PBINCIPLE$ OF FIN?NOE 245 the commercial the adminis?a-ation individuals for The social which which a services--that is, render purchases of absolute and (2) The is used those branches o! special services to measured elxarge is xnade. second class--the general public--expend the income in four great groups o! payments: (1) conventional necessaries; taxes, revenues, and rents, a part of which to maintain the whole body of Government servants; (3) Investments hx capital goods of all kinds for productive purposes; (4) Purchases of superfiuities and luxuries. For brevity, group (1) will be denoted necezsaHes, implying those which are both absolute and conventional; group (2) will be denoted taxes, ?he word including land revenue, rents, fees and royalties; group denoted ' - ?nvestments, whether the inve?t- (8) will be ment be in a company, or any stock exehauge to no. cessaries business, loan or ?11 be denoted public expenditure of and capital goods for productive purposes, and that uo part o[ it is devoted to purchasing those commodities whi,:h are ?nperflui?ies for the great mass of the population. On the other hand part of the private expenditure of Government ofilce?s oat of fixelf salaries is devoted to snperfiuities, and forms a part of the whole social expenditure on superfiniS. ice. The taxable capacity of the people consists, there- fore, of the part of the social income o[ the public which actually pays the taxes, together with thai part which is spent on superfiuities. The part of 'the income of Goverf?ment servants which is spent on snperfiuities sh6Md be added so as ?.o ascertain t. he ?axable capacity o! %he e?ti?e population, The taxes paid hv Gox'erum?at seYvala%s might also be added,, except t?at, when og security, or in any fonn of private deposit; and grotxp (4) implying also luxuries. It may be assumed that the Government is entirely devoted
