The Portland daily press., 1894-06-27


State functions for all time
| There is a marked distinction based on
sound principle in government.
Paternaiism is the doing by the State of
that which can as well or better be done
4 by the individual at given time, and
| it is to be avoided. Protection is the
Improving and enlarging of the oppor-
/ tunities ofthe individual to do for himself
| whether by education, improvement of
means of communication, restriction OF
1 immigrant labor or the products of such
/ labor, where this tends to bring lower
| standard of living, or the removal of OBJ
structions to the social and economic de-
| yelopment of the masses and this is an
lndispensa BILE duty of governments.
There are evils in the existing social
| conditions which can be corrected; and
| corrected, too, by governmental action
as many have already heen corrected;
and it is the duty of educated mens to
patiently and thoughtful study problems
In the light of the life about us, with
view OF separating the true from the
raise, and clearly pointing out the true
principles on which civilization moves
| onward and upward. So
The speaker illustrated what he con-
| celved to be the errors of the old school
method of treating social and economic
| phenomena, by reference to the wage
fund theory still maintained by many
with the facts nor explains the phenome-
ma of wages. Neither does the supply
and demand theory, to whatever extent
change in the relation of supply to de-
mand may temporarily affect wages, ex-
plain why it is that the same relation OF
supply to demand in New York as in
London, should make wages nearly
double in the former city what they are
in the latter city. Even the more modern
theory that wages are what remains of
product after rent, interest and profits
are deducted, is more statement OF Sc
quences than of causes.
lnasmuch as the wages question is one
of the most important with which states
men and scholars must deal, the speaker
urged a denomination of the principles
OF political science in the light of exist
ing facts, and predicted that when this
shall be properly done-as many are al
ready doing-we should have a science
in which the point of view should not
be commodities but man; and the test
OF economic cheapness will not be the
exchangeable relations of commodities
to gold, but of commodities to labor.
From this standpoint the standard of
living OF the masses must be the lever
which not only finally determines wag-
es, but also determines the extent to
which production of wealth can goE in
any country.
Whenever a partial arrest of industries
is inaugurated by distrust of the future
whether caused by fears of revolution
airy, economic or financial legislation, by
reckless speculation and straining of
credit, or by the tendency of the human
mind to periodically swing from the ex-
treme of confidence and hope to the
depths of suspicion and despair, or by
all or part of those causes cooperating
the immediate result is to diminish
wages and consequently the demand for
products, lie, the standard of living,
and this decline Of consumption of pro-
ducts forthwith reacts on production in
all directions, and thus operates to
make, what was at first only distrust
fearful physical reality, which can be
only gradually overcome by whatever
will remove distrust and promote conf
dence in the future.
The close connection of the standard of
living and wages of the masses with in
dustrial and business progress and the
prosperity of the whole people, is a
social and economic fact which must
exert more marked influence on schol-
arly thought and natural policy than it
has in the past. if we are to have wise
solution of the problems Immediately
ahead of us.
If the standard of living of the masses,
which goes hand in hand with real
wages. is, as l firmly believe, the key to
these problems. then the true test of all
social and industrial life and tendencies,
and all social. economic and political
reforms proposed, must be their influence
on the standard of living.
Tried by this test, all schemes to de-
preciate and demoralize the cr1rrencv.-
which always in the end disturb industry
and business, react injuriously upon
labor and thus diminish real wages and
lower the standard of living-must he
be condemned as evil and only evil.
Tried by this test, any plan of in
dustrial reorganization which proposes
to substitute state for individual enter
prise and management, where production
is necessarily competitive and complex,
is unwise because such substitution
would diminish the production of wealth
and consequently the means of supply
ing mems wants-as the removal of per-
sonal exert1on would take away much of
the incentive which now exists tor each
individual to use his powers to the ut
most.
Tried by this test, any State policy is
wise which enlarges the seapacity or op-
portunities of each individual to make
the most of himself, without diminish I
ing the incentive to personal effort,
whether by education, enlightenment,
removal of artificial barriers or obstacles
or maintenance and improvement of |
means of communication.
Tried by this test, and it must be con-
coded that there is the highest wisdom in
the policy of restricting the immigration
of such classes of persons as will not AS
simulate with our civilization and adopt |
our standard of living, and who inevita-
bly, become competitors with our labor |
on lower living and wage standard
that would strongly tend to reduce
wages and injuriously affect the we'll !
being of the masses of our population |
and ultimately of the world.
And may add, if the policy of re-
stricting the immigration of, persons |
who will not adopt our higher standard |
of living and civilization. be wise-as ali |
parties and most students of this subject |
admit-Jhen as necessary adjunct OF |
this policy, it must be wise, by the same |
test, to impose upon the products of |
such labor imported from machine using |
countries, duties equivalent to the differ |
ences of wages here and in such foreign |
countries, which represent in dollars the |
difference in the standard of living, in |
order that competition in this country |
may proceed on the basis of our higher
standard of living and on the lower
standard of living abroad. For a compe- |
titive bale of goods admitted free of duty |
inevitably brings it's wages and stand |
ard of living with it; whereas the labor