128 SECTIONAL ADDRESSES. 



another 1001. a year in one form or another from her father is in all 

 probability not underselling anyone, but may, even by her liberal views 

 of what IS a good salary, be inciting her less luxurious colleagues to 

 raise their standard of living and remuneration ' (Economic Journal, 

 1898, p. 5U). 



4 (ter). On the all-important question where tO' draw the line which 

 separates the genuine labour market from those whom it is desired to 

 rule out as spoiling the market, I cannot pretend to an important 

 opinion. It may be granted that strong measures and exceptional 

 treatment are required for the ' residuum of persons who are physically, 

 mentally, or morally incapable of doing a good day's work with which 

 to earn a good day's wage ' (Marshall, 'Principles,' p. 714, ch. 5). 

 But it IS often proposed to fix a minimum at a higher point ; so high as to 

 exclude great numbers. Consider, for example, a case suggested by 

 Professor Taussig (' Mmimum Wage for Women,' Quarterly Journal 

 of Economics, 1915). Suppose that a large proportion (we need not 

 suppose with Taussig a large majority) of the women in a community 

 living at home, and so realising the advantages of co'-operation, ' the 

 economy of family life,' do well for themselves and their families by 

 earning $6 a week. They are not to be ruled out as ' parasitic ' ; given 

 that the family would be worse off if an earning daughter were removed 

 (loo. cit., pp. 418-419). Now suppose that the ' necessary cost of 

 proper living ' for a woman dependent on herself is authoritatively 

 determined to be $8 a week. Would it be ' immoral ' on the part of the 

 home- residents to take less than $8, as might perhaps be inferred from 

 some authoritative dicta? (Cp. Economic Journal, 1915, p. 627, and 

 ' What we want and why,' 1922, p. 245.) What is to be done about 

 independent women workers in such a labour market? Shall we adjust 

 the minimum wage to the family rather than the individual? (Cp. Mar- 

 shall, loc. cit., especially note to p. 419.) I do not feel able to add 

 to what Professor Taussig has wisely written on the subject. 



It should be recalled that throughout this inquiry we are abstracting 

 humanitarian considerations ; on classical lines we are seeking purely 

 economic advantages, including the production of an efficient progeny. 



5. The advantages theoretically obtainable by the scientific pro- 

 tection of infant industries are well exhibited by Professor H. 0. 

 Meredith (Economic Journal, 1906). But he adds : ' I know nO' case 

 in which Protection has demonstrably done more good than harm.' 



6. The property of a maximum referred to< as relevant to the present 

 study and the sequel is thus stated by Dr. Marshall : ' When the 

 adjustment is such as to give the best results a slight change in the 

 proportions in which they [resources] are applied diminishes the 

 efficiency of that adjustment by a quantity which is very small relatively 

 to that change— in technical language, it is of " the second order of 

 smalls " ' (' Principles of Economics,' p. 409, note, edition 5). Mr. 

 Bickerdike has made an interesting application oif the property to the 

 theo'iy of Free Ti-ade (Economic Journal, Dec. 1906). His argument 

 is discussed by tlie present writer in the Economic Journal for 

 September 1908. As a simple illustration of the property under con- 

 sideration there is adduced the^ incident that in the neighbourhood of 



