516 Transactions. — Chemistry and Physics. 



instead of preparing lengthy speeches, framing the laws of the 

 country by means of squared paper and curves. 



Some may demur to the latter part of the definition of 

 interest as requiring proof, but it is rather a historical point 

 than otherwise, and, in any case, does not affect results ob- 

 tained. 



Definitions. 



1. " Production " is the changing of form, constitution, 

 place, or time of a natural product of nature in order to render 

 it efficient for human needs. 



2. " Land" is the whole of the material universe that has 

 not undergone production. 



3. " Labour" is human force applied to production. 



4. "Production" (P), when used in a quantitative sense, 

 refers to the value (referred to some convenient standard) of 

 the products after they have undergone the process of produc- 

 tion. 



5. " Pent " (R) is that portion of production which is 

 given up to landowners in return for benefits derived from 

 land in their possession. 



6. " Marginal production " (p) is the production which 

 would be obtained if all the land were equal in productivity to 

 the most productive land available without the payment of 

 rent. 



7. " "Wages " (W) is that portion of production returned to 

 labour in return for ito co-operation in production. 



8. " Capital " (C) is the surplus of production which is 

 used to assist labour in further production, by means of costly 

 appliances, &c. 



9. "Interest" (I) is that portion of production which is 

 delivered to capital as equal in value to the mean increase of 

 raw products due to the vitality of nature. 



10. " Rate of interest " is the fraction obtained by divid- 

 ing interest by capital. 



11. "Proportional profit" is the profit derived from a 

 certain investment divided by the amount invested. 



I. 



If u be the proportional profit at one point and u' that at 

 another where u is less than it' , then motion will take place 

 from u to u' , because every one tries to make the greatest 

 profit he can. Further, the greater the difference between u 

 and u' the greater the velocity of adjustment. Therefore, if 

 there be n proportional profits at n different points, there will 

 be a tendency to motion which will cease when all the profits 

 are equal. Therefore, if V, V, V", V", V"", &c, be the 

 amounts invested at different points, the condition that there 

 should be equilibrium is that — . 



