ed for procuring crude
materials,--such is the order.

_Effect of an Increase of Both Labor and Capital._--It is clear that a
certain increase of capital might practically neutralize the increase
of population, in so far as the movements thus far considered are
concerned, and a greater increase of capital would reverse the
original downward movement caused by the increase of labor and result
in a permanent upward movement toward the subgroups _A'''_, _B'''_,
and _C'''_. In this case the men occupy themselves more and more in
making the higher form utilities. They make finer clothing, costlier
furniture, etc., and the new production requires proportionately less
raw material than did the old. This is the supposition which
corresponds to the actual facts. Capital is increasing faster than
labor, and consumption is growing relatively more luxurious;
dwellings, furnishings, equipage, clothing, and food are improving in
quality more than they are increasing in quantity. Goods of high cost
are predominating more and more, and the subgroups that produce them
are getting larger shares of both labor and capital. Population drifts
locally toward centers of manufacturing and commerce. It moves toward
cities and villages in order to get into the subgroups which have
there their principal abodes. The growth of cities is the visible sign
of an upward movement of labor in the subgroup series.

_A Change in the Relative Size of General Groups._--If all the steady
movements of labor and capital were stated, it would appear that a
relative increase in the amount of labor, as compared with the amount
of capital, would enlarge the three general groups, _AA'''_, _BB'''_,
and _CC'''_, and reduce the comparative size of the general group
_HH'''_, which maintains the fund of capital by making good the waste
of active instruments. Gain in capital estimated per capita would
cause relatively more of the labor and more of the fund of capital to
betake itself to the group _HH'''_. The movement toward the upper
subgroups which is actually going on is attended by a drift toward
this general group. An increase of luxurious consumption and an
enlargement of the permanent stock of capital goods go together.

_Regularity and Slowness of Movements caused by Changes in the Amounts
of Labor and Capital._--The important fact about the movements thus
far traced is that they are steady and slow. They do not often call
for taking out of one part of the syste