DISTRIBUTION OF AGRICULTURAL INCOME 307 



cover the price which he paid for it, it is of no advantage to him 

 to have purchased. In other words, it yields him no interest ; 

 but whatever it brings him in excess of the purchase price is 

 interest. Again, let us suppose that instead of using the tools 

 himself, he hires them to some one else. That which he receives 

 for their use in excess of the price which he paid for them, and 

 that alone, is interest. Finally, let us suppose that he employs 

 other men to work with the tools which he has bought, which 

 is the case of a modern capitalist employer. Wages must, of 

 course, be paid for the labor that uses the tools. The total 

 combined product of the laborers and the tools must therefore 

 cover not only the wages of the laborers employed, and all the 

 other costs of operation, including risk, etc., but also the origi- 

 nal cost of the tools, before any interest accrues to the owner. 

 If any surplus remains, it may be regarded as interest. A care- 

 ful management of the business, with accurate accounting, will 

 enable the owner to set aside a certain sum each year for main- 

 tenance and depreciation, which is to set aside each year that 

 year's share of the original cost. If anything remains each year, 

 it may be regarded as that year's interest, and thus the owner 

 may receive interest every year from the very beginning of his 

 enterprise. 



All the cases which we have thus far considered are funda- 

 mentally alike, the difference being incidental to the different 

 stages of industrial development under which they are found. 

 They are all alike in that interest accrues by reason of the fact 

 that the increased product resulting from the use of tools is 

 greater than the product used up or given up in making or 

 gaining possession of them. 



The case is complicated somewhat, but not materially changed, 

 when money is introduced into the transaction. Since money is 

 simply general purchasing power, or a general claim on the com- 

 munity for a share of the commodities on sale in the community, 



