The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1889-05-18
VOLUME XIV
What Determines Wages.
Cincinnati ENQUIRER.


the logic which mislead and deceive
those who eat their bread by the
sweat of their brow. The same
causes will produce similar results.
If protection (so-called) in the Uni
ted States gives to labor larger re-
ward, it would do the same in Eng
lang, France, Germany and all other
Nations. Labor is much better paid
in free trade England than in any
other State in Europe where high
tariff exists. In Germany, which
maintains the highest rate of duties,
labor receives the poorest pay. Eng
land changed her policy from pro
lection to free trade in 1916, and
since then wages have doubled in
amount and the cost Of living is less
than one-half what it was. The
known facts explode the theory. 1t
would be unfair to claim that the
repeal of the tariff laws in England
was the only reason for the improved
condition of the working classes, or
that the larger wages paid in Eng
land than in Germany, France, Bel
GUM or Italy were solely because of
her free trade We insist that the
tariff is an insignificant factor in de-
termining wages anywhere. When
duties are imposed on the necessar-
les of life to the extent of the tax
they are discount on wages. There
are many elements which go to in
crease or diminish the wages of la
Dor, but the tariff is not one of them,
or it's influence is so small as to be
unworthy of consideration. The
first, and probably the most impor
tant factor in determining the COM
pensation to labor, is the demand
for it. If there is great amount of
work to be done, and the unemploy-
ed are scarce, competition occurs
among the employers of labor, and
an advance of wages is the result,
If, on the other hand, there are
twenty applicants for every vacant
place, the competition is among the
unemployed, and the lowest bidder
is successful.
Another factor having a powerful
influence is the abundance or scare
ity of money. An ample and in
creasing supply of currency imparts
life and activity to business, encour-
ages the undertaking of new enter
prises, and increases the demand for
labor and resulting advance of
wages, A sinking volume of money
paralyzes industry and throws labor
out of employment
One of the best evidences of a de-
ficiency in the volume of money is
that men engaged in enterprises en-
ploying a large number of hands,
and possessed of ample resources,
are borrowing money to carry on
business,
When manufacturers, merchants,
dealers in real estate are swarming
about the banks to get accommoda-
tions, it is evidence that there is a
deficient circulating medium, and a
financial crash may be expected, A
money panic never occurred when
there was q steadily increasing
amount of legal tenders. 1t will be
remembered that at the close of our
civil war prudent business men were
not in debt, the line of bank dis
counts was very small. When the
contraction policy was inaugurated,
business men resorted to the banks
for the money necessary to go for
ward. If manufacturers, their goods
were shrinking in commercial value.
They held on to their product, con-
tinued to negotiate loans, until The
crisis came when they could no lon
ger borrow, and their goods would
not bring cost. The accumulations
of years of prosperity were swept
away, their credit exhausted and
they were bankrupt. 1t will be re-
membered that the catastrophe did
not come until several years after the
contraction took place The suffer
ing victims of the cruel wrong were
the most enterprising and useful
men in all the business interests of
the country, and would not yield to
the inevitable until their property
and credit were gone.
Mechanics and laboring men were
well paid when money was plenty.
When the contraction came the high
ways were crowded with men seek
ing in vain for employment. Dur
ing all this time, let it not be forgot
ten, we had the same high protective
tariff. 1t did not protect nor afford
employment or wages. The tariff
did not bring prosperity, nor avert
disaster. Panics and "Black Fri
days" starvation wages will never
be found, tariff or no tariff, when the
channels of business are well sup
piled with a legal tender. If the
Government will furnish q sufficient
volume, increasing it as population
and business increase, dispense with
all banks of issue to play fast and
loose with the currency, there will
be no enforced idleness, no lack of
employment for labor at remunera-
tive wages.
A high tariff was never instituted
to protect labor and increase wages,
but to protect capital and increase
profits. 1t is now serving the pur-
poses of its enactment. When will
tho tailin1r M q rcas ka nndanoiradQ