32 POLITICAL ECONOMY 



inequality of condition. Great inequality is necessary and 

 desirable, but it is at present great enough to admit of some re- 

 duction. The accusation that unions do restrict trade is also well 

 founded. No rationally conducted combination will so restrict 

 trade as to diminish the total wages fund, but a rational combi- 

 nation may diminish the rapidity of its extension, by diminish- 

 ing the profits of capital. The inducement to save, and the 

 fund out of which new savings are made, are both diminished : 

 and though other reasons, such as the desire for a given income, 

 may tend to increase capital, still observation seems to show 

 that trade will extend faster with large profits and small wages 

 than with small profits and large wages. Is the rapid extension 

 of trade a permanent good ? Is it better that there shall be a 

 working population of twenty-five millions with small wages, 

 much pauperism, and great total wealth, or a population of 

 twenty millions, less total wealth, but good wages, and little 

 pauperism ? To put the question is to answer it. If unions 

 raise wages and the standard of comfort, the mere restriction 

 to an increased trade will be no evil, provided the increased 

 standard of comfort leads to a corresponding restriction of the 

 increase of population. If it do not, then indeed the temporary 

 gain to the fathers will be fatal to the children. 



At one and the same time to diminish the increase in the 

 production of wealth, and increase the number among whom 

 the wealth is to be divided, is to insure a future generation of 

 paupers. Trade-unions may for once increase the share of the 

 workman in the profits on production, but they can only do it 

 once, and so soon as the limit has been reached beyond which 

 the wages fund under their action will decrease instead of 

 increasing, they can no longer benefit the workman further than 

 by maintaining the good they have won. When that wages 

 fund has reached its maximum ratio to the total produce of the 

 country, then every word said by Mill on the subject of the 

 necessary limitation to population is applicable. Trade-unions 

 could not maintain themselves in the face of paupers clamouring 

 for employment, and perhaps the clear perception which those 

 unions produce of the necessity of limited competition to the 

 wellbeing of competitors for bread, may lead even the English 

 workman to act on the precepts of Mill, as well as to vote for 



