ABSTRACT
Interest is a premium on present over future purchasing power. The machine itself is a product, and therefore just like consumption good its value is conducted on to a reservoir, from which no interest can flow any more. Individuals may value means of production less than products because they must pay interest on the way from the former to the latter, but they do not perforce pay interest because they value the former less than the latter on other grounds. The assertion that capital value is simply the capitalised value of the return is another. The function of capital comes in, and becomes evident that nothing corresponding to it can exist either in a communist or even in a noncommunist but "stationary" society. The capitalist can then obtain a permanent income which behaves in every respect as if it arose in the circular flow, although its sources are individually not permanent and although they are the results of development.
