this point applies equally to "means of production" of this nature, whether used within the limits of capitalism, or exported for use outside of it), we need only refer to Tugan-Baranowsky's own "History of Crises in England." The facts brought together in that book, in so far as they relate to the latest phase of capitalism, that now under consideration, teach a remarkable lesson. This lesson can not be missed by one who contemplates the whole picture there represented, but could not be learned by Tugan-Baranowsky, who saw only the details of the process by him described. His theory of the "distribution of production" is the result of his having missed the great lesson which that book teaches, and that is, that the capitalist system lives and thrives by waste.
In speaking of the first "modern" crisis, that of 1857, Tugan-Baranowsky says in his History of Crises:—"The peculiarities of the crisis of 1857 find their explanation in the world-character of that crisis .......... The characteristic difference between the crisis of 1857 and those of 1825 and 1836 consisted also in the fact that this crisis fell most heavily not on the cotton industry as the former ones but on the iron industry. In this the new feature of the capitalistic mode of production found its expression,—the increased importance of the part played by means of production on the world-market as well as in economic life generally. The stagnation of trade usually moves the industrialists to look for new markets for the disposition of their goods. In this respect the crisis of 1857 had a very strong effect. The exports from England to the United States fell from nineteen million pounds sterling (1857) to fourteen millions (1858); the exports from England to the East Indies, on the other hand, rose from 11.7 millions pounds (1857) to 16.8 millions pounds (1858). In order to recuperate from the blows which it received on the European and American markets English capital migrated to Asia. In the East Indies began an epoch of railroad building, and of the improvement of inland ways of
