besideswhichitis，practically，verydifficulttoeffectsuchanavowedrecapitalizationasappliedtothestockofincorporatedcompanies，particularlyinthecaseofthosewhosestockisostensiblythecapitalizedvalueoftheirplant。
Suchareadjustmentofnominalvaluetoactualvalueasshownbythefactsofearning-capacityiscontinuallygoingon，insomemeasure；butitdoesnotcovertheentirerangeoffactsinvolved，anditisnearlyalwaysofthenatureofareluctantconcession，followingonlyaftertheneedofithasbecomesomewhatpressing。Itcan，therefore，inthecommonrunofcases，notcatchupwiththeprogressivedifficultywhichitisdesignedtomeet，insofarasthedifficultyisofaprogressivecharacter。
Adiscrepancybetweenacceptedcapitalizationandcurrentearning-capacity，similartothediscrepancydiscussedabovebutofaprogressivecharacter，arisesundermodernconditionsapartfromafallintherateofinterest。Thediscrepancypointedoutandprovisionallydisposedofabove，duetoafallininterestrates，isadiscrepancybetweenthenominalvalueacceptedcapitalizationoftheolderestablishments，computedontheirearlierearning-capacityorontheoriginalcostoftheirequipment，ontheonehand，andtheirpresentactualvalueontheotherhand，computedontheircurrentearning-capacityincompetitionwithrivalsthathavetheadvantageofalowercostofequipment，or，inotherwords，alowerinterestchargeperunitofearning-capacity。Undertheregimeofthelater，morefullydevelopedmachineproduction，adiscrepancyhavingasimilareffectarisesoutofapersistentdivergencebetweenthepastcostofproductionofagivenequipmentandthecurrentcostofalikeorequivalentequipmentatanysubsequentdate，-
supposingthatthereintervenesnoinflationofpricesandnoextraneouscausemakingforaspeculativeadvance。22*
Supposepricesoffinishedgoodstobestableortovarybyinconsequentialfluctuations，negligibleforpurposesoftheargument，andsupposetherateofinteresttobeinasimilarlynegligibleposition。Inotherwords，supposesuchaconditionasthebusinesscommunitywouldrecognizeasordinary，normal，sound，withoutgroundforpronouncedhopesorfears。Undermoderncircumstances，dominatedasthemodernsituationisbythemachineindustry，suchastateofaffairsisunstable，evenapartfromanydisturbanceofanextraneouskind。Itisunstablebyvirtueoftheforcesatworkinitsownprocess，andtheseforces，onthewhole，makeforaprogressivechangein。thedirectionofdepression。