The Kinetic Theory of Economic Crises 29 



As we ascend in the psychic scale', the more psychic elements 

 can only be modified as they correspond to the materialistic basis 

 or substructure already provided for them. Thus we have 

 already seen that there can be a geographical expansion of the 

 market only as new countries are opened up, or as new inventions 

 disclose wider possibilities in old countries, either by redeeming 

 waste places, by more intensive cultivation, or by stimulating 

 new desires and exchanges. # Statically considered, all the ele- 

 ments of a complete conjuncture are to be taken as reciprocally 

 harmonious. While it is true that machines — a quasi-materialis- 

 tic part-conjuncture — can not be employed, however adapted to 

 the soil, climate, etc., unless a sufficient market— a psychic con- 

 ception — is at hand, or capable of being worked up within a 

 reasonably short time, it is also true that some of the elements 

 are to be taken as prior in the field, as it were. — as more ancient 

 and permanent, and as exacting conformity from the others. 

 This hierarchy of elements exists in a continuous row or series, 

 beginning with the most materialistic and passing over into the 

 more psychic. Thus not one of the improvements that form a 

 part of the materialistic or quasi-materialistic conjuncture but 

 was in the beginning vigorously conditioned by the crust of the 

 earth. In fact, large classes of improvements are denominated 

 by that philosophy of language which is the best proof of the 

 predominance of the social mind over the individual conscious- 

 ness — "discoveries."' Chemical discoveries are manifestly but the 

 isolation of chemical properties of the crust of the earth for man's 

 behoof. In principle, mechanical inventions are in no respect 

 different. Once "discovered" or "invented," improvements blend 

 into the crust of the earth, become to man a part of it, — become 

 in fact first conjuncture and then environment. 



Next in the hierarchy we have to note the institutions them- 

 selves. They are in turn conditioned upon the more materialistic 

 elements — the crust of the earth and the properties of it that 

 have been isolated for man's advantage. Thus we are brought 

 back to the question of the unavoidableness of the industrial 

 classes, that is to say, of the classification of persons engaged in 

 industry. This follows as surely from the use of machinery as 



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