138 PIIOCEEDISGS OF THE CANADIAN INSTITUTE. 



Machinerv is scarce. Toil takes the ore and converts it into a 

 machine. This is one way of acquiring value by the path of utility. 



Let a drought come until water sells, as it has sold sometimes in 

 Australia, for three shillings a bucketful ; this is another way of ac- 

 quiring value ; it arises from the increased scarcity. 



In the first case an increase of value caused by the increase of a 

 utility, as in tlie production of machinery, is an increase of wealth. 

 In the second when the value is the result of scarcity, as in the in- 

 creased value of water from drought, the increased value is an in- 

 dication of increased poverty. 



To distinguish these two kinds of value, let us call the former 

 " toil-produced value," and the latter "scarcity value." The com- 

 modities included in the former are our food, clothing, buildings, 

 machinery, etc., while the scarcity values include minerals, forests, 

 water-power, land, etc. 



As distribution takes place according to the " production or growth 

 of values," and as values arise in two different ways, there are two 

 different ways in which a person may acquire wealth : 



1. By producing utilities, as houses, clothing, etc. 



2. By holding some natural commodity that acquires value by 

 becoming scarce, such as lands, mines, etc. 



The first method requires toil. We can convert the crude ore into 

 a machine, the raw cotton into a garment, only by toil. But the in- 

 ci'eased value of mines, or at least a lai'ge portion of these values, is 

 due in no way to the labour of the holders of these lots or mines. 



Our present method of distribution, therefore, has the following 

 most momentous results : 



First, — One i)art of society obtains a share of the products of 

 labour only after it has produced utilities, after producing wealth ; 

 the other portion obtains wealth by the growth of scai"city values 

 that requires no toil. Hence we see the division of society into 

 toilers and idlers, or, what is the same thing, the imposition of the 

 whole toil of maintaining society on one part of the population, 

 allowing the rest to enjoy a share of the product, to the production 

 of which they have contributed no effort. 



Labour-produced values are transient. The food of this season 

 will be consumed by the next, the clothing will soon be worn out, 

 buildings will crumble and decay, our dwellings and clothing will 



