876 . .. REPORT—1896. 
The Salvation Army tea trade is lucrative. They supply (with a philanthropic 
capital) ‘the best possible teas at the lowest price at which they can be purchased 
elsewhere.’ But those who pledge themselves (as they are asked to do) to buy 
their teas do not thereby themselves pay towards the support of the Army. 
Those who actually pay are the merchants and others who are engaged in the tea 
trade, whose business is philanthropically diverted, and who are thus made to 
contribute to the funds of the Salvation Army not merely without their consent 
but to their detriment. 
In regard to the philanthropic employment of labour in institutions, instances 
are given showing the economic and social results of such interference upon 
unskilled labour, and the principles that should limit and guide its introduction 
are stated. 
2. Trade Combinations and Prices. By H. J. Faux, IA. 
‘Definitions. Trada Combination an ambiguous term; Combinations of Capital 
and Combinations of Labour. Misuse of word Trust for former. A distinctive 
terminology suggested. 
Trade Combmation in general. Its general effect. 
Combinations of Capital primarily Trusts for Partners or Shareholders and not 
Public Trusts. Their Formation and Constitution actual and ultimate or ideal. 
Brief history of Combinations of Capital. Distinction between old monopolies 
created by law and voluntary combinations. Purpose of Combinations. Protessed 
and Actual:—Reduction of cost; advance of price, Indirect effect of premium- 
hunting, and of Stock-Exchange value of shares in a business upon management 
of combinations and prices. 
Liffect on prices.—Difference between effect of combinations of capital and com- 
binations of labour. Actual effect and ideal or ultimate effect. Four stages. 
First, monopoly complete or tentative. Second, competition with tacit combina- 
tion of competitors. Third, thorough competition. Fourth, survival of fittest by 
ultimate economy, (A) Effect upon cost. Economy of material. Concentration 
of work, Elaboration of new methods from larger views. Better synthesis and 
organisation. (B) Effect upon distribution. Larger production tends to better 
arrangement of sales. Its various effects upon prices. Wider acquaintance with 
consumers and demand. Lconomy in handling. Direction of channels of distri- 
bution. Indirect effect through reaction upon cost of knowledge gained in distribu- 
tion. Collateral effects on prices of allied products. 
Remedies for evils of primitive stages of combination.—General remedies are 
better statistics and more knowledge of economics in industrial world. Education 
of commercial men as industrial trustees. Growing experience of public, both as 
shareholders and consumers. Mistrust of uneducated plutocrats and their methods. 
Methods of inducing ultimate economies of combination. Example of railways 
and banks. 
Ultimate effect on prices.—Progress towards a rational ideal of profit and 
industrial methods accelerated by combination. Law of average operates. Forces 
tending to produce result. Trade of individuals menaced, selfish instincts tend to 
economy ; trade of country attacked, patriotic instincts add to effort. Increase of 
education and the new industrial religion. The artist’s view of production. The 
worthy product and its price. 
3. Les Crises Commerciales. By Monsieur CLimEntT JUGLAR. 
Statistics indicative of commercial activity during long periods of time exhibit 
an ebb and flow extending over a variable number of years, and due to some 
owerful force acting continuously in the same direction for a considerable time. 
he movement so observed is more or less uniform in all countries at the same 
time. The circulation of banks in England, France, and America, since 1800 
affords an example. The cyclical period is not constant, but the credit-movement 
