chapter  XVIII
13 Pages


SO far the argument has been concerned with the influences which check the flow of capital towards the points of highest net return; it has accordingly dealt on the one hand with the cost of production of capital and on the other with the

difficulties involved in the effective formulation of Demand; but it has treated only in an incidental way the effect of the work done by the individual market agencies in reducing these costs. It needs, therefore, to be supplemented by a review of the work done by each of these agencies, designed to bring out the nature of the economy effected by each. It should be noticed that in this preliminary review the Banks, the Market for Negotiable Securities and Trade Credit are not dealt with on a scale at all proportionate to their importance, for they receive separate treatment in later chapters. It may be noticed, too, that no attempt will be made to confine the meaning of the term" marketing" within the narrow limits previously defined; its meaning must be derived from its context; but usually it will be used in the ordinary business sense, that is to say, it will refer to the whole work of management of capital, and will consequently include all the work done in reducing risks and establishing business contact between the parties who supply capital and those who employ it.