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Rh cent on the principal and that dividends averaged 6 per cent. The interest average may have been a little lower than the assumption while the dividend average may have been a little higher, but although this is all conjectural the fact can not be at any great variation and would not materially modify the broad result. We may then capitalize the reported incomes as follows:

The remainder of the personal income in 1916 was derived from salaries and business. Respecting salaries there is of course no question in interpretation. Business income, reported at $3,010,404,924 is a combination of the products of personal service and capital employed in the business. We have no means for making any separation between these two elements. There is included in this the earnings of professional men, of traders, and of merchants conducting unincorporated business. No guess for the amount of capital in use in this way would be justifiable, and we can do nothing but disregard this matter, simply making a mental reservation respecting it.

It appears from the foregoing that the 437,000 income tax payers of 1916, representing 1.7 per cent of the population at the maximum, derived income in the form of rents, interest and dividends from property valued at about 63.7 billion. It may be argued, and properly, that this class to a large extent occupied houses of its own, the rental value of which does not