they do ordinarily require, there will be difficulty in disposing of the product. If two classes of mechanics each make things with the expectation of selling them to the other class, and they turn out to be such things as are not wanted in either case, there is sure to be stagnation of exchange and consequent suffering. Where all are working in ignorance of the requirements of others there are sure to be produced many things for which there will be no demand. This had been partially recognized by the government in your day and commissioners were appointed to collect statistics and make estimates in regard to the production of and probable demand for certain farm products. As the government became more intimately the servant of the people its services in this direction were greatly extended and inquiries covered many other departments beside that of farming. The government itself became a large consumer in operating its railroads, telegraphs, etc. Additional mileage had to be constructed to meet the growing business besides the renewals on account of wear and tear. By the publication in advance of the probable demands on the various sorts of industry it became possible to estimate approximately what amount of and what kind of product could be disposed of. A still more fruitful source of financial trouble was to be found in the spirit of recklessness and extravagance with which people spent their money when times were prosperous or booming. It seemed so easy then to get money and to pay debts that many thought it hardly worth while to do it, if there appeared a chance for a profitable speculation, and so instead of paying old debts they were very likely to incur fresh ones. But as the state became more and more involved in business affairs, it was able to advise what products would be in demand, when it was advisable to use caution and economy and when activity would be rewarded. The functions of the state as a medium of exchange between the producer and the consumer became rapidly extended, and before the close of the century it became the chief and in many things the only buyer and seller of the products in most common use, as well as the sole factor in all monopolies and in banking, insurance, and public amusements. It had not yet gone into manufacturing or farming except to the extent necessary to prevent combinations and private monopolies.” “I think I can see the advantage of this,” said I, “they probably held to the principle that competition is necessary to keep men up to their best in exertion and industry.”