Full text: Small and Big Business

Introduction . to - --the Spanish Haitian- 
/- edito^i-~-oe g e-nunter3 refer to Dngl-jsh-editlOBlT" 
%SF~ ScUCUfi^E ciCOtu&6> 
after the first publication of this little 
book I do not find myself in full agreement with everything 
it contains. Since I have no time to re-write it completely 
I better leave it as it stands and try to explain in the 
following lines what amendments I should have liked to make. 
My chief amendment concerns an error in interpreting the 
statistics of U.S. corporations which show that fixed capital 
in relation to turnover increases with the size of the firm 
(Chapter III, fable IX,p, 24). This does not demonstrate, as 
I wrongly concluded, that the larger firms have a higher 
capital coefficient^ in the accepted sense of the term. It 
is due to a iss&amt different fact, namely the greater vertical 
integration of the larger firms. In fact, as far as the higher L 
classes are concerned, Table IX shows that the apparent rise in 
capital-output ratio is strong in paper (where the large con 
cerns own forests), metals (where they own mines) and chemicals 
(where vertical integration also plays a large role) while the 
other industries show no increase. 
' Or capital-output ratio, as I called it. The present use 
i of the terms "caoital coefficient” and 'bapital-intensity" 
for capital per .7. of output and capital per man had not 
been firmly established then.

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