Aconsiderablepartofthesavingoflaboureffectedbysubstitutingthelargesystemofproductionforthesmall，isthesavinginthelabourofthecapitaliststhemselves。Ifahundredproducerswithsmallcapitalscarryonseparatelythesamebusiness，thesuperintendenceofeachconcernwillprobablyrequirethewholeattentionofthepersonconductingit，sufficientlyatleasttohinderhistimeorthoughtsfrombeingdisposableforanythingelse:whileasinglemanufacturerpossessingacapitalequaltothesumoftheirs，withtenoradozenclerks，couldconductthewholeoftheiramountofbusiness，andhaveleisuretooforotheroccupations。Thesmallcapitalist，itistrue，generallycombineswiththebusinessofdirectionsomeportionofthedetails，whichtheotherleavestohissubordinates:thesmallfarmerfollowshisownplough，thesmalltradesmanservesinhisownshop，thesmallweaverplieshisownloom。Butinthisveryunionoffunctionsthereis，inagreatproportionofcases，awantofeconomy。Theprincipalintheconcerniseitherwasting，intheroutineofabusiness，qualitiessuitableforthedirectionofit，orheisonlyfitfortheformer，andthenthelatterwillbeilldone。Imustobserve，however，thatIdonotattach，tothissavingoflabour，theimportanceoftenascribedtoit。Thereisundoubtedlymuchmorelabourexpendedinthesuperintendenceofmanysmallcapitalsthaninthatofonelargecapital。Forthislabourhoweverthesmallproducershavegenerallyafullcompensation，inthefeelingofbeingtheirownmasters，andnotservantsofanemployer。Itmaybesaid，thatiftheyvaluethisindependencetheywillsubmittopayapriceforit，andtosellatthereducedratesoccasionedbythecompetitionofthegreatdealerormanufacturer。Buttheycannotalwaysdothisandcontinuetogainaliving。Theythusgraduallydisappearfromsociety。Afterhavingconsumedtheirlittlecapitalinprolongingtheunsuccessfulstruggle，theyeithersinkintotheconditionofhiredlabourers，orbecomedependentonothersforsupport。
2。Productiononalargescaleisgreatlypromotedbythepracticeofformingalargecapitalbythecombinationofmanysmallcontributions;or，inotherwords，bytheformationofjointstockcompanies。Theadvantagesofthejointstockprinciplearenumerousandimportant。
Inthefirstplace，manyundertakingsrequireanamountofcapitalbeyondthemeansoftherichestindividualorprivatepartnership。NoindividualcouldhavemadearailwayfromLondontoLiverpool;itisdoubtfulifanyindividualcouldevenworkthetrafficonit，nowwhenitismade。Thegovernmentindeedcouldhavedoneboth;andincountrieswherethepracticeofco—operationisonlyintheearlierstagesofitsgrowth，thegovernmentcanalonebelookedtoforanyoftheworksforwhichagreatcombinationofmeansisrequisite;becauseitcanobtainthosemeansbycompulsorytaxation，andisalreadyaccustomedtotheconductoflargeoperations。Forreasons，however，whicharetolerablywellknown，andofwhichweshalltreatfullyhereafter，governmentagencyfortheconductofindustrialoperationsisgenerallyoneoftheleasteligibleofresources，whenanyotherisavailable。
Next，thereareundertakingswhichindividualsarenotabsolutelyincapableofperforming，butwhichtheycannotperformonthescaleandwiththecontinuitywhichareevermoreandmorerequiredbytheexigenciesofasocietyinanadvancingstate。
IndividualsarequitecapableofdespatchingshipsfromEnglandtoanyoreverypartoftheworld，tocarrypassengersandletters;thethingwasdonebeforejointstockcompaniesforthepurposedwereheardof。Butwhen，fromtheincreaseofpopulationandtransactions，aswellasofmeansofpayment，thepublicwillnolongercontentthemselveswithoccasionalopportunities，butrequirethecertaintythatpacketsshallstartregularly，forsomeplacesonceoreventwiceaday，forothersonceaweek，forothersthatasteamshipofgreatsizeandexpensiveconstructionshalldepartonfixeddaystwiceineachmonth，itisevidentthattoaffordanassuranceofkeepingupwithpunctualitysuchacircleofcostlyoperations，requiresamuchlargercapitalandamuchlargerstaffofqualifiedsubordinatesthancanbecommandedbyanindividualcapitalist。Thereareothercases，again，inwhichthoughthebusinessmightbeperfectlywelltransactedwithsmallormoderatecapitals，theguaranteeofagreatsubscribedstockisnecessaryordesirableasasecuritytothepublicforthefulfilmentofpecuniaryengagements。Thisisespeciallythecasewhenthenatureofthebusinessrequiresthatnumbersofpersonsshouldbewillingtotrusttheconcernwiththeirmoney:
asinthebusinessofbanking，andthatofinsurance:tobothofwhichthejointstockprincipleiseminentlyadapted。Itisaninstanceofthefollyandjobberyoftherulersofmankind，thatuntilalateperiodthejointstockprinciple，asageneralresort，wasinthiscountryinterdictedbylawtothesetwomodesofbusiness;tobankingaltogether，andtoinsuranceinthedepartmentofsearisks;inordertobestowalucrativemonopolyonparticularestablishmentswhichthegovernmentwaspleasedexceptionallytolicense，namelytheBankofEngland，andtwoinsurancecompanies，theLondonandtheRoyalExchange。
Anotheradvantageofjointstockorassociatedmanagement，isitsincidentofpublicity。Thisisnotaninvariable，butitisanaturalconsequenceofthejointstockprinciple，andmightbe，asinsomeimportantcasesitalreadyis，compulsory。Inbanking，insurance，andotherbusinesseswhichdependwhollyonconfidence，publicityisastillmoreimportantelementofsuccessthanalargesubscribedcapital。Aheavylossoccurringinaprivatebankmaybekeptsecret;eventhoughitwereofsuchmagnitudeastocausetheruinoftheconcern，thebankermaystillcarryitonforyears，tryingtoretrieveitsposition，onlytofallintheendwithagreatercrash:butthiscannotsoeasilyhappeninthecaseofajointstockcompany，whoseaccountsarepublishedperiodically。Theaccounts，evenifcooked，stillexercisesomecheck;andthesuspicionsofshareholders，breakingoutatthegeneralmeetings，putthepublicontheirguard。
Thesearesomeoftheadvantagesofjointstockoverindividualmanagement。Butifwelooktotheothersideofthequestion，weshallfindthatindividualmanagementhasalsoverygreatadvantagesoverjointstock。Thechiefoftheseisthemuchkeenerinterestofthemanagersinthesuccessoftheundertaking。
Theadministrationofajointstockassociationis，inthemain，administrationbyhiredservants。Eventhecommittee，orboardofdirectors，whoaresupposedtosuperintendthemanagement，andwhodoreallyappointandremovethemanagers，havenopecuniaryinterestinthegoodworkingoftheconcernbeyondthesharestheyindividuallyhold，whicharealwaysaverysmallpartofthecapitaloftheassociation，andingeneralbutasmallpartofthefortunesofthedirectorsthemselves;andtheparttheytakeinthemanagementusuallydividestheirtimewithmanyotheroccupations，ofasgreatorgreaterimportancetotheirowninterest;thebusinessbeingtheprincipalconcernofnooneexceptthosewhoarehiredtocarryiton。Butexperienceshows，andproverbs，theexpressionofpopularexperience，attest，howinferioristhequalityofhiredservants，comparedwiththeministrationofthosepersonallyinterestedinthework，andhowindispensable，whenhiredservicemustbeemployed，is"themaster’seye"towatchoverit。
Thesuccessfulconductofanindustrialenterpriserequirestwoquitedistinctqualifications:fidelity，andzeal。Thefidelityofthehiredmanagersofaconcernitispossibletosecure。Whentheirworkadmitsofbeingreducedtoadefinitesetofrules，theviolationoftheseisamatteronwhichconsciencecannoteasilyblinditself，andonwhichresponsibilitymaybeenforcedbythelossofemployment。Buttocarryonagreatbusinesssuccessfully，requiresahundredthingswhich，astheycannotbedefinedbeforehand，itisimpossibletoconvertintodistinctandpositiveobligations。Firstandprincipally，itrequiresthatthedirectingmindshouldbeincessantlyoccupiedwiththesubject;shouldbecontinuallylayingschemesbywhichgreaterprofitmaybeobtained，orexpensesaved。Thisintensityofinterestinthesubjectitisseldomtobeexpectedthatanyoneshouldfeel，whoisconductingabusinessasthehiredservantandfortheprofitofanother。Thereareexperimentsinhumanaffairswhichareconclusiveonthepoint。Lookatthewholeclassofrulers，andministersofstate。Theworktheyareentrustedwith，isamongthemostinterestingandexcitingofalloccupations;thepersonalsharewhichtheythemselvesreapofthenationalbenefitsormisfortuneswhichbefallthestateundertheirrule，isfarfromtrifling，andtherewardsandpunishmentswhichtheymayexpectfrompublicestimationareoftheplainandpalpablekindwhicharemostkeenlyfeltandmostwidelyappreciated。Yethowrareathingisittofindastatesmaninwhommentalindolenceisnotstrongerthanalltheseinducements。
Howinfinitesimalistheproportionwhotroublethemselvestoform，oreventoattendto，plansofpublicimprovement，unlesswhenitismadestillmoretroublesometothemtoremaininactive;orwhohaveanyotherrealdesirethanthatofrubbingon，soastoescapegeneralblame。Onasmallerscale，allwhohaveeveremployedhiredlabourhavehadampleexperienceoftheeffortsmadetogiveaslittlelabourinexchangeforthewages，asiscompatiblewithnotbeingturnedoff。Theuniversalneglectbydomesticservantsoftheiremployer’sinterests，whereverthesearenotprotectedbysomefixedrule，ismatterofcommonremark;unlesswherelongcontinuanceinthesameservice，andreciprocalgoodoffices，haveproducedeitherpersonalattachment，orsomefeelingofacommoninterest。
Anotherofthedisadvantagesofjointstockconcerns，whichisinsomedegreecommontoallconcernsonalargescale，isdisregardofsmallgainsandsmallsavings。Inthemanagementofagreatcapitalandgreattransactions，especiallywhenthemanagershavenotmuchinterestinitoftheirown，smallsumsareapttobecountedfornexttonothing;theyneverseemworththecareandtroublewhichitcoststoattendtothem，andthecreditofliberalityandopenhandednessischeaplyboughtbyadisregardofsuchtriflingconsiderations。Butsmallprofitsandsmallexpensesoftenrepeated，amounttogreatgainsandlosses:
andofthisalargecapitalistisoftenasufficientlygoodcalculatortobepracticallyaware;andtoarrangehisbusinessonasystem，whichifenforcedbyasufficientlyvigilantsuperintendence，precludesthepossibilityofthehabitualwaste，otherwiseincidenttoagreatbusiness。Butthemanagersofajointstockconcernseldomdevotethemselvessufficientlytothework，toenforceunremittingly，evenifintroduced，througheverydetailofthebusiness，areallyeconomicalsystem。
Fromconsiderationsofthisnature，AdamSmithwasledtoenunciateasaprinciple，thatjointstockcompaniescouldneverbeexpectedtomaintainthemselveswithoutanexclusiveprivilege，exceptinbranchesofbusinesswhich，likebanking，insurance，andsomeothers，admitofbeing，inaconsiderabledegree，reducedtofixedrules。This，however，isoneofthoseover—statementsofatrueprinciple，oftenmetwithinAdamSmith。Inhisdaystherewerefewinstancesofjointstockcompanieswhichhadbeenpermanentlysuccessfulwithoutamonopoly，excepttheclassofcaseswhichhereferredto;butsincehistimetherehavebeenmany;andtheregularincreasebothofthespiritofcombinationandoftheabilitytocombine，willdoubtlessproducemanymore。AdamSmithfixedhisobservationtooexclusivelyonthesuperiorenergyandmoreunremittingattentionbroughttoabusinessinwhichthewholestakeandthewholegainbelongtothepersonsconductingit;andheoverlookedvariouscountervailingconsiderationswhichgoagreatwaytowardsneutralizingeventhatgreatpointofsuperiority。
Oftheseoneofthemostimportantisthatwhichrelatestotheintellectualandactivequalificationsofthedirectinghead。
Thestimulusofindividualinterestissomesecurityforexertion，butexertionisoflittleavailiftheintelligenceexertedisofaninferiororder，whichitmustnecessitybeinthemajorityofconcernscarriedonbythepersonschieflyinterestedinthem。Wheretheconcernislarge，andcanaffordaremunerationsufficienttoattractaclassofcandidatessuperiortothecommonaverage，itispossibletoselectforthegeneralmanagement，andforalltheskilledemploymentsofasubordinatekind，personsofadegreeofacquirementandcultivatedintelligencewhichmorethancompensatesfortheirinferiorinterestintheresult。Theirgreaterperspicacityenablesthem，withevenapartoftheirminds，toseeprobabilitiesofadvantagewhichneveroccurtotheordinaryrunofmenbythecontinuedexertionofthewholeoftheirs;andtheirsuperiorknowledge，andhabitualrectitudeofperceptionandofjudgment，guardthemagainstblunders，thefearofwhichwouldpreventtheothersfromhoardingtheirinterestsinanyattemptoutoftheordinaryroutine。
Itmustbefurtherremarked，thatitisnotanecessaryconsequenceofjointstockmanagement，thatthepersonsemployed，whetherinsuperiororinsubordinateoffices，shouldbepaidwhollybyfixedsalaries。Therearemodesofconnectingmoreorlessintimatelytheinterestoftheemployeeswiththepecuniarysuccessoftheconcern。Thereisalongseriesofintermediatepositions，betweenworkingwhollyonone’sownaccount，andworkingbytheday，week，oryearforaninvariablepayment。Eveninthecaseofordinaryunskilledlabour，thereissuchathingastask—work，orworkingbythepiece:andthesuperiorefficiencyofthisissowellknown，thatjudiciousemployersalwaysresorttoitwhentheworkadmitsofbeingputoutindefiniteportions，withoutthenecessityoftootroublesomeasurveillancetoguardagainstinferiorityintheexecution。Inthecaseofthemanagersofjointstockcompanies，andofthesuperintendingandcontrollingofficersinmanyprivateestablishments，itisacommonenoughpracticetoconnecttheirpecuniaryinterestwiththeinterestoftheiremployers，bygivingthempartoftheirremunerationintheformofapercentageontheprofits。Thepersonalinterestthusgiventohiredservantsisnotcomparableinintensitytothatoftheownerofthecapital;hutitissufficienttobeaverymaterialstimulustozealandcarefulness，and，whenaddedtotheadvantageofsuperiorintelligence，oftenraisesthequalityoftheservicemuchabovethatwhichthegeneralityofmastersarecapableofrenderingtothemselves。Theulteriorextensionsofwhichthisprincipleofremunerationissusceptible，beingofgreatsocialaswellaseconomicalimportance，willbemoreparticularlyadvertedtoinasubsequentstageofthepresentinquiry。
AsIhavealreadyremarkedoflargeestablishmentsgenerally，whencomparedwithsmallones，whenevercompetitionisfreeitsresultswillshowwhetherindividualorjointstockagencyishestadaptedtotheparticularcase，sincethatwhichismostefficientandmosteconomicalwillalwaysintheendsucceedinundersellingtheother。
3。Thepossibilityofsubstitutingthelargesystemofproductionforthesmall，dependsofcourse，inthefirstplace，ontheextentofthemarket。Thelargesystemcanonlybeadvantageouswhenalargeamountofbusinessistobedone:itimplies，therefore，eitherapopulousandflourishingcommunity，oragreatopeningforexportation。Again，thisaswellaseveryotherchangeinthesystemofproductionisgreatlyfavouredbyaprogressiveconditionofcapital。Itischieflywhenthecapitalofacountryisreceivingagreatannualincrease，thatthereisalargeamountofcapitalseekingforinvestment:andanewenterpriseismuchsoonerandmoreeasilyentereduponbynewcapital，thanbywithdrawingcapitalfromexistingemployments。
Thechangeisalsomuchfacilitatedbytheexistenceoflargecapitalsinfewhands。Itistruethatthesameamountofcapitalcanberaisedbybringingtogethermanysmallsums。Butthis（besidesthatitisnotequallywellsuitedtoallbranchesofindustry）supposesamuchgreaterdegreeofcommercialconfidenceandenterprisediffusedthroughthecommunity，andbelongsaltogethertoamoreadvancedstageofindustrialprogress。
Inthecountriesinwhichtherearethelargestmarkets，thewidestdiffusionofcommercialconfidenceandenterprise，thegreatestannualincreaseofcapital，andthegreatestnumberoflargecapitalsownedbyindividuals，thereisatendencytosubstitutemoreandmore，inonebranchofindustryafteranother，largeestablishmentsforsmallones。InEngland，thechieftypeofallthesecharacteristics，thereisaperpetualgrowthnotonlyoflargemanufacturingestablishments，butalso，whereverasufficientnumberofpurchasersareassembled，ofshopsandwarehousesforconductingretailbusinessonalargescale。Thesearealmostalwaysabletoundersellthesmallertradesmen，partly，itisunderstood，bymeansofdivisionoflabour，andtheeconomyoccasionedbylimitingtheemploymentofskilledagencytocaseswhereskillisrequired;andpartly，nodoubt，bythesavingoflabourarisingfromthegreatscaleofthetransactions;asitcostsnomoretime，andnotmuchmoreexertionofmind，tomakealargepurchase，forexample，thanasmallone，andverymuchlessthantomakeanumberofsmallones。
Withaviewmerelytoproduction，andtothegreatestefficiencyoflabour，thischangeiswhollybeneficial。Insomecasesitisattendedwithdrawbacks，rathersocialthaneconomical，thenatureofwhichhasbeenalreadyhintedat。Butwhateverdisadvantagesmaybesupposedtoattendonthechangefromasmalltoalargesystemofproduction，theyarenotapplicabletothechangefromalargetoastilllarger。When，inanyemployment，ther間imeofindependentsmallproducershaseitherneverbeenpossible，orhasbeensuperseded，andthesystemofmanywork—peopleunderOnemanagementhasbecomefullyestablished，fromthattimeanyfurtherenlargementinthescaleofproductionisgenerallyanunqualifiedbenefit。Itisobvious，forexample，howgreataneconomyoflabourwouldbeobtainedifLondonweresuppliedbyasinglegasorwatercompanyinsteadoftheexistingplurality。Whilethereareevenasmanyastwo，thisimpliesdoubleestablishmentsofallsorts，whenoneonly，withasmallincrease，couldprobablyperformthewholeoperationequallywell;doublesetsofmachineryandworks，whenthewholeofthegasorwaterrequiredcouldgenerallybeproducedbyonesetonly;evendoublesetsofpipes，ifthecompaniesdidnotpreventthisneedlessexpensebyagreeinguponadivisionoftheterritory。Werethereonlyoneestablishment，itcouldmakelowercharges，consistentlywithobtainingtherateofprofitnowrealized。Butwould。itdoso？Evenifitdidnot，thecommunityintheaggregatewouldstillbeagainer。sincetheshareholdersareapartofthecommunity，andtheywouldobtainhigherprofitswhiletheconsumerspaidonlythesame。Itis，however，anerrortosupposethatthepricesareeverpermanentlykeptdownbythecompetitionofthesecompanies。Wherecompetitorsaresofew，theyalwaysendbyagreeingnottocompete。Theymayrunaraceofcheapnesstoruinanewcandidate，butassoonashehasestablishedhisfootingtheycometotermswithhim。When，therefore，abusinessofrealpublicimportancecanonlybecarriedonadvantageouslyuponsolargeascaleastorenderthelibertyofcompetitionalmostillusory，itisanunthriftydispensationofthepublicresourcesthatseveralcostlysetsofarrangementsshouldbekeptupforthepurposeofrenderingtothecommunitythisoneservice。Itismuchbettertotreatitatonceasapublicfunction;andifitbenotsuchasthegovernmentitselfcouldbeneficiallyundertake，itshouldbemadeoverentiretothecompanyorassociationwhichwillperformitonthebesttermsforthepublic。Inthecaseofrailways，forexample，noonecandesiretoseetheenormouswasteofcapitalandland（nottospeakofincreasednuisance）involvedintheconstructionofasecondrailwaytoconnectthesameplacesalreadyunitedbyanexistingone;whilethetwowouldnotdotheworkbetterthanitcouldbedonebyone，andafterashorttimewouldprobablybeamalgamated。Onlyonesuchlineoughttobepermitted，butthecontroloverthatlineneveroughttobepartedwithbytheState，unlessonatemporaryconcession，asinFrance;andthevestedrightwhichParliamenthasallowedtobeacquiredbytheexistingcompanies，likeallotherproprietaryrightswhichareopposedtopublicutility，ismorallyvalidonlyasaclaimtocompensation。
4。Thequestionbetweenthelargeandthesmallsystemsofproductionasappliedtoagriculture——betweenlargeandsmallfarming，thegrandeandthepetiteculture——stands，inmanyrespects，ondifferentgroundsfromthegeneralquestionbetweengreatandsmallindustrialestablishments。Initssocialaspect，andasanelementintheDistributionofWealth，thisquestionwilloccupyushereafter:butevenasaquestionofproduction，thesuperiorityofthelargesysteminagricultureisbynomeanssoclearlyestablishedasinmanufactures。
Ihavealreadyremarked，thattheoperationsofagriculturearelittlesusceptibleofbenefitfromthedivisionoflabour。
Thereisbutlittleseparationofemploymentsevenonthelargestfarm。Thesamepersonsmaynotingeneralattendtothelivestock，tothemarketing，andtothecultivationofthesoil;butmuchbeyondthatprimaryandsimpleclassificationthesubdivisionisnotcarried。Thecombinationoflabourofwhichagricultureissusceptible，ischieflythatwhichMr。WakefieldtermsSimpleCo—operation;severalpersonshelpingoneanotherinthesamework，atthesametimeandplace。ButIconfessitseemstomethatthisablewriterattributesmoreimportancetothatkindofco—operation，inreferencetoagricultureproperlysocalled，thanitdeserves。Noneofthecommonfarmingoperationsrequiremuchofit。Thereisnoparticularadvantageinsettingagreatnumberofpeopletoworktogetherinploughingordiggingorsowingthesamefield，oreveninmowingorreapingitunlesstimepresses。Asinglefamilycangenerallysupplyallthecombinationoflabournecessaryforthesepurposes。Andintheworksinwhichanunionofmanyeffortsisreallyneeded，thereisseldomfoundanyimpracticabilityinobtainingitwherefarmsaresmall。
Thewasteofproductivepowerbysubdivisionofthelandoftenamountstoagreatevil，butthisapplieschieflytoasubdivisionsominute，thatthecultivatorshavenotenoughlandtooccupytheirtime。Uptothatpointthesameprincipleswhichrecommendlargemanufactoriesareapplicabletoagriculture。Forthegreatestproductiveefficiency，itisgenerallydesirable（thougheventhispropositionmustbereceivedwithqualifications）thatnofamilywhohaveanyland，shouldhavelessthantheycouldcultivate，orthanwillfullyemploytheircattleandtools。These，however，arenotthedimensionsoflargefarms，butofwhatarereckonedinEnglandverysmallones。Thelargefarmerhassomeadvantageinthearticleofbuildings。Itdoesnotcostsomuchtohouseagreatnumberofcattleinonebuilding，astolodgethemequallywellinseveralbuildings。
Thereisalsosomeadvantageinimplements。Asmallfarmerisnotsolikelytopossessexpensiveinstruments。Buttheprincipalagriculturalimplements，evenwhenofthebestconstruction，arenotexpensive。Itmaynotanswertoasmallfarmertoownathreshingmachine，forthesmallquantityofcornhehastothresh;butthereisnoreasonwhysuchamachineshouldnotineveryneighbourhoodbeownedincommon，orprovidedbysomepersontowhomtheotherspayaconsiderationforitsuse;
especiallyas，whenworkedbysteam，theyaresoconstructedastobemoveable。（3*）Thelargefarmercanmakesomesavingincostofcarriage。Thereisnearlyasmuchtroubleincarryingasmallportionofproducetomarket，asamuchgreaterproduce;inbringinghomeasmall，asamuchlargerquantityofmanures，andarticlesofdailyconsumption。Thereisalsothegreatercheapnessofbuyingthingsinlargequantities。Thesevariousadvantagesmustcountforsomething，butitdoesnotseemthattheyoughttocountforverymuch。InEngland，forsomegenerations，therehasbeenlittleexperienceofsmallfarms;butinIrelandtheexperiencehasbeenample，notmerelyundertheworstbutunderthebestmanagement;andthehighestIrishauthoritiesmaybecitedinoppositiontotheopinionwhichonthissubjectcommonlyprevailsinEngland。Mr。Blacker，forexample，oneofthemostexperiencedagriculturistsandsuccessfulimproversintheNorthofIreland，whoseexperiencewaschieflyinthebestcultivated，whicharealsothemostminutelydividedpartsofthecountry，wasofopinion，thattenantsholdingfarmsnotexceedingfromfivetoeightortenacres，couldlivecomfortablyandpayashigharentasanylargefarmerwhatever。"Iamfirmlypersuaded，"（hesays，（4*）"thatthesmallfarmerwhoholdshisownploughanddigshisownground，ifhefollowsaproperrotationofcrops，andfeedshiscattleinthehouse，canundersellthelargefarmer，orinotherwordscanpayarentwhichtheothercannotafford;andinthisIamconfirmedbytheopinionofmanypracticalmenwhohavewellconsideredthesubject……TheEnglishfarmerof700to800acresisakindofmanapproachingtowhatisknownbythenameofagentlemanfarmer。Hemusthavehishorsetoride，andhisgig，andperhapsanoverseertoattendtohislabourers;hecertainlycannotsuperintendhimselfthelabourgoingoninafarmof800
acres。"Afterafewotherremarks，headds，"Besidesallthesedrawbacks，whichthesmallfarmerknowslittleabout，thereisthegreatexpenseofcartingoutthemanurefromthehomesteadtosuchagreatdistance，andagaincartinghomethecrop。Asinglehorsewillconsumetheproduceofmorelandthanwouldfeedasmallfarmerandhiswifeandtwochildren。Andwhatismorethanall，thelargefarmersaystohislabourers，gotoyourwork;butwhenthesmallfarmerhasoccasiontohirethem，hesays，come;
theintelligentreaderwill，Idaresay，understandthedifference。"
Oneoftheobjectionsmosturgedagainstsmallfarmsis，thattheydonotandcannotmaintain，proportionallytotheirextent，sogreatanumberofcattleaslargefarms，andthatthisoccasionssuchadeficiencyofmanure，thatasoilmuchsubdividedmustalwaysbeimpoverished。Itwillbefound，however，thatsubdivisiononlyproducesthiseffectwhenitthrowsthelandintothehandsofcultivatorssopoorasnottopossesstheamountoflivestocksuitabletothesizeoftheirfarms。Asmallfarmandabadlystockedfarmarenotsynonymous。
Tomakethecomparisonfairly，wemustsupposethesameamountofcapitalwhichispossessedbythelargefarmerstobedisseminatedamongthesmallones。Whenthiscondition，orevenanyapproachtoit，exists，andwhenstallfeedingispractised（andstallfeedingnowbeginstobeconsideredgoodeconomyevenonlargefarms），experience，farfrombearingouttheassertionthatsmallfarmingisunfavourabletothemultiplicationofcattle，conclusivelyestablishestheveryreverse。Theabundanceofcattle，andcopioususeofmanure，onthesmallfarmsofFlanders，arethemoststrikingfeaturesinthatFlemishagriculturewhichistheadmirationofallcompetentjudges，whetherinEnglandorontheContinent。（5*）
Thedisadvantage，whendisadvantagethereis，ofsmallorratherofpeasantfarming，ascomparedwithcapitalistfarming，mustchieflyconsistininferiorityofskillandknowledge;butitisnottrue，asageneralfact，thatsuchinferiorityexists。
Countriesofsmallfarmsandpeasantfarming，FlandersandItaly，hadagoodagriculturemanygenerationsbeforeEngland，andtheirsisstill，asawhole，probablythebestagricultureintheworld。Theempiricalskill，whichistheeffectofdailyandcloseobservation，peasantfarmersoftenpossessinaneminentdegree。Thetraditionalknowledge，forexample，ofthecultureofthevine，possessedbythepeasantryofthecountrieswherethebestwinesareproduced，isextraordinary。Thereisnodoubtanabsenceofscience，oratleastoftheory;andtosomeextentadeficiencyofthespiritofimprovement，sofarasrelatestotheintroductionofnewprocesses。Thereisalsoawantofmeanstomakeexperiments，whichcanseldombemadewithadvantageexceptbyrichproprietorsorcapitalists。Asforthosesystematicimprovementswhichoperateonalargetractofcountryatonce（suchasgreatworksofdrainingorirrigation）orwhichforanyotherreasonsdoreallyrequirelargenumbersofworkmencombiningtheirlabour，thesearenotingeneraltobeexpectedfromsmallfarmers，orevensmallproprietors，thoughcombinationamongthemforsuchpurposesisbynomeansunexampled，andwillbecomemorecommonastheirintelligenceismoredeveloped。
Againstthesedisadvantagesistobeplaced，wherethetenureoflandisoftherequisitekind，anardourofindustryabsolutelyunexampledinanyotherconditionofagriculture。Thisisasubjectonwhichthetestimonyofcompetentwitnessesisunanimous。Theworkingofthepetiteculturecannotbefairlyjudgedwherethesmallcultivatorismerelyatenant，andnotevenatenantonfixedconditions，but（asuntillatelyinIreland）atanominalrentgreaterthancanbepaid，andthereforepracticallyatavaryingrentalwaysamountingtotheutmostthatcanbepaid。Tounderstandthesubject，itmustbestudiedwherethecultivatoristheproprietor，oratleastam閠ayerwithapermanenttenure;wherethelabourheexertstoincreasetheproduceandvalueofthelandavailswholly，oratleastpartly，tohisownbenefitandthatofhisdescendants。Inanotherdivisionofoursubject，weshalldiscussatsomelengththeimportantsubjectoftenuresofland，andIdefertillthenanycitationofevidenceonthemarvellousindustryofpeasantproprietors。Itmaysufficeheretoappealtotheimmenseamountofgrossproducewhich，evenwithoutapermanenttenure，Englishlabourersgenerallyobtainfromtheirlittleallotments;aproducebeyondcomparisongreaterthanalargefarmerextracts，orwouldfindithisinteresttoextract，fromthesamepieceofland。
AndthisItaketobethetruereasonwhylargecultivationisgenerallymostadvantageousasamereinvestmentforprofit。
Landoccupiedbyalargefarmerisnot，inonesenseoftheword，farmedsohighly。Thereisnotnearlysomuchlabourexpendedonit。Thisisnotonaccountofanyeconomyarisingfromcombinationoflabour，butbecause，byemployingless，agreaterreturnisobtainedinproportiontotheoutlay。Itdoesnotanswertoanyonetopayothersforexertingallthelabourwhichthepeasant，oreventheallotment—holder，gladlyundergoeswhenthefruitsaretobewhollyreapedbyhimself。Thislabour，however，isnotunproductive:italladdstothegrossproduce。
Withanythinglikeequalityofskillandknowledge，thelargefarmerdoesnotobtainnearlysomuchfromthesoilasthesmallproprietor，orthesmallfarmerwithadequatemotivestoexertion:butthoughhisreturnsareless，thelabourislessinastillgreaterdegree，andaswhateverlabourheemploysmustbepaidfor，itdoesnotsuithispurposetoemploymore。
Butalthoughthegrossproduceofthelandisgreatest，caeterisparibus，undersmallcultivation，andalthough，therefore，acountryisableonthatsystemtosupportalargeraggregatepopulation，itisgenerallyassumedbyEnglishwritersthatwhatistermedthenetproduce，thatis，thesurplusafterfeedingthecultivators，mustbesmaller;thattherefore，thepopulationdisposableforallotherpurposes，formanufactures，forcommerceandnavigation，fornationaldefence，forthepromotionofknowledge，fortheliberalprofessions，forthevariousfunctionsofgovernment，fortheartsandliterature，allofwhicharedependentonthissurplusfortheirexistenceasoccupations，mustbelessnumerous;andthatthenation，therefore（wavingallquestionastotheconditionoftheactualcultivators），mustbeinferiorintheprincipalelementsofnationalpower，andinmanyofthoseofgeneralwell—being。This，however，hasbeentakenforgrantedmuchtooreadily。Undoubtedlythenon—agriculturalpopulationwillbearalessratiototheagricultural，undersmallthanunderlargecultivation。Butthatitwillbelessnumerousabsolutely，isbynomeansaconsequence。Ifthetotalpopulation，agriculturalandnon—agricultural，isgreater，thenonagriculturalportionmayhemorenumerousinitself，andmayyetbeasmallerproportionofthewhole。Ifthegrossproduceislarger，thenetproducemaymaybelarger，andyetbearasmallerratiotothegrossproduce。
YetevenMr。Wakefieldsometimesappearstoconfoundthesedistinctideas。InFranceitiscomputedthattwo—thirdsofthewholepopulationareagricultural。InEngland，atmost，one—third。HenceMr。Wakefieldinfers，that"asinFranceonlythreepeoplearesupportedbythelabouroftwocultivators，whileinEnglandthelabouroftwocultivatorssupportssixpeople，EnglishagricultureistwiceasproductiveasFrenchagriculture，"owingtothesuperiorefficiencyoflargefarmingthroughcombinationoflabour。Butinthefirstplace，thefactsthemselvesareoverstated。ThelabouroftwopersonsinEnglanddoesnotquitesupportsixpeople，forthereisnotalittlefoodimportedfromforeigncountries，andfromIreland。InFrance，too，thelabouroftwocultivatorsdoesmuchmorethansupplythefoodofthreepersons。Itprovidesthethreepersons，andoccasionallyforeigners，withflax，hemp，andtoacertainextentwithsilk，oils，tobacco，andlatterlysugar，whichinEnglandarewhollyobtainedfromabroad;nearlyallthetimberusedinFranceisofhomegrowth，nearlyallwhichisusedinEnglandisimported;theprincipalfuelofFranceisprocuredandbroughttomarketbypersonsreckonedamongagriculturists，inEnglandbypersonsnotsoreckoned。Idonottakeintocalculationhidesandwool，theseproductsbeingcommontobothcountries，norwineorbrandyproducedforhomeconsumption，sinceEnglandhasacorrespondingproductionofbeerandspirits;butEnglandhasnomaterialexportofeitherarticle，andagreatimportationofthelast，whileFrancesupplieswinesandspiritstothewholeworld。
Isaynothingoffruit，eggs，andsuchminorparticlesofagriculturalproduce，inwhichtheexporttradeofFranceisenormous。Butnottolayunduestressontheseabatements，wewilltakethestatementasitstands。Supposethattwopersons，inEngland，dobon？fideproducethefoodofsix，whileinFrance，forthesamepurpose，thelabouroffourisrequisite。
DoesitfollowthatEnglandmusthavealargersurplusforthesupportofanon—agriculturalpopulation？No;butmerelythatshecandevotetwo—thirdsofherwholeproducetothepurpose，insteadofone—third。Supposetheproducetobetwiceasgreat，andtheone—thirdwillamounttoasmuchasthetwo—thirds。Thefactmightbe，thatowingtothegreaterquantityoflabouremployedontheFrenchsystem，thesamelandwouldproducefoodfortwelvepersonswhichontheEnglishsystemwouldonlyproduceitforsix:andifthiswereso，whichwouldbequiteconsistentwiththeconditionsofthehypothesis，thenalthoughthefoodfortwelvewasproducedbythelabourofeight，whilethesixwerefedbythelabourofonlytwo，therewouldbethesamenumberofhandsdisposableforotheremploymentintheonecountryasintheother。Iamnotcontendingthatthefactisso。IknowthatthegrossproduceperacreinFranceasawhole（thoughnotinitsmostimproveddistricts）averagesmuchlessthaninEngland，andthat，inproportiontotheextentandfertilityofthetwocountries，Englandhas，inthesensewearenowspeakingof，muchthelargestdisposablepopulation。ButthedisproportioncertainlyisnottobemeasuredbyMr。Wakefield’ssimplecriterion。AswellmightitbesaidthatagriculturallabourintheUnitedStates，where，byalatecensus，fourfamiliesineveryfiveappearedtobeengagedinagriculture，mustbestillmoreinefficientthaninFrance。
TheinferiorityofFrenchcultivation（which，takingthecountasawhole，mustbeallowedtobereal，thoughmuchexaggerated）isprobablymoreowingtothelowergeneralaverageofindustrialskillandenergyinthatcountry，thantoanyspecialcause;andevenifpartlytheeffectofminutesubdivision，itdoesnotprovethatsmallfaringisdisadvantageous，butonly（whatisundoubtedlythefact）thatfarmsinFranceareveryfrequentlytoosmall，and，whatisworse，brokenupintoanalmostincrediblenumberofpatchesorparcelles，mostinconvenientlydispersedandpartedfromoneanother。
Asaquestion，notofgross，butofnetproduce，thecomparativemeritsofthegrandeandthepetiteculture，especiallywhenthesmallfarmerisalsotheproprietor，cannotbelookeduponasdecided。Itisaquestiononwhichgoodjudgesatpresentdiffer。ThecurrentofEnglishopinionisinfavouroflargefarms:ontheContinent，theweightofauthorityseemstobeontheotherside。ProfessorRau，ofHeidelberg，theauthorofoneofthemostcomprehensiveandelaborateofextanttreatisesonpoliticaleconomy，andwhohasthatlargeacquaintancewithfactsandauthoritiesonhisownsubject，whichgenerallycharacteriseshiscountrymen，laysitdownasasettledtruth，thatsmallormoderate—sizedfarmsyieldnotonlyalargergrossbutalargernetproduce:though，headds，itisdesirablethereshouldbesomegreatproprietors，toleadthewayinnewimprovements。（6*）ThemostapparentlyimpartialanddiscriminatingjudgmentthatIhavemetwithisthatofM。Passy，who（alwaysspeakingwithreferencetonetproduce）giveshisverdictinfavouroflargefarmsforgrainandforage;but，forthekindsofculturewhichrequiremuchlabourandattention，placestheadvantagewhollyonthesideofsmallcultivation;
includinginthisdescription，notonlythevineandtheolive，whereaconsiderableamountofcareandlabourmustbebestowedoneachindividualplant，butalsoroots，leguminousplants，andthosewhichfurnishthematerialsofmanufactures。Thesmallsize，andconsequentmultiplication，offarms，accordingtoallauthorities，areextremelyfavourabletotheabundanceofmanyminorproductsofagriculture。（7*）
Itisevidentthateverylabourerwhoextractsfromthelandmorethanhisownfood，andthatofanyfamilyhemayhave，increasesthemeansofsupportinganon—agriculturalpopulation。
Evenifhissurplusisnomorethanenoughtobuyclothes，thelabourerswhomaketheclothesareanon—agriculturalpopulation，enabledtoexistbyfoodwhichheproduces。Everyagriculturalfamily，therefore，whichproducesitsownnecessaries，addstothenetproduceofagriculture;andsodoeseverypersonbornontheland，whobyemployinghimselfonit，addsmoretoitsgrossproducethanthemerefoodwhichheeats。Itisquestionablewhether，eveninthemostsubdivideddistrictsofEuropewhicharecultivatedbytheproprietors，themultiplicationofhandsonthesoilhasapproached，ortendstoapproach，withinagreatdistanceofthislimit。InFrance，thoughthesubdivisionisconfessedlytoogreat，thereisproofpositivethatitisfarfromhavingreachedthepointatwhichitwouldbegintodiminishthepowerofsupportinganon—agriculturalpopulation。Thisisdemonstratedbythegreatincreaseofthetowns;whichhaveoflateincreasedinamuchgreaterratiothanthepopulationgenerally，（8*）showing（unlesstheconditionofthetownlabourersisbecomingrapidlydeteriorated，whichthereisnoreasontobelieve）thatevenbytheunfairandinapplicabletestofproportions，theproductivenessofagriculturemustbeontheincrease。This，too，concurrentlywiththeamplestevidencethatinthemoreimproveddistrictsofFrance，andinsomewhich，untillately，wereamongtheunimproved，thereisaconsiderablyincreasedconsumptionofcountryproducebythecountrypopulationitself。
Impressedwiththeconvictionthat，ofallfaultswhichcanbecommittedbyascientificwriteronpoliticalandsocialsubjects，exaggeration，andassertionbeyondtheevidence，mostrequiretobeguardedagainst，Ilimitedmyselfintheearlyeditionsofthisworktotheforegoingverymoderatestatements。
Ilittleknewhowmuchstrongermylanguagemighthavebeenwithoutexceedingthetruth，andhowmuchtheactualprogressofFrenchagriculturesurpassedanythingwhichIhadatthattimesufficientgroundstoaffirm。Theinvestigationsofthateminentauthorityonagriculturalstatistics，M。L閛ncedeLavergne，undertakenbydesireoftheAcademyofMoralandPoliticalSciencesoftheInstituteofFrance，haveledtotheconclusionthatsincetheRevolutionof1789，thetotalproduceofFrenchagriculturehasdoubled;profitsandwageshavingbothincreasedinaboutthesame，andrentinastillgreaterratio。M。deLavergne，whoseimpartialityisoneofhisgreatestmerits，is，moreover，sofarinthisinstancefromthesuspicionofhavingacasetomakeout，thatheislabouringtoshow，nothowmuchFrenchagriculturehasaccomplished，buthowmuchstillremainsforittodo。"Wehaverequired"（hesays）"nolessthanseventyyearstobringintocultivationtwomillionhectares"（fivemillionEnglishacres）"ofwasteland，tosuppresshalfourfallows，doubleouragriculturalproducts，increaseourpopulationby30percent，ourwagesby100percent，ourrentby150percent。AtthisrateweshallrequirethreequartersofacenturymoretoarriveatthepointwhichEnglandhasalreadyattained。"（9*）
Afterthisevidence，wehavesurelynowheardthelastoftheincompatibilityofsmallpropertiesandsmallfarmswithagriculturalimprovement。Theonlyquestionwhichremainsopenisoneofdegree;thecomparativerapidityofagriculturalimprovementunderthetwosystems;anditisthegeneralopinionofthosewhoareequallywellacquaintedwithboth，thatimprovementisgreatestunderadueadmixturebetweenthem。
Inthepresentchapter，Idonotenteronthequestionbetweengreatandsmallcultivationinanyotherrespectthanasaquestionofproduction，andoftheefficiencyoflabour。Weshallreturntoithereafterasaffectingthedistributionoftheproduce，andthephysicalandsocialwell—beingofthecultivatorsthemselves;inwhichaspectsitdeserves，andrequires，astillmoreparticularexamination。
NOTES:
1。Page214etseqq。
2。Supra，chap。vi。p。94。
3。Theobservationinthetextmayhereaftermayhereafterrequiresomedegreeofmodificationfrominventionssuchasthesteamploughandthereapingmachine。Theeffect，however，oftheseimprovementsontherelativeadvantagesoflargeandsmallfarms，willnotdependontheefficiencyoftheinstruments，butontheircostliness。Iseenoreasontoexpectthatthiswillbesuchastomaketheminaccessibletosmallfarmers，orcombinationsofsmallfarmers。
4。PrizeEssayontheManagementofLandedPropertyinIreland，byWilliamBlacker，Esq。（1837）。
5。"Thenumberofbeastsfedonafarmofwhichthewholeisarableland，"（saystheelaborateandintellegenttreatiseonFlemishHusbandry，frompersonalobservationandthebestsources，publishedintheLibraryoftheSocietyfortheDiffusionofUsefulKnowledge，）"issurprisingtothosewhoarenotacquaintedwiththemodeinwhichthefoodispreparedforthecattle。Abeastforeverythreeacresoflandisacommonproportion，andinverysmalloccupationswheremuchspadehusbandryisused，theproportionisstillgreater。Aftercomparingtheaccountsgiveninavarietyofplacesandsituationsoftheaveragequantityofmilkwhichacowgiveswhenfedinthestall，theresultis，thatitgreatlyexceedsthatofourbestdairyfarms，andthequantityofbuttermadefromagivenquantityofmilkisalsogreater。itappearsastonishingthattheoccupierofonlytenortwelveacresoflightarableshouldbeabletomaintainfourorfivecows，butthefactisnotoriousintheWaescountry。"（pp。59，60）
ThissubjectistreatedveryintelligentlyintheworkofPassy，"DesSystemesdeCultureetdeleurInfluencesurl’EconomieSociale"，oneofthemostinpartialdiscussions，asbetweenthetwosystems，whichhasyetappearedinFrance。
"Sansnuldoute，c’estl’Angleterrequi，asuperficieegale，nourritleplusd’animaux;laHollandeetquelquespartiesdelaLombardiepourraientseulesluidisputercetavantage;maisest—celaunresultatdesformesdel’exploitation，etdescirconstancesdeclimatetdesituationlocaleneconcourent—ellespasaleproduire？C’est，anotreavis，cequinesauraitetreconteste。Eneffect，quoiqu’onenaitdit，partoutoulagrandeetlapetitecultureserencontrentsurlesmemespoints，c’estcelle—ciqui，bienqu’ellenepuisseentretenirautantdemoutons，possede，toutcompense，leplusgrandnobred’animauxproducteursd’engrais。Voici，parexample，cequiressortdesinformationsfourniesparlaBelgique。
"Lesdeuxprovincesouregnelapluspetiteculturesontcellesd’AnversetdelaFlandreoriente，etellespossedentenmoyenne，par100hectaresdeterrescultivees，74betesbovineset14moutons。LesdeuxprovincesousetrouventlesgrandesfermessontcellesdeNamuretduHainaut，etellesn’ontenmoyenne，pour100hectaresdeterrescultivees，que30betesbovineset45moutons。Or，encomptant，suivantl’usage，10
moutonscommel’equivalentd’unetetedegrosbetail，nousrencontronsd’uncote，76animauxservantamaintenirlafeconditedusol;del’autre，moinsde35，differenceacoupsurenorme。（D’apreslesdocumentsstatistiquespubliesparleMinistredel’Interieur，3mepublicationofficielle。）Ilestaremarquer，ausurplus，quelenombredesanimauxn’estpas，danslapartiedelaBelgiquedontlesolestdeviseentres—petitesfermes，beaucoupmoindrequ’enAngleterre。Enl’evaluantdanscettedernierecontreearaisonseulementduterritoireenculture，ilyexiste，parcentained’hectares，65betesacorneetpresde260moutons，c—a—d。l’equivalentde91despremiers，ouseulement15deplusquedansl’autre。Etencoreest—iljusted’observerqu’enBelgiquerienn’estperdudesengraisdonnespardesanimausnourrisapeuprestoutel’anneeal’etable，tandisqu’enAngleterrelapatureenpleinairaffaiblitconsiderablementlesquantitesqu’ildevientpossibledemettreentierementaprofit。
"DansledepartementduNordaussi，cesontlesarrondissementsdontlesfermesontlamoindrecontenancequientretiennentleplusd’animaux。TandisquelesarrondissementsdeLilleetdeHazebrouck，outreunplusgrandnombredechevaux，nourissent，l’unl’equivalentde52tetesdegrosbetail，l’autrel’equivalentde46;lesarrondissementoulesexploitationssontlesplusgrandes，ceuxdeDunkerqueetd’Avesnes，necontiennent，lepremier，quel’equivalentde44betesbovines，l’autrequeceluide40。（D’apreslaStatisiquedelaFrancepublieeparleMinistreduCommerce:Agriculture，t。i。）
"Pareillesrechercesetenduessurd’autrespointsdelaFranceoffriraientdesresultatsanalogues。S’ilestvraiquedanslabanlieuedesvilles，lapetitecultures’abstiennedegarderdesanimaux，auproduitdesquelsellesuppleefacilementpardesachatsd’engrais，ilnesepeutquelegenredetravailquiexigeleplusdelaterrenesoitpasceluiquienentretienneleplusactivementlafertilite。Assurementiln’estpasdonneauxpetitesfermesdepossederdenombrouxtroupeauxdemoutons，etc’estuninconvenient;mais，enrevanche，ellesnourrissentplusdebetesbovinesquelesgrandes。C’estlaunenecessitealaquelleellesnesauraientsesoustrairedansaucunpaysoulesbesoinsdelaconsommationleontappeleesafleurir;