The owners of these debentures are in fact joint capitalists with the nominal owner of the business.
They prefer to lend their capital, because they hope to enjoy a portion of the gain and security which belongs to a large business as compared with a small one.

Along with this coming together of small capitals to make a large capital, there is a constant centralization and organization of business ability.

It is not uncommon for the owner of a small and therefore failing business to accept a salaried post in the office of some great business firm.

So too we find the son of a small tradesman, recognizing the hopelessness of maintaining his father's business, takes his place behind the counter of some monster house.
Sec.2.How Competition affects Capital .-- Now the force which brings about all these movements is the force of competition.

Every increase of knowledge, every improvement of communication, every breakdown of international or local barriers, increases the advantage of the big business, and makes the struggle for existence among small businesses more keen and more hopeless.