THE PRACTICAL APPLICATION OF ECONOMICS. 887 
Tf the ratio of expenditure should be one half, as I have found it 
to be, then 
as = 200 total incomes = incomes of 100 for services. 
If the ae of expenditure should be 2, then 
a = 250 total incomes = incomes of 150 for services. 
Tf the Genie of expenditure should be }, then 
a = 400 total incomes = 300 incomes for services. ud d 
If the BAe of expenditure should be 4, then a 7 si 
an = 800 total incomes = 700 incomes for servicés.. , , 2a aT 
8 
If the ratio of expenditure shold be 2, then 
100 
= 166-6 total incomes = 66°6 for services. pean ee a yf 
I have been led to express the hypothesis of the operation of ~~~ 
expenditure somewhat differently to that stated in my previous 
paper, tending to show that the increase of the incomes must 
take place in a geometrical progression according to the ratio. 
Referring to the diagrams of that paper, I considered the result 
of the total expenditure of the primary workers in the aggregate. 
Although the total expenditure served the purpose of illustration, 
it need not be taken. When it is considered that any amount 
expended by the primary workers in the aggregate, and therefore 
entering into general circulation, will be received by large 
numbers of all conditions amongst the diffcrent groups of workers, 
it appears manifest that expenditure in the aggregate of the 
amount received at any time according to the same ratio will 
give the like result. 
I have also found that it is immaterial, as regards the result of 
expenditure, whether the proceeds of production expended by 
those of production in the land, or of that from a foreign source 
entering the country as income or capital. 
Tt must, I contend, be admitted as a theory or working hypo- 
thesis of the science, as regards distribution, that the total 
incomes of all classes in a country derived from the expenditure 
of the proceeds of its production, will depend upon the ratio 
of expenditure in the aggregate for material products, as indicated 
by the formula stated. 
V (value of product) 
=I (total incomes). 
R (ratio of expenditure) = 
And as a corollary: That the incomes of secondary workers, or 
those not engaged in the primary work of production, will depend 
