recent years in the relations of labor and capital, and how clearly and unmistakably these changes are consequents or derivatives from a more potent and antecedent agency.
Machinery is now recognized as essential to cheap production. Nobody can produce effectively and economically without it, and what was formerly known as domestic manufacture is now almost obsolete. But machinery is one of the most expensive of all products, and its extensive purchase and use require an amount of capital far beyond the capacity of the ordinary individual to furnish. There are very few men in the world possessed of an amount of wealth sufficient to individually construct and own an extensive line of railway or telegraph, a first-class steamship, or a great factory. It is also to be remembered that for carrying on production by the most modern and effective methods large capital is needed, not only for machinery, but also for the purchasing and carrying of extensive stocks of crude material and finished products. Sugar can now be, and generally is, refined at a profit of an eighth of a cent a pound, and sometimes as low as a sixteenth; or in other words, from eight to sixteen pounds of raw sugar must now be treated in refining in order to make a cent; from eight hundred to sixteen hundred pounds to make a dollar, from eighty thousand to one hundred and sixty thousand pounds to make a hundred dollars, and so on. The mere capital requisite for providing and carrying the raw material necessary for the successful prosecution of this business, apart from all other conditions, places it, therefore, of necessity beyond the reach of any ordinary capitalist or producer. It has been before stated that, in the manufacture of jewelry by machinery, one boy can make up nine thousand sleeve-buttons per day; four girls also, working by modern methods, can put together in the same time eight thousand collar-buttons. But to run an establishment with such facilities the manufacturer must keep constantly in stock thirty thousand dollars' worth of cut ornamental stones, and a stock of cuff-buttons that represents nine thousand different designs and patterns. Hence from such conditions have grown up great corporations or stock companies, which are only forms of associated capital organized for effective use and protection. They are regarded to some extent as evils; but they are necessary, as there is apparently no other way in which the work of production and distribution, in accordance with the requirements of the age, can be prosecuted. The rapidity, however, with which such combinations of capital are organizing for the purpose of promoting industrial and commercial undertakings on a scale heretofore wholly unprecedented, and the tendency they have to crystallize into something far more complex than what has been familiar to the public as corporations, with the impressive names of syndicates, trusts, etc., also constitute one of the remarkable features of modern business methods.
And when once a great association of capital has been effected, it
