more which might be enumerated, combined to produce this one effect. By the opening of wider markets and the accompanying reduction of the costs of production and transportation, there comes production for the world-market, and consequently the necessity for cheap production which, in its turn, can be met only by a constantly extending division of labor, i. e., by the more perfectly developed division of the work into its simplest mechanical processes; this in turn brings about a constantly increasing output.
We are on the ground here of action and reaction. Each of these circumstances is a cause for the other, and the latter then reacts upon the former, and extends it and increases its scope.
It must be clear that the production of an article in enormous quantities—its production for the world-market—is, in general, possible only if the costs of production of the article are low and if also its transportation is cheap enough not to raise its price essentially. Production in enormous quantities demands a wholesale market, and a wholesale market for any commodity can be obtained only by its low price, which makes it available for a very large number of consumers; thus the low cost of production and transportation of any commodity brings about its production on a huge scale in enormous quantities. It must also be clear, on the other hand, that the production of a commodity in enormous quantities causes and increases its cheapness. A manufacturer, for instance, who turns out 200,000 pieces of cotton goods in a year, is able, because he procures his raw material more cheaply on a large scale and because the profit on his capital and the interest on his plant is distributed over so large a number of pieces, to market each piece, within certain limits, at a far lower price than the manufacturer who produces yearly only 5,000 such pieces. Greater cheapness of production leads accordingly to production on a large scale. This results, in turn, in greater cheapness; this in its own turn brings
