If industrial crises follow periods of overwork as inevitably as night follows day, bringing after them lockouts and poverty without end, they also lead to inevitable bankruptcy. So long as the manufacturer has credit he gives free rein to the rage for work. He borrows, and borrows again, to furnish raw material to his laborers, and goes on producing without considering that the market is becoming satiated and that if his goods don't happen to be sold, his notes will still come due. At his wits' end, he implores the banker; he throws himself at his feet, offering his blood, his honor. “A little gold will do my business better”, answers the Rothschild. “You have 20,000 pairs of hose in your warehouse; they are worth 20c. I will take them at 4c.” The banker gets possession of the goods and sells them at 6c or 8c, and pockets certain frisky dollars which owe nothing to anybody: but the manufacturer has stepped back for a better leap. At last the crash comes and the warehouses disgorge. Then so much merchandise is thrown out of the window that you cannot imagine how it came in by the door. Hundreds of millions are required to figure the value of the goods that are destroyed. In the last century they were burned or thrown into the water. [5]

But before reaching this decision, the manufacturers travel the world over in search of markets for the goods which are heaping up. They force their government to annex Congo, to seize on Tonquin, to batter down the Chinese Wall with cannon shots to make an outlet for their cotton goods. In previous centuries it was a duel to the death between France and England as to which should have the exclusive privilege of selling to America and the Indies. Thousands of young and vigorous men reddened the seas with their blood during the colonial wars of the sixteenth, seventeenth and eighteenth centuries.

There is a surplus of capital as well as of goods. The financiers no longer know where to place it. Then they go among the happy nations who are