The New NationPaxson, Frederic L. (Frederic Logan)
History
The New Nation
Paxson, Frederic L. (Frederic Logan)
United States -- History -- 1865-1921
Social organizations of national scope or ambition took advantage of the
new communication. Trade unions, benevolent associations, and
professional societies multiplied their annual congresses and
conventions, and increased the proportion of the population that knew
something of the whole Union. A few periodicals and pattern-makers began
to circulate styles, which clothing manufacturers imitated and local
shopkeepers sold at retail. Mail-order business was aided by the same
conditions. A new uniformity in appearance began to enter American life,
weakening the old localisms in dress, speech, and conduct. Until within
a few years it had been possible here and there to sit down to dinner
"with a gentleman in the dress of the early century--ruffles, even
_bag-wig_ complete"; but the new standards were the standards of the
mass, and it became increasingly more difficult to keep up an
aristocratic seclusion or a style of life much different from that of
the community.
With the growth of national uniformity went also the concentration of
control. As the field of competition widened, the number of possible
winners declined. Men measured strength, not only in their town or
State, but across the continent, and the handful of leaders used the
facilities of communication as the basis for the further expansion of
their industries. Business was extended because it was possible and
because it was thought to pay.
Many of the economies of consolidation were so obvious as to need no
argument. If a single firm could do the business of five,--or fifty--it
increased its profit through larger and better plants, greater division
of labor, and a more careful use of its by-products. It could cut down
expenses by reducing the army of competing salesmen and by lessening the
duplication of administrative offices. The same economics in management
which had driven the Old South to the large plantation as a type drove
American industrial society toward economic consolidation and the
trusts.
The technical form of organization of the trust was unimportant.
Strictly speaking, it was a combination of competing concerns, in which
the control of all was vested in a group of trustees for the purpose of
uniformity. The name was thus derived, but it spread in popular usage
until it was regarded as generally descriptive of any business so large
that it affected the course of the whole trade of which it was a part.
The logical outcome of the trust was monopoly, and trusts appeared first
in those industries in which there existed a predisposition to monopoly,
an excessive loss through competition, or a controlling patent or trade
secret.
Public-domain text, read in full here on John Shaqi.
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