normal conditions. The smaller capitals, therefore, crowd into spheres of production which Modern Industry has only sporadically or incompletely got hold of. Here competition rages in direct proportion to the number, and in inverse proportion to the magnitudes, of the antagonistic capitals. It always ends in the ruin of many small capitalists, whose capitals partly pass into the hand of their conquerors, partly vanish. Apart from this, with capitalist production an altogether new force comes into play—the credit system.
In its beginnings, the credit system sneaks in as a modest helper of accumulation and draws by invisible threads the money resources scattered all over the surface of society into the hands of individual or associated capitalists. But soon it becomes a new and formidable weapon in the competitive struggle, and finally it transforms itself into an immense social mechanism for the centralisation of capitals.
Competition and credit, the two most powerful levers of centralization, develop in proportion as capitalist production and accumulation do. At the same time the progress of accumulation increases the matter subject to centralisation, that is, the individual capitals, while the expansion of capitalist production creates the social demand here, the technical requirements there, for those gigantic industrial enterprises, which depend for their realisation on a previous centralisation of capitals. Nowadays, then, the mutual attraction of individual capitals and the tendency to centralisation are stronger than ever before. However, while the relative expansion and energy of the centralisation movement is determined to a certain degree by the superiority of the economic mechanism, yet the progress of centralisation is by no means dependent upon the positive growth of the volume of social capital. This is the particular distinction between centralisation and concentration, the latter being but another expression for reproduction on an enlarged scale. Centralisation may take place by a mere change in the distribution of already existing capitals, a simple change in the quantitative arrangement of the components of social capital. Capital may in that case accumulate in one hand in large masses by with-
