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as the predominating teaching generally accepts, labour as well ascapital in his service for a fixed remuneration. At such a stagethe profits are high, not on account of lower costs of production—these are rather very high compared with later on—but on accountof the high prices. The industry still finds itself in a position ofmonopoly as compared with the home decentralised industry aswell as the foreign, just as one produces similar conditions lateron by protective tariffs in order to call industries into being. Forthis reason great fortunes flow quickly together into the hands ofthe few; everywhere was the genius of the individual pathfinderson the field of centralised industry (Arkwright, Peel).
On that first step of industrial development is that rolling to-gether of wealth in the hands of the few already justified by thereason that, with the meagre possessions among the masses, thenecessary capital for the first centralised industries was not other-wise to be brought together. There was still lacking the physio-logical essentials of enterprise in the form of societies. But thosehigh profits have still a further justification. Political power andhonour are still linked with the hands of landed proprietorship,which looks down upon the men with a trade calling as “ hominesnovi.” A public walk in life still grants a higher position thaneven the most successful industrial career. It was still doubtfulin England about the turn of the century whether the representa-tives of centralised industry were to be granted the appellation of*' gentlemen.” Therefore it needed the stimulus of high profits towin capable heads for industrial callings, whilst they later onstreamed to them for the sake of the honour and influence alonewhich this position assures.
But also for a special reason this collecting of possessions hasfirstly in the citizen classes its justification. The social progressof a nation presupposes a class which, by its riches, is in theposition to apply itself to public affairs without being dependenton the State. On the presence of this class among the countrygentry the greatness of the English Parliamentary constitutionhad once depended. After the foundations of economical life hadbecome industrial, a similar class of citizens with means had toprepare itself for undertaking political as well as social duties. Ihave pictured in another place how the existence of such inde-pendent elements has later on pushed forward the social develop-ment of England , after it had become in extensive circles the