None
INDEX Acceptance bills, 665 Acceptance credits, 652 Acceptances, 545, 620, 647 advantages of, 546 bankers', defined, 652 bankers' domestic, 645 as collateral for Federal Re- serve notes, 640 as credit instruments, 539 drawn to furnish dollar ex- change, 645 in open-market operations, 657 trade, defined, 647 Accommodation paper, 620 Account, bookkeeping, how created, 689 capital, 736 donation, 730 equipment, 725 findings, 759 general ledger, 788 machinery, 706, 725 merchandise, 690 nominal, 690, 699 revenue, 699 trading, 692 Accounting (chapters), 684, 754 defined, 6, 684 department, 214; chart of, 215 depreciation allowances in, 705 history of, 686 principles, 699 system, checks on, 695 Accounting or statistical unit, 774 Accounting system, defined, 695 Accounts, book, 539, 540 books of, 694 controlling, 696; defined, 697 I. C. C. classification of, loi "mixed," 691 payable, 698 payable, defined, 737 Accounts, real, 690, 699 renewed, 735 Accounts receivable, in financial statements, 732 relation to sales, 744 Action, psychology of, in advertis- ing, 410 in salesmanship, 447 Adams, Brook, "Theory of Social Revolutions," 56 Addressing, standards of output, 249 Adjustability of currency, 633 Administration, 7 Administrative charges, 779 Administrative expenses, defined, 749. 758 Advances to salesmen, shown in financial statements, 732 Advertising (chapter), 400 as a business force, 87 cost of, 422 distinguished from salesman- ship, 440 expenses in accounting, 735 financial, 156 package as medium of, 429 Advertising department, 214 Affiliated corporations, 753 Agencies, selling, 463 Agreements, creditors', 568 Agreements, syndicate, 153 Agricultural credit, 611 Agricultural paper, defined, 651 eligibility of, 644 Agricultural production as influ- ence in business changes, 579 Allocation of expenses, in cost ac- counting, 761 Amalgamated Clothing Workers, 314 Amalgamation, 116 American Academy, Annals, 347, 355, 357 795 796 INDEX American Association of Financial Statisticians, 114 American Bankers Association, 651 American Trade Acceptance Coun- cil, 647 Amortization of patent values, 729 Analysis of balance sheet, 741 Analysis, basis of scientific man- agement, 93 Analysis of business problems, 87, 90 Analysis of human elements in or- ganization, 217 Analysis of market, 433, 452 Analysis of records, 220 Annuity, present value of, 723 Anticipation of income, 703 Application for Federal Reserve notes, 640 Approach, in salesmanship, 443 Arbitrageur, methods of, 676 Arbitraging, 675 Arbitrary interest charges, in cost accounting, 764 Arbitration, board of, 314 Area theory, Babson's, 583 Argentina, standard coin of, 669 Argument and suggestion, 450 Assembling, step in promotion, 125 Asset account, in bookkeeping, 688 Asset, defined, 700, 702 Assets, current, 704; defined, 730 fixed, 704 Assets and liabilities, statement of, 716 Assets, intangible, 727 Assets, over-valuation of, 730 revaluation of, 738 service-life of, 707 valuation of, 704 wasting, 724 working and trading, 733 Association of Governmental Labor Officials of U. S. of the money market, 582 of production, 579 Barometrics of business, 16, 570, 573 Barter, 9 Base wage, 302, 308 Basic departments, 208 "Bearer" bonds, 542 "Beating the management," 294 Berlin, exchange on, 674 Bills of exchange, 516, 539 acceptance, 665 bankers', 664 Bills of exchange, classes of, 663, 664 clean, 664 commercial, 664 defined, 544, 646 documented, 665 domestic, 663 eligible for purchase tin .open market, 657 factors in prices of, 668 foreign, 664 payment, 665 specimen, 664 Bill of lading, 498, 516, 517 in foreign exchange, 665 Bill of materials, 766 Bills receivable, 731 Block and zone system, I. C. C, 501 "Blue sky" legislation, 156, 535 Blythe, Samuel G., 449 Bond circular, 153 Bond issues, financing through, 136 Bonded warehouse system, 531 Bonds, 539 choice of, 136 classes of, 541 debenture, 137, 139 discount on, 736 distinguished from notes, 147 estimating market for, 142, 144 income, interest on, 685 issued to finance construction, 736 long-term and short-term, 145 participating, 141 profit-sharing, 141 redeemable, 145 regulating income on, 141 sinking fund vs. serial, 150 U. S., bank notes issued against, 638 U. S., held bv national banks, 638 999-year, 145 Book accounts, 539 basis for loans, 619 compared with trade accept- ance, 649 Bookkeeping, double-entry, 687 equation, 696 798 INDEX Bookkeeping, double-entry, prin- ciples, 687 single-entry, 698 Books of account, columnarization of, 695 Books, closing, 690 opening, 696 of original entry, 693 Borrower, limitations upon, In re- discounts, 646 Borrowing funds, 134 when to borrow, 134 from investors, 136 Borrowing, methods of, 586 Bradstreet's, 562 Branch stores, 464 Branded products, in mail-order selling, 473 Brandeis, L. D, 284, 334 Bricklaying, improvements in, 327 British trade, extent of, 680 Brookmire statistical organization, 583 Biicher, Evolution of Industry, 10 Buildings, demolition of, 725 Buildings, valuation of, 725 Bureaus of credit Information, 565 Burr, Aaron, Bank of Manhattan, Business conditions, charts, 576, 577 cycles of, 155, 573 forecasting, 572, 579 Business, defined, 8 Business, the science of, i et seq. Business and political science, 54 Business problems, nature of, 21 Business training, scope of, 5 Business statistics, Copeland's, 582 Business transactions, analysis of, 687 Buyers, classes of, 434 how reached, 511 Buying labor by specifications, 288 Buying by specifications, 389 By-products, in cost accounting, 767 Cables, in foreign exchange, 667 sold against demand, 677 Cable rates, 668 Call loans, 617 influence on money movements, 618 Call money, rates of interest on, 617 Capital account, 736 Capital, defined, loo, 718 for extension, 132 sources of, 134 when to borrow, 134 working, 127 Capital expenditures, Government regulation of, 536 Capital expenses, calculation of, 123 Capital funds, defined, 130 Capital Issues Committee, 536 Capital items, incorrectly charged as expense, 685 Capital liabilities, 737 Capital ratings, by credit agencies, 562 Capital and revenue, differentiated, 699 Capital and surplus, 738 Capitalization of expenditures, 701 Capitalization, factor in carriers' rates, 494 Capitalization of prepaid expenses, 735. Capitalized charges, in accounting, 723. Card index, 264 Carriers, competition of, 493 Carriers' rates, basis of, 485 on different commodities, 495 Carriers' service, cost of, 49 Cartage, 734 Cash account, in bookkeeping, 688 Cash in banks, defined, 730 Cash in banks, in forecasting busi- ness conditions, 580 Cash books, 694 Cash discounts, in cost accounting, 760 on sales and purchases, 750 Cash discounts and trade accept- ances, 649 Cash resources, increase of, by Federal Reserve banks, 637 INDEX 799 Cash sales, on income statement, 744 Cashier's checks, 544 Catalogue houses, 473 Catalogue sizes, standard, 265 Causality, law of in forecasting, 579 Centralized control, 189, 419 Central filing system, 260 Central reserve cities, 637 Certificate, hypothecation, 665 voting trust, 116 Certificates of indebtedness, 648 of origin, 518 Certified checks, 544 Chain Store Grocers' Association of New York Cit}', 471 Chain stores, 467 opposition to, 472 Chamber of Commerce, U. S., 651 Channels of distribution, 461 Character, element of borrowing power, 589 Character, in salesmanship, 443 Charge accounts, 558 Charges against income, 750, 762 Chattel mortgages, in financial statements, 737 Checking accounts, 613 Checks, 539 cashier's, 544 certified, 544 clearing of, 625 defined, 543 in foreign exchange, 667 fraudulent, 543 Chemistry, aid to business, 18 Cherington, Paul T., 87 Church, A. H., 94 Circular letter of credit, specimen, .548 Circulation, of money and credit, 602 Circulation privilege, 638 Civil law, defined, 58 Classes of banks, 603 Classical school of economists, 50 Classification, carriers' rates, 496 of employees, 311 Classification, rules for, 102 Clayton Act, labor exempt under, 289 Clean bill of exchange, 517, 664 Clearing house, defined, 624 Clearings and collections, differen- tiated, 625 Climate, factor in selling plans, 434. "Closing the books," 690 Cole, William Morse, 760 Collateral bonds, 542 Collateral, for Federal Reserve notes, 640 Collateral loans, 620 Collateral on loans of Reserve banks to Member banks, 642 Collateral trust bonds, 752 Collateral trust notes, 148 specimen, 621 Collections, 566; factor in selling cost, 418 Collective bargaining, 279, 283, 314 Columnarization of books of ac- count, 695 Combinations, 419 industrial, no Commercial banks, 613 purpose of, 615 security holdings of, 617 Commercial drafts, 544, 545, 663 Commercial letters of credit, 539 Commercial loans, basis of, 615 purpose of, 604 Commercial paper, collateral for reserve notes, 640 discount, rediscount and pur- chase of, 642 Commercial paper, in Federal Re- serve system, 642 et seq. issue of reserve notes against, 634 Commission merchants, 463 Committee management, t>pe of organization, 198 Commodity' paper, 645 eligibility of, 651 special rate on, 652 Commodity prices, index number of, 578 Commodity' rates, 497 Common law and statute law, 59 8oo INDEX Common-law trust, 105 Common stock, 114 Commons, John R., 278 Comparative balance sheets, 741 Comparisons, in cost accounting. Competing articles, analysis of, 436 Competition among mail-order houses, 475 effect of, 120 factor in selling cost, 418 Competition system and enterpris- ers' profits, 572 Competitors, products of, 435 Composite barometers, 583 Compositions with creditors, 176 in bankruptcy, 568 Confidence, factors in, 442; chart, 444 Confidence, relation of, to credit, 589 Conlin, Income Tax Reports, 100 Consignment shipments in account- ing, 703 Consignments, not completed sales, 744 Consolidated income statements, 752 Consolidation, 116; through stock- holding, 117 promoter's problems of, 126 Construction charges, in cost ac- counting, 725, 781 Consumer pays, 413 Consumer, selling direct to, 461 Continuity of service, wage factor, 303 Contracted goods, valuation of, 735 Contracts, law of, 59 valuation of, in accounting, 703 valuation of, leasehold, 723 Control of business enterprise, 242 Control, centralized, 189 of industry, 320 of labor (chapter), 320 Controlled corporations, 117 Controlled organizations, invest- ments in, 733 Controlling accounts, 696 Convenience, sales appeal, 430 Conventions, of salesmen, 457 Conversion of U. S. bonds, 638 Convertible credit, 634 Co-operation of dealers, 472 Copeland, M. Distribution, retail, 479 Districts, Federal Reserve, 632 Dividend equalization reserve, 165 Dividends, authority for payment of, 164 expediency in payment of, 162 Federal Reserve Bank, 633 law of, 162 paid out of surplus or capital, 163, 164 postponed, 167 scrip, stock and property, 167 on treasury stock, 729 from wasting assets, 724 Dividends from capital, prohibited, 738. Division of labor, in line organ- ization, 193 Dock receipts, 518 Documentary bill, 516 Documentary drafts, 547 Documentation, 515 Dollar credits, 680 Dollar exchange, acceptances drawn to furnish, 645 Domestic bills of exchange, 653 Domestic letter of credit, specimen, 549 Donated stock, 161, 729 Donated surplus, 163 Donation reserve, 730 Door delivery, 480 Double-entry bookkeeping, 687 Double-name paper, 620 Drafts, 539 et seq. Duncan, Robert Kennedy, 19 Dun's Commercial Agency, 562 Du Pont Powder Company, 422 Duplication of delivery systems, Earning assets, of Federal Reserve banks, 637 INDEX 803 Earnings reinvested, 738 Earnings, employees', under pre- mium wage systems, 300 Eastman Kodak Co., suggestion system, 200 Econom?ts, 29 et seq. Economic science, history of, 50 Efficiency experts, 61, 207 Efficiency wages, 289 Eight-hour day, 283, 331 Elasticity of the currency, 633, 639 Elemental unit times, 231, 302 Elements of cost, 757 (chart), 758 Eligible paper, 638 collateral for reserve notes, 640 Eligibilin\ of commercial paper, 647, 658 Embargo on gold exports, 632, 672 Emerson efficiency wage, 297, 306 Emmet, Boris, 314, 317 Employees, selection of, 238, 338 securing co-operation of, 341 Employees' benefit associations, management of, 356 Employers' associations, 278 Employer's housing, 366 Employment, continuity of, 344 Employment department, 339 Endorser, contingent liability of, 73.1 Engineering Magazine, 701 Entrepreneur, profits of, 15 Enterpriser, defined, 184 Enterprises, forms of business (chapter), 104 Environment of business, 4 (chapter), 12 Environment of consumers, factor in selling plans, 434 Equation, bookkeeping, 687 Equation, wage, 303 Equipment account, 725 Erickson, Elmer E., on rush orders, 393 Escher, Franklin, 668, 677, 678 Ethics, 34 Ethics of business, 7 Evening Sun, New York, 444 Evolution of management, 218 Exact sciences, 24 Exchange (chapter), 660 Exchange, classes of dealers in, 676 factors in rates of, 670 on foreign countries, 673 on New York, 662 process of, 661 rates of, 669 speculations in, 676, 678 system of, 661 transactions involving use of, 660 Exclusive agencies, 463 Expansion, capital for, 132 allowances for, in plant loca- tion, 188 Expansion of currency, 633 "Expected loss," in credit insur- ance, 569 Expense, deferred charge to, 702, 735 Expense proportion, in cost ac- counting, 774 Expenses accrued, defined, 737 Expenses, distinguished from in- vestments, 700 general and administrative, 7+9. prepaid, in accounting, 735 Experimentation in business, 76 Experts, 61 Experts, aid to management, 221 Exports, nature of, effect of changed conditions on, 506 Express traffic, 500 Extension of credit, defined, 587 Factory cost, 761 Factory location, 366 Factory overhead, 758, 795 Facts, how collected, 63 Failures, business, 170 Fair distribution of profits, 189 Fair wage, 240, 274 False statements, in prospectus, 155 Farm Loan Act, provisions of, 6i3 Farm loan associations, 611 Fatigue, 327, 330 Federal Farm Loan Act, 6ii 8o4 INDEX Federal Income and Excess Prof- its taxes, nature of, 751 Federal land banks, 611 Federal Reserve Act, note issue under, 639 Federal Reserve banks, deposits of, 636; capitalization of, 632 earnings of, 633 gold coin and bullion dealings of, 656 open-market dealings of, 657 Treasury funds in, 636 Federal Reserve bank notes, 636 replacing silver certificates, 638 Federal Reserve Board, general policy of, 647 may require banks to redis- count for each other, 636 organization of, 632 rates fixed by, 642 suspension of reserve require- ments by, 641 "ioo9'r permit" granted by, 654 Federal Reserve City, 637 Federal Reserve notes, 638 application for, 640 authorization for issue, 639 gold security for, 635 issued against commercial pa- per, 634 issued against gold, 635 redeemable in gold, 641 redemption of, 634 reserves held against, 636 volume of, 638 Federal Reserve system, 631 objects of, 633 operation of, 636 organization of, 632 Federal Trade Commission, 756 Fifteen-day loans, reserve banks to member banks, 642 Filing, 259 classification before, 261 systems, 262 Finance bills, 667 defined, 679 Financial advertising, 156 Financial department, 208 Financial risk, defined, 143 Financial statements (chapter), 714 in credit extensions, 556 laws requiring, 715 protection against bad-debt losses, 715 required of corporations, list- ing securities on stock ex- change, 715 Financing (chapters), 119, 159, 170 chart, distribution of funds, 119 defined, 6 through bond issues, 136 Findings account, 759 Finished goods, valuation of, 734 Fiscal period, in bookkeeping, 690 Fixed assets, defined, 722 in accounting, 704 in balance sheet, 719 Fixed charges, in wage equation, 304 Fixed investments, paper drawn for ineligible, 644 Fixed liabilities, 737 Fixed machine-rate, 773, 776 Fixed-percentage method, in de- preciation calculations, 708 Fixed and variable costs, 509 Fixtures installed by tenant, 723 Flagg, Sir Stanley G., Jr., on pack- ing- 514 Fleisher, Alexander, on mainte- nance work, 354, 371 Floor space, office, 248 Follow-up letters. "Principles of Sociology," 40 Gilbreth, F. B., 327 Gilson, Mary B., 350 Glycogen, in fatigue studies, 327 Going-concern value, 99, 127 Gold, accumulation of, by Federal Reserve banks, 640 the basic money, 641 coin and bullion, dealings in, by reserve banks, 656 cost of shipment and rates of exchange, 670 disappearance from circula- tion, 641 movements in foreign ex- change, 675 reserve notes issued against, 640 Gold points, 670, 675 Gold redemption fund, 637 Gold-standard countries, 680 Goods, valuation of, 734; in proc- ess of manufacture, 740 Good-will, 127 in accounting, 727 defined, 99 source of, 433 valuation of, 727 8o6 INDEX Government credit, 585 Government as promoter of busi- ness, 57 Government and social activities, Governmental control of business, 420 Gray, John H., 81 Greenbacks, amount of outstand- ing, 639 history of, 639 Grieves, W. A., on shorter work- day, 336 Gross income, 744 estimating, 122 Gross profit on sales, on cost, 748 Gross sales, 744 Group insurance, 357 Group specialization, in organiza- tion, 196 Guaranties, credit, 569 Guaranty Trust Company, organ- ization chart, 605 H Habit, factor in observation, 67 Habits of buying public, factor in sales plans, 435 Hague Rules governing foreign trade, 516 Halsey wage system, 297 Harriman, E. H., Control of North- ern Pacific, 64 Harter Act of 1893, 516 Hatfield, H. R., 706 Haul, length of, as factor in rates, 494 Hearings, on Taylor system, 301 Heat, item of, in cost accounting, 780 Hepburn Act, 501 High cost of selling, 414 High-speed steel, 230 Highway freight, 480 Hill, James J., 64 Hiring rate, 312 Hirings, avoidable and unavoid- able, 347, 350 Hoarding, 672 Hobson, J. A., 24, 43 Holding Company, 118, 752 Hollingsworth, H. L., 77 Hollingsworth and Poffenberger, 66, 67 Hollingsworth and PoflFenberger, on fatigue, 329 Housing, 282 Human element in business, 73 Humidity, in office ventilation, 252 Hunger, Edwin A., 200 Hypotenuse oblong, 265 Hypothecation certificate, la for- eign exchange, 665 I / Promessi Sposi, 430 Idle cars, in business barometrics, 579. Idle time, 757, 782 charged to factory, 783 charged to sales department, 783 Ihlder, John, of Phila. Housing Com., 370 Illusion, cause of mal-observation, ^5 . .. Imagination in business, 30 Imitations, 427 Impartial management, 243 Imports and exports, in foreign exchange, 662 Imports, nature of, 507 Improvements on leased property, 723. Incentive wages, 277 Income, anticipation of, 703 charges against, 750 from operations, how ascer- tained, 749 management of, 159 when earned, 703 Income bonds, 684 Income statement, 742 Income tax, not expense of doing business, 751 Incorporated banks, 626 Indebtedness, extinction and re- funding of, 148 Indirect labor, 232, 761 classes of, 779 INDEX 807 Indirect lighting, 251 Indirect materials, 758, 781 Industrial banks, 604, 606 Industrial credit, 659 Industrial Management, on labor turnover, 349, 350 Industrial production as influence in business changes, 580 Industrials, capital required by, 128 Industry, control of, 320 distribution of products of, 270 socialization of, 49 Inferences, 81 Inflation of inv'entories, 764 "Influencing men in business," 450 Infringements, trade name, 427 Initial loss, 569 Initial working capital, 127 estimating requirements for, 129 Insolvency, bankruptcy and reor- ganization, 170. Insolvency, remedies for, 172 Inspection of purchases, 398 at the source, 399 Inspector, in functional organiza- tion, 205 Installment purchases, in account- ing, 726 Instruction-card man, 204 Insurance, credit, 569 Insurance, express and parcel post, 502 Insurance, in cost accounting, 780 Intangible assets, 727 Interbusiness standardization, 233, 419 Intercompany profits, 753 Interest, in cost accounting, 763, 764. 782 Interest on bank loans, 595, 617 Interest rates, stabilized by Fed- -eral Reserve system, 637 International Harvester Co., 510 Interstate Commerce Act, 494 Interstate Commerce Commission, loi, 70S Intuition, 30, 575 Inventories, classification of, 733 inflation of, 764 perpetual, 768 Inventory, average, 749 Inventory, in bookkeeping, 691 checking for accurac\', 749 increase and decrease in, 746 purpose of, 698 Invested capital, 100 Investment banks, 604 marketing of securities by, 607 Investment credit, 553 Investment funds, where obtain- able, 553 Investment paper ineligible for re- discount, 644 Investments, foreign, 678 Invoice, 516 in foreign trade, 518 Invoice, terms of, 555 Invoices, entered "net," 760 Inward charges, 760 Iron Age, 2 Irredeemable currency, 680 Italy, par of exchange on, 669 J James, Psychology, 66, 67, 79 Jevons, Logic, 73 Jevons, W. I., 2 Jobber, 461, 472 Johnson, Joseph French, 35 Joint-stock company, 105, 109 Joint-stock land banks, 611 Jones Act of 1920, 524 Jones, E. D., "2, 90 Jones, "Logic, inductive and de- ductive," 13, 64, 66, 70, 96 Journal, in bookkeeping, 693 Journal of Political Economy, 135 Judgment, supplementing standard- ization, 216 K Kemble, "Choosing Employees," 83 Keysen, C. J., Columbia University Lectures, 12 King, Elements of Statistical Meth- od, 14 "Knocking" competitors' goods, 436 Krone, Mint, valuation of, 669 8o8 INDEX Labor, adjustment account, 772 Labor, commodity view of, 289 Labor cost, defined, 325 estimates of, 302 reduction of, 318, 326 Labor, direct and indirect, 232 direct and indirect, in account- ing, 747 elements paid for, 287 in plant location, 187 protected by public opinion, 324 records, 771 share in profits, 189 Labor legislation, 280 Labor turnover, losses due to, 354; calculation of, 345; "refined," 347; means of reducing, 353 Labor unions, policies of, 279; membership of, 280 opposition to piece-rates, 316 time-study, engineer of, 309 Lading, bill of, 498 Land banks, 611 Land, charges against, in account- ing, 722 profits due to ownership of, 762 valuation of, 722 Large-scale production, relation of, to selling costs, 417 Law and business, 58 Law, civil and criminal, 58 Law and equity, 59 Law, substantive and adjective, 58 Lay-out, office, 248 Leadership in management, 241 Leads, in salesmanship, 453 Leased ground, improvements on, 723 Leasehold rights, 723 Ledger, plant, 779 posting from day book, 693 Leffingwell, W. H., 261 Legal investments for savings funds, 610 restrictions, in plant location, Legislative management, 198 Leifer Magnusson, on industrial housing, 366 Lending deposits, 595 Letters of credit, 667 classes of, 667 commercial, 539, 546, 667 specimen, 548, 549, 550 travellers', 539, 667 Letters, test, 69 Liabilities, analysis of, 736 in bookkeeping equation, 687 and capital, 736 current, 737 fixed, 737 Liability account, in bookkeeping, 688 Libraries, business, 264 Light, units of measurement, in cost accounting, 780 Lighting, office, 250 Limited partnerships, 108 Limits of wages, 272 Line of credit, 622 Line organization, 192; advantages and disadvantages of, 195 Line-and-staff organization, 195 Living, cost of, as wage factor, 393 Living wage, 283 Live-stock paper, 645 Load-factor, defined, 207 Load-factor of business, adjust- ment of, 571 "Loanable funds" and trade ac- ceptances, 557 "Loanable funds," relation to cred- it, 588 Loan associations, agricultural, 611 Loan-value of assets, calculation of, 592 Loans, classes of, 616 defined, 642 foreign, 678 interest paid by depositors, 595 long-term and short-term, dif- ferentiated, 603 purposes of various classes of, 604 real estate, 630 of reserve banks to member banks, 642 seasonal, 603 Loans and discounts, defined, 616 INDEX 809 Loans and discounts in relation to reserves, 636 Location of plant, 184; of chain stores, 470 Logic, 12 London, exchange on, 670, 673 exchange facilities of, 680 Long-term credit, for agricultural purposes, 611 affected by Federal Reserve system, 659 "Loss-sharing," 360 Losses, unusual, how shown in financial statements, 751 Lost motion, elimination of, 206 Lotze, Logic, 70 Lough, W. H., "Panics and De- pressions," 580 Luxuries, demand for, 432 Lyon, Hastings, 137 M Machine-hour summary, 791 Machinery account, 706, 725 in balance sheet, 739 substituted for labor, 326 Made-in-Germany trade-mark, 531 Mail, handling of, 256 Mailing, economy in, 257 Mail-order competition, 478 Mail-order departments of retail stores, 477 Mail-order houses, 473 Mail-order sales methods, 475 Maintenance, present and deferred, 159 Maintenance work, 46, 344, 354, 371 Maladjustment of effort in produc- tion, 417 Mal-observation, causes of, 65 Malthus, doctrines of, 50 influence on Darwin, 84 Management (chapter), 183; de- fined, 183; unity of control in, 188 evolution of (chapter), 218 expert staff aids to, 221 impartial, 243 legislative, 199 Management, office (chapter), 247 primitive, 218 record-keeping, 219 s'^'entific, 224 systematized, 220 Management of income, 159 Managerial authority, distribution of, 190 Manhattan Company Charter, 67 Mann-Elkins Act, 501 Manufacturers' retail stores, 465 Manufacturing cost, allowance for, 748 Manufacturing costs, how ascer- tained, 746 expenses, 750, 762 Manufacturing overhead, 761 Manzoni, / Promessi Sposi, 430 Map of sales districts, 452 Map, on scale of population or of prospective sales, 212 Marginal income, expenditure of, 29 Margins of business profits, 765 Marine insurance, 517 certificate, 516 Maritime Law Committee, 516 Mark, Mint valuation of, 669 Market, analysis of, 421, 433, 452 Market and product, correlation of, 421 Marketing conditions, special, 510 Marketing, defined, 6 expenses, in financial state- ments, 749 Markets, practical economy of, 27 Market value, basis of valuation of assets, 704 Marshall, "Principles of Econom- ics," 31 Marx, Karl, on incomes, 52 Massachusetts Trust, 105 Material, charged directly to prod- uct, 759 Material and labor, in financial statements, 747 Material received slip, 398 Material records, 765 requisition, 766 Materials, direct and indirect, 758 "Materials purchased," cost of, 759 8io INDEX Mithematics, in science of business, 13 Maturity of sight draft, 664 Mediums for reaching foreign mar- kets, 512 Member banks of Federal Reserve system, subscriptions of, 632, 635 Member banks' loans from reserve banks, collateral for, 642 Member banks, reserves of, 636 Memory, in collecting information, 79 Mental fatigue, 329 Mercantile credit, 553 Merchandise account, in bookkeep- ing equation, 688 specimen, 691 subdivisions of, 692 Merchandise, cost of, defined, 734 true cost of, 760 valuation of, 733 Merchant, as distributor, 461 Merchant Marine, Act of 1920, 524 Merchants' associations, 533 Merger, defined, 117 Methods evolved by workmen, 221 Micro-motion study, 228 Middleman, 432, 462 economic services of, 460 Mineral deposits, depletion of, 724 Mines, depletion of, 724 Minimum wage commission, 284 Minimum wage, guaranteed, in cost accounting, 772 Minimum wage legislation, 283 Minnesota minimum wage case, 285 Mixed accounts, 691 Mnemonic symbols, 769 Mobility of reserves, 633 Mobilization of banking resources, 627 Model towns, 367 Moisture, in ottice ventilation, 252 Monetary standards in foreign ex- change, 680 Monetary system, based on gold, 602 Monetary units of different coun- tries, 669 Standardization of, 68j Money and credit, supply adjus'cd to business needs, 633 Money orders, 546 as credit instruments, 539 Money-raising and money-making, 157 Money stage of business, 9 Money substitutes, must be re- deemable in specie, 602 Money wages and real wages, 271 Monopoly, effect of, 120 Monopoly, through voting trust, 116 Monotony, explained, 310 Montgomery, R. H., 695 Morgan, J. P., and Company, 607 Mortgage bonds, 542 ' Mortgage loans under Federal Farm Loan Act, 612 Mortgages securing public obliga- tions, 586 Mortgages, sinking-fund provisions of, 712 Mortgages, corporate, 137; equijy behind, 138; security behind, 138; closed-end, open-end, 139; purchase money, 139 Mortgages, how shown on balance ?hoet, 737 Motive power, 520 Moulton, H. G., 135 Municipal obligations, eligible for purchase by reserve banks, 657 MiJnsterberg, Hugo, 77 Mutual savings banks, 610 N National Association of Credit Men, 565, 651 form of guaranty, 569 National Bank Act, 628 National Banking Act, designation of reserve cities, 637 National banks, 625 capital of, 629 disposal of U. S. Political science and business, 54 Population theory of Malthus, 50 Ports, development of, 509 Post-dated checks, in accounting, 730 Post-sales service, 424 "Posting" in ledger, 693 Posting of accounts, 696 Pound sterling, 669 Power, charge for, in cost account- ing, 781 _ Pre-approach, in salesmanship, 443 Preferential rate, for trade accept- ances, 648 Preferred stock, 114 Prejudice, cause of error in obser- vation, 64, 67 Premium wage-systems, 297 Prentice-Hall, Business Forecast, 16 Prepaid charges, in sales account, 744. Prepaid expenses, 735 Present maintenance, 159 Present worth, defined, 738 Price corrections, 745 Price curve, 14 Price-fixing, factors in policies of, 33 INDEX 813 Price fluctuations, explanation of, 431 Taussig on, 602 Price levels, calculation of, 15 Price, selling, how determined, 431 Prices, affected by credit supply, 601 Prices, in business barometrics, 574 index number of, 578 Prime commercial paper, 648 Prime cost, 773, 775 Primitive business, 10 Principles of accounting (chapter), 684 Priority in use of trade names, 429 Private banks, 615 Private commercial banks, 625 Private credit, 585 Prizes for suggestions, 200 Product, charged with material, 759 Product and market, correlation of, 421 Production, "balance" of, 535 Production centers, 757, 779 Production cost in relation to sell- ing price, 431 Production, credit as a factor in, 534 Production department, 208, 210, chart of, 211 Production, influenced by sales quotas, 454 Production order, 771 ; specimen, 784 Production, proportioned to selling facilities, 417 " relation of credit to, 615 Production-unit method, in depre- ciation calculations, 710 Productive labor, 758 Productivity, factor in wages, 272 Productivity of labor, how in- creased, 320-372 Profit, in accounting, 691 Profit and loss account, 690 Profit and loss credits and charges, 750 Profit and risk, 243 Profit, selling, 749 Profit-sharing, defined, 357 forms of, 360 Profit-sharing, purposes of, 358 typical plan of, 361 Profits, calculation of, 714 conditions favorable for the making of, 433 corporations', 751 distribution of, 189, 242, 751 partnerships', 751 securing, 11 sole trader's, or individual proprietor's, 751 when earned, 703 Progressive standardization, 235, 237 Promissory notes, 539 eligible for rediscount, 644, 645 not eligible for open-market purchase, 656 Promoter, calculations of, 121 Promotion, 120 expenses of, 123 Promotion of employees, 342 Prospectus of security issues, 154 Property account, 722 Proprietorship, in bookkeeping, 687, 689 Proprietorship, individual, 104, 105 Proration of inward charges, 760 Psycholog}- of advertising, 400; of selling, 449, 469 Psychology- in business, 26 Psychology of panics, 575 Public credit, 585 assets supporting, 586 Public opinion, force of. 59 factor in profit distribution, 189 in wage controversies, 285, 586 Public utility security issues, 685 Publicity, cost of maintaining, 422 Purchase of commercial paper, 643 Purchase orders, 393 Purchase requirements, analvsis of, 382 Purchase requisitions, 386, chart, 387 Purchases and purchase returns, in accounting, 747 Purchases, standardization of, 383 Purchasing (chapter), 373 Purchasing Agent (magazine), 265 8i4 INDEX Purchasing Agent, 211 place of, in business organiza- tion, 373 Purchasing, competitive system in, 393 emergency service in, 393 Purchasing department, 381 Purchasing, follow-up system in, 395 inspection in, 398 Purchasing power, 510 Purchasing power, capitalization of, 591 Pure interest-rate, always theoret- ical, 764 Purpose of business, 189 "Pyramiding" loans, 574 Quality, basis of sales appeal, 421, 425 Quasi-monopolies, no Quick assets, 604 Quota, sales, 453 Quotation, nine methods of in for- eign trade, 515 R Railroad rates, 485; Labor Board, 281 Railway accounting, 708 Rate-making, 485 Rate-of-service wages, 289, 290, 297 Rates, based on cost of service, 494 based on "what the traffic will bear," 492 carriers', basis of, 485 carriers', how determined, 488 commodity, 497 express, 500 fixed by public-utility commis- sions, 685 of transportation, factor in selling cost, 438 Rate of exchange, equalization of, 670 Ratings, books of credit, 562 Reading by pages, 79 Readjustments, 170 after panics, 573 Real accounts, 690, 699 Real estate account, 700 in balance sheet, 722 loans on, 630; owned by na- tional banks, 629 Real estate, corporation organized to hold, 763 Real wages, 271 Rebate, on payment bills of ex- change, 666 Recapitalization, 170 Receivables, in accounting, 731 "Receivables," in credit transac- tions, 588 Receiverships, 173, 174, 739 Record-keeping in management, 2i8, 219 in modern business, 686 Records, cost, 765 in line organization, 194 Recreation, in welfare work, 47 Red tape in purchasing, 395 Redeemable bonds, 145 Redemption of credit, 594 of Federal Reserve notes, 639, 641 Redemption fund against green- backs, 639 Rediscounting of Federal Reserve bank's paper, 636 Rediscounts, defined, 643, 644 Refunding of indebtedness, 148 Regional banks, 631 Registered bonds, 542 Registrars of stock, trust companies as, 610 Registration of trade marks, 428 "Regular" trade channels, 461 Regularization of employment, 349, Regulation of carriers' rates, 486 Regulations, Federal Reserve Board, 655 Reichsmarks, rate for, 674 Rejected shipments, 399 Rent, in accounting, 750 INDEX 815 Rent, charge against income, 762 in cost accounting, 780 Rentals, on balance sheet, 738 Reorganization, 170, 177 committees, 181 funds for, 179 management under, 182 technique of, 180 Repair boss, 206 Repairs, in accounting, 705 Repairs and maintenance, in cost accounting, 781 Repairs, renewals and betterments, 725 Replacement cost (labor), 345 Replacements of equipment, in ac- counting, 704, 706 Reports, contents of, 223 forms of, 224 rules for, 223 Requisition, material, 766 Requisitions, posting totals of, 769 pricing of, 769 purchase, 386 Reserves against deposits, 636 Reserves against Federal Reserve notes, 636 Reserve against notes, 641 Reserve banks, reserves of, 636 Reserve cities, 637 Reserve, depletion, 711, 724 Reserve, depreciation, 685, 705 Reserve districts, 632 Reserve, donation, 730 Reserve notes, how put into circu- lation, 643 Reserve requirements of Federal Reserve Act, suspension of, 641 Reserve requirements of member banks, 637 Reserves, bank, how strengthened, 636 depletion of, 641 graduated tax on deficiency of, 642 held in New York, 618 Reserves for dividends, 165 for old or disputed accounts, 733 Reserves, secret, 751 Responsibility' of manager, 242 Rest and sleep, 330 Restoration of reserves, 642 Restricted production, indefensible, 324 Retail Merchants' Association, 563 Retail Stores, manufacturers', 465 Retailer and chain store, 472 mail-order house and chain store, 478 sales direct to, 465 "Retainers," cost-symbol, 340 Returned goods, 745 Revaluation of assets, 738 Revenue account,- 699 Ricardo, theories of rent and wages, 50 Rights, of capital, labor and pub- lic, 189 Rights, stockholders', 133 Ripley, "Railway Rates," 123 Risk, financial, mathematical dem- onstration of, 143 Risk and profit, 243 Route clerk, 204 Routing office work, 249 Routing an order, 203 Rowan wage system, 297, 299 Ruble, Mint valuation of, 669 Rules for reports, 223 Rulings of Federal Reserve Board, scope of, 647 of Treasury Department, 98 Rural credit banks, 606, 611 Rush orders, 393 Sakolski, 102 Salaries, in accounting, 749 Sale, making a, 443 Sales account, 692 Sales appeals, basis of, 425 Sales book, entries in, 695 Sales, cash and credit, in income statement, 744 Salts, computation of, in account- ing, 703 cost of, how ascertained, 745 direct to consumer, 461 Sales contests, 456 8i6 INDEX Sales department, 208 chart of, 212 Sales districts, 212, 452 Sales manager, district, 453 division, 453 Sales manager and purchasing agent, 374 Sales manager and traffic depart- ment, 213 Sales methods, mail order, 475 Sales organization, 452 correlation of, 455 personality of, 458 Sales quota, 454 Sales returns, 745 Salesman, responsibility of, 426 Salesmanship, confidence the basis of, 441 defined, 440 distinguished from advertis- ing, 440 Salesman, responsibility of, 456 Salesmen, advances to, 732 compensation of, 464 credit information from, 564 deportment of, 459 m.anageirient of, 451 Salesmen's conventions, 457 Salvage value, in depreciation for- mula, 710 Savings banks, 606 classes and functions of, 610 Savings funds, legal investments for, 610 Schedule boss, 205 Schedules, delivery, 383 Schulder, Fred, on catalogue sizes, 265 Science of business (chapter), i Sciences forming environment of business, 12 Scientific management, 207, 224 cost to install, 222 defined, 225 in office work, 266 origin of term, 226 Scientific management and labor, 322 Scientific method (chapter), 63 application of, to business, 2 Scientific spirit in business, 3 Scott, Walter Dill, 449, 450 Scrap value, 767 in accounting, 706 Scrip dividends, 167 Seager, Henry Rogers, 51 Seashore, "PsychologA," 65, 68, 79 Seasonal businesses, ratio of assets to liabilities in, 740 Seasonal variations in capital re- quirements, chart, 131 Secondary reserves, trade accept- ance as, 649 Securities, marketed by investment banks, 607 purchase of equivalent to di- rect loan, 604 Securities, when to sell, 144 Selection of employees, 238 Selection and training of employ- ees, 338 Seligman, "Economic Interpretation of History," 34 Seller, objectives of, 420 Selling (chapter), 411 defined, 413 high cost of, 414 Selling corporation, 463 Selling cost, elements of, 415 analysis of, 416 of mail order houses, 475 Selling costs, affected by Sherman Act, 513 Selling efforts, proportioned to pro- duction, 417 Selling expenses, in financial state- ments, 749 Selling methods of competitors, Selling price, determination of, 430. determination of, with aid of cost sys'em, 756 elements of, 416 factors in, 417, 418 fixed at point of greatest ag- gregate profit, 432 Selling price and selling cost, 420 Selling profit, 749 "Selling talk," 450 Semi-indirect lighting, 251 INDEX 817 Senses, impaired, factor in obser- vation, 66 Serial bonds, 150 Service, carriers' basis of payment for, 489 Service-life of assets, 707 Service wages, 289, 292 Service with every sale, 426 Serviceability of product, factor in selling plans, 424 Settlements with creditors, 568 Sherman Law, 235 Shipping department, 213 Shipping documents, ocean, 651 Shipping papers, 498 Shipping permit, 515 "Shopping" lines, 467 Shop work, functional organization in, 202 why standardized, 217 Shop-worn merchandise, valuation of, 734 Short-term credit, purposes of, 604 under Federal Reserve sys- tem, 659 Short-term notes, 146, 752 Silver certificates, retirement of, 638 Silver, in settlement of trade bal- ances, 638 Silver-standard countries, exchange on, 680 Single-entry bookkeeping, 698 defects of, 699 Single-name paper, 620 Sinking-fund method in deprecia- tion calculation, 708 Sinking funds, 150 Six months' agricultural paper, 642, 651 Six months' drafts, eligibility of, 645 Skill, "transference" of, 321 Slavery, era of, 9 Sleep, amount required, 330 "Slow-pay" customers, collection from, 567 ' Sliding scale, 295 Small, "General Sociology," 40 Smart, "Second Thoughts of an Economist," 53 Socialization of industry, 49 Social science of business, 11 Social sciences (chapter), 22 Social sciences and human arts, 24 Social sciences, respective fields of, 34 shortcomings of, 23 Sociology, 38 relation to business, 40 "Soldiering," during rate-setting, 293 Sole proprietorship, 105 Sombart, "Quintessence of Capital- ism," 121 Sources of information on foreign trade, 511 South American trade, 507 Sovereign, value of English, 669 Space, office, 248 Spain, exchange on, 672, 675 Special agencies, credit, 563 Special franchise, 728 Special marketing conditions, 510 Specifications, buying by, 3 Specifications, standard, 390 Speculative loans, 619 Speculative paper ineligible, 643 Speed boss, 205 Spencer, Herbert, 38 Spoiled work, penalty for, 304 "Square deal" in employment prob- lems, 342 Staff adjunct to line organization, 195 Standard labor-hours, 782 Standard report forms, 258 Standard specifications, 390 Standard Statistics Company, 16 Standard task^ 227 Standard time of task, 309 Standardization of labor adminis- tration, 281 Standardization, a function of management, 420 principle of, 233 of selling price, 431 Standardization by motion study, 231 .. Standardization of world currency, 683 8i8 INDEX Standardized occupations, 310 Standardized operations, in cost accounting, 772 Standards of business ethics, 11 Standards, office work, 249 State banks, 626 requirements for joining Federal Reserve system, 635 restrictions upon, 627 State banks and the Federal Re- serve system, 627 Statement of charges, 519 Statement of income, profit and loss, in bookkeeping, 692; speci- men, 742 Statemen's, financial, 692 Statistical information, supplied by accounting system, 695 Statisticians, American Associa- tion of Financial, 14 Statistics, science of, 14 Statistics, studies by Prof. Benini, 42 Stearns, W. S., 311 Sterling exchange, 668, 669 "pegged" by agreement, 674 progression in rates, 673 Sterling exchange and dollar cred- its, 680 Stock, classes of, 113 dividends, 167 donated, 161 issued below par, 729 rights to purchase, 133 selling additional, 133 sold to employees, 360, 363 treasury, 729 watered, 168 Stock cards, 769 Stock certificates, not true credit instruments, 539, 542 Stock exchange and country re- serves, 618 Stock exchange, in marketing se- curities, 154 Stock ledger, 791 Stock market prices, in business forecasting, 577 Stock records and physicaT inven- tory, discrepancies between, 769 Stock records, inventory, 733 Stock savings banks, 610 Stock sheet, 768 specimen, 770 Stocks and bonds, in accounting, 733 Stock-owning bonus plan, 364 Stockholding, consolidation through, 119 Stockholders, classes of, 113 Stockholders' right, 133 Storage of goods, basis of bank- er's acceptance, 653 Store room, arrangement of, 767 Stores clerk, 766, 768 Stores returned slip, 766 Strikes, 278 Subsidiaries, condition of, how as- certained, 753 control of, 118 defined, 752 financing, 140 notes receivable of, 732 Substitute currency, acceptability of, 641 Substitution of collateral securing acceptances, 653 Suggestion, 429 in advertising, 408 in salesmanship, 450 Suggestion system, 200, 365 Supply and demand, control of, 534 Supreme Court, minimum wage de- cisions, 284 Surplus account, how created, 738 Surplus, current, affecting depre- ciation charge, 710 Surplus and div'idends, 161 "Surplus," division of, in wage payments, 301 Surplus of Federal Reserve banks, 633 Surplus and reserves, 739 Surplus, used for dividends, 738 Survival of the fittest, 245 Suspension of reserve requircr ments, 641 Sweden, par of exchange on, 669 Syllogism, business, 86 Sy[idicates, underwriting, 153 Synthesis of task, 228 INDEX B19 System, quoted, 223 Systematized management, 220 "Talking points," in salesman- ship, 424 Tariff books, 497 Tariffs, railroad, 486 Task and bonus wage plan, 297 origin of, 305 Task, construction of, 307 standard, 227 Taussig, F. W., 121, 602 Tax on bank notes, 596 Tax on deficiency of reserves, 642 Tax returns, publicity of, 286 Taxation, affecting financial plans, 160 Taxes accrued, 737 Taxes, in accounting, 750 proration of, 782 Taylor, F. W., 206, 227, 229 "Shop Management," 92 Taylor differential piece-rate, 297, 301 Taylor system, 224 "Taylor system in Franklin Man- agement," 302 Taylor-White process, 231 Temperature, office, 251 Terminal charges, 734 Terminal receipt, 651 Terms of mercantile credit, 554 Terms, in purchasing, 392 Territorial salesmen, 213 Territories, freight classification, 497 Territories, sales, 452 Test letters, 69 Testimony, in acquiring knowledge, 79 Thompson, C. Bertrand, 75, 77 Tickler file, 264 Tickler system, in collections, 566 Timber, depletion of, 724 Time clocks, 772 Time and cost clerk, 205 Time and motion study, 228 Time deposits, reserve require- ments protecting, 637 Time loans, 617, 619 Time records of workman, 771 Time records from piece workers, 773 Time study, 288 Time-study engineer, for labor union, 309 Time wages, 289, 291 Tipper, Harry, 87 Tonnage, computation of, 521 Town planning, 367 Towne wage-system, 298 Trade acceptance, advantages of, 648 agricultural, 651 defined, 646 eligible for rediscount, 644 eligibility requirements of, 64S live-stock, 651 opposition to, 649 in open-market operations, 657 rediscounts of unlimited, 647 seller's contingent liability cre-r ated by, 650 specimen, 648 Trade Acceptance Council, 647 Trade, balance of, 670 Trade balances, silver shipments, to settle, 638 Trade board, 314 Trade channels, 461 Trade discounts, 744 in accounting, 733 rates of, 555 Trade mark association, 427 Trade marks in accounting, 728 Trade marks and trade names, 426 Trade names, of mail-order houses, 473 Trade routes, 519 Trade unions, bargaining by, 313 Trade usages affecting dollar ex- change, 655 Trading account, 692 Trading stamp cases, 56 Traffic (chapter), 483 Traffic, through rates, 493 Training, factor in observation, 68 820 INDEX Transfer agents, trust companies as, 6io Transfer of title, in credit exten- sion, 592 Transportation, factor in plant lo- cation, 185 to include door delivery, 480 in relation to market, 437 Transportation charges, factors in, 491 ; origin of, 483 Transportation facilities, analysis of, 437 Transportation tariff, 515 Travellers' letters of credit, 539, 546 Treasury funds, in Federal Re- serve banks, 636 Treasury, redemption of reserve notes at, 639 Treasury stock, 161 defined, 729 Trial balance, 695, 696 Triangulation, in foreign exchange, 671, 676 Trucks in transportation, 470 Trustee, in bankruptcy, 568 Trustees, of mutual savings banks, 611 Trust companies, 606 functions of, 608 Trust, Massachusetts, 105 Trust receipt, specimen, 551 Trusts, advantages of, no Turnover, labor, 344 cost of, 345 Turnover, merchandise, 420, 748 Typing, standards for, 249 U Uncertainty, factor in selling cost, 418 "Under New Management," 243 Underwriting syndicates, 153 Unearned burden, 782 Unfilled orders, in balance sheet, 741 Unincorporated banks, 625 Unit costs, 756, 760 defined, 765 Unit of production, calculation of cost of, 756 profit-sharing, 360 property-cost, 724 Unit times, 229, 302 Unity of control, 188, 322 United Drug Stores, 471 United States Children's Bureau, 283 United States notes, 639 (see "greenbacks") United States Shipping Act of Sept. 