on by individually independent concerns. But he is liable to err in his calculations, and all the more as he is not allowed much time to consider his ventures. He is not the only merchant in the world; hundreds and thousands of competitors lie in wait to profit by every favorable opportunity; whoever first espies it carries off the prize. Under such circumstances quickness is a necessity; it will not do to reflect long, to inquire much; the capitalist must venture. Yet he may lose. So soon as there is a great demand for a commodity in any market, it flows thither in large quantities until it exceeds the digestive powers of the market. Then prices tumble; the merchant must sell cheap, often at a loss, or seek another market with his goods. His losses in this operation may be large enough to ruin him.
Wherever the modern system of production for sale is well developed, any given market is either excessively or inadequately supplied. This may lead to the result that in response to some extraordinary cause, the overstocking of the market becomes so excessive that the losses of the merchants may be unusually heavy and a large number of them become unable to meet their liabilities; that is. they fail. Under such circumstances we have a first-class commercial crisis.
So long as small production was the leading form of industry, the extent and intensity of commercial crises could not but be limited. Whatever the call, it was not then possible to increase rapidly the total amount of commodities at any one place. Under the regime of hand-work or small industry, production is not capable of any
