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 The question of labour and capital, 
 
 3 1924 013 854 579 
 
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 Library 
 
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 There are no known copyright restrictions in 
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 http://www.archive.org/details/cu31924013854579 
 
THE QUESTION 
 
 Labour and Capital 
 
 BY 
 
 JOHN B. JERVIS 
 
 (civil engineer) 
 AUTHOR OF *' RAILWAY PROPERTY ' 
 
 " The hand of the diligent maketh rich." 
 *' He that gathereth by labour shall increase." 
 * Study a thrifty abstinence, and so aid in carrying forward a benign civilization.*' 
 
 V /. I I- ■ 
 - NEW YORK 
 G. P. PUTNAM'S SONS 
 
 182 FIFTH AVENUE 
 1877 
 

 Copyright, 
 
 JOHN B. JERVIS. 
 
 1877. 
 
CONTENTS. 
 
 PAGE. 
 
 Introduction 9 
 
 Labour and Capital 27 
 
 Wages Fund 31 
 
 Wages Fund, Paid out of Capital in anticipation of profits 34 
 
 Competition and the Market 36 
 
 Professor Perry, on competition between labour and capital 39 
 
 Professor Wallcer, on competition between labour and capital 41 
 
 Professor Cairnes, on competition between labour and capital 43 
 
 Mr. W. Gladden, on competition between labour and capital 44 
 
 Mr. J. N. Larned, on competition between labour and capital 45 
 
 Deductions — from the Authors quoted 50 
 
 Deductions — Remarks on First 51 
 
 Deductions — Remarks on Second 54 
 
 Deductions — Remarks on Third 59 
 
 Deductions — Remarks on Fourth 60 
 
 Deductions — Remarks on Fifth 64 
 
 Deductions — Remarks on Sixth 65 
 
 Deductions — Remarks on Seventh 66 
 
 Deductions — Remarks on Eighth 67 
 
 Remarks on the general condition of the parties in this 
 
 question 7' 
 
 Strikes — Among labourers — ^general characteristics 78 
 
 Trades Unions — Objects and influence 82 
 
 Trades Unions on Apprenticeship 98 
 
 Methods for ameliorating Industry by Community plan. . . loi 
 
 5 
 
6 CONTENTS. 
 
 PACE. 
 
 Methods by Government Aid 104 
 
 Methods by Co-operative Industry 107 
 
 Methods by Joint-Stock corporation 108 
 
 Methods by Partnership, in connection with Joint-Stock 
 
 corporations 1 20 
 
 General Remarks on the several preceding methods 124 
 
 Ability of the Labourer of Saving 131 
 
 Thrifty and Un-Thrifty 140 
 
 Hints on Education \^-> 
 
 Unequal Wealth — Its causes 147 
 
 Conflict of labour and Capital, not peculiar to this branch 
 
 of exchange i^i 
 
 Combinations or Monopolies i r2 
 
 The conflict between Labour and Capital should be 
 
 adjusted 1 54 
 
 Conclusion 171 
 
 The question of Marriage 1 73 
 
 Civilization and Barbarism 1 78 
 
 Who are the Working class 181 
 
 Labour a Necessity in Civilization 185 
 
 General Suggestions 190 
 
 Necessity of Experience iq^ 
 
 Elements of Moral Culture 106 
 
 Instruments and Labour. 206 
 
PREFACE 
 
 ' I ""HIS small book, which I now submit to the public, 
 ■*- has been written with the view of showing that 
 the young American working-man has the power of 
 providing for his own well-being, and that there is no 
 just ground of controversy between him and the capital- 
 ist. I have shown that under our civilization these 
 parties must work together, and that this is for their 
 mutual benefit. They are equally dependent on the 
 market for the compensation they must receive for 
 their respective wages and profits. 
 
 If the labourer refuses to work on this basis, he 
 can have no wages ; and if the capitalist refuses such 
 profit for his instruments as the market will give, he 
 will get nothing. The question is precisely the same 
 as with a merchant who holds his goods above the 
 market. Nor can there be any doubt in the case of 
 
8 PREFACE. 
 
 services or goods, that the man who holds at a rate 
 above the market, will not be able to exchange. 
 
 I have aimed to place the question in a practical 
 light, with no partiaUty for either party, and earnest- 
 ly commend my discussion to the study of all who 
 may be interested in a question that is essentially 
 involved in our civilization. 
 
 JOHN B. JERVIS. 
 
 Rome, N. V., May, 1877. 
 
INTRODUCTION. 
 
 'T^'HE question of labour and capital is a question 
 of civilization. In the natural condition of men, 
 — the untutored state, — the instruments of labour are 
 hardly appreciable. They consist in such as are prac- 
 ticable, under their rude state, to facilitate the labour 
 of hunting, fishing, and gathering of natural fruits. As 
 man advances in intelligence, he by slow and gradual 
 steps discovers new wants, and taxes his ingenuity to 
 find the means of gratifying them. In regard to some 
 certain thing that most presses his attention he con- 
 trives an improved method that facilitates his labour. 
 One point gained, he finds the way opened for another. 
 By continuing the process he steadily enlarges the 
 scope of his instruments, until he reaches a demand 
 that calls for the co-operation of several persons to 
 provide the improved instruments he needs. This is 
 a succinct statement of the progress of men from sav- 
 age hfe to civilization. The history of mankind shows 
 the process to have been a very slow one. As it has 
 advanced, the necessity of law has been demonstrated. 
 As property, or the instruments of labour were accumu- 
 
10 INTRODUCTION. 
 
 lated, it became necessary to secure these as well as 
 the rights of labour to the individuals who had acquired 
 and who exercised these rights of property. It is only by 
 this method that ingenuity, skill and labour can be pro- 
 tected, and every man secured in the results of his own 
 labour, skill and prudence. It is manifest the induce- 
 ment of endeavour is in securing to each man the pos- 
 session and enjoyment of the product of his own labour 
 and enterprise. 
 
 It can hardly be necessary to discuss the great 
 superiority of civilization. A few remarks, however, 
 may not be out of place, more especially relating to 
 the benefits of civilization as connected with the 
 instruments of labour. The first thing to consider is, 
 the vast effectiveness of the instruments of civilization 
 as compared with those of untutored men. This 
 effectiveness of the former over the latter, it is not 
 easy to estimate. I think it quite safe to put this esti- 
 mate at fifty to one ; that is, the work of one man 
 under civilization will produce what would require 
 fifty untutored men to produce in the same time. But 
 to avoid what to some may appear extravagant, put this 
 ratio at ten to one, which is certainly very moderate. 
 This shows that one man with the instruments of 
 civilization will produce as much goods that are called 
 for by the wants of men, as ten men in an untutored 
 
INTRODUCTION. II 
 
 state. This result is reached by the skill and other 
 instruments that have been provided by civilization. 
 
 If the higher classes of skill (not the highest) are 
 equal to the labour, and all other instruments equal 
 these, then we have the product of one skilled labourer as 
 equal to that of ten untutored men. In many industries, 
 and indeed in nearly all, the difference would be much 
 greater ; but we see in even this moderate estimate, how 
 vast is the superiority of civilized over untutored labour 
 in production. This is not a result for a few, but in all 
 the arts that are engaged in fabricating goods that are 
 wanted for the use of men. And not merely in the 
 mechanic arts, but in those improvements that greatly 
 increase the production of the soil. It is these cir- 
 cumstances in civilization that have raised the question 
 of labour and capital. It brings into contest the la- 
 bourer and the instruments of his labour. This con- 
 test cannot occur if the workman furnish his own in- 
 struments ; but to a large extent the labourer depends 
 on the capitalist to furnish the instruments, and here 
 the contest enters. In the following pages I have 
 aimed to show this must be adjusted in the same way 
 as all commercial transactions are, namely, under the 
 law of demand and supply. 
 
 The progress of civilization, or what is substantially 
 the same thing, the useful arts, has advanced most 
 
12 INTRODUCTION. 
 
 rapidly in countries that were under free governments, 
 or where civil liberty was enjoyed, and where freedom 
 of industry' has been alike secured to all, and no special 
 favours by law or usage to any. It is the government 
 most eminently beneficial to the working-man. It is 
 in fact the only one under which he has a fair field 
 to make the best of his industry; while at same time 
 it holds him to his personal responsibility in providing 
 for his own wants. 
 
 The object I have had in view in writing the fol- 
 lowing pages, has been to show that American work- 
 ing-men have a good field for their industry, and the 
 power to provide for their own well-being. I should 
 perhaps say young men, as no doubt many of the 
 older members have passed the time and opportunity 
 of their day. In regard to this position, it may be 
 inquired — Have you fully considered the tendency of 
 ignorance, prodigality and vice, that largely prevails 
 among men, and the adverse influence these will exert 
 to counteract your advice, and to break down the 
 barriers you have raised t In reply, I am fully aware 
 of the fact, that there are strong tendencies in the 
 human mind to resist the best advice that can be given, 
 and that these influences have so far prevailed as to 
 give us a large class of dependent, and to no inconsid- 
 erable extent a degraded class of men. 
 
INTROD UCTION. 1 3 
 
 On the other hand, it is beyond dispute that a large 
 class of our American working-men, who had no other 
 opportunities than those above mentioned, have reached 
 conditions of comfortable independence and some of 
 large wealth. Whatever may have been the circum- 
 stances that have given rise to the wide differences 
 that have appeared, it cannot be claimed as arising from 
 difference in corporeal power, or even in mental power. 
 It has, beyond question, resulted from a difference in 
 education and moral energy. 
 
 Looking back three centuries, at the condition of 
 what was then regarded as the civilized world, what 
 would have been said of a man who, at that day, 
 should have predicted a state of society such as now 
 exists in these American States ? Doubtless he 
 would have been regarded by the ruling class of men 
 as a fanatic — feeding on a wild imagination, and 
 that the interests of society demanded the forcible 
 suppression of his wild vagaries, as tending to disorder, 
 anarchy and confusion. The progress from that day 
 to this has certainly been slow ; the fanatics from time 
 to time have been put down, but the truth that was 
 involved, though covered by the dust that seemed to 
 bury them and their principles, would take root and 
 vegetate, spring up again and again ; men improving 
 on each successive growth in their own knowledge of 
 
14 INTRODUCTION. 
 
 the great truths which at first they only saw dimly. 
 At length the great truth, that man has " certain 
 inalienable rights, of life, liberty and the pursuit of 
 happiness," that no power of authority or usage has 
 any right to meddle with or resist, came to be the 
 great principle of Institutional law in these States of 
 America. Thus the great principle gained a solid 
 foothold. The prejudice of education and caste is not 
 easily removed, and long-continued struggle was ne- 
 cessary to establish this great principle. It is, how- 
 ever, manifest beyond controversy, that progress has 
 been made in the advance of truth, and we are encour- 
 aged, yea, warranted, to hope for its further advance- 
 ment, in ways that will ameliorate the condition of 
 men. 
 
 It is in this faith I have written this book, in the 
 full conviction that the American young man, in 
 either mental or manual labour, has the fairest field 
 before him that has ever been enjoyed in any age or 
 country, and that he is indebted for this to our civ- 
 ilization, whereby he is provided with the instrumen- 
 talities accumulated by the labour, skill and persever- 
 ance of his predecessors, making his labour vastly 
 more productive for himself and also for society ; all 
 secured by the beneficent care and protection of our 
 free government. 
 
INTRODUCTION. 1 5 
 
 The great progress I have noted in ages that have 
 passed, made against the general opinions of men, 
 and under circumstances that gave no liope to any, 
 except those regarded by common consent as dream- 
 ing and wild visionaries, affords good ground to hope 
 for still greater progress, and for a large reduction of 
 the ratio of the dependent class of men. At the same 
 time I am well aware of the difficulties in the way of 
 moral advancement, and do not expect very rapid im- 
 provement. But it is undeniable that, notwithstand- 
 ing the impediments in the way, great and highly 
 beneficial results have been attained, and we are there- 
 fore justified in the faith, that cultivation in morals 
 and useful education, will carry us forward to a hi!;;;he-r 
 degree of civilization. 
 
 The great point is, to bring to the conviction of 
 every young working-man the great truth, that he has 
 the power to elevate himself and take his rank among 
 independent men. To incite him to see, that what 
 has been done by others he can do. It has been my 
 effort to so discuss this subject that more or less of this 
 class may see this, and so employ their powers as will 
 not only improve their well-being in material means, 
 but give them the character of upright citizens, fully 
 able to maintain, improve and hand down to their 
 posterity the great blessing of a high civilization. And 
 
1 5 introduction: 
 
 I hope in God my effort may be somewhat useful as 
 encouraging young men to lay hold of the advantages 
 that are before them, and by a manly energy secure 
 their own well-being, and establish the character of 
 upright and useful citizens. In this view I commend 
 the following pages, and fully believe that many will 
 consider my advice, and thereby realize my hope that 
 my labour will not be in vain, and will tend to reduce 
 the ratio of the dependent to the independent class 
 of men. No doubt there are some who cannot be 
 reached by any advice, and will still furnish material 
 for, not only the dependent, but also for the degraded 
 class. 
 
 Public and private interests are concerned in this 
 question ; for whatever promotes the well-being of the 
 individual, advances the public interest. In this view 
 the public should provide for elementary education. 
 Ignorance is the parent of indolence and waste, and 
 these stimulate crime, and train up a class of men 
 who are at war with society. The men who by dili- 
 gent industry and lorudence secure their own houses 
 for residence and provide for the education and well- 
 being of their children, are not found among those 
 who congregate for schemes of dissipation, violence 
 and plunder. Every one that can be added to the in- 
 dependent class, so far reduces the number of the 
 
INl'RODUCTION. 1 7 
 
 dependent class, and thereby increases the safety, 
 good order and prosperity of society. 
 
 The conclusions presented in the following pages 
 have resulted from the experience and observations 
 of a long life, in which I have had opportunity of ex- 
 tensive intercourse in the business walks of life, to 
 notice the tendency of men in the conduct of their 
 affairs. In this I have seen one man with no supe- 
 riority of ability, rising to a condition of usefulness, in- 
 dependence and respectability, and another, with no 
 lack of capability, except in the moral tone of his mind, 
 failing to reach a respectable independence, and clos- 
 ing life in circumstances of want. The question is 
 evidently a moral one, and though moral improvement 
 is not readily made, it has been made — is practicable, 
 and the only foundation for the happiness of men. I 
 therefore earnestly commend this subject to the 
 young working-men, as entirely within the reach of a 
 manly enterprise and indispensable for their happiness. 
 They have only to exercise the capability they possess, 
 in a proper manner, in order to reach that degree of 
 independence which gives character and personal dig- 
 nity. If, on the other hand, they have not the moral 
 nerve to improve their powers, they will inevitably, 
 sooner or later, be compelled to take their place in 
 the ranks of the dependent class. It is a question 
 
1 8 INTRO D UCTIOM. 
 
 every young man must decide for himself, and if he 
 choose the manly course, barring incidental circum- 
 stances that will sometimes be adverse to success, 
 he will steadily rise to the condition of a useful and 
 upright citizen, as all should do, in this free country, 
 where every one has the full privilege to make the best 
 of his situation. 
 
 The working-man has no just ground to be hostile 
 to capital. He is aided in his work by the instruments 
 provided by capital, as he will see by comparing the 
 results of his labour with these in his hand, with what 
 it would be, if no such instrument could be had. It 
 will require but little reflection to see the truth of 
 what the economist " About " says : " Capital is the 
 instrument civilization has put in the hands of labour." 
 
 Capital is not an accident, nor in general the result 
 of fortune. It is a thing acquired by what the 
 "economists " call abstinence, that is, a man gathers 
 by industry, and what he does not expend for any 
 present use, he lays aside as an instrument fcr the 
 future, regarding the present sacrifice as more than 
 compensated by the beneficial use that will ultimately 
 result from this abstinence. In this way he accumu- 
 lates the instruments that facilitate or increase the pro- 
 ductions of his labour. It may often be noticed as an 
 observation of working-men, that the capitalists are 
 
introduction: iq 
 
 fortunate men, and of those not capitalists, that they 
 are unfortunate. No doubt there are circumstances 
 that may and often do favour a man in the conduct of 
 his labour. But in general these may be regarded as 
 exceptional cases, when applied to large classes of 
 men. In a country governed by Institutional law, 
 or under civil liberty, where no class has, by law or 
 usage, any privilege or right that is not equally enjoyed 
 by all classes, there is no just ground of complaint on 
 the part of any. All may succeed if they properly 
 apply their powers. It is not fortune, but prudence 
 and manly effort that makes the distinction. 
 
 As above noticed, it is very possible, and even 
 probable, that one man may enjoy in some way superior 
 facilities that may favour the productions of his labour. 
 But this only accounts for a difference in degree of 
 success. It is still true as a general proposition, that 
 the capitalist reaches his position by the diligent, 
 prudent and economical conduct of his affairs. He 
 sets out with a purpose to improve his well-being, and, 
 with patient perseverance in his mind and labours, in 
 due time reaches the result he had purposed. This 
 course, under free government, is equally open to all 
 men. If this is correct, why then do so large a propor- 
 tion fail to improve it } If one class of men reach so 
 desirable a condition of independence, why not all .' 
 
20 INTRODUCTION. 
 
 That some do not reach this condition, arises from the 
 fact they are not willing to practice the industry and 
 abstinence necessary to secure the benefits of their 
 own well-being. It is not always the case, that the 
 latter class are indolent or incompetent. They have 
 industry and capacity for business, but they are in too 
 great haste for results — have not the patient perse- 
 verance that can wait and restrain their desires. The 
 slow and steady gains of well-directed industry and 
 frugal habits, do not satisfy their ambition. The 
 process appears too slow, and with a view to hasten to 
 their goal, they engage in speculative operations, and 
 not uncommonly outside of their regular calling, 
 entering a field they have not properly surveyed, and 
 of course very likely to lose what they may have 
 gained. If one unsuccessful attempt would cure them, 
 and bring their minds to return to and diligently 
 pursue their regular calling, it might be expected they 
 would profit by the development of their errors. But 
 this rarely happens, and the resistless appetite for rapid 
 gains tends to throw into the shade, if it does not de- 
 stroy, the hopes of regular industry ; and so they go 
 from one failure to another, until all relish is lost for the 
 steady gains of industry, and their lives' end in failure. 
 It often happens this class are intelligent men, able to 
 discuss affairs so well that their friends wonder why 
 
INTRODUCTION. 21 
 
 it is they do not succeed ; — that so much abihty 
 should fail, and want instead of prosperity should be 
 the result. The cardinal difficulty in their case is, 
 they eschew the methods that experience has marked, 
 out, and hasten by an untried process to reach results 
 that can only be obtained by systematic and patient 
 perseverance. 
 
 In this land of Institutional law, capitalists are the 
 men who have accumulated by saving. It is in this 
 way they have provided the instruments of labour for 
 their own use, and for the class who have not practiced 
 the necessary abstinence. These instruments are 
 only accumulated under Institutional law, where every 
 man is protected in the enjoyment of his own labour 
 and enterprise. Without such protection there can 
 be no adequate security, for no man accumulates if 
 he is in danger of spoliation ; consequently under the 
 apprehension of being deprived of their enjoyment, 
 no such instruments can be had, and men must be 
 content to do the best they may without them. There 
 is no escape from this. 
 
 What the working-man, as he enters on his career 
 of industry should regard, is the fact, that these instru- 
 ments of civilization are a great benefit to him. He 
 finds them at his hand ready for use, and it is his in- 
 terest to make the best use of them he may be able. 
 
22 INTRODUCTION. 
 
 It will be in his power to accumulate these instruments 
 to a certain extent as his own, and this by the same 
 means the capitalist accumulates them before him. 
 So far as he does this he will enjoy the profits of his 
 instruments in addition to the wages of his labour. If 
 the instruments are too expensive for the means of the 
 workman, he must depend on some carpitalist who has 
 provided them. In the latter case the workman must 
 pay the capitalist in the form of interest or profit for 
 their use. This is simply justice, and precisely what 
 the workman will expect from his junior workmen, 
 when he himself has become the capitalist. 
 
 On the other hand, let the working-man consider 
 wnat would be the situation if no such instruments 
 had been provided. He must go back to the uncivil- 
 ized condition of society, where no such instruments 
 were known. How shall he appreciate or comprehend 
 such an alternative as this .-' It is hardly possible to 
 impress the force of this contrast on the mind of any 
 man, surrounded by civilization, when no such alter- 
 native is seen. The idea of making goods by a pro- 
 cess that would require a hundred men to do the 
 work of one, cannot be realized under our existing 
 civilization. If, then, the instruments are so important, 
 it is certainly reasonable and just they should receive 
 a profit commensurate with the value of the absti- 
 
introduction: 23 
 
 nence that was necessary to provide them. This is 
 precisely what the working-man will expect, after he 
 has accumulated the instruments by his own absti- 
 nence or saving. 
 
 If there could be any possible ground to doubt the 
 utility of the instruments, it should be carefully ex- 
 amined and exposed. The fact that all prudent men 
 make the exertion of abstinence, in order to procure 
 them, is ample evidence of their usefulness. It is 
 simply because they are an aid to industry, that they 
 are provided or used at all. No workman is com- 
 pelled to use them, nor does he use them, except so 
 far as he regards them a benefit in the productiveness 
 of his labour, that inures to his own advantage. 
 Why then does the workman complain of an instru- 
 ment that increases the benefits of his own labour by 
 amplifying his product } He does not complain of 
 the instrument in itself — but claims, that he should 
 have some portion of the profits of the instrument, in 
 addition to the wages of his labour. Here is the 
 manifest injustice of the claim, and it is at the basis 
 of the conflict between labour and capital. The in- 
 struments and the labour are equally in the open 
 market. The workman can command the instru- 
 ments he needs, at the market rate, in the same way 
 he commands the market rate for his labour. In the 
 
24 INTRODUCTION. 
 
 one case tne labour is sold, and in the other the in- 
 strument is sold, and both are exchanged on the basis 
 of the law of demand and supply. Neither party is 
 compelled to contract, and only enter on engage- 
 ment in view of what they regard as a measure that 
 will promote their respective interests. 
 
 The instrument is a necessity, for the reason 
 that it is a means of production, without which the 
 labourer would be unable to accomplish his work 
 except at a greatly increased amount of labour, and 
 this would be manifestly adverse not only to his own 
 interest, but also to that of the public. It cannot be 
 a question as to whether the instrument shall or shall 
 not be used ; its importance in production is too 
 manifest for this to be entertained, and the only 
 question that has been involved in this conflict is, the 
 relative wages and profits, as between the workman 
 and the capitalist. These parties come together to 
 negotiate terms for their respective services, and 
 stand on the same footing as any parties engaged in 
 buying and selling commodities in all commercial 
 exchanges. In the following discussion I have aimed 
 to show that this transaction between labour and 
 capital is precisely the same as that between any 
 buyer and seller, and has no claim to be regarded in 
 any special sense as a conflict, or more strictly a con- 
 
INTRODUCTION. 25 
 
 test. It may be said in general of all commercial 
 negotiations, there is often more or less of contest, 
 and that between labour and capital is neither an ex- 
 ception nor a peculiarity. They are all governed by 
 the one law of demand and supply. 
 
THE QUESTION OF 
 
 LABOUR AND CAPITAL. 
 
 '' I ^HE question of labour and capital, or their re- 
 -'- lation to each other, has of late been very much 
 discussed on the platform, in the public press, and by 
 formal treatises. The idea very generally entertained 
 has been, that there is something wrong in this rela- 
 tion, which needs in some way to be adjusted. 
 
 In the existing organization in civilized communi- 
 ties, labour and capital are united in the various works 
 of production. In so far as the workmen and capital- 
 ist are the same persons — ^furnishing their own capital 
 and doing their own work, there can be no controversy : 
 wages and profits go to the same parties. The main 
 question in this discussion is with labour and capital 
 as two parties in production. The one receiving 
 compensation in the form of wages, and the other in 
 profits or interest on the capital. The point at issue 
 is, — that the labourer does not receive his proper 
 share in the fruits of production. 
 
 It is important to have terms well understood. 
 Writers on industrial economy have very generally, I 
 
28 THE QUESTION OF 
 
 believe, treated the term " labour and capital" as the 
 proper designation of the relation in which the em- 
 ployer stands to the employed. In his " Treatise on 
 Wages," Professor F. A. Walker does not assent to 
 this term. On page 289 he says : " The true wages 
 question is the question of employment. Hence the 
 popular phrase, ' the contest of labour and capital,' be- 
 comes at once revealed as a misnomer. The true 
 controversy is not between the labourer and the capi- 
 talist, but between the labourer and his employer, to 
 whom labourer and capitalist are compelled to re- 
 sort for the opportunity to produce wealth and derive 
 income." . . . . " The employer, the entrepeneur, stands 
 between the capitalist and the labourer, makes his 
 terms with each, and directs the courses and methods 
 of industry with almost unquestioned authority. To 
 labourer and to capitalist alike he guarantees a reward 
 at fixed rates, taking for himself whatever his skill, 
 enterprise and good fortune shall secure." As this 
 proposition of Professor Walker upsets a long-estab- 
 lished term as a "misnomer," it may be well to 
 examine it. The argument goes to establish the 
 employer as a common contracting party between 
 labourer and capitalist. It is obvious that in some 
 way the employer must make terms with the capitalist 
 for his funds. The supposition is, the employer has 
 
LABOUR AND CAPITAL. 29 
 
 no capital of his own ; if it were otherwise, he would 
 be the capitaHst. How then is he to contract with 
 the capitaUst ? Certainly he must have security to 
 offer for the funds he requires to carry on his work of 
 production. It cannot be supposed the capitalist will 
 contract his funds without security. If the employer 
 gives security, it must be because he has the property 
 necessary for such security, or he must have a char- 
 acter so high the capitalist will furnish the funds on 
 the character of the employer. In the first case, it is 
 evident the employer is the capitalist ; in the second, 
 the capitalist takes the risk of the enterprise on the per- 
 sonal character of the employer, and a failure of profits 
 will fall on the capitalist who furnished the funds. 
 
 The idea of Professor Walker is, I think, that 
 capitalists do not go into production on the basis of 
 profits, but on the basis of loan to producers. Now it 
 is obvious there must be a party that can furnish 
 funds for the business of production ; and these funds 
 can only come from capitalists. If the capitalist fur- 
 nish funds, direct, for any work of production, depend- 
 ing on the profits that may arise from such use of 
 his capital, then there can be no question he is one 
 party in the work of production. If the employer has 
 the funds, or the ability to furnish them on his own 
 security, then he is clearly the capitalist, and the 
 
20 THE QUESTION OF 
 
 only party interested in the profits. In the latter 
 case the capitalist who may furnish funds or loans 
 looks to his securities for interest and the re-payment 
 of his funds, and has not necessarily any interest in 
 the profits of the enterprise. 
 
 In any light in which this question can be viewed, 
 I see no escape from the conclusion, that in some way 
 there must be capital furnished on the basis of re- 
 muneration from the profits of the enterprise. If I 
 am right, then capital must be strictly one party in 
 production ; and I see no more appropriate term for 
 this discussion, than " labour and capital," as the two 
 parties involved in this question. If, as in some cases 
 claimed, the labourer waits for his pay until his 
 product is marketed, then the labourer, so far as his 
 wages is concerned, is the capitalist, and sustains 
 himself on his own means for the time being. 
 
 The employer, in the sense presented by Professor 
 Walker, must not be confounded with the person of 
 superintendent. The latter is employed by the capital- 
 ist not for his capital, but for his skill as an expert in 
 conducting the kind of production they engage in. In 
 this capacity he employs labour, and conducts the 
 affairs of the enterprise under the general advice and 
 instructions of his principals. In this sense he 
 may be regarded as an employer of labour. 
 
labour and capital. 31 
 
 Wages Fund. 
 
 Economists have taken the ground there was a 
 "wages fund" from which wages were paid. In 
 their discussions, they assume no wages can be paid 
 beyond the resources of this fund. That if one class 
 receive a greater proportion than their share, others 
 will receive less. In the discussion of this subject 
 in his treatise on "Political Economy," page 159, 
 Professor Cairnes says : " As I understand this pas- 
 sage (quoting from Mr. Mill), it embraces the following 
 statements : i st. Wages is a general term, used in the 
 absence of any other more familiar, to express the ag- 
 gregate of all wages at any given time in possession of 
 the labouring population ; 2d, On the proportion of 
 this fund to the number of the labouring population 
 depends at any given time the average rate of wages ; 
 3d, The amount of the fund is determined by the 
 amount of general wealth which is applied to the direct 
 purchase of labour, whether with a view to productive 
 or unproductive employment." On page 160, he further 
 states : " Our analysis thus leads us to the result, that 
 the passage quoted from Mr. Mill cannot be taken 
 to contain controversial matter. The statements are 
 such as may not be disputed, once their meaning is 
 clearly understood. At the same time it must be 
 freely confessed that it contains no solution of the 
 
32 THE QUESTION OF 
 
 wages problem : it is not a solution, but a statement 
 of that problem — a statement, as it seems to me, at 
 once clear, comprehensive, and succinct, presenting 
 in clear light the two factors which constitute the phe- 
 nomenon — the wages fund resulting from the direct 
 demand for labour, and the labouring population form- 
 ing the supply. The solution will consist in connecting 
 these factors with those principles of human nature 
 and facts of the external world which form the prem- 
 ises of economic science." 
 
 I do not see any objection to the statement of 
 Professor Cairnes in the three propositions above 
 stated, nor in the paragraph at the close of the second 
 of the above quotations. But if, as he states, " it is 
 not a solution but a statement of the problem," I 
 can hardly appreciate its practical value. There 
 appears a difficulty in ascertaining the value of the 
 factors, without which no definite solution could be 
 reached. No doubt the funds for wages must be ob- 
 tained from capital, and that an increase of capital tends 
 to increase the funds ai3plicable towages, and this may 
 or may not affect the rate of wages, that depending 
 on the supply of labour at the time. 
 
 For a doctrine that has been so largely accepted, 
 and discussed with much ability, it is certainly singu- 
 lar that it has not taken a shape to admit of distinct 
 
LABOUR AND CAPITAL ,, 
 
 solution. What can be the value of the theory of the 
 " wages fund," if we cannot ascertain what the amount 
 of the fund is ? How can we make available, or 
 reach a dividend when the value of the factors is not 
 known ? I am not aware that any one has attempted 
 to establish any rule or process by which it could be 
 determined for any country, among the numerous 
 complications of its industries, what amount had been 
 set aside or estimated for wages. The wages that 
 had been paid in any country, may be ascertained for 
 some previous year, though in the vast complications 
 of numerous industries, this would be attended with 
 great difficulty. So far as ascertained they would be a 
 guide as to what the " wages fund " may be for the 
 next year. At best, that I can see, this would be 
 only an approximation ; and considering the changes 
 that frequently occur, by which one industry would 
 be increased and another diminished, could hardly 
 afford a basis of definite determination for any par- 
 ticular industry for the ensuing year, what the rate of 
 wages should be ; which is the solution sought. 
 
 Professor F. A. Walker (" wages question ") has 
 discussed the "wages fund," and regards it as no solu- 
 tion of the wages question. He is the only author 
 I have met who takes exception to the doctrine of a 
 " wages fund." For the following reasons I consider 
 
34 THE QUESTION OF 
 
 Professor Walker correct in the conclusions he has 
 drawn. First, I see no practicable method of ascer- 
 taining what amount of capital may at any time be 
 set aside as a fund for the payment of wages. Second, 
 if the aggregate fund could be ascertained, I see no 
 way that a disposition of the fund could be so appor- 
 tioned to each of the numerous industries as would 
 determine the rate of wages in each. The circum- 
 stances that affect the market for products, must 
 influence the rate of wages, rising at one time with 
 one branch of production, and falling with another. 
 If this is correct, it leaves the " wages fund " as no 
 solution, or of no practical value in determining the 
 rate of wages at any particular time for any special 
 industry. 
 
 So far as I can see, the doctrine of a " wages fund " 
 has no further value than that an increase of capital 
 may be regarded as tending to increase the ratio of its 
 appropriation to objects of production. In this, capital 
 will seek those industries that promise the best profit. 
 
 Wages Paid out of Capital. 
 
 In his discussion of this question, Professor Walker 
 takes the ground that wages are paid out of production, 
 and not out of capital, and therefore there can be no 
 
LABOUR AND CAPITAL. 35 
 
 " wages fund." No doubt the production is relied on 
 as the ultimate resource for the payment of wages ; 
 but I think it a very general practice to pay wages 
 before the product is available, and certainly the avails 
 of production in such case must be anticipated by the 
 appropriation of capital. If a labourer can support him- 
 self until his product is marketed, he then furnishes the 
 capital necessary for his support, while he labours for 
 his wages. So far the labourer becomes the capitalist. 
 This is the case with all labourers who furnish their own 
 capital. Farmers, especially in the employment of 
 single or unmarried men, by the season, often pay at 
 the end of the season, the farmer furnishing the 
 board or living of the labourer. If the labourer has 
 a family to support, the farmer will generally be re- 
 quired to advance on his wages, if he does not pay 
 monthly. 
 
 In manufacturing industry it is the general practice, 
 so far as I have known, to pay labour semi-monthly, or 
 monthly ; and as the goods made cannot be marketed 
 so as to realize the proceeds until some months after 
 the labour is performed, capital must come in for the 
 payment of wages. No doubt there are manufac- 
 turers who do not pay in this prompt manner, and 
 sometimes resort to the method of truck or store pay, 
 a method not to be commended, and always indicating 
 
36 THE QUESTION OF 
 
 a dependent condition of the labourer. But as before 
 stated, when wages is deferred, the labourer so far be- 
 comes the capitalist, supporting himself until the pro- 
 duct is marketed. 
 
 I concede the proposition, that production must 
 pay both wages and profits, though capital is necessary 
 to anticipate wages until production can reach a mar- 
 ket. This is true, whether the labourer furnish it him- 
 self, or it be furnished to him by his employer. 
 
 Competition and Market. 
 
 In the transactions of men for the sale and pur- 
 chase of goods, competition and the market will rule 
 their trade. To illustrate : let A desire to make pur- 
 chase for a certain class of property that is held by D, 
 and if E and F hold on sale the same class of prop- 
 erty, A will avail of the competition that may be of- 
 fered by D, E and F to obtain a favourable rate. This 
 is obviously favourable to A ; but if A, B and C desire 
 to purchase, and there is only D that has that class of 
 property on the market, then the competition will be 
 in favor of D, and he will obtain the highest price that 
 either A, B or C may be willing to pay. Jn either 
 case, the rate will be settled by the supply and demand 
 for that particular class of property or goods on the 
 market. However far apart the parties may com- 
 
LABOUR AND CAPITAL. 57 
 
 mence negotiation, they will come at what they under- 
 stand to be the market rate, before they close the 
 transaction. It is immaterial whether the negotiation 
 is on a cash or credit basis. Parties in such negotiations 
 are very likely to look each to his own view of the 
 market, and thereby produce much contest, in sup- 
 porting their respective views. But however they 
 contest that the seller cannot afford the goods at so 
 low a rate, or the buyer that he cannot afford to pay 
 so high, if they consummate the transaction, it will 
 be on the market value, whether under competition or 
 not. Here we see the general method of business, 
 though in many cases there is so little disparity 
 of opinion as to the market value, that little or no con- 
 test is experienced. Men of business will not waste 
 time in contest over what they know to be the market 
 value ; so well is it understood as the basis of all regu- 
 lar business transactions. 
 
 In the above remarks, it is understood, the parties 
 stand on an even basis, and no peculiar advantage held 
 by either. Notwithstanding it is a contest or conflict 
 more or less severe, according to the position of the 
 respective parties and their appreciation of the con- 
 dition of the market, it rests on the law of supply 
 and demand, and though one or the other may com- 
 plain, it is submitted to as inevitable when the transac- 
 
33 THE QUESTION OF 
 
 tion is closed. No one complains of this, and in fact 
 no other rule could be substituted. 
 
 Is there then any reason why the negotiations 
 between labour and capital should not be adjusted on 
 the same principle as in the case above stated be- 
 tween buyer and seller } The capitalist desires to 
 purchase labour on the best terms the market will 
 allow, and the labourer sells his labour for the best 
 wages he can command. If there is more work to be 
 done than labour to perform it, the competition will be 
 in favor of the workman, and the market in his favour ; 
 on the other hand, if there are more workmen than 
 work, capital will have the advantage. The case is 
 clearly parallel to that of buyer and seller — resting 
 on the same basis of competition and the market value 
 of the commodity in question. 
 
 To this it is replied, the parties in the case of labour 
 and capital do not stand on an even footing — that 
 labour is dependent on wages for the means of subsist- 
 ence, and thereby compelled to accept what capital 
 may offer. No doubt there are numerous cases in all 
 departments of business where the parties to an ex- 
 change do not stand on an equal basis of independence. 
 One of the parties may be under pressing need, that 
 brings his negotiations under restraint, and compels 
 him to yield to terms that under freedom he would not 
 
LABOUR AND CAPITAL. gg 
 
 consent to ; but notwithstanding such cases, no one 
 thinks of changing the basis of exchange, leaving every- 
 one to reap the benefit of the favourable circumstances 
 that he may find in his negotiations. The rule is one 
 of general acceptance, that a man is justified in con- 
 cluding the best bargain the condition of the parties 
 and the market will permit. It is impossible to es- 
 tablish any other rule — it is founded on the principle 
 that man is a free agent endowed with power and 
 ability with the duty of taking care of himself. 
 Under this rule an article is worth what it will com- 
 mand on the market. This is precisely correct, though 
 the article in trade may have cost more. This certain- 
 ly offers no excuse for any deception that may be at- 
 tempted. But, it is charged that the capitalist takes 
 advantage of the labourers' necessities, and this gives 
 all the force there is to this controversy on the ques- 
 tion of wages, as in conflict with capital 
 
 In his elements of " Political Economy," sixth 
 edition. Professor Perry on page 136 says: "Capital 
 does not like to lose its profit any more than the la- 
 bourer likes to lose his bread. In a true and general 
 view, the one is under just as much pressure to employ 
 labourers, as the other to get employment. They 
 come together of necessity into a relation of mutual 
 dependence, which God has ordained, and which, 
 
40 THE QUESTION OF 
 
 though man may temporarily disturb it, he can never 
 overthrow." It will be noticed, this view of Professor 
 Perry places the parties on the basis of equality in 
 their negotiations. But while this is true, Professor 
 Perry seems to admit the existence of circumstances 
 that give capital an adva^ntage, though he places the 
 blame on the labourer, as at page 140, he remarks — 
 " It is not denied that capital takes advantage of the ig- 
 norance and immobility of labourers, and sometimes se- 
 cures their services at a less rate than the just relations 
 of capital and labour then and there would indicate ; 
 but the remedy for this is not in arbitrary interference of 
 government in the bargain, but in the intelligence and 
 self-respect of the labourers which shall fit them to in- 
 sist on a just bargain. In this whole sphere of ex- 
 change, the just and comprehensive rule always will 
 be, that when men exchange services with each other 
 each party is bound to look out for his own inter- 
 est, to know the market value of his own service, and 
 to obtain the best terms for himself which he can 
 make. Capital does this for itself, and labourers ought 
 to do this for themselves, and if they are persistently 
 cheated in the exchange, they have nobody to blame 
 but themselves. Government should give them all 
 facilities forintelligence : they should give themselves 
 a character, and cherish a hearty self-respect, which 
 
LABOUR AND CAPITAL. 41 
 
 there is nothing in their position to diminish ; towards 
 such labourers, capital occupies no vantage ground in 
 an exchange of mutual services." 
 
 The substance of the above quotation is, that 
 the laws of trade must govern in the exchanges of 
 labour and capital, same as in other exchanges, and that 
 the labourer must depend on himself to obtain a stand- 
 ing of equality with capital. Tacitly, it is an admis- 
 sion the present condition of labourers does not in 
 general maintain this equality. 
 
 Professor F. A. Walker, in his " wages question," 
 page 291, remarks; "Since, then, the employer gets 
 his profits only as the labourer gets his wages, 
 and because the labourer gets his wages it is 
 difficult to see that the employer is any more neces- 
 sary to the labourer than the labourer is to the employer, 
 or that either has any natural advantage over the 
 other." Again, at page 295, Mr. Walker says : "We do 
 not, then, find any ground for attributing to either 
 employer or labourer a natural advantage over the 
 other." Notwithstanding these positions, in alluding 
 to the poverty of labourers, which he says is not uni- 
 versal but very general, on page 297, makes the fol- 
 lowing remark : " They are, therefore, unable to stand 
 out against their employers and make terms for their 
 services, or to seek a better market for their labour in 
 
42 THE QUESTION OF 
 
 another town or city, but must accept the first offer 
 for employment, however meagre the compensation." 
 ..." They lack the primary physical means of sustain- 
 ing that contest." At the same time Professor Walker 
 sets forth reasons to show that capital has a strong 
 interest to yield to the workmen in the contest. He 
 discusses with much fulness and fairness the circum- 
 stances of the two parties. 
 
 In regard to the labourer. Professor Walker sets 
 forth the difficulties in regard to mobility, as a reason 
 the labourer is not able to avail of the competition for 
 labour in other towns than the one of his residence. 
 Though the expense of mobility is greatly less in 
 regard to time and money than it was half a century 
 ago, it is no doubt serious to most labourers, and as 
 Mr. Walker discusses it, a great impediment to se- 
 curing the benefit on the part of the labourer of general 
 competition. 
 
 This subject is discussed under a somewhat dif- 
 ferent aspect from either Professors Perry or Walker, 
 by Professor Cairnes in his "Political Economy." 
 Professor Cairnes at page 233, says : " I hold that, at 
 least in countries in which the industrial and com- 
 mercial spirit is strong, the power of capitalists by 
 combination to depress wages or to keep them down 
 is not a whit more real than that of workmen by 
 
LABOUR AND CAPITAL. 43 
 
 similar means to force them up. Either may, no 
 doubt, effect their object for a time; but neither, as I 
 believe, can be permanently successful." In his 
 further discussion he points out the difficulties under 
 which labour is placed, and makes the remark page 
 285 — " I am, therefore, on this point at one with the 
 socialists ; but while I agree with them so far, I am 
 wholly unable to accept the means which socialism 
 proposes for effecting the required elevation. The 
 leading idea in most schemes of socialistic reform is 
 the notion of raising labourers from dependence on the 
 labour market by throwing on society, in the person 
 of the State, the duty of providing them with capital. 
 Now by whatever means it is sought to give effect to 
 this idea — whether through the mechanism of a State 
 Bank," " or by loans without security," " one and 
 all are open to the objection of doing violence to 
 the principle of property, the weight and scope of 
 which objection I have already sufficiently insisted 
 on." On page 287 Professor Cairnes says : " Keeping 
 this object in view, I think it should at the outset be 
 clearly laid down that tljere is no royal road to the 
 possession of capital. Capital can only be created by 
 saving, and, where people have not saved themselves, 
 can only be honestly obtained by offering to those 
 who have saved, an adequate inducement in the form 
 
44 THE QUESTION OF 
 
 of security and interest to prevail on them to part 
 with it. If, then, the labourer is to emerge from his 
 present position and become a sharer in the gains of 
 capital, he must in the first instance learn to save." 
 This advice of Mr. Cairnes is excellent, and should 
 be fully considered by every labouring man, and es- 
 pecially the young. 
 
 After pointing out the means the labourer has for 
 effecting savings. Professor Cairnes, at page 289, says : 
 " To say this, however, is by no means to say that 
 the labouring classes, as a whole, are now prepared to 
 enter on this path, or that any very great change in 
 our modes of carrying on industry can soon or easily 
 be effected. I am far indeed from thinking so. 
 But here again I desire to point out that the obstacles 
 in the way are not physical, are not even economic, 
 but moral or intellectual ; or if economic, only in so 
 far as economic results depend on intellectual and 
 moral conditions." From the above it will be seen 
 Mr. Cairnes' hopes are not very strong for improving 
 the condition of the labourer. 
 
 Mr. Washington Gladden, in his book on " Working 
 Men and their Employers," has discussed the question 
 of labour and capital in a very practical manner. Mr. 
 Gladden frankly examines both sides of the question, 
 and finds merit and fault with each party. It is, how- 
 
LABOUR AND CAPITAL. 45 
 
 ever, obvious that he is under the impression there is 
 some hardship towards the labourer that ought to be 
 ameliorated ; but he places his hopes of this on the 
 basis of moral and intellectual culture. Mr. Gladden 
 has large hopes from co-operation, and none at all 
 from communism. His book may be read with profit 
 by both working-men and capitalists ; and I hope it 
 may have a large circulation. His discussion of the 
 influence of intoxicating drinks is very sensible, and 
 should not fail to exert a highly favourable influence. 
 In the recent work of Mr. J. N. Larned, " Talks 
 about Labour," I find some curious propositions, mak- 
 ing the labourer a very impotent member of society. 
 Mr. Larned says, page 23 : " Here, then, entangled 
 helplessly in the meshes of the vast net-work of this 
 modern organization of labour and exchange, stands 
 the man who has hands and brain, intelligence, strength, 
 and will to work, according to the demand of nature, 
 for what he needs, but who stands empty-handed 
 — with no accumulation of things hitherto pro- 
 duced — no capital. What can he do .' There are no 
 wild creatures any more within his reach that he can 
 hunt for food, or whose skins he can appropriate for 
 clothing. There is not an animal that he can kill 
 which is not the property of somebody — stamped with 
 the right of possession by acquirement or accumula- 
 
46 THE QUESTION OF 
 
 tion." This is certainly singular language in a country 
 in which labour is free, and the rights of property 
 secured to all who are willing to practice the industry 
 and frugality by which all property is accumulated. It 
 is evident Mr. Larned is at war with the existing sys- 
 tem of labour, regarding the labourer as suffering 
 from the oppression of capital, or from the accumula- 
 tion of others. But he has not left the subject quite 
 so bald as this, — not quite so ready as it would seem, 
 to abandon civilization and take to hunting for animals 
 that belong only to those who can take them. 
 
 At page 44, Mr. Larned says : " First of all, there 
 is the capital that has been accumulated in the hands 
 that hold it by industry and economy ; by hard work, 
 producing as much as possible, and by saving or un- 
 wasteful habits, consuming as little as may be." This 
 is sound economy. Mr. Larned goes on to discuss 
 other methods of acquisition, which he approves 
 in part, and condemns in part ; it is not necessary to 
 follow these, as we are discussing the relations of labour 
 and capital, and the admission above quoted shows Mr. 
 Larned to believe that accumulation may be by labour 
 and saving. 
 
 Mr. Larned says, page 75 : " A man cannot be a good 
 artisan or mechanic in any kind of hand-labour which 
 makes the least demand upon intelligent faculties, 
 
LABOUR AND CAPITAL. 47 
 
 without concentrating so much of all his powers upon 
 the immediate object of his labour, that he is com- 
 pelled to trust its ultimate results, so far as his own ben- 
 efit is concerned, to other agencies." This is certainly 
 taking from the labourer all hope of improvement by- 
 cultivating his intellect, except so far as this may be 
 brought to bear on the article he manipulates. Still, 
 Mr. Larned is evidently engaged in an effort to pro- 
 mote the elevation of the labourer ; though it is diffi- 
 cult to see how this can be done by any other means 
 than by the elevation of the labourer in mental and 
 moral culture. 
 
 Again, on page jZ, Mr. Larned says : " I am con- 
 vinced that the desertion and deterioration of mechan- 
 ical industries will continue to be an increasing evil 
 until we have begun in some way to cut down the 
 excessive premiums which our present adjustment of 
 the relationships between capital and labour puts upon 
 those faculties and energies that enter into what we dis- 
 tinguish from other labour by calling it business." The 
 idea of Mr. Larned appears to be, that labour does not 
 get its due share in production. The remedy called for 
 by him is a union in some way between labour and 
 capital, by which the labour will participate in the 
 profits of capital. If I understand him, the plan of 
 organization for production is to be such that the 
 
48 , THE QUESTION OI- ■ 
 
 labourer will have some portion of the profits of capi- 
 tal in addition to his wages. It is obvious this claims 
 for labour something beyond the market value of 
 wages out of the profits due to capital ; in other words, 
 the labourer is to have some portion of the profits due 
 to the instruments, though he has not accumulated any 
 portion. It must be remembered that under our or 
 ganization of labour, wages is paid before anything goes 
 to profits of capital, and if the production is unprofit- 
 able, capital must first lose. The labourer does not lose 
 unless the capitalist fails, and consequently loses all 
 profits. This feature in our organization of labour 
 should not be lost sight of. It is clearly in this feature 
 the labourer has the advantage over the capitalist. 
 
 In any production that may admit of being worked 
 on shares, by which a certain part is to go to the la- 
 bourer, and a certain part to the capitalist, there can be 
 no objection to the method of providing specifically what 
 portion each shall have. In such case the risk of loss 
 would fall equally on both. In the work of farm pro- 
 duction, this share plan is often adopted, as when a 
 capitalist furnishes a farm and contracts with a ten- 
 ant to receive in lieu of rent, a certain share of the 
 product. This is often done in agricultural affairs, 
 but in that case the tenant supports himself and pro- 
 vides the labour and materials necessary to cultivate 
 
LABOUR AND CAPITAL. ^g 
 
 the farm. In fact the tenant must have some capital, 
 and of consequence a portion of the instruments of 
 his labour. 
 
 At page 80 Mr. Larned says : " One becomes nat- 
 urally the employer, and one the employed, instead of 
 each being the employer of the capabilities of the 
 other on fairly adjusted terms. One receives his daily 
 rate of wages, fixed for the most part by the average 
 state of need in his class ; the other makes what he 
 can out of the bargain, and drives it hard to make the 
 utmost. It is very plain to me that no equity in the 
 partitioning of the products of human industry can be 
 had under the wages system that we now maintain." 
 
 It will be noticed that Mr. Larned rests his plan 
 for the improvement of the labourer on some method 
 of contract with the capitalist, though I do not see that 
 he specifies the method to be adopted, as to how these 
 parties are to form this co-partnership or contract for 
 production. From his discussion of the proposition 
 it is evident he does not consider the world has yet 
 reached that point of civilization necessary to carry 
 out his idea. Speaking of the time it will require to 
 educate men up to his system, or ideal system, he 
 says, page 96 : "I do not expect it very soon. I am not 
 sure we are within ten centuries of it yet." This is 
 certainly " hope deferred." It may be that some men 
 
 4 
 
50 THE QUESTION OF 
 
 may work under the impulse of such a hope, but it 
 seems important to examine the matter very carefully 
 and see if it be not possible to find a more speedy so- 
 lution. 
 
 It will be noticed, the authors I have quoted main- 
 ly direct their attention to discover some benefit to 
 the labourer which they suppose he does not now en- 
 joy. I shall have occasion to make further reference 
 to them in the following pages. In the mean time I 
 earnestly recommend to all who desire to follow this 
 subject, a careful attention to their discussions. 
 Though I do not assent to all the positions taken in 
 those treatises, they will be found of great interest and 
 value on the important subject of industrial economy. 
 
 From the authors quoted I make the following 
 
 Deductions. 
 
 First. — That under our present civilization, the 
 productions required to supply the wants of men must 
 be obtained by the united application of labour and 
 capital. 
 
 Second. — That the union of capital and labour in- 
 volves a competition between these parties, as to the 
 wages and profit to each, in the same way that per- 
 tains to all transactions in exchange. 
 
 Third. — That owing to his condition of depend- 
 
LABOUR AND CAPITAL. ^j 
 
 ence, the labourer does not stand in this competition 
 on an even basis with the capitahst. 
 
 Fourth. — That the capitalists (with many excep- 
 tions) are disposed to avail of their advantage, and 
 drive the closest bargain with the labourer that cir- 
 cumstances may permit. 
 
 Fifth. — That the hope of the labourer rests main- 
 ly on the culture of his moral and intellectual faculties. 
 
 Sixth. — That under our present civilization the 
 relations of labour and capital must be determined by 
 the laws of trade, or supply and demand. 
 
 Seventh. — That hope is entertained, though for 
 the most part faintly, of benefit to the labourer from 
 co-operation ; depending on his improvement in intel- 
 ligence and self-control. 
 
 Eighth. — That no benefit can result from any gov- 
 ernment interference or control, other than in main- 
 taining justice; that the organization and prosecution 
 of industrial enterprise is most effective under the 
 scrutiny and supervision of individual control. 
 
 On these several deductions I remark. First deduc- 
 tion — " That under our present civilization, the pro- 
 ductions required to supply the wants of men must 
 be obtained by the united application of labour and 
 capital." 
 
 This implies the co-operation of two parties in 
 
52 THE QUESTION OF 
 
 production, who come together to arrange the amount 
 that shall be paid to the labourer as wages, for his 
 part in the production contemplated. In any discus- 
 sion of this relation it is necessary to understand the 
 characteristics of the respective parties ; for though 
 they are in union in respect to production, they evi- 
 dently have interests in conflict, however these interests 
 may be harmonized to mutual satisfaction. The sim- 
 ple fact is, one party furnishes the skill and labour of 
 manipulation, and the other the instruments of labor. 
 It must be kept in mind, that in the process of 
 civilization it has been discovered there are certain 
 instruments that greatly increase the efficiency of 
 labour. These instruments are produced from the ac- 
 cumulations of previous labour, gathered from the sav- 
 ings of industry and frugality. The motive for collect- 
 ing these instruments is, that they are productive of 
 profit or income to the owner. They consist in land, 
 buildings, machinery, tools, power to operate the mill, 
 raw stock and the wages of labour that must be pro- 
 vided before the avails of the product can be realized. 
 The capitalist relies on his net product to compensate 
 him for the use of his capital and his personal super- 
 vision of the business. It is clear he will not engage 
 in industrial enterprise unless he believes there is fair 
 prospect of his receiving profits that will be considera- 
 
LABOUR AND CAPITAL. jj 
 
 bly more than his funds would command on loan at 
 interest, 
 
 I will endeavour to state the relation of the parties. 
 This will involve the " Second deduction." 
 
 In going into an industrial enterprise, the capital- 
 ist incurs risk. First, the elements may injure or de- 
 stroy his works ; or injury and loss may occur to other 
 parties so as to effect his interest indirectly. Secondly, 
 various circumstances may affect his production, mak- 
 ing it more expensive than he had anticipated. Third, 
 the state of the market may change, so that when his 
 product is offered for sale, its value may be less than 
 he had anticipated, and instead of showing profits, 
 may show a loss. All business men know these con- 
 tingencies enter into all sound calculations in starting 
 an industrial enterprise, especially those of the larger 
 class, of which I am here considering, and in which 
 the question of labour and capital is particularly in- 
 volved. The capitalist will naturally look for at least 
 the prospect of profits that will indemnify him against 
 the hazard he must take. Some industrial enterprises 
 have resulted in large profits to the capital ; but it is 
 well known that many prove very unfavorable; so much 
 so that capitalists are cautious in committing their 
 funds to this kind of investment, and especially the 
 class of large capitalists, who generally prefer to loan 
 
54 THE QUESTION OF 
 
 on interest, even at a much less rate than would be 
 regarded reasonable in industrial enterprises. How- 
 ever strong the confidence of the capitalist in the 
 profits he anticipates, he must take the risk involved 
 in such enterprises. 
 
 In the progress of constructing the works, the 
 capitalist has employed much labour ; but now they are 
 completed and ready for operation, and he will require 
 labour of more or less varied character, to conduct his 
 production. This labour he must have, or his mill will 
 be unproductive. He knew this before he began his 
 enterprise, and based his estimates on what at the 
 time was regarded the rate of wages for the work he 
 needed. For the further illustration I proceed to con- 
 sider the 
 
 Second Deduction — namely, " That the union 
 of capital and labour involves a competition between 
 the parties, as to the wages and profits for each in 
 the same way that pertains to any other transaction 
 in exchange." 
 
 Now, the works having been erected, the parties 
 enter on the negotiation for labour. The capitaUst 
 cannot command the labour without the consent of the 
 labourer, and the labourer will insist on the market value 
 of his labour. The capitalist has no alternative ; the 
 labour he must have or his enterprise must be aban- 
 
LABOUR AND CAPITAL. 55 
 
 doned as a failure. If he will not pay the market 
 price for labour, he has no power to command it. The 
 idea involved in this is the dependence of the capitalist 
 on the labourers required to operate his production. 
 Only under a system of slavery could this be otherwise; 
 and such a system does not exist under this government. 
 We could not always say this — but thanks be to God ! 
 we are now free from legal slavery, that is, personal 
 slavery ; and every man has the right to dictate his 
 own terms for his services. I am aware of the objec- 
 tion that will be urged against this position ; that 
 there are circumstances which give one man so 
 much power over another, as to compel submission of 
 the weaker party. This point I propose to consider 
 in the course of my discussions. 
 
 As previously stated, the capitalist has completed 
 his works, and is ready to go into operation for the 
 contemplated' production. The parties that must co- 
 operate in the enterprise, having entered into negoti- 
 ation for the wages the labourer must have for his 
 part in production, they do not discuss the profits 
 that shall accrue to the instruments, but the value of 
 the labour as established at the time in the labour 
 market. It follows, of course, that if the number of 
 labourers that seek employment in this particular 
 branch of work are numerous, the rate of wages will 
 
56 THE QUESTION OF 
 
 be low ; if, on the contrary, they be comparatively few, 
 the wages will be high. This is the inevitable condi- 
 tion of these parties, and their negotiations will be ad- 
 justed or settled on this principle. It is the business 
 aspect as resting on the laws of trade, that pertains in 
 this, as in all business exchange. The charitable view 
 that is sometimes urged, I propose to examine hereafter. 
 
 The rate of wages will be affected by the skill 
 required, the severity of the work, its hazards to in- 
 juries, and its general influence on health. It is not 
 necessary to discuss these at this time, as they are 
 all subject to the general law of supply and demand, 
 according to their respective influence on the rate of 
 wages. 
 
 It is natural and legitimate for each party to con- 
 duct this class of negotiation on the same basis of 
 interest that controls in all contracts for services. 
 Each is his own guardian, naturally ■and properly, 
 and will be prompted to secure the most favourable 
 result for himself. If the laws of trade are cheerfully 
 accepted, the parties will proceed in harmonious co- 
 operation, and the best practicable result in the wages 
 and profits will be realized. The only objection that 
 I have noticed to this basis of action is, that the 
 workman is less independent, and less intelligent than 
 the capitalist. Certainly the capitalist cannot be 
 
LABOUR AND CAPITAL. en 
 
 censured for this, and it is not to the credit of the 
 workman that it should be so. If the labourer looks 
 fairly at this case, he will see that it would be 
 impossible for him to perform the kind of work con- 
 templated without the instruments the capitalist has 
 provided. If the labourer looks at the subject with 
 intelligence, he will see the capitalist of this genera- 
 tion was the labourer in the past generation ; and if 
 he exercises the same diligence, prudence and frugality, 
 he may expect to be the capitalist of the next gener- 
 tion, or at least to such an extent as will place him 
 in competent independence. I speak particularly of 
 this country, where no right or power of entail secures 
 family possessions; where everyone is at liberty to 
 pursue the branch of labour he prefers, and is secured 
 in the full enjoyment of his own earnings. 
 
 It is strictly true that the capitalist has come to 
 his position by saving from his earnings. Some 
 have reasoned against this, and contended that capital 
 has mainly been accumulated by speculation, by 
 inheritance, or by unjust and fraudulent means. No 
 doubt capitalists have been made by speculative 
 operations, and not always just — that fortunes have 
 been obtained from inheritance, and that fraud has 
 been an instrument of accumulation. What the 
 relative proportion in amount of these may be to the 
 
S8 THE QUESTION OF 
 
 total of capital, I have no means of determining, and 
 can only estimate them from observation. That from 
 inheritance arises mostly from the savings of parents 
 or other friends, from their industry. It is no doubt 
 true that unscrupulous men do sometimes become 
 large capitalists ; but my observation convinces me, 
 and I think it will appear so to those who explore 
 society, namely, that by far the largest number of our 
 capitalists, as well as those who obtain a competent 
 independence, commenced their business life with 
 Httle or no means but their industry, intelligence, and 
 prudence to depend on. This should be, and will be, 
 an encouragement to every industrious, prudent and 
 enterprising man. I know from experience what it 
 is to be a labouring man, and I most unhesitatingly 
 say to every working-man, take the best offer the 
 market will give you, and go to work with confidence 
 in your ability to reach the success of the capitalists 
 that have gone before you, and with manly effort over- 
 come and not succumb to the difficulties that only 
 demand a reasonable energy to clear your path ; giving 
 no heed to the platform and other literature that sets 
 forth your condition as one of impotence and hope- 
 lessness, calling for some amelioration that is not 
 consistent with your manhood. 
 
 I have been thus particular to show that there is no 
 
LABOUR AND CAPITAL. jq 
 
 natural advantage of one over the other, in the negotia- 
 tions between the capitaHst and the intelligent and 
 (as he should be) independent labourer. 
 
 Remarks on my Third Deduction. 
 
 Namely — " That owing to his condition of depend- 
 ence, the labourer does not stand in this competition 
 on an even basis with the capitalist." 
 
 In the preceding remarks, it will be noticed that 
 some reference is had to this point. It maybe gener- 
 ally regarded as practically the condition of the work- 
 ing people in the class more especially employed in 
 the larger establishments of production. So far as 
 this is true, it no doubt arises from a necessity of 
 obtaining prompt exchange for labour, and the want of 
 intelligence and mobility or the part of the labourer. 
 The argument in this case is, that the labourer is in 
 need for his current subsistence, and therefore com- 
 pelled to take what the capitalist may offer. That the 
 labourer cannot delay his negotiation to a more 
 favourable state of the market, for the reason he has 
 starvation before him. While the capitalist, it is pre- 
 sumed, can wait for such change in the market as will 
 best promote his interest. Now as these parties 
 must come together, and as both have interests to 
 serve, they cannot long delay on the question of wages 
 
6o THE QUESTION OF 
 
 unless the enterprise be abandoned. Neither desire 
 this, and they will eventually agree on the basis of the 
 actual market, if they agree at all. Naturally they are 
 on even terms ; at the same time, I think it often hap- 
 pens that the capitalist, from his resources in means and 
 intelligence, has an advantage in this species of ex- 
 change. So far as this may be an evil, it calls loudly 
 on the labourer to so cultivate his means and his 
 intelligence, as to qualify him to maintain his inde- 
 pendence, and secure by manly energy the full market 
 value of his services. The labourer is one party 
 in the negotiation, and if he fail to secure success, it 
 is for him to see the cause of failure to fully obtain 
 the value of his services. The market value is all he 
 can obtain, and it is for the interest of the workman 
 to make the best of this. 
 
 Remarks on my Fourth Deduction. 
 
 Namely — " That the capitalists (with many ex- 
 ceptions) are disposed to avail of their advantage, and 
 drive the closest bargain with the labourer that 
 circumstances may permit." 
 
 In this respect it cannot be doubted there are 
 two classes of capitalists. The First class are those 
 who conduct themselves towards their working people 
 in a spirit of uprightness. They wisely and kindly con- 
 
LABOUR AND CAPITAL. 6i 
 
 sider their situation, and fully meet all their engage- 
 ments with them. They cannot eschew the fundamen- 
 tal principles of business, but will kindly consider any 
 untoward condition of their working people, and ex- 
 tend such relief and sympathy as they may be able. 
 In their intercourse, they will treat their work people 
 with a courteous deportment, not failing any occasion 
 to say a kind word to encourage and cheer them in 
 their work, losing no opportunity to give them good 
 advice in relation to their personal affairs. In this the 
 capitalists have not only the pleasure arising from such 
 course of conduct, but the satisfaction of commanding 
 the best class of working people the market may 
 afford ; and they may expect the least waste in tools 
 and material, and, consequently, the most efiScient 
 workmanship. In regard to the market value of 
 wages, they will look upon the subject with a just 
 regard to the interest of the labourers, while they 
 exercise a discreet regard to the business aspect of their 
 production. They know they cannot neglect the latter 
 without ruin to their entei'prise. 
 
 The Second Class of Capitalists are those who have 
 very little sympathy for their working people. They 
 hold themselves aloof from the labourer, and if they 
 perchance extend any civility, it will be with an air of 
 condescension not pleasant to an American workman. 
 
62 THE QUESTION OF 
 
 Their demeanor will usually indicate a standing quite 
 too far above the labourer to admit his self-respect, 
 and at times they treat him with a severity not at all 
 necessary for any business object. This class regard it 
 necessary to be severe, and hold a dignified eminence 
 among their work people, as a party dependent on the 
 patronage of the capitalist, in obtaining their bread. 
 They enter into no sympathy for the consideration of 
 those circumstances of hardship that naturally call 
 for the aid of kindness. In regard to wages, this class 
 hold rigidly to what they regard the business aspect of 
 the question, and when there is a plethora in the 
 labour market, they are able to command terms 
 that are strictly severe on the labourer. It does not 
 require argument to show that this class of capitalists 
 will not generally obtain the best class of working 
 people. They depend on the vigilance of supervision, 
 and not so much on the character of the workman, to 
 secure favourable results. They generally pay with 
 promptness (though sometimes on the truck method) ; 
 for the wages is the only motive of the labourer. The 
 latter has no inducement as to the fellowship of his 
 relations. The administration of this class may be 
 strictly just, but certainly will not attach their work 
 people, so as to produce any special regard for their 
 interest. Thelabourers will have no particular regard 
 
LABOUR AND CAPITAL. 63 
 
 for the success of the enterprise, except so far as it 
 promotes their own interest. 
 
 The "first class " of capitalists will appreciate the 
 good opinion of the public, as the same will arise from 
 their just estimate of uprightness, and their cordial 
 fellowship in sympathy for the just and proper rights 
 of men. This will naturally draw to them the best 
 class of work people. The " second class " of capital- 
 ists will not much heed public opinion, though they 
 cannot wholly disregard it. They will be compelled 
 to accept such workmen as cannot find employment 
 with the first class. In any event they will only obtain 
 such workmen as, from whatever circumstance, are 
 willing to accept conditions of more or less severity, 
 and will be constantly exposed to lose the best work- 
 men, as they find opportunity for employment on more 
 satisfactory terms. 
 
 It is nof to be understood the "first class" of cap- 
 italists will not govern their affairs mainly with refer- 
 ence to the business object of their enterprise. They 
 will not lose sight of this, nor is it to the interest of 
 the workmen that they should. They know it is in- 
 dispensable the business be conducted so as to provide 
 both wages and profits, or it will of necessity be aban- 
 doned. All intelligent workmen know this, as well as 
 the capitalist. 
 
64 THE QUESTION OF 
 
 The question in regard to the power of the capital- 
 ist is not confined to the negotiations between him 
 and the labourer, but is equally operative in all his 
 transactions in exchange. If he drive a sharp con- 
 tract with the labourer, he will be equally sharp in con- 
 tracting for materials or the sale of his goods, as he 
 may have occasion in the course of general business. 
 There is, therefore, no propriety in making this a spe- 
 cific question as between labour and capital. Whatever 
 there is in this question, is a demonstration of the 
 power of capital to secure the most favourable- ex- 
 change the state of the market will allow. No man 
 should complain of this, but rather regard it a stim- 
 ulus to pursue those means of intelligent industry and 
 prudent management of his affairs which will secure 
 it. It must be kept constantly in mind that it has 
 been by these means the capitalist has secured the 
 advantage of his position ; and what has been done by 
 one may be done by others, having the same energy 
 and self-control. 
 
 Remarks on my Fifth Deduction. 
 
 Namely — " That the hope of the labourer rests 
 mainly on the culture of his moral and intellectual 
 faculties." 
 
LABOUR AND CAPITAL. 65 
 
 There can be no dispute of this. The race of men 
 are so constituted, that improvement in any respect 
 must result from personal or individual effort. There 
 is no other path than this. The institutions that give 
 free action to the individual, and maintain the just 
 rights of all, offer the best basis for the well-being of 
 every one. Under our free government, the field is 
 Open, and the means adequate, for the improvement 
 of those powers God has given us, to provide for all 
 our wants ; and those who improve these powers will 
 secure the blessing, and those who do not, have no 
 right to complain of those that do. The labourer will 
 profit by exercising self-control, and without this, 
 there is no hope of rescuing him from a state of de- 
 pendence. 
 
 Remarks on my Sixth Deduction. 
 
 Namely — " That under our present civilization, the 
 relations of the labourer and the capitalist must be 
 determined by the laws of trade, or supply and de- 
 mand." 
 
 Whatever sentimentalists may urge, there is no 
 escape from this position. It is a natural law, and 
 will not yield to any pleading. The seller may contend 
 he cannot afford to sell at less rate, and the buyer that 
 he cannot afford to pay the rate demanded. It is ob- 
 
 5 
 
65 I'HE QUESTION OF 
 
 vious that numerous circumstances might be offered 
 in this debate, of which the respective parties may 
 have known very little ; yet they will, notwithstanding, 
 refer to and be controlled by the value of the commod- 
 ity in the market. This justifies no deception, and 
 there may not have been any in the negotiation. The 
 simple fact in the case under consideration is, labour 
 is a commodity the labourer desires to sell, and must 
 be governed by the same law that pertains to other 
 property offered for exchange. Its worth is precisely 
 what the market will command. It is simply for the 
 labourer to decide whether it be for his interest to ac- 
 cept the offer that he may have, or look elsewhere for 
 a market. On any business basis it is impossible to 
 conduct industrial enterprise on any other principle. 
 
 Remarks on my Seventh Deduction. 
 
 Namely — " That hope is entertained, though for 
 the most part faintly, of benefit to the labourer from 
 co-operation ; depending on his improvement in in- 
 telligence and self-control." 
 
 I say "faintly," for the authors I have quoted, 
 while they seem to regard co-operation as open- 
 ing the best prospect to the working class, do not 
 disguise their opinion that in the present con- 
 dition of our civilization, the labourers in general 
 
LABOUR AND CAPITAL. Qy 
 
 have not the moral and intellectual quality neces- 
 sary for the successful management of industrial 
 enterprise on anything like a large scale, without the 
 experience of capitalists for executive, or purely busi- 
 ness affairs. In this I think they are substantially 
 correct, but not fully so. I have confidence that the 
 labourers will rise, to a large extent, to such improve- 
 ment of their powers as will give them the full 
 benefit of their labour, whether it be by co-operation 
 or otherwise. This question will be discussed more 
 fully under the consideration of methods and facili- 
 ties for the improvement of labourers. 
 
 Remarks on my Eighth Deduction. 
 
 Namely — " That no benefit can result from any 
 government interference or control ; that the or- 
 ganization and prosecution of industrial enterprise, 
 is most effective under the scrutiny of individual 
 control." 
 
 There can be no doubt of the soundness of the 
 above. It is no part of the function of government 
 to meddle with the affairs of individuals, except to 
 secure the administration of justice. It is the duty 
 of government to protect every man in the rights of 
 labour and enterprise, and take care that no wrong 
 that may be attempted, shall fail of adjudication on the 
 
68 THE QUESTION OF 
 
 basis of justice, and that no one shall hold a privilege 
 not secured to all. When governments attempt to 
 interfere in the affairs of individuals, and dictate as 
 to their rights of labour and exchange, they trans- 
 cend their functions, and injure all labour and enter- 
 prise, and, in fact, vitiate the legitimate duties they 
 were established to promote. 
 
 The latter clause in the eighth deduction, namely, 
 " That the organization and prosecution of industrial 
 enterprise is most effective under the scrutiny of 
 individual control," is equally manifest. There can 
 be no doubt the organization of labour and the 
 administration of the operations of production is best 
 done by an individual v?ho has an experimental or 
 expert knowledge of the processes of his work, and 
 has, or is able to command, the capital required. The 
 next best, or second in order of efficiency is, for two or 
 three such persons to unite in a co-partnership, and 
 by their united capital, industry and skill, conduct 
 the process of production. The third in order is the 
 incorporation of so considerable a number of mem- 
 bers as to require a board of managers to conduct 
 their affairs. In the last there is danger of ineffi- 
 ciency, and of side issues that are adverse to the joint 
 interests, and which are often prosecuted under pre- 
 tense of serving the general good of the company. 
 
LABOUR AND CAPITAL. Qg 
 
 The difficulty in such cases is, the proprietors are not 
 in a situation to understand well the methods by 
 which their own affairs are conducted, and will mainly 
 depend for success on the wisdom they exercise in 
 selecting their agents. 
 
 If we leave the department of productive enter- 
 prise, and look into affairs necessarily committed to 
 government, and trace along up from municipal to 
 State and Federal administration, we shall have abun- 
 dent evidence, as we ascend from the least to the 
 greatest, of a regular advance in improvidence, waste 
 and peculation. The great difficulty in government 
 operations is that they are mostly out of the observa- 
 tion of those who by taxes pay the expense ; and cun- 
 ning men make their living by watching their oppor- 
 tunity to prey on the public, through managing rings 
 and other processes. But in government affairs we 
 have no alternative — we must commit the work to be 
 done to representatives, and in their intelligence and 
 honesty we must confide. In this we are sometimes 
 successful and obtain faithful servants ; but it is certain 
 we often fail. We have no such necessity in the busi- 
 ness of production. 
 
 In view of the fact that the great majority of man- 
 kind must obtain their subsistence from the wages of 
 labour, it is of great importance to investigate the 
 
70 THE QUESTION OF 
 
 plans or methods that have been proposed or may be 
 proposed to ameliorate the circumstances and as far 
 as possible remove the obstacles to their happiness. 
 
 In any view of the labour question, we must not 
 lose sight of the fact that there is a large amount of 
 the productions of exchangeable commodities that do 
 not require more capital for their favourable production 
 than may be commanded by a single workman, or the 
 combination of two or three in working partnership. 
 So far as this extends, there is no contest between 
 labour and capital. Enterprises formed is this way, 
 with small comparative beginnings, frequently grow 
 from the industry and prudence of the men, and so by 
 degrees enlarging the scale of production from their 
 savings, to ultimately reach large dimensions, employ- 
 ing labour as in all large industries. Such move out 
 of the class we are particularly considering. This dis- 
 cussion having special reference to that class of work- 
 ing people who have little or no instrumentalities to 
 aid their labour, and must depend for these on the 
 capitalist, I now proceed to consider the methods 
 that are looked to for their benefit. I commence this by 
 some general remarks, with a view to show the condi- 
 tion of the respective parties, after which I propose to 
 take a view of such measures as have been proposed 
 to improve the condition of working people. 
 
labour and capital. 71 
 
 Remarks on the general Condition of the 
 Parties. 
 
 In all the affairs of business there is more or less 
 of competition, especially with those of the same class. 
 Every producer aims to secure a profitable market for 
 his product. This is a wholesome struggle, bringing 
 out the best results — tending greatly to the public good, 
 in supplying the market with the best and cheapest 
 articles required for consumption. This competition 
 calls out and puts in operation the best method of pro- 
 duction. It is the same in the labour as in the com- 
 pleted product. It embraces not only production, but 
 transport, exchange, and professional service. In all 
 these, labour, skill and capital are combined, and the 
 best result is obtained when these are conducted in 
 harmony, and are most eminent in degree. All exer- 
 cise their powers and facilities in view of the law of 
 supply and demand, depending each on his ability to 
 meet the demand on as favourable terms as his neigh- 
 bour. This is legitimate competition, and calls out the 
 most energetic administration of affairs. Though it 
 be a struggle, it can hardly be called a conflict. Each 
 party has brought into combination the skill, labour 
 and capital required in the production of their respect- 
 ive fabrics, and the contest between them is the nat- 
 ural result of a principle of general acceptance, that 
 
72 THE QUESTION OF 
 
 men strive to do the best they can for themselves. So 
 far, the workmen and the capitahsts are side by side 
 in a common interest in the articles they produce. 
 
 The workmen and the capitalists will each desire 
 for their fabric such a control in the market as will 
 sustain the cost of production. The contest between 
 them is not to enhance or reduce the price of the 
 article, but for the ratio each shall receive of the pro- 
 duct. It is obvious the market price will be regula- 
 ted by the action of others, as well as their own. It 
 will be seen that practically there is a peculiarity in the 
 most usual demonstrations of this struggle, that does 
 not hold in the general competitions of business. The 
 fallacy of the struggle is in the attempt to disregard 
 the laws of demand and supply ; an effort that can 
 only embarrass and tend to produce mischief. Here 
 we have the parties, workmen and capitalists engaged 
 in the production of the same article, and any antag- 
 onism that defeats negotiation is likely to prove in- 
 jurious to both. 
 
 • The rights of parties in this conflict are as readily 
 discovered as in any other competition. The two have 
 each his own rights. The workman has his skill and 
 labour, and the capitalist his capital and administra- 
 tive ability ; each party has equal right to make the 
 most of his own that the market will afford. If capi- 
 
LABOUR AND CAPITAL- 75 
 
 tal is abundant, it must yield to the laws of trade and 
 be content with a corresponding profit or interest. 
 The same holds good with the workman ■ he must be 
 controlled by the same laws of demand and supply. In 
 so far as the workman has command of sufficient capi- 
 tal to provide for the instrumentality of his own pro- 
 duction, no conflict in this respect can arise. Here it 
 is seen how important it is that the workman have so 
 much capital as will suffice to make his labour most 
 productive. This position may be reached in many 
 branches of industry by a young man who has the 
 self-control to make the best of his situation. Such 
 do their own work, and hold their own instruments, 
 securing to themselves both the wages and profits of 
 their production. 
 
 The importance of this question of conflict arises 
 in the cases where large capital, beyond the ordinary 
 means of individual workmen, is required to provide 
 the outlay, and carry on current operations by the 
 most economical process. It is not material in such 
 case whether the capital be furnished by one or by the 
 co-operation of several persons. The necessity of the 
 case is, the fabric to be produced is of a nature that 
 requires for its most economical production, a large 
 outlay in lands, mills, machinery, raw stock and wages. 
 These being provided, it is necessary workmen be 
 
74 THE QUESTION OF 
 
 employed to manage the machinery, and thus bring out 
 the anticipated result in the production of the fabric. 
 Here are clearly two parties ; one would not produce 
 without the other. Each has his right of contract, 
 and a proper motive for securing such result as the 
 market may warrant. 
 
 The capitalist predicates his enterprise on the laws 
 of trade ; based on the ordinary estimates of his pow- 
 er to produce an article that will yield a suitable return 
 for his outlay. In this estimate he considers the 
 rate of wages he must pay, on the basis of the market 
 value of the labour he will require. This must be con- 
 sidered a sound method of proceeding. If the capitalist 
 is an experienced manufacturer, his estimates will be 
 more reliable than if he depend on the advice of an 
 expert he cannot fully know, and who may not thor- 
 oughly understand the details of the proposed work, 
 or he may have some interest not consistent with that 
 of the capitalist. In either case it is subject to con- 
 tingencies that no sagacity may foresee ; a risk that 
 must be taken by the capitalist in all the larger classes 
 of production that engage the enterprise of men. 
 
 The outlay being made — the mills, machinery and 
 tools ready, the workmen enter on the work of operating 
 the mill, having made engagement on certain terms, 
 which, in view of the labour market, they regard as their 
 
LABOUR AND CAPITAL. 75 
 
 interest to accept, and the mill has gone into operation. 
 By and by, as occasion happens, the workmen become 
 dissatisfied with their wages or rate of pay. When 
 they engaged they no doubt considered their agree- 
 ment as the best method of finding a market for their 
 skill and labour. So far as their engagement extend- 
 ed, they were bound in law and equity to fulfil and sat- 
 isfy their contract, same as all men are bound by their 
 contracts. On the other hand, there was the same 
 right of the workmen to demand of the employer 
 the full compliance of the contract on his part. 
 
 No doubt any one has the right on the completion 
 of his contract to seek other engagement if desired. 
 To this no one can object ; and if his workmen leave 
 him, the capitalist must find others to supply their 
 places. There are several causes that may properly 
 induce a workman to leave his occupation in the es- 
 tablishment in which he had been engaged, and if his 
 contract is fulfilled, no one has a right to complain, 
 as it is clearly his right to obtain the best market he 
 can find for his skill and labour. Nor is the case 
 changed if all the workmen in the mill take the same 
 course. They may do this on a question of wages, or 
 in reference to some regulation of rules or method of 
 business. Having completed their engagements, they 
 are at liberty to leave the work and seek employment 
 
76 THE QUESTION OF 
 
 where it promises to be more satisfactory to them- 
 selves. 
 
 Thus far, there is no proper controversy — each 
 party has exercised his legitimate right. But if the 
 workman has taken advantage of some peculiar cir- 
 cumstance whereby the employer is thrown into un- 
 usual embarrassment, then he is wrong, though he 
 may not have violated the letter of his engagement. 
 For instance, the employer may have made contracts 
 for his fabric that he would not have done had he 
 known of the intention of his workmen to leave him ; 
 and their act in this case would be regarded as an 
 effort to coerce him to do what would be under his 
 contract a losing business. This would be a moral 
 wrong on the part of the workmen, if they had given 
 no notice ; and though the owner may have no rem- 
 edy, he will feel that he has not been fairly treated. A 
 further circumstance may influence this question : the 
 workman may consider the outlay in the mill will be 
 unprofitable, or a serious loss to the owner, unless it 
 be operated, and that he will prefer to run it on very 
 small or no profit, rather than have it idle. This may 
 bring the employer to consider if he has not been 
 mistaken in his enterprise. But this cannot be re- 
 called, and if it have any influence, it will probably be 
 to warn him against extension of his works, and oth- 
 
LABOUR AND CAPITAL. 77 
 
 ers from embarking in similar enterprise. If there 
 was no remedy, the interest of both capital and labour 
 would be injured by such controversy, as tending to 
 arrest enterprise. 
 
 If, however, the capitalist has gone into the work 
 with an intelligent understanding of the subject, he 
 probably will not abandon his enterprise. If the work- 
 men he had employed leave him, he will be compelled 
 to look about the market, and if he has conducted his 
 operations with discretion, will find others who will 
 probably be very ready to fill their places. He will 
 know the value of labour in the market rests on the 
 same basis that controls the price of fabrics ; both 
 equally depending on the one law of supply and de- 
 mand ; and this law will not only be respected, but 
 control, whatever any man may do or claim. It will 
 therefore only be a question of time for a new set of 
 men to be provided. This state of things will never- 
 theless be more or less a damage to the capitalist or 
 owner of the mill, and tend to discourage enterprise 
 in the production that may be fabricated. But there 
 is no escape from this contingency. At times the 
 workmen, in order to correct what they regard a 
 wrong, resort to a strike as a remedy. 
 
78 THE QUESTION OF 
 
 Characteristics of a Strike. 
 
 The strike, if general, will probably work an evil to 
 the workman in most cases, as the derangement of 
 business will usually be a damage to both parties. It 
 is productive of a suspension of both wages and 
 profits, that cannot be resumed until the difficulty is 
 adjusted. It is a condition of things that rarely hap- 
 pens, without imprudent proceedings on one side or the 
 other. 
 
 Unfavorably, or perhaps I may say unfortunately, 
 this is not the whole of what is usually termed a 
 strike. If it were, the evil to business would be far 
 less than contemplated by the striking or disbanded 
 workmen. It often, and most generally, happens the 
 disbanded workmen do all in their power to prevent 
 others from supplying their places This no doubt 
 arises largely from the fact that they do not well under- 
 stand the laws of trade, or the laws of society, by which 
 individual rights can be maintained. The workmen 
 have a perfect right to say to others — the wages are too 
 low, or the rules unreasonable ; but any step of coercion, 
 by violence or intimidation, is a rebellion, not only 
 against the laws of trade, but also against the laws of 
 society. For one set of men to say to another, you 
 shall not work except on our terms, and so interfere 
 
LABOUR AND CAPITAL. yg 
 
 with the interest of the second and third parties (there 
 are two parties wronged), is, especially to the obstructed 
 workman, an oppressive tyranny. In so far as such 
 measures are effectual, the workman is restrained of 
 his legitimate right to sell his skill and labour on such 
 terms as he regards his interest. It will readily be 
 perceived, this produces a conflict with the rights and 
 interest of society, who are not only entitled to their 
 rights of labour, but also to the protection of their 
 interest in all that relates to a free commercial activity 
 in both capital and labour. Consequently the govern- 
 ment here steps in, and restrains from all proceed- 
 ings of violence or intimidation that disturb or 
 infringe on the rights of others — ^jeopardize the peace 
 of society, or in any way interfere with the iegiti- 
 mate working of commercial and political freedom. 
 The laws of trade and of civilization are equally to be 
 maintained against any such anarchy and oppression 
 as would result from the tyrannical power by which 
 one man, or one set of men, should be able to 
 say to another— you shall not work, except as I 
 
 dictate. 
 
 Working-men are generally in favour of freedom and 
 the just rights of men. They revolt against the power 
 that would deprive them of these, from whatever 
 despotic source of authority it may come ; and certainly 
 
So THE QUESTION OF 
 
 they should not exercise it against their fellow-work- 
 men. 
 
 Strikes among working-men, of the kind referred 
 to, are simply an effort to counteract the laws of trade ; 
 and so is every device to secure an advantage by any 
 sort of monopoly. In most cases they will be attended 
 by loss, both to workmen and employer. No well- 
 regulated industry ever allows a strike to succeed in 
 its purpose. In view of any change in the market, 
 intelligent business men will regulate the wages they 
 pay on the basis of supply and demand ; and in view 
 of any cause likely to produce dissatisfaction, will 
 timely adjust their affairs to meet the circumstances 
 that may indicate a change in the labour market. A 
 strike may arise from a stringent or oppressive way 
 of the employer ; or the strike may arise from a 
 demand of the workmen that is inconsistent with 
 the condition of the market for labour and the pro- 
 duct of their labour. Obviously the product is 
 affected by the cost of the necessary labour. 
 
 After wages and regulations of work, there is an- 
 other and very unreasonable cause for strikes — that 
 one workman is paid higher wages than aivother in the 
 same department. It is notorious, that some work- 
 men are worth more than others on the same kind of 
 work ; and it is not only unjust the superior workman 
 
LABOUR AND CAPITAL. gi 
 
 should be deprived of the value of his labour, but 
 equally unreasonable inferior workmen should be paid 
 the same wages as the superior. A skilful workman 
 who performs his work faithfully, will rarely have 
 occasion to resort to any other means of redress for 
 any dissatisfaction than to signify to some other 
 establishment that he is ready to engage with them 
 for his services ; while a different sort of work- 
 man will aim to advance his position or wages by a 
 strike. 
 
 There is doubtless another side to this question. 
 The same motive of self-interest that leads to a strike 
 among workmen, may, and no doubt does at times, 
 induce employers to pursue a course towards their 
 workmen that is more or less stringent and oppressive. 
 Under such circumstances it is the right of the work- 
 men to devise such measures as promise relief. It 
 may be there is difficulty in doing this. Any diffi- 
 culty will be increased by the dependence of the men 
 on their wages for current subsistence. This should 
 impress the importance of habits of economy as a 
 means of independence. It is obvious if the work- 
 man be dependent, he may not be able, without suf- 
 fering, to suspend work until he can find it with an 
 employer who will be satisfactory. This calls atten- 
 tion to 
 
 6 
 
82 the question of 
 
 Trades Unions 
 
 By which contributions are made for the support of 
 workmen on a strike. In this, reliance is had on 
 the disposition of the owner to yield, in order to avoid 
 the loss he would incur from his unemployed mill. 
 This can only succeed in cases where the owner has 
 failed to correctly understand the laws of supply and 
 demand in the labour market. It is impossible that 
 work should go on, independent of this rule, for any 
 considerable time. This is evident on the least reflec- 
 tion, as the ruin of the owner would be inevitable if 
 the wages could not be sustained by the market value 
 of the fabric produced. Contributions to the Union 
 must be voluntary, and of course limited, and in- 
 stances have occurred in which a strike has been con- 
 tinued for months, and with all the aid the Union could 
 furnish, caused much suffering to the men out of em- 
 ployment. 
 
 In the course of my life I have known many and 
 some very severe strikes among workmen, and have 
 in no instance known one to succeed when a proper 
 attention on the part of the employer was given to 
 the law above stated. But if the employer has been 
 unreasonable in respect to those laws, he may find it 
 necessary to modify his practice. In such case, it is 
 
LABOUR AND CAPITAL. 83 
 
 very probable the strikers will gain their object, and the 
 owner realize a loss that naturally results from his 
 indiscreet management. On the other hand, the dis- 
 creet owner will allow his mill to be idle, rather than 
 run it at a loss for any considerable time. The Union 
 referred to can only depend on voluntary contribu- 
 tions, and at best can afford but a scanty support even 
 for a moderate length of time. It should be improved 
 by the contributing workmen, to cultivate those habits 
 of saving that may give substantial improvement to 
 their afEairs, when no such draft is made on their 
 earnings. 
 
 There is obviously a direct loss to both parties, 
 in the operation of a strike ; and it is clearly the part 
 of wisdom to exercise every practicable measure to pre- 
 vent it. Each party has an interest in this. To do it, 
 it is only necessary to fairly consider the situation or 
 circumstances that control. Neither party can be j usti- 
 fied in taking a position inconsistent with this. 
 Both capital and labour have respectively a right to 
 their earnings, and these must be referred to the laws 
 of trade, on the basis of existing markets ; a reference 
 that eventually must prevail, whatever course may be 
 pursued by these parties. 
 
 Difficulties sometimes arise from the varying cir- 
 cumstances of production, as when an establishment, 
 
84 THE QUESTION OF 
 
 similar to others in its work, has a specialty in the 
 production of certain articles, for which it is peculiarly 
 adapted, or has the protection of a patent, that gives 
 the control of the market. Under these circumstances 
 the mill may pay a higher rate than the usual wages. 
 Now the workmen in mills that do not have such ad- 
 vantage are very likely to take the one that has as a 
 standard, and refuse to work unless at the same rate. 
 The peculiar establishment may be able to employ 
 only a small portion of the men who do this or analo- 
 gous work, and consequently the larger portion can 
 only obtain such wages as may be warranted in works 
 of more general character, where the special advan- 
 tages are not enjoyed. It may be the specialty cannot 
 employ a fourth part of that class of workwen, and con- 
 sequently three fourths will be able to earn only such 
 wages as can be afforded on general work of that class. 
 It is therefore unreasonable to insist on the same 
 basis of wages as may be paid by the specialty. The 
 product of the goods made must determine the wages. 
 It is further to be observed, that in such cases the 
 specialty usually obtains the best workmen for their 
 class of work — men whose actual v/orth is above the 
 average. 
 
 There can be no doubt this, as all other affairs of 
 business, must be adjusted by the law of supply and 
 
LABOUR AND CAPITAL 85 
 
 demand. The sentiment, that labour is worth so 
 much, or more or less, is without foundation. It is 
 worth just what it will command in the market, same 
 as any other commodity. There is no other philos- 
 ophy than this. The benevolent idea that wages 
 should be such as to yield a fair support, is necessarily 
 indefinite, and has little or no application in the com- 
 merce of men. Business is one thing and charity 
 another. Nor would the charitable view comport with 
 the dignity of labour, or lead to any other than the 
 pauper, or semi-pauper plan which no able-bodied 
 American citizen should respect, or propose for his 
 support. It is, moreover, totally unnecessary in this 
 country, where every man has the right of labour, and 
 the right to choose the kind he regards most for his 
 interest in all the variety of labour that constitutes 
 the instrumentality by which most, if not all the 
 wealth or property of the country has been gathered. 
 Let no man in a free country speak diminutively of the 
 power of labour, but bear in mind, that most of our 
 capitalists, large and small, began to gather, and con- 
 tinued to gather, by savings from their labour. 
 
 Why then should the workmen be dissatisfied 
 with the capitalist? Consider the question on its real 
 merits. Suppose, then, there were no men that ac- 
 cumulated capital ; from whence, then, would be found 
 
85 THE QUESTION OF 
 
 the means to build mills, supply machinery, raw stock 
 and wages ? If there were none that acquired capital, 
 there would be none to provide these instruments, 
 by which labour finds its principal employment — its 
 absence from society would necessarily throw us back 
 to the primitive order of things, and both labour and 
 population would be greatly reduced. Even the handi- 
 craft arts would feel this, as well as the higher or 
 more complicated orders of occupation. There can 
 be no doubt the enterprise of capital is the main 
 feature that enlarges the field, and consequently the 
 demand for labour, and this increases its market 
 value. At the same time, the labourer has his share 
 of the benefits that flow from the more efficient and 
 economical production that arises from the instru-* 
 ments that capital is able to put into the hands of labour. 
 
 If the non-capitalist has neglected or lost his 
 opportunity to acquire capital by any want of educa- 
 tion or self-control, he should be careful to see that 
 his son does not lose it. 
 
 No doubt there is an advantage in the owner- 
 ship of capital or property sufficient to secure an 
 independent occupation ; and this is the very reason 
 that induced the system of self-control, of industry and 
 frugality by which it has been acquired by the capital- 
 ist. There can be no just ground for complaint on 
 
LABOUR AND CAPITAL. %-j 
 
 the part of those that did not acquire it. They pre- 
 ferred a course of indulgence that was incompatible 
 with such result ; and after the habit of using the 
 earnings of all the powers they employed in various 
 and unprofitable sources of present gratification, it is 
 clearly unreasonable for them to complain of those 
 who had the wisdom and prudence to control and so 
 regulate their desires as to reach the enviable condi- 
 tion of the capitalist and other independent holders of 
 property. 
 
 It is charged that the holders of property are 
 sometimes oppressive. No doubt this is true, and 
 the mam reason may be found in the fact that so 
 large a proportion of men are unwilling to exercise 
 the self-control that is necessary to acquire property. 
 If all were industrious and frugal, there would be very 
 little of the dependence that gives capital undue 
 power. Instead of concentrating, capital would be 
 more diffused, more abundant, and interest and profits 
 on funds would be reduced. Under existing circum- 
 stances the general charge of oppression is not well 
 founded ; for in most cases the labourer receives the 
 full rate of wages the market will command, and is 
 paid at short intervals out of the funds of the capital- 
 ist, before the latter can realize from the sale of his 
 product, and often months in advance. 
 
88 THE QUESTION OF 
 
 No just government will allow one citizen to op- 
 press another, whoever that citizen be. The govern- 
 ment takes no measures to require parties to engage 
 in contract ; that under law is one of the inalienable 
 rights of men ; but after the contract is made, the gov- 
 ernment will see that its conditions are enforced. 
 This is one of the great duties of government ; without 
 which civilization could not exist. Take another 
 branch in commercial affairs as an illustration of this 
 principle : — A set of men undertake to control the 
 market in the article of flour — they buy up all the 
 flour they can reach, and set their own price on it, and 
 none can interfere — they have so far exercised a legal 
 power. But if some party in the community has flour 
 not controlled by the forestallers, or monopolists, and 
 offers the sale at lower rates, and the monopolists 
 should endeavour to coerce him to hold his flour at the 
 same rate the monopoly dictated — would any commu- 
 nity submit to this .•■ In such case all will say, — the 
 government must interfere and prevent such tyranny. 
 This is precisely analogous to the workman who seeks 
 to coerce and obstruct his fellow-workman in the pur-- 
 suit of his legitimate right to make such contract for 
 his skill and labour as he regards his interest. 
 
 The labourer is free, and imder no obligation to 
 obey the decree of the union — the government will 
 
LABOUR AND CAPITAL. gg 
 
 protect him. This is so obviously necessary to secure 
 individual freedom' and the just rights of men, that 
 open coercion is not often practised. The proceedings 
 therefore to enforce this kind of tyranny will be (as 
 most usual) by threats, so made as to evade legal cog- 
 nizance, by attacks on the person of the workman, 
 under cover of darkness, on his way home, or in some 
 position of unseen or defenceless condition. This is 
 rebellion against society; and it is a humiliation to 
 believe there are working-men in this free country that 
 can be guilty of a proceeding which only befits those 
 who seek darkness to hide their transactions, or that 
 an honest workman will follow the wake of the crim- 
 inal who preys on the rights of society, by seeking 
 the obscurity of night to hide his transactions, and all 
 in an effort to counteract the free action of the laws 
 on which industry and society rest. If such proceed- 
 ings could succeed, the foundation of social order 
 would be broken, and anarchy and confusion reign. 
 No stable basis would remain on which industry could 
 rest ; no inducements to acquire its instruments, and 
 industry would necessarily be prostrated and civiliza- 
 tion arrested. 
 
 The safety of order and society rests on the fact 
 that there are several classes in society that would 
 oppose such result. First, the capitalist — Second, men 
 
go THE QUESTION- OF 
 
 of independent competence in property — Third, those 
 who practice industry and economy, with a view to 
 reach one of the two preceding classes. All these, and 
 others that might be mentioned, are too much inter- 
 ested in maintaining the order of civilized society to 
 allow the anarchy, confusion and tyranny that would 
 break up the law of free commercial activity, and lead 
 us back to barbarism — where no law would protect the 
 weak, and no enterprise enlarge the basis of produc- 
 tive industry. Probably the coercing Trades Unions 
 or strikers do not see this tendency ; for I am sure if 
 they did a large proportion of them would hesitate to 
 proceed on a course so fraught with danger to every 
 interest connected with our civilization, which to 
 an American working-man should be invaluable. 
 
 When men are oppressed by arbitrary and des- 
 potic government, we can see some excuse for the 
 violent men who hope to gain, though it may be through 
 confusion and anarchy ; but even under such circum- 
 stances their success is usually far below, if in any 
 considerable degree they reach, their expectations. 
 
 If in any respect men desire to be free, they must 
 be able to govern themselves. Their own passions 
 must be brought into subjection to reason and sense; 
 and they must learn to extend the same freedom to 
 others they seek and claim for themselves. In short, 
 
LABOUR AND CAPITAL. gi 
 
 to cultivate a love and respect for the right — the only- 
 freedom worth having — in truth there is no other. 
 The freedom men sometimes claim of doing as they 
 please, and at the same time of compelling others to do 
 as they dictate, is the oppressive tyranny of a despot, 
 whoever claims it ; and should be abhorred by every 
 American working-man who raises his hand and voice 
 in support of the right and dignity of labour. 
 
 In this country labour is free to command the 
 market, same as any commodity, however produced. 
 No one is privileged (except in so far as that fallacy 
 called protection to labour has prevailed) ; even capital 
 is, in the main, only a product of labour, beginning with 
 small or no material means, and there is no proper 
 reason why all (barring exceptional cases) should not be 
 capitalists, or at least reach to a comfortable degree of 
 independence. Absolute independence is not supposed, 
 for no such case exists. We are all, more or less, in 
 various ways dependent on our fellows; but the 
 independence which gives the instruments of labour, 
 and the power of our situation to command a supply 
 of our reasonable wants, is what is intended. 
 
 Perhaps it may be a delicate matter to discuss the 
 cause of so great disparity as we find to exist in the 
 condition of men. But the wound can only be cured 
 by a thorough probing. The question that first 
 
02 THE QUESTION OF 
 
 presents itself for consideration is — why is it that 
 men starting on the same platform, reach such 
 different results ? Some attaining conditions of 
 comfort and affluence, while others struggle through 
 life, barely securing a scanty subsistence ? There 
 must be cause for this. Doubtless the variety in 
 natural ability, and the opportunities of life, are causes 
 of various degrees of success. But these only account 
 for the degrees in which some obtain a competence 
 and others large wealth. They leave a large class of 
 dependent men. How shall their condition be 
 accounted for .' Does it not result from ignorance, 
 uncontrolled appetite and passion, tending inevitably 
 to the improvidence that destroys all prospect of 
 saving even the instruments of their simplest occupa- 
 tion } Is there no remedy } I believe there is. Edu- 
 cation has shown its power for this, in the large num- 
 bers that have succeeded, and have given strength to 
 our civilization by which we have established Institu- 
 tional law, and the order of social being : I therefore 
 look to education — mental, moral and religious — as the 
 hope of reducing this class, until there shall be none 
 left, save 3uch as by natural imbecility are incompe- 
 tent to reach a condition of independence. Mental 
 education is of prime value ; but moral and religious is 
 necessary to cultivate respect for the rights of others, 
 
LABOUR AND CAPITAL. q, 
 
 indispensable for a just and free government, and for 
 the subjugation of the appetites and passions to their 
 useful and proper purposes of life. 
 
 A Christian community, well instructed in the 
 cardinal principles of their religion, will cultivate 
 industry and frugality, and steadily improve in their 
 material as well as their moral well-being. This is 
 corroborated by the experience of those Christian 
 communities that have observed and practised the 
 duties and principles of the religion introduced into 
 the world by Jesus Christ. Such people are not 
 found in the seats of dissipation, wasting their time 
 and means in idle conviviality. It is the hope of the 
 friends of a true education, that its influence will 
 subdue ignorance and increase the power of self-con- 
 trol, and so lead to the industry, prudence and economy 
 that is productive of material and moral well-being. 
 It certainly must be relied on as one at least of the 
 great pillars that sustain the social fabric, and tend 
 to the diminution of the dependent class of men. 
 
 This is a great thing to hope and work for. The 
 development of a true education would greatly increase 
 the product of skill, labour and capital, and all men be 
 better sheltered, fed and clothed ; and be surrounded 
 with the means of mental, moral and religious culture, 
 greatly adding to the individual and social happiness 
 of men. 
 
94 THE QUESTION OF 
 
 The wages is not the whole of " Trades Unions." 
 The " Unions " extend their operations to the rules and 
 manner of work, in such a way as to diminish the 
 quantity that may be done in regard to the instruments 
 that shall be used, and also as to the locality from 
 whence materials may be had. 
 
 Professor Cairnes has quoted from Mr. Thornton 
 (the latter an advocate for measures of amelioration 
 to the labourer) some of the rules of the " Union." 
 On page 258, " Political Economy," he quotes : "At 
 Manchester this combination is particularly effective, 
 preventing any brick made beyond a radius of four 
 miles from entering the city." . . . . " The vagaries 
 of the Lancashire brickmakers are fairly paralleled by 
 the masons of the same country." . . . . " The York- 
 shire masons, however, will not allow Yorkshire stone 
 to be brought into their district if worked on more 
 than one side. All the rest of the working, — the edge- 
 ing and jointing, — they insist in doing themselves, 
 though they thereby add thirty-five per cent to its 
 price." . ..." A master mason at Ashton obtained 
 some stone ready polished." .... "His men, how- 
 ever, in obedience to the rules of the club, refused to 
 fix it until the polished part had been defaced and 
 they had polished it again by hand, though not so 
 well as at first." . . . . " The Manchester bricklayers ' 
 
LABOUR AND CAPITAL. gj 
 
 association have a rule providing tliat any man found 
 running, or working beyond a regular speed, shall be 
 fined," &c., " as also shall be any man working short- 
 handed, without man for man." . . . . " During the 
 building of the Manchester law court, the bricklayers' 
 labourers struck because they were desired to wheel 
 brick instead of carrying them on their shoulders.' 
 More might be quoted from the rules of the " Union," 
 but the above is sufficient to show the policy of certain 
 working-men in this matter of " Union." 
 
 The preceding are from English " Unions." I do 
 not know if American Unions go to the same extent, 
 but they do not discard the features of the English 
 Unions, and in some respects adopt them. 
 
 American working-men have made considerable 
 effort to obtain the enactment of laws regulating the 
 time of a day's work. Nothing has been better settled 
 by the experience of mankind, than that government 
 interference with the business affairs of men is always 
 bad, and especially so for labouring men. Except in 
 the case of children, in order to protect them from 
 the cupidity of their guardians and employers, no 
 government interference has proved a benefit to the 
 labourer, beyond that of protecting him in his just 
 rights of labour and enterprise. 
 
 Our working-men have petitioned government to 
 
g6 THE QUESTION OF 
 
 preveut the employment of convict labour, where it 
 may be supposed to come in competition with the 
 industries of society. From the necessities of their 
 condition the convicts, if employed at all advantage- 
 ously, their work must be such as can be done in a 
 shop. If they make hats, the hatter complains ; if they 
 make cabinet ware, then the cabinetmaker complains ; 
 if shoes, the shoemaker complains, and so of every 
 trade that must work in a shop. Listening to these 
 petitions from various classes of citizens, the Legisla- 
 ture of the State of New York authorized measures 
 to employ the convicts on mining works, a kmd very 
 unsuitable for convicts — all which has proved very 
 unprofitable to the State. The obvious purpose of 
 the State, in employing convicts in the production of 
 useful commodities, is to make them earn their sub- 
 sistence, and at the same time improve their habits of 
 industry. If the convict cannot be so employed as 
 to earn his subsistence, he must be supported at 
 public expense, by taxation on all classes of society. 
 The main question is, shall this labour be annihilated } 
 If this be answered in the affirmative, then certainly 
 so much labour of the country must be lost. So far 
 as this could prevail, its influence on the cost of pro- 
 duction would be to make goods dearer. In other 
 words, to diminish the products of industry. If these 
 
LABOUR AND CAPITAL. 57 
 
 convicts had not been criminals, their labour would 
 probably have been more formidable as competitors 
 in the labour market, than it is in their condition of 
 convicts. If in this matter the theory of the working- 
 men is correct, then it is their interest the number of 
 convicts be increased, and so take out of the ranks of 
 industr}' the largest number the State may be able to 
 support in idleness or unproductive labour. This would 
 be absurd, but it is the logical conclusion of their theory. 
 It is apparent the undisguised policy of " Trades 
 Unions" is to impair the results, or to make labour 
 as impotent as possible. If then there be any such 
 thing as a " wages fund," their policy leads to its de- 
 struction as rapidly as possible. They probably do not 
 see the logical results of their rules and regulations. 
 If they refuse the use of a wheelbarrow, and compel 
 bricks to be carried by hand, they cannot be expected 
 to check their operations until the use of all agents 
 in transportation is discontinued, and all burdens 
 borne on the shoulders of men ; and instead of horses, 
 the plough must be drawn by gangs of men — the 
 natural agents, as steam and water must be laid aside 
 and the machinery (if any) be propelled by manual 
 labour. Such a result it is impossible to reach, though 
 it is the logical conclusion from the premises advoca- 
 ted by " Trades Unions." 
 
 7 
 
gS THE QUESTION OF 
 
 Look carefully at the principles of " Trades Union." 
 If they are correct, then certainly any invention or 
 improvement that renders labour more effective is an 
 impediment, and consequently an injury to the working- 
 man — all natural agents that reduce manual labour 
 should be discarded, and the greatest possible amount 
 of manual labour should be bestowed on any fabric 
 required for the use of men. Can any one suppose 
 this would benefit labour ? If it could, then the opin- 
 ion of mankind has been greatly at fault, and barbar- 
 ism is to be preferred to civilization ; or to depend for 
 sustenance on the chase and the gathering of fish and 
 natural fruit, is better for labouring men than the well- 
 ordered industries of civilization. 
 
 Trades Unions on Apprenticeship. 
 
 The policy of Trades Unions in regard to appren- 
 ticeship is designed to restrict the number in any 
 branch of mechanics. The manifest object of this is 
 to limit the number, in order to increase the rate of 
 wages. That is, that there be the least number of 
 men in any branch that may suffice to command the 
 highest rate of wages the industry may afford to pay. 
 It is manifest this course will tend to reduce the 
 amount of work in any industry, and increase the cost 
 of what may be done, destroying the benefit of com- 
 
LABOUR AND CAPITAL. gg 
 
 mercial freedom, and so increasing the cost of goods 
 to the community. If it could be made to apply to 
 all industries, the workman in one department would 
 be compelled to pay for the goods he needed from the 
 other departments as much advance as he gained in 
 his own, and he could obtain no benefit from this arti- 
 ficial obstruction. If the workman looks at this thing 
 in its true light, he will see, that in order to benefit 
 himself, all goods except his own product should be 
 free, so that while he obtains favour no other goods 
 that he needs should be restricted to this narrow 
 monopolizing system. 
 
 The policy of the Union is, that no mechanic in 
 the association is allowed to take an apprentice, except 
 as may be directed by the Union. It may be the 
 interest of some member of the Union to employ an 
 apprentice, and a candidate may be in waiting for such 
 employment. But if the Union say no, these parties 
 are prohibited from exercising a natural right. 
 
 No man can properly be compelled to take an 
 apprentice, for this is a matter he must consider in 
 view of his own interest. It is quite nec(^ssary the 
 candidate present adequate inducementJ "J^xi?, is all 
 a matter of business freedom, and in ev^ry rational 
 view should be regarded as conclusively settling' the 
 action of the parties. Now, the Umbti steps ' in ahd 
 
lOO THE QUESTION OF 
 
 says to the mechanic, there are enough now in your 
 trade, and according to the rules of the Union, you 
 cannot take another. Here the just rights of two 
 parties are broken down by a monopoly, that so far 
 as it goes, destroys commercial freedom. Nor are 
 these injured parties the only interest involved in this 
 transaction of the Union ; for it is manifest, the rights 
 of the public are trampled upon, in a most despotic 
 manner. If freedom is worth anything to the work- 
 ing-man, he should consider, if this principle of the 
 Union is not an arbitrary means for its destruction. 
 Certainly no right can be more important to the indi- 
 vidual and to society, than that which leaves every 
 man free to make such contract for his services as he 
 regards his interest. No man in a free country can 
 question this position as the basis of commercial free- 
 dom. 
 
 To this the Unionist says, No, you shall enter no 
 engagement except at our dictation. How does this 
 differ from the flour, or any other arbitrary monopoly, 
 that aims to break down the barriers of commercial 
 freedom, and in its place establish a despotic rule, 
 which goes directly to the subversion of civil liberty, 
 breaking ^down th6 benign principle that is the only 
 security tor the rights of man, and the free activity of 
 industrial ecoiiomy. 
 
LABOUR AND CAPITAL. iqi 
 
 The whole theory will be discarded by intelligent 
 working-men, as inconsistent with their happiness, and 
 a manly regard for the power and dignity of un- 
 shackled labour. The system of " Trades Union " fails 
 to perceive the true method by which the working- 
 man has been, and will be, elevated to the character 
 and benefits he may reach by a manly exercise of his 
 powers of production. If, therefore, he allow himself 
 to slide into the dependent class, it will be for the rea- 
 son, that he has failed to properly improve his powers. 
 
 Methods have been proposed by which, in some 
 way, it is aimed to show how labour and capital may 
 be combined to effect a more equitable ratio between 
 wages and profits. I propose to consider some of these 
 propositions. 
 
 Community Plan. 
 
 This has been followed in several instances, and in 
 some with great perseverance and well-intended pur- 
 pose to improve the advantages of the labourers. So 
 far as I understand this method, the community is an 
 association, composed of a body of men and women, 
 who place themselves under a mutual association, in 
 which their labour and their property becomes a com- 
 mon stock. They labour in common, and have a common 
 support out of the aggregate product of their labour 
 
102 THE QUESTION OF 
 
 and capital. In these communities all are professedly 
 on equal terms, under the regulations of the associa- 
 tion. Here the labour is supposed to be more efficient, 
 and the supplies had on better terms or more cheaply ; 
 and as a consequence, the material wants of the asso- 
 ciation better supplied, than they could be by indi- 
 vidual enterprise and labour. 
 
 These communities have been organized and main- 
 tained for considerable time, and their characteristics 
 pretty fairly developed. In some cases they have been 
 placed on the basis of some religious principle, and in 
 others resting solely on the basis of material interest. 
 Some prohibit sexual intercourse, and by this means 
 avoid the care and expense of raising children. Others 
 allow, and are supposed to practice, promiscuous sexual 
 commerce, which brings them into the category of the 
 brothel. In both these cases they are at war with the 
 institution of the family, as established by the Creator ; 
 thus breaking up the original order, and sapping the 
 foundation of the marriage institution, which most 
 eminently sustains public and private virtue. 
 
 It is believed such communities, by their united 
 skill and industry, produce many useful articles, at a 
 moderate cost, and sustain their material support in 
 a good degree of abundance. They move along in 
 routine on the orders, and depend on the care and 
 
LABOUR AND CAPITAL. 103 
 
 providence of their ruling elders. No brilliancy of 
 mind is expected in these associations. We do not 
 expect to see them produce a Pallissy, a Watt, an Ark- 
 wright, a Whitney, a Fulton, a Morse, or any of simi- 
 lar character who form the host of distinguished men, 
 who by their individual skill and perseverance have 
 wrought out and brought into operation those vast 
 improvements in the arts that minister to the wants 
 of men, and have given better food, clothing and shel- 
 ter to the civilized world. 
 
 It was stated the community hold themselves as 
 all on a footing of equality. In this respect it is to be 
 observed, the sentiment is not practically carried out. 
 Every kind of government, even a community or as- 
 sociation, must have its order. Hence, certain elders 
 are placed in charge of affairs, and on their capacity, 
 and specially on their executive abihty and fidelity, the 
 success of the community will depend. Probably in- 
 dividuals may offer counsel, but the head must rule or 
 affairs would soon work badly. It is a democracy, 
 with a head that rules the body. A body of men who, 
 from whatever motive, are willing to give up their in- 
 dividuality, and trust for the direction of their indus- 
 try and the supply of their wants to the providence of 
 one or more of their number who directs their 
 work and does their thinking for them, is not likely to 
 
104 "^^^^ QUESTION OF 
 
 rebel against authority, nor can it be expected they 
 will advance in the culture and refinements of civ- 
 ilization. Excepting the ruling members, it is almost 
 on a dead level of monotony. 
 
 An important fact in relation to the community is, 
 that comparatively a small number of men are willing 
 to bury their personality in a community of this kind. 
 From the very characteristics of the human mind, it 
 cannot be expected that any who feel the dignity of 
 their personality, will consent to such an absorption, 
 and thus bury their individuality in the community. 
 For this reason, it cannot be expected (except for 
 those who rule) the community will obtain recruits 
 except from the class of weak-minded persons who 
 have not the manliness to maintain their independence. 
 This is no doubt the main reason why they have made 
 so little progress in the world. It certainly does not 
 promise essential amelioration in the question of capi- 
 tal and labour. The system necessarily leaves out 
 of view the principle of personal independence that 
 nerves the mind to vigorous effort, and which has 
 achieved the great works of civilization. 
 
 Government aid to Labor. 
 
 I propose but few remarks under this head. The 
 thing is so absurd in any economic view, that it would 
 
LABOUR AND CAPITAL. 105 
 
 not be noticed, except for some recent claim on the 
 aid of government to assist labour. The French made 
 an experiment of this kind shortly after the revolu- 
 tion of 1848. What were known then as the comun- 
 ists, claimed it as a duty of government to provide 
 work for the people. This folly was listened to, and 
 led to the establishment by government of shops for the 
 fabrication of goods. It did not require much time to 
 demonstrate this to be not only absurd, but ruinous 
 to the government. Those shops, except so far as they 
 were for military purposes, have been, as I understand, 
 abandoned, and the idea of the communists has only 
 been partially maintained in the way of municipal and 
 other public works, which have been sufficiently im- 
 pressive in the onerous taxes that follow in the wake 
 of every attempt of government to do what should be 
 done, and can much better be done, by individual en- 
 terprise. 
 
 Not long since a convention of working-men rtiet 
 at the city of Pittsburgh. On that occasion they set 
 forth a project for the government to furnish funds at 
 a low rate of interest, to miners and others, as a capi- 
 tal that would enable them to dispense with the aid 
 of banks, and so carry on industrial enterprise with- 
 out dependence on capitalists. Their idea, probably 
 had its origin in the supposition the government had 
 
106 THE QUESTION OF 
 
 funds, and that it was its duty to aid the working class 
 of men. Whereas, the fact is, the government has got 
 no money or resources, except in taxes ; and if it fur- 
 nish funds to one class of men, it can only do so 
 by taxing all classes. The impolicy, the injustice of 
 this, did not suggest itself to the convention. Such 
 propositions are no credit to the intelligence of work- 
 ing-men, who should have at least the sagacity to see 
 their absurdity. It was a chimerical proposition, and 
 would not be worthy of notice, except that it was 
 brought forward as a measure to adjust the question of 
 capital and labour. The working-men should know 
 that governments, when they have undertaken to pro- 
 vide for them, have done more for their degradation 
 than for their improvement, and that the only real 
 service the government can do for working-men, is to 
 maintain their rights as freemen, and thus secure to 
 them the full product of their skill, labour and enter- 
 prise in all the range of productive labour. Men are 
 prone to forget the great truth that it is only as indi- 
 viduals a community can properly prosper. This is 
 the basis and strength of our civilization, and the hope 
 of its progress. 
 
LABOUR AND CAPITAL. iqj 
 
 Co-Operative Industry. 
 
 By this it is understood that labour and capital 
 shall be associated, so that both shall be represented 
 by the same parties. That is, working-men unite their 
 means in order to provide the capital that may be 
 necessary for the economical production of the goods 
 they propose to fabricate. The plan has many advo- 
 cates, and to some extent has been put in practice. 
 The idea is certainly a very plausible one, and to the 
 minds of many persons, offers the best solution of the 
 question of labour and capital. Some remarks have 
 been made on this problem, and it is now proposed to 
 examine it in more detail. 
 
 In all the industries that admit, it is obviously the 
 best method for the workman to hold in his own right 
 so much capital as is needed to conduct his work 
 most economically. It is favourable that there are 
 many industries requiring but a moderate amount of 
 capital in funds to conduct them ; not more than any 
 industrious and prudent man may acquire by his own 
 savings in a few years. After this comes a class of 
 industries that may require the partnership of two or 
 three in order that their joint means may be sufficient. 
 So far there is no difficulty that is not common to all 
 business, in settling, the labour question. 
 
I08 THE QUESTION OF 
 
 A firm or partnership of two or three persons may 
 be regarded in a limited degree as a co-operative com- 
 pany. But this is not what is usually understood by 
 co-operative industry. The latter looks to a more ex- 
 tensive asisociation, designed to compass a larger 
 business, and may include twenty to one hundred or 
 more persons. With even ten persons in such an 
 association, it is difficult to see how such a party could 
 be better organized than as a 
 
 Joint-Stock Corporation. 
 
 In any other way it would be very inconvenient, if 
 not impracticable, to conduct their business. Under an 
 act of incorporation the association could establish 
 rules of business, and direct the general method of op- 
 eration, and choose their executive managers. If, as I 
 suppose, there is no better way, then co-operative in- 
 dustry becomes corporate industry, and the association 
 is a corporation. In this case each member would be a 
 stockholder according to the proportion of funds he 
 contributed. This seems the most simple plan of con- 
 ducting any association designed for the larger class of 
 industries, where large capital, together with labour, 
 must be united to effect the most economical produc- 
 tion of goods. This method is quite practicable, as in 
 most of the States laws provide for and authorize the 
 
LABOUR AND CAPITAL. jqq 
 
 formation of such corporations for manufacturing and 
 mining purposes. Tiie field is open to all working- 
 men. 
 
 The question naturally occurs, why has it not been 
 more availed of by working-men .? The way is cer- 
 tainly open and free. There must be some reason 
 why they have not improved it. In reference to this, 
 I remark. In some kinds of production there is a 
 comparatively small proportion of skilled labour. To 
 a large extent it is the labour of common labourers, 
 females and minors, who are not possessed of the funds 
 required, nor skilled in the executive duties required 
 to manage large works. If such works are to be con- 
 ducted, there must of necessity be some, if not the 
 principal part, of the funds obtained from those who 
 are not working people. Not to embarrass this dis- 
 cussion, I shall look at the productions that mostly 
 ■ demand skilled labour. 
 
 It is well known there are excellent workme;n who 
 can manage well their own work, but have very little 
 of the executive skill necessary to lay out and plan 
 work for a shop or even a department of a shop. If 
 such as these, as most probable, compose a portion of 
 the association, they must be subject to the manager 
 of the shop, or the foreman in their department of 
 work. There should be no difficulty in this, as the 
 
I lo THE QUESTION OF 
 
 manager is supposed to understand what is best to be 
 done by each member. To submit to this rule it is 
 necessary there be confidence in the skill and fidelity 
 of the executive head ; and such self-control on the 
 part of the workman as will induce him to yield his 
 own opinion, if in conflict with the manager or fore- 
 man. Now the company, and the original authority 
 are the workmen themselves, and if these have not 
 the culture of self-restraint, that will readily yield to 
 the direction of those empowered to control affairs, 
 they will soon lose the benefit of harmonious action. 
 It is impossible to regulate a large company of men 
 so as to work with economy unless there be rules and 
 authority to enforce the rules. Does this present a 
 difficulty to co-operation } Every workman that enters 
 such an organization should carefully consider if he 
 is ready to submit his judgment to that of another 
 workman, who stands on the same corporate plane 
 with himself, and has no other authority than that 
 given by himself and associates. If the workmen have 
 not the culture to yield to this discipline, they are not 
 prepared for co-operative industry. 
 
 Let us see how a moderate case would work — say 
 one that will furnish work for twenty skilled labourers. 
 We have first to examine the question of funds required 
 for the land, mill or shop, mechanical power, machin- 
 
LABOUR AND CAPITAL. i j x 
 
 ery and tools. For such an industry these could not 
 be estimated at less than thirty thousand dollars. 
 This may vary according to the production contem- 
 plated. To the outlay so far made there must be added 
 funds necessary for the purchase of raw stock, the 
 maintenance of the men during the reduction to the 
 finished fabric, and the credit that will probably be 
 required after the sale of the goods. These cannot 
 prudently be estimated at less than the first outlay, 
 namely, thirty thousand dollars. Total capital sixty 
 thousand dollars, or an average of three thousand 
 dollars for each man. It could hardly be expected 
 that twenty men for any specific industry would each 
 be able to furnish the three thousand dollars, nor 
 would it be necessary, as in a joint-stock corporation 
 each would furnish what he could, making the aggre- 
 gate capital required. 
 
 The men should be so organized that each should 
 be paid for his work according to its value, and the 
 profits go to each according to his share in stock. It 
 cannot be doubted there would be some difficulty in 
 finding twenty men, in any one industry, who would 
 furnish the amount required. Men who had conducted 
 their affairs so prudently as to have three thousand 
 dollars at command, for a specific investment, would 
 very likely hesitate in so far putting it in the control 
 
1 12 THE QUESTION OF 
 
 of a co-operate association as to lose its individual 
 function. It may be presumed there are cases where 
 the men and the funds could be obtained for such an 
 enterprise as contemplated, and on this supposition I 
 proceed. 
 
 The company formed and the funds provided, and 
 the men are supposed to be well skilled in the work 
 proposed, the next thing will be the election of 
 managers who are to supervise and conduct their 
 operations. This, of course, will be by the votes of 
 the members. The managers appoint a superintendent 
 who is to conduct the operations of the work and 
 supervise its general affairs. It should be expected 
 one of the company would fill this station. 
 
 A treasurer will be required to keep the books and 
 manage the finances. It might happen that some 
 member of the association would be qualified for this 
 duty ; but this is doubtful. A company of twenty 
 skilled men, with the aid of mechanical power and 
 machinery, would most probably have yearly transac- 
 tions, in materials, wages and product, to the amount of 
 one hundred thousand dollars, more or less, according 
 to the character of the fabric they produced. To 
 conduct this branch properly will require a treasurer 
 of considerable capacity, industry and integrity ; and 
 if this department is not properly conducted, the cor- 
 
LABOUR AND CAPITAL. uj 
 
 poration will be likely to fail. The treasurer is an 
 important officer in any joint-stock operation, and 
 great care should be exercised in his selection, and in 
 frequent examination of the books and finances. The 
 association will have need of commercial experience, 
 especially if the raw material is obtained and the 
 product sold for distribution at distant points. To as 
 great extent as the circumstances may permit, as for 
 purchases and sales near by, or that may be conducted 
 by letters, the treasurer may manage the general com- 
 mercial business. If the industry is in a great measure 
 a specialty, and distributed at prominent commercial 
 centres, this department will be simplified. But if it 
 be necessary to distribute mostly to consumers, a com- 
 mercial agent may and most probably will be required. 
 In the latter case, tTie success of the institution would 
 depend very much on the agent. These general matters 
 are necessarily involved in all large productions, and in 
 the wisdom exercised in their management largely 
 depends the success of the enterprise. 
 
 In view of my own experience, the most proper 
 basis for an institution of this kind is, to pay all 
 members, by stipulated wages, the same as they would 
 pay a man not belonging to the company. If they 
 were all equally efficient workmen, they would equita- 
 
 blv be entitled to the same rate of pay. But this is not 
 
 8 
 
1 14 THE QUESTION OF 
 
 probable ; some men will be more skilful, or better 
 workmen than others, and so far as they work for day 
 wages, will be entitled to a higher rate. The regular 
 compensation of the men, either by piece or wages, is 
 best, in order that each have the benefit of proper 
 remuneration for his own labour. Any profit on the 
 capital stock may then be divided to each according 
 to his interest in the same, or it may be deferred 
 for the purpose of strengthening the finances of the 
 association as may appear desirable. The latter 
 course is particularly advisable, rather than to depend 
 on loans for current means. 
 
 In forming an association of this kind, it will not 
 be safe to predicate on the supposition, that eveay 
 man will do his duty freely. Though it must be ad- 
 mitted as probable, that the class of men who so 
 prudently managed their affairs as to have the funds 
 necessary for such an institution, will be very likely 
 to see the propriety of conforming faithfully to regu- 
 lations which they appreciate as proper for success, 
 and which they have aided to establish. But the 
 men do not so fully know each other as to warrant 
 the adoption of this supposition. In all probability 
 there will be necessity for more or less sifting out, 
 and this can best be done by establishing a thorough 
 system of business. A thoroughly able and good 
 
LABOUR AND CAPITAL. nj 
 
 workman is most likely to be satisfied with sound 
 business regulations. Though it is claimed that '' all 
 men are created equal," this must be regarded only 
 as to equality of natural right. It would be a useless 
 task to demonstrate that in many respects men are 
 (not equal, either by creation or training; and it is 
 not to be supposed any twenty men, who may agree 
 to go into an organization of associated labour, will be 
 equally efficient and faithful. 
 
 Some will have less physical power, though of 
 good skill. These may do their work well, but have 
 not the same endurance, and consequently not the 
 same power that occasion may require for special 
 effort. It would also be remarkable in such an organ- 
 ization as proposed, if it should not turn out that 
 some of them were inclined to idle their time, and be 
 more fond of talk than of work. It should be kept in 
 mind, it is the moral in the workman, no less than in 
 the soldier, that gives energy to his operations. If 
 he has not the nerve to resist the inclination, or the 
 temptation to engage in telling or hearing strange 
 and improbable stories, he will hardly live up to the 
 wholesome rules of a well-established shop or mill. 
 The above is a mere allusion to practical matters, that 
 must be considered by any association for systematic 
 labour, if they expect success. Consequently there 
 
1 1 6 THE QUESTION OF 
 
 must be a method, and power for correction when 
 the necessity arises. This will not be difficult, if the 
 majority is decidedly in favour of sound rules and 
 their efficient enforcement. 
 
 To correct the inequalities of workmen, from 
 whatever cause of deficiency, the practice of paying 
 by the piece, rather than by day wages, has very 
 generally come into use where the work admits. 
 This gives the workman the benefit of any superiority 
 he may have in skill or industry, and is the most 
 ready method of adjusting the compensation. It does 
 not dispense with rules, or the supervision of the fore- 
 man, who is required to inspect the quality of the work, 
 and see that it is not improperly performed as to 
 quality or progress. So far as work can be done by 
 the piece, the mill or shop will be more productive. 
 
 In view of the importance, and indeed of the 
 necessity of success, there must be supervision, and- 
 the conduct of all work and affairs be subject to a 
 thorough administration under sound business rules. 
 No man is to be shielded from the strict application 
 of the rules of business, on the ground of his being a 
 partner. Whatever be the intelhgence of the men, 
 their enterprise can only be a success through the 
 systematic and efficient administration of an executive 
 head. Even a body of twenty men can in no other 
 way operate in the concert necessary to success. 
 
LABOUR AND CAPITAL. uy 
 
 No doubt there are industries that may be con- 
 ducted economically with a less amount of funds and 
 men than above stated ; but this is stated as a mod- 
 erate one, in which labour and capital could be favour- 
 ably combined for economical production, though 
 much smaller than many branches require. If co- 
 operative labour shall prove generally successful, it 
 is probable there will be a greater subdivision in pro- 
 duction. That is, the works that now produce several 
 articles would be taken in parts, and so several com- 
 panies may divide up and each become more specific 
 in their productions. In former days, it was common 
 for one establishment to spin the yarn, leaving the 
 weaving to another, and the dying and dressing 
 to still other parties. In the manufacture of steam 
 engines, the boilers were made at one shop and the 
 engine proper at another. In the manufacture of 
 tools, machinery and the implements of agriculture, 
 the production may be divided, and one company or 
 firm produce one and another a different class. Every 
 skilled workman will see how production may be 
 divided, and still leave the work complete. 
 
 Though there seems no practical difficulties in 
 making such divisions as above suggested, and others 
 not necessary to particularize, it must be observed, 
 that for some reason there is a tendency for similar 
 
Il8 THE QUESTION OF 
 
 industries to run into combination, and result in large 
 mills or shops. Of course these require larger execu- 
 tive ability in the power to systemize and arrange 
 work for several departments. Certain it is, that 
 combination has of late years increased, and mills 
 that did one branch only, now do several. The pre- 
 sumption is, there are advantages in the larger works 
 that have produced this change. It is therefore 
 important in establishing a mill for any division or 
 branch of the work of a large establishment, that 
 great caution be exercised in view of the competition 
 that may be expected from the large mill. No doubt 
 a small establishment, under a company of industrious, 
 skilful and prudent men, would have advantages 
 peculiar to a small establishment ; and these may in 
 many cases outweigh those of the large mill. 
 
 To this plan of co-operative labour there can be 
 no objection. The laws authorizing such associations 
 have been for years on the statute books of most of the 
 States of this Union. Corporations in numerous cases 
 have been formed under them. A very large, if not 
 the principal amount of the capital employed in the 
 production of fabrics, has been organized in this way, 
 for the class of larger industries. 
 
 It is not unusual for towns and villages to 
 organize in corporations for manufacturing purposes ; 
 
LABOUR AND CAPITAL. j jg 
 
 these not solely with a view to direct profit from the 
 works, but to increase the industry and business of the 
 town. In doing this, the requisite capital is often 
 obtained with difficulty, and the result is more a 
 public spirit for the improvement anticipated in the 
 general business of the town, than any certain view 
 of the profits that are expected from the enterprise 
 itself. In such cases the workmen can take as much 
 of the capital stock as they desire or can jDay for. 
 After the mill is erected and goes into operation, the 
 workmen find employment, and will have opportunity 
 to purchase shares of stock, most probably at easy 
 rates, and so combine their skill and industry with 
 their capital. It would not be necessary for them to 
 take up the stock at once, or even the principal part, 
 as they could purchase from time to time, according 
 as tliey saved from their wages, and so steadily in- 
 crease their ownership until they should be able to 
 control the corporation. This opens a very easy 
 method for a union of labour and capital — the or- 
 ganization perfected, the workmen may go forward 
 systematically to acquire the stock capital, as they 
 obtain means, and eventually become the owners of 
 the mill. If they have ambition to combine labour 
 and capital, this seems a very favourable way to 
 secure their object. If much is anticipated from the 
 
I20 THE QUESTION OF 
 
 union of labour and capital, hardly a more favourable 
 opportunity could be expected. 
 
 Though the method above described appears a 
 very favourable one for the co-operation of labour and 
 capital, it does not appear that it has been adopted 
 to any great extent by working-men. There must be 
 some cause for this, and they should investigate and 
 determine the reason. 
 
 Partnership Corporation. 
 
 By this is meant a corporation by joint-stock, to 
 raise the necessary funds. These funds may be sub- 
 scribed by both working-men and by those having 
 funds which they put into the corporation for the 
 profit they expect from the enterprise. Not necessary 
 that all, or even any of the workmen subscribe to the 
 funds, or be at all known in the organization of the 
 institution. The method contemplates that workmen 
 are to be employed at such rate of compensation as 
 may be agreed on, and to be regularly paid as in other 
 works of the kind to be done. After paying all ex- 
 penses, then, from the net profit that may remain, a 
 certain rate of interest or dividend is to be paid on 
 the capital stock, or carried to the credit of the stock- 
 holders, as compensation for the use of their funds ; 
 and out of any balance of profit that may remain after 
 
LABOUR AND CAPITAL. 121 
 
 paying the interest provided to be paid to tiie stock- 
 holders, a certain rate of this balance shall be paid to 
 the workmen that have been in regular service (bar- 
 ring any unavoidable detention from work) for the 
 year or half year as the case may be, according to the 
 amount of wages or pay received by each workman 
 during the term provided for. This, it will be noticed, 
 provides a certain percentage of the balance, after the 
 first dividend of specific interest is paid on the stock. 
 Now, if the rate of this distribution to the workmen 
 be, say fifty per cent of the said balance, then the re- 
 maining fifty per cent of said balance will be divided as 
 a further dividend to the stockholders on their stock 
 capital. It will readily occur, that if nothing should 
 remain after paying wages and other expenses, the 
 stockholders would receive nothing for their capital. 
 
 The main feature of the plan is, that it provides a 
 contingent benefit to the workmen out of the earnings 
 of the mill after he has been paid his regular earn- 
 ings. This can only be justified by the consideration 
 that under this inducement the workmen will be more 
 steady, prudent and diligent in conducting their work, 
 and in the care of tools and materials. Under the cir- 
 cumstances most likely to exist in forming such a part- 
 nership, it is probable this would be more or less real- 
 ized ; for only a steady class of men would be selected^ 
 
122 THE QUESTION OF 
 
 or remain so long in the work as to be entitled to receive 
 any percentage of the balance of profits. It is very- 
 probable this plan may work favourably, if the ratio of 
 profits- can be made satisfactory to both parties. It 
 should exclude any workmen occasionally, or for a short 
 time employed. 
 
 In regard to this partnership, it is necessary to 
 consider how the capitalist will view it. His first ob- 
 servation will be — " Who is to secure me against the 
 loss that may result 1 no one can give me a guaranty. 
 The workmen in any event must first be paid, and 
 also all other current expenses, before I receive any- 
 thing. It is obvious my funds must take the hazard 
 of the enterprise, and unless it afford a profit, I get 
 nothing. If I am only to receive the interest my 
 funds would command on loan, there seems no object 
 for me to take the risk. If successful beyond the 
 rate of interest proposed, I must divide with those 
 who have taken no risk, and have had the benefit of 
 occupation. In taking the risk I may lose all ; it is 
 therefore reasonable that I should have the benefit, if 
 it occur, of corresponding profits ; which the plan re- 
 duces by in part giving it to those who have taken no 
 risk at all." 
 
 The above position of the capitalist cannot be con- 
 troverted, and he only finds the reason to induce him to 
 
LABOUR AND CAPITAL. 123 
 
 this partnership, as before stated, namely — The superior 
 productiveness of the work that may be expected from 
 the ulterior interest the men have in the property of 
 the establishment. No doubt there is force in this 
 reason, especially when adopted for works that require 
 mainly skilled labour. The capitalist must look upon 
 it as a matter of business, and consider if it be prob- 
 able this plan will secure that extra degree of dili- 
 gence and care that will be equivalent to the extra 
 compensation provided for. The method appears more 
 promising as a means of harmonizing the conflict of 
 labour and capital than any other I know of, after 
 that of the corporation in which the workmen have 
 their own capital, and so secure both wages and 
 profits. 
 
 To the working-men it has the benefit of combin- 
 ing their interests under the management of men of 
 more experience in financial and commercial affairs 
 than they are likely to possess themselves, and at the 
 same time affords them the opportunity, as they gather 
 money from their savings, to purchase shares, and 
 hold the stock capital, and so far become effectually 
 and thoroughly co-operatives in labour and capital. 
 
 The plan provides, first, that the workmen are to 
 be paid regular wages, and the interest to the stock- 
 holders paid out of net profits to a certain rate ; and 
 
1 2 4 THE Q UESTION OF 
 
 second, the workman to be paid a certain rate out of 
 any balance that may remain of net profit. If judi- 
 ciously and satisfactorily arranged as to the rates to be 
 divided, and guarded against incompetent or idle work- 
 men, it appears a promising method of adjusting the 
 question of capital and labour, in a way that will 
 make both more productive. The danger is, that 
 difficulty would sometimes arise in dismissing work- 
 men who may have failed to satisfy the rules of the 
 establishment. It will require a firm, upright and in- 
 telUgent superintendent to do this duty, and if not 
 wisely done, the institution will probably decline. 
 The main feature of this plan, namely, the induce- 
 ment it offers for men to do the best in their power 
 to make the enterprise a success, is very important. 
 In arranging wages and profits, a basis should be 
 taken of moderate rates — depending for the more full 
 compensation for both labour and capital out of the 
 ultimate profits. Now it may be observed, no human 
 affairs are infallible, and we can only depend on such 
 organizations and management as wisdom and experi- 
 ence may dictate, and then do the best we can to 
 improve and make them useful. 
 
 Remarks on the Preceding. 
 All combinations are subject to objections as to 
 the economy of their operations. The individual who 
 
LABOUR AND CAPITAL. 12$ 
 
 has his own capital and labour, will conduct his af- 
 fairs, other things being equal, with more energy and 
 careful thought than any corporation. In his business 
 operations there is no adverse counsel nor i-nterest, 
 nor unfaithful associate to mar his success. So far as 
 the individual, by his own labour and capital, can 
 compass in an economical method the production of 
 his goods, it is the best plan. Next to this, there may 
 be a partnership or firm, composed of two or three 
 persons, for the purpose of uniting their capital and 
 labour in a production requiring larger means than 
 either may alone be able to furnish. 
 
 The next best source, especially for a young man 
 whose occupation requires considerable capital, is an 
 admission as a partner in an established industry. The 
 advantages of this are obviously important, and may 
 often be availed of by the young man who has obtain- 
 ed a good character for skill, industry and fidelity in 
 his occupation. 
 
 Among the industries of life there is a large num- 
 ber, as before noticed, that may be pursued by the 
 skilful workman with no more capital than an in- 
 dustrious and prudent young man may acquire in a 
 few years, or that may be acquired by two or three to 
 enable them to operate as a joint firm. With prudent 
 management they have in many cases founded impor- 
 
126 THE QUESTION OF ' 
 
 tant establishments ; these have grown from compara- 
 tively small beginnings — enlarged from profits until 
 they became extensive agents in production. Such 
 frequently draw in to their aid and partnership younger 
 men of their own vocation. Small beginnings have 
 grown by this process, from the industry and persever- 
 ance of the men, to very large works. 
 
 In the several methods above named, of what 
 may be called individual industries, there is no conflict 
 between labour and capital ; and as these embrace a 
 very large portion of the industries of life, they present 
 an important field for men who prefer an independent 
 condition in the management of their own industry. 
 It will be noticed these embrace whatever industry can 
 be conducted with the capital of the workmen. But 
 when these grow as before noticed, they more or less 
 become employers of other workmen, and also involve 
 to this extent the question of struggle between capital 
 and labour. 
 
 It is not worth while to notice further the commu- 
 nity plan. So far it has made but little progress, 
 and if it could succeed to general adoption, it would 
 destroy our civilization — uproot the principle of in- 
 dividuality, and thus break down the great stimulus 
 to human progress, in all that elevates and refines so- 
 ciety. 
 
LABOUR AND CAPITAL. 127 
 
 The plan of government management, by what is 
 understood as the paternal method, is entirely irrecon- 
 cilable with the principles of civil liberty, and will not 
 be tolerated by any intelligent working-men who 
 respect their rights and independence as freemen. 
 No man of intelligence who does not desire our insti- 
 tutions to degenerate into despotism, will favour this 
 method of adjusting the labour question. Far better 
 for each man to stand on the free right to his own 
 labour. 
 
 In the co-operative plan, which is understood 
 to be the union of labour and capital, of such a num- 
 ber of workmen as may be necessary to provide the 
 funds for any production they may contemplate, the 
 work, if the plan is strictly carried out, should be 
 done only by the partners who have furnished the 
 capital. It is only to this extent the method meets 
 the case of reconciliation between labour and cap- 
 ital. If the organization be by a joint-stock cor- 
 poration, which appears to me the best method of 
 association, then there would be no difficulty, if occa- 
 sion required to employ outside workmen, at the 
 market rate of wages, or as may be agreed on. To 
 this plan I see no objection, and so far as it combined 
 labour and capital, it would dispose of the labour ques- 
 tion. It certainly has a very promising look, and 
 
128 THE QUESTION OF 
 
 may come into general use for the larger class of in- 
 dustries. But it must be observed that thus far it 
 has made little progress ; suggesting difficulties in 
 the way that have not been overcome, and in the 
 present aspect does not promise to settle this question, 
 until these difficulties are removed. 
 
 The plan of " partnership corporation " proposes 
 the workmen have an interest in the ultimate profits 
 of the institution, though they have no interest in the 
 funds. For industries that require funds beyond the 
 resources of the workmen, it presents a favourable 
 prospect. If it be arranged on an equitable basis as 
 to wages and profits, the workman may have the ben- 
 efit of co-operation to the full extent of his means. 
 He has, first, the benefit of wages for his work, with a 
 contingent interest in the profits. He also has the 
 benefit of so much of the capital stock as he may 
 have funds to subscribe on the organization of the 
 corporation ; with the opportunity of adding to his 
 stock interest by the purchase of shares, as he ob- 
 tains savings from his industries. He will very prob- 
 ably be able to purchase shares at their par value, 
 and perhaps at less, and so, by gradually investing 
 his savings, will increase his interest in the capital 
 stock. 
 
 In all organizations on this plan of partnerships, 
 
LABOUR AND CAPITAL. 129 
 
 the capitalist would probably be careful not to include 
 workmen of an inferior order, or such as would be 
 likely to obstruct or embarrass sound regulations 
 in the administration of work or business. The 
 method would doubtless demand the association of 
 men of sufficient culture to appreciate the necessity 
 of submission to wholesome business rules. It is not 
 probable that the class of men who are most likely 
 to complain of the labour question, and dwell much on 
 its hardships, would find occupation with this kind of 
 association. But to men of industrious, prudent and 
 upright habits, there seems to be no better method of 
 co-operation, and that so well provides for harmony 
 between labour and capital, in the class of larger indus- 
 tries. This, with what may be done in those industries 
 that require no capital beyond that controlled by the 
 workmen themselves, seems to be all that can be done 
 to settle the conflict between labour and capital. 
 
 I do not see how this question can be better settled, 
 than by the methods above suggested ; and it is evi- 
 dent these, except so far as the labour and capital of 
 a private firm can accomplish the end, must be largely 
 dependent on the assent of the capitalist. They will 
 not hazard their capital on any plan that does not 
 offer reasonable prospect for remuneration. 
 
 If they form a partnership corporation, they will 
 9 
 
I30 THE QUESTION OF 
 
 be cautious in securing workmen of the most reliable 
 character. Now it cannot be disputed there is a 
 pretty large class of workmen who have not the char- 
 acter for self-control that would admit them into 
 such a partnership. Some of these are skilful work- 
 men, but have not the steadiness of habit necessary 
 for such a partnership. It must be kept in mind 
 that all co-operative associations must, to be success- 
 ful, be made up of men who would be most likely to 
 do well in individual enterprise. 
 
 As before observed, skilful, industrious and frugal 
 men will have no difficulty in making thrift that will 
 place them on a comparatively independent basis. But 
 the men who spend their earnings for present gratifi- 
 cation, and have none of that regard for future wants 
 which can induce them to lay aside a portion of their 
 earnings, and so prepare for the contingencies of 
 trade or other unavoidable occurrences that contract 
 employment, or arrest ability to work, must suffer 
 more or less when such contingencies overtake them. 
 Very little experience is necessary to admonish men 
 of the changeable circumstances of life, and the neces- 
 sity for improving what is favourable to-day, in antici- 
 pation of at least a possible change to a less favourable 
 condition to-morrow. A provident regard for the 
 future is an essential feature that distinguishes civil- 
 
LABOUR AND CAPITAL. 131 
 
 ization from barbarism. Our civilization has not 
 wholly freed us from an improvident class, and these 
 must be regarded as deficient in mental and moral 
 culture. " As a man soweth, so shall he also reap." 
 There is no escape from this : it is a law of nature and 
 confirmed by revelation. It involves the idea that 
 every man is to provide for himself, and that for this 
 provision he is individually responsible, and cannot 
 evade it without a sacrifice of his manhood. So long 
 as he has the full liberty to apply his labour and his 
 enterprise according to his own judgment, he can have 
 no ground of complaint. If he wastes his earnings on 
 the gratification of present desire, he has no legitimate 
 right to call on his more prudent neighbour, in times 
 of reverse, to make good his imprudence ; and any 
 such call must rest as an appeal to the charity of the 
 prudent. 
 
 Ability for Saving, 
 
 It is sometimes, and I may say often alleged, that 
 working-men do not obtain sufficient wages to have 
 anything left for thrift. Many facts, that any man 
 may observe, go to prove this erroneous as a general 
 principle. It is reported as statistically correct, that 
 there is annually expended in this country, six hundred 
 millions of dollars for intoxicating drinks ; and it is 
 
132 THE QUESTION OF 
 
 estimated that four hundred milHons, beyond any 
 beneficial use of this, is by working-men. It is well 
 known the thrifty class pay a very small proportion of 
 this, probably not one quarter. If this estimate is 
 correct, and I think it fully so, then we have three 
 hundred millions uselessly expended on this item by 
 the improvident class. 
 
 I know of no estimate of the number of this class, 
 and do not suppose any great accuracy can be had as 
 to the same. I do not think it exceeds one and a half 
 million of men; but to assume it at double this, or 
 three millions, appears to me quite liberal as to the 
 number. On a cautious basis I therefore take it at 
 three millions, and this gives an average of one 
 hundred dollars for each man per year. This I think 
 too high for common labourers ; but it is well known 
 that many skilled labourers indulge in this habit. 
 This estimate embraces only the loss in the actual 
 cost of the liquor drank. In addition to this source 
 of loss, there is much time and health wasted, and 
 'money expended by the improvident class, in various 
 useless and more or less demoralizing amusements, 
 and at idle corners and for tobacco. There can there- 
 fore be no doubt that more than three hundred millions 
 of dollars per year could easily be saved by this class, 
 and not curtail their necessary expenses one cent. 
 
LABOUR AND CAPITAL 133 
 
 These sources of saving leave no doubt of the safety 
 of the above estimate. It is amply within the reach 
 of the dependent class. (That the above is a moder- 
 ate estimate will be manifest, when it is considered the 
 statistics of value are based on the wholesale rate, and 
 that the consumers for the most part pay nearly double 
 this.) 
 
 That sum annually saved would provide a capital 
 sufficient to build and equip (1,500) fifteen hundred 
 mills at a cost of (^200,000) two hundred thousand 
 dollars each, or for the purchase of (150,000) one hun- 
 dred and fifty thousand farms at (;^2,ooo) two thou- 
 sand dollars each. To bring this question home, I 
 will make the application to the State of New York. 
 This State has about one-ninth, but for round num- 
 bers assume that it has one-tenth, of the population of 
 the Union. Then, this rate of saving, practised for 
 ten years, would provide as above, namely, for (1,500) 
 fifteen hundred mills at a cost each of (;^200,ooo) two 
 hundred thousand dollars — or for the purchase of 
 (150,000) one hundred and fifty thousand farms at 
 (^2,000) two thousand dollars each. It is therefore seen 
 the proposed saving would add greatly to the instru- 
 ments of labour in the hands of labouring-men. It 
 would not only result in this large saving in means, 
 but would also be a saving of the health impaired, and 
 
134 THE QUESTION OF 
 
 of time wasted and happiness destroyed by the inevita- 
 ble effects of indulging in intoxicating drinks. And 
 what is more important, it would raise the character 
 of the improvident class, and make them what they 
 should be, the proper guardians and protectors of the 
 happiness, education and respectability of their families 
 — elevate them in their social and political standing 
 with their fellow-men, manifesting in their own persons 
 the real dignity of labour. 
 
 This result is in the power of that portion of work- 
 ing-men who most especially complain of the hard- 
 ships of their lot, and call for the earnest effort of the 
 philanthropist to relieve them from the result of their 
 own improvidence. Industrious perseverance in the 
 saving that may be secured by every able-bodied man, 
 will steadily and surely reduce the ratio of the class of 
 dependent men to that of the class of independent 
 men. The former surrounding themselves as the latter 
 do, with comfortable dwellings, and the means of 
 material and moral improvement; giving them the 
 dignity of manhood and self-control ; furnishing them 
 with improved instruments for their labour and enter- 
 prise ; or the investment of their accumulations in 
 interest-paying securities ; laying a foundation for the 
 necessities of advancing age, when the ability of labour 
 must necessarily be diminished. 
 
LABOUR AND CAPITAL. 135 
 
 Men, if they would prosper, must be free, and one 
 of the conditions of freedom is, to secure each man in 
 the full enjoyment of his individual personality. In 
 this it is his right to make the best of his situation. 
 If he is industrious, skilful and frugal, barring ex- 
 traordinary circumstances, he will succeed. If he 
 has not the manliness to do this, he must reap the 
 due reward of his election. 
 
 Civilization is the result of culture, and there can 
 be no civilization without the rights of private property ; 
 and property can only be had by industry and frugality. 
 It is substantially all obtained in this way, and those 
 not willing to practice this method, cannot ordinarily 
 expect to obtain it. However well a man may labour, 
 if he spends all his earnings in providing for current 
 wants, he cannot accumulate, and must eventually 
 come to the condition of the dependent class. 
 
 It is said some men have a natural turn or gift for 
 thrift, and that others never seem able to get beyond 
 a supply of present wants. No doubt there is a differ- 
 ence in the intellect and moral stamina of men, which 
 it may not be possible for man to equalize or adjust. 
 I do not enter on those cases, but direct my at- 
 tention to the large proportion who can be improved, 
 as I hope, by mental and moral culture. The differ- 
 ences that appear show the moral of the men, as devel- 
 
136 THE QUESTION OF 
 
 oped mostly by education. In general the case does 
 not lay in fortune, but in a purpose that makes the 
 difference we find in society. The best philanthropy 
 in this case is, to promote such culture as will estab- 
 lish thoroughly in the mind the principle of self-con- 
 trol, by which a man shall have the power of appro- 
 priating his energies to useful purposes and guard him 
 against waste. When this is effectually secured, there 
 will be little complaint of the conflict between labour 
 and capital. 
 
 It is certainly no pleasure to set forth the above 
 remarks, as cause in producing the dependent class ; 
 but convinced of their truth, I see no alternative. The 
 evil of improvidence can only be corrected by fully 
 unfolding and understanding the cause. 
 
 The law of nature, no less than that of revelation, 
 establishes the rule of right and wrong, and the con- 
 sequences that inevitably result, as a man makes his 
 election to follow the one course or the other. It is 
 therefore clearly incumbent on every man to deliberate 
 carefully on the course he will pursue ; as when enter- 
 ed upon he cannot escape the issue. It is a matter in 
 which he must take his own responsibility. There is 
 no escape from this. 
 
 The man who has been well trained in habits of 
 diligent industry, uprightness, self-control and frugality, 
 
LABOUR AND CAPITAL. 137 
 
 bamng exceptional cases, will be thrifty, and rise to 
 competent independence, if not to great wealth. On 
 the other hand, if the man pursues industry merely to 
 satisfy present wants, and with no special regard to the 
 future, he must be content to take his position in the 
 dependent class, and sooner or later realize that his 
 sustenance must come from public or private charity. 
 Every sane man will consider this question, so far as 
 he values his future prosperity. It may be added his 
 present happiness as well ; for no man who has a 
 laudable desire to frugally improve the present, will fail 
 to realize a far greater degree of present enjoyment, 
 than the one who is Hstless as to the future. It is in 
 this choice the moral tone will be manifested, and the 
 true dignity of manhood be demonstrated. To evade 
 this question on a plea of incompetence, is pusillani- 
 mous, and a giving up of all that is manly or charac- 
 teristic of the essential principles that should call out 
 and adorn individual personality. If any man has not 
 the appreciation of the benefits of civilization so as to 
 induce him to embrace them, and lay the foundation 
 of the prosperity that is within his reach, he will in a 
 greater or less degree follow that of the savage, who 
 will not work to-day for the supply of his wants to- 
 morrow. 
 
 It is a common complaint among workmen, that their 
 
138 THE QUESTION- OF 
 
 wages are too small to allow them to make savings 
 above expenses of living. But this has been done by 
 farm labourers, who in the course of ten years have ac- 
 cumulated by saving from their wages, and the interest 
 thereby secured, from ten hundred to fifteen hundred 
 dollars. This enabled them to purchase a small farm, or 
 to make a large payment down, and thereafter to work 
 as their own masters. The class of men who do this 
 will not stop saving when they enter on their own 
 lands, but will continue to accumulate, and in most 
 cases acquire a handsome independence as a substan- 
 tial comfort for their advanced years. If this result 
 may be reached by a farm labourer, certainly a skilled 
 labourer may reach a similar independence. All that 
 is needed in either case is the moral nerve or self-con- 
 trol necessary to overcome desire for indulgence in 
 things that are not necessary, and not consistent with 
 ultimate good. It is well for all to consider what has 
 been stated, that this is the way existing capital has 
 mostly been obtained. More or less favourable condi- 
 tions, and eminence in executive ability, will produce 
 corresponding results. But I have taken the farm 
 labourer or his equivalent as an illustration of what 
 has been accomplished ; and what has been done may 
 still be done, when there is a purpose of making the 
 best of the situation. 
 
LABOUR AND CAPITAL. 13^ 
 
 Regarding capital, as for the most part it is, the 
 product of accumulated earnings, frugally husbanded, 
 and that the field of similar enterprise is open to all 
 who have the spirit and manliness to embrace it, there 
 can be no just ground for a conflict between it and 
 labour. As an illustration : I employ a man at wages 
 from which he saves more than half his pay. I pay 
 him out of the savings I have accumulated in early 
 life. If I had not in this way provided the capital to 
 pay, he could not obtain the wages from me, nor from 
 any one who had not the capital or means to pay, 
 There is no conflict between me and my workman. I 
 am satisfied with his work, and he is satisfied with 
 his wages, and by his frugality he is accumulating 
 capital. 
 
 The conflict that arises between the workman and 
 the capitalist is precisely the same as that which 
 arises in all free commercial transactions between 
 men ; it is in no sense peculiar, and must be settled 
 by the same law of demand and supply that pertains 
 to every department of business. Therefore, though 
 there may be contest, it is in no special sense a con- 
 flict. Any effort to evade the law referred to, will in- 
 evitably end in failure. 
 
140 'i'he question of 
 
 Thrifty and Unthrifty. 
 
 There is no question as to the fact that there are 
 two classes in society — The Thrifty and the Unthrifty. 
 It is the province and the duty of Christian civilization 
 to reduce the ratio of the latter to the former. The 
 best progress in this will be made when a practical 
 Christianity has a controlling influence on the minds 
 of men. Vice will inevitably prevail where a sense of 
 moral right and purity does not control. A sound pro- 
 priety of conduct cannot be expected to prevail in the 
 absence of veneration for the right in affairs, and pu- 
 rity in morals. I know very well there are those, and 
 among them some who have made success in their af- 
 fairs, that lightly esteem the above sentiment, and claim 
 that principle the best, " that keeps what they have 
 got and gets what they can," leaving others to do as 
 they can with no sympathy from them. Indeed some 
 regard the dependent poor as a necessity for the ac- 
 commodation of the rich, and treat any desire in them 
 to rise to respectable conditions as an unwarrantable 
 assumption. Such have no fellowship, and ignore the 
 duty and obligation of " doing as they would have 
 others do to them." However men may trifle with 
 these sound principles of morals and of right, they, 
 nevertheless, are the basis of all that is true in our 
 
LABOUR AND CAPITAL. 14 j 
 
 civilization, and especially in so far as this must be 
 our reliance, to establish productive industry on a just 
 basis, and also for the maintenance of civil liberty 
 and the just rights of men. Disregard for the just 
 rights of others, for courteous deportment and for 
 purity of manner, will inevitably lead to anarchy, op- 
 pression, and the destruction of the basis on which civ- 
 ilized society rests. 
 
 As it has been, so we must expect it will be, these 
 two classes, the thrifty and the unthrifty, will be more 
 or less in antagonism with each other. The man that 
 is unthrifty, who has consumed his earnings as fast as 
 he has received them, and left no reserve for the wants 
 of the future, when the future arrives will think it 
 quite becoming his wants should be supplied out of 
 the savings of his thrifty neighbour, and complain if 
 his neighbour does not respond to the necessities of a 
 fellow-being who comes to him in his time of need. 
 The unthrifty man takes no note to explain the 
 wasteful character of his own proceedings, nor regards 
 the diligence and self-control or self-denial that has 
 secured to the thrifty man his ability to afford relief. 
 The unthrifty man attributes his condition to bad luck, 
 or some inscrutable providence, and by no means refers 
 it to. any remissness or want of providence on his own 
 part. 
 
142 THE QUESTION OF 
 
 We may congratulate ourselves, that of our people, 
 who are for the most part working people, there is so 
 large a proportion of the thrifty class. These hold up 
 our civilization, and so far resist and counteract the 
 tendencies of the other class, as to maintain order in 
 society, and so largely secure the benefits of diligent 
 and economical application in industry and prudence 
 in habit. 
 
 So long as that thing called sin (of which some peo- 
 ple do not like to speak) has prevalence in the world, 
 there will be strong necessity to originate and maintain 
 the most efficient methods to promote mental and 
 moral culture as a means to mitigate the tendency, if 
 we may not wholly remove the habits of indolence 
 and waste, and so reduce the ratio of the unthrifty to 
 the thrifty to the lowest possible quantity. When 
 this can be made complete we shall have solved the 
 problem of labour and capital in the only way, and to 
 the greatest extent, that is practicable. No American 
 youth should think this beyond his powers. It has 
 been accomplished by vast numbers, as is manifest by 
 the large aggregate wealth that has been produced by 
 the steady diligence and self-control of individual men 
 who had the manliness to make the most of their 
 situation. 
 
 All men are not so educated as to appreciate the 
 
LABOUR AND CAPITAL. 
 
 143 
 
 above sentiment. The stream will not rise above the 
 fountain. If parents have not the self-control to guide 
 themselves in the right way, how can they be expect- 
 ed to instruct their children .■' The man who has not 
 been able to restrain himself, and bring his own pow- 
 ers under the control of reason, can hardly be expect- 
 ed to restrain and guide his children. If the parent 
 is indolent and wasteful, if dishonest in the conduct 
 of his affairs, his children will most probably follow 
 his example. In this we must not forget those parents 
 who have the sense to see their want of education, and 
 make manly efforts to provide it for their children. 
 Such should have all the aid society can give to 
 encourage their laudable endeavour. 
 
 In the following section I shall endeavour to pre- 
 sent some hints on the benefit of 
 
 Education. 
 
 I know there is some authority against me, but I 
 assume the ground that mental and moral culture tends 
 to promote justice, right and purity of manners ; and 
 that the cultivated man is most likely to be industrious 
 and prudent. Exceptions may be quoted showing that 
 intelligence of mind has been connected with great 
 wrongs, and that cultivation gives a manifest pow- 
 er to do a mischief that an uncultured man would be 
 
144 "^^^ QUESTION OF 
 
 incapable of doing. I am compelled to admit the 
 exception ; but I contend it is only an exception, and 
 does not disturb the general rule ; and hence I look to 
 our public schools and other institutions of learning as 
 the instrumentality for elevating the working class, 
 which in fact includes the most of us as a people. 
 These means are most beneficial when supplemented 
 by sound and discreet family training. 
 
 The youth will be ardent and more or less frivolous 
 and frolicsome, and will not be likely to seriously 
 regard the usefulness of his activities. It is in the 
 training of the family these energies are to be mould- 
 ed and their application gradually directed to useful 
 purposes. It is often said youth are heedless and 
 impatient of control, which is true to a large extent. 
 They have not the experience of age, and their .ignor- 
 ance leads them to suppose they are wiser than their 
 seniors, or at least quite as wise. Of course these views 
 will be corrected by years, when experience will teach 
 them how small their wisdom was. But it is important 
 they learn as much as practicable before they are 
 called to the responsibility of conducting affairs for 
 themselves. They are not so callous as some suppose, 
 and will learn as they listen from time to time to the 
 instruction, and observe the experience of a discreet 
 parent. A youth will rarely be found who disregards 
 
LABOUR AND CAPITAL, i^g 
 
 the intelligent counsel of a parent he has learned to 
 respect for his judgment and correct deportment, and 
 is withal impressed by his desire to do him good. The 
 youth that does not respect such a father offers little 
 hope for his future. 
 
 The youth not restrained by the fear of God, will 
 hardly understand the full value of justice, or hold 
 that sense of individual responsibility which is 
 necessary to a proper self-reliance. A good character 
 is predicated on doing "justice and judgment," and 
 the exercise of all our powers in industrious production, 
 with a discreet frugality in all our personal appropria- 
 tions. Self-control should be earnestly and system- 
 atically inculcated. To succeed in this, it is indispensa- 
 ble that we exercise the power necessary to subdue 
 those passions which, if unrestrained, bring men under 
 an iron vassalage to vice and prodigality, and as a 
 consequence to poverty. Virtue or vice — this is the 
 real question — " Clioose ye which ye will serve." 
 
 In all education, the parent should remember 
 the old rule, " It is good for a man to bear the 
 yoke in his youth." If the boy is petted, and fails 
 to obtain a wholesome discipline in his youth, 
 he will probably learn its importance when age will 
 not allow him to profit from its salutary culture. 
 The parent that deals to his children candy and 
 
 lO 
 
146 THE QUESTION OF 
 
 plums, and stimulates vain desires instead of sub- 
 jecting them to a healthy discipline, must not expect 
 from them care and kindness, when age and infirmity 
 demand this return for parental care, or any comfort 
 from seeing them in the occupation of high positions 
 of usefulness among men. This matter of discipline 
 is often hard to practice, and demands careful thought 
 and steady perseverance ; but all experience proves it 
 is an indispensable requisite to mould the youthful mind, 
 and bring it to the ultimate enjoyment of a course 
 of life which at first was regarded with repugnance. 
 
 Let no parent who is so far under the influence of 
 civilization as to feel its power,neglect the above sugges- 
 tions. They demand the careful consideration of every 
 parent who expects or desires his son to be educated 
 in the knowledge of his vocation, and in that firmness 
 of character that will give him the power to pursue 
 his calling in such vigorous manner as will secure him 
 a position among his fellow-men, of at least compe- 
 tence in property, and respectability as a capable 
 and upright man. So far as the parent succeeds in 
 establishing this culture, he will bring this contest 
 between labour and capital to an end by a durable 
 peace. No material gains can be of so great value, or 
 do his son so much good, as a well-formed character, 
 with ability for useful occupation. 
 
LABOUR AND CAPITAL. 147 
 
 Inequality in Wealth. 
 
 Property, during the historic period, has mostly 
 been in the hands of a comparatively small number of 
 men. Its diffusion in society has increased as civiliza- 
 tion in general culture has advanced. It is therefore 
 evident that culture, by the education of every work- 
 ing-man, is eminently important for progress in the 
 civilization necessary to promote the general well-being 
 of society. Culture renders man dissatisfied with what 
 is barely sufficient for necessary subsistence, and he 
 is led to seek enlargement in his wants. The savage is 
 content with a hut, culture demands a house with apart- 
 ments. As new wants are presented to his tastes or 
 called to increase his comforts, the cultivated man seeks 
 or devises some new or more efficient method of indus- 
 try as the means of providing them. His ingenuity is 
 stimulated to ascertain the method,and his perseverance 
 opens by degrees the path to his object. In his pro- 
 gress, what was at first regarded as a luxury, becomes 
 a common necessity. This progress developes taste 
 and enterprise, brings out the arts that elevate the 
 mind and improves civilization. In its course it 
 leads to additional sources of industry, calling in the 
 power of mechanical agents to aid the labour of men 
 in the productions that minister to their wants. These 
 
148 THE QUESTION OF 
 
 additional sources of industry and power, enlarge the 
 field of employment to both labour and capital. 
 
 As before observed, it does not always happen 
 that labour and capital are in the same hands. One 
 party has capital and the other labour and skill, and 
 these must be harmonized on some principle that will 
 regulate their respective positions. In the case 
 where the capitalist is not a professional manufacturer, 
 and the workman is not able to command the means 
 necessary to conduct the operations on his own ac- 
 count ; the question with the capitalist will be — can 
 I obtain a better interest for my funds by erecting 
 mills and conducting the manufacture of a certain 
 fabric, than by other means of investment .' The 
 prospect must be such as will secure an affirmative 
 answer, or he will depend on other ways of using his 
 funds. He may be mistaken in his conclusion ; but 
 this answer is necessary before he makes the decision 
 to erect the necessary works. As a matter of busi- 
 ness, he is justified in estimating the cost of the 
 labour he will require, on the current rate of the 
 market for wages. It is no part of his concern to 
 investigate the rate of wages that will support the 
 workman ; that is altogether a matter for the work- 
 man himself. The latter, in his right, will consider 
 his interest, in view of all the circumstances of the 
 
LABOUR AND CAPITAL. j^g 
 
 case, in the light of the labour market ; on the same 
 principle the former looks to the market rate of in- 
 terest for his funds. It is on both sides a purely 
 commercial transaction. There are no equities in 
 this, except so far as may regard the proper and just 
 discharge of the obligation of contract between tlie 
 parties; they negotiated on the basis of commercial 
 equality; and are equally bound to fidelity in the 
 execution of their contracts, same as in any business. 
 The charity view must be thrown out altogether as 
 having no part in the matter. If there be any cir- 
 cumstance that calls for charity or benevolence, it 
 must be treated as a gratuity, and so far removed 
 from the domain of business. 
 
 There must of necessity be " inequality in wealth." 
 The discreet man, who by prudently husbanding his 
 resources has come to mature years surrounded by 
 a well-arranged and productive property, which 
 affords him a comfortable independence, according 
 to his education and taste, we may suppose has 
 raised a family, of perhaps a half a dozen children. 
 He is able to provide for this family according to the 
 habits in which they have been educated. Now the 
 time will come when this estate must be divided. 
 As a compact whole, it was ample to provide under 
 one roof for this family ; but in the division, this well- 
 
I50 THE QUESTION OF 
 
 ordered unit of estate, will be less valuable than 
 before the division. The children must now be con- 
 tent to take each his fragment, which will probably 
 be quite inadequate to support them separately in 
 the style and manner they had been accustomed to 
 under the paternal roof. If now they have been 
 well trained to some useful vocation, they will supple- 
 ment, each his own fragment, by industry and pru- 
 dence, and with the aid of their patrimony, judiciously 
 add to its volume, and very probably reach a higher 
 degree of wealth than the parent. But if, as is not 
 unfrequent, they feel so well provided for as to 
 demoralize their industry, and give a slack view to 
 exertions, failing of the effort required to make the 
 necessary thrift, they will very probably exhaust 
 their patrimony and become poor indeed. If the 
 patrimony be so large as to be sufHcient, with no more 
 effort than required for its preservation, it is still 
 important to exercise prudence, and secure at least 
 some degree of thrift. This is important in view of 
 losses that may occur from investments, even if no 
 increased expenses are anticipated, as it will provide 
 means for making good any loss that may occur, and 
 so keep good the income. Here is an obvious source 
 of inequality. 
 
 But the main source of inequality in wealth is 
 
LABOUR AND CAPITAL. jci 
 
 found in the two classes of men— the thrifty and the 
 unthrifty. One of these will manage affairs by sav- 
 ing, and so accumulate wealth — the other elects to 
 consume all his earnings, and has little or nothing for 
 accumulation. The inevitable result is, the thrifty 
 man has wealth, and the unthrifty man passes through 
 life in daily struggle for little or nothing above a bare 
 subsistence. This is the result of individual character. 
 One man improves his powers and another does not, 
 and inequality is the inevitable result. No device of 
 man, or perfection in civilization has thus far been 
 sufficient to prevent this, and it is incumbent on all 
 men to so perfect education as will remove this evil, 
 so far as it may be practicable to do so. 
 
 This Conflict not Peculiar. 
 
 Although capital and labour must, to a large ex- 
 tent, work together in the production of fabrics, there 
 is no doubt a conflict of interest, same as in any busi- 
 ness transaction ; but in no way peculiar to this. The 
 capitalist desires to obtain the largest interest he can 
 for his funds, and the workman seeks to obtain the 
 highest wages the market will command for his labour. 
 There can be no objection to this in either case, nor 
 is it different from the struggle that pertains to all 
 business under commercial freedom. 
 
i 5 2 the question of 
 
 Combinations or Monopolies. 
 
 l.iC principle of combination to maintain a certain 
 rate of wages, is the same as that to maintain a certain 
 price for goods. In either case, if the respective par- 
 ties are agreed, they may combine their interests, and 
 refuse any transaction that does not accord with their 
 purpose. So far it is merely a voluntary aflfair, de- 
 pending on the mutual confidence of the parties. 
 
 The courts will not take cognizance of such combi- 
 nations, with a view to inflict damage on any of the 
 parties connected, if they choose to break from the com- 
 bination, and conduct their affairs independently. The 
 rule of law that governs in such cases is, that the 
 combination is inconsistent with public policy. Any 
 action, therefore, of the combination that aims to pun- 
 ish those outside, or even one within, if he choose to con- 
 duct his affairs independently, will be held unlawful, 
 and punished as any other wrong-doing. This princi- 
 ple of law is essential to civilization and the mainten- 
 ance of the commercial freedom that is indispensable 
 to the just rights, as well as the paramount interests 
 of society. It is quite as important for securing the 
 right of the workmen, as for that of the capitalist. 
 This has no relation to contracts for service in labour 
 or other exchange, but to those efforts in combination 
 
LABOUR AND CAPITAL. j^j 
 
 which aim to overthrow the laws of commercial freedom, 
 either by monopoly or any forestalling of the market. 
 
 Combinations have often been formed to control 
 the rate of wages and the price of goods. At the 
 present day, the means of communication are so en- 
 larged, that combinations require too wide a scope to 
 be successfully conducted for any considerable length 
 of time. The varied circumstances of individuals and 
 localities will tend to break in ; and as no legal power 
 exists to control or enforce them, they soon fall, and all 
 parties are brought into submission to the laws that 
 regulate demand and supply. To this result, if there is 
 no speciality in the case, all such efforts must come, and 
 it is not only the most just, but the best rule that has 
 been found. If the supply of capital is large in pro- 
 portion to demand, the rate of interest will be low, and 
 the same rule holds in relation to the rate of wages. 
 The party that desires to hire funds or labour, will 
 pay no more than may be necessary to command 
 either funds or labour. In either case, business is 
 done on this basis. 
 
 To a widow who has a thousand dollars to invest, 
 it may be very desirable, and perhaps important for 
 her to obtain ten per cent per year ; but if the 
 market will only give five per cent, she must be 
 content with five. Precisely the same to a workman. 
 
154 THE QUESTION OF 
 
 It may be important for him to obtain two dollars for 
 a day's labour, but if the supply of labour is so 
 abundant he can find no offer over a dollar, he must 
 take the dollar, on the same principle the widow 
 accepts five per cent for her funds. In either case 
 if more is paid in interest or wages, it must be as a 
 charity ; and this removes the question from the 
 category of business, a method that has no basis in 
 the commercial affairs of men. The charity view, 
 moreover, is derogatory to the workman, degrading 
 the dignity of labour. 
 
 An intelligent and enterprising workman will see 
 that capital is only the accumulated savings gathered 
 from previous labour and frugality; and that his 
 savings will be his own capital, as will be manifest as 
 he gathers the proceeds of his own enterprise and 
 prudence, and which will work for him either as 
 instruments in his business or as interest on invested 
 capital gathered from his savings. 
 
 This Conflict Should be Adjusted. 
 
 If it were not frequently said — the conflict between 
 labour and capital must be settled, we should con- 
 clude the matter must be adjusted on the same basis 
 as all other commercial transactions. What, then, can 
 be meant by settling the conflict between labour and 
 
LABOUR AND CAPITAL. 155 
 
 capital ? Is there any potentate who by decree can 
 settle this question ? It would seem that some people 
 think it a prerogative of government to do this, and 
 some attempts have been made, so far as giving law 
 to the hours that constitute a day's work. Applied to 
 minors, this may be a proper exercise of authority to 
 protect the young from improper exactions of em- 
 ployers or guardians ; but as applied to men, who 
 hold the power of citizenship, and the full right of 
 contract, is no more just or proper than for govern- 
 ment to fix the price of a barrel of flour or a pound 
 of meat. In the latter case it assumes that an adult 
 man is not a free agent, and has no real personality, 
 and needs the paternal care of the government to 
 minister to his daily necessities. 
 
 Not far in the past, it was regarded necessary that 
 the weight of a shilling loaf of bread should be deter- 
 mined by municipal authority. This was the practice 
 not many years since in the city of New York, and in 
 other cities. What was termed the " assize of bread," 
 was a measure to protect the consumers from imposi- 
 tion by the bakers. It was adjusted from time to 
 time as the price of flour changed in the market. I 
 very well recollect hearing this subject discussed by 
 citizens of New York, about thirty-five years ago, 
 who said they found the assize to be useless — that 
 
156 THE QUESTION OF 
 
 the competition among the bakers was the best 
 regulation. And so, gradually the people bought 
 their bread from the baker who gave the best in 
 weight and quality, and the assize by municipal 
 authority was abandoned : it fell by its own dead 
 weight, an exploded relic of the past. 
 
 In former days it was regarded necessary for the 
 city to build markets, for the sale of provisions, and 
 to protect the people ; certain persons were licensed 
 to furnish and sell the same by authority. No one 
 was allowed to sell who had not a license, and at the 
 regular market of the city. This was then regarded 
 necessary to protect the citizens from imposition in 
 the supply of their daily wants of meat, poultry, 
 vegetables, fish, fruits, &c. The city of New York has 
 largely grown since those days, and with its growth 
 markets have been established and conducted by 
 individual enterprise at the stores of the owners, 
 without license, in various parts of the city,' and now 
 constitute the principal sources of supply for the 
 daily wants of the citizens. Thus as time and intelli- 
 gence advanced, municipal regulations have given 
 place to free trade. The city and its vicinity now 
 contains about one and a half million of people, whose 
 daily wants are supplied by the untrammelled law of 
 supply and demand. All this is done quietly ; no one 
 
LABOUR AND CAPITAL. 157 
 
 of this vast population takes thought where his su^d- 
 pHes may come from ; he goes to the store or market 
 not doubting he will find gathered all things in their 
 season. And how is the daily supply for this popula- 
 tion gathered ? There is no government organization. 
 No authority is constituted to gather supplies. If it 
 were an army of troops, what a busy going to and fro 
 of commissaries and assistants ; what hurry and worry 
 of transport and distribution would pervade the sur- 
 rounding country ; and who can imagine the amount 
 of corruption that would swell the expenses through 
 this instrumentality.'' But this great population is 
 provided for without commotion or excitement, and 
 finds its daily wants supplied without the least effort 
 as to the source or order by which they are brought to 
 hand ; and all under the silent operations of the law 
 of demand and supply. 
 
 Contemplate the great population of New York 
 and vicinity, in view of the daily supplies that are 
 needed, and all supplied in such a quiet way that no 
 one inquires beyond the market for the article he 
 wants, nor feels any regulating authority of govern- 
 ment to aid or embarrass him. The old laws of assize 
 of bread, and market license, have ceased, and the city 
 presents a beautiful specimen of the order, efficiency 
 and economy of the laws of free trade, operating on a 
 
158 THE QUESTION OF 
 
 large scale. They have quietly superseded the method 
 of municipal regulation, which has been found inferior, 
 and has given place to natural law. 
 
 Now, if government authority has failed to prove 
 useful in regulating the value of bread, and the sale of 
 provisions in a large city, the absolute necessities for 
 every day for all, what possible chance is there that 
 it can regulate the intricate relations of labour and 
 capital with any more beneficence ? There can be none 
 at all. Any proposition to adjust these relations by 
 other power than the law of demand and supply will 
 fail. Other projects may originate in benevolent views 
 towards labour, but they will prove mistaken views, 
 that neither do credit to the workmen nor justice 
 to the dignity of labour. They repudiate the principle 
 of self-government, and go to establish what is termed 
 paternal government, or one that holds man incapable 
 of conducting his own affairs. Government is certain- 
 ly necessary, in order that every man be protected in 
 his own personal rights, and secure to each his rights 
 of labour and contract. After this the man should be 
 left free to conduct his affairs according to his own 
 judgment, under equal laws. 
 
 Labour cannot be employed, unless there is an 
 object to serve. It is wanted when there is work to 
 be done, and will be employed if the market rate war- 
 
LABOUR AND CAPITAL. 150 
 
 rant the production for which it is desired. If this is 
 too high to justify its appUcation to the specific object, 
 then this class of production cannot be prosecuted, 
 and the labour must seek another channel for employ- 
 ment. Is it possible under such circumstances for 
 the government to step in and direct the course of 
 industries. No sensible man will claim this. If 
 therefore labour is in excess of the demand, the ten- 
 dency will be the same as in all over supply of goods 
 or services, and subject to the same competition. 
 There is no possible escape from this, without destroy- 
 ing the basis of commercial freedom. 
 
 No labour is bestowed nor funds appropriated to 
 any production, except on the basis of deriving a 
 profit. Neither will be supplied, unless the prospect 
 of remuneration is equal to that which maybe obtained 
 in other branches of industry. To say to a workman, 
 you must work for a fixed rate, or to a capitalist you 
 must be content with a fixed profit, irrespective of the 
 market, is absurd and injurious to all parties, though 
 governments have m.ore or less attempted such regula- 
 tions. But this paternity principle is on the wane, 
 and will be wholly abandoned as intelligence prevails. 
 If this is correct, how shall the labour and capital 
 problem be solved .■" These parties will not go into 
 production on any other terms than the market rate, 
 
l6o THE QUESTION OF 
 
 unless some arbitrary power should interpose to com- 
 pel them. Any such power would destroy self-gov- 
 ernment or civil liberty, and reduce man to dependence 
 on a despot. But we are by no means left to this 
 alternative. The law of demand and supply is ample 
 for the adjustment of this question. Let these alone, 
 and with the greatest harmony they will work out the 
 best possible result in the combined operations of 
 labour and capital. This is commercial freedom, the 
 only law that can secure dignity and just remuner- 
 ation to labour, and the proper return for capital. 
 Both are to be compensated on the basis of this one 
 law, and no act of man can produce a more beneficent 
 result, and all efforts to evade it can only end in 
 failure or despotism. 
 
 Some men discuss this question as though we 
 should have a bashaw to determine and settle the 
 intricacies of our industries. This is claimed in the 
 interest of labour, as though it was some feeble thing 
 that had not the power to take care of itself. What 
 is the great fact of American history in regard to 
 labour .? It is that it has produced nearly all the capi- 
 talists of the country,— has subdued a wildernesS; and 
 in place erected dwellings, offices, warehouses and 
 mills ; it has built cities, canals and railways ; it has 
 drained and fenced the lands, so that our eyes behold 
 
LABOUR AND CAPITAL. igj 
 
 a cultivated country. In addition, it has built school- 
 houses, academies, colleges, and sustained the educa- 
 tion that has given us our civilization ; it has erected 
 church edifices and sustained the preaching of the 
 gospel of Christ, which is the constitution of civil 
 liberty. After all this shall labour go begging for 
 charity .' Heaven forbid ! 
 
 But to this it is replied, will you not allow the 
 exercise of charity to the unfortunate ? Certainly, not 
 only to the unfortunate, but also to the improvident ; it 
 is proper for the government and for individuals to 
 make provision for the aged, the infirm, and all that 
 from mental or physical imbecility are unable to pro- 
 vide for their own subsistence. But this takes the 
 question out of the business circle, and we must be 
 careful not to confound manly labour with pauperism. 
 
 To an American citizen it will readily occur that 
 this question is intimately connected with civil liberty. 
 Free government is supposed to be established for the 
 purpose of securing to every man, by equal laws, the 
 rights of labour and enterprise ; with no class privi- 
 leges. It is founded on the belief that every man will 
 judge most wisely of the kind or method of labour 
 best suited to his circumstances. This is the highest 
 hope of the working-man. It puts him in the position 
 
 to make the best of his situation. It is for him to de- 
 
 II 
 
1 62 '^HE QUESTION OF 
 
 cide whether or not he will occupy its advantages. 
 Here is a field open to the cultivation and improve- 
 ment of his best powers. Though he begin in a 
 small way, with patient perseverance and prudent con- 
 duct of his affairs, he will take thrift from the start, 
 and gradually improve his condition, until he reach a 
 reasonable competence if not large wealth. If, how- 
 ever, the government by some Utopian method takes 
 from his savings, and bestows it on some indolent 
 brother workman, he will so far lose the benefit of his 
 own industry. It is to be observed the government 
 can give nothing to one that it does not take from 
 another, and hence the gross injustice of any such act 
 of special favour. The same result will follow any at- 
 tempt of authority, to stipulate the terms of labour. 
 Certainly it requires very little reflection to see the 
 impossibility of any just regulation of the intricate af- 
 fairs of labour and capital, as associated in production 
 by authority of government. The effort to compass this 
 by regulating the hours of labour for adult men, is a 
 gross intermeddling that can only work evil, and is no 
 part of the function of government. 
 
 The protection of civil liberty is of the most im- 
 portant benefit to all labour and enterprise, and should 
 be especially cherished by the working-man, who 
 should be jealous of any infringement of his natural 
 
LABOUR AND CAPITAL. 163 
 
 right or the estabUshment of any class privileges in 
 society. This question of civil liberty deserves to be 
 carefully considered by every working-man. It in- 
 volves the very important principle of individuality or 
 free government by which each citizen is sustained in 
 the right of employing his energies in such a way as 
 he regards most likely to promote his welfare. Now, 
 what other power can so well understand this as him- 
 self .' Who else shall so fully comprehend the numer- 
 ous circumstances of business by which he may be 
 surrounded .? Is it possible for government to do this } 
 It is a well-settled principle, that affairs conducted by 
 government are more expensive than those conduct- 
 ed by an individual. And from this it is well claimed 
 by the friends of civil liberty, that the government 
 should be restricted in its operations to those things 
 that cannot be conducted by individuals. Even a 
 business corporation is more exposed to errors in 
 judgment and corruption in management, than those 
 managed by an individual, or a firm of two or three 
 persons. 
 
 Government is wanted to maintain justice among 
 men, and protect each from any wrong on the part of 
 others ; and this should be irrespective of parties ; es- 
 tablishing protection to all, and granting special favours 
 to none. Civil liberty rests on the doctrine " that all 
 
1(34 THE QUESTION OF 
 
 men are by nature free, and possess the inalienable 
 right of life, liberty and the pursuit of happiness." 
 This principle is all-important to the working-man, 
 and in fact to all others as well. It sustains, in full 
 action, the power of individual labour and enterprise, 
 giving to man the right to make the most of his 
 situation. Under this rule our country has prospered. 
 Industry has been rewarded, and men with nothing 
 but their skill and labour to begin with, have acquired 
 large wealth, and great numbers have obtained compe- 
 tent estates. But it must not be forgotten these 
 results have been secured by industry and frugality — 
 beginning with small thrift and followed up under the 
 influence of a wise self-control. This class have no 
 conflict with capital. They feel the strength of indi- 
 vidual power. The conflict is confined mostly to the 
 class who labour for present subsistence, and are not 
 disposed to restrain the gratification of to-day in order 
 to secure a future good. These are very likely to 
 complain of their lot, and look enviously to those of 
 their fellow-workmen who by self-denial have been 
 thrifty, and by this very means have put tools and 
 machinery into the hands of their less provident fel- 
 lows, thereby saving the latter from the necessity of 
 depending on the chase to procure the means of a 
 scanty and precarious subsistence. 
 
LABOUR AND CAPITAL. ig^ 
 
 Industry and frugality are the basis of tiirift; they 
 are of eminent benefit, not only to the individual that 
 practices them, but to society in general. It is not 
 merely in the accumulation of property, but is also of 
 great value in promoting the mental and moral 
 advancement of men. The man who has a purpose to 
 improve his condition, by every laudable means in his 
 power, has put on a powerful shield for his protection 
 against the evils and degradation of ignorance and 
 vice. 
 
 Every American working-man should deeply 
 consider the benefit he enjoys in the possession of 
 civil liberty, in that it secures to him the right to 
 exercise his industryin the way he regards most bene- 
 ficial to himself. If in this he fails to make the best 
 use of his powers, he should not complain of those 
 who do. It he possess ordinary powers, or such as 
 place him above the plane of charity, he must consider 
 the world owes him nothing but justice and fair dealing. 
 It is his province to provide forhimself by the laudable 
 and vigilant exercise of his own powers. The motto, 
 " that the world owes him a living," is without founda- 
 tion, and strikes at the basis of individuality. 
 
 It is sometimes said property is very unequally 
 distributed. This is largely, if not essentially, an 
 error, when applied to young men, who rarely have 
 
1 66 THE QUESTION OF 
 
 much property in the outset of life. If applied to 
 those of advanced age, it merely expresses the fact — 
 that all men do not equally avail of the facilities for 
 thrift, that have arisen from the industry and prudence 
 of those who have been successful. One man carefully 
 husbands his resources, while another spends more 
 than is needful in the indulgence of present desire. 
 
 As to young men it may be said there are those 
 who obtain property from the savings of their parents, 
 and thus have a property to commence their business 
 life. While this is true to some extent, it is doubtful 
 if such inheritance gives them any advantage over the 
 young man who, having no expectations of this kind, 
 manfully prepares for his business life, and depending 
 on his personal energy and skill, pursues his vocation 
 with greater vigour. It is often found that the expec- 
 tation of inheritance impairs close attention to business, 
 and often leaves the race to him who had only his 
 better cultivated individual power. It is difficult for 
 a young man who has never known much of want 
 to realize the necessity of the energy and prudence 
 required to conduct labour or business with thrift. 
 It therefore appears the best thing a parent can do for 
 his son, is to carefully instruct him in a business 
 education, so as to well fit him for the calling he is 
 intended to follow. There is no more pleasant thing 
 
LABOUR AND CAPITAL. iQy 
 
 for a parent than to see his son go forward in his 
 occupation and gradually rise in character as a 
 capable, intelligent and upright citizen. This he may 
 reasonably hope for if his education in business and 
 purity of manners has been correct and well impressed, 
 whether he have property to begin with or not. 
 
 There have been instances of men rising in disre- 
 gard of their surroundings to a rank of prominence 
 in business life. But these are exceptional cases ; the 
 great mass of men will move on in the path they have 
 chosen according to their education ; and the proba- 
 bility of correcting cardinal errors of youth in time 
 to profit, is very small, and hence the importance of 
 correct early training. This training must depend 
 essentially on the parent. The young man goes into 
 his business life according to his training. As a 
 matter of course this will depend on the capacity of 
 the parent for the work. It will require a good degree 
 of self-control and perseverance. In the nature of the 
 boy there will be much to correct in order to mould 
 him into conformity with the exigencies of a business 
 life. The first important point to be considered is, 
 the son does not know as much as the father, and 
 therefore the father should put himself in the position 
 of an instructor, and should consider, that no one 
 knows, in a practical degree, by intuition, and if the 
 
l68 THE QUESTION OF 
 
 son does not know, it is because he has not seen 
 or heard and is in need of information. A wise 
 parent will always avail of any circumstances, even 
 in the common routine of every-day affairs, to bring 
 knowledge to the opening mind of his son, so as to 
 fortify him against error, and illustrate truth to his 
 mind. 
 
 Ordinary elementary education is not here under 
 consideration ; but the education of business life, the 
 formation of the mind to the exigencies of business 
 affairs. No great experience is required to know there 
 are many contingencies that hang around and render 
 uncertain the result of enterprise ; all demanding pru- 
 dence to guard against disappointment. Often a very 
 promising enterprise ends in severe loss. All such 
 results afford experience, and the young man should 
 be guarded as much as possible against such losses by 
 the warning of a father's experience. The father has 
 more or less of experience from his own transactions, 
 and his observation on those of other men. To be 
 useful to his son he should communicate to him his 
 own knowledge in all matters that come under his 
 observation. Boys that have had proper training will 
 ordinarily be very attentive to the advice and instruc- 
 tion of a parent who has instilled confidence in his 
 efforts to impart useful instruction. I know it is said 
 
LABOUR AND CAPITAL. igg 
 
 boys are vain and self-willed, thinking they are wiser 
 than their seniors ; but I have seldom known a boy 
 that did not listen with respect to the instruction of 
 an intelligent and discreet parent. The boy has pas- 
 sions and appetites that often urge him in opposition 
 to wholesome advice, and when these tendencies are 
 opposed by severe terms, the effect is often unfavour- 
 able ; but if they are met with a wise moderation, and 
 a manner that indicates not only the wisdom of 
 experience but a serious paternal interest in the boy's 
 prosperity, he will be most likely to yield to wise 
 counsel before he is aware of it. 
 
 To forewarn a son against errors in business pur- 
 suits, and impress on his mind the necessity of cau- 
 tion and propriety of manners, and in all matters of 
 doubt to advise him to consult with men of experience, 
 in whose integrity he may confide, is an important 
 parental duty. It is favourable that a large portion of 
 the affairs of business life are easily learned ; they are 
 only complex as a man advances to those operations of 
 high skill, trust and confidence, that more open the 
 young man to the influence of deception and errors of 
 judgment. Here he may need the counsel of a dis- 
 interested friend, and no one can be found so reli- 
 able as a parent. He is naturally concerned, that 
 his son should not only succeed in his business pur- 
 
170 THE QUESTION OF 
 
 suits, but that he establish the character of an 
 intelligent and upright citizen. Among the things a 
 parent should call to the attention of his son are — 
 steady industry, and a care to avoid any expense that 
 will not eIIow thrift. Thrift or progress elevates the 
 dignity and sustains a man in labour, and renders his 
 work pleasant and interesting, which would otherwise 
 be irksome. 
 
 I have known men who by their skill and indus- 
 try had acquired large property, but failed to so ed- 
 ucate their sons as to enable them to preserve and 
 improve it. This is far less favourable than a small 
 property, with a sound business education. Such 
 errors tend to scatter the accumulations of a success- 
 ful business life, and show the folly of neglecting the 
 business and moral education of children. 
 
 After a parent has done all that he may be able 
 to do in the instruction c f his son in the business 
 affairs of life, he should not forget the indispensable 
 culture that shall teach him " to fear God and keep 
 his Commandments." This is the great duty of man, 
 and is withal the basis of all prosperity and hap- 
 piness. 
 
LABOUR AND CAPITAL. 171 
 
 CONCLUSION. 
 
 I take exception to the scientific and philantliropic 
 writers on industrial economy, wlio assume tliat the 
 labouring men are in an impotent and dependent condi- 
 tion. There is doubtless more ground for such opinion 
 in countries where population has passed to the line of 
 diminishing supplies, and where by law or usage prop- 
 erty has special favours. But I am discussing the ques- 
 tion from the American stand-point, and especially for 
 the free States of the North American union. I suppose 
 the Dominion of Canada is in much the same con- 
 dition. At present it can hardly be said the late 
 slave States are properly in a fair condition as to labour; 
 but when those States shall come to manifest a just 
 sense of the rights of men, the dignity of labour will 
 prevail, and they will have an untrammelled industry, 
 and advance to the enjoyment of civil liberty. 
 
 In our own country, we have not reached the line 
 of diminishing supplies, and if we are wise, we shall 
 never reach it. 
 
 I do not specially criticise the writers of other coun- 
 tries, where circumstances are different from our own. 
 But I do not think there is any excuse for American 
 writers to hold up our working-men as an oppressed 
 and degraded class calling for sympathy. Those 
 
172 THE QUESTION OF 
 
 writers do admit there may be moral improvement, but 
 this idea they mostly hold as a remote, if not an 
 improbable hope. They admit that here and there one 
 rises from the ranks of working-men to positions of 
 prominence. 
 
 I know very well there is a large class of working- 
 men who are in great measure dependent on their 
 employers, and never rise to a comfortable well-being 
 or to a reputable standing in society. No doubt some 
 of these are the subjects of untoward circumstances, 
 and should be treated with a kindly regard ; but for the 
 most part we may trace their condition to their ignor- 
 ance and improvidence. Even this class must be treated 
 with kindness. On the other hand, there is, not 
 " here and there one," but a large proportion of our 
 working-men; who began life on wages and have 
 reached a respectable competence, and some large 
 wealth ; certainly these cannot be classed as a depend- 
 ent body, calling for sympathy. 
 
 It has been held that a man working for hire can- 
 not rise by any cultivation of his powers from a life 
 of dependence. I have known many exceptions to 
 this statement. Many of the inventions and improve- 
 ments in the useful arts have been wrought out, more 
 or less, by men working for hire ; who pondered their 
 thoughts in the shops and studied them in their eve- 
 
LABOUR AND CAPITAL. 173 
 
 nings and other intervals of work. I have known 
 men who worked for wages — were excellent workme-n, 
 who by occupying their leisure in useful reading and 
 the society of intelligent men, were well informed on 
 general subjects, and able to maintain discussion with 
 intelligent men. 
 
 I utterly disapprove and repudiate the Utopian 
 methods of elevating the working-men, by what I re- 
 gard as misguided sympathy. The working-men do 
 elevate themselves ; and the class among them that 
 call for sympathy may also elevate themselves. Is 
 it not then far better to point out to the working-man 
 the way he can raise himself than to unnerve him by 
 holding up his condition as one of impotent depend- 
 ence. In this free country he has the power, and 
 if he consider his own good, he will use it, rather than 
 trust his well-being to sentimental impracticabilities. 
 
 The Question of Marriage. 
 
 Writers on industrial economy attribute much of 
 the hardships of the labouring class to early marriages. 
 No doubt there is some foundation for this ; but it is 
 a subject I do not propose to discuss. There are so 
 many circumstances influencing the question of mar- 
 riage, which each one must consider for himself, that 
 
174 THE QUESTION OF 
 
 I do not see in what way I may give advice. This 
 much, however, may be said : in marriage there is ne- 
 cessity of responsibihty for the sustenance of wife and 
 children, and the education of the latter. Any provi- 
 dent man will consider if his resources will be suf- 
 ficient to meet the responsibility involved in these 
 expenses. His judgment in this respect will very 
 probably decide, whether he shall be a thrifty or an 
 unthrifty man. 
 
 Some hold this question of early marriage under 
 the aspect of religion. It is not unusual to hear the 
 sentiment, " the Lord will provide." I honor the doc- 
 trine of trust in the providence of God ; but I hold it 
 in subordination to the teachings of the Christian Scrip- 
 tures. Here I find the precept, " Thou shall not tempt 
 the Lord thy God." The husbandman must trust in 
 God for the rain and sunshine that are necessary to 
 make his fruit ; but if he fail to cultivate his ground in 
 seed time, " he shall beg in harvest.'' " He that wil l 
 , n ot work , neith er shall he eat." 
 
 From the teaching of the Christian Scriptures it 
 is evident to my mind, that God has given men 
 power of labour and prudence, and that he will hold 
 them to their responsibility for their proper exercise 
 in industry and frugality ; and in their exercise men 
 may expect his favour, and realize his promise, that 
 
LABOUR AND CAPITAL. 175 
 
 " he that gathereth by labour shall increase." It has 
 often appeared to me this sentiment — " the Lord will 
 provide " — is advanced as an apology for doing some- 
 thing that in all rational experience it was not expedi- 
 ent to do, or at least not discreet under the existing 
 condition. Those that yield to such indiscretion may 
 expect disappointment, if they be not thrown into the 
 dependent class. In this I must not be understood 
 as hostile to marriage life ; for I regard it as eminently 
 conducive to human happiness, and also as a funda- 
 mental principle in civilization. It is the establish- 
 ment of mutual confidence, fellowship and interest, 
 most congenial to the happiness of men. It is the 
 cardinal stimulus to effort for advancing the industry 
 and economy that promote the material, mental and 
 moral well-being of society ; and is naturally, looked 
 to, as a proper condition in the life of men. But in 
 this, as in every enterprise of men, prudence de- 
 mands that a man consider, if he have the means 
 to meet its proper responsibilities. If he has not the 
 means, he will probably fail to secure success. All T 
 advise therefore is, that its consummation be deferred 
 until a: reasonable prospect is secured for the means 
 of providing for its necessary responsibilities, always 
 leaving something for thrift. I say leaving some- 
 thing for thrift ; for the man who can see no pro- 
 
176 THE QUESTION OF 
 
 gress towards improving his affairs, will lose courage 
 and make life a drudgery. 
 
 Desire is importunate, and urges its claims with 
 persistent energy ; presenting in strong terms the ne- 
 cessity and propriety of its claims ; while on the other 
 hand, the future good that trembles in the balance is 
 modest, and scarcely dares to confront the energy of 
 its opponent : depending on the influence of its wis- 
 dom and prudence, it will only be heeded by the wise 
 and discreet that wait on her counsel. It is an affair 
 that commends itself to the careful consideration of 
 every man who has any realizing appreciation of the 
 individual responsibilities that he must assume in 
 providing for himself and family, and will most prob- 
 ably shape the course of his life. 
 
 That there are many who have difficulty in provid- 
 ing sustenance, and come to depend on public and 
 private charity, there can be no doubt. But to charge 
 their condition to the hard terms imposed on them by 
 capitalists, is a great error. The capitalist has done 
 the same by them as he has done by those who have 
 risen to the condition of competent independence. 
 The capitalist has furnished these dependent men 
 with the instruments of labour, without which they 
 could have had no civilized work to do ; and must have 
 been driven to hunting and fishing for the means of 
 
LABOUR AND CAPITAL. 177 
 
 subsistence. The charge against the capitalist is one 
 that strikes at the foundation of our civilization. But, 
 it may be inquired, is there no remedy .'' Must our 
 civilization be maintained at so great sacrifice as we 
 see in the comparatively large number of dependent 
 men .'' Is this a necessary result 1 To answer these 
 questions, we have only to look over our society and 
 see how large the proportion of men who began life 
 with little or no resources but their skill and labour, 
 and have reached competent conditions. How did 
 they reach this condition .-' It was not by chance, but 
 by industriously and wisely using the instruments put 
 into their hands from the savings accumulated by 
 their predecessors — now called capitalists. If no such 
 instrument had been provided, they must have depend- 
 ed on the scanty resources of nature for the means of 
 subsistence. With the same instruments the prudent 
 man proceeded, until by industry and frugality he pro- 
 vided for his own instruments, and steadily and surely 
 rose to the position of competent independence, if not 
 to that of a large capitalist. The dependent class had 
 the same opportunity — had the benefit of the same in- 
 struments, but had not the manly purpose to improve 
 their advantages. They thought the world owed 
 them a living — a great error of men, who forget the 
 world owes them nothing ; and that every man, who 
 
178 THE QUESTION OF 
 
 is not a pauper, is dependent on his own industry and 
 vigilance for the subsistence he needs or desires. 
 
 It is a mistake to suppose that in a free country, 
 where labour is untrammelled by unjust lav/s or usages, 
 there is any hardship in labour as to the two classes 
 under consideration. The two classes are formed by 
 their own unrestricted choice, and all that the govern- 
 ment or the philanthropist can do in the premises, is 
 to provide the means of education, so that all may im- 
 prove on their own natural powers, and be rendered 
 able to make a wise use of the instruments that have 
 been provided, and which make their labour more 
 effective for their own and the public good. An in- 
 dolent or improvident man will surely come to want. 
 
 If we discard civilization, we must fall into bar- 
 barism. This latter result will inevitably come if the 
 right of holding and enjoying the savings of frugal 
 industry be denied. 
 
 The class of dependent men do not wholly come 
 from those who are entering the responsibilities of 
 life, with only their skill and labour to provide for 
 their well-being. It embraces many who had, in 
 addition to their own industry, more or less of means 
 received from parents and other friends to aid them, 
 but failed to improve their advantages, and fell into 
 poverty. It is not necessary here to discuss the par- 
 
LABOUR AXD CAPITAL. lyg 
 
 ticulars of their failure, as it arose from the same 
 cause that threw the other members into this class ; 
 namely, the want of industry and prudence to improve 
 their advantages. 
 
 As I have stated, I do not recommend that the 
 class of dependent men be excluded from sympathy, 
 however they may have arrived at this condition. 
 They should have provision from public and private 
 charity, sufficient for their sustenance ; but this 
 should be provided wisely, so as not to make it a 
 bounty on indolence and improvidence. The " poor 
 laws of England," the most elaborate and extensive 
 of bounty or provision for the poor, are held by intel- 
 ligent writers who have carefully studied them, as 
 having been an agency that has greatly increased the 
 number of dependent poor. 
 
 Civilization cannot properly progress, if it do not 
 call out and stimulate individual character, — call out 
 the energy and moral nerve that gives vigour to all 
 the powers of men, eschews dependence on others, 
 and maintains a manly exercise of personal faculties. 
 So far as we weaken these sentiments, we add to 
 the class of dependent men, and impair the results 
 of industry. There is no other doctrine for a free 
 country. 
 
 The writers who complain of our organization of 
 
l8o THE QUESTION OF 
 
 industry, and insist on some new adjustment that 
 shall give labour a larger share in production, do not 
 seem to show any practical method by which their 
 views may be realized. The law of supply and de- 
 mand they reject as not equitable, and appear to 
 content themselves with some impracticable notions 
 to heal the difficulties they imagine to exist m the 
 relations of labour and capital. They must certainly 
 forget that the law of demand and supply is the out-, 
 growth of civilization, founded on the right and pro- 
 priety of individual judgment, as to whether any 
 exchange of services or goods is desirable, and con- 
 ducive to the personal interest of the parties. The 
 savage will exercise force to compel his fellow to 
 part with his goods, if he happen to have such as 
 he wants. He has respect to no other law, and the 
 weak must yield to the strong. The great beauty of 
 civilization is, to establish Institutional law, by which 
 the weak are protected in their rights, and to secure 
 every one in the personal right of making contract 
 according as he regards his own interest. To abandon 
 this principle, would be to throw out of sight the 
 great fact of civilization, namely, the right of each 
 man to the full enjoyment of his own industry and 
 savings, or the right of private property, which cannot 
 be abandoned without adopting the only alternative, 
 
LABOUR AND CAPITAL. igj 
 
 which is barbarism. If we adopt this alternative, 
 then, the instruments of civilized industry would soon 
 be consumed, and men must come to depend on the 
 chase, and natural fruits for means to sustain a scanty 
 and precarious subsistence, and this for only a com- 
 paratively meagre population. It cannot be success- 
 fully controverted, that the right of private property 
 is the only stimulus that can sustain efficient in- 
 dustry. If I am right, then, the efforts to show there 
 is some peculiar hardship in labour, — that it has an 
 unequal contest with capital, can have no other effect 
 than to demoralize the labourer, and make him look 
 on his condition as one of peculiar privation, and thus 
 impair his moral power, and with it his prospect of 
 improving his condition. No such doctrine can pre- 
 vail in a free country, with men who have the pur- 
 pose to be men. 
 
 Who are the Working Class. 
 
 In this country, probably nineteen out of every 
 twenty come to adult age with little or no means, 
 except the skill and labour of their vocation. They 
 depend on their manual and mental industry to provide 
 for their sustenance and happiness. It was for the 
 most part the same with their fathers before them. 
 This commencement of individual responsibility calls 
 
1 82 THE QUESTION OF 
 
 for the most careful consideration of the plan of life 
 for a young man. He is now to decide whether he 
 will put forth his energies in a manly way, and improve 
 the advantages of the civilization by which he is 
 surrounded, and rise steadily to the condition of an 
 independent man, or whether he will be content to 
 forego those advantages, and heedlessly slide into the 
 class of dependent men. The choice should now be 
 made, as at any future time the decision is most likely 
 to be embarrassed not only by loss of time, but by 
 habits that will offer serious obstacles to success. 
 
 If the young man sets out with a look of appre- 
 hension that he may not be able to overcome the 
 difficulties he apprehends, and lacks the nerve that is 
 indispensable to success — or if he commences on a 
 plan of life that consumes his earnings as fast as 
 earned, he will in all probability reach his position in 
 the class of dependent men. If he have the weakness 
 to yield to present desire, and not the nerve to control 
 this when in the full strength of his powers, there is 
 no probability he will do so when age has impaired 
 those powers. On the other hand, if he resolutely 
 eschews all indolence and dissipation, expends no 
 means that are not necessary for his reasonable wants, 
 enters no responsibilities until he has the means to 
 meet them without imparing reasonable thrift, he will 
 
LABOUR AND CAPITAL. 183 
 
 in all rational probability raise his condition to at least 
 a competent independence. I say from my own 
 experience and observation, to all American young 
 men, this is the choice before you, and your success 
 depends on yourselves. 
 
 To some, the course recommended will appear a 
 slow process. Its movement will certainly be slow in 
 the beginning. Let not this discourage the young 
 man. The early tardiness of result will be alleviated 
 as the benefits are unfolded. A cheering and encourag- 
 ing aspect will accompany the net proceeds of the 
 first year, and though this may not be large, it will be 
 a precursor of what a few years of patient perseverance 
 will do. This is equally important in professional as 
 in manual labour. The great fact must not be lost 
 sight of, namely, this is the way in which, for the 
 most part, capitalists have been made. It is no 
 chimera ; but the fact of our history as a country. It 
 has developed the blessings of free and untrammelled 
 labour, open alike to all, with no special favours to 
 any. 
 
 Why then, in this free country, should we hear 
 complaints of capitalists, who have been the strength 
 of our civilization .-' By the savings of their industry 
 they have provided the instrumentalities that give 
 efficiency to labour, and more abundantly provide the 
 
184 THE QUESTION OF 
 
 elements of well-being to individuals and to society. 
 Is it not far better to direct our attention to those 
 educationa liraprovements by which we may hope to 
 raise the dependent to an independent class, and so 
 enlarge the industrial results by the double process of 
 increasing production, and at same time diminishing 
 the necessity for charity in sustaining the dependent 
 class ? 
 
 In speaking of capitahsts, I do not confine myself 
 simply to the larger class, but include also those who 
 are able to provide instruments for their own labour, 
 as well as those who are able to provide instruments 
 for the labour of others. It should not be lost sight 
 of, that these instruments only exist to any important 
 extent in a civilized country ; and are accumulated by 
 persistent labour and prudence. They are the power 
 that makes labour eminently effective, giving the 
 highest results in the production of fabrics indis- 
 pensable for a civilized community. They are not 
 held, and never can be, as owners, in the hands of the 
 dependent class. They must be worked for; they are 
 only -accumulated by the thrifty class of working-men, 
 who have the sagacity to see their value and the 
 manly nerve to so prosecute their labour as to command 
 the instruments for their own benefit. 
 
 I must not be understood as offering any apology 
 
LABOUR AND CAPITAL. igj 
 
 for whatever may be wrong or oppressive on the part 
 of capitalists, wliether they obtain capital by their own 
 or the labour of others. As a class, I do not think 
 they are more inclined to disregard the principles 
 of right than other men. In our free country the 
 laws will essentially protect the labouring man, and 
 any oppression will arouse the indignation of the pub- 
 lic in favour of justice. I have been intimate with 
 the circumstances of great numbers of working-men, 
 and have rarely known an instance of a good work- 
 man suffering injustice in any large industry. It is a 
 general fact, the competent and faithful workman is 
 cherished as a valuable appendage to any industrial 
 enterprise. 
 
 Labour a Necessity. 
 
 Labour is a commodity the civilized world can- 
 not dispense with. It is a resource, or a capital in the 
 hands of the labourer, which is a power to elevate 
 him in his moral and material well-being. He has the 
 power to make it useful, same as any other capital, 
 and has only to make a wise improvement of its re- 
 sources, according to the market demand, and pru- 
 dently husband its earnings. It enjoys the benefit of 
 the large instrumentalities that civilization has put 
 into its hands. In this free country it has the un- 
 
1 86 THE QUESTION OF 
 
 trammelled right to exercise its full powers, and secure 
 to itself the full blessings of its application. 
 
 The man who commences life with only skill and 
 labour as his stock in trade, should look up to the 
 capitalist who furnished the instruments of his work, 
 and anticipate the day when he will furnish his own 
 instruments, and thus secure the wages of his labour 
 and the profits of his instruments. This is far more 
 noble and inspiring than to listen to the strains of 
 sentimentalists who take credit to themselves in draw- 
 ing for the working-man a doleful, if not a hopeless 
 future, presenting capitalists as the enemies of the la- 
 bouring man. Be assured this is not true. Consider, 
 for a moment, what could the labourer do without the 
 instruments provided for his work .'' And where could 
 the instruments be had if there were no capitalists 1 
 
 If there were no instruments, then production 
 would be impracticable, or require far greater labour 
 in the few things that could be produced, and society, 
 including working-men, would have so much less of 
 the means of subsistence. No, it is not the capital- 
 ist that injures labour ; he enlarges the field of its 
 operations, and increases its productiveness, as can 
 be testified by great numbers who have by these 
 means raised themselves to the position of competent 
 independence. Let any labouring man look candidly 
 
LABOUR AND CAPITAL. 
 
 187 
 
 and intelligently into this subject, and notice what his 
 condition would be, if there were none of the instru- 
 ments of civilization that he could avail of. As a mat • 
 ter of course he must descend into the condition of 
 savage life, as that is the only alternative left for him 
 to take. That would be worse than the dependent 
 condition, as surrounded by civilization. 
 
 I know there are men who, in their supercilious- 
 ness, affect to look down on the labouring man as of a 
 lower order in the scale of being than themselves, and 
 to be treated as inferiors. Though all their supplies 
 of necessary goods as well as their luxuries come to 
 them as the product of labour, they still regard the 
 labourer as occupying a low position. This class do 
 not consider that labour is the lot of mankind, whether 
 in barbarism or civilization, and only under the latter 
 can there be those instrumentalities that make labour 
 efficient — give progress in the affairs of men — dignify 
 industry, and promote the general happiness of men. 
 But that class of capitalists are the exception — the 
 general sentiment in this free country and every 
 country where freedom prevails is, to honor labour. It 
 is only where slavery has debased public sentiment, or 
 when laws or usages have created artificial distinction 
 and privilege, that labour is not respected. In a free 
 country labour will be honored, and no labour that is 
 
1 88 THE QUESTION OF 
 
 performed in a manly and faithful manner, will be dis- 
 respected by any sensible and honest people. 
 
 I have no sympathy with those who seem to take 
 credit to themselves in complaints of our organization 
 of labour, and who intimate, if they do not assume, 
 there is some oppressive wrong on the part of capital- 
 ists. If this idea is traced to its source, it will be 
 found to be at issue with the right of private property. 
 And what would there be in this right, if it did not 
 secure its use to the owner. If others are to deter- 
 mine it for him, then it must inevitably be wasted ; 
 the motive for a prudent economy would be lost, and 
 with it our civilization must be abandoned. As a 
 matter of course, the instruments of industry would 
 pass away, and society would drift into barbarism. If 
 the complaint above referred to be sound, then civili- 
 zation is an evil and our general well-being is not pro- 
 moted, but injured by its influence, and barbarism is 
 to be preferred. That the teaching above referred to 
 is not more mischievous, arises from the fact that it is 
 below the plane of our civilization, and is generally re- 
 garded as impracticable. With all the folly that is 
 manifest, there is still a prevailing number of sensible 
 people who know that the anticipated possession of a 
 thing is the stimulus to individual endeavour ; and 
 endeavour is the prelude to elevation in material and 
 
LABOUR AND CAPITAL. jgg 
 
 moral well-being. All efforts that impair such endea- 
 vour, take from the working-man the very element 
 on which his hopes must be founded, and is a demor- 
 alization, and by no means a process of his elevation. 
 
 Let no American working-man, who possesses 
 health and ordinary powers, feel that his lot is a hard 
 one. It is in his power to provide for his own well- 
 being. Put on a manly energy and do not hold your- 
 self indigent, nor consider the capitalist as beyond 
 your reach. The same power of industrious saving 
 that made him, will in due time make you a capitalist. 
 The instruments of your industry, that now belong to 
 the capitalist, you may make your own. Be careful to 
 cultivate a love of useful work, whether in regard to 
 the work itself, or in its results. So far as you succeed 
 in establishing this doctrine, you will be less tempted 
 to look after the occupation of your time in frolic 
 and dissipation, which is a sacrifice of time and means 
 and also impairs health and character, rendering your 
 march to future well-being difficult, if it does noi de- 
 stroy your hopes. 
 
 Be careful not to be led astray by the popularity 
 of any proposition from your fellow-workmen. Con- 
 sider carefully if the thing is wise, and will do you 
 good. Many men go wrong and have no better excuse 
 than that others did the same, or that others advised 
 
igo THE QUESTION OF 
 
 them. It sometimes requires moral nerve to resist the 
 plausible plea of associates, who, in their ill-directed 
 ardor, are very likely to make a demand on your pride 
 or good feeling m order to enlist you in what may 
 prove their folly, and by no means a measure for your 
 good. The man who carefully studies his own interest, 
 and makes it a rule to weigh well any measure that 
 may be proposed for his action, is not likely to be led 
 astray by ridicule, or false notions of honor. In such 
 matters it is always well to consider the party that 
 offers counsel. If it be one that maintains a sound, 
 discreet character, it is well to listen; but if it be one 
 who loves amusement and idle chat, rather then use- 
 ful work, it will not profit to accept the advice he may 
 offer. Keep your own counsel. 
 
 General Suggestions. 
 
 I would like to warn every young man against the 
 error and delusion that may tempt him from the path 
 of honest endeavour in providing for his future well- 
 being. But this is impossible in regard to the numer- 
 ous details that demand his attention, and will more 
 or less mould his career. Therefore I can only discuss 
 those cardinal principles that may serve as a basis. 
 
 With all the preparation he may have, the young 
 man will have much to learn as he moves forward in 
 
LABOUR AND CAPITAL. jqi 
 
 his personal experience. Many tilings will occur that 
 he had not thought of, and expose him to errors 
 and disappointments. Professed friends and even 
 real friends, will sometimes advise him unwisely, even 
 when they intend his good. There are many intric- 
 acies and troubles in business affairs that can only be 
 well understood from the teachings of personal expe- 
 rience. These admonish caution. The thing may 
 present a plausible aspect, yet the end may not be 
 clear. In any path proposed that you have not fully 
 explored and made satisfactory to your own judgment, 
 proceed with caution and feel your way. In the mean 
 time, " make haste slowly." 
 
 There are two things for a young man to keep 
 steadily in view in order to secure success; namely, to 
 fit himself with a thorough knowledge of the art he 
 has chosen for a vocation, and the tact necessary to 
 obtain occupation in the same. In regard to the first, 
 no opportunity should be lost that may improve his 
 skill. This will depend very much upon the thorough- 
 ness he has acquired in his apprenticeship. If he has 
 studied well its principles and acquired skilful manip- 
 ulation in his art, it will not be easy to deceive him by 
 any plausible theory that may be proposed, and he will 
 be able to scan and criticise any proposition and judge 
 if there be anything in it by which he may improve 
 
1 52 THE QUESTION OF 
 
 his art or his tools. He should always be looking and 
 studying for improvement, and to do this wisely or 
 even safely, he must understand well the principles 
 involved in his vocation. Be cautious of the advice of 
 your fellow-workmen ; not a suspicious caution, but a 
 prudent caution. Though it may be painful to think 
 so, it is necessary to bear in mind what experience 
 teaches, that some of these will probably go into the 
 dependent class, where I trust it is not your purpose 
 to follow them. Take no advice that may lead you to 
 waste material, tools or time ; or to impress you with 
 the severity of any irksome feature in the work of your 
 vocation ; but bear in mind there is no vocation that 
 has not something unpleasant in its occupation, and 
 that your decision and energy in overcoming such im- 
 pediments to your progress is only a necessary discip- 
 line to strengthen your energy and purpose and there- 
 oy fit you to overcome any obstacle that may oppose 
 your progress. You may also be tempted to seek 
 vain and unprofitable amusements that tend to dissi- 
 pation and waste — do not heed them, but learn to love 
 the path to the shop, better than the path from it. Be 
 not over-active on the ringing of the bell for vacation. 
 In regard to the second of the above propositions — 
 " the opportunity for occupation," I remark : As you 
 enter on the field of individual responsibility, it is very 
 
LABOUR AND CAPITAL. jg? 
 
 possible you may find a scanty opening for employment 
 in your particular vocation. Some peculiarity may 
 restrict the demand, and you do not find ready call for 
 your services. As yet you have had but little oppor- 
 tunity to strengthen your character as a workman. 
 Under such circumstances keep a vigilant eye on all 
 the field in range of your vision. If anywhere an 
 opening appears, though it may be inferior to your ex- 
 pectations, do not fail to embrace it. Once fairly in 
 the harness, you will have opportunity to show what 
 you can do, and now, by your industry and fidelity, so 
 thoroughly perform your work that you will gain char- 
 acter, and though you may receive less wages than 
 your work is worth, you will gain standing in your vo- 
 cation, and come to be in demand. No one can see far 
 in the future ; but it is obvious a man in work, though 
 it may not be what he is entitled to, stands a far bet- 
 ter chance of obtaining the position to which his merits 
 entitle him than one who stands with folded hands 
 outside. A man in the harness is much more likely 
 to attract attention, and gain the employment he seeks 
 and desires, than one who is merely in waiting. On this 
 ground take No. 2 or 3, if you cannot obtain No. i. In 
 all cases avoid, if possible, an idle waiting, even though 
 some unionist may sneer, call you a black sheep or by 
 other vituperative epithet, with a view to frighten you 
 
 13 
 
1^4 THE QUESTION OF 
 
 to decline what it may be your interest to do. In all 
 such attempts on your independence, remember that it 
 usually happens the sneering associate is looking for 
 his own and not your interest. Be your own judge, 
 the law of demand and supply is the only safe standard 
 as established by the market, and it is far better to de- 
 pend on your own skill and fidelity than on any mo- 
 nopoly that can be formed by Trades Unions. 
 
 In the course of invention there is danger that your 
 special vocation may be impaired. This is quite like- 
 ly to happen in a mill where several classes of me- 
 chanics are employed. To fortify yourself against 
 such contingencies, lose no opportunity to notice the 
 manipulation in different departments of work. If 
 you have a good knowledge of mechanical principles, 
 and are well skilled in the use of tools, you will readily 
 appreciate the several kinds of work, and be able with 
 very little practice to do such other work as you may 
 find it your interest to do. It is not necessary for 
 this that you neglect your own work, as there will often 
 be opportunity, especially in the same mill, to notice 
 the operations in other branches than your own. It 
 is very possible this ma}' fit you for continuous work, 
 when your special branch may be superseded by new 
 inventions. 
 
LABOUR AND CAPITAL. 
 
 Necessity of Experience. 
 
 I9S 
 
 No measure of educational outfit can dispense with 
 personal experience. The latter is a necessary com- 
 plement of the former. But experience is only ob- 
 tained by practice and observation in the course of 
 affairs, and this the young working-man has had only 
 limited opportunity to acquire. Practical experience 
 can only be acquired by the personal intercourse of the 
 individual ; and much care will be required to so sift 
 out the chaff from the wheat as to make it valuable. 
 If the process be attended with an undue degree of 
 vanity, or high confidence of the young man in his 
 own powers, tending to eschew the experience of oth- 
 ers, and hardly profiting by his own, he will probably 
 pass through life in a process of continual blunders, 
 never profiting by even his own experience. 
 
 It requires wisdom, and the exercise of a careful, 
 discreet reflection, to profit from even one's own ex- 
 perience. It is far easier to make a mistake than to 
 thoroughly investigate a subject. A man may be 
 largely educated, and this to small purpose, if at the 
 same time he has not had intermingled with his edu- 
 cation a sound discipline. I mean by discipline, a 
 habit of carefully scrutinizing any proposition, accord- 
 ing to its importance, with the ability to lay aside pre- 
 
196 THE QUESTION OF 
 
 conceived views that may have taken possession of the 
 mind, and are very apt to be a barrier to truth. A 
 man should not yield his judgment too readily ; 
 he should see there was adequate reason, and after 
 giving a proposition a full hearing, that convinces 
 him of its truth, he will do well to ponder awhile be- 
 fore he makes it the basis of his business action. This 
 is the converse of a careless, easy adoption of a meas- 
 ure, that lacks the moral nerve to make a thorough 
 examination of its merits. No man can expect suc- 
 cess in a loose harness ; it must be buckled up, so as 
 to take direct hold of the work. This should be care- 
 fully considered in all education, as a loose, careless 
 habit, as well as a loose harness, will destroy all hope 
 until it be corrected. It is not all gold that glitters ; 
 but it is an established fact, that no work can be well 
 prosecuted, unless the appliances for its manipulation 
 are well appointed and in fitting order. 
 
 Elements of Moral Culture. 
 
 I do not think I can properly leave this subject 
 without considering the tendency of the human mind to 
 err in regard to moral principle, and improperly yield to 
 the urgency of desire, of passion and appetite. I have 
 endeavoured to set forth the benefits of self-control, and 
 to urge its importance in our civilization — its necessi- 
 
LABOUR AND CAPITAL. 1^7 
 
 ty as an indispensable requisite for the advancement 
 of our well-being, whereby we may obtain the bless- 
 ings of a sound cultivation. Now I have one more 
 suggestion, in the way of precaution, to fortify the sen- 
 timent of a sound morality, which is the basis of all 
 human improvement. It is the question put by the 
 Psalmist, (cxix. 9) '' Wherewithal shall a young man 
 cleanse his way ? " To this the Psalmist makes answer 
 as follows : " By taking heed thereto according to 
 thy word." It will be understood the word referred 
 to, is the Christian Scriptures. It is nut my purpose 
 to make extended remarks on this suggestion ; only 
 to allude to some general principles that bear on the 
 business prosperity and happiness of men. 
 
 I think it will not be controverted, these Scriptures 
 are a vast store of searching wisdom, bearing on all the 
 concerns of life. Nowhere can a man find so close 
 and searching a mirror of himself, or of the motives 
 that govern men. In language of unsurpassed 
 terseness and eloquence, in varied and numerous 
 forms, its teaching is unfolded to the understanding 
 so as to show in clear lines, " the light that lighteth 
 every man." They are so plain that no honest man 
 need fail to learn the duty he owes to his Maker, or to 
 his fellow-man. Though they contain things we may 
 not understand, we shall find by careful and honest 
 
fog THE QUESTION OF 
 
 Study that such difficulties will diminish, and there 
 will be found no want of ability for reaching the 
 knowledge above stated. 
 
 It is important to keep steadily in view the 
 leading characteristics of these Scriptures, which are 
 to establish and maintain "justice and judgment," 
 righteousness and peace among men. However their 
 meaning may be perverted to give interpretation to 
 favour motives of ambition, it is their great purpose 
 to establish the doctrine of personal responsibility ; 
 and consequently it is the province and the duty of 
 every one to study their teachings for himself. To 
 follow the blind leader is held to be no excuse. It 
 may be replied, these Scriptures relate to a future life, 
 and what has that to do with the question of labour 
 and capital } No doubt they relate to a future life, but 
 they by no means disregard the life that now is. It is 
 according to Scripture teaching that a wise discharge 
 of the duties of this life is necessary to prepare us for 
 the life to come. But I do not propose to follow this 
 further than to point out the special benefits they 
 afford in establishing a sound social and business 
 character, leaving to every one as they may think 
 proper to consider their influence on a future life. 
 
 The Scriptures afford the most varied and explicit 
 rules for defining and enforcing industry, prudence 
 
LABOUR AND CAPITAL. jgg 
 
 and frugality in affairs — uprightness in all business 
 intercourse ; purity and forbearance in manners, and 
 the courtesy, kindness and fellow-feeling that make 
 happiness for the individual and for society, and lay 
 the foundation of civil liberty. They give us such a 
 knowledge of ourselves, and so unfold the springs of 
 human action, that we are able to see more clearly the 
 motives that govern others, and so guard us against 
 deception. By a candid and diligent study of the 
 Scriptures we shall see those tendencies in the human 
 mind that pervert their teaching and lead to errors. 
 They are adapted to all conditions of men, in 
 fact they place all men on the same moral level, and 
 lay the foundation of universal freedom for man, under 
 the safeguards of Institutional law. 
 
 I am aware it may be replied, — Some men do not 
 recognize the Divine authority of those Scriptures. I 
 cannot discuss this, but may remark, eminent men, 
 who entertain this doubt, have borne testimony to the 
 high moral excellence of the Scriptures, commending 
 their value in establishing virtue amopg -men. i What- 
 ever doubt may be suggested, it cannot (be successfully 
 controverted,that the highest rank'of civilizatioii, in all 
 historic time, has appeared where the light dfthei Chris- 
 tian Scriptures has shone most clearly, and where their 
 .teaching has been most fully exemplified in the morals 
 
200 "^^^ QUESTION OF 
 
 of men. General education, science and the useful 
 arts — all those charitable institutions that are designed 
 to ameliorate suffering, and provide for those that are 
 unable to provide for themselves, are the outgrowth 
 of the Christian Scriptures, and show in strong light 
 the superiority of Christian over Pagan civilization. 
 
 As to our own country, our Institutional freedom, 
 our right of conscience, and the unrestricted rights of 
 labour and protection under law, rest on our training in 
 principles of civil liberty, as taught in those Scriptures. 
 They are the foundation of our civilization, and this 
 will be perfected, as we advance to the more full realiza- 
 tion and practice of their teachings. They are the 
 guardian of the rights of the working-man, the only 
 lever that can raise him to the moral standard 
 necessary to enable him to make the best improvement 
 of his iaculties, and by these to raise him to the posses- 
 sion of thfe means of independence and happiness, 
 giving dignity to his labour, and self-respect in all 
 his intercourse with his fellow-men. 
 ' No young, iTian should fail to study carefully the 
 Proverbs cCf : Solomon. They show a profound knowl- 
 edge of Dusinfess^.and wisdom in all the affairs of men. 
 Taken i ih connection with the general teaching of 
 Scripture, they are a rich fund of instruction in all the 
 affairs that affect the happiness of mankind. The 
 
LABOUR AND CAPITAL. 2OI 
 
 man who loves civil liberty, and the blessings of Institu- 
 tional law, will find in the careful study of the Scrip- 
 tures the firm foundation of whatsoever is just, whatso- 
 ever is pure, and of every virtue that can adorn man and 
 give eminent value to the high civilization they incul- 
 cate. And these are the fundamental principles that 
 secure to all men the blessings of freedom. In all the 
 affairs of life, in individual, social and political duties, 
 he will realize the value of the advice quoted from the 
 Psalmist — " taking heed thereto according to thy 
 word." 
 
 Some men claim that they are the only authorized 
 interpreters of Scripture, and that it is dangerous 
 for common men to undertake the reading, except 
 imder their guidance. The great apostle expressed 
 approval of men who searched the Scriptures to ascer- 
 tain whether he gave the correct interpretation. No 
 doubt various interpretations are made by different 
 men, and these men of high attainments and ability, 
 who may be regarded as having equal authority. But 
 if the apostle was right, then the layman should 
 examine for himself, and be able to judge which 
 interpretation was the most faithful representation of 
 Scripture truth. There doubtless is some Scripture it 
 may be difficult or even impossible to understand. 
 This may be inferred from the varied conclusions of 
 
202 THE QUESTION OF 
 
 learned Doctors in theology, who may be equally en- 
 titled to respect. But the precept, "Thou shalt not 
 steal," and numerous others of equal simplicity and 
 importance, will be readily understood by all honest 
 minds. 
 
 In the above remarks, I by no means intend any 
 disrespect towards the teachers of religion ; would 
 rather listen with respectful attention to their inter- 
 pretations and teaching. I regard them as of eminent 
 value in inculcating the great moral truths of Scripture. 
 But I regard it as of equal importance, that those who 
 listen be so well instructed in the knowledge of 
 Scripture truth, as to be able to distinguish, whether 
 the teacher is labouring for the shell or the kernel. 
 
 The Scripture does not say ye shall not steal, but 
 thou shalt not steal. After having read the Scriptures 
 with considerable attention for more than half a cen- 
 tury, I have reached the conclusion, that they address 
 us as individuals, demanding personal attention and 
 obedience to their commands ; and on this basis they 
 devolve the personal obligation on each one, to study 
 their teachings, and be guided as under a call for 
 individual duty ! Indeed this idea is amply inculcated 
 in the Scriptures, as devolving on each one the duty 
 of studying for one's self, and declaring that they are 
 so plain, " the wayfaring man " may understand all 
 
LABOUR AND CAPITAL. 203 
 
 that is necessary for the discharge of his reUgious 
 duties. I do not mean by this, that there are no 
 social duties, for it will be found these are all embraced 
 in individual duty, as the same are beautifully unfolded 
 in this great system of moral government. 
 
 I have not introduced this subject as a theologian, 
 but as a layman, after having reached the conclusion 
 that the Christian Scriptures are eminently beneficent 
 in their influence on the business affairs of men. 
 They include the stern justice that protects the weak, 
 and maintains to all equal rights of labour, of con- 
 science and political freedom, " To keep the way of 
 the Lordj to do justice and judgment." They have 
 produced the highest civilization the world has known, 
 and especially in establishing Institutional law, for. 
 the maintenance of freedom and the just rights of 
 men. Every working-man (and we are mostly of this 
 class) should regard them as the constitution of his 
 rights in all the affairs of business, of society and of 
 civil liberty. 
 
 All the scientific writers on industrial economy 
 that I have seen, agree in the opinion, it is the culti- 
 vation of the moral in men that must be relied on to 
 raise them to the best use of their powers. I think 
 this sentiment cannot be successfully controverted. 
 If, then, it be conceded that our progress in civiliza- 
 
204 ^-^^ QUES'I'ION OF 
 
 tion, or the general elevation of society, depends on 
 our growth in moral character, the teaching of the 
 Scriptures must be regarded as highly valuable, if not 
 indispensable to that progress. In one respect it 
 must be held the Scripture is peculiarly influential on 
 the masses of men — namely, that it adds to the 
 wisdom of its precepts the force of a Divine sanction. 
 To its precepts it adds, " do this and live." 
 
 Whatever may be claimed for any systems of 
 morals that have been wrought out and presented to 
 the world by human wisdom, they have produced 
 comparatively very small influence on the order, 
 justice, purity and general happiness of mankind, as 
 compared to what has been accomplished by Scripture 
 culture. In connection with education, the Scriptures 
 are our reliance for enlarging and beautifying our 
 civilization in all that can elevate and adorn our man- 
 hood, and so reducing the ratio of the dependent to the 
 independent class of men. This is not all : as we im- 
 prove the material and moral well-being of society, we 
 shall diminish the criminal class, and with it the large 
 expenses involved in protecting society from their 
 depredations. As we advance in moral culture, men 
 will " cease to do evil and learn to do well." 
 
 I believe in the doctrine of the providence of God 
 ruling over all the affairs of men in righteousness and 
 
LABOUR AND CAPITAL. 2OS 
 
 truth. At the same time I hold, that according to 
 Scripture teaching, the Divine rule is so ordered and 
 administered, as in a proper sense to leave men in the 
 control of their own destiny. This is manifest in the 
 experience of men. Those who, in an abiding faith 
 in the authority of the Scriptures, and in obedience to 
 their teaching, practice diligent industry, prudence, 
 uprightness and purity of life, are found to constitute 
 the great bulk of the independent class. On the 
 other hand, the dependent class are mostly made up 
 of men who are wanting in some, if not all those 
 virtues. 
 
 I therefore say to the young working-man, your 
 destiny is not a matter of chance, it is a matter of pur- 
 pose, left in your own hands to decide which class you 
 will fall into. God will aid you, when you put your 
 shoulder to the wheel, and with manly effort overcome 
 the impediments that may appear in your path. This 
 is the main question, and it can only be decided by 
 yourself. The benefit, no less than the responsibility, 
 rest with you. If you have not the moral nerve to 
 meet it affirmatively— and prefer a loose, indolent waste 
 of your powers, you must eventually take your place 
 in the ranks of dependent men. There is no escape 
 
 from this. 
 
 However men may be degraded to a love of low 
 
2o6 "^^^ QUESTION OF 
 
 pleasures, and come to disrespect all else, there can 
 be no doubt the moral is what gives the noble char- 
 acteristics of our being ; and surely we shall be ele- 
 vated, as we progress in the formation of the cardinal 
 virtues, that give eminence, and adorn our civilization. 
 It should be our hope and joy that we live under 
 the reign of Institutional law, founded on the basis of 
 Scripture morality, whereby every man is free in the 
 exercise of all his powers of industry and virtue, and 
 at the same time protected against any that would assail 
 his right, or impair his success. The power of every 
 man is his own property, and when exercised with dis- 
 cretion and energy, it will redound to his benefit and 
 honour. The true and legitimate advance of moral 
 culture, will work an amelioration that can be found in 
 no other way. It will tend to modify, if it does not 
 remove, all ground for contest in this question of labour 
 and capital. 
 
 Instruments and Labour. 
 
 I cannot dismiss this subject without calling the 
 attention of working-men to the benign agency that 
 has put in their hands the instruments that have vastly 
 increased their power. This has been referred to in- 
 cidentally in the preceding pages ; but I desire to be 
 somewhat more explicit. It is proper to consider, these 
 
LABOUR AND CAPITAL. 207 
 
 instruments have not resulted from accident, nor from 
 any arbitrary action of men. They have been sought 
 for the purpose of alleviating the severity and increas- 
 ing the effectiveness of labour. They have been the 
 product of many intelligent men, who by slow degrees, 
 in the application of their minds to invent, and by per- 
 sistent perseverance in manipulation of the varied 
 parts — patiently varying their operations as indicated 
 by experiment, until a form had been reached and so 
 combined as to meet the object they desired. Now, 
 it is important to consider the object they had in view. 
 What was it ? It was to mitigate the more severe toil 
 and increase the facility of manipulation in fabricating 
 the goods that are called for by the wants of men ; 
 to reduce manual labour by substituting mechanical 
 agents and brute force to perform the work that had 
 been done by men ; and so provide a more easy pro- 
 duction of articles needed; and also to do works that 
 manual power had not been able to accomplish. 
 
 The result of these instruments has greatly changed 
 the characteristics of labour. What before was either 
 not produced at all, or was produced by manual labour, 
 is now in great measure the labour of mechanical 
 agents or brute force. They have not removed the 
 necessity of manual labour, but have taken away in 
 large measure the more painful toil, and given it a 
 
2o8 ^-'^■S QUESTION OF 
 
 more watchful and skilled character, whereby a man 
 exercises his body more lightly, and finds employment 
 for his mind. This latter is very important as giving 
 a man an interest in thought, that greatly alleviates 
 the toil of manipulation ; giving the pleasure of mind, 
 as co-operating in production, mitigating the severity 
 of continued manual effort, and so giving pleasurable 
 occupation, by uniting the action of the body and 
 mind in a manner that relieves the severity of toil, 
 and so escaping much of the drudgery of the old 
 process. 
 
 As suggested, it does not render labour unnecessary, 
 but provides a cheaper and easier process of fabrication ; 
 that is, to make goods more plenty, and thereby bring 
 the cost within the means of a larger number of men. 
 In the changes that have been made by improved 
 methods of industry, there has no doubt resulted more 
 or less of inconvenience to the labourer, who has 
 found his old trade superseded, and he compelled to 
 resort to some other occupation, or adapt himself to 
 the new method of work. This must be admitted as 
 an evil ; but I see no remedy, as mankind will seize 
 every improved method that cheapens commodities, and 
 the labourer must be exposed to the risk of such 
 improvements as may interfere with any special 
 occupation. This view is in many cases relieved by 
 
LABOUR AND CAPITAL. 209 
 
 the facility wliich the new method affords of employ- 
 ment by the same workmen that were occupied in the 
 old method ; the change not being such that the 
 former workmen may not adapt themselves to the new 
 requirements. 
 
 While it must be admitted the changes above 
 referred to have some deranging influence on labour, 
 there can be no doubt the volume of labour has been 
 greatly increased by the improved instruments that 
 have been provided. The reason for this is found in 
 the fact that by cheapening commodities, consumption 
 is increased. This is what gives the public favour to 
 all improved methods of production. The inventor 
 may, or may not, regard the public good ; but that is 
 not material to the question, as the main thing here 
 considered is the effect of improved methods of 
 labour on the interests of society. In this view they 
 are the legitimate production of civilization — a contin- 
 ual striving to effect the most economical production. 
 However the man that sees his occupation disturbed, 
 may relish the innovation, or have a claim for sympathy, 
 the public will always hail with satisfaction any new 
 method by which supplies may be cheapened. 
 
 That the above view is a correct interpretation of 
 public sentiment, is manifest from the action of 
 governments in granting letters patent to inventors 
 
2IO THE QUEST/0 A OP 
 
 for a term of years, during which they are secured in 
 the exclusive right of their invention. Until the term 
 has expired, the public has no right to the use of the 
 invention. That this action of governments is found- 
 ed on the idea that improved methods of production 
 are a public benefit, there can be no doubt. Every 
 nation strives to perfect its own facilities, in order to 
 enter in the most favourable way into the competitions 
 of other nations, in all the industries it is adapted to 
 prosecute. It is obvious, other things being equal, 
 the nation that has the most intelligent and ingenious 
 people, will control the largest amount of productive 
 industry. Consequently they will be able to maintain 
 the largest commerce, and support the most dense 
 population. 
 
 The progress of ingenuity within the last century 
 has introduced and brought into successful operation 
 an amount of improved methods, that have revolution- 
 ized productive industry. No intelligent man would 
 thing of going back to former methods. As a people we 
 have gradually accommodated ourselves to this new 
 and improved order of industry. In cheapening the 
 cost of commodities, it has given enlarged consump- 
 tion — extending to numerous members of society, arti- 
 cles of living they had not previously enjoyed, besides 
 furnishing necessary articles for men at a reduced cpst. 
 
LABOUR AND CAPITAL. 21I 
 
 This is tlie condition of industry that makes large 
 demands for the instruments of labour. It is a condi- 
 tion in which the labourer cannot do without the in- 
 struments, and the instruments can only be had by 
 the saving that results from abstinence. This absti- 
 nence is the frugal husbanding of the proceeds of 
 labour, and is stimulated by an appreciation of its 
 value in the future. The instrument so secured by 
 the prudent abstinent, is simply another term for 
 capital. It was obtained by persistent saving in order 
 to secure the benefit of its use in the hands of the 
 abstinent, or with a view to loan it for a consideration 
 to those who had not saved it. After invention, the 
 instrument is merely the result of prudent labour, and 
 is entitled to its pay, on precisely the same basis, that 
 a man is entitled to pay for his work. They are alike 
 work, and stand on equal terms as to right of remun- 
 . eration. There is no possible difference in the rights 
 of these parties. The compensation is in both cases 
 for labour — though one be preferred for a present ob- 
 ject, and the other through abstinence for the present 
 to secure a future object; they are equally the product 
 of labour, and enter on the list of free trade between 
 the parties, the same as any commodities should do. 
 
 The labourer needs the instruments, for their 
 necessity has become incorporated in the existing civ- 
 
2 1 2 THE Q UESTION OF 
 
 ilization, and it would be in vain that he look for 
 sources of industry that did not require them. In 
 any effort that should dispense with the instruments, 
 the labourer would be impotent ; while with their 
 use, labour would be more productive to the labourer 
 as well as to the public. No man can have the in- 
 struments unless he is willing to provide them, or if 
 he has not provided them, he should pay the man who 
 has saved them, a proper interest or benefit for their 
 use. On this principle the whole order of our busi- 
 ness civilization rests, and it cannot be disturbed by 
 any process that does not lead to barbarism. Some 
 regard this view as a hardship to labour, which is sim- 
 ply a plea that the prudent abstinent shall divide his 
 earnings with the improvident, who chose to consume 
 their earnings, and have left nothing for saving. 
 
 The fact of the existence of the instruments, that 
 are in readiness for the labourer, is a vast benefit to 
 him ; greatly enlarging the field of his labour, and 
 giving him the power, if he has the requisite absti- 
 nence, to provide them for himself. He has the 
 experience before him of the practicability of doing 
 this, from the large numbers who have by a course of 
 prudent industry accumulated their own instruments. 
 These instruments which I have described, are only 
 another name for capital. The question, therefore, if 
 
LABOUR AND CAPITAL. 2I3 
 
 there be any contest, is between the instruments and 
 the labour, that is performed by their means, and 
 which could not be performed without them. 
 
 It is obvious the preceding remarks are not ne- 
 cessary to convince intelligent men ; but I am writing 
 with a view of benefiting young working-men ; a very 
 large class, to which our young men mostly belong. 
 In their inexperience they are liable to be misled on 
 a question in which they are deeply interested. It is 
 sought in various ways to impress on their minds 
 several erroneous notions ; as that labour is oppressed — 
 that it is weak — that in its impotence it is unable to 
 provide for itself, and should in some way have aid to 
 relieve its burdens. In regard to all this, if we did 
 not enjoy civil liberty, and our society was divided 
 into classes, in which the mass of men were made to 
 contribute a large share of their earnings to the 
 support of a privileged class, there would be some 
 ground for those claims, which are held to be philan- 
 thropic. But this is by no means our situation. We 
 are a free people, and such classes as we have are 
 what they have made themselves by the legitimate 
 exercise of their own personality, in the same field 
 that was alike open to all men. We know no law of 
 entail or privilege ; every man is free to use his powers 
 as he thinks will best promote his own interest. All 
 
214 THE QUESTION OF 
 
 labourers have the dignity of unrestricted manhood, 
 with full and free scope for their endeavours. They 
 stand on an independent basis, the basis of freedom, 
 with the right and the power to exercise themselves 
 for their own benefit, and every one can take such 
 course of industry as he regards most likely to pro- 
 mote his own welfare, with a reasonable certainty 
 of finding a market for his skill and labour. The in- 
 struments civilized liberty has put into his hands are 
 eminently superior to those of any previous age — are 
 a great boon to the labourers of the present day, and 
 only demand a manly energy to make them success- 
 ful in providing a competent independence. 
 
 It must not be forgotten that every able-bodied 
 young man is in duty bound to provide for his own 
 well-being. He has no right to expect another will 
 work for him gratuitously, any more than he will 
 expect to give his own services without compensation. 
 If his neighbour has provided the instruments he 
 needs, he should expect to pay for their use accord- 
 ing to their market value. They increase his power 
 of production, and open up a larger field for his labour 
 than could otherwise exist. As surely as he makes 
 the instruments a means of abstinence, and so gathers 
 them for himself, he will expect most rightfully a 
 profit for their use. The latter is the motive for 
 
LABOUR AND CAPITAL. 215 
 
 saving ; and it is one that has been and will continue 
 to be efficient to every man who has the moral nerve 
 to be a man. The man who lacks such motive is 
 certainly to be pitied for his imbecility, but has no 
 other claim to sympathy. 
 
 This whole subject resolves itself into a question 
 of manliness. If this is sufficient to overcome the 
 imbecility that weak minds are prone to indulge, in 
 raising impediments and forming excuses, the young 
 man will steadily rise in his condition, and will soon 
 learn that capital and labour have no contest that is 
 not common in all exchanges for services or goods. 
 
 Everything a man works for has a value that 
 arises from desire, and whether this be for present or 
 future use, is immaterial — it may be for bread, or it 
 may be for instruments to improve his production ; 
 in either case he labours for the article, and is entitled 
 to the product, and to such appropriation of the pro- 
 ceeds as he judges best for his interest. In the case 
 of the instruments he has begun to be a capitaUst in 
 precisely the same way that most capitalists have 
 been made, whether they have been employed in 
 mental or manual labour, or in both combined. 
 
 I am well aware the preceding remarks are hardly 
 less or more than truisms, and am far from claiming 
 originality ; and have only designed to put them in 
 
2i6 THE QUESTION OF LABOUR AND CAPITAL. 
 
 order as best I could, for the purpose of leading to 
 reflection on matters that young men are very liable 
 to regard in a light way, if they do not entirely over- 
 look. I am very sure they often neglect them, not- 
 withstanding they are matters that deeply concern 
 their welfare. If our civilization makes useful pro- 
 gress, it must certainly be developed in reducing the 
 ratio of the dependent class, and also that of the 
 criminal class. We shall not progress by declaiming 
 against our civilization, as organized for carrying for- 
 ward our productive industry ; but by elevating the 
 moral and mental standard and thereby bringing the 
 animal proclivities of our natures into subordination 
 to reason and right, and so direct them to the legiti- 
 mate purposes for which they were ordained.