DATA relating to the size distribution of income in the United States, fragmentary as they are,2 support the thesis that income is more equally distributed today than it was during the prewar period. Although families at the very lowest income levels do not appear to have gained appreciably in the redistribution of income, there can be little doubt that the middle-income families have gained at the expense of the wealthiest families. The share of the income received by the top fifth of the nation's families and single persons decreased by I2 per cent between I935-36 and I948, whereas the share received by the middle three-fifths increased by I4 per cent during the same period (Table i). What factors account for this

Abstract This article deals with conventional approach in the preparation of financial statements. The adoption of last in first out (LIFO) inventory methods and is now widely urging that the cost of fixed assets be abandoned as the basis for the computation of the allowable depreciation charge. Both of these innovations have been defended with the assertion that the conventional methods show "dollar" income, but that such income is misleading, and that the adoption of some other method will tend to show "economic" or "true" income. It might be well to inquire into the trend as now evidenced and into the desirability of that trend. Thus until all business transactions are by some means converted from the basis of monetary units to purchasing-power or some other method of reporting "economic income," it seems that accounting statements will best serve their purpose by adhering to the usual and accepted standard of measure, the dollar. This would involve the repudiation of the LIFO inventory method in order that all accounts would then reflect monetary income on an objective basis.

Reviews the book "Economics of National Security."