Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1896-05-07
Labor u Cspital.

In these days men do not work without
the assistance Of capital. Temporarily,
therefore, the rate OF wages will depend
upon the humber Of persons desiring em-
plOyment. the number OF commodities suit
able for their use offered them by patrons
desiring their services, An increase In
the number of persons desiring employ
ment without corresponding increase In
the capital available for their payment
produces lower wages, and an increase In
the capital offered as wages. witeout cor
responding increase in the number desir-
ing employment produces higher wages.
A sudden rise In the value of commodities
produced dues not necessarily bring with
it the ability to pay higher immediate
wages, for as wages are paid out of capital
the wage-paying power Is not immediately
affected.
Labor is capital. The rate of wages
therefore cannot permanently remain be-
low the point which sufhces to supply
working population. The amount Is de.
termined, largely, by the workers them
selves. 1t workers will not undertake the
support OF families at gain rate of wages
then marriages decline, the birth rate is
reduced and the supply of workers is de-
creased. Then the competition Of employ
ers raises wages until the point is reached
when workers will marry and assume the
support of families. There ia marked
connection between the rate of increase IN
population and the wages of labor.
The capitalist receives a share of the
product increased by his capital. This
share Is called profit, or interest The
Justification of this share lies III the fact
that the capital is the result of self denial
on the part OF Its pOsseSSOr In deyOting to
productive use wealth which he might have
spent in personal qualification. Interest
Is just and its payment dictated by policy.
ChrOnOlOgically, interest or profit is a
residue. 1t consists of the balance of pro-
duction after wages are paid. II the total
amount Ut production Is fixed, the create,
the share of labor, the smaller that of cap
ital, and vice versa. The rate of profit
cannot permanently remain below that
point at which 1t Is worth the while of
possible capitalists to save rather than to
spend their wealth; for the moment tn at II
falls below that point expenditure increase
and the fund for paying wages decreases
until laborers are obliged to accept lower
wages or 20 without work. Then this re-
duction of wages increases profits, and It
thus restores the rate at which wealth will
be saved. A very high rate of profit; on
the other hand. stimulates saving, and
thus. by increasing the amount of capital
seeking to hire lab0rers, raises wages and
partially counteracts itself. The migration
of capital Is an important check upon ex-
treme variations. Yet higher wages and
higher profits are not Inconsistent. The
interests of lahOrers and capitalists are
conflicting only in the act of dividing the
produce of industry. They have common
ground In the desire to increase che produce
80 that the share of each may b larger.
The distinction between interest and
profits IS wide. One Is the share OF the
owner of capital as such. and the other Is
the share of manager, or, strictly speak
Ing, wages of superintendent. Thus pro-
fics thus usually associated with capital,
are really reward for labor, and they form
the usual path by which men pass from the
rank OF lab0rer to that capitalist.