chapter  XVI
19 Pages

Money and Finance

I § I.-IN tracing the operation of the industrial system we saw bow money circulated through this system as a common universal fluid, acting at each point in the processes of production as a measured stimulus to the ownerof each factor of production to apply his labour, capital, ability, or land in special productive arts. All income, as we saw, consisted of these payments, and by their means the dis.. tribution of the industrial product is effected. Attendant upon each industrial act is a financial or monetary act, payment which is at once a register and a motive to the industrial act. So we find in finance, or monetary activity, a complete replica of the productive industry which shapes and moves all forms of saleable commodities.