PREFACE 
  
viii 
been shown have at first dissented strongly from the con- 
clusions of Chapter VII, but have invariably withdrawn 
their objections after finishing Chapter XIV. 
The nature of income is a subject which has not hitherto 
received, in economic literature, the attention it deserves. 
Income plays an important role in all economic problems; 
it is income for which capital exists ; it is income for which 
labor is exerted ; and it is the distribution of income which 
constitutes the disparity between rich and poor. 
Nor is the subject of interest solely to theoretical econo- 
mists. It appeals to practical men of affairs and to those 
who are interested in problems of social reform, as well as 
to the special classes of accountants, actuaries, and mathe- 
maticians. The book is so arranged that the general 
reader may, if he so desires, omit the technical por- 
tions, such as the appendices and possibly Chapter X VII. 
It is suggested that all readers should give special atten- 
tion to Chapters VI, VII, IX, and XIV. 
The problem of nomenclature has proved not a little 
puzzling. In general, each term has been employed in 
one, and only one, sense; but to follow this plan exclu- 
sively has not been found practicable. Several words are 
sometimes used for the same concept,— for instance, “re- 
sources” and “assets,” or “utility” and “desirability”; and 
sometimes the same word has been used in more than one 
sense, as in the case of “ capital,” which may mean capital- 
goods or capital-value. But special pains have been taken 
to avoid any confusion or uncertainty of meaning. The 
definitions have been carefully framed, and will be found 
collected in a glossary at the end. 
A few fragments of the book have appeared in a some- 
what different form in economic periodicals, and the 
whole book may be said to be only the elaboration of the 
ideas outlined some years ago in the Economic Journal. 
I would express my thanks to the publishers of the 
Economic Journal for permission to use unaltered some