The Advocate and news., 1898-10-12

tition stands pre-eminent. Competition
is the hub of the present industrial
wheel. Work, wages and prices revolve
around it. Labor economically consid-
cred is a commodity bought and sold like
wheat. Competition exists in connection
with buying and selling. 1t exists be-
tween laborers seeking work; that Is,
seeking to buy money with labor. It
exists between employers seeking labor
ers, and between laborers and employ
ers, as when the former having labor to
sell, and the latter money, vie with each
other as to terms. Competition exists
also among merchants, brokers and cap
italists in transactions which, in indi-
rect ways, seriously affect laborers. In
case the State does not interfere with
trade and industry, competition is said
to be free; we then have absolute free
trade, domestic as well as foreign.
The Manchester or English free trade
school of economists have advocated this
system Of free competition. 1t laid great
stress upon the doctrine OF laissez faire-
let alone; that is, the State should let
labor and capital alone. It holds that the
function Of the State is to keep the peace,
protect the rights Of person and prop
erty, and allow every man to buy and
sell and get gain, or labor or loaf ad
libitum. The theory assumes that in
dustrial, like natural laws, are self-reg-
ulating and harmonious. Competition
among employers keeps wages from be-
ing too low, and among labOrers from
being too high. This counteraction pre-
serves just equilibrium between labor
and capital. To illustrate: II a single
labOrer, in competition with his fellows,
should sell his labor for less than the
standard price OF wages, competition
among employers for the extra profit
thus afforded would soon raise the Ia
borer's wages to the standard. If, on
the other hand, a laborer should get more
than the standard wages, owing to COM
petition among employers other labOrers
would Immediately compete for the extra
wages, which would again reduce them
to the standard rate.
But suppose the standard Of wages
itself should be lowered, one of two
things would happen-either employers
would reduce the price Of goods, profits
remaining the same, so that the laborer
would gain as a consumer what he lost
in wages, or profits would increase, and
this would stimulate employers to en-
large operations, which would increase
the demand for laborers, and so raise the
standard Of wages to its proper equi-
librium.
If, on the other hand, the standard
should be raised, either goods would be
dearer, profits remaining the same, so
that the laborer would lose as con-
sumner what he gained in wages, or prof
its decreasing, employers would contract
business and discharge laborers, which,
by the operation Of competition, would
soon reduce the standard to it's natural
level. These are called the Economic
HarmOnizers of free competition. They
are said to be natural industrial laws,
which only require to be let alone by the
State in order to work out for both labor
and capital the best results that are pos
sible. Free competition, therefore, is
said to be the state Of nature.
1t rewards every one in proportion to
his eXertiOns. If the laborer does not
seek his interests, his interests will seek
him.
1t demands freedom of contract and
extols the principle Of self-interest, which
1t is claimed is not selfshness, but the
natural disposition of every one to pro-
vide for himself by the free use of the
faculties God has given him.
Competition, 1t is claimed, confers
upon society benefits Of great impor-
tance. 1t keeps down prices, and pro-
notes progress; it is the mother of in
vention; 1t stimulates individual effort,