the facts adduced by Tugan-Baranowsky, but also from his own statements, is that his theory, the perpetuation of capitalism by means of the proper "distribution" of production, is the veriest rot. Prior to 1857 a change occurred in the "distribution" of the production of the chief seat of capitalism in those days, England. The production of cotton goods (consumption goods), was relegated to the background, and the front rank was assigned to iron-goods, (means' of production). In other words, Tugan-Baranowsky's advice of how to prevent a crisis because of over-production was followed. But the crisis of 1857 did come, notwithstanding the use of his patent remedy. The faith of the capitalists in his remedy was evidently shaken a bit. For, as he has told us, the capitalists, instead of continuing the production of their means of production for the same market, which, according to Tugan-Baranowsky's theory, can never be over-stocked with means of production, set about looking for new markets. The only thing in which they followed him still was the "distribution" of production; they still produced means of production by preference. But the crises still continued to set in regularly, driving the poor capitalists to distraction in their vain hunt for new markets. In other words, the new markets were also soon over-stocked with means of production. And very naturally so: for means of production (and this includes means of communication), are nothing more than means to the production of consumable goods. Where, therefore, there is no demand for the consumable goods ultimately to be produced by their means, their production is over-production, and is so found to be when the ultimate test is applied. The capitalists discovered this much sooner than did Tugan-Baranowsky, owing to their healthy wolf-instinct of capitalism, which can not be fed on fairy-tales, but requires good dividends to appease its hunger. Seeing that they are at the end of their tether, that the reserve of markets is giving out, while those under exploitation are geting hopelessly over-stocked, they set about fighting each
