Spencer Heath Archive

Item 160

Pencil by Heath on notepad paper.

August 1, 1955

 

     Income from services is of three principal kinds, called by different names according to the kind of services, and how they are measured, in recompense for which it is paid.

     For services that are simple and subordinate and measured by hours or by “piece” or similar gauge, the recompense is called wages.

     For services that are supervisory over others and not gauged numerically the recompense is called salary.

     For services that are performed by the owners of property in the course of its administration as capital for the use and benefit of others, the income is called profit — the recompense to owners for their administrative services, contingent upon efficient administration, not determined by any contract of employment.

 

Recompense fixed by contract

Wages, numerically gauged by time or piece.

Rent — Recompense for the time-limited use of specific property, real or personal, arising out of contract and measured by time only.

Interest – Recompense for the time-limited use of generalized     property — of general purchasing power — arising out of     contract, measured by time only.

Price – Recompense for unlimited use of any kind of property. Arising (normally) out of competition and contract, not measured by time.