The theory of industrial location, 254.— Preliminary deductions in the case of the shoe industry, 255.— History of the distribution of the industry. Period 1630–1760: non-localized hand work, 257.— Period 1760–1860: localization of the hand industry, relation of railroads to factors of transportation and labor cost, 259.— Period 1860–1900: effect of mechanization, shifts in the tanning industry, changes in financing; equalization of regional advantages, 264.— Period since 1900: rapid style changes, foreign markets, labor organization, 269.— Outlook for the future, 273.— The theory in the light of experience in the shoe industry, 274.

I. Marginal productivity ignores important forms of investment, 627; and is inaccurate even for "productive" investment, 628.— The "law" of diminishing productivity vague and subject to serious exceptions, 630.— Marshall's doctrine of marginal net product does not explain general wages, 631; but throws light on the process of equilibrium-seeking, 632.— The application of labor to land, 633.— II. "Demand for labor" a misleading expression, 634.— Factors which determine it, 635.— The "method of increments" not involved, 638.— In what sense wages are residual, 639.— III. Practical implications: for changes in working hours, 640; consumer borrowing, 641; raising of wages above equilibrium rate, 642; elasticity of demand for labor, 643.

This article presents information on the financial and operating relationships. In order, to compare the statements of the average public utility with those of an industrial concern one should consider – Ratio of net worth to debt, number of times bond interest earned, Operating ratio, % of fluctuation in gross earnings, % of fluctuation of net income, ratio of net worth to fixed assets. The article also contains some questions related to financial relationships that help the student's to grasp and point out differences in different types of industry.

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.

The last two decades have witnessed an enormous increase in the use of the holding company as a device for financing and welding together hitherto independent units of business operation, as of March 1933. In no field of business endeavor has the growth of holding companies been so pronounced as in the field of public utilities. The motives prompting its use have often been of questionable character. Financial history is replete with instances in which the purpose apparently has been to achieve individual objectives at the expense of the balance of society. Even a superficial study of the economic losses resulting from holding company collapses raises a serious question as to their social desirability. Some students of business insist that the holding company is a by-product of a period of stable price levels when increased outputs with declining costs were the order of the day. They insist that during trying times disintegration will take place and that the successful business of the immediate future will be the small business unit which has shaken itself free from expenses entailed by heavy overheads and idle plants found in the larger organizations.

The article illustrates through an example in a coaching class the fallacies of assumptions in problem solving demonstrations by teachers of accounting. An experience of many years as an accounting teacher plus an experience of some years as an examiner for the licensing of accountants has convinced the author that the fallacy of assumption is one of the things responsible for the heavy toll exacted of the candidates who attempt professional examinations. Apparently, assumption is believed to provide an easy, or lazy person's way out of what seems to be at least at first glance a perplexing situation. A trial balance given in a problem does not balance. This fact alone affords no reason for the student or candidate assuming that the difference must be adjusted through some account like notes or accounts payable, or through some other account as far fetched. Perhaps a careful study of the situation will show that the requirements may be met almost completely by ignoring the discrepancy.

The French Code de Commerce, a law promulgated in 1807, contains a striking instance of an official changing of usage in a matter of business terminology. In making legislative recognition of the business corporation, the framers of the code applied to the corporation, as its official designation, the term "société anonyme," which means anonymous society. In so doing they appropriated a term which hitherto had been employed both by laymen and by members of the legal profession to designate various types of informal associations of business men, not one of which at all resembled a corporation. These forms of association were, in fact, characterized by features which are diametrically the opposite of those which characterize the business corporation. Yet the change in the official meaning of the term, société anonyme was effected, and the new meaning has apparently entered into common usage on a permanent basis. One of the earliest forms of the société anonyme appeared as the association of persons who participated secretly in the farming of taxes. The tax farmer for a town, city or other district associated with himself several capitalists to participate in the profits or losses of the undertaking.

The article focuses on importance of clarity in balance sheet display. One of the most important pieces of work which a public accountant is called upon to perform is the preparation and analysis of balance sheets and financial conditions. By no means is this the mere listing of certain assets and liabilities. It resolves itself into a matter of judgment in arrangement and valuation, and judgment is often a matter of one's experience in judging and noting the results in previous situations. The matter of prime importance to consider is the type of person who will be called upon to read the balance sheet. In a recent examination, it was discovered that the management had been giving itself some systematize, but serious-minded kidding by working on the assumption that installment accounts receivable were not subject to the need forbad debt reserves. This is a matter of problem of valuation. According to the author, balance sheets must be prepared for the benefit of the reader and must be grouped to give him the benefit of the most accurate information available, in the most readable form. It should give him all of the facts and the facts should be stated clearly.

Reviews the book "Want and Plenty," by Jacob H. Hollander.

Reviews the book "A Survey of a Retail Trade Area," by Fred M. Jones.