IT is generally believed that foreign capital inflows play a strategic role in promoting progress toward self-sustained growth in developing countries. Yet the relationship between the two has received little rigorous analysis in the voluminous literature on economic development. The Foreign Assistance Act of 1961 enunciated the criterion of as a condition for United States foreign aid,' but the appealing self-help shibboleth has not been given analytical content. However, in a pioneering effort, Professor Rosenstein-Rodan recently raised some of the important analytical questions associated with the self-help notion:

Reviews the book "Fundamentals of Electronic Data Processing," by Kenneth L. Inman.

Reviews the book "Reliance on Other Auditors," by T.A.M. Hutchison.

Reviews the book "Management Accounting: Text and Cases," 3rd ed., by Robert N. Anthony.

Abstract At the start of this project, the authors were motivated by one primary objective--to determine what effect, if any, the gradual rise in the general price-level of the U. S. economy during the decade 1953-1962 would have on the financial statements of a large manufacturing company--Cummins Engine Company. If the results had disclosed only immaterial variations, the study would still be considered of value, for it might then support an argument against purchasing power accounting. On the other hand, if the variations followed the same pattern of results reported by the American Accounting Association study, advocates of price-level accounting would have increased support for their case. The results of this study actually showed a moderate change in the financial position and operating results of the subject Company. Three reasons for such results may be cited: 1. The purchasing power of the dollar has experienced a steady, slight downward trend during the 10 year period of the study. This, of course, is the primary reason for the moderate results. 2. Cummins Engine Company has invested a substantial amount of capital in new machinery in recent years. Therefore, asset costs and the associated provision for depreciation more nearly approach December, 1962, dollars than might be found in a majority of companies investing heavily in fixed assets. 3. Because of its size, reputation, and strong financial position, Cummins has been able to carry large amounts of fixed debt, and thus has been able to create a substantial purchasing power gain on monetary liabilities. This hedge against the losses generally incurred on net current monetary items during periods of rising prices might not be elected or available to other companies. Throughout the period investigated, the rising price-level has shown its effect. Net income is decreased almost $4 million from what would have been expected solely from changes in the price level.