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 powell] SOCIOLOGY, OR THE SCIENCE OF INSTITUTIONS 487

discuss such questions, but to point out the nature of the problems which are involved in the study of economics.

Wealth. — Here we have to note that the fundamental pro- duction of property is appropriation from nature by labor. The substance appropriated from nature becomes new property at every stage of production, as artifacts, powers, and goods. Forever the value of the property is increased.

Thus, property remains only as property which is consumed as it is obtained, but property becomes wealth as it is saved. Frugality is thus the foundation of wealth, though industry and enterprise may contribute. Frugality, industry, and enterprise may add to wealth, for wealth already accumulated may be used as capital to increase itself.

Capital. — Property, which has become wealth, may now be considered as capital. Wealth may be used as capital in the purchase of machinery and the appliances necessary to the use of machinery, in the purchase of material for further stages of pro- duction, and, finally, in the employment of labor to aid in the industry of production. We have thus considered capital in its use in manufacturing. In the same manner we may consider it in its use in commerce. These cases are sufficient, perhaps, to illustrate the principle.

Investment. — Capital may be invested in such manner as to produce more without the owner of the capital engaging in com- merce or manufacturing or in any of the industries of substantiation which we have heretofore considered. But as capital is of value in all of these industries, and as it may be invested with others who wish to conduct them, the interest on the capital may go to the owner of the capital. Thus capital becomes investment. That which in one stage we call property, in another stage wealth, and in another stage capital, we here call investment, meaning by that pure investment for interest.

Endowment. — And yet we are to see property and wealth and capital and investment assume a fifth form ; this is endowment.

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