isitions;

* when its tax on productions surpasses the cost of production and on
merchandise the profit on its sale;

* when it constrains the manufacturer to manufacture at a loss and the
merchant to sell at a loss;

* when its principles, judged by its acts, indicate a progression from
partial to a universal confiscation.--

Ineluctably every phase of disease engenders the evil which follows:
it is like a poison the effects of which spread or pass onwards. Each
function, affected by the derangement of the adjacent one, becoming
disturbed in its turn. The perils, mutilation and suppression of
property diminish available securities as well as the courage that risks
them, that is to say, the mode of, and disposition to, make advances.
Through a lack of funds, useful enterprises languish, die out or are
not undertaken. Consequently, the production, supply, and sale of
indispensable articles slacken, become interrupted and cease altogether.
There is less soap and sugar and fewer candles at the grocery, less wood
and coal in the wood-yard, fewer oxen and sheep in the markets, less
meat at the butcher's, less grain and flour at the corn-exchange, and
less bread at the bakeries. As articles of prime necessity are scarce
they become dear; as people contend for them their dearness increases;
the rich man ruins himself in the struggle to get hold of them,
while the poor man never gets any, and the bare necessities become
unattainable.

II. Conditions in 1793. A Lesson in Market Economics.

Economical effect of the Jacobin policy from 1789 to 1793.
--Attacks on property.--Direct attacks.--Jacqueries, effective
confiscations and proclamation of the socialist creed.
--Indirect attacks.--Bad administration of the public funds.
--Transformation of taxation and insignificance of the
returns.--Increased expenditures.--The War-budget and
subsistence after 1793.--Paper money.--Enormous issues of
it.--Credit of the Assignats run down.--Ruin of Public
creditors and of all private credit.--Rate of interest
during the Revolution.--Stoppage of trade and industry.--Bad
management of new land-owners.--Decrease of productive
labor.--Only the small rural land-owner works
advantageously.--Why he refuses Assignats.--He is no longer
obliged to sell his produce at once.--High cost of food.--It
reaches a market with difficulty and in small quantities.
--The