id knowledge of prices, the enormous
growth of touting and advertising, have broken up the local and personal
character of commerce, and tend to make the whole world one complete and
even arena of competition. Thus the fortunate possessor of some
commercial advantage, however trifling, which enables him to produce
more cheaply or sell more effectively than his fellows, can rapidly
acquire their trade, unless they are able to avail themselves of the new
machinery, or special skill, or other economy which he possesses. This
consideration enables the large capitalist in all businesses where large
capital contains these advantages, or the owner of some large natural
monopoly, who can most cheaply extract large quantities of raw material,
to crush in free competition the smaller businesses. In proportion as
business is becoming wider and more cosmopolitan, these natural
advantages of large capital over small are able to assert themselves
more and more effectively. In certain branches of trade, which have not
yet been taken over by elaborate machinery, or where everything depends
upon the personal activity and intelligence, and the detailed
supervision of a fully interested owner, the small capitalist may still
hold his own, as in certain branches of retail trade. But the general
movement is in favour of large businesses. Everywhere the big business
is swallowing up the smaller, and in its turn is liable to be swallowed
by a bigger one. In manufacture, where the cosmopolitan character is
strongest, and where machinery plays so large a part, the movement
towards vast businesses is most marked; each year makes it more rapid,
and more general. But in wholesale and retail distribution, though
somewhat slower, the tendency is the same. Even in agriculture, where
close personal care and the limitations of a local market temper the
larger tendency, the recent annals of Western America and Australia
supply startling evidence of the concentrative force of machinery. The
meaning of this movement in capital must not be mistaken. It is not
merely that among competing businesses, the larger showing themselves
the stronger survive, and the smaller, out-competed disappear. This of
course often happens. The big screw-manufacturer able to provide some
new labour-saving machinery, to advertise more effectively, or even to
sell at a loss for a period of time, can drown his weaker competitors
and take their trade. The small tradesman can no longer