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The Distribution of Wealth: A Theory of Wages, Interest and Profits; Clark, John Bates
2 paragraphs found.

There are resemblances and contrasts between the theory that is here presented and those of the Austrian economists, Karl Menger and Friedrich von Wieser; and one feature which distinguishes the present system from the others is a recognition of the difference between permanent capital, or an abiding fund of productive wealth, and particular capital-goods, or instruments of production, which perish in the using. The relation that this theory bears to the fascinating one recently published by Ex-minister von Böhm-Bawerk can best be made clear after a later volume on the dynamics of distinction shall have seen the light. If my present plan had admitted it, I should have been glad to cite and to discuss many specific contributions to the literature of the theory of distribution, such as those made by Professor Alfred Marshall, President Francis A. Walker, President Arthur T. Hadley, Professor Frank W. Taussig, Professor William Smart, Mr. John A. Hobson, Dr. Charles W. MacFarlane, Dr. Stuart Wood and Mr. Herbert M. Thompson. To three men I am indebted for general stimulus and suggestion, the effects of which must have appeared in any theoretical work that I have done. They are my teacher, the late Professor Karl Knies of Heidelberg, and my early associates in economic work, Professor Franklin H. Giddings of Columbia University and Professor Simon N. Patten of the University of Pennsylvania.

Chapter XXIII, The Relation of All Rents to Value and thus to Group Distribution

Note.—For the earliest statement of the theory advanced in this chapter the reader is referred to an extended supplementary net, in a monograph on The Possibility of a Scientific Law of Wages, published by the American Economic Association, in March, 1889. At the same date there appeared, in Professor Wieser's work on Natural Value (Chapter XII), an argument maintaining that the part of rent that is not differential, but general, is an element in price making; while even the differential portion may be such an element, provided the land that earns this income is devoted to "secondary or derivative" uses. In Professor Marshall's Principles of Economics (Book V, Chapter VIII), it is shown that, by reason of the competition of different agricultural uses of land with each other, the amount of land devoted to a particular crop may be limited, the supply of that kind of produce may be reduced and the price may be influenced by this limitation of the supply. The reader will see that in the argument presented in the present work the contention is made that all rents, even though they may be reduced to differential quantities, are essentially contributions to the supply of goods and elements in the determining of values, and also that all the rents that have been enumerated are, in this respect, on a parity.