Revival of interest in the question of long-run investment opportunity, 64. — Doubts concerning population growth as an "offsetting factor, " 65. — Ways in which it might influence investment opportunity: (1) the propensity to consume, 66; (2) the composition of aggregate consumer demand, 66; (3) the supply of labor, 70; influence of competitive conditions, 72; effect of wage reductions, 73; the expanding economy, 74; labor supply a limiting rather than an initiating factor, 75; (4) broader phenomena affecting investment, 77.

WHEN TO REPLACE individual units of durable equipment by similar or improved units is one of the main problems, upon which the success of industrial enterprise depends. Nevertheless, no unified presentation of its many aspects appears to have been published up to the present. The principal writers refer to replacement merely incidentally, when discussing the subject of depreciation. From the theoretical point of view, such an approach really amounts to putting the cart before the horse.' Replacement is the basic problem, because it actually affects the composition and productivity of a plant. Calculations of depreciation are mere figures entered into books, the significance of which depends entirely on the use to which they are put. The concept of depreciation does not enter into the theory of capital value at all. In practice, on the other hand, differences in depreciation methods do to some extent influence the judgment of traders in the negotiable symbols of composite capital goods. This anomaly is due partly to defective accounting methods. A study of the replacement problem by itself must precede attempts to correct the situation. The value aspect of replacement or arises from the familiar phenomenon that many types of machines outlive their usefulness. The income stream derived from their operation gradually declines, until a more attractive alternative becomes available. The theory that the economic life of a machine is a period which makes the unit cost (plus interest) of the product a minimum, appears to have been originated by Professor J. S. Taylor.2 His algebraic presentation was simplified and refined by Professor Harold Hotelling,3 who employs continuous functions for the purpose. The basic formula given by the latter writer is:4

Abstract The article focuses on cost accounting in Germany. The author has presented the defined principles and objectives of German accounting, together with a uniform accounting plan in one of his articles. The Board of Industrial Economy has continued its work with regard to improvement in all fields of accounting. The purpose of these "General Principles of Cost Accounting" is to assist in achieving increased economy in production, for it is believed that a cost-accounting system based upon these principles will lead to a correct ascertainment and clear conception of all costs involved. Such a system will promote cost supervision, estimate, price determination and cost comparison within the plant or within the industrial group. All these steps will contribute to the final goal: increased economy and greater performance in business and industry. The performance of a business is definitely determined by its costs. The influence, which a profound knowledge of costs will have upon the formation of prices within an enterprise must further-more result in cleaner conduct among competitors.

Reviews the book "Business Arithmetic for College Students," by William S. Schlauch.

Abstract Accountants are just beginning to develop a consciousness of some of the problems of obsolescence that are present in connection with the use of fixed assets. This article is limited to consideration of only one question, which arises, that of separate accrual. Depreciation in this article is used to describe only the physical factors, which contribute to the retirement of fixed assets from use. The term obsolescence describes the functional or intangible factors that cause the permanent abandonment of fixed assets. Fixed assets are considered to be obsolete if they go out of use before the end of their potential physical life, because of changing economic or technical conditions. Depreciation, then, implies the gradual expiration or consumption of productive power, while obsolescence implies the abandonment of unused potential productive power. The difficulties of separating physical depreciation and obsolescence, the two dissimilar things may be too great to attempt at the present time, but accountants should recognize that they are different in nature, and that considerable progress in predicting obsolescence has been made in the past and may be expected to be made in the future.

I. The problem, 539. — II. The utilization of productive resources in a static equilibrium economy: (1) The formal theory of prices and price-margins in an equilibrium economy, 542; (2) Static equilibrium and continuity, 545; (3) The meaning of “full utilization” in a static equilibrium economy, 547. — III. The determinants of margins in a static equilibrium economy: (1) The limiting power of the strategic factor, 550; (2) Real costs as determinant of margins of utilization, 552; (3) Institutional limitations on the utilization of resources, 554; (4) The monetary supply as the limiting factor, 556. — IV. The expansion of production without increase of the supply of money: (1) Through saving of monetary income, 558; (2) Through technological improvement, 560. — V. Expansion of production with increase in the monetary supply, 561. — Overcoming inflated price-resistances, 562. — Effect of reduction in the interest rate, 564. — Conclusion, 564.

I. The problem, 455. — II. Sample and data: 149 out of 200 largest (1929) non-financial firms for which data are available, 457; basis for selecting executives for study, 457; sources and quality of data, 458. — III. Stockholdings: value and dividends, 460. — IV. Executive compensation, 465. — V. The various incentives compared, 466. — VI. Summary and conclusion, 470.