n INFLATION AND DEFLATION 83

the Investment System , as distinct from theproperty system generally.

Under this phase of capitalism, as developedduring the nineteenth century, many arrange-ments were devised for separating the manage-ment of property from its ownership. Thesearrangements were of three leading types:(1) Those in which the proprietor, while part-ing with the management of his property, re-tained his ownership of it— i.e. of the actualland, buildings, and machinery, or of whateverelse it consisted in, this mode of tenure beingtypified by a holding of ordinary shares in ajoint-stock company; (2) those in which heparted with the property temporarily, receivinga fixed sum of money annually in the meantime,but regained his property eventually, as typifiedby a lease; and (3) those in which he partedwith his real property permanently, in returneither for a perpetual annuity fixed in terms ofmoney, or for a terminable annuity and the re-payment of the principal in money at the endof the term, as typified by mortgages, bonds,debentures, and preference shares. This thirdtype represents the full development of Invest-ment.

Contracts to receive fixed sums of moneyat future dates (made without provision forpossible changes in the real value of money atthose dates) must have existed as long asmoney has been lent and borrowed. In theform of leases and mortgages, and also of per-manent loans to Governments and to a few