t serves to define our conception of economic justice, and
therewith the lines on which we should be guided in the adjustment of
taxation and the reorganization of industry. I may illustrate its
bearing by taking a couple of cases.

One important source of private wealth under modern conditions is
speculation. Is this also a source of social wealth? Does it produce
anything for society? Does it perform a function for which our ideal
administration would think it necessary to pay? I buy some railway stock
at 110. A year or two later I seize a favourable opportunity and sell it
at 125. Is the increment earned or unearned? The answer in the single
case is clear, but it may be said that my good fortune in this case may
be balanced by ill luck in another. No doubt. But, to go no further, if
on balance I make a fortune or an income by this method it would seem to
be a fortune or an income not earned by productive service. To this it
may be replied that the buyers and sellers of stocks are indirectly
performing the function of adjusting demand and supply, and so
regulating industry. So far as they are expert business men trained in
the knowledge of a particular market this may be so. So far as they
dabble in the market in the hope of profiting from a favourable turn,
they appear rather as gamblers. I will not pretend to determine which of
the two is the larger class. I would point out only that, on the face of
the facts, the profits derived from this particular source appear to be
rather of the nature of a tax which astute or fortunate individuals are
able to levy on the producer than as the reward which they obtain for a
definite contribution on their own part to production. There are two
possible empirical tests of this view. One is that a form of collective
organization should be devised which should diminish the importance of
the speculative market. Our principle would suggest the propriety of an
attempt in that direction whenever opportunity offers. Another would be
the imposition of a special tax on incomes derived from this source, and
experience would rapidly show whether any such tax would actually hamper
the process of production and distribution at any stage. If not, it
would justify itself. It would prove that the total profit now absorbed
by individuals exceeds, at least by the amount of the tax, the
remuneration necessary to maintain that particular economic function.

The other case I will take is that of inheri