The times. [volume] (Richmond, Va.) 1890-1903, 1895-06-25
THE ECONOMIC LAWS RELATING TO
CONVERSATIONS OF CAPITAL.

Our discussion Sunday OF the principles
which relate 10 a combination 0f num-
bers for business purposes with great
concentration of capital. suggests further
remarks upon that subject. At the out
set OF these We repeat that 1t Is viola
ton Of common right for the law-making
power TO enact measures which will give
advantages to ono individual or set of in
| dividuals over another. The law is for
the benefit and the protection N all alike
and no one citizen has a right 10 "A bene-
1T from the Jaws that is not equally open
to every other citizen. This principle
must forever condemn all protective tariff
or other protective laws. combination
Of men or Of capital, therefore, which
depends for its success upon legislation
is founded in a violation OF common
right.
But there is no violation Of the right
OF any one when two men. or ten men.
or one hundred men. or one thousand
men. or any other number OF men re-
solve that they viii cooperate i'm their
business. and put all the capital each
ono has into a common treasury to be
operated under the joint direction Of all.
Nor is great success by such a combina-
ton prejudicial to the interests Of the
whole people. as Is shown by what has
resulted from the whole oil trade falling
under the dominion Of one concern, and
as is shown by railroad combinations
The combination OF railroads now known
as the Southern railroad has reduced
the cost OF transportation much more
than half OF what il was when the rail-
roads constituting II were separate or
CARNATIONS. When these facts are studied
1t viii be seen that they are results flow
ing from a genial and most bencfcent
law
In an article Of great ability by Edward
Atkinson. in the June No. Of the Bankers
Magazine. he remarks that the great
mass OF testimony taken by the Senate
Finance Committee. when 4 was from
1890 for some three years examining into
wages and prices, proves incontestibly
the following 10 be the great foundation
law Of the case--to-wit.: That the apuli-
cation of science and invention 10 bust
ness reduces the number Of persons en-
ployed. but 1t reduces also the cost OF
the product 10 the consumer and it in
tually employed when this law is stated
10 The workingman his first Impulse is TO
resen, the further improvement OF meth
DDS as ending employment for many
But he takes an erroneous view OF the
case. II is true that particular industries
come to be operated with fewer employees
but the great cheapening OF the product
causes an uncommoniy increased con-
sumption Of it. and this calls for the en- |
ployment of many additional operatives |
But the way in which the broadest in |
nuencc OF the principle manifcsts itself is |
in the fact that as products cheaper. the |
desire for an increasing variety OF pro-
ducts increases II things are dear
man viii content himself with the daily |
use OF. we win say. ten separate and |
different kinds OF articles But If every |
thing is very cheap he viii use one hun
dred different kinds Of articles. This calls
FER one hundred industries where there
were only ten when products were high.
The popular mind has taken a strong
set against large combinations OF capital.
but IT is very clearly case. Ike many
Others. where the popular mind has gone
all wrong. 1t is these large combina-
lions OF capital that enable producers
TO supply the articles al the smallest
cost A concern Ike the American To- |
bacco Company. for instance. buys It's
raw material directly mon, the producer
and sells 1t directly 10 the consumer
II has thus Topped of from the business
all the intermediate persons who former
ly lived on It. and necessarily. therefore.
Increased the prcfit that Is 10 b divided