AMONG the behavior equations which enter ,I -into any economic model, the consumption function and the demand for money functions are of key importance. Originally, the consumption function was said to have a negative second derivative. This claim was based on a fundamental psychological law, upon which we are entitled to depend with great confidence . . . from the detailed facts of experience. . . ) 1 The detailed facts referred to by Keynes were all based on cross-sectional studies of the income-consumption relationship. Only much later, more extensive analyses of time series showing the relationship between consumption and income indicated that, over time, the second derivative of the consumption function is zero or close to it. This forced a revision of economic analysis employing the consumption function.2 In the case of the money market the situation is reversed. We have innumerable studies analyzing the demand for money by the use of time series; we have but one study relating the demand for money to its determinants on the basis of cross-sectional data. Yet, if the history of the consumption function is any guide, our understanding of the demand for money is likely to rest on shaky foundations as long as it is based on the analysis of only one type of data. In this paper I explore the determinants of the demand for money by the use of crosssectional data. Except for a minor digression dealing with the British demand for money as reflected in cross-sectional data, I deal exclusively with the demand for money by the population of Czechoslovakia in the fall of 1945. The country and the period have been selected, not because either would be of independent intrinsic interest to the profession, but because of the unique nature of the data. It is hoped that my exploration of these data will yield valuable insights into the determinants of the demand for money which can then be profitably employed in the utilization and interpretation of other empirical studies into the nature of the demand for money.

AST spring and summer we witnessed a vigorous exchange of views between the present Council of Economic Advisors to the President and the former chairman of that body, Professor Arthur F. Burns.' It was a lesson in humility to note that the key issue of this policy-oriented discussion was not some highly sophisticated model but the basic problem of determining the secular growth curve of the United States economy and of estimating the size of the output gap.

Abstract Credit balance as a liability in the balance sheet has recently become a question of greater interest. The following discussion is concerned primarily with future expenditures that are related to operations. One characteristic of liabilities to be emphasized is their relationship with assets already recognized. For proper reporting of financial position, liabilities must be matched properly with assets recognized. In many ways this matching on the balance sheet runs parallel to the matching of expenses with revenues in the income statement. Secondly, where installment sales are recognized as revenue when made, but become taxable revenue only as collected, the full amount of assets to be received from given installment sales is recognized at the time of the sales. Since the future income taxes to be paid at the time of collection are directly related to and payable out of assets already recognized, there is no question but what the deferred income tax on such receivables is a liability in the broad sense of the term.

Abstract Readers of current accounting literature may have noticed of late the reappearance of a malady which seems to spring up every so often. Past experience indicates that it is contagious and may develop into an epidemic. For want of a better name it will be called "Value-ITIS" because it causes its victims to become enthralled with the importance of objective proof of subjective values. For example, it causes an investor to pay an unwarranted price for a share of stock because others with the same disease have purchased enough of the same stock to force the market price up. In the accountant, and particularly the academic theorist, this condition seems to be brought on by overexposure, malnutrition and neglect, exposure to economic theory, malnutrition from a diet lacking in economic realities, and neglect of the lessons taught by history. It seems to be most virulent among the relatively young, but will also attack the oldsters who have lost the immunity they developed in the early 1930's.

Sir the project astonishes me.... We are again to see the drama which already in the course of the present century has passed before us, and closed in ruin. If the project shall be successful, we are again to see those paper missiles shooting in every direction through the country; a derangement of all value; a depreciated circulation; a suspension of specie payments; then a further extension of the same detestable paper; a still greater depreciation, with failures of traders and failures of banks in its train; to arrive at last at the same point from whence we departed in 1817.