oods for personal use, and if this be generally
applied it amounts to a clear admission that under-consumption is the
reason why there appears to be a glut of capital, fixed or other.

FOOTNOTES:

[146] _Contemporary Review_, March 1888.

[147] _Report on Industrial Depressions_, Washington, 1886.

[148] Report, pars. 61-66.

[149] Report, par. 106.

[150] _Contemporary Review_, July 1887.

[151] _Contemporary Review_, March 1888.

[152] _Report of the Commissioner of Labour_, Washington, 1886, pp. 80
to 88.

[153] D.A. Wells, _Contemporary Review_, August 1887.

[154] Lord Playfair, in the _Contemporary Review_, March 1888, gives a
number of interesting illustrations of recent economies in transport
and manufacture.

[155] _Statist_, 1879, quoted Bowley, _England's Foreign Trade in the
Nineteenth Century_, p. 80.

[156] _Essays in Finance_, vol. i. p. 137, etc.

[157] For the view that over-consumption is cause, see Appendix II.

[158] "What is annually saved is as regularly consumed as what is
annually spent, and nearly in the same time too; but it is consumed by
a different set of people." (_Wealth of Nations_, p. 149_b_,
McCulloch.) "Everything which is produced is consumed; both what is
saved and what is said to be spent, and the former quite as quickly as
the latter." (_Principles of Political Economy_, Book I., chap. v.,
sec. 6.)

[159] An able analysis of the nature of "paper savings" is found in
Mr. J.M. Robertson's _Fallacy of Saving_. (Sonnenschein.)

[160] Chap. v. Sec. 5.

[161] Bk. III., chap. xiv. Sec. 3.

[162] The stock of a small retailer will not, however, in all cases
vary proportionately with the aggregate sales of all classes of goods.
A small shopkeeper, to retain his custom and credit, is often required
to keep a small stock of a large variety of goods not often in
request. If he sells them rather more quickly, he does not necessarily
increase his stock in hand at any particular time.

[163] It likewise determines the quantity of plant and stock at _a_,
_b_, _c_, _d_ down each of the perpendicular lines, for the demand at
each of these points in the production of plant and machinery is
derived from the requirements at the points A, B, C, D, E. The flow of
goods therefore up these channels, though slower in its movement
(since in the main channel only goods flow, while fixed capital is
subject to the slower "wear and tear"), is equally determined by and
derived from the c