This article studies the implications of complementarity on the problem of the long-term forecast. The conditions for maintaining long-run equilibrium between factor demand and factor supply are derived and illustrated with the help of a three-factor model, so as to bring out the particular problem of foreign trade. Equilibrium for all of the three factors appears possible only if the parameters of the system satisfy a set of specific relations or certain policy variables are introduced. Finally the complete system as used by the Central Planning Bureau is presented, together with the numerical values chosen for the parameters. 1. SOME IMPLICATIONS OF COMPLEMENTARITY 1.1. FOR THE PURPOSE of long-range projections a choice must be made as to the nature of the production function. Two extreme assumptions are possible, viz., perfect substitutability and strict complementarity. Most long-range projections published hitherto are based explicitly or implicitly upon the hypothesis of complementarity. Some of the implications of this hypothesis will be discussed in the first and second sections of this paper. In the third a model based on complementarity as has been used by the Central Planning Bureau for projections covering the period 1950-1970 will be presented. 1.2. The type of model to be considered will cover a period of only one to three decades. It is, moreover, not concerned with the cyclical variations of the variables nor with problems of a really secular character such as those studied by Haavelmo.' Furthermore, the implications of disequilibria due to a disproportionate development as between sectors of the economy will be ignored.2 The main problem to be dealt with is therefore the question of equilibrium for the macro variables in the medium-long run. As compared with economic statics the equilibrium concept should obviously be widened so as to allow for the dynamics of long-run development. In the following equilibrium will be defined as a development that is compatible with the equality of demand and supply for each of the factors of production. Neither stable values of the endogenous variables nor constancy of the policy parameters is required. Defined in this way, long-term equilibrium does not necessarily imply optimal development. Unless only one development-equilibrium is possible, restrictions other than that

This article attempts, by use of the published data, to summarize and analyze the United States Steel Corp.'s reporting of goodwill and associated elements during these eventful years. In addition to pointing out an interesting chapter in American corporate reporting, the summary perhaps directs attention to the importance of sound valuations for contributed resources and the desirability of systematic accounting for goodwill. The United States Steel Corp., as is well known, was organized by a syndicate headed by J. Pierpont Morgan. In consolidating a number of existing companies, the syndicate issued none of the bonds or shares of the new corporation for cash alone. Although the preferred and common shares were issued in amounts which resulted in a large quantity of stock discount, the legal status of the shares was materially improved by withholding from the financial statements any evidence of this discount. Apparently for this reason the beginning balance of the "Property Account" was determined residually after the assignment of par value to the securities issued and appropriate values to assets other than those included in the property account.

To many accountants depreciation as we know it today represents an idea which is a generally accepted accounting principle. Business has not always had such respect for depreciation accounting. This article has as its goal a highlight review of some of the interesting changes, which have occurred in the development of this accounting concept. The idea of depreciation was not clearly established by the latter part of the nineteenth century. In 1876, the United States Supreme Court stated, in referring to the determination of the profit of a merchant, that it was unusual to take into account depreciation on a building in which a merchant maintained his business. In 1878, the United States Supreme Court criticized the practice of establishing depreciation reserves through periodic charges to operating expense, and held that only the actual expenses of renewals could be charged to operating expense. The idea as expressed by the Supreme Court was apparently the common thinking of business leaders, for the Third National Convention of Railroad Commissioners in 1879 adopted a report on uniform accounts which included the following instruction no expenditure is chargeable for an actual increase though unless it is made on old work in such a way as to clearly increase the value of the property over and above the cost of renewing the original structures. Corollary to this idea was the thought that if property were properly maintained there would be no depreciation.

Reviews the book "Financial and Administrative Accounting," by C. Aubrey Smith and Jim G. Ashburne.