evelopment of
manufacture, these checks were limited to single branches and single
markets; but the centralising tendency of competition which drives the
hands thrown out of one branch into such other branches as are most
easily accessible, and transfers the goods which cannot be disposed of in
one market to other markets, has gradually brought the single minor
crises nearer together and united them into one periodically recurring
crisis. Such a crisis usually recurs once in five years after a brief
period of activity and general prosperity; the home market, like all
foreign ones, is glutted with English goods, which it can only slowly
absorb, the industrial movement comes to a standstill in almost every
branch, the small manufacturers and merchants who cannot survive a
prolonged inactivity of their invested capital fail, the larger ones
suspend business during the worst season, close their mills or work short
time, perhaps half the day; wages fall by reason of the competition of
the unemployed, the diminution of working-time and the lack of profitable
sales; want becomes universal among the workers, the small savings, which
individuals may have made, are rapidly consumed, the philanthropic
institutions are overburdened, the poor-rates are doubled, trebled, and
still insufficient, the number of the starving increases, and the whole
multitude of "surplus" population presses in terrific numbers into the
foreground. This continues for a time; the "surplus" exist as best they
may, or perish; philanthropy and the Poor Law help many of them to a
painful prolongation of their existence. Others find scant means of
subsistence here and there in such kinds of work as have been least open
to competition, are most remote from manufacture. And with how little
can a human being keep body and soul together for a time! Gradually the
state of things improve; the accumulations of goods are consumed, the
general depression among the men of commerce and manufacture prevents a
too hasty replenishing of the markets, and at last rising prices and
favourable reports from all directions restore activity. Most of the
markets are distant ones; demand increases and prices rise constantly
while the first exports are arriving; people struggle for the first
goods, the first sales enliven trade still more, the prospective ones
promise still higher prices; expecting a further rise, merchants begin to
buy upon speculation, and so to withdraw from co