duction of consumable goods to the production of "means of production," but because the capitalistic countries have so far, owing to the fact that some have developed capitalistically earlier than others, and there still remain capitalistically undeveloped countries, had an outside world into which they could dump the products which they could not themselves absorb, whether those products be cotton or iron goods. This does not, by any means, mean that the change from cotton to iron goods, as the leading product of the foremost capitalistic countries, is of no significance. On the contrary, it is of the greatest importance. But its significance is entirely different from that ascribed to it by Tugan-Baranowsky. It shows the beginning of the end of capitalism. As long as the capitalist countries exported goods for consumption there was hope for capitalism, within those countries. There was no telling, then, how great the capacity of the non-capitalistic outside world for the consumption of capitalistically produced goods would be, nor how long it would last. The growth of machinery in the export from the foremost capitalistic countries at the expense of consumption-goods shows that spheres which were formerly outside of capitalism, and therefore served as a dumping-ground for its surplus-product, are drawn into the world of capitalism. That as their own capitalism develops they produce their own consumption-goods. Now that they are in the initial stages of their capitalistic development, they need the capitalistically produced machinery. But soon they will not need this either. They will produce their own iron-goods just as they now produce their own cotton or other consumption-goods. Then they will not only cease to be a receptacle for the surplus-product of the now only capitalistic countries, but they will produce a surplus product of their own which they will find it hard to dispose of.
There are other things which Tugan-Baranowsky might have observed had his vision not been obstructed by the details of capitalistic practice. Things, the observation of
