Lo que acaba de decirse de la parte que desempeñan la buena voluntad y las obligaciones (debentures) en la capitalización de las corporaciones debe relacionarse con lo que se expuso más arriba (págs. 100-104) en cuanto a la naturaleza de los títulos ofrecidos como garantía en la obtención de una prórroga de crédito.
La mayor parte de los títulos utilizados como garantía, y así "acuñados en medios de pago", son constancias de deuda, a un grado de distancia o más de su base física, instrumentos de crédito que registran una prórroga de crédito anterior.
In the earlier period of growth of this debenture onleas Id a small concern or under incompetent management. Nothing but " water "^ under the name of good- will — belongs in the common gtock ; wbereaa the prelerred stock, which represents material equipment, is a debenture. >' Overcapitalization," on the other hand, if il neona anything under modem businesB conditions, must mean overcapltalizaKon u compared with eaming-capaclty, for there is noUilng else pertinent to compare it with ; and eaming-capacity fluctuates, while the basis (interest rates) on which the earnlDg-capacity ia lo bo oapfialized also fluctuates Independently.
In effect, the adjustment of capitalization to earning-capacity is taken care of by the market quotations of stock and other securities; and no other method of adjustment is of any avail, because capitalization is a question of value, and market quotations are the last resort in questions of value. The value of any stock listed on the exchange, or otherwise subject to purchase and sale, fluctuates from time to time; which comes to the same thing as saying that the effectual capitalization of the concern, represented by the securities quoted, fluctuates from time to time. It fluctuates more or less, sometimes very slowly, but always at least so much as to compensate the long-period fluctuations of discount rates in