336 SMALL INDUSTRIES AND 



the reverse but because the capitalist wh6 

 establishes a factory emancipates himself from 

 the wholesale and retail dealers in raw materials ; 

 and especially, because he emancipates himself 

 from the buyers of his produce and can deal 

 directly with the wholesale buyer and exporter ; 

 or else he concentrates in one concern the 

 different stages of fabrication of a given pro- 

 duce. The pages which Schulze-Gawernitz gave 

 to the organisation of the cotton industry in 

 England, and to the difficulties which the 

 German cotton-mill owners had to contend 

 with, so long as they were dependent upon 

 Liverpool for raw cotton, are most instructive 

 in this direction. And what characterises the 

 cotton trade prevails in all other industries as 

 well. 



If the Sheffield cutlers who now work in 

 their tiny workshops, in one of the above- 

 mentioned buildings supplied with wheel-power, 

 were incorporated in one big factory, the chief 

 advantage which would be realised in the 

 factory would not be an economy in the costs 

 of production, in comparison to the quality 

 of the produce ; with a shareholders' company 

 the costs might even increase. And yet the 

 profits (including wages) probably would be 

 greater than the aggregate earnings of the 

 workers, in consequence of the reduced costs 



