Reviews the book "Papers on Accounting Principles and Procedure Presented at Fifty-first Annual Meeting of the American Institute of Accountants."

Apologists for stock exchanges have advanced various arguments to justify the maintenance of the exchange machinery. Many of these arguments have been carefully analyzed, but the contention of exchange officials that stock exchanges provide industry with capital has not been thoroughly explored. In some instances the argument is stated in just this form; in other instances the connection between prospective capital funds in the hands of investors and industrial investment is traced through the active markets made possible by the operations of speculators. Implicit in the writings and testimony of stock exchange officials is the thought that without the operations of stock exchanges, industry would have difficulty in securing new capital funds. Financing cannot ordinarily be effected directly through the stock exchanges since the listing rules of these exchanges call for seasoned and widely distributed issues. Therefore the financing function can only operate indirectly through the play of economic forces which are mirrored on the stock exchanges and which thereby facilitate the selection of successful companies by purchasers of securities.

Reviews the books "Federal Income Tax Handbook, 1938-39," by Robert H.Montgomery and "Federal Taxes on Estates, Gifts and Trusts, 1938-39," by Robert H.Montgomery.

This article presents information on capital gains and losses in accounting. Capital gain has been defined as "profit upon realization of assets otherwise than in the ordinary course of business, this profit being the excess of the proceeds of realization over the cost of the property realized." Accounting makes a careful distinction between realized and unrealized capital increments, the latter generally being designated "appreciation." No matter how capital gain is defined the most significant feature of the transaction is that it does not occur in the ordinary course of business. Another peculiarity of capital gain from the accounting point of view is that it is not recognized until actually realized. The conditions and circumstances which bring about capital losses (realized or unrealized) are various. A change in price levels may be a cause. Obsolescence is frequently associated with capital losses. In the case of security investments, factors related solely to market conditions may be primarily influential. To say that capital losses are always non-recurring and outside the regular fulfillment of the particular function of a business enterprise is hardly accurate because obsolescence and many of the other risks which might result in loss of capital are always present and cannot be disassociated from the purposes of an enterprise.

Reviews the book "Seidman's Legislative History of Federal Income Tax Laws, 1861-1938," by J.S.Seidman.

Reviews the book "Social Research," by Manuel C. Elmer.

Reviews the book "The Theory and Practice of Modern Taxation," 2nd ed., by William Raymond Green.

Reviews the book "Social Security Taxation and Records," by Calvin E. Favinger and Daniel A. Wilcox.

Reviews two books on taxation procedures. "The LaSalle Manual of Federal Income Tax Procedure" and "Prentice-Hall Tax Diary and Manual for 1939."