tly, there
could be no superfluous capital and labour in Lancashire trade if the
cotton-spinners, manufacturers and their operatives, increased their
own consumption of cotton goods to correspond with every increase of
output.

But if they do not do this, they can only make good and maintain
their capital and labour in employment by persuading others to
increase their consumption of cotton goods. How can they do this? If,
instead of desiring to consume more cotton goods, the Lancashire
employers and operatives desire to consume, and do actually consume,
more hardware, houses, wine, etc., then the increased consumption of
these things, raising their prices and so stimulating their
production, and distributing a larger purchasing-power among the
capitalists and operatives engaged in producing the said hardware,
houses, wine, etc., will enable the latter to consume more cotton
goods, and if these desire to do so, their effective demand will
maintain the new capital and labour employed in Lancashire trade.

But if, instead of taking this course, the Lancashire capitalists and
operatives want not to consume either cotton or anything else, but
simply to _save_ and put up more mills and prepare more yarn and
cloth, they will soon find they are attempting the impossible. Their
new capital, and the fresh labour conjoined with it, can only be
employed on condition that they or others shall increase their
consumption of cotton goods. They themselves _ex hypothesi_ will not
do so, and if the capitalists and operatives engaged in setting up the
new cotton-mills, etc., will consent to do so, this only postpones the
difficulty, unless we suppose a continuous erection of new mills, and
a continuous application on the part of those who construct these
mills of the whole of their profits and wages in demanding more cotton
goods--a _reductio ad absurdum_. In short, cotton capitalists and
operatives can only effect this saving and provide this increased
employment of capital and labour on condition that either those
engaged in erecting and working the new mills shall spend all their
income in demanding cotton goods, or that other persons shall diminish
the proportion of their incomes which hitherto they have saved, and
shall apply this income in increased demand for cotton goods.

Now if the same motives which induce Lancashire capitalists and
workers to refuse to increase their present consumption _pari passu_
with the rate of product