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: