414

Balance sheets, to show accumulation
 of surplus, 69; effect on, of
increase or decrease in value
of assets, 73-75; interdependence
 of, of different firms or
companies, 87-92; to show
methods of balances and couples,
91; to show distinction between
accounting of real and of fictitious
 persons, 93-94 ; prospects
of businesses shown by, 264.
Bank deposit rights, wealth underlying,
 27.
Bank notes, wealth underlying, 27;
nature of property right in, 32,
280; legal regulations governing,
 to avoid risk, 289.
Bank reserves, risk-meeting function
of, 290.
Bankruptcies,
87-88.
Bankruptcy, state of, 82; laws relating
 to, 83; bondholders’ and
stockholders’ position in case of,
83-86; settlement of, 86; relation
 of general crisis to individual,
 297.
Banks, national : liability of stockholders
 in, 83; investments of,
in government bonds, 280-281.
Basis of a security, definition of, 329.
Bemis, Edward W., cited, 39.
Bequests not counted as income, 109.
Bernoulli’s Theorem, 267, 275.
Bills of exchange, 204-205.
Bohm-Bawerk, quoted on attempts
to define “capital,” 53-54; concept
 of capital of, 56; cited,
60 n.?; statement that interest
is not an element in cost of
production, 173-174; cited in
connection with productivity
theory, 187; concept of interest
of, 195, 247; on interactions as
preparatory to enjoyable services,
 318.
Bondholders, nature of rights of,
31-32, 85; distinction between
stockholders and, 85, 288-289;
position of, in reorganization
after bankruptcy, 85-86; relation
 of, to risks of enterprises, 289.
Bonds, wealth underlying property
in, 25, 26; nature of rights of
holder, 31-32, 85; capital-value

communication of,

INDEX

  

earned income of, 231-236;
application of depreciation fund
to, 242-243; as investments,
277-281; formule for computing
 value of, 378-382; formula
for mathematical value of risky,
403-406.
Bond value books, 213-215.
Bougand, quoted, 168 n.
Branford, Victor, cited, 63 n.
Building and loan association, income
 accounts of, 127-128.
Bullock, C. J., definition of income
by, 349-350.

C

Call, option known as a, 298.
Campbell, A. C, cited on moral
effects of insurance, 295 n.
Canard, human beings counted as
wealth by, 5 n.%
Cannan, Edwin, definition of wealth
by, 3; cited on definition of
capital, 56, n.!; cited in connection
 with wage fund theory, 59;
use of term “‘capital’’ by, 60
and n.7; on concept of income,
102 n.?; savings regarded as
income by, 108; concept of
income of, 116; on distinction
between rent and interest, 186
n.2; confusion of earned with
realized income by, 247-248.
Capital, concept of, as stock of wealth
at an instant of time, 51-52,
324; varying views of, 53-57;
relation of labor to, 55; viewed
as productive, 56; fancied distinction
 between land and, 56 n.* ;
errors resulting from narrow
interpretations of, 57-58; relation
 of author’s definition to
established usage, 60-61; dictionary
 definitions of, 61-62;
business men’s view of, 63-65;
two senses of, called capitalgoods
 and capital-value, 66-67 ;
relation of surplus or undivided
profits to, 68-70; original and
net, 69, 330; bookkeeper’s vs.
market’s estimate of, 70-72;
four separate meanings of term
applied to person or firm, 72;
classification of, 72; nominal

 

of, 211-217, 382; realized vs.

and paid-up, 72, 330; payment