40 Wisconsi7i Academy of Sciences^ Arts^ and Letters. 



for his labor. He has the advantage, if he is free from debt, of 

 receiving interest without the trouble and risk of lending money 

 or renting a farm, and he has work all the year round. He can 

 put in odd hours and days of labor for himself where he could 

 not in working for some one else. The great advantage of small 

 farms held in fee simple is that more work can be put on them than 

 could be done by hired labor. This is an advantage both for the 

 farmer and for the whole community, as the case of France since 

 the revolution shows. 



CASE II. 



In this case capitalist and business manager are the same per- 

 son, employing one or more laborers. This case differs from 

 Case I only in the employment of laborers; and as a farmer's, me- 

 chanic's or merchant's business grows, it naturally runs into this 

 case. 



In this case there is no distribution between capitalist and busi- 

 ness manager. The net profits of the business are found as in 

 Case I, except that the labor is partly or wholly paid for, accord- 

 ing as the proprietor himself works or not. This payment of 

 labor thus makes wages visible as a business expense. But the 

 proprietor's own labor, as manager or laborer or both, must be 

 accounted for as in Case I. 



The remuneration of the laborers hired is generally (a) wages. 

 But it may be (b) a share in the gross proceeds or in the net prof- 

 its, or (c) partly wages and partly a share in the proceeds or 

 profits. As the gross proceeds are so much more easily estimated 

 than the net profits it is found in practice usually better to give a 

 share in the proceeds in those cases where the laborer receives a 

 share of the rt suits of the business. Thus on the cotton planta- 

 tions in the south, since the war, the negro laborers are often given 

 a share in the crop, a thing which they can easily understand and 

 in which they cannot easily be cheated; whereas if they are to 

 have a share in the net profits it would be easy to cook up the 

 accounts so as to cheat them, and with the utmost honesty on the 

 part of the planter it would be hard for him to make the negroes 

 understand the accounts he kept. But the simplest and most ob- 



