154 SECTIONAL ADDRESSES. 



income upon his family. It is here that the inheritance from the previous 

 generation, coming at an earlier date, would enable him to be sure of this 

 fund in time, and to save his own surplus towards his own old age, after 

 he had passed on what might be called the succession, to his children. 



What, however, is the upshot of a ' survey ' of the biological side of 

 inheritance upon the economic aspects of inheritance of wealth without 

 a more minute analysis of its trend ? 



The more we survey the biological field the less do we find justification 

 for inheritance of wealth by others than direct descendants or dependents. 

 On the other hand, it does seem to me that we derive considerable support 

 for the orthodox view that the power to make bequests in the direct line 

 is an important economic factor in the accumulation of capital and in great 

 personal effort. It does not, indeed, justify that kind of inter vivos giving 

 which means the escape, almost on the death-bed, or within three years 

 from it, from the Chancellor's net, but it does support the scheme of trans- 

 mission of wealth in middle life as an economic factor of some importance, 

 and a worthy use of accumulated wealth, which cannot be regarded as a 

 net toll upon the community in view of its indirect contribution to the 

 community. The argument, of course, spends its force as generations 

 go on. 



XH. Conclusions. 



It will have been seen that the answers we have to the critical questions 

 put at the outset vary in completeness and conclusiveness, and that in 

 certain fields fruitful research is possible. Certain " elements that have 

 at one time been highly significant are now of less importance, while others 

 are emerging. 



My own present views, which, of course, are provisional in the sense 

 that they are open to modification as new facts emerge and as analysis 

 reveals tendencies not previously put into the balance, are as follows : — 



1. In the past century unprecedented economic advance has been due 

 in the main to the greater use of invention and fixed capital. This has, 

 in turn, made new accumulation of savings possible, and has been made 

 possible by the growing fund of accumulation. In this accumulation 

 the principle of inheritance or bequest has played an important part. 

 Where there has been freedom from the shackles of a family-diffusion 

 system the greater progress has been possible. The individual motives 

 which are operative under such a system are stronger than ever, but 

 operate over a diminishing part of the field ; they are also stronger over 

 a short period, and of diminishing effect over a long period of time. In 

 other words, communal saving via company reserves (not subjected to 

 the individual volition for saving against spending) and via repayment of 

 debt through funds derived from taxation, and via large capital efforts 

 (housing, &c.) partly financed through taxation, is an increasing proportion 

 of the total. Although some of the values set up by such collective sums 

 may figure in individual estate values, they are not created or destroyed 

 by interference with, or promotion of, the right of inheritance. 



2. The remaining considerable section of capital accumulation is still 

 powerfully affected by inheritance rights, and would be more affected 

 than heretofore by interference with rights in the direct line, though less 

 affected than hitherto bv rights out of that line. More considerable 



