of all others, political and social. Even the industrial activities are often permanently turned out of their normal directions by social states that passed away many ages ago; as witness what has happened throughout the East, or in Italy, where towns and villages are still perched on hills and eminences chosen for defensive purposes in turbulent times, and where the lives of the inhabitants are now made laborious by having daily to carry themselves and all the necessaries of life from a low level to a high level.
The extreme complexity of social actions, and the transcendent difficulty which hence arises of counting on special results, will be still better seen if we enumerate the factors which determine one simple phenomenon, as the price of a commodity—say, cotton. A manufacturer of calicoes has to decide whether he will increase his stock of raw material at its current price. Before doing this, he must ascertain, as well as he can, the following data: whether the stocks of calico in the hands of manufacturers and wholesalers at home are large or small; whether by recent prices retailers have been led to lay in stocks or not; whether the colonial and foreign markets are glutted or otherwise; and what is now, and is likely to be, the production of calico by foreign manufacturers. Having formed some idea of the probable demand for calico, he has to ask what other manufacturers have done, and are doing, as buyers of cotton—whether they have been waiting for the price to fall, or have been buying in anticipation of a rise. From cotton-brokers' circulars he has to judge what is the state of speculation at Liverpool—whether the stocks there are large or small, and whether many or few cargoes are on their way. The stocks and prices at New Orleans, and other cotton-ports throughout the world, have also to be taken note of; and then there come questions respecting forthcoming crops in the Southern States, in India, in Egypt, and elsewhere. Here are sufficiently numerous factors, but these are by no means all. The consumption of calico, and therefore the consumption of cotton, and therefore the price of cotton, depends in part on the supplies and prices of other textile fabrics. If, as happened during the American Civil War, calico rises in price because its raw material becomes scarce, linen comes into more general use, and so a further rise in price is checked. Woollen fabrics, also, may to some extent compete. And, besides the competition caused by relative prices, there is the competition caused by fashion, which may or may not presently change. Surely the factors are now all enumerated? By no means. There is the estimation of mercantile opinion. The views of buyers and sellers respecting future prices, never more than approximations to the truth, often diverge from it very widely. Waves of opinion, now in excess, now in defect of the fact, rise and fall daily, and larger ones weekly and monthly, tending, every now and then, to run into mania or panic; for it is among men of business as among other men, that they stand hesitating until some one sets the example,
