REPORT OF THE TREASURER FOR THE YEAR ENDING DECEMBER 31, 1974.

The article presents the report of the treasurer of the American Economic Association for the year ending December 31, 1974. The 1974 deficit resulted from a shortfall of investment income from the decline in the stock market, spending on the periodicals above the budgeted amounts because of unexpectedly large increases in paper and printing costs, the decisions by the Executive Committee in March 1974 to launch a new publication and make the post of Assistant Secretary-Treasurer half-time, and a planned deficit of $10,000 in the budget adopted by the Executive Committee on December 27, 1973. The most important reason for the deficit was real capital losses. The rise in paper and printing costs is second only to the investment losses in accounting for the deficit. The line item for Job Openings for Economists understates its cost because it does not include salaries. The expected deficit of $155,000 is on what might be called an accrual basis. The figure includes $99,000 of investment losses to be carried forward from 1973 and 1974. The accrual deficit, the cash deficit, and the rise in net worth are all relevant to the financial problems of the association but in different ways.