The aim and substantial significance of the ' manipulations " of vendible capital here spoken of is an ever recurring recapitalization of the properties involved, whereby the effective capitalization of the corporations whose securities are the subject of the traffic \a increased and decreased from time to time. The fiuctuations, or pulsations, of this effective capitalization are shown by the market quotations of the securities, as noted above.' It is out of these variations in capitalization that the (;aius of the traffic arise, and it is also through the means of these variations of capitalization that the business men engaged in this higher finance are enabled to control the fortunes of the corporations and to effect their strategic work of coalition and reoiganization of business enterprises. Hence this traffic in vendible capital is the pivotal and dominant factor in the modem situation of business and industry.
p. IH.
■ Am is truB Of good-wUI and credit ViteiuionB genenlly, ki with TMp«ct to the good-will and credit Mrength ot Ihese greaMr businsM iDBD ; it afforda a differ«atikl adrantaje and giiea a diflerentjal gain. In the traffic o( oorporation finance thia diSenntial gain ia thTown iminedlatelj iolo the torm of capital and ao la added to the Dominal capitallzad wsalth of the commanitT. What It girea to lU boldeia in thia capitalUed form ia a claim to a proportlonato ■bare in the eziatlng wealth. If other thioga are luppoaed to remain the nma (which niaj not be the caae), the claim ao entarced by the great flnanoien on the ba^ of good-will and credit exteoaioD dedneta that maoh Irom tlie wealth held bj the reat, the preTiona bolder*, h oonnted 1b
MODERN BUSINESS CAPITAL 169
It has been noted above that what may be called the working capital on which thi^ higher corporar