The owners of these debentures
are in fact joint capitalists with the nominal owner of the business.
They prefer to lend their capital, because they hope to enjoy a portion
of the gain and security which belongs to a large business as compared
with a small one. Along with this coming together of small capitals to
make a large capital, there is a constant centralization and
organization of business ability. It is not uncommon for the owner of a
small and therefore failing business to accept a salaried post in the
office of some great business firm. So too we find the son of a small
tradesman, recognizing the hopelessness of maintaining his father's
business, takes his place behind the counter of some monster house.
Sec. 2. How Competition affects Capital.--Now the force which brings about
all these movements is the force of competition. Every increase of
knowledge, every improvement of communication, every breakdown of
international or local barriers, increases the advantage of the big
business, and makes the struggle for existence among small businesses
more keen and more hopeless. It is the desire to escape from the heavy
and harassing strain of trade competition, which practically drives
small businesses to suspend their mutual hostilities, and to combine. It
is true that most of the large private businesses or joint stock
companies are not formed by this direct process of pacification. But for
all that, their _raison d'etre_ is found in the desire to escape the
friction and waste of competition which would take place if each
shareholder set up business separately on his own account.
Pages:
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244