PRACTICAL PAPERS- ABOR AND CAPITAL. 
279 
be of great service in this mc.;er. In large manufacturing 
establishments the stock may b divided into small shares and 
brought within the reach of tb * mployes so as to induce them 
by their savings to become owers in part of the capital, and 
so entitled to dividends from :e profits in addition to their 
wages. Such measures elevat i tbor and give it independence 
and also increase capital by deoting much wealth that would 
be spent to production. Andcapital thus distributed stimu¬ 
lates energy, developes talent, ?mes closer to labor, better de¬ 
fends itself and superintends oerations by having in each op¬ 
erative an interested observe of both his own and others 
work. 
2. A second circumstance 1 be considered is the ratio of 
the whole amount of capital to it. whole number of laborers , and 
the ratio of the increase of capitt to the increase of labor. This 
only recognizes the principle >efore stated, that industry is 
limited by capital, and every icrease of capital demands in¬ 
crease of labor.’ No universe rule can be given for this prop¬ 
osition. It will vary somewht, according to the circumstan¬ 
ces of each country, and the pirit of its people. Here the 
age of a country must be take into account,—its natural ad¬ 
vantages—the general occupy on of its people. In a new 
country, occupied by a thrift people, capital increases faster 
than labor, and there we see iways the highest stimulus to 
production. For all countrie f nd all people, the general prin¬ 
ciple is that there should be ioor enough to employ the capi¬ 
tal, and capital enough to eioloy the labor. A perfect bal¬ 
ance is perhaps nowhere renzed. Yet if labor and capital 
are free, the flow of each uder the law of competition to¬ 
wards an equilibrium is as mural as that of the waters of the 
ocean under the action of gmtation. In f the order of nature 
undisturbed, there is provisio for the steady increase of both 
capital and labor, in someting like a defined proportion. 
There is no danger of a surpls of either for the whole world, 
nor for any one country, if oly the passage is open for the 
outflow and inflow of either 
3. The third circumstance : be named is the certainty that 
