"Its magnitude may be inferred from the saying current at the time that ninety-five per cent of industrial and commercial enterprises failed, which merely meant that in this proportion of instances capitalists wasted their investments in trying to fill a demand which either did not exist or was supplied already. If that estimate were even a remote suggestion of the truth, it would serve to give an idea of the enormous amounts of accumulated profits which were absolutely wasted in competitive expenditure. And it must be remembered also that when a capitalist succeeded in displacing another and getting away his business the total waste of capital was just as great as if he failed, only in the one case it was the capital of the previous investor that was destroyed instead of the capital of the newcomer. In every country which had attained any degree of economic development there were many times more business enterprises in every line than there was business for, and many times as much capital already invested as there was a return for. The only way in which new capital could be put into business was by forcing out and destroying old capital already invested. The ever-mounting aggregation of profits seeking part of a market that was prevented from increasing by the effect of those very profits, created a pressure of competition among capitalists which, by all accounts that come down to us, must have been like a conflagration in its consuming effects upon capital. "Now tell us something about the other great waste of profits by which the pressure in the cistern was sufficiently relieved to permit production to go on--that is to say, the expenditure of profits for the employment of labor in the service of luxury. What was luxury?" "The term luxury, in referring to the state of society before the Revolution, meant the lavish expenditure of wealth by the rich to gratify a refined sensualism, while the masses of the people were suffering lack of the primary necessities." "What were some of the modes of luxurious expenditure indulged in by the capitalists?" "They were unlimited in variety, as, for example, the construction of costly palaces for residence and their decoration in royal style, the support of great retinues of servants, costly supplies for the table, rich equipages, pleasure ships, and all manner of boundless expenditure in fine raiment and precious stones. Ingenuity was exhausted in contriving devices by which the rich might waste the abundance the people were dying for. A vast army of laborers was constantly engaged in manufacturing an infinite variety of articles and appliances of elegance and ostentation which mocked the unsatisfied primary necessities of those who toiled to produce them." "What have you to say of the moral aspect of this expenditure for luxury?"