prevailed in the Middle Ages made great capitalists and life-long wage-workers just as impossible as the great modern industry, the credit system of to-day, and form of exchange, corresponding with the development of these, free competition, render them inevitable. With the difference in distribution however class differences are introduced. Society becomes divided into upper and lower classes, into plunderers and plundered, into master and servant classes, and the state which the original groups composed of societies claiming the same ancestry only regarded as a means of protection of the common interests (remnants of which remain in the Orient, e.g.) and against foreign force, takes upon itself the duty of maintaining the economic and political supremacy of the dominant class against the dominated class by means of force. So distribution is not a mere passive witness of production and exchange; it has an immediate influence on both. Every new method of production and form of exchange is impeded, not only through the old forms and their particular forms of political development, but also through the old method of distribution. It can only bring about its own method of distribution as the result of long conflict. But just in proportion as a given method of production and exchange is built up and develops, distribution all the more rapidly reaches a point where it outstrips its predecessor and where it comes into collision with the system of production and exchange existing up to that time. The old tribal communistic forms of which we have already spoken may last thousands of years, as is seen in the case of the Indians and Slavs of to-day, until intercourse with the outside world develops causes of disruption within them as a conclusion of which their dissolution comes about. Modern capitalistic production on the other hand which is hardly three hundred years old and which first became dominant with the introduction of the greater industry about one hundred years ago, has, in this short time, developed antagonisms in distribution--concentration of capital on the one hand in the possession of a few persons and, on the other, concentration of propertyless masses in the great cities--which must of necessity bring it to an end.