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CONTENTS

CHAPTER X

THE PROBLEM OF PROFITS: THE EMPLOYER'S SHARE
IN DISTRIBUTION
AUTHORITIES
WALKER . “The Wages Question.”
MARSHALL “Principles of Economics,” Book VI. Chapters VII, VIII.

PAGES
The capitalist-employer of older discussions and the entrepreneur of
modern theory. Separation of functions of employer and capitalist in
fact and in economic analysis. Earnings of management similarly
determined to wages. Pecuniary gain not the whole stimulus to the
work of organisation. Hope of financial success an element affecting
the supply of entrepreneurs. Earnings of management as a quasi-rent :
not secured at the expense of labour. The margin of cultivation of
organising ability. A high margin implies abundant supply of able
entrepreneurs, and hence relatively cheap services secured from them.
Influence of education and credit facilities on this supply. Insolvency
legislation and business publicity as affecting the problem. Evolution
of economic analysis of profits, Separation of management from
responsible ownership. Profits as the remuneration of risk-taking. Is
this a question of distributing a given aggregate or of the amount of
the aggregate? Selection of risk bound up with responsible ownership.
Speculation and the economic service it renders. Contrast between
gambling and the intelligent anticipation of coming events. The latter
operates to effect a better adjustment of demand to actual supplies . 151-159

CHAPTER XI :
MONEY AND THE MECHANISM OF EXCHANGE
AUTHORITIES

Jevons. . . “Money and the Mechanism of Exchange.”
NICHOLSON . ‘Money and Monetary Problems.”
WALKER . . ‘Monev.”

Barter restrains trade, inasmuch as it involves risk of lack of mutuality of
desire for exchange, of coincidence in values to be exchanged and of
a common mode of expressing these values, The use of a general
medium of exchange obviates these difficulties. Selection of such a
medium according to circumstances of time and place. Desiderata are,
in addition to value, portability and durability, divisibility and
homogeneity, cognisability. Coinage facilitates the use of metals for
the purpose in providing security against fraud, ensuring convenience
and durability, The common denominator of values need not be the