ON CAPITAL AND LABOUR. 149 



trade-imious guiding them as to the state of trade and the value of labour at 

 the time. Unfortunately, however, what workmen think themselves entitled 

 to have does not always correspond with what employers find themselves 

 able to grant. Trimarily the wages of labour are determined by the 

 amount of capital available for the purposes of wages in relation to the 

 number of labourers competing for the same. But the amount of capital 

 employed in any industry is itself governed by considerations of the relation 

 of the cost of production to the market-price of the produce (that is, to the 

 price which the consumer is able or willing to give for the same) — the cost 

 of production including the cost of materials, the value of capital, the cost 

 of superintendence, and the wages of labour. 



Objection was taken at the Conference to this method for arriving at 

 the rate of wages ; and it was urged that instead of taking the price of the 

 article produced or the interest of the consumer as the basis of the calcula- 

 tion, the first ingredient in the cost of the article should be the price to be 

 paid to the workman in producing it. Eut a serious consideration will show 

 that the employer cannot ignore what the consumer can or will pay any 

 more than the share which the value of capital, the cost of superintendence, . 

 and the cost of the materials have upon the cost of production ; for he must 

 cease producing altogether if he cannot both meet the ability of the con- 

 sumer to purchase his article and successfully compete with the producers of 

 other countries. Tour Committee think that it is not in the power of the 

 employer to control the proportion of the different elements in the cost of 

 production, each of them being governed by circumstances peculiar to itself. 

 The value of capital as well as the value of the raw materials are regulated 

 by the law of supply and demand, not only in this country but in the prin- 

 cipal markets of the world. The cost of superintendence and the wages of 

 labour are likewise governed by the relation of the amount of capital to the 

 number seeking to share in the different employments. The employed saj', 

 " We must have certain wages. We care for nothing else. Labour is oiir 

 property. We set our value iipon it. If you will have our labour you must 

 pay what we ask for it ; and if such wages should require a rise in the 

 market-price let the consumer pay it." What, however, if the consumer will 

 not or cannot pay sufficient price to enable the employer to pay such wages ? 

 What if he can get the article cheaper elsewhere ? Must not production 

 cease if there bo no market ? And where will be the wages if there be no 

 production ? Nor should it be forgotten that a general rise of wages pro- 

 ducing an increase of the cost of all the commodities of life reacts on the 

 masses of the people, and thus far neutralizes the benefit of higher wages. 



Disagreements between employers and employed are often produced on the 

 subject of wages by the fact that all the elements of the case are not within 

 the cognizance of both parties, experience showing that, in making a demand 

 for an advance of wages or for resisting a fall, workmen are of necessity 

 groping in the dark as to the real circumstances of the case. One of the 

 chief advantages supposed to result from the organization of trade-unions is 

 the competency of their leaders to give solid and practical advice to those 

 interested as to the condition of the labour-market ; and we have no doubt 

 that this duty is in the main honestly performed ; but it is very much to 

 expect that such leaders should universally possess large and liberal views 

 enough to vindicate the exercise of their enormous power, and such constant 

 and accurate knowledge of the various facts of the case as would enable 

 them to be an almost infallible authority. On the other hand, were it' 

 possible for employers, who are not in the dark in such matters, to make 



