V. I.

Lenin

In Russia, as in all capitalist countries, concentration of
production is going on, i.e., its concentration to an ever greater extent
in a small number of large and very large undertakings.

Under the capitalist system, every undertaking is entirely dependent on
the market. In view of this dependence, the larger the undertaking, the
more cheaply it can sell its product. A big capitalist buys raw materials
more cheaply and expends them more economically; he uses better machinery,
etc. Small proprietors, on the other hand, are ruined and go
under. Production becomes more and more concentrated in the hands of a few
millionaires. Millionaires generally increase their power still more
through joint-stock companies, which put in their hands the capital of
middle proprietors and “small fry”.

Here are data, for example, on the factory industry in Russia for 1910
compared with
1901: [1]

| Groups of establishments by number of workers | Number of establishments | Number of workers (thousands) |
| --- | --- | --- |
| 1901 | 1910 | 1901 | 1910 |
| Up to 50 . . . | 12,740 | 9,909 | 244 | 220 |
| 51 to 101 . . . . | 2,428 | 2,201 | 171 | 159 |
| 101 ” 500 . . . . | 2,288 | 2,213 | 492 | 508 |
| 501 ” 1,000 . . . . | 403 | 433 | 269 | 303 |
| Over 1,000 . . . . | 243 | 324 | 526 | 713 |
| Total . . . . | 18,102 | 15,080 | 1,702 | 1,903 |

Such is generally the situation in all capitalist countries. The
number of small establishments is decreasing ; the petty
bourgeoisie, the small proprietors, are ruined and go under; they join the ranks of office employees, and sometimes of the proletariat.

The number of very large undertakings is growing fast, their share in
production as a whole increasing still more.

From 1901 to 1910 the number of large factories employing over 1,000
workers each increased almost 50 per cent—from 243 to 324.

In 1901 they had about half a million (528,000) workers, or less than
one-third of the total number, whereas in 1910 the figure exceeded 700,000 , which is more than one-third of the total.

The bigger factories choke the small ones and concentrate production
more and more. Ever greater numbers of workers are brought together in a
few undertakings, but the whole pro fit from the labour of the combined
millions of workers goes to a handful of millionaires.

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Notes:
[1]
Lenin took the figures from A Summary of Factory Inspectors’ Reports for 1910 , St. Petersburg, 1911, p. XV.