cattle gave a regular surplus to the nomadic nations with sufficiently large herds. At the same time there was a division of labor between nomadic nations and backward nations without herds. The existence of two different stages of production side by side furnished the conditions necessary for a regular exchange. The upper stage of barbarism introduced a new division of labor between agriculture and handicrafts, resulting in the production of a continually increasing amount of commodities for the special purpose of exchange, so that exchange between individuals became a vital function of society. Civilization strengthened and intensified all the established divisions of labor, especially by rendering the contrast between city and country more pronounced. Either the town may have the economic control over the country, as during antiquity, or vice versa, as in the middle ages. A third division of labor was added by civilization: it created a class that did not take part in production, but occupied itself merely with the exchange of products—the merchants. All former attempts at class formation were exclusively concerned with production. They divided the producers into directors and directed, or into producers on a more or less extensive scale. But here a class appears for the first time that captures the control of production in general and subjugates the producers to its rule, without taking the least part in production. A class that makes itself the indispensable mediator between two producers and exploits them both under the pretext of saving them the trouble and risk of exchange, of extending the markets for their products to distant regions, and of thus becoming the most useful class in society; a class of parasites, genuine social ichneumons, that skim the cream off production at home and abroad as a reward for very insignificant services; that rapidly amass enormous wealth and gain social influence accordingly; that for this reason reap ever new honors and ever greater control of production during the period of civilization, until they at last bring to light a product of their own—periodical crises in industry.
At the stage of production under discussion, our young merchant class had no inkling as yet of the great future that was in store for them. But