TRADE-UNIONS 5 



between the capital employed as ^ages and the number of per- 

 sons to be paid ; and unless by augmenting the capital or by 

 diminishing the number, in other words, by augmenting the 

 demand or diminishing the supply, no permanent alteration in 

 wages can be effected. The question for those who wish to 

 raise the wages of labour is. not how to divide the existing wages 

 fund in a manner more favourable to the working man, but how 

 to increase competition for his labour among employers ; in 

 other words, how to increase the wages fund. Trade-union?, 

 far from even aiming at this end. drive capital away from trade 

 by harrassing employers, diminishing profits, and increasing 

 risks. Therefore, in the long run they tend to diminish wages, 

 and though for a little while they may obtain an increase from 

 an employer working, for instance, under a penalty, the increase 

 is only temporary, and is little, if at all, short of a theft from 

 that employer. But while they fail to increase wages, they do 

 increase the cost of production ; they do therefore injure all 

 consumers, themselves as well as others. By excluding compe- 

 tition, they may raise their own wages, but this exclusion con- 

 stitutes a tyrannous monopoly which cannot be permitted for a 

 day : and even this monopoly can never raise the wages of 

 working men as a whole. The main aim and object of trade- 

 unions being to raise wages, the above arguments lead to the 

 conclusion that this object is a delusion based on an obvious 

 fallacy, that unions are, so far even as concerns the interest of 

 their members, an enormous blunder. But worse than this, 

 they are injurious to the country at large, and their existence is 

 irreconcilable with public policy. They injure the quality of 

 articles produced, by diminishing competition among artisans ; 

 they are hostile to excellence among workmen, discouraging 

 piece-work and over-time, by which the skilful man may hope to 

 better his condition ; they oppose machinery, and foster dis- 

 sension between employers and employed ; they limit the quan- 

 tity of wealth produced by limiting the number of producers ; 

 by all these means, without benefit to themselves, they banish 

 trade, and increase the cost of produce to consumers. Worse 

 still, they are not even honest, nor do they represent the true 

 feelings and wishes of workmen ; they are governed by glib 

 democrats, who resort to force and outrage to establish their 



