I. Professor Taussig's doctrine of a limitation of wages. Tho present consumption must come mainly out of past product, the full reward of labor is not limited by past product, 515. — Present efficiency in part affects wages, 518. — II. Services a factor in social income, 521. — Modern methods of bargaining make possible immediate gains in wages, 521. — Savings admitted by Professor Taussig to bring about elasticity, but the admission minimized by him, 523. — Savings of wage-earners often withdrawn, then replaced; not the annual interest alone is to be considered, 525. — III. Statistical evidence as to the extent of workingmen's savings, 528. — Conclusion, 534.