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ployers to concede the demands of their workmen for the increase of wages, is based upon the supposition that every such increase diminishes by just so much their profits. has been the settled opinion of some economists. It has been shown in previous sections, that this is by no means always the case. Other instances go to show its incorrectness.

One of the illustrations of the advantage of co-partnership in production is that of M. Leclaire, a house-decorator in Paris. He employed about two hundred workmen, and had become greatly discouraged with the apathy and carelessness which they manifested, subjecting him to constant loss and annoyance. He therefore proposed to give them some pecuniary interest in the work, hoping to inspire in them a higher ambition with reference to it. He called them together, and told them he would continue to pay them the customary wages, and at the end of the year would distribute among them a certain share of the profits realized. The plan worked admirably; and M. Leclaire declared not only that he was otherwise satisfied, but that he was in a pecuniary sense abundantly recompensed for the share of the profits given to the workmen. Nor is this unnatural. It accords with the principle previously set forth. Larger remuneration often adds to the efficiency of the laborer; and this implies larger product, and consequently more to be distributed. In the case before us, there is an additional reason for a larger product, and hence a larger profit. There is the motive to save material and tools, and to make the most possible out of what is furnished. Much is also saved in the matter of superintendence. The cost of overseeing laborers who are interested only to receive their wages, and are careless whether the employer realizes much or little from their work, is usually very great. But when the employee has a direct interest in the product, there is less

liability to shirk or to waste, and a greater inducement to make every thing tell for the interest of the enterprise. In such a case, labor largely superintends itself, and the expense otherwise incurred is added to the profits.

8. The wages of women. A social phenomenon which few have failed to observe is that of the difference between the wages of women and those of men in similar employments. At first sight the fact seems out of harmony with the general laws of political economy, yet the apparent discord is not altogether inexplicable.

There are several reasons why the wages of women are lower than those of men. One, and perhaps the most influential of these, is that the supply of the kind of service which women offer in the market is much greater in proportion to the demand for it, than is the kind of labor offered by men. Let us look at this a little more particularly. Owing to what seems to many a vice of our social system, the variety of labor which women have to offer for wages is very limited, while the amount is very great. There are comparatively few occupations to which women are admitted. Hence the number of women who have labor to sell, though not so great as that of men, is yet far greater in proportion to the work they are permitted to do. The occupations open to them become densely crowded, and the competition among those seeking wages is very great. In the very nature of things, the wages are lower than they otherwise would be. Housework, millinery and dressmaking, general sewing, some service in shops, fancy work, and teaching have been till recently, for the most part, the occupations to which women have been admitted. Because women must work in these if at all, the supply of labor has become so great that the wages in them must be smaller than if the demand were to the supply the same as in the case of men.

Another obstacle to the improvement of women's wages lies in the fact that it is more difficult for them to carry their labor to market than for men. "While women have thus far more occasion relatively than men to move to their market, we find them disabled therefrom in a great measure by physical weakness, by timidity, and by those liabilities to misconstruction. insult, and outrage which arise out of sexual characteristics. Having more need than men to move from place to place, they have less ability to do so. It must be remembered that it is not a question merely of taking a journey from home to a place where a 'situation' has already been engaged; but it may be of seeking out employment from street to street and from shop to shop, by repeated inquiries, often through much urgency, and persistency of application." I

One other reason why women's wages are lower than men's is that the former seldom learn trades, or fit themselves for permanent callings. For the most part, they are looking to an early termination of any pursuit which may be adopted. This is itself a partial disqualification for any vocation.

The principal remedy for the disadvantage to which women are thus subject is, as I conceive, the removal of restrictions which custom and a wrong public sentiment have established in respect to their occupations. That this is already constantly taking place, no one can doubt; and the natural results are obvious. Within the last thirty years the wages of women have advanced very much more than those of men.

9. IMMIGRATION AS AFFECTING WAGES.- This is a complicated subject, and there is space to touch only briefly upon it. It would seem at first sight that if there were plenty of laborers already in a community, the advent of an additional number from abroad would so increase the

1 F. A. Walker: The Wages Question, p. 376.

supply as to diminish the rate of wages. No doubt in many cases this is true, but not always nor necessarily. It must be had in mind that immigrants not only bring additional labor into the labor market, but they also bring additional wants, and this implies an additional demand for commodities, and this implies a demand for additional labor. If a hundred persons come into a community they must have food and clothing, and houses to live in, and whatever else pertains to the support of human life. There must be an additional outlay of labor to supply these wants, and it is very likely to be the case that the additional demand for labor will not be less than the additional supply. So far the laborers already present suffer no harm, but this is on the supposition that the new laborers are of about the same grade as those already here, and that their wants are about the same. But if the new laborers are of a lower grade than the average of those already here, the latter would doubtless suffer detriment, though not corresponding fully to the number added. These will have some wants, at any rate, which it will take additional labor to supply. It is also to be taken into account that this class of laborers are less efficient than the average of those among whom they come, and therefore, at even lower wages, are not so profitable to the employer. They will, therefore, in any case, displace only an inferior grade of laborers.

Still it is undoubtedly true that the great numbers of immigrants recently pouring into the country, accustomed to a low style of living, such as our American laborer is not accustomed to, do tend to diminish wages to a certain extent, and are otherwise harmful to the interests of our communities. This evil appears to call for the interference of the government in the use of its powers to promote the general welfare.

CHAPTER VIII.

PROFITS.

1. THE term profits has already been defined as the portion of the joint product of labor and capital which goes to the employer. It is sometimes loosely spoken of as the capitalist's share. This is incorrect. The loaners of money, or of real estate, or of other property, are capitalists; and what they receive for these comes under the heads of interest and rent.

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The employer may be and often is a capitalist, but he is not always and necessarily so. The distinction between the two has already been noted. Capital cannot move itself. Labor cannot command capital, and therefore has little power; hence the necessity for an employer or business-man to effect a union, and put both in successful operation. Capital without labor is an infant: labor without capital is a cripple.” '

2. The ability to organize and manage a business, and the skill involved therein, especially if there be much capital and many laborers, entitle the possessor to a larger share of the product than an ordinary laborer can command. The very principle which is the basis of distribution, and from which the law governing it is evolved, is that each producer is entitled to an equivalent of the value by him created. If one man

1 Amasa Walker: The Science of Wealth, p. 311.