SECTION II. The Morality of Private Capital and Interest

THE MORALITY OF PRIVATE CAPITAL AND INTEREST

IX THE NATURE AND THE RATE OF INTEREST 137 Meaning of Capital and Capitalist 137 Meaning of Interest 138 The Rate of Interest 141

X THE ALLEGED RIGHT OF LABOUR TO THE ENTIRE PRODUCT OF INDUSTRY 145 The Labour Theory of Value 146 The Right of Productivity 149

XI THE SOCIALIST SCHEME OF INDUSTRY 152 Socialist Inconsistency 152 Expropriating the Capitalists 154 Inefficient Industrial Leadership 158 Inefficient Labour 162 Attempted Replies to Objections 162 Restricting Individual Liberty 168

XII ALLEGED INTRINSIC JUSTIFICATIONS OF INTEREST 171 Attitude of the Church Toward Interest on Loans 172 Interest on Productive Capital 175 The Claims of Productivity 177 The Claims of Service 181 The Claims of Abstinence 182

XIII SOCIAL AND PRESUMPTIVE JUSTIFICATIONS OF INTEREST 187 Limitations of the Sacrifice Principle 187 The Value of Capital in a No-Interest Régime 188 Whether the Present Rate of Interest is Necessary 191 Whether at Least two Per Cent. is Necessary 193 Whether any Interest is Necessary 196 The State is Justified in Permitting Interest 199 Civil Authorisation not Sufficient for Individual Justification 201 How the Interest-Taker is Justified 204

XIV CO-OPERATION A PARTIAL SOLVENT OF CAPITALISM 210 Reducing the Rate of Interest 211 Need for a Wider Distribution of Capital 213 The Essence of Co-operative Enterprise 214 Co-operative Credit Societies 216 Co-operative Agricultural Societies 217 Co-operative Mercantile Societies 220 Co-operation in Production 222 Advantages and Prospects of Co-operation 228 References on Section II 233