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 balance-sheet which would clearly represent some quite important facts. It would be contrary to the general practice, by which directors do not state the full amount that is taken from revenue for this purpose, with the result that there are, as Sir Josiah says, "reserves hidden in innumerable places," and in the case of ill-financed companies, there are undisclosed losses in equally numerous spots.

But then, if this be what a balance-sheet ought to be, it will break down under the next demand that Sir Josiah makes upon it. "Has the shareholder," he proceeds to ask, "who wishes to sell his holding no rights as to some real knowledge of the value of what he is selling?" And this surely must mean that the balance-sheet ought to show not what has been spent upon the assets, but what they ought to be expected to fetch, if sold; or to cost, if they had to be replaced. If this be the true basis of a balance-sheet, a company would not only be entitled, but obliged, in times of rapidly rising prices, to write up the value of those assets which had risen in price.

Equally confusing to the layman, who endeavours to cull wisdom from the sayings of these learned authorities, are the observations of Mr. Pixley in his Duties of Auditors that has