u ! non-controll+ section = an almo/ indef9ite p]iod ( "t4 ,! memb]s ( ! latt] "p ( ! population w\ld n only be depriv$ ( t imm$iate lib]ty :i* consi/s 9 ! p[] to det]m9e ! details ( _! economic life1 b ( t remote lib]ty :i* consi/s 9 ! p[] to affect g5]al conditions by _! votes4 ,9 ! la/ *apt] we saw t ! claim to ! full product ( indu/ry1 made on behalf ( lab\r by ! ,sociali/s1 _c be e/abli%$ on intr9sic gr\nds4 ,l all o!r claims to mat]ial goods1 x is valid only if x c be realis$ consi/5tly ) human welf>e4 ,its validity dep5ds ^u its feasibility1 ^u ! possibility ( con/ruct+ "s social sy/em t w enable x to "w4 ,! pres5t *apt] has %[n t ! requirem5ts ( su* a sy/em are n met by ,socialism4 ,a ,sociali/ organisation ( indu/ry w\ld make all sections ( ! population1 includ+ ! wage e>n+ class1 worse (f ?an !y are 9 ! exi/+ indu/rial ord]4 ,consequ5tly1 nei!r ! private own]%ip ( capital nor ! individual receipt ( int]e/ c be prov$ to be immoral by ! ,sociali/ argum5t4 ,s9ce private own]%ip & managem5t ( capital are sup]ior to ,socialism1 ! ,/ate is oblig$ to ma9ta91 protect1 & improve ! exi/+ indu/rial sy/em4 ,?is is precisely ! conclusion t we rea*$ 9 *apt] iv ) ref]5ce to private own]%ip ( l&4 ,9 *apt] v we f\nd1 moreov]1 t individual own]%ip ( l& is a natural "r4 ,! fundam5tal consid]ations !re exam9$ lead to ! p>allel conclusion t ! individual has a natural "r to own capital4 ,b we c\ld n imm$iately d$uce f ! "r to own l& ! "r to take r5t4 ,nei!r c we imm$iately d$uce f ! "r to own capital ! "r to take int]e/4 ,! positive e/abli%m5t ( ! latt] "r w occupy u 9 ! two foll[+ *apt]s4 ,,footnotes3 #aba ,wilhelm ,liebkne*t1 cit$ 9 ,hillquit's ,socialism 9 ,!ory & ,practice1 p4 #ajg4 #abb ,das ,erfurt] ,program1 cit$ by ,skelton1 op4 cit41 p4 #agh4 #abc ,cf4 ,skelton1 op4 cit41 *4 vii2 ,b]n/e91 ,evolution>y ,socialism1 pp4 #a-id2 ,simkhovit*1 ,m>xism vs4 ,socialism1 passim2 ,wall+1 ,progressivism & ,aft]1 passim2 ,hillquit-,ryan1 op4 cit41 *4 iv4 #abd ,income1 p4 #aeb4 #abe ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 p4 #acb4 #abf ,cf4 ,hillquit-,ryan1 op4 cit41 pp4 #ajg1 #acf4 #abg ,cf4 ,hillquit-,ryan1 op4 cit41 pp4 #gc-gg2 ,skelton1 op4 cit1 p4 #ahc2 ,wall+1 ,socialism z ,x ,is1 p4 #dbi4 #abh ,cf4 ,k+1 op4 cit41 pp4 #bbd-bbf4 #abi ,cf4 ,kautsky1 ,! ,social ,revolution1 pp4 #aff1 #afg2 ,hillquit-,ryan1 op4 cit41 p4 #gb4 #acj ,hillquit-,ryan1 op4 cit41 p4 #hj2 cf4 ,sp>go1 ,socialism1 pp4 #bbe-bbg4 #aca ,socialism3 ,a ,critical ,analysis1 p4 #bai4 #acb ,cf4 ,! ,panama ,gateway1 by ,joseph ,buckl9 ,bi%op1 p4 #bfc4 ,,*apt] ,,xii ,,alleg$ ,,intr9sic ,,ju/ifications ,,( ,,int]e/ ,9 8 address z ,presid5t ( ! ,am]ican ,sociological ,society at ! annual meet+1 ,dec4 #bg1 #aiac1 ,pr(essor ,albion ,w4 ,small d5\nc$ ! fallacy ( treat+ capital z ?\gh x 7 an active ag5t 9 human processes1 & cr$it+ income to ! p]sonal repres5tatives ( capital1 irrespective ( _! actual %>e 9 human s]vice4 ,accord+ to 8 explicit decl>ation1 8 criticism ( ! mod]n int]e/-sy/em 0 bas$ prim>ily ^u gr\nds ( social utility r ?an ^u =mally e?ical consid]ations4 ,a ,g]man prie/ has attack$ int]e/ f ! purely moral viewpo9t4#acc ,9 8 view ! own] ( any sort ( capital :o exacts ! return ( any?+ beyond ! pr9cipal1 violates /rict ju/ice4#acd ,! ,*ur*1 he ma9ta9s1 has nev] =mally au?oris$ or p]mitt$ int]e/1 ei!r on loans or on produc+ capital4 ,%e has m]ely tol]at$ x z an irremovable evil4 ,is !re a satisfactory ju/ification ( int]e/8 ,if !re is1 does x re/ on individual or on social gr\nds8 ,t is to say3 is int]e/ ju/ifi$ imm$iately & intr9sically by ! relations exi/+ betwe5 ! own] & ! us] ( capital8 ,or1 is r5d]$ morally good ow+ to its effects ^u social welf>e8 ,let u see :at light is ?r[n on ^! que/ions by ! anti-usury legislation ( ! ,ca?olic ,*ur*4 ,attitude ( ! ,*ur* ,t[>d ,int]e/ on ,loans ,dur+ ! ,middle ,ages all int]e/ on loans 0 =bidd5 "u sev]e p5alties by repeat$ ord9ances ( ,popes & ,c\ncils4#ace ,s9ce ! end ( ! sev5te5? c5tury ! ,*ur* has q g5]ally p]mitt$ int]e/ on "o or m extr9sic gr\nds1 or titles4 ,! fir/ ( ^! titles 0 kn[n z lucrum cessans1 or rel9qui%$ ga94 ,x came into exi/5ce :5ev] a p]son :o c\ld h inve/$ 8 money 9 a productive object1 = example1 a h\se1 a f>m1 or a m]cantile ent]prise1 decid$ in/ead to l5d ! money4 ,9 su* cases ! int]e/ on ! loan 0 reg>d$ z prop] comp5sation = ! ga9 :i* ! own] might h obta9$ f an inve/m5t on 8 own acc\nt4 ,! title creat$ by ?is situation 0 call$ extr9sic because x arose out ( circum/ances ext]nal to ! ess5tial relations ( borr[] & l5d]4 ,n because ( ! loan itself1 b because ! loan prev5t$ ! l5d] f inve/+ 8 money 9 a productive ent]prise1 0 int]e/ on ! =m] held to be ju/ifi$4 ,9 o!r words1 int]e/ on ! loan 0 look$ ^u z m]ely ! fair equival5t ( ! int]e/ t might h be5 obta9$ on ! inve/m5t4 ,dur+ ! sev5te5?1 eighte5?1 & n9ete5? c5turies1 ano!r title or ju/ification ( loan-int]e/ f\nd "s fav\r among ,ca?olic morali/s4 ,?is 0 ! praemium legale1 or legal rate ( int]e/ all[$ by civil gov]nm5ts4 ,:]ev] ! ,/ate au?oris$ a def9ite rate ( int]e/1 ! l5d] might1 accord+ to ^! writ]s1 take advantage ( x ) a cle> consci5ce4 ,to-day ! majority ( ,ca?olic au?orities on ! subject pref] ! title ( virtual productivity z a ju/ification4 ,money1 !y cont5d1 has become virtually productive4 ,x c readily be ex*ang$ = income-be>+ or productive prop]ty1 su* z1 l&1 h\ses1 railroads1 ma*9]y1 & di/ributive e/abli%m5ts4 ,h5ce x has become ! economic equival5t ( productive capital1 & ! int]e/ :i* is receiv$ on x ?r\gh a loan is q z reasonable z ! annual return to ! own] ( productive capital4 ,betwe5 ?is !ory & ! !ory connect$ ) lucrum cessans ! only diff]5ce is t ! =m] %ifts ! ju/ification ( int]e/ f ! circum/ances & rights ( ! l5d] to ! pres5t nature ( ! money itself4 ,n m]ely ! fact t ! individual w suff] if1 in/ead ( inve/+ 8 money he loans x )\t int]e/1 b ! fact t money is g5]ally & virtually productive1 is ! important elem5t 9 ! new] !ory4 ,9 practice1 h[ev]1 ! two explanations or ju/ifications come to sub/antially ! same ?+4 ,nev]!less1 ! ,*ur* has giv5 no positive approval to any ( ! =ego+ !ories4 ,9 ! la/ =mal pron\ncem5t by a ,pope on ! subject1 ,b5$ict ,,xiv#acf condemn$ anew all int]e/ t _h no o!r support ?an ! intr9sic conditions ( ! loan itself4 ,at ! same "t1 he decl>$ t he _h no int5tion ( d5y+ ! lawfulness ( int]e/ :i* 0 receiv$ 9 virtue ( ! title ( lucrum cessans1 nor ! lawfulness ( int]e/ or pr(its aris+ out ( inve/m5ts 9 productive prop]ty4 ,9 o!r words1 ! au?orisation t he gave to bo? k9ds ( int]e/ 0 m]ely negative4 ,he refra9$ f condemn+ !m4 ,9 ! ,responses giv5 by ! ,roman ,congregations f #ahbb onw>d to que/ions relat+ to ! lawfulness ( loan-int]e/1 we may pr(itably consid] f\r pr9cipal features4 ,fir/1 !y decl>e m or less specifically t int]e/ may be tak5 9 ! abs5ce ( ! title ( lucrum cessans2 second1 "s ( !m def9itely admit ! title ( praemium legale1 or civil au?orisation1 z suffici5t to give ! practice moral sanction2 ?ird1 !y express a g5u9e p]mission1 n a m]e tol]ation1 ( int]e/ tak+2 f\r?1 none ( !m explicitly decl>es t any ( ! titles or reasons = receiv+ loan-int]e/ w necess>ily or always give ! l5d] a /rict "r !reto4 ,none ( !m conta9s a positive & reason$ approval ( ! practice4 ,mo/ ( !m m]ely decide t p]sons :o engage 9 x are n to be di/urb$ 9 consci5ce1 s long z !y /& ready to submit to a =mal decision on ! subject by ! ,holy ,see4 ,! ins]tion ( ! latt] condition cle>ly intimates t "s day int]e/ tak+ might be =mally & (ficially condemn$4 ,%\ld su* a condemnation ev] appe>1 x w\ld n contradict any moral pr9ciple conta9$ 9 ! ,roman ,responses1 nor 9 ! pres5t attitude ( ! ,*ur* & ( ,ca?olic morali/s4 ,und\bt$ly x c\ld come only z ! result ( a *ange 9 ! organisation ( indu/ry1 j z ! exi/+ ecclesia/ical attitude has foll[$ ! *ang$ economic conditions s9ce ! ,middle ,ages4 ,all ! !ological discussion on ! subject1 & all ! au?oritative ecclesia/ical decl>ations indicate1 !re=e1 t int]e/ on loans is to-day reg>d$ z lawful because a loan is ! economic equival5t ( an inve/m5t4 ,evid5tly ?is is good logic & common s5se4 ,if x is "r = ! /ockhold] ( a railway to receive divid5ds1 x is equally "r = ! bondhold] to receive int]e/4 ,if x is "r = a m]*ant to take f ! gross returns ( 8 bus9ess a sum suffici5t to cov] int]e/ on 8 capital1 x is equally "r = ! man f :om he has borr[$ money = ! ent]prise to exact int]e/4 ,! money 9 a loan is economically equival5t to1 conv]tible into1 concrete capital4 ,x des]ves1 !re=e1 ! same treatm5t & ! same rew>ds4 ,! fact t ! inve/or und]goes a great] risk ?an ! l5d]1 & ! fact t ! =m] (t5 p]=ms lab\r 9 connection ) ! op]ation ( 8 capital1 h no be>+ on ! moral problem2 = ! inve/or is repaid = 8 extra risk & lab\r by ! pr(its :i* he receives1 & :i* ! l5d] does n receive4 ,z a m]e recipi5t ( int]e/1 ! inve/or und]goes no m risk nor ex]tion ?an does ! l5d]4 ,8 claim to int]e/ is no bett] ?an t ( ! latt]4 ,int]e/ on ,productive ,capital ,on :at gr\nd does ! ,*ur* or ,ca?olic !ological op9ion ju/ify int]e/ on inve/$ capital8 on ! %>es ( ! /ockhold]s 9 corporations8 on ! capital ( ! m]*ant & ! manufactur]8 ,9 ! e>ly ,middle ,ages ! only recognis$ titles to ga9 f ! own]%ip ( prop]ty 7 lab\r & risk4#acg ,d[n to ! beg9n+ ( ! fifte5? c5tury sub/antially all ! incomes ( all classes c\ld be expla9$ & ju/ifi$ by "o or o!r ( ^! two titles2 = ! am\nt ( capital 9 exi/5ce 0 inconsid]able1 & ! numb] ( l>ge p]sonal incomes insignificant4 ,:51 h[ev]1 ! traffic 9 r5t *>ges & ! op]ation ( p>tn]%ips1 especially ! contractus tr9us1 or triple contract1 _h become fairly common1 x 0 obvi\s t ! pr(its f ^! practices c\ld n be correctly attribut$ to ei!r lab\r or risk4 ,! p]son :o b\ght1 n ! l& itself1 b ! "r to receive a portion ( ! r5t !re(1 & ! p]son :o became ! sil5t memb] ( a p>tn]%ip1 evid5tly p]=m$ no lab\r beyond t involv$ 9 mak+ ! contract4 ,& _! pr(its cle>ly exce$$ a fair comp5sation = _! risks1 inasmu* z ! pr(its produc$ a /eady income4 ,h[ !n 7 !y to be ju/ifi$8 ,a few au?orities ma9ta9$ t su* incomes _h no ju/ification4 ,9 ! ?irte5? c5tury ,h5ry ( ,gh5t condemn$ ! traffic 9 r5t *>ges2 9 ! sixte5? ,dom9icus ,soto ma9ta9$ t ! returns to ! sil5t p>tn] 9 an ent]prise ought n to exce$ a fair equival5t = 8 risks2 ab\t ! same "t ,pope ,sixtus ,v d5\nc$ ! triple contract z a =m ( usury4 ,nev]!less1 ! great majority ( writ]s admitt$ t all ^! transactions 7 morally lawful1 & ! ga9s !refrom j4 ,= a "t ^! writ]s employ$ m]ely negative & a p>i argum5ts4 ,ga9s f r5t *>ges1 !y po9t$ out1 7 ess5tially z licit z ! net r5t receiv$ by ! own] ( ! l&2 & ! int]e/ receiv$ by a sil5t p>tn]1 ev5 9 a triple contract1 _h q z s\nd a moral basis z r5t *>ges4 ,by ! beg9n+ ( ! sev5te5? c5tury ! lead+ au?orities 7 bas+ _! def5ce ( indu/rial int]e/ on positive gr\nds4 ,lugo1 ,lessius1 & ,mol9a adduc$ ! productivity ( capital goods z a reason = all[+ ga9s to ! inve/or4 ,:e!r !y reg>d$ productivity z 9 itself a suffici5t ju/ification ( int]e/1 or m]ely z a necess>y pr]equisite to ju/ification1 _c be det]m9$ ) c]ta9ty4 ,at pres5t ! majority ( ,ca?olic writ]s seem to ?9k t a =mal def5ce ( int]e/ on capital is unnecess>y4 ,app>5tly !y assume t int]e/ is ju/ifi$ by ! m]e productivity ( capital4 ,h[ev]1 ?is view has nev] be5 explicitly approv$ by ! ,*ur*4 ,:ile %e p]mits & au?orises int]e/1 %e does n def9e its precise moral basis4 ,s mu* = ! tea*+ ( ecclesia/ical & e?ical au?orities4 ,:at are ! objective reasons 9 fav\r ( ! capitali/'s claim to int]e/8 ,9 ?is *apt] we consid] only ! intr9sic reasons1 ^? aris+ :olly out ( ! relations betwe5 ! int]e/-receiv] & ! int]e/-pay]4 ,be=e tak+ up ! subject x may be well to po9t out ! s\rce f :i* int]e/ comes1 ! class 9 ! community t pays ! int]e/ to ! capitali/4 ,f ! language sometimes us$ by ,sociali/s x might be inf]r$ t int]e/ is tak5 f ! lab\r]1 & t if x 7 aboli%$ he w\ld be ! *ief if n ! only b5efici>y4 ,?is is incorrect4 ,at any giv5 "t int]e/ on produc+ capital is paid by ! consum]4 ,^? :o pur*ase ! products ( indu/ry mu/ give prices suffici5tly high to provide int]e/ 9 addition to ! o!r exp5ses ( production4 ,7 int]e/ aboli%$ & ! pres5t sy/em ( private capital cont9u$1 ! ga9 w\ld be ma9ly reap$ by ! consum] 9 ! =m ( l[] prices2 = ! v>i\s capitali/ directors ( indu/ry w\ld br+ ab\t ?is result ?r\gh _! competitive ef=ts to increase sales4 ,only ^? lab\r]s :o 7 suffici5tly organis$ & suffici5tly al]t to make effective dem&s = high] wages be=e ! movem5t t[>d l[] prices _h got well "u way1 w\ld obta9 any direct b5efit f ! *ange4 ,! great majority ( lab\r]s w\ld ga9 f> m z consum]s ?an z wage e>n]s4 ,speak+ g5]ally1 !n1 we may say t ! capitali/'s ga9 is ! consum]'s loss1 & ! "q ( ! ju/ice ( int]e/ is a "q betwe5 ! capitali/ & ! consum]4 ,! intr9sic or individual gr\nds ^u :i* ! capitali/'s claim to int]e/ has be5 def5d$ are ma9ly ?ree3 productivity1 s]vice1 & ab/95ce4 ,!y w be consid]$ 9 ?is ord]4 ,! ,claims ( ,productivity ,x is sometimes ass]t$ t ! capitali/ has z good a "r to int]e/ z ! f>m] has to ! (fspr+ ( 8 animals4 ,bo? are ! products ( ! own]'s prop]ty4 ,9 two respects1 h[ev]1 ! comp>ison is inadequate & mislead+4 ,s9ce ! own] ( a female animal contributes lab\r or money or bo? t[>d h] c>e dur+ ! p]iod ( ge/ation1 8 claim to ! (fspr+ is bas$ 9 "p ^u ^! gr\nds1 & only 9 "p ^u ! title ( int]e/4 ,9 ! second place1 ! (fspr+ is ! def9ite & easily di/+ui%able product ( its p>5t4 ,b ! sixty doll>s d]iv$ z int]e/ f ! own]%ip ( t5 %>es ( railway /ock1 _c be id5tifi$ z ! exact product ( "o ?\s& doll>s ( railway prop]ty4 ,no man c tell :e!r ?is am\nt ( capital has contribut$ m or less ?an sixty doll>s ( value to ! jo9t product1 i4e41 railway s]vices4 ,! same is true ( any o!r %>e or piece ( concrete capital4 ,all t we "k is t ! int]e/1 be x five1 six1 sev51 or "s o!r p] c5t41 describes ! %>e ( ! product :i* goes to ! own] ( capital 9 ! pres5t conditions ( indu/ry4 ,x is ! conv5tional n ! actual & physical product ( capital4 ,ano!r faulty analogy is t drawn betwe5 ! productivity ( capital & ! productivity ( lab\r4 ,foll[+ ! t]m9ology ( ! economi/s1 mo/ p]sons ?9k ( l&1 lab\r1 & capital z productive 9 ! same s5se4 ,h5ce ! productivity ( capital is easily assum$ to h ! same moral value z ! productive action ( human be+s2 & ! "r ( ! capitali/ to a "p ( ! product is put on ! same moral basis z ! "r ( ! lab\r]4 ,yet ! diff]5ces betwe5 ! two k9ds ( productivity1 & betwe5 ! two moral claims to ! product are m important ?an _! resemblances4 ,9 ! fir/ place1 !re is an ess5tial physical diff]5ce4 ,z an in/rum5t ( production1 lab\r is active1 capital is passive4 ,z reg>ds its wor? or dignity1 lab\r is ! exp5diture ( human en]gy1 ! output ( a p]son1 :ile capital is a mat]ial ?+1 /&+ ap>t f a p]sonality1 & possess+ no human quality or human wor?4 ,^! significant intr9sic or physical diff]5ces =bid any imm$iate inf]5ce t ! moral claims ( ! own]s ( capital & lab\r are equally valid4 ,we %\ld logically expect to f9d t _! moral claims are unequal4 ,?is expectation is realis$ :5 we exam9e ! be>+ ( ! two k9ds ( productivity ^u human welf>e4 ,9 ! ex]cise ( productive ef=t ! av]age lab\r] und]goes a sacrifice4 ,he is engag$ 9 a process t is ord9>ily irksome4 ,to require f him ?is toilsome exp5diture ( en]gy )\t comp5sation1 w\ld make him a m]e in/rum5t ( 8 fell[s4 ,x w\ld subord9ate him & 8 com=t to ! aggr&isem5t ( be+s :o are n 8 sup]iors b 8 moral equals4 ,= he is a p]son2 !y are no m ?an p]sons4 ,on ! o!r h&1 ! capitali/ z su*1 z ! recipi5t ( int]e/1 p]=ms no lab\r1 pa9ful or o!rwise4 ,n ! capitali/1 b capital p>ticipates 9 ! productive process4 ,ev5 ?\gh ! capitali/ %\ld receive no int]e/1 ! productive function+ ( capital w\ld n subord9ate him to 8 fell[s 9 ! way t wageless lab\r w\ld subord9ate ! lab\r]4 ,! precise & fundam5tal reason = accord+ to ! lab\r] 8 product is t ?is is ! only rational rule ( di/ribution4 ,:5 a man makes a useful ?+ out ( mat]ials t are 81 he has a /rict "r to ! product simply because !re is no o!r reasonable me?od ( di/ribut+ ! goods & opportunities ( ! e>?4 ,if ano!r individual1 or society1 7 p]mitt$ to take ?is product1 indu/ry w\ld be disc\rag$1 idl5ess fo/]$1 & reasonable life & self developm5t r5d]$ impossible4 ,direful consequ5ces ( ?is magnitude w\ld n foll[ ! abolition ( int]e/4 ,p]haps ! mo/ important diff]5ce betwe5 ! moral claims ( capitali/ & lab\r] is ! fact t = ! latt] lab\r is ! sole means ( livelihood4 ,unless he is comp5sat$ = 8 product he w p]i%4 ,b ! capitali/ has 9 addition to ! int]e/ t he receives ! ability to "w4 ,7 int]e/ aboli%$ he w\ld /ill be 9 z good a position z ! lab\r]4 ,! product ( ! lab\r] means to him ! necess>ies ( life2 ! product ( ! capitali/ means to him goods 9 excess ( a m]e livelihood4 ,consequ5tly _! claims to ! product are greatly unequal 9 vital importance & moral value4 ,! =ego+ consid]ations %[ t ev5 ! claim ( ! lab\r] to 8 product is n bas$ ^u m]ely intr9sic gr\nds4 ,x does n spr+ entirely f ! m]e fact t he has produc$ ! product1 f ! m]e relation betwe5 produc] & ?+ produc$4 ,if ?is is true ( lab\r-productivity we %\ld expect to f9d x ev5 m evid5t ) reg>d to ! productivity ( capital2 = ! latt] is passive in/ead ( active1 non rational in/ead ( human4 ,! expectation is well f\nd$4 ,n a s+le conclusive argum5t c be br\ght =w>d to %[ t ! productivity ( capital directly & necess>ily conf]s ^u ! capitali/ a "r to ! int]e/-product4 ,all ! attempt$ argum5ts are r$ucible to two =mulas3 res fructificat dom9o 7a ?+ fructifies to its own]7 & ! effect foll[s its cause4 ,! fir/ ( ^! 0 orig9ally a legal r ?an an e?ical maxim2 a rule by :i* ! title 0 det]m9$ 9 ! civil law1 n a pr9ciple by :i* ! "r 0 det]m9$ 9 morals4 ,! second is an irrelevant platitude4 ,z a juri/ic pr9ciple1 nei!r is self evid5t4 ,:y %\ld ! own] ( a piece ( capital1 be x a h\se1 a ma*9e1 or a %>e ( railway /ock1 h a "r to its product1 :5 he has exp5d$ nei!r "t1 lab\r1 money1 nor inconv5i5ce ( any k9d8 ,to answ]1 because ! ?+ :i* produc$ ! product belongs to him1 is m]ely to beg ! "q4 ,to answ]1 because ! effect foll[s ! cause1 is to make a /atem5t :i* has no?+ to d ) ! "q4 ,:at we want to "k is :y ! own]%ip ( a productive ?+ gives a "r to ! product2 :y ?is p>ticul> effect %\ld foll[ its cause 9 ?is p>ticul> way4 ,to answ] by repeat+ "u ! guise ( s5t5ti\s =mulas ! !sis to be prov$1 is sc>cely satisfactory or conv9c+4 ,to answ] t if ! capitali/ 7 n giv5 int]e/ indu/ry & ?rift w\ld decrease & human welf>e suff]1 is to ab&on ! intr9sic argum5t entirely4 ,x br+s 9 ! extr9sic consid]ation ( social consequ5ces4 ,! ,claims ( ,s]vice ,! second intr9sic gr\nd ^u :i* int]e/ is def5d$1 is ! s]vice p]=m$ by ! capitali/ :5 he p]mits 8 capital to be us$ 9 production4 ,)\t capital1 lab\r]s & consum]s w\ld be unable to comm& m ?an a fraction ( _! pres5t means ( livelihood4 ,f ?is po9t ( view we see t ! s]vice 9 "q is wor? all t is paid 9 ! =m ( int]e/4 ,nev]!less x does n foll[ t ! capitali/ has a claim 9 /rict ju/ice to any paym5t = ?is s]vice4 ,accord+ to ,/4 ,?omas1 a sell] may n *>ge a buy] an extra am\nt m]ely because ( ! extra value atta*$ to ! commodity by ! latt]4#ach ,9 o!r words1 a man _c ju/ly be requir$ to pay an unusual price = a b5efit or advantage or s]vice1 :5 ! sell] und]goes no unusual deprivation4 ,fa!r ,lehmkuhl c>ries ! pr9ciple fur!r1 & decl>es t ! sell] has a "r to comp5sation only :5 & to ! ext5t t he und]goes a privation or und]takes a responsibility4#aci ,accord+ to ?is rule1 ! capitali/ w\ld h no "r to int]e/2 = z m]e int]e/-receiv] he und]goes no privation4 ,8 risk & lab\r are remun]at$ 9 pr(its1 :ile ! responsibility ( n )draw+ f production some?+ t c cont9ue 9 exi/5ce only by cont9u+ 9 production1 is sc>cely des]v+ ( a rew>d accord+ to ! canons ( /rict ju/ice4 ,:atev] we may ?9k ( ?is argum5t f au?ority1 we f9d x impossible to prove objectively t a man :o r5d]s a s]vice to ano!r has an intr9sic "r to any?+ beyond comp5sation = ! exp5diture ( money or lab\r involv$ 9 p]=m+ ! s]vice4 ,! man :o ?r[s a life pres]v] to a dr[n+ p]son may ju/ly dem& a paym5t = 8 tr\ble4 ,on any recognis$ basis ( comp5sation1 ?is paym5t w n exce$ a few doll>s4 ,yet ! man ^: life is 9 dang] w\ld pay a million doll>s = ?is s]vice if he 7 extremely ri*4 ,he w\ld reg>d ! s]vice z wor? ?is mu* to him4 ,has ! man ) ! life pres]v] a "r to exact su* a paym5t8 ,has he a "r to dem& ! full value ( ! s]vice8 ,no reasonable p]son w\ld answ] ?is "q o!rwise ?an 9 ! negative4 ,if ! p]=m] ( ! s]vice may n *>ge ! full value !re(1 z measur$ by ! e/imate put ^u x by ! recipi5t1 x w\ld seem t he ought n to dem& any?+ 9 excess ( a fair price = 8 tr\ble4 ,9 o!r words1 he may n ju/ly exact any?+ = ! s]vice z su*4 ,x w\ld seem1 !n1 t ! capitali/ has no moral claim to pure int]e/ on ! m]e gr\nd t ! use ( 8 capital 9 production con/itutes a s]vice to lab\r]s & consum]s4 ,x w\ld seem t he has no "r to dem& a paym5t = a co/less s]vice4 ,! ,claims ( ,ab/95ce ,! ?ird & la/ ( ! intr9sic ju/ifications ( int]e/ t we %all consid] is ab/95ce4 ,?is argum5t is bas$ ^u ! cont5tion t ! p]son :o saves 8 money1 & inve/s x 9 ! in/rum5ts ( production und]goes a sacrifice 9 def]r+ to ! future satisfactions t he might enjoy to-day4 ,"o hundr$ doll>s n[ is wor? z mu* z "o hundr$ & five doll>s a ye> h5ce4 ,t is1 :5 bo? are e/imat$ f ! viewpo9t ( ! pres5t4 ,?is sacrifice ( pres5t to future enjoym5t :i* contributes a s]vice to ! community 9 ! =m ( capital1 creates a j claim ^u ! community to comp5sation 9 ! =m ( int]e/4 ,if ! capitali/ is n rew>d$ = ?is inconv5i5ce he is1 l ! unpaid lab\r]1 subord9at$ to ! aggr&isem5t ( 8 fell[s4 ,aga9/ ?is argum5t we may place ! extreme refutation attempt$ by ! ,sociali/ lead]1 ,f]d9& ,lassalle3 ,b ! pr(it ( capital is ! rew>d ( ab/95ce4 ,truly a happy phrase6 ,european millionaires are ascetics1 ,indian p5it5ts1 mod]n ,/4 ,simons ,/ylites1 :o p]*$ on _! columns1 ) )]$ features & arms & bodies ?ru/ =w>d1 hold out a plate to ! pass]s-by t !y may receive ! wages ( _! privations6 ,9 ! mid/ ( ?is sacro-sa9t gr\p1 high above 8 fell[-mortifi]s ( ! fle%1 /&s ! ,holy ,h\se ( ,ro?s*ild4 ,t is ! real tru? ab\t our pres5t society6 ,h[ c\ld ,i h hi!rto blund]$ on ?is po9t z ,i h8#adj ,obvi\sly ?is is a malevol5tly "o-sid$ implication conc]n+ ! s\rces ( capital4 ,b x is sc>cely less adequate ?an ! explanation 9 opposition to :i* x has be5 quot$4 ,bo? fail to di/+ui% betwe5 ! diff]5t k9ds ( sav]s1 ! diff]5t k9ds ( capital-own]s4 ,= ! purposes ( our inquiry sav+s may be divid$ into ?ree classes4 ,fir/1 ^? :i* are accumulat$ & inve/$ automatically4 ,v ri* p]sons save a great deal ( money t !y h no desire to sp5d1 s9ce !y h already satisfi$ or safegu>d$ all ! wants ( :i* !y are consci\s4 ,evid5tly ?is k9d ( sav+ involves no real sacrifice4 ,to x ! words ( ,lassalle are sub/antially applicable1 & ! claim to int]e/ = ab/95ce decid$ly inapplicable4 ,second1 sav+s to provide = old age & o!r future cont+5cies :i* are e/imat$ z m important ?an any ( ! purposes = :i* ! money might n[ be exp5d$4 ,7 int]e/ aboli%$ ?is k9d ( sav+ w\ld be ev5 great] ?an x is at pres5t2 = a l>g] total w\ld be requir$ to equal ! fund t is n[ provid$ ?r\gh ! addition ( int]e/ to ! pr9cipal4 ,9 a no-int]e/ rgime "o ?\s& doll>s w\ld h to be set aside e ye> 9 ord] to total tw5ty ?\s& doll>s 9 tw5ty ye>s2 :5 int]e/ is accumulat$ on ! sav+s1 a small] annual am\nt w suffice to produce ! same fund4 ,inasmu* z ?is class ( p]sons w\ld save 9 an ev5 great] degree )\t int]e/1 x is cle> t !y reg>d ! sacrifice involv$ z fully comp5sat$ 9 ! result+ provision = ! future4 ,9 _! case sacrifice is amply rew>d$ by accumulation4 ,_! claim to additional comp5sation 9 ! =m ( int]e/ does n seem to h any valid basis4 ,9 ! words ( ! late ,pr(essor ,devas1 !re is ample rew>d giv5 )\t any ne$ ( any int]e/ or divid5d4 ,= ! work]s ) heads or h&s keep ! prop]ty intact1 ready = ! own] to consume :5ev] conv5i5t1 :5 he gets infirm or sick1 or :5 8 *ildr5 h gr[n up1 & c enjoy ! prop]ty ) him4#ada ,! ?ird k9d ( sav+ is t :i* is made by p]sons :o c\ld sp5d1 & h "s desire to sp5d1 m on pres5t satisfactions1 & :o h already provid$ = all future wants 9 accordance ) ! /&>ds ( necess>ies & com=ts t !y h adopt$4 ,_! fund = ! future is already suffici5t to meet all ^? ne$s :i* seem weighti] ?an _! pres5t unsatisfi$ wants4 ,if ! surplus 9 "q is sav$ x w g to supply future desires :i* are no m important ?an ^? = :i* x might be exp5d$ n[4 ,9 o!r words1 ! alt]natives be=e ! prospective sav] are to procure a giv5 am\nt ( satisfaction to-day1 or to def] ! same degree ( satisfaction to a di/ant day4 ,9 ?is case ! inducem5t ( int]e/ w und\bt$ly be necess>y to br+ ab\t sav+4 ,z betwe5 equal am\nts ( satisfaction at diff]5t times1 ! av]age p]son w c]ta9ly pref] ^? ( ! pres5t to ^? ( ! future4 ,he w n decide 9 fav\r ( ! future unless ! satisfactions !n obta9able are to be great] 9 quantity4 ,to ?is situation ! rule t def]r$ enjoym5ts are wor? less ?an pres5t enjoym5ts1 is /rictly applicable4 ,! increas$ quantity ( future satisfaction :i* is necess>y to turn ! *oice f ! pres5t to ! future1 & to det]m9e t ! surplus %all be sav$ r ?an sp5t1 c be provid$ only ?r\gh int]e/4 ,9 ?is way ! accumulations ( int]e/ & sav+s w make ! future fund equival5t to a l>g] am\nt ( enjoym5t or utility ?an c\ld be obta9$ if ! surplus 7 ex*ang$ = ! goods ( ! pres5t4 ,int]e/ magnifies ! di/ant object4 ,:5ev] ?is magnify+ p[] seems suffici5tly great to outweigh ! advantage ( pres5t ov] future satisfactions1 ! surplus w be sav$ in/ead ( sp5t4 ,among ! well-to-d !re is probably a consid]able numb] ( p]sons :o take ?is attitude t[>d a consid]able "p ( _! sav+s4 ,s9ce !y w\ld n make ^! sav+s )\t ! inducem5t ( int]e/1 !y reg>d ! latt] z a necess>y comp5sation = ! sacrifice ( po/pon$ enjoym5t4 ,9 a g5]al way we may say t !y h a /rict "r to ?is int]e/ on ! intr9sic gr\nd ( sacrifice4 ,inasmu* z ! community b5efits by ! sav+s1 x may q z fairly be requir$ to pay = ! antec$5t sacrifices ( ! sav]s z = ! inconv5i5ce und]gone by ! p]=m] ( any useful lab\r or s]vice4 ,summ+ up ! matt] reg>d+ ! intr9sic ju/ification ( int]e/1 we f9d t ! titles ( productivity & s]vice d n conclusively e/abli% ! /rict "r ( ! capitali/ to int]e/1 & t ! title ( ab/95ce is morally valid = only a portion1 probably a r small portion1 ( ! total am\nt ( int]e/ n[ receiv$ by ! own]s ( capital4 ,consequ5tly int]e/ z a :ole is n conclusively v9dicat$ on individual gr\nds4 ,if x is to be prov$ morally lawful its ju/ification mu/ be s\ght 9 extr9sic & social consid]ations4 ,?is inquiry w =m ! subject ( ! next *apt]4 ,,footnotes3 #acc ,hoh(f1 ,die ,b$eutung d] ,m>xs*5 ,kapitalkritik2 ,pad]born1 #aijh4 #acd ,pp4 #fd-fg1 #hh1 #hi1 #if4 #ace ,cf4 ,van ,roey1 ,de ,ju/o ,auct>io ex ,contractu ,cr$iti2 & ,a%ley1 ,engli% ,economic ,hi/ory4 #acf ,encyclical1 ,vix ,p]v5it1 #agde4 #acg ,cf4 ,/4 ,?omas1 ,summa ,!ologica1 #b;a #b;ae1 q4 #gh1 a4 #b et #c4 #ach ,secunda ,secondae1 q4 #gg1 a4 #a1 9 corp4 #aci ,!ologia ,moralis1 ,i1 no4 #ajej4 #adj ,:at is ,capital8 p4 #bg4 #ada ,political ,economy1 p4 #ejg4 ,,*apt] ,,xiii ,,social ,,& ,,presumptive ,,ju/ifications ,,( ,,int]e/ ,z we saw 9 ! la/ *apt]1 int]e/ _c be conclusively ju/ifi$ on ! gr\nd ( ei!r productivity or s]vice4 ,x is impossible to demon/rate t ! capitali/ has a /rict "r to int]e/ because 8 capital produces int]e/1 or because x r5d]s a s]vice to ! lab\r] or ! consum]4 ,a "p1 probably a small "p1 ( ! int]e/ n[ receiv$ c be fairly ju/ifi$ by ! title ( sacrifice4 ,"s pres5t own]s ( capital w\ld n h sav$ _h !y n expect$ to receive int]e/4 ,9 _! case int]e/ may be reg>d$ z a j comp5sation = ! sacrifice t !y und]w5t :5 !y decid$ to save in/ead ( consum+4 ,limitations ( ! ,sacrifice ,pr9ciple ,nev]!less ^! m5 w\ld suff] no inju/ice if int]e/ 7 n[ to be aboli%$4 ,up to ! mom5t ( ! *ange1 !y w\ld h be5 9 receipt ( adequate comp5sation2 !reaft]1 !y w\ld be 9 exactly ! same position z :5 !y orig9ally *ose to save r ?an consume4 ,!y w\ld /ill be able to sell _! capital1 & conv]t ! proce$s to _! imm$iate uses & pleasures4 ,9 ?is case !y w\ld obvi\sly h no fur!r claim ^u ! community = int]e/4 ,on ! o!r h&1 !y c\ld reta9 ! own]%ip ( _! capital1 & po/pone its consumption to "s future "t4 ,9 mak+ ?is *oice !y w\ld reg>d future z m important ?an pres5t consumption1 & ! sup]iority ( future enjoym5t z suffici5tly great to comp5sate !m = ! sacrifice ( po/ponem5t4 ,h5ce !y w\ld h no moral claim to int]e/ on ! gr\nd ( ab/95ce4 ,9 g5]al1 !n1 ! sacrifice-ju/ification ( int]e/ cont9ues only s long z ! int]e/ cont9ues4 ,x ext5ds only to ! int]e/ receiv$ by c]ta9 capitali/s 9 c]ta9 circum/ances1 n to all int]e/ 9 all circum/ances4 ,!re=e1 x pres5ts no moral ob/acle to ! complete abolition ( int]e/4 ,s9ce probably ! great] "p ( ! int]e/ n[ receiv$ _c be ju/ifi$ on intr9sic gr\nds1 & s9ce t "p ( x :i* is ?us ju/ifi$ c\ld be aboli%$ consi/5tly ) ! rights ( ! recipi5ts1 let u see :e!r x is capable ( ju/ification = reasons ( social welf>e4 ,w\ld its suppression be socially b5eficial or socially detrim5tal8 ,! ,value ( ,capital 9 a ,no-,int]e/ ,rgime ,! int]e/ t we h 9 m9d is pure int]e/1 n und]tak]'s pr(it1 nor insurance aga9/ risk1 nor gross int]e/4 ,ev5 if all pure int]e/ 7 aboli%$ ! capitali/ :o loan$ 8 money w\ld /ill receive some?+ f ! borr[] 9 addition to ! repaym5t ( ! pr9cipal1 :ile ! active capitali/ w\ld get f ! consum] m ?an ! exp5ses ( production4 ,! =m] w\ld require a premium (1 say1 "o or two p] c5t4 to protect him aga9/ ! loss ( 8 loan4 ,! latt] w\ld dem& ! same k9d ( insurance1 & an additional sum to repay him = 8 lab\r & ent]prise4 ,none ( ^! paym5ts c\ld be avoid$ 9 any sy/em ( privately direct$ production4 ,! return ^: suppression is consid]$ "h is t :i* ! capitali/ receives ov] & above ^! paym5ts1 & :i* 9 ?is c\ntry seems to be ab\t ?ree or f\r p] c5t4 ,w\ld capital /ill h value 9 a no-int]e/ rgime1 & if s h[ w\ld its value be det]m9$8 ,at pres5t ! l[] limit ( ! value ( productive capital1 z ( all o!r artificial goods1 is fix$ 9 ! long run by ! co/ ( production4 ,capital in/rum5ts t d n br+ ?is price w n cont9ue to be made4 ,9 o!r words1 co/ ( production is ! gov]n+ factor ( ! value ( capital f ! side ( supply4 ,x w\ld likewise fix ! l[] limit ( value 9 a no-int]e/ rgime2 only1 ! co/ ( produc+ capital in/rum5ts w\ld !n be some:at l[] ?an to-day1 ow+ to ! abs5ce ( an int]e/ *>ge = ! work+ capital dur+ ! productive process4 ,b ! co/ ( production is n a con/ant & accurate measure ( ! value ( artificial capital4 ,! true measure is f\nd 9 ! rev5ue or int]e/ t a giv5 piece ( capital yields to its own]s4 ,if ! curr5t rate ( int]e/ is five p] c5t41 a factory t br+s 9 t5 ?\s& doll>s net return w h a value ( ab\t two hundr$ ?\s& doll>s4 ,?is is ! gov]n+ factor ( value f ! side ( dem&4 ,9 a no-int]e/ economy ! dem& factor w\ld be q diff]5t4 ,capital in/rum5ts w\ld be 9 dem&1 n z rev5ue produc]s1 b z ! concrete embodim5ts1 ! indisp5sable requisites ( sav+ & accumulation4 ,= x is impossible t sav+ %\ld 9 any consid]able am\nt take ! =m ( ca% ho>ds4 ,9 ! words ( ,sir ,rob]t ,giff53 ,! accumulations ( a s+le ye>1 ev5 tak+ x at "o hundr$ & fifty millions only1 444 w\ld absorb m ?an ! entire metallic curr5cy ( ! c\ntry ,great ,brita94 ,!y _c1 !re=e1 be made 9 ca%4#adb ,! in/rum5ts ( production w\ld be s\ght & valu$ by sav]s = ! same reason t safes & safety deposit boxes are 9 dem& n[4 ,!y w\ld be ! only means ( c>ry+ sav+s into ! future1 & !y w\ld necess>ily br+ a price suffici5tly high to cov] ! co/ ( produc+ !m4 ,"o man might deposit 8 sav+s 9 a bank1 :5ce !y w\ld be borr[$ )\t int]e/ by "s director ( indu/ry4 ,:5 ! own] ( ! sav+s desir$ to recov] !m he c\ld obta9 f ! bank ! fund ( "s o!r depositor1 or get ! proce$s ( ! sale ( ! concrete capital 9 :i* 8 own sav+s _h be5 embodi$4 ,ano!r man might pref] to inve/ 8 sav+s directly 9 a build+1 a ma*9e1 or a m]cantile bus9ess1 :5ce he c\ld recov] !m lat] f ! sale ( ! prop]ty4 ,h5ce ! abs5ce ( int]e/ w\ld n *ange ess5tially ! processes ( sav+ or inve/m5t4 ,capital w\ld /ill h value1 b its valuation f ! dem& side w\ld re/ on a diff]5t basis4 ,x w\ld be valu$ n 9 proportion to its p[] to yield int]e/1 b because ( its capacity to become a receptacle = sav+s1 & to c>ry into ! future ! consum+ p[] ( ! pres5t4 ,! "q :e!r ! abolition ( int]e/ by ! ,/ate w\ld be socially helpful or socially h>mful is ma9ly1 ?\gh n entirely1 a "q ( ! supply ( capital4 ,if ! community w\ld n h suffici5t capital to provide = all its ne$s1 actual & progressive1 ! suppression ( int]e/ w\ld obvi\sly be a bad policy4 ,mo/ economi/s seem incl9$ to ?9k t ?is condition w\ld be realis$2 t1 )\t ! inducem5t ( int]e/1 m5 w\ld nei!r make new sav+s nor cons]ve exi/+ capital 9 suffici5t quantity to supply ! wants ( society4 ,v few ( !m1 h[ev]1 pret5d to be able to prove ?is proposition4 ,s _m complex factors ) reg>d to ! possibilities ( sav+ & ! motives ( sav]s1 ent] into ! situation t no op9ion on ! subject c h any /rong] basis ?an probability4 ,z a prelim9>y to our consid]ation ( ! "q ( abolition1 let u inquire :e!r !re exi/s any def9ite relation betwe5 ! pres5t supply ( capital & ! curr5t rate ( int]e/4 ,:e!r ! ,pres5t ,rate ( ,int]e/ ,is ,necess>y ,x is sometimes cont5d$ t ! int]e/ rate mu/ be kept up to ! pres5t level if ! exi/+ supply ( capital is to be ma9ta9$4 ,! und]ly+ assumption is t "s ( ! pres5t sav]s w\ld discont9ue t function at any l[] rate1 ) ! consequ5ce t ! supply ( capital w\ld fall bel[ ! dem&4 ,ow+ to ?is excess ( dem& ov] supply1 ! rate ( int]e/ w\ld rise1 or t5d to rise1 to ! =m] level4 ,!re=e1 ! rate exi/+ at any giv5 "t is ! socially necess>y rate4 ,! rate ( int]e/ is said to be analog\s to ! rate ( wages4 ,= example2 ( t5 ?\s& m5 receiv+ five doll>s a day1 n9e ?\s& may be will+ to "w = f\r doll>s r ?an quit _! pres5t jobs4 ,b ! o!r ?\s& set _! m9imum price at five doll>s4 ,if ! wage is r$uc$ to f\r doll>s ^! m5 w get employm5t else:]e1 ?us caus+ su* an excess ( dem& ov] supply z to =ce ! wage rate back to five doll>s4 ,! same ?+1 x is cont5d$1 w happ5 :5 ! high-pric$ section ( ! sav]s1 ! m>g9al sav]s1 discont9ue sav+ on acc\nt ( ! artificial l[]+ ( ! rate ( int]e/4 ,! analogy1 h[ev]1 is mislead+4 ,! m>g9al "o ?\s& wage e>n]s refuse to "w = f\r doll>s a day because !y c get bett] comp5sation 9 "s o!r occupation4 ,?is ph5om5on has be5 prov$ ov] & ov] aga9 by obs]vation & exp]i5ce4 ,on ! o!r h&1 !re is no exp]i5ce1 no positive evid5ce1 :i* %[s or t5ds to %[ t any necess>y gr\p ( pres5t sav]s w\ld discont9ue or mat]ially r$uce _! accumulations if !y 7 no long] able to secure ! pres5t rate ( int]e/4 ,if ! rate 7 l[]$ simultane\sly 9 all civilis$ c\ntries ! dissatisfi$ sav]s1 unlike ! dissatisfi$ lab\r]s1 w\ld n be able to get a bett] price = _! capital else:]e4 ,_! only alt]native w\ld be to sp5d _! actual or pot5tial sav+s = pres5t enjoym5t4 ,n[ we h no empirical data to ju/ify ! assumption t any consid]able numb] ( sav]s w\ld *oose ?is alt]native 9 pref]5ce to1 say1 ?ree or two p] c5t4 int]e/4 ,! fact t any gr\p ( sav]s at pres5t gets & insi/s on gett+ a high] rate1 m]ely proves t !y c get x1 & t !y are selfi% en\gh to take advantage ( ! possibility4 ,we "k t "s m5 :o n[ obta9 six p] c5t4 int]e/ w\ld accept two r ?an cease to save2 yet !y d n hesitate to dem& six p] c5t4 ,s f> z we "k1 all pres5t sav]s might take ! same attitude4 ,at any rate1 we c n conclude t !y w\ld n take less f ! fact t !y n[ get m4 ,:y !n does n ! rate ( int]e/ fall8 ,if all pres5t sav]s are gett+ a high] rate ?an is necess>y to induce !m to save1 :y d !y n increase _! sav+s to su* an ext5t t ! supply ( capital w exce$ ! pres5t volume ( dem&1 & ?us lead to a decl9e 9 ! rate ( int]e/8 ,?is is :at happ5s :5 ! price ( consumption-goods rises appreciably above ! m9imum level t satisfies ! mo/ high-pric$ or m>g9al produc]s4 ,!re is1 h[ev]1 an important diff]5ce betwe5 ! two cases4 ,! capacity to produce m goods is practically unlimit$1 & ! correspond+ desire is also unlimit$1 s long z ! price ( ! product exce$s ! co/ ( production4 ,! capacity to save is n unlimit$1 & ! desire to save is neutralis$ & %>ply re/rict$ by o!r & m p[]ful desires4 ,h5ce x is q possible t ! price ( capital1 i4e41 int]e/1 is det]m9$ to only a slight degree by ! co/ ( sav+1 be+ ma9ly dom9at$ & regulat$ f ! side ( dem&4 ,ev5 ?\gh _m ( ! pres5t sav]s & own]s ( capital %\ld dim9i% or discont9ue _! functions on acc\nt ( a fall 9 ! rate ( int]e/1 a r$uction w\ld n necess>ily take place 9 ! supply ( capital4 ,! function ( ^! m>g9al sav]s w\ld 9 all probability be p]=m$ by o!r p]sons1 :o w\ld be compell$ to increase _! accumulations 9 ord] to provide z well = ! future z !y _h previ\sly be5 able to provide ) a small] capital at a high] rate ( int]e/4#adc ,:e!r at ,lea/ ,two ,p] ,c5t4 ,is ,necess>y ,:ile admitt+ t ! pres5t rate is unnecess>ily high1 ,pr(essor ,cassel ma9ta9s t a c]ta9 important class ( sav]s w\ld dim9i% v consid]ably _! accumulations if ! int]e/ rate %\ld fall mu* bel[ two p] c5t4 ,?is class comprises ^? p]sons ^: ma9 object 9 sav+ is a fund :i* w "s day support !m f its int]e/4 ,at six p] c5t4 a p]son c accumulate 9 ab\t twelve ye>s a sum suffici5t to provide him ) an int]e/-income equal to ! am\nt annually sav$4 ,= example2 two ?\s& doll>s put aside e ye>1 & subject$ to comp\nd int]e/1 w aggregate 9 twelve ye>s a pr9cipal capable ( yield+ an annual income ( two ?\s& doll>s4 ,at two p] c5t4 ! same am\nt ( ye>ly sav+ w n lead to ! same income 9 less ?an ?irty-five ye>s4 ,if ! rate be "o & "o-half p] c5t41 =ty-sev5 ye>s w be requir$ to produce ! desir$ income4 ,h5ce1 concludes ,cassel1 if ! rate falls bel[ two p] c5t4 ! av]age man w decide t life is too %ort to provide = ! future by means ( an int]e/-income1 & w expect to draw ^u 8 pr9cipal4 ,?is means t he w n ne$ to save z mu* z :5 he s\ght to accumulate a capital l>ge en\gh to support him out ( its int]e/ alone4 ,! argum5t is plausible b n conclusive4 ,if ! rate ( int]e/ is s l[ t a man mu/ save = =ty-sev5 ye>s 9 ord] to obta9 a suffici5t int]e/-income to support him 9 8 decl9+ ye>s1 he w r>ely atta9 t end4 ,9 ! great majority ( in/ances m5 :o are unable to save m annually ?an ! am\nt t !y w ne$ ea* ye> 9 old age1 w expect & be compell$ to use up a "p or all ( _! capital 9 ! p]iod foll[+ ! cessation ( _! economic usefulness4 ,nev]!less1 x does n foll[ t !y w save less at "o & "o-half p] c5t4 ?an at six p] c5t4 ,! det]m9+ factor 9 ! situation is ! attitude ( ! sav] t[>d ! capital sum accumulat$4 ,he ei!r desires or does n desire to leave ?is beh9d him4 ,9 ! latt] case he w save only z mu* z is necess>y to provide an annual income compos$ p>tly ( int]e/ & p>tly ( ! pr9cipal4 ,if ?is contemplat$ income is two ?\s& doll>s1 & ! rate ( int]e/ is six p] c5t41 he w n ne$ to save t mu* annually = z long a p]iod z t5 ye>s4 ,he c dim9i% ei!r ! ye>ly am\nt sav$ or ! l5g? ( "t devot$ to sav+4 ,on ! o!r h&1 if ! rate is only "o & "o-half p] c5t4 he w be compell$ to save a l>g] total 9 ord] to secure an equal accumulation & an equal provision = ! future4 ,9 all cases1 !re=e1 9 :i* ! sav+ is c>ri$ on m]ely = ! sav]'s own lifetime x w be increas$ in/ead ( decreas$ by a l[ rate ( int]e/4 ,if ! sav] does desire to bequea? 8 capital he w n always be det]r$ f ?is purpose m]ely because he is compell$ to use "s ( ! capital = ! satisfaction ( 8 own wants4 ,take ! man :o c save two ?\s& doll>s a ye>1 & ) ! rate ( int]e/ at six p] c5t4 assure himself an int]e/-income ( ! same am\nt1 & :o int5ds to leave ! pr9cipal 7"s ?irty-?ree ?\s& doll>s7 to 8 *ildr54 ,%\ld ! rate fall to "o & "o-half p] c5t4 he w\ld be unable to accumulate & bequea? ne>ly su* a l>ge sum4 ,surely ?is fact1 disc\rag+ z x is1 w n det]m9e him to save no?+4 ,he w n1 z ,cassel's argum5t assumes1 decide to leave no?+ to 8 *ildr51 & cont5t himself ) t am\nt ( sav+ :i* w suffice to provide = 8 own future4 ,9 all probability he w try to accumulate a sum :i*1 ev5 :5 dim9i%$ by future d$uctions = 8 own wants1 w approximate z closely z possible ! am\nt t he c\ld h bequea!d _h ! rate rema9$ at six p] c5t4 ,?is means t he w save m at ! l[ ?an at ! high rate ( int]e/4 ,! relative insignificance ( ! sum :i* w\ld be sav$ at a l[ rate might sometimes1 inde$1 det] a p]son f sav+ = te/am5t>y purposes4 ,) ! rate at six p] c5t41 a man might be will+ to save six hundr$ doll>s a ye> = a suffici5tly long p]iod to provide a legacy ( tw5ty ?\s& doll>s to an educational in/itution4 ,) ! rate at "o & "o-half p] c5t41 ! am\nt t he c\ld hope to accumulate w\ld be s mu* small] t x might seem to him n wor? :ile1 & he w\ld decl9e to save ! six hundr$ doll>s annually4 ,cases ( ?is k9d1 h[ev]1 always involve ! second>y objects ( sav+1 ! luxuries r ?an ! necess>ies ( te/am5t>y transmission4 ,!y d n include su* prim>y objects z provision = "o's family4 ,:5 ! av]age man f9ds t he _c leave to 8 family z mu* z he w\ld desire1 z mu* z he w\ld h bequea!d to !m at a high] rate ( int]e/1 he w /rive to increase r ?an decrease 8 ef=ts to save = ?is purpose4 ,speak+ g5]ally1 !n1 we conclude t ! assumption und]ly+ ,pr(essor ,cassel's !ory is contradict$ by our exp]i5ce ( human motives & practices4 ,m5 :o save ma9ly = a future int]e/-income1 at ! same "t wi%+ to keep ! pr9cipal intact until dea?1 & :o c\ld h fully realis$ ?is desire "u a high int]e/ rgime1 w n become entirely indiff]5t to x :5 !y f9d t !y _c atta9 x completely4 ,!y w ord9>ily try to leave beh9d !m z l>ge a capital or pr9cipal z !y c4 ,h5ce !y w save m r ?an less4 ,:e!r ,any ,int]e/ ,is ,necess>y ,p]haps ! be/ kn[n rec5t /atem5t ( ! op9ion t int]e/ is inevitable1 appe>s 9 ,pr(essor ,irv+ ,fi%]'s ,! ,rate ( ,int]e/4#add ,:ile he does n ass]t explicitly t suffici5t capital w\ld n be provid$ )\t int]e/1 & ev5 admits t 9 c]ta9 circum/ances int]e/ might disappe>1 ! g5]al logic & implications ( 8 argum5t are decid$ly aga9/ ! supposition t society c\ld ev] get along )\t int]e/4 ,he lays su* /ress ^u ! factor ( impati5ce1 i4e41 man's unwill+ness to wait = future goods1 z to sugge/ /rongly t o!r causes ( int]e/1 & ! numb] ( sav]s free f impati5ce1 are q insignificant4 ,n[1 if impati5ce 7 ! only cause ( int]e/ ! latt] mu/ cont9ue z long z impati5ce cont9ues2 & if practically all sav]s1 actual & possible1 are completely dom9at$ by impati5ce ! abolition ( int]e/ w\ld be socially disa/r\s4 ,h[ev]1 nei!r ( ^! assumptions is demon/rable4 ,we h j se5 t ! pres5t rate ( int]e/ has o!r causes ?an impati5ce2 t a l>ge proportion ( sav]s insi/ ^u gett+ ! pres5t rate1 n because !y require x to (fset _! impati5ce1 b simply because !y c obta9 x1 & because !y pref] x to ! l[] rate4 ,!re=e1 ! m]e exi/5ce ( ! pres5t rate does n prove x to be necess>y4 ,by ! same argum5t x is evid5t t ! exi/5ce ( any int]e/ does n demon/rate ! necessity ( "s int]e/4 ,9 ! second place1 ! numb] ( sav]s1 pres5t & prospective1 ^: impati5ce is s weak z to p]mit !m to save )\t int]e/1 is probably great] ?an ! av]age read] ( ,pr(essor ,fi%]'s pages is l$ to assume4 ,! "q :e!r int]e/ is necess>y _c be answ]$ by ref]5ce to ! g5]al fact ( human impati5ce2 x dem&s a prelim9>y analysis ( ! ext5t to :i* impati5ce affects ! diff]5t classes ( sav]s4 ,) int]e/ aboli%$1 ^? p]sons :o 7 will+ to subord9ate pres5t second>y satisfactions to ! prim>y future ne$s ( !mselves & _! families1 w\ld save at lea/ z mu* = ^! purposes z :5 !y c\ld h obta9$ int]e/4 ,mo/ ( !m w\ld probably save m 9 ord] to r5d] _! future provision z ne>ly z possible equal to :at x w\ld h be5 _h int]e/ accru$ on _! annual sav+s4 ,:e!r a p]son int5d$ to leave all 8 accumulations1 or "p ( !m1 or none ( !m to po/]ity1 he w\ld /ill desire !m to be z l>ge z !y might h be5 9 a rgime ( int]e/4 ,9 ord] to realise ?is desire1 he w\ld be compell$ to increase 8 sav+s4 ,& x is reasonable to expect t ?is is precisely ! c\rse t w\ld be foll[$ by m5 ( av]age ?rift & =esight4 ,su* m5 reg>d future necess>ies & com=ts1 :e!r = !mselves or _! *ildr51 z m important ?an pres5t non-ess5tials & luxuries4 ,int]e/ or no int]e/1 prud5t m5 w subord9ate ! latt] goods to ! =m]1 & w save money accord+ly4 ,:51 h[ev]1 bo? future & pres5t goods are ( ! same ord] & importance1 ! future is no long] pref]r$ to ! pres5t4 ,9 t case ! pref]5ce is rev]s$4 ,! luxuries ( to-day are m ke5ly priz$ ?an ! luxuries ( to-morr[4 ,if ! latt] are to be pref]r$ !y mu/ possess "s advantage ov] ! luxuries t might be obta9$ "h & n[4 ,su* advantage may arise 9 v>i\s ways2 = example1 :5 a man decides t he w h m leisure = a =eign j\rney two ye>s h5ce ?an ?is ye>1 or :5 he pref]s a l>ge am\nt ( future enjoym5t at "o "t to pres5t satisfactions tak5 9 small doses4 ,b ! mo/ g5]al me?od ( conf]r+ advantage ^u ! second>y satisfactions ( ! future z comp>$ ) ^? ( ! pres5t1 is to increase ! quantity4 ,! majority ( =esee+ p]sons are will+ to pass by "o hundr$ doll>s' wor? ( enjoym5t n[ = ! sake ( "o hundr$ & five doll>s' wor? "o ye> h5ce4 ,?is advantage ( quantity is provid$ ?r\gh ! receipt ( int]e/4 ,x affects all ^? p]sons ^: sav+1 z not$ 9 ! la/ *apt]1 involves a sacrifice = :i* ! only adequate comp5sation is int]e/1 & likewise all ^? p]sons :o are 9 a position to *oose betwe5 pres5t & future luxuries4 ,7 int]e/ suppress$ ^! classes ( p]sons w\ld cease to save = ?is k9d ( future goods4 ,accord+ to ,pr(essor ,taussig1 mo/ sav+ is done by ! well-to-d & ! ri*4#ade ,on ?is hypo!sis x seems probable t ! abolition ( int]e/ w\ld dim9i% ! sav+s & capital ( ! community v consid]ably2 = ! accumulations ( ! weal?y are d]iv$ ma9ly f int]e/ r ?an f sal>ies4 ,on ! o!r h&1 ! suppression ( int]e/ %\ld br+ ab\t a mu* wid] diffusion ( weal?4 ,! sums =m]ly paid out z int]e/1 w\ld be di/ribut$ among ! masses ( ! population z increas$ wages & r$uc$ co/s ( liv+4 ,h5ce ! masses w\ld possess an imm5sely increas$ capacity = sav+1 :i* might (fset or ev5 exce$ ! loss ( sav+-p[] among ^? :o n[ receive int]e/-incomes4#adf ,to sum up ! results ( our inquiry conc]n+ ! necessity ( int]e/3 ,! fact t m5 n[ receive int]e/ does n prove t !y w\ld n save )\t int]e/4 ,! fact t _m m5 w\ld c]ta9ly save )\t int]e/ does n prove t a suffici5t am\nt w\ld be sav$ to provide ! community ) ! necess>y supply ( capital4 ,:e!r ! sav+s ( ^? classes t increas$ _! accumulations w\ld c\nt]act ! decreases 9 ! sav+ ( ! ri*] classes1 is a "q t admits ( no def9ite or confid5t answ]4 ,! ,/ate ,is ,ju/ifi$ 9 ,p]mitt+ ,int]e/ ,if we assume t ! suppression ( int]e/ w\ld cause a consid]able decl9e 9 sav+ & capital1 we mu/ conclude t ! community w\ld be worse (f ?an "u ! pres5t sy/em4 ,to dim9i% greatly ! in/rum5ts ( production1 & consequ5tly ! supply ( goods = consumption1 w\ld create f> m h>d%ip ?an x w\ld relieve4 ,:ile workless incomes w\ld be suppress$1 & p]sonal incomes m ne>ly equalis$1 ! total am\nt available = di/ribution w\ld probably be s mu* small] z to cause a det]ioration 9 ! condition ( e class4 ,9 ?is hypo!sis ! ,/ate w\ld d wrong to aboli% ! sy/em ( int]e/4 ,if1 h[ev]1 we assume t no consid]able am\nt ( evil w\ld foll[1 or t ! balance ( results w\ld be fav\rable1 ! "q ( ! prop] action ( ! ,/ate becomes some:at complex4 ,9 ! fir/ place1 int]e/ c\ld n rightfully be suppress$ :ile ! private tak+ ( r5t rema9$4 ,to adopt su* a c\rse w\ld be to treat ! receiv]s ( prop]ty incomes inequitably4 ,l&[n]s w\ld cont9ue to receive an income f _! prop]ty1 :ile capital own]s w\ld n2 yet ! moral claims ( ! =m] to income are no bett] ?an ^? ( ! latt]4 ,9 ! second place1 ! ,/ate w\ld be oblig$ to comp5sate ! own]s ( exi/+ capital in/rum5ts = ! decl9e 9 value :i*1 z we h already se51 w\ld occur :5 ! item ( int]e/ 0 elim9at$ f ! co/ ( reproduc+ su* capital in/rum5ts4 ,x w\ld likewise be "u moral obligation to comp5sate l&[n]s = :atev] decrease 9 value befell _! prop]ty z a result ( ! abolition ( r5t4 ,nev]!less1 ! practical difficulties confront+ ! legal abolition ( int]e/ are app>5tly s great z to r5d] ! attempt socially unwise & futile4 ,9 ord] to be effective ! prohibition w\ld h to be int]national4 ,7 x en=c$ 9 only "o or 9 a few c\ntries1 ^! w\ld suff] f> m ?r\gh ! flight ( capital ?an !y w\ld ga9 ?r\gh ! abolition ( int]e/4 ,! te*nical ob/acles 9 any case w\ld be well nigh insup]able4 ,if ! attempt 7 made to suppress int]e/ on produc+ capital1 z well z on loans1 ! civil au?orities w\ld be unable to det]m9e ) any degree ( precision :at "p ( ! gross returns ( a bus9ess 0 pure int]e/1 & :at "p 0 a necess>y comp5sation = risk & ! lab\r ( managem5t4 ,%\ld ! ,/ate try to solve ?is problem by all[+ ! directors ( indu/ry v>y+ sal>ies to correspond ) _! comp>ative degrees ( effici5cy1 & diff]5t rates ( insurance-paym5ts to repres5t ! diff]5t risks1 x w\ld inevitably make "s all[ances s l[ z to disc\rage lab\r & ent]prise1 & o!rs s high z to give ! recipi5ts a consid]able am\nt ( pure int]e/ 9 ! guise ( pr(its & sal>ies4 ,%\ld x fix a flat rate ( sal>ies & pr(its1 ! m effici5t und]tak]s w\ld refuse to put =? _! be/ ef=ts1 & ! m p]il\s ent]prises w\ld n be und]tak54 ,! sup]vision ( exp5ses1 receipts1 & o!r details ( bus9ess t w\ld be requir$ to prev5t evasion ( ! law1 w\ld n improbably co/ m ?an ! total am\nt n[ paid 9 ! =m ( int]e/4 ,on ! o!r h&1 if ! me?od ( suppression 7 conf9$ to loans x w\ld probably prove only a little less futile ?an ! ef=t to aboli% int]e/ on productive capital4 ,! great majority ( ^? :o 7 prev5t$ f l5d+ at int]e/ w\ld inve/ _! money 9 /ocks1 l&1 build+s1 & o!r =ms ( productive prop]ty4 ,moreov]1 x is probable t a l>ge volume ( loans w\ld be made despite ! prohibition4 ,9 ! ,middle ,ages1 :5 ! am\nt ( money available = l5d+ 0 comp>atively small1 & :5 ,/ate & ,*ur* & public op9ion 7 unanim\s 9 fav\r ( ! policy1 ! legal prohibition ( loans 0 only p>tially effective4 ,n[ t ! supply ( & ! dem& = loans h enorm\sly increas$1 & int]e/ is n def9itely disapprov$ by ! ,*ur* or ! public1 a simil> ef=t by ! ,/ate w\ld und\bt$ly prove a failure4 ,ev5 if x 7 entirely successful x w\ld only decrease1 n aboli%1 int]e/ on productive capital4#adg ,9 view ( ! manifold & grave unc]ta9ties ( ! situation1 x is practically c]ta9 t mod]n ,/ates are ju/ifi$ 9 p]mitt+ int]e/4 ,civil ,au?orisation n ,suffici5t = ,individual ,ju/ification ,?is ju/ification ( ! attitude ( ! ,/ate does n ( itself demon/rate t ! capitali/ has a "r to accept int]e/4 ,! civil law tol]ates _m actions :i* are morally wrong 9 ! individual2 = example1 ! paym5t ( />vation wages1 ! extortion ( unju/ prices1 & ! traffic 9 immorality4 ,obvi\sly legal tol]ation does n p] se nor always exon]ate ! individual (f5d]4 ,h[1 !n1 %all we ju/ify ! individual receiv] ( int]e/8 ,z already po9t$ out m ?an once1 ^? p]sons :o w\ld n save )\t int]e/ are ju/ifi$ on ! gr\nd ( sacrifice4 ,s long z ! community desires _! sav+s1 & is will+ to pay int]e/ on !m1 ! sav]s may take int]e/ z ! fair equival5t ( ! inconv5i5ce t !y und]go 9 p]=m+ ?is social s]vice4 ,! precise problem be=e u1 !n1 is ! ju/ification ( ^? sav]s & capitali/s :o d n ne$ ! inducem5t ( int]e/1 & ^: functions ( sav+ & cons]v+ capital are suffici5tly comp5sat$ )\t int]e/4 ,x is a fact t ! civil law c sometimes create moral rights & obligations4 ,= example2 ! /atute requir+ a p]son to repair losses t he has un9t5tionally inflict$ ^u 8 neighb\r is held by ! moral !ologians to be b9d+ 9 consci5ce1 z soon z ! matt] has be5 adjudicat$ by ! c\rt4 ,9 o!r words1 ?is civil regulation conf]s on ! injur$ man prop]ty rights1 & imposes on ! morally inculpable injur] prop]ty obligations4 ,! civil /atutes also give moral validity to ! title ( prescription1 or adv]se possession4 ,:5 ! ali5 possessor has compli$ ) ! legal provisions t apply1 he has a moral "r to ! prop]ty1 ev5 ?\gh ! orig9al own] %\ld ass]t 8 claim at a lat] "t4 ,"s moral !ologians ma9ta9 t a legal dis*>ge 9 bankruptcy lib]ates ! bankrupt f ! moral obligation ( satisfy+ 8 unpaid debts4 ,sev]al o!r situations might be cit$ 9 :i* ! ,/ate admitt$ly creates moral rights ( individual own]%ip :i* w\ld h no def9ite exi/5ce 9 ! abs5ce ( su* legal action & au?orisation4#adh ,?is pr9ciple w\ld seem to h receiv$ a p>ticul>ly p]t95t application = our inquiry 9 ! doctr9e ( prmium legale z a title ( int]e/ on loans4 ,9 ! ,opus ,morale ( ,ball]9i-,palmi]i c be f\nd a long li/ ( moral !ologians liv+ 9 ! sev5te5? & eighte5? c5turies :o ma9ta9$ t ! m]e legal sanction ( a c]ta9 rate ( int]e/ 0 a suffici5t moral ju/ification = ! l5d]4#adi ,:ile hold+ to ! traditional doctr9e t int]e/ 0 n capable ( be+ ju/ifi$ on intr9sic gr\nds1 ^! writ]s cont5d$ t by virtue ( its p[] ( em95t doma9 ! ,/ate c\ld transf] f ! borr[] to ! l5d] ! "r to ! int]e/ paid on a loan4 ,!y did n mean t ! ,/ate c\ld arbitr>ily take "o man's prop]ty & h& x ov] to ano!r1 b only t1 :5 x sanction$ int]e/ = ! public welf>e1 ?is extr9sic circum/ance 7l ! o!r extr9sic titles approv$ by morali/s7 annull$ ! claim ( ! borr[] 9 fav\r ( ! l5d]4 ,9 o!r words1 !y ma9ta9$ t ! money paid 9 loan-int]e/ did n belong to ei!r borr[] or l5d] ) c]ta9ty or def9it5ess until ! matt] 0 det]m9$ by economic conditions & extr9sic circum/ances4 ,h5ce legal au?orisation = ! common good 0 morally suffici5t to aw>d x to ! l5d]4 ,m ?an "o ( !m decl>$ t ! ,/ate _h ! same "r to det]m9e ?is indet]m9ate prop]ty1 to assign ! own]%ip to ! l5d]1 t x _h to transf] prop]ty titles by ! device ( prescription4 ,& _! g5]al position seems to h be5 confirm$ by ! response ( ! ,congregation ( ! ,po5it5ti>ia1 ,feb41 #ahcb1 to ! ,bi%op ( ,v]ona1 ! sub/ance ( :i* 0 t a confessor might adopt & act ^u ?is position4#aej ,& yet1 nei!r ?is nor any ( ! o!r prec$5ts cit$ above1 are suffici5t to give c]ta9 moral sanction to ! practice ( int]e/-tak+ by ^? p]sons :o w\ld cont9ue to save if int]e/ 7 aboli%$4 ,all ! acts ( legal au?orisation t we h be5 consid]+ relate to practices :i* are b5eficial & necess>y to society4 ,only 9 su* cases has ! ,/ate ! moral au?ority to create or annul prop]ty rights4 ,9 ! sev5te5? & eighte5? c5turies ! legal au?orisation ( a c]ta9 rate ( int]e/ made t rate morally lawful simply because ?is legal act gave =mal & au?oritative te/imony to ! social utility ( int]e/-tak+4 ,! ,/ate m]ely decl>$ ! reasonabl5ess1 & fix$ ! prop] limits ( ! practice4 ,! b5efic5t effect ( int]e/-tak+ ^u society 0 its und]ly+ ju/ification1 0 ! ultimate fact :i* made x reasonable1 & :i* gave to ! action ( ! ,/ate moral value4 ,_h ! tak+ ( int]e/ on loans n be5 all[$ ! bulk ( possible sav+s w\ld ei!r n h be5 sav$ at all1 or w\ld h be5 ho>d$ in/ead ( conv]t$ into capital4 ,& t money 0 badly ne$$ 9 ! comm]cial & indu/rial op]ations ( ! "t4 ,h5ce ! own]s ( x 7 9 ! position ( p]sons :o reg>d$ sav+ & inve/+ z a sacrifice = :i* int]e/ 0 a necess>y & prop] comp5sation4 ,to-day1 h[ev]1 !re are millions ( p]sons :o w\ld cont9ue to p]=m bo? ^! functions )\t ! inducem5t ( int]e/4 ,!re=e1 ! public good does n require t !y %\ld receive int]e/1 nor t ! ,/ate %\ld h ! p[] to clo! _! int]e/-incomes ) moral lawfulness4 ,inasmu* z ! ,/ate is n c]ta9 t ! abolition ( int]e/ w\ld be socially exp$i5t or practically possible1 x is ju/ifi$ 9 p]mitt+ ! in/itution to cont9ue2 b x has no p[] to affect ! morality ( int]e/-tak+ z an individual action4 ,h[ ! ,int]e/-,tak] ,is ,ju/ifi$ ,al?\gh ! int]e/ receiv$ by ! non-sacrifice sav]s is n cle>ly ju/ifiable on ei!r intr9sic or social gr\nds1 x is n utt]ly lack+ 9 moral sanctions4 ,9 ! fir/ place1 we h n cont5d$ t ! intr9sic factors ( productivity & s]vice are c]ta9ly invalid morally4 ,we h m]ely insi/$ t ! moral wor? ( ^! titles has nev] be5 satisfactorily demon/rat$4 ,possibly !y h a great] & m def9ite efficacy ?an has yet be5 %[n by _! advocates4 ,9 m concrete t]ms1 we admit t ! productivity ( capital & ! s]vice ( ! capitali/ to ! community1 are possible & d\btful titles to int]e/4 ,a d\btful title to prop]ty is1 inde$1 insuffici5t by itself4 ,9 ! case ( ! int]e/ receiv]1 h[ev]1 ! d\btful titles ( productivity & s]vice are re9=c$ by ! fact ( possession4 ,?us supplem5t$1 !y are suffici5t to ju/ify ! non-sacrifice sav] 9 giv+ himself ! b5efit ( ! d\bt z reg>ds ! validity ( 8 "r to take int]e/4 ,to be sure1 ?is indef9ite & unc]ta9 claim w\ld be ov]?r[n by a m def9ite & positive title4 ,b no su* antagoni/ic title exi/s4 ,nei!r ! consum] nor ! lab\r] c %[ any conclusive reason :y int]e/ %\ld g to him r ?an to ! capitali/4 ,h5ce ! latt] has at lea/ a presumptive title4 ,9 ! circum/ances ?is is morally suffici5t4 ,to ?is ju/ification by presumption mu/ be add$ a ju/ification by analogy4 ,! non-sacrifice sav]s seem to be 9 ab\t ! same position z ^? o!r ag5ts ( production ^: rew>ds are out ( proportion to _! sacrifices4 ,= example2 ! lab\r] ( sup]ior native ability gets z mu* comp5sation = ! same quality & quantity ( "w z 8 companion :o has only ord9>y ability2 & ! exceptionally intellig5t bus9ess man /&s 9 ! same relation to 8 less effici5t competitor2 yet ! sacrifices und]gone by ! =m] ( ea* pair is less ?an t suff]$ by ! latt]4 ,x w\ld seem t if ! m effici5t m5 may prop]ly take ! same rew>ds z ^? :o make l>g] sacrifices1 ! non-sacrifice capitali/ might lawfully accept ! same int]e/ z ! man ^: sav+ involves "s sacrifice4 ,on ?is pr9ciple ! l5d]s :o w\ld n h inve/$ _! money 9 a productive ent]prise 7 nev]!less p]mitt$ by ! morali/s ( ! po/-m$ival p]iod to take advantage ( ! title ( lucrum cessans4 ,al?\gh !y _h rel9qui%$ no opportunity ( ga91 nor made any sacrifice1 !y 7 put on ! same moral level z sacrific+ l5d]s1 & 7 all[$ to take ! same int]e/4 ,z a det]m9ant ( own]%ip1 possession is ! feeble/ ( all factors1 & yet x is ( consid]able importance = a l>ge proportion ( incomes & prop]ty4 ,9 ! di/ribution ( ! national product1 z well z 9 ! division ( ! orig9al h]itage ( ! e>?1 a l>ge "p is play$ by ! title ( fir/ occupancy4 ,mu* ( ! product ( indu/ry is assign$ to ! ag5ts ( production ma9ly on ! basis ( inculpable possession4 ,t is2 x goes to its receiv]s automatically1 9 ex*ange = b5efits to ^? :o h& x ov]1 & )\t excessive exploitation ( _! ne$s4 ,j z ! fir/ arrival on a piece ( l& may reg>d x z a no-man's t]ritory1 & make x 8 own by ! m]e device ( appropriation1 s ! capitali/ may get morally valid possession ( int]e/4 ,sometimes1 inde$1 ?is debatable %>e1 ?is no-man's %>e ( ! product ( indu/ry1 is secur$ 9 "s "p by ! consum] ( ! lab\r]4 ,9 su* cases _! title to x is j z valid z ! title ( ! capitali/1 not)/&+ ! d\btful titles ( productivity & s]vice :i* ! latt] has 9 8 fav\r4 ,fir/ occupancy & possession are ! m decisive factors4 ,9 ! great majority ( in/ances1 h[ev]1 ! capitali/ is ! fir/ occupant1 & !re=e ! lawful possessor ( ! int]e/-%>e4 ,! g5]al ju/ification ( int]e/ set =? 9 ! imm$iately prec$+ p>agraphs is supplem5t$ 9 ! case ( ! great majority ( capital own]s by ! fact t _! income f ?is s\rce is relatively insignificant4 ,! av]age income ( ! f>m]s ( ! ,unit$ ,/ates is only #gbd doll>s p] ye>1 & ( ?is #cbb doll>s is int]e/ on ! capital inve/$ 9 ! f>m4#aea ,ev5 :5 we make due all[ance = ! high pur*as+ p[] ( f>m incomes1 due to ! l[] co/ ( food/uffs & h\se r5t1 ! total am\nt ( #gbd doll>s provides only a v mod]ate liv+4 ,consequ5tly ! great majority ( f>m]s c reg>d ! int]e/ t !y receive z a necess>y "p ( ! remun]ation t is fairly due !m on acc\nt ( _! lab\r1 sacrifices1 & risks4 ,s f> z !y are conc]n$1 ! ju/ification ( int]e/1 z int]e/1 is n a practical "q4 ,! same obs]vation applies to ! majority ( urban bus9ess m51 su* z small m]*ants & manufactur]s4 ,_! int]e/ c be ju/ifi$ z n m ?an fair wages & pr(its4 ,aga91 !re is a l>ge numb] ( int]e/ receiv]s :o are entirely dep5d5t ^u ?is k9d ( income1 & :o obta9 !refrom only a mod]ate livelihood4 ,!y are ma9ly *ildr51 ag$ p]sons1 & invalids4 ,unlike ! classes j describ$1 !y _c ju/ify _! int]e/ z a fair supplem5t to wages2 h[ev]1 !y may reasonably claim x z _! equitable or *>itable %>e ( ! common h]itage ( ! e>?4 ,if !y did n receive ?is int]e/-income !y w\ld h to be support$ by _! relatives or by ! ,/ate4 ,= _m reasons ?is w\ld be a mu* less desirable arrangem5t4 ,consequ5tly _! g5]al claim to int]e/ is supplem5t$ by consid]ations ( human welf>e4 ,! diff]5ce betwe5 ! e?ical "* ( ! int]e/ discuss$ 9 ! la/ two p>agraphs & ( t receiv$ by p]sons :o possess l>ge incomes1 is too (t5 ov]look$ 9 te*nical treatises4 ,e man own+ any productive goods is reckon$ z a capitali/1 & assum$ to receive int]e/4 ,if1 h[ev]1 a man's total int]e/-income is s small t :5 comb9$ ) all 8 o!r rev5ues x m]ely completes ! equival5t ( a dec5t liv+1 x is surely ( v little significance z int]e/4 ,x /&s 9 no su* ne$ ( ju/ification z ! int]e/ obta9$ by m5 ^: incomes am\nt to1 say1 t5 ?\s& doll>s a ye> & upw>ds4 ,/ill ano!r confirmatory title ( int]e/ is sugge/$ by ! foll[+ well kn[n decl>ation ( ,/4 ,?omas ,aqu9as3 ,! possession ( ri*es is n 9 itself unlawful if ! ord] ( reason be obs]v$3 t a man %\ld possess ju/ly :at he owns1 & use x 9 a prop] mann] = himself & o!rs4#aeb ,nei!r j acquisition nor prop] use is alone suffici5t to r5d] private possessions morally good4 ,bo? mu/ be pres5t4 ,z we h se5 above1 ! capitali/ c appeal to c]ta9 presumptive & analog\s titles :i* ju/ify practically 8 acquisition ( int]e/2 b !re c be no d\bt t 8 claim & 8 moral p[] ( disposal are consid]ably /r5g!n$ :5 he puts 8 int]e/-income to a prop] use4 ,"o way ( s us+ x is = a reasonable livelihood1 z exemplifi$ 9 ! case ( ! f>m]s1 bus9ess m51 & non-work]s :om we consid]$ above4 ,^? p]sons :o receive incomes 9 excess ( _! reasonable ne$s c\ld devote ! surplus to religion1 *>ity1 education1 & a great v>iety ( altrui/ic purposes4 ,we %all deal ) ?is matt] specifically 9 ! *apt] on ! ,duty ( ,di/ribut+ ,sup]flu\s ,weal?4 ,9 ! meantime x is suffici5t to note t ! ri* man :o makes a b5evol5t use ( 8 int]e/-income has a special reason = believ+ t 8 receipt ( int]e/ is ju/ifi$4 ,! decisive value attribut$ to presumption1 analogy1 possession1 & d\btful titles 9 our v9dication ( ! capitali/'s claim to int]e/1 is no d\bt disappo9t+ to ^? p]sons :o desire cle>-cut ma!matical rules & pr9ciples4 ,nev]!less1 !y are ! only factors t seem to be available4 ,:ile ! title t !y conf] ^u ! int]e/ receiv] is n z def9ite nor z noble z t by :i* ! lab\r] claims 8 wages or ! bus9ess man 8 pr(its1 x is morally suffici5t4 ,x w rema9 logically & e?ically un%ak5 until m cog5t argum5ts h be5 br\ght aga9/ x ?an h yet appe>$ 9 ! d5unciations ( ! income ( ! capitali/4 ,& :at is true ( him is likewise true ( ! r5t receiv]1 & ( ! p]son :o pr(its by ! une>n$ increm5t ( l& values4 ,9 all ?ree cases ! presumptive ju/ification ( workless incomes w probably rema9 valid z long z ! pres5t indu/rial sy/em endures4 ,,footnotes3 #adb ,gr[? ( ,capital1 p4 #aeb4 #adc ,cf4 ,gonn]1 ,int]e/ & ,sav+1 p4 #gc2 ,cassel1 ,! ,nature & ,necessity ( ,int]e/1 *4 iv4 #add ,new ,york1 #aijg4 #ade ,pr9ciples ( ,economics1 ,,ii1 #db4 #adf ,cf4 ,hobson1 ,! ,economics ( ,di/ribution1 pp4 #bei-bfe4 #adg ,cf4 ,fi%]1 ,elem5t>y ,pr9ciples ( ,economics1 pp4 #cif1 #cig4 ,h[ev]1 he does n discuss 9 ?is passage ! possibility ( suppress+ int]e/ on productive capital by a direct me?od4 #adh ,cf4 ,lehmkuhl1 ,!ologia ,moralis1 ,i1 nos4 #iag1 #ife1 #ajce4 #adi ,vol4 #c1 pp4 #fag-fbi2 #b;d ed4 #aej ,ball]9i-,palmi]i1 loc4 cit42 cf4 ,van ,roey1 op4 cit41 pp4 #gc-ge4 #aea ,cf4 ,am]ican ,economic ,review1 ,m>*1 #aiaf2 p4 #df4 #aeb ,contra ,g5tiles1 lib4 #c1 c4 #abc4 ,,*apt] ,,xiv ,,co-,,op]ation ,,z ,a ,,p>tial ,,solv5t ,,( ,,capitalism ,int]e/ is n a return = lab\r4 ,! majority ( int]e/ receiv]s are1 inde$1 regul>ly engag$ at "s active task1 :e!r z day lab\r]s1 sal>i$ employs1 directors ( indu/ry1 or memb]s ( ! pr(essions2 b = ^! s]vices !y obta9 specific & di/9ct comp5sation4 ,! int]e/ t !y get comes to !m solely 9 _! capacity z own]s ( capital1 indep5d5tly ( any p]sonal activity4 ,f ! viewpo9t ( economic di/ribution1 int]e/ is a workless income4 ,z su*1 x seems to *all5ge t e?ical intuition :i* connects rew>d ) ef=t & :i* incl9es to reg>d income f any o!r s\rce z n q normal4 ,moreov]1 int]e/ absorbs a l>ge "p ( ! national income1 & p]petuates grave economic inequalities4#aec ,nev]!less1 int]e/ _c be :olly aboli%$4 ,z long z capital rema9s 9 private h&s1 its own]s w dem& & obta9 int]e/4 ,! only way ( escape is by ! road ( ,socialism1 & ?is w\ld prove a bl9d alley4 ,z we h se5 9 a prec$+ *apt]1 ,socialism is e?ically & economically impossible4 ,may n ! burd5s & disadvantages ( int]e/ be mitigat$ or m9imis$8 ,su* a result c\ld conceivably be rea*$ 9 two ways3 ! sum total ( int]e/ might be r$uc$1 & ! incomes d]iv$ f int]e/ might be m widely di/ribut$4 ,r$uc+ ! ,rate ( ,int]e/ ,no consid]able dim9ution ( ! int]e/-volume c be expect$ ?r\gh a decl9e 9 ! int]e/ rate4 ,z f> back z ! middle ( ! eighte5? c5tury1 ,engl& & ,holl& 7 able to borr[ money at ?ree p] c5t4 ,dur+ ! p]iod t has s9ce int]v5$1 ! rate has v>i$ f ?ree to six p] c5t4 on ?is class ( loans4 ,betwe5 #ahgj & #ahij1 ! g5]al rate ( int]e/ decl9$ ab\t two p] c5t41 b x has ris5 s9ce ! latt] date ab\t "o p] c5t4 ,! ,great ,w> n[ 7#aiaf7 9 action is de/roy+ an enorm\s am\nt ( capital1 & x w1 z 9 ! case ( all previ\s milit>y conflicts ( importance1 und\bt$ly be foll[$ by a m>k$ rise 9 ! rate ( int]e/4 ,on ! o!r h&1 ! only def9ite gr\nds ^u :i* a decl9e 9 ! rate c be hop$ = are ei!r unc]ta9 or unimportant4 ,!y are ! rapid increase ( capital1 & ! ext5sion ( gov]nm5t own]%ip & op]ation ( natural monopolies4 ,! fir/ is unc]ta9 9 its effects ^u ! rate ( int]e/ because ! increas$ supply ( capital is (t5 neutralis$ by ! process ( sub/itution4 ,t is1 a l>ge "p ( ! new capital does n compete ) & br+ d[n ! price ( ! old capital4 ,in/ead1 x is absorb$ 9 new inv5tions1 new types ( ma*9]y1 & new processes ( production1 all ( :i* take ! place ( lab\r1 ?us t5d+ to increase r ?an dim9i% ! dem& = capital & ! rate ( int]e/4 ,to be sure1 ! dem& = capital ?us aris+ has n always be5 suffici5t to (fset ! enl>g$ supply4 ,s9ce ! ,indu/rial ,revolution capital has at c]ta9 p]iods & 9 c]ta9 regions increas$ s rapidly t x c\ld n all f9d employm5t 9 new =ms & 9 old =ms at ! old rate4 ,9 "s in/ances a decl9e 9 ! rate ( int]e/ c be cle>ly trac$ to ! disproportionately quick gr[? ( capital4 ,b ?is ph5om5on has be5 f> f uni=m1 & !re is no indication t x w become s 9 ! future4 ,! possibilities ( ! process ( sub/itution h be5 by no means exhau/$4 ,! effects ( gov]nm5t own]%ip are ev5 m problematical4 ,/ates & cities are1 inde$1 able to obta9 capital m *eaply ?an private corporations = su* public utilities z railways1 telegraphs1 tramways1 & /reet light+2 & public own]%ip ( all su* conc]ns w probably become g5]al 9 ! n remote future4 ,nev]!less ! social ga9 is n likely to be proportionate to ! r$uction ( int]e/ on ?is section ( capital4 ,a "p1 possibly a consid]able "p1 ( ! sav+ 9 int]e/ w be neutralis$ by ! l[] effici5cy & great] co/ ( op]ation2 = 9 ?is respect publicly manag$ are inf]ior to privately manag$ ent]prises4 ,consequ5tly1 ! *>ges to ! public = ! s]vices r5d]$ by ^! utilities _c be r$uc$ to ! same degree z ! rate ( int]e/ on ! capital4 ,on ! o!r h&1 ! exclusion ( private op]at+ capital f ?is v l>ge field ( public utilities %\ld increase competition among ! v>i\s units ( capital1 & ?us br+ d[n its rew>ds4 ,to :at ext5t ?is w\ld happ5 _c be e/imat$ ev5 approximately4 ,! only safe /atem5t is t ! decl9e 9 ! g5]al rate ( int]e/ w\ld probably be slight4 ,ne$ = a ,wid] ,di/ribution ( ,capital ,! ma9 hope ( light5+ ! social burd5 ( int]e/ lies 9 ! possible r$uction 9 ! necess>y volume ( capital1 & especially 9 a wid] di/ribution ( int]e/-incomes4 ,9 _m p>ts ( ! indu/rial field !re is a consid]able wa/e ( capital ?r\gh unnecess>y duplication4 ,?is means t a l>ge am\nt ( unnecess>y int]e/ is paid by ! consum] 9 ! =m ( unnecess>ily high prices4 ,aga91 ! own]s ( capital & receiv]s ( int]e/ con/itute only a m9ority ( ! population ( all c\ntries1 ) ! possible exception ( ! ,unit$ ,/ates4 ,! great majority ( ! wage e>n]s 9 all l&s possess no capital1 & obta9 no int]e/4 ,n only are _! incomes small1 (t5 pitiably small1 b _! lack ( capital deprives !m ( ! security1 confid5ce1 & indep5d5ce :i* are requir$ = com=table exi/5ce & effici5t citiz5%ip4 ,!y h no income f productive prop]ty to protect !m aga9/ ! cessation ( wages4 ,dur+ p]iods ( unemploym5t !y are frequ5tly compell$ to h rec\rse to *>ity1 & to =ego _m ( ! necess>y com=ts ( life4 ,s long z ! bulk ( ! means ( production rema9s 9 ! h&s ( a di/9ct capitali/ class1 ?is demoralis+ insecurity ( ! work]s mu/ cont9ue z an ess5tial "p ( our indu/rial sy/em4 ,:ile x might conceivably be elim9at$ ?r\gh a compreh5sive s*eme ( ,/ate insurance1 ?is arrangem5t w\ld sub/itute dep5d5ce ^u ! ,/ate = dep5d5ce ^u ! capitali/1 & be mu* less desirable ?an own]%ip ( income-be>+ prop]ty4 ,! work]s :o possess no capital d n enjoy a normal & reasonable degree ( indep5d5ce1 self respect1 or self confid5ce4 ,!y h n suffici5t control ov] ! wage contract & ! o!r conditions ( employm5t1 & !y h no?+ at all to say conc]n+ ! goods t !y %all produce1 or ! p]sons to :om _! product %all be sold4 ,!y lack ! inc5tive to put =? _! be/ ef=ts 9 production4 ,!y _c satisfy adequately ! in/9ct ( prop]ty1 ! desire to control "s ( ! det]m9+ =ms ( mat]ial possession4 ,!y are depriv$ ( t consci\sness ( p[] :i* is g5]at$ exclusively by prop]ty1 & :i* contributes s p[]fully t[>d ! mak+ ( a cont5d$ & effici5t life4 ,!y d n possess a normal am\nt ( fre$om 9 politics1 nor 9 ^? civic & social relations :i* lie outside ! sph]es ( indu/ry & politics4 ,9 a ^w1 ! work] )\t capital has n suffici5t p[] ov] ! ord]+ ( 8 own life4 ,! ,ess5ce ( ,co-op]ative ,ent]prise ,! mo/ effective means ( less5+ ! volume ( int]e/1 & br++ ab\t a wid] di/ribution ( capital1 is to be f\nd 9 co-op]ative ent]prise4 ,co-op]ation 9 g5]al d5otes ! unifi$ action ( a gr\p ( p]sons = a common end4 ,a *ur*1 a debat+ club1 a jo9t /ock company1 exemplifies co-op]ation 9 ?is s5se4 ,9 ! /rict & te*nical s5se1 x has receiv$ v>i\s def9itions4 ,pr(essor ,taussig decl>es t x consi/s ess5tially 9 gett+ rid ( ! manag+ employ]2 b ?is description is applicable only to co-op]atives ( production4 ,a comb9ation ( individuals to economise by buy+ 9 common1 or increase _! pr(its by sell+ 9 common 7,encyclop$ia ,britannica7 is likewise too n>r[1 s9ce x fits only di/ributive & agricultural co-op]ation4 ,accord+ to ,c4 ,r4 ,fay1 a co-op]ative society is an association = ! purpose ( jo9t trad+1 orig9at+ among ! weak1 & conduct$ always 9 an unselfi% _s4 ,if ! ^w1 trad+ be /ret*$ to compreh5d manufactur+ z well z comm]cial activities1 ,fay's def9ition is fairly satisfactory4 ,! di/+ui%+ circum/ance1 orig9at+ among ! weak1 is also emphasis$ by ,fa!r ,pes* 9 8 /atem5t t ! ess5ce1 aim1 & mean+ ( co-op]ation are to be f\nd 9 a comb9ation ( ! economically weak 9 common ef=ts = ! security & bett]m5t ( _! condition4#aed ,9 ord] to give ! prop] connotation = our purpose1 we %all def9e co-op]ation z1 t jo9t economic action :i* seeks to obta9 = a relatively weak gr\p all or "p ( ! pr(its & int]e/ :i* 9 ! ord9>y capitali/ ent]prise are tak5 by a small] & diff]5t gr\p4 ,?is =mula puts 9 ! =egr\nd ! important fact t 9 e =m ( co-op]ative ef=t1 "s int]e/ or pr(its1 or bo?1 are div]t$ f ^? :o w\ld h receiv$ !m "u purely capitali/ic arrangem5ts1 & di/ribut$ among a l>g] numb] ( p]sons4 ,?us x indicates ! be>+ ( co-op]ation ^u ! problem ( light5+ ! social burd5 ( int]e/4 ,f ! viewpo9t ( economic function1 co-op]ation may be divid$ into two g5]al k9ds1 produc]s' & consum]s'4 ,! be/ example ( ! =m] is a wage e>n]s' productive society2 ( ! latt]1 a co-op]ative /ore4 ,cr$it co-op]atives & agricultural co-op]atives fall ma9ly "u ! =m] head1 inasmu* z _! pr9cipal object is to assi/ production1 & to b5efit m5 z produc]s r ?an z consum]s4 ,h5ce f ! viewpo9t ( type1 co-op]ation may be classifi$ z cr$it1 agricultural1 di/ributive1 & productive4 ,co-op]ative ,cr$it ,societies ,a co-op]ative cr$it society is a bank controll$ by ! p]sons :o patronise x1 & l5d+ on p]sonal r ?an mat]ial security4 ,su* banks are int5d$ almo/ exclusively = ! relatively helpless borr[]1 z1 ! small f>m]1 artisan1 %opkeep]1 & ! small man g5]ally4 ,fundam5tally !y are associations ( neighb\rs :o comb9e _! res\rces & _! cr$it 9 ord] to obta9 loans on bett] t]ms ?an are accord$ by ! ord9>y comm]cial banks4 ,! capital is d]iv$ p>tly f ! sale ( %>es ( /ock1 p>tly f deposits1 & p>tly f borr[$ money4 ,9 ,g]many1 :]e cr$it associations h be5 m widely ext5d$ & m highly develop$ ?an 9 any o!r c\ntry1 !y are ( two k9ds1 nam$ aft] _! respective f\nd]s1 ,s*ulze-,delitzs* & ,raiffeis54 ,! =m] op]ates *iefly 9 ! cities1 s]ves ! middle classes r ?an ! v poor1 requires all its memb]s to subscribe = capital /ock1 commits !m to a long c\rse ( sav+1 & ?us develops _! int]e/ z l5d]s4 ,! ,raiffeis5 societies h1 z a rule1 v little %>e capital1 exi/ *iefly 9 ! c\ntry di/ricts1 especially among ! poore/ ( ! peasantry1 are bas$ mo/ly on p]sonal cr$it1 & d n pr(ess to enc\rage greatly ! sav+ & l5d+ activities ( _! memb]s4 ,bo? =ms ( association loan money to _! memb]s at l[] rates ( int]e/ ?an ^! p]sons c\ld obta9 else:]e4 ,h5ce cr$it co-op]ation directly r$uces ! burd5 ( int]e/4 ,! ,s*ulze-,delitzs* societies h m ?an half a million memb]s 9 ! cities & t[ns ( ,g]many1 sixty p] c5t4 ( :om take advantage ( ! borr[+ facilities4 ,! ,raiffeis5 banks comprise ab\t "o-half ( all ! indep5d5t ,g]man agriculturi/s4 ,"s =m ( co-op]ative bank+ is well e/abli%$ 9 e important c\ntry ( ,europe1 except ,d5m>k & ,great ,brita94 ,9 ! =m] c\ntry its place seems to be satisfactorily fill$ by ! ord9>y comm]cial banks4 ,its abs5ce f ,great ,brita9 is app>5tly due to ! cr$it sy/em provid$ by ! l>ge l&hold]s1 to ! sc>city ( peasant proprietors1 & to g5]al lack ( initiative4 ,x is especially /rong 9 ,italy1 ,belgium1 & ,au/ria1 & x has made a promis+ beg9n+ 9 ,irel&4 ,9 e c\ntry 9 :i* x has obta9$ a foo?old1 x gives indication ( /eady & cont9u\s progress4 ,nev]!less x is subject to def9ite limits4 ,x c nev] make mu* headway among t class ( p]sons ^: mat]ial res\rces are suffici5tly l>ge & palpable to comm& loans on ! usual t]ms (f]$ by ! comm]cial banks4 ,z a rule1 ^! t]ms are q z fav\rable z ^? available ?r\gh ! co-op]ative cr$it associations4 ,x is only because ! poor] m5 _c obta9 loans f ! comm]cial banks on ! prevail+ conditions t !y are impell$ to h rec\rse to ! co-op]ative associations4 ,co-op]ative ,agricultural ,societies ,! *ief op]ations ( agricultural co-op]ative societies are manufactur+1 m>ket+1 & pur*as+4 ,9 ! fir/ nam$ field ! mo/ important example is ! co-op]ative dairy4 ,! own]s ( c[s hold ! /ock or %>es ( ! conc]n1 & 9 addition to divid5ds receive pr(its 9 proportion to ! am\nt ( milk t !y supply4 ,9 ,irel& & "s o!r c\ntries1 a portion ( ! pr(its goes to ! employs ( ! dairy z a divid5d on wages4 ,o!r productive co-op]atives ( agriculture are f\nd 9 *eese mak+1 bacon cur+1 di/ill+1 & w9e mak+4 ,all are conduct$ on ! same g5]al pr9ciples z ! co-op]ative dairy4 ,?r\gh ! m>ket+ societies & pur*as+ societies1 ! f>m]s are enabl$ to sell _! products to bett] advantage1 & to obta9 mat]ials ne$$ = c>ry+ on agricultural op]ations m *eaply ?an w\ld be possible by isolat$ individual action4 ,"s ( ! products m>ket$ by ! sell+ societies are eggs1 milk1 p\ltry1 fruit1 vegetables1 live /ock1 & v>i\s k9ds ( gra94 ,! pur*as+ societies supply = ! mo/ "p manures1 se$s1 & ma*9]y4 ,occasionally !y buy ! mo/ co/ly ma*9]y 9 su* a way t ! association becomes ! corporate own] ( ! implem5ts4 ,9 ^! cases ! individual memb]s h only ! use ( ! ma*9es1 b !y w\ld be unable to enjoy ev5 t advantage 7 x n = ! int]v5tion ( ! co-op]ative society4 ,:]e su* arrangem5ts exi/1 ! society exemplifies n only co-op]ative buy+ b co-op]ative own]%ip4 ,agricultural co-op]ation has become mo/ widely ext5d$ 9 ,d5m>k1 & has display$ its mo/ /rik+ possibilities 9 ,irel&4 ,relatively to its population1 ! =m] c\ntry has m f>m]s 9 co-op]ative societies1 & has d]iv$ m pr(it !refrom1 ?an any o!r nation4 ,! rapid gr[? & a*ievem5ts ( agricultural co-op]ation 9 ! peculi>ly unfav\rable circum/ances ( ,irel& con/itute ! mo/ conv9c+ pro( to be f\nd any:]e ( ! ess5tial s\ndness & efficacy ( ! movem5t4 ,v>i\s =ms ( rural co-op]ative societies are solidly e/abli%$ 9 ,g]many1 ,france1 ,belgium1 ,italy1 & ,switz]l&4 ,9 rec5t ye>s ! movem5t has made "s progress 9 ! ,unit$ ,/ates1 especially 9 relation to dairies1 gra9 elevators1 ! m>ket+ ( live /ock & fruit1 & v>i\s =ms ( rural insurance4 ,! co-op]ative insurance companies effect a sav+ to ! ,m9nesota f>m]s ( #gjj1jjj annually1 & ! co-op]ative elevators h&le ab\t #cj p] c5t4 ( ! gra9 m>ket$ 9 t /ate4 ,9 #aiae ! bus9ess transact$ by ! co-op]ative m>ket+ & pur*as+ organisations ( ! f>m]s ( ! ,unit$ ,/ates am\nt$ to #a1djj1jjj1jjj4 ,! trans=mation 9 ! rural life ( m ?an "o ,european community ?r\gh co-op]ation has am\nt$ to little less ?an a revolution4 ,high] /&>ds ( agricultural products & production h be5 set up & ma9ta9$1 bett] me?ods ( f>m+ h be5 inculcat$ & en=c$1 & ! :ole social1 moral1 & civic life ( ! p has be5 rais$ to a high] level4 ,f ! viewpo9t ( mat]ial ga91 ! *ief b5efits ( agricultural co-op]ation h be5 ! elim9ation ( unnecess>y middlem51 & ! economies ( buy+ 9 l>ge quantities1 sell+ 9 ! be/ m>kets1 & employ+ ! mo/ effici5t implem5ts4 ,z comp>$ ) f>m+ conduct$ on a l>ge scale1 ! small f>m possesses c]ta9 advantages1 & is subject to c]ta9 disadvantages4 ,x is less wa/eful1 p]mits great] att5tion to details1 & makes a great] appeal to ! self int]e/ ( ! cultivator2 b ! small f>m] _c af=d to buy ! be/ ma*9]y1 nor is he 9 a position to c>ry on to ! be/ advantage ! comm]cial features ( 8 occupation1 su* z borr[+1 buy+1 & m>ket+4 ,co-op]ation frees him f all ^! h&icaps4 ,! co-op]ative community 444 is "o 9 :i* gr\ps ( humble m5 comb9e _! ef=ts1 & to "s ext5t _! res\rces1 9 ord] to secure = !mselves ^? advantages 9 indu/ry :i* ! ma/]s ( capital d]ive f ! organisation ( lab\r1 f ! use ( co/ly ma*9]y1 & f ! economies ( bus9ess :5 done on a l>ge scale4 ,!y apply 9 _! indu/ry ! me?ods by :i* ! =tunes ( ! magnates 9 comm]ce & manufacture are made4 ,^! words1 utt]$ by a prom95t memb] ( ! ,iri% co-op]ative movem5t1 summ>ise ! aims & a*ievem5ts ( agricultural co-op]ation 9 e c\ntry ( ,europe 9 :i* x has obta9$ a /rong foo?old4 ,9 e su* community ! small f>m has ga9$ at ! exp5se ( ! l>ge f>m sy/em4 ,f9ally1 agricultural co-op]ation r$uces ! burd5 ( int]e/ by elim9at+ "s unnecess>y capital1 /imulates sav+ among ! till]s ( ! soil by provid+ a ready & safe means ( inve/m5t1 & 9 manifold ways contributes mat]ially t[>d a bett] di/ribution ( weal?4 ,co-op]ative ,m]cantile ,societies ,co-op]ative /ores are organis$ by & = consum]s4 ,9 e c\ntry !y foll[ r closely ! ,ro*dale sy/em1 s call$ f ! ,engli% t[n 9 :i* ! fir/ /ore ( ?is k9d 0 e/abli%$ 9 #ahdd4 ,! memb]s ( ! co-op]ative society furni% ! capital1 & receive !reon int]e/ at ! prevail+ rate1 usually five p] c5t4 ,! /ores sell goods at ab\t ! same prices z _! privately own$ competitors1 b return a divid5d on ! pur*ases ( all ^? cu/om]s :o are memb]s ( ! society4 ,! divid5ds are provid$ f ! surplus :i* rema9s aft] wages1 int]e/ on ! capital /ock1 & all o!r exp5ses h be5 paid4 ,9 "s co-op]ative /ores non-memb]s receive a divid5d on _! pur*ases at half ! rate accord$ to memb]s ( ! society1 b only on condition t ^! paym5ts %all be inve/$ 9 ! capital /ock ( ! ent]prise4 ,& ! memb]s !mselves are /rongly urg$ to make ?is disposition ( _! pur*ase-divid5ds4 ,s9ce ! latt] are paid only qu>t]ly1 ! co-op]ative /ore ex]cises a consid]able influ5ce t[>d induc+ its patrons to save & to become small capitali/s4 ,9 ,great ,brita9 ! va/ majority ( ! retail /ores h be5 f$]at$ into two great :olesale societies1 "o 9 ,engl& & ! o!r 9 ,scotl&4 ,! retail /ores provide ! capital1 & p>ticipate 9 ! pr(its accord+ to ! am\nts pur*as$1 j z ! individual consum]s furni% ! capital & %>e ! pr(its ( ! retail e/abli%m5ts4 ,! ,scotti% ,:olesale ,society divides a "p ( ! pr(its among its employs4 ,besides _! op]ations z jobb]s1 ! :olesale societies are bank]s = ! retail /ores1 & own & op]ate factories1 f>ms1 w>eh\ses1 & /eam%ips4 ,_m ( ! retail co-op]atives likewise c>ry on productive ent]prises1 su* z mill+1 tailor+1 bread mak+1 & ! manufacture ( boots1 %oes1 & o!r commodities1 & "s ( !m build1 sell1 & r5t cottages1 & l5d money to memb]s :o desire to obta9 homes4 ,! co-op]ative /ore movem5t has made greate/ progress 9 its orig9al home1 ,great ,brita94 ,9 #aiac ab\t "o p]son 9 e ?ree 0 to "s degree int]e/$ 9 or a b5efici>y ( ^! in/itutions4 ,! pr(its ( ! /ores am\nt$ to ab\t #ga1cjb1jgj1 :i* 0 ab\t #ce p] c5t4 on ! capital4 ,! employs numb]$ ab\t #ade1jjj1 & ! sales = ! ye> aggregat$ #fej1jjj1jjj4 ,! ,engli% ,:olesale ,society 0 ! l>ge/ fl\r mill] & %oe manufactur] 9 ,great ,brita91 & its total bus9ess am\nt$ to #aej1jjj1jjj4 ,outside ( ,great ,brita91 co-op]ative di/ribution has be5 mo/ successful 9 ,g]many1 ,belgium1 & ,switz]l&4 ,x has _h a fair measure ( developm5t 9 ,italy1 b has fail$ to assume any importance 9 ,france4 ,!re is e sign t )9 ! ne> future--except 9 ,france--! /ores w come to include ! great majority ( ! wage e>n+ class1 :i* is a con/antly gr[+ p]c5tage ( ! total population4#aee ,)9 rec5t ye>s a respectable numb] ( /ores h be5 e/abli%$ on a s\nd basis 9 ,canada & ! ,unit$ ,/ates4 ,ow+1 h[ev]1 to ! m>k$ individualism & ! bett] economic conditions ( ^! two c\ntries1 ! co-op]ative movem5t w cont9ue = "s "t to be relatively sl[4 ,z 9 ! case ( agricultural co-op]ation1 ! money b5efits accru+ to ! memb]s ( ! co-op]ative /ores consi/ ma9ly ( pr(its r ?an int]e/4 ,9 ! abs5ce ( ! /ore societies1 ^! pr(its w\ld h gone = ! mo/ "p to middlem5 z paym5ts = ! risks & lab\r ( conduct+ privately own$ e/abli%m5ts4 ,=ty-sev5 ( ! sixty million doll>s pr(its ( ! ,briti% co-op]ative /ores 9 #aiaj 7 divid$ among m ?an two & "o-half million memb]s ( ^! in/itutions1 in/ead ( go+ to a comp>atively small numb] ( private m]*ants4 ,! o!r ?irte5 million doll>s 7 int]e/ on ! capital /ock4 ,_h ! memb]s inve/$ an equal am\nt 9 o!r ent]prises !y c\ld1 inde$1 h obta9$ ab\t ! same rate & am\nt ( int]e/1 b 9 ! abs5ce ( ! co-op]ative /ores _! inducem5ts & opportunities to save w\ld h be5 mu* small]4 ,= x mu/ be kept 9 m9d t a v l>ge "p ( ! capital /ock 9 ! co-op]ative /ores is d]iv$ f ! memb]s' divid5ds on _! pur*ases at su* /ores1 & w\ld n h come into exi/5ce at all )\t ^! e/abli%m5ts4 ,! ga9s ( ! co-op]ative /ores1 :e!r classifi$ z pr(its or z int]e/1 are evid5tly a n inconsid]able indication ( a bett] di/ribution ( weal?4 ,co-op]ation 9 ,production ,co-op]ative production has occasionally be5 pron\nc$ a failure4 ,?is judgm5t is too sweep+ & too sev]e4 ,z a matt] ( fact1 says a prom95t ,london weekly1 ! co-op]ators' success has be5 ev5 m rem>kable 9 production ?an 9 di/ribution4 ,! co-op]ative movem5t runs five ( ! l>ge/ ( our fl\r mills2 x has1 among/ o!rs1 ! v l>ge/ ( our boot factories2 x makes cotton clo? & wooll5s1 & all sorts ( clo?+2 x has ev5 a corset factory ( its own2 x turns out huge quantities ( soap2 x makes e article ( h\sehold furniture2 x produces cocoa & confection]y2 x gr[s its own fruit & makes its own jams2 x has "o ( ! l>ge/ tobacco factories1 & s on4 ,obvi\sly ?is passage ref]s to t k9d ( productive co-op]ation :i* is c>ri$ on by ! /ores1 n to productive conc]ns own$ & manag$ by ! work]s !re9 employ$4 ,nev]!less ! ent]prises 9 "q are co-op]atively manag$1 & h5ce exemplify co-op]ation r ?an private & competitive indu/ry4 ,!y ought n to be left out ( any /atem5t ( ! field occupi$ by co-op]ative production4 ,! limitations & possibilities ( co-op]ation 9 production c be/ be set =? by consid]+ its ?ree diff]5t =ms sep>ately4 ,! p]fect =m occurs :5 all ! work]s engag$ 9 a conc]n own all ! %>e capital1 control ! entire managem5t1 & receive ! :ole ( ! wages1 pr(its1 & int]e/4 ,9 ?is field ! failures h be5 mu* m num]\s & conspicu\s ?an ! successes4 ,god9's /ove works at ,guise1 ,france1 is ! only important ent]prise ( ?is k9d t is n[ 9 exi/5ce4 ,great ,brita9 has sev]al e/abli%m5ts 9 :i* ! work]s own a l>ge "p ( ! capital1 b app>5tly none 9 :i* !y are ! sole proprietors & manag]s4 ,! lab\r societies ( ,italy1 consi/+ mo/ly ( digg]s1 masons1 & bricklay]s1 co-op]atively ent] into contracts = ! p]=mance ( public works1 & %>e 9 ! pr(its ( ! und]tak+ 9 addition to _! wages2 b ! only capital t !y provide consi/s ( comp>atively simple & inexp5sive tools4 ,! raw mat]ial & o!r capital is furni%$ by ! public au?ority :i* gives ! contract4 ,a second k9d ( productive co-op]ation is f\nd 9 ! arrangem5t kn[n z co-p>tn]%ip4 ,?is is ! sy/em "u :i*1 9 ! fir/ place1 a sub/antial & kn[n %>e ( ! pr(it ( a bus9ess belongs to ! work]s 9 x1 n by "r ( any %>es !y may hold1 or any o!r title1 b simply by "r ( ! lab\r !y h contribut$ to make ! pr(it2 &1 9 ! second place1 e work] is at lib]ty to inve/ 8 pr(it1 or any o!r sav+s1 9 %>es ( ! society or company1 & s become a memb] entitl$ to vote on ! affairs ( ! body :i* employs him4#aef ,s f> z its fir/1 or pr(it %>+1 feature is conc]n$1 co-p>tn]%ip is n g5u9e co-op]ation1 = x includes nei!r own]%ip ( capital nor managem5t ( ! bus9ess4 ,co-op]ative action beg9s only ) ! adoption ( ! second elem5t4 ,9 mo/ ( ! exi/+ co-p>tn]%ip conc]ns1 all ! employs are urg$1 & _m ( !m requir$ to inve/ at lea/ a "p ( _! pr(its 9 ! capital /ock4 ,! mo/ notable & successful ( ^! exp]im5ts is t c>ri$ on by ! ,s\? ,metropolitan ,gas ,company ( ,london4 ,practically all ! company's #f1jjj employs are n[ among its /ockhold]s4 ,al?\gh _! comb9$ hold+s are only ab\t "o-tw5ty-eigh? ( ! total1 !y are emp[]$ to select two ( ! t5 memb]s ( ! bo>d ( directors4 ,ess5tially ! same co-p>tn]%ip arrangem5ts h be5 adopt$ by ab\t "o-half ! privately own$ gas companies ( ,great ,brita94 ,9 none ( !m1 h[ev]1 h ! work]s obta9$ z yet su* a l>ge p]c5tage ( ei!r own]%ip or control z 9 ! ,s\? ,metropolitan4 ,co-p>tn]%ip exi/s 9 sev]al o!r ent]prises 9 ,great ,brita91 & is f\nd 9 a consid]able numb] ( ,fr5* conc]ns4 ,!re are a few in/ances 9 ! ,unit$ ,/ates1 ! mo/ ?or\ghgo+ be+ t ( ,n4 ,o4 ,nelson ,co4 at ,le ,claire1 ,ill4 ,z already not$1 ! co-op]ative /ores exemplify a ?ird type ( co-op]ative production4 ,9 "s cases ! productive conc]n is "u ! managem5t ( a local retail e/abli%m5t1 b ! great majority ( !m are conduct$ by ! ,engli% & ,scotti% ,:olesale ,societies4 ,z reg>ds ! employs ( ^! ent]prises1 ! arrangem5t is n true co-op]ation1 s9ce !y h no "p 9 ! own]%ip ( ! capital4 ,! ,scotti% ,:olesale ,society1 z we h se51 p]mits ! employs ( its productive works to %>e 9 ! pr(its !re(2 nev]!less x does n admit !m z /ockhold]s1 nor give !m any voice 9 ! managem5t4 ,9 all cases ! work]s may1 inde$1 become own]s ( /ock 9 _! local retail /ores4 ,s9ce ! latt] are /ockhold]s 9 ! :olesale societies1 :i* 9 turn own ! productive ent]prises1 ! work]s h a c]ta9 indirect & att5uat$ proprietor%ip 9 ! productive conc]ns4 ,b !y d]ive !refrom no divid5ds4 ,all ! int]e/ & mo/ ( ! pr(its ( ! productive e/abli%m5ts are tak5 by ! :olesale & retail /ores4 ,= x is ! !ory ( ! :olesale societies t ! employs 9 ! works ( production %\ld %>e 9 ! ga9s !re( only z consum]s4 ,!y are to pr(it only 9 ! same way & to ! same ext5t z o!r consum]-memb]s ( ! local retail e/abli%m5ts4 ,! mo/ effective & b5eficial =m ( co-op]ative production is evid5tly t :i* has be5 describ$ z ! p]fect type4 ,7 all production organis$ on ?is plan1 ! social burd5 ( int]e/ w\ld be insignificant1 indu/rial despotism w\ld be end$1 & indu/rial democracy realis$4 ,z ?+s are1 h[ev]1 ! e/abli%m5ts exemplify+ ?is type are ( small importance4 ,_! increase & expansion are imp$$ by lack ( directive ability & ( capital1 & ! risk to ! work]s' sav+s4 ,yet none ( ^! ob/acles is necess>ily insup]able4 ,directive ability c be develop$ 9 ! c\rse ( "t1 j z x 0 9 ! co-op]ative /ores4 ,capital c be obta9$ fa/ en\gh p]haps to keep pace ) ! supply ( directive ability & ! _s ( co-op]ation4 ,! risk und]tak5 by work]s :o put _! sav+s into productive conc]ns own$ & manag$ by !mselves ne$ n be great] ?an t n[ borne by inve/ors 9 private ent]prises ( ! same k9d4 ,!re is no ess5tial reason :y ! =m] %\ld n provide ! same pr(its & insurance aga9/ bus9ess risks z ! latt]4 ,:ile ! employs assume none ( ! risks ( capitali/ic indu/ry1 nei!r d !y receive any ( ! pr(its4 ,if ! co-op]ative factory exhibits ! same degree ( bus9ess effici5cy z ! private ent]prise x w necess>ily af=d ! work]s adequate protection = _! sav+s & capital4 ,inde$1 if p]fect co-op]ative production is to be successful at all its pr(its w be l>g] ?an ^? ( ! capitali/ic conc]n1 ow+ to ! great] int]e/ tak5 by ! work]s 9 _! tasks1 & 9 ! managem5t ( ! bus9ess4 ,= a long "t to come1 h[ev]1 x is probable t p]fect co-op]ative production w be conf9$ to relatively small & local indu/ries4 ,! difficulty ( f9d+ suffici5t work]s' capital & ability to c>ry on1 = example1 a transcont95tal railroad or a nationwide /eel bus9ess1 is n likely to be ov]come = "o or two g5]ations4#aeg ,! lab\r co-p>tn]%ip =m ( co-op]ation is susceptible ( mu* wid] & m rapid ext5sion4 ,x c be adapt$ readily to ! v l>ge z well z to ! small & m$ium siz$ conc]ns4 ,s9ce x requires ! work]s to own b a "p ( ! capital1 x c be e/abli%$ 9 any ent]prise 9 :i* ! capitali/s %[ !mselves will+ & sympa!tic4 ,9 e indu/rial corporation !re are "s employs :o possess sav+s1 & ^! c be consid]ably increas$ ?r\gh ! pr(it %>+ feature ( co-p>tn]%ip4 ,a v long "t mu/1 inde$1 elapse be=e ! work]s 9 any ( ! l>g] ent]prises c\ld get possession ( all1 or ev5 ( a controll+ %>e ( ! capital1 & a consid]able "t w\ld be ne$$ to educate & fit !m = successful managem5t4 ,production "u ! direction ( ! co-op]ative /ores c be ext5d$ fa/] ?an ei!r ( ! o!r two =ms1 & x has be=e x a v wide ev5 ?\gh def9itely limit$ field4 ,! ,briti% :olesale societies h already %[n !mselves able to conduct ) great success l>ge manufactur+ conc]ns1 h tra9$ & attract$ an adequate numb] ( compet5t lead]s1 & h accumulat$ s mu* capital t !y h be5 oblig$ to inve/ sev]al million p\nds 9 o!r ent]prises4 ,! possible scope ( ! /ores & _! co-op]ative production has be5 well describ$ by ,c4 ,r4 ,fay3 di/ribution ( goods = p]sonal consumption1 fir/1 among ! work+ class population1 secondly1 among ! sal>i$ classes :o feel a homog5eity ( pr(essional int]e/2 production by work+ class organisations alone 7) r>e exceptions 9 ,italy7 ( all ! goods :i* !y di/ribute to _! memb]s4 ,b ?is is its limit4 ,di/ribution among ! rema9+ sections ( ! indu/rial population2 production = di/ribution to ^! memb]s2 production ( ! in/rum5ts ( production1 & production = int]national trade2 ! s]vices ( transport & ex*ange3 all ^! indu/rial dep>tm5ts are1 s f> z c be se51 p]man5tly outside ! doma9 ( a /ore movem5t4#aeh ,! !ory by :i* ! /ores attempt to ju/ify ! exclusion ( ! employs ( _! productive conc]ns f a %>e ( ! pr(its !re( is t all pr(its come ultimately f ! pockets ( ! consum]1 & %\ld all return to t s\rce4 ,! defect 9 ?is !ory is t x ignores ! "q :e!r ! consum]s ought n to be requir$ to pay a suffici5tly high price = _! goods to provide ! produc]s ) pr(its 9 addition to wages4 ,:ile ! :olesale /ores are ! own]s & manag]s ( ! capital 9 ! productive ent]prises1 & on ! capitali/ic pr9ciple %\ld obta9 ! pr(its1 ! "q rema9s :e!r ?is is necess>ily a s\nd pr9ciple1 & :e!r x is 9 h>mony ) ! !ory & ideals ( co-op]ation4 ,9 ^? conc]ns :i* h adopt$ ! lab\r co-p>tn]%ip s*eme1 ! work]s1 ev5 :5 !y own none ( ! capital1 are accord$ a "p ( ! pr(its4 ,x is assum$ t ?is is a fair] & wis] me?od ( di/ribution ?an t :i* gives ! lab\r] only wages1 leav+ all ! pr(its to ! manag]-capitali/4 ,?is feature ( co-p>tn]%ip re/s on ! !ory t ! work]s c1 if !y w1 increase _! effici5cy & r$uce ! friction betwe5 !mselves & _! employ] to su* an ext5t z to make ! pr(it %>+ arrangem5t a good ?+ = bo? p>ties4 ,consequ5tly ! pr(its obta9$ by ! work]s are a paym5t = ?is specific contribution to ! prosp]ity ( ! bus9ess4 ,:y %\ld n ?is !ory f9d recognition 9 productive ent]prises conduct$ by ! co-op]ative /ores8 ,9 ! second place1 ! work]s 9 ^! conc]ns ought to be p]mitt$ to p>ticipate 9 ! capital own]%ip & managem5t4 ,!y w\ld ?us be /rongly enc\rag$ to become bett] work]s1 to save m money1 & to increase _! capacity = initiative & self gov]nm5t4 ,moreov]1 ?is arrangem5t w\ld g f>!r ?an any o!r sy/em t[>d reconcil+ ! int]e/s ( produc] & consum]4 ,z produc]1 ! work] w\ld obta91 besides 8 wages1 int]e/ & pr(its up to ! limit set by ! competition ( private productive conc]ns4 ,z consum]1 he w\ld %>e 9 ! pr(its & int]e/ :i* w\ld o!rwise h gone to ! private di/ributive ent]prises4 ,9 ?is way ! produc] & consum] w\ld ea* get ! ga9s t 7 due specifically & respectively to 8 activity & effici5cy4 ,advantages & ,prospects ( ,co-op]ation ,at ?is po9t x w p]haps be well to sum up ! advantages & to e/imate ! prospects ( ! co-op]ative movem5t4 ,9 all its =ms co-op]ation elim9ates "s wa/e ( capital & en]gy1 & !re=e transf]s "s int]e/ & pr(its f a special capitali/ & und]tak+ class to a l>g] & economically weak] gr\p ( p]sons4 ,= x mu/ be borne 9 m9d t all co-op]ative ent]prises are conduct$ ma9ly by & = lab\r]s or small f>m]s4 ,h5ce ! sy/em always makes directly = a bett] di/ribution ( weal?4 ,to a consid]able ext5t x transf]s capital own]%ip f ^? :o d n !mselves "w ) or ^u capital to ^? :o are s engag$2 namely1 ! lab\r]s & ! f>m]s2 ?us x dim9i%es ! unheal?y sep>ation n[ exi/+ betwe5 ! own]s & ! us]s ( ! in/rum5ts ( production4 ,co-op]ation has1 9 ! second place1 a v great educational value4 ,x enables & induces ! weak] memb]s ( economic society to comb9e & utilise en]gies & res\rces t w\ld o!rwise rema9 unus$ & undevelop$2 & x greatly /imulates & fo/]s initiative1 self confid5ce1 self re/ra9t1 self gov]nm5t1 & ! capacity = democracy4 ,9 o!r words1 x va/ly increases ! developm5t & effici5cy ( ! individual4 ,x likewise induces him to practise ?rift1 & frequ5tly provides bett] fields = inve/m5t ?an w\ld be op5 to him outside ! co-op]ative movem5t4 ,x dim9i%es selfi%ness & inculcates altruism2 = no co-op]ative ent]prise c succe$ 9 :i* ! individual memb]s are n will+ to make great] sacrifices = ! common good ?an are ord9>ily evok$ by private ent]prise4 ,precisely because co-op]ation makes su* heavy dem&s ^u ! capacity = altruism1 its progress always has be5 & mu/ always cont9ue to be relatively sl[4 ,its fundam5tal & p]haps *ief m]it is t x does provide ! me*anism & ! atmosph]e = a great] developm5t ( ! altrui/ic _s ?an is possible "u any o!r economic sy/em t has ev] be5 tri$ or devis$4 ,by putt+ productive prop]ty into ! h&s ( ^? :o n[ possess little or no?+1 co-op]ation promotes social /ability & social progress4 ,?is /atem5t is true 9 "s degree ( all =ms ( co-op]ation1 b x applies ) p>ticul> =ce to ^? =ms :i* are c>ri$ on by ! work+ classes4 ,a /eadily gr[+ numb] ( ke5-sight$ social /ud5ts are com+ to realise t an indu/rial sy/em :i* p]mits a comp>atively small section ( society to own ! means ( production & ! in/rum5talities ( di/ribution1 leav+ to ! great majority ( ! work]s no?+ b _! lab\r p[]1 is fundam5tally un/able1 & conta9s )9 itself ! g]ms ( inevitable dissolution4 ,no m]e adequacy ( wages & o!r work+ conditions1 & no m]e security ( ! work]s' livelihood1 c p]man5tly av]t ?is dang]1 nor comp5sate ! individual = ! lack ( p[] to det]m9e ^? activities ( life :i* dep5d ^u ! possession ( prop]ty4 ,?r\gh co-op]ation ?is unnatural divorce ( ! us]s f ! own]s ( capital c be m9imis$4 ,! work] is conv]t$ f a m]e wage e>n] to a wage e>n] plus a prop]ty own]1 ?us becom+ a saf] & m useful memb] ( society4 ,9 a ^w1 co-op]ation produces all ! well recognis$ individual & social b5efits :i* h 9 all ages be5 evok$ by ! magic ( prop]ty4 ,f9ally1 co-op]ation is a gold5 mean betwe5 individualism & ,socialism4 ,x includes all ! good features & excludes all ! evil features ( bo?4 ,on ! "o h&1 x dem&s & develops individual initiative & self reliance1 makes ! rew>ds ( ! individual dep5d ^u 8 own ef=ts & effici5cy1 & gives him full own]%ip ( specific pieces ( prop]ty4 ,on ! o!r h&1 x compels him to subm]ge mu* ( ! selfi%ness & indiff]5ce to ! welf>e ( 8 fell[s :i* *>act]ise our individual economy4 ,x embraces all ! good t is claim$ = ,socialism because x induces m5 to consid] & to "w e>ne/ly = ! common good1 elim9ates mu* ( ! wa/e ( competitive indu/ry1 r$uces & r$i/ributes ! burd5s ( pr(its & int]e/1 & puts ! work]s 9 control ( capital & indu/ry4 ,at ! same "t1 x avoids ! evils ( an indu/rial despotism1 ( bureaucratic ineffici5cy1 ( individual indiff]5ce1 & ( an all p]vad+ collective own]%ip4 ,! resemblances t ,sociali/s sometimes pr(ess to see betwe5 _! sy/em & co-op]ation are sup]ficial & f> less important ?an ! diff]5ces4 ,"u bo? arrangem5ts ! work]s w\ld1 we are told1 own & control ! means ( production2 b ! memb]s ( a co-op]ative society directly own & imm$iately control a def9ite am\nt ( specific capital1 :i* is ess5tially private prop]ty4 ,9 a ,sociali/ rgime ! work]s' own]%ip ( capital w\ld be collective n private1 g5]al n specific1 :ile _! control ( ! productive in/rum5ts ) :i* !y work$ w\ld be %>$ ) o!r citiz5s4 ,! latt] w\ld va/ly outnumb] ! work]s 9 any p>ticul> indu/ry1 & w\ld be int]e/$ !re9 n z produc]s b z consum]s4 ,no less obvi\s & fundam5tal are ! diff]5ces 9 fav\r ( co-op]ation z reg>ds ! vital matt]s ( fre$om1 opportunity1 & effici5cy4 ,9 s f> z ! future ( co-op]ation c be pr$ict$ f its pa/1 ! outlook is di/9ctly enc\rag+4 ,! success atta9$ 9 cr$it1 agriculture1 & di/ribution1 is a suffici5t gu>antee = ^! dep>tm5ts4 ,:ile productive co-op]ation has exp]i5c$ m failures ?an successes1 x has f9ally %[n itself to be s\nd 9 pr9ciple1 & feasible 9 practice4 ,its ext5sion w necess>ily be sl[1 b ?is is exactly :at %\ld be expect$ by any "o :o is acqua9t$ ) ! limitations ( human nature1 & ! hi/ory ( human progress4 ,if a movem5t t is capable ( modify+ s pr(\ndly ! condition ( ! work]s z is co-op]ative production1 gave indications ( increas+ rapidly1 we %\ld be incl9$ to "q its s\ndness & p]man5ce4 ,exp]i5ce has giv5 u abundant pro( t no m]e sy/em or ma*9]y c effect a revolution>y improvem5t 9 economic conditions4 ,no social sy/em c d m ?an provide a fav\rable environm5t = ! developm5t ( ^? individual capacities & en]gies :i* are ! true & ! only causal =ces ( bett]m5t4 ,nor is x to be expect$ t any ( ! o!r ?ree =ms ( co-op]ation w ev] cov] ! entire field to :i* x might1 absolutely speak+1 be ext5d$2 or t co-op]ation z a :ole w become ! "o indu/rial sy/em ( ! future4 ,ev5 if ! latt] cont+5cy 7 possible x w\ld n be desirable4 ,! elem5ts ( our economic life1 & ! capacities ( human nature1 are too v>i$ & too complex to be =c$ ) advantage into any "o sy/em1 :e!r capitalism1 ,socialism1 or co-op]ation4 ,any s+le sy/em or =m ( socio-economic organisation w\ld prove an intol]able ob/acle to individual opportunity & social progress4 ,multiplicity & v>iety 9 social & indu/rial ord]s are requir$ = an effective range ( *oices1 & an adequate scope = human ef=t4 ,9 a g5]al way ! limits ( co-op]ation 9 relation to ! o!r =ms ( economic organisation h be5 satisfactorily /at$ by ,mr4 ,aneur9 ,williams3 ,i sugge/1 !re=e1 t :]e !re are great monopolies1 ei!r natural or creat$ by ! comb9ation ( bus9esses1 !re y h a presumption 9 fav\r ( ,/ate & municipal own]%ip4 ,9 ^? =ms ( indu/ry :]e individuality is ev]y?+2 :]e !re are new inv5tions to make1 or to develop or put on ! m>ket1 or m]ely to adopt 9 "s rapidly trans=m$ indu/ry2 :]e ! eye ( ! ma/] is ev]y?+2 :]e ref]5ce to a committee1 or appeals f "o (ficial to ano!r1 w\ld cause fatal delay3 !re is ! natural sph]e ( individual ent]prise pure & simple4 ,betwe5 ^! two extremes !re is surely a great sph]e = volunt>y association to c>ry on comm]ce1 manufacture1 & retail trade1 9 circum/ances :]e !re is no natural monopoly1 & :]e ! r\t9e ( "w is n rapidly *ang+1 b on ! :ole fairly well e/abli%$ & con/ant4#aei ,! prov9ce op5 to co-op]ation is1 inde$1 v l>ge4 ,if x 7 fully occupi$ ! dang] ( a social revolution w\ld be non-exi/5t1 & :at rema9$ ( ! socio-indu/rial problem w\ld be relatively undi/urb+ & unimportant4 ,! specialisation ( function 9 indu/rial organisation1 z outl9$ by ,mr4 ,williams1 w\ld give a balanc$ economy 9 :i* ! ?ree great socio-economic sy/ems & pr9ciples w\ld h full play1 & ea* w\ld be requir$ to d its be/ 9 fair competition ) ! o!r two4 ,economic life w\ld exhibit a div]sity mak+ /rongly = social satisfaction & /ability1 inasmu* z no v l>ge section ( ! indu/rial population w\ld desire to ov]?r[ ! exi/+ ord]4 ,f9ally1 ! *oice ( ?ree great sy/ems ( indu/ry w\ld (f] ! utmo/ opportunity & scope = ! en]gies & ! developm5t ( ! individual4 ,& ?is1 :5 all is said1 rema9s ! supreme end ( a j & effici5t socio-indu/rial organisation4 ,,ref]5ces ,,on ,,section ,,ii ,,fi%]3 ,! ,rate ( ,int]e/4 ,new ,york2 #aijg4 ,,cassel3 ,nature & ,necessity ( ,int]e/4 ,london2 #aijc4 ,,gonn]3 ,int]e/ & ,sav+4 ,london2 #aijf4 ,,l&ry3 ,l',intrt du ,capital4 ,p>is2 #aijd4 ,,m5g]3 ,! ,"r to ! ,:ole ,produce ( ,lab\r4 ,london2 #ahii4 ,,ca?re9-,,gettelman3 ,socialism4 ,/4 ,l\is2 #aijd4 ,,skelton3 ,socialism3 ,a ,critical ,analysis4 ,new ,york2 #aiaa4 ,,sp>go3 ,socialism4 ,macmillan2 #aijf4 ,,wall+3 ,socialism ,z ,x ,is4 ,new ,york2 #aiab4 ,,hillquit-,,ryan3 ,socialism3 ,promise or ,m5ace8 ,macmillan2 #aiad4 ,,savati]3 ,la ,?orie ,mod]ne du ,capital et la ,ju/ice4 ,p>is2 #ahih4 ,,g>riguet3 ,rgime du ,travail4 ,p>is2 #aijh4 ,,funk3 ,z9s und ,wu*]4 ,tb+52 #ahfh4 ,,holyoake3 ,! ,hi/ory ( ,co-op]ation4 ,london2 #aijf4 ,,fay3 ,co-op]ation at ,home & ,abroad4 ,london2 #aijh4 ,,williams3 ,cop>tn]%ip & ,pr(it-,%>+4 ,h5ry ,holt ,co42 #aiac4 ,,mann1 ,,siev]s1 ,,cox3 ,! ,real ,democracy4 ,london2 #aiac4 ,also ! works ( ,taussig1 ,devas1 ,anto9e1 ,hobson1 ,ne>+1 ,will\ghby1 & ,hitze1 :i* 7 giv5 at ! end ( ! introductory *apt]4 ,,footnotes3 #aec ,pr(essor ,scott ,ne>+ e/imates ! annual income d]iv$ f ! own]%ip ( prop]ty 9 ! ,unit$ ,/ates2 t is1 l& & all =ms ( capital1 at f six to n9e billion doll>s4 ,pr(essor ,w4 ,i4 ,k+ gives ! comb9$ %>es ( ! national income receiv$ by ! l&[n]s & ! capitali/s at m ?an six & ?ree-qu>t] billions 9 #aiaj4 ,accord+ to ! ,c5sus ,bullet9 on ! ,e/imat$ ,valuation ( ,national ,weal?1 ! capital goods ( ! c\ntry 7 9 #aiab approximately #age1jjj1jjj1jjj4jj4 ,at f\r p] c5t4 ?is w\ld mean an annual income ( sev5 billion doll>s4 ,! l[e/ ( ! ?ree e/imates1 six billion doll>s1 is equival5t to m ?an sixty doll>s a ye> = e man1 woman1 & *ild 9 ! ,unit$ ,/ates4 ,if t sum 7 equally di/ribut$ among ! :ole population1 x w\ld mean an increase ( betwe5 =ty & sixty p] c5t4 9 ! income ( ! majority ( work+m5's families6 ,nor d pres5t t5d5cies hold out any hope ( an automatic r$uction ( ! int]e/-burd5 9 ! future4 ,9 ! op9ion ( ,pr(essor ,scott ,ne>+1 ! pres5t economic t5d5cies w greatly increase ! am\nt ( prop]ty income paid ) ea* pass+ decade4 ,income1 p4 #aii2 ,new ,york1 #aiae4 ,see especially *4 vii4 ,accord+ to ,pr(essor ,taussig1 ! absolute am\nt ( income go+ to ?is ! capitali/ class t5ds to increase1 & its %>e ( ! total income t5ds also to increase2 :]eas = ! lab\r]s1 ?\gh _! total income may increase1 _! %>e ( income ( society z a :ole t5ds to decl9e4 ,pr9ciples ( ,economics1 ,,ii1 #bje4 #aed ,lehrbu* d] ,nationaloekonomie1 ,,iii1 #eag4 #aee ,fay1 ,co-op]ation at ,home & ,abroad1 p4 #cdj4 #aef ,s*loss1 ,me?ods ( ,indu/rial ,remun]ation1 pp4 #cec1 #ced4 #aeg ,cf41 h[ev]1 ,mr4 ,a4 ,r4 ,orage's "w1 ,national ,guilds1 ,london1 #aiad4 #aeh ,op4 cit41 p4 #cda4 #aei ,cop>tn]%ip & ,pr(it-,%>+1 p4 #bce4 ,,section ,,iii ,,! ,,moral ,,aspect ,,( ,,pr(its ,,*apt] ,,xv ,,! ,,nature ,,( ,,pr(its ,we h se5 t r5t goes to ! l&lord z ! price ( l& use1 :ile int]e/ is receiv$ by ! capitali/ z ! return = ! use ( capital4 ,! two %>es ( ! product :i* rema9 to be consid]$ include an elem5t :i* is abs5t f bo? r5t & int]e/4 ,! use = :i* pr(its & wages are paid comprises n m]ely ! utilisation ( a productive factor1 b ! su/a9$ ex]tion ( ! factor's own]4 ,l ! l&[n] & ! capitali/1 ! bus9ess man & ! lab\r] put ! productive factors :i* !y control at ! disposal ( ! indu/rial process2 b !y d s only :5 & s long z !y ex]cise human activity4 ,! %>es t !y receive are paym5ts = ! cont9u\s output ( human en]gy4 ,no su* significance atta*es to r5t or int]e/4 ,! ,functions & ,rew>ds ( ! ,bus9ess ,man ,:o is ! bus9ess man1 & :at is ! nature ( 8 %>e ( ! product ( indu/ry8 ,let u suppose t ! sal>i$ manag] ( a hat factory decides to set up a bus9ess ( ! same k9d = himself4 ,he wi%es to become an entrepr5eur1 an und]tak]1 a director ( indu/ry1 9 m famili> language1 a bus9ess man4 ,let u assume t he is )\t money1 b t he comm&s extraord9>y f9ancial cr$it4 ,he is able to borr[ half a million doll>s ) :i* to organise1 equip1 & op]ate ! new ent]prise4 ,hav+ select$ a fav\rable site1 he r5ts x on a long t]m lease1 & erects !reon ! necess>y build+s4 ,he in/alls all ! necess>y ma*9]y & o!r equipm5t1 hires capable lab\r1 & det]m9es ! k9ds & quantities ( hats = :i* he ?9ks t he c f9d a m>ket4 ,at ! end ( a ye>1 he realises t1 aft] pay+ = lab\r ( all sorts1 return+ int]e/ to ! capitali/ & r5t to ! l&[n]1 defray+ ! co/ ( repairs1 & sett+ aside a fund to cov] depreciation1 he has left = himself ! sum ( t5 ?\s& doll>s4 ,?is is ! return = 8 lab\r ( organisation & direction1 & = ! risk t he und]w5t4 ,x con/itutes ! %>e call$ pr(its1 sometimes specifi$ z net pr(its4 ,?is case is artificial1 s9ce x assumes t ! bus9ess man is nei!r capitali/ nor l&[n] 9 addition to 8 function z director ( indu/ry4 ,x has1 h[ev]1 ! advantage ( di/+ui%+ q %>ply ! action ( ! bus9ess man z su*4 ,= ! latt] m]ely organises1 directs1 & takes ! risks ( ! indu/rial process1 f9ds a m>ket = ! product1 & receives 9 return nei!r r5t nor int]e/ b only pr(its4 ,9 po9t ( fact1 h[ev]1 no "o ev] functions solely z bus9ess man4 ,always ! bus9ess man owns "s ( ! capital1 & v (t5 "s ( ! l& involv$ 9 8 ent]prise1 & is ! receiv] n only ( pr(its b ( int]e/ & r5t4 ,?us1 ! f>m] is a bus9ess man1 b he is also a capitali/1 & frequ5tly a l&[n]4 ,! groc]1 ! clo?i]1 ! manufactur]1 & ev5 ! lawy] & ! doctor own a "p at lea/ ( ! capital ) :i* !y op]ate1 & sometimes !y own ! l&4 ,nev]!less _! rew>ds z bus9ess m5 c always be di/+ui%$ f _! returns z capitali/s & l&[n]s by f9d+ out :at rema9s aft] mak+ due all[ance = r5t & int]e/4 ,x is a fact t _m bus9ess m51 especially ^? direct+ ! small] e/abli%m5ts1 use ! t]m pr(its to include r5t & int]e/ on _! own prop]ty4 ,9 o!r words1 !y describe _! entire income f ! bus9ess z pr(its4 ,9 ! pres5t discussion1 & ?r\gh\t ?is book g5]ally1 pr(its are to be und]/ood z compris+ m]ely t "p ( ! bus9ess man's returns :i* he takes z ! rew>d ( 8 lab\r1 & z insurance aga9/ ! risks affect+ 8 ent]prise4 ,d$uct f ! bus9ess man's total income a sum :i* w cov] int]e/ on 8 capital at ! prevail+ rate & r5t on 8 l&1 & y h left 8 income z bus9ess man1 8 pr(its4 ,! ,am\nt ( ,pr(its ,9 a prec$+ *apt] we h se5 t :]e ! conditions ( capital are ! same1 !re exi/s a fairly uni=m rate ( int]e/4 ,no su* uni=mity obta9s 9 ! field ( pr(its4 ,bus9esses subject to ! same risks & requir+ ! same k9d ( managem5t yield v diff]5t am\nts ( return to _! directors4 ,9 a s5se ! bus9ess man may be reg>d$ z ! residual claimant ( indu/ry4 ,?is does n mean t he takes no pr(its until all ! o!r ag5ts ( production h be5 fully remun]at$1 b t 8 %>e rema9s indet]m9ate until ! end ( ! productive p]iod1 say1 six mon?s or a ye>1 :ile ! %>es ( ! o!r ag5ts are det]m9$ be=eh&4 ,at ! end ( ! productive p]iod1 ! bus9ess man may f9d t 8 pr(its are l>ge1 mod]ate1 or small1 :ile ! l&[n]1 ! capitali/1 & ! lab\r] ord9>ily obta9 ! precise am\nts ( r5t1 int]e/1 & wages t !y _h expect$ to obta94 ,t !re exi/s no def9ite upp] limit to pr(its is prov$ by ! hi/ory ( mod]n millionaires4 ,t !re exi/s no rigid l[] limit is prov$ by ! l>ge proportion ( ent]prises t meet ) failure4 ,nev]!less x w\ld be wrong to inf] t ! volume ( pr(its is gov]n$ by no law :atev]1 or t !y %[ no t5d5cy t[>d uni=mity 9 any "p ( ! indu/rial field4 ,!re is a calculat$ or preconceiv$ m9imum4 ,no man w emb>k 9 bus9ess = himself unless he has reason to expect t x w yield him1 9 addition to protection aga9/ risks1 an income z l>ge z he c\ld obta9 by hir+ 8 s]vices to "s "o else4 ,9 o!r words1 contemplat$ pr(its mu/ be at lea/ equal to ! income ( ! sal>i$ bus9ess manag]4 ,no t5d5cy t[>d uni=mity ( pr(its exi/s among v l>ge ent]prises nor among indu/ries :i* are con/antly adopt+ new me?ods & new inv5tions4 ,9 bus9esses ( small & mod]ate size1 & 9 ^? ^: me?ods h become /&>dis$1 su* z a retail groc]y /ore1 or a factory t turns out /aple k9ds ( %oes1 pr(its t5d to be ab\t ! same 9 ! great majority ( e/abli%m5ts4 ,9 su* indu/ries ! pr(its ( ! bus9ess man d n (t5 exce$ ! sal>y t he c\ld comm& z g5]al manag] = "s "o else 9 ! same k9d ( bus9ess4 ,pr(essor ,k+ e/imates ! total volume ( pr(its 9 ! ,unit$ ,/ates 9 #aiaj z almo/ eight & "o-half billion doll>s4 ,?is 0 #bg4e p] c5t4 ( ! national product1 z aga9/ #bd4f p] c5t4 9 #ahij & #cj p] c5t4 9 #aijj4afj ,he int]prets ! fall 9 ! wage e>n]s' %>e :i* has tak5 place s9ce #ahij 7#ec4e to #df4i p] c5t47 z indicat+ a consid]able increase 9 ! %>e ( ^? bus9ess m5 :o control ! v l>ge indu/ries4 ,! promot]s & manipulators ( ^! conc]ns h receiv$1 z _! %>e ( ! spoils1 p]man5t income claims1 9 ! %ape ( securities1 l>ge en\gh to make ,croesus appe> l a paup]4#afa ,moreov]1 ev5 outside ?is monopoly field1 ! m able & successful bus9ess m5 seem to h obta9$ 9 rec5t ye>s :at might be t]m$ a relatively l>ge %>e ( ! product ( indu/ry4 ,! exceptionally effici5t und]tak]s1 ^? possess+ ! imag9ation1 =esight1 judgm5t1 & c\rage to take full advantage ( ! rec5t improvem5ts 9 ! indu/rial arts1 & 9 ! me?ods ( production g5]ally1 seem to h advanc$ 9 weal? & income m rapidly ?an any o!r class t has be5 subject to ! op]ation ( competition4 ,pr(its 9 ! ,jo9t-,/ock ,company ,up to ?is po9t we h be5 consid]+ ! indep5d5t bus9ess man1 ! und]tak] :o manages 8 ent]prise ei!r alone or z a memb] ( a p>tn]%ip4 ,9 all su* conc]ns x is easy to id5tify ! bus9ess man4 ,:o or :]e is ! bus9ess man 9 a jo9t /ock company8 ,:]e are ! pr(its1 & :o gets !m8 ,/rictly speak+1 !re is no und]tak] or bus9ess man 9 a corporation4 ,8 functions ( own]%ip1 responsibility1 & direction are ex]cis$ by ! :ole body ( /ockhold]s ?r\gh ! bo>d ( directors & o!r (fic]s4 ,x is true t 9 v _m1 probably 9 mo/ corporations1 "o or a v few ( ! l>ge/ /ockhold]s dom9ate ! policies ( ! conc]n1 & ex]cise almo/ z mu* p[] & au?ority z ?\gh !y 7 ! sole own]s4 ,nei!r ^!1 h[ev]1 nor any o!r (fic] 9 a corporation receives pr(its 9 ! same s5se z ! indep5d5t own] ( a bus9ess4 ,= _! active s]vices ! (fic]s ( ! corporation are giv5 sal>ies2 = ! risks t !y und]go z own]s ( ! /ock !y are comp5sat$ 9 ! same way z all ! o!r /ockhold]s1 t is1 ?r\gh a suffici5tly high rate ( divid5d4 ,= example1 9 railroads ! bonds usually pay f f\r to five p] c5t41 ! /ock f five to six p] c5t4 ,! bonds repres5t borr[$ money1 & are secur$ by a mortgage on ! physical prop]ty4 ,! /ock repres5ts ! money inve/$ by ! own]s1 & is subject to all ! risks ( own]%ip2 h5ce its hold]s require ! protection :i* is af=d$ by ! extra "o p] c5t4 :i* !y obta9 ov] t paid to ! bondhold]s4 ,:ile a corporation has no pr(its 9 ! s5se ( a rew>d = directive activity or a protection aga9/ risk1 x frequ5tly possesses pr(its 9 ! s5se ( a surplus :i* rema9s aft] co/s & exp5ses ( e k9d h be5 defray$4 ,^! pr(its are ord9>ily di/ribut$ pro rata among ! /ockhold]s1 ei!r outright 9 ! =m ( an extra divid5d1 or indirectly ?r\gh enl>gem5t ( ! prop]ty & bus9ess ( ! company4 ,!y are surplus ga9s or pr(its hav+ ! same int]mitt5t & speculative "* z ! extra ga9s :i* ! individual bus9ess man sometimes obta9s 9 addition to ^? pr(its :i* are necess>y to remun]ate him = 8 lab\r1 & protect him aga9/ risks4 ,!y are n pr(its 9 ! ord9>y economic s5se ( ! t]m4 ,,footnotes3 #afj ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 #aeh1 #afj4 #afa ,idem1 p4 #bah4 ,,*apt] ,,xvi ,,! ,,pr9cipal ,,canons ,,( ,,di/ributive ,,ju/ice ,be=e tak+ up ! "q ( ! morality ( pr(its1 x w be helpful1 if n necess>y1 to consid] ! *ief rules ( ju/ice t h be5 or might be adopt$ 9 di/ribut+ ! product ( indu/ry among ^? :o p>ticipate actively 9 ! productive process4 ,:ile ! discussion is und]tak5 ) p>ticul> ref]5ce to ! rew>ds ( ! bus9ess man1 x w also h an important be>+ on ! comp5sation ( ! wage e>n]4 ,! morality ( r5t & int]e/ dep5ds ^u o!r pr9ciples ?an ^? gov]n+ ! remun]ation ( human activity2 & x has be5 suffici5tly treat$ 9 *apt]s xii & xiii4 ,! canons ( di/ribution applicable to our pres5t /udy are ma9ly six 9 numb]3 ari?metical equality2 proportional ne$s2 ef=ts & sacrifices2 comp>ative productivity2 relative sc>city2 & human welf>e4 ,! ,canon ( ,equality ,accord+ to ! rule ( ari?metical equality1 all p]sons :o contribute to ! product %\ld receive ! same am\nt ( remun]ation4 ,) ! exception ( ,b]n>d ,%aw1 no important writ] def5ds ?is rule to-day4 ,x is unju/ because x w\ld treat unequals equally4 ,al?\gh m5 are equal z moral entities1 z human p]sons1 !y are unequal 9 desires1 capacities1 & p[]s4 ,an income t w\ld fully satisfy ! ne$s ( "o man w\ld meet only #ge p] c5t41 or #ej p] c5t41 ( ! capacities ( ano!r4 ,to allot !m equal am\nts ( income w\ld be to treat !m unequally ) reg>d to ! requisites ( life & self developm5t4 ,to treat !m unequally 9 ^! matt]s w\ld be to treat !m unequally z reg>ds ! real & only purpose ( prop]ty rights4 ,t purpose is welf>e4 ,h5ce ! equal moral claims ( m5 :i* admitt$ly arise out ( _! moral equality mu/ be con/ru$ z claims to equal degrees ( welf>e1 n to equal am\nts ( ext]nal goods4 ,to put ! matt] 9 ano!r way1 ext]nal goods are n welf>e2 !y are only means to welf>e2 consequ5tly _! importance mu/ be det]m9$ by _! be>+ ^u ! welf>e ( ! individual4 ,f e po9t ( view1 !re=e1 x is evid5t t ju/ice 9 indu/rial di/ribution mu/ be measur$ ) ref]5ce to welf>e r ?an ) ref]5ce to incomes1 & t any s*eme ( di/ribution :i* provid$ equal incomes = all p]sons w\ld be radically unju/4 ,moreov]1 ! rule ( equal incomes is socially impracticable4 ,x w\ld det] ! great majority ( ! m effici5t f putt+ =? _! be/ ef=ts & turn+ out _! maximum product4 ,z a consequ5ce1 ! total volume ( product w\ld be s dim9i%$ z to r5d] ! %>e ( ! great majority ( p]sons small] ?an x w\ld h be5 "u a rational plan ( unequal di/ribution4 ,! ,canon ( ,ne$s ,! second conceivable rule is t ( proportional ne$s4 ,x w\ld require ea* p]son to be rew>d$ 9 accordance ) 8 capacity to use goods reasonably4 ,if ! task ( di/ribution 7 entirely indep5d5t ( ! process ( production1 ?is rule w\ld be ideal2 = x w\ld treat m5 z equal 9 ^? respects 9 :i* !y are equal2 namely1 z be+s end[$ ) ! dignity & ! pot5cies ( p]sonality2 & x w\ld treat !m z unequal 9 ^? respects 9 :i* !y are unequal2 t is1 9 _! desires & capacities4 ,b ! relation betwe5 di/ribution & production _c be left out ( acc\nt4 ,! product is di/ribut$ prim>ily among ! ag5ts ( production only1 & x mu/ be s di/ribut$ z to give due consid]ation to ! moral claims ( ! produc] z su*4 ,! latt] has to be consid]$ n m]ely z a p]son possess+ ne$s1 b z a p]son :o has contribut$ some?+ to ! mak+ ( ! product4 ,:5ce arise ! que/ions ( relative ef=ts & sacrifices1 & relative productivity4 ,s9ce only ^? :o h contribut$ to ! product p>ticipate 9 ! di/ribution !re(1 x w\ld seem t !y %\ld be rew>d$ 9 proportion to ! ef=ts & sacrifices t !y ex]t & und]go4 ,z an example ( v>y+ ef=t1 let u take two m5 ( equal ne$s :o p]=m ! same lab\r 9 su* a way t ! fir/ exp5ds #ij p] c5t4 ( 8 en]gy1 :ile ! second exp5ds #fj p] c5t4 ,z an example ( v>y+ sacrifice1 let u take ! dit* digg]1 & ! driv] :o sits all day on ! dump wagon4 ,9 bo? ^! examples ! fir/ man exp5ds m pa9ful ex]tion ?an ! second4 ,?is w\ld seem to make a diff]5ce 9 _! moral des]t4 ,ju/ice w\ld seem to require t 9 ea* case comp5sation %\ld be proportionate to ex]tion r ?an to ne$s4 ,at any rate1 ! claims ( ne$s %\ld be modifi$ to "s ext5t 9 fav\r ( ! claims ( ex]tion4 ,x is ^u ! pr9ciple ( ef=ts & sacrifices t we expect our et]nal rew>ds to be bas$ by ! inf9itely j ,rew>d]4 ,! pr9ciple ( ne$s is likewise 9 conflict ) ! pr9ciple ( comp>ative productivity4 ,m5 g5]ally dem& rew>ds 9 proportion to _! products4 ,! validity ( ?is dem& we %all exam9e 9 a subsequ5t p>agraph4 ,l ! rule ( ari?metical equality1 ! rule ( proportional ne$s is n only incomplete e?ically b impossible socially4 ,m5's ne$s v>y s widely & s imp]ceptibly t no human au?ority c\ld use !m z ! basis ( ev5 an approximately accurate di/ribution4 ,moreov]1 any attempt to di/ribute rew>ds on ?is basis alone w\ld be injuri\s to social welf>e4 ,x w\ld lead to a great dim9ution 9 ! productivity ( ! m hone/1 ! m en]getic1 & ! m effici5t among ! ag5ts ( production4 ,! ,canon ( ,ef=ts & ,sacrifice ,! ?ird canon ( di/ribution1 t ( ef=ts & sacrifices1 w\ld be ideally j if we c\ld ignore ! que/ions ( ne$s & productivity4 ,b we _c ?9k x j to rew>d equally two m5 :o h exp5d$ ! same quantity ( pa9ful ex]tion1 b :o diff] 9 _! ne$s & 9 _! capacities ( self developm5t4 ,to d s w\ld be to treat !m unequally 9 ! matt] ( welf>e1 :i* is ! end & reason ( all di/ribution4 ,consequ5tly ! pr9ciple ( ef=ts & sacrifices mu/ be modifi$ by ! pr9ciple ( ne$s4 ,app>5tly x mu/ also give way 9 "s degree to ! pr9ciple ( comp>ative productivity4 ,:5 two m5 ( unequal p[]s make equal ef=ts1 !y turn out unequal am\nts ( product4 ,almo/ inv>iably ! m productive man believes t he %\ld receive a great] %>e ( ! product ?an ! o!r4 ,he believes t ! rew>ds %\ld be det]m9$ by productivity4 ,x is evid5t t ! rule ( ef=ts & sacrifices1 l ^? ( equality & ne$s1 c\ld n be univ]sally en=c$ 9 practice4 ,) ! exception ( cases 9 :i* ! work] is call$ ^u regul>ly to make great] sacrifices ow+ to ! disagreeable nature ( ! task1 attempts to measure ! am\nts ( ef=t & pa9ful ex]tion put =? by ! diff]5t ag5ts ( production w\ld on ! :ole be little m ?an r\gh guesses4 ,^! w\ld probably prove unsatisfactory to ! majority4 ,moreov]1 ! possessors ( sup]ior productive p[] w\ld 9 mo/ in/ances reject ! pr9ciple ( ef=ts & sacrifices z unfair1 & refuse to d _! be/ "w "u its op]ation4 ,! ?ree rules already consid]$ are =mally e?ical1 inasmu* z !y are directly bas$ ^u ! dignity & claims ( p]sonality4 ,! two foll[+ are prim>ily physical & social2 = !y measure economic value r ?an e?ical wor?4 ,nev]!less1 !y mu/ h a l>ge place 9 any sy/em :i* includes ! factor ( competition4 ,! ,canon ( ,productivity ,accord+ to ?is rule1 m5 %\ld be rew>d$ 9 proportion to _! contributions to ! product4 ,x is op5 to ! obvi\s objection t x ignores ! moral claims ( ne$s & ef=ts4 ,! ne$s & use-capacities ( m5 d1 inde$1 be> "s relation to _! productive capacities1 & ! man :o c produce m usually ne$s m2 b ! diff]5ces betwe5 ! two elem5ts are s great t di/ribution bas$ solely ^u productivity w\ld fall f> %ort ( satisfy+ ! dem&s ( ne$s4 ,yet we h se5 t ne$s con/itute "o ( ! fundam5tally valid pr9ciples ( di/ribution4 ,betwe5 productivity on ! "o h& & ef=ts & sacrifices on ! o!r1 !re are likewise important diff]5ces4 ,:5 m5 ( equal productive p[] are p]=m+ ! same k9d ( lab\r1 sup]ior am\nts ( product d repres5t sup]ior am\nts ( ef=t2 :5 ! tasks diff] 9 irksom5ess or disagreeabl5ess1 ! l>g] product may be br\ght into be+ ) a small] exp5diture ( pa9ful ex]tion4 ,if m5 are unequal 9 productive p[] _! products are obvi\sly n 9 proportion to _! ef=ts4 ,consid] two m5 ^: natural physical abilities are s unequal t !y c h&le ) equal ef=t %ovels diff]+ 9 capacity by fifty p] c5t4 ,in/ances ( ?is k9d are innum]able 9 indu/ry4 ,if ^! two m5 are rew>d$ accord+ to productivity1 "o w get fifty p] c5t4 m comp5sation ?an ! o!r4 ,yet ! surplus receiv$ by ! m =tunate man does n repres5t any action or quality = :i* he is p]sonally responsible4 ,x corresponds to no l>g] output ( p]sonal ef=t1 no sup]ior ex]cise ( w1 no great] p]sonal des]t4 ,x is bas$ solely ^u a ri*] physical end[m5t by ! ,creator4 ,x is cle>1 !n1 t ! canon ( productivity _c be accept$ to ! exclusion ( ! pr9ciples ( ne$s & ef=ts4 ,x is n ! only e?ical rule ( di/ribution4 ,is x a valid p>tial rule8 ,sup]ior productivity is frequ5tly due to l>g] ef=t & exp5se put =? 9 /udy & 9 o!r =ms ( indu/rial prep>ation4 ,9 su* cases x dem&s sup]ior rew>ds by ! title ( ef=ts & sacrifices4 ,:]e1 h[ev]1 ! great] productivity is due m]ely to high] native qualities1 physical or m5tal1 ! great] rew>d is n easily ju/ifi$ on purely e?ical gr\nds4 ,= x repres5ts no p]sonal responsibility1 w-ef=t1 or creativ5ess4 ,nev]!less1 ! great majority ( ! m =tunately end[$ ?9k t !y are unfairly treat$ unless !y are recomp5s$ 9 proportion to _! products4 ,sometimes ?is conviction is due to ! fact t su* m5 wrongly attribute _! l>g] product to great] ef=ts4 ,9 v _m cases1 h[ev]1 ! possessors ( sup]ior productive p[] believe t !y %\ld be rew>d$ 9 proportion to _! products1 reg>dless ( any o!r pr9ciple or factor4 ,probably ! true explanation ( ?is belief is to be f\nd 9 man's innate laz9ess4 ,:ile ! preval5ce ( ! conviction t sup]ior productivity con/itutes a j title to sup]ior comp5sation1 does create "s k9d ( a presumption 9 fav\r ( its correctness1 x mu/ be rememb]$ t presumption is n pro(4 ,weigh+ ?is presumption aga9/ ! objective consid]ations on ! opposite side ( ! argum5t1 we take refuge 9 ! conclusion t ! e?ical validity ( ! canon ( comp>ative productivity c nei!r be c]ta9ly prov$ nor c]ta9ly disprov$4 ,l ! rules ( equality1 ne$s1 & ef=ts1 t ( productivity _c be univ]sally en=c$ 9 practice4 ,x is susceptible ( accurate application among produc]s :o p]=m ! same k9d ( "w ) ! same k9d ( in/rum5ts & equipm5t2 = example1 betwe5 two %ovell]s1 two ma*9e op]ators1 two bookkeep]s1 two lawy]s1 two physicians4 ,z a rule1 x _c be adequately appli$ to a product :i* is br\ght into exi/5ce ?r\gh a comb9ation ( diff]5t processes4 ,! eng9e driv] & ! track repair] contribute to ! common product1 railway transportation2 ! bookkeep] & ! ma*9e t5d] co-op]ate 9 ! production ( hats2 b we _c tell 9 ei!r case :e!r ! fir/ contributes m or less ?an ! second1 = ! simple reason t we h no common measure ( _! contributions4 ,sometimes1 h[ev]1 we c comp>e ! productivity ( individuals engag$ 9 diff]5t processes2 t is1 :5 bo? c be remov$ f ! indu/ry )\t caus+ x to come to a /op4 ,?us1 x c be %[n t a s+le eng9e driv] produces m railway transportation ?an a s+le track repair]1 because ! lab\r ( ! latt] is n indisp5sable to ! haul+ ( a giv5 load ( c>s4 ,b no su* comp>ison c be made z betwe5 ! :ole body ( eng9e driv]s & ! :ole body ( track repair]s1 s9ce bo? gr\ps are indisp5sable to ! production ( railway transportation4 ,aga91 a man c be %[n to ex]t sup]ior productivity because he affects ! productive process at m po9ts & 9 a m intimate way ?an ano!r :o contributes to ! product 9 a :olly diff]5t mann]4 ,:ile ! surgeon & ! att5dant nurse are bo? necess>y to a surgical op]ation1 ! =m] is cle>ly m productive ?an ! latt]4 ,:5 due all[ance is made = all su* cases1 ! fact rema9s t 9 a l>ge "p ( ! indu/rial field x is simply impossible to det]m9e remun]ation by ! rule ( comp>ative productivity4 ,! ,canon ( ,sc>city ,x frequ5tly happ5s t m5 attribute _! l>g] rew>ds to l>g] productivity1 :5 ! true det]m9+ elem5t is sc>city4 ,! imm$iate reason :y ! eng9e driv] receives m ?an ! track repair]1 ! g5]al manag] m ?an ! section =eman1 ! floorwalk] m ?an ! salesgirl1 lies 9 ! fact t ! =m] k9ds ( lab\r are n s pl5tiful z ! latt]4 ,7 g5]al manag]s relatively z abundant z section =em5 _! remun]ation w\ld be q z l[2 & ! same pr9ciple holds good ( e pair ( m5 ^: occupations & products are diff]5t 9 k9d4 ,yet ! productivity ( ! g5]al manag]s w\ld rema9 z great z be=e4 ,on ! o!r h&1 no matt] h[ pl5tiful ! m productive m5 may become1 !y c always comm& high] rew>ds ?an ! less productive m5 9 ! same occupation1 = ! simple reason t _! products are sup]ior ei!r 9 quantity or 9 quality4 ,m5 engag$ ^u ! m skill$ tasks are likewise mi/ak5 :5 !y attribute _! great] comp5sation to ! intr9sic excell5ce ( _! occupation4 ,! fact is t ! community c>es no?+ ab\t ! relative nobility1 or +5uity1 or o!r inh]5t quality ( indu/rial tasks or functions4 ,x is conc]n$ solely ) products & results4 ,z betwe5 two m5 p]=m+ ! same task1 sup]ior effici5cy receives a sup]ior rew>d because x issues 9 a l>g] or bett] product4 ,z betwe5 two m5 p]=m+ diff]5t tasks1 sup]ior skill receives sup]ior comp5sation simply because x c comm& ! great] comp5sation2 & x is able to d ?is because x is sc>ce4 ,9 mo/ cases :]e sc>city is ! imm$iate det]m9ant ( rew>ds1 ! ultimate det]m9ant is1 p>tly at lea/1 "s k9d ( sacrifice4 ,"o reason :y *emi/s & civil eng9e]s are r>] ?an common lab\r]s is to be f\nd 9 ! great] co/ ( prep>ation4 ,! sc>city ( work]s 9 occupations t require no special degree ( skill is due to unusual haz>ds & unpleasantness4 ,9 s f> z sc>city is caus$ by ! uncommon sacrifices prec$+ or involv$ 9 an occupation1 ! result+ high] rew>ds obvi\sly re/ ^u mo/ solid e?ical gr\nds4 ,h[ev]1 "s "p ( ! diff]5ces 9 sc>city is ! result ( unequal opportunities4 ,if all "y p]sons _h equal facilities ( obta9+ college & te*nical tra9+1 ! supply ( ! high] k9ds ( lab\r w\ld be consid]ably l>g] ?an x n[ is1 & ! comp5sation w\ld be consid]ably small]4 ,sc>city w\ld !n be det]m9$ by only ?ree factors2 namely1 v>y+ co/s ( tra9+1 v>y+ degrees ( dang] & unattractiv5ess among occupations1 & inequalities 9 ! di/ribution ( native ability4 ,z a consequ5ce1 competition w\ld t5d to apportion rew>ds accord+ to ef=ts1 sacrifices1 & effici5cy4 ,h[ c we ju/ify ! sup]ior rew>ds ( t sc>city :i* is n due to unusual co/s ( any sort1 b m]ely to re/rict$ opportunity8 ,s f> z society is conc]n$1 ! answ] is simple3 ! practice pays4 ,z to ! possessors ( ! r>] k9ds ( ability1 !y are 9 ab\t ! same e?ical position z ^? p]sons ^: sup]ior productivity is d]iv$ entirely f sup]ior native end[m5t4 ,9 bo? cases ! unusual rew>ds are due to factors outside ! control ( ! recipi5ts2 to advantages :i* !y !mselves h n br\ght into exi/5ce4 ,9 ! =m] case ! decisive factor & advantage is opportunity2 9 ! latt] x is a gift ( ! ,creator4 ,n[ we h se5 t ?is sort ( productivity _c be prov$ to be immoral z a canon ( di/ribution2 consequ5tly ! same /atem5t w hold good ( ?is sort ( sc>city4 ,! ,canon ( ,human ,welf>e ,we say human welf>e r ?an social welf>e1 9 ord] to make cle> ! fact t ?is canon consid]s ! well be+ ( m5 n only z a social gr\p1 b also z individuals4 ,x includes & summ>ises all t is e?ically & socially feasible 9 ! five canons already review$4 ,x takes acc\nt ( equality1 inasmu* z x reg>ds all m5 z p]sons1 z subjects ( rights2 & ( ne$s1 inasmu* z x aw>ds to all ! necess>y p>ticipants 9 ! indu/rial sy/em at lea/ t am\nt ( remun]ation :i* w meet ! elem5t>y dem&s ( dec5t liv+ & self developm5t4 ,x is gov]n$ by ef=ts & sacrifices1 at lea/ 9 s f> z !y are reflect$ 9 productivity & sc>city2 & by productivity & sc>city to :atev] ext5t is necess>y 9 ord] to produce ! maximum net results4 ,x w\ld give to e produc] suffici5t remun]ation to evoke 8 greate/ net contribution to ! productive process4 ,greate/ net contribution2 = a man's absolute maximum product may n always be wor? ! requir$ price4 ,= example3 a man :o = a sal>y ( #bejj doll>s turns out a product valu$ at #cjjj doll>s1 %\ld n be giv5 #cjjj doll>s 9 ord] to induce him to br+ =? a product wor? #ccjj doll>s4 ,9 ?is case a sal>y ( #bejj doll>s evokes ! maximum net product1 & repres5ts ! rew>d :i* w\ld be assign$ by ! canon ( human welf>e4 ,once ! vital ne$s ( ! individual h be5 safegu>d$1 ! supreme guide ( ! canon ( human welf>e is ! pr9ciple ( maximum net results1 or ! greate/ product at ! l[e/ co/4 ,x is n cont5d$ "h t ?is canon ought nev] to und]go modification or exception4 ,ow+ to ! exceptional haz>ds & sacrifices ( _! occupation1 a comb9ation ( produc]s might be ju/ifi$ 9 exact+ l>g] comp5sation ?an w\ld be accord$ !m by ! canon ( human welf>e on ! basis ( net results 9 ! pres5t conditions ( supply & sc>city4 ,unusual ne$s & capacities might also ju/ify a /rong gr\p 9 pursu+ ! same c\rse4 ,all t is ass]t$ at pres5t is t 9 conditions ( av]age competition ! canon ( human welf>e is n unju/4 ,& ?is is all t is necess>y z a prelim9>y to ! discussion ( j pr(its4#afb ,,footnote3 #afb ,a v sugge/ive discussion ( ! psy*ology1 ! g5]al pr9ciples1 & ! practical limitations ( di/ributive ju/ice1 w be f\nd 9 an article by ,gu/av ,s*moll]1 entitl$1 ,! ,idea ( ,ju/ice 9 ,political ,economy4 ,x is ,no4 #aac 9 ! ,publications ( ! ,am]ican ,academy ( ,political & ,social ,sci5ce4 ,,*apt] ,,xvii ,,j ,,pr(its ,,9 ,,conditions ,,( ,,competition ,we h se5 t pr(its are t %>e ( ! product ( indu/ry :i* goes to ! bus9ess man4 ,!y comprise t residual portion :i* he f9ds 9 8 h&s aft] he has made all exp5ditures & all[ances = wages1 sal>ies1 int]e/ at ! prevail+ rate on bo? 8 own & ! borr[$ capital1 & all o!r prop] *>ges4 ,!y con/itute 8 comp5sation = 8 lab\r ( direction1 & = ! risks ( 8 ent]prise & capital4 ,9 ! op9ion ( mo/ ,sociali/s1 pr(its are immoral because !y are an ess5tial elem5t ( an unju/ indu/rial sy/em1 & because !y are n entirely bas$ ^u lab\r4 ,"u ,socialism ! organis+ & direct+ functions t are n[ p]=m$ by ! bus9ess man1 w\ld be allott$ to sal>i$ sup]9t5d5ts & manag]s4 ,_! comp5sation w\ld include no paym5t = ! risks ( capital1 & x w\ld be fix$ in/ead ( indet]m9ate4 ,h5ce x w\ld diff] consid]ably f pres5t-day pr(its4 ,to ! ass]tion t pr(its are immoral a suffici5t reply at ?is "t is t ,socialism has already be5 %[n to be impracticable & inequitable4 ,consequ5tly ! sy/em ( private indu/ry is ess5tially j1 & pr(its1 be+ a necess>y elem5t ( ! sy/em1 are ess5tially legitimate4 ,! "q ( _! morality is "o ( degree n ( k9d4 ,x w be consid]$ "u two pr9cipal heads3 ! "r ( ! bus9ess man to obta9 indef9itely l>ge pr(its2 & 8 "r to a c]ta9 m9imum ( pr(its4 ,! ,"q ( ,indef9itely ,l>ge ,pr(its ,z a g5]al rule1 bus9ess m5 :o face conditions ( active competition h a "r to all ! pr(its t !y c get1 s long z !y use fair bus9ess me?ods4 ,?is means n m]ely fair & hone/ conduct t[>d competitors1 & buy]s & sell]s1 b also j & humane treatm5t ( lab\r 9 all ! conditions ( employm5t1 especially 9 ! matt] ( wages4 ,:5 ^! conditions are fulfill$1 ! fre$om to take indef9itely l>ge pr(its is ju/ifi$ by ! canon ( human welf>e4 ,! great majority ( bus9ess m5 9 competitive indu/ries d n receive incomes 9 excess ( _! reasonable ne$s4 ,_! pr(its d n notably exce$ ! sal>ies t !y c\ld comm& z hir$ manag]s1 & g5]ally are n m ?an suffici5t to reimburse !m = ! co/ ( education & bus9ess tra9+1 & to enable !m to live 9 reasonable con=mity ) ! /&>d ( liv+ to :i* !y h become accu/om$4 ,ef=ts & sacrifices are reflect$ to "s ext5t 9 ! diff]5t am\nts ( pr(its receiv$ by diff]5t bus9ess m54 ,:5 all due all[ance is made = *ance1 productivity1 & sc>city1 a consid]able proportion ( pr(its is attributable to h>d] lab\r1 great] risk & worry1 & l>g] sacrifices4 ,l ! pr9ciple ( ne$s1 t ( ef=ts & sacrifices is a p>tial ju/ification ( ! bus9ess man's remun]ation4 ,^? pr(its :i* _c be ju/ifi$ by ei!r ( ! titles j m5tion$1 are e?ically w>rant$ by ! pr9ciples ( productivity & sc>city4 ,?is is p>ticul>ly true ( ^? exceptionally l>ge pr(its :i* c be trac$ specifically to t unusual ability :i* is exemplifi$ 9 ! inv5tion & adoption ( new me?ods & processes 9 progressive indu/ries4 ,! receiv]s ( ^! l>ge rew>ds h produc$ !m 9 competition ) less effici5t bus9ess m54 ,:ile ! title ( productivity does n entirely satisfy ! seek] = decisive e?ical sanctions1 x is /rong] morally ?an any oppos+ consid]ations t c be invok$4 ,x is probably z /rong z "s o!r pr9ciples t we h to accept z ! be/ atta9able 9 ! v difficult field ( indu/rial e?ics4 ,nev]!less1 x w\ld seem t ^? bus9ess m5 :o obta9 exceptionally l>ge pr(its c\ld be reasonably requir$ to transf] "p ( _! ga9s to _! employs 9 ! =m ( high] wages1 or to ! consum]s 9 ! =m ( l[] prices4 ,bo? ( ^! me?ods h be5 foll[$ by ,h5ry ,=d1 ! automobile manufactur]4 ,nei!r ( !m is c]ta9ly dem&$ by ! pr9ciples ( /rict ju/ice2 !y re/ ^u ! feebl] & less decisive pr9ciple ( g5]al equity or fairness4#afc ,?is concept is less def9ite ?an ^? ( *>ity & ju/ice1 & /&s midway betwe5 !m4 ,x comes into op]ation :5 an action is obligatory on /rict] gr\nds ?an ^? ( *>ity1 & yet _c ) c]ta9ty be requir$ on gr\nds ( ju/ice4 ,not)/&+ its vagu5ess1 x is suffici5tly /rong to make ! av]age consci5ti\s man feel uncom=table if he neglects its prescriptions entirely4 ,x has1 !re=e1 suffici5t practical value to des]ve a place 9 ! e?ics ( di/ribution4 ,& x seems to h suffici5t application to ! problem be=e u to ju/ify ! /atem5t t ! receiv]s ( exceptionally l>ge pr(its are b\nd 9 equity to %>e !m ) ^? p]sons :o h co-op]at$ 9 produc+ & provid+ !m1 namely1 wage e>n]s & consum]s4 ,9 ! field ( pr(its ! canon ( human welf>e is n only s\nd e?ically b exp$i5t socially4 ,x p]mits ! great majority ( bus9ess m5 to obta91 if !y c1 suffici5t remun]ation to meet _! reasonable ne$s4 ,:e!r x requires society to gu>antee at lea/ ?is am\nt ( pr(it-income is a "q t we %all exam9e pres5tly4 ,x enc\rages ef=ts1 & makes = ! maximum social product by p]mitt+ bus9ess m5 to reta9 all ! pr(its t !y c get 9 conditions ( fair competition4 ,does x =bid any attempt by society to limit exceptionally l>ge pr(it-incomes8 ,if ! limit 7 plac$ v high1 say1 at #ej1jjj doll>s p] ye>1 x w\ld n app>5tly *eck ! productive ef=ts ( ! great majority ( bus9ess m51 s9ce !y nev] hope to pass t figure4 ,:e!r x w\ld h a s]i\sly disc\rag+ effect ^u ! activity & ambition ( ^? :o d hope to rea*1 & ( ^? :o h already rea*$ t level1 is unc]ta94 ,among bus9ess m5 :o are approa*+ or :o h pass$ ! #ej1jjj doll>s annual pr(it-income m>k1 ! desire to possess m money is frequ5tly weak] z a motive to bus9ess activity ?an ! long+ = p[] & ! driv+ =ce ( habit4 ,at any rate1 ! "q is n v practical4 ,any su/a9$ attempt to limit pr(its by law w\ld require su* ext5sive & m9ute sup]vision ( bus9ess t ! policy w\ld prove to be socially intol]able & unpr(itable4 ,! espionage involv$ 9 ! policy w\ld provoke g5]al res5tm5t1 & ! am\nt ( pr(its t c\ld be div]t$ ei!r to ! ,/ate or to private p]sons w\ld be relatively insignificant4 ,?us f> we h be5 consid]+ ! indep5d5t bus9ess man & bus9ess firm1 n ! jo9t /ock company or corporation4 ,9 ! latt] =m ( organisation1 ! lab\r ( direction is remun]at$ by fix$ sal>ies to ! executive (fic]s1 :ile ! risks ( ent]prise & capital are cov]$ by ! regul> divid5ds receiv$ by ! :ole body ( /ockhold]s4 ,consequ5tly ! only rev5ues comp>able to pr(its are ! surplus ga9s t rema9 aft] wages1 sal>ies1 int]e/1 divid5ds1 r5t1 & all o!r exp5ses & *>ges h be5 met4 ,^! are apportion$ ?r\gh "o process or ano!r among ! /ockhold]s4 ,on :at e?ical pr9ciple c !y be ?us di/ribut$8 ,! g5]al pr9ciple ( productivity1 or sup]ior productivity1 is ! only "o available4 ,if a corporation :i* uses fair me?ods ( competition c obta9 surplus ga9s1 :ile ! majority ( its competitors fail to d s1 ! cause mu/ be s\ght 9 its sup]ior bus9ess managem5t4 ,?is sup]iority mu/ be cr$it$ to ! :ole body ( /ockhold]s1 ev5 ?\gh ! great majority ( !m are responsible = x only 9 a v remote way1 ?r\gh _! selection ( ! executive (fic]s4 ,! /ockhold]s surely h a bett] claim to ^! surplus ga9s ?an any o!r gr\p 9 ! community4 ,at ! same "t1 !y are1 l ! indep5d5t bus9ess man1 b\nd by ! pr9ciple ( equity to %>e ! surplus ) ! lab\r]s & consum]s4 ,! ,"q ( ,m9imum ,pr(its ,has ! bus9ess man a /rict "r to a m9imum liv+ pr(it8 ,9 o!r words1 h all bus9ess m5 a "r to a suffici5t volume ( sales at suffici5tly high prices to provide !m ) liv+ pr(its or a dec5t livelihood8 ,su* a "r w\ld imply a correspond+ obligation ^u ! consum]s1 or ^u society1 to furni% ! requisite am\nt ( dem& at ! requir$ prices4 ,is !re su* a "r1 & su* an obligation8 ,no indu/rial "r is absolute4 ,!y are all condition$ by ! possibilities ( ! indu/rial sy/em1 & by ! desires1 capacities1 & actions ( ! p]sons :o ent] into indu/rial relations ) "o ano!r4 ,z we %all see lat]1 ?is /atem5t is true ev5 ( ! "r to a liv+ wage4 ,:5 ! indu/rial res\rces are adequate1 all p]sons ( av]age ability :o contribute a reasonable am\nt ( lab\r to ! productive process h a "r to a dec5t livelihood on two conditions3 fir/1 t su* lab\r is _! only means ( su/5ance2 &1 second1 t _! lab\r is economically indisp5sable to ^? :o utilise x or its product4 ,economically indisp5sable means t ! b5efici>y ( ! lab\r w\ld r give ! equival5t ( a dec5t livelihood = x ?an g )\t x4 ,:ile bo? ^! conditions are app>5tly fulfill$ 9 ! case ( ! great majority ( wage e>n]s1 !y are only r>ely realis$ ) reg>d to bus9ess m54 ,9 mo/ in/ances ! bus9ess man :o is unable to make liv+ pr(its c\ld become an employ1 & ?us conv]t 8 "r to a dec5t livelihood into a "r to a liv+ wage4 ,ev5 :5 no su* alt]native is op5 to him1 he _c claim a /rict "r to liv+ pr(its1 = ! second condition /at$ above rema9s unfulfill$4 ,! consum+ public does n reg>d ! bus9ess function ( su* m5 z economically indisp5sable4 ,r ?an pay ! high] prices necess>y to provide liv+ pr(its = ! ineffici5t bus9ess m51 consum]s w transf] _! patronage to ! effici5t competitors4 ,%\ld ! retail groc]1 = example1 raise 8 prices 9 ! ef=t to get liv+ pr(its1 8 sales w\ld fall (f to su* an ext5t z to r$uce 8 pr(its /ill l[]4 ,:ile ! consum]s may be will+ to fulfil _! obligation ( furni%+ liv+ pr(its = all necess>y groc]s1 !y are n will+1 nor are !y morally b\nd1 to d s 9 ! case ( groc]s ^: inability to comm& suffici5t patronage at remun]ative prices %[s t !y are n necess>y to ! community4 ,! consum+ public does n want to employ su* bus9ess m5 at su* a co/4 ,nor is ! ,/ate "u obligation to ensure liv+ pr(its = all bus9ess m54 ,to c>ry out su* a policy1 ei!r by en=c+ a suffici5tly high level ( prices1 or by subsidis+ ^? :o fail to obta9 liv+ pr(its1 w\ld be to compel ! public to support ineffici5cy4 ,9 ! =ego+ p>agraphs we h assum$ t ! inability ( ! bus9ess m5 "u consid]ation to get liv+ pr(its is due to _! own lack ( capacity z comp>$ ) _! m effici5t competitors4 ,:51 h[ev]1 _! competitors are n m effici5t1 b are enabl$ to und]sell ?r\gh ! use ( unfair me?ods1 su* z adult]ation ( goods & oppression ( lab\r1 a diff]5t moral situation is pres5t$4 ,hone/ & humane bus9ess m5 und\bt$ly h a claim ^u society to protection aga9/ su* unfair competition4 ,& ! consum]s are "u obligation to make reasonable ef=ts to )hold _! patronage f ^? bus9ess m5 :o practise di%one/y & extortion4 ,! ,"q ( ,sup]flu\s ,bus9ess ,m5 ,al?\gh we h reject$ z impractical ! proposal to set a legal limit to pr(it-incomes1 we h to admit t _m ( ! abl] bus9ess m5 w\ld cont9ue to d _! be/ "w ev5 if ! pr(its t !y c\ld hope to obta9 7 consid]ably small] 9 volume4 ,^! m5 hold a /rategic position 9 indu/ry1 inasmu* z !y are n subject to ! same degree ( con/ant competition z ! o!r ag5ts ( production4#afd ,7 ! supply ( sup]ior bus9ess capacity m pl5tiful1 _! rew>ds w\ld be automatically r$uc$1 & ! burd5 ( pr(its re/+ ^u society w\ld be to t ext5t dim9i%$4 ,on ! o!r h&1 ! numb] ( m$iocre bus9ess m51 especially 9 ! di/ributive indu/ries1 is mu* l>g] ?an is necess>y to supply ! wants ( ! community4 ,?is con/itutes a second unnecess>y volume ( paym5ts "u ! head ( pr(its4 ,is !re no way by :i* ^! wa/es c be r$uc$8 ,! volume ( exceptionally l>ge pr(its c\ld be dim9i%$ by an ext5sion ( ! facilities ( te*nical & indu/rial education4 ,?us ! numb] ( p]sons qualify+ z sup]ior bus9ess m5 c\ld be gradually increas$1 competition among ?is class ( m5 w\ld be int5sifi$1 & _! rew>ds correspond+ly dim9i%$4 ,! pr(its t g to sup]flu\s bus9ess m51 especially 9 ! class kn[n z middlem51 c be l>gely elim9at$ ?r\gh comb9ation & co-op]ation4 ,! t5d5cy to unite into a s+le conc]n a l>ge numb] ( small & ineffici5t ent]prises %\ld be enc\rag$ up to ! po9t at :i* ! comb9ation ?reat5s to become a monopoly4 ,t ?is process is capable ( effect+ a consid]able sav+ 9 bus9ess pr(its z well z 9 capital1 has be5 amply demon/rat$ 9 sev]al diff]5t l9es ( ent]prise4 ,z we h se5 9 a prec$+ *apt]1 ! co-op]ative movem5t1 :e!r 9 bank+1 agriculture1 or /ores1 has be5 di/9ctly successful 9 r$uc+ pr(its4 ,millions ( doll>s are ?us div]t$ e ye> f unnecess>y pr(it-receiv]s to lab\r]s1 consum]s1 & to ! man ( small res\rces g5]ally4 ,yet ! co-op]ative movem5t is only 9 its infancy4 ,x conta9s ! possibility ( elim9at+ entirely ! sup]flu\s bus9ess man1 & ev5 ( dim9i%+ consid]ably ! excessive pr(its ( ! exceptionally able bus9ess man4 ,,footnotes3 #afc ,cf4 pp4 #bab1 #bac ( ,ca/ele9's ,philosophia ,moralis et ,socialis4 #afd ,cf4 ,hobson1 ,! ,indu/rial ,sy/em1 *apt] on ,ability4 ,,*apt] ,,xviii ,,! ,,moral ,,aspect ,,( ,,monopoly ,! conclusion 0 drawn 9 ! la/ *apt] t ! surplus ga9s ( corporations op]at+ 9 conditions ( competition1 c ju/ly be reta9$ by ! /ockhold]s z ! remun]ation ( exceptional productive effici5cy4 ,x is1 ( c\rse1 to be und]/ood t ! prop] all[ance = int]e/ on ! capital is n necess>ily ! am\nt au?oris$ by ! /ipulat$ rate ( divid5d on ! /ock1 b ! prevail+ or competitive rate ( int]e/ plus an adequate rate ( insurance aga9/ ! risks ( ! ent]prise4 ,if ! prevail+ rate ( int]e/ is five p] c5t41 & ! risk is suffici5tly protect$ by an all[ance ( "o p] c5t41 ! fair rate ( return on ! inve/m5t is six p] c5t4 ,! fact t a conc]n may actually aw>d its /ockhold]s t5 p] c5t4 divid5ds1 has no be>+ on ! det]m9ation ( ! g5u9e surplus4 ,if ! actual surplus t rema9s aft] pay+ all o!r *>ges & all[+ t5 p] c5t4 on ! /ock1 is only #ej1jjj doll>s1 :]eas x w\ld be #ajj1jjj doll>s ) an all[ance ( only six p] c5t41 !n ! true surplus ga9s1 or pr(its1 are ! latt] am\nt n ! =m]4 ,no "p ( ! #ajj1jjj doll>s c be ju/ifi$ z int]e/ on capital4 ,x mu/ all f9d its ju/ification z pr(its proce$+ f sup]ior productivity4 ,be>+ 9 m9d ?is di/9ction betwe5 ! actual rate ( divid5d & ! prop] all[ance = int]e/ on capital1 we take up ! "q ( ! morality ( pr(its or surplus ga9s 9 conditions ( monopoly4 ,surplus & ,excessive ,pr(its ,sev]al ( ! great indu/rial comb9ations ( ! ,unit$ ,/ates h obta9$ pr(its :i* are commonly /igmatis$ z excessive4 ,= example1 ! ,/&>d ,oil ,company paid1 f #ahhb to #aijf1 an av]age annual divid5d ( #bd4ae p] c5t4 on ! capital /ock1 & _h pr(its 9 addition at ! rate ( ab\t #h p] c5t4 annually2#afe f #aijd to #aijh ! ,am]ican ,tobacco ,company av]ag$ #ai p] c5t4 on its actual inve/m5t2#aff & ! ,unit$ ,/ates ,/eel ,corporation obta9$ an av]age annual return ( #ab p] c5t4 on its inve/m5t f #aija to #aiaj4afg ,a complete li/ ( ! ,am]ican monopolies t h reap$ m ?an ! competitive rate ( return on _! capital w\ld und\bt$ly be a v long "o4 ,is x possible to ju/ify su* returns8 ,has a monopoly a "r to take surplus ga9s8 ,let u suppose a conc]n :i* is gett+ #ae p] c5t4 on its inve/m5t4 ,inasmu* z ! risks are small] ?an 9 competitive ent]prises1 six p] c5t4 is an ample all[ance = int]e/4 ,( ! rema9+ #i p] c5t41 #d p] c5t41 we %all assume1 is d]iv$ f economies ( production z comp>$ ) ! great majority ( competitive conc]ns4 ,?is portion ( ! surplus1 be+ ! rew>d ( sup]ior effici5cy1 may be reta9$ by ! own]s ( ! monopoly q z ju/ly z simil> ga9s are tak5 by ! exceptionally effici5t corporation 9 conditions ( competition4 ,! objection t ! monopoly ought to %>e ^! ga9s ) ! public1 s9ce x limits individual opportunity 9 a socially undesirable way1 has "s m]it1 b x c sc>cely be urg$ on gr\nds ( /rict ju/ice4 ,at mo/ x po9ts only to an obligation 9 equity4 ,by :at canon ( di/ribution c ! ret5tion ( ! o!r #e p] c5t4 ( surplus ga9 be ju/ifi$8 ,n by ! titles ( ne$s & ef=ts1 = ^! h already be5 satisfi$ ?r\gh ! sal>ies paid to ^? /ockhold]s :o p]=m lab\r 9 ! managem5t ( ! conc]n4 ,^! titles af=d no basis = any o!r claim ?an t :i* proce$s f lab\r4 ,!y _c be made to ju/ify claims made on behalf ( capital4 ,n by ! title ( productivity1 = ?is has already be5 remun]at$ 9 ! #d p] c5t4 j consid]$4 ,n z int]e/ on capital1 = ample all[ance has already be5 made "u ?is head 9 ! orig9al #f p] c5t4 ,z we h se5 9 an e>li] *apt]1 ! only reasons t give e?ical support to int]e/ on capital are ! sacrifice t is involv$ 9 "s k9ds ( sav+1 ! possibility t int]e/ is necess>y 9 ord] to induce ! provision ( suffici5t capital1 ! c]ta9ty t ! ,/ate w\ld be unable to en=ce ! abolition ( int]e/1 & "s presumptive consid]ations4 ,s9ce all ( ^! reasons & ends are satisfi$ by ! competitive rate ( int]e/1 none ( !m w ju/ify ! exaction ( m ?an ! competitive rate4 ,x is n possible to ju/ify a high] rate on ei!r social or individual gr\nds4 ,!re=e1 ! only basis t is left ^u :i* to def5d ! ret5tion ( ! five p] c5t4 surplus t we are discuss+1 is ! p[] ( appropriation4 ,! monopoly possesses ! economic /r5g? to take ?is five p] c5t4 because x is able to impose high] ?an competitive prices ^u ! consum]4 ,obvi\sly su* p[] has no great] e?ical sanction or validity ?an ! pi/ol ( ! highwayman4 ,9 bo? cases ! ga9s are ! product ( extortion4 ,! conclusion t m5 h no "r to m ?an ! competitive rate ( int]e/1 z int]e/1 on _! capital1 & t a monopoly has consequ5tly no "r to ^? surplus ga9s t are n produc$ by sup]ior effici5cy1 is confirm$ by public op9ion & by ! decisions ( ! c\rts4 ,! monopoli/ic practice ( tak+ m ?an ! usual rate ( returns on capital m]ely because !re exi/s ! p[] to take x1 is univ]sally condemn$ z inequitable4 ,9 fix+ ! *>ges ( public s]vice corporations1 ! c\rts ) practical unanimity all[ only ! rate ( return t is obta9able 9 competitive conditions ( inve/m5t4 ,! /atem5t t ! monopoly may reta9 ^? surplus ga9s :i* are d]iv$ f sup]ior effici5cy assumes1 ( c\rse1 t fair wages h be5 paid to employs1 & fair prices to ! sell]s ( mat]ials1 & t fair me?ods h be5 us$ t[>d competitors4 ,9 s f> z any ( ^! conditions is n met1 ! monopoli/ic conc]n has no "r to surplus ga9s ( any sort4 ,all ?ree ( ! claims j m5tion$ are morally /rong] ?an ! claim to sup]ior rew>ds because ( sup]ior effici5cy4 ,! ,"q ( ,monopoli/ic ,effici5cy ,s mu* = ! moral pr9ciple4 ,:at proportion ( ! surplus ga9s ( monopoly are due to extortionate prices r ?an to economies 9 production1 _c be kn[n ev5 approximately4 ,accord+ to ,ju/ice ,br&eis1 :o is "o ( ! mo/ compet5t au?orities 9 ?is field1 only a v small "p ( ^! ga9s are d]iv$ f sup]ior effici5cy4#afh ,pr(essor ,e4 ,s4 ,meade writes3 ,dur+ a decade #aijb-aiab ( unp>allel$ indu/rial developm5t1 ! tru/s1 />t+ ) e advantage ( l>ge capital1 well-equipp$ plants1 f9ancial connections1 & skill$ sup]9t5d5ce1 h n succe$$4#afi ,on ! o!r h&1 ,presid5t ,van ,hise ?9ks t1 ! weight ( argum5t is /rongly 9 fav\r ( ! increas$ effici5cy ( l>ge comb9ations ( indu/ry on ! av]age4#agj ,! diff]5ce ( op9ion exi/+ among /ud5ts ( ?is subject is due to lack ( adequate data1 p>ticul>ly to ! abs5ce ( su* uni=m & compreh5sive sy/ems ( acc\nt+ z w\ld be requir$ to provide a basis = reliable g5]al conclusions4 ,oppos+ p>ticul> /atem5ts may be equally true1 because bas$ ^u diff]5t in/ances2 b g5]al /atem5ts are little bett] ?an guesses4 ,let u approa* ! "q f ano!r side1 t ( prices4 ,:5ev] ! *>ges impos$ by monopoli/ic conc]ns ^u _! products are high] ?an ^? t w\ld h prevail$ "u competition1 ! surplus ga9s are obvi\sly to t ext5t n due to sup]ior effici5cy4 ,!y h _! s\rce 9 ! arbitr>ily made prices4 ,! ,f9al ,report ( ! ,unit$ ,/ates ,indu/rial ,commission1 :i* 0 made at ! beg9n+ ( ! ye> #aijb1 decl>$ t1 9 mo/ cases ! comb9ation has ex]t$ an appreciable p[] ov] prices1 & 9 practically all cases x has increas$ ! m>g9 betwe5 raw mat]ials & f9i%$ products4#aga ,s9ce ! co/ ( production _h decreas$ dur+ ! prec$+ decade1 ?is increase 9 ! m>g91 & ! ensu+ increas$ pr(its1 necess>ily involv$ an increase 9 prices to ! consum]4 ,tak+ ! p]iod ( #ahig-aiaj1 & comp>+ ! movem5t ( prices betwe5 eighte5 important tru/-controll$ products1 & ! same numb] ( important commodities n produc$ by monopoli/ic conc]ns1 ,pr(essor ,meade conclud$ t ! =m] 7 sold at a mu* l[] relative level ?an ! latt]4#agb ,8 computations 7 bas$ ^u figures compil$ by ! ,bureau ( ,lab\r4 ,accord+ to ! ,commission] ( ,corporations1 ! ,/&>d ,oil ,company has tak5 advantage ( its monopoly p[] to extort prices mu* high] ?an w\ld h exi/$ "u free competition4#agc ,! same au?ority %[s t ! ,am]ican ,tobacco ,company us$ its p[] to obta9 consid]ably m ?an competitive prices on "s ( its products4#agd ,excessive prices1 z measur$ by ! /&>ds ( competition1 7 also e/abli%$ by ! ,unit$ ,/ates ,/eel ,corporation1 ! ,am]ican ,sug> ,ref9+ ,company1 & ! comb9ations 9 meat pack+ & 9 lumb]4#age ,a safe /atem5t w\ld probably be t ! great] "p ( ! surplus ga9s ( ! mo/ conspicu\s ,am]ican monopolies h be5 due to excessive prices r ?an to economies ( production4 ,let u turn f ! subject ( unju/ monopoly ga9s to t ( unfair me?ods us$ by ! great comb9ations t[>d _! competitors4 ,^! me?ods are ma9ly ?ree3 discrim9ative und]sell+1 exclusive-sell+ contracts1 & advantages 9 transportation4 ,discrim9ative ,und]sell+ ,! fir/ ( ^! practices is exemplifi$ :5 a monopoly sells its goods at unpr(itably l[ rates 9 competitive t]ritory1 :ile ma9ta9+ high] prices else:]e2 & :5 x (f]s at v l[ prices ^? k9ds ( goods :i* are h&l$ by competitors1 :ile hold+ at excessively high prices ! k9ds ( commodities ov] :i* x has exclusive control4 ,bo? =ms ( ! practice seem to h be5 ext5sively us$ by mo/ ( ! monopoli/ic conc]ns ( ,am]ica4#agf ,! ,/&>d ,oil ,company has be5 p]haps ! mo/ conspicu\s (f5d] 9 ?is field4#agg ,?is practice is unju/ because x violates ! fundam5tal moral pr9ciple t a man has a "r to pursue a lawful good )\t h9drance ?r\gh illicit means4 ,among ! illicit means enum]at$ by ! moral !ologians are =ce1 fraud1 deception1 ly+1 sl&]1 intimidation1 & extortion4#agh ,! illicit means employ$ 9 discrim9ative und]sell+ are *iefly extortion & deception4 ,if ! v l[ prices at :i* ! monopoly sells 9 ! field :i* conta9s competitors 7 ma9ta9$ outside ( t field also1 & if !y 7 cont9u$ n m]ely until ! indep5d5t conc]ns 7 driv5 out ( bus9ess1 b indef9itely aft]w>d1 no inju/ice w\ld be done ! latt]4 ,= no man has a natural "r to any p>ticul> bus9ess4 ,if a p[]ful conc]n c elim9ate competitors ?r\gh l[ prices made possible by sup]ior effici5cy1 ! competitors are n unju/ly treat$4 ,!y h no m j cause ( compla9t ?an ! ineffici5t groc] ^: cu/om is attract$ f him by o!r & m effici5t m]*ants4 ,! (f5ce is at ! wor/ contr>y to *>ity4 ,b :5 ! monopoly ma9ta9s ! l[ & competition-elim9at+ prices only locally & tempor>ily1 :5 x is enabl$ to e/abli% & cont9ue ^! prices only because x sells its goods at extortionate rates else:]e1 ! latt] prices are evid5tly ! in/rum5t or means by :i* ! competitors are injur$ & elim9at$4 ,9 t case ! monopoly violates ! "r ( ! competitors to pursue a lawful good immune f unfair int]f]5ce4 ,! lawful good is a livelihood f ?is k9d ( bus9ess2 & ! illicit int]f]5ce is ! unju/ prices ma9ta9$ outside ! competitive field4 ,9 ! prec$+ p>agraph we h assum$ t ! extortionate prices are op]ative at ! same "t z ! excessively l[ prices1 b 9 a diff]5t place4 ,suppose t ! =m] are impos$ only aft] ! indep5d5t conc]ns are elim9at$4 ,! inju/ice to ! competitors rema9s ! same z 9 ! prec$+ case4 ,al?\gh ! extortionate prices are lat] 9 "t1 !y are ! in/rum5tal cause ( ! de/ructive l[ prices ?r\gh :i* ! competitors 7 driv5 out ( bus9ess4 ,if ! own]s ( ! monopoly 7 n c]ta9 ( _! ability to e/abli% ! subsequ5t extortionate prices1 !y w\ld n h put into effect ! unpr(itably l[ prices4 ,h5ce !re is a true causal connection betwe5 ! =m] & ! latt]4 ,al?\gh ! connection is ma9ly psy*ical1 ?r\gh ! consci\sness ( ! monopoly own]s1 x is none ! less real & effective4 ,its practical effectiv5ess is se5 9 ! fact t ! subsequ5t possibility ( impos+ extortionate prices w induce m5 to l5d ! monopoly money to c>ry on ! process ( ext]m9at+ competition4 ,! process is ma9ta9$ by means ( ! extortionate prices q z effectively z ?\gh ! two ?+s 7 simultane\s4 ,9 s f> z ! patrons ( ! indep5d5t conc]ns are deceiv$ into expect+ t ! v l[ prices w be p]man5t1 & 9 s f> z ?is impression causes !m to )draw _! patronage f ! indep5d5ts1 ! latt] are injur$ ?r\gh ano!r illicit means1 namely1 deception4 ,! competitors h a "r n to be depriv$ ( _! cu/om]s ?r\gh impo/ure4 ,:at is ! measure ( extortionate prices 9 ?is connection8 ,h[ c we "k t ! high1 competition-elim9at+ prices are really extortionate8 ,!re are only two possible te/s ( j price4 ,! fir/ is ! prop] co/ ( production1--fair wages to lab\r1 fair prices = mat]ials1 & fair int]e/ on capital4 ,if ! monopoly does n raise prices above ?is level1 x obvi\sly does n impose extortionate prices1 nor inflict inju/ice ^u ! elim9at$ competitor4 ,moreov]1 if ! monopoly has introduc$ economies ( production x may1 z we h se51 ju/ly *>ge prices some:at above ! co/-(-production level4 ,b x may n raise !m above ! level t w\ld h prevail$ "u competition4 ,?is is ! second te/ ( j price4 ,no possible ju/ification c be f\nd1 except "o to be m5tion$ pres5tly1 = *>g+ ! consum]s high] prices ?an !y c\ld h obta9$ "u competitive conditions4 ,at su* prices ! monopoly w be able to secure ! prevail+ rate ( int]e/ on its capital1 & all ! surplus ga9s t proce$ f sup]ior effici5cy4 ,a high] scale ( prices w be1 !re=e1 extortionate1 & ! competitors :o are elim9at$ ?r\gh its in/rum5tality w be ! victims ( inju/ice4#agi ,! exception allud$ to above occurs :5 ! monopoly uses ! excess :i* x obta9s ov] ! competitive price to pay fair wages to ^? lab\r]s :o 7 insuffici5tly comp5sat$ 9 competitive conditions4 ,9 su* a case ! elim9at$ competitors w\ld h no j claim aga9/ ! monopoly2 = _! elim9ation took place 9 ! j int]e/ ( ! produc]s4 ,! case1 h[ev]1 is purely academic1 s9ce ! discrim9ative und]sell+ practis$ by our monopoli/ic conc]ns has n be5 impell$ by any su* motive1 nor has x a*iev$ any su* result4 ,exclusive-,sales ,contracts ,! second unfair me?od employ$ by monopolies t[>d competitors is t ( exclusive-sell+ contracts1 sometimes call$ ! factor's agreem5t4 ,x requires ! deal]1 m]*ant1 or jobb] to refra9 f sell+ ! goods produc$ by indep5d5t conc]ns1 on p5alty ( be+ refus$ ! goods produc$ by ! monopoly4 ,! m]*ant is compell$ to *oose betwe5 ! less important l9e ( w>es to be _h f ! =m]1 & ! m important l9e obta9able f ! latt]4 ,he w n be p]mitt$ to h&le bo?4 ,"h is somebody :o has be5 buy+ goods1 let u say1 by way ( illu/ration1 f ! ,am]ican ,tobacco ,company1 & a rival produc] comes 9 :om ! m]*ant likes to patronise4 ,he buys goods = a "t f ! rival1 & an ag5t ( ! tru/ s5ds him a note to ! effect t he mu/ n buy any m f t rival corporation2 t1 if he does s1 ! tru/ w give all ( its own goods1 "s ( :i* ! m]*ant is oblig$ to h1 to ano!r ag5t4 ,t w probably br+ him to t]ms4#ahj ,by ?is me?od ! indep5d5t manufactur] c be depriv$ ( suffici5t patronage to injure him s]i\sly1 & p]haps to drive him out ( bus9ess4 ,?is process is "o ( intimidation br\ght to be> ^u ! m]*ant4 ,?r\gh fe> ( loss he is compell$ to discont9ue sell+ ! goods ( ! compet+ manufactur]4 ,x is a k9d ( second>y boycott4 ,z su*1 x is an unreasonable int]f]5ce ) ! lib]ty ( ! m]*ant unless its object is to compel him to d some?+ t he may be reasonably requir$ to d4 ,9 ! case t we are consid]+1 ! object ( ! pressure is n ( t "*2 = to drive ! rival manufactur] out ( bus9ess1 or to assi/ 9 8 expulsion1 is n a reasonable ?+4 ,! exclusive-sell+ contract :i* is =c$ ^u ! m]*ant is q z unreasonable z ?\gh its purpose 7 to prev5t him f1 say1 patronis+ manufactur]s hav+ r$ hair4 ,be+ ?us unreasonable1 ?us injuri\s to individual lib]ty1 x violates n only ! law ( *>ity b t ( ju/ice4 ,x transgresses ! m]*ant's "r to ent] reasonable contracts ) ! rival manufactur]1 & if x results 9 a pecuni>y loss to ! =m] x is an invasion ( 8 rights ( prop]ty4 ,x likewise violates ! rights ( ! competitive manufactur]1 s9ce x is among ! unfair means :i* may n be us$ to prev5t a man f pursu+ a legitimate good4 ,x is an unfair means because x involves unreasonable intimidation1 un*>ity1 & inju/ice t[>d ! m]*ant4 ,:5 ! indep5d5t manufactur] is injur$ ?r\gh su* an in/rum5tality1 he suff]s inju/ice q z c]ta9ly at ! h&s ( ! monopoly z ?\gh 8 prop]ty 7 de/roy$ ?r\gh ! /rong-arm me?ods ( hir$ ?ugs4 ,discrim9ative ,transportation ,arrangem5ts ,conc]n+ ! ?ird unfair me?od1 discrim9ative advantages 9 transportation1 ! ,unit$ ,/ates ,indu/rial ,commission decl>$3 ,x is inconte/able t _m ( ! great indu/rial comb9ations _h _! orig9 9 railroad discrim9ation4 ,?is has be5 emphasis$ _m times 9 ! hi/ory ( ! ,/&>d ,oil ,company1 & ( ! great monopolies deal+ 9 live /ock1 dress$ beef1 & o!r products4#aha ,! ,am]ican ,sug> ,ref9+ ,company has be5 sev]al times convict$ ( receiv+ illegal fav\rs f railroads1 & has paid 9 f9es ?\s&s ^u ?\s&s ( doll>s4 ,sometimes ! monopoly has op5ly be5 accord$ l[] freight rates ?an its competitors1 & sometimes x has paid ! regul> *>ges1 & !n receiv$ back a "p ( !m z a refund or rebate4 ,at "o "t ! ,/&>d ,oil ,company obta9$ rebates n only on its own %ipm5ts1 b on ^? ( its rivals6#ahb ,special advantages ( ?is sort necess>ily involve inju/ice to ! competitors ( ! monopoly4 ,if ! l[ rates giv5 to ! monopoli/ic conc]n are a suffici5tly high price = ! s]vice ( c>ry+ freight1 ! high] *>ges impos$ ^u ! compet+ conc]ns are extortionate2 if ! =m] rates are unpr(itably l[1 ! diff]5ce betwe5 suffici5t & insuffici5t freight *>ges is made up by ! indep5d5t conc]ns4 ,9 ! =m] case ! indep5d5ts pay ! railroad too mu*2 9 ! latt] case !y be> burd5s t %\ld prop]ly re/ ^u ! monopoly4 ,! monopoli/ic conc]n is p>tly responsible = ?is inju/ice inasmu* z x urges & (t5 intimidates ! railroad to e/abli% ! discrim9at+ rates4 ,all ?ree ( ! practices t we h be5 consid]+ are univ]sally condemn$ by public s5tim5t4 ,!y are all likewise "u ! ban ( /atutory law4 ,! fir/ two h rec5tly receiv$ detail$ & explicit prohibition 9 ! ,clayton ,anti-,tru/ ,act4 ,natural ,monopolies ,up to ?is po9t we h be5 deal+ ) private & artificial monopolies4 ,we turn n[ to consid] briefly ^? natural & quasi-public monopolies :i* are ei!r tacitly or explicitly recognis$ z monopolies by public au?ority1 & ^: *>ges are to a great] or less ext5t regulat$ by "s dep>tm5t ( ! ,/ate4 ,su* are1 = example2 /eam railroads & municipal utilities4 ,:5 ! *>ges made = ! s]vices ( ^! corporations are adequately regulat$ by public au?ority1 ! own]s ( su* conc]ns w h a "r to all ! surplus ga9s t !y c obta94 ,9 t case a contract is made betwe5 ! corporation & ! public :i* is presumably fair to bo? p>ties1 & :i* repres5ts ! social e/imate ( :at is j4 ,if ! public au?orities h n suffici5tly safegu>d$ ! int]e/s ( ! p1 if !y h p]mitt$ ! *>ges to be s high z to provide excessive returns = ! corporation1 ! latt] is "u no moral obligation to refra9 f reap+ ! full b5efit ( ! ,/ate's neglig5ce or incompet5ce4 ,if1 h[ev]1 ! unduly high rates h be5 br\ght ab\t ?r\gh brib]y1 extortion1 or deception practis$ by ! corporation1 ! inequitable contract ?us arrang$ w n ju/ify ! surplus ga9s ?us produc$4 ,= example2 if ! corporation delib]ately & effectively conceals ! real value ( its prop]ty ?r\gh /ockwat]+1 & ?us misleads ! public au?ority into p]mitt+ *>ges :i* return twelve in/ead ( six p] c5t4 on ! actual inve/m5t1 ! corporation _c =?) ju/ly claim ! surplus ga9 repres5t$ by ! extra six p] c5t4 ,:5 ! public au?orities ei!r fail entirely to regulate *>ges1 or d s only spasmodically & p>tially1 ! quasi-public monopoly w n necess>ily h a "r to all ! obta9able surplus ga9s4 ,= a long "t ! express companies ( ! ,unit$ ,/ates 7 p]mitt$ to exact :at *>ges !y pleas$1 & ev5 yet ! rates on "s ( our railroads are n adequately regulat$ by ! ,/ate4 ,9 su* cases ! *>ges impos$ on ! public are n an adequate expression ( ! social e/imate ( ju/ice1 nor an adequate basis ( legitimate surplus ga9s4 ,9 ! abs5ce ( suffici5t public regulation1 a quasi-public monopoly is morally b\nd to fix its *>ges at su* a level z w enable x to obta9 only ! prevail+ rate ( int]e/ on ! inve/m5t1 & su* surplus ga9s z x c produce ?r\gh exceptional effici5cy4 ,9 all su* cases ! public s]vice corporation is 9 ! same moral position z ! artificial monopoly3 x has no possible basis except sup]ior effici5cy = claim+ or gett+ any returns above ! competitive rate ( int]e/ on its capital4 ,its only possible reason = obta9+ m is ! fact t x has ! p[] to take m4 ,?is fact has obvi\sly no moral validity4 ,me?ods ( ,prev5t+ ,monopoli/ic ,inju/ice ,h[ %all ! inju/ices ( monopoly be prev5t$ 9 ! future8 ,s f> z quasi-public monopolies are conc]n$1 all /ud5ts ( ! subject are n[ agre$ t ^! %\ld be p]mitt$ to exi/ "u adequate gov]nm5tal regulation z to prices & s]vice4 ,! reason is t 9 ?is field successful & useful competition is impossible4 ,public utility corporations are natural monopolies1 & mu/ be dealt ) by ! me?od ( regulation until su* "t z !y are br\ght "u ! own]%ip & op]ation ( ! ,/ate4 ,) reg>d to ! great indu/rial comb9ations :i* h become or ?reat5 to become artificial monopolies1 !re exi/s sub/antial agreem5t among compet5t au?orities on "o po9t1 & disagreem5t on ano!r po9t4 ,all admit t ! unfair competitive me?ods describ$ 9 an e>li] "p ( ?is *apt] %\ld be /r+5tly prohibit$4 ,no possible reason c be f\nd = legal tol]ation ( ^! or any o!r discrim9ative1 un*>itable1 or unju/ practices on ! "p ( /rong] t[>d weak] competitors4 ,! disagreem5t among /ud5ts ( monopoly relates to ! fundam5tal "q ( p]mitt+ or n p]mitt+ ^! comb9ations to exi/4 ,accord+ to ! fir/ !ory1 ( :i* ,mr4 ,ju/ice ,br&eis is ! mo/ di/+ui%$ expon5t1 no new indu/rial monopolies %\ld be p]mitt$1 & ^? t we h %\ld be dissolv$4 ,! basis ( ?is !ory is ! assumption t all ! economies & all ! productive effici5cy f\nd 9 monopoli/ic conc]ns c be develop$ & ma9ta9$ 9 small] bus9ess organisations1 & t ! me?od ( prev5tion & dissolution is ! simple/ means ( protect+ ! public aga9/ ! dang] ( extortionate monopoly prices4 ,att5tion has be5 call$ 9 a prec$+ p>agraph to ! impossibility ( det]m9+ :e!r ! great monopoli/ic comb9ations h on ! av]age %[n !mselves to be m effici5t ?an conc]ns subject to active & adequate competition4 ,x is significant1 h[ev]1 t 9 ! discussion ( ?is subject :i* took place at ! tw5ty-six? annual meet+ ( ! ,am]ican ,economic ,association1 at ,m9neapolis 9 #aiac1 ! economi/s :o p>ticipat$ 7 practically unanim\s 9 hold+ t ! sup]ior effici5cy ( ! tru/s _h n be5 demon/rat$1 b 0 a matt] ( s]i\s d\bt1 & t ! burd5 ( pro( ( _! alleg$ sup]iority _h be5 def9itely %ift$ ^u ^? :o ma9ta9$ ! affirmative4#ahc ,probably ! great majority ( ! :ole body ( ,am]ican economi/s w\ld %>e ^! conclusions4 ,on ! o!r h&1 ! oppon5ts ( prev5tion & dissolution1 ( :om ,mr4 ,george ,w4 ,p]k9s is probably ! mo/ conspicu\s1 po9t to ! obvi\s economies ( l>ge-scale ov] small-scale production1 & cont5d t ^! are suffici5t reason = p]mitt+ & ev5 enc\rag+ ! great comb9ations4 ,! p[] to oppress competitors by unju/ me?ods ( bus9ess1 & ! public by extortionate prices1 %\ld be kept "u rigid control by sup]vision1 & gov]nm5t regulation ( maximum prices4 ,b ! argum5ts advanc$ 9 fav\r ( ?is position are nev] conclusive4 ,mo/ ( its advocates fail to realise1 or at lea/ to take adequately into acc\nt1 ! diff]5ce betwe5 l>ge-scale production & production by a monopoly4 ,:ile ! l>ge plant & ! l>ge bus9ess organisation h 9 _m l9es ( manufacture & trade a consid]able advantage ov] ! small plant & ! small organisation1 !re is n a sc9tilla ( evid5ce to %[ t ! effici5cy ( magnitude increases indef9itely ) magnitude4 ,!re is no pro( t ! maximum effici5cy is rea*$ only ) ! maximum size ( ! bus9ess unit4 ,on ! contr>y1 all ! evid5ce t we h po9ts to ! conclusion t 9 e field ( indu/rial & comm]cial ent]prise1 all ! economies ( magnitude & ( comb9ation are obta9$ long be=e ! conc]n becomes a monopoly4 ,!re is n an indu/ry ( any importance 9 ! ,unit$ ,/ates 9 :i* all ! advantages ( bigness & conc5tration _c be made op]ative 9 conc]ns t control z l[ z tw5ty-five p] c5t4 ( ! total product4 ,! highe/ economy & effici5cy c be obta9$ )\t monopoly4 ,inde$1 ?is is admitt$ by ! m reasonable advocates ( ! regulation & price-fix+ policy4 ,:ile ma9ta9+ t conc5tration mu/ g f> 9 ord] to give ! maximum ( effici5cy1 ,presid5t ,van ,hise does n hold t x %\ld g to ! ext5t t ! elem5t ( monopoly ent]s2 & he w\ld h ! law decl>e re/ra9t ( trade unreasonable t gets to monopoly1 & fix ! def9ite p] c5t4 ( bus9ess control :i* con/itutes a monopoly4#ahd ,we are ju/ifi$1 !re=e1 9 conclud+ t ! !ory ( prev5tion & dissolution 7provid$ t ! compet+ units are n made s small z to de/roy ! c]ta9 economies ( magnitude7 r ?an ! !ory ( p]mission & regulation1 indicates ! s\nd economic & social policy ( deal+ ) monopolies4 ,legalis$ ,price ,agreem5ts ,presid5t ,van ,hise advocates ! regulation policy 9 a modifi$ =m4 ,9 sub/ance 8 view is t1 :ile no corporation %\ld be p]mitt$ to control ! great] "p ( any product1 monopoli/ic price-agreem5ts %\ld be sanction$ & regulat$ by law4 ,no am\nt ( re/rictive legislation1 he ma9ta9s1 c secure univ]sal competition 9 ! matt] ( prices4 ,exp]i5ce %[s t ! de/ructive results ( cut-?roat competition compel ! m p[]ful competitors to make price agreem5ts 9 "s l9es ( bus9ess4#ahe ,= example2 all ! retail groc]s 9 a city are (t5 f\nd sell+ c]ta9 /aples at a uni=m price = long p]iods ( "t4 ,agreem5ts ( ?is sort %\ld1 9 ! op9ion ( ,presid5t ,van ,hise1 be =mally p]mitt$ by law1 ) ! proviso t a gov]nm5t commission %\ld fix ! maximum & possibly ! m9imum limits4 ,& he cont5ds t ! task ( fix+ fair maximum & m9imum prices w\ld be mu* less difficult ?an is commonly suppos$1 & t x w\ld be mu* simpl] & easi] ?an ! task ( regulat+ railway freight rates4 ,:atev] may be ! m]its ( ?is plan1 x is n likely to be embodi$ 9 legislation 9 ! ne> future4 ,s f> z we c see n[1 ! ,am]ican p are committ$ to ! policy ( endeav\r+ to re/ore g5u9e competition by prohibit+ ^? pr$atory practices to :i* ! great monopolies ma9ly owe _! exi/5ce4 ,! attempt w be made to give competition a fair opportunity to prev5t bo? monopoli/ic control ( products & monopoli/ic fix+ ( prices4 ,competition has n enjoy$ any su* opportunity dur+ ! la/ qu>t] ( a c5tury4 ,if ?is attempt %\ld fail aft] a ?or\gh trial1 ! "t w be at h& = ! regulation ( prices by ! gov]nm5t4 ,until t "t has arriv$ 7let u hope t x nev] w arrive7 ! ,/ate w n1 & %\ld n1 emb>k ^u su* a l>ge & difficult exp]im5t4 ,,footnotes3 #afe ,report ( ! ,commission] ( ,corporations on ! ,petroleum ,indu/ry1 ,,ii1 #dj1 #da4 #aff ,report ( ! ,commission] ( ,corporations on ! ,tobacco ,indu/ry1 ,,ii1 #bf-cd4 #afg ,report ( ! ,commission] ( ,corporations on ! ,/eel ,indu/ry1 ,i1 #ea4 ,accord+ to ,f4 ,j4 ,mc,rae1 ! exp]t acc\ntant = ! ,/anley congressional inve/igat+ committee1 ?is conc]n secur$ #dj p] c5t4 on ! co/ ( its prop]ty4 #afh ,he>+s ,be=e ! ,int]/ate ,comm]ce ,committee1 ,u4 ,s4 ,s5ate1 ,"p ,,xvi1 pages #aadf-aaff4 #afi ,! ,j\rnal ( ,political ,economy1 ,april1 #aiab1 p4 #cff4 #agj ,conc5tration & ,control1 p4 #bj4 #aga ,page #fba4 #agb ,! ,j\rnal ( ,political ,economy1 ,april1 #aiab1 p4 #cfc4 #agc ,report on ! ,petroleum ,indu/ry1 ,,ii1 #gd4 #agd ,report on ! ,tobacco ,indu/ry1 ,,ii1 #bg4 #age ,cf4 ,van ,hise1 op4 cit41 pp4 #adj1 #adi1 #aec1 #aei4 #agf ,f9al ,report ( ! ,indu/rial ,commission1 pp4 #ffj-ffb4 #agg ,report on ! ,petroleum ,indu/ry1 ,i1 #cbh-ccb4 #agh ,cf4 ,lehmkuhl1 ,!ologia ,moralis1 ,i1 ,no4 #igd4 #agi ,x may be ( int]e/ to recall ! m$ival attitude t[>d monopoli/ic exactions1 z summ>ily /at$ by ,/4 ,anton9us1 :o 0 ar*bi%op ( ,flor5ce 9 ! fir/ half ( ! fifte5? c5tury3 ,:5 monopoli/ m]*ants agree toge!r to pres]ve a fix$ price1 s z to secure an unlimit$ pr(it1 !y are guilty ( s9ful trad+4 ,he ma9ta9$ t !y %\ld n sell above ! m>ket price1 & %\ld be prev5t$ f s do+ by law4 ,see 8 ,summa ,!ologica1 ,,iii1 #h1 #c1 iv1 & ,,ii1 #a1 #af1 ii4 ,pres5t day moral !ologians lay d[n ! same doctr9e1 & 9 addition condemn ! *>act]i/ic monopoli/ic me?ods z unju/4 ,see ,tanqu]ey1 ,de ,ju/itia1 nos4 #ggf1 #ggg2 ,lehmkuhl1 ,!ologia ,moralis1 vol4 ,i1 no4 #aaai4 #ahj ,cl>k1 ,! ,problem ( ,monopoly1 p4 #ce4 #aha ,f9al ,report1 p4 #cfa4 #ahb ,report on ! ,petroleum ,indu/ry1 pp4 #bb1 #bc4 #ahc ,pap]s & ,proce$+s1 pp4 #aeh-aid4 #ahd ,op4 cit41 pp4 #bj1 #bea4 #ahe ,op4 cit41 pp4 #bed-bfe4 ,,*apt] ,,xix ,,! ,,moral ,,aspect ,,( ,,/ock ,,wat]+ ,9 ! la/ *apt] we saw t a monopoly has no "r to ga9s 9 excess ( ! competitive rate ( int]e/ on its capital1 except 9 s f> z ^! h be5 d]iv$ f sup]ior effici5cy4 ,n[ sup]ior effici5cy is cle>ly pres5t :5ev] ! monopoli/ic conc]n obta9s surplus ga9s by sell+ its product at competitive prices1 or at ! prices t w\ld h prevail$ "u competition4 ,evid5tly ! surplus 9 su* a case is due to ! great] productivity ( ! monopoly z comp>$ ) ! av]age productivity ( competitive conc]ns4 ,:51 h[ev]1 ! monopoly *>ges prices above ! competitive level1 its surplus ga9s _c all be attribut$ to unusual effici5cy4 ,a "p if n all ( !m are ! result simply ( ! p[] to take2 consequ5tly !y are immoral4 ,"o ( ! means by :i* "s monopolies h obta9$ unju/ surplus ga9s is ov]capitalisation1 or /ockwat]+4 ,?is practice is r>ely f\nd 9 bus9esses t are subject to normal competition4 ,s f> z ! consum] is conc]n$1 a corporation t _c fix prices arbitr>ily has no?+ to ga9 by inflat+ its capital4 ,unless x develops exceptional effici5cy1 x _c hope to obta9 m ?an ! competitive rate ( int]e/ on its capital2 if x does become exceptionally effici5t1 x c take ! result+ surplus ga9s )\t ar\s+ public res5tm5t or criticism4 ,9 ei!r case1 x w h no suffici5t reason to deceive ! public by exagg]at+ ! am\nt ( its capital4 ,:5 a competitive conc]n does wat] its /ock1 ! object w be to defraud inve/ors4 ,if ! s*eme is successful ! unju/ surplus ga9s are tak5 by "o set ( /ockhold]s f ano!r set ( /ockhold]s4 ,:5ev] any?+ ( ?is sort occurs1 ! deceptive devices employ$ are s crude & obvi\s t !y pres5t no special problem = ! morali/4 ,ev5 z practis$ by monopolies1 /ockwat]+ raises no pr9ciple t has n be5 already discuss$4 ,x does1 h[ev]1 create "s special difficulties 9 ! matt] ( apply+ ! moral pr9ciples involv$4 ,consequ5tly1 x may ) advantage be consid]$ 9 a sep>ate *apt]4 ,! g5]al def9ition ( ov]capitalisation is capitalisation 9 excess ( ! prop] valuation ( a bus9ess4 ,:at is ! measure ( prop] valuation8 ,accord+ to _m corporation directors1 x is e>n+ p[]4 ,if a conc]n is able to get ! prevail+ rate ( int]e/ on a capitalisation ( t5 million doll>s1 t is ! prop] capitalisation = t conc]n1 ev5 ?\gh ! money actually inve/$ might n h exce$$ five million doll>s4 ,9 ! op9ion ( mo/ o!r p]sons1 h[ev]1 a company is ov]capitalis$ :5 ! face value ( its securities is great] ?an ! money put into ! bus9ess plus ! subsequ5t enhancem5t 9 ! value ( its l&4 ,! money put into ! bus9ess1 means t :i* has be5 exp5d$ = lab\r1 mat]ials1 l&1 equipm5t1 & all o!r items & co/s ( organis+ ! conc]n1 toge!r ) ! sum t is necess>y to cov] ! int]e/ n obta9$ by ! inve/ors dur+ ! prep>atory p]iod be=e ! bus9ess became productively op]ative4 ,! increase 9 ! value ( ! l& aft] its acquisition by ! company also des]ves a place 9 ! legitimate valuation1 & may reasonably be repres5t$ by an appropriate am\nt ( securities4 ,monopoli/ic corporations h z good a "r1 g5]ally speak+1 to pr(it by ! une>n$ increm5t ( l& z competitive conc]ns4 ,9 brief1 ! prop] measure ( capitalisation is co/3 ei!r ! orig9al co/1 z j expla9$ & supplem5t$2 or ! pres5t co/ ( reproduc+ ! bus9ess4 ,injuri\s ,effects ( ,/ockwat]+ ,/ockwat]+ c become an in/rum5t ( unju/ ga9s 9 two ways3 fir/1 ?r\gh fraud inflict$ ^u "s ( ! inve/ors2 second1 ?r\gh ! imposition ( exorbitant prices ^u ! consum]s4 ,! =m] _c occur s long z ! process ( inflation does n g beyond e>n+ p[]2 = 9 t case all /ockhold]s1 b>r+ di%one/ manipulation ( ! company's receipts1 w obta9 ! normal rate ( int]e/ on _! inve/m5t4 ,if1 h[ev]1 /ock is sold 9 excess ( ! e>n+ p[] ( ! conc]n1 ^? /ockhold]s :o fail to obta9 ! ord9>y rate ( int]e/ on _! money are unju/ly treat$ 9 s f> z !y h be5 deceiv$4 ,& ^? (fic]s or o!r memb]s ( ! corporation :o h pr(it$ by ! deception ( & injury to ^! /ockhold]s1 are ! recipi5ts ( unju/ ga9s4 ,daniel ,drew inflat$ ! capitalisation ( ! ,erie ,railroad f sev5te5 millions to sev5ty-eight millions )9 f\r ye>s = ! purpose ( manipulat+ ! /ock m>ket2 ow+ to excessive issues ( /ock1 ! ,am]ican ,%ipbuild+ ,company 0 ?r[n into bankruptcy to ! great injury ( all b "o ( its /ockhold]s2#ahf because !y issu$ securities to buy subsidi>y railway l9es at exorbitant prices1 & to provide extravagant commissions & disc\nts = bank]s1 ! directors ( ! ',frisco ,sy/em =c$ x into a receiv]%ip1 aft] hav+ inflict$ a net loss ( f\r million doll>s p] ye> ^u ! /ockhold]s4#ahg ,_m o!r notable p]=mances might be cit$ :]e /ockwat]+1 bo? 9 railroads & 9 indu/rial conc]ns1 has defraud$ inve/ors ( millions ( doll>s1 & enabl$ a few p[]ful directors to reap correspond+ enorm\s pr(its4 ,at fir/ sight x w\ld seem t /ockwat]+ is ( little or no importance to ! consum]4 ,s9ce a monopoli/ic conc]n endeav\rs to fix its prices at ! po9t t w yield ! maximum net pr(it 9 any case1 ! am\nt ( /ock 9 exi/5ce w\ld seem to be irrelevant to ! problem4 ,nev]!less1 ! pres5ce ( a l>ge quantity ( fictiti\s capital ^: own]s are call+ = divid5ds1 sometimes con/itutes a special =ce impell+ ! imposition ( high] prices & *>ges4 ,x w happ5 at times t ov]capitalisation does at lea/ cause a cl++ to high prices4 ,! manag]s ( an ov]capitalis$ monopoly may h to face ! fact t great blocks ( securities are out/&+1 v likely issu$ by _! pr$ecessors1 & n[ held by all sorts ( inve/ors4 ,!y are !n loa? to let g any slice ( its pr(its4 ,we h se5 t (t5 ! monopoly pr9ciple ( maximum net pr(it is n appli$ 9 its full sweep1 especially 9 indu/ries :i* are pot5tially subject to public control4 ,:]e abnormal returns on ! orig9al inve/m5t h be5 made1 concessions to public op9ion 9 ! way ( l[ rates & bett] facilities are m likely to come :5 capitalisation has n be5 inflat$4#ahh ,! ,unit$ ,/ates ,indu/rial ,commission f\nd t z reg>ds railroads3 ,9 ! long run excessive capitalisation t5ds to keep rates high2 cons]vative capitalisation t5ds to make rates l[4#ahi ,?is indirect influ5ce ( /ockwat]+ t[>d excessive rates & prices becomes effective 9 two ways4 ,! exi/5ce ( fictiti\s capital conceals f ! public ! high rate ( return t is obta9$ on ! true valuation1 ?us prev5t+ effective action = a r$uction 9 prices & *>ges2 & x sometimes causes ! rate-mak+ au?orities to all[ rates to be suffici5tly high to yield some?+ to ! inve/ors 9 ! inflat$ capital4 ,if a tru/ or a railroad has issu$ /ock hav+ a p> value ( twice ! capital inve/$1 its rate ( divid5d on ! entire capitalisation w be only "o-half ! rate ( int]e/ t x is receiv+ on ! inve/m5t4 ,if x pays1 = example1 sev5 p] c5t4 on all its /ock1 x w be gett+ f\rte5 p] c5t4 on its g5u9e capital4 ,:ile ! consum]s ( tobacco1 or ! patrons ( a railroad1 w\ld raise no outcry aga9/ sev5 p] c5t4 divid5ds1 !y w\ld probably beg9 to agitate = an en=cem5t ( ! anti-tru/ laws1 & = a r$uction 9 freight & pass5g] *>ges1 if !y realis$ t !y 7 provid+ = divid5ds ( f\rte5 p] c5t4 ,nor is ! public adequately protect$ by gov]nm5t inve/igations ( tru/s & regulation ( railway rates4 ,despite ! anti-tru/ laws1 _m ,am]ican monopolies h = _m ye>s receiv$ exorbitant pr(its ?r\gh excessive prices impos$ ^u ! consum]2 & 9 _m ( ^! in/ances ov]capitalisation & its result+ concealm5t ( real pr(its h be5 ( consid]able assi/ance to ! extortionate monopoly4 ,9 fix+ railway rates1 ! ,int]/ate ,comm]ce ,commission1 & ! v>i\s /ate railroad commissions1 h be5 s]i\sly hamp]$ by _! inability to det]m9e ! real inve/m5t ( ! roads1 & to sep>ate ! g5u9e f ! fictiti\s capitalisation4 ,n until ! ye> #aiac did ! national gov]nm5t beg9 ! task ( mak+ a valuation ( int]/ate railroad prop]ty1 & ! "w w require sev]al ye>s4 ,v few ( ! /ates h made valuations ( ! railroads )9 _! bord]s4 ,9 ! meantime x is c]ta9 t _m ( ! rates fix$ by bo? ! national & ! /ate bodies w cont9ue1 z 9 ! pa/1 to be high] ?an !y w\ld h be5 if ! true value ( ! railroads 7 kn[n & accept$ z ! basis ( freight & pass5g] *>ges4 ,! second bad effect ( /ockwat]+ on ! consum] is se5 :5 rate-fix+ bodies delib]ately p]mit ! *>ges ( public s]vice corporations to be high en\gh to include "s returns on t portion ( ! capitalisation :i* is fictiti\s4 ,x is v difficult = su* au?orities to resi/ entirely ! plea ( ! innoc5t inve/or4 ,consequ5tly1 railroad commissions & o!r rate mak+ au?orities1 & ev5 ! c\rts1 h occasionally made "s provision = divid5ds on ! wat]4 ,*airman ,knapp ( ! ,int]/ate ,comm]ce ,commission admitt$ a few ye>s ago t1 9 consid]+ ! reasonabl5ess ( a giv5 rate1 ?is body took into acc\nt ! f9ancial condition1 & !re=e ! capitalisation ( ! railroad4#aij ,9 #aiad & #aiae practically all ! great railway sy/ems ( ! ,unit$ ,/ates made p[]ful1 & 9 a measure successful1 appeals to ! ,int]/ate ,comm]ce ,commission = a rise 9 rates on ! gr\nd t !y 7 unable to pay ! normal rate ( int]e/ on _! securities1 & h5ce c\ld n obta9 on advantage\s t]ms new capital ne$$ = improvem5ts4 ,_h ! capitalisation ( ! roads be5 kept d[n to ! actual inve/m5t1 mo/ ( !m w\ld h be5 able to pay ! competitive rate ( int]e/ on all _! /ock1 & /ill h a suffici5t surplus to comm& excell5t cr$it4 ,! ,moral ,wrong ,:5 prices or *>ges are made high en\gh to provide returns on fictiti\s capital1 ! consum] is treat$ unju/ly4 ,z we h %[n m ?an once1 ! consum] _c rightfully be requir$ to pay = ! products ( a monopoly at a great] rate ?an is necess>y to provide ! competitive rate ( int]e/ on capital 9 ! av]age conditions ( effici5cy4 ,if "s conc]ns are able to sell at ?is price1 & /ill obta9 surplus ga9s1 !y h a "r !reto on acc\nt ( _! exceptional productivity4 ,b ! capital ^u :i* a monopoli/ic conc]n has a claim to ! prevail+ rate ( int]e/1 is g5u9e capital3 t is1 ! actual inve/m5t z int]pret$ above1 n an inflat$ capitalisation4 ,! consum]s may ju/ly be requir$ to pay = ! use & b5efit ( actual productive goods2 b x is n j t !y %\ld be compell$ to pay = ! suppos$ use ( a capital t has no concrete reality4 ,! /ockhold]s ( ! monopoli/ic corporation :i* imposes ^u ! consum]s exorbitant prices or *>ges ?r\gh ! in/rum5tality ( inflat$ capitalisation1 c become guilty ( ?is inju/ice 9 two ways3 by promot+ ! improp] capitalisation2 & by gett+ divid5ds on /ock = :i* !y h n giv5 a fair equival5t4 ,z a rule1 ! great] "p ( su* guilt & responsibility re/s ^u c]ta9 special & p[]ful gr\ps among ! /ockhold]s4 ,= example2 ! ,j4,p4 ,morgan syndicate :i* organis$ ! ,unit$ ,/ates ,/eel ,corporation receiv$ = t s]vice securities to ! value ( #fc1ejj1jjj4 ,!re c be no "q1 says ! ,commission] ( ,corporations1 t ?is huge comp5sation to ! syndicate 0 greatly 9 excess ( a reasonable paym5t4#aia ,! syndicate 0 able to exact ?is /up5d\s sum ma9ly because "s ( its memb]s 7 also 9 control ( "s ( ! companies t 7 br\ght into ! comb9ation4 ,9 o!r words1 z manag]s ( ! ,/eel ,corporation ^! v>i\s int]e/s virtually det]m9$ _! comp5sation z und]writ]s4#aib ,9 ! op9ion ( ! m9ority memb]s ( ! ,/anley congressional inve/igat+ committee1 su* a sum bore no relation :atev] to ! s]vice r5d]$1 ! risk run1 & ! capital advanc$4#aic ,! majority ( ! committee *>act]is$ ! transaction 9 ev5 /rong] language4 ,x is cle>1 !re=e1 t ! syndicate committ$ inju/ice t[>d ! consum]s bo? by organis+ a monopoly :i* aft]w>d impos$ unju/ prices1 & by tak+ millions ( doll>s 9 securities :i* its memb]s did n e>n1 & on :i* !y receiv$ int]e/ ?r\gh ! exorbitant prices4 ,:ile ?is transaction is exceptionally conspicu\s1 x is sub/antially typical ( ! me?ods by :i* _m p[]ful monopolies h wat]$ _! /ock to ! detrim5t ( ! public1 & ! advantage ( a small gr\p ( directors & f9anci]s4 ,! ,innoc5t ,inve/or ,is ! ,/ate oblig$ to protect1 or is ev5 ju/ifi$ 9 protect+1 ! innoc5t victims ( /ockwat]+8 ,t is to say1 %\ld rate-mak+ au?orities fix ! *>ges ( public s]vice corporations high en\gh to return "s int]e/ to ! pur*as]s ( fictiti\s securities8 ,all ! facts & presumptions ( ! case seem to dem& an answ] 9 ! negative4 ,9 ! fir/ place1 x is impossible to di/+ui% ! innoc5t hold]s f ^? :o 7 fully acqua9t$ ) ! que/ionable & speculative nature ( ! /ock at ! "t x came into _! possession4 ,9 ! second place1 ! civil law has nev] =mally recognis$ any su* claim on ! "p ( ev5 innoc5t inve/ors1 nor any su* obligation on ! "p ( itself4 ,x has nev] laid d[n ! pr9ciple t any class ( inve/ors 9 fictiti\s /ock has a legal or moral "r to obta9 ! normal rate ( int]e/ on su* /ock ?r\gh ! imposition ( suffici5tly high *>ges ^u ! consum]s4 ,nor h ! c\rts1 except 9 isolat$ in/ances1 sanction$ any su* pr9ciple4 ,on ! contr>y1 ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 9 ! case ( ,smy? vs4 ,ames1 decl>$ t a railroad may n impose ^u ! public ! burd5 ( su* increas$ rates z may be requir$ = ! purpose ( realis+ pr(its ^u su* excessive valuation or fictiti\s capitalisation4 ,9 ! ?ird place1 :5 we consid] ! matt] f ! side ( morals1 we see t ! innoc5t inve/ors are n ! only p]sons ^: rights are involv$4 ,if *>ges are plac$ high en\gh to cov] int]e/ on fictiti\s capital1 ! co/ & ! injury fall ^u ! consum]s4 ,! latt] h a "r to ! s]vices ( utility corporations1 su* z railways & gas companies1 at a fair price2 t is1 a price :i* w return to ! capital put into ! conc]n ! prevail+ rate ( int]e/1 plus :atev] ga9s are obta9$ by exceptional effici5cy4 ,to require !m to pay m ?an ?is1 is to compel !m to give some?+ = no?+2 namely1 to provide int]e/ on capital :i* does n exi/1 & f :i* !y receive no b5efit4 ,:51 !re=e1 ! ,/ate int]v5es to secure fair *>ges = ! consum]s1 x %\ld base !m ^u ! capital actually inve/$ & us$ 9 ! bus9ess ( public s]vice4 ,frequ5tly1 h[ev]1 ! ,/ate has p]mitt$ ov]capitalisation1 & *>ges suffici5t to pay normal divid5ds !reon1 = long p]iods ( ye>s4 ,has x n !reby enc\rag$ inve/ors to *]i% ! expectation t ^! high *>ges w\ld be p]mitt$ to cont9ue1 & t ! fictiti\s /ock w\ld rema9 indef9itely z valuable z :5 x came into _! possession8 ,is x n break+ fai? ) ^! inve/ors :5 x r$uces *>ges to ! basis ( ! actual inve/m5t8 ,a suffici5t answ] to ^! que/ions is f\nd 9 ! fact t ! ,/ate has nev] (ficially sanction$ ! practice ( /ockwat]+1 nor 9 any way intimat$ t x w\ld recognise ! exi/5ce ( ! fictiti\s /ock :5 x %\ld take up ! neglect$ task ( fix+ fair rates & *>ges4 ,at ! mo/1 ! civil law has m]ely tol]at$ ! practice1 & ! result+ extortion ^u ! public4 ,& !re has nev] be5 a "t :5 ! great] & san] "p ( public op9ion did n look ^u ov]capitalisation z at ! lea/ abnormal & irregul>4 ,nei!r f ! civil law nor f public s5tim5t h ! devices ( inflat+ capitalisation receiv$ t measure ( approval :i* w\ld conf] ^u inve/m5ts !re9 ! legal or ! moral /atus ( ve/$ rights4 ,to ! innoc5t inve/or 9 wat]$ /ocks ! maxim1 caveat emptor1 is z fairly applicable z to ! man :o has be5 deceiv$ into l5d+ 8 money on insuffici5t security1 or ! man :o has be5 induc$ by ! assev]ations ( a highly imag9ative prospectus to put 8 money into a salt$ gold m9e1 or ! man :o buys /ol5 goods f a pawn %op1 or ! man :o because ( insuffici5t police protection loses 8 purse to a highwayman4 ,9 all ^! cases p]fect legal safegu>ds w\ld h prev5t$ ! loss2 yet 9 none ( !m does ! ,/ate und]take to make ! loss good to ! innoc5t victim4 ,su* seems to be ! /rict ju/ice ( ! situation z betwe5 ! consum] & ! innoc5t inve/or4 ,x may sometimes happ5 t a p>ticul>ly grave h>d%ip c be av]t$ f ! latt] at a comp>atively slight co/ to ! =m]4 ,9 su* a case equity w\ld seem to require t "s concession be made to ! inve/ors ?r\gh ! imposition ( some:at high] *>ges ^u ! consum]4 ,magnitude ( ,ov]capitalisation ,probably ! majority ( ! great /eam railroads1 /reet railways1 & gas companies t 7 organis$ dur+ ! la/ qu>t] ( ! n9ete5? c5tury inflat$ _! capitalisation to a great] or less ext5t4 ,s9ce ! ye> #aijj ! tru/s h be5 ! *ief expon5ts & illu/rations ( ! practice4 ,accord+ to ,presid5t ,van ,hise1 ! majority ( ! great conc5trations ( indu/ry h gone ?r\gh two or ?ree /ages ( reorganisation1 ! promot]s & f9anci]s ea* "t pr(it+ greatly1 sometimes enorm\sly4#aid ,= example2 9 #aijh ! wat] 9 ! ,am]ican ,tobacco ,company 0 e/imat$ by ! ,commission] ( ,corporations at #ff1jjj1jjj2 ! ,unit$ ,/ates ,%ipbuild+ ,company dilut$ its twelve & "o-half million doll>s ( capital ) m ?an fifty-five millions ( wat]2 ! ,unit$ ,/ates ,/eel ,corporation conta9$ at ! "t ( its organisation fictiti\s capital to ! am\nt ( #ejj1jjj1jjj2 & at lea/ fifty p] c5t4 ( ! common /ock ( ! ,am]ican ,sug> ,ref9+ ,company repres5t$ no actual inve/m5t4#aie ,ow+ to ! p5etrat+ & widespread criticism1 & ! gov]nm5t inve/igations & prosecutions ( ! la/ few ye>s1 ! practice ( /ockwat]+ has v greatly dim9i%$4 ,p]haps ! mo/ flagrant rec5t example is t ( ! ,pullman ,company1 :i* accord+ to ! te/imony ( ,r4 ,t4 ,l9coln be=e ! ,f$]al ,commission on ,indu/rial ,relations1 di/ribut$ among its /ockhold]s #ajj1jjj1jjj 9 /ock divid5ds betwe5 #ahih & #aiaj4 ,nev]!less ! temptation to inflate capital w exi/ until ! device is /r+5tly prohibit$ by law4 ,bo? ! nation & ! /ates ought to adopt ! policy ( =bidd+ ! sale ( /ock at less ?an p> value1 & re/rict+ issues ( /ock to ! am\nt requir$ = ! e/abli%m5t1 equipm5t1 & p]man5t bett]m5t ( a conc]n1 includ+ a sum to cov] ! loss ( int]e/ to ! inve/ors dur+ ! e>ly p]iod ( ! bus9ess4 ,any extraord9>y risks to :i* an ent]prise is liable c be protect$ by ! simple device ( all[+ a correspond+ly high rate ( int]e/ on ! securities4 ,) su* legislation enact$ & en=c$1 nei!r ! inve/or nor ! consum] c\ld be deceiv$ or defraud$2 & ! f9anc+ & managem5t ( corporations w\ld become less speculative1 & m b5eficial to ! community4 ,! pres5t *apt] may be fitt+ly clos$ ) a mod]ate & significant /atem5t f ! p5 ( ,pr(essor ,taussig3 ,x is d\btful :e!r ! :ole me*anism ( irregul> & swoll5 capitalisation 0 at any "t necess>y or wise4 ,:y n provide once = all t securities %all be issu$ only to repres5t :at has be5 inve/$8444 ,x is sometimes said t fre$om1 ev5 recklessness1 9 ! issue ( securities 0 a useful device1 9 t x enabl$ ! projectors to look =w>d to returns really tempt+1 & at ! same "t conceal$ ^! returns f a grudg+ public4444 ,a m simple & /raight=w>d way ( deal+ ) ! issue ( securities might ?us h damp5$ 9 "s degree ! fev]i% speculation & re/less progress ( railway developm5t4 ,b a sl[] pace w\ld h _h its advantages also1 &1 n lea/1 re/riction ( securities w\ld h sav$ great complications 9 ! lat] /ages ( e/abli%$ monopoly & ne$$ regulation4#aif ,,footnotes3 #ahf ,cf4 ,ripley1 ,tru/s1 ,pools1 & ,corporations1 pp4 #bjg-baj4 #ahg ,see ,report ( ! ,int]/ate ,comm]ce ,commission on ^! transactions4 #ahh ,taussig1 ,pr9ciples ( ,economics1 ,,ii1 #che1 #chf4 #ahi ,f9al ,report1 p4 #dad4 #aij ,f9al ,report ( ! ,indu/rial ,commission1 p4 #dac4 #aia ,report on ! ,/eel ,indu/ry1 p4 #ch4 #aib ,idem1 p4 #ci4 #aic ,*icago ,record-,h]ald1 ,july #bi1 #aiab4 #aid ,op4 cit41 p4 #bh4 #aie ,cf4 ,van ,hise1 op4 cit41 pp4 #bi1 #adb1 #adi4 #aif ,op4 cit41 ,,ii1 #chg1 #chh4 ,,*apt] ,,xx ,,! ,,legal ,,limitation ,,( ,,=tunes ,if ! taxation & o!r measures ( re=m sugge/$ 9 ,section ,i 7 fully appli$ to our l& sy/em2 if co-op]ative ent]prise 7 ext5d$ to its utmo/ practicable limits = ! correction ( capitalism2 & if ! wide ext5sion ( educational opportunities1 & ! elim9ation ( ! surplus ga9s ( monopolies re/rict$ ! pr(its ( ! bus9ess man to an am\nt /rictly comm5surate ) 8 ability & risks1--if all ^! results 7 accompli%$ ! numb] ( m5 :o c\ld become millionaires ?r\gh _! own ef=ts w\ld be s small t _! success w\ld ar\se popul> applause r ?an popul> envy4 ,_! claim to :atev] weal? !y might accumulate w\ld be g5]ally look$ ^u z entirely valid & reasonable4 ,_! pecuni>y em95ce w\ld be pron\nc$ q z des]v$ z ! lit]>y em95ce ( a ,l[ell1 ! sci5tific em95ce ( a ,pa/eur1 or ! political em95ce ( a ,l9coln4 ,9 su* conditions !re c\ld be no disconc]t+ discussion ( ! m5ace ( great =tunes4 ,9 ! meantime1 ^! re=ms are n realis$1 nor are !y likely to be ev5 approximately e/abli%$ )9 ! pres5t g5]ation4 ,= "s "t to come x w be possible = ! exceptionally able1 ! exceptionally cunn+1 & ! exceptionally lucky to accumulate great ri*es ?r\gh clev] & =tuit\s utilisation ( special advantages1 natural & o!rwise4 ,moreov]1 a great proportion ( ! l>ge =tunes already 9 exi/5ce w p]si/1 & w be transmitt$ to heirs :o w 9 _m cases cause !m to increase4 ,c no?+ be done to r$uce ! size & less5 ! numb] ( ^! great accumulations8 ,if s1 is su* a proce$+ socially & morally desirable8 ,! ,me?od ( ,direct ,limitation ,! law might directly limit ! am\nt ( prop]ty to be held by any individual4 ,if ! limit 7 plac$ fairly high1 say1 at "o hundr$ ?\s& doll>s1 x c\ld sc>cely be reg>d$ z an infr+em5t on ! "r ( prop]ty4 ,9 ! case ( a family numb]+ t5 memb]s1 ?is w\ld mean "o million doll>s4 ,all ! ess5tial objects ( private own]%ip c\ld be abundantly met out ( a sum ( "o hundr$ ?\s& doll>s = ea* p]son4 ,moreov]1 a re/riction ( ?is sort ne$ n prev5t a man f be/[+ unlimit$ am\nts ^u *>itable1 religi\s1 educational1 or o!r b5evol5t causes4 ,x w\ld1 inde$1 h9d] "s p]sons f satisfy+ c]ta9 uness5tial wants1 su* z1 ! desire to enjoy gross or ref9$ luxuries1 great f9ancial p[]1 & ! control ( imm5se indu/rial ent]prises2 b none ( ^! objects is necess>y = any individual's g5u9e welf>e4 ,9 ! int]e/ ( ! social good su* private & unimportant ends may prop]ly be r5d]$ impossible ( realisation4 ,su* a re/riction w\ld no m con/itute a direct attack ^u private own]%ip ?an limitations ^u ! use & k9ds ( prop]ty4 ,at pres5t a man may n d :at he pleases ) 8 gun1 8 horse1 or 8 automobile1 nor may he inve/ 8 money 9 ! bus9ess ( c>ry+ ! mails4 ,! limitation ( =tunes is j :at ! ^w expresses1 a limitation ( ! "r ( prop]ty4 ,x is n a d5ial nor de/ruction ( t "r4 ,z a limitation ( ! am\nt to be held by an individual1 x does n diff] 9 pr9ciple f a limitation ( ! k9ds ( goods t may become ! subject ( private own]%ip4 ,!re is no?+ 9 ! nature ( ?+s nor 9 ! reason ( prop]ty to indicate t ! "r ( own]%ip is unlimit$ 9 quantity any m ?an x is 9 quality4 ,! f9al end & ju/ification ( individual rights ( prop]ty is human welf>e2 t is1 ! welf>e ( all individuals sev]ally & collectively4 ,n[ x is q )9 ! b\nds ( physical possibility t ! limitation "u discussion might be conducive to ! welf>e ( human be+s bo? z individuals & z con/itut+ society4 ,nev]!less ! dang]s & ob/acles confront+ any legal re/riction ( =tunes are s real z to r5d] ! proposal socially inexp$i5t4 ,x w\ld easily l5d itself to grave abuse4 ,once ! community _h habituat$ itself to a direct limitation ( any sort1 ! temptation to l[] x 9 ! int]e/ ( bett] di/ribution & simpl] liv+ w\ld become exce$+ly p[]ful4 ,ev5tually ! "r ( prop]ty might take su* an att5uat$ & unc]ta9 =m 9 ! public m9d z to disc\rage lab\r & initiative1 & ?us s]i\sly to endang] human welf>e4 ,9 ! second place1 ! manifold evasions to :i* ! measure w\ld l5d itself w\ld make x ( v d\btful efficacy4 ,to be sure1 nei!r ( ^! objections is absolutely conclusive1 b tak5 toge!r !y are suffici5tly weighty to dictate t su* a proposal %\ld n be ent]ta9$ s long z o!r & less dang]\s me?ods are available to meet ! problem ( excessive =tunes4 ,f\r ( ! n9e memb]s ( ! ,f$]al ,commission on ,indu/rial ,relations h sugge/$ t ! am\nt ( prop]ty capable ( be+ receiv$ by ! heirs ( any p]son be limit$ to "o million doll>s4#aig ,if we assume t by heirs ! ,commission meant ! natural p]sons to :om prop]ty might come by beque/ or succession1 ?is limitation w\ld p]mit a family ( t5 p]sons to inh]it "o hundr$ ?\s& doll>s ea*1 & a family ( five p]sons to obta9 two hundr$ ?\s& doll>s apiece4 ,w\ld su* a re/riction be a violation ( ! "r ( private own]%ip8 ,! answ] dep5ds ^u ! effects ( ! measure on human welf>e4 ,! rights ( beque/ & succession are integral elem5ts ( ! "r ( own]%ip2 h5ce !y are bas$ ^u human ne$s1 & design$ = ! promotion ( human life & developm5t4 ,a p]son ne$s private prop]ty n only to provide = 8 p]sonal wants & ^? ( 8 family dur+ 8 lifetime1 b also to safegu>d ! welf>e ( 8 dep5d5ts & to assi/ o!r wor?y purposes1 aft] he has pass$ away4 ,ow+ to ! unc]ta9ty ( dea?1 ! latt] objects _c be adequately realis$ )\t ! in/itutions ( beque/ & succession4 ,all ! necess>y & rational ends ( beque/ & succession c\ld be atta9$ 9 a society 9 :i* no man's heirs c\ld inh]it m ?an "o million doll>s4 ,"u su* an arrangem5t v few ( ! *ildr5 ( millionaires w\ld be prev5t$ f gett+ at lea/ "o hundr$ ?\s& doll>s4 ,t mu* w\ld be amply suffici5t = ! ess5tial & reasonable ne$s ( any human be+4 ,inde$1 we may g fur!r1 & lay d[n ! proposition t ! ov]:elm+ majority ( p]sons c lead a m virtu\s & reasonable life on ! basis ( a =tune ( "o hundr$ ?\s& doll>s ?an :5 burd5$ ) any l>g] am\nt4 ,! p]sons :o h ! desire & ! ability to use a great] sum ?an ?is 9 a rational way are s few t a limitation law ne$ n take !m into acc\nt4 ,corporate p]sons1 su* z hospitals1 *ur*es1 s*ools1 & o!r helpful in/itutions1 %\ld n1 z a rule1 be re/rict$ z to ! am\nt t !y might inh]it2 = _m ( !m c\ld make a good use ( m ?an ! am\nt t suffices = a natural p]son4 ,s mu* = ! welf>e & rights ( ! b5efici>ies ( inh]itance4 ,! own]s ( e/ates w\ld n be injur$ 9 _! rights ( prop]ty by ! limitation t we are "h consid]+4 ,9 ! fir/ place1 ! numb] ( p]sons practically affect$ by ! limitation w\ld be extremely small4 ,only an insignificant fraction ( prop]ty own]s ev] transmit or expect to be weal?y en\gh to transmit to _! families m ?an "o million doll>s4 ,( ^! few a consid]able proportion w\ld n be det]r$ by ! million doll> limitation f putt+ =? _! be/ & greate/ ef=ts 9 a productive way4 ,!y w\ld cont9ue to "w ei!r f =ce ( habit & love ( _! accu/om$ tasks1 or f a desire to make l>ge gifts to _! heirs dur+ life1 or because !y wi%$ to assi/ "s b5evol5t ent]prise4 ,! inf9itesimally small numb] ^: en]gies w\ld be dim9i%$ by ! limitation c\ld v safely be treat$ z a socially negligible elem5t4 ,! community w\ld be bett] (f )\t !m4 ,! limitation ( inh]itance w\ld1 inde$1 be liable to abuse4 ,circum/ances w\ld und\bt$ly arise 9 :i* ! community w\ld be /rongly tempt$ to make ! maximum inh]itable am\nt s l[ z to disc\rage ! desire ( acquisition1 & to deprive heirs ( reasonable protection4 ,:ile ! bad effects ( su* a limitation w\ld n be z great z ^? foll[+ a simil> abuse ) reg>d to possessions1 !y are suffici5tly grave & suffici5tly probable to sugge/ t ! legal re/riction ( beque/ & succession %\ld n be consid]$ except z a la/ resort1 & :5 ! transmission ( great =tunes _h become a great & c]ta9 public evil4 ,x seems reasonable to conclude1 !n1 t nei!r ! limitation ( possessions nor ! limitation ( inh]itance is necess>ily a direct violation ( ! "r ( prop]ty1 b t ! possible & ev5 probable evil consequ5ces ( bo? are s grave z to make ^! measures ( v d\btful b5efit4 ,:e!r ! dang]s 9 "q are suffici5tly great to r5d] ! adoption ( ei!r proposal morally wrong1 is a "q t _c be answ]$ ) any degree ( confid5ce4 ,:at seems to be fairly c]ta9 is t 9 our pres5t conditions legislation ( ?is sort w\ld be an unnecess>y & unwise exp]im5t4 ,limitation ,?r\gh ,progressive ,taxation ,is x legitimate & feasible to r$uce great =tunes indirectly1 ?r\gh taxation8 ,!re is c]ta9ly no objection to ! me?od on moral or social pr9ciples4 ,z we h se5 9 *apt] viii1 taxes are n levi$ exclusively = ! purpose ( rais+ rev5ue4 ,"s k9ds ( !m are design$ to promote social r ?an fiscal ends4 ,n[1 to prev5t & dim9i% dang]\s accumulations ( weal? is a social end :i* is at lea/ z important z mo/ ( ! objects s\ght 9 lic5se taxes4 ,! propriety ( attempt+ to atta9 ?is end by taxation is1 !re=e1 to be det]m9$ entirely by ref]5ce to its probable effectiv5ess4 ,! precise me?od ( taxation available "h is a progressive tax on incomes & inh]itances4 ,by a progressive tax is meant "o ^: rate advances 9 "s def9ite proportion to ! increases 9 ! am\nt tax$4 ,= example1 a beque/ ( #ajj1jjj doll>s might pay "o p] c5t42 #bjj1jjj doll>s1 two p] c5t42 #cjj1jjj doll>s1 ?ree p] c5t41 & s =?4 ,! reasonabl5ess ( ! pr9ciple ( progression 9 taxation has be5 well /at$ by ,pr(essor ,seligman3 ,all individual wants v>y 9 int5sity1 f ! absolutely necess>y wants ( m]e subsi/5ce to ! less press+ wants :i* c be satisfi$ by pure luxuries4 ,taxes1 9 s f> z !y rob u ( ! means ( satisfy+ our wants1 impose a sacrifice ^u u4 ,b ! sacrifice involv$ 9 giv+ up a portion ( :at enables u to satisfy our necess>y wants is v diff]5t f ! sacrifice involv$ 9 giv+ up :at is necess>y to satisfy our less urg5t wants4 ,if two m5 h incomes ( "o ?\s& doll>s & "o hundr$ ?\s& doll>s respectively1 we impose ^u !m n equal b v unequal sacrifices if we take away f ea* ! same proportion1 say t5 p] c5t4 ,= ! "o ?\s& doll> individual n[ has only n9e hundr$ doll>s1 & mu/ deprive himself & 8 family ( necess>ies ( life2 ! "o hundr$ ?\s& doll> individual has n9ety ?\s& doll>s1 & if he retr5*es at all1 :i* is v d\btful1 he w give up only great luxuries1 :i* d n satisfy any press+ wants4 ,! sacrifice impos$ on ! two individuals is n equal4 ,we are lay+ on ! "o ?\s& doll> man a f> heavi] sacrifice ?an on ! "o hundr$ ?\s& doll> man4 ,9 ord] to impose equal sacrifices we mu/ tax ! ri*] man n only absolutely1 b relatively1 m ?an ! poor man4 ,! taxes mu/ be n proportional1 b progressive2 ! rate mu/ be l[] 9 ! "o case ?an 9 ! o!r4#aih ,! pr9ciple ( equality ( sacrifices :i* und]lies ! progressive !ory does n ju/ify ! levell+ & communi/ic inf]5ces t h sometimes be5 br\ght aga9/ x4 ,equality ( sacrifice does n mean equality ( satisfi$1 or unsatisfi$1 wants aft] ! tax has be5 collect$4 ,if ,br[n pays a tax ( "o p] c5t4 on 8 income ( two ?\s& doll>s1 x does n foll[ t ,jones ) an income ( t5 ?\s& doll>s %\ld pay a suffici5tly high rate to leave him ) only ! net am\nt rema9+ to ,br[n2 namely1 #aihj doll>s4 ,equality ( sacrifice means proportional equality ( burd51 n equality ( net res\rces aft] ! tax has be5 d$uct$4 ,! object ( ! progressive rate is to make relatively equal ! sacrifices caus$ by ! tax itself1 n to equalise ! sum total ( burd5s or unsatisfi$ wants t exi/ among m54 ,ano!r objection to progressive taxation is t x readily l5ds itself to confiscation ( ! l>ge/ incomes4 ,all t is necess>y to produce ?is result is to increase ! rate ) suffici5t rapidity4 ,?is c\ld be accompli%$ ei!r by l>ge /eps 9 ! rate itself or by small /eps 9 ! income increases :i* =m$ ! basis ( ! advances 9 ! rate4 ,= example1 if ! ,f$]al income tax1 :i* at pres5t levies two p] c5t4 on incomes ( m ?an ?ree ?\s& doll>s1 & ?ree p] c5t4 on incomes ( ov] tw5ty ?\s& doll>s1 %\ld !reaft] progress geometrically ) e geometrically progressive increm5t ( income1 ! rate on incomes above #fdj1jjj w\ld be #if p] c5t46 ,or if ! rate %\ld progress ari?metically ) e t5 ?\s& doll>s ( increase above tw5ty ?\s& doll>s1 x w\ld be #ajj p] c5t4 on incomes ( ov] #iij1jjj6 ,to ?is objection !re are two valid answ]s4 ,ev5 if ! rate %\ld ultimately rea* "o hundr$ p] c5t4 x ne$ n1 & on progressive pr9ciples x %\ld n1 effect confiscation ( an entire income4 ,! progressive !ory is satisfi$ :5 ! successive rates ( ! tax apply to successive increm5ts ( income1 in/ead ( to ! entire income4 ,= example1 ! rate might beg9 at "o p] c5t4 on incomes ( "o ?\s& doll>s1 & increase by "o p] c5t4 ) e additional ?\s&1 & yet leave a v l>ge "p ( ! income 9 ! h&s ( ! receiv]4 ,ea* "o ?\s& doll>s w\ld be tax$ at a diff]5t rate1 ! fir/ at "o p] c5t41 ! fiftie? at fifty p] c5t41 & ! la/ at "o hundr$ p] c5t4 ,if ! hundr$ p] c5t4 rate 7 appli$ to ! :ole ( ! high] incomes1 x w\ld be a direct violation ( ! pr9ciple ( equality ( sacrifice4 ,9 ! second place1 ! progressive !ory =bids r ?an requires ! rate to g z high z "o hundr$ p] c5t4 ,:ile ! sacrifices impos$ by a giv5 rate are great] 9 ! case ( small ?an ( l>ge prop]ties1 !y become approximately equal z betwe5 all prop]ties above a c]ta9 high level4 ,aft] ?is level is rea*$1 additional increm5ts ( weal? w all be exp5d$ ei!r = extreme luxuries1 or conv]t$ into new inve/m5ts4 ,consequ5tly !y w supply wants ( approximately equal int5sity4 ,= example1 ! wants dep5d5t ^u a surplus ( #be1jjj doll>s 9 excess ( an income ( #ajj1jjj doll>s1 & ! wants dep5d5t ^u a surplus ( #ge1jjj doll>s above ! same level d n diff] mat]ially 9 /r5g?4 ,to dim9i% ^! surpluses by ! same p] c5t41 say1 t51 w\ld impose proportionally equal burd5s4 ,h5ce ! rate ( progression %\ld be degressive2 t is1 x %\ld increase at a con/ant pace until a c]ta9 high level ( income is rea*$1 !n increase at a /eadily dim9i%+ pace1 & f9ally become uni=m on ! v highe/ incomes4 ,= example2 if ! rate increas$ "o p] c5t4 ) e additional five ?\s& doll>s1 rea*+ fifte5 p] c5t4 on incomes ( sev5ty-five ?\s& doll>s1 x %\ld be on eighty ?\s& doll>s1 n sixte5 b fifte5 & "o-half p] c5t4 ,on #he1jjj doll>s ! rate %\ld be #ae-c_/d p] c5t42 on #ij1jjj1 #ae-g_/h p] c5t42 on #ie1jjj1 #ae-ae_/af p] c5t42 & on all sums ( #ajj1jjj & ov]1 #af p] c5t4 ,! po9t at :i* ! increm5ts 9 ! rate began to decl9e w\ld be t at :i* diff]5ces 9 wants began to dim9i%1 & ! po9t at :i* ! rate became /ation>y w\ld be t at :i* wants fell to ! same level ( int5sity4 ,! ,prop] ,rate ( ,income & ,inh]itance ,taxes ,:ile ! pr9ciple ( equality ( sacrifices =bids a rate ( tax t w\ld rea* or approximate confiscation1 x gives no def9ite indication ( ! prop] scale ( progression1 or ( ! maximum limit t ju/ice w\ld set to ! rate4 ,"u our ,f$]al law ! highe/ rate on incomes is n[ #ac p] c5t42 "u ! ,wiscons9 law x is #f p] c5t42 "u ! law ( ,prussia x is #d p] c5t42 & "u ! ,briti% act ( #aiji x is ab\t #h-a_/b p] c5t4 ,evid5tly a mu* high] rate ?an any ( ^! w\ld be requir$ to make any impression ^u swoll5 =tunes4 ,! ,briti% gov]nm5t rec5tly 7,septemb]1 #aiae7 made ! maximum rate ab\t #cc-a_/c p] c5t4 ,to be sure1 ?is is a w> measure :i* probably w n cont9ue aft] ! re/oration ( peace4 ,h[ev]1 if x 7 made p]man5t x c\ld n be prov$ to be unju/1 provid$ t x 7 appli$ to ! increm5ts ( income above a c]ta9 high limit1 b n to ^! incomes 9 _! entirety4 ,our pres5t inh]itance taxes are v l[1 av]ag+ less ?an #c p] c5t4 ?r\gh\t ! ,unit$ ,/ates4 ,probably ! highe/ rate is to be f\nd 9 ,wiscons91 :]e beque/s to non relatives 9 excess ( half a million doll>s are subject to a tax ( fifte5 p] c5t4 ,x is cle> t all ! exi/+ rates c\ld be rais$ v consid]ably )\t caus+ a violation ( ju/ice4 ,"s ye>s ago ,&rew ,c>negie recomm5d$ a tax ( fifty p] c5t4 on e/ates am\nt+ to m ?an "o million doll>s4#aii ,no c\ntry has yet rea*$ ?is high level ( inh]itance taxes4 ,nev]!less we _c c]ta9ly /igmatise x z unju/ ei!r to ! te/ator or 8 heirs1 nor c we prove t x is 9 any o!r mann] injuri\s to human welf>e4 ,all t c be said ) confid5ce conc]n+ ! j rates ( inh]itance taxation mu/ take ! =m ( g5]alisations4 ,! increm5ts ( ! tax %\ld correspond z closely z possible to ! dim9i%+ int5sity ( ! wants :i* ! tax deprives ( satisfaction2 9 ! case ( ea* heir a c]ta9 fairly high m9imum ( prop]ty %\ld be entirely exempt2 on all ! highe/ e/ates ! rate %\ld be uni=m1 & x %\ld fall a long way %ort ( confiscation2 & ! tax %\ld at no po9t be su* z to disc\rage socially useful activity & ent]prise4 ,effectiv5ess ( ,su* ,taxation ,! ess5tial ju/ice ( ! measures is n ! only consid]ation affect+ high income & inh]itance taxes4 ,!re rema9 ! que/ions ( exp$i5cy & feasibility4 ,"u ! fir/ head ! objection is sometimes rais$ t taxes :i* appropriat$ a consid]able portion ( ! l>g] incomes & inh]itances w\ld dim9i% v mat]ially ! social supply ( capital4 ,imm5se sums ( money w\ld g into ! public treasury :i* o!rwise w\ld h be5 inve/$ 9 comm]ce & indu/ry4 ,two que/ions are rais$ by ?is situation3 fir/1 :e!r x might n be bett] = society to h ^! sums devot$1 ?r\gh public works ( v>i\s k9ds1 to consumptive uses in/ead ( to an increase 9 ! supply ( capital2 second1 :e!r ! r$uction 9 ! sav+s & capital provid$ by ! p]sons pay+ ! taxes c\ld be (fset by increases 9 sav+ among o!r classes4 ,ev5 if x be assum$ t ! fir/ "q %\ld receive a negative answ]1 x is n improbable t ! second %\ld be answ]$ 9 ! affirmative4 ,9 o!r words1 ! increas$ sav+ :i* ! poor] & middle classes w\ld be enabl$ to make z a result ( ! %ift+ ( "s ( _! burd5 ( taxation to ! l>ge incomes & inh]itances1 might v well c\nt]balance ! curtailm5t 9 ! inve/m5ts ( ! weal?y classes4 ,ev5 if ?is possibility 7 n fully realis$1 ev5 if ! net volume ( capital 9 ! community 7 some:at dim9i%$1 ?is disadvantage might be m ?an neutralis$ by ! wid] social b5efits ( ! taxation policy4 ,) reg>d to ! feasibility ( v heavy income & inh]itance taxes1 x is sometimes cont5d$ t nei!r ( ^! measures c be made effective t[>d ! r$uction ( abnormal =tunes4#bjj ,x is held t ! successful collection ( ^! taxes requires ! co-op]ation ( ! p]sons affect$ by !m2 t if ! rate %\ld g above t5 or twelve p] c5t41 ! income receiv] w\ld evade ! tax 9 a great v>iety ( ways1 :ile ! own] ( a l>ge e/ate w\ld transf] 8 prop]ty outright to a tru/ company1 :i* w\ld aft] 8 dea? make ! desir$ di/ribution4 ,! man :o urges ^! objections is a v high au?ority on taxation1 especially on its adm9i/rative side2 nev]!less 8 cont5tions are n absolutely conclusive4 ,9 p>ticul>1 x does n seem probable t high inh]itance taxes c\ld be evad$ by ! simple devices t he m5tions4 ,x ought n to be beyond ! p[] ( adm9i/rative +5uity to f9d me?ods ( defeat+ su* subt]fuges4 ,h[ev]1 x is altoge!r likely t ! possibilities ( evasion w\ld be suffici5t to prev5t ! imposition ( tax rates t approa*$ )9 measurable di/ance ( ! bord]l& ( confiscation4 ,! sum ( ! matt] seems to be t ! r$uction & prev5tion ( great =tunes _c prud5tly be accompli%$ by ! me?od ( direct limitation2 t ^! ends may wisely & ju/ly be atta9$ indirectly1 ?r\gh ! imposition ( progressive income & inh]itance taxes2 b t ! ext5t to :i* ^! measures w\ld be g5u9ely effective _c be e/imat$ until !y h be5 giv5 a ?or\gh trial4 ,,footnotes3 #aig ,f9al ,report1 p4 #cb4 #aih ,progressive ,taxation1 pp4 #baj1 #baa2 cf4 ,v]me]s*1 ,quae/iones de ,ju/itia1 pp4 #id-abf4 #aii ,! ,gospel ( ,weal?1 pp4 #aa1 #ab4 #bjj ,cf4 ,dr4 ,t4 ,s4 ,adams 9 ,pap]s & ,proce$+s ( ! #bg? ,annual ,meet+ ( ! ,am]ican ,economic ,association1 pp4 #bcd1 sq4 ,,*apt] ,,xxi ,,! ,,duty ,,( ,,di/ribut+ ,,sup]flu\s ,,weal? ,! correctives ( ! pres5t di/ribution t 7 propos$ be=e ! beg9n+ ( ! la/ *apt] relat$ ma9ly to ! apportionm5t ( ! product among ! ag5ts ( production4 ,!y w\ld affect t di/ribution :i* takes place z an integral elem5t ( ! productive process1 n any disposition :i* ! productive ag5ts might desire or be requir$ to make ( ! %>es t !y _h acquir$ f ! productive process4 ,su* 7 _m ( ! proposals reg>d+ l& t5ure1 & all ( ^? conc]n+ co-op]ative ent]prises & monopoly4 ,9 ! la/ *apt] we consid]$ ! possibility ( neutralis+ to "s ext5t ! abuses ( ! prim>y di/ribution by ! action ( gov]nm5t ?r\gh ! taxation ( l>ge =tunes4 ,^! 7 proposals directly affect+ ! second>y di/ribution4 ,& !y involv$ ! me?od ( compulsion4 ,9 ! pres5t *apt] we %all inquire :e!r desirable *anges 9 ! second>y di/ribution may n be effect$ by volunt>y action4 ,! specific que/ions confront+ u "h are1 :e!r & h[ f> proprietors are morally b\nd to di/ribute _! sup]flu\s weal? among _! less =tunate fell[s4 ,! ,"q ( ,di/ribut+ ,"s ,! au?ority ( reveal$ religion returns to ! fir/ ( ^! que/ions a cle> & emphatic answ] 9 ! affirmative4 ,! ,old & ! ,new ,te/am5ts ab\nd 9 decl>ations t possessors are "u v /rict obligation to give ( _! surplus to ! indig5t4 ,p]haps ! mo/ /rik+ expression ( ?is tea*+ is t f\nd 9 ! ,gospel accord+ to ,/4 ,mat!w1 *4 #be1 v]ses #cb-df1 :]e et]nal happ9ess is aw>d$ to ^? :o h f$ ! hungry1 giv5 dr9k to ! ?ir/y1 receiv$ ! /rang]1 cov]$ ! nak$1 visit$ ! sick1 & call$ ^u ! imprison$2 & et]nal damnation is met$ out to ^? :o h fail$ 9 ^! respects4 ,! pr9ciple t own]%ip is /ew>d%ip1 t ! man :o possesses sup]flu\s goods mu/ reg>d himself z a tru/ee = ! ne$y1 is fundam5tal & all-p]vasive 9 ! tea*+ ( ,*ri/ianity4 ,no m cle> or concise /atem5t ( x has ev] be5 giv5 ?an t ( ,/4 ,?omas ,aqu9as3 ,z reg>ds ! p[] ( acquir+ & disp5s+ mat]ial goods1 man may lawfully possess !m z 8 own2 z reg>ds _! use1 h[ev]1 a man ought n to look ^u !m z 8 own1 b z common1 s t he may readily m9i/] to ! ne$s ( o!rs4#bja ,reason likewise enjo9s ! b5evol5t di/ribution ( surplus weal?4 ,x rem9ds ! proprietor t 8 ne$y neighb\rs h ! same nature1 ! same faculties1 capacities1 wants1 & de/9y z himself4 ,!y are 8 equals & 8 bro!rs4 ,reason1 !re=e1 requires t he %\ld e/eem !m z su*1 love !m z su*1 & treat !m z su*2 t he %\ld love !m n m]ely by well wi%+1 b by well do+4 ,s9ce ! goods ( ! e>? 7 int5d$ by ! ,creator = ! common b5efit ( all mank9d1 ! possessor ( a surplus is reasonably requir$ to use x 9 su* a way t ?is orig9al purpose ( all creat$ goods w be fulfill$4 ,to refuse is to treat "o's less =tunate neighb\r z some?+ diff]5t f & less ?an oneself1 z a creature ^: claim ^u ! common b\nty ( nature is some?+ less ?an "o's own4 ,multiply+ words w n make ^! tru?s pla9]4 ,! man :o does n admit t ! welf>e ( 8 neighb\r is ( equal moral wor? & importance ) 8 own welf>e1 w logically refuse to admit t he is "u any obligation ( di/ribut+ 8 sup]flu\s goods4 ,! man :o does ackn[l$ge ?is ess5tial equality w be unable to f9d any logical basis = su* refusal4 ,is ?is obligation "o ( *>ity or "o ( ju/ice8 ,at ! outset a di/9ction mu/ be made betwe5 weal? t has be5 hone/ly acquir$ & weal? t has come into "o's possession ?r\gh "s violation ( rights4 ,! latt] k9d mu/1 ( c\rse1 be re/or$ to ^? p]sons :o h be5 wrong$4 ,if !y _c be f\nd or id5tifi$ ! ill-gott5 ga9s mu/ be turn$ ov] to *>itable or o!r wor?y objects4 ,s9ce ! goods d n belong to ! pres5t hold] by any valid moral title1 !y %\ld be giv5 to ^? p]sons :o are qualifi$ by at lea/ ! claim & title ( ne$s4 ,"s ( ! ,fa!rs ( ! ,*ur* ma9ta9$ t all sup]flu\s weal?1 :e!r well or ill gott51 ought to be di/ribut$ to ^? 9 want4 ,/4 ,basil ( ,cs>ea3 ,w n ! man :o robs ano!r ( 8 clo?+ be call$ a ?ief8 ,is ! man :o is able & refuses to clo! ! nak$ des]v+ ( any o!r appellation8 ,! bread t y )hold belongs to ! hungry2 ! cloak t y reta9 9 y\r *e/ belongs to ! nak$2 ! %oes t are decay+ 9 y\r possession belong to ! %oeless2 ! gold t y h hidd5 9 ! gr\nd belongs to ! indig5t4 ,:]e=e1 z (t5 z y 7 able to help m5 & refus$1 s (t5 y did !m wrong4#bjb ,/4 ,augu/9e ( ,hippo3 ,! sup]fluities ( ! ri* are ! necessities ( ! poor4 ,!y :o possess sup]fluities possess ! goods ( o!rs4#bjc ,/4 ,ambrose ( ,milan3 ,! e>? belongs to all2 n to ! ri*2 b ^? :o possess _! %>es are few] ?an ^? :o d n4 ,!re=e1 y are pay+ a debt1 n be/[+ a gift4#bjd ,pope ,gregory ! ,great3 ,:5 we give necess>ies to ! ne$y1 we d n be/[ ^u !m our goods2 we return to !m _! own2 we pay a debt ( ju/ice r ?an ( m]cy4#bje ,! great sy/ematis] ( !ology 9 ! ?irte5? c5tury1 ,/4 ,?omas ,aqu9as1 :o is univ]sally recognis$ z ! mo/ au?oritative private tea*] 9 ! ,*ur*1 /at$ ! obligation ( di/ribution 9 less extreme & m sci5tific t]ms3 ,accord+ to ! ord] ( nature in/itut$ by ,div9e ,provid5ce1 ! goods ( ! e>? are design$ to supply ! ne$s ( m54 ,! division ( goods & _! appropriation ?r\gh human law d n ?w>t ?is purpose4 ,!re=e1 ! goods :i* a man has 9 sup]fluity are due by ! natural law to ! su/5ance ( ! poor4#bjf ,t ?is is ! (ficial tea*+ ( ! ,*ur* to-day is evid5t f ! words ( ,pope ,leo ,,xiii3 ,:5 "o has provid$ suffici5tly = "o's necessities & ! dem&s ( "o's /ate ( life1 !re is a duty to give to ! indig5t out ( :at rema9s4 ,x is a duty n ( /rict ju/ice1 save 9 case ( extreme necessity1 b ( ,*ri/ian *>ity4#bjg ,ne>ly ?irte5 ye>s e>li]1 ! same ,pope _h writt53 ,! ,*ur* lays ! ri* "u /rict comm& to give _! sup]fluity to ! poor4#bjh ,! only diff]5ce betwe5 ! ,fa!rs & ,pope ,leo ,,xiii & ,/4 ,?omas on ?is "q has ref]5ce to ! precise nature ( ! obligation4 ,accord+ to ! ,fa!rs1 ! duty ( di/ribution w\ld seem to be a duty ( ju/ice4 ,9 ! passage quot$ above f ,/4 ,?omas1 sup]fluities are said to belong1 or to be due 7debetur7 to ! ne$y2 b ! p>ticul> moral precept t applies is n specifi$4 ,9 ano!r place1 h[ev]1 ! ,angelic ,doctor decl>es t almsgiv+ is an act ( *>ity4#bji ,pope ,leo ,,xiii explicitly says t ! obligation ( giv+ is "o ( *>ity1 except 9 extreme cases4 ,! latt] phrase ref]s to ! traditional doctr9e t a p]son :o is 9 extreme ne$2 t is1 9 imm$iate dang] ( los+ life1 limb1 or "s equival5t p]sonal good1 is ju/ifi$ 9 ! abs5ce ( any o!r means ( succ\r 9 tak+ f 8 neighb\r :at is absolutely necess>y4 ,su* appropriation1 says ,/4 ,?omas1 is n prop]ly speak+ !ft2 = ! goods seiz$ belong to ! ne$y p]son1 inasmu* z he mu/ su/a9 life4#baj ,9 a ^w1 ! m$ival & ! mod]n ,ca?olic tea*+ w\ld make di/ribution ( sup]flu\s goods a duty ( ju/ice only 9 extreme situations1 :ile ! ,fa!rs laid d[n no su* specific limitation4 ,nev]!less1 ! diff]5ce is less important ?an x appe>s to be on ! surface4 ,:5 ! ,fa!rs liv$1 !ology _h n be5 sy/ematis$ nor giv5 a precise t]m9ology2 consequ5tly1 !y did n always make exact di/9ctions betwe5 ! diff]5t classes ( virtues & obligations4 ,9 ! second place1 ! ,patri/ic passages t we h quot$1 & o!rs ( l import1 7 mo/ly conta9$ 9 s]mons address$ to ! ri*1 & consequ5tly 7 express$ 9 hortatory r ?an sci5tific t]ms4 ,moreov]1 ! ne$s ( ! "t :i* ! ri* 7 exhort$ to relieve 7 probably s urg5t t !y c\ld correctly be class$ z extreme1 & !re=e w\ld give rise to an obligation ( ju/ice on ! "p ( ^? :o possess$ sup]flu\s weal?4 ,! truly important fact ( ! :ole situation is t bo? ! ,fa!rs & ! lat] au?orities ( ! ,*ur* reg>d ! task ( di/ribut+ sup]flu\s goods z "o ( /rict moral obligation1 :i* 9 s]i\s cases is b9d+ "u pa9 ( griev\s s94 ,:e!r x falls "u ! head ( ju/ice or "u t ( *>ity1 is ( no great practical consequ5ce4 ,! ,"q ( ,di/ribut+ ,all ,is a man oblig$ to di/ribute all 8 sup]flu\s weal?8 ,z reg>ds ! support ( human life1 ,ca?olic moral !ologians di/+ui% ?ree classes ( goods3 fir/1 ! necess>ies ( life1 ^? utilities :i* are ess5tial to a heal?y & humane exi/5ce = a man & 8 family1 reg>dless ( ! social position t he may occupy1 or ! /&>d ( life to :i* he may h be5 accu/om$2 second1 ! conv5tional necessities & com=ts1 :i* correspond to ! social plane ^u :i* ! individual or family moves2 ?ird1 ^? goods :i* are n requir$ to support ei!r exi/5ce or social position4 ,goods ( ! second class are said to be necess>y z reg>ds conv5tional purposes1 b sup]flu\s z reg>ds ! ma9t5ance ( life1 :ile ^? ( ! ?ird class are sup]flu\s )\t qualification4 ,no obligation exi/s to di/ribute ! fir/ class ( goods2 = ! possessor is ju/ifi$ 9 pref]r+ 8 own prim>y & fundam5tal ne$s to ! equal or less important ne$s ( 8 neighb\rs4 ,! own] ( goods ( ! second class is "u obligation to disp5se !m to p]sons :o are 9 extreme ne$1 s9ce ! pres]vation ( ! neighb\r's life is m important morally ?an ! ma9t5ance ( ! own]'s conv5tional /&>d ( liv+4 ,on ! o!r h&1 !re is no obligation ( giv+ any ( ^! goods to meet ^? ne$s ( ! neighb\r :i* are social or conv5tional4 ,"h1 aga91 x is reasonable t ! possessor %\ld pref] 8 own int]e/s to ! equal int]e/s ( 8 fell[s4 ,/ill less is he oblig$ to exp5d any ( ! second class ( goods = ! relief ( ord9>y or common di/ress4 ,z reg>ds ! ?ird class ( goods1 ^? :i* are absolutely sup]flu\s1 ! proportion to be di/ribut$ is indef9ite1 dep5d+ ^u ! volume ( ne$4 ,! doctr9e ( ! moral !ologians on ! subject is summ$ up 9 ! foll[+ p>agraph4 ,:5 ! ne$s to be suppli$ are ord9>y1 or common2 t is1 :5 !y m]ely expose a p]son to consid]able & con/ant inconv5i5ce1 )\t inflict+ s]i\s physical1 m5tal1 or moral injury1 !y d n impose ^u any man ! obligation ( giv+ up all 8 sup]flu\s goods4 ,accord+ to "s moral !ologians1 ! possessor fulfils 8 duty 9 su* cases if he contributes t proportion ( 8 surplus :i* w\ld suffice = ! removal ( all su* di/ress1 provid$ t all o!r possessors 7 equally g5]\s2 accord+ to o!rs1 if he gives two p] c5t4 ( 8 sup]fluity2 accord+ to o!rs1 if he contributes two p] c5t4 ( 8 annual income4 ,^! e/imates are int5d$ n s mu* to def9e ! exact measure ( obligation z to emphasise ! fact t !re exi/s "s degree ( obligation2 = all ! moral !ologians agree t "s portion ( a man's sup]flu\s goods ought to be giv5 = ! relief ( ord9>y or common ne$s4 ,:51 h[ev]1 ! di/ress is grave2 t is1 :5 x is s]i\sly detrim5tal to welf>e2 = example1 :5 a man or a family is 9 dang] ( fall+ to a l[] social plane2 :5 heal?1 morality1 or ! intellectual or religi\s life is m5ac$1--possessors are requir$ to contribute z mu* ( _! sup]flu\s goods z is necess>y to meet all su* cases ( di/ress4 ,if all is ne$$ all mu/ be giv54 ,9 o!r words1 ! entire mass ( sup]flu\s weal? is morally subject to ! call ( grave ne$4 ,?is seems to be ! unanim\s tea*+ ( ! moral !ologians4#baa ,x is also 9 h>mony ) ! g5]al pr9ciple ( ! moral law t ! goods ( ! e>? %\ld be enjoy$ by ! inhabitants ( ! e>? 9 proportion to _! ess5tial ne$s4 ,9 any rational di/ribution ( a common h]itage1 ! claims ( heal?1 m9d1 & morals are surely sup]ior to ! dem&s ( luxuri\s liv+1 or inve/m5t1 or m]e accumulation4 ,:at p] c5t4 ( ! sup]flu\s incomes 9 ! ,unit$ ,/ates w\ld suffice to alleviate all ! exi/+ grave & ord9>y di/ress8 ,no?+ l an exact answ] is possible1 b we c get an approximation t w h consid]able practical value4 ,f ! e/imates ( family incomes giv5 by ,pr(essor ,w4 ,i4 ,k+1 x appe>s t 9 #aiaj ! numb] ( families ) annual incomes ( less ?an "o ?\s& doll>s 0 a little m ?an t5 & ?ree qu>t] millions1 & t ! total incomes ( ^? families receiv+ m ?an t5 ?\s& doll>s a ye> am\nt$ to a little m ?an ?ree & ?ree qu>t] billions4#bab ,if ea* ( ! latt] class ( families %\ld exp5d t5 ?\s& doll>s p] ye> = ! ne$s ( life & social position1 !y w\ld h left ne>ly two & ?ree qu>t] billions = di/ribution among ! t5 & ?ree qu>t] million families :o are bel[ ! "o ?\s& doll> level4 ,s f> z ! figures ( ,pr(essor ,k+'s table enable u to judge1 ! great] "p if n all ( ?is sum w\ld be requir$ to br+ ?is gr\p ( families up to t /&>d4 ,possibly an income ( "o ?\s& doll>s p] family is n requir$ to remove all ord9>y & grave di/ress2 & possibly t5 ?\s& doll>s is n en\gh = ! reasonable requirem5ts ( "s families4 ,if bo? ^! suppositions are true !y w t5d to cancel ea* o!r3 ! ne$s to be met w be less1 b ! sup]flu\s income to be di/ribut$ w be less also4 ,:atev] be ! m9imum & maximum limits ( family income t approve !mselves to compet5t /ud5ts1 ! conclusion w probably be inevitable t ! great] "p ( ! sup]flu\s income ( ! well-to-d & ! ri* w\ld be requir$ to aboli% all grave & ord9>y ne$4 ,"s ,objections ,! desirability ( su* a ?or\ghgo+ di/ribution ( sup]flu\s incomes appe>s to be refut$ by ! fact t a consid]able "p ( ! capital & organis+ ability t function 9 indu/ry is dep5d5t ^u ! possession ( sup]flu\s goods by ! ri*] classes4 ,t surplus ( ! l>g] incomes :i* is n consum$ or giv5 away by its receiv]s at pres5t1 con/itutes no small portion ( ! :ole supply ( sav+s annually conv]t$ into capital4 ,7 all ( x to be )drawn f indu/ry & di/ribut$ among ! ne$y1 ! process might involve m h>m ?an good4 ,moreov]1 ! v l>ge indu/rial ent]prises are initiat$ & c>ri$ on by m5 :o h !mselves provid$ a consid]able %>e ( ! necess>y funds4 ,)\t ^! l>ge masses ( p]sonal capital1 !y w\ld h mu* m difficulty 9 organis+ ^! great ent]prises1 & w\ld be unable to ex]cise _! pres5t dom9at+ control4 ,to ! fir/ "p ( ?is objection we may reply t ! di/ribution ( sup]flu\s goods ne$ n involve any consid]able )drawal ( exi/+ capital f indu/ry4 ,! giv+ ( l>ge am\nts to in/itutions & organisations1 z di/+ui%$ f ne$y individuals1 might mean m]ely a transf] ( capital f "o hold] to ano!r2 = example1 ! /ocks & bonds ( corporations4 ,! capital w\ld be left intact1 ! only *ange be+ 9 ! p]sons t w\ld !nce=? receive ! int]e/4 ,small donations c\ld come out ( ! possessor's income4 ,moreov]1 !re is no reason :y ! :ole ( ! di/ribution c\ld n be made out ( income r ?an out ( capital4 ,:ile ! giv]s w\ld /ill rema9 possess$ ( sup]flu\s weal?1 !y w\ld h h&$ ov] to ne$y objects1 p]sons1 & causes ! ?+ t 9 mod]n times con/itutes ! s\l & ess5ce ( weal?2 namely1 its annual rev5ues4 ,nev]!less1 ! di/ribution f income w\ld app>5tly *eck ! necess>y increase ( capital1 less5 unduly ! supply ( capital = ! future4 ,7 all1 or ! great] "p ( sup]flu\s incomes devot$ to b5evol5t objects x w\ld be us$ up = consumption goods2 su* z1 food1 clo?+1 h\s+1 hospitals1 *ur*es1 s*ools4 ,w\ld n ?is *eck to ! increase ( capital cause s]i\s injury to society8 ,new inve/m5t w\ld n be dim9i%$ by an am\nt equal to ! :ole am\nt ( income transf]r$ to objects ( b5evol5ce4 ,= ! improv$ position ( ! poor] classes t _h %>$ 9 ! di/ribution w\ld enable !m to increase _! productive p[] & _! res\rces1 & !re=e to save money & conv]t x into capital4 ,aga91 _! increas$ consum+ p[] w\ld augm5t ! dem& = goods1 br+ ab\t a l>g] use ( exi/+ capital in/rum5ts1 & !re=e lead to an enl>gem5t ( ! community's capacity = sav+4 ,?us1 ! new sav+ & capital w\ld1 p>tially at lea/1 take ! place ( t :i* 0 =m]ly provid$ by ! possessors ( surplus income4 ,9 s f> z a net dim9ution occurr$ 9 ! community's supply ( capital1 x w\ld probably be m ?an (fset1 f ! viewpo9t ( social welf>e1 by ! bett] diffusion ( goods & opportunities among ! masses ( ! population4 ,! second difficulty not$ above1 t su* a ?or\gh di/ribution ( sup]flu\s goods w\ld less5 consid]ably ! p[] ( ! capta9s ( indu/ry to organise & op]ate great ent]prises1 c be dispos$ ( v briefly4 ,^? :o made ! di/ribution f income r ?an f inve/$ weal?1 w\ld /ill reta9 control ( l>ge masses ( capital4 ,all1 h[ev]1 w\ld h depriv$ !mselves ( ! p[] to enl>ge _! bus9ess v5tures by turn+ great quantities ( _! own income back into indu/ry4 ,b if _! ability & "* 7 su* z to comm& ! confid5ce ( inve/ors1 !y w\ld be able to f9d suffici5t capital else:]e to equip & c>ry on any s\nd & necess>y ent]prise4 ,9 ?is case ! process ( accumulat+ ! requir$ funds w\ld1 inde$1 be sl[] ?an :5 !y us$ _! own1 b t w\ld n be an unmix$ disadvantage4 ,:5 ! bus9ess 0 f9ally e/abli%$1 x w\ld probably be m /able1 w\ld respond to a m def9ite & consid]able ne$1 & w\ld be m b5eficial socially1 inasmu* z x w\ld include a l>g] proportion ( ! population among its proprietors4 ,& ! dim9i%$ au?ority & control ex]cis$ by ! great capitali/1 on acc\nt ( 8 dim9i%$ own]%ip ( ! /ock1 w\ld 9 ! long run be a good ?+ = society4 ,x w\ld mean ! curtailm5t ( a species ( p[] t is easily liable to abuse1 wid] opportunities ( indu/rial lead]%ip1 & a m democratic & /able indu/rial sy/em4 ,only a comp>atively small portion ( ! sup]flu\s goods ( ! c\ntry c\ld ) advantage be imm$iately & directly di/ribut$ among ne$y individuals4 ,! great] "p w\ld d m good if x 7 giv5 to religi\s & b5evol5t in/itutions & ent]prises4 ,*ur*es1 s*ools1 s*ol>%ips1 hospitals1 asylums1 h\s+ projects1 insurance aga9/ unemploym5t1 sickness1 & old age1 & b5evol5t & sci5tific purposes g5]ally1--con/itute ! be/ objects & ag5cies ( effective di/ribution4 ,by ^! means social & individual effici5cy w\ld be s improv$ )9 a few ye>s t ! di/ress due to economic causes w\ld = ! mo/ "p h disappe>$4 ,! proposition t m5 are "u moral obligation to give away ! great] portion ( _! sup]flu\s goods or income is1 inde$1 a h>d say+4 ,n improbably x w /rike ! majority ( p]sons :o read ^! pages z extreme & fanta/ic4 ,no ,ca?olic1 h[ev]1 :o kn[s ! traditional tea*+ ( ! ,*ur* on ! "r use ( weal?1 & :o consid]s pati5tly & s]i\sly ! magnitude & ! mean+ ( human di/ress1 w be able to refute ! proposition by reason$ argum5ts4 ,inde$1 no man c logically d5y x :o admits t m5 are intr9sically sacr$1 & ess5tially equal by nature & 9 _! claims to a reasonable livelihood f ! common h]itage ( ! e>?4 ,! wants t a man supplies out ( 8 sup]flu\s goods are n necess>y = rational exi/5ce4 ,= ! mo/ "p !y br+ him m]ely irrational enjoym5t1 great] social pre/ige1 or increas$ dom9ation ov] 8 fell[s4 ,judg$ by any reasonable /&>d1 ^! are surely less important ?an ^? ne$s ( ! neighb\r :i* are connect$ ) humane liv+4 ,if any consid]able "p ( ! community rejects ^! propositions ! explanation w be f\nd n 9 a reason$ !ory1 b 9 ! conv5tional assumption t a man may d :at he likes ) 8 own4 ,?is assumption is adopt$ )\t exam9ation1 )\t criticism1 )\t any s]i\s adv]t5ce to ! great moral facts t own]%ip is /ew>d%ip1 & t ! ,creator int5d$ ! e>? = ! reasonable support ( all ! *ildr5 ( m54 ,a ,false ,conception ( ,welf>e & ,sup]flu\s ,goods ,if all ! pres5t own]s ( sup]flu\s goods 7 to c>ry out _! own conception ( ! obligation1 ! am\nt di/ribut$ w\ld be only a fraction ( ! real sup]abundance4 ,let u recall ! def9ition ( absolute sup]fluity z1 t portion ( individual or family income :i* is n requir$ = ! reasonable ma9t5ance ( life & social position4 ,x all[s1 ( c\rse1 a reasonable provision = ! future4 ,b ! great majority ( possessors1 z well z p]haps ! majority ( o!rs1 d n int]pret _! ne$s1 :e!r ( life or social position1 9 any su* /rict fa%ion4 ,^? :o acquire a surplus ov] _! pres5t absolute & conv5tional ne$s1 g5]ally devote x to an expansion ( social position4 ,!y move into l>g] & m exp5sive h\ses1 !reby increas+ _! assum$ requirem5ts1 n m]ely 9 ! matt] ( h\s+1 b z reg>ds food1 clo?+1 amusem5ts1 & ! conv5tions ( ! social gr\p ) :i* !y are affiliat$4 ,9 ?is way ! surplus :i* ought to h be5 di/ribut$ is all absorb$ 9 ! acquisition & ma9t5ance ( m exp5sive /&>ds4 ,all classes ( possessors adopt & act ^u an exagg]at$ conception ( bo? ! /rict & ! conv5tional necessities4 ,9 tak+ ?is c\rse1 !y are m]ely subscrib+ to ! curr5t !ory ( life & welf>e4 ,x is commonly assum$ t to be wor? :ile life mu/ include ! cont9u\s & indef9ite increase ( ! numb] & v>iety ( wants1 & a correspond+ gr[? & v>iation 9 ! means ( satisfy+ !m4 ,v little endeav\r is made to di/+ui% betwe5 k9ds ( wants1 or to arrange !m 9 any def9ite scale ( moral importance4 ,desires = purely physical goods1 su* z1 food1 dr9k1 adornm5t1 & s5se gratifications g5]ally1 are put on ! same level ) ! dem&s ( ! spiritual1 moral1 & intellectual faculties4 ,! value & importance ( any & all wants is det]m9$ ma9ly by ! crit]ion ( enjoym5t4 ,9 ! great majority ( cases ?is means a pref]5ce = ! goods & exp]i5ces t m9i/] to ! s5ses4 ,s9ce ^! satisfactions are susceptible ( indef9ite increase1 v>iety1 & co/1 ! believ] 9 ?is !ory ( life-values readily assumes t no practical limit c be set to ! am\nt ( goods or income t w be requir$ to make life cont9u\sly & progressively wor? liv+4 ,h5ce ! "q :e!r he has sup]flu\s goods1 h[ mu* ( a surplus he has1 or h[ mu* he is oblig$ to di/ribute1 sc>cely occurs to him at all4 ,ev]y?+ t he possesses or is likely to possess1 is includ$ among ! necess>ies ( life & social position4 ,he adopts z 8 work+ !ory ( life ^? propositions :i* 7 condemn$ z sc&al\s & p]nici\s by ,pope ,innoc5t ,,xi 9 #afgi3 ,x is sc>cely possible to f9d among p engag$ 9 worldly pursuits1 ev5 among k+s1 goods t are sup]flu\s to social position4 ,!re=e1 h>dly any "o is b\nd to give alms f ?is s\rce4 ,! practical consequ5ces ( ?is false conception ( welf>e are naturally mo/ conspicu\s among ! ri*1 especially ! v ri*1 b !y are also manife/ among ! com=table & middle classes4 ,9 e social gr\p above ! limit ( v mod]ate circum/ances1 too mu* money is sp5t = mat]ial goods & enjoym5ts1 & too little = ! intellectual1 religi\s1 & altrui/ic ?+s ( life4 ,! ,true ,conception ( ,welf>e ,?is work+ cre$ ( mat]ialism is condemn$ by "r reason1 z well z by ,*ri/ianity4 ,! tea*+ ( ,*ri/ on ! wor? ( mat]ial goods is express$ sub/antially 9 ! foll[+ texts3 ,woe to y ri*4 ,bless$ are y poor4 ,lay n up = y\rselves treasures on e>?4 ,= a man's life consi/e? n 9 ! abundance ( ?+s t he possesse?4 ,be n solicit\s z to :at y %all eat1 or :at y %all dr9k1 or :at y %all put on4 ,seek ye fir/ ! k+dom ( ,god & 8 ju/ice1 & all ^! ?+s %all be add$ unto y4 ,y _c s]ve ,god & ,mammon4 ,if ?\ w\ld/ be p]fect1 g1 sell :at ?\ ha/ & give to ! poor1 & come foll[ me4 ,reason in=ms u t nei!r our faculties nor ! goods t satisfy !m are ( equal moral wor? or importance4 ,! intellectual & spiritual faculties are ess5tially & intr9sically high] ?an ! s5se faculties4 ,only 9 s f> z !y promote1 ei!r negatively or positively1 ! developm5t ( ! m9d & s\l h ! s5ses any reasonable claim to satisfaction4 ,!y h no value 9 !mselves2 !y are m]ely in/rum5ts to ! welf>e ( ! _s1 ! intellect1 & ! dis9t]e/$ w4 ,"r life consi/s1 n 9 ! indef9ite satisfaction ( mat]ial wants1 b 9 ! progressive endeav\r to "k ! be/ t is to be kn[n1 & to love ! be/ t is to be lov$2 t is1 ,god & ,8 creatures 9 ! ord] ( _! importance4 ,! man :o d5ies ! intr9sic sup]iority ( ! s\l to ! s5ses1 :o puts s5se gratifications on ! same level ( importance z ! activities ( m9d1 & _s1 & dis9t]e/$ w1 logically holds t ! mo/ degrad+ actions are equally good & comm5dable ) ^? :i* mank9d approves z ! noble/4 ,8 moral /&>d does n diff] f t ( ! pig1 & he himself is on no high] moral level ?an ! pig4 ,^? :o accept ! view ( life & welf>e taught by ,*ri/ianity & reason _c1 if !y take ! tr\ble to consid] ! matt]1 avoid ! conclusion t ! am\nt ( mat]ial goods :i* c be exp5d$ 9 ! rational & ju/ifiable satisfaction ( ! s5ses1 is v mu* small] ?an is to-day assum$ by ! great majority ( p]sons4 ,some:]e betwe5 five & t5 ?\s& doll>s a ye> lies ! maximum exp5diture t any family c reasonably devote to its mat]ial wants4 ,?is is indep5d5t ( ! outlay = education1 religion1 & *>ity1 & ! ?+s ( ! m9d g5]ally4 ,9 ! ov]:elm+ majority ( cases 9 :i* m ?an five to t5 ?\s& doll>s are exp5d$ = ! satisfaction ( mat]ial ne$s1 "s injury is done to ! high] life4 ,! int]e/s ( heal?1 intellect1 _s1 or morals w\ld be bett] promot$ if ! outlay = mat]ial ?+s 7 kept bel[ ! specifi$ limit4 ,! di/ribution advocat$ 9 ?is *apt] is obvi\sly no sub/itute = ju/ice or ! de$s ( ju/ice4 ,inasmu*1 h[ev]1 z complete ju/ice is a long way f realisation1 a s]i\s attempt by ! possessors ( true sup]flu\s goods to fulfil _! obligations ( di/ribution w\ld greatly c\nt]act & s(t5 exi/+ inju/ice1 inequality1 & suff]+4 ,h5ce1 b5evol5t giv+ des]ves a place 9 any complete /atem5t ( proposals = a bett] di/ribution ( weal?4 ,moreov]1 we are n likely to make great advances on ! road ( /rict ju/ice until we acquire san] conceptions ( welf>e1 & a m effective notion ( bro!rly love4 ,s long z m5 put ! s5ses above ! s\l1 !y w be unable to see cle>ly :at is ju/ice1 & unwill+ to practise ! little t !y are able to see4 ,^? :o exagg]ate ! value ( s5se gratifications _c be truly *>itable1 & ^? :o are n truly *>itable _c p]=m adequate ju/ice4 ,! a*ievem5t ( social ju/ice requires n m]ely *anges 9 ! social me*anism1 b a *ange 9 ! social _s1 a re=mation 9 m5's he>ts4 ,to ?is end no?+ c\ld be m imm$iately helpful ?an a compreh5sive recognition ( ! /ew>d%ip ( weal?1 & ! duty ( di/ribut+ sup]flu\s goods4 ,,ref]5ces ,,on ,,section ,,iii ,,ely3 ,monopolies & ,tru/s4 ,macmillan2 #aijj4 ,,van ,,hise3 ,conc5tration & ,control4 ,macmillan2 #aiab4 ,,/ev5s3 ,indu/rial ,comb9ations & ,tru/s4 ,macmillan2 #aiac4 ,,russell3 ,bus9ess1 ! ,he>t ( ! ,nation4 ,john ,lane2 #aiaa4 ,,g>riguet3 ,rgime du ,travail4 ,p>is2 #aiji4 ,! ,social ,value ( ! ,gospel4 ,/4 ,l\is2 #aiaa4 ,,hobson3 ,"w & ,weal?1 a ,human ,valuation4 ,macmillan2 #aiad4 ,,we/3 ,! ,inh]itance ,tax4 ,new ,york2 #aijh4 ,,seligman3 ,progressive ,taxation4 ,pr9ceton2 #aijh4 ,! ,income ,tax4 ,new ,york2 #aiac4 ,,b\quillon3 ,de ,virtutibus ,!ologicis4 ,brugis2 #ahij4 ,also1 ! works ( ,taussig1 ,devas1 ,hobson1 ,anto9e1 ,pes*1 ,c>v]1 ,v]me]s*1 ,ne>+1 & ,k+ :i* are cit$ 9 connection ) ! introductory *apt]4 ,,footnotes3 #bja ,summa ,!ologica1 #b;a4 #b;ae41 q4 #ff1 a4 #c4 #bjb ,patrologia ,graeca1 vol4 #ca1 cols4 #bge1 #bgh4 #bjc ,patrologia ,lat9a1 vol4 #cg1 col4 #aibb4 #bjd ,patrologia ,lat9a1 vol4 #ad1 col4 #gdg4 #bje ,patrologia ,lat9a1 vol4 #gg1 col4 #hg4 ,^! & sev]al o!r extracts ( l t5or may be f\nd 9 ,ryan's ,alleg$ ,socialism ( ! ,*ur* ,fa!rs1 *4 i2 ,/4 ,l\is1 #aiac4 #bjf ,op4 cit41 #b;a4 #b;ae41 q4 #ff1 a4 #g4 #bjg ,encyclical1 ,on ! ,condition ( ,lab\r1 ,may #ae1 #ahia4 #bjh ,encyclical1 ,on ,socialism1 ,communism1 ,nihilism1 ,dec4 #bh1 #ahgh4 #bji ,op4 cit41 #b;a4 #b;ae41 q4 #cb1 a4 #a4 #baj ,idem1 q4 #ff1 a4 #g4 #baa ,a compreh5sive1 ?\gh brief1 discussion ( ?is "q & num]\s ref]5ces are conta9$ 9 ,b\quillon1 ,de ,virtutibus ,!ologicis1 pp4 #ccb-cdh4 ,:5 ,pope ,leo ,,xiii decl>$ t ! ri* are oblig$ to di/ribute out ( _! sup]fluity1 he did n mean t !y are free to give only a portion !re(4 ,! p>ticle de 9 8 /atem5t1 (ficium e/ de eo quod sup]at gratific>i indig5tibus1 is n correctly translat$ by "s4 ,x means r out (1 f1 or )2 s t ! afflu5t are comm&$ to devote _! sup]flu\s goods indef9itely to ! relief ( ! ne$y4 ,9 ! ,encyclical1 ,quot ,apo/olici ,mun]is1 he us$ ! expression1 gravissimo divites urget praecepto ut quod sup]e/ paup]ibus tribuant1 :i* cle>ly decl>es ! duty ( di/ribut+ all4 #bab ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 pp4 #bbd-bbf4 ,,section ,,iv ,,! ,,moral ,,aspect ,,( ,,wages ,,*apt] ,,xxii ,,"s ,,unacceptable ,,!ories ,,( ,,wage-,,ju/ice ,x may be t we are n m]ely *as+ a w-o'-!-wisp :5 we are hunt+ = a reasonable wage1 b we are at any rate seek+ ! unatta9able4 ,?us wrote ,pr(essor ,frank ,haight ,dixon 9 a pap] read at ! tw5ty-sev5? annual meet+ ( ! ,am]ican ,economic ,association1 ,decemb]1 #aiad4 ,:e!r he reflect$ ! op9ion ( ! majority ( ! economi/s1 he at lea/ gave expression to a ?\ght t has frequ5tly sugge/$ itself to e "o :o has gone into ! wage "q free f prejudices & preconceiv$ !ories4 ,"o ( ! mo/ palpable indications ( ! difficulty to :i* ,pr(essor ,dixon ref]s is ! numb] ( doctr9es conc]n+ wage ju/ice t h be5 labori\sly built up dur+ ! ,*ri/ian era1 & t h fail$ to approve !mselves to ! majority ( /ud5ts & ?9k]s4 ,9 ! pres5t *apt] ! attempt is made to set =? "s ( ! mo/ important ( ^! doctr9es1 & to %[ :]e9 !y are defective4 ,!y c all be gr\p$ "u ! foll[+ heads3 ,! ,prevail+-,rate ,!ory2 ,ex*ange-,equival5ce ,!ories2 & ! ,productivity ,!ories4 ,i4 ,,! ,,prevail+-,,rate ,,!ory ,?is is n s mu* a sy/ematic doctr9e z a rule ( exp$i5cy devis$ to meet concrete situations 9 ! abs5ce ( any bett] guid+ pr9ciple4 ,bo? its basis & its nature are well exemplifi$ 9 ! foll[+ extract f ! ,report ( ! ,bo>d ( ,arbitration 9 ! ,matt] ( ! ,controv]sy ,betwe5 ! ,ea/]n ,railroads & ! ,bro!rhood ( ,locomotive ,eng9e]s3#bac ,possibly !re %\ld be "s !oretical relation = a giv5 bran* ( indu/ry betwe5 ! am\nt ( ! income t %\ld g to lab\r & ! am\nt t %\ld g to capital2 & if ?is "q 7 decid$1 a scale ( wages might be devis$ = ! diff]5t classes ( employs :i* w\ld det]m9e ! am\nt rightly absorb$ by lab\r4444 ,?us f>1 h[ev]1 political economy is unable to furni% su* a pr9ciple z t sugge/$4 ,!re is no g5]ally accept$ !ory ( ! division betwe5 capital & lab\r4444 ,:at1 !n1 is ! basis ^u :i* a judgm5t may be pass$ z to :e!r ! exi/+ wage scale ( ! eng9e]s 9 ! ,ea/]n ,di/rict is fair & reasonable8 ,x seems to ! ,bo>d t ! only practicable basis is to comp>e ! rates & e>n+s ( eng9e]s 9 ! ,ea/]n ,di/rict ) ^? ( eng9e]s 9 ! ,we/]n & ,s\!rn ,di/ricts1 & ) ^? ( o!r classes ( railway employs4 ,six ( ! sev5 m5 compos+ ?is bo>d ( arbitration subscrib$ to ?is /atem5t4 ,( ! six "o is ! presid5t ( a great /ate univ]sity1 ano!r is a successful & l>ge-m9d$ m]*ant1 ! ?ird is a great build+ contractor1 ! f\r? is a di/+ui%$ lawy]1 ! fif? is a prom95t magaz9e editor1 & ! six? is a railway presid5t4 ,! diss5t+ memb] repres5t$ ! employs4 ,s9ce ! majority c\ld n f9d 9 any g5]ally accept$ !ory a pr9ciple to det]m9e ! prop] division ( ! product betwe5 capital & lab\r1 !y 7 p]haps ju/ifi$ 9 fall+ back ^u ! practical rule t !y adopt$4 ,n 9 ,h>mony ) ,ju/ice ,f ! viewpo9t ( ju/ice1 h[ev]1 ?is rule or /&>d is utt]ly inadequate4 ,x is susceptible ( two int]pretations4 ,wages prevail+ else:]e1 may mean ei!r ! highe/ rates or ^? mo/ frequ5tly occurr+4 ,accord+ to ! latt] und]/&+1 only ^? wages :i* 7 bel[ ! majority rates %\ld be rais$1 :ile all ^? above t level ought to be l[]$4 ,9 almo/ all cases ?is w\ld mean a r$uction ( ! highe/ wages1 z ^! are usually paid only to a m9ority ( ! work]s ( any grade4 ,! adoption ( ! highe/ exi/+ rates z a /&>d w\ld involve no positive losses1 b x w\ld set a rigid limit to all possible ga9s 9 ! future4 ,accord+ to ei!r int]pretation ( ! prevail+ rate1 ! increases 9 wages :i* a p[]ful lab\r union seeks to obta9 are unju/ until !y h be5 e/abli%$ z ! prevail+ rates4 ,?us1 ! attorney = ! /reet railways ( ,*icago diss5t$ f ! increases 9 wages aw>d$ to ! employs by ! majority ( ! bo>d ( arbitration 9 ! summ] ( #aiae because1 ^! m5 are already paid n only a fair wage b a lib]al wage1 :5 ! wages 9 ! same employm5t & ! liv+ conditions 9 o!r l>ge cities are tak5 into consid]ation1 or :5 comp>ison is made ( ^! m5's annual e>n+s ) ! e>n+s 9 any comp>able l9e ( "w 9 ! city ( ,*icago4#bad ,9 o!r words1 ! dom9ant ?+ is always ! "r ?+4 ,ju/ice is det]m9$ by ! prepond]ance ( economic =ce4 ,n[1 a rule su* z ?is1 :i* condemns improvem5t until improvem5t has someh[ become g5]al1 :i* puts a premium ^u physical & intellectual /r5g?1 & :i* disreg>ds entirely ! moral claims ( human ne$s1 ef=ts1 & sacrifices1 is obvi\sly n an adequate measure ( ei!r reason or ju/ice4 ,& we may well d\bt t x w\ld be =mally accept$ z su* by any compet5t & dis9t]e/$ /ud5t ( indu/rial relations4 ,,ii4 ,,ex*ange-,,equival5ce ,,!ories ,accord+ to ^! !ories1 ! det]m9+ factor ( wage ju/ice is to be f\nd 9 ! wage contract4 ,! basic idea is ! idea ( equality1 inasmu* z equality is ! fundam5tal elem5t 9 ! concept ( ju/ice4 ,! pr9ciple ( ju/ice requires t equality %\ld be ma9ta9$ betwe5 :at is ow$ to a p]son & :at is return$ to him1 betwe5 ! k9ds ( treatm5t accord$ to diff]5t p]sons 9 ! same circum/ances4 ,simil>ly x requires t equality %\ld obta9 betwe5 ! ?+s t are ex*ang$ 9 on]\s contracts4 ,an on]\s contract is "o 9 :i* bo? p>ties und]go "s privation1 & nei!r int5ds to conf] a gratuity ^u ! o!r4 ,ea* ex*ang] desires to obta9 ! full equival5t ( ! ?+ t he transf]s4 ,s9ce ea* is equal 9 p]sonal dignity an intr9sic wor? to ! o!r1 ea* has a /rict "r to ?is full equival5t4 ,ow+ to ! ess5tial moral equality ( all m51 no man has a "r to make ( ano!r a m]e in/rum5t to 8 own int]e/s ?r\gh physical =ce or ?r\gh an on]\s contract4 ,m5 h equal rights n only to subsi/ ^u ! e>?1 b to receive b5efits f ! ex*ange ( goods4 ,! ,rule ( ,equal ,ga9s ,! agreem5t betwe5 employ] & employ is an on]\s contract2 h5ce x ought to be made 9 su* t]ms t ! ?+s ex*ang$ w be equal1 t ! remun]ation w be equal to ! lab\r4 ,h[ c ?is equival5ce be det]m9$ & asc]ta9$8 ,n by a direct comp>ison ( ! two objects1 "w & pay1 = _! diff]5ces r5d] !m obvi\sly incomm5surable4 ,"s ?ird t]m1 or /&>d1 ( comp>ison is requir$ 9 :i* bo? objects c f9d expression4 ,"o su* /&>d is individual net advantage4 ,inasmu* z ! aim ( ! lab\r contract is reciprocal ga91 x is natural to inf] t ! ga9s ought to be equal = ! two p>ties4 ,net ga9 is asc]ta9$ by d$uct+ 9 ea* case ! utility transf]r$ f ! utility receiv$2 9 o!r words1 by d$uct+ ! privation f ! gross return4 ,! good receiv$ by ! employ] :5 dim9i%$ by or weigh$ aga9/ ! am\nt t he pays 9 wages %\ld be equal to ! good receiv$ by ! lab\r] :5 dim9i%$ by or weigh$ aga9/ ! inconv5i5ce t he und]goes ?r\gh ! exp5diture ( 8 "t & en]gy4 ,h5ce ! contract %\ld br+ to employ] & employ equal am\nts ( net advantage or satisfaction4 ,plausible z ?is rule may appe>1 x is impracticable1 inequitable1 & unju/4 ,9 ! va/ majority ( lab\r contracts x is impossible to "k :e!r bo? p>ties obta9 ! same quantity ( net advantage4 ,! ga9s ( ! employ] c1 inde$1 be frequ5tly measur$ 9 t]ms ( money1 be+ ! diff]5ce betwe5 ! wages paid to & ! specific product turn$ out by ! lab\r]4 ,9 ! case ( ! lab\r] no su* process ( d$uction is possible2 = advantage & exp5diture are incomm5surable4 ,we _c subtract ! lab\r]'s privation1 t is1 8 exp5diture ( "t & en]gy1 f 8 gross advantage1 t is1 8 wages4 ,h[ c we "k or measure ! net b5efit obta9$ by a man :o %ovels s& t5 h\rs = a wage ( two doll>s8 ,h[ c we d$uct 8 pa9-co/ f or weigh x aga9/ 8 comp5sation8 ,s f> z ! two sets ( advantages are comp>able at all1 ^? ( ! employ w\ld seem to be always great] ?an ^? ( ! employ]4 ,a wage ( sev5ty-five c5ts a day enables ! lab\r] to satisfy ! mo/ important wants ( life4 ,weigh$ aga9/ ?is gross advantage1 8 pa9-co/ ( toil is relatively insignificant4 ,8 net advantage is ! greate/ t a man c enjoy1 ! cont9uation ( 8 exi/5ce4 ,! net advantage receiv$ by ! employ] f su* a wage contract is b a few c5ts1 ! equival5t ( a cig> or two4 ,ev5 if ! wage be rais$ to ! highe/ level yet rea*$ by any wage e>n]1 ! net advantage to ! lab\r]1 namely1 8 livelihood1 w be great] ?an ! net advantage to ! employ] f t s+le contract4 ,moreov]1 ! sum total ( an employ]'s ga9s f all 8 lab\r contracts is less quantitatively ?an ! sum total ( ! ga9s obta9$ by all 8 employs4 ,! latt] ga9s provide = _m livelihoods1 ! =m] = only "o4 ,aga91 no g5]al rate ( wages c\ld be devis$ :i* w\ld enable all ! memb]s ( a lab\r gr\p to ga9 equally4 ,diff]5ces 9 heal?1 /r5g?1 & intellig5ce w\ld cause diff]5ces 9 ! pa9-co/ involv$ 9 a giv5 am\nt ( lab\r2 :ile diff]5ces 9 desires1 /&>ds ( liv+1 & skill 9 sp5d+ w\ld br+ ab\t diff]5ces 9 ! satisfactions d]iv$ f ! same comp5sation4 ,f9ally1 v>i\s employ]s w\ld obta9 v>i\s money ga9s f ! same wage outlay1 & v>i\s advantages f ! same money ga9s4 ,h5ce if ! rule ( equality ( net advantages 7 practicable x w\ld be inequitable4 ,x is also fundam5tally unju/ because x ignores ! moral claims ( ne$s1 ef=ts1 & sacrifices z reg>ds ! lab\r]4 ,z we h se5 9 ! *apt] on pr(its 9 competitive conditions1 & z we %all h occasion to recognise aga9 9 a lat] *apt]1 no canon or s*eme ( di/ributive ju/ice is acceptable t does n give adequate consid]ation to ^! fundam5tal attributes ( human p]sonality4 ,! ,rule ( ,free ,contract ,ano!r =m ( ! ex*ange equival5ce !ory w\ld disreg>d ! problem ( equality ( ga9s1 & assume t ju/ice is realis$ :5ev] ! contract is free f =ce or fraud4 ,9 su* circum/ances bo? p>ties ga9 some?+1 & presumably are satisfi$2 o!rwise1 !y w\ld n ent] ! contract4 ,probably ! majority ( employ]s reg>d ?is rule z ! only available measure ( practicable ju/ice4 ,! majority ( economi/s likewise subscrib$ to x dur+ ! fir/ half ( ! n9ete5? c5tury4 ,9 ! words ( ,h5ry ,sidgwick1 ! tea*+ ( ! political economi/s po9t$ to ! conclusion t a free ex*ange1 )\t fraud or co]cion1 is also a fair ex*ange4#bae ,app>5tly ! economi/s bas$ ?is tea*+ on ! assumption t competition 0 free & g5]al among bo? lab\r]s & employ]s4 ,9 o!r words1 ! rule z und]/ood by !m 0 probably id5tical ) ! rule ( ! m>ket rate1 :i* we %all exam9e pres5tly4 ,x is n at all likely t ! economi/s "h ref]r$ to w\ld h giv5 _! moral approval to ^? free contracts 9 :i* ! employ] pays />vation wages because he takes advantage ( ! ignorance ( ! lab\r]1 or because he ex]cises ! p[] ( monopoly4 ,no matt] by :om x is or has be5 held1 ! rule ( free contract is unju/4 ,9 ! fir/ place1 _m lab\r contracts are n free 9 any g5u9e s5se4 ,:5 a lab\r] is compell$ by dire necessity to accept a wage t is insuffici5t = a dec5t livelihood1 8 cons5t to ! contract is free only 9 a limit$ & relative way4 ,x is :at ! morali/s call volunt>ium imp]fectum4 ,x is vitiat$ to a sub/antial ext5t by ! elem5t ( fe>1 by ! appreh5sion ( a cruelly evil alt]native4 ,! lab\r] does n agree to ?is wage because he pref]s x to any o!r1 b m]ely because he pref]s x to unemploym5t1 hung]1 & />vation4 ,! agreem5t to :i* he submits 9 ^! circum/ances is no m free ?an ! contract by :i* ! helpless wayf>] gives up 8 purse to escape ! pi/ol ( ! robb]4 ,:ile ! latt] action is free 9 ! s5se t x is *os5 9 pref]5ce to a viol5t dea?1 x does n mean t ! wayf>] gives1 or int5ds to give1 ! robb] ! "r ( own]%ip 9 ! purse4 ,nei!r %\ld ! lab\r] :o f fe> ( a worse evil ent]s a contract to "w = />vation wages1 be reg>d$ z transf]r+ to ! employ] ! full moral "r to ! s]vices :i* he agrees to r5d]4 ,l ! wayf>]1 he m]ely submits to sup]ior =ce4 ,! fact t ! =ce impos$ ^u him is economic in/ead ( physical does n affect ! morality ( ! transaction4 ,to put ! matt] 9 ano!r way1 ! equality :i* ju/ice requires is want+ 9 an oppressive lab\r contract because ( ! inequality exi/+ betwe5 ! contract+ p>ties4 ,9 ! words ( ,pr(essor ,ely3 ,free contract supposes equals beh9d ! contract 9 ord] t x may produce equality4#baf ,aga91 ! rule ( free contract is unju/ because x takes no acc\nt ( ! moral claims ( ne$s4 ,a man ^: only s\rce ( livelihood is 8 lab\r does wrong if he accepts a />vation wage will+ly4 ,su* a contract1 h[ev] free1 is n accord+ to ju/ice because x disreg>ds ! requirem5ts ( reasonable life4 ,no man has a "r to d ?is1 any m ?an he has a "r to p]petrate self mutilation or suicide4 ,! ,rule ( ,m>ket ,value ,a ?ird me?od ( int]pret+ ex*ange equival5ce is bas$ ^u ! concept ( value4 ,lab\r & comp5sation are ?\ght to be equal :5 ! value ( "o is equal to ! value ( ! o!r4 ,!n ! contract is j & ! comp5sation is j4 ,! only objection to ^! propositions is t !y are m]e truisms4 ,:at does value mean1 & h[ is x to be det]m9$8 ,if x is to receive an e?ical signification2 if ! value ( lab\r is to be und]/ood z d5ot+ n m]ely ! value t lab\r w comm& 9 a m>ket1 b ! value t lab\r ought to h1--! /atem5t t wages %\ld equal ! value ( lab\r becomes m]ely an id5tical proposition4 ,all t x tells u is t wages ought to be :at !y ought to be4 ,9 its simple/ economic s5se value d5otes pur*as+ p[]1 or importance 9 ex*ange4 ,z su*1 x may be ei!r individual or social2 t is1 x may mean ! ex*ange importance attribut$ to a commodity by an individual1 or t attribut$ by a social gr\p4 ,9 a competitive society social value is =m$ ?r\gh ! higgl+ ( ! m>ket1 & is express$ 9 m>ket price4 ,n[ individual value is utt]ly impracticable z a measure ( ex*ange equival5ce 9 ! wage contract4 ,s9ce ! value attribut$ to lab\r by ! employ] diff]s 9 ! great majority ( in/ances f t e/imat$ by ! lab\r] himself1 x is impossible to det]m9e :i* is ! true value1 & ! prop] measure ( j wages4 ,! doctr9e t ! social value or m>ket price ( lab\r is also ! e?ical value or j price1 is sometimes call$ ! classical !ory1 inasmu* z x 0 held1 at lea/ implicitly1 by ! majority ( ! e>ly economi/s ( bo? ,france & ,engl&4#bag ,"u competitive conditions1 said ! ,physiocrats1 ! price ( lab\r z ( all o!r ?+s corresponds to ! co/ ( production2 t is1 to ! co/ ( subsi/5ce = ! lab\r] & 8 family4 ,?is is ! natural law ( wages1 & be+ natural x is also j4 ,adam ,smi? likewise decl>$ t competitive wages 7 natural wages1 b he refra9$ f ! explicit ass]tion t !y 7 j wages4 ,nev]!less 8 abid+ & (t-express$ fai? 9 ! !ory t m5's p[]s 7 sub/antially equal1 & 9 ! social b5efic5ce ( free competition1 impli$ t conclusion4 ,al?\gh ! great majority ( 8 foll[]s d5i$ t economics _h moral aspects1 & sometimes ass]t$ t !re 0 no su* ?+ z j or unju/ wages1 _! tea*+ t5d$ to convey ! ?\ght t competitively fix$ wages 7 m or less 9 accordance ) ju/ice4 ,z not$ above1 _! belief 9 ! efficacy ( competition l$ !m to ! inf]5ce t a free contract is also a fair contract4 ,by a free contract !y meant = ! mo/ "p "o t is made 9 ! op5 m>ket1 t is gov]n$ by ! =ces ( supply & dem&1 & t1 consequ5tly1 expresses ! social economic value ( ! ?+s ex*ang$4 ,all ! objections t h be5 br\ght aga9/ ! rule ( ! prevail+ rate apply ev5 m /rongly to ! doctr9e ( ! m>ket rate4 ,! =m] takes z a /&>d ! scale ( wages mo/ frequ5tly paid 9 ! m>ket1 :ile ! latt] approves any scale t obta9s 9 any gr\p ( lab\r]s or section ( ! m>ket4 ,bo? accept z ! ultimate det]m9ant ( wage ju/ice ! prepond]ance ( economic =ce4 ,nei!r gives any consid]ation to ! moral claims ( ne$s1 ef=ts1 or sacrifices4 ,unless we are to id5tify ju/ice ) p[]1 might ) "r1 we mu/ reg>d ^! objections z irrefutable1 & ! m>ket value doctr9e z unt5able4 ,! ,m$ival ,!ory ,ano!r ex*ange-equival5ce !ory :i* turns ^u ! concept ( value is t f\nd 9 ! pages ( ! m$ival canoni/s & !ologians4 ,b x int]prets value 9 a diff]5t s5se f t :i* we h j consid]$4 ,z ! measure ( ex*ange equival5ce ! m$ival !ory takes objective value1 or true value4 ,h[ev]1 ! propon5ts ( ?is view did n =mally apply x to wage contracts1 nor did !y discuss sy/ematically ! "q ( j wages4 ,!y 7 n call$ ^u to d ?is2 = !y 7 n confront$ by any consid]able class ( wage e>n]s4 ,9 ! c\ntry ! numb] ( p]sons :o got _! liv+ exclusively z employs 0 extremely small1 :ile 9 ! t[ns ! work+ class 0 compos$ ( indep5d5t produc]s :o sold _! w>es in/ead ( _! lab\r4#bah ,! "q ( fair comp5sation = ! t[n work]s 01 !re=e1 ! "q ( a fair price = _! products4 ,! latt] "q 0 discuss$ by ! m$ival writ]s =mally1 & 9 great detail4 ,?+s ex*ang$ %\ld h equal values1 & commodities %\ld always sell = ! equival5t ( _! values4 ,by :at rule 0 equality to be measur$ & value det]m9$8 ,n by ! subjective appreciations ( ! ex*ang]s1 = ^! w\ld sometimes sanction ! mo/ flagrant extortion4 ,7 no o!r help available1 ! />v+ man w\ld give all he possess$ = a loaf ( bread4 ,! unscrupul\s speculator c\ld monopolise ! supply ( food/uffs1 & give !m an exorbitantly high value :i* pur*as]s w\ld accept & pay = r ?an g hungry4 ,h5ce we f9d ! m$ival writ]s seek+ a /&>d ( objective value :i* %\ld atta* to ! commodity itself1 n to ! v>y+ op9ions ( buy]s & sell]s4 ,9 ! ?irte5? c5tury ,alb]tus ,magnus#bai & ,?omas ,aqu9as#bbj decl>$ t ! prop] /&>d 0 to be f\nd 9 lab\r4 ,a h\se is wor? z _m %oes z ! lab\r embodi$ 9 ! latt] is conta9$ 9 ! lab\r embodi$ 9 ! =m]4 ,x is wor?y ( note t ! diagram :i* ,alb]tus ,magnus pres5ts to illu/rate ?is =mula ( value & ex*ange _h be5 us$ c5turies be=e by ,ari/otle4 ,x is likewise notewor?y t ?is conception ( e?ical value be>s a /rik+ resemblance to ! !ory ( economic value upheld by ,m>xian ,sociali/s4 ,h[ev]1 nei!r ,ari/otle nor ! ,s*oolm5 ass]t$ t all k9ds ( lab\r _h equal value4 ,n[ ?is m$ival lab\r-measure ( value c\ld be readily appli$ only to cases ( b>t]1 & ev5 !n only :5 ! value ( diff]5t k9ds ( lab\r _h already be5 det]m9$ by "s o!r /&>d4 ,accord+ly we f9d ! m$ival writ]s exp\nd+ & def5d+ a m g5]al int]pretation ( objective or true value4 ,?is 0 ! concept ( normal value2 t is1 ! av]age or m$ium am\nt ( utility attribut$ to goods 9 ! av]age conditions ( life & ex*ange4 ,on ! "o h&1 x avoid$ ! excesses & ! arbitr>9ess ( individual e/imates2 on ! o!r h&1 x did n attribute to value ! *>act]s ( immutability & rigidity4 ,contr>y to ! assumptions ( "s mod]n writ]s1 ! ,s*oolm5 nev] said t value 0 some?+ z fix$ly inh]5t 9 goods z physical & *emical qualities4 ,:5 !y spoke ( intr9sic value1 !y _h 9 m9d m]ely ! con/ant capacity ( c]ta9 commodities to satisfy human wants4 ,ev5 to-day bread has always ! intr9sic pot5cy ( alleviat+ hung]1 reg>dless ( all ! fluctuations ( human appraisem5t4 ,! objectivity t ! m$ival writ]s ascrib$ to value 0 relative4 ,x assum$ normal conditions z aga9/ exceptional conditions4 ,to say t value 0 objective m]ely meant t x 0 n :olly det]m9$ by ! int]play ( supply & dem&1 b 0 bas$ ^u ! /able & univ]sally recognis$ use-qualities ( commodities 9 a society :]e desires1 ne$s1 & ta/es 7 simple & fairly con/ant f "o g5]ation to ano!r4 ,h[ or :]e 0 ?is relatively objective value ( goods to f9d concrete expression8 ,9 ! communis ae/imatio1 or social e/imate1 decl>$ ! canoni/s4 ,objective value & j price w\ld be asc]ta9$ practically ?r\gh ! judgm5t ( upright & compet5t m51 or pref]ably ?r\gh legally fix$ prices4 ,b nei!r ! social e/imate nor ! ord9ances ( lawmak]s 7 au?oris$ to det]m9e values & prices arbitr>ily4 ,!y 7 oblig$ to take into acc\nt c]ta9 objective factors4 ,9 ! ?irte5? & f\rte5? c5turies1 ! factors univ]sally recognis$ z det]m9ative 7 ! utility or use-qualities ( goods1 b especially _! co/ ( production4 ,lat] on1 9 ! sixte5? & sev5te5? c5turies1 risk & sc>city 7 giv5 consid]able prom95ce z value det]m9ants4 ,n[ co/ ( production 9 ! ,middle ,ages 0 ma9ly lab\r co/2 h5ce ! /&>d ( value 0 *iefly a lab\r /&>d4 ,moreov]1 ?is lab\r doctr9e ( true value & equality 9 ex*anges 0 /rongly re9=c$ by ano!r m$ival pr9ciple1 accord+ to :i* lab\r 0 ! supreme if n ! only j title to rew>ds4 ,h[ 0 lab\r co/ to be measur$1 & ! diff]5t k9ds ( lab\r evaluat$8 ,by ! necess>y & cu/om>y exp5ditures ( ! class to :i* ! lab\r] belong$4 ,m$ival society 0 compos$ ( a few def9ite1 easily recognis$1 & relatively fix$ ord]s or grades1 ea* ( :i* _h its own function 9 ! social hi]>*y1 its own /&>d ( liv+1 & its moral "r to a livelihood 9 accordance ) t /&>d4 ,l ! memb]s ( ! o!r ord]s1 ! lab\r]s 7 conceiv$ z entitl$ to live 9 con=mity ) _! cu/om>y class-requirem5ts4 ,f ?is x foll[$ t ! ne$s ( ! lab\r] became ! ma9 det]m9ant ( ! co/ ( production1 & ( ! value & j price ( goods4 ,inasmu* z ! /&>ds ( liv+ ( ! v>i\s divisions ( ! work]s 7 fix$ by cu/om1 & limit$ by ! re/rict$ possibilities ( ! "t1 !y af=d$ a fairly def9ite measure ( value & price1--mu* m def9ite ?an ! /&>d ( g5]al utility4 ,to ,lang5/e91 vice *ancellor ( ! ,univ]sity ( ,p>is 9 ! latt] half ( ! f\rte5? c5tury1 ! matt] seem$ q simple2 = he decl>$ t e "o c\ld det]m9e = himself ! j price ( 8 w>es by ref]r+ to ! cu/om>y ne$s ( 8 rank ( life4#bba ,nev]!less1 class ne$s are n & _c be a /&>d ( ex*ange-equival5ce4 ,!y _c become a crit]ion ( equality1 a common d5om9ator1 a ?ird t]m ( comp>ison1 betwe5 lab\r & wages4 ,:5 we say t a giv5 am\nt ( wages is equal to a giv5 cont5t ( livelihood1 we express a purely economic1 positive1 & ma!matical relation3 :5 we say t a giv5 am\nt ( lab\r is equal to a giv5 cont5t ( livelihood1 we are ei!r talk+ nons5se or express+ a purely e?ical relation2 t is1 decl>+ t ?is lab\r ought to equal ?is livelihood4 ,9 o!r words1 we are introduc+ a f\r? t]m ( comp>ison2 namely1 ! moral wor? or p]sonal dignity ( ! lab\r]4 ,?us1 we h n a s+le & common /&>d to measure bo? lab\r & wages1 & to indicate a relation ( equality betwe5 !m4 ,:ile class ne$s directly measure wages1 !y d n measure lab\r1 ei!r quantitatively1 or qualitatively1 or "u any o!r aspect or category4 ,aside f ?is purely !oretical defect1 ! canoni/ doctr9e ( wage ju/ice 0 fairly satisfactory z appli$ to ! conditions ( ! ,middle ,ages4 ,x assur$ to ! lab\r] ( t day a c]ta9 rude com=t1 & probably z l>ge a proportion ( ! product ( indu/ry z 0 practically atta9able4 ,nev]!less x is n a univ]sally valid crit]ion ( ju/ice 9 ! matt] ( wages2 = x makes no provision = ^? lab\r]s :o des]ve a wage 9 excess ( ! co/ ( liv+ ( _! class2 nor does x furni% a pr9ciple by :i* a :ole class ( work]s c ju/ify _! advance to a high] /&>d ( liv+4 ,x is n suffici5tly ela/ic & dynamic4 ,a ,mod]n ,v>iation ( ! ,m$ival ,!ory ,9 spite ( its fundam5tal impossibility1 ! concept ( ex*ange-equival5ce /ill haunts ! m9ds ( c]ta9 ,ca?olic writ]s4#bbb ,!y /ill /rive to get a =mula to express equality betwe5 lab\r & remun]ation4 ,p]haps ! be/ kn[n & lea/ vuln]able ( ! attempts made along ?is l9e is t def5d$ by ,*>les ,anto9e1 ,s4,j4#bbc ,ju/ice1 he decl>es1 dem&s an objective equival5ce betwe5 wages & lab\r2 & objective equival5ce is det]m9$ & measur$ by two factors4 ,! remote factor is ! co/ ( dec5t liv+ = ! lab\r]2 ! proximate factor is ! economic value ( 8 lab\r4 ,! =m] describes ! m9imum to :i* ! work] is entitl$2 ! latt] comprises p]fect & adequate ju/ice4 ,9 case ( conflict betwe5 ! two factors1 ! fir/ is det]m9ative ( & morally sup]ior to ! second2 t is to say1 no matt] h[ small ! economic value ( lab\r may seem to be1 x nev] c desc5d bel[ ! requisites ( a dec5t livelihood4 ,n[1 nei!r ( ^! /&>ds is 9 h>mony ) ! pr9ciple ( ex*ange-equival5ce1 nor capable ( s]v+ z a satisfactory crit]ion ( wage ju/ice4 ,fa!r ,anto9e argues t lab\r is always ! moral equival5t ( a dec5t livelihood because ! work] exp5ds 8 en]gies1 & gives out a "p ( 8 life 9 ! s]vice ( 8 employ]4 ,unless 8 wage enables ! lab\r] to replace ^! en]gies & cons]ve 8 life1 x is n ! equival5t ( ! s]vice4 ,if ! wage falls %ort ( ?is /&>d ! lab\r] gives m ?an he receives1 & ! contract is ess5tially unju/4 ,9 ?is conception ( equival5ce1 en]gy exp5d$1 in/ead ( co/ ( liv+1 becomes ! t]m ( comp>ison & ! common measure ( lab\r & remun]ation4 ,en]gy exp5d$ is1 h[ev]1 te*nically incapable ( provid+ su* a common /&>d2 = x does n measure bo? relat$ t]ms 9 ! same way4 ,! s]vice r5d]$ to ! employ] is ! effect r ?an ! equival5t ( ! en]gy exp5d$2 & ! comp5sation is a means to ! replacem5t ( ?is en]gy r ?an its =mal equival5t4 ,moreov]1 ! =mula does n ev5 furni% an adequate rational basis = ! claim to a dec5t m9imum wage4 ,a wage :i* is m]ely adequate to ! replacem5t ( exp5d$ en]gy & ! ma9t5ance ( life1 is really inadequate to a dec5t livelihood4 ,su* comp5sation w\ld cov] only physical heal? & /r5g?1 leav+ no?+ = intellectual1 spiritual1 & moral ne$s4 ,z ,fa!r ,anto9e himself admits & cont5ds1 ! latt] ne$s are among ! elem5ts ( a dec5t livelihood1 & a wage :i* does n make reasonable provision = !m fails to comply ) ! m9imum requirem5ts ( ju/ice4 ,! second factor ( objective equival5ce is ev5 m que/ionable ?an ! fir/4 ,to be completely j1 says ,fa!r ,anto9e1 wages mu/ be n m]ely adequate to a dec5t livelihood1 b equival5t to ! economic value ( ! lab\r 7la valeur conomique du travail74 ,?is economic value is det]m9$ objectively by ! co/ ( production1 ! utility ( ! product1 & ! movem5t ( supply & dem&2 subjectively1 by ! judgm5t ( employ]s & employs4 ,9 case ( conflict betwe5 ^! two measures ( value1 & 9 case ( unc]ta9ty conc]n+ ! objective measure1 ! decision ( ! subjective det]m9ant mu/ always prevail4 ,^! /atem5ts are hopelessly ambigu\s & confus+4 ,if ! objective measure ( economic value is to be und]/ood 9 a purely positive way1 x m]ely means ! wages t actually obta9 9 a competitive m>ket4 ,9 ! purely positive or economic s5se1 ! utility ( lab\r is measur$ by :at x w comm& 9 ! m>ket1 ! movem5t ( supply & dem& is likewise reflect$ 9 m>ket wages1 & ! det]m9+ effect ( co/ ( production is also se5 9 ! %>e t ! m>ket aw>ds to lab\r aft] ! o!r factors ( production h tak5 _! portions ( ! product4 ,9 o!r words1 ! economic value ( lab\r is simply its m>ket value4 ,?is1 h[ev]1 is n ,fa!r ,anto9e's mean+2 = he has already decl>$ t ! economic value ( lab\r is nev] less ?an ! equival5t ( a dec5t livelihood1 :]eas we "k t ! m>ket value (t5 falls bel[ t level4 ,9 8 m9d1 !re=e1 economic value has an e?ical signification4 ,x indicates at lea/ ! requisites ( dec5t liv+1 & x embraces m ?an ?is 9 "s cases4 ,:58 & h[ mu* m8 ,let u suppose a bus9ess s prosp]\s t x returns lib]al pr(its to ! employ] & ! prevail+ rate ( int]e/ on ! capital1 & yet %[s a surplus suffici5t to give all ! lab\r]s t5 doll>s a day4 ,is co/ ( production to be int]pret$ "h z all[+ only ! normal rate ( pr(its & int]e/ to ! bus9ess man & ! capitali/1 leav+ ! residue to lab\r8 ,or is x to be und]/ood z requir+ t ! surplus be divid$ among ! ?ree ag5ts ( production8 ,9 o!r words1 is ! economic value ( lab\r 9 su* cases to be det]m9$ by "s e?ical pr9ciple :i* tells be=eh& h[ mu* ! o!r ag5ts ?an lab\r ought to receive8 ,if s1 :at is ?is pr9ciple or =mula8 ,none ( ^! que/ions is satisfactorily answ]$ 9 ,fa!r ,anto9e's pages4 ,!y are all to be solv$ by hav+ rec\rse to ! subjective det]m9ant ( economic value2 namely1 ! judgm5t ( employ]s & employs4 ,?us 8 proximate factor ( ju/ice 9 wages1 8 =mula ( complete z aga9/ m9imum j wages1 turns out to be some?+ entirely subjective1 & m or less arbitr>y4 ,x is 9 no s5se a measure ( ! equival5ce betwe5 "w & pay4 ,moreov]1 x is inadequate z a measure ( ju/ice4 ,%\ld ! majority ( bo? employ]s & employs fix ! economic value ( ! lab\r ( c>p5t]s at five doll>s a day1 !re w\ld be no c]ta9ty t ?is decision 0 correct1 & t ?is figure repres5t$ j wages4 ,%\ld !y det]m9e ^u a rate ( fifty doll>s a day1 we c\ld n be sure t _! decision 0 unju/4 ,und\bt$ly ! comb9$ judgm5t ( employ]s & employs w set a fair] wage ?an "o fix$ by ei!r p>ty alone1 s9ce x w be less "o-sid$2 b !re is no suffici5t reason = conclud+ t x w be 9 all cases completely j4 ,und\bt$ly employ]s & employs "k :at wages an indu/ry c af=d at prevail+ prices1 on ! assumption t bus9ess ability & capital are to h a c]ta9 rate ( return2 b !re is no c]ta9ty t ! prevail+ prices are fair1 or t ! assum$ rates ( pr(its & int]e/ are fair4 ,9 a ^w1 ! device is too arbitr>y4 ,to sum up ! entire discussion ( ex*ange-equival5ce !ories3 ,_! und]ly+ concept is fundam5tally uns\nd & impracticable4 ,all ( !m involve an attempt to comp>e two entities :i* are utt]ly incomm5surate4 ,!re exi/s no ?ird t]m1 or /&>d1 or objective fact1 :i* w in=m m5 :e!r any rate ( wages is ! equival5t ( any quantity ( lab\r4 ,,iii4 ,,productivity ,,!ories ,! productivity concept ( wage ju/ice appe>s 9 a great v>iety ( =ms4 ,! fir/ ( !m t we %all consid] is advocat$ ma9ly by ! ,sociali/s1 & is usually ref]r$ to z ! !ory ( ! "r to ! :ole product ( lab\r4#bbd ,lab\r's ,"r to ! ,:ole ,product ,we h se5 t ,adam ,smi?'s belief 9 ! normality & b5efic5ce ( free competition w\ld h logically l$ him to ! conclusion t competitive wages 7 j2 & we "k t ?is doctr9e is implicit 9 8 writ+s4 ,on ! o!r h&1 8 !ory t all value is det]m9$ by lab\r w\ld seem to involve ! inf]5ce t all ! value ( ! product belongs to ! lab\r]4 ,z a matt] ( fact1 ,smi? re/rict$ ?is conclusion to primitive & pre-capitali/ societies4 ,app>5tly he1 & 8 disciples 9 an ev5 l>g] degree1 0 m int]e/$ 9 describ+ ! suppos$ b5efic5ce ( competition ?an 9 ju/ify+ ! di/ribution t result$ f ! competitive process4 ,! e>ly ,engli% ,sociali/s 7 m consi/5t4 ,9 #agic ,william ,godw91 :om ,anton ,m5g] calls ! fir/ sci5tific ,sociali/ ( mod]n times1 laid d[n 9 sub/ance ! doctr9e t ! lab\r] has a "r to ! :ole product4#bbe ,9 #ahje ,*>les ,hall =mulat$ & def5d$ ! doctr9e ) great] precision & consi/5cy4#bbf ,9 #ahbd ! doctr9e 0 /at$ m fundam5tally1 sy/ematically1 & completely by ,william ,?ompson4#bbg ,he accept$ ! lab\r !ory ( value laid d[n by ,adam ,smi?1 & =mally d]iv$ !refrom ! e?ical conclusion t ! lab\r] has a "r to ! :ole product4 ,?ompson & 8 foll[]s are only orig9al 9 s f> z !y consid] r5t & int]e/ to be unju/ d$uctions1 :i* violate ! "r ( ! lab\r] to ! :ole product ( 8 lab\r4#bbh ,he d5\nc$ ! laws :i* emp[]$ ! l& own] & ! capitali/ to appropriate value n creat$ by !m1 & gave to ! value ?us appropriat$ ! "n1 surplus value4 ,9 ! use ( ?is t]m he anticipat$ ,k>l ,m>x by sev]al ye>s4 ,8 doctr9es 7 adopt$ & def5d$ by _m o!r ,engli% ,sociali/ writ]s1 & 7 introduc$ into ,france by ! foll[]s ( ,sa9t-,simon4 ,f 8 works1 says ,m5g]1 ! lat] ,sociali/s1 ! ,sa9t-,simonians1 ,pr\dhon1 & above all1 ,m>x & ,rodb]tus1 h directly or indirectly drawn _! op9ions4#bbi ,al?\gh ,sa9t-,simon nev] accept$ ! doctr9e ( ! lab\r]'s "r to ! :ole product1 8 disciples1 p>ticul>ly ,enfant9 & ,baz>d1 taught x implicitly4 ,9 a j social /ate1 !y ma9ta9$1 e "o w\ld be expect$ to lab\r accord+ to 8 capacity1 & w\ld be rew>d$ accord+ to 8 product4#bcj ,p]haps ! mo/ !oretical & extreme /atem5t ( ! !ory t we are consid]+ is f\nd 9 ! writ+s ( ,p4 ,j4 ,pr\dhon4#bca ,he ma9ta9$ t ! real value ( products 0 det]m9$ by lab\r "t1 & t all k9ds ( lab\r %\ld be reg>d$ z equally effective 9 ! value-creat+ process1 & he advocat$ !re=e equality ( wages & sal>ies4 ,= ! realisation ( ?is ideal he drew ! outl9es ( a semi-an>*ic social ord]1 ( :i* ! ma9 feature 0 gratuit\s public cr$it4 ,nei!r 8 !ories nor 8 proposals ev] obta9$ any consid]able numb] ( adh]5ts4 ,a mild] & bett] reason$ =m ( ! !ory 0 set =? by ,k>l ,j4 ,rodb]tus4#bcb ,pr(essor ,wagn] calls him1 ! fir/1 ! mo/ orig9al1 & ! bolde/ repres5tative ( sci5tific ,socialism 9 ,g]many4 ,yet1 z ,m5g] po9ts out1 ,rodb]tus d]iv$ _m ( 8 doctr9es f ,pr\dhon & ! ,sa9t-,simonians4 ,he admitt$ t 9 a capitali/ society ! value ( commodities does n always correspond to ! lab\r embodi$ 9 !m1 & t diff]5t k9ds ( lab\r are productive 9 diff]5t degrees4 ,!re=e1 he _h rec\rse to ! concept ( a normal1 or av]age1 day's lab\r 9 any gr\p1 & w\ld h ! v>i\s memb]s ( ! gr\p remun]at$ ) ref]5ce to ?is /&>d4 ,?is 0 to be br\ght ab\t by a c5tralis$ organisation ( indu/ry 9 :i* ! :ole product w\ld ultimately g to lab\r1 & ! %>e ( ! individual work] w\ld be det]m9$ by 8 contribution ( socially necess>y lab\r4 ,al?\gh ,k>l ,m>x adopt$ & =mulat$ 9 8 own t]ms ! !ory t value is det]m9$ by lab\r1 he did n !nce d$uce ! conclusion t lab\r has a "r to ! :ole product4#bcc ,be+ a mat]iali/1 he consi/5tly reject$ conceptions ( ab/ract ju/ice or inju/ice1 rights or wrongs4 ,9 opposition to ! me?ods ( 8 pr$ecessors1 he endeav\r$ to discov] ! hi/orical & positive =ces :i* det]m9$ ! actual di/ribution1 & to d]ive !refrom ! laws t 7 necess>ily prep>+ ! way = a new social ord]4 ,:ile he cont5d$ t r5t receiv]s & int]e/ receiv]s appropriat$ ! surplus value creat$ by lab\r1 he refra9$ f /igmatis+ ?is process z morally wrong4 ,x 0 m]ely a necess>y elem5t ( ! capitali/ sy/em4 ,to call x unju/ 0 9 ,m>x' view to use language )\t mean+4 ,z well might "o speak ( ! inju/ice ( a hurricane or an avalan*e4 ,n ! prea*+ ( ab/ract ju/ice1 b ! inevitable trans=mation ( ! capitali/ into ! collectivi/ organisation ( indu/ry1 w\ld enable lab\r to obta9 its full product4 ,nev]!less1 x is probably true t a majority ( ! foll[]s ( ,m>x h drawn f 8 lab\r !ory ( value ! inf]5ce t all ! value ( ! product belongs by a moral "r to ! lab\r]4 ,s deeply fix$ 9 ! human consci5ce is ! conception ( ju/ice1 & s g5]al is ! conviction ( ! lab\r]'s "r to 8 product1 t mo/ ,sociali/s h n be5 able to ma9ta9 a position ( consi/5t economic mat]ialism4 ,inde$1 ,m>x himself did n always succe$ 9 evad+ ! influ5ce & ! t]m9ology ( ideali/ic conceptions4 ,he frequ5tly ?\ght & spoke ( ! ,sociali/ rgime z n only inevitable b z morally "r1 & ( ! capitali/ sy/em z morally wrong4 ,despite 8 rigid1 mat]iali/ic !oris+1 8 writ+s ab\nd 9 passionate d5unciation ( exi/+ indu/rial evils1 & 9 _m sorts ( unsci5tific e?ical judgm5ts4#bcd ,9 s f> z ! "r to ! :ole product ( lab\r has be5 bas$ ^u ! lab\r !ory ( value1 x may be summ>ily dismiss$ f consid]ation4 ,! value ( products is nei!r creat$ nor adequately measur$ by lab\r2 x is det]m9$ by utility & sc>city4 ,lab\r does1 inde$1 affect value1 inasmu* z x increases utility & dim9i%es sc>city1 b x is n ! only factor t influ5ces ^! categories4 ,natural res\rces1 ! desires & ! pur*as+ p[] ( consum]s det]m9e value q z fundam5tally z does lab\r1 & cause x to v>y out ( proportion to ! lab\r exp5d$ ^u a commodity4 ,to-day !re are probably n _m adh]5ts ( ! "r-to-!-:ole-product doctr9e :o attempt to base x ^u any !ory ( value4 ,! majority appeal to ! simple & obvi\s fact t ! lab\r]s1 toge!r ) ! active directors ( indu/ry1 are ! only human be+s :o exp5d en]gy 9 ! productive process4 ,! only lab\r t ! capitali/ & ! l&[n] p]=m 9 return = ! int]e/ & r5t t !y respectively receive1 consi/s 9 *oos+ ! p>ticul> goods 9 :i* _! money is to be inve/$4 ,z capitali/ & l&[n]1 !y d n p>ticipate 9 ! turn+ out ( products4 ,!y are own]s b n op]ators ( ! factors ( production4 ,9 ! s5se1 !re=e1 ( active ag5ts ! lab\r]s & ! bus9ess m5 are ! only produc]s4 ,:e!r l& & capital %\ld be call$ productive1 :e!r ! product %\ld be reg>d$ z produc$ by l& & capital z well z by lab\r & und]tak+ activity1 is mo/ly a matt] ( t]m9ology4 ,inasmu* z !y are in/rum5tal 9 br++ =? ! product1 l& & capital may prop]ly be designat$ z productive1 b n 9 ! same s5se z lab\r & bus9ess en]gy4 ,! =m] are passive factors & in/rum5tal causes ( ! product1 :ile ! latt] are active factors & orig9al causes4 ,moreov]1 ! =m] are non-rational entities1 :ile ! latt] are attributes ( human be+s4 ,z we h se5 9 =m] *apt]s1 x is impossible to prove t m]e own]%ip ( a productive ?+1 su* z a c[1 a piece ( l&1 or a ma*9e1 necess>ily creates a "r to ei!r ! concrete or ! conv5tional product4 ,! =mula1 res fructificat dom9o1 is n a self evid5t proposition4 ,nor are !re any premises available f :i* ! =mula c be logically & necess>ily d$uc$4 ,on ! o!r h&1 we _c prove conclusively t own]%ip ( productive prop]ty does n give a "r to ! product4 ,:5ce x foll[s t ! own]s ( l& & capital h at lea/ a presumptive claim to take r5t & int]e/ f _! possessions4 ,moreov]1 ^? own]s ( capital :o w\ld n h sav$ money )\t ! hope ( int]e/ h a j claim !reto on acc\nt ( _! sacrifices 9 sav+4 ,w\ld ! ,/ate be ju/ifi$ 9 aboli%+ r5t & int]e/1 & ?us enabl+ lab\r to obta9 ! :ole product8 ,conceivably ?is result might be br\ght ab\t "u ! pres5t sy/em ( private own]%ip1 or ?r\gh ! sub/itution ( collectivism4 ,7 ! *ange made by ! =m] me?od l& & capital w\ld no long] be s\ght or h value on acc\nt ( _! annual rev5ues1 b only z receptacles ( sav+4 ,!y w\ld be desir$ solely z means ( accumulat+ /ores ( goods :i* might be ex*ang$ = articles ( consumption "s "t 9 ! future4 ,:ile we _c e/imate ev5 approximately ! decl9e t w\ld ?us occur 9 ! value ( l& & capital1 we may safely ass]t t x w\ld be consid]able4 ,unless ! proprietors receiv$ adequate comp5sation = ?is loss1 !y w\ld be compell$ to suff] obvi\s & grave inju/ice4 ,any attempt1 h[ev]1 to c>ry out su* a s*eme1 ei!r ) or )\t comp5sation1 w\ld inevitably fail4 ,r5t might be t]m9at$ ?r\gh ! ,s+le ,tax1 b int]e/ c\ld n be aboli%$ by any m]e legal prohibition4 ,nor does ,socialism af=d a way out2 =1 z we h se5 9 a =m] *apt]1 x is an impracticable sy/em4 ,consequ5tly ! !ory ( ! "r to ! :ole product ( lab\r is confront$ by ! f9al objection t its realisation w\ld involve great] evils & inju/ices ?an ^? :i* x seeks to aboli%4 ,f9ally1 ! !ory is radically incomplete4 ,x pr(esses to describe ! requirem5ts ( ju/ice z betwe5 ! l&[n]s & capitali/s on ! "o side1 & ! wage e>n]s on ! o!r2 b x provides no rule = det]m9+ di/ributive ju/ice z betwe5 diff]5t classes ( lab\r4 ,9 none ( its =ms does x provide any compreh5sive rule or pr9ciple to asc]ta9 ! diff]5ce betwe5 ! products ( diff]5t lab\r]s1 & to decide h[ ! product belong+ to any gr\p ( m5 z a :ole %\ld be divid$ among ! individual memb]s4 ,does ! locomotive eng9e] produce m ?an ! section h&1 ! bookkeep] m ?an ! salesman1 ! dit* digg] m ?an ! team/]8 ,^! & c\ntless simil> que/ions are1 f ! nature ( ! productive process1 unansw]able4 ,ev5 if x 7 e?ically acceptable1 ! doctr9e ( ! "r to ! :ole product is hopelessly inadequate4 ,z intimat$ above1 ! notion t if ! lab\r] receives comp5sation accord+ to 8 product he receives j comp5sation1 is "o ( ! mo/ preval5t & fundam5tal concepts 9 ! controv]sy ab\t wage ju/ice4 ,h5ce we f9d x 9 c]ta9 !ories :i* reject ! doctr9e ( ! "r to ! :ole product4 ,accord+ to ^! !ories1 n only ! lab\r] b all ! ag5ts ( production %\ld be rew>d$ 9 proportion to _! productive contributions4 ,in/ead ( ! :ole product1 ! work] ought to receive t portion ( x :i* corresponds to 8 specific productivity1 t is1 t portion ( ! product :i* repres5ts 8 productive influ5ce z comp>$ ) ! productive efficacy ( l&1 capital1 & bus9ess en]gy4 ,cl>k's ,!ory ( ,specific ,productivity ,"o ( ! !ories ref]r$ to 9 ! la/ p>agraph is t :i* has be5 elaborat$ 9 great detail & ) great +5uity by ,pr(essor ,john ,bates ,cl>k4 ,z /at$ by himself 9 ! op5+ s5t5ce ( ! preface to 8 ,di/ribution ( ,weal?1 its ma9 t5et is1 t ! di/ribution ( ! income ( society is controll$ by a natural law1 & t ?is law1 if x work$ )\t friction1 w\ld give to e ag5t ( production ! am\nt ( weal? :i* t ag5t creates4 ,9 a rgime ( p]fect competition1 !re=e1 ! lab\r] w\ld get1 n ! :ole product ( indu/ry1 b ! :ole product due to 8 own ex]tions4 ,x is impossible1 & inde$ unnecess>y1 to ent] ^u an ext5d$ exam9ation ( ?is cont5tion4 ,x w be suffici5t to /ate 9 a summ>y way ! mo/ obvi\s & cog5t objections4 ,)\t mak+ any exam9ation ( ,pr(essor ,cl>k's !ory1 we %\ld expect to f9d x unconv9c+4 ,= ! productive process is by analogy an organic process1 9 :i* e factor requires ! co-op]ation ( e o!r factor 9 ord] to turn out ev5 ! smalle/ portion ( ! product4 ,ea* factor is 9 its own ord] ! cause ( ! :ole product4 ,consequ5tly no physical portion ( ! product c be set aside & designat$ z :olly due to any "o factor4 ,c we n1 h[ev]1 di/+ui% ! proportionate productive influ5ce ex]t$ by ea* factor1 & ! proportion ( ! product :i* repres5ts su* productive influ5ce8 ,?is is ! "q to :i* ,pr(essor ,cl>k addresses himself ) mu* +5uity1 subtlety1 & lab\r1 & to :i* he returns an affirmative answ]4#bce ,he cont5ds t ! am\nt ( product add$ by ! pres5ce ( ! lea/ productive lab\r] 9 a gr\p or e/abli%m5t describes ! productivity ( t & e o!r lab\r] = :om ! man 9 "q c be sub/itut$4 ,nev]!less ?is m>g9al lab\r] _h ! use ( "s capital1 no matt] h[ little or h[ poor2 consequ5tly ! increm5t ( product :i* foll[s 8 activity is p>tly due to capital4 ,x repres5ts some?+ o!r ?an 8 own productive p[]4 ,if 8 wage equals ! value ( ?is increm5t ( product1 he is receiv+ some?+ m ?an 8 specific product4 ,9 ! second place1 ,pr(essor ,cl>k ma9ta9s t ! diff]5ce betwe5 :at a lab\r] produces :5 he uses ! :ole ( a c]ta9 supply ( capital & :at he produces :5 he has %>$ t capital ) ano!r lab\r]1 repres5ts ! specific productivity ( ! rel9qui%$ capital4 ,let u assume t 9 a giv5 case ! diff]5ce is t5 units ( product4 ,:5 ! fir/ man _h ! :ole capital to himself1 ! product 0 "o hundr$ units2 :5 he %>es ! use ( x ) ano!r1 ! total product is "o hundr$ & eighty units4 ,z ! two m5 are assum$ to be equally productive1 ea* has to 8 cr$it n9ety units ( product4 ,work+ ) half ! capital1 ! fir/ man f9ds t ! result+ product is t5 units less ?an :5 he 0 us+ ! :ole capital4 ,h5ce ^! t5 units repres5t ! portion t ! rel9qui%$ capital contribut$ to ! product2 & if ! productivity ( half ! capital is t5 units1 t ( ! :ole capital mu/ be tw5ty units4 ,nev]!less1 ! t5 units by :i* ! product 0 enl>g$ :5 ! man _h ! :ole capital1 did n come into be+ )\t 8 co-op]ation2 h5ce !y _c be entirely attribut$ to ! "o-half %>e ( ! capital4 ,9 o!r words1 ! productivity ( ! rel9qui%$ capital seems to be less ?an t5 units4 ,x also seems to be m ?an t5 units2 = we may assume t if ea* man 7 to use "o-half ! capital indep5d5tly ( ! o!r1 ! result+ total product w\ld be less ?an "o hundr$ & eighty units1 or less ?an n9ety units = ea*4 ,consequ5tly ! diff]5ce betwe5 ! product result+ f ! fir/ man's use ( ! :ole capital & t result+ f 8 use ( half ! capital w\ld be m ?an t5 units2 & ?is diff]5ce is specifically attributable to half ! capital4 ,:o c say :i* ( ^! calculations is correct1 or :e!r ei!r ( !m is correct8 ,! me?od ( asc]ta9+ specific productivity :i* has be5 describ$ 9 ! la/ p>agraph is ?\ght by ,pr(essor ,cl>k to receive confirmation f ! fact t x leads to ! same conclusion z ! fir/ & m direct me?od2 namely1 t ! specific productivity ( lab\r is express$ 9 ! product ( ! m>g9al lab\r]4 ,z a matt] ( fact1 ?is conclusion is yield$ by bo? me?ods2 = ! specific productivity ( ! fir/ lab\r] appe>$ z eighty units1 :i* 0 also ! specific productivity ( ! second lab\r]1 :o 0 ! m>g9al lab\r]4 ,z we saw 9 ! second la/ p>agraph1 h[ev]1 ! m>g9al product is n due to lab\r alone2 h5ce ! v]ification provid$ by ! second me?od is 9 reality a refutation4 ,app>5tly ! majority ( economi/s d n accept ,pr(essor ,cl>k's !ory2 = ( ! n9e :o discuss$ c]ta9 applications ( x at ! n9ete5? annual meet+ ( ! ,am]ican ,economic ,association only "o approv$ x1 ?ree 7 non-committal1 & five express$ _! diss5t4#bcf ,ev5 if ! !ory 7 true its hypo!tical "* w\ld deprive x ( any practical value4 ,x assumes a rgime ( p]fect competition1 b ?is assumption is s seldom realis$ t no rule bas$ ^u x c ?r[ mu* light on ! "q ( ! productivity ( pres5t day lab\r]s4 ,ev5 if x 7 exactly applicable to exi/+ conditions1 t is1 if lab\r]s 7 actually gett+ _! specific products1 ! !ory w\ld n provide u ) a doctr9e ( j wages4 ,z we h se5 9 =m] *apt]s1 productivity is nei!r ! only nor ! highe/ canon ( ju/ice1 :e!r z reg>ds ! comp>ative claims ( capital & lab\r1 or z reg>ds ! claims ( diff]5t lab\r]s4 ,! cont5tion t capital ought to comm& int]e/ because x aids 9 br++ =? ! product1 is nei!r self evid5t nor demon/rable by any process ( reason+4 ,ev5 if we %\ld conc$e t ! capitali/ has a "r to int]e/ by virtue ( ! productivity ( 8 capital1 we %\ld n !re=e conclude t ?is "r is z cog5t z ! correspond+ "r ( ! lab\r]4 ,9 ! =m] case ! productive ag5cy is n human nor active1 b only mat]ial & passive2 & ! recipi5t ( ! product p]=ms no lab\r z capitali/1 b is left free to get a livelihood by p]sonal activity4 ,! productivity ( lab\r diff]s 9 all ^! respects1 & ! diff]5ce is e?ically suffici5t to ju/ify ! claim t ! lab\r] may sometimes h a "r to a "p ( ! specific product ( capital4 ,to sum up ! matt] 9 ! words ( ,pr(essor ,wick]3 ,to h prov$ t ! capitali/ gets 9 int]e/ :at 8 capital produces is n to h prov$ t ! capitali/ gets :at he has e>n$4 ,to h prov$ t ! l&lord gets :at 8 l& produces is n to h prov$ t ! l&lord e>ns 8 di/ributive %>e4444 ,economics is n e?ics2 explanation is n ju/ification4#bcg ,inde$1 ,pr(essor ,cl>k n[h]e explicitly ass]ts t productivity is an adequate rule ( ju/ice4 ,we might raise ! "q1 he says1 :e!r a rule t gives to a man 8 product is 9 ! highe/ s5se j4#bch ,scatt]$ ?r\gh\t 8 volume1 h[ev]1 are _m expressions :i* might fairly be int]pret$ z answ]+ ?is "q 9 ! affirmative4 ,! /atem5ts t di/ribution accord+ to product is a natural law1 & t if ! lab\r] does n get 8 full specific product he is despoil$1 sugge/ if !y d n imply t wages accord+ to productivity is n m]ely ! economic b ! e?ical norm4 ,at any rate1 ! assumption ( productivity z ! adequate canon ( wage ju/ice1 is v widely adopt$1 & is frequ5tly br\ght =w>d to give sanction to insuffici5t rates ( remun]ation4 ,h5ce x has be5 ?\ght well to %[ t ! economic basis ( ! assumption1 i4e41 t ! lab\r] gets :at he produces1 is unprov$ & unprovable4 ,c>v]'s ,modifi$ ,v]sion ( ,productivity ,pr(essor ,c>v] makes no attempt to asc]ta9 or /ate ! exact physical productivity ( lab\r z comp>$ ) t ( capital1 b conf9es 8 att5tion to :at he calls ! economic productivity ( a giv5 unit ( lab\r 9 a giv5 productive process4#bci ,f9d out accurately h[ mu* ! community produces ) 8 ! lab\r]'s help1 ov] & above :at x produces )\t 8 help1 & y h an exact measure ( 8 productivity4#bdj ,by ?is rule we c det]m9e a man's productivity n only z comp>$ ) 8 inactivity 9 relation to a giv5 indu/ry or e/abli%m5t1 b z comp>$ ) ! productivity ( "s o!r man :o might be sub/itut$ = him4 ,?us und]/ood1 productivity expresses ! economic value ( a man to ! indu/rial process 9 :i* he p>ticipates4 ,x det]m9es h[ mu* a man is wor?1 & consequ5tly1 accord+ to our crit]ion ( ju/ice1 h[ mu* a man ought to h z a rew>d = 8 "w4#bda ,:ile ?is conception ( productivity is relatively simple1 & ! canon ( ju/ice bas$ ^u x is some:at plausible1 nei!r is adequate4 ,to _m situations ! productivity te/ is sub/antially inapplicable4 ,! removal f indu/ry ( ! man :o works alone2 = example1 ! indep5d5t %oemak]1 blacksmi?1 tailor1 or f>m]1 w\ld result n 9 a c]ta9 dim9ution1 b 9 ! entire non-appe>ance ( ! product2 & ! removal ( ! capital or tools w\ld h precisely ! same effect4 ,accord+ to ! =m] me?od1 ! lab\r] is to be cr$it$ ) ! :ole product1 & capital ) no?+2 accord+ to ! latt] me?od1 capital produces ev]y?+1 & lab\r no?+4 ,ev5 :5 sev]al lab\r]s are employ$ 9 an e/abli%m5t1 ! te/ is inapplicable to ^? :o are engag$ ^u indisp5sable tasks2 = example1 ! eng9e] 9 ! boil] room ( a small factory1 & ! bookkeep] 9 a small /ore4 ,remove !m1 & y h no product at all2 h5ce a rigid en=cem5t ( ,pr(essor ,c>v]'s te/ w\ld aw>d !m ! :ole product4 ,to be sure1 we c get "s measure ( ! productivity ( ^! m5 by obs]v+ ! effect on ! product :5 inf]ior m5 are put 9 _! places2 b ?is m]ely enables u to tell h[ mu* m !y are wor? ?an o!r m51 n _! total wor?4 ,moreov]1 ev5 ! sub/itution te/ is n always practicable4 ,! attempt to asc]ta9 ! productivity ( a workman ( high te*nical skill by putt+ 9 8 place an utt]ly unskill$ lab\r]1 w\ld n yield v satisfactory results1 ei!r to ! inquiry or to ! indu/ry4 ,9 ! majority ( su* cases1 ! diff]5ce 9 ! result+ product w\ld probably f> exce$ ! diff]5ce 9 ! exi/+ wage rates ( ! two m51 ?us %[+ t ! skill$ work] is gett+ consid]ably less ?an he is economically wor?4 ,9 ! field to :i* x is applicable1 namely1 t ( m or less unspecialis$ lab\r 9 l>ge e/abli%m5ts1 ,pr(essor ,c>v]'s !ory violates "s ( ! mo/ fundam5tal conceptions ( ju/ice & humanity4 ,he admits t x takes no acc\nt ( ! lab\r]'s ef=ts1 sacrifices1 or ne$s1 & t :5 unskill$ lab\r becomes too pl5tiful1 ! value ( ! product may fall bel[ ! co/ ( support+ a dec5t /&>d ( liv+4 ,:ile he looks ) "s sympa?y ^u ! dem& = a m9imum wage ( two doll>s p] day1 he cont5ds t unless ! lab\r] really e>ns t am\nt1 "s o!r man w be paid less ?an he e>ns1 :i* w\ld be unju/4 ,to e>n two doll>s a day means1 9 ,pr(essor ,c>v]'s t]m9ology1 to add t mu* value to ! product ( ! e/abli%m5t 9 :i* ! lab\r] is employ$2 = ?is is ! measure ( ! lab\r]'s productivity4 ,if all ! m5 :o are n[ gett+ less ?an two doll>s a day are receiv+ ! full value ( _! product1 & if all ! o!r work]s are likewise giv5 ! full value ( _! product1 an increase 9 ! remun]ation ( ! =m] w mean a d$uction f ! comp5sation ( ! latt]4 ,^! conclusions ( e?ical pessimism are extremely vuln]able4 ,z we h %[n 9 *apt] xvi1 ef=ts1 sacrifices1 & ne$s are sup]ior to productivity z claims to rew>d1 & mu/ be giv5 due consid]ation 9 any j s*eme ( di/ribution4 ,pr(essor ,c>v] w\ld leave !m out ( acc\nt entirely4 ,9 ! second place1 x is n always nor necess>ily ev] true t to raise ! wages ( ! poore/ paid lab\r]s w mean to l[] ! remun]ation ( ^? :o are bett] paid4 ,_m work]s1 p>ticul>ly wom51 are n[ receiv+ less ?an ! measure ( _! productivity1 less ?an !y e>n1 less ?an _! wor? to ! employ]1 less ?an he w\ld be will+ to pay r ?an g )\t _! s]vices4 ,pr(essor ,c>v] w\ld1 ( c\rse1 n d5y t ! wages ( all su* lab\r]s c\ld be rais$ )\t affect+ ! remun]ation ( o!r work]s4 ,ev5 :5 ! poore/ paid class is receiv+ all t its memb]s are at pres5t wor? to ! employ]1 an increase 9 _! comp5sation w\ld n necess>ily come out ( ! fund available = ! bett] paid4 ,x c\ld be d$uct$ f excessive pr(its & int]e/2 = we "k well t 9 _m indu/ries competition does n automatically keep d[n ^! %>es to ! m9imum necess>y to reta9 ! s]vices ( bus9ess ability & capital4 ,x c\ld be provid$ to "s ext5t out ( ! enl>g$ product t w\ld result f improvem5ts 9 ! productive process1 & f ! increas$ effici5cy ( ^? work]s ^: wages _h be5 rais$4 ,f9ally1 ! increas$ remun]ation c\ld be d]iv$ f increas$ prices4 ,:5 we speak ( ! unskill$ lab\r] z gett+ all t he produces1 or all t he e>ns1 we ref] n to 8 concrete product1 b to ! value ( t product1 to ! sell+ price ( ! product4 ,nei!r ?is price1 nor any o!r exi/+ price1 has any?+ ab\t x t is ei!r economically or e?ically sacr$4 ,9 a competitive m>ket curr5t prices are fix$ by ! =ces ( supply & dem&1 :i* (t5 involve ! exploitation ( ! weak2 9 a monopoly m>ket !y are set by ! desires ( ! monopoli/1 :i* are likewise de/itute ( moral validity4 ,h5ce a m9imum wage law :i* w\ld raise ! price & value ( ! product suffici5tly to provide liv+ wages = ! unskill$ work]s1 ?us increas+ _! productivity & enabl+ !m to e>n ! legal wage1 w\ld nei!r violate ! pr9ciples ( ju/ice1 nor necess>ily dim9i% ! comp5sation ( any o!r lab\r+ gr\p4 ,to be sure1 ! increas$ prices might be foll[$ by su* a less5+ ( dem& = ! product z to dim9i% employm5t2 b ?is is ano!r matt] :i* has no direct be>+ on ei!r ! economic or ! e?ical phases ( productivity & e>n+ p[]4 ,& ! disadvantages involv$ 9 ! supposition ( a r$uc$ volume ( employm5t may possibly be n s =midable socially z ^? :i* accompany a l>ge volume ( insuffici5tly paid occupations4 ,?is "q w receive fur!r consid]ation 9 a lat] *apt]4 ,9 ! meantime1 we conclude t ,pr(essor ,c>v]'s !ory or rule is inapplicable to a l>ge "p ( ! indu/rial field1 & t :]e x does apply x frequ5tly runs c\nt] to "s ( ! fundam5tal pr9ciples ( di/ributive ju/ice4 ,,footnotes3 #bac ,page #dg4 #bad ,! ,*icago ,daily ,tribune1 ,july #ag1 #aiae4 #bae ,article on ,political ,economy & ,e?ics1 9 ,palgrave's ,diction>y ( ,political ,economy4 #baf ,prop]ty & ,contract1 ,,ii1 #fjc4 #bag ,cf4 ,l',ide du ,ju/e ,salaire1 by ,lon ,poli]1 *4 iii4 ,p>is2 #aijc4 #bah ,poli]1 op4 cit41 pp4 #cc1 sq42 ,ryan1 ,a ,liv+ ,wage1 pp4 #bf1 sq4 #bai ,e?ica1 lib4 #e1 tr4 #b1 cap4 #e4 #bbj ,comm5t4 ad ,e?41 ,,xxi1 #agb4 #bba ,cf4 ,poli]1 op4 cit41 pp4 #ff-ge2 ,ryan1 op4 cit1 pp4 #ic1 #id4 #bbb ,cf4 ,poli]1 op4 cit41 pp4 #ib-ie4 #bbc ,c\rs d'conomie ,sociale1 pp4 #eih1 sq4 #bbd ,poli]1 op4 cit41 pp4 #bai-cei2 ,m5g]1 ,! ,"r to ! ,:ole ,produce ( ,lab\r2 ,engli% ,translation4 ,london2 #ahii4 #bbe ,enquiry ,conc]n+ ,political ,ju/ice4 #bbf ,on ! ,effects ( ,civilisation on ! ,p ( ,european ,/ates4 #bbg ,an ,inquiry ,into ! ,pr9ciples ( ! ,di/ribution ( ,weal? ,mo/ ,conducive to ,human ,happ9ess4 #bbh ,m5g]1 op4 cit41 p4 #ef4 #bbi ,op4 cit41 p4 #ea4 #bcj ,cf4 ,m5g]1 op4 cit41 pp4 #fb-gc4 #bca ,qu' e/-ce que la proprit ou re*]*es sur la pr9cipe du droit et du g\v]nm5t4 #ahdj4 #bcb ,zur ,erk5tniss uns]] /aatswir?s*aftli*5 ,zu/&e1 #ahdb4 #bcc ,das ,kapital1 #ahfg4 #bcd ,cf4 ,poli]1 op4 cit41 pp4 #ceb1 sq4 #bce ,cf4 especially *ap4 xxi1 ,! ,!ory ( ,economic ,causation4 #bcf ,proce$+s1 pp4 #bc-ed4 #bcg ,proce$+s ( ! #bb;d ,annual ,meet+ ( ! ,am]ican ,economic ,association1 pp4 #afj1 #afa4 #bch ,op4 cit41 p4 #h4 #bci ,essays 9 ,social ,ju/ice2 especially *4 vii4 #bdj ,op4 cit41 pp4 #ahg1 #ahh4 #bda ,op4 cit41 p4 #bja4 ,,*apt] ,,xxiii ,,! ,,m9imum ,,( ,,ju/ice3 ,a ,,liv+ ,,wage ,al?\gh ! pr9ciple ( ne$s is some:at prom95t among ! !ories ( wage ju/ice1 x receiv$ only incid5tal m5tion 9 ! la/ *apt]4 ,consid]$ z a compreh5sive rule1 ?is pr9ciple has be5 def5d$ ) less en]gy & def9it5ess ?an mo/ ( ! o!r canons4 ,consid]$ z a p>tial rule1 x is s\nd & fundam5tal1 & !re=e c\ld n h be5 class$ among !ories t are unacceptable4 ,! ,pr9ciple ( ,ne$s ,_m ( ! e>ly ,fr5* ,sociali/s ( ! ,utopian s*ool advanc$ ?is =mula ( di/ribution3 ,f ea* accord+ to 8 p[]s2 to ea* accord+ to 8 ne$s4 ,x 0 also put =w>d by ! ,g]man ,sociali/s 9 ! ,go?a ,program 9 #ahge4 ,:ile !y h n giv5 to ?is /&>d =mal recognition 9 _! m rec5t plat=ms1 ,sociali/s g5]ally reg>d x z ! ideal rule = ! di/ant future4#bdb ,! difficulties confront+ x are s great & s obvi\s t !y w\ld def] ! introduction ( x to a "t :5 ! op]ation ( _! sy/em w1 !y hope1 h eradicat$ ! hi/orical human qualities ( laz9ess & selfi%ness4 ,to adopt ne$s z ! sole rule ( di/ribution w\ld mean1 ( c\rse1 t ea* p]son %\ld be rew>d$ 9 proportion to 8 wants & desires1 reg>dless ( 8 ef=ts or ( ! am\nt t he _h produc$4 ,! m]e /atem5t ( ! proposal is suffici5t to refute x z reg>ds ! m5 & wom5 ( :om we h any k4 ,9 addition to ?is objection1 !re is ! insup]able difficulty ( measur+ fairly or accurately ! relative ne$s ( any gr\p compos$ ( m51 wom51 & *ildr54 ,7 ! memb]s' own e/imates ( _! ne$s accept$ by ! di/ribut+ au?ority1 ! social product w\ld no d\bt fall f> %ort ( supply+ all4 ,if ! measurem5t 7 made by "s (ficial p]son or p]sons1 ! prospect ( jobb]y & tyranny op5$ up mu/ give ! mo/ fanatical pause4 ,inde$1 ! /&>d ( ne$s %\ld be reg>d$ z a canon ( ,communism r ?an ( ,socialism2 = x implies a l>ge measure ( common life z well z ( common own]%ip1 & pat]nali/ic sup]vision ( consumption z well z collectivi/ managem5t ( production4 ,:ile ! =mula ( ne$s mu/ be flatly reject$ z complete rule ( di/ributive ju/ice1 or ( wage ju/ice1 x is valid & indisp5sable z a p>tial /&>d4 ,x is a p>tial measure ( ju/ice 9 two s5ses3 fir/1 inasmu* z x is consi/5t ) ! admission & op]ation ( o!r pr9ciples1 su* z productivity & sacrifice2 second1 inasmu* z x c be re/rict$ to c]ta9 fundam5tal requisites ( life1 in/ead ( be+ appli$ to all possible human ne$s4 ,x c be made to safegu>d ! m9imum dem&s ( reasonable life1 & !re=e to function z a m9imum /&>d ( wage ju/ice4 ,human ne$s con/itute ! prim>y title or claim to mat]ial goods4 ,none ( ! o!r recognis$ titles1 su* z productivity1 ef=t1 sacrifice1 pur*ase1 gift1 inh]itance1 or fir/ occupancy1 is a fundam5tal reason or ju/ification ( ei!r rew>ds or possessions4 ,!y all assume ! exi/5ce ( ne$s z a pr]equisite to _! validity4 ,if m5 did n ne$ goods !y c\ld n reasonably lay claim to !m by any ( ! specific titles j enum]at$4 ,fir/ comes ! g5]al claim or fact ( ne$s2 !n ! p>ticul> title or me?od by :i* ! ne$s may be conv5i5tly suppli$4 ,:ile ^! /atem5ts may seem elem5t>y & platitud9\s1 _! practical value w be q evid5t :5 we come to consid] ! conflict+ claims t sometimes arise out ( ! cla% betwe5 ne$s & "s ( ! o!r titles4 ,we %all see t ne$s are n m]ely a physical reason or impulse t[>d acquisition & possession1 b a moral title :i* rationalises ! claim to a c]ta9 am\nt ( goods4#bdc ,?ree ,fundam5tal ,pr9ciples ,! validity ( ne$s z a p>tial rule ( wage ju/ice re/s ultimately ^u ?ree fundam5tal pr9ciples reg>d+ man's position 9 ! univ]se4 ,! fir/ is t ,god creat$ ! e>? = ! su/5ance ( all ,8 *ildr52 !re=e1 t all p]sons are equal 9 _! inh]5t claims ^u ! b\nty ( nature4 ,z x is impossible to demon/rate t any class ( p]sons is less important ?an ano!r 9 ! eyes ( ,god1 x is logically impossible = any believ] 9 ,div9e ,provid5ce to reject ?is proposition4 ,! man :o d5ies ,god or ,provid5ce c refuse ass5t to ! second "p ( ! proposition only by refus+ to ackn[l$ge ! p]sonal dignity ( ! human individual1 & ! equal dignity ( all p]sons4 ,inasmu* z ! human p]son is intr9sically sacr$ & morally indep5d5t1 he is end[$ ) ^? inh]5t pr]ogatives1 immunities1 & claims t we call rights4 ,e p]son is an end 9 himself2 none is a m]e in/rum5t to ! conv5i5ce or welf>e ( any o!r human be+4 ,! wor? ( a p]son is some?+ intr9sic1 d]iv$ f )91 n det]m9$ or measurable by ref]5ce to any e>?ly object or purpose )\t4 ,9 ?is respect ! human be+ diff]s inf9itely f1 is inf9itely sup]ior to1 a /one1 a rose1 or a horse4 ,:ile ^! /atem5ts help to illu/rate :at is meant by ! dignity ( p]sonality1 by ! intr9sic wor?1 importance1 sacr$ness ( ! human be+1 !y d n prove ! exi/5ce ( ?is inh]5t juridical quality4 ,pro( 9 ! /rict s5se is irrelevant & impossible4 ,if ! intr9sic & equal moral wor? ( all p]sons be n self evid5t to a man1 x w n approve itself to him ?r\gh any process ( argum5tation4 ,:osoev] d5ies x c also logically d5y m5's equal claims ( access to ! b\nty ( ! e>?2 b he _c escape ! alt]native conclusion t brute =ce1 ex]cis$ ei!r by ! ,/ate or by individuals1 is ! only prop] det]m9ant ( possessions & ( prop]ty4 ,aga9/ ?is mon/r\s cont5tion x is n wor? :ile to (f] a =mal argum5t4 ,! second fundam5tal pr9ciple is t ! inh]5t "r ( access to ! e>? is condition$ ^u1 & becomes actually valid ?r\gh1 ! exp5diture ( useful lab\r4 ,g5]ally speak+ ! fruits & pot5tialities ( ! e>? d n become available to m5 )\t previ\s ex]tion4 ,9 ! sweat ( ?y br[ ?\ %alt eat ?y bread1 is a physical no less ?an a moral comm&m5t4 ,!re are1 inde$1 exceptions3 ! v "y1 ! infirm1 & ! possessors ( a suffici5t am\nt ( prop]ty4 ,! two =m] classes h claims to a livelihood ?r\gh piety & *>ity1 :ile ! ?ird gr\p has at lea/ a presumptive claim ( ju/ice to r5t & int]e/1 & a c]ta9 claim ( ju/ice to ! money value ( _! goods4 ,nev]!less1 ! g5]al condition is t m5 mu/ "w 9 ord] to live4 ,if a man w n "w nei!r %all he eat4 ,= ^? :o refuse to comply ) ?is condition ! inh]5t "r ( access to ! e>? rema9s only hypo!tical & susp5d$4 ,! two =ego+ pr9ciples involve z a coroll>y a ?ird pr9ciple2 ! m5 :o are 9 pres5t control ( ! opportunities ( ! e>? are oblig$ to p]mit reasonable access to ^! opportunities by p]sons :o are will+ to "w4 ,9 o!r words1 possessors mu/ s adm9i/] ! common b\nty ( nature t non-own]s w n f9d x unreasonably difficult to get a livelihood4 ,to put x /ill 9 o!r t]ms1 ! "r to subsi/ f ! e>? implies ! "r to access !reto on reasonable t]ms4 ,:5 any man :o is will+ to "w is d5i$ ! ex]cise ( ?is "r1 he is no long] treat$ z ! moral & juridical equal ( 8 fell[s4 ,he is reg>d$ z inh]5tly inf]ior to !m1 z a m]e in/rum5t to _! conv5i5ce2 & ^? :o exclude him are virtually tak+ ! position t _! rights to ! common gifts ( ! ,creator are inh]5tly sup]ior to 8 bir?right4 ,obvi\sly ?is position _c be def5d$ on gr\nds ( reason4 ,possessors are no m ju/ifi$ 9 exclud+ a man f reasonable access to ! goods ( ! e>? ?an !y w\ld be 9 depriv+ him ( ! lib]ty to move f place to place4 ,! community t %\ld arbitr>ily %ut a man up 9 prison w\ld n violate 8 rights m fundam5tally ?an ! community or ! proprietors :o %\ld %ut him out f ! opportunity ( gett+ a livelihood f ! b\nty ( ! e>?4 ,9 bo? cases ! man dem&s & has a "r to a common gift ( ,god4 ,8 moral claim is z valid to ! "o good z to ! o!r1 & x is z valid to bo? goods z is ! claim ( any ( 8 fell[s4 ,! ,"r to a ,dec5t ,livelihood ,e man :o is will+ to "w has1 !re=e1 an inborn "r to su/5ance f ! e>? on reasonable t]ms or conditions4 ,?is _c mean t all p]sons h a "r to equal am\nts ( su/5ance or income2 = we h se5 on a prec$+ page t m5's ne$s1 ! prim>y title to prop]ty1 are n equal1 & t o!r canons & factors ( di/ribution h to be all[$ "s weight 9 det]m9+ ! division ( goods & opportunities4 ,nev]!less1 !re is a c]ta9 m9imum ( goods to :i* e work] is entitl$ by reason ( 8 inh]5t "r ( access to ! e>?4 ,he has a "r to at lea/ a dec5t livelihood4 ,t is2 he has a "r to s mu* ( ! requisites ( su/5ance z w enable him to live 9 a mann] wor?y ( a human be+4 ,! elem5ts ( a dec5t livelihood may be summ>ily describ$ z3 food1 clo?+1 & h\s+ suffici5t 9 quantity & quality to ma9ta9 ! work] 9 normal heal?1 9 elem5t>y com=t1 & 9 an environm5t suitable to ! protection ( morality & religion2 suffici5t provision = ! future to br+ elem5t>y cont5tm5t1 & security aga9/ sickness1 accid5t1 & invalidity2 & suffici5t opportunities ( recreation1 social int]c\rse1 education1 & *ur*-memb]%ip to cons]ve heal? & /r5g?1 & to r5d] possible 9 "s degree ! ex]cise ( ! high] faculties4 ,on :at gr\nd is x cont5d$ t a work] has a "r to a dec5t livelihood1 z ?us def9$1 r ?an to a b>e subsi/5ce8 ,on ! same gr\nd t validates 8 "r to life1 m>riage1 or any ( ! o!r fundam5tal goods ( human exi/5ce4 ,on ! dignity ( p]sonality4 ,:y is x wrong & unju/ to kill or maim an innoc5t man8 ,because human life & ! human p]son possess intr9sic wor?2 because p]sonality is sacr$4 ,b ! intr9sic wor? & sacr$ness ( p]sonality imply some?+ m ?an security ( life & limb1 & ! mat]ial means ( b>e exi/5ce4 ,! man :o is n provid$ ) ! requisites ( normal heal?1 effici5cy1 & cont5tm5t lives a maim$ life1 n a reasonable life4 ,8 physical condition is n wor?y ( a human be+4 ,fur!rmore1 man's p]sonal dignity dem&s n m]ely ! conditions ( reasonable physical exi/5ce1 b ! opportunity ( pursu+ self p]fection ?r\gh ! h>moni\s developm5t ( all 8 faculties4 ,unlike ! brutes1 he is end[$ ) a rational s\l1 & ! capacity ( indef9ite self improvem5t4 ,a due reg>d to ^! end[m5ts requires t man %all h ! opportunity ( becom+ n only physically /rong]1 b intellectually wis]1 morally bett]1 & spiritually ne>] to ,god4 ,if he is depriv$ ( ^! opportunities he _c realise ! pot5tialities ( 8 nature nor atta9 ! div9ely appo9t$ end ( 8 nature4 ,he rema9s on ! plane ( ! l[] animals4 ,8 p]sonality is violat$ q z fundam5tally z :5 8 body is injur$ or 8 life de/roy$4 ,:ile x is impossible to def9e ) ma!matical precision ! degree ( p]sonal developm5t t is necess>y to satisfy ! claims ( p]sonal dignity1 x is entirely practicable to /ate ) suffici5t def9it5ess ! m9imum conditions ( su* developm5t4 ,!y are t quantity ( goods & opportunities :i* fair-m9d$ m5 w\ld reg>d z indisp5sable to humane1 effici5t1 & reasonable life4 ,! summ>y description ( a dec5t livelihood at ! end ( ! second la/ p>agraph1 w\ld probably be accept$ by all m5 :o really believe 9 ! intr9sic wor? ( p]sonality4 ,! ,claim to a ,dec5t ,livelihood f a ,pres5t ,occupation ,! claim ( a work] to a dec5t livelihood f ! goods ( ! e>? does n always imply a /rict "r to a livelihood f "o's pres5t occupation4 ,to dem& ?is w\ld 9 "s circum/ances be to dem& a livelihood n on reasonable b on unreasonable t]ms2 = ! p]sons 9 control ( ! s\rces c\ld n reasonably be requir$ to provide a dec5t livelihood4 ,_! failure to d s w\ld n con/itute an unreasonable h9drance to ! work]'s access to ! e>? 9 su* circum/ances4 ,9 *apt] xvi we saw t n all bus9ess m5 h a /rict "r to t m9imum ( pr(its :i* is requir$ to yield !m a dec5t livelihood3 fir/1 because ! direction ( indu/ry is n g5]ally ! bus9ess man's only means ( gett+ a liv+2 second1 because ! community1 ! consum]s1 d n reg>d ! pres5ce & activity ( all exi/+ bus9ess m5 z indisp5sable4 ,( c\rse1 ! community is morally b\nd to pay su* prices = goods z w enable all ! necess>y bus9ess m51 :e!r manufactur]s or trad]s1 to obta9 a dec5t livelihood 9 return = _! directive functions2 b x is n oblig$ to provide a livelihood = ^? bus9ess m5 ^: pres5ce is n requir$1 :o c\ld vani% f ! field ( indu/rial direction )\t affect+ ei!r ! supply or ! price ( goods1 & ^: sup]flu\s "* is prov$ by ! fact t !y _c make a livelihood at ! prevail+ prices4 ,!y are 9 ! position ( p]sons :om ! community does n desire to employ z bus9ess m54 ,9 refus+ to pay prices suffici5tly high to provide ^! ineffici5t bus9ess m5 ) a dec5t livelihood1 ! community is n unreasonably h9d]+ _! access to ! common goods ( ! e>?4 ,su* m5 are really dem&+ a livelihood on unreasonable t]ms4 ,! ,lab\r]'s ,"r to a ,liv+ ,wage ,on ! o!r h&1 ! wage e>n]'s claim to a dec5t livelihood is valid1 g5]ally speak+1 9 8 pres5t occupation4 ,9 o!r words1 8 "r to a dec5t livelihood 9 ! ab/ract means 9 ! concrete a "r to a liv+ wage4 ,to pres5t ! matt] 9 its simple/ t]ms1 let u consid] fir/ ! adult male lab\r] ( av]age physical & m5tal ability :o is *>g$ ) ! support ( no "o b himself1 & let u assume t ! indu/rial res\rces are adequate to su* a wage = all ! memb]s ( 8 class4 ,^? :o are 9 control ( ! res\rces ( ! community are morally b\nd to give su* a lab\r] a liv+ wage4 ,if !y fail to d s !y are unreasonably h9d]+ 8 access to a livelihood on reasonable t]ms2 & 8 "r to a livelihood on reasonable t]ms is violat$4 ,! c5tral consid]ation "h is evid5tly ! reasonabl5ess ( ! process4 ,unlike ! bus9ess man1 ! r5t receiv]1 & ! int]e/ receiv]1 ! lab\r] has ord9>ily no o!r means ( livelihood ?an 8 wages4 ,if ^! d n furni% him ) a dec5t subsi/5ce he is depriv$ ( a dec5t subsi/5ce4 ,:5 he has p]=m$ an av]age day's "w1 he has done all t is )9 8 p[] to make good 8 claim to a dec5t livelihood4 ,on ! o!r h&1 ! community is ! b5efici>y ( 8 lab\r1 & desires 8 s]vices4 ,if1 inde$1 ! community w\ld r d )\t ! s]vices ( an individual lab\r] ?an pay him a liv+ wage1 x is morally free to *oose ! =m] alt]native1 precisely z x is ju/ifi$ 9 refus+ to pay a price = groc]ies t w enable an ineffici5t groc] to obta9 liv+ pr(its4 ,:atev] concrete =m ! "r ( su* p]sons to a dec5t livelihood may take1 x is n ! "r to liv+ wages or liv+ pr(its f ! occupations 9 "q4 ,"h1 h[ev]1 we are discuss+ ! lab\r] to :om ! community w\ld r pay a liv+ wage ?an n employ him at all4 ,to refuse su* a "o a liv+ wage m]ely because he c be con/ra9$ by economic pressure to "w = less1 is to treat him unreasonably1 is to deprive him ( access to a livelihood on reasonable t]ms4 ,su* treatm5t reg>ds ! lab\r] z inf]ior to 8 fell[s 9 p]sonal wor?1 z a m]e in/rum5t to _! conv5i5ce4 ,x is an unreasonable di/ribution ( ! goods & opportunities ( ! e>?4 ,obvi\sly !re is no =mula by :i* su* conduct c be ma!matically demon/rat$ z unreasonable2 b ! proposition is z c]ta9 morally z any o!r proposition t is susceptible ( rational def5ce 9 ! field ( di/ribution4 ,no man :o accepts ! ?ree fundam5tal pr9ciples /at$ "s pages back1 c d5y ! "r ( ! lab\r] to a liv+ wage4 ,! man :o does n accept !m mu/ hold t all prop]ty rights are ! arbitr>y creation ( ! ,/ate1 or t !re is no su* ?+ z a moral "r to mat]ial goods4 ,9 ei!r supposition ! di/ribution & possession ( ! e>?'s b\nty are subject entirely to ! arbitram5t ( might4 ,!re is no?+ to be ga9$ by a =mal criticism ( ?is assumption4 ,:at p]sons1 or gr\p1 or au?ority is *>g$ ) ! obligation :i* corresponds to ! "r to a liv+ wage8 ,we h ref]r$ to ! community 9 ?is connection1 b we d n mean ! community 9 its corporate capacity1 i4e41 ! ,/ate4 ,z reg>ds private employm5ts1 ! ,/ate is n oblig$ to pay a liv+ wage1 nor any o!r k9d ( wage1 s9ce x has n assum$ ! wage-pay+ function ) respect to ^! lab\r]s4 ,z protector ( natural rights1 & z ! fundam5tal det]m9] ( indu/rial in/itutions1 ! ,/ate is oblig$ to enact laws :i* w enable ! lab\r] to obta9 a liv+ wage2 b ! duty ( actually provid+ ?is measure ( remun]ation re/s ^u t class :i* has assum$ ! wage-pay+ function4 ,?is is ! employ]s4 ,9 our pres5t indu/rial sy/em1 ! employ] is society's payma/]4 ,he1 n ! ,/ate1 receives ! product out ( :i* all ! ag5ts ( production mu/ be rew>d$4 ,:]e ! lab\r] is engag$ 9 r5d]+ p]sonal s]vices to 8 employ]1 ! latt] is ! only b5efici>y ( ! lab\r]'s activity4 ,9 ei!r case ! employ] is ! only p]son ^u :om ! obligation ( pay+ a liv+ wage c prim>ily fall4 ,if ! ,/ate 7 9 receipt ( ! product ( indu/ry1 ! wage-pay+ fund1 x w\ld naturally be *>g$ ) ! obligation t n[ re/s imm$iately ^u ! employ]4 ,if any o!r class 9 ! community 7 ! own]s ( ! product t class w\ld be "u ?is specific obligation4 ,z ?+s are1 ! employ] is 9 possession ( ! product1 & dis*>ges ! function ( wage pay]2 consequ5tly he is ! p]son :o is requir$ to p]=m ?is function 9 a reasonable mann]4 ,:5 ! ,employ] ,is ,unable to ,pay a ,liv+ ,wage ,evid5tly ! employ] :o _c pay a liv+ wage is n oblig$ to d s1 s9ce moral duties suppose a correspond+ physical capacity4 ,9 su* circum/ances ! lab\r]'s "r to a liv+ wage becomes susp5d$ & hypo!tical1 j z ! claim ( a cr$itor :5 ! debtor becomes insolv5t4 ,let u see1 h[ev]1 precisely :at mean+ %\ld reasonably be giv5 to ! phrase1 inability to pay a liv+ wage4 ,an employ] is n oblig$ to pay a full liv+ wage to all 8 employs s long z t action w\ld deprive himself & 8 family ( a dec5t livelihood4 ,z active director ( a bus9ess1 ! employ] has q z good a "r z ! lab\r] to a dec5t livelihood f ! product1 & 9 case ( conflict betwe5 ! two rights1 ! employ] may take advantage ( t pr9ciple ( *>ity :i* p]mits a man to pref] himself to 8 neighb\r1 :5 ! *oice ref]s to goods ( ! same ord] ( importance4 ,moreov]1 ! employ] is ju/ifi$ 9 tak+ f ! product suffici5t to support a some:at high] scale ( liv+ ?an g5]ally prevails among 8 employs2 = he has become accu/om$ to ?is high] /&>d1 & w\ld suff] a consid]able h>d%ip if compell$ to fall notably bel[ x4 ,x is reasonable1 !re=e1 t he %\ld h ! means ( ma9ta9+ himself & family 9 mod]ate con=mity ) _! cu/om>y /&>d ( liv+2 b x is unreasonable t !y %\ld indulge 9 any?+ l luxuri\s exp5diture1 s long z any ( ! employs fail to receive liv+ wages4 ,suppose t an employ] _c pay all 8 employs liv+ wages & at ! same "t provide ! normal rate ( int]e/ on ! capital 9 ! bus9ess4 ,s f> z ! borr[$ capital is conc]n$1 ! bus9ess man has no *oice2 he mu/ pay ! /ipulat$ rate ( int]e/1 ev5 ?\gh x prev5ts him f giv+ a liv+ wage to all 8 employs4 ,nor c x be reasonably cont5d$ t ! loan capitali/ 9 t case is oblig$ to =ego ! int]e/ due him4 ,he _c be c]ta9 t ?is int]e/ paym5t1 or any "p ( x1 is really necess>y to make up :at is want+ to a complete scale ( liv+ wages4 ,! employ] w\ld be "u great temptation to defraud ! loan capitali/ on ! pretext ( do+ ju/ice to ! lab\r]1 or to conduct 8 bus9ess ineffici5tly at ! exp5se ( ! loan capitali/4 ,anyh[1 ! latt] is "u no obligation to leave 8 money 9 a conc]n t is unable to pay him int]e/ regul>ly4 ,! g5]al rule1 !n1 w\ld seem to be t ! loan capitali/ is n oblig$ to refra9 f tak+ int]e/ 9 ord] t ! employs may h liv+ wages4 ,is ! employ] ju/ifi$ 9 )hold+ ! full liv+ wage f 8 employs to provide himself ) ! normal rate ( int]e/ on ! capital t he has inve/$ 9 ! ent]prise8 ,speak+ g5]ally1 he is n4 ,9 ! fir/ place1 ! "r to any int]e/ at all1 except z a return = g5u9e sacrifices 9 sav+1 is n c]ta9 b only presumptive4#bdd ,consequ5tly x has no su* firm & def9ite basis z ! "r to a liv+ wage4 ,9 ! second place1 ! "r to int]e/1 be x ev] s def9ite & c]ta91 is greatly inf]ior 9 =ce & urg5cy4 ,x is an axiom ( e?ics t :5 two rights conflict1 ! less important mu/ give way to ! m important4 ,s9ce all prop]ty rights are b means to ! satisfaction ( human ne$s1 _! relative importance is det]m9$ by ! relative importance ( ! ends t !y s]ve2 t is1 by ! relative importance ( ! dep5d5t ne$s4 ,n[ ! ne$s t are suppli$ ?r\gh int]e/ on ! employ]'s capital are slight & n ess5tial to 8 welf>e2 ! ne$s t are suppli$ ?r\gh a liv+ wage are ess5tial to a reasonable life = ! lab\r]4 ,on ! assumption t ! employ] has already tak5 f ! product suffici5t to provide a dec5t livelihood1 int]e/ on 8 capital w be exp5d$ = luxuries or conv]t$ into new inve/m5ts2 a liv+ wage = ! lab\r] w all be requir$ = ! fundam5tal goods ( life1 physical1 m5tal1 or moral4 ,evid5tly1 !n1 ! "r to int]e/ is inf]ior to ! "r to a liv+ wage4 ,to proce$ on ! contr>y !ory is to rev]se ! ord] ( nature & reason1 & to subord9ate ess5tial ne$s & welf>e to uness5tial ne$s & welf>e4 ,nor c x be ma9ta9$ t ! capitali/-employ]'s claim to int]e/ is a claim ^u ! product prior to & indep5d5t ( ! claim ( ! lab\r] to a liv+ wage4 ,t w\ld be begg+ ! "q4 ,! product is 9 a fundam5tal s5se ! common prop]ty ( employ] & employs4 ,bo? p>ties h co-op]at$ 9 turn+ x out1 & !y h equal claims ^u x1 9 s f> z x is necess>y to yield !m a dec5t livelihood4 ,hav+ tak5 !refrom ! requisites ( a dec5t livelihood = himself1 ! employ] :o appropriates int]e/ at ! exp5se ( a dec5t livelihood = 8 employs1 9 effect treats _! claims ^u ! common & jo9t product z ess5tially inf]ior to 8 own4 ,if ?is assumption 7 correct x w\ld mean t ! prim>y & ess5tial ne$s ( ! employs are ( less intr9sic importance ?an ! sup]ficial ne$s ( ! employ]1 & t ! employs !mselves are a l[] ord] ( be+ ?an ! employ]4 ,! inconte/able fact is t su* an employ] deprives ! lab\r]s ( access to ! goods ( ! e>? on reasonable t]ms1 & gives himself an access !reto t is unreasonable4 ,suppose t all employ]s :o f\nd !mselves unable to pay full liv+ wages & obta9 ! normal rate ( int]e/1 %\ld dispose ( _! bus9esses & become m]e loan capitali/s1 w\ld ! condition ( ! und]paid work]s be improv$8 ,two effects w\ld be c]ta93 an increase 9 ! supply ( loan capital relatively to ! dem&1 & a decrease 9 ! numb] ( active bus9ess m54 ,! fir/ w\ld probably lead to a decl9e 9 ! rate ( int]e/1 :ile ! second might or might n result 9 a dim9ution ( ! volume ( products4 ,if ! rate ( int]e/ 7 l[]$ ! employ+ bus9ess m5 w\ld be able to raise wages2 if ! prices ( products rose a fur!r increase ( wages w\ld become possible4 ,h[ev]1 x is n c]ta9 t prices w\ld rise2 = ! bus9ess m5 :o rema9$ w\ld be ! m effici5t 9 _! respective classes1 & might well be capable ( produc+ all ! goods t _h be5 previ\sly suppli$ by _! elim9at$ competitors4 ,ow+ to _! sup]ior effici5cy & _! l>g] output1 ! exi/+ bus9ess m5 w\ld be able to pay consid]ably high] wages ?an ^? :o _h disappe>$ f ! field ( indu/rial direction4 ,z ?+s are to-day1 x is ! less effici5t bus9ess m5 :o are unable to pay liv+ wages & at ! same "t obta9 ! prevail+ rate ( int]e/ on _! capital4 ,! ultimate result1 !re=e1 ( ! )drawal f bus9ess ( ^? :o c\ld n pay a liv+ wage1 w\ld probably be ! univ]sal e/abli%m5t ( a liv+ wage4 ,( c\rse1 ?is supposition is purely fanciful4 ,only a small m9ority ( ! bus9ess m5 ( to-day are likely to be driv5 by _! consci5ces ei!r to pay a liv+ wage at ! co/ ( int]e/ on _! capital1 or to )draw f bus9ess :5 !y are confront$ ) su* a situation4 ,is ?is small m9ority "u moral obligation to adopt ei!r ( ^! alt]natives1 :5 ! effect ( su* action ^u ! great mass ( ! und]paid work]s is likely to be v slight8 ,! "q w\ld seem to dem& an answ] 9 ! affirmative4 ,^? employ]s :o paid a liv+ wage at ! exp5se ( int]e/ w\ld conf] a concrete b5efit ( great value ^u a gr\p ( human be+s4 ,^? :o %rank f ?is sacrifice1 & pref]r$ to g out ( bus9ess1 w\ld at lea/ h ceas$ to co-op]ate 9 an unju/ di/ribution ( weal?1 & _! example w\ld n be entirely )\t effect ^u ! views ( _! fell[ employ]s4 ,an ,objection & ,"s ,difficulties ,aga9/ ! =ego+ argum5t x may be object$ t ! employ] does 8 full duty :5 he pays ! lab\r] ! full value ( ! product or s]vice4 ,lab\r is a commodity ( :i* wages are ! price2 & ! price is j if x is ! fair equival5t ( ! lab\r4 ,l any o!r on]\s contract1 ! sale ( lab\r is gov]n$ by ! requirem5ts ( commutative ju/ice2 & ^! are satisfi$ :5 lab\r is sold = its moral equival5t4 ,:at ! employ] is int]e/$ 9 & pays =1 is ! lab\r]'s activity4 ,!re is no reason :y he %\ld take into acc\nt su* an extr9sic consid]ation z ! lab\r]'s livelihood4 ,mo/ ( ^! ass]tions are correct1 platitud9\sly correct1 b !y yield u no specific guidance because !y use language vaguely & ev5 ambigu\sly4 ,! cont5tion und]ly+ !m 0 adequately refut$ 9 ! la/ *apt]1 "u ! heads ( !ories ( value & !ories ( ex*ange equival5ce4 ,at pres5t x w be suffici5t to repeat summ>ily ! foll[+ po9ts3 if ! value ( lab\r is to be und]/ood 9 a purely economic s5se x means m>ket value1 :i* is obvi\sly n a univ]sal measure ( ju/ice2 if by ! value ( lab\r we mean its e?ical value we _c det]m9e x 9 any p>ticul> case m]ely by comp>+ lab\r & comp5sation2 we are compell$ to h rec\rse to "s extr9sic e?ical pr9ciple2 su* an extr9sic pr9ciple is f\nd 9 ! proposition t ! p]sonal dignity ( ! lab\r] entitles him to a wage adequate to a dec5t livelihood2 !re=e1 ! e?ical value ( lab\r is always equival5t to at lea/ a liv+ wage1 & ! employ] is morally b\nd to give ?is mu* remun]ation4 ,moreov]1 ! habit ( look+ at ! wage contract z a matt] ( commutative ju/ice 9 ! m]e s5se ( contractual ju/ice1 is radically defective4 ,! transaction betwe5 employ & employ] involves o!r que/ions ( ju/ice ?an t :i* arises imm$iately out ( ! relation betwe5 ! ?+s ex*ang$4 ,:5 a borr[] repays a loan ( t5 doll>s1 he fulfils ! obligation ( ju/ice because he returns ! full equival5t ( ! article t he receiv$4 ,no?+ else is p]t95t to ! "q ( ju/ice 9 ?is transaction4 ,nei!r ! weal? nor ! pov]ty1 ! goodness nor ! badness1 nor any o!r quality ( ei!r l5d] or borr[]1 has a be>+ on ! ju/ice ( ! act ( repaym5t4 ,9 ! wage contract1 & 9 e o!r contract t involves ! di/ribution ( ! common b\nty ( nature1 or ( ! social product1 ! juridical situation is vitally diff]5t f ! transaction t we h j consid]$4 ,! employ] has obligations ( ju/ice1 n m]ely z ! receiv] ( a valuable ?+ ?r\gh an on]\s contract1 b z ! di/ributor ( ! common h]itage ( nature4 ,8 duty is n m]ely contractual1 b social4 ,he fulfils n only an individual contract1 b a social function4 ,unless he p]=ms ?is social & di/ributive function 9 accordance ) ju/ice1 he does n adequately dis*>ge ! obligation ( ! wage contract4 ,= ! product out ( :i* he pays wages is n 8 9 ! same s5se z ! p]sonal income out ( :i* he repays a loan4 ,8 claim ^u ! product is subject to ! obligation ( j di/ribution2 ! obligation ( s di/ribut+ ! product t ! lab\r]s :o h contribut$ to ! product %all n be d5i$ _! "r to a dec5t livelihood on reasonable t]ms f ! b\nty ( ! e>?4 ,on ! o!r h&1 ! activity ( ! lab\r] is n a m]e commodity1 z money or pork2 x is ! output ( a p]son1 & a p]son :o has no o!r means ( realis+ 8 inh]5t "r to a livelihood4 ,consequ5tly1 bo? t]ms ( ! contract1 ! lab\r & ! comp5sation1 involve o!r elem5ts ( ju/ice ?an t :i* arises out ( _! assum$ mutual equival5ce4 ,9 a ^w1 ju/ice requires ! employ] n m]ely to give an equival5t = lab\r 7an equival5t :i* is det]m9$ by "s arbitr>y1 conv5tional1 fanta/ic1 or impossible attempt to comp>e "w & pay7 b to fulfil 8 obligation ( ju/ly di/ribut+ t "p ( ! common b\nty ( ! e>? :i* comes into 8 h&s by virtue ( 8 social function 9 ! indu/rial process4 ,h[ futile1 !n1 to endeav\r by ^w juggl+ to describe ! employ]'s obligation 9 t]ms ( m]e equival5ce & contractual ju/ice6 ,"s difficulties occur 9 connection ) ! wage rights ( adult males ^: ability is bel[ ! av]age1 & female & *ild work]s4 ,s9ce ! dignity & ! ne$s ( p]sonality con/itute ! moral basis ( ! claim to a dec5t livelihood1 x w\ld seem t ! ineffici5t work] :o does 8 be/ is entitl$ to a liv+ wage4 ,und\bt$ly he has su* a "r if x c be effectuat$ 9 ! exi/+ indu/rial organisation4 ,z already not$1 ! "r ( ! workman ( av]age ability to a liv+ wage does n become actual until he f9ds an employ] :o w\ld r give him t mu* pay ?an d )\t 8 s]vices4 ,s9ce ! obligation ( pay+ a liv+ wage is n an obligation to employ any p>ticul> work]1 an employ] may refra9 f hir+ or may dis*>ge any lab\r] :o does n add to ! product suffici5t value to provide 8 wages4 ,= ! employ] _c reasonably be expect$ to employ any "o at a positive loss to himself4 ,:5ce x foll[s t he may pay less ?an liv+ wages to any work] ^: s]vices he w\ld r disp5se ) ?an remun]ate at t figure4#bde ,wom5 & "y p]sons :o regul>ly p]=m a full day's "w1 h a "r to comp5sation adequate to a dec5t livelihood4 ,9 ! case ( m9ors1 ?is means liv+ at home1 s9ce ?is is ! normal condition ( all1 & ! actual condition ( almo/ all4 ,adult females h a "r to a wage suffici5t to ma9ta9 !m away f home1 because a consid]able proportion ( !m live 9 ?is condition4 ,if employ]s 7 morally free to pay home-dwell+ wom5 less ?an ^? adrift1 !y w\ld endeav\r to employ only ! =m]4 ,?is w\ld create a v undesirable social situation4 ,! numb] ( wom5 away f home :o are =c$ to e>n _! own liv+ is suffici5tly l>ge 7#bj to #be p] c5t4 ( ! :ole7 to make x reasonable t = _! sakes ! wage ( all work+ wom5 %\ld be det]m9$ by ! co/ ( liv+ outside ! p>5tal prec9cts4 ,?is is "o ( ! social obligations t reasonably falls ^u ! employ] on acc\nt ( 8 function 9 ! pres5t indu/rial sy/em4 ,9 all ! ,am]ican m9imum wage laws1 ! /&>d ( paym5t is det]m9$ by ! co/ ( liv+ away f home4 ,besides1 ! diff]5ce betwe5 ! liv+ co/s ( wom5 9 ! two conditions is n ne>ly z great z is commonly assum$4 ,probably x nev] am\nts to a doll> a week4 ,! ,family ,liv+ ,wage ,up to ! pres5t we h be5 consid]+ ! "r ( ! lab\r] to a wage adequate to a dec5t livelihood = himself z an individual4 ,9 ! case ( an adult male1 h[ev]1 ?is is n suffici5t = normal life1 nor = ! reasonable developm5t ( p]sonality4 ,! great majority ( m5 _c live well balanc$ lives1 _c atta9 a reasonable degree ( self developm5t outside ! m>ri$ /ate4 ,!re=e1 family life is among ! ess5tial ne$s ( a normal & reasonable exi/5ce4 ,x is n1 inde$1 s vitally necess>y z ! prim>y requisites ( individual life1 su* z food1 clo?+1 & %elt]1 b x is second only to ^!4 ,outside ! family man _c1 z a rule1 comm& t degree ( cont5tm5t1 moral /r5g?1 & moral safety :i* are necess>y = reasonable & effici5t liv+4 ,x is unnecess>y to lab\r ?is po9t fur!r1 z v few w\ld ass]t t ! av]age man c live a normal & complete human life )\t m>riage4 ,n[1 ! support ( ! family falls prop]ly ^u ! husb& & fa!r1 n ^u ! wife & "m4 ,! obligation ( ! fa!r to provide a livelihood = ! wife & "y *ildr5 is q z def9ite z 8 obligation to ma9ta9 himself4 ,if he has n ! means to dis*>ge ?is obligation he is n ju/ifi$ 9 gett+ m>ri$4 ,yet1 z we h j se51 m>riage is ess5tial to normal life = ! great majority ( m54 ,!re=e1 ! mat]ial requisites ( normal life = ! av]age adult male1 include provision = 8 family4 ,9 o!r words1 8 dec5t livelihood means a family livelihood4 ,consequ5tly1 he has a "r to obta9 su* a livelihood on reasonable t]ms f ! b\nty ( ! e>?4 ,9 ! case ( ! wage e>n]1 ?is "r c be effectuat$ only ?r\gh wages2 !re=e1 ! adult male lab\r] has a "r to a family liv+ wage4 ,if he does n get ?is measure ( remun]ation 8 p]sonal dignity is violat$1 & he is depriv$ ( access to ! goods ( ! e>?1 q z c]ta9ly z :5 8 wage is inadequate to p]sonal ma9t5ance4 ,! diff]5ce betwe5 family ne$s & p]sonal ne$s is a diff]5ce only ( degree4 ,! satisfaction ( bo? is indisp5sable to 8 reasonable life4 ,j z ! woman work] :o lives ) h] p>5ts has a "r to a wage suffici5t to ma9ta9 h] away f home1 s ! unm>ri$ adult male has a "r to a family liv+ wage4 ,if only m>ri$ m5 get ! latt] wage !y w be discrim9at$ aga9/ 9 ! matt] ( employm5t4 ,to prev5t ?is obvi\sly undesirable condition1 x is necess>y t a family liv+ wage be recognis$ z ! "r ( all adult male work]s4 ,no o!r arrangem5t is reasonable 9 our pres5t indu/rial sy/em4 ,9 a competitive rgime ! /&>d wage = bo? ! m>ri$ & ! unm>ri$ m5 is necess>ily ! same4 ,x w be det]m9$ by ! liv+ co/s ( ei!r ! "o class or ! o!r4 ,at pres5t ! wage ( ! unskill$ is un=tunately adju/$ to ! subsi/5ce co/ ( ! man :o is n m>ri$4 ,s9ce two prevail+ scales ( wages are impossible1 ! remun]ation ( ! unm>ri$ mu/ 9 ! int]e/s ( ju/ice to ! m>ri$ be rais$ to ! liv+ co/s ( ! latt]4 ,moreov]1 ! unm>ri$ lab\r] ne$s m ?an an individual liv+ wage 9 ord] to save suffici5t money to ent] ^u ! responsibilities ( matrimony4 ,only two objections ( any importance c be br\ght aga9/ ! male lab\r]'s claim to a family liv+ wage4 ,! fir/ is t j wages are to be measur$ by ! value ( ! lab\r p]=m$1 & n by su* an extr9sic consid]ation z ! ne$s ( a family4 ,x has already be5 answ]$ 9 ?is & ! prec$+ *apt]s4 ,n ! economic b ! e?ical value ( ! s]vice r5d]$1 is ! prop] det]m9ant ( ju/ice 9 ! matt] ( wages2 & ?is e?ical value is always ! equival5t ( at lea/ a dec5t livelihood = ! lab\r] & 8 family4 ,accord+ to ! second objection1 ! memb]s ( ! lab\r]'s family h no claim ^u ! employ]1 s9ce !y d n p>ticipate 9 ! "w t is remun]at$4 ,?is cont5tion is valid1 b x is also irrelevant4 ,! claim ( ! lab\r]'s family to su/5ance is directly ^u him1 n ^u 8 employ]2 b ! lab\r] has a j claim ^u ! employ] = ! means ( meet+ ! claims ( 8 family4 ,8 "r to ?is am\nt ( remun]ation is directly bas$ nei!r ^u ! ne$s nor ! rights ( 8 family1 b ^u 8 own ne$s1 ^u ! fact t family conditions are indisp5sable to 8 own normal life4 ,if ! wife & "y *ildr5 7 self support+1 or 7 ma9ta9$ by ! ,/ate1 ! wage rights ( ! fa!r w\ld n include provision = ! family4 ,s9ce1 h[ev]1 family life involves support by ! fa!r1 ! lab\r]'s "r to su* a life necess>ily includes ! "r to a wage adequate to family support4 ,o!r ,argum5ts 9 ,fav\r ( a ,liv+ ,wage ,?us f>1 ! argum5t has be5 bas$ ^u individual natural rights4 ,if we give up ! doctr9e ( natural rights1 & assume t all ! rights ( ! individual come to him f ! ,/ate1 we mu/ admit t ! ,/ate has ! p[] to )hold & )draw all rights f any & all p]sons4 ,its grant ( rights w be det]m9$ solely by consid]ations ( social utility4 ,9 ! concrete ?is means t "s citiz5s may be reg>d$ z ess5tially inf]ior to o!r citiz5s1 t "s may prop]ly be treat$ z m]e in/rum5ts to ! conv5i5ce ( o!rs4 ,or x means t all citiz5s may be completely subord9at$ to ! aggr&isem5t ( an ab/ract entity1 call$ ! ,/ate4 ,nei!r ( ^! positions is logically def5sible4 ,no gr\p ( p]sons has less intr9sic wor? ?an ano!r2 & ! ,/ate has no rational significance ap>t f its compon5t individuals4 ,nev]!less1 a valid argum5t = ! liv+ wage c be set up on gr\nds ( social welf>e4 ,a c>eful & compreh5sive exam9ation ( ! evil consequ5ces to society & ! ,/ate f ! "u-paym5t ( any gr\p ( lab\r]s1 w\ld %[ t a univ]sal liv+ wage is ! only s\nd social policy4 ,among compet5t social /ud5ts1 ?is proposition has become a commonplace4 ,x w n be d5i$ by any intellig5t p]son :o consid]s s]i\sly ! influ5ce ( l[ wages 9 dim9i%+ ! effici5cy1 physical1 m5tal1 & moral1 ( ! work]s2 9 increas+ ! volume ( crime1 & ! social co/ ( meet+ x2 9 ! imm5se social outlay = ! relief ( unnecess>y pov]ty1 sickness1 & o!r =ms ( di/ress2 & 9 ! =mation ( a l>ge & discont5t$ prolet>iat4#bdf ,! liv+ wage doctr9e also receives /rong support f v>i\s k9ds ( au?ority4 ,( ^! ! mo/ important & be/ kn[n is ! fam\s encyclical1 ,on ! ,condition ( ,lab\r1 ,may #ae1 #ahia1 by ,pope ,leo ,,xiii4 ,let x !n be grant$ t workman & employ] %\ld1 z a rule1 make free agreem5ts1 & 9 p>ticul> %\ld agree freely z to wages2 nev]!less1 !re is a dictate ( natural ju/ice m imp]i\s & anci5t ?an any b>ga9 betwe5 man & man2 namely1 t ! remun]ation %\ld be suffici5t to ma9ta9 ! wage e>n] & reasonable & frugal com=t4 ,al?\gh ! ,pope refra9$ f specify+ :e!r ! liv+ wage t he _h 9 m9d 0 "o adequate m]ely to an individual livelihood1 or suffici5t to support a family1 o!r passages 9 ! ,encyclical leave no room = d\bt t he reg>d$ ! latt] z ! normal & equitable measure ( remun]ation4 ,)9 a doz5 l9es ( ! s5t5ce quot$ above1 he made ?is /atem5t3 ,if ! workman's wages be suffici5t to ma9ta9 himself1 8 wife1 & 8 *ildr5 9 reasonable com=t1 he w n f9d x difficult1 if he be a s5sible man1 to practise ?rift2 & he w n fail1 by cutt+ d[n exp5ses1 to put by "s little sav+s & ?us secure a small income4 ,all less] ,ca?olic au?orities hold t ! adult male lab\r] has "s k9d ( moral claim to a family liv+ wage4 ,9 all probability ! majority ( !m reg>d ?is claim z "o ( /rict ju/ice1 :ile ! m9ority w\ld put x "u ! head ( legal ju/ice1 or natural equity1 or *>ity4 ,! diff]5ces betwe5 _! views are n z important z ! agreem5ts2 = all ! ,ca?olic writ]s ma9ta9 t ! work]'s claim is /rictly moral 9 its nature1 & t ! correspond+ obligation ^u ! employ] is likewise ( a moral "*4 ,! ,f$]al ,c\ncil ( ! ,*ur*es ( ,*ri/ 9 ,am]ica1 repres5t+ ! pr9cipal ,prote/ant d5om9ations1 has =mally decl>$ 9 fav\r ( a liv+ wage z a m9imum 9 e indu/ry4 ,public op9ion likewise accepts ! pr9ciple ( a liv+ wage z ! irr$ucible m9imum ( fair treatm5t = all work]s4 ,inde$1 x w\ld be difficult to f9d any important p]son 9 any walk ( life to-day :o w\ld h ! tem]ity to d5y t ! lab\r] is entitl$ to a wage suffici5t = reasonable family life4 ,among employ]s ! op9ion is fairly g5]al t ! n>r[ m>g9 ( pr(it 9 competitive indu/ries r5d]s ! burd5 ( pay+ a family liv+ wage to all adult males unfairly heavy2 b ! ass]tion t ! wage contract is m]ely an economic transaction1 hav+ no relation to ju/ice1 is sc>cely ev] utt]$ publicly4 ,! ,money ,measure ( a ,liv+ ,wage ,= self-support+ wom5 a liv+ wage is n less ?an eight doll>s p] week 9 any city ( ! ,unit$ ,/ates1 & 9 "s ( our l>g] cities x is f "o to two doll>s above ?is figure4 ,! /ate m9imum wage commissions t h act$ 9 ! matt]1 h fix$ ! rates n l[] ?an eight nor high] ?an t5 doll>s p] week4#bdg ,^! det]m9ations are 9 sub/antial agreem5t ) a l>ge numb] ( o!r e/imates1 bo? (ficial & un(ficial4 ,:5 ! pres5t writ] 0 mak+ an e/imate ( ! co/ ( dec5t liv+ = a family ab\t elev5 ye>s ago1 he came to ! conclusion t six hundr$ doll>s p] ye> 0 ! l[e/ am\nt t w\ld ma9ta9 a man & wife & f\r or five small *ildr5 9 any ,am]ican city1 & t ?is sum 0 insuffici5t 9 "s ( ! l>g] cities4#bdh ,s9ce t "t retail prices seem to h ris5 at lea/ tw5ty-five & possibly =ty-five p] c5t4#bdi ,if ! six hundr$ doll> m9imum 7 correct 9 #aije x %\ld1 !re=e1 be increas$ to sev5 hundr$ & fifty doll>s to meet ! pres5t range ( prices4 ,t ?is e/imate is too l[ = "s ( ! m popul\s cities1 has be5 fully prov$ by sev]al rec5t inve/igations4 ,9 #aiae ! ,bureau ( ,/&>ds put ! m9imum co/ ( liv+ = a family ( five 9 ,new ,york ,city at #hdj4ah4 ,ab\t ! same "t ! ,new ,york ,factory ,inve/igat+ ,commission gave ! e/imate ( #hgf4dc = ,new ,york ,city1 & #ggb4dc = ,buffalo4 ,9 #aijh1 :5 ! co/ ( liv+ 0 f t5 to ?irty p] c5t4 *eap] ?an to-day1 ! ,unit$ ,/ates ,bureau ( ,lab\r f\nd t1 accord+ to ! cu/oms prevail+ 9 ! communities select$ = /udy1 a fair /&>d ( liv+ = a family ( five p]sons among mill work]s1 0 #fjj4gd 9 ! ,s\?1 & f #fij4fj to #gca4fd 9 ,fall ,riv]1 ,massa*usetts4#bej ,accord+ to ! ,manly ,report ( ! ,f$]al ,commission on ,indu/rial ,relations1 betwe5 two-?irds & ?ree-f\r?s ( ! adult male lab\r]s ( ! ,unit$ ,/ates receive less ?an #gej4jj a ye>1 & ! same proportion ( wom5 work]s are paid "u eight doll>s a week4 ,a consid]able majority1 !re=e1 ( bo? male & female lab\r]s fail to obta9 liv+ wages4 ,we are /ill v f> f hav+ actualis$ ev5 ! m9imum measure ( wage ju/ice4 ,,footnotes3 #bdb ,cf4 ,skelton1 ,socialism3 ,a ,critical ,analysis1 p4 #bjb2 ,m5g]1 ,! ,"r to ! ,:ole ,produce ( ,lab\r1 pp4 #h1 sq4 #bdc ,all ! que/ions treat$ 9 ?is *apt] are discuss$ at mu* great] l5g? 9 ! au?or's "w1 ,a ,liv+ ,wage2 ,macmillan2 #aijf4 #bdd ,see *apt]s xii & xiii4 #bde ,:ile ! /atem5t 9 ! text applies to all lab\r]s ( less ?an av]age ability1 x obvi\sly is applicable only to individual cases among ^? :o are up to ! av]age4 ,^! are ! work]s at ! m>g9 ( ! lab\r =ce 9 an e/abli%m5t1 ^? :o c\ld be dis*>g$ )\t caus+ ! indu/ry to %ut d[n4 ,if an employ] w\ld r g out ( bus9ess ?an pay a liv+ wage to all 8 necess>y lab\r]s ( av]age ability1 he is morally free to d s2 b he may n employ !m at less ?an liv+ wages 9 ord] to obta9 int]e/ on 8 capital4 #bdf ,"o ( ! be/ /atem5ts ( ! evil social results ( l[ wages w be f\nd 9 ,webb's ,indu/rial ,democracy1 vol4 ,,ii1 pp4 #gdi-gff4 #bdg ,see reports ( ^! commissions 9 ,oregon1 ,wa%+ton1 ,massa*usetts1 ,m9nesota1 & ,cali=nia4 #bdh ,a ,liv+ ,wage1 p4 #aej4 #bdi ,see ,bullet9s ( ! ,f$]al ,bureau ( ,lab\r ,/ati/ics on ,retail ,prices2 & ,ne>+1 ,r$uc+ ! ,co/ ( ,liv+4 #bej ,summ>y ( ! ,report on ,condition ( ,woman & ,*ild ,wage ,e>n]s 9 ! ,unit$ ,/ates1 pp4 #chc1 #chd4 ,! be/ int5sive /udy ( family co/ ( liv+ is t publi%$ 9 ! volume edit$ by ,rob]t ,c4 ,*ap91 ,! ,/&>d ( ,liv+ ,among ,work+m5's ,families 9 ,new ,york ,city2 #aiji4 ,x l$ to ! conclusion t any?+ less ?an eight hundr$ doll>s 0 insuffici5t = ! ye>ly ma9t5ance ( a husb& & wife & ?ree small *ildr5 9 ,manhattan4 ,,*apt] ,,xxiv ,,! ,,problem ,,( ,,complete ,,wage ,,ju/ice ,a liv+ wage = all work]s is m]ely ! m9imum measure ( j remun]ation4 ,x is n 9 e case complete ju/ice4 ,possibly x is n ! full measure ( ju/ice 9 any case4 ,h[ mu* m ?an a liv+ wage is due to any or all ( ! v>i\s classes ( lab\r]s8 ,h[ mu* m may any gr\p ( work]s dem& )\t expos+ itself to ! s9 ( extortion8 ,by :at pr9ciples %all ^! que/ions be answ]$8 ,! problem ( complete wage ju/ice c be conv5i5tly & logically consid]$ 9 f\r di/9ct relations1 z reg>ds3 ! respective claims ( ! diff]5t classes ( lab\r]s to a giv5 am\nt ( money available = wage paym5ts2 ! claims ( ! :ole body ( lab\r]s1 or any gr\p !re(1 to high] wages at ! exp5se ( pr(its2 at ! exp5se ( int]e/2 & at ! exp5se ( ! consum]4 ,comp>ative ,claims ( ,diff]5t ,lab\r ,gr\ps ,9 ! division ( a common wage fund1 no section ( ! work]s is entitl$ to any?+ 9 excess ( liv+ wages until all ! o!r sections h receiv$ t am\nt ( remun]ation4 ,! ne$ ( a dec5t livelihood con/itutes a m urg5t claim ?an any o!r t c be br\ght =w>d4 ,nei!r ef=ts1 nor sacrifices1 nor productivity1 nor sc>city c ju/ify ! paym5t ( m ?an liv+ wages to any gr\p1 s long z any o!r gr\p 9 ! indu/ry rema9s bel[ t level2 = ! extra comp5sation w supply ! noness5tial ne$s ( ! =m] by d5y+ ! ess5tial ne$s ( ! latt]4 ,! two gr\ps ( m5 w be treat$ unequally 9 respect ( ^? qualities 9 :i* !y are equal2 namely1 _! p]sonal dignity & _! claims to ! m9imum requisites ( reasonable life & self developm5t4 ,?is is a violation ( ju/ice4 ,let u suppose t all ! work]s among :om a giv5 am\nt ( comp5sation is to be di/ribut$1 h already receiv$ liv+ wages1 & t !re rema9s a consid]able surplus4 ,on :at pr9ciples %\ld ! surplus be apportion$8 ,= answ] we turn to ! canons ( di/ribution1 z expla9$ 9 *apt] xvi4 ,:5 ! elem5t>y ne$s ( life & developm5t h be5 suppli$1 ! next consid]ation might seem to be ! high] or noness5tial ne$s & capacities4 ,proportional ju/ice w\ld seem to sugge/ t ! surplus ought to be di/ribut$ 9 accordance ) ! v>y+ ne$s & capacities ( m5 to develop _! faculties beyond ! m9imum reasonable degree4 ,z we h already po9t$ out1 ?is w\ld und\bt$ly be ! prop] rule if x 7 susceptible ( any?+ l accurate application1 & if ! sum to be di/ribut$ 7 n produc$ by & dep5d5t ^u ^? :o 7 to p>ticipate 9 ! di/ribution4 ,h[ev]1 we "k t ! fir/ condition is impracticable1 :ile ! second is non-exi/5t4 ,inasmu* z ! %>]s 9 ! di/ribution h produc$ & con/antly det]m9e ! am\nt to be apportion$1 ! di/ributive process mu/ disreg>d noness5tial ne$s1 & gov]n itself by o!r canons ( ju/ice4 ,! mo/ urg5t ( ^! is ! canon ( ef=ts & sacrifices4 ,sup]ior ef=t1 z measur$ by unusual w-ex]tion1 is a fundam5tal rule ( ju/ice1 & a valid title to exceptional rew>d4 ,m5 :o /rive h>d] ?an ! majority ( _! fell[s are e?ically des]v+ ( extra comp5sation4 ,at lea/1 ?is is ! pure !ory ( ! matt]4 ,9 practice1 ! situation is complicat$ by ! fact t unusual ef=t _c always be di/+ui%$1 & by ! fur!r fact t "s exceptional ef=ts d n fructify 9 correspond+ly useful results4 ,among m5 engag$ at ! same k9d ( "w1 sup]ior ef=t is to a great ext5t disc]nible 9 ! unusually l>ge product4 ,z su* x actually receives an extra rew>d 9 accordance ) ! canon ( productivity4 ,:5 m5 are employ$ at diff]5t tasks1 unusual ef=ts _c g5]ally be di/+ui%$ & comp5sat$4 ,h5ce ! g5]al pr9ciple is t sup]ior ef=ts put =? 9 ! production ( utilities1 entitle m5 to some?+ m ?an liv+ wages1 b t ! en=cem5t ( ?is pr9ciple is consid]ably h9d]$ by ! difficulty ( disc]n+ su* ef=ts4 ,! unusual sacrifices t des]ve extra comp5sation are connect$ ) ! co/s ( indu/rial functions & ! disagreeable "* ( occupations4 ,"u ! fir/ head are includ$ ! exp5se ( indu/rial tra9+ & ! debilitat+ effects ( ! "w4 ,n only ju/ice to ! work] b a f>sight$ view ( social welf>e1 dictate t all unusual co/s ( prep>ation = an indu/rial craft or pr(ession %\ld be repaid 9 ! =m ( unusual comp5sation4 ,?is means some?+ m ?an a liv+ wage4 ,= ! same reasons ! unusual haz>ds & disability result+ f indu/rial accid5ts & diseases %\ld be provid$ = by high] remun]ation4 ,9 ! abs5ce ( su* provision1 ^! co/s w h to be borne by p>5ts1 by society 9 ! =m ( *>itable relief1 or by ! work] himself ?r\gh unnecess>y suff]+ & incapacity4 ,! indu/ry t does n provide = all ^! co/s is a social p>asite1 ! work]s 9 x are depriv$ ( j comp5sation = _! unusual sacrifices1 & society suff]s a consid]able loss ?r\gh indu/rial friction & dim9i%$ productive effici5cy4 ,9 s f>1 h[ev]1 z any ( ! =ego+ occupational co/s are borne by society1 z 9 ! matt] ( indu/rial education1 or by ! employ]1 z by ! devices ( accid5t comp5sation or sickness insurance1 !y d n dem& provision 9 ! =m ( extra wages4 ,o!r unusual sacrifices t entitle ! work] to m ?an liv+ wages1 are inh]5t 9 disagreeable or despis$ occupations4 ,! scav5g] & ! bootblack ought to get m ?an ! p]=m]s ( mo/ o!r unskill$ tasks4 ,on ! pr9ciples ( comp>ative individual des]t1 !y %\ld receive l>g] remun]ation ?an _m p]sons :o are engag$ ^u skill$ b relatively pleasant k9ds ( "w4 ,= if !y 7 giv5 ! *oice ( exp5d+ ! "t & money requir$ to fit !m = ! latt] tasks1 or ( tak+ up imm$iately _! pres5t disagreeable lab\r1 !y w\ld select ! m pleasant occupations1 = ! same or ev5 a small] remun]ation4 ,& ! majority ( ^? :o are n[ 9 ! m skill$ occupations w\ld make ! same *oice4 ,h5ce ! sacrifices inh]5t 9 disagreeable k9ds ( "w are 9 _m cases z great z or great] ?an ! sacrifices ( prep>ation = ! m pleasant tasks2 consequ5tly ! do]s ( ! =m] are relatively und]paid4 ,if all wages 7 regulat$ by "s supreme au?ority accord+ to ! pr9ciples ( complete ju/ice1 ! work]s 9 disagreeable occupations w\ld receive some?+ m ?an liv+ wages4 ,nor w\ld ?is det]m9ation ( rew>ds be 9 any way contr>y to social welf>e or ! pr9ciple ( maximum net results2 = ! sup]ior attractiv5ess ( ! o!r k9ds ( "w w\ld draw a suffici5t supply ( lab\r to (fset ! advantage conf]r$ by high] wages ^u ! disagreeable occupations4 ,! ma9 reason :y ! latt] k9d ( lab\r is s poorly paid n[ is ! fact t x is v pl5tiful1 a condition :i* is 9 turn due to ! unequal division ( indu/rial opportunity4 ,7 ! opportunities ( te*nical education & ( entrance to ! high] crafts & pr(essions m widely diffus$1 ! lab\r]s (f]+ !mselves = ! disagreeable tasks w\ld be sc>c] & _! remun]ation correspond+ly l>g]4 ,?is w\ld be n only m com=table to ! ab/ract pr9ciples ( ju/ice1 b m conducive to social effici5cy4 ,to sum up ! discussion conc]n+ ! canon ( ef=ts & sacrifices3 ,lab\r]s h a j claim to m ?an liv+ wages :5ev] !y put =? unusual ef=ts1 & :5ev] _! occupations involve unusual sacrifices1 ei!r ?r\gh co/s ( prep>ation1 exceptional haz>ds1 or inh]5t disagreeabl5ess4 ,! precise am\nt ( extra comp5sation due "u any ( ^! heads c be det]m9$1 z a rule1 only approximately4 ,! next canon to be consid]$ z a reason = m ?an liv+ wages is t ( productivity4 ,?is (f]s little difficulty2 = ! unusual product is always visible among m5 :o are p]=m+ ! same k9d ( "w1 & ! employ] is always will+ to give ! produc] ( x extra comp5sation4 ,:ile sup]ior productive p[] :i* is bas$ solely ^u sup]ior native ability has only presumptive validity z a canon ( ju/ice1 t is e?ically suffici5t 9 our workaday _w4 ,moreov]1 ! canon ( human welf>e dem&s t sup]ior productivity receive sup]ior rew>ds1 s long z ^! are necess>y to evoke ! maximum net product4 ,! canon ( sc>city has exactly ! same value z t ( productivity4 ,society & ! employ] are well advis$ & are ju/ifi$ 9 giv+ extra comp5sation to sc>ce =ms ( lab\r :5 ! product is reg>d$ z wor? ! correspond+ price4 ,?is rema9s true ev5 :5 ! sc>city is due to re/rict$ opportunity ( prep>ation1 r ?an to sacrifices ( any sort4 ,9 t case ! high] rew>ds are z fully ju/ifi$ z ! sup]ior remun]ation ( t sup]ior productivity :i* is bas$ ^u exceptional native end[m5ts4 ,! am\nt ( extra comp5sation :i* may prop]ly be giv5 on acc\nt ( sc>city is det]m9$ ei!r by ! degree ( sacrifice involv$ or by ! ord9>y op]ation ( competition4 ,:5 m5 are sc>ce because !y h made exceptional sacrifices ( prep>ation1 !y ought to be rew>d$ 9 full proportion to ^! sacrifices4 ,:5 !y are sc>ce m]ely because ( exceptional opportunities1 _! extra comp5sation %\ld n exce$ ! am\nt t automatically comes to !m ?r\gh ! int]play ( supply & dem&4 ,! canon ( human welf>e has already receiv$ implicit application4 ,:5 due reg>d is giv5 to ef=ts1 sacrifices1 productivity1 & sc>city1 ! dem&s ( human welf>e1 bo? 9 its individual & its social aspects1 are suffici5tly safegu>d$4 ,9 ! =ego+ pages ! attempt has be5 made to describe ! proportions 9 :i* a giv5 wage fund ought to be di/ribut$ among ! v>i\s classes ( lab\r]s :o h claims ^u ! fund4 ,! fir/ requisite ( ju/ice is t all %\ld receive liv+ wages4 ,x applies to all work]s ( av]age ability1 ev5 to ^? :o h no special qualifications ( any sort4 ,:5 ?is g5]al claim has be5 univ]sally satisfi$1 ^? gr\ps ( work]s :o are 9 any wise special1 ^: qualifications = any reason diff]5tiate !m f & place !m above ! av]age1 w h a "r to some?+ m ?an liv+ wages4 ,!y w h ! fir/ claim ^u ! surplus t rema9s 9 ! wage fund4 ,_! claims w be bas$ ^u ! v>i\s canons ( di/ribution expla9$ 9 detail above2 & ! am\nts ( extra remun]ation to :i* !y w be entitl$1 w be det]m9$ by ! ext5t to :i* _! special qualifications diff]5tiate !m f ! av]age & unspecialis$ work]s4 ,if ! total available wage fund is m]ely suffici5t to provide univ]sal liv+ wages & ! extra comp5sation due to ! specialis$ gr\ps1 no section ( ! lab\r =ce w be ju/ifi$ 9 exact+ a l>g] %>e4 ,ev5 ?\gh ! employ] %\ld )hold a "p ( ! am\nt due to "s weak] gr\p1 a /rong] gr\p t is already gett+ its prop] proportion w\ld h no "r to dem& ! unju/ly )held portion4 ,= ?is belongs nei!r to ! employ] nor to ! p[]ful lab\r gr\p1 b to ! weak] section ( lab\r]s4 ,?is does n mean t a p[]ful body ( work]s :o are already receiv+ _! due proportion z comp>$ ) o!r lab\r gr\ps1 w\ld n be ju/ifi$ 9 seek+ any increase 9 remun]ation :atev]4 ,! increase might come out ( pr(its1 or int]e/1 or ! consum]1 & ?us be 9 no s5se detrim5tal to ! rights ( ! o!r sections ( lab\r]s4 ,?is problem w be consid]$ a little lat]4 ,at pres5t we conf9e our att5tion to ! relative claims ( diff]5t lab\r gr\ps to a def9ite wage fund4 ,suppose1 h[ev]1 t aft] all work]s h receiv$ liv+ wages1 & all ! exceptional gr\ps h obta9$ ^? extra am\nts :i* are due !m on acc\nt ( ef=ts1 sacrifices1 productivity1 & sc>city1 !re rema9s a fur!r surplus 9 ! wage fund4 ,9 :at proportions %\ld x be di/ribut$8 ,x %\ld be equally divid$ among all ! lab\r]s4 ,! proportional ju/ice :i* has be5 already e/abli%$ c be ma9ta9$ only by rais+ ! pres5t rates ( paym5t equally 9 all cases4 ,all ! av]age or unspecialis$ gr\ps w\ld get some?+ m ?an liv+ wages1 & all ! o!r gr\ps w\ld h _! extra comp5sation augm5t$ by ! same am\nt4 ,( c\rse1 ! wage-fund hypo!sis :i* und]lies ! =ego+ discussion is n realis$ 9 actual life1 any m ?an 0 ! wage fund ( ! classical economi/s4 ,bett] ?an any o!r device1 h[ev]1 x enables u to describe & visualise ! comp>ative claims ( diff]5t gr\ps ( lab\r]s :o h a "r to unequal am\nts 9 excess ( liv+ wages4 ,wages ,v]sus ,pr(its ,let u suppose t ! wage fund is prop]ly apportion$ among ! diff]5t classes ( lab\r]s1 accord+ to ! specifi$ canons ( di/ribution4 ,may n "o or all ( ! lab\r gr\ps dem& an increase 9 wages on ! gr\nd t ! employ] is reta9+ = himself an undue %>e ( ! product8 ,z we h se5 9 ! la/ *apt]1 ! "r ( ! lab\r]s to liv+ wages is sup]ior to ! "r ( ! employ] or bus9ess man to any?+ 9 excess ( t am\nt ( pr(its :i* w insure him aga9/ risks1 & af=d him a dec5t livelihood 9 reasonable con=mity ) 8 accu/om$ plane ( exp5diture4 ,x is also evid5t t ^? lab\r]s :o und]go m ?an av]age sacrifices h a claim to extra comp5sation :i* is q z valid z ! simil>ly bas$ claim ( ! employ] to m ?an liv+ pr(its4 ,9 case ! bus9ess does n provide a suffici5t am\nt to remun]ate bo? classes ( sacrifices1 ! employ] may pref] 8 own to ^? ( 8 employs1 on ! same pr9ciple t he may pref] 8 own claim to a dec5t livelihood4 ,! law ( *>ity p]mits a man to satisfy himself r ?an 8 neighb\r1 :5 ! ne$s 9 "q are ( ! same degree ( urg5cy or importance4 ,z to ^? lab\r]s :o turn out l>g] products ?an ! av]age1 or ^: ability is unusually sc>ce1 !re is no practical difficulty2 = ! employ] w f9d x pr(itable to give !m ! correspond+ extra comp5sation4 ,! precise "q be=e u1 !n1 is ! claims ( ! lab\r]s ^u pr(its = remun]ation above univ]sal liv+ wages & above ! extra comp5sation due on acc\nt ( unusual ef=ts1 sacrifices1 productivity1 & sc>city4 ,let u call ! wage t m]ely includes all ^! factors ! equitable m9imum4 ,9 competitive conditions ?is "q becomes practical only ) ref]5ce to ! exceptionally effici5t & productive bus9ess m54 ,! great majority h no surplus available = wage paym5ts 9 excess ( ! equitable m9imum4 ,inde$1 ! majority d n n[ pay ! full equitable m9imum2 yet _! pr(its d n provide !m m ?an a dec5t livelihood4 ,! relatively small numb] ( e/abli%m5ts t %[ su* a surplus z we are consid]+ h be5 br\ght to t condition ( prosp]ity by ! exceptional ability ( _! directors1 r ?an by ! unusual productivity ( _! employs4 ,9 s f> z ?is exceptional directive ability is due to unusual ef=ts & sacrifices1 ! surplus returns :i* x produces may be claim$ ) ju/ice by ! employ]4 ,9 s f> z ! surplus is ! outcome ( exceptional native end[m5ts1 x may /ill be ju/ly reta9$ by him 9 accordance ) ! canon ( productivity4 ,9 o!r words1 :5 ! v>i\s gr\ps ( work]s are already receiv+ ! equitable m9imum1 !y h no /rict "r to any additional comp5sation out ( ^? r>e surplus pr(its :i* come into exi/5ce 9 conditions ( competition4 ,?is conclusion is confirm$ by ref]5ce to ! canon ( human welf>e4 ,if exceptionally able bus9ess m5 7 n p]mitt$ to reta9 ! surplus 9 "q !y w\ld n ex]t !mselves suffici5tly to produce x2 lab\r w\ld ga9 no?+2 & ! community w\ld be depriv$ ( ! l>g] product4 ,:5 ! employ] is a corporation in/ead ( an individual or a p>tn]%ip1 & :5 x is op]at+ 9 competitive conditions1 ! same pr9ciples are applicable1 & ! same conclusions ju/ifi$4 ,! (fic]s & ! :ole body ( /ockhold]s w h a "r to ^? surplus pr(its t rema9 aft] ! equitable m9imum has be5 paid to ! employs4 ,e consid]ation t urges su* a di/ribution 9 ! case ( ! individual bus9ess holds good = ! corporation4 ,! corporation t is a monopoly w h ! same "r z ! competitive conc]n to reta9 = its own]s ^? surplus pr(its :i* are due to exceptional effici5cy on ! "p ( ! manag]s ( ! bus9ess4 ,t "p ( ! surplus :i* is d]iv$ f ! extortion ( high] ?an competitive prices _c be ju/ly reta9$1 s9ce x re/s ^u no def9ite moral title4 ,z we saw 9 ! *apt] on monopoly1 ! own]s h no "r to any?+ m ?an ! prevail+ rate ( int]e/1 toge!r ) a fair return = _! lab\r & = any unusual effici5cy t !y may ex]cise4 ,%\ld ! surplus 9 "q be discont9u$ by l[]+ prices1 or %\ld x be cont9u$ & di/ribut$ among ! lab\r]s8 ,z a rule1 ! =m] c\rse w\ld seem morally pref]able4 ,:ile ! lab\r]s1 z we %all see pres5tly1 are ju/ifi$ 9 cont5d+ = m ?an ! equitable m9imum at ! exp5se ( ! consum]1 _! "r to d s ?r\gh ! ex]cise ( monopoly p[] is extremely d\btful4 ,:e!r ?is p[] is ex]t$ by !mselves or by ! employ] on _! behalf1 x rema9s a weapon :i* human nature seems incapable ( us+ ju/ly4 ,wages ,v]sus ,int]e/ ,turn+ n[ to ! claims ( ! lab\r]s z aga9/ ! capitali/s1 or int]e/ receiv]s1 we p]ceive t ! "r to any int]e/ at all is morally inf]ior to ! "r ( all ! work]s to ! equitable m9imum4 ,z h]et(ore po9t$ out m ?an once1 ! =m] "r is only presumptive & hypo!tical1 & int]e/ is ord9>ily utilis$ to meet less important ne$s ?an ^? suppli$ by wages4 ,?r\gh 8 lab\r p[] ! int]e/ receiv] c supply all ^? fundam5tal ne$s :i* are satisfi$ by wages 9 ! case ( ! lab\r]4 ,!re=e1 x seems cle> t ! capitali/ has no "r to int]e/ until all lab\r]s h receiv$ ! equitable m9imum4 ,x mu/ be borne 9 m9d1 h[ev]1 t any claim ( ! lab\r] aga9/ int]e/ falls ^u ! own]s ( ! productive capital 9 a bus9ess1 ^u ! und]tak]-capitali/1 n ^u ! loan-capitali/4 ,:5 all ! lab\r]s 9 an indu/ry are receiv+ ! equitable m9imum1 h !y a "r to exact any?+ m at ! exp5se ( int]e/8 ,by int]e/ we mean1 ( c\rse1 ! prevail+ or competitive rate t is receiv$ on productive capital--five or six p] c5t4 ,any return to ! own]s ( capital 9 excess ( ?is rate is prop]ly call$ pr(its r ?an int]e/1 & its relation to ! claims ( ! lab\r]s has receiv$ consid]ation 9 ! imm$iately prec$+ section ( ?is *apt]4 ,! "q1 !n1 is :e!r ! lab\r]s :o are already gett+ ! equitable m9imum w\ld act ju/ly 9 dem&+ & us+ _! economic p[] to obta9 a "p or all ( ! pure int]e/4 ,no conclusive reason is available to ju/ify a negative answ]4 ,! title ( ! capitali/ is only presumptive & hypo!tical1 n c]ta9 & unconditional4 ,x is1 inde$1 suffici5t to ju/ify him 9 reta9+ int]e/ t comes to him ?r\gh ! ord9>y processes ( competition & b>ga9+2 b x is n ( su* def9ite & compell+ moral efficacy z to r5d] ! lab\r]s guilty ( inju/ice :5 !y employ _! economic p[] to div]t fur!r int]e/ f ! c(f]s ( ! capitali/ to _! own pockets4 ,! int]e/-%>e ( ! product is morally debatable z to its own]%ip4 ,x is a sort ( no-man's prop]ty 7l ! r5t ( l& antec$5tly to its legal assignm5t ?r\gh ! in/itution ( private l&[n]%ip7 :i* prop]ly goes to ! fir/ occupant z det]m9$ by ! processes ( b>ga9+ betwe5 employ]s & employs4 ,if ! capitali/s get ! int]e/-%>e ?r\gh ^! processes x rightfully belongs to !m2 if ! lab\r]s :o are already 9 possession ( ! equitable m9imum develop suffici5t economic /r5g? to get ?is debatable %>e !y may ju/ly reta9 x z _! own4 ,! =ego+ conclusion may seem to be a v unsatisfactory solution ( a problem ( ju/ice4 ,h[ev]1 x is ! only "o t is practically def5sible4 ,if ! capitali/'s claim to int]e/ 7 z def9ite & c]ta9 z ! lab\r]'s "r to a liv+ wage1 or z ! cr$itor's "r to ! money t he has loan$1 ! solution w\ld be v simple3 ! lab\r]s t we are discuss+ w\ld h no "r to /rive = any ( ! int]e/4 ,b ! claim ( ! capitali/s is n ( ?is cle> & conclusive nature4 ,x is suffici5t :5 comb9$ ) actual possession2 x is n suffici5t :5 ! "q is ( future possession4 ,! title ( fir/ occupancy z reg>ds l& is n valid until ! l& has be5 actually occupi$2 & simil>ly ! claim ( ! capitali/ to int]e/ is n valid until ! int]e/ has be5 receiv$4 ,if ! economic =ces :i* det]m9e actual possession op]ate 9 su* a way z to div]t ! int]e/-%>e to ! lab\r]s1 !y1 n ! capitali/s1 w h ! valid moral title1 j z ,br[n ) 8 automobile r ?an ,jones ) 8 spav9$ nag w enjoy ! valid title ( fir/ occupancy to a piece ( own]less l& :i* bo? h covet$4 ,?is conclusion is confirm$ by ref]5ce to ! rationally & morally impossible situation t w\ld foll[ f its rejection4 ,if we d5y to ! lab\r]s ! moral fre$om to /rive = high] wages at ! exp5se ( ! capitali/1 we mu/ also =bid !m to foll[ ?is c\rse at ! exp5se ( ! consum]4 ,= ! great majority ( consum]s w\ld /& to lose advantages to :i* !y h z good a moral claim z ! capitali/s h to int]e/4 ,practically ?is w\ld mean t ! lab\r]s h no "r to seek remun]ation 9 excess ( ! equitable m9imum2 = su* excess mu/ 9 sub/antially all cases come f ei!r ! consum] or ! capitali/4 ,on :at pr9ciple c we def5d ! proposition t ! great majority ( lab\r]s are =ev] re/ra9$ by ! moral law f seek+ m ?an b>e liv+ wages1 & ! specialis$ m9ority f dem&+ m ?an t extra comp5sation :i* corresponds to unusual ef=ts1 sacrifices1 productivity1 & sc>city8 ,:o has au?oris$ u to %ut aga9/ ^! classes ! doors ( a m lib]al /&>d ( liv+1 & a m ample measure ( self developm5t8 ,wages ,v]sus ,prices ,! "r ( ! lab\r]s to ! equitable m9imum implies obvi\sly ! "r to impose adequate prices ^u ! consum]s ( ! lab\r]'s products4 ,?is is ! ultimate s\rce ( ! rew>ds ( all ! ag5ts ( production4 ,suppose t ! lab\r]s are already receiv+ ! equitable m9imum4 ,are !y ju/ifi$ 9 seek+ any m at ! co/ ( ! consum]8 ,if all ! consum]s 7 also lab\r]s ! answ] w\ld be simple1 at lea/ 9 pr9ciple3 rises 9 wages & prices ought to be s adju/$ z to br+ equal ga9s to all individuals4 ,! equitable m9imum is adju/$ to ! v>y+ moral claims ( ! diff]5t classes ( lab\r]s2 !re=e1 any rise 9 remun]ation mu/ be equally di/ribut$ 9 ord] to leave ?is adju/m5t undi/urb$4 ,x is a fact1 h[ev]1 t a l>ge "p ( ! consum]s are n lab\r]s2 consequ5tly !y _c look to rises 9 wages z an (fset to _! losses ?r\gh rises 9 prices4 ,c !y be ju/ly requir$ to und]go ?is inconv5i5ce = ! b5efit ( lab\r]s :o are already gett+ ! equitable m9imum8 ,let u consid] fir/ ! case ( high] wages v]sus l[] prices4 ,a few progressive & effici5t manufactur]s ( %oes f9d !mselves receiv+ l>ge surplus pr(its :i* are likely to cont9ue4 ,s f> z ! presumptions ( /rict ju/ice are conc]n$1 !y may1 ow+ to _! sup]ior productivity1 reta9 ^! pr(its = !mselves4 ,seiz$1 h[ev]1 ) a feel+ ( b5evol5ce1 or a scruple ( consci5ce1 !y det]m9e to divide future pr(its ( ?is class among ei!r ! lab\r]s or ! consum]s4 ,if !y r$uce prices ! lab\r]s w ga9 some?+ z us]s ( %oes1 b ! o!r we>]s ( %oes w also be b5efici>ies4 ,if ! surplus pr(its are all div]t$ to ! lab\r]s 9 ! =m ( high] wages ! o!r consum]s ( %oes w ga9 no?+4 ,n[ !re does n seem to be any compell+ reason1 any c]ta9 moral basis1 = requir+ ! %oe manufactur]s to take "o c\rse r ?an ! o!r4 ,ei!r w be correct morally4 ,possibly ! mo/ p]fect plan w\ld be to effect a compromise by l[]+ prices some:at & giv+ "s rise 9 wages2 b !re is no /rict obligation to foll[ ?is c\rse4 ,to be sure1 s9ce ! manufactur]s h a "r to reta9 ! surplus pr(its1 !y h also a "r to di/ribute !m z !y pref]4 ,let u get rid ( ?is complication by assum+ t ! manufactur]s are indiff]5t conc]n+ ! disposition ( ! surplus1 leav+ ! matt] to be det]m9$ by ! comp>ative economic /r5g? ( lab\r]s & consum]s4 ,9 su* a situation x is /ill cle> t ei!r ( ! two classes w\ld be ju/ifi$ 9 /riv+ to secure any or all ( ! surplus4 ,no def9ite moral pr9ciple c be adduc$ to ! contr>y4 ,to put ! case 9 m g5]al t]ms3 !re exi/s no suffici5t reason = ma9ta9+ t ! ga9s ( *eap] production %\ld g to ! consum] r ?an to ! lab\r]1 or to ! lab\r] r ?an to ! consum]1 s long z ! lab\r] is already 9 receipt ( ! equitable m9imum4 ,turn+ n[ to ! "q ( high] wages at ! co/ ( high] prices1 we note t ?is w\ld result 9 at lea/ tempor>y h>d%ip to f\r classes ( p]sons3 ! weak] gr\ps ( wage e>n]s2 all self employ+ p]sons1 su* z f>m]s1 m]*ants1 & manufactur]s2 ! pr(essional classes2 & p]sons ^: pr9cipal income 0 d]iv$ f r5t or int]e/4 ,all ^! gr\ps w\ld h to pay m = ! necess>ies1 com=ts1 & luxuries ( liv+1 )\t be+ imm$iately able to raise _! own incomes correspond+ly4 ,nev]!less1 ! fir/ ?ree classes c\ld 9 ! c\rse ( "t =ce an increase 9 _! rev5ues suffici5t to (fset at lea/ ! m s]i\s inconv5i5ces ( ! increase 9 prices4 ,s f> z ! wage e>n]s are conc]n$1 x is und]/ood t all ^! w\ld h a "r to :atev] advance 9 ! money measure ( ! equitable m9imum 0 necess>y to neutralise ! high] co/ ( liv+ result+ f ! success ( ! m p[]ful gr\ps 9 obta9+ high] wages4 ,! "r ( a gr\p to ! equitable m9imum ( remun]ation is obvi\sly sup]ior to ! "r ( ano!r gr\p to m ?an t am\nt4 ,& a supreme wage-det]m9+ au?ority w\ld act on ?is pr9ciple4 ,x _c be %[n1 h[ev]1 t 9 ! abs5ce ( any su* au?ority emp[]$ to protect ! equitable m9imum ( ! weak] lab\r]s1 ! m p[]ful gr\ps are oblig$ to refra9 f dem&+ extra remun]ation4 ,! reason ( ?is we %all see pres5tly4 ,9 ! meantime we call att5tion to ! fact t1 ow+ to ! great] economic opportunity result+ f ! univ]sal preval5ce ( ! equitable m9imum & ( indu/rial education1 ev5 ! weak] gr\ps ( wage e>n]s w\ld be able to obta9 "s increases 9 wages4 ,9 ! long run ! m p[]ful gr\ps w\ld enjoy only ^? advantages :i* arise out ( sup]ior productivity & exceptional sc>city4 ,^! two factors are fundam5tal1 & c\ld n 9 any sy/em ( indu/ry be prev5t$ f conf]r+ advantages ^u _! possessors4 ,z reg>ds ! self employ+ classes1 ! rem$y = any undue h>d%ip suff]$ ?r\gh ! high] prices ( commodities w\ld be f\nd 9 a discont9uance ( _! pres5t functions until a correspond+ rise _h occurr$ 9 ! prices ( _! own products4 ,!y c\ld d ?is p>tly by organisation1 & p>tly by ent]+ into competition ) ! wage e>n]s4 ,sub/antially ! same rec\rse w\ld be op5 to ! pr(essional classes4 ,9 due c\rse ( "t1 !re=e1 ! remun]ation ( all work]s1 :e!r employs or self employ$ or pr(essional1 w\ld t5d to be 9 h>mony ) ! canons ( ef=ts1 sacrifices1 productivity1 sc>city1 & human welf>e4 ,s9ce ! level ( r5t is fix$ by =ces outside ! control ( lab\r]s1 employ]s1 or l&[n]s1 ! receiv]s !re( w\ld be unable to (fset its decreas$ pur*as+ p[] by increas+ its am\nt4 ,h[ev]1 ?is situation w\ld n be inh]5tly unju/1 nor ev5 inequitable4 ,l int]e/1 r5t is a workless income1 & has only a presumptive & hypo!tical ju/ification4 ,!re=e1 ! moral claim ( ! r5t receiv] to be protect$ aga9/ a decrease 9 ! pur*as+ p[] ( 8 income1 is inf]ior to ! moral claim ( ! lab\r] to use 8 economic p[] = ! purpose ( improv+ 8 condition beyond ! limits ( welf>e fix$ by ! equitable m9imum4 ,:at is true ( ! r5t receiv] 9 ?is respect applies likewise to ! case ( ! capitali/4 ,z we saw a few pages back1 ! wage e>n]s are morally free to take ?is c\rse at ! exp5se ( int]e/4 ,evid5tly !y may d ! same ?+ :5 ! consequ5ce is m]ely a dim9ution 9 its pur*as+ p[]4 ,to be sure1 if capital own]s %\ld reg>d _! sacrifices 9 sav+ z n suffici5tly rew>d$1 ow+ ei!r to ! l[ rate or ! l[ pur*as+ p[] ( int]e/1 !y w\ld be free to dim9i% or discont9ue sav+ until ! r$uc$ supply ( capital _h br\ght ab\t a rise 9 ! rate ( int]e/4 ,%\ld !y refra9 f ?is c\rse !y w\ld %[ t !y 7 satisfi$ ) ! exi/+ situation4 ,h5ce !y w\ld suff] no wrong at ! h&s ( ! lab\r]s :o =c$ up wages at ! exp5se ( prices4 ,two objections come readily to m9d aga9/ ! =ego+ p>agraphs4 ,! m skill$ lab\r gr\ps might organise !mselves into a monopoly1 & raise _! wages s high z to inflict ! same degree ( extortion ^u consum]s z t accompli%$ by a monopoly ( capitali/s4 ,?is is1 inde$1 possible4 ,! rem$y w\ld be int]v5tion by ! ,/ate to fix maximum wages4 ,j :]e ! maximum limit ought to be plac$ is a problem t c\ld be solv$ only ?r\gh /udy ( ! circum/ances ( ! case1 on ! basis ( ! canons ( ef=ts1 sacrifices1 productivity1 sc>city1 & human welf>e4 ,! second objection calls att5tion to ! fact t we h already decl>$ t ! m p[]ful lab\r gr\ps w\ld n be ju/ifi$ 9 exact+ m ?an ! equitable m9imum out ( a common wage fund1 s long z any weak] gr\p 0 bel[ t level2 yet ?is is virtually :at w\ld happ5 :5 ! =m] caus$ prices to rise to su* an ext5t t ! weak] work]s w\ld be =c$ bel[ ! equitable m9imum ?r\gh ! increas$ co/ ( liv+4 ,:ile ?is cont+5cy is likewise possible1 x is n a suffici5t reason = prev5t+ any gr\p ( lab\r]s f rais+ _! remun]ation at ! exp5se ( prices4 ,n e rise 9 prices w\ld effect ! exp5ditures ( ! weak] sections ( ! wage e>n]s4 ,9 "s cases ! burd5 w\ld be sub/antially all borne by ! bett] paid work]s & ! self employ+1 pr(essional1 & prop]ti$ classes4 ,:5 x did fall to any ext5t ^u ! weak] lab\r]s1 caus+ _! real wages to fall bel[ ! equitable m9imum1 x c\ld be remov$ )9 a reasonable "t by organisation or by legislation4 ,ev5 if ^! measures 7 f\nd ineffective1 if "s ( ! weak] gr\ps ( work]s %\ld suff] ?r\gh ! e/abli%m5t ( ! high] prices1 ?is arrangem5t w\ld be pref]able on ! :ole to "o 9 :i* no class ( lab\r]s 0 p]mitt$ to raise its remun]ation above ! equitable m9imum at ! exp5se ( prices4 ,a re/riction ( ?is sort1 :e!r by ! moral law or by civil regulation1 w\ld t5d to make wage lab\r a /atus ) no hope ( pecuni>y progress4 ,x is true t a univ]sal & indef9ite increase ( wages at ! exp5se ( prices might at l5g? leave ! great majority ( ! lab\r]s no bett] (f ?an !y 7 :5 !y _h m]ely ! equitable m9imum4 ,su* w\ld c]ta9ly be ! result if ! national product 7 only suffici5t to provide ! equitable m9imum = all work]s1 & t volume ( incomes = ! o!r ag5ts ( production :i* 0 requir$ to evoke f !m a fair degree ( productive effici5cy4 ,9 t case ! high] wages w\ld be an illusion4 ,! ga9 9 ! am\nt ( money w\ld be (fset by ! loss 9 its pur*as+ p[]4 ,ev5 s1 ?is condition w\ld be greatly sup]ior to a rgime 9 :i* ! lab\r]s 7 univ]sally prev5t$ f mak+ any ef=t to raise _! wages above a fix$ maximum4 ,conclud+ ,rem>ks ,all ! pr9ciples & conclusions def5d$ 9 ?is *apt] h be5 /at$ ) ref]5ce to ! pres5t di/ributive sy/em1 ) its free competition & its lack ( legal regulation4 ,7 all incomes & rew>ds fix$ by "s supreme au?ority1 ! same canons ( ju/ice w\ld be applicable1 & ! application w\ld h to be made 9 sub/antially ! same way1 if ! au?ority 7 desir\s ( e/abli%+ ! greate/ possible measure ( di/ributive ju/ice4 ,! ma9 exception to ?is /atem5t w\ld occur 9 relation to ! problem ( rais+ wages above ! equitable m9imum at ! exp5se ( prices4 ,9 mak+ any su* increase1 ! wage-fix+ au?ority w\ld be oblig$ to take into acc\nt ! effects ^u ! o!r classes ( lab\r]s1 & ^u all ! non-wage-e>n+ classes4 ,sub/antially ! same difficulties w\ld confront ! gov]nm5t 9 a collectivi/ organisation ( indu/ry4 ,! effect t a rise 9 ! remun]ation ( any class w\ld produce1 ?r\gh a rise 9 ! prices ( commodities1 ^u ! pur*as+ p[] ( ! incomes ( o!r classes1 w\ld h to be consid]$ & z ne>ly z possible asc]ta9$4 ,?is w\ld be no simple task4 ,simple or n1 x w\ld h to be fac$2 & ! guid+ e?ical pr9ciples w\ld always rema9 ef=ts1 sacrifices1 productivity1 sc>city1 & human welf>e4 ,! great] "p ( ! discussion c>ri$ on 9 ?is *apt] has a highly !oretical aspect4 ,f ! nature ( ! subject matt] ?is 0 inevitable4 ,nev]!less ! pr9ciples t h be5 enunciat$ & appli$ seem to be inconte/able4 ,9 s f> z !y are en=cible 9 actual life1 !y seem capable ( br++ ab\t a wid] measure ( ju/ice ?an any o!r e?ical rules t are available4 ,possibly ! applications & conclusions h be5 laid d[n ) too mu* def9it5ess & dogmatism1 & ! :ole matt] has be5 made too simple4 ,on ! o!r h&1 nei!r hone/y nor exp$i5cy is fur!r$ by an attitude ( intellectual helplessness1 academic hyp]-mode/y1 or practical agno/icism4 ,if !re exi/ moral rules & rational pr9ciples applicable to ! problem ( wage ju/ice1 x is our duty to /ate & apply !m z fully z we c4 ,obvi\sly we %all make mi/akes 9 ! process2 b until ! attempt is made1 & a c]ta9 7& v l>ge7 numb] ( mi/akes are made1 !re w be no progress4 ,we h no "r to expect t ready-made applications ( ! pr9ciples w drop f ,heav54 ,= a long "t to come1 h[ev]1 _m ( ! que/ions discuss$ 9 ?is *apt] w be devoid ( l>ge practical int]e/4 ,! problem imm$iately confront+ society is t ( rais+ ! remun]ation & /r5g!n+ g5]ally ! economic position ( ^? lab\r]s :o are n[ bel[ ! level1 n m]ely ( ! equitable m9imum1 b ( a dec5t livelihood4 ,?is problem w be ! subject ( ! next *apt]4 ,,*apt] ,,xxv ,,me?ods ,,( ,,increas+ ,,wages ,proposals = ! re=m ( social conditions are important 9 proportion to ! magnitude ( ! evils :i* !y are design$ to remove1 & are desirable 9 proportion to _! probable efficacy4 ,apply+ ^! pr9ciples to ! lab\r situation1 we f9d t among ! rem$ies propos$ ! primacy mu/ be accord$ to a m9imum wage4 ,x is ! mo/ important project = improv+ ! condition ( lab\r because x w\ld increase ! comp5sation ( "s two-?irds ( ! wage e>n]s1 & because ! ne$s ( ?is gr\p are great] & m urg5t ?an ! ne$s ( ! bett]-paid "o-?ird4 ,! =m] are bel[ ! level ( reasonable liv+1 :ile ! latt] are m]ely depriv$ ( ! opportunities ( a m ample & lib]al scale ( liv+4 ,h5ce ! degree ( inju/ice suff]$ by ! =m] is mu* great] ?an 9 ! case ( ! latt]4 ,a legal m9imum wage is ! mo/ desirable s+le measure ( indu/rial re=m because x promises a m rapid & compreh5sive increase 9 ! wages ( ! und]paid ?an any alt]native device t is n[ available4 ,! sup]ior importance ( a legally e/abli%$ m9imum wage is obvi\s2 its sup]ior desirability w =m ! subject ( ! pages t are imm$iately to foll[4 ,! ,m9imum ,wage 9 ,op]ation ,happily ! advocate ( ?is measure is no long] requir$ to meet ! objection t x is novel & utt]ly unc]ta94 ,= m ?an tw5ty ye>s x has be5 9 op]ation 9 ,au/ralasia4 ,x 0 implicit 9 ! compulsory arbitration act ( ,new ,zeal&1 pass$ 9 #ahid2 = ! wages :i* ! arbitration bo>ds en=ce are necess>ily ! l[e/ t ! affect$ employ]s are p]mitt$ to pay2 besides1 ! di/rict conciliation bo>ds are emp[]$ by ! law to fix m9imum wages on compla9t ( any gr\p ( und]paid work]s4 ,! fir/ =mal & explicit m9imum wage law ( mod]n times 0 enact$ by ! /ate ( ,victoria 9 #ahif4 ,9 ! beg9n+ x appli$ to only six trades1 b x has be5 ext5d$ at v>i\s legislative sessions1 s t to-day x protects sub/antially all ! lab\r]s ( ! /ate1 except ^? employ$ 9 agriculture4 ,s9ce ! ye> #aijj all ! o!r /ates ( ,au/ralia h made provision = ! e/abli%m5t ( m9imum wages4 ,at pres5t1 !re=e1 ! legal m9imum wage 9 "s =m prevails ?r\gh\t ! :ole ( ,au/ralasia4 ,9 #aiji ! ,trade ,bo>ds ,act au?oris$ ! application ( ?is device to f\r trades 9 ,great ,brita94 ,9 #aiac ! provisions ( ! ,act 7 made applicable to f\r o!r trades1 & 9 #aiad to a ?ird gr\p ( f\r indu/ries4 ,a special m9imum wage law 0 9 #aiab enact$ to gov]n ! entire coal m9+ indu/ry ( ! c\ntry4 ,! fir/ m9imum wage law 9 ! ,unit$ ,/ates 0 pass$ 9 #aiab by ,massa*usetts4 ,x has be5 foll[$ by simil> legislation 9 t5 o!r /ates2 namely1 ,arkansas1 ,cali=nia1 ,colorado1 ,kansas1 ,m9nesota1 ,nebraska1 ,oregon1 ,utah1 ,wa%+ton1 & ,wiscons94 ,cali=nia has adopt$ a con/itutional am5dm5t :i* specifically au?orises m9imum wage legislation = wom5 & m9ors1 & ,ohio add$ a simil> provision to h] con/itution :i* applies to m5 z well4 ,! m9imum wage /atutes ( ,au/ralasia & ,great ,brita9 cov] all classes ( work]s1 b ^? ( ! ,unit$ ,/ates are re/rict$ to m9ors & wom54 ,) ! exception ( ! ,utah act1 all ! important laws on ?is subject 9 all ?ree regions e/abli% m9imum wages indirectly1 by au?oris+ commissions & wage bo>ds to det]m9e ! actual rates4 ,9 ,au/ralasia & ,great ,brita9 ! /atutes d n attempt to specify any /&>d to :i* ! wage det]m9ations ( ! bo>ds mu/ con=m1 b ! t5d5cy 9 ! =m] c\ntry 9 rec5t ye>s has be5 to en=ce a liv+ wage z ! m9imum2 t is1 wage rates suffici5tly high to provide a dec5t family livelihood = m51 & a reasonable p]sonal livelihood = wom5 & m9ors4 ,all ! laws 9 ,am]ica b "o require ! commissions to e/abli% liv+ wages4 ,9 ,utah no commission is provid$ =1 z ! law itself specifies 9 t]ms ( money ! m9imum rates ( remun]ation t ! employ]s ( wom5 are p]mitt$ to pay4 ,! effectiv5ess ( ! laws t h be5 put into op]ation is at lea/ z great z _! fri5ds _h d>$ to hope4 ,accord+ to ,pr(essor ,m4 ,b4 ,hammond ( ,ohio1 :o inve/igat$ ! situation on ! spot 9 ! w9t] ( #aiaa-aiab1 ! p ( ,au/ralasia h accept$ ! m9imum wage z a p]man5t policy 9 ! indu/rial legislation ( t "p ( ! _w4 ,pr(essor ,hammond's obs]vations1 & ! replies ( ! ,*ief ,factory ,inspector ( ,melb\rne to ! ,new ,york ,factory ,inve/igat+ ,commission1 %[ ! ma9 effects ( m9imum wage legislation to be z foll[s3 sweat+ & /rikes h all b disappe>$2 ! effici5cy ( ! work]s has on ! :ole increas$2 ! numb] ( work]s unable to e>n ! legal m9imum has n be5 z great z mo/ p]sons _h fe>$1 & almo/ all ( !m h obta9$ employm5t at l[] remun]ation ?r\gh special p]mits2 ! legal m9imum has n only n become ! actual maximum1 b is exce$$ 9 ! case ( ! majority ( work]s2 no evid5ce exi/s to %[ t any indu/ry has be5 crippl$1 or =c$ to move out ( ! c\ntry2 ) ! exception ( a v few in/ances1 ! prices ( commodities h n be5 rais$ by ! law4#bea ,9 ! f\r trades ( ,great ,brita9 :i* 7 fir/ br\ght "u ! op]ation ( ! ,trade ,bo>ds ,act1 & :i* pres5t$ "s ( ! wor/ examples ( economic oppression1 ! b5eficial effects ( ! m9imum wage h be5 ev5 m /rik+ ?an 9 ,au/ralasia4 ,wages h be5 consid]ably rais$1 9 "s cases z high z "o hundr$ p] c5t42 dispirit$ & helpless work]s h ga9$ c\rage1 p[]1 & self-respect to su* an ext5t z to increase consid]ably _! memb]%ip 9 trade unions1 & to obta9 9 sev]al in/ances fur!r increases 9 remun]ation beyond ! legal m9imum2 ! comp5sation ( ! bett] paid lab\r]s has n be5 r$uc$ to ! level fix$ by ! trade bo>ds2 ! effici5cy ( bo? employs & productive processes has be5 on ! :ole increas$2 ! numb] ( p]sons =c$ out ( employm5t by ! law is negligible2 no important rise ( prices is traceable to ! law2 & ! numb] ( bus9ess conc]ns unable to pay ! increase 9 wages is too small to des]ve s]i\s consid]ation4 ,all ^! results _h be5 e/abli%$ be=e ! outbreak ( ! w>4#beb ,! legal m9imum wage has be5 c>ri$ into effect 9 only f\r /ates ( our own c\ntry4 ,x cov]s practically all ! indu/ries employ+ wom5 & m9ors 9 ,oregon & ,wa%+ton1 all ! work+ wom5 & girls ( ,utah1 & ! wom5 & m9ors ( a few trades 9 ,massa*usetts4 ,! rates e/abli%$ = exp]i5c$ wom5 v>y f #g4ej p] week 9 ,utah to t5 doll>s a week = "s classes 9 ,wa%+ton4 ,z ! fir/ wage det]m9ations 7 put into effect only 9 #aiac1 ,am]ican exp]i5ce has be5 too %ort z well z too n>r[ to w>rant c]ta9 conclusions4 ,s f> z x has be5 appli$1 h[ev]1 ! legal m9imum wage has be5 z successful 9 ! ,unit$ ,/ates z 9 ,au/ralasia or ,great ,brita94 ,all compet5t witnesses agree t x has br\ght a consid]able increase 9 wages to a consid]able proportion ( ! wom5 & m9ors 9 ! indu/ries 9 :i* x is op]ative1 & t x has nei!r ?r[n any important numb] ( work]s out ( employm5t nor =c$ any important conc]n out ( bus9ess4 ,speak+ ( ! ?ree lead+ indu/ries 9 :i* m9imum wages 7 fir/ e/abli%$ 9 ,wa%+ton1 ! ,indu/rial ,welf>e ,commission ( t /ate te/ifies3 ,seldom has any piece ( legislation1 9 prospect1 eng5d]$ s mu* discussion & s mu* criticism1 z did ! m9imum wage law1 ) ! intricacies ( its ramifications t\*+ almo/ e indu/ry 9 ! /ate1 l>ge or small1 & ! family ( ne>ly e wage e>n]2 seldom1 too1 has any law1 9 actuality1 be5 s well receiv$1 its application be5 accompli%$ ) s little op5 opposition1 &1 = a law ( ?is "*1 has be5 att5d$ ) s little indu/rial di/urbance z t same m9imum wage law4 ,none ( ! dire pr$ictions made prior to ! passage ( ! law h come ab\t to an ext5t t que/ions ! g5]al effici5cy ( ! law4 ,!re has be5 no :olesale dis*>ge ( wom5 employs1 no :olesale levell+ ( wages1 no :olesale replac+ ( high] paid work]s by *eap] help1 no t5d5cy to make ! m9imum ! maximum1 :ile ! employ]s ( ! /ate 9 g5]al h be5 foll[+ ! lett] & _s ( ! law1 & aid+ greatly 9 its application4444 ,! law1 9 o!r words1 has advanc$ ! wages ( practically sixty p] c5t4 ( ! work]s 9 ^! indu/ries1 & has done x )\t s]i\s opposition at a "t :5 bus9ess conditions 7 none too good4#bec ,! ,bureau ( ,lab\r ,/ati/ics ( ! ,unit$ ,/ates inve/igat$ ! op]ation ( ! m9imum wage 9 ! m]cantile e/abli%m5ts ( ,oregon at ! end ( ! fir/ ye>4 ,! conclusions ( ! inve/igators 7 9 brief t bo? ! numb] & ! proportion ( wom5 gett+ ! legal m9imum 7#i4be p] week7 = adults _h increas$1 t ! proportion obta9+ m ?an ?is rate _h likewise increas$1 t ^? :o _h receiv$ a rise 9 remun]ation did n %[ any decl9e 9 effici5cy1 t wom5 _h n be5 displac$ by m51 & t ! av]age increase 9 ! lab\r co/ result+ f ! advance 9 wages 0 only ?ree mills on ea* doll> ( sales4#bed ,! effects ( ! ,utah law dur+ ! fir/ ye> ( its op]ation 7 summ>is$ by ! ,lab\r ,commission]1 ,mr4 ,h4 ,t4 ,ha9es1 z foll[s3 a rise 9 ! wages ( a numb] ( wom5 & girls :o mo/ ne$$ ! additional sums ( money2 increas$ effici5cy ( female work]s admitt$ by mo/ employ]s2 b few cases ( wom5 or girls utt]ly depriv$ ( employm5t by ! law2 none ( ! high] paid wom5 suff]$ a r$uction 9 wages2 & n9ety p] c5t4 ( ! employ]s are satisfi$ ) ! m9imum wage /atute4#bee ,s f> z ! law has be5 appli$ 9 ,massa*usetts1 x seems to be relatively z successful z 9 ! o!r ?ree /ates4#bef ,! ,"q ( ,con/itutionality ,! pr9cipal reason :y ! m9imum wage laws on ! /atute books ( ! o!r sev5 /ates h n be5 c>ri$ into effect1 is ! unc]ta9ty ( ! validity ( m9imum wage legislation 9 our con/itutional sy/em4 ,9 ,novemb]1 #aiad1 a di/rict judge grant$ a writ ( injunction1 re/ra9+ ! ,m9imum ,wage ,commission ( ,m9nesota f en=c+ _! wage det]m9ations1 on ! gr\nd t ! law attempt$ to delegate legislative p[]1 & t its provisions violat$ t section ( ! f\rte5? am5dm5t to ! ,unit$ ,/ates ,con/itution :i* =bids any /ate to deprive a p]son ( life1 lib]ty1 or prop]ty )\t due process ( law4 ,"o ( ! c\rts ( ,arkansas has tak5 sub/antially ! same position4 ,! second objection urg$ by ! ,m9nesota judge is probably mu* ! m s]i\s ( ! two1 & is ! "o ^u :i* *ief emphasis has be5 laid 9 ! briefs fil$ 9 v>i\s c\rts by ! oppon5ts ( m9imum wage legislation4 ,z reg>ds lab\r legislation1 due process ( law may be practically translat$1 reasonable & necess>y ex]cise ( ! ,/ate's police p[]4 ,& ! police p[] means t indef9ite p[] ( ! ,/ate to legislate = ! heal?1 safety1 morals1 & welf>e ( ! community4#beg ,n[ x is obvi\s t a m9imum wage law deprives bo? employ] & employ ( "s lib]ty ( contract1 & also t x virtually deprives ! =m] ( "s prop]ty1 inasmu* z x g5]ally increases 8 outlay = wages4 ,on ! o!r h&1 ?is re/riction ( lib]ty & equival5t dim9ution ( prop]ty seem to be c>ri$ out 9 h>mony ) due process ( law1 s9ce !y con/itute an ex]cise ( ! police p[] ( ! ,/ate on behalf ( ! g5]al welf>e4 ,"s mon?s be=e ! ,m9nesota judge grant$ ! writ ( injunction aga9/ ! en=cem5t ( ! m9imum wage law ( t /ate1 a l[] c\rt & ! ,supreme ,c\rt ( ,oregon _h pron\nc$ ! ,oregon /atute con/itutional1 z a legitimate ex]cise ( ! police p[]4 ,an appeal f ?is judgm5t 0 argu$ 9 ! ,supreme ,c\rt ( ! ,unit$ ,/ates1 ,dec4 #ag1 #aiad1 b no decision has yet 7,octob]1 #aiaf7 be5 r5d]$4 ,until ! highe/ c\rt has spok5 on ! "q ( con/itutionality1 no /ate is likely to take any fur!r /ep t[>d e/abli%+ m9imum wages4 ,%\ld ! decision ( ! ,supreme ,c\rt be unfav\rable valid m9imum wage legislation w be impossible )\t an am5dm5t ( ! ,unit$ ,/ates ,con/itution4#beh ,! ,e?ical & ,political ,aspects ,:e!r x be consid]$ f ! viewpo9t ( e?ics1 politics1 or economics1 ! pr9ciple ( ! legal m9imum wage is impregnable4 ,! ,/ate has n only ! moral "r b ! moral duty to enact legislation ( ?is sort1 :5ev] any important gr\p ( lab\r]s are receiv+ less ?an liv+ wages4 ,"o ( ! elem5t>y functions & obligations ( ! ,/ate is to protect citiz5s 9 ! enjoym5t ( _! natural rights2 & ! claim to a liv+ wage is1 z we h se51 "o ( ! natural rights ( ! p]son ^: wages are 8 only means ( livelihood4 ,!re=e1 ! e/abli%m5t ( m9imum liv+ wages is n among ! s-call$ optional functions ( ! ,/ate 9 our pres5t indu/rial society4 ,:5ev] x c be successfully p]=m$1 x is a prim>y & necess>y function4 ,s f> z political propriety is conc]n$1 ! ,/ate may z reasonably be expect$ to protect ! citiz5 aga9/ ! physical1 m5tal1 & moral injury result+ f an unju/ wage contract1 z to safegu>d 8 money aga9/ ! ?ief1 8 body aga9/ ! bully1 or 8 life aga9/ ! assass94 ,9 all f\r cases ! ess5tial welf>e ( ! individual is injur$ or ?reat5$ ?r\gh ! abuse ( sup]ior =ce & cunn+4 ,inasmu* z ! legal m9imum wage is e?ically legitimate1 ! "q ( its enactm5t is1 politically speak+1 entirely a "q ( exp$i5cy4 ,! ,economic ,aspect ,n[ ! "q ( exp$i5cy is ma9ly economic4 ,a great deal ( nons5se has be5 writt5 & spok5 ab\t ! alleg$ conflict betwe5 ! legal m9imum wage & economic law4 ,economi/s h us$ no su* language1 inde$2 = !y "k t economic laws are m]ely ! expect$ uni=mities ( social action 9 giv5 circum/ances4 ,! economi/s "k t economic laws are no m oppos$ to a legal m9imum wage ?an to a legal eight h\r day1 or legal regulations ( safety & sanitation 9 "w places4 ,all ?ree ( ^! measures t5d to increase ! co/ ( production1 & sometimes c>ry ! t5d5cy into reality4 ,a m9imum wage law is difficult to en=ce1 b n mu* m s ?an mo/ o!r lab\r regulations4 ,at any rate1 ! practical consid]ation is :e!r ev5 a p>tial en=cem5t ( x w n result 9 a m>k$ b5efit to great numb]s ( und]paid work]s4 ,x may ?r[ "s p]sons1 ! sl[] work]s1 out ( employm5t2 b "h1 aga91 ! important "q relates to ! balance ( good ov] evil = ! majority ( ^? :o are bel[ ! level ( dec5t liv+4 ,at e po9t1 !re=e1 ! problem is "o ( concrete exp$i5cy1 n ( agreem5t or disagreem5t ) a real or imag9>y economic law4 ,"s ( ^? :o oppose ! device on ! gr\nd ( exp$i5cy set up an argum5t :i* runs ab\t z foll[s3 ! increase 9 wages caus$ by a m9imum wage law w be %ift$ to ! consum] 9 ! =m ( high] prices2 ?is result w 9 turn lead to a fall+ (f 9 ! dem& = products2 a less5$ dem& = goods means a r$uc$ dem& = lab\r2 & ?is implies a dim9i%$ volume ( employm5t1 s t ! la/ /ate ( ! work]s becomes worse ?an ! fir/4 ,n only is ?is conception too simple1 b x proves too mu*4 ,if x 7 correct e rise 9 wages1 h[soev] br\ght ab\t1 w\ld be ill advis$2 = e rise w\ld set 9 motion ! same fatal *a9 ( ev5ts4 ,volunt>y increases ( remun]ation by employ]s w\ld be q z futile z ! ef=ts ( a lab\r union4 ,?is is little m ?an ! old wages fund !ory 9 a new dress4 ,& x is no less contr>y to exp]i5ce4 ,! argum5t is too simple because x is bas$ ^u an insuffici5t analysis ( ! facts4 ,!re are no less ?an f\r s\rces f :i* ! increas$ wages requir$ by a m9imum wage law might 9 :ole or 9 "p be obta9$4 ,9 ! fir/ place1 high] wages w (t5 give ! work]s bo? ! physical capacity & ! _s t make possible a l>g] output4 ,?us1 !y c\ld !mselves equival5tly provide a "p at lea/ ( _! additional remun]ation4 ,:51 secondly1 ! employ] f9ds t lab\r is no long] s *eap t x c be pr(itably us$ z a sub/itute = intellig5t managem5t1 bett] me?ods ( production1 & up to date ma*9]y1 he w be compell$ to introduce "o or m ( ^! improvem5ts1 & to (fset increas$ lab\r co/ by increas$ manag]ial & me*anical effici5cy4 ,?is is :at seems to h happ5$ 9 ! tailor+ indu/ry ( ,engl&4 ,accord+ to ,mr4 ,tawney1 ! increas$ co/s ( production h1 on ! :ole1 be5 met by bett] organisation ( "w & by bett] ma*9]y4#bei ,9 ! ?ird place1 a "p ( ! increas$ wage co/ c be defray$ out ( pr(its1 9 two ways3 ?r\gh a r$uction 9 ! pr(its ( ! majority ( bus9ess conc]ns 9 an indu/ry2 b m frequ5tly ?r\gh ! elim9ation ( ! less effici5t1 & ! consequ5t increase 9 ! volume ( bus9ess done by ! m effici5t4 ,9 ! latt] e/abli%m5ts ! additional outlay = wages might be fully neutralis$ by ! dim9i%$ manag]ial exp5ses & fix$ *>ges p] unit ( product4 ,?is elim9ation ( unfit und]tak]s w\ld n only be 9 ! direction ( great] social effici5cy1 b 9 ! int]e/ ( bett] employm5t conditions g5]ally2 = x is ! less compet5t employ]s :o are ma9ly responsible = ! evil ( sweat+1 :5 !y /rive to r$uce ! co/ ( production by ! only me?od t !y "k2 t is1 ! oppression ( lab\r4 ,%\ld ! ?ree =ego+ factors fall %ort ( provid+ or neutralis+ ! increas$ wages1 ! rec\rse w\ld necess>ily be to ! f\r? s\rce2 namely1 a rise 9 ! price ( products4 ,h[ev]1 !re is no def9ite reason = assum+ t ! rise w 9 any case be suffici5t to cause a net decrease ( dem&4 ,9 ,oregon ! increas$ lab\r co/ due to ! m9imum wage law am\nt$1 z we h se51 to only ?ree mills p] doll> ( sales 9 m]cantile e/abli%m5ts4 ,ev5 if ?is 7 all %ift$ to ! consum]--some?+ t is practically impossible--x w\ld be equival5t to an increase ( only ?ree c5ts on ea* t5 doll>s' wor? ( pur*ases1 & ?irty c5ts on ea* hundr$4 ,! r$uction 9 sales on acc\nt ( su* a slight rise 9 prices w\ld be inf9itesimal4 ,9 ! case ( possibly ! majority ( products1 ! less5$ dem& on ! "p ( ! o!r classes might be entirely c\nt]balanc$ by ! increas$ dem& at ! h&s ( ! work]s ^: pur*as+ p[] _h be5 rais$ ?r\gh ! m9imum wage law4 ,! effect ^u sales1 & h5ce ^u bus9ess & production1 :i* foll[s f an increase 9 ! effective consum+ p[] ( ! lab\r+ classes is frequ5tly ignor$ or und]e/imat$4 ,s f> z consum]s' goods are conc]n$1 x seems c]ta9 t a giv5 addition to ! income ( ! wage-e>n+ classes w lead to a great] increase 9 ! dem& = products ?an an equal addition to ! income ( any o!r section ( ! p4 ,nev]!less1 ! possibility mu/ be admitt$ ( "s dim9ution ( employm5t1 ow+ to high] prices & decreas$ dem&4 ,& x is c]ta9 t "s work]s w\ld n be wor? ! legal m9imum to _! employ]s4 ,a "p1 b probably n all1 ( ^! c\ld f9d employm5t at a l[] wage1 ?r\gh a sy/em ( p]mits = sl[ work]s4 ,:atev] ! am\nt ( unemploym5t result+ f bo? ^! causes1 x w\ld und\bt$ly be an evil ( less] magnitude ?an t :i* at pres5t foll[s f ! "u-paym5t ( a majority ( ! lab\r+ population4 ,& x c\ld be rem$i$ by two measures :i* are 9 any case necess>y = social welf>e1 & :i* w\ld be ha/5$ by ! e/abli%m5t ( a legal m9imum wage4 ,^! are adequate & sci5tific laws & in/itutions to deal ) ! g5]al problem ( unemploym5t1 & a compreh5sive sy/em ( indu/rial & vocational tra9+4 ,^! conclusions1 !n1 seem to be ju/ifi$3 ! economic objections to a legal m9imum wage are n ess5tially diff]5t f ^? t may be urg$ aga9/ any o!r b5eficial lab\r legislation2 & !y h be5 suffici5tly refut$ by exp]i5ce to ?r[ ! burd5 ( pro( ^u ! objectors4 ,exp$i5cy sugge/s1 h[ev]1 t 9 ! ,unit$ ,/ates ! device %\ld be appli$ gradually 9 two respects3 = a few ye>s x ought to be conf9$ to wom5 & m9ors2 & :5 x is ext5d$ to m51 ! rates %\ld approa* ! level ( a complete family liv+ wage by /ages1 cov]+1 say1 ?ree or f\r ye>s4 ,! =m] re/riction w\ld enable ! law to be c>ri$ ?r\gh its exp]im5tal /ages ) a m9imum di/urbance to indu/ry z a :ole1 & ) a m9imum ( opposition1 & ! latt] w\ld greatly r$uce ! dang] ( male unemploym5t4#bfj ,op9ions ( ,economi/s ,:5 ! pres5t writ] made an argum5t = ! legal m9imum wage some?+ m ?an t5 ye>s ago1 he 0 able to f9d only "o ,am]ican economi/ :o _h t\*$ ! subject1 & ! v]dict ( t "o 0 unfav\rable4#bfa ,a little ov] a ye> ago1 ,dr4 ,john ,o',grady s5t an inquiry to "o hundr$ & sixty economi/s ( ! ,unit$ ,/ates to asc]ta9 _! op9ions on ! same subject4 ,( ! n9ety-f\r :o repli$ sev5ty 7 9 fav\r ( a m9imum wage law = wom5 & m9ors1 ?irte5 7 oppos$1 & elev5 7 non-committal2 fifty-five fav\r$ su* legislation = m51 tw5ty 7 aga9/ x1 & n9ete5 7 dis9cl9$ to give a categorical answ]4 ,ab\t ?ree-f\r?s ( ^? :o respond$ express$ ! op9ion t ! measure w\ld t5d to increase ! effici5cy bo? ( ! work]s & ( me?ods ( production4#bfb ,x is wor?y ( note t ! n9e memb]s ( ! late ,f$]al ,commission on ,indu/rial ,relations1 al?\gh disagree+ widely & v>i\sly on mo/ o!r important que/ions & proposals1 7 all fav\rable to a m9imum wage law = wom5 & m9ors4#bfc ,! mo/ compreh5sive & mo/ se>*+ criticism ( ! legal m9imum wage f ! viewpo9t ( economic !ory has be5 made by ,pr(essor ,f4 ,w4 ,taussig4#bfd ,:ile he does n commit himself def9itely to ! ass]tion t a univ]sal m9imum wage (1 say1 eight doll>s p] week1 w\ld cause a notable am\nt ( unemploym5t among wom51 he reg>ds ?is consequ5ce z suffici5tly probable to indicate ! ne$ ( go+ sl[ 9 ! regulation ( wom5's wages4 ,specifically1 he w\ld h public wage bo>ds refra9 f fix+ ! m9imum rates high en\gh to ma9ta9 wom5 liv+ away f home4 ,8 f9al & only s]i\s argum5t = ?is position relates to ! m>g9al effectiv5ess ( wom5 work]s4 ,he assumes t all ! fitful1 untra9$1 indiff]5t wom5 are got rid (2 t all :o (f] !mselves = "w at ! age ( 7say7 eighte5 ye>s h _h an indu/rially helpful education1-- & !n raises ! "q :e!r all ( !m w be able to get di/9ctly high] wages ?an are n[ curr5t4#bfe ,obvi\sly ! "q is n s]i\s unless x contemplates ! probability ( unemploym5t = a consid]able proportion4 ,if only "o p] c5t4 or less ( ! wom5 %\ld be unable to f9d employm5t at ! high] wages1 ! net social advantage ( ! m9imum wage device w\ld be s obvi\s z to r5d] ,pr(essor ,taussig's opposition q unreasonable4 ,mak+ ! assumptions quot$ above f 8 pages1 let u try to see :e!r 8 appreh5sions are economically ju/ifiable4 ,if !y are reasonable or probable !y mu/ re/ on "o ( two fundam5tal conditions3 ! occupations available to wom5 are too few to absorb all t w\ld seek to become wage e>n]s at eight doll>s p] week2 or a consid]able section ( !m w\ld be unable to produce su* a high wage4 ,possibly ! fir/ ( ^! assumptions is true1 b nei!r ,pr(essor ,taussig nor any o!r au?ority has pres5t$ evid5ce to support x1 & x is on ! face ( ?+s n suffici5tly probable to ju/ify hesitation 9 ! advocacy ( a m9imum liv+ wage4 ,if ! second assumption be correct1 if ! product ( a consid]able section ( wom5 7all adequately tra9$7 w\ld be insuffici5t to yield !m eight doll>s p] week1 9 addition to ! o!r co/s ( production1 ! conclusion is inevitable t ! same result w\ld foll[ ! attempt to pay all male adults 7likewise adequately tra9$7 a family liv+ wage (1 say1 fifte5 doll>s p] week4 ,= ! product ( ! av]age man does n exce$ t ( ! av]age woman by ev5 z great a ratio z fifte5 to eight4 ,if ! av]age woman is n wor? eight doll>s a week to an employ] 9 any k9d ( woman's occupation1 ! av]age man is n wor? fifte5 doll>s4 ,!re=e1 we _c hope1 ev5 ) ! aid ( a ?or\gh sy/em ( indu/rial & vocational tra9+1 to provide all adult males ( av]age capacity ) a family liv+ wage & ! m9imum means ( liv+ a reasonable life4 ,?is is a v]itable c\nsel ( despair4 ,x implies ei!r t ! law ( dim9i%+ returns is already op]at+ 9 ?is c\ntry 9 su* a way z to prev5t ! national product f be+ suffici5tly l>ge to provide a m9imum wage ( fifte5 doll>s a week = m51 & eight doll>s a week = wom52 or t ! product1 ?\gh ample = ?is purpose1 & = all ! o!r necess>y paym5ts to ! high] pric$ work]s & to ! o!r ag5ts ( production1 _c "u our pres5t indu/rial sy/em be s di/ribut$ z to atta9 ! desir$ end4 ,= ! fir/ ( ^! hypo!ses !re is no evid5ce wor?y ( ! "n4 ,if ,pr(essor ,k+ is "r 9 8 e/imate ( an av]age family income ( #adid doll>s annually#bff ! difficulty be=e u does n lie 9 ! field ( production4 ,pr(essor ,taussig seems to re/ 8 fe>s on ! second hypo!sis1 on ! assum$ impossibility ( br++ ab\t ! requir$ di/ribution2 = he po9ts out t increas$ effici5cy ( ! work]s may1 l increas$ effici5cy ( ! mat]ial in/rum5talities ( production1 9 ! long run r$\nd ma9ly to ! b5efit ( ! consum]s1 :ile wages may be little if any above ! old level4 ,if ^! fe>s are ju/ifi$1 if ! difficulty is entirely "o ( ! me*anism ( di/ribution1 & if x _c be ov]come by legal enactm5t1 !n is our competitive organisation ( indu/ry bankrupt1 & ! soon] we f9d out t fact def9itely ! bett]4 ,if ! legal m9imum wage w help to expose su* a situation1 w %[ t1 no matt] h[ mu* ! productivity ( ! work]s may be increas$1 a l>ge proportion ( !m mu/ by ! v nature ( ! competitive sy/em be =ev] condemn$ to live bel[ ! level ( dec5t exi/5ce1 !n ! m9imum wage is wor? hav+ m]ely z an in/rum5t ( economic enlight5m5t4 ,pr(essor ,taussig's argum5t & illu/rations#bfg seem to contemplate a condition 9 :i* ! numb] ( wom5 :o become fitt$ = a c]ta9 trade is excessive relatively to ! dem& = its products1 & to ! supply ( wom5 9 o!r indu/ries4 ,7 indu/rial tra9+ ?us misdirect$1 & 7 ! tra9$ p]sons unable or unwill+ to di/ribute !mselves ov] o!r occupations1 !y w\ld1 inde$1 face precisely ! same dilemma z d ! unskill$ work]s to-day4 ,t is2 a majority w\ld be condemn$ to insuffici5t wages1 or a m9ority to unemploym5t4 ,b we h be5 assum+ an adequate sy/em ( indu/rial & vocational tra9+1 a well-balanc$ sy/em1 "o t w\ld enable ! work]s to adju/ _! supply to ! dem& ?r\gh\t ! v>i\s occupations4 ,9 ^! conditions ! economic axiom t a supply ( goods is a dem& = goods %\ld become b5efic5tly effective3 ! work]s %\ld all be able to f9d employm5t1 & to obta9 ! great] "p ( _! increas$ product4 ,surely ,pr(essor ,taussig does n mean to commit himself to ! view t e increase 9 ! productive p[] ( ! work]s w 9 ! long run help !m only inasmu* z !y are consum]s1 ! lion's %>e ( ! additional product be+ tak5 by o!r classes4 ,probably su* is ! usual result 9 a rgime ( unregulat$ competition1 & unlimit$ fre$om z reg>ds ! wage contract4 ,b ?is is precisely :at we expect a m9imum wage law to correct & prev5t4 ,we rely ^u ?is device to enable ! work]s to reta9 = !mselves t %>e ( ! product :i* "u free competition w\ld automatically g to ! non-lab\r+ consum]s4 ,we hope t bl9d & de/ructive economic =ce c be held 9 *eck by delib]ate & b5efic5t social control4 ,! fact ( ! matt] seems to be t ,pr(essor ,taussig's argum5t is too hypo!tical & conjectural to ju/ify 8 pessimi/ic conclusions4 ,x is unpleasantly sugge/ive ( ! reason+ by :i* ! classical economi/s tri$ to %[ ! ,engli% lab\r]s ! folly & futility ( trade unionism4 ,o!r ,legislative ,proposals ,! ideal /&>d ( a m9imum wage law is a scale ( remun]ation adequate n only to ! pres5t ne$s ( individuals & families1 b to sav+s = ! cont+5cies ( ! future4 ,until su* "t z ! comp5sation ( all lab\r]s has be5 br\ght up to ?is level1 ! ,/ate %\ld make provision = *eap h\s+1 & = insurance aga9/ accid5ts1 sickness1 invalidity1 old age1 & unemploym5t4 ,! !ory und]ly+ su* measures is t !y w\ld m]ely supplem5t insuffici5t remun]ation1 & indirectly contribute to ! e/abli%m5t ( g5u9e liv+ wages4 ,9 ,europe1 h\s+ & insurance legislation is s common t no reasonable & intellig5t p]son any long] que/ions ! compet5cy or propriety ( su* action by ! ,/ate4 ,if an adequate legal m9imum wage1 9 ! s5se j def9$1 7 univ]sally e/abli%$1 ! ,/ate w\ld n be requir$ to d any?+ fur!r to effectuate wage ju/ice1 except 9 ! matt] ( vocational & indu/rial education4 ,?is w\ld qualify practically all p]sons to e>n at lea/ a liv+ wage1 & w\ld enable ^? :o und]w5t unusual sacrifices ei!r be=e or dur+ _! employm5t to comm& some?+ ov] & above4 ,9 o!r words1 all work]s w\ld !n be able to obta9 :at we h call$ ! equitable m9imum4 ,& ! lab\r+ class z a :ole w\ld possess suffici5t economic p[] to secure sub/antially all t 0 due by any ( ! canons ( di/ributive ju/ice4 ,lab\r ,unions ,! g5]al b5efits & a*ievem5ts ( lab\r organisations 9 ! ,unit$ ,/ates d[n to ! beg9n+ ( ! pres5t c5tury1 _c be m succ9ctly nor m au?oritatively /at$ ?an 9 ! words ( ! ,unit$ ,/ates ,indu/rial ,commission3 ,an ov]:elm+ prepond]ance ( te/imony be=e ! ,indu/rial ,commission indicates t ! organisation ( lab\r has result$ 9 a m>k$ improvem5t 9 ! economic condition ( ! work]s4#bfh ,"s ( ! mo/ conspicu\s & unque/ionable pro(s ( rises 9 wages effect$ by ! unions are af=d$ by ! build+ trades1 ! pr9t+ trades1 ! coal m9+ indu/ry1 & ! m skill$ occupations on ! railroads4 ,betwe5 #ahij & #aijg wages increas$ consid]ably m 9 ! organis$ ?an 9 ! unorganis$ trades4#bfi ,nev]!less1 :5 all due cr$it is giv5 to ! unions = _! "p 9 augm5t+ ! %>e ( ! product receiv$ by lab\r1 !re rema9 two important ob/acles :i* s]i\sly less5 _! efficacy z a means ( rais+ ! wages ( ! und]paid4 ,! fir/ is ! fact t ! unions /ill embrace only a small portion ( ! total numb] ( wage e>n]s4 ,accord+ to ,pr(essor ,leo ,wolman1 a little m ?an tw5ty-sev5 million ( ! ?irty-eight million p]sons engag$ 9 ga9ful occupations 9 ! ,unit$ ,/ates 9 #aiaj 7 wage e>n]s 9 ! ord9>y s5se ( t phrase1 & ( ^! tw5ty-sev5 million only #b1aaf1cag1 or #g4g p] c5t41 7 memb]s ( lab\r organisations4#bgj ,! memb]%ip to-day is ab\t two & ?ree qu>t] millions4 ,if ! total numb] ( wage e>n]s increas$ betwe5 #aiaj & #aiaf at ! same rate z dur+ ! prec$+ decade1 ! organis$ portion is n[ some:at less ?an #g4g p] c5t4 ( ! :ole4 ,evid5tly ! lab\r unions h n gr[n ) suffici5t rapidity1 nor are !y suffici5tly p[]ful to w>rant ! hope t !y w be soon able to lift ev5 a majority ( ! und]paid work]s to ! level ( liv+ wage conditions4 ,! second ob/acle is ! fact t only a small m9ority ( ! memb]s ( lab\r unions are drawn f ! unskill$ & und]paid classes1 :o /& mo/ 9 ne$ ( organisation4 ,! p] c5t4 ( ^? gett+ less ?an liv+ wages t is 9 ! unions is almo/ negligible4 ,) ! exception ( a few indu/ries1 ! unskill$ & ! und]paid %[ v little t5d5cy to increase notably _! organis$ proportion4 ,! fundam5tal reason ( ?is condition has be5 well /at$ by ,john ,a4 ,hobson3 ,! great problem ( pov]ty 444 resides 9 ! conditions ( ! l[-skill$ workman4 ,to live indu/rially "u ! new ord] he mu/ organise4 ,he _c organise because he is s poor1 s ignorant1 s weak4 ,because he is n organis$ he cont9ues to be poor1 ignorant1 weak4 ,"h is a great dilemma1 ( :i* :oev] %all h f\nd ! key w h done mu* to solve ! problem ( pov]ty4#bga ,! mo/ effective & exp$iti\s me?od ( rais+ ! wages ( ! und]paid ?r\gh organisation is by means ( ! indu/rial1 z di/+ui%$ f ! trade1 or craft1 union4 ,9 ! =m] all ! trades ( a giv5 indu/ry are unit$ 9 "o compact organisation1 :ile ! latt] includes only ^? :o "w at a c]ta9 trade or occupation4 ,= example3 ! ,unit$ ,m9e ,work]s embrace all p]sons employ$ 9 coal m9es1 f ! mo/ highly skill$ to ! l[e/ grade ( unspecialis$ lab\r2 :ile ! craft union is exemplifi$ 9 ! eng9e]s1 firem51 conductors1 swit*m51 & o!r gr\ps hav+ _! sep>ate organisations 9 ! railroad indu/ry4 ,! indu/rial union is z mu* conc]n$ ) ! welf>e ( its unskill$ z ( its skill$ memb]s1 & ex]ts ! :ole ( its organis$ =ce on behalf ( ea* & e gr\p ( work]s ?r\gh\t ! indu/ry :i* x cov]s4 ,! sup]ior suitability ( ! indu/rial type ( union to ! ne$s ( ! unskill$ lab\r]s is se5 9 ! fact t m ( !m are organis$ 9 ! coal m9+ ?an 9 any o!r indu/ry1 & h receiv$ great] b5efits f organisation ?an _! unskill$ fell[ work]s 9 any o!r indu/ry4 ,7 ! v>i\s classes ( railway employs comb9$ 9 "o union1 in/ead ( be+ organis$ along ! l9es ( _! sep>ate crafts1 x is q improbable t ! unskill$ majority w\ld be gett+1 z !y n[ are gett+1 less ?an liv+ wages4 ,:ile x is true t ! v>i\s craft unions 9 an indu/ry are (t5 f$]at$ into a compreh5sive association1 ! bond unit+ !m is n ne>ly s close1 nor s helpful to ! weak] gr\ps ( work]s z 9 ! case ( ! indu/rial unions4 ,human nature be+ :at x is1 h[ev]1 ! memb]s ( ! skill$ crafts _c all be induc$ or compell$ to adopt ! indu/rial type ( organisation4 ,! ,knights ( ,lab\r attempt$ to accompli% ?is1 & = a "t enjoy$ a consid]able measure ( success1 b 9 ! end ! organisation 0 unable to )/& ^? fundam5tal incl9ations :i* impel m5 to pref] ! m n>r[1 homog5e\s1 & exclusive type ( association4 ,! skill$ work]s refus$ to m]ge _! local & craft int]e/s 9 ! wid] int]e/s ( m5 ) :om !y _h no /rong nor imm$iate bonds ( sympa?y4 ,among lab\r]s1 z well z among o!r p]sons1 ! capacity = altruism is limit$ by di/ance 9 space & occupational condition4 ,! passion = di/9ction likewise affects ! wage e>n]1 impell+ ! high] gr\ps consci\sly or unconsci\sly to oppose association t t5ds to break d[n ! b>ri] ( sup]iority4 ,ow+ to _! great] res\rces & great] sc>city1 ! skill$ memb]s ( an indu/rial union are less dep5d5t ^u ! assi/ance ( ! unskill$ ?an ! latt] are dep5d5t ^u ! =m]2 yet ! skill$ memb]%ip is always 9 a m9ority1 & !re=e 9 dang] ( be+ subord9at$ to ! int]e/s ( ! unskill$ majority4 ,= ^! & _m o!r reasons x is q improbable t ! majority ( union lab\r]s c be amalgamat$ into indu/rial unions 9 ! ne> future4 ,! mo/ t c be expect$ is t ! v>i\s occupational unions )9 ea* indu/ry %\ld become f$]at$ 9 a m compact & effective way ?an n[ prevails1 ?us cons]v+ ! ma9 advantages ( ! local & craft association1 :ile assur+ to ! unskill$ work]s "s ( ! b5efits ( ! indu/rial union4 ,organisation ,v]sus ,legislation ,9 ! op9ion ( "s lab\r lead]s1 ! und]paid work]s %\ld place _! entire reliance ^u organisation4 ,! argum5ts = ?is position are ma9ly bas$ ^u ?ree cont5tions3 x is bett] t m5 %\ld d ?+s = !mselves ?an to call 9 ! int]v5tion ( ! ,/ate2 if ! work]s secure liv+ wages by law !y w be less likely to organise1 or to rema9 effici5tly organis$2 & if ! ,/ate fixes a m9imum wage x may "s day decide to fix a maximum4 ,)9 c]ta9 limits ! fir/ ( ^! propositions is inconte/able4 ,! self education1 self reliance1 & o!r exp]i5ces obta9$ by ! work]s ?r\gh an organis$ /ruggle = improvem5ts ( any k9d1 are too valuable to be lightly pass$ ov] = ! sake ( ! easi] me?od ( ,/ate assi/ance4 ,inde$1 x w\ld be bett] to accept some:at less1 or to wait some:at long]1 9 ord] t ! advantages might be secur$ ?r\gh organisation4 ,h[ev]1 ^! hypo!ses are n v]ifi$ z reg>ds ! m9imum wage problem4 ,! legal me?od promises ) a high degree ( probability to br+ ab\t univ]sal liv+ wages )9 t5 or fifte5 ye>s4 ,! *ampions ( organisation c po9t to no solid reasons = indulg+ ! hope t _! me?od w\ld a*ieve ! same result )9 a half a c5tury4 ,!re=e1 ! advantages ( ! device ( organisation are mu* m ?an neutralis$ by its disadvantages4 ,! fe> t ! devotion ( ! work]s to ! union w\ld decl9e z soon z liv+ wages _h be5 secur$ by law1 seems to h no adequate basis ei!r 9 exp]i5ce or 9 probability4 ,speak+ ( ! e/abli%m5t ( m9imum wages 9 ! tailor+ indu/ry ( ,great ,brita91 ,mr4 ,tawney decl>es t x has giv5 an impetus to trade unionism among bo? m5 & wom54 ,! memb]%ip ( ! societies connect$ ) ! tailor+ trade has increas$1 & 9 sev]al di/ricts ! trade unions h secur$ agreem5ts fix+ ! /&>d rate consid]ably above ! m9imum conta9$ 9 ! ,trade ,bo>d's det]m9ation4#bgb ,simil> te/imony comes f ,au/ralasia4 ,inde$1 ?is is precisely :at we %\ld be incl9$ to expect2 = ! work]s ^: wages _h be5 rais$ w\ld = ! fir/ "t possess ! money & ! c\rage to support unions2 & w\ld h suffici5t inc5tives !reto 9 ! natural desire to obta9 some?+ m ?an ! legal m9imum1 & 9 ! realisation t organisation 0 necess>y to give !m a voice 9 ! det]m9ation ( ! m9imum1 & to enable !m to co-op]ate 9 compell+ its en=cem5t4 ,inde$1 g5]al exp]i5ce %[s t organisation becomes normally effici5t & produces its be/ results only among work]s :o h already approximat$ ! level ( liv+ wages4 ,to be sure1 ! ,/ate c\ld set up maximum in/ead ( m9imum wages1--if ! employ+ classes 7 suffici5tly p[]ful4 ,b all indications po9t to a decl9e r ?an an increase 9 _! political influ5ce1 & to a correspond+ expansion 9 ! gov]nm5tal influ5ce ( ! lab\r+ classes & _! sympa?is]s4 ,moreov]1 ! lab\r lead]s :o urge ?is objection are inconsi/5t1 inasmu* z !y advocate o!r b5eficial lab\r legislation4 ,! di/9ction :i* !y pr(ess to f9d betwe5 laws t m]ely remove unfair legal & judicial disabilities & laws t r$uce ! l5g? ( ! work+ day or fix m9imum wages1 has no importance 9 practical politics or 9 ! m9d ( ! av]age legislature4 ,if ! political influ5ce ( lab\r %\ld ev] become s weak & t ( capital s /rong z to make re/rictive lab\r legislation g5]ally feasible1 legislators w\ld n conf9e _! unfri5dly action to ! field ( positive measures4 ,!y w\ld be q z ready to pass a law prohibit+ /rikes z to enact a /atute fix+ maximum wages4 ,! =mal legalisation ( /rikes1 picket+1 & ! prim>y boycott :i* is conta9$ 9 ! ,clayton ,act1 & = :i* ! lab\r unions work$ long & pati5tly1 c\ld conceivably be seiz$ ^u by "s future unfri5dly ,congress z a prec$5t & provocation = legislation :i* w\ld n only repeal all ! fav\rable provisions ( ! ,clayton ,act1 b subject lab\r to entirely new & f> m odi\s re/ra9ts & int]f]5ces4 ,! fact t gov]nm5ts pass$ maximum wage laws 9 ! pa/ is utt]ly irrelevant to ! "q ( wage legislation to-day4 ,a legal m9imum wage1 & a multitude ( o!r protective lab\r laws are desirable & wise 9 ! tw5tie? c5tury = ! simple reason t lab\r & ! fri5ds ( lab\r are suffici5tly p[]ful to utilise ?is me?od1 & because _! influ5ce seems de/9$ to increase r ?an decrease4 ,! contr>y hypo!sis is too improbable = s]i\s consid]ation4 ,! conclusions t seem ju/ifi$ by a compreh5sive & critical view ( all ! facts ( ! situation1 are t organisation is n ( itself an adequate means ( br++ ab\t liv+ wages = ! und]paid1 b t x ought nev]!less to be promot$ & ext5d$ among ^! classes1 n only = its direct effect ^u wages1 b = its be>+ ^u legislation4 ,! me?od ( organisation & ! me?od ( legislation are n only n mutually oppos$1 b are 9 a v natural & practical mann] complem5t>y4 ,p>ticipation 9 ,capital ,own]%ip ,:ile ^? work]s ^: remun]ation is bel[ ! level ( dec5t ma9t5ance are n ord9>ily 9 a position to become own]s ( any k9d ( capital1 _m ( !m1 especially among ! unm>ri$ m51 c accumulate sav+s by mak+ l>ge sacrifices4 ,z a matt] ( fact1 hundr$s ( ?\s&s ( ! und]paid h become int]e/ receiv]s ?r\gh ! m$ium ( sav+s banks1 real e/ate possessions1 & insurance policies4 ,e ef=t 9 ?is direction is di/9ctly wor? :ile1 & des]v+ ( enc\ragem5t4 ,lab\r]s :o are above ! m9imum wage level c1 ( c\rse1 save mu* l>g] am\nts1 & ) less sacrifices ?an ! und]paid classes4 ,9 all cases ! ma9 desid]atum is t ! work]s %\ld d]ive "s income f capital2 b x is almo/ equally important t _! capital own]%ip %\ld :]ev] possible take ! =m ( %>es 9 ! indu/ry 9 :i* !y are employ$1 or ! /ore at :i* !y buy _! goods4 ,?is means co-op]ative production & co-op]ative di/ribution4 ,! g5]al b5efits ( ! co-op]ative ent]prise h already be5 describ$ 9 *apt] xiv4 ,= ! wage e>n] proprietor%ip 9 a co-op]ative conc]n is pref]able to any o!r k9d ( capital own]%ip because ( ! tra9+ t x af=ds 9 bus9ess managem5t & responsibility1 9 indu/rial democracy1 & 9 ! capacity to subord9ate 8 imm$iate & selfi% int]e/s to 8 m remote & l>g] welf>e4 ,co-op]ative own]%ip ( ! tools ) :i* m5 "w has advantages ( its own ov] co-op]ative own]%ip ( ! /ores f :i* !y made _! pur*ases1 inasmu* z x increases _! control ov] ! conditions ( employm5t1 & gives !m inc5tives to effici5cy :i* results 9 a l>g] social product & a l>g] %>e !re( = !mselves4 ,z already po9t$ out 9 *apt] xiv1 ! ideal type ( productive co-op]ation is t kn[n z ! p]fect =m1 9 :i* ! work]s are ! exclusive own]s ( ! conc]n :]e !y ex]cise _! lab\r4 ,nev]!less1 ! f$]al type1 9 :i* ! productive conc]n is directly own$ by a :olesale co-op]ative1 indirectly by ! retail co-op]ative /ore1 & ultimately by ! co-op]ative consum]s1--pres5ts "o important advantage4 ,x c\ld be s modifi$ z to enable ! employs ( ! productive ent]prise to %>e ! own]%ip ( ! latt] ) ! :olesale e/abli%m5t4 ,su* an arrangem5t w\ld at once give ! work]s ! b5efits ( productive co-op]ation m5tion$ above1 & r5d] probable a satisfactory adju/m5t ( ! conflict+ claims ( produc]s & consum]s4 ,z intimat$ 9 *apt] xxiv1 su* a conflict is inh]5t 9 e sy/em ( indu/rial organisation1 & w become m evid5t & m acute 9 proportion to ! /r5g!n+ ( ! position ( lab\r4 ,a f9al reason = own]%ip ( capital by lab\r des]ves m5tion "h1 ev5 ?\gh x has no imm$iate be>+ ^u ! "q ( remun]ation4 ,7 all lab\r]s receiv+ ! full measure ( wages to :i* !y are entitl$ by ! canons ( di/ributive ju/ice1 x w\ld /ill be highly desirable t ! majority if n all ( !m %\ld possess "s capital1 pref]ably 9 ! productive & di/ributive conc]ns 9 :i* !y 7 imm$iately int]e/$4 ,x does n seem probable t our economic sy/em z n[ con/itut$1 ) ! capital own]s & ! capital op]ators = ! mo/ "p 9 two di/9ct classes1 w be ! f9al =m ( indu/rial organisation4 ,p>ticul>ly does ?is arrangem5t seem undesirable1 incongru\s1 & un/able 9 a society ^: political =m is t ( democracy4 ,ultimately ! work]s mu/ become n m]ely wage e>n]s b capitali/s4 ,any o!r sy/em w always conta9 & develop ! se$s ( social discont5t & social disord]4 ,,ref]5ces ,,on ,,section ,,iv ,,adams ,,& ,,sumn]3 ,lab\r ,problems4 ,macmillan2 #aije4 ,,commons ,,& ,,&rews3 ,pr9ciples ( ,lab\r ,legislation4 ,h>p]s2 #aiaf4 ,,walk]3 ,! ,wages ,"q4 ,new ,york2 #ahgf4 ,,ryan3 ,a ,liv+ ,wage4 ,macmillan2 #aijf4 ,,sn[d53 ,! ,liv+ ,wage4 ,london2 ,hodd] ,/\ghton4 ,o',,grady3 ,a ,legal ,m9imum ,wage4 ,wa%+ton2 #aiae4 ,,broda3 ,la ,fixation ,lgale des ,salaires4 ,p>is2 #aiab4 ,n4 ,y4 ,,factory ,,inve/igat+ ,,commission4 ,app5dix to ,vol4 ,,iii4 ,,tawney3 ,m9imum ,rates 9 ! ,*a9-,mak+ ,indu/ry4 ,london2 #aiad4 ,m9imum ,rates 9 ! ,tailor+ ,indu/ry4 ,london2 #aiae4 ,,turman3 ,le ,ca?olicisme ,social4 ,p>is2 #aijj4 ,,potti]3 ,de ,jure et ,ju/itia4 ,liege2 #aijj4 ,,poli]3 ,l',ide du ,ju/e ,salaire4 ,p>is2 #aijc4 ,,m5g]3 ,! ,"r to ! ,:ole ,produce ( ,lab\r4 ,london2 #ahii4 ,,g>riguet3 ,rgime du ,travail4 ,p>is2 #aijh4 ,,ne>+3 ,r$uc+ ! ,co/ ( ,liv+4 ,philadelphia2 #aiad4 ,,*ap93 ,! ,/&>d ( ,liv+ 9 ,new ,york ,city4 ,new ,york2 #aiji4 ,also ! works on co-op]ation cit$ 9 connection ) ,section ,,ii1 & ^? ( ,hobson1 ,c>v]1 ,ne>+ & ,/reight(f4 ,,footnotes3 #bea ,see articles by ,hammond 9 ! ,am]ican ,economic ,review1 ,june1 #aiac1 & 9 ! ,annals ( ! ,am]ican ,academy ( ,political & ,social ,sci5ce1 ,july1 #aiac2 & page #fb ( ! ,app5dix to ! ?ird volume ( ! ,report ( ! ,new ,york ,/ate ,factory ,inve/igat+ ,commission4 #beb ,see ! replies ( ! ,london ,bo>d ( ,trade to ! ,n4 ,y4 ,factory ,inve/igat+ ,commission1 on pages #gg1 #gh ( ! volume cit$ above2 & especially ! two monographs by ,r4 ,h4 ,tawney1 ,! ,e/abli%m5t ( ,m9imum ,rates 9 ! ,*a9-,mak+ ,indu/ry1 & ,! ,e/abli%m5t ( ,m9imum ,rates 9 ! ,tailor+ ,indu/ry4 ,london2 #aiad & #aiae4 #bec ,fir/ ,bi5nial ,report ( ! ,indu/rial ,welf>e ,commission ( ,wa%+ton1 pp4 #ac1 #ae4 #bed ,effect ( ,m9imum ,wage ,det]m9ations 9 ,oregon4 ,bullet9 ,no4 #agf ( ,unit$ ,/ates ,bureau ( ,lab\r ,/ati/ics4 #bee ,f a pap] read be=e ! ,national ,conv5tion ( ! ,association ( ,gov]nm5t ,lab\r ,(ficials1 ,na%ville1 ,t5n41 ,june #i1 #aiad4 #bef ,see ,bullet9s ( ,massa*usetts ,m9imum ,wage ,commission4 #beg ,see ! excell5t & v>i$ s]ies ( pap]s on ! subject 9 ,or?'s ,! ,relation ( ,gov]nm5t to ,prop]ty & ,indu/ry1 pp4 #ajc-agh4 ,g9n ,company2 #aiae4 #beh ,! argum5ts = & aga9/ ! con/itutionality ( a legal m9imum wage are adequately pres5t$ 9 ! briefs1 respectively1 ( ,l\is ,d4 ,br&eis & ,rome ,g4 ,br[n1 9 ! cases ( ,/ettl] vs4 ,o',h>a & ,simpson vs4 ,o',h>a4 ,! =m] is publi%$ by ! ,national ,consum]s' ,league1 ,new ,york1 & ! latt] by ! ,review ,publi%+ ,company1 ,m9neapolis4 #bei ,m9imum ,rates 9 ! ,tailor+ ,indu/ry1 p4 #afa4 #bfj ,"o ( ! be/ /atem5ts ( ! economic aspect ( ! m9imum wage is t by ,sidney ,webb1 9 ! ,j\rnal ( ,political ,economy1 ,dec41 #aiab4 ,probably ! mo/ v>i$ & compreh5sive g5]al discussion is ! symposium 9 ! ,survey1 ,feb4 #f1 #aiae4 ,see especially ! excell5t pres5tation 9 ,commons & ,&rews' ,pr9ciples ( ,lab\r ,legislation1 pp4 #afg-bjj4 #bfa ,see pages #cjc1 #cjd ( ,a ,liv+ ,wage2 ,macmillan1 #aijf4 #bfb ,o',grady1 ,a ,legal ,m9imum ,wage2 ,wa%+ton1 #aiae4 #bfc ,f9al ,report1 pp4 #aja1 #bee1 #cfd4 #bfd ,! ,qu>t]ly ,j\rnal ( ,economics1 ,may1 #aiaf4 ,a some:at less unfav\rable criticism is conta9$ 9 ! pap] by ,pr(essor ,john ,bates ,cl>k 9 ! ,atlantic ,mon?ly1 ,septemb]1 #aiac4 #bfe ,page #dcf4 #bff ,! ,weal? & ,income ( ! ,p ( ! ,unit$ ,/ates1 p4 #abi4 #bfg ,page #dcg4 #bfh ,f9al ,report1 p4 #hjb4 ,wa%+ton1 #aijb4 #bfi ,see article by ,pr(essor ,commons 9 ,! ,new ,encyclop$ia ( ,social ,re=m1 p4 #abcc4 #bgj ,! ,qu>t]ly ,j\rnal ( ,economics1 ,may1 #aiaf1 p4 #ejb4 #bga ,problems ( ,pov]ty1 p4 #bbg4 ,london1 #ahia4 #bgb ,m9imum ,rates 9 ! ,tailor+ ,indu/ry1 p4 #if4 ,,*apt] ,,xxvi ,,summ>y ,,& ,,conclusion ,?r\gh\t ?is book we h be5 conc]n$ ) a two-fold problem3 to apply ! pr9ciples ( ju/ice to ! work+s ( ! pres5t di/ributive sy/em1 & to po9t out ! modifications ( ! sy/em t seem$ to promise a l>g] measure ( actual ju/ice4 ,! me*anism ( di/ribution 0 describ$ 9 ! introductory *apt] z apportion+ ! national product among ! f\r classes t contribute ! necess>y factors to ! process ( production1 & ! fir/ "p ( ! problem 0 /at$ z t ( asc]ta9+ ! size ( ! %>e :i* ought to g to ea* ( ^! classes4 ,! ,l&[n] & ,r5t ,we began ?is inquiry ) ! l&[n] & 8 %>e ( ! product1 i4e41 r5t4 ,we f\nd t private own]%ip ( l& has prevail$ ?r\gh\t ! _w ) practical univ]sality ev] s9ce m5 began to till ! soil 9 settl$ communities4 ,! argum5ts ( ,h5ry ,george aga9/ ! ju/ice ( ! in/itution are invalid because !y d n prove t lab\r is ! only title ( prop]ty1 nor t m5's equal rights to ! e>? are incompatible ) private l&[n]%ip1 nor t ! s-call$ social production ( l& values conf]s ^u ! community a "r to r5t4 ,private own]%ip is n only socially pref]able to ! ,sociali/ & ! ,s+le ,tax sy/ems ( l& t5ure1 b x is1 z comp>$ ) ,socialism c]ta9ly1 & z comp>$ ) ! ,s+le ,tax probably1 among man's natural rights4 ,on ! o!r h&1 ! l&[n]'s "r to take r5t is no /rong] ?an ! capitali/'s "r to take int]e/2 & 9 any case x is inf]ior to ! "r ( ! t5ant to a dec5t livelihood1 & ( ! employ to a liv+ wage4 ,nev]!less1 ! pres5t sy/em ( l& t5ure is n p]fect4 ,its pr9cipal defects are3 ! promotion ( c]ta9 monopolies1 z1 an?racite coal1 /eel1 natural gas1 petroleum1 wat] p[]1 & lumb]2 ! div]sion ( excessive ga9s to l&[n]s1 z indicat$ by ! rec5t great increases 9 ! value ( l&1 & ! v l>ge hold+s by individuals & corporations2 & ! exclusion ( l>ge masses ( m5 f ! l& because ! own]s w n sell x at its pres5t economic value4 ,! rem$ies = ^! evils fall ma9ly "u ! heads ( own]%ip & taxation4 ,all m9]al1 timb]1 gas1 oil1 graz+1 & wat]-p[] l&s t are n[ publicly own$1 %\ld rema9 ! prop]ty ( ! /ates & ! nation1 & be br\ght into use ?r\gh a sy/em ( leases to private individuals & corporations4 ,cities %\ld pur*ase l&1 & lease x = long p]iods to p]sons :o wi% to erect bus9ess build+s & dwell+s4 ,by means ( taxation ! ,/ate might appropriate ! future increases ( l& values1 subject to ! reimbursem5t ( private own]s = result+ decreases 9 value2 & x c\ld transf] ! taxes on improvem5ts & p]sonal prop]ty to l&1 provid$ t ! process 7 suffici5tly gradual to prev5t any sub/antial decl9e 9 l& values4 ,9 "s cases ! ,/ate might ha/5 ! dissolution ( exceptionally l>ge & valuable e/ates ?r\gh ! imposition ( a sup]tax4 ,! ,capitali/ & ,int]e/ ,! ,sociali/ cont5tion t ! lab\r] has a "r to ! entire product ( indu/ry1 & !re=e t ! capitali/ has no "r to int]e/1 is invalid unless ! =m] alleg$ "r c be effectuat$ 9 a reasonable s*eme ( di/ribution2 & we "k t ! contemplat$ ,sociali/ s*eme is impracticable4 ,nev]!less1 ! refutation ( ! ,sociali/ position does n automatically prove t ! capitali/ has a "r to take int]e/4 ,( ! titles ord9>ily alleg$ 9 support ( su* a "r1 productivity & s]vice are inconclusive1 :ile ab/95ce is valid only 9 ! case ( ^? capital own]s to :om int]e/ 0 a necess>y inducem5t = sav+4 ,s9ce x is unc]ta9 :e!r suffici5t capital w\ld be provid$ )\t int]e/1 & s9ce ! legal suppression ( int]e/ is impracticable1 ! ,/ate is ju/ifi$ 9 p]mitt+ ! practice ( tak+ int]e/4 ,b ?is legal p]mission does n ju/ify ! individual int]e/-receiv]4 ,8 ma9 & suffici5t ju/ification is to be f\nd 9 ! presumptive title :i* arises out ( possession1 9 ! abs5ce ( any adv]se claimant ) a /rong] title to ?is p>ticul> %>e ( ! product4 ,! only available me?ods ( less5+ ! burd5 ( int]e/ are a r$uction 9 ! rate1 & a wid] diffusion ( capital ?r\gh co-op]ative ent]prise4 ,( ^! ! =m] pres5ts no def9ite or consid]able reasons = hope1 ei!r ?r\gh ! rapid increase ( capital or ! inevitable ext5sion ( ! indu/rial function ( gov]nm5t4 ,! second proposal conta9s great possibilities ( bett]m5t 9 ! fields ( bank+1 agriculture1 /ores1 & manufacture4 ,?r\gh co-op]ation ! weak] f>m]s1 m]*ants1 & consum]s c d bus9ess & obta9 goods at l[] co/s1 & save money = inve/m5t ) great] facility1 :ile ! lab\r]s c sl[ly b surely become capitali/s & int]e/-receiv]s1 z well z employs & wage-receiv]s4 ,! ,bus9ess ,man & ,pr(its ,j remun]ation = ! active ag5ts ( production1 :e!r !y be directors ( indu/ry or employs1 dep5ds fundam5tally ^u five canons ( di/ribution2 namely1 ne$s1 ef=ts & sacrifices1 productivity1 sc>city1 & human welf>e4 ,9 ! light ( ^! pr9ciples x is evid5t t bus9ess m5 :o use fair me?ods 9 competitive conditions1 h a "r to all ! pr(its t !y c obta94 ,on ! o!r h&1 no bus9ess man has a /rict "r to a m9imum liv+ pr(it1 s9ce t w\ld imply an obligation on ! "p ( consum]s to support sup]flu\s & ineffici5t directors ( indu/ry4 ,^? :o possess a monopoly ( _! products or commodities h no "r to m ?an ! prevail+ or competitive rate ( int]e/ on _! capital1 ?\gh !y h ! same "r z competitive bus9ess m5 to any surplus ga9s t may be due to sup]ior effici5cy4 ,! pr9cipal unfair me?ods ( competition2 t is1 discrim9ative und]sell+1 exclusive-sell+ contracts1 & discrim9ation 9 transportation1 are all unju/4 ,! rem$ies = unju/ pr(its are to be f\nd ma9ly 9 ! action ( gov]nm5t4 ,! ,/ate %\ld ei!r own & op]ate all natural monopolies1 or s regulate _! *>ges t ! own]s w\ld obta9 only ! competitive rate ( int]e/ on ! actual inve/m5t1 & only su* surplus ga9s z are cle>ly due to sup]ior effici5cy4 ,x %\ld prev5t artificial monopolies f practis+ extortion t[>d ei!r consum]s or competitors4 ,%\ld ! me?od ( dissolution prove inadequate to ?is end1 ! ,/ate ought to fix maximum prices4 ,inasmu* z ov]capitalisation has frequ5tly enabl$ monopoli/ic conc]ns to obta9 unju/ pr(its1 & always pres5ts a /rong temptation 9 ?is direction1 x %\ld be legally prohibit$4 ,a consid]able "p ( ! excessive pr(its already accumulat$ c be subject$ to a bett] di/ribution by progressive income & inh]itance taxes4 ,f9ally1 ! possessors ( l>ge =tunes & incomes c\ld help to br+ ab\t a m equitable di/ribution by volunt>ily comply+ ) ! ,*ri/ian duty ( be/[+ _! sup]flu\s goods ^u ne$y p]sons & objects4 ,! ,lab\r] & ,wages ,none ( ! !ories ( fair wages t h be5 exam9$ "u ! heads ( ! prevail+ rate1 ex*ange-equival5ce1 or productivity is 9 full h>mony ) ! pr9ciples ( ju/ice4 ,! m9imum ( wage ju/ice c1 h[ev]1 be describ$ ) suffici5t def9it5ess & c]ta9ty4 ,! adult male lab\r] has a "r to a wage suffici5t to provide himself & family ) a dec5t livelihood1 & ! adult female has a "r to remun]ation t w enable h] to live dec5tly z a self support+ individual4 ,at ! basis ( ?is "r are ?ree e?ical pr9ciples3 all p]sons are equal 9 _! inh]5t claims ^u ! b\nty ( nature2 ?is g5]al "r ( access to ! e>? becomes concretely valid ?r\gh ! exp5diture ( useful lab\r2 & ^? p]sons :o are 9 control ( ! goods & opportunities ( ! e>? are morally b\nd to p]mit access !reto on reasonable t]ms by all :o are will+ to "w4 ,9 ! case ( ! lab\r]1 ?is "r ( reasonable access c be effectuat$ only ?r\gh a liv+ wage4 ,! obligation ( pay+ ?is wage falls ^u ! employ] because ( 8 function 9 ! indu/rial organism4 ,& ! lab\r]'s "r to a liv+ wage is morally sup]ior to ! employ]'s "r to int]e/ on 8 capital4 ,lab\r]s :o put =? unusual ef=ts or make unusual sacrifices h a "r to a proportionate excess ov] liv+ wages1 & ^? :o are exceptionally productive or exceptionally sc>ce h a "r to ! extra comp5sation t goes to !m "u ! op]ation ( competition4 ,lab\r]s :o are receiv+ ! equitable m9imum describ$ 9 ! la/ s5t5ce h a "r to /ill high] wages at ! exp5se ( ! capitali/ & ! consum]1 if !y c secure !m ?r\gh ! processes ( competition2 = ! additional am\nt is an e?ically unassign$ or own]less prop]ty :i* may be tak5 by ei!r lab\r]1 capitali/1 or consum]1 provid$ t !re is no artificial limitation ( supply4 ,! me?ods ( increas+ wages are ma9ly ?ree3 a m9imum wage by law1 lab\r unions1 & co-op]ative ent]prise4 ,! fir/ has be5 fairly well approv$ by exp]i5ce1 & is 9 no wise contr>y to ! pr9ciples ( ei!r e?ics1 politics1 or economics4 ,! second has likewise be5 v9dicat$ 9 practice1 ?\gh x is ( only small efficacy 9 ! case ( ^? work]s :o are receiv+ less ?an liv+ wages4 ,! ?ird w\ld enable lab\r]s to supplem5t _! wage incomes by int]e/ incomes1 & w\ld r5d] our indu/rial sy/em m /able by giv+ ! work]s an influ5tial voice 9 ! conditions ( employm5t1 & lay+ ! f\ndation ( t cont5tm5t & cons]vatism :i* arise naturally out ( ! possession ( prop]ty4 ,z a matt] ( conv5i5ce1 ! =ego+ p>agraphs may be fur!r summ>is$ 9 ! foll[+ abridgm5t3 ,! l&[n] has a "r to all ! economic r5t1 modifi$ by ! "r ( 8 t5ants & employs to a dec5t livelihood1 & by ! "r ( ! ,/ate to levy taxes :i* d n sub/antially l[] ! value ( ! l&4 ,! capitali/ has a "r to ! prevail+ rate ( int]e/1 modifi$ by ! "r ( 8 employs to ! equitable m9imum ( wages4 ,! bus9ess man 9 competitive conditions has a "r to all ! pr(its t he c obta91 b corporations possess+ a monopoly h no "r to unusual ga9s except ^? due to unusual effici5cy4 ,! lab\r] has a "r to liv+ wages1 & to z mu* m z he c get by competition ) ! o!r ag5ts ( production & ) 8 fell[ lab\r]s4 ,conclud+ ,obs]vations ,no d\bt _m ( ^? :o h tak5 up ?is volume ) ! expectation ( f9d+ !re9 a satisfactory =mula ( di/ributive ju/ice1 & :o h pati5tly foll[$ ! discussion to ! end1 are disappo9t$ & dissatisfi$ at ! f9al conclusions4 ,bo? ! p>ticul> applications ( ! rules ( ju/ice & ! proposals = re=m1 mu/ h seem$ complex & indef9ite4 ,!y are n ne>ly s simple & def9ite z ! pr9ciples ( ,socialism or ! ,s+le ,tax4 ,& yet1 !re is no escape f ^! limitations4 ,nei!r ! pr9ciples ( indu/rial ju/ice nor ! con/itution ( our socio-economic sy/em is simple4 ,!re=e1 x is impossible to give our e?ical conclusions any?+ l ma!matical accuracy4 ,! only claim t is made = ! discussion is t ! moral judgm5ts are fairly reasonable1 & ! propos$ rem$ies fairly efficaci\s4 ,:5 bo? h be5 realis$ 9 practice1 ! next /ep 9 ! direction ( wid] di/ributive ju/ice w be mu* cle>] ?an x is to-day4 ,al?\gh ! atta9m5t ( great] ju/ice 9 di/ribution is ! prim>y & mo/ urg5t ne$ ( our "t1 x is n ! only "o t is ( great importance4 ,no conceivable me?od ( di/ribut+ ! pres5t national product w\ld provide e family ) ! means ( support+ an automobile1 or any equival5t symbol ( com=t4 ,inde$1 !re are indications t ! pres5t am\nt ( product p] capita _c long be ma9ta9$ )\t bett] cons]vation ( our natural res\rces1 ! ab&onm5t ( our national habits ( wa/efulness1 m sci5tific me?ods ( soil cultivation1 & va/ly great] effici5cy on ! "p ( bo? capital & lab\r4 ,nor is ?is all4 ,nei!r j di/ribution1 nor increas$ production1 nor bo? comb9$1 w insure a /able & satisfactory social ord] )\t a consid]able *ange 9 human he>ts & ideals4 ,! ri* mu/ cease to put _! fai? 9 mat]ial ?+s1 & rise to a simpl] & san] plane ( liv+2 ! middle classes & ! poor mu/ give up _! envy & snobbi% imitation ( ! false & degrad+ /&>ds ( ! opul5t classes2 & all mu/ le>n ! elem5t>y lesson t ! pa? to a*ievem5ts wor? :ile leads ?r\gh ! field ( h>d & hone/ lab\r1 n ( lucky deals or g\g+ ( ! neighb\r1 & t ! only life wor? liv+ is t 9 :i* "o's *]i%$ wants are few1 simple1 & noble4 ,= ! adoption & pursuit ( ^! ideals ! mo/ necess>y requisite is a revival ( g5u9e religion4 ,,index ,ab/95ce3 z a title to int]e/1 #ahb-ahf4 ,adams1 ,t4 ,s43 #cja1 #cjb4 ,adam ,smi?3 #cca1 #cda4 ,agriculture3 co-op]ation 91 #bag-bbj4 ,alaska3 leas+ sy/em 91 #if4 ,altruism3 efficacy ( "u ,socialism1 #afe-afg2 promot$ by co-op]ation1 #bbi4 ,ambrose1 ,sa9t3 #cje4 ,am]ican ,sug> ,ref9+ ,company3 #bfg1 #bgb1 #bhi4 ,am]ican ,tobacco ,company3 #bfc1 #bfg1 #bhh4 ,analogy3 economic1 z ju/ify+ int]e/1 #bje1 #bjf4 ,an?racite coal3 a monopoly1 #ge1 #gh1 #ie1 #acb4 ,anto9e1 ,*>les3 #ccg-cdj4 ,anton9us1 ,sa9t3 #bgj4 ,aqu9as1 ,sa9t ,?omas3 #fc1 #fd1 #age1 #aha1 #bjh1 #cjd1 #cjf1 #cjg1 #ccc4 ,arbitration3 failure (1 #cbd4 ,a%ley1 ,w4 ,j43 #i4 ,a/or e/ate3 #hh1 #hi4 ,augu/9e1 ,sa9t3 #cje4 ,au/ralasia3 special l& taxes 91 #aah-abj1 #aca2 m9imum wage 91 #dja1 #djb4 ,au?orities3 ,ca?olic & ,prote/ant1 on liv+ wage1 #bgg1 #bgh4 ,basil1 ,sa9t3 #cje4 ,bible1 !3 on ! duty ( b5evol5ce1 #cjc1 #cjd1 #caf1 #cag4 ,br&eis1 ,l\is ,d43 #bfe1 #bge4 ,bus9ess man3 functions & rew>ds (1 #bcg-bci1 #bee-beh2 no "r ( to m9imum pr(its1 #beh-bfj1 #cfb1 #cfc2 ! sup]flu\s1 #bfj1 #bfa4 ,canada3 special l& taxes 91 #aag-abj4 ,canoni/3 doctr9e ( wage ju/ice1 #ccc-ccf4 ,canons ( di/ributive ju/ice3 #bdc-bec4 ,capital3 mean+ (1 #acg1 #ach2 p[] ( to create value1 #adf-adh2 ,ca?olic tea*+ conc]n+ int]e/ on1 #age-agg2 titles ( to int]e/1 #agg-ahf2 value ( 9 a no-int]e/ rgime1 #ahh-aij2 ne$ = a wid] di/ribution (1 #bac1 #bad2 ne$ = own]%ip ( by lab\r1 #bad1 #bbi1 #bcj4 ,capitali/s3 two k9ds (1 #ach2 expropriation (1 #aed-aeh2 "r ( to take int]e/1 #bja-bji2 claims (1 v]sus claims ( lab\r]s1 #cfg-cfi1 #cij-cic1 #cif4 ,c>negie1 ,&rew3 #cjj4 ,c>v]1 ,t4 ,n43 #cea-cee4 ,ca?olic ,*ur*3 attitude ( t[>d int]e/1 #agb-agf4 ,*ild work]s3 "r ( to a liv+ wage1 #cgc4 ,*ri/ian conception ( welf>e3 #caf-cah4 ,cl>k1 ,j4 ,b43 #bga1 #cdg-cea4 ,comp5sation3 to l&[n]s1 #cd-ci2 to capitali/s "u ,socialism1 #aed-aeh4 ,competition3 alleg$ failure (1 #bge-bgh4 ,confiscation3 ( l& values "u ! ,s+le ,tax1 #cd-ci2 ( capital "u ,socialism1 #aed-aeh2 ( weal? by taxation1 #big1 #bih4 ,con/itutionality ( m9imum wage laws3 #dje-djg4 ,consum]3 injury to ?r\gh /ockwat]+1 #bhb-bhh2 obligations ( to bus9ess man1 #beh1 #bei1 #cfb1 #cfc2 v]sus lab\r]1 #cic-cih4 ,contract3 on]\s1 #cbf2 free1 z a rule ( wage ju/ice1 #cbh-ccj1 #cgj-cgb4 ,co-op]ation3 z a p>tial solv5t ( capitalism1 #baj-bcc2 ess5ce & k9ds (1 #bad1 #bae2 9 bank+1 #baf1 #bag2 9 agriculture1 #bag-bbj2 9 /ores1 #bbj-bbb2 9 production1 #bbb-bbh2 effect ( on social /ability1 #bbi1 #bcj2 z comp>$ ) individualism & ,socialism1 #bcj1 #bca2 prov9ce & limitations (1 #bca-bcc2 be>+ ( on ! sup]flu\s bus9ess man1 #bfj1 #bfa2 & on ! lab\r+ classes1 #dbc-dbe4 ,co-p>tn]%ip3 #bbc1 #bbd4 ,corporation3 pr(its ( a1 #bda1 #bdb1 #beg1 #beh1 #bfb1 #chi4 ,co/ ( liv+3 #cgh1 #cgi4 ,co/ ( production3 ( capital1 #ahh1 #ahi4 ,cr$it societies3 co-op]ative1 #baf1 #bag4 ,defects ( our l& sy/em3 #gd-ic2 monopoly1 #ge-hj2 excessive ga9s1 #hj-hi2 exclusion1 #ij-ic4 ,devas1 ,*>les3 #ahd4 ,disagreeable tasks3 #chd1 #che4 ,dixon1 ,f4 ,h43 #cbc4 ,discrim9ative transportation contracts3 #bgb1 #bgc4 ,discrim9ative und]sell+3 #bfg-bgj4 ,di/ribution ( sup]flu\s weal?3 #cjc-cai4 ,di/ributive ju/ice3 canons (1 #bdc-bec1 #cha1 #chb4 ,e>?3 "r ( access to1 #ceh-cfj4 ,economic det]m9ism3 inconsi/5t ) e?ical judgm5ts1 #bj1 #ade1 #adf1 #cdc1 #cdd4 ,effici5cy3 monopoli/ic1 #bfe-bfg1 #bge-bgg1 #bgi2 exceptional1 #chh-cij4 ,ef=ts3 exceptional1 z claim to rew>ds1 #chb-chc4 ,ef=ts & sacrifices3 z canons ( di/ribution1 #bde-bdg4 ,ely1 ,r4 ,t43 #ccj4 ,employ]3 ga9s ( f wage contract1 #cbg1 #cbh2 obligation ( to pay a liv+ wage1 #cfe-cgb4 ,engels1 ,f43 #bj4 ,ensor1 ,e4 ,k43 #ej4 ,equal ga9s3 z a canon ( wage ju/ice1 #cbf-cbh4 ,equality3 z a canon ( ju/ice1 #bdc1 #bdd2 ( m5's claims to ! b\nty ( nature1 #ceh1 #cei2 ( rights to a dec5t livelihood1 #cfj-cfc4 ,equitable m9imum3 ( wages1 #chh1 #cij1 #cib1 #cic1 #cie1 #cig1 #cih1 #cii1 #dag4 ,equity3 mean+ (1 #bef4 ,ex*ange-equival5ce3 !ories (1 #cbf-cdj2 equal ga9s1 #cbf-cbh2 free contract1 #cbh-ccj2 m>ket value1 #ccj-ccb2 m$ival1 #ccb-ccf2 mod]n1 #ccf-cdj4 ,exclusion f ! l&3 #ij-ic4 ,exclusive-sales contracts3 #bgj-bgb4 ,expropriation3 ( capitali/s "u ,socialism1 #aed-aeh4 ,extr9sic titles3 ( int]e/1 #agb4 ,family liv+ wage3 #cgc-cgf4 ,fa!rs ( ! ,*ur*3 on private prop]ty 9 l&1 #fb2 on duty ( b5efic5ce1 #cje1 #cjf4 ,fay1 ,c4 ,r43 #bad1 #bba1 #bbg4 ,fi%]1 ,irv+3 #aif4 ,=tunes3 legal limitation (1 #bia-cjb2 directly1 #bib-bie2 by taxation1 #bif-cjb4 ,france3 co-op]ative production 91 #bbc4 ,fu/el de ,c\langes3 #i4 ,ga9s3 excessive f l&1 #hj-hi2 f monopolies1 #bfc-bfe4 ,g]many3 co-op]ation 91 #baf4 ,giff51 ,sir ,rob]t3 #ahi4 ,godw91 ,w43 #cda4 ,gov]nm5t own]%ip3 #ic-ie2 limitations (1 #afc-afe2 & rate ( int]e/1 #bab4 ,great ,brita93 co-op]ation 91 #bbj-bbb2 income taxes 91 #bii-cjj2 m9imum wage 91 #dja1 #djb4 ,ha9es1 ,h4 ,t43 #dje4 ,hammond1 ,m4 ,b43 #djb4 ,h5ry ,george3 on primitive common own]%ip1 #ag2 on fir/ occupancy1 #ba-bd2 on title ( lab\r1 #bd-bi2 on natural "r to l&1 #cj-ci2 on "r ( community to l& values & r5t1 #ci-dg2 on ,s+le ,tax1 #ea1 #eb4 ,hillquit1 ,morris3 #aei4 ,hobson1 ,j4 ,a43 #dah4 ,h[e1 ,f4 ,c43 #gf-gh4 ,human welf>e3 ! te/ ( prop]ty rights 9 l&1 #cf-ch2 & ( a sy/em ( l& t5ure1 #gd2 & ( increm5t taxes1 #aji-aaa2 & ( titles ( prop]ty1 #aej1 #aea1 #bdd1 #bic-bie2 z a canon ( di/ributive ju/ice1 #beb1 #bec2 z ju/ify+ pr(its1 #bef1 #beg1 #chi2 z ju/ify+ high] ?an liv+ wages1 #chf4 ,hyndman & ,morris3 #bj4 ,income3 di/ribution ( national1 #ha-hc4 ,incomes3 inju/ice ( equal1 #bdd2 progressive taxation (1 #big-cjb4 ,increm5t taxes3 #ajb-aag4 ,ineffici5cy3 ( lead]%ip & lab\r "u ,socialism1 #aeh-afh4 ,inh]itance3 legal limitation (1 #bic-bie2 progressive taxation (1 #bif-cjb4 ,int]e/3 nature (1 #acg-adj2 rate (1 #ada-add2 alleg$ intr9sic ju/ifications (1 #aga-ahf2 attitude ( ,*ur* t[>d1 #agb-agf2 extr9sic titles (1 #agb2 & ! title ( productivity1 #agf-aha2 & ! title ( s]vice1 #aha1 #ahb2 & ! title ( ab/95ce1 #ahb-ahf2 social & presumptive ju/ifications (1 #ahg-bji2 necessity (1 #aia-aii2 civil au?orization1 #bja-bjd2 h[ ju/ifi$1 #bjd-bji1 a workless income1 #baj2 possibility ( r$uc+ rate1 #baa-bac2 di/+ui%$ f pr(its1 #bch1 #bci2 v]sus wages1 #cij-cic4 ,inve/or3 ! innoc5t1 #bhf1 #bhg4 ,irel&3 r$uction ( r5ts 91 #fi-ga2 compulsory sale ( l& 91 #aaj2 co-op]ation 91 #bag-bai4 ,italy3 co-op]ation 91 #bbc4 ,ju/ice3 dep5d5ce ( on *>ity1 #cah2 n f\nd 9 prevail+-rate !ory1 #cbe2 nor 9 ex*ange equival5ce !ories1 #cbf-cdj2 nor 9 productivity !ories1 #cdj-cee2 & ! wage contract1 #cgj-cgb2 & ! legal m9imum wage1 #djg4 ,kautsky1 ,k>l3 #aec4 ,k+1 ,w4 ,i3 #hb1 #hc1 #abb1 #abc1 #aee1 #bdj1 #caj1 #dad4 ,lab\r3 z a title to l&1 #bd-bi2 & to products1 #de2 & to ! entire product ( indu/ry1 #ade-aeb2 #cda-cdg2 productivity (1 #agh1 #agi2 ineffici5cy ( "u ,socialism1 #afb-afg2 m$ival measure ( co/ (1 #ccf1 #ccg2 claims ( diff]5t gr\ps (1 #cha-chg2 legislative proposals =1 #daf1 #dag4 ,lab\r unions3 efficacy & limitations (1 #dag-dbj2 & legislation1 #dbj-dbc4 ,lab\r]1 !3 claim ( to r5t1 #ga-gc2 "r ( to 8 product1 #be1 #bf1 #bh1 #dc1 #de1 #adi1 #aej1 #agi1 #ahj2 ga9s ( f wage contract1 #cbg1 #cbh2 "r ( to a liv+ wage1 #cfc-cfi1 #cgc2 v]sus ! capitali/1 #cij-cic1 #cif2 v]sus ! consum]1 #cic-cih2 & co-op]ative ent]prise1 #dbc-dbe4 ,l&3 di/ribution (1 #af1 #ag1 #hg-hi2 l>ge hold+s (1 #hi1 #ij2 accessibility to1 #ia-ie2 ! leas+ sy/em1 #ie-ig2 public own]%ip (1 #ih-ajj4 ,l&[n]3 "r ( to r5t1 #fg-gc2 8 %>e ( product1 #hj-hi4 ,l&[n]%ip3 9 hi/ory1 #h-ah2 two !ories (1 #h1 #i2 9 pre-agricultural conditions1 #aj-ab2 orig9 ( private1 #ab-ad2 preval5ce & b5efits (1 #ae-ah2 argum5ts aga9/ private1 #ai-dg1 by ,sociali/s1 #ai-ba1 by ,h5ry ,george1 #ba-dg2 private1 ! be/ sy/em ( t5ure1 #dh-ee2 f\r elem5ts (1 #dh2 a natural "r1 #ee-ef4 ,see ,h5ry ,george1 ,occupancy1 ,lab\r1 ,"r1 ,comp5sation1 ,confiscation1 ,defects1 ,r5t4 ,l& ,sy/em3 defects ( ! exi/+1 #gd-ic4 ,l& values3 h[ creat$ by ! community1 #dj-dg2 increase (1 #hc-hf2 taxation (1 #aag-acj4 ,lang5/e93 #cce4 ,lassalle1 ,f43 #ahc4 ,l>ge e/ates3 special taxation (1 #acj-acb4 ,lead]%ip3 indu/rial1 "u ,socialism1 #aeh-afg4 ,leas+ sy/em3 #ie-ig4 ,legislation3 = lab\r1 #abj-abc1 #daf4 ,lib]ty3 "u ,socialism1 #afh-agj4 ,liebkne*t1 ,w43 #aeb4 ,life3 "r to1 #eg2 true conception (1 #cag4 ,limitation ( =tunes3 #bia-cjb2 directly1 #bib-bie2 by taxation1 #bif-cjb4 ,livelihood1 dec5t3 #cfj-cfc2 ! lab\r]'s "r to1 #cfc-cfe2 ! employ]'s1 #cff4 ,liv+ wage3 ! m9imum ( wage ju/ice1 #cef-chj2 ?ree fundam5tal pr9ciples1 #ceh-cfj2 & a dec5t livelihood1 #cfj-cfc2 "r ( lab\r] to1 #cfc-cfi2 obligation ( employ] to pay1 #cfe-cgb2 = a family1 #cgc-cgf2 & social welf>e1 #cgf1 #cgg2 au?orities =1 #cgg1 #cgh2 money measure (1 #cgh-chj2 v]sus o!r titles ( rew>d1 #cha1 #chb1 #chf4 ,loan capitali/3 & ! claims ( ! lab\r]1 #cff1 #cfg1 #cij1 #cia4 ,loans3 attitude ( ,*ur* t[>d int]e/ on1 #agb-agd2 & productive capital1 #agd1 #age4 ,ma9e1 ,sir ,h5ry3 #ag4 ,m>ket value3 & wage ju/ice1 #ccj-ccb1 #cgj1 #cge4 ,m>riage3 "r to1 #eg1 #eh2 & reasonable life1 #cgd4 ,m>x1 ,k>l3 #ade-adh1 #cdb1 #cdc1 #cgd4 ,mat]ialism3 9 curr5t conception ( welf>e1 #cad-cah4 ,meade1 ,e4 ,s43 #bfe1 #bff4 ,m5g]1 ,a43 #cdb4 ,middle ,ages1 doctr9es (3 on int]e/1 #agb1 #age1 #agf1 #bja2 on titles ( ga91 #age2 on wage ju/ice1 #ccb-ccf4 ,m9imum3 ( wage ju/ice1 #cef-chj4 ,m9imum pr(its3 "q ( "r to1 #beh-bfj4 ,m9imum wage3 #cec-cee1 #djj-dbc2 9 op]ation1 #djj-dje2 e?ical & political aspects (1 #djg1 #djh2 economic aspect (1 #djh-daf2 op9ions ( economi/s on1 #dab-daf1 #dbj-dbc4 ,mod]n3 v]sion ( ex*ange-equival5ce1 #ccf-cdj4 ,monopoly3 9 relation to l&1 #ge-hj2 moral aspect (1 #bfb-bgh2 excessive ga9s (1 #bfc-bfe2 effici5cy (1 #bfe-bfg1 #bge-bgg2 discrim9ative und]sell+ by1 #bfg-bgj2 favors to by railroads1 #bfb1 #bgc2 natural1 #bgc-bge2 suppression v]sus regulation (1 #bge-bgh2 by lab\r1 #cij1 #cig4 ,natural monopolies3 #bgc-bge4 ,natural rights3 #eg-ei4 ,see ,rights4 ,ne>+1 ,scott3 #hc-he2 #aed1 #baj1 footnote4 ,ne$s3 z a canon ( ju/ice1 #bdd1 #bdf1 #cef-ceh2 classification (1 #cjh1 #cji2 exagg]at$ conception (1 #cad-cah2 a /&>d ( wage ju/ice 9 ,middle ,ages1 #cce1 #ccf4 ,occupancy1 fir/3 z a title to l&1 #ba-bd2 z exemplifi$ 9 increm5t taxes1 #aji4 ,occupation3 "q ( "r to a livelihood f a pres5t1 #cfb1 #cfc4 ,orig9al titles3 ,see ,occupancy1 ,lab\r4 ,ov]capitalization3 #bgi-bij4 ,see ,/ockwat]+4 ,own]%ip3 titles ( det]m9$ by reasonable di/ribution1 #aej1 #aea4 ,p]k9s1 ,g4 ,w43 #bgf4 ,p]sonality3 z basis ( indu/rial rights1 #ceh-cga1 #cgd4 ,pes*1 ,h43 #bae4 ,pope ,b5$ict ,,xiv3 #agc4 ,clem5t ,,iv3 #bc4 ,gregory ! ,great3 #cjf4 ,innoc5t ,,xi3 #caf4 ,leo ,,xiii3 #fd-ff1 #cjf1 #cji1 #cgg4 ,sixtus ,v3 #agf4 ,population3 excessive increase ( urban1 #hf4 ,possession3 z a p>tial ju/ification ( int]e/3 #bje1 #bjf4 ,possessors3 obligation ( to non-possessors1 #cei1 #cfj4 ,presumption3 z a p>tial ju/ification ( int]e/1 #bje2 & ! canon ( productivity1 #bdh4 ,prevail+ rate !ory3 ( wage ju/ice1 #cbc-cbe4 ,prices3 te/ ( extortionate1 #bfi1 #bgj2 legaliz$ agreem5ts fix+1 #bgg1 #bgh2 v]sus wages1 #cic-cii4 ,pr9ciples3 ?ree fundam5tal to liv+ wage doctr9e1 #ceh-cfj4 ,product3 di/ribution ( national1 #aha-ahc4 ,see ,lab\r1 ,lab\r]1 ,"r4 ,production3 ( l& values by ! community1 #ci-dg2 co-op]ation 91 #bbb-bbh4 ,productivity3 z a title to ! product1 #be1 #bf1 #bh1 #dc1 #de1 #adi1 #aej1 #agi2 z a title to int]e/1 #agb1 #agc1 #agf-aha1 #bjd1 #bje2 ( lab\r & capital1 #agh-ahj2 z a canon ( di/ribution1 #bdf-bdi1 #cej1 #cea2 z ju/ify+ l>ge pr(its1 #bee-beh1 #bfb1 #chh1 #chi2 z a title to wages1 #cda-cee1 #che2 ,cl>k's !ory (1 #cdg-cea2 ,c>v]'s !ory (1 #cea-cee4 ,pr(its3 nature (1 #bcg-bdb2 z comp>$ ) int]e/ & r5t1 #aci1 #adj1 #bch1 #bci2 am\nt (1 #bci1 #bdj2 9 a corporation1 #bda1 #bdb2 9 conditions ( competition1 #bed-bfa2 indef9itely l>ge1 #bee-beh2 m9imum1 #beh-bfj2 surplus & excessive1 #bfc-bfe2 9 natural monopolies1 #bgc1 #bgd2 v]sus wages1 #chh-cij4 ,progress & ,pov]ty3 #ba1 #bb1 #bd1 #be1 #cj1 #cd1 #ci1 #ea1 #eb4 ,pr\dhon3 #cdb4 ,public hon\r3 efficacy ( "u ,socialism3 #afe-afg4 ,pullman ,company3 #bhi4 ,re=m3 v]sus revolution1 #id4 ,r5t3 economic1 #c-g2 comm]cial1 #e2 h[ produc$ by society1 #ci-dg2 "r ( l&[n] to1 #fg-ge2 "r ( t5ant & lab\r] to1 #fi-gc1 #cif2 increase & am\nt (1 #hj-hg2 di/ribution (1 #hg-hi2 9 ,unit$ ,/ates1 #abb4 ,r5t *>ges3 attitude ( !ologians t[>d1 #age1 #agf4 ,res fructificat dom9a3 limitations ( ?is =mula1 #fj1 #fa1 #ajd1 #aje1 #aaa1 #ahj1 #cde4 ,revolution3 v]sus re=m1 #id4 ,ri*es3 f l&1 #hh1 #hi4 ,"r3 ( ! individual to l&1 #cj-ci2 ( ! community to l& values & r5t1 #ci-dg2 ( ! produc] to 8 product1 see productivity2 ( private l&[n]%ip1 #ef-ff2 to take r5t1 #fg-gc2 ( access to ! e>?1 #ceh-cfj2 to a dec5t livelihood1 #cfj-cfc2 to a liv+ wage1 #cfc-cfi1 #cgb1 #cgf4 ,rights3 ?ree pr9cipal k9ds ( natural1 #eg-ei2 ( prop]ty1 z creat$ by ! ,/ate1 #bjb4 ,rodb]tus1 ,k43 #cdb4 ,roman ,congregations3 on lawfulness ( int]e/ tak+1 #agc1 #agd4 ,sa9t-,simon3 #cdb4 ,sacrifice3 pr9ciple ( 9 taxation1 #aca1 #big2 z a title to int]e/1 #ahe-ahh2 z a title ( rew>d1 #chc-che4 ,sav]s3 ?ree k9ds (1 #ahc-ahe4 ,sc>city3 effect ( on rew>ds ( productive ag5ts1 #hj2 z a canon ( di/ributive ju/ice1 #bej1 #bea2 z ju/ify+ v l>ge pr(its1 & m ?an a liv+ wage1 #bee-beh4 ,s*moll]3 #bec4 ,s*oolm53 doctr9es ( on wage ju/ice1 #ccc-ccf4 ,seligman1 ,e4 ,r4 ,a43 #aja1 #bif1 #big4 ,s]vice3 z a title to int]e/1 #aha1 #ahb1 #bjd1 #bje4 ,%ift+3 ( l& taxes1 #ajb1 #ajc4 ,sidgwick1 ,h43 #cbi4 ,s+le ,tax3 inju/ice (1 #cc-ci1 #ajj2 proposals & defects (1 #ea1 #ed1 #ajh4 ,skelton1 ,o4 ,d43 #afe4 ,small1 ,a4 ,w43 #aga4 ,social b5efits3 ( special taxes on l&1 #abg-acj4 ,socialism3 z reg>ds l&1 #di1 #ea2 n inevitable1 #aec2 expropriation ( capitali/s by1 #aed-aeh2 ineffici5cy (1 #aeh-afh2 ho/ile to individual lib]ty1 #afh-agj2 n co-op]ation1 #bcj1 #bca4 ,sociali/s3 on private l&[n]%ip1 #ai-ba2 on int]e/1 value1 & lab\r1 #ade-adh2 on ! collectivi/ ,/ate1 #aeb1 #aec2 on morality ( pr(its1 #bed2 on wage ju/ice1 #cda-cdg2 on ! pr9ciple ( ne$s1 #cef4 ,sociali/ p>ty3 ( ! ,unit$ ,/ates1 on l&[n]%ip1 #ea4 ,sp>go1 ,john3 #ea4 ,specific productivity3 z a measure ( wage ju/ice1 #cdg-cea4 ,speculation3 effect ( on l& values1 #ib1 #ic1 #ajc4 ,sp5c]1 ,h]b]t3 #bc4 ,/&>d ,oil ,company3 #gf1 #bfc1 #bfg4 ,/ate1 !3 %\ld p]mit int]e/1 #aii-bja2 p[] ( to create prop]ty rights1 #bjb-bjd2 n oblig$ to gu>antee liv+ pr(its1 #bei2 fix+ ( maximum prices by1 #bge-bgh2 & ! innoc5t inve/or1 #bhf1 #bhg2 & ! prev5tion ( /ockwat]+1 #bhi1 #bij2 & ! limitation ( =tunes1 #bia-cjb2 & paym5t ( liv+ wages1 #cfe2 & m9imum wage1 #djg1 #djh1 #dbj-dbc2 & o!r lab\r legislation1 #daf1 #dag4 ,/ockhold]s3 claim ( to surplus ga9s1 #beg1 #beh1 #bfb2 z relat$ to /ockwat]+1 #bgi-bha1 #bhe4 ,/ockwat]+3 moral aspect (1 #bgi-bij2 def9ition (1 #bhj2 injuri\s effects (1 #bha-bhf & ! innoc5t inve/or1 #bhf1 #bhg2 magnitude (1 #bhh1 #bhi2 prev5tion (1 #bhi1 #bij4 ,/ores3 co-op]ation 91 #bbj-bbb4 ,sup]flu\s weal?3 duty ( di/ribut+1 #cjc-cai2 k9ds (1 #cjh1 #cji2 a false conception (1 #cad-caf2 true conception (1 #cah1 #cai4 ,see ,weal?4 ,sup]tax3 on l>ge l&$ e/ates1 #acj-acb4 ,supply & dem&3 z det]m9+ r5t1 #hj2 z det]m9+ int]e/1 #adc1 #add4 ,taussig1 ,f4 ,w43 #aih1 #bad1 #bhb1 #bhi1 #bij2 on m9imum wage1 #dab-daf4 ,tawney1 ,r4 ,h43 #dba4 ,taxation3 z a social in/rum5t1 #aja1 #ajb2 ( increases 9 l& value1 #ajb-aag2 faculty !ory (1 #ajg1 #ajh2 progressive1 z a me?od ( limit+ =tunes1 #bif-cjb4 ,taxes3 %ift+ ( to l&1 #aag-acj2 social b5efits (1 #abg-acj4 ,t5ant3 claim ( to r5t1 #fi-ga4 ,!ologians3 on private l&[n]%ip1 #fb-fd2 on int]e/1 #agb-agf1 #bjb-bjd2 on civil creation ( prop]ty rights1 #bjb2 on duty ( b5evol5t di/ribution1 #cjh1 #cji4 ,?ompson1 ,w43 #cda4 ,und]tak]3 ,see ,bus9ess man4 ,unit$ ,/ates3 special l& taxes 91 #aai2 co-op]ation 91 #bah1 #bfc2 m9imum wage 91 #dja1 #djc-djg4 ,unit$ ,/ates ,commission] ( ,corporations1 reports (3 on ,/&>d ,oil ,company1 #gf1 #bfc1 #bfg1 #bfh1 #bgb2 on ,/eel ,corporation1 #gi1 #hi1 #bfc1 #bfg1 #bhe2 on wat] p[] own]%ip1 #gi1 #ie2 on ! lumb] indu/ry1 #he1 #hi1 #id1 #acb2 on ,am]ican ,tobacco ,company1 #bfc1 #bfg1 #bhh2 on ,am]ican ,sug> ,ref9+ ,company1 #bfg1 #bgb1 #bhi4 ,unit$ ,/ates ,%ipbuild+ ,company3 #bhh1 #bhi4 ,unit$ ,/ates ,/eel ,corporation3 #gi1 #hi1 #bfg1 #bhe1 #bhi4 ,use3 "r1 z a confirmatory ju/ification ( int]e/ tak+1 #bjf-bjh4 ,value3 ,m>xian !ory (1 #ade-adh1 #ccc1 #cdc1 #cdd2 relation ( to wage ju/ice1 #ccj-cdj2 & to a liv+ wage1 #cgj1 #cge4 ,van ,hise1 ,c4 ,r43 #bff1 #bfg1 #bgg1 #bgh1 #bhh4 ,wage ju/ice3 unacceptable !ories (1 #cbc-cee2 prevail+ rate !ory1 #cbc-cbe2 ex*ange equival5ce !ory1 #cbf-cdj2 productivity !ories1 #cda-cee2 ! m9imum (1 #cef-chj2 problem ( complete1 #cha-cii2 claims ( diff]5t lab\r gr\ps1 #cha-chg2 wages v]sus pr(its1 #chh-cij2 wages v]sus int]e/1 #cij-cic2 wages v]sus prices1 #cic-cii4 ,wages3 v]sus pr(its1 #chh-cij2 equitable m9imum (1 #chh2 v]sus int]e/1 #cij-cic2 v]sus prices1 #cic-cii2 me?ods ( increas+1 #djj-dbe2 legal m9imum1 #djj-daf2 o!r legislation =1 #daf1 #dag2 lab\r unions1 #dag-dbc2 co-op]ative ent]prise1 #dbc-dbe4 ,wagn]1 ,a43 #cdb4 ,wat]$ /ock3 #bgi-bij4 ,see ,/ockwat]+4 ,wat] p[]3 9 ! ,unit$ ,/ates1 #gi1 #ie4 ,weal?1 sup]flu\s3 duty ( di/ribut+1 #cjc-cai2 z reg>ds a "p1 #cjc-cjg2 z reg>ds ! :ole1 #cjh-cad2 a duty ( *>ity or ( ju/ice1 #cje-cjg2 ! supply ( capital & bus9ess ability1 #caa-cac2 false & true conceptions (1 #cad-caf4 ,welf>e3 a false conception (1 #cad-caf2 true conception (1 #caf-cah2 social1 dem&s a liv+ wage = all1 #cgf1 #cgg4 ,see ,human welf>e4 ,:ittak]1 ,sir ,?omas3 #aj1 #ad1 #bh4 ,wick]1 ,g4 ,r43 #cej1 #cea4 ,williams1 ,a43 #bcb4 ,wolman1 ,l43 #dag1 #dah4 ,wom53 "r ( to a liv+ wage1 #cgc4 ,,pr9t$ ,,9 ,,! ,,unit$ ,,/ates ,,( ,,am]ica 99 99 99 99 99 ,! foll[+ pages conta9 adv]tisem5ts ( books by ! same au?or or on k9dr$ subjects4 99 99 99 99 99 ,socialism3 ,promise or ,m5ace ,,by ,,morris ,,hillquit & ,,john ,a4 ,,ryan1 ,d4,d4 #bgj pp41 #abmo1 #a4be ,a debate on ! "r or wrong ( ! movem5t 9 :i* oppos+ argum5ts are pres5t$ deal+ ) v>i\s phases ( ! subject4 ,! attack is made by ,dr4 ,ryan1 ,pr(essor ( ,moral ,!ology & ,economics 9 ,/4 ,paul ,sem9>y & au?or ( ,a ,liv+ ,wage4 ,! def5d]1 ,mr4 ,hillquit1 is a practis+ lawy] & has be5 a delegate to national & int]national sociali/ conf]5ces = sev]al ye>s4 ,"o ( ! mo/ important books ev] publi%$1 be>+ on ! issue ( ,socialism4--,ohio ,/ate ,j\rnal4 ,_m books h be5 writt5 on ! subject1 b no bett] pres5tation ( bo? sides 9 "o volume c be f\nd ?an 9 ,socialism1 ,promise or ,m5ace4444 ,x is a f9e1 fair & squ>e discussion4--,congregationali/4 ,n[h]e else )9 ! cov]s ( a s+le volume c be f\nd su* a satisfactory pres5tation ( ! lead+ argum5ts & c\nt]-argum5ts on a great "q1 = ea* debat] is amply qualifi$ to pres5t 8 case4--,bo/on ,globe4 99 99 99 99 99 ,a ,liv+ ,wage1 ,its ,e?ical & ,economic ,aspects ,by ,,john ,a ,,ryan1 ,s4,t4,l4 ,pr(essor ( ,e?ics & ,economics 9 ,/4 ,paul's ,sem9>y4 ,clo?1 #abmo1 #a4jj2 ,/&>d ,libr>y ,edition1 4#ej ,fa!r ,ryan's "w on ! ,liv+ ,wage is p]haps ! be/ exposition ( ! labor phase ( ! social problem4 ,x has tak5 its place on ! %elves ( public & private libr>ies beside o!r /&>d works1 :ile ! "n ( ! au?or is associat$ ) ! lead+ ,am]ican sociologi/s4 ,! volume is prefac$ by an introduction by ,pr(essor ,ri*>d ,t4 ,ely1 ! not$ ,am]ican economi/4 ,z ! title indicates1 ! subject is n m]ely treat$ f an economic po9t ( view1 b also 9 its economic aspects--a c\rse ( proc$ure t is some:at ( a dep>ture f prevail+ discussions ( economic subjects4 ,!re is a t5d5cy to treat political economy z a subject relat$ to ma!matics4 ,/ati/ics & axioms are ! pr$om9at+ features4 ,h[ev]1 ! sci5ce ( political economy _c disreg>d ! orig9 & de/9y ( man4 ',! ,liv+ ,wage' is bas$ on ! pr9ciples ( ,*ri/ian philosophy4 ,its logic proce$s f ! ,*ri/ian conception ( ! dignity ( man4 ,fa!r ,ryan's book is ?us a mo/ timely & necess>y contribution to sociological lit]ature4 ,t ',! ,liv+ ,wage' has met ! popul>ity t x has1 is evid5ce ( ! gr[+ conviction t ! social problem _c be solv$ except on ,*ri/ian pr9ciples4--,common ,cause4 ,x is refre%+ to pick up a book by ,dr4 ,ryan1 :o is always s sane & s conv9c+4--,nor? ,we/]n ,*ronicle4 ,! book is consid]$ ! be/ pres5tation ( ,ca?olic economic ?\ght at ! disposal ( ! g5]al read]4--,albany ,times-,union4 ,t ?is economic /udy by ,fa!r ,ryan is a solid "w is evid5c$ by ! fact t x 0 fir/ publi%$ 9 #aijf1 & 0 repr9t$ 9 #aijh1 #aiaj1 & #aiab4444 ,in/ead ( appeals to s5tim5t or glitt]+ g5]alities1 ,pr(essor ,ryan (f]s season$ argum5ts & precise doctr9e4--,portl& ,ev5+ ,telegram4 ,! mo/ judici\s & balanc$ discussion at ! disposal ( ! g5]al read]4--,_w ,to-day4 99 99 99 99 99 ,prop]ty & ,contract 9 ,_! ,relations to ! ,di/ribution ( ,weal? ,by ,,ri*>d ,t4 ,,ely1 ,ph4,d41 ,,ll4,d4 ,( ! ,univ]sity ( ,wiscons91 ,au?or ( ,outl9es ( ,economics1 ,editor ( ! ,citiz5s' ,libr>y1 etc4 ,9 two volumes1 #d4jj4 ,special ,law ,libr>y ,edition1 ,%eep1 #hvo1 #g4ej ,9 ?is "w1 :i* is bas$ ^u legal decisions z well z ^u economic pr9ciples1 a lead+ au?ority on political economy consid]s simply & concisely "o ( ! greate/ problems n[ be=e ! ,am]ican p4 ,mu* has be5 he>d & writt5 ( late ab\t judicial readju/m5t & direct gov]nm5t1 b few :o h discuss$ ! subject h se5 ! he>t ( x z cle>ly z does ,pr(essor ,ely4 ,( special importance is 8 treatm5t ( ! police p[]1 a burn+ "q 9 ,am]ican jurisprud5ce4 ,an idea ( ! scope & compreh5siv5ess ( ! "w may be ga9$ f ! foll[+ cond5s$ table ( cont5ts3 ,introduction2 ,book ,i1 ,! ,fundam5tals 9 ! ,exi/+ ,socio-,economic ,ord] ,treat$ f ! ,/&po9t ( ,di/ribution2 ,"p ,i1 ,prop]ty1 ,public & ,private3 ,i1 ,prop]ty1 ,public & ,private1 ,! ,fir/ ,fundam5tal ,in/itution 9 ! ,di/ribution ( ,weal?2 ,,ii1 ,illu/rations ,%[+ ! ,importance ( ,prop]ty 9 ,weal? ,di/ribution2 ,,iii1 ,prop]ty ,def9$ & ,describ$2 ,,iv1 ,prop]ty1 ,possession1 ,e/ate1 ,res\rces2 ,v1 ,! ,attribute & ,*>act]i/ic ( ,prop]ty2 ,,vi1 ,! ,social ,!ory ( ,private ,prop]ty2 ,,vii1 ,prop]ty & ! ,police ,p[]2 ,,viii1 ,:at ,may ,i ,own8 ,,ix1 ,! ,cons]vative ,nature ( ! ,social ,!ory ( ,prop]ty2 ,x1 ,,xi1 ,a ,discussion ( ! ,k9ds ( ,prop]ty2 ,,xii1 ,! ,g5]al ,gr\nds = ! ,ma9t5ance ( ,private ,prop]ty2 ,,xiii1 ,a ,critical ,exam9ation ( ! ,g5]al ,gr\nds = ! ,ma9t5ance ( ,private ,prop]ty2 ,,xiv1 ,,xv1 ,,xvi1 ,,xvii1 ,,xviii1 ,,xix1 ,! ,pres5t & ,future ,developm5t ( ,private ,prop]ty2 ,,xx1 ,! ,trans=mation ( ,public ,prop]ty into ,private ,prop]ty & ( ,private ,prop]ty into ,public ,prop]ty2 ,,xxi1 ,! ,managem5t ( ,public ,prop]ty ) ,ref]5ce to ,di/ribution2 ,,xxii1 ,!ories ( ! ,orig9 ( ,private ,prop]ty2 ,"p ,,ii1 ,contract & ,its ,conditions3 ,i1 ,introductory ,obs]vations2 ,,ii1 ,contract ,def9$ & ,describ$2 ,,iii1 ,! ,economic ,significance ( ,contract2 ,,iv1 ,contract & ,individualism2 ,v1 ,criticism ( ! ,individuali/ic ,!ory ( ,contract & ! ,social ,!ory2 ,,vi1 ,contracts = ,p]sonal ,s]vices2 ,,vii1 ,class ,legislation2 ,,viii1 ,facts z to ,impairm5t ( ,lib]ty2 ,,ix1 ,! ,c\rts & ,con/itutions2 ,x1 ,conclud+ ,obs]vations2 ,app5dix ,i1 ,"p ,,iii1 ,ve/$ ,int]e/s2 ,app5dix ,,ii1 ,"p ,,iv1 ,p]sonal ,conditions2 ,app5dix ,,iii1 ,production1 ,pres5t & ,future1 by ,w4 ,i4 ,k+1 ,ph4,d41 ,in/ructor 9 ,/ati/ics1 ,univ]sity ( ,wiscons92 ,app5dix ,,iv1 ,li/ ( ,cases ,illu/rat+ ! ,attitude ( ! ,c\rts ,t[>d ,prop]ty & ,contract ,rights & ! ,consequ5t ,evolution ( ,^! ,rights1 by ,samuel ,p4 ,or?1 ,ph4,d41 ,pr(essor ( ,political ,sci5ce1 ,cornell ,univ]sity4 99 99 99 99 99 ,pr9ciples ( ,economics ,,by ,f4 ,w4 ,,taussig ,h5ry ,lee ,pr(essor ( ,economics 9 ,h>v>d ,univ]sity ,new edition4 ,clo?1 #hvo1 #b vols41 ea* #b4jj ,volume ,i1 #edg pages ,volume ,,ii1 #egc pages ,! pres5t edition ( ,pr(essor ,taussig's /&>d "w embodies _m *anges ?r\gh\t ! text1 ?us br++ 8 "w abrea/ ( ! mo/ rec5t developm5ts4 ,! *apt] on bank+ 9 ! ,unit$ ,/ates has be5 entirely re-writt52 z x n[ /&s1 x includes a description ( ! ,f$]al ,res]ve ,bank sy/em & a consid]ation ( ! pr9ciples und]ly+ ! new legislation4 ,! *apt] on tru/s & comb9ations has be5 l>gely re-writt51 ) ref]5ce to ! laws enact$ 9 #aiad4 ,consid]able addition & revision has be5 made 9 ! *apt] on workm5's insurance1 call+ att5tion to ! notewor?y /eps tak5 ( late ye>s 9 ,engl& & ! ,unit$ ,/ates4 ,! *apt]s on taxation & especially on income taxes1 & on "s o!r topics1 h be5 simil>ly br\ght to date4 ,a rem>kable tribute to ! m]it ( ?is book is t :ile x 0 n int5d$ prim>ily z a class text1 x has be5 adopt$ = exclusive use z a text 9 _m ( ! colleges & univ]sities1 bo? l>ge & small4 ,exp]i5ce has %[n conclusively t ! book's cl>ity ( expression & fre$om f ! usual te*nical treatm5t ( ! subject has made x an especially suitable text = all colleges4 ,= ! small] in/itutions1 ! book has ! additional advantage ( conta9+ all ! necess>y mat]ial requir$ 9 ! usual c\rse 9 economics1 & ?us avoids ! extra exp5se & tr\ble ( us+ sev]al o!r books to supplem5t ! basic text4 ,9 fact1 ! value & ! ext5d$ use ( ?is "w z a compreh5sive1 unte*nical treatm5t ( ! subject1 h l$ _m em95t economi/s to reg>d x z ! mo/ notable contribution to ! subject ( economics s9ce ! "t ( ,john ,/u>t ,mill4 ,,! ,,macmillan ,,company ,publi%]s #fd-ff ,fif? ,av5ue ,new ,york 99 99 99 99 99 ,transcrib]'s ,notes3 ,obvi\s typographical errors 7 correct$4 ,hyph5ation inconsi/5cy betwe5 co-p>tn]%ip z us$ by ! au?or1 & ,cop>tn]%ip z 9 ! title ( a quot$ ref]5ce1 0 reta9$ z 9 ! orig9al4 ,a few out-(-ord] index entries 7 relocat$4 ,adv]tisem5ts3 ,,! ,,macmillan ,,company ,publi%]s #fd-ff ,fif? ,av5ue ,new ,york appe>$ at ! bottom ( ea* ad page 9 ! orig9al4 ,?is has be5 r$uc$ to "o occurr5ce aft] ! f9al ad4