of capital goods has overtaken the lowered capitalization of inveBtmeuts before the shock-eCEect of the liquidation has worn oS. Hence depression is normal to the industrial situation under the consummate regime of the machine, so long as competition ifl unchecked and no deus ex mackina interposes.'
The persistent defection of reasonable profits calls for a remedy. The remedy may be sought in one or the other of two directions : (1) in an increased unproductive consumption of goods ; or (2) in an elimination of that " cutthroat " competition that keeps profits below the " reasonable " level. If enough of the work or of the output is turned to wasteful expenditures, so as to admit of but a relatively slight aggregate saving, as counted by weight and' tale, profitable prices can be maintained on the old basis of capitalization. If the waste is sufficiently large, the current investment in additional industrial equipment will not be sufficient to lower prices appreciably through competition.*