According to the mercantile agencies, the cause of a little more than one-third of the legal insolvencies in the United States is "lack of capital.", This is rather a vague phrase which in the great majority of instances should probably be interpreted to mean "lack of working capital." By far the greater number of business enterprises can be made successful on a small scale even though their capital may be very limited. It is when these enterprises begin to expand and go beyond the prudent limits imposed by the small amount of available capital, that they tend more and more to transfer working assets into fixed assets and finally reach a point, if care is not exercised, where they cannot raise the ready cash with which to meet maturing obligations. If we were to call the basic trouble in such cases "mismanagement of capital," we should not be far from wrong.