th of the unit of capital in the developed modern
manufacturing business entails also a growth in the unit of labour,
though not a corresponding growth. The number of employees in a
business is larger in proportion as the business passes into the stage
of highest industrial organisation. In the United States in 1880 it
was estimated that the average number of employees in a manufacturing
business for the whole country was a little less than 11, but in the
chief manufacturing states of Massachusetts, Connecticut, and Rhode
Island it was about 25, while in Pittsburg, the great centre of iron
industry, it was more than 33.

Sec. 3. In addition to increased size we find increased and
ever-increasing complexity of structure in the business-unit. This has
proceeded in two directions, horizontally and laterally--that is to
say, by subdivision and accession of processes on the one hand, and by
an increased variety of products, and therefore of processes, upon the
other hand. The constantly growing specialisation of fixed capital and
of labour in our factories and workshops is a commonplace. Adam
Smith's famous pin manufactory, with its ten separate processes, has
been left far behind. In a modern shoe factory in the United States
there are sixty-four distinct processes. Grain, in the elaborate
machinery of a steam flour mill, passes through a score of different
stages, cleaning, winnowing, grinding, etc. The American machine-made
watch is the product of 370 separate processes. The organisation of a
modern textile factory provides a dozen different processes
contributing to the spinning or weaving of cotton or silk. New
processes of cleaning, finishing, and ornamenting are continually
being added. The subsidiary process of packing, the manufacture of
packing cases, the printing of labels, etc., are taken on in many
factories.[108] Many branches of production which were formerly
carried on in separate places and as separate business-units are
grouped together under the factory roof, or if still separated
locally, and executed by separate machinery and power, are related as
forming part of the same business, and are under the same management.
So in the woollen manufactures the preliminary processes of sorting
and cleansing, carding or combing, as well as the main processes of
spinning and weaving, fulling, dyeing, and finishing, each of which
was once committed to a separate and independent group of workers, are
now frequently fo