Knowledge that Transforms

I. Introductory; neglect of Veblen's general theory, 598.— II. His main criticisms of economics, and the fundamental standpoint implied therein, 600.— III. Psychological postulates of Veblen's theory; the evolutionary idea, 602.— IV. Summary of the theory: the savage era, 605; the barbarian era, 607; the period of handicraft, 611; the age of the machine process, 613.— V. Analysis of the modern economy, 614; its place in the general theory, 617.— VI. Integration of Veblen's ideas, 618; this a system of theory different from the Marshallian, 620.— VII. Criticism of Veblenian psychology, 622; treatment of history, 623; and institutions, 624.— Conclusion; issue of the institutional controversy, 624.

I. Suffocation by analytical definition, 377. — II. Rationality and the Individualist Exchange Economy, 387. — III. Scientific Precision and "the" Stationary State, 391. — IV. Pseudo-Positivism and the doctrine of "the logical gap, " 401. — V. The Mecca of twentieth century economics, 408. "… One day in looking over his books he discovered a remarkable law. For every item on the credit side an equal item appeared somewhere else on the debit side. ‘Ha!’ said the Bursar, ‘I have discovered one of the great laws controlling the college. It is a perfect and exact law of the real world. Credit must be called plus and debit minus; and so we have the law of conservation of £.s.d. This is the true way to find out things, and there is no limit to what may ultimately be discovered by this scientific method. I will pay no more heed to the superstitions held by some of the Fellows as to a beneficent spirit called the King or evil spirits called the University Commissioners. I have only to go on in this way and I shall succeed in understanding why prices are always going up.’" The Nature of the Physical World.

I. Railway rate theory developed to explain and justify rates not based on cost, 168.— Early analysis an overhead-cost theory, 173.— Terminology, 174.— Development of overhead-cost theory, 178.— Joint-cost explanation, 182.— Criticism of the analogy, 184.— Monopoly explanation, 185.— Grouping of later writers, 186.— The attack on the joint-cost theory, 189.— Back hauls, 197.— Defenders of the joint-cost theory, 199.— Classification of recent writers, 203.— Discrimination not always possible, 206. II. Do preferential rates burden other traffic? 208.— Charging what the traffic will bear and monopoly profits, 214.— Value of service leading to excessive rates, 220.— Arguments for cost of service, 224.— Are cost allocations practicable? 225.— The assumption of unused capacity, 228.— Differential charging will persist, 229.

Introduction, 449. — Brokerage office loan routine, 449. — Demand for funds inelastic at a given moment, 453; and over a period of time, 454. — Supply by “others” inelastic in 1927, 456. — Supply by banks elastic throughout 1927, 458. — New security issues the cause of increased demand for loans in 1928 and 1929, 460. — As a result of Federal Reserve policy, supply by banks inelastic after 1927, 461. — New security issues and high interest rates responsible for elasticity of supply by “others” in 1928 and 1929, 461. — Conclusion, 462.

The principal effect of a corporation law on financial statements is in the presentation of the net worth accounts. This effect arises from the definitions, sometimes implied, of capital and surplus, and from prescribed methods of establishing, and of increasing or decreasing capital and surplus. It is essential that an accountant, properly to serve and protect the interests of his client, interpret for that client and for the public which relies on the client's financial statements, the effect produced by law on such statements. Only by making a study of the law of the states of incorporation and residence may he determine how the facts may be best displayed. Certain requirements of the Michigan and Delaware Corporation Acts with regard to the capital and surplus accounts of corporations are worthy of special note. By a study of certain sections, and by amplifying and clarifying, the accountant may display the facts in a manner which will more clearly inform clients on important matters, and enable them properly to chart their future course. The discussion in the article deals only with the net worth section of financial statements, such as the display of information showing changes in capital and surplus, and the effect on the balance sheet of a corporation by the purchase of its own capital stock.

Reviews the book "Accounting in Law Practice," by Willard J. Graham and Wilber G. Kats.

Reviews the book "Wages and Wealth," by Roy Dickinson.

Reviews the book "Duties of the Junior Accountant," by Alfred B. Cipriani.

Reviews the book "The Detroit Money Market," by G.W. Woodworth.