The Trade Depression: Its Causes and Its Remedies.

Chapter I.

Introduction.

Depression in trade exists at the present moment in every civilised country, and as the space at my disposal does not permit an inquiry which shall embrace them all, I propose to confine my examination to Great Britain, as being the country whose interests are specially in view; referring only to other countries by way of enforcing and illustrating the lessons which the subject affords.

In trade and commerce depression may be likened to what in nature is the ebb tide, while expansion corresponds to the flow. They are inter-acting agents, and relative terms.

While expansion goes on the seeds of depression are being sown; and while depression exists the seeds of expansion are in like manner being sown. When trade is brisk and profitable a rush in takes place; mills are set up, furnaces blown in, mines opened, ships built, and labour is in great demand. For a time "all goes merry as a marriage bell," warnings are unheeded. Presently the reaction comes, depression sets in, and the reverse of these processes takes place; capital becomes profitless, labour unemployed, general suffering supervenes, until at length the wheel turns, and the upward movement once more commences.