F.— ECONOMIC SCIENCE AND STATISTICS. 



108 



When account is taken of contribution to the national product, the 

 data for 1923 show the following result (subject to gross product being a 

 comparative index of net product) : — 



Value of Product 

 (1000 dollars). 



5—20 



21—100 



101—500 



501—1000 



over 1000 



This last table shows in the most striking way the degree of leadership 

 which has been obtained by the small number of large establishments. 

 And so far as it is large establishments which enter into combinations, 

 their influence over policy and prices is increased. 



More detailed examination of particular industries shows that it is 

 not only in the great industries that this result holds good. No relation 

 exists between size of industry, expressed in persons employed, and scale 

 of production, or concentration of power. Some quite small industries 

 stand high on the list by both these tests. 



Germany is more typical of older countries where family businesses 

 have played a larger part than in America. In Germany also, the Cartel 

 system was, until the war, the usual way of obtaining control, and it tended, 

 as compared with the Trusts, to maintain the smaller establishments. 

 The following gives a pre-war comparison, from which the very small 

 establishments are eliminated : — 



For France, the general form of the table at the Census of 1921 is 

 similar. As regards this country, the only data available are those of the 

 capitalisation of Joint Stock Companies. Over the period 1919 to 1925, 

 of all companies registered, only 2-6 per cent, had a capitalisation of over 

 £200,000, while over 67 per cent, were capitalised below £10,000. 



In the conditions which these results show, the largest producers 

 inevitably feel themselves drawn together in order to create an administra- 

 tion for their industry. Evolution has given them a possible leadership 

 which they desire to confirm. The large fringe of smaller producers is 

 felt to be an obstacle to this purpose. The position of the large producers 

 gives them an oversight over the market the confirmation of which means 

 the organisation of the industry against inroads and uncertainties, overlap 



