through the issue of corporate stocks and bonds,
was created by leaps and bounds. As the indus-
try of the community became more efficient and
the unit of effort brought forth greater results, cor-
porate securities were created in an ever increas-
ing ratio. Then, as the new custom became more
firmly established, it was found that the limit of cap-
italization was by no means reached when present
earning power alone was capitalized, for in a grow-
ing country like the United States, with population
practically doubling every generation, future earn-
ing power was seen to be vastly greater. So the
capitalists quite naturally took the further step
and issued corporate stocks and bonds based on
estimated future earnings.

Naturally, this modern practice of preëmpting
or capitalizing probabilities was overdone. Such a
process inevitably invited speculation; and "boom"
periods, with recurring lapses and setbacks, became
characteristic of the times. Eventually, the capi-
talists learned that this new capital, which repre-
sented not only accumulated wealth and current
earnings but the future possible earning power of
the community generally, must be bolstered up and
insured by some artificial process. So long as nor-
mal growth in population and industry continued,

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