218 APPENDIX
“The whole argument amounts to this: Free Trade increases productive forces. When manufactures keep advancing, when wealth, when the productive forces, when, in a word, productive capital increases, the de- mand for labor, the price of labor, and consequently the rate of wages, rises also.”
The most favorable condition for the workingman is the growth of capital. This must be admitted: when capital remains stationary, commerce and manufacture are not merely stationary but decline, and in this case the workman is the first victim. He will suffer before the capitalist. And in the case of the growth of capital, under the circumstances, which, as we have said, are the best for the workingman, what will be his lot? He will suffer just the same. The growth of capital implies the accumulation and the concentration of capital. This centralisation involves a greater division of labor and a greater use of machinery. The greater division of labor destroys the especial skill of the laborer; and by putting in the place of this skilled work labor which anyone can perform it increases com- petition among the workers.
This competition becomes more fierce as the division of labor enables a single man to do the work of three. Machinery accomplishes the same result on a much larger scale. The accumulation of productive capital forces the industrial capitalist to work with constantly increasing means of production, ruins the small manu- facturer, and throws him into the ranks of the prole- tariat. Then, the rate of interest falling in proportion as capital accumulates, the people of small means and retired tradespeople, who can no longer live upon their small incomes, willbe forced to look out for some busi- ness again and ultimately to swell the number of prole-
