The San Francisco call., 1896-07-26
LABOR AND CAPITAL.

The natural relation between capital, so
called, and labor, so called, is one of inter-
dependence, and in ratio to the mainte-
nance of this relation above the influence
of greed and avarice are all concerned
benefited by intimate association. Cap
ital is money, not wealth, but it may be-
come a wealth producer in conjunction
with labor. Labor is capital, not money
but skill and Drawn, and it may become a
wealth producer in conjunction with
money, but neither can produce wealth in
the activities of life independent of the
other. Labor and capital (money in en-
ployment) are co-workers for mutual ad-
vantage, and whatever hinders one re-
tards the other. There is no difference in
the ultimate purpose between money that
buys raw material and labor that trans
forms it into finished product, but that
which accrues between labor's income and
expenditure is labor's wealth, and that
which accrues to capital after paying all
cost between raw material and the final
income from finished product is capital
lists wealth. But il the division OF the
accruing wealth is not in harmony with
the importance of each factor in the oper-
alton. an injustice is done.
Capital copartnerships are for the pur-
pose of increasing the volume of produc-
ton and reducing the cost of it, and as
the tendency of capital thus combined is
to grow greedy and selfish, labor combines
for self-protection, but these combines do
not, or rather should not, impair the
ethical or business force of their natural
relations. 1t has been demonstrated over
and over again that neither one can be
crippled without the other participating
in the i'll effects of the injury. II capital
is attacked 1t retires to a place of safety.
If labor is driven from its occupation its
skill and Drawn rusts in idleness. There
fore when capital is attacked labor should
defend 1t, and when labor is being driven
from it's occupation capital should come
to its rescue. When this is done there is
recognition of their interdependence and
the final outcome of their standing to-
gether is individual prosperity, although
meanwhile there may be very much more
to discourage than to encourage.
To illustrate the importance of capital
and labor recognizing their interdepend-
ence we need but to call attention to the
industrial enterprises OF California, where
it is the underlying principle Of the bond
which holds capital and labor together in
mutual good-feIlowship- When the Will
son-Gorman tariff act became operative it
well nigh destroyed capitals opportunity
to secure remuneration for its employ
ment, TO say nothing of the hazardous
risks it was obliged to take. Neverthe-
less, capital had faith in the good sense
and in the spirit of right and justice in
the people, and it continued the work of
converting raw material into finished
products. which, in turn, maintained its
co-worker, labor, in active employment at
the former schedule OF wages. Capital
thus shielded labor and will continue to
shield it until industries are relieved by
the substitution of O more friendly law
for the existing tariff act, when labor will
need no more defense. This has been the
relation between capital and labor in Cali.
fornia ever since the heavy hand OF the
Democratic tariff act was laid upon the
country's industries.
And yet, in the face of these facts.
emissaries of the Democratic party are
trying to persuade this very labor to
break the bonds of faith and gratitude
with the capital that has tided 1t over
these years of hard times ana join in an
attack upon it. Such impudence is
amazing. Besides, to make such over
lures to labor is to reflect upon its in
tegrity and to hold it up as the represen-
tative of human degradation. But the
labor of California is not made of that
kind OF material. 1t realizes its natural
relation to its converter, capital, and it
knows that II it would have a wider margin
between its income and its expenditure it
must come from increases in income,
which it cannot hope TO have unless capi-
tai is protected against its low-wage COM
petitors in China. Japan and Europe. The
labor of California will vote as 1t works
for self-nraae rvatiou