616 



SCIENCE. 



[N. S. Vol. XXIII. No. 590. 



the profit-and-loss account, for it states the 

 flow of wealth during a given period. 



This account sets forth six features: (1) 

 The biisiness done as a whole and by de- 

 partments; (2) the cost of sales, on the 

 same basis; (3) the gross profits, on the 

 same basis; (4) management expenses, 

 which should not vary greatly with the 

 volume of business; (5) profit or loss on 

 the theory that sufficient capital is invested 

 in the business; (6) the net result, profit 

 or loss, after all allowances. 



Here, then, we find mathematics and 

 economics going hand in hand in aid of 

 the accountant; for in the theories on 

 which he bases his mathematical conclu- 

 sions we recognize the theories of the sci- 

 ence of economics. The themes of the 

 economist, such as capital, profit, income, 

 expenditure, value, property, labor, are the 

 terms employed here. The forecasts of the 

 economist, based upon economic principles, 

 are brought into contrast with the actual 

 results attained by the accoiintant. These 

 results ought to be studied by the econo- 

 mist, so that he may keep abreast of the 

 times, because the factors in the produc- 

 tion and distribution of wealth change, and 

 calculations based upon ancient conditions 

 must necessarily be modified. 

 Honest, Safe and Economical Life Insur- 

 ance: L. G. Powers, Bureau of Census, 



Washington, D. C. 



Fundamental principles on which life in- 

 surance is based : 



Some important facts relating to life in- 

 surance. 



Life insurance, to be honest and safe, 

 must fully recognize the scientific facts on 

 which all such insurance is based. 



These facts most fully recognized by the 

 so-called old-line insurance companies. 



Statement of the practical workings of 

 insurance in such companies, by which 

 they can furnish honest, safe and econom- 

 ical life indemnity. 



Conditions under which assessment and 

 fraternal insurance companies are unsafe 

 agencies for securing life insurance, and 

 also under which th^y may be trusted for 

 furnishing the same. 



Limited-term insurance the best form 

 for those needing large life protection but 

 who are temporarily receiving very limited 

 incomes. 



Old-line insurance with low expense of 

 management preferable for all who have 

 an income permitting of the accumulation 

 of savings, and who wish insurance for a 

 long term of years. 



Old-line insurance with present large ex- 

 penses of administration less desirable for 

 the average individual for caring for sav- 

 ings and securing insurance than the best 

 managed fraternal insurance companies. 



Fraternities will become more scientific 

 in their management and accumulation of 

 reserves, and old-line companies will in 

 time become less expensive in their manage- 

 ment, and by both classes of companies the 

 public will come to have more economical 

 life insurance as well as honest and safe 

 insurance. 



The Census Returns on Manufactures: Ed- 

 ward Atkinson,^ Boston, Mass. 

 The classification of manufactures by 

 the Federal Census leaves much to be de- 

 sired in the following respects: (1) The 

 collective branches of industry which are 

 conducted in large factories and work- 

 shops by great division of labor, distinctly 

 manufacturing, according to the conven- 

 tional use of that term; (2) the arts which 

 are conducted by the use of modern tools 

 and appliances, but yet remain distinctly 



'Born, Brookline, Mass., February, 1827; died, 

 December 11, 1905. Mr. Atkinson joined the 

 American Association in 1880. He has been a 

 constant contributor to Economic Science. An 

 incomplete list of titles of articles published be- 

 tween 1877 and 1905, inclusive, credits him with 

 183 subjects. 



