In earlier times, when trade was more
localized, and the small manufacturer or merchant had his steady
customers, and stood on a slowly and carefully acquired reputation, it
was not so easy for a new competitor to take his trade by the offer of
some small additional advantage. But the opening up of wider
communication by cheap postage, the newspaper, the railway, the
telegraph, the general and rapid 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.
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