THIS paper summarizes the results of an exploratory study of wage levels in relation to the foreign trade of the United States.' Attention is concentrated on manufacturing industries, although mining and agriculture are also included. The broad conclusion is that export industries tend to pay higher wages than importcompeting industries (i.e., the industrial classifications within which the largest volume of competitive imports fall). Within the manufacturing sector, the difference is associated with the higher wages paid by durable goods industries as compared with nondurable goods industries; that is, a large part of the difference is connected with the fact that the proportion of durable goods industries is higher among the leading export industries than among the leading import-competing industries. Even greater wage differences are found when the leading export industries are compared with industries producing commodities most vulnerable to further import competition or with industries producing goods that are competitive with highly protected imports. Relatively higher wages have characterized exported manufactures for over half a century. The same tendency for average wages in the export group to exceed those of the import-competing group is found in the mining and agricultural sectors, but for agriculture the analysis of wages in relation to foreign trade is much more tentative. The reconciliation of foreign trade statistics with data on wages, employment, and production for the years I947 and I952 had been accomplished by the Bureau of Labor Statistics in connection with its input-output studies.2 Average hourly earnings, which are used as the measure of wages,3 are either calculated from Census data or taken from B.L.S. estimates. For agriculture, however, there was no source of hourly earnings data, and, as is explained in the section on agriculture, the author has employed a makeshift method based on data of the Bureau of Agricultural Economics.

The primary purpose of this study is to develop a model based on linear programming and input-output techniques which will assist in the formulation of development programs for underdeveloped areas. I. The elements of the development problem and the data available are considered from the point of view of selecting the most significant structural relationships for a formal model. II. A nonlinear programming model is presented which is designed particularly to analyze the choice between self-sufficiency and international specialization and the resulting investment patterns under various types of restrictions. III. A method of solving the programming problem by a simple iterative procedure is suggested. It takes advantage of the structure of the matrix of activities and the limited number of primary factors involved. Convergence of the solution is demonstrated. IV. A development model for Southern Italy is constructed for purposes of illustration, based on studies of consumption, investment, and input structure and assumptions as to the remaining parameters. A solution for a hypothetical development program is given, showing the method of solution and the effect of variation in several of the parameters. V. The implications of the results for the solution of a more general model are considered. The relationship of the interindustry model to sector analyses and the

Reviews the book "Canadian Income Tax Appeal Board Practice," by R.S.W. Fordham.

Reviews the book "Report Writing for Accountants," by Jennie N. Palen.

Reviews the book "Policy Formulation and Administration," by George Albert Smith and C. Roland Christensen.

Reviews the book "Accounting Systems: Instalations & Procedures," 2nd ed., by John J.W. Neuner and Ulrich J. Neuner.

This article focuses on new internal revenue act and the prosperity of the economy of United States. The devices to stimulate enterprise, employment and prosperity, five features are set forth. They are: the extension to two years of the carry-back for net business losses, the modifications in the taxation of dividend income received by individuals, the provisions for accelerated depreciation, provisions for deduction of research and development expenditures and the relaxation of provisions relating to the taxation of undistributed earnings of corporations. The author suggests that perhaps this new code should be looked upon as the first step, or the first few steps, toward a tax system that gives more attention to economic incentives. These features offer some promise of helping. It would be a mistake to regard them as anything more than helpers. They are only a part of an intricate tax system. The system itself is not an all-purpose economic tool, it is only one of several regulators in the economy.