SECTIONAL TRANSACTIONS— F*. 353 



Difficulties which prevent general adjustment between production and 

 consumption. International monetary policy and the regulation of industry. 

 Past failures of all attempts at regulating agricultural production. A world 

 central bank and what it could do. Control of currency and credit. 

 Regulation and distribution of international loans. Assuming failure to 

 secure international co-operation, what the Bank of England could do. 

 Consequences of a managed currency and control of investment : some 

 degree of planning and a managed industry. The worst method — tariffs. 



Competition and prices not automatically self-adjusting or sufficient to 

 secure equilibrium. Need for the professionalising of modern business. 



DEPARTMENT OF INDUSTRIAL CO-OPERATION (F*). 



Thursday, September 1. 



Afternoon, 



Discussion on The preparation and uses of statistics for the business executive 

 (Chairman : Dr. W. H. Coates ; Mr. A. G. H. Dent ; Dr. E. S. 

 Pearson ; Mr. F. W. Paish) : — 



Mr. A. G. H. Dent. 



In most business problems the judgment of executives has to be based 

 on relevant statistics. The essential statistics needed are internal to the 

 company and external, the former dealing with operating results ; the 

 latter with markets, competition, the industry itself, and the general 

 economic position. 



The statistician's task is to analyse and interpret raw material figures, 

 presenting a report which is intelligible to an executive who has not had 

 specialised training in the handling of figures. The objective is to assist 

 him to operate and control efficiently ; to base decisions on the most 

 accurate presentation of figures ; to understand existing conditions, and to 

 foresee important changes. Executive judgment begins where statistical 

 presentation ends. 



A statistical report should consist of concise statements backed up by 

 figures and charts. The advantages of the graphic system are : ease of 

 reading and preparation, simplicity, compactness and comprehensiveness, 

 wide scope and vivid presentation. This system enables an executive to 

 grasp otherwise unco-ordinated masses of figures rapidly. 



The most important field for statistical work is the company budget, in 

 which demand, orders received, sales invoiced, accounts receivable, expenses, 

 net profits, etc., are estimated ahead, interpreting company policy. This is 

 the figure fabric of a company's existence, and needs to show clearly the 

 relationship between groups of figures, the eflfects of varying policies, and 

 of probable external changes. 



There is need for an adequate statistical treatment of accounts figures, 

 which may be considered as raw material data for studies. New forms of 

 statistical control are developing, such as ' Higher Control,' which co-ordinate 

 and relate company figures and give the managing director a complete inter- 

 related picture of company operations and their results. Commencing with 

 orders, the data can be worked through to the final net profit, relating 

 balance-sheet, profit and loss account, operating position, showing operating 

 ratios, long-period movements and current figures. 



