e deeper economic cause which breaks down many of these attempts. The
direct fusion of the interests of employers and employed, and in some
measure of capital and labour, which is the object of the co-operative
movement, is a steadily growing force, whose successes may serve perhaps
better than any other landmark as a measure of the improving _morale_ of
the several grades of workers who show themselves able to adopt its
methods. But while co-operative distribution has thriven, the success of
co-operative workshops and mills has hitherto been extremely slow. A
considerable expansion of the productive work of the co-operative
wholesale societies within the last few years offers indeed more
encouragement. But at present only about 21/4 per cent. of English
industry and commerce, as tested by profits, is under the conduct of co-
operative societies. Hence, while it seems possible that the slow growth
in productive co-operation, and the more rapid progress of distributive
co-operation, may serve to point the true line of successful advance in
the future, the present condition of the co-operative movement does not
entitle it to rank as one of the most powerful and prominent industrial
forces. Though it may be hoped and even predicted that each movement in
the agglomerative development of capital and labour which presents the
two agents in larger and more organized shape, will render the work of
conciliation more peremptory and more feasible, it must be admitted that
all these conciliatory movements making for the direct fusion of capital
and labour, are of an importance subordinate to the larger evolutionary
force on which we have laid stress.

We see then the multitudinous units of capital and labour crystallizing
ever into larger and larger masses, moving towards an ideal goal which
would present a single body of organized capital and a single body of
organized labour. The process in each case is stimulated by the similar
process in the other. Each step in the organization of labour forces a
corresponding move towards organization of capital, and _vice versa_.
Striking examples of this imitative strategic movement have been
presented by the rapid temporary organization of Australian capital, and
by the effect of Dock Labourers' Unions in England in promoting the
closer co-operation of the capital of shipowners. By this interaction of
the two forces, the development in the organization of capital and
labour presents itself a