68 Wisconsin Academy of Sciences, Arts, and Letters. 



pendence, and also increase capital by devoting mucli wealth 

 that would be spent, to production. And capital thus dis- 

 tributed stimulates energy, develops talent, comes closer to 

 labor, better defends itself and superintends operations by 

 having in each operative an interested observer of both his 

 own and others work. 



2. A second circumstance to be considered is the ratio of 

 the ivhoh amount of capital to the whole number of laborers and the 

 ratio of the increase of capital to the increase of labor. This only 

 recognizes the principles before stated that industry is limited 

 by capital and every increase of capital demands increase of 

 labor. 



No universal rule can be given for this proportion. It will 

 vary somewhat according to the circumstances of each country 

 and the spirit of its people. Here the age of a country must 

 be taken into account — its natural advantages — the general 

 occupation of its people. In a new country, occupied by a 

 thrifty people, capital increases faster than labor, and there 

 we see always the highest stimulus to production. For all 

 countries and all people, the general principle is, that there 

 should be labor enough to employ the capital and capital 

 enough to employ the labor. A perfect balance is perhaps 

 nowhere realized. Yet, if labor and capital are free, the flow 

 of each under the law of competition towards an equilibrium 

 is as natural as that of the waters of the ocean under the 

 action of gravitation. In the order of nature undisturbed, 

 there is provision for the steady increase of both capital and 

 labor in something like a defined proportion. There is no 

 danger of a surplus of either, for the whole world, nor for any 

 one country, if only the passage is open for the outflow and 

 inflow of either. 



8. The third circumstance to be named is the certainty that la- 

 bor and capital shall each be made sure of a just reward. The part- 

 ners join hands each for an expected reward. Men will not 



