The morning times., 1896-08-02
EMPLOYERS AND THE EMPLOYED.

EMPLOYERS AND THE EMPLOYED
II has been said that every thought in
wolves "a whole system OF thought, and 1t
may be added that when system Is
built upon an erroneous concept the whole
superstructure is yitiated, however SYM
metrical it may appear. Economic SCI
ence. ike every other, must have its roots
In simple facts OF human experience, and
So long US complex facts are moi mistaken
for simple ones there is no reason why
conclusions derived from economic phe
nenena should not lie as reliable as those
derived from any other.
one of the errors that dominated and
perplexed economic thought for many years
grew out OF misconceptiOn OF the source
OF wages From this error was developed
"a theory OF what was called the wages
fund" The size OF this fund and the
number OF laborers seeking employment
determined rates OF wages.
To the careless observer nothing seemed
more certain and simple than the PROPOSE
ton that the wages of hired Men are paid
out of n fund set apart FOR them by cap
itaIist enplo yers.
To the unscientific mind there is no anal
ogy between hiring and trading Industry
carried on by hiring is popularity conceived
to consist OF but three simple parts: The
NpH'i az ~ WIN wv '''''S 49, " -
the payment for the work done Viewed
IN TINS narrow way the Hidk niieeh. ui''iii
of Industrial processes can be seen only
In little sections, as one sees an object
,nro,y, . ucroscose so large that only an
infinitesiinal part OF it can be brought
within tine field of vision.
I-n,it ,,,te recent times professional
economists themselves failed to grasp the
significance of the idea, in its fulmess, that
,n,, ,,, ,.,,sn, Of xv.pesis INIT the ret urn ola
yaI,,, recejvcd ALTERING in no important
s.ns. econo,nIca,ly from a rayment to a
|,rner for wheat. Even down to John
SET Niu,s time the theory of the wage
r,nd beId SWAY. IL seemed so simple, no
ora questioned II.
IToder this theory, having given the
amonot OF captal in a country devoted to
hir;nv n,ap. and the number Of me II seeking
emuovment. all that was necessary to as.
certain their respective wages, was a
short oneration in long division One quite
recent. writer. seemingly IN utter ignora nee
~ the fact that the wages nd theory had
heen explo,,e,l and repudiated by orthordox
econonists nrocred. to demolish Henry
G.orpa's theory of wages in words to this
effect.
ar 90 anpIes he distributed equally
anon g ten boys. they will get welve apples
apiece: but IL there he twelve boys. they
wri,er tbc problem OF wages is as "simple
as railing OFF a log
,.,s,o,- ru,opv OF WARS
Lo>" IN
From such NAIVE .ieois % '., ,;
d siihPie uouue.'o- - ,','-S.,,,, ,a,-,rs
creased Dy any law which speeiaiis i"Nois
the empioyihe capi'alIs's' wLe'eos NIe 80, -
De chapieu 10 eni"tee sne s-.s.i's'.
ms tneory Oh Wages Is no" soii ,.
and although repudia'eu py pIoiess'o. -,
economists senihan.s VI 'he me-
crop out IN tne winnings Oh seihe VIM no 'e
not logic enough TO trace idise ''"e'"
sions 10 reJeceed premises
AS early as 1911 iroI. Stdhcs
announced the uoctrlhe 'idt 'he "ases
u workiDg man are uiuinaeis eoiu.i
dent with what ne proouces' "i'ei ".
deduction OF rent taxes, anu tue ih'eieS'
OF capital. ,,,,.
I'D lo'o' froi. idi.is =, We,
wages are III an! pih'o'otn.ai -,
the subject pau OUT vi INC pi0u1e' y,
present INDUSTRY ,.,-.
Later Oh, iroi. d d Si"ih sau- An9
law or wages Is as we sha.i SUI
placed I'D new anu e,eai nsA., .,.n
one apprenenus, III i's iuii rtaiI"s' .he
principle thas tie wage OF ia"oi Is '"e
market vaiue OF lts Piouuc'-
frof. clark saio this some sea,s a..e'
the publication oil Ifogfess anu loNei's'
which ne mad read anu III inns .onhes ..I
he said that Georges deihopstra'ioii ., .ie
proposition that wages are ho' vi !" l.o,,i
capital was as Gear Us any ueinohs'i a'ioh
in mathematics.
Notwithstanding an tiiis anu ',iuch ii.oie
to the same erect from professionals e'oi
ofnlsts' wehaNc iau eos" - gu -
all sorts OF writers ueinoDs'ia.ns " VIZ
apparent satisfaction Vi uie iu','"iS '"s
atsur'hty OF hepfy "eoi "a
wages.
For instance roi' huAies' VIC. 80
reputation III o.heL INT Vi .mo a., ,n,s
suii.o'en' " So, an,i,,.a ..Cani,aI the
Mother of Wages, In this he told US that
tho milk stored l,y nature in the mothers
hreast; for the susfeuance of her infant was
c.nta,. and that the labor OF the infa mt in
apnrnnriat;ne the milk, was the means OF
earring nrin,itiye wa ses.
Mad the nrofessor found IL suitable to lis
nurnose of mnrnifying the importance of
c.nitaI be might have extended his gilt
tarn,- venaraI;,ies,. 90 as 10 include within
,ha ca, .,oryof canitaI-not only the milk on
,,.,,,o,, tha child denended hut also The
49, "a ere rast =, n,anrina on whom
the mill dencndea. together with the
49,, ,ho Gun ,he univarse and Herbert
s,anosr.s ..JTnrnnTvahlew
n, S,,urs. ~ g rot f,;fticu,t IN prove that