ABSTRACT
With the growth of the large undertaker, especially in the realm of finance, an ever larger field of activity is being brought beneath the influence of conscious control. Both the virtues and the failings of economic anarchy are still prominent factors in the economic world of to-day. The chief virtue of economic anarchy is that it gives fluidity to economic life and unfettered sway to the principle of substitution. There are two principal ways in which the instability of conditions of economic anarchy are seen. First, it is seen in the tendency to a recurring condition of general oversupply beyond the point where goods can be sold at prices which yield the anticipated profits. Second, there will exist a tendency to specific oversupply in particular industries. Any influence which by decreasing costs or expanding demand widened the margin of profits would tend to stimulate business activity with its possibility of oversupply and subsequent relapse.
