HE VIE IV S 95
American industry has had, during the past century, and especially during the last fifty years, an ample and magnificent development. Production has increased nearly fivefold during the last thirty years (1860-90). None of the great nations of the world have equaled the United States in this respect. This industry shows a marked tendency to concentration. Production increases, but the number of establish- ments diminishes. For example, the manufacturers of agricultural machinery numbered 2,076 in 1870 and produced a value of $52,000,- 000; and in 1890 the number of factories had fallen to 910, but these produced $82,000,000. The small industry retires. The " trusts " are inevitable; they are the result of liberty, and they are also a menace to liberty.
The American is an inventor; the number of patents issued after examination is a proof of it. The American is quick to use improved methods, and competition and high wages compel him to adopt the best appliances. When wages rise, managers are prompted to substi- tute machinery for hand work ; and with larger production wages tend to rise. Managers cannot afford to tolerate indolent workmen at high wages ; thus workmen become more alert and energetic. Will the machine drive out the workman ? The workman is tempted to think machines are his enemy, especially at the time of change. All economic evolution occasions loss of capital, displacement of men, individual cases of suffering, which social sympathy seeks to mitigate. It is unfair to judge the general tendency from short views. From the dawn of civilization improved tools have caused occasional pain, but, on the whole, steady improvement for the race. Census returns show an absolute and relative increase in the number of workmen, and consumption absorbs the products of industry. The viforking class, in compensation for passing crises, enjoys a triple advantage — a larger demand for labor, wages higher on account of increased productivity, and commodities at a lower price. All society participates in the last source of gain.
Demand and supply react upon each other. Americans boast of the largest consumption to each inhabitant, and many of their econo- mists consider this intensity of consumption as the stimulant of their industry, and as the cause of their high wages. There is never too much wealth, although it may be improperly distributed. The Ameri- can business manager goes straight forward, seeing gain and desirous of securing it quickly. Therefore he uses machinery, and requires of his workmen all they can do. He has himself arisen from the working
