DISTRIBUTION OF AGRICULTURAL INCOME 311 



income in more and better tools, the world is the double gainer 

 by my frugality. The sum of the whole matter is that in pro- 

 pordon as my economic life is a long series of expenditures for 

 luxuries, I direct a fraction of the productive energy of the world 

 into the production of luxuries which serve me alone. On the 

 other hand, in proportion as my economic life is a long series of 

 investments in tools of various kinds, I turn a certain fraction of 

 the productive energy of the world into the production of tools 

 which serve the world as well as me, which, in fact, must serve 

 the world in order that they may serve me. 



U ought not be difficult to see that the same results follow 

 when I deposit my dollar in a savings bank as when I spend it 

 myself. In case the savings bank lends my dollar to some one 

 who buys a luxurious trifle with it, the results upon the rest of 

 the world are the same as though I had myself bought the trifle. 

 It is a matter between us two alone. I have virtually loaned him 

 the trifle. But in case the savings bank lends my dollar to a man 

 who spends it for tools, this also is the same, so far as the rest 

 of the world is concerned, as though I had myself bought the 

 tools. This man is able by means of the tools to produce more 

 for some one else, and some one else pays him for that additional 

 service. He, in turn, pays me for the use of the tool. They who 

 receive the service must prefer it to the price which they pay 

 for it, otherwise they would not buy it. He must get more for 

 the extra service than he pays me for the use of the tool, other- 

 wise he would not borrow it of me. There is thus a profit all 

 around. 



These considerations are more important to-day than they 

 ever were before in the history of the world, and they are grow- 

 ing more important every day. The reason is that capital is 

 coming to play a more and more important role in industry. 

 This, in turn, is the inevitable result of our own inventiveness, 

 which is responsible for the ushering in of this age of machinery. 



