THE MANUFACTURER AND DOMESTIC MARKET 131 



cause they are the exception. When a large number of competitors 

 besiege the public, the conspicuousness of any one is lessened by 

 the eagerness of all. We have, in this country, in a generation been 

 introduced into an age of advertising. The very great advertisers 

 are yet conspicuous because they are not numerous. But when 

 the time comes, as it appears to be coming rapidly, that the multi- 

 tude of great advertisers in any single line is so large that the average 

 consumer is bewildered, then the retailer may again perform the 

 service he once performed; he will choose for the customer, and the 

 customer will follow his advice. Under such circumstances, unless 

 monopoly or some other combination of factors intervenes, the 

 manufacturer will feel a strong motive to control directly retail 

 establishments and so get a step closer to the consuming public 

 than advertising will bring him, and, if possible, distance his rivals. 



Conclusion 



In conclusion, let me recall briefly the chief points in the situa- 

 tion I have tried to picture, which is one phase of our evolution 

 from a raw-material producing to a manufacturing nation. Because 

 of its natural strength as a form of industry, and because of special 

 advantages accorded it in this country, manufacturing has in recent 

 years greatly increased its dominance in domestic commerce. In 

 the raw-material market this is shown first by the increased owner- 

 ship of materials of fixed quantity, stimulated by the fear of mono- 

 poly and the trust movement. Second, for materials easily repro- 

 ducible, it is shown by the advent of the manufacturer on the market 

 of origin, and the causes which have brought him there are the 

 unsatisfactory condition of materials offered, the necessity of 

 taking part in financing the movement of raw materials, and railway 

 competition. The intermediate markets, we have seen, are being 

 depleted by the withdrawal of manufacturing concerns from them, 

 which either became parts of non-competitive groups during the 

 period of trust formation, or have become attached to other indus- 

 tries as by-product or waste-utilizing manufacturers. On the fin- 

 ished product market the dealer has been eliminated from some 

 lines of distribution by direct selling, which advertising has made 

 possible, or by the ownership of retail stores, the function of which 

 is to secure to the advertiser all of the profit his advertising will 

 create. In other lines of distribution the retail dealer has been 

 deprived of many of his functions by the use of packages, trade- 

 marks, guarantees, printed directions, and advertising. This has 

 resulted in a smaller margin of profit for the dealer and sharper 

 competition because of the increase of leader goods and side lines. 

 In his extremity the dealer has besought the protection of the manu- 



