and, left to drift without the sure guidance of an all embracing theory, he clings to the isolated facts of existence which obtrude themselves upon his keen vision.
The facts upon which Tugan-Baranowsky constructs his theory are the same facts to which we alluded above as confirming our theory. They are: that the area of capitalism expands, and that production, in so far as the goods produced are concerned, has so changed that the principal goods produced now by the leading capitalist countries are machinery and other "means of production," instead of consumable goods as was formerly the case. From these two facts Tugan-Baranowsky concludes that it is a law of capitalistic development that the quota of consumable goods in the yearly product of society should constantly grow smaller and the quota of "means of production" as constantly increase; and that if the proper proportion is always observed no over-production can ever occur.
Is this conclusion correct? Most emphatically, no! Tugan-Baranowsky sees the immense masses of "means of production" produced annually by the leading capitalist countries, and he stands in awe of this great fact. A little less respect for "fact" and a little more respect for theory would have made him ask for the why and the wherefore. It would also have made him look for the connection between this fact and other facts. And first of all he would have taken notice of what was being done with these "means of production." Had he done so he would have observed that these immense masses of "means of production," with some exceptions which will be noted later, are not used in the capitalistic countries in which they are produced. They are produced in the capitalistic countries and exported into countries which are only in the process of capitalization, so to speak. He would then have understood that the surplus-product in capitalistic countries has so far not clogged the wheels of production permanently, not because of the clever distribution of production into the different spheres, not because of the change from the pro-
