Publisher's Synopsis
This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1901 edition. Excerpt: ...former. No one thing is more essential for success in modern business than the ability to forecast future changes in the desires of consumers. It is important to note also that the loss may result from the non-occurrence of an anticipated event, as well as from the occurrence of one which was not anticipated; and that the special cost entailed upon society by the existence of risk will have to be borne whether or not the uncertain loss actually occurs. 1 A slight amount of dynamic risk would also be present so long as there were slight local changes in the amount of capital, due to the future of the actual course of events to agree with the expected course. Every such minute dynamic change would slightly affect values in other parts of the economic system. Examples of the losses caused by these dynamic changes are to be found on every hand. The tide of fashionable travel turns from seashore to mountains, and large investments of capital at ocean resorts lose their value. Bicycles and automobiles are used by people who formerly wanted horses and carriages, and the value of the latter declines. An unexpected change in the fashionable color leaves manufacturers and dealers with stocks of goods which they are obliged to sell at reduced prices. The effect of improvements in mechanical and chemical appliances is equally obvious. A system of street railways operated by cable was introduced in a western city, and when its career of usefulness had hardly begun, it was replaced at great expense by a system operated by electricity. A flouring mill was fitted up with the best available machinery, and within a very short time the new machinery was discarded, and an improved pattern introduced at an expense of hundreds of thousands of dollars. Every...
