APPENDIX

fruition of economic theory in economic statistics, it would 'have beenan equally true and a more significant statement, (p. 175.)

* * * *

The present writer believes that had Fisher written Income andCapital, beginning with a chapter on the topic of psychic income andending with a chapter on wealth considered as a kind of embodimentof services directly or indirectly to become income, his work wouldnot only have been more useful to the thoughtful reading public atlarge, but also and most particularly, to accountants and economists.

There is very real occasion for regret that the professional account-ants have found so little occasion to work in the subject of finalobjective income. It can hardly be doubted that, in their enterprise(income accounts) they, at times, lose sight of the fact that suchstatistics are wanted primarily for the ordering of the mode of livingof the persons interested. For example, it is usually pressure uponshareholders for the wherewithal to meet living expenses that excitesthe clamor for larger dividends. Full statement of the earningprospects that condition the upbuilding of surplus would, at least,prevent their urging dividend payments contrary to their own bestinterests. Full statement, too, even though no dividends are forth-coming, may put the shareholders in a favorable position — throughselling part of their holdings or borrowing upon them — to maintaintheir customary scale of living. By keeping more constantly inmind the gap between the enterprise earnings and the mode of lifeof the persons interested, the usefulness of their income statisticscould be greatly enhanced.

From the economist’s point of view, and for the good of the public,it is of very great importance that the accountants should maketheir income statistics as full and as complete as the conditions oftheir professional practice will permit, (pp. 176 and 177.)

APPENDIX TO CHAPTER X§ 1 (to Ch. X, § 2)

r Geometric representation of incomes for three years

If we proceed from the consideration of two years to that ofthree, we may still represent our problem geometrically byusing a model in three dimensions. Let us imagine three

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