The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-09-09
the Revolutionary War which have been pre-
served In their archives.
Industrial and Finssciai Crises.

TO Economic Crises, by EDWARD ID. JONES,
professor Of economies In the UniVersity Oh
Wisconsin. In a volume OF some two hundreo
pages the author Examine the various theories
Of crises that have been propounded' set.ne
forth each of them in as favorable aIgh az
possible before proceeding to formulate ms
own conclusions. In two especially Interesting
chapters the periodlcity and psychology OF
crises are discussed. II Ia these chapters 70
which we shall pay particular heed. aiter a
glance az the Introduction, In which the author
takes n luminous and comprehensive view oil
the subject.
Prof. Jones begins with a definition. or what
practically amounts to the same thing. a sue
cinct description Of the thing TO be discussed
What most people have in mind when ~
speak OF a crisis Is an acute mala6y " 1aXii In
the nineteenth century business N1s seemed TO
be- Increasingly liable. TO Snr:ont notion oil
crises ia that they A. periodically recurring
commissions which ps,a.yze the course OF trade
give rise to violent Illustrations OF values and az
the results Of their visits. leave behind them
crippled industries. bankrupt or suspicious
capitalists -nd impoverished laborers. Lore
OversforS gave the following account OF an
industeal cycle containing a crisis: state OF
quiesk ,nce, Improvement. growing conndence'
prospeity. excitement, overtradins. convul-
sions, pressure. stag nation. distress. ending
again In oulesoence." Frederick EnRels puts
the matter thus: Among all civilized peoples
and thu moro OF less barbaric hangers-on the
Industrial and commercial worlds. or. In other
words, the phenomena OF production ana ex-
change. are thrown out OF Joint about once
every ten years. Commerce IL at a standstln'
the markets are giutted. products ccumulate.
"A multitudinous az they are unstable, hard
- a-nlaN NantaHaa faNNnTia0 are
closed. the mass Of workmen are In want OF the
means OF subsistence, bankruptcy follows
upon bankruptcy. execution upon execution.
The staRnation lasts for years; productive
forces and products are wasted and destroyed
wholesale, until the accumulated mass OF com
modities finally filters OF more or less depreci-
ated In value. whereupon production and eI-
change gradually begin 20 move again.
Little by little the pace duickens
II becomes a trot. The industrial trOt breaks
into a canter, the canter In turn grows into
the headlong eallop OF a perfect steeplechase
Of industry. commercial credit and specu-
lation. which. finally. after breakneck leaps.
ends where II began. in the ditch OF a crisis.
And SO over and over again" 7, +. Plunkett
thought that the round Of variations which Is
pretty sure 70 be observed at least once in the life
OF each generation may be described as 'torpor.
prudence, health. plethora. blood-letting, or
"a -stagnation. economy. productive Industry.
accumulation, enterprise, expansion. collapse
Again the symptoms Of a crisis have been
catalogued by Max Wirth In the way subjoined:
Il. Abnormal activity in floating enterprises
and boldness In speculation, 2 Unusual aN
tivity In stock-johblns; viz. the desire To iound
stock corporations In order 20 use all possible
means To force the stocks rapidly TO a hlGh
- - N VsAAN -
hgure. and then sell out AZ d prout' "aNlhe
the corporation TO those IN whose hahds the
stock ~ ultimately found. 4 rule IN such
cases IL that a good business continues to be
operated by the founder OF H. VINO may take
a few companions. but that a d business
is made q o basis OF q stock company. 3. IN
usual excitement and gullibility Of the public.
caused by the report Of large profits. 4. Rapid
increase OF luxury. 3. Sharp rise OF the price
Of necessaries, articles OF luxury, raw ma
terials and provisions. 9. Rise In the prlee
Of real estate. 7. Strong demand for labor
and rise in wages. 8. Unusual expansion
OF credit and credit instrumentahties. In con-
sequence whereof there is a rapid and unusual
increase In discount. o A large demand
for cash. and. IN consequence OF this demand.
a decline In stocks" II we conflne Our thought
to the eliminating period OF a crisis. MIR. Jones
would define Il more concisely in the following
terms a crisis is the sudden application
Of critical conservatism 10 business trans
actions. Leading TO such a demand for lqui-
dalton as TO cause q widespread inability among
business men 10 meet their obligations" Some
what similar Is the definition given by Mr.,
Horace White: Commercial crises are dis
turbances Of the course Of trade at given
times arising from the necessity Of readjusting
its conditions to the common standard and
measure OF value
Our author points out thai the gradual ap-
nearanoe OF crises within a comparatively
reoent period, and as an accompaniment OF the
nrosen, industrial system, imparts 10 them
a deent,a significance, and should help us to
discover their causes. Crises have come to
us in company with industrial freedom and
mathematician. with the factory system, the
s,,ansion of foreign commerce.. the extended
uso ~ crodit md the other features which mark
,ho ooo,omlc no Of thi. century. The order
In ubioh thu landing industrial nations began
90 o,noria,oe crises Ia also a significant fact,
a. > ,o-dav the VARYING degrees Of intensity
Nth which different countries are affected
~ ,hos. ,hanonena II helms TO direct inquiry
90 Lnou thu, orise. ara moro severe and fire.
80, In Tho rpi,ad States than In INV other
o,r,rr Tbev ara fol, in progressively d.
-t.t.hin, ,oroo In England. Germanv France.
u.uo,d o,d Swityerland The comparatlve