communication, which had the effect of increasing there the demand for English goods."
We can not repeat here the detailed statement of the crises that followed that of 1857 until the present day, but a careful examination of this very interesting part of Tugan-Baranowsky's book will prove very instructive. Briefly stated, all these crises were brought about by over-production of "means of production," particularly of the most lasting and staple means of production, those which it takes longest to produce, means of communication and public improvements. The typical crisis occurs in about the following manner:
The starting-point is the preceding crisis. As Tugan-Baranowsky says in the passage just quoted: "The stagnation of trade usually moves the industrialists to look for new markets for the disposition of their goods." And as he has also observed, these goods consist mostly of means of production. In other words: after a crisis there is a superabundance of capital which is seeking employment. As the ordinary fields of occupation, particularly at home, are well filled, the capitalists look for some new fields wherein their capital could be profitably employed. Knowing that it would be useless to manufacture some new consumption-goods, or some machine for the purpose of manufacturing such goods, for the reason that the capacity of our society for consumption is limited, they start out to create new demands by creating new civilization. Civilization has proved a good customer, and capitalists turn to it instinctively whenever hard pressed. So the iron threads of civilization begin spinning at home and abroad, but mostly abroad, the missionary spirit of capitalism being well known. This creates a demand for vast amounts of capital and labor. Things begin to hum,—the prospects are bright. The markets are relieved of the surplus-product which clogged the wheels of production, and trade has revived. An era of prosperity has set in. The more crazy the "civilizing" undertaking, particularly the longer it takes to finish it,
