14 



ROOT MATTERS IN SOCIAL AND ECONOMIC PROBLEMS. 



and not from the efforts of such labour necessarily 

 absorbed in sustaining the said labourers. It is true 

 in one sense that all products, whether saved, trans- 

 formed, or consumed, are obtained by means of labour ; but 

 it is equally true that only a minor portion of the products 

 of labour is yearly devoted to fixed instruments to act as 

 auxiliaries to future labour ; and this minor portion is wholly 

 derived from products of labour and skill saved from 

 immediate destruction or consumption, and skilfully applied 

 or directed to the creation of fresh auxiliaries to labour. 



It follows from these considerations that existing capital 

 so applied is wholly derived from providential savings and 

 skill, and that only labourers who have contributed to these 

 savings — with their natural representatives (inheritance) — 

 have any real claim to a corresponding right to its present 

 utilities and fruits. 



Savings may be effected in various ways. They may be 

 effected by greater industry : by the devotion of former 

 savings to appliances aiding production : by increase of skill : 

 by curtailing enjoyment in the consumption of satisfactions 

 beyond primary needs or by a combination of all these : 

 thus : — 



Let I = Industry or energy expended. 

 K = Skill. 



A = Skilled appliances or aids, the fruit of anterior 



providential savings. 

 C = Actual current consumption. 

 S = Cun*ent savings. 

 Then IIA-C = Sor current savings. 

 So long as C or current consumption absorbs all the 

 powers of I K A there can be no savings. When C exceeds 

 I K A, debt, pauperism, crime, or death, may be the result. 



When I K A exceeds C there must be prosperity and 

 augmentation of the powers for producing more wealth. 



The maximum savings are effected when I K A are at the 

 maximum ( m ) and_ C is at the minimum ( u ) necessary to 

 secure the satisfaction of primary wants .- thus :— 



pn K m A m - C 11 = Maximum of savings. 

 But if the power of C to waste, destroy, or consume the 

 results of I K A be indefinitely increased say to ( x ) power 

 there may be no balance or savings : thus : — 

 jm K m ^m _ Q x = Savings. 



That is, the stage of no savings is produced by the absorp- 

 tion or consumption of a very great amount of luxurious 

 satisfactions. 



