THE THEORY OF INTEREST

a universal truth. Of the infinite number of possiblelonger processes only those which are more productivethan shorter ones are chosen . 28 This is what was noted inChapter XI when it was shown that the O curve is con-cave simply because the reentrant parts are skipped!

It is the third step which is crucial to the theory of thetechnical superiority of present goods, namely, that theproductiveness of long processes gives a special technicaladvantage to the possessor of present goods or presentlabor. This advantage produces, so Bohm-Bawerk as-serted, a preference for present over future goods whichis entirely apart from, and in addition to, the preferencedue to the underendowment of the present. Granting, forthe moment, the validity of the concept of a productionperiod, and that the longer the period, the greater itsproduct, it may still be shown that no such technicalsuperiority follows. Bohm-Bawerk regards this part of histheory as the most essential of all, and repeatedly statesthat the theory must stand or fall by the truth or falsityof that part.

Bohm-Bawerk supports his assertion of the existenceof a technical superiority 28 by elaborate illustrativetables . 30 Each table is intended to show the investment

* Positive Theorie des Kapitales. “Meine These schrankt vielmehrdiese Wirkung ausdriicklich auf ‘klug gewahlte’ Verliingerungen einund lasst uberdies, indem sie ihr Zutreffen nur ‘in aller Regel’ oder, wieich in der ersten Auflage sagte, ‘im grossen und ganzen’ behauptet, dasVorkommen von Ausnahmen offen.” Exlcurs I, p. 3.

“Wenn Fisher hiemit nicht mehr in Abrede stellen wollte, als was ichoben auf S. 3 des Exkurse I selbst in Abrede gestellt habe, dass namlichnicht alle liingeren Produktionsumwege nur deshalb, weil sie langersind, auch produktiver sein miissen, so waren wir in vollem Einklang.”Exkurs IV, p. 105.

* The Positive Theory of Capital, p. 266.

" In The Rate of Interest there is presented an exhaustive analysis of

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