The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-12

on slowly but continuously until there was
not Buddhist left In the land where Budd
hism rose NJ. W. II.
The Concentration and Inheritance OF
Wealth.
Some important economic questions will
be found examined in lucid and useful
way by Prof. RICHARD 7. ELY, in volume
called Studies in the E,oi,tion of 'ndustridl
Society tMacmillans) The author is well
known. not only AZ the professor OF political
economy in the University OF Wisconsin
but also as the writer OF books on Socialism
and Social Reform and also on "MoDopO-
lies and Trusts In the first part Of the
work before us a general survey Of the
evolution of industrial society is presented,
and in the second part specific problems
forced upon public attention by industrial
development are treated at due length.
There Ia no part of the book which is not
worth careful consideration, but we may
exemplify its value by glance at the chap
ters which deal, first. with the concentra-
ton and diffusion Of wealth, and, secondly,
with the Inheritance Of property. A final
chapter on the possibilities of social reform
may also be particularly commended
In the first of the three chapters named
we are reminded of the unanimity with
which writer's on political economy agree
that within the last hundred years, the
production Of wealth has enormously
increased There 10 no such unanimity,
however. in the answers to the questions
how this wealth IL actually distributed,
and how II ought to be distributed. That
the division Of wealth Ia unequal every
body knows. Some people are very rich,
| and some are very yoor But are these
exceptions? Are the mass of the people
well-to-do? Or are there many poor,
| while or because a few are very richp
inequalities to bef Before essaying to
answer these questions. Prof. Ely pauses
| to formulate some definitions and to draw
| some distinctions. In the book before
us, the term Concentration OF wealth"
Is used In the sense OF concentration In the
ownership Of wealth." az distinguished
| from the concentration OF capital In large
! United States Ste ell Corporation were
owned by individuals holding one share
each, the concentration of wealth In par
ticular industry would be lust az great
as 1t Ia now, but there would be wide
diffusion in the ownership Of the wealth
Of the corporation. Obvious as the dis
tinction may seem. it is one that ia con-
tnually ignored. Even the idea Of con-
centration In the ownership OF wealth ia
itself sometimes indistinct in the minds
OF those who write about 1t. What is the
criterion by which we are TO Judge whether
the concentration be small or greatl One
man may have In view one criterion an
other. another. Prof. Ely, for his part,
holds that the growth In the number OF
millionaires Is not in itself an evidence OF
increasing concentration Of wealth. There
has undoubtedly been an increase in per
capita wealth during the last half century.
so that the term millionaire" has different
meaning from that which it bore fifty
years ago. 1t would be more accurate
to compare the number Of millionaires Of
to-day with the number OF persons pos
sessing, say, five hundred thousand dollars
in 1850. For similar reason, an absolute
betterment in the condition OF the poorer
classes may exist with a growing concen-
tration Of wealth The laborer may get
higher wages absolutely, and yet not get
what he deems his full share Of the increas-
ing wealth For example, II his wages
are units out OF total product OF 10 in
one period. and 10 out OF a total product
of 30 in another, his wages would, it is true,
have doubled, but his share would have
decrease d from one-half to one-third.
But what are the facts with regard 10 the
actual distribution OF wealth? There are
two methods of ascertaining them. one
direct and the other indirect. BY
the former, or direct method an attempt
is made to get statistical statement Of the
actual incomes received or property held:
by the latter, or indirect method, conclu-
sions may be drawn from such general
indications OF an increase or decrease In
well being in various classes of a COM
munity as may be derived from statistics
Of consumption and OF wages, supple
mented by general observation. Prof. Ely
comedies that neither method has as yet
yielded results that can be said TO command
very great confidence on the part Of econo-
mists. Beginning with the direct method,
he himself considers, first, a table OF in
comes in the Grand Duchy of Baden. based
on the income tax returns OF that country
for 1885 and 1893. The conclusion might
be drawn from this table that wealth was
not greatly concentrated, because in both
of the years named less than I per cent.
Of the incomes assessed were over 10000
marks apiece annually. This method of
Interpretation is followed by the French
economist Paul Leroy Beaulieu when
he cites as an illustration Of the wide diff
fusion of wealth the fact that in 1893 there
were only 2,S7O persons In Paris having
an income Of over 1000 francs a year.
Our author insists that such deductions
40 not bring out the true state Of the dis
tribution. He concurs with DR.. C. B. Spahr
amount Of wealth held by the classes pos
sessing incomes over 10000 marks apiece
is an important consideration The Baden
tables give no information In regard 10
the number and amount of incomes be-
low 500 marks, because such incomes are
non -assessable; but In regard to the per-
sons assessed, the following statements
may be made frst. the poorest two-thirds
of the persons assessed had only about
one-third Of the total income OF 1896. while
the richest, constituting only sixty-nins
one-hundredths Of per cent. Of the
assessed population. had 1918 per cent,
of the total income.
The late Prof. Richmond Mayo-Smith
drew similar conclusions from statistics
which he adduoed from other countries,
In Prussia, for instance he found shat
20 per cent of the population have incomes
below the income tax, and that their ag-
gregate incomes represent only one-third
OF the total income Of the whole popula-
ton. An additional one-fourth Of the popu-
lation enjoy one-third OF the total income:
while about per cent at the upper end
Of the scale enjoy the remaining onethird.'
In Saxony the statistics show that two
thirds of the population possess less than
one-third of the Income, while 3,5 per cent
OF the upper incomes received in the WAY
OF income more than the 80 per cent. at the
lower end" In England about 10 per cent
of the people have been said to receive
nearly one-half of the total income. Prof
Mayo-Smith thought, however that there
is great uncertainty about the last men
toned statement (Which Ia from table pre-
pared by Sir Robert CHEM, owing to the
difficulties of the income tax, and also OF
estimating the average Income OF the
non-inoome tax paying classss.
Trl the United States II Is particularly
difficult to secure direct and trustworthy !