But in many trades the ever-growing variety of commodities, and those rapid changes of fashion which now extend their baneful influence through almost every rank of society, weight the balance even more heavily against the small dealer, for he cannot keep a sufficient stock to offer much variety of choice, and if he tries to follow any movement of fashion closely, a larger proportion of his stock will be left stranded by the receding tide than in the case of a large shopkeeper.Again, in some branches of the clothing and furniture and other trades the increasing cheapness of machine-made goods is leading people to buy ready-made things from a large store instead of having them made to order by some small maker and dealer in their neighbourhood.Again, the large shopkeeper, not content with receiving travellers from the manufacturers, makes tours either himself or by his agent in the most important manufacturing districts at home and abroad; and he thus often dispenses with middlemen between him and the manufacturer.A tailor with moderate capital shows his customers specimens of many hundreds of the newest cloths, and perhaps orders by telegraph the selected cloth to be sent by parcels' post.Again, ladies often buy their materials direct from the manufacturer, and get them made up by dressmakers who have scarcely any capital.Small shopkeepers seem likely always to retain some hold of the minor repairing trades: and they keep their own fairly well in the sale of perishable food, especially to the working classes, partly in consequence of their being able to sell goods on credit and to collect small debts.In many trades however a firm with a large capital prefers having many small shops to one large one.Buying, and whatever production is desirable, is concentrated under a central management; and exceptional demands are met from a central reserve, so that each branch has large resources, without the expense of keeping a large stock.The branch manager has nothing to divert his attention from his customers; and, if an active man, with direct interest in the success of his branch, may prove himself a formidable rival to the small shopkeeper; as has been shown in many trades connected with clothing and food.
7.We may next consider those industries whose geographical position is determined by the nature of their work.
Country carriers and a few cabmen are almost the only survivals of small industry in the carrying trade.Railways and tramways are constantly increasing in size, and the capital required to work them is increasing at an even greater rate.The growing intricacy and variety of commerce is adding to the advantages which a large fleet of ships under one management derives from its power of delivering goods promptly, and without breach of responsibility, in many different ports; and as regards the vessels themselves time is on the side of large ships, especially in the passenger trade.(11*) As a consequence the arguments in favour of the State's undertaking business are stronger in some branches of the carrying trade than in any other, except the allied undertakings of carrying away refuse, and bringing in water, gas, etc.(12*)The contest between large and small mines and quarries has not so clearly marked a tendency.The history of the State management of mines is full of very dark shadows; for the business of mining depends too much on the probity of its managers and their energy and judgment in matters of detail as well as of general principle, to be well managed by State officials: and for the same reason the small mine or quarry may fairly be expected, other things being equal, to hold its own against the large one.But in some cases the cost of deep shafts, of machinery and of establishing means of communication, are too great to be borne by any but a very large business.
In agriculture there is not much division of labour, and there is no production on a very large scale; for a so-called "large farm" does not employ a tenth part of the labour which is collected in a factory of moderate dimensions.This is partly due to natural causes, to the changes of the seasons and to the difficulty of concentrating a great deal of labour in any one place; but it is partly also due to causes connected with varieties of land tenure.And it will be best to postpone discussion of all of them till we come to study demand and supply in relation to land in the sixth Book.
NOTES:
1."Manufacture" is a term which has long lost any connection with its original use: and is now applied to those branches of production where machine and not hand work is most prominent.
Roscher made the attempt to bring it back nearer to its old use by applying it to domestic as opposed to factory industries: but it is too late to do this now.
2.See Babbage's instance of the manufacture of horn.Economy of Manufactures, ch.XXII.
