» As, e.p., the era of p^^speHly 1897-1M2 took Its start from the demand for Buppliea caused by tbe Spanlsb-AmericaD Wax, though other favorable clrcumalaQCBB acted to give it volome. Mr. Carver, puwibly following BUggeationa glveti by SpIethoS'a discussion, has ■Dggesied that the lines of boBinflss tn which the favorabla initial disturbance ames are necesaarilj those engaged in the production of •' prodnoer'B goods " ; the reason for this being that, in the nature ot the owe, " tha valoa of produoer's gooda tends to fluotiute mors
iture ol H
orsvio- ^M
THE THEORY OF MODERN WELFARE 195
By new investments, as well as by extending the operations of the plants already employed, business men forthwith endeavor to take advantage of Buch a rise. The endeavor to market an increased supply of the things for which there is an enlarged demand, brings on an increased demand and an advance of prices in those lines of industry from which the concerns that had the initial advantage draw their supplies. In part by actual increase of demand and in part through a lively anticipation of an advanced demand, aggressive business enterprise extends its ventures and pushes up prices in remoter lines of industry. This transmission of the favorable disturbance of business (substantially a psychological phenomenon) follows very promptly under modem conditions, so that any differential advantage that accrues at the outset to the particular line of industry upon which the initial disturbance falls is presently lost or greatly lessened. In the meantime extensive contracts for future performance are entered into in all directions, and this extensive implication of
leotly tban the value of consumer's goods," InBamuch m the value of produoer'H goods varies somewbaC ae Ibe magQilude of the margin of