Interspecific competition

“ You have the competitive system which is self-destructive and hence weak. Your producing classes can organize as consumers and take advantage of the sharp competition between dealers to sell goods, and by a wise use of their combined power to purchase, introduce an equitable system of exchange. ”

“ Competition, as an economic position or phase, considered in its origin, is the necessary result of the intervention of machinery, of the establishment of the workshop, and of the theory of reduction of general costs; considered in its own significance and in its tendency, it is the mode by which collective activity manifests and exercises itself, the expression of social spontaneity, the emblem of democracy and equality, the most energetic instrument for the constitution of value, the support of association. ”

“ The problems of persistence of competition cannot be solved by abstract reasoning, but only by going into the particular facts of different groups of production. The tendencies of competition on the one side, and of combination on the other, are always at work, but the conditions that make either the stronger of the two in different trades, in different countries, and at different times, can be learned only by analyzing the legal, technical and psychological facts in the various departments of trade. ”

“ But they know that the combination will concentrate its strength to fight them in every way; and if they must invest a great deal of money in buildings, plant, etc., to start operations, they will be apt to think twice before they take the field against the combination.
The seventh law of competition is: In any given industry in which natural agents are necessary, the tendency toward the inequality of competition (monopoly) tends to vary directly with the scarcity of available like natural agents. ”

“ That competition we have to meet, not only in the countries mentioned, but in all countries where we meet them on equal terms; to meet such competition we must be able to produce more cheaply and a better article than others do, and we must safeguard our position as the world's bankers and carriers, as well as the position of our manufacturers. ”

“ We do not wish to disparage competition, which is the life of trade, but to advocate a higher form of co-operating competition. The lozenge trade owes it as a duty to humanity to take its part in the general stabilizing and soothing movement. The inflamed throat of Commerce can never be healed until lozenge men get together. ”

“ The spirit of competition ruled the American business world at the beginning of the last century, the forces of combination dominated at its close. The new order was the product of necessity, not of choice. ”

“ Competition a Cause of Rapid Changes in the Standard Shape of Society and of a Quick Conformity of the Actual Shape to the Standard One.—The competition which is active enough to change the standard shape of society rapidly—that, for example, which spurs on mechanical invention and causes a large profit to be realized in a particular subgroup—has also the effect of calling labor and capital quickly to the point at which the profit appears, and, in the absence of any monopoly, reduces this profit to nil and restores, in so far as this cause of disturbance goes, the equilibrium of the groups. ”

“ The strongest objections, however, to the great aggregations are found in the possibility of oppression through a monopoly of business, and therefore almost absolute control by a few persons of the interests not only of a large body of employés, but of every competitor upon a smaller scale. A large combination practically compels all to yield to its methods. The certain economy of methods has led to the statement, “Where combination is possible, competition ceases.” The common saying, “Competition is the life of trade,” becomes untrue whenever that competition implies a costly service. ”

“ Competition and competitive co-operation.—Social contact, which inevitably initiates conflict, accommodation, or assimilation, invariably creates also sympathies, prejudices, personal and moral relations which modify, complicate, and control competition. On the other hand, within the limits which the cultural process creates, and custom, law, and tradition impose, competition invariably tends to create an impersonal social order in which each individual, being free to pursue his own profit, and, in a sense, compelled to do so, makes every other individual a means to that end. ”

“ With these examples—and any number of others might be cited—is it not plain enough that the laws of competition are exactly applicable to aid in solving the problem? The smaller the number of competing units, the stronger the tendency to monopoly. Certain gifts of Nature are given to us in profusion. [221] The people transfer the title to private owners, and of these there must of necessity be so many that they will compete steadily with each other. ”

“ When a great nation has equipped itself to produce far more than it can, under the present division of the product, consume, it seeks other markets for its surplus products. When a second nation finds itself similarly circumstanced, competition for these other markets naturally follows. ”

“ Those who feel assured of a fair average proportion in the general business, are seldom eager to get a larger share by foregoing a portion of their profits. A limitation of competition, however partial, may have mischievous effects quite disproportioned to the apparent cause. The mere exclusion of foreigners, from a branch of industry open to the free competition of every native, has been known, even in England, 10 render that branch a conspicuous exception to the general industrial energy of the country. ”

“ We must think of the expedient of competition itself as varying in a thousand different directions, and shading by imperceptible gradations into other methods of appointment; and of the posts offered for competition as differing each from all the rest, as overlapping those posts for which competition in some form is suitable though it has not yet been tried, and as touching, at the marginal point on their curve, those posts for which competition is unsuitable. ”

“ They would produce, respecting many articles imported, a competition which would enable countries who do not now supply us with those articles, to do it, and would increase the encouragement on such as we can produce within ourselves. We should also obtain an equitable share in carrying our own produce; we should [Pg 459] enter into the field of competition on equal terms, and enjoy the actual benefit of advantages which nature and the spirit of our people entitle us to. ”

“ Here is a fair adjustment between logical competitors, the retention of competition where it is not practicable to eliminate it, and its abolishment where it is feasible to uproot it and establish great operating economies in the wake of the change. ”

“ Competition, in its higher expression, is the gearing by means of which laborers reciprocally stimulate and sustain each other. But, pending the realization of that organization which must elevate competition to its veritable nature, it remains a civil war in which producers, instead of aiding each other in labor, grind and crush each other by labor. ”

“ Practically all the efforts made or proposed thus far for remedying the evils of monopolies in manufacturing and trade have had for their purpose the re-establishment of competition. The investigation to which the first part of this book was devoted shows the wide extent of the movement to restrict competition. Is it possible to wholly counteract this? All our study of the laws of competition seems to show that the tendency of modern competition is to destroy itself by its own intensity. ”

“ What method, therefore, can be fallen upon to preserve the advantage which the nation reaps from the company’s buying in foreign parts without being exposed to competition; and at the same time to prevent the disadvantage to which the individuals of the society are exposed at home, when they endeavour, in competition with one another, to purchase from a company, who, in virtue of the same exclusive privilege, are united in their interest, and become masters to demand what price they think fit. ”

“ Sir, I laugh at the thought of such competition. If ever we are forced to yield the foremost place among commercial nations, we shall yield it, not to a race of degenerate dwarfs, but to some people pre-eminently vigorous in body and in mind. ”

“ If this custom were universal, and strictly adhered to, competition indeed would still operate, but the consumer would not derive any benefit from it, at least as to price; the way in which it would diminish the advantages of those engaged in the retail trade, would be by a greater subdivision of the business. ”

“ The mere fact that two persons or groups of persons in different places are engaged in similar processes of production, that is to say, belong to the same trade, has no significance for us. The trade or aggregate of productive units of a particular sort receives industrial unity only in so far as there is competition of the units in buying the raw materials, tools, and labour for carrying on their trade, and in selling the results of their activity. ”

“ The principle which set trade on foot we have shewn to be demand, what supports it and carries it to its perfection is competition. These terms are often confounded, or at least so blended together as to produce ideas incorrect, dark, and often contradictory: for this reason I have judged an analysis of them necessary, comparing them together, and pointing out their relations, differences, and coincidences. ”

“ It is just as absurd to fear that the three branches of income in the same country's economy should be all relatively high at the same time, and competition with foreign countries be thus made more difficult. ”

“ Other voices have been raised in denunciation of competition because "competition creates monopoly." In other words, competition, if carried to its logical conclusion, ends in the annihilation of competition. ”

“ They neither are inclined, nor will business competition permit them, to neglect or overlook any expedient that may further their own advantage or hinder the advantage of their rivals. Under the modern situation, as it has taken shape since the industrial revolution, (14*) business competition has become international, covering the range of what is called the world market. ”

“ The term expressing the opposite of competition is not combination, but monopoly. Professor Jenks, in his work, “The Trust Problem,” falls into this error when he speaks of combinations in the retail trade as overcoming the “friction” of competition, instancing associations of hardware dealers, druggists, etc. ”

“ But if we examine our problem a little more closely we see that the word monopoly seems to be only a negative, expressing the fact that competition is absent. We will therefore direct our studies to competition itself, and will consider first its action as the basis of our social system. ”

“ Such disturbing causes have always been allowed for by political economists. I speak of cases in which there is nothing to restrain competition; no hindrance to it either in the nature of the case or in artificial obstacles; yet in which the result is not determined by competition, but by custom or usage; competition either not taking place at all, or producing its effect in quite a different manner from that which is ordinarily assumed to be natural to it. ”

“ Even though foreign competition appears when we reach poorer grades of natural agents, it does not follow that some of the particular articles will not be produced. What ought to be clear is, that untrammeled exchange between countries will not prevent the existence of various industries, but only limit production to those grades of agents which are its best. ”

“ Since custom stands its ground against competition to so considerable an extent, even where, from the multitude of competitors and the general energy in the pursuit of gain, the spirit of competition is strongest, we may be sure that this is much more the case where people are content with smaller gains, and estimate their pecuniary interest at a lower rate when balanced against their ease or their pleasure. ”

“ The doctrine of non-competing groups in industry is simply a case of monopoly. Those men who enter into the industrial organization armed only with muscular power and without natural or acquired power to distinguish them from brutes or machines are on a dead level of competition with brutes or machines; then every advancing grade of acquirement forms the basis of a new and, generally speaking, less numerous group of persons. Every such group of higher and higher specialization is protected in its higher advantages by the principle of monopoly. ”

“ The same set of social principles which decreed local rewards and local punishments for initiative and enterprise, or for the lack of them, was built upon the theory that "competition is the life of trade." Thus, while the present economic system, in its earlier stages tended to stimulate initiative, its form made co-operation difficult or impossible.
The ideal economic unit would be one capable of generating its own driving power, and given a legitimate exchange of commodities and services with other units, one that could maintain its own energy and efficiency. ”

“ Combinations stifle competition. Why Industrial Combinations are Objectionable.—The chief objection to all these combinations, whether by 388informal agreement, pooling, trusts, holding companies, mergers is that they seek to restrain trade, to create monopolies, and to prevent the public from obtaining the advantages in the way of reduced prices and better quality which arise from free competition. ”