Or the work increases, and the demand remains.
Now each of these four combinations may, or may not, produce a competition upon one side of the contract only. This must be explained.
If demand diminishes, and work remains the same, which is the first case, either those who furnish the work will enter into competition, in which case they will hurt each other, and prices will fall below the reasonable standard of the even balance; or they will not enter into competition, and then prices continuing as formerly, the whole demand will be supplied, and the remainder of the work will lie upon hand.
This is a symptom of decaying trade.
Let us now, on the other hand, suppose demand to increase, and work to remain as before.
This example points out no diminution on either side, as was the case before, but an augmentation upon one; and is either a symptom of growing luxury at home, or of an increase in foreign trade.
Here the same alternation of circumstances occurs. The demanders will either enter into competition and raise the price of work, or they will enter into no competition; but being determined not to exceed the ordinary standard of the perfect balance, will defer making their provision till another time, or supply themselves in another market; that is to say, the new demand will cease as soon as it is made, for want of a supply.
Whenever, therefore, this perfect balance of work and demand is overturned by the force of a simple competition, or by one of the scales preponderating, one of two things must happen; either a part of the demand is not answered, or a part of the goods is not sold.
These are the immediate effects of the overturning of the balance.
Let me next point out the object of the statesman’s care, relatively to such effects, and shew the consequences of their being neglected.