HOW THE DEVELOPMENT OF CAPITALISM LED TO COMMUNIST REVOLUTION

it was surrounded by its more vigorous competitors, by enterprises which were manufacturing on a larger scale. If, therefore, a new enterprise was not to perish in its infancy, if the undertaking was to live and thrive, it had to be built up on strong foundations. But strong foundations could only be provided by those who had plenty of capital. The joint-stock company was the outcome of this need. The essence of the matter is that a few great capitalists make use of the capital of lesser capitalists, and make use also of the savings that have accumulated in the hands of non-capitalistic groups (employees, peasants, civil servants, etc.). Matters are arranged in the following way. Everyone contributes his portion; everyone takes a “share” or a number of “shares.” In return for his money he receives a “share certificate” which gives him the right to receive a definite portion of the income. In this way the accumulation of small sums promptly gives rise to a large quantity