manifest the desirability of combination, yet desirability does not necessarily mean practicability.
As a general law in economics it may be stated that the tendency to combination increases as the number of competitors decreases and the amount of capital for each competing plant increases. The tendency for both these conditions to manifest themselves in our industrial world is almost too well known to mention.
In 1880 there were 1,943 plants with a combined capital of $62,000,000 manufacturing agricultural implements; in 1890 there were but 910 plants, while the capital invested had more than doubled. The number of plants engaged in manufactures of leather decreased in the same period from 5,424 to 1,596, while the capital involved increased from 67 to 81 millions. When the statistics for 1900 are published, the trend to concentration will be still more clearly shown.
As has been delineated, the volume of production has been constantly rising owing to the development of modern machinery. There were three channels to carry off these products. The first channel carrying off the products destined to be consumed by the workers. This channel is in rock-bound banks that cannot enlarge owing to she competitive wage system preventing wages rising pro rata with increased efficiency. Wages are based upon cost of living
