220 GENERAL INCREASE OF WAGES, ETC. 



B. — Tes, I think so. We could have arrived at the same 

 result had we discussed the matter fairly at the outset. 



Jones. — I am sure we could if the same arguments on both 

 sides were considered at the beginning of the dispute, and if 

 we had an opportunity to discuss on even terms our mis- 

 understandings of each other. 



A— Then both of you are of opinion that all future struggles 

 of this kind in the various industries will be settled by 

 friendly conferences rather than by lockouts or strikes. 



B- — I /ear not. The majority of men only see that the 

 strike effected a rise of wages ; and that will induce other 

 trades to follow their evil example. The misery of the thing 

 they do not consider. Nor do they perceive that the raising 

 of wages if made general would cancel all the advantages 

 gained by the first few industries who reaped the advantages 

 of the wages increase ; for the nominal increase in cost of 

 living would then actually counteract all the advantages 

 obtained by nominal increases to income. 



A. — Tou have stated that before, but I confess I do not 

 quite see how such a result comes about. 



B. — It is, however, a matter the truth of which can easily 

 be demonstrated by a simple process of reasoning, and I will 

 try to make it clear to you. First let me assume, according 

 to the modern course of exchange, that no element of the 

 gratuitous gifts of nature, as such, enters into nominal values 

 of products, and therefore the final nominal cost of all 

 products and marketable satisfactions to consumers is solely 

 determined or made up from the aggregate nominal cost of all 

 the services engaged in the work of producing them. In 

 this way it is obvious that the aggregate nominal value of all 

 wealth in exchange or satisfactions would be exactly identical 

 in nominal value to the nominal earnings of all persons 

 engaged in producing them, whatever the nature of the 

 services may be ;_ whether organising and directing skill, 

 wealth producing instruments, or the simple physical power 

 of human bone or muscle. Any addition, therefore, to the 

 nominal cost of production must correspondingly increase the 

 aggregate nominal cost of products. 



A.— I can follow you so far, although I confess I am not 

 able to see as yet why the gratuitous gifts of nature should 

 not be monopolised by some, and in this way come to be a 

 charge upon products to consumers, without forming an item 

 of expenditure of energy or capital on the part of the 

 producer. 



-B- — Your observation is a very important one ; for although 

 upon another occasion I may discuss this point with you, I 

 must ask you for the present to take it for granted, as an 



