have been obtained from it. Nero burning Rome.

4. Notional consumption results when things lose their value due to changing fashion.

5. Immaterial consumption occurs when a utility ceases to exist, either because the want itself has disappeared or individual or social views as to its use have changed.

b. Productive consumption is the use of materials and services for the express purpose of producing other goods. These materials are known as producers' goods, in that they are consumed in the process of further production.

C.

Loss consumption may be confined exclusively to the destruction of utilities by the work of nature, such as rain, heat, organic matter, etc.

E. Distinction between communities possessing only consumers' goods and those enjoying a supply of producers' goods.

1. In relatively unorganized states and societies,

where industry, currency and transportation are undeveloped, the production of goods is largely confined to consumers' goods. Desires are comparatively few. Leisure being quite generally unknown, there is little dissatisfaction with the present and less with the future. Effort is expended for the exclusive purpose of producing indispensable necessities. There is no accumulation of goods, except some food and a few minor

personal things which are regarded as property. Capital takes the form of rude implements. A hand to mouth existence distinguishes such a community. Wants are entirely physical in character. The native sticklac gatherer cannot be induced to gather more lac even should the price be increased as an inducement. In fact a higher return may lead him to produce less, since a certain sum will satisfy his wants for a limited time. Countries that lack the elements to carry on industry are susceptible to famine, disease, oppression, and internal dissension. Such are the agricultural communities. Cities, national economy and evidences of wider productivity are absent.

2. Productive consumption connotes a state that enjoys the advantages of capital enterprise. It is the result of an intensive past development, rich in trade, fertile in science-a product of a rising civilization. There is present in such a community the recognition of future uncertainty in the matter of acquiring goods; means of transmitting ideas; adequate systems of currency and transportation; indications of formal state education; in brief, a course of action which is more and more concerned with the future, though not less with the present. In order that such a course may be provided for, there must first be accumulated a social surplus in the form of capital, that less and less effort may be coordinated with increasing amounts of capital in the production of goods. In the

consideration of production it may be well to note that the individual laboring by himself can produce, with great uncertainty and hazard, only the simplest items in limited quantity for his present needs. He is unable to benefit from the many things which society may have to offer. Security, then, occurs when a society becomes highly integrated, and progress may be defined as institutionalized organization in which the state arises as a larger self, contemplating its citizens as a body and not merely as individuals.

D. Necessities and luxuries.

1. There is no principle, universally applicable, governing the ideas of necessities and luxuries. In the last analysis the terms suggested are primarily relative. The ideas have different values among the same people upon separate occasions, and among various classes of society at the same time. The meanings are elastic, although the apparent connotation of the term necessity would imply that there is a more general acceptance of meaning than in the case of the term luxury, although this will not always hold true, particularly among the more advanced peoples.

2. Necessity, a social connotation. It is that which is consumed and satisfies a want that creates a greater utility, higher standard of living and promotes national well-being. Necessities constitute indispensable consumption, and their ultimate test is the national gain that may be derived from their use.

3. Luxuries constitute dispensable consumption, and range from those classes which may become necessities through general use, to those classes which may be immoral in that they demoralize oneself and not infrequently give enjoyment to a few at the cost of unhappiness and degradation for the many. They are grouped from productive to wasteful consumption and often concern the use of effort and wealth to gratify demands, when they might better have been utilized in some other manner. The incidence in the consumption of luxuries, as in the case of necessities, is the social value their use entails. desire goods for higher wants is worthy, and the character of the civilization in which such manifold wants are general must be conceded superior to the level of a society wherein luxuries compose a large number of things a few may have, but which many covet yet can never secure.

To

As the standard of living of a people rises, more and more goods regarded previously as luxuries, come within the scope of consumption by the many. Individuals and countries of low productivity, encountering great difficulty in the acquisition of wealth, have a small category of necessities, and a comparatively large category of luxuries; whereas highly productive societies living in rich territory have an increasing number of necessities and a comparatively smaller amount of luxuries. In the one instance the struggle for existence removes the opportunity to

create a demand for new experience. On the other hand, advanced societies accumulate wealth rapidly, thus inducing leisure and the opportunity to indulge in the gratification of a larger body of wants that pass rapidly from the class of luxuries to necessities. Whenever the production of luxuries does not interfere with the production of necessities, and social advance takes place, there are present the conditions essential to the universal adoption of many products as necessities, which previously were regarded as luxuries.

4. There is an individual concept, later having wider application, which appears when the self is materially gratified and where the element of prodigality does not lead to the misuse or disregard for wise expenditures that do not take cognizance of future productivity. Wasteful extravagance cannot be justified either as an economic or a social matter. This would seem to imply a further distinction in the classification of those items which are commonly designated as luxuries. The trampling under foot by a cortege of a fortune in orchids cannot be condoned as a form of consumption that satisfies a higher want. To gratify a momentary caprice in a way that is utterly destructive must be regarded as eminently harmful, rather than beneficial.

One cannot with impunity spend the substance of his labors during the years of his greatest productivity. The idea that a person