Skc. 6] INCOME SUMMATION 153 cloth; the cloth goes from the warehouse to the tailor; the tailor converts the cloth into suits for his customers; and his customers receive and wear those suits. In this series, all the intermediate services cancel out in couples’ and leave as the only uncanceled element, or final fringe of services, the use of clothes in consumers’ hands. Should we stop our accounts, however, at earlier points in the series, the uncanceled fringe will be not consumers’ services, but the positive side of intermediate services or interactions. The negative side will not appear, as it be- longs to later stages in the series. This will all be clear, if we put the matter in figures, stage by stage. The follow- ing are the items for the logging camp above mentioned, in the accounts of its owner: — Income Account For Locaing Camp ror YEAr 1900 Income Outgo Production of logs . . . . . . $50,000 (Omitted) The gross income from the logging camp, considered by itself, and without any deductions for expenses, is here seen to consist in the production of $50,000 worth of logs. If, however, we combine the logging camp with the sawmill, we shall have accounts like the following, in which, to avoid irrelevant complications, no account is taken of any ex- penses which are not interactions between the groups of capital considered : — Income Account ror Logging CAMP AND SAwMmILL For 1900 Capital Source Income Qutgo Logging camp | Yielding logs to ® sawmill, . . $50,000 teindidh ¢ Sawmill Yielding lumber eceiving logs to lumber yard $60,000 | from camp . $50,000