Mobility of capital in traditional economic theory, 496. — Much capital consists of goods having a relatively short life and of staple inventories, 498. — Mobility of capital also depends upon degree of specialization, 500. — A large proportion of fixed capital only superficially specialized, 501. — Actual mobility facilitated by the diffusing of capital and manufacturing burdens, 503. — This practice reduces the deterrent influence of risk, 504. — Early growth of the automobile industry largely financed by indirect diversion of capital, 504. — The rôle of profits in guiding investment not limited to the direct attraction of capital, 506. — Mobility facilitated by presence of idle utilities in existing equipment and by technological advances, 507. — Diversion of the products and services an important factor, 508.

Development of large-scale industry, 465. — Support of the idea of economies of large-scale production, 465. — Results of statistical tests of relation of size to efficiency, 467. — Scope and method of the present study, 468. — Limitations of the method used, 474. — Smallest companies show highest earnings, 476. — In some industrial fields, earnings decrease as investment is increased, 476. — Final comparison of earnings of large and small concerns, 478. — Conclusions, 478.

Journal Article A Rejoiner Get access Alvin H. Hansen Alvin H. Hansen University of Minnesota Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 46, Issue 3, May 1932, Pages 562–565, https://doi.org/10.2307/1883402 Published: 01 May 1932

Journal Article Velocity Concepts: A Reply Get access Raymond H. Lounsbury Raymond H. Lounsbury University of Illinois Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 46, Issue 3, May 1932, Pages 569–574, https://doi.org/10.2307/1883404 Published: 01 May 1932

Journal Article Surányi-Unger's Economics in the Twentieth Century Get access O. H. Taylor O. H. Taylor Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 46, Issue 2, February 1932, Pages 407–409, https://doi.org/10.2307/1883239 Published: 01 February 1932

Reviews the book "Wage--Payment Plans That Reduced Production Costs," by Hugo Diemer.

A controlling account is an account which, contained in the general or some other superior ledger and posted usually in total, contains, in summary, information which is found concurrently, in detail, in ledger records of a subsidiary character. The chief functions of the controlling account are three, of which the first far outweighs the others: it greatly facilitates the process of double-entry bookkeeping by shortening the general ledger trial balance and thus segregating the possible sources of error, it furnishes summary information in cases where detailed information either is not immediately available or is of no importance and it furnishes a basis for maintaining a check upon the activities of the bookkeepers entrusted with subsidiary ledgers. The controlling account controls its subsidiaries simply in this sense: once its balance is established, through a trial balance of the ledger in which it is contained, a very strong presumption is created that the total of the subsidiaries, if they have been properly kept, must conform to its balance. Ultimately, of course, the control runs the other way. No entry in the control is justified except through a similar entry in a subsidiary account.

Reviews the book "Introduction To Principles of Accounting," by H.A. Finney.

Modern business methods and requirements resulting from the complex and diversified properties comprising the fixed assets of large corporations, have developed appraisal organizations to serve in broader geographical areas, for larger units and groups of properties, with greater responsibility, authority and public recognition, and to supplement the service of the individual specialist with the broader experience, coordinated effort, and uniform principles, possible from large coöperative organizations. The investment in the properties may be measured on the basis of the original investment representing the actual expenditures made at the time properties were acquired, constructed or equipped, an average investment representing what the property would have cost at prices at the given time or over an average period of years that may be estimated for the purpose of computation and the normal investment represented by the cost of reproduction as of a specified date. In order to have a basis for uniform measurements, there must be a fixed standard. This fixed standard is the cost of reproduction new. The cost of reproduction new represents a determinable fact that can be applied consistently and effectively to all properties.

Reviews the book "Interpretations. Walter Lippmann," edited by Allan Nevins.