[Letter] Feb.6,1890,Smith College [to F.H. Giddings]

Feb. 6, 1890, Smith College.

Dear Friend,
      Good enough.
We will talk no more
at cross purposes. I
have all along had in
mind, not Prof. B. Bawerk's
book, but my own analysis
of the facts. I suppose that
it agrees, in the main,
with his. I know as yet
too little of the point
raised by Prof. Wieser about
more goods versus more value
to say anything about it.
I think the difficulty is
obviated by two things[;] 1st
the recognition of pure
capital as the thing that
draws interest, and if
productive instruments as the
things that create the value
that indemnifies the
entrepreneur for interest:
and, secondly, by the supplementing
of the Austrian mode of
studying the process in
longitudinal sections, as it
were, by a study of cross sections.
I think you will see my
meaning. I should say pure capital
necessarily embodies itself in things that
create value. This means the growth
of what we typified as wheat from 100 to
110. Present worth 100 etc.
 As for the exact equivalence of the
psychological present worth of capital + product
on the one hand and consumable goods on
the other - it is only necessary to establish it
in the case of marginal capitalizers or of final
units of capital. When I have read Wieser I will
talk it over farther. I have not even
yet read a single page of the book having
wrestled with Trusts (New Englander)
for the past few days. Next in order
comes the definition work - next week
as I hope - then comes Wieser if present
plans prevail.

           Yours Very Truly,
                 J. B. Clark