This deplorable trend given to business by the excessive prevalence and efficiency of the machine I industry can, however, be set aside by several I factors more or less extraneous to the industrial system proper. Even within the mechanical system of industry there is at least one factor of some consequence that consistently acta to mitigate the trend indicated, and that may even put it in abeyance from time to time. As has been pointed out above, questions of business are fundamentally questions of price. A decline of prices which
With the above aD&lyeiB may be contrasted Man's discussian of the declining rale of promts and the mBoner In which be coocetTee oTerpTodQction, speoulatloa, and crises to arise oat of the tendrncy of profits to a minlmuin. (Kapilat, vol. III. ch. XV.) In the same codnection, see Togan-Barauowsky's criticism of Hara, Handel*ltri»eii, ch. VTL
THE THEORY OF MODERN WELFARE 235
widely touches biisinesa interests brings depression. Conversely, an appreciable advance in prices, from 1 whatever cause, means improvement in business. | Such an advance in prices may come of a speculative movement; which Jn turn may arise from a variety of circumstances, for the most part circumstances extraneous to the industrial proceas. For the present, however, the question of a speculative movement is best left on one side. Another factor touches the case more intimately. As has more than once been the case, prices may be advanced through a freer supply of the precious metals, or by an inflation of the currency, or a more facile use of credit instruments as a subsidiary