The producers news., 1927-04-01

THE PRODUCERS NEWS
most essential to the development of capitalism.
Under these we have concentration of produc-
ton, reinforced development of engineering and in
particular of machine production. concentration
and Capitalization of capital, and the extreme
sharpening of the struggle between individuals
and groups in society.
Let us explain each of these nbenomena ma
tive to capitalism.
8. IN WHAT DOES THE CONCENTRATION
OF CAPITAL CONSIST AND WHY is
THIS PHENOMENON INEVITABLE UN-
DER CAPITALISM?
The concentration of production consists in the
fact that medium and large-scale capitalist pro-
duction conquers and supplants small production,
and among the medium and large capitalist en-
terprses it is always the larger and still larger
ones that obtain the upper hand and survive in
the struggle.
Present-day large capitalist factories and plants
sometimes contain more than ten thousand en-
ployes with a tremendous number Of machines
and buildings They appeared, however. compare
lively recently and grew up on the ruins of the
small and medium sized enterprises which had
been crushed by them. The explanation of this
is, that in competition on the market only those
enterprises conquer, which are able to put out
the cheapest and best quality commodities. with
the greatest advantages for the buyer; and this
can be done easiest of all by the largest produc-
tive unit
Large-scale production in comparison with
small and less concentrated production. has a
whole series of advantages, based upon which it
supplants the small and medium-sized economic
units. In Russia the growth of large-scale pro-
duction was strengthened owing to the fact that
foreign capital organized large undertakings from
the first Already in 1902 the very large enter
prises employed nearly one-half of all the indus
trial workers of Russia
9. WHAT ARE THE ADVANTAGES OF
LARGE-SCALE PRODUCTION OR CONCEN-
TRATION OF PRODUCTION.
First: The larger the scale of production the
sooner can it introduce and the better can it use
more perfected but at the same time. bigger and
dearer machines and apparatus and improved
methods of production. And the more perfect the
technique the effective is the labor, and the
less does the commodity cost the capitalistentre-
preneur.
Second: The larger the scale of production the
sooner and the more broadly can it employ all
The methods of unification and division (speciali
zation) of labor, unattainable for the small pro-
ducer. And these methods, particularly the divi-
sion specialization of labor-raise most power
fully the productivity of labor
Third: Large-scale production has the possibili-
ty Of saving, of economizng expenses on buildings,
the flttlng-out and maintenance of the premises,
illumination and heat, use Of labor power Of by
products and refuse in the purchase of raw ma
terlals and all other necessities in the obtaining
of credit in marketing, etc.
Finally: Small and medium enterprises find
completely inaccessible to them number of
branches of industry which can be equipped only
with the highly-developed and powerful engineer
ing methods, possible only to the very biggest
enterprises, such the construction of steam en-
gines, battleships the tremendous present-dav
machines, etc.
IO' WHAT DOES THE CONCENTRATION OF
PRODUCTION LEAD TO?
The immediate consequence of the victory Of
large-scale production over small production under
capitalism IS the ruin of the small and medium
employers, the artisans and small entrepreneurs
md their proetarizaton, i e., their passing over
into the ranks of the wage-workers and employees
Into the ranks of the proetariat
This circumstance has in turn detrimental
effect on the struggle Of the working mass for
better condition of labor by increasing the num-
Der of unemployed
(To be continued next week.