Full text: The nature of capital and income

    
   
  
  
  
  
  
  
  
  
  
     
  
  
     
    
   
   
  
  
  
  
  
   
   
  
  
  
144 NATURE OF CAPITAL AND INCOME [Crar. IX 
promising to compensate for them by better service later 
on. The renailing of loose shingles is certainly not what 
the house is for, but is only a necessary evil. On the part 
of the hammer, however, these same events are services. 
The service called “nailing” is credited to the hammer. 
Therefore the repairing of the house is at once a service 
and a disservice. 
Such double-faced events require a special name. We 
may christen them interactions between two instruments 
or groups of instruments. Alternative names are inter- 
acting services, intermediate, or preparatory services, 
coupled services, or simply “couples.” They underlie 
what business men call “double entry bookkeeping.” 
An interaction, then, is a service of the acting instrument, 
a disservice of the instrument acted on. There can never 
arise the slightest doubt as to when it is to be regarded as 
positive and when negative. The definitions of service and 
disservice settle this question in each case, by referring it 
to the desire of a human being, viz. the owner of the service 
or disservice. As he desires that the house should not oceca- 
sion repairs, these repairs are disservices of the house: as 
he desires that the tools should occasion repairs, they are 
services of those tools. The hammer exists for and derives 
its value from its prospective services in renailing shingles. 
The house does not exist for nor derive its value from the 
renailing of its shingles; on the contrary, the prospect of 
that event detracts from its value. 
The example given is typical of the general relations 
between interacting instruments. The mental picture we 
should construct is that of two distinet groups of capital. 
Group A acts on group B for the benefit of the latter. 
Whatever the nature of this interaction, 4 is credited with it 
and B debited. The credit and debit are equal and simul- 
taneous, the only result of the interaction being that, in 
consequence of it, B is enabled at some later time to yield 
more income. 
  
      
  
  
	        
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