The advantage which combination gives to the town over the country was recognised long before the recent economic changes forced men to combine. In the old towns of Europe all trades began as strict and exclusive corporations. In the eighteenth and nineteenth centuries new scientific and economic forces broke up these combinations, which were far too narrow for the growing volume of industrial activity, and an epoch of competition began. The great towns of America opened their business career during this epoch, and have brought the arts of competition to a higher perfection than exists in Europe. But it has always been known that competition did not exclude combination against the consumer; and it is now beginning to be perceived that the fiercer the competition, the more surely does it lead in the end to such combination.
A trade combination has three principal objects: it aims, first, at improving what I may call the internal business methods of the trade itself by eliminating the waste due to competition, by economising staff, plant, etc., and by the ready circulation of intelligence, and in other ways. In the second place, it aims at strengthening the trade against outside interests. These may be of various kinds; but in the typical case we are considering, namely, the combination of great middlemen who control exchange and distribution, the outside interests are those of the producer on one side and the consumer on the other; and the trade combination, by its organised unity of action, succeeds in lowering the prices it pays to the unorganised producer and in raising the prices it charges to the unorganised consumer. In the third place, the trade combination seeks to favour its own interests in their relation to other interests through political control--control not so much of the machinery of politics as of its products, legislation and administration. I am not now arguing the question whether or how far this action on the part of trade combinations is morally justifiable. My point is simply that the towns have flourished at the expense of the country by the use of these methods, and that the countryman must adopt them if he is to get his own again. Moreover, as organisation tends to increase the volume and lower the cost of agricultural production and to make possible large transactions between organised communities of farmers and the trade, it will be seen that the organised combination of farmers will simplify the whole commerce of those countries where it is adopted, and thus benefit alike the farmer and the trader.