The nature of capital and income

Bibliographic data

Monograph

Identifikator:: 102659555X

URN:: urn:nbn:de:zbw-retromon-82920

Document type:: Monograph

Author:: Fisher, Irving http://d-nb.info/gnd/118533541

Title:: The nature of capital and income

Place of publication:: New York

Publisher:: The Macmillan Company

Year of publication:: 1923

Scope:: XXI, 427 Seiten

Digitisation:: 2019

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Income

Collection:: Economics Books

154 _ NATURE OF CAPITAL AND INCOME [Cnar. 1X In this case, canceling the two log items we have left only the lumber item ; i.e. the income from the combined logging camp and sawmill consists only of the production of lumber, its final product. The transfer of logs from one department to the other no longer appears. T his transfer is like the taking of money from one pocket and putting it in another, as is particularly evident in case the logging camp and sawmill are combined under the same management. Extending the same principles to the entire series, we have the accounts as given on the opposite page. Tt should be noted that these entries relate not to sue- cessive but to simultaneous events; that all the items refer to a fixed period of time; that is to say, we are not following the fortunes of the original logs through succeeding stages, but comparing the simultaneous operations of the series of groups of instruments. If we successively cancel items pair by pair by offset- ting any item on the right side by the item in the line above it on the left side, we shall find, if we stop after the first two cancellations, that the net income from logging camp, sawmill, and lumber yard, consists only of the pro- duction of retail lumber, $70,000; it does not include either the transfer of logs or the transfer of wholesale lumber. In like manner, if we proceed one stage further, that is, if we stop our cancellations, at the end of the first four interac- tions, the production of retail lumber no longer appears as an element of income; and so on, step by step to the end, when the only surviving item will be the “wear” of the suits. Tt is, of course, true that in any actual accounts there will be numerous other items than those which have been exhibited in this simple chainlike fashion. Were it worth while, we might insert these additional entries of income and outgo elements. Most of them would consist of the posi- tive or negative side of an interaction, and if we were to introduce its mate, the opposite aspect of the same transac- ——"

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