TKADE-L'NJO-\'S 27 



productive labourers. Annually the capital and labour pro- 

 duce wealth of more value than the circulating capital. This 

 new wealth may be divided in an infinite variety of ways. The 

 same sum as before may be spent as circulating capital in the 

 shape of wages, and the whole excess of the wealth produced be 

 consumed by the capitalist as his reward for saving. But this 

 constancy need not be maintained ; it is equally possible that 

 the wealth may be divided in other proportions. What does in 

 practice determine the proportions ? We answer, the will of 

 the capitalist and of the labourer. The exercise of this free will 

 is subject to the heaviest penalties. The capitalist may refuse 

 to re-invest so large a proportion of his wealth, and may diminish 

 wages. His penalty may be that fewer workmen will work 

 perhaps none ; his profits next year may diminish instead of 

 increasing, he may find no profits, and have to live by consum- 

 ing the capital he would fain invest. Again, if the workmen 

 demand a larger share, they do it at their peril ; they may get 

 a smaller share, they may get none. Thus a perpetual and in- 

 evitable strife arises as to the distribution of the wealth pro- 

 duced by the conjunction of labour and capital ; each party de- 

 clares their share to be the smallest they can possibly accept. 

 'I will starve or emigrate rather than take less than 36s. per 

 week,' says the workman. ' I will spend my wealth, or invest 

 it abroad or in non-productive investments unless I get 15 per 

 cent..' says the capitalist. 1 The sincerity of the two parties to 

 the bargain cannot be tested except by the practical test of a 

 refusal to work, or a refusal to employ workmen. It cannot be 

 contended that the proportions of distribution once fixed will 

 be constant, or that any natural proportion whatever does exist. 

 No man by reasoning beforehand can discover what rate of profit 

 will reward a man for saving, or in other words, what is the 

 natural interest on capital. Xo man by reasoning d priori can 

 determine what food, lodging, raiment, amusement will be suffi- 

 cient for an artisan, or in other words, what are the natural 

 wages of that artisan. Both the necessary reward to induce 

 saving, and the standard of comfort, will vary immensely with 



1 There is no means in any one case cf knowing what profit an employer 

 really does make ; the workman openly states his claim for so much a week ; 

 the employer does not state his profit, nor can he be expected to do so. 



