The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-02
STANDARDS OF WAGES.

The Woodland Democrat, in a very tenn
perate and candid article discussing the
causes which establish rates of wages in
different countries, says:
II the theory thai high pro- lection insures high
wages is correct, wages paid in countries where
high dulles are imposed ought 10 be higher than
those paid in countries where the tarif Is for
revenue only, or IN countries where free trade
practically prevails. II this condition OF affairs
does not exist then the theory falls to pieces.
Let us look little more closely into the
conditions which establish and maintain
standards of wages. When two or more
countries are competing for the markets of
the world 1t makes little difference to the
wageworker whether the country he works
in is free trade or not. Manifestly there
cannot be two standards of wages in the
same country, one for workers engaged in
providing for the home market and one for
workers engaged in providing for foreign
markets. The necessity of producing goods
at low cost as any competing nation is
superior in its effect upon labor to any
measure OF protection which may be devised
for the benefit of the laborer Our contem-
porary refers to the rates of wages in
England, France and Germany as proof
that the protection policy does pot materially
hOiP ~ h4oshtdih bisbti lfltS ei inUOs tUdL
prevail in free-trade countries. These three
nations are engaged in manufacturing
finished goods for the rest of the world. A
protective tariff cannot materially affect the
rates Of labor on goods intended for markets
to which all have access on equal terms.
One nation must produce about as cheaply
as another in order to sell in competition
with other producers. Under these con-
dftl0De the atpc of lot ID
in each country by local causes. The inven-
tive genius of one country may have given II
better machinery than either OF its competi-
tors possess. In such case its better machn-
cry can keep its standard of wages higher
than the prevailing standard in the competing
countries and not lose il the markets OF the
world. Transportation is another factor In
the problem. The manufacturer has not
only to produce goods, but to convey them to
market III through the policy his Govern
ment has pursued he can get goods to mar
ket little cheaper than his foreign com
pettor he has little margin Of cost which
may be given to labor. A third factor in
the problem is abundant and cheap capital:
fourth is business methods. Others might
be enumerated, but we have given enough
to show how the rate OF wages may be a
little higher in one country than other each
of which is engaged ia supplying the mar
kets of the world. When England entered
upon its free-trade policy it was fully pre-
pared. 1t had the best machinery in the
world; it had unequaed transportation
facilities; its capital was abundant, its
business methods good, and its Government
backed up its commerce. The result was
that England took the lead In the more inn
portant industries, ans held it, while other
countries were aiming 70 reach it's industrial
standard.
The United States is not at present con-
tending for the markets OF the world. 1t is
trying to supply its own markets with sucS