Page:On the economy of machinery and manufactures - Babbage - 1846.djvu/274

240 ore to be smelted, and that ultimately the metals at present almost infusible, such as platinum, titanium, and others, might be brought into common use, and thus effect a revolution in the arts.

(296.) Supposing, on the occurrence of a glut, that new and cheaper modes of producing are not discovered, and that the production continues to exceed the demand, then it is apparent that too much capital is employed in the trade; and after a time, the diminished rate of profit will drive some of the manufacturers to other occupations. What particular individuals will leave it must depend on a variety of circumstances. Superior industry and attention will enable some factories to make a profit rather beyond the rest; superior capital in others will enable them, without these advantages, to support competition longer, even at a loss, with the hope of driving the smaller capitalists out of the market, and then reimbursing themselves by an advanced price. It is, however, better for all parties, that this contest should not last long; and it is important, that no artificial restraint should interfere to prevent it. An instance of such restriction, and of its injurious effect, occurs at the port of Newcastle, where a particular act of parliament requires that every ship shall be loaded in its turn. The Committee of the House of Commons, in their Report on the Coal Trade, state that, "Under the regulations contained in this act, if more ships enter into the trade than can be profitably employed in it, the loss produced by detention in port, and waiting for a cargo, which must consequently take place, instead of falling, as it naturally would,