Year.
Total.		To Every 10,000 In-
habitants, 12 Years
of Age and Over.
1882169,33453.0
1891196,43755.8

We think these figures speak volumes. They show how the deterioration of social conditions intensify and promote poverty, want, misdemeanors and crimes.

The basis of our social state is the capitalist system of production. On it modern society rests. All social, all political institutions are results and fruits of that system. It is the ground from which the whole social and political superstructure, together with its bright and dark sides, have sprung up. It influences and dominates the thoughts and feelings and actions of the people who live under it. Capital is the leading power in the State and in Society: the capitalist is the ruler of the propertyless, whose labor-power he buys for his use, and at a price, that, like all other merchandise, is governed by supply and demand and oscillates now above, then below the cost of reproduction. But the capitalist does not buy labor-power out of "sweet charity," in order to do a favor to the workingmen, although he often so pretends. He buys it for the purpose of obtaining surplus wealth from the labor of the workingmen, which he then pockets under the name of profit, interest, house and ground rent. This surplus wealth, squeezed out of the workingmen, and which in so far as the capitalist does not squander it in dissipation, crystallizes in his hands into more capital, puts him in a condition to steadily enlarge his plant, improve the process of production, and occupy increased labor forces. That, at the same time, enables him to step up before his weaker competitors, like a mailed knight before an unarmed pedestrian, and to destroy them. This unequal struggle between large and small capital spreads amain, and, as the cheapest labor-power, next to that of children and lads, woman plays therein a role of increasing importance. The result is the ever sharper division of a smaller minority of mighty capitalists and a mass of capital-less male and female lack-alls whose only resource is the daily sale of their labor-power. The middle class arrives hereby at a plight that grows ever graver. One field of industry after another, where small production still predominated, is seized and occupied to capitalist ends. The competition of capitalists among themselves compels them to explore ever newer fields of exploitation. Capital goes about "like a roaring lion, seeking whom it may devour." The smaller and weaker establishments are destroyed; if their owners fail to save themselves upon some new field—a feat that becomes ever harder and less possible—then they sink down into the class of the wage earners, or of Catilinarians. All efforts to prevent the downfall of handicraft and of the middle class by means of institutions and laws, borrowed from the lumber-room of the musty past, prove utterly ineffective. They may enable one or another to deceive himself on his actual condition; but soon the illusion vanishes under the heavy weight of facts. The process of absorption of the small by the large takes its course with all the power and pitilessness of a law of Nature, and the process is sensible to the feeling and the sight of all.

In the period between 1875-1882, the number of small industries decreased in Prussia by 39,655,[164] although the population increased in this period by about two million heads. The number of workmen employed in small industries sank, during that time, from 57.6 per cent., to 54.9 per cent. The industrial statistics for 1895 will furnish much more drastic figures. The development of large production stands in close relation to the development of steam machine and steam horse-power. And what is the picture presented by these? Prussia had:—

1878. 1893.
Stationary steam boilers 32,411 53,024 + 63.6 per cent.
Stationary steam engines29,895 53,092 + 77.6 per cent.
Movable machines 5,536 15,725 +184 per cent.

The Kingdom of Saxony had:—

1861. 1891.
Stationary steam engines 1,003 8,075 +700 per cent.
Stationary steam engines29,895 53,092 +922 per cent.

In 1861, a steam engine in Saxony had, on an average, a 15.5 horse-power; in 1891, it had 19. All Germany had in 1878 about three million horse-power in operation in industry; in 1894, about five million. Austria had in 1873 in round figures 336,000 horse-power; in 1888, about 2,150,000. Steam power spreads daily, and stronger steam machines drive out weaker ones—large production drives out small. The fact is shown emphatically in the industries in which steam has become the general power, the brewery industry, for instance. In the German brewery tax department, exclusive of Bavaria, Wuertemburg, Baden and Alsace-Lorraine, there were:—


Year. 		Breweries
in Operation.		Industrially
Operated.
Output.
187313,56110,92719,654,900 hl.
1891-2 8,460 7,57133,171,100 hl.
———————————————————
5,101 3,35613,516,200 hl.
Decrease
= 38 per cent.		Decrease
= 31.1 per cent.		Increase
= 68.8 per cent.