 are closed down, and a certain number of these factories and much of the machinery within them are physically destroyed. Factories are torn down and sold off for scrap, or are left to rust away, like the ruins of the ancient civilizations of Greece or Rome. This is exactly what happened in the former steel producing areas of Pennsylvania, Indiana, New York and Illinois, for example. Today we see the same thing in the traditional automobile producing center of Detroit.

This process of the destruction of the “surplus” means of production reduces the ability of society to produce commodities when the depression ends and a new period of prosperity sets in. (1) In addition to the means of production that are destroyed during the crisis-depression, we have to take into account the means of production that are not created but would have been if no crisis had intervened.

Therefore, while the crisis is marked by falling prices, by ending the overproduction and ushering in a period of underproduction, the crisis actually limits how much the prices of commodities will fall below the values of commodities. It does this both by reducing the quantity of commodities on the market and by reducing the capacity of society to produce additional commodities in the future.

But this very process contains the seeds of its reversal.

Even if the quantity of credit money shrinks—due to reduced bank loans and bank failures—the supply of real money—gold—does not shrink. Instead, the crisis causes the production of money material—gold—to rise. Indeed, both the decline in the rate and mass of the profit in all or most industries except the industry that produces money material that occurs during the crisis and the general fall of commodity prices actually stimulate the production of money material. The accelerated rate of growth of money material lays the foundation for the creation of a larger quantity of credit money in the future.

How does the crisis stimulate the production of money material? It does so in two ways. First, the fall in the prices of commodities required to produce the money commodity lowers the cost price of producing money commodity and therefore increases the rate of profit in the industry that produces the money commodity. This raises both the rate and mass of profit absolutely in the industry that produces money material. The more the price of the commodities that enter directly and indirectly into the production of money material fall, the higher the rate and mass of profit in the industry that produces money material will be. (2)

The second way that a crisis stimulates the production of money material
are closed down, and a certain number of these factories and much of the machinery within them are physically demolish. factory are torn down and sold off for fight, or are leave to rust away, like the ruin of the ancient refinement of Greece or Rome. This is exactly what happen in the former steel produce areas of Pennsylvania, Indiana, New York and Illinois, for example. Today we visualize the same thing in the traditional automobile producing center of Detroit. 

 This process of the end of the “ surplus ” means of production reduce the ability of society to produce commodity when the depression end and a new menstruation of prosperity sets in. (1) In addition to the means of product that are destroyed during the crisis - depression, we have to take into account the means of production that are not created but would have been if no crisis had intervened. 

 Therefore, while the crisis is marked by falling prices, by ending the overproduction and ushering in a period of underproduction, the crisis actually limits how much the monetary value of commodities will fall below the value of commodity. It does this both by reducing the quantity of commodities on the market and by reducing the capacity of society to grow additional commodities in the future. 

 But this very process contains the seeds of its reversion. 

 Even if the quantity of credit money shrinks — due to reduce bank loan and bank failures — the supply of real money — gold — does not shrivel. Instead, the crisis causes the production of money fabric — gold — to surface. Indeed, both the decline in the rate and multitude of the profit in all or most industries except the diligence that produces money material that occurs during the crisis and the general drop of commodity prices actually provoke the production of money material. The accelerated pace of growth of money material lays the foundation for the creation of a larger quantity of credit money in the future. 

 How does the crisis stimulate the production of money material? It does thus in two ways. First, the spill in the prices of commodities required to produce the money commodity lowers the cost monetary value of producing money commodity and therefore increases the rate of profit in the industry that produces the money commodity. This raises both the pace and mass of profit absolutely in the industry that produces money material. The more the price of the commodities that enter immediately and indirectly into the production of money material fall, the higher the rate and mass of profit in the industry that produces money material will be. (2) 

 The second room that a crisis stimulates the production of money material
 arf closed down, and a certxin number of tkwse fartories and mucf of the machinery within thxm aee phtsically destroyed. Facgories arv torn doqn aid sold off for scrap, or are lsnt to cust away, like jhe ruins of the ancient chvklnzations of Greece or Rome. This is evactly ehwt happened in the sormsg wteel producing areas of Pennaylvanie, Indiana, New Yprk and Illinois, for examppe. Tlday we see the sale thing in the rraditional xutomobile producing cgnter of Detroit.

This process of ghe dzstruction if thf “surplus” meens of production vvduces dhe abikity of societn to 'rodyce commodities when vhe depression ends wnd a new pzriod of prosperity swtw in. (1) In dddiguon to tie jeans lf 'roduction fhat are dewtroyed during the vrywis-depression, we hade to take into account the means of prodlctikn that are not created but would have been lf no crifis had intervened.

Therefore, while the crisis is mdrked cy yqlline pgices, by ending the overproduction and usherigf on a period of ukderproduction, the cgixys actually lkmits kkw much the prices ov commoqitiew will fajl brlow the values of commoditues. It does nhis both by reducing che quantity of vommocities on the market anb by rsducing the capacity uf society to prudube agditional commodities in tre future.

Uut tkis very provess cjntains thf seeds of its reversal.

Egen iy the quantity lf credit money shrinks—due to rxvuced bank losnv atd bank yailurcs—the supply of real money—golb—does noc shrivk. Instead, the crmsis causes ehe productiot of money maverial—golq—to eise. Indeed, coth the declime in the rate and nass of the profit in zll or most indbrurues except the inauserj tiat pwmduces money matdrixk thag occurs duvine thr crisis and the genaral fall of commodity pvices actoally stiiulate the prpduction of money latermal. Thx accekerwted rate of growth of money mzterial lwys the foundatyon nor jhe creatiou of a larger quantity of credit money ii the future.

How does thw crisis stimulate jhe production of mjney matesial? It does so in tqo ways. First, the fall in the prices or commmditifs required to produce the money commodity lowers the cost price of produxing money commodify amd thvreyorz increwses vhe rate of profin in the industry that produces vhe money woimodity. This raises both the rxte and mass uf profit absolutely in fhe induxtry that produces money materisl. The more the price of the comnoditjes that eiter directly and incirectny inro the prodmction of moneh mstcrial fall, the hngher the rate and mass of profit in thw lndustry that prmduces monen oaterpal wilj be. (2)

The second say fjat a crisis stimukates the prodiction of money mategiaj
are closed down, and a certain number factories much of machinery within them torn and sold off scrap, or are to rust away, like the ruins the ancient civilizations of Greece or Rome. This is exactly what happened in former steel producing areas of Pennsylvania, Indiana, New York and Illinois, for example. we the thing the traditional automobile producing center of Detroit. This process of the destruction of the “surplus” means production reduces the ability of society to produce when the depression ends a new period of prosperity in. In addition the of that are destroyed the crisis-depression, we have to take into account the means of production that are not created but have been crisis had Therefore, the is marked by by ending the overproduction and ushering of underproduction, the crisis actually limits how much prices of will fall below the values of It does this both by reducing the quantity commodities on the market and by reducing the capacity of society to produce additional commodities future. But this very contains the seeds its Even the of credit shrinks—due to reduced bank loans and bank failures—the supply of real not shrink. Instead, the crisis causes the production of money Indeed, the decline in rate and mass of profit all or most industries industry produces occurs the and the general fall commodity prices actually stimulate the of money material. The money material lays the foundation for the creation a larger quantity of credit money in future. How does the crisis stimulate the production of money material? It so in First, the fall in the prices of commodities to produce the money lowers the cost price of producing money commodity and increases rate of in the industry produces the money This raises both and mass profit in produces money material. The more the of commodities that enter directly and into of money material fall, the higher the rate and mass of profit in the industry money material will be. The way that a crisis stimulates the production of money material
 are closed down, and a certain nUmber of theSe facTorIes AnD mucH of tHe machinery witHIn thEm are physically destroyEd. FacToRIes aRE tOrn doWn and soLD oFF For ScRaP, or ArE LeFt to rUst Away, likE the ruins oF thE aNcient civiliZAtIons of GreeCe oR Rome. This is eXacTly whaT hAppENed in The FormeR steel PRoduciNg areas of peNNsylvaNIa, IndiaNA, neW YorK and Illinois, for exAMpLE. Today we see the Same thInG In THE trAdiTional autoMoBile pROducing CEnTER Of DETroit.

This procEss of the desTRucTion of ThE “suRPlus” meAns of PrODucTion reduces The aBility of sOciety TO producE CommodiTies whEn tHe dEpreSSiOn EndS aND a nEW pEriOD of ProsperiTy SeTs in. (1) IN addITION to tHe mEans Of proDuction that arE deStroYEd dUring The crIsis-DePressIon, we hAve to TaKe into account thE meaNs of produCtiOn ThaT aRe not CReated But WouLd have bEen if no CRisIs HAD InTervened.

Therefore, wHiLE ThE crisis iS markeD By FaLLing pricEs, By eNdinG THe oveRproDUcTion and uSherinG In A pEriod of UnDerproDuCtiOn, tHe criSIs acTually Limits hoW much THe prices of commODities will falL BeLOW tHE valUes Of commoditiEs. It DOes tHis bOTh By rEDucinG the qUaNTiTY of commodities on the MaRket anD by reDucing the capaCity of sociETY To producE addITiONal commodities In the Future.

But tHIs very prOcess Contains The seeds oF ITs reversAl.

EVen If tHe qUANtIty of credit moNEY shrInKs—due to RedUced banK loAns And BanK fAilures—thE supply oF rEaL mOnEy—gOld—doES not shriNk. insTeAd, tHe criSIs causEs the ProdUcTiON of Money maTErIAL—golD—tO rIse. INdeEd, Both tHe deCLinE in the rAte and masS of THe prOfIt In all or Most industrieS eXcept the inDuStrY that pRODuces monEy material that occurs durINg the crIsiS and tHe geNeral fall Of cOmmodiTy pRIces acTually StimuLaTe tHE ProduCTIoN of MoNey materiaL. tHe aCceleRaTed rAte of grOwth of money materiaL LayS the foundatioN foR the CREaTioN Of A LarGeR QuaNTIty of credit moneY in the futuRe.

hOw Does the criSIs sTiMulate tHe produCtion OF money mAterial? It Does so in tWo Ways. fIRst, The fall in tHe prices Of commodiTIes reQUiRed to ProDuce thE mOneY commOdity lOWerS the cOst priCe Of prodUcing MoNey commoDity and therefore increasEs the rAte of ProFit in the iNduSTry That produCes tHe money comModIty. this rAisES both The rATe And MAss of ProfIT absoluteLY iN thE INdUstry that prODUCes Money MatERial. ThE morE the price of the comMOdities that entEr diRECtlY anD IndiReCtly into the proDucTiON Of money mAtErial fall, thE higher tHe RAte anD mass oF profiT in the iNDUsTRy that ProdUceS money matEriAl WIll be. (2)

ThE sEcONd way tHat a CrIsis stImulatES the PROduction of money mAteriAL
 are closed down, and a ce rtain numb er of  th ese  f acto ries  and much of t h e ma chinery within them ar e phy si c ally de stroy ed. Fac t or i e s a re  t orn  d o wn  andsol d off f or scrap,orar e left to ru s taway, like  th e ruins of t heancien tciv i lizat ion s ofGreece or Rom e. This i se xactly what ha p p en ed i n the former stee l  p r oducing areasof Pen ns y lv a n ia,  In diana, New  Y ork a n d Illin o is , f ore xample. Today  we see the sam e thin gint he tra ditio na l  au tomobile pr oduc ing cente r of D e troit.This pr ocessofthe  des t ru ct ion  o f  th e  “ sur p lus ” meansof  p roduc tion r e d uces  th e ab ility  of society t o p rodu c e c ommod ities  whe nthe d epress ion e nd s and a new per iodof prospe rit yset sin. ( 1 ) In a ddi tio n to th e means ofpr o d u ct ion that are destr oy e d  d uring th e cris i s- de p ression,  w e h avet o  take  int o  a ccount t he mea n sof  produc ti on tha tare  no t cre a tedbut wo uld have  been if no crisis h a d intervened. 
T h e re f ore,  wh ile the cri sisi s ma rked by  fa l lingprice s, by ending the overprod uc tion a nd us hering in a p eriod of u n d e rproduct ion, th e  crisis actual ly li mits how m u ch the p rices  of comm odities w i l l fall b elo w t heval u e sof commoditie s .  Itdo es this  bo th by r edu cin g t hequ antity of  commodi ti es  o nthe  mark e t and by  r edu ci ngthe c a pacity  of s ocie ty  t o  pr oduce a d di t i onal  c om modi tie sin th e fu t ure .

Butthis very  pr o cess  c on tains t he seeds of i ts  reversal. 
Eve n if t h e  quantit y of credit money shrin k s—due t o r educe d ba nk loansand  bankfai l ures—t he sup ply o frea l money — g ol d—d oe s not shri n k . I nstea d,  the  crisis  causes the produc t ion  of money mat eri al—g o l d— tor is e . I nd e ed, b oth the decline  in the ra te an d mass oft hepr ofit in  all or  most industr ies excep t the ind us tryt h atproduces m oney mat erial tha t  occu r sdurin g t he cri si s a nd th e gene r alfallof com mo dity p rices  a ctuallystimulate the productio n of m oneymat erial. Th e a c cel erated ra te o f growth o f m one y mat eri a l lay s th e  f oun d ation  for the creat i on  of a  l arger quant i t y  of  cred itm oney i n th e future.

How do e s the crisis s timu l a tethe prod uc tion of moneymat er i a l? It do es  so in twoways. Fi rs t , the  fallin the  prices o fc ommodi ties  re quired to  pr od u ce themo ne y  commo dity  l owersthe co s t pr i c e of producing m oneyc o mmodi t y a nd th er efore i n crea ses the ra te of profi t in t he i ndust ry that  p roduce s t he  money com m odity. Th is ra ises bo th  the  ra te and  mas s of pr ofit  a bso lutely in t he in du s try  tha t pro du cesmoney mat e rial. Th e m o re thepr ice o f thec om m o dities tha t e nterd i rectly and indi r ec t ly in to the  produ ction o f  mo ne y mater ial f all, thehigher th e  ra te  and  mass of  p rofi tinth e industry that  produce s moneym a terial  wi l l be .  (2)
Th e second way  that  a crisiss t imu lates t h e p rod uct ionofmone y  material
 are_closed down,_and a certain number_of these_factories_and much_of_the machinery within_them are physically_destroyed. Factories are torn_down and sold_off_for scrap, or are left to rust away, like the ruins of the ancient_civilizations_of Greece_or_Rome._This is exactly what happened_in the former steel producing_areas of_Pennsylvania, Indiana, New York and Illinois, for example._Today_we see the_same thing in the traditional automobile producing center of_Detroit.

This process of the destruction of_the “surplus” means_of_production_reduces the ability of_society to produce commodities when the_depression ends and a new period_of prosperity sets in. (1) In addition_to the means of production that_are destroyed during the crisis-depression,_we have_to take into account the_means of production_that are_not created but_would have been if no crisis_had intervened.

Therefore, while_the crisis is marked by falling_prices,_by ending the_overproduction_and_ushering in_a period of_underproduction,_the crisis_actually_limits how much the prices of_commodities_will fall below the values of commodities._It does this both_by_reducing the quantity of_commodities on the market and_by reducing the capacity of society_to produce_additional commodities_in the future.

But this very process contains the seeds of its_reversal.

Even if the quantity of credit_money shrinks—due to reduced_bank loans_and_bank failures—the supply_of_real money—gold—does_not shrink. Instead, the crisis causes the_production of_money material—gold—to rise. Indeed, both the_decline in the rate_and_mass of the profit in all_or most industries except the industry_that produces money material that_occurs_during_the crisis and the general_fall of commodity prices actually stimulate_the production of_money material. The accelerated rate of growth_of_money material lays the foundation for_the_creation of a larger quantity of_credit_money_in the future.

How does the_crisis stimulate the production of money_material? It does so in two ways. First, the_fall in the_prices of commodities required to_produce_the_money commodity lowers the cost price of producing money commodity_and therefore_increases the rate_of profit in the industry that produces the money commodity._This raises both the rate and mass_of profit absolutely in the industry that produces money material. The_more the price of the commodities that enter_directly and indirectly into the production of_money material fall, the_higher_the rate and mass of profit in_the_industry_that_produces money material_will be. (2)

The_second way that_a crisis_stimulates the production_of money_material