BY E. M. JOHNSTON, F.L.S. 



209 



of capital (instruments) and labour, strikes cannot raise the 

 real wage of all wage-earners." 



In other words, it is possible to regulate and alter the dis- 

 tribution of the aggregate wealth of consumable necessaries 

 by means of strikes. 



So far there is a substantial agreement between us. 



_ It is in the following statement made by me wherein our 

 views are in diametrical opposition, viz.:— (1.) "It is not denied 

 thatan arbitrary increase to nominal wages, if restricted to a 

 few industries, might increase both nominal and real wages 

 of these trades ; but in all such cases it would be obtained by 

 a proportionate decrease of the purchasing powers or real wages 

 of every other class in the community who were obliged to pur- 

 chase the products enhanced in price of the various industries 

 who succeeded in having the nominal wages so raised," and 

 more especially is the fundamental difference between us 

 set forth in the next paragraph used by me, viz.: — (2.) " It 

 is the consumers of products or services who would ultimately 

 lose by the advantage gained by the industries whose wages 

 were nominally raised, and not the capitalists and employers 

 as such who directly were obliged to advance the nominal wages." 

 And again, we are diametrically opposed in relation to the 

 following observations of Mr. Gunton's, with which I am 

 completely in accord. (3) " That nothing can improve the 

 social condition of the masses, whether it raises the nominal 

 wages or not, which does not increase the general rate of real 

 wages (i.e., purchasing power) the degree of tvhich may be 

 universally taken as the accurate measure of social progress," 

 and " there are no economic means by which the material 

 condition of the masses can be improved which do not tend 

 to increase the aggregate production of wealth per capita." 

 And these differences between us — as regards the means by 

 which alone the condition of the masses can be improved — are 

 finally summarised by me in the statement: "Invention, 

 increasing command over the forces of nature, can alone 

 accomplish this. Schemes of distribution and strikes for 

 higher nominal wages must end in failure and disappointment, 

 so far as the great masses of men are concerned." 



* n opposition to these three statements Mr. Ogilvy makes 

 the following observations, to all of which I am sorry'to give 

 a categorical No ! 



(1) That " No increase of production can improve the 

 condition of the masses unless accompanied bv an increase of 

 nominal wages." 



(*) " In the primary industries, that is those concerned in 



extracting or producing the raw materials of wealth from the 



and (as in agriculture and mining), every increase of wages 



mil come out of the rent ;" and again, " Every department of 



industry (including carriers by sea and land) which is 



