(5G
Economical development is also principally a history of enlarg-ing dimensions and increasing separation from the surround-ings. Firstly, small works are spread over the whole country ;as against these stand the modern gigantic mills, which localisethemselves geographically.
There is also here the same increasing division of labour.Whilst originally all trades are joined together in one works—the self-providing farm, the ancient municipality of the past—the farming interest separates itself from the textile industry,this from the preparation of metals, etc. But therewith in-creases the mutual dependency of the single works. The originalisolated establishment can be separated without disadvantagefrom its like ; the establishment founded on division of labourand exchange, if torn from its connection with the whole, perishesor falls back to the former basis of existence.
The same thing applies if we take only one trade into con-sideration—say the textile industry. Originally its innerstructure is uniform; every one of the small establishmentsproduces the raw materials, manipulates them, and uses them.Also where barter later appears, the small trader is producerand merchant concurrently. As against this stands modernindustry, in which all these functions are separated—the productionand the consumption, the technical and the commercial element.A special market is formed for the raw materials, a special onefor the articles produced, and both markets are separated fromthe manufactory. All three links are joined by connecting ones.Also in the manufacturing process there is progressive division oflabour ; it is cheaper to produce 1,000 of A than 500 of A and500 of B. But here, also, with progressive division of labourthere is an increasing dependency of the single establishmentsupon one another. A disturbance of the raw-material marketexercises its damaging influence on the manufacturing andselling : while sale stagnations are inimical to the two precedinglinks. The industry becomes more and more a completoorganisation, made up by a number of isolated organisationsdispersed over the whole country, but remaining similar to oneanother—a complete organism, which is formed out of differentkinds of units, geographically concentrated, depending upon oneanother.
No industry is more fitting to confirm these principles ofHerbert Spencer than the English cotton industry.