For many decades past we had not seen such a cheapness of wheat and manufactured goods as we saw in 1883-1884, and yet in 1886 the country was suffering from a terrible crisis. People said, of course, that the cause of the crisis was over-production. But over-production is a word utterly devoid of sense if it does not mean that those who are in need of all kinds of produce have not the means for buying them with their low wages. Nobody would dare to affirm that there is too much furniture in the crippled cottages, too many bedsteads and bedclothes in the workmen’s dwellings, too many lamps burning in the huts, and too much cloth on the shoulders, not only of those who used to sleep (in 1886) in Trafalgar Square between two newspapers, but even in those households where a silk hat makes a part of the Sunday dress. And nobody will dare to affirm that there is too much food in the homes of those agricultural labourers who earn twelve shillings a week, or of those women who earn from fivepence to sixpence a day in the clothing trade and other small industries which swarm in the outskirts of all great cities. Over-production means merely and simply a want of purchasing powers amidst the workers. And the same want of purchasing powers of the workers was felt everywhere on the Continent during the years 1885-1887. After the bad years were over, a sudden revival of international trade took place; and, as the British exports rose in four years (1886 to 1890) by nearly 24 per cent., it began to be said that there was no reason for being alarmed by foreign competition; that the decline of exports in 1885-1887 was only temporary, and general in Europe; and that England, now as of old, fully maintained her dominant position in the international trade. It is certainly true that if we consider exclusively the money value of the exports for the years 1876 to 1895, we see no permanent decline, we notice only fluctuations. British exports, like commerce altogether, seem to show a certain periodicity. They fell from £201,000,000 sterling in 1876 to £192,000,000 in 1879; then they rose again to £241,000,000 in 1882, and fell down to £213,000,000 in 1886; again they rose to £264,000,000 in 1890, but fell again, reaching a minimum of £216,000,000 in 1894, to be followed next year by a slight movement upwards.