, 1873-10-26

tho economic action is" a hoa1thy ono.
But tho moment 1t Is broken 4 orisia Of moro ol
loss consequence boginH Tho inability to pay
may originate Mt my link Of tho chain. and ia
always occaaIoncd by tho abaonco Of = market,
or, rathor, Of q remuneration, for Tint which ia
produced. Wllon payment docs not follow pro.
luotfon, tho last In tho series must otllor aoll
cheaper or rotain his goods on hlB handa lu
either caHe follows tllo inability to meet hia
obligations, and tho consequent similar innbl1lty
Of those who rolled upon his solyenoy. Tha
shock ID propagatod baok through the whole
oiain Of credits to producers, contractors, and
oroditors of all descriptions Whom this inability
to moot ono's obligations happens in an tndivid-
ua1 oaso only, It paBaoa unfoit and unobaorvoa
By tho community at largo. It Is a case OF aim-
plo bankruptcy. Whom 1t happens In great
many instances at once or almost eimultano-
ousiy,
ia inevitable for, not being ablo to meet the1
obligations in tho usual say, every ono domandd
What is due him from othor sources. A rush Is
made Tor tho deposits in banks, and, being nim.
u1tanoous, It crlpplos these institutions. There
is general cry for tho means Of payment; fol
evory ono is debtor. Confidence is at an end,
and tho panic soon at its height.
Thus 1t is the production Of TINT for which
thcro Ia no presont demand, II demand 1t ali.
which proopltateB tho crisis. This oyorproduo-
tion-tlo production Of that for which there In
no present domand-iH alwaya an unproduotive
consumption OF capital, and Its virtual dostruo-
tion. IT is always cnuaod, too, by overspccula~
tion. Lot uH inquire now whonco this Bpocular
tion proceeds. What causes IT, or, rathor, what
almost necessitates It
=. - ,AAA' ~ ,". knoot.'
e' ".oa 10y a1v 4o9es eAPuooa, "uo
o.o aeomT nn, ~ w iesas fe@eon 'nat 'uo5 euoulu
aprI. a.. te naa oi'eu oAo1.oa W. "ouao.
sar,a aas sasso a. Nv Io"eon 10y ~ nnauia,
1850 sa ". ~ as;4!' pp01oas soa.a n,'nsa "i1n :. au
~ ~ sap's". aau uoonno y. P1onta,
90 ~ oo'sv. W., eo'.ou ., ptlneno u poh''eu
' 'asA ''| sA"s % eoeto's "os"u'oA
| -, rno'o ~ :" 'oaaouot y, bA"us' W ti''1.' ~
-nv "'A'.,' .,, ~ esPl'"ot" wy un'u"14s ''pc'A
as"tass su9' 1euuonos. %aa !"anenoS w. ' Aso
| speooianont ~nouco 1noy aro oi'sen DUCK VIII
| oetoat' mr. "axono'o naa Pon,soo out ehes
Productloh 1H nnhted not only py tne quantlty OF
FIELD OF EMPLOYMENT.
Eve1s na'so 91sapass ony na.9a o1sent o.
!ano' anu on n1'lteu e4'en' W i"'Ao on's " n1n.
o' ~
pRoh' "nen .' sao '.a ~. W sapsa. AZ soa
Try approaches slas 5 unit tue pEos fsI'n and,
49, 1890 ~ ~ a. jonro.so ~ =, nt0 tho
| tho eame the creator tno lncrease VI caphal 1ne
greater the decrease of profits. Gould this limit
| oror In .tto;nod nronta ,you,1 ha annihitatod
~. Du a' lT;r T., ~. ,s4', ,as ~ H.. po.
| John 6tuart Mill, IN the fourth pooA OIL nls Ho'
Ntical Economy" treats Of ths subject with hia
usual c1oarneBs.
There ia little danger. espccia1ly in d country
like ours, thai for many long years to como wa
shall reach the stationary state. And yet NO ara
always approaching It, and foil to reach
J II onlv because we nro at tho same
time extending tile limit ct the fold Of
| employment Of capital. 30 long as this o1ten-
sion Of the field is made wisely, Bymmetrically,
and according aa tho amount OF now capital
warrants it. in all directions simultaneously, no
disastrous consequences can follow. AZ mat
tor OF fnet, howeyor. the avarlco anu toly OF sna
owuers OF capital give to the heid netltlou8 ano
one-alded. deyeloPmont Which invaflaoly feauata
10 tho1r own dlscomnlofo. "o nero nako fooa
Tor IN e1tfaot from mr. MIL:
ICY pot 1,nou1t IN Gnaine ram1nar"tve en,
rloyuaent every year Tor 50 much capital, md
ost woM sone%ao 1aa. hoto wona % maa anGd
produced md remain uusod or e sold only at loss,
Dut tue full e1am,naston n Which wo have - y.
tG;s mat Tim mot,n in whch @ tho inean.
vencnco would bo experienced. Tho dithcultg
would nnt cohslst ih any "aat o. mArket. L. 'ae e
now capita were 4uiy shared among nanny varetics oI
won!o @ Ia'he 10 W ,s LUZ ~. an
Rroance, aa tnero "oa 10 ~ cause a. Wy h auy fs ~
nery. What woaa feany oo not mercy s d.!en; ou
nnposahe Woa1a 70 10 eoy y w H. cui.al @ ".au .omt
submitting II 10 rnplo seoue"oh oi lug Fa1o u p,ous'
Capitalists arc not resigned 70 this reduction;
thev rohel arainet it. Thoy force tho field ot
. '"o@ A "s ~.
employment by speculation. for tho rato OF profit
in ordinary business 1nay, in consequence Of the
increase OF caplthl. come 30 near TO tnae aioroeo
by tho lest sccuritics-the number of which is
Always Amleeo-tuas
, GENERAL DISSATISFACTION
| with tho remuneration OF capital onBuo3. Ihd
DISSATISFACTION at the smal returns whicl, capital