to makers of the
articles that he bought. Instead of thus consuming the fruit of his work
on his own amusement, and the embellishment of his home, he prefers to
make provision for his old age. He invests his hundred pounds in the 5
per cent. debenture stock of a company being formed to extend a boot
factory. Thereby he gives employment to the people who build the
extension and provide the machinery, and thereafter to the men and women
who work in the factory, and moreover he is helping to supply other
people with boots. He sets people to work to supply other people's wants
instead of his own, and he receives as the price, of his service five
pounds a year. But it is his work, that he did in the years in which he
was saving, that is earning him this reward.

An interesting book has lately appeared in America, called "Income," in
which the writer, Dr. Scott Nearing, of the University of Pennsylvania,
draws a very sharp distinction between service income and property
income, implying, if I read him aright, that property income is an
unjust extortion. This is how he states his case:--[1]

"The individual whose effort creates values for which
society pays receives service income. His reward is a reward
for his personality, his time, his strength. Railroad
president and roadmender devote themselves to activities
which satisfy the wants of their fellows. Their service is
direct. In return for their hours of time and their calories
of energy, they receive a share of the product which they
have helped to produce.

"The individual who receives a return because of his
property ownership, receives a property income. This man has
a title deed to a piece of unimproved land lying in the
centre of a newly developing town. A storekeeper offers him
a thousand dollars a year for the privilege of placing a
store on the land. The owner of the land need make no
exertion. He simply holds his title. Here a man has labored
for twenty years and saved ten thousand dollars by denying
himself the necessaries of life. He invests the money in
railroad bonds, and someone insists he thereby serves
society. In one sense he does serve. In another, and a
larger sense, he expects the products of his past service
(the twenty years of labor), to yield him an income. From
the day when he makes his investment he need never lift a
finger to se