The evening times., 1895-10-03
WANT AID WAGE PROBLEM
VeZed Question Plainly Discussed By The
Eminent Commissioner Of Labor.
Kinds and Causes Of Want and the
Iron Law of Wages Analysed
In First Paper.
iCarroll D. Wright.

| SSdtrOu u Wright
what makes the rates of wages is a
question which has called for many discus
| siOns and varied reasons 1t has not been
settled definitely, at least not definitely
enough for all economists and social scien-
lists to agree to a common basis. The old
theory was that there was wage fund out
OF which wages were paid, and that no
more could be paid in wages for services
rendered than this fund would allow, and
that the rate was determined through the
working of some economic law by the num-
Der of persons sharing in the fund.
| Those who contended that the rate of
| wages was determined by the wage fund
| were dealing with the narrower definition
| OF wages; that they represent the cOmpen-
sation for practically manual toll. or the
| remuneration of those persons who were
obliged to accept wage fixed by custom
| for the lower forms of employment. Even
| in this narrow sense the wage fund theory
| has been exploded and generally discarded
by most economists. Wages, in the broad
sensc. involve the remuneration paid for
all service, and comprehend as much what
the employer secures for his efforts as
what the employe receives for his service.
In this broad sense the wage-fund idea has
no application.
The question: What MA kes the rates Of
wages? is used in the M rrower sense referred
to, and relates to what makes the rates of
wages paid mechanics, operatives, labor
ers, and those generally receiving conipensa-
ton who do not have a full voice in the
adjustment of the ra ties for which theylabor.
The question is answered variously, but
generally il is considered that the standard
ofliving fixes the rates of wages. Those who
hold this opinion. however, are met squa rely
by others who insist that the standard of
living is fixed by the compensation received
for services rendered 1t is one Of those qucs-
tions round which reasoning can be ca rried
toalmOst any extent, and in whichcauseand
effect ma be used not only in reciprocal
sense but in a compound sense. Cause is so
oftennistakenforeff effect. and effect forcause,
that it is difficult sometimes, even by close
analysis, to distinguish the direct and le
gitimate Influence OF each. 1t is perfectly
true that in a country where the standard
of living is high, wages are high, and this
gives great force to the contention of those
who hold that the standard of living fixes
the rates of wages.
What is kIow euphemistically as 1.-THE
iron law of wages" is based On Ricardos
doctrine that the natural price of lah.r
depends on the price of the food necessaries
ard conveniences required for the support
OF the laborer. With a rise in the price Of
food and necessaries the price oflaLor " ill
rise; with fall in their price the natural
price of labor W i'll fan" In other words,
the rate OF wages paid 10 any class oflabor-
ers depends upon his absolute necessities,
he being able under the law to secure no
more than is essential for his food. raiment
and shciler. Under modern conditions
this is, indeed, an iron law. Formerly it
probably held good and it holes good to-
day to the extent that all persons, W neither
laborers or others, are questioning not
only its righteousness, but its economic
results. Ethically, every man would be |
glad TO see the iron law supplanied by a |
golden law, under which every man, en- |
ployer or empioye should render his Very |
best service-that is, the employe should |
give his very best service and the employer |
should give the very bes wages posi- ible. |
Wages are divided into two classes. real |
and nominal. Nominal wages are repre- |
sented by rates, without any other qualifi- |
cation. II a carpenter receives 81 day |
that is the nominal rate of wage. The real |
living or the purchasing power of the 81 |
which the carpenter receives for his days |
labor. 1t will at once be observed that as
prices fluctuate, with the nominal rate
remaining steady, real wages vary. Real |
wages again are affected by continuity OF |
employment, A carpenter may receive 81 |
a day while he works, but on account of |
short seasons, fluctuations in business or
other causes, may not be able to secure
labor more than ten months in the year, for
instance. His nominal wage then is re-
duced in value when the real wage is con-
sidered.
Want is of two kinds: That which repre-
sents a desire for more as the results of |
ones labor and that which represents
state of being without even the necessaries
of life. In this latter sense want may de-
termine the rates of wages paid under the
Ricar,iiandOctrine; but want whichindicates
progressive desire must be considered az
that comprehensive definition of the labor
question which means the struggle for a
higher standard of living. 1t is this strug-
gle which enters into all the phases of the
labor question of the present day, and
which is constantly changing the luxuries
OF one W Tue DeCtSSilicS Vi |
quent period. Under this kind of want the
wa ge-earner finds himself constantly Obliged
to secure for himself and his family the
comforts and the conveniences which gen
Grafton or two ago would have been con-
sidered luxuries, obta inable only by those in
receipt OF large incomes, either from business
or general wealth. This view indicates the
general soundness of the idea that the
G. orj nf living rppu1ateS tn preat x |
tent, the rates of wages paid in the various
callings.
The only animal which, by its consti-
tuition, possesses the desire or faculty to
increase its number of wants is man. An
ignorant, undeveloped man, living in
practically savage state, has but few