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The article discusses various issues related to political economy and business economy in the U.S. Political economists have identified the cause for confusion of traditional economists about the idea of capital and wealth. The confusion arises in the cases where property is used in its exclusive or prohibitive sense. Capital in the sense of value is based on property in the exclusive sense, just as capital in the sense of goods or wealth is identical with property in the inclusive sense. It is by defining property as the right of obtaining services and then using it as the right of preventing services that business economy can set itself up for political economy.

The need of a clearer, more consistent, and more generally accepted terminology in economics is felt by all economists today. The selection of price as the first subject for terminological discussion may, however, call for justification. It has been objected that price is a less difficult term, less in need of re-definition, than are various other concepts such as value, cost, etc. But the easiest topic in terminology is none too simple. The definitions, which should constitute a system, seem at times to be but a snarl to be untangled, if at all, only by carefully pulling a strand at a time, beginning with the threads least intumesced. Price in all its variations of definition has to do with practical transactions in the market; it seems to be a more tangible fact, a more superficial phenomenon than such things as value and cost; it should present, therefore, fewer difficulties in definition. Yet it presents difficulties enough to call for all our patience and thought. Price is a compared exchangeable value. In an exchange one must make a comparison between the value of the goods to be given and the value of those to be received.

The article presents a study related to scientific management. Scientific Management has been defined as a mechanism, which consists of certain broad general principles, a certain philosophy, which can be applied in many ways. The new system throws increased responsibility, new burdens and new duties on the management. It is still an issue of debate whether the specialization by limiting each man to a specific work is a step towards economic progress from a national point of view. The author says that it must be kept in mind that working people in the future will have to be treated less as tools and more as humans. The author says that selection or the workers is considered one of the most important functions of the management. The class of the workers who fail to attain the minimum output assigned to them also need to be dealt. Issues such as the arrangements for preserving the health and safety of employees also hold great importance. Good conditions of work and wages, such as good lighting, well-ventilated rooms and cheerful surroundings also have a direct effect on the economic efficiency of the worker.

The article provides a discussion on scientific management. Under modern factory conditions the worker is treated purely as a raw material. It is bought in the cheapest market and high wages are paid on the basis of increased efficiency. Scientific management is a request to the manager to organize the plant more efficiently. Scientific management advocates not only vocational selection, but also vocational training. In certain specialized trades it pays to develop the worker's individuality. It is feared that, in industry generally, scientific management will take rather the opposite line of development, and will make the worker's life more monotonous. Scientific management introduces a force which tends to counteract the cramping effect of specialization on the man. The careful studying and costing of jobs required by Scientific Management will lead to the introduction of automatic machinery so that many of those jobs which hitherto were the most monotonous will disappear entirely.

This article discusses the development and theory of scientific management. The development of the factory system brought with it many new problems connected with the organization and management of labor, the structure and equipment of factories, and the technique of production. By successful manufacturers these problems have always been solved in a way to make manufacturing at a profit possible. Early solutions, however, were necessarily crude and roughshod. With the enormous increase in demand for manufactured products, in the investment of capital, and in the number of men engaged in the business, with the consequent development of ever-keener competition, the early methods have been found insufficient. Especially within the last twenty years a degree of skill and technical training has been brought to bear upon the solution of factory problems which has made modern factory management a thing much more elaborate, refined, and effective than ever before. The methods of scientific management which affect most directly the human factor in production have stimulated a literature which is of sufficient importance to warrant being put into a fifth class by itself.

The article presents author's reply to comments made by Edward Cadbury on the author's article "Some Principles of Industrial Organization." According to the author, Cadbury has made a very earnest and impartial effort to represent fairly principles of scientific management. However, he has never taken the trouble to investigate personally a company which was actually running under those principles. He feels that Mr. Cadbury fears that "the assignment of daily tasks to workmen may lead to a great nervous and physical strain," "the reduction of the workman to a living tool," and may "induce him to spend his last ounce of energy while initiative and judgment and freedom of movement are eliminated." The effect of assigning equitable and fair tasks is just the opposite of what Mr. Cadbury fears. These tasks guard against the possibility of over-driving and over-working the workmen. One of the marked characteristics of the shop working under the author's system is that there are, every day, more complaints made on the part of the workmen that the management has failed to do its duty in some respect than there are complaints on the part of the management of failure on the part of the workmen.

An interesting and significant feature in the discussion of Scientific Management is the contrast in the conclusions arrived at by the four types of men who have taken part in the discussion. While acknowledging its obvious social advantages, Mr. Hobson's habit of thought leads him to forecast its probable or possible future developments as they affect society, with reference to which he raises two important questions: First, is the social benefit sufficient to outweigh the possible disadvantages of increased specialization? Second, are the methods of Scientific Management compatible with collective bargaining, and therefore with trade unionism? Sociologist Edward Cadbury, a practical and highly successful manufacturer, with a humanistic point of view, is bound to admit the industrial advantages of Scientific Management, but tends to the belief that the system at work in his own plant, developed by him through years of experiment, has all the advantages and none of what seem to him to be the disadvantages of the F.W. Taylor system.

The article presents reply from the author on the discussion on his article related to Scientific Management. Various sociologists agree with the author that Scientific Management is bound to become general in time, and that it is the business "to study how to turn it to the best use of the community." They also agree that specialization will be carried much further than it has been in the past, and one result will be that the work that skilled men used to do will be given over to semi-skilled or unskilled men. On the other hand, the skilled men tend to be absorbed in the ranks of inspectors, machine-setters and time-study men. One must remember that the trained skill and initiative, which distinguishes an artisan from an unskilled laborer, has a money value, and under Scientific Management this capital passes away from the workman to the management. Other sociologists emphasize another important point that must be kept in mind. Excessive labor and other damages to workers may in some cases be profitable to employers.

The article examines the actual working of scientific management in labor practice. Frederick W. Taylor introduced the concept of scientific management. According to the author, the total number of applications of scientific management is 140. Classification of these 140 applications is also given. The most significant classification is with reference to the complexity of their routing and order systems. Concerns mainly have been expressed on the industrial applications. The one phase of the relations of scientific management to the public on which considerable information is available is that of its relations with the labor problem and more particularly with organized labor. Fundamental principles of scientific management are also discussed in the article. The differences between scientific management and other current systems are most notable in connection with the handling of labor, standardization of materials and equipment, the specialization of administration, and the application of the functional and exception principles to the organization as a whole.

The old farmer's Almanac used to carry at stated intervals the legend, "About this time expect rain." In the same way the almanac of industrial legislation might carry at stated intervals the legend, "About this time expect legislation in control of speculation." Demands for such legislation seem to come at intervals without any particular regularity and with no more particular reason at the special time than the reasons for the predictions in the farmer's Almanac. As is well known a most elaborate investigation was made into the subject of both stock and produce speculation by the commission which reported in 1896 and an act was passed which went into effect at the beginning of 1897. Ten years afterwards this legislation, so far as the stock exchange is concerned, was repealed and in the report on the act of repeal it was clearly stated by the government that the experience of ten years had shown that this well-meant legislation had exactly the contrary results of what had been intended.

According to the author, Edward D. Jones's paper on the relation of education to industrial efficiency is of extreme importance, because 1) he has demonstrated the fact that such general principles exist, 2) he has emphasized the great importance of industrial leadership, a subject that has never publicly received the attention which it deserves, and 3) he has urged teachers of economics and business administration to regard the industrial manager not only as a ruler of matter and force, but as a leader of men. Jones has made it perfectly clear that as all "administration" means directing the activities of men, the particular kind of activity is incidental, and subject to general laws. The importance of leadership has been given all too little attention in the past, apparently for the reason that accidental conditions have in many cases been quite as effective in securing wealth as has leadership. Jones's insistence that teachers of economics and business administration should regard the business leader as not only a ruler of matter and force, but as also a leader of men, is exactly right.

The article discusses the role of money in economic theory. Political economy, is the science of business, and economic men are money-makers; nevertheless, the use of money is a fact of no importance for economic theory. This seeming contradiction between the letter of the economic law and its spirit as interpreted by loyal commentators long passed without notice. While the psychological school has been developing its pecuniary logic, certain pure theorists have sought another way of emancipating themselves from hedonism. To explain and to predict economic behavior, then, the economist needs a measure of the strength of the opposing sets of regularly acting motives. The use of money is one of these great rationalizing habits. It gives society the technical machinery of exchange, the opportunity to combine personal freedom with orderly cooperation on a grand scale, and the basis of that system of accountancy which Sombart appropriately calls "economic rationalism." The economist have tried treating money as a superficial phenomenon: they have tried using hedonism as the basis of economic rationality. But in working out, in treatise after treatise, a reasoned account of how men behave, they have come, without foreseeing what they were doing, to the basis on which Cournot built in 1888. The current tendency to make money "the center around which economic science clusters," then, is a tendency to be fostered.

The article presents a discussion on price maintenance. Here, one questions the implication that price maintenance would mean a maintenance of the existing system of marketing. The plan of legally-maintained prices, or of legally forbidden price cutting, is an adjunct to the relatively recent increase in advertised "identified" goods, and it is seeking to gain acceptance under the guise of the new tendency to recognize various restraints of trade as reasonable. Another said that there is great temptation to assign an efficacy to governmental activity which it does not possess, either because of the nature of political institutions or because of the character of the phenomena which is sought to be controlled. This is especially true of governmental activity in relation to economic affairs, and nothing is more common than the failure of statutory law enacted in opposition to economic principles. The overhead charges of a retail bookstore are high, exceeding twenty-five percent, and requiring a "spread" of a third of the retail price to give any margin of profit; but the overhead costs of a department store are as high and probably higher, as the figures published in system have indicated.

The article examines the opposition of organized labor to scientific management. The author notes that labor union representatives consider scientific management a way of improving production and profits that neglects the problem in distribution. They regard it as a factor in over-production and unemployment, as well as a routine that judges laborers. He adds that the reasons for the opposition are similar among labor unions. He mentions that distrust, abuses in management and its being rude are also some of the reasons of organized laborers for opposing scientific management.

The article presents information on a research regarding positive contributions of industrial management as a solution to industrial problems. The successive stages of scientific developments enabled the industries to make accurate business and economic forecasts. It helped them to reduce industrial problems while improving industrial efficiency. It helped the industries to increase production with improved quality. The study analyzes improvements in quality maintenance, speedy production and accurate delivery of products as a result of positive contributions of industrial management.

The article focuses on issues regarding industrial morale. It discusses several causes of low morale, a topic about prevailing business philosophy as a cause of low industrial morale and issues between the management and workers. The author defines industrial morale as the degree of cooperation extended by employees of an enterprise to the management in the course of their work, the interest they manifest in their work and in the enterprise by which they are employed and their willingness to assume a share of the responsibility that their work is properly and expeditiously done.

The article focuses on the business management of Ohio. There was an important industrial city in Ohio whose citizens grew tired of the way its affairs had been and were being run, not by any means an unusual situation in American cities. There was a successful business man in that community who had an exceptional faculty of advertising his wares and himself. Through his advertising he made his name known to substantially everyone in the district and established for himself a general reputation for cleverness. When the mayor thus chosen on his own platform and without party affiliations took office, he knew no more about municipal law, municipal practice or political ways than a new-born child. So in addition to entering on his term of office as a complete novice in municipal matters, he approached them as a personal adventure in advertising and sport rather than as an effort to serve his fellow citizens in the solution of one of the serious problems of modem times. Whenever one hears a mayor or the head of a department or bureau say he is hampered by the civil service law in the removal of an employee, one may depend upon it there is no good and substantial reason for such action. The demand of the day is not for successful business men to become mayors but that carefully trained men shall be chosen to run the city business.

In view of the accumulating body of criticism of economics and the diversity of proposals for its reform, it may be permissible to essay the task of discovering where, in the scale of scientific evolution, economics at present stands. With economics, the various schools are concerned with seemingly different problems and offer a wide variety of solutions thereto; yet to the eye of the detached spectator, who is not too much confused by labels and formulas, economic theory appears to be a single enterprise in speculation, addressed to the problem of accounting for economic affairs in terms of two major or basic conceptions-an economic system and human autonomy. There are numerous experiments on group behavior now under way, as seen in advertising and publicity campaigns, the various kinds of associations of persons and of industrial organizations, which offer excellent opportunities for study of behavior sequences. Social science will probably produce a method of developing and removing habits in a group, which suggests the possibility that we may some day work out a method of promoting a truly social life by discovering a technique for inculcating the habits needed in social living.

The article presents information related to a research program conducted in business firms. The idea behind the working out a scheme of technical procedure a little more comprehensive and sound than, perhaps, it had been in the past. The first subject on which being investigated was cash. The researchers were led to that by reason of the fact that fraud had been rampant as is known during the past two or three years. Cash irregularities have increased tremendously in number and amount and volume and perhaps cash of all the assets is the most easily manipulated and stolen. In working out the program in connection with cash, three men of considerable experience in the profession met and formulated, out of their own experience, a program directed at the verification of cash balances and the accuracy of the cash records, all with a view of detecting any and all forms of cash irregularities--rather a pretentious undertaking, of course. After setting up this ideal or theoretical procedure they compiled from reports about 75 or 80 cases representing actual cash irregularities, giving consideration to the manner in which it bad been concealed and the method employed in the detection of the irregularity. Having set up the ideal procedure out of experience, they then proceeded to test these cases against that procedure, finding, of course, a number of weak spots, which then was corrected and strengthened, finally utilising the resulting procedure as a basis for the work of the organization in the verification of cash.

The United Typothetae of America is thirty-nine years old. It began its accounting activities in 1909 and in that year our standard cost finding and accounting system was adopted. The principles of this system have been endorsed by each succeeding annual convention and in the main stand now as originally agreed upon. If two or more salesmen are employed, a separate account should be maintained for salaries and another for commissions. These accounts are then to be further analyzed and classified records kept of performance. If salesmen do work other than strictly selling, proper recognition should be given. An analysis of sales to ascertain to what extent this expense is recovered will be helpful. In arriving at the total selling expense, not only should the direct selling expenses be considered, but all other expenses such as stenographer time, telephone, telegrams, stationery and other incidentals. To make a monthly provision for bad debts is to face facts. Membership in a credit association should not be a substitute for this account. It may, of course, materially reduce the monthly allowance. In addition to making this monthly charge, a careful check-up should be made at stated intervals to ascertain if the monthly provision is adequate.

The article analyses on the importance of human factor in social life. Consideration of human resources started in the field of sociology with studies of men of genius. In practical affairs, the human resources movement first appeared in industry. After a certain degree of development on the mechanical invention side had been reached, attention turned to the human elements. This has resulted in a movement which extends from the technique of personnel management up to vocational guidance and the wider social implications of industry's labor force. Human resources as a useful concept in the science of the community has been suggested to the writer by several observations and experiences in community organization. Local politics and local government have largely broken down as dominant and satisfactory forms of social organization for the community. Local politics at least does not today attract a large amount or high degree of talent, formerly, it was a quite efficient means of focusing human talent into service for the local community.

The article focuses on the Employee Representation Plan of the Durham Hosiery Mills. A record of the experiences of all those industries in which definite efforts have been made to give employees a voice in matters affecting their employment should be of value to those seeking to restore the personal relations which existed when industry was conducted on a small scale. The information was gathered from personal interviews with the Carrs and other stockholders, several foremen and employees and the employment manager of the company. Julian S. Carr, president of the corporation, was the originator of putting on an organization in which the employee and employer would become a unit where interests were mutual. His idea was, judging from a statement he made to the employment manager, that labor and capital were both sure to suffer soon on account of the reaction in industry which must follow the war, and he desired the employee to know the true conditions. He had always greatly disliked the idea of dual factions, with manager pitted against employee. He said he had no desire to fight unions, but wanted to offer something better.

The tenth annual meeting of the American Association of University Instructors in Accounting was especially noteworthy because of the able papers given on the subject "Research Work in Universities." Inspired by these papers the present writer decided to ascertain approximately what graduate work in applied economics the American universities were doing. As there were no data available on this subject, a survey was started. This paper is the result of the survey conducted by the Association. The basic courses in commercial law are so fundamental that practically all graduate schools of business offer them. The commercial law courses are 8.4% of the total applied economic courses in non-urban schools and 6.2% in urban schools. This variation is due to the difference in the total number of courses offered in non-urban and urban schools as the number of commercial law courses offered is practically constant. The unusual number of commercial law courses offered at American University and Pennsylvania University is doubtless due to local conditions, the excellent standing of the graduate law school at the former and unusual complexities of the State law code at the latter. Business management ranks first or is tied for first among the applied economic groups in five out of the twenty-seven schools.

It has been seen, especially in the U.S., that for any given industry an increasing or decreasing of accounting structure parallels a similar increase or decrease in the organization. Business organization and administration tend to place emphasis upon the personal elements in business activity. Personal element, that is, recognition of the parts played by individuals within their business units, is a factor which makes vital the accounting records. Business organization expresses the relationships of owners among themselves and to operators or managers engaged in the service of the owners. A second form of relationship is found in what Is sometimes called "internal organization," organization in terms of the various functions performed by the individuals or by groups of Individuals within the business unit. In the article, a brief consideration of two types of organization relationships between the element of business organization and administration and accounting have been discussed, which include, firstly, the work of the auditor in certification, and secondly, the recent development of the operating statement for purposes of administrative control.

This article presents views of various economist on land economics and marketing. According to R.T. Ely by land we mean natural resources and land economics is the science that "deals with those human relationships among men which arise out of the utilization of land." Old economic treatises have given less attention to land than to the other factors of production and even their treatment of land income under the term rent is far removed from reality. A still larger conception of its scope is to be had when one realizes the close relationship existing between all industries and our natural resources. According to Melvin T. Copeland nowhere in the U.S. wholesale business being conducted by settled methods. This fact is indicated by a review of the conditions existing in various typical wholesale trades at the present time. A fundamental struggle as to how the wholesale function is to be performed is under way and many wholesalers still are dodging the real issue. The wholesale function must be performed, but the wholesale merchant is not in a position to dictate how it is to be performed. He is a middleman and must serve the interests of manufacturers and retailers.

The article presents information about the role of controller in a business organization. Qualifications and training of the controller may not be out of place. It seems that the primary requisite is that he shall be a business man. While he, of course, must be a skilled accountant that characteristic is secondary to the one just mentioned. Because of demands made on him in the making of records and drafting of reports which shall be usable by all operating executives, it is absolutely essential that he have a sound basic knowledge of all of the functional activities of the business. This means that he must have an understanding of the principal operating problems of the business. Without this he cannot adequately perform duties of his office. Because he is brought in such frequent contact with officials of the company, he must also be a student of men. Coming, as he does, into close relationship with all executives of the business he must know how to get along without undue friction with the men whom he is serving and whose activities it is his duty to control from an accounting standpoint, as distinct from an operating standpoint. It is thus seen that the controller must have a thorough training in business and this should give him a basic understanding of the broad movements of business, as well as a particularly intimate knowledge of the operation of his own business.

The remainder of this article is addressed to the task of considering a course of this kind which is adapted to the use of university schools of business administration, a course to meet the needs of both advanced undergraduate and graduate students. The method which is described here uses several different means of instruction. One way in which a text book has been used to good advantage by the writer in the instruction of his students has been to assign to them the entire book to be read rapidly during the first week, indicating to them the parts which can be skipped at this first reading as well as the parts which should be glanced at more thoroughly than the others. It is often satisfactory to assign readings therein and then give the students a chance to ask questions in class about any of the points which have bothered them. It will often be found that such questions show that the students have failed to read the text with sufficient care aid directions to look up the answers to their own questions.

The article focuses on the controversy created in the U.S. by a proposal contained in a book that every corporation should be compelled by law to publish complete detailed reports of its internal affair. Corporate reformers urge for the adoption of the proposal on the ground that it would protect defenseless stockholders from being swindled by corporate managers and would in other ways contribute to the public welfare. The opposition is composed of those corporate managers who maintain that the proposed laws would not only fail to produce the good results expected of them, but would also hamper business activity and progress. The complete reports would include a statement of affairs, or balance-sheet, and a statement of incomes and expenditures, or operating statement. It is intended to secure for public inspection reports which are detailed at least as fully as is customary in the particular trade for the use of creditor banks. The author analyzes the advantages and objections to the plan and finally some general observations and conclusions are given.

The article focuses on cost accounting in Great Britain. Institute of Cost and Works Accountants was organized in 1919 with its headquarters in the city of London, with local chapters in London, Liverpool, Manchester, Sheffield, Birmingham and other centres. It publishes a periodical giving articles with aspects of cost accounting and news of the chapter activities. It sets examinations which must be passed as a prerequisite to membership. The purpose to be served by cost accounting include, statistical, economic, manufacturing and administrative. The extent of analysis, the technique of the system and the intricacy of its operation are all to be dependent upon the executive's use of the cost reports. Cost accounting is also considered as a partial solution to labor difficulties. It is suggested that accurate cost thinking on the part of labor and capital will give both parties a similar point of view and lead to co-operation. There is a new appreciation of the utility of cost accounting, in the light of present industrial condition in Great Britain.

There is no longer any considerable discussion on the point that the accountant must prepare condensed summary statements of the operations for the year and the resulting financial condition, and must maintain current records of the assets, liabilities and proprietorship items. But the function of greatest value to the organization is to provide analytical information which will promote operating efficiency, regardless of the complexity of operating details, organization or responsibility. Certain of these analyses to be of value must be compiled and used daily, weekly or monthly and must exhibit transactions immediately following their performance, and these statements must so interlock with the general program as to preclude duplication of work and result in the final formal closing at an early date each period. Few controllers in any of these fields of business activity could justify their outlay for clerical and statistical force, except on the ground of promotion of operating efficiency. To accomplish this task the accountant must analyze results and the cost of securing these results in such manner as to determine the desirability of existing policies and the performance of individuals in carrying out these policies.

The effect of the mechanization of industry upon the worker is a topic that has given rise to much general assertion. In so far as these general assertions are made by merely literary exponents of human situations they are often wild and fantastic. It is true that most charts used to illustrate the effect of changed conditions of work are stated in terms of production. But this is done for two reasons, first, because production is quantitative and susceptible of exact determination, and second, because production is the best index of individual adaptation, that is, it shows "the combined effect of the conditions imposed." It is difficult to discuss the question of industrial fatigue because the word is used with such variety of meanings that, without careful definition, it is almost impossible to know the hypothesis or question involved in the discussion. There is, for example, the physiological fatigue that occurs as a consequence of heavy muscular work, "oxygen-debt," or, over a longer period, the depletion of reserves. There is another disability, sometimes described as fatigue, which is occasionally acutest before work begins.

Accounting has been offered in some form to students in engineering schools for at least twenty years. It is only recently, however, that serious consideration has been given to this subject as an integral part of the required curriculum. The fact that engineers were entering positions of administrative responsibility in which their technical training was not directly applied, brought to the attention of engineering faculties the need for some adjustment in their established curricula. The collegiate Schools of Business started their phenomenal growth about the same time as the movement for industrial management in engineering and largely for the same reason. The first call for business training came from concerns that needed trained accountants and cost analysts. Somewhat later, the schools of business began to give more attention to the fields of marketing and finance which at present occupy a considerable part of their attention. The accounting courses in engineering should be a part of a management training program fitted into an adjustment of the curriculum of the existing courses in mechanical, electrical, civil and chemical engineering.

The article presents views of the author on the article "Selling and Administration Expense Analysis As a Basis for Cost Reduction." I think that the title should probably have seemed more logical and orthodox than the one adopted. It is quite true that expense analysis has generally had as its object the reduction of costs, it is also quite apparent that cost reduction should object of such analysis. Why then inject this type of analysis as a basis for sales control? Just what do we mean by cost reduction? Is it merely a reduction in size as compared with previous dimensions, or should it be measured in a different way? Is it something that can be considered alone, or must it be studied as a relative thing? Should we think of costs as money and service outlay or as standards of measurement? And if we view them as standards of measurement what do they measure? I know of no cost that is not a measure of performance. In fact, a performance without cost, in business, is quite unthinkable. Performances and costs run along parallel lines. The performance creates the cost, but parallel lines may or may not be of the proper relative lengths. Even in a profitable business, viewed as a whole, where the performance line is naturally longer than the cost line, we have no assurances that either line is of the right length.

The article discusses the views of French social philosopher Henri de Saint-Simon on the relation between economic policy and rationalisation of industry. In his view, the organisation of industry is an exercise in the practical application of a social philosophy. In his economic policies, Saint-Simon shows that he is a complete follower of the policy of laissez-faire. His views were identical with those of the two young political scientists and economists, Charles Comte and Charles Dunoyer, who were engaged at the time in forging a liberalism for nineteenth century France. The writings of Saint-Simon presented a trend toward a greater preoccupation with the well-being of the laboring class. Saint-Simon coined the term industriels or the society of producers to oppose to liberalism. The society of producers seems to be the ideal of laissez-faire on the surface but behind it was a body of moral ideas, aesthetic evaluations, and political institutions oriented in the direction of the general interest.

This article presents information about some new books related to economics, as of December 1931. One of the books is "Bastiat et le libre-échange," by L. Bruel. The article describes that the book opens with the proposition "that every individual spontaneously tries to find the place and the trade in which he can best increase national gain," and closes with a plea for "one single statute. Another book discussed is "Wege aus der Krise," by Lederer. Two lectures by Lederer of Heidelberg discuss the causes of the present crisis and the ways and means of solving it. Periodical economic crises are normal phenomena of the capitalistic society but the present depression is especially acute because of large over-production of raw materials and agricultural products, rationalization of industry, reparations, customs barriers and international cartels, distribution of gold and political instability. Some of the other books are "Economic Theory and Correct Occupational Distribution," by H.F. Clarke; "A London Bibliography of the Social Sciences," by B.M. Headicar and C. Fullar.

This article presents list of new books on accounting, business methods, investments and exchanges, as of December 1931, published in the journal "American Economic Review." One of the books described is "Industrial Engineering and Management Problems and Policies," by R. Branes. This book deals with industrial plant design and equipment, time and motion study, wages, and manufacturing costs. The four chapters on wages deal with general principles, base rate determination and the point plan. Some of the other books are: "Effective Use of Cost Data," by S.l. Angle; "Introduction to Business Economics," by T. Brach and G.F. Carpenter.

The subject of industrial accounting may be treated from any one of three points of view. First, it may be regarded primarily as a method of making and presenting an organized record of business happenings. Secondly, it may be regarded primarily as a method of exercising control over business events; during the period from 1918 to 1925 emphasis was concentrated largely on the "budgetary" aspects of industrial accounting. Finally, it may be regarded primarily as a means of measuring the efficiency of business operations. The subject of this paper is the coordination of the "budgetary" and "standard cost" aspects of industrial accounting. The budgetary idea in industrial accounting was probably borrowed from the municipal field. Municipal expenditures are controlled under the basic rule that no moneys are to be spent except as a statutory authorization or appropriation is made in advance. These appropriations are made after a study of possible revenues; a summary of the estimates and appropriations is designated as the budget. Adopted at the beginning of the fiscal period, the budget is used to control expenditures throughout that period. At the conclusion of the period a report is made showing a comparison of the expected results with actual income and expenditures. As applied to the industrial enterprise the central objective of budgetary procedure is the exercise of control over manufacturing operations.

The holding company may be defined as a company which holds a substantial interest in the stock of one or more corporations. Organizations have been established and are in operation at the present time which hold a minority interest in some one corporation, their investment in this company being a very small part of their total assets, as of March 1933. This is one extreme. The other is the giant corporation, the assets of which consist in entirety of the securities of other corporations. In the broad sense of the term, these are both holding companies and there may be found holding companies at each stage between these two extremes. The author attempts to distinguish between the pure holding company and the so-called parent company. Students of corporation finance generally agree that the pure holding company is one which owns no physical properties in its own name and operates none as an organization. Its function is one of holding securities in other corporations for the purpose of directing their activities. The parent company owns both physical properties and securities of other corporations. It has a two-fold purpose, that of operating its producing assets and controlling the properties of its subsidiaries through stock voting.

This article presents information on research topics in accounting which were suggested in an article published in the September 1932 issue of the journal "The Accounting Review." First group of topics is related to problems centering about the machinery of accountancy, primarily the problems of terminology and usage which is the accountant's vehicles of communication. With the development of uniform terms must come a standard usage for these terms, in financial statements and elsewhere. Second group is the problems turning about the accountant's relations with the law. Some accountants are still struggling with the obscure pronouncements of the courts on matters financial. This aspect of activities offers a fascinating field for research in the accountant's endeavor to take his full measure of responsibility for the new burden which has been thrust upon him. Third group is the problems involving the formation of financial policies having a social rather than a legal aspect. Fourth and fifth group is the development of studies of and techniques for accounting training and the internal management of the profession. These two latter groups of problems would naturally be dependent on the first three, for their solution could follow only as the accountant's responsibilities to society are recognized and defined.

The article focuses on importance of clarity in balance sheet display. One of the most important pieces of work which a public accountant is called upon to perform is the preparation and analysis of balance sheets and financial conditions. By no means is this the mere listing of certain assets and liabilities. It resolves itself into a matter of judgment in arrangement and valuation, and judgment is often a matter of one's experience in judging and noting the results in previous situations. The matter of prime importance to consider is the type of person who will be called upon to read the balance sheet. In a recent examination, it was discovered that the management had been giving itself some systematize, but serious-minded kidding by working on the assumption that installment accounts receivable were not subject to the need forbad debt reserves. This is a matter of problem of valuation. According to the author, balance sheets must be prepared for the benefit of the reader and must be grouped to give him the benefit of the most accurate information available, in the most readable form. It should give him all of the facts and the facts should be stated clearly.

The article focuses on taxation and the business year. The inequality of titration resulting from a difference in accounting periods may be illustrated by a simple although somewhat extreme example adapted from actual practice. Income tax regulations make no specific mention of the matter, but applications for change supported by the plea that the corporate taxpayer wanted to bring its books into agreement with its natural business year have been approved by the Commissioner of the U.S. Internal Revenue Service. The theoretical limits of the natural business year may now be examined from the viewpoint of taxation. The last old closing date will evidently be defined as that point in time, at which the present value of all future income tax payments is a minimum. In order to single out the problem of seasonal fluctuations, it is necessary to disregard changes in profit due to the business cycle, the general long-term trend and the individual trend of the business under consideration. To obtain the amount saved per annum, all that is necessary is to multiply the present value of the total savings by the interest rate.

A calendar of events related to industrial psychology in England for February 1934 is presented. An address by W. Raphael to King's College Department of Household and Social Science in London will be given on February 7. A paper by A. Rodger to Cambridge Training College for Women will be delivered on February 9. An address by Dr. G. H. Miles to the Association of Master Printers of West and North-West London will be on February 27.

Accounting data and procedures impinge upon the National Reform Association (N.R.A.) codes and their administration at a number of points. There is for example, the matter of keeping the books and auditing the accounts of Code Authorities. These bodies, whose precise legal status is still a matter of considerable uncertainty, are permitted to collect in a compulsory manner funds from the members of industries under their guidance, and to spend those funds on the basis of budgets approved by the N.R.A. officials in Washington. Accounting data have been extremely useful in the making and amending of codes. The best example of such aid is the ascertainment of the effect of proposed wage and hour provisions on costs. The N.R.A. appears to the author as a challenge to industrial accounting practitioners to bring into play talents which will begin to act because of a recognition that all business transactions are in reality cost matters finding expression not only in the processes of making goods and marketing goods but also in the processes of capital investment and economic readjustments.

The term business enterprise is still being endowed by the early theorists as a description and defense of the existing economic order. In early days of capitalism, business enterprises in capitalist societies had a definite content. Capitalism was synonymous with the activity of business enterprises, who were typically individual owner-managers. In present times, business enterprise can be viewed as a great corporation, in which, for the most part, ownership and management are held separately. Accordingly, the formation and investment of capital can be viewed as institutionalized in great savings and insurance repositories, in complex and highly speculative financial markets, and in intricate corporate accounting and financial policies closely associated with undistributed profits. The nature of competition would be highly imperfect under such circumstances, and would be more close to be called as imperfect monopoly. The entire situation presents an acute confusion, and the article explores the concept, meaning and identity of business enterprises under such situations.

The relation of accounting to economics has been the subject of discussion a number of times, but no program devoted to accounting relationships would seem complete without some expression on the subject of economics. The economist and the accountant have been members of the same family for a number of decades, since the early period in which economics permitted this fledgling to enter the liberal arts colleges under the shadow of its protecting wing. They later became chief partners with business law in the organization of curricula in business and schools of business. However, there are many indications that the two fields are coming closer to a mutual understanding. Economics is developing most rapidly in the field of statistics and statistical method and in this type of study is reaching more and more into fields hither-to largely the habitat of the accountant. Also, finance and marketing, among others, are studying problems closely connected with accounting and in which the accountant is apt to contribute much of the useful material.

This article is a condensed version of part of a paper read by Dr. Käthe Liepmann before the Industrial Section of the British Psychological Society. Sections of the paper not reproduced dealt with the wider social and economic aspects of the increasing mobility of labour, and its importance for industrial relations and housing. [ABSTRACT FROM AUTHOR]

The article offers updates on the activities of the industrial psychology for 1935 in Great Britain. About twenty-eight sessional courses on Industrial Psychology will be conducted on October 10. The British Association for the Advancement of Science will hold a meeting on September 4 to 11. The Department of Industrial Cooperation will disseminate number of papers concerning on industrial and commercial management.

This paper consists of three sections devoted respectively to recruitment, selection, and illustrative cases. When men are recruited from outside a business to be trained within it for high administrative posts, they should, in the Institute's experience, be generally engaged at the age of about twenty-two. They should be selected with the aid of psychological methods ; the use of these methods, in enhancing the value of the interview and in regard to suitable tests, is described. Methods are described, which have proved valuable in practice, for the discovery of suitable men when they are recruited from within the business. The merits of these two methods of recruitment are compared. The qualities specially required for high administrative positions are also described ; but stress is laid on their wide variation in different posts and in different natures and sizes of business. [ABSTRACT FROM AUTHOR]

The article focuses on the aspects of the milk marketing scheme in Great Britain. Among the recent attempts that have been made in all parts of the world to improve the economic organization of agriculture, none is more notable than the English Milk Marketing Scheme. While it is part of the general British program for the assistance of the farmers, it differs in many essential respects from the schemes that have been set up individually for other products either under specific acts, as for wheat and sugar beets, or under the general provisions of the agricultural marketing acts, as for potatoes, hops and bacon. Under the milk scheme complete control over all milk sold in fluid form from farms in England and Wales is exercised by the Milk Marketing Board. England and Wales, with a cow population of roughly three millions, produce annually between twelve and thirteen hundred million gallons of milk. When deductions are made for the quantities fed to calves and consumed in various forms by the farm families themselves, the net commercial production is reduced to approximately one billion gallons.