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THE old meaning of the word "capital" -- that is,
an accumulation of wealth, either money or sub-
stantial property, for use in the production of more
wealth -- has been greatly enlarged within recent
times. In earlier days, under the crude methods
then prevailing, a given manufacturing plant might
earn, say, ten per cent on its invested capital; but
when power machinery and improved processes
came into use and earnings increased, say, to twenty-
five or forty per cent, the practice began of putting
a valuation on this increased earning power, and
the "value" of a given property, instead of being
based on its original or replacement cost, came to
be measured by its capacity to earn profits.

Upon this new basis, "capital," as expressed

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