4 POLITICAL ECONOMY 



done to their demands by the expiring Parliament; and no 

 worse effect could follow the extension of the suffrage than an 

 attempt by workmen to use their new power to alter legislation 

 in a sense favourable to their immediate interests, but adverse 

 to those of the nation. The evidence received by the Eoyal 

 Commission, and the questions asked by the members of that 

 Commission, seem to show that even among those who are 

 familiar with trade, with workmen, and with the handling of 

 economical questions, the gravest errors are rife errors indorsed 

 without hesitation by the greater portion of the press. The 

 claims and practices of unions are judged on no fixed principles 

 and their legitimate action is condemned with almost the same 

 rigour as is justly displayed in branding the foul crimes which 

 they have fostered. The wishes of workmen are misunderstood, 

 their habits are unknown, and they are pitied for hardships 

 unheard of from the mouths of artisans, but mercifully vouched 

 for by master builders. 



The principles of political economy, though often quoted, are 

 little understood ; we propose first, to discuss those principles 

 as affecting trade-unions ; secondly, to consider the right to com- 

 bine ; thirdly, to describe unions as they exist ; and finally, to 

 examine what legislative action is required. Before entering on 

 these four subdivisions of our task, we will state briefly the 

 general features of the case for and against trade-unions, and 

 for the latter purpose shall draw largely from an article in the 

 Quarterly Review. 



This article begins with the assertion that unions are not 

 economically beneficial to their members ; that they do not, and 

 cannot, raise wages permanently. It is not denied that wages 

 have risen since the establishment of unions, but this rise may 

 have been due to large profits made in trade not to the unions 

 at all. When profits are large the demand for labour will be 

 great, and wages must rise. When profits are small in a given 

 trade, capital will be driven from that trade, and wages will fall. 

 The action of trade-unions cannot, it is said, increase the wages 

 fund or capital out of which the workmen are to be paid, nor do 

 they diminish the number of the recipients, though they may 

 prevent the increase of that number by arbitrarily limiting the 

 number of apprentices. Now, wages depend simply on the ratio 



