IN a recent paper, Domestic Production and Foreign Trade; the American Capital Position Re-Examined, 1 Professor Wassily Leontief utilizes materials drawn from his wellknown input-output studies to fill one of the more conspicuously empty economic boxes, namely: the actual structural basis of international trade. The general theoretical principle of comparative costs, long with us, indicates the advantage to be gained from a suitable allocation of productive resources in each of the countries engaged in trade. But we have had so little systematic knowledge of the productive structure of our own or of any other national economy that the application of such general theoretical principles to the analysis and explanation of actual foreign trade relationships has been practically out of the question. For practical conclusions, we have been forced back on common sense. Thus:

I. THE STATISTICAL RECORD IT is the purpose of this article to present the quantitative evidence relative to total investment in new securities during the past twentysix years, to point out some of the important changes that have occurred, and to attempt an explanation of these changes. So far as new flotations cover the field, they provide a rough indicator of the volume of industrial investment. Attention will be focused on the broad changes in security issues as a whole, especially on the contrast furnished by the pre-war and the post-war decades. Records of corporate issues go back to I907. For the years through I9I8, the monthly listing provided in the Journal of Commerce has been used, and for the years since I9I9, the data presented each month in the Commercial and Financial Chronicle. The Chronicle series covers these issues rather thoroughly, and probably represents as complete an enumeration of publicly floated issues as is possible.' As for the Joutrnal of Commerce figures, the editor does not lay claim to complete statistical accuracy in their collection, but regards them as a large sample, prepared upon a basis which was as nearly comparable as possible. Neither series gives a complete picture of the facts; but both provide a satisfactory approximation thereto. The published figures cover flotations of securities issued by corporations, both foreign and domestic, and sold on the American investment market. Excluding refunding issues they thus cover, with minor exceptions, the capital raised by industry through the security market. Security issues of investment trusts, trading and holding companies are shown separately, as such issues represent duplication rather than any net increase in capital secured. That this increment of capital is not the same thing as total new investment must obviously be admitted, for it fails to include investment in government issues, private investment in partnerships, individual enterprises, houses and other durable consumers' goods, and that large element of capital growth Drovided through corDorate saving out of Drofits. There is also at least one element of overstatement involved, in that the figures include a small proportion of issues used to acquire plant already in existence, as well as the amount of underwriters' commissions. In spite of these flaws, however, it is believed that the series furnishes a reasonably serviceable index of investment in industry. The quarterly figures are presented in Chart i (p. I97) and Table 2 (p. I99).