The sun., 1919-10-02

vsstors. or lower than the rate of profit
obtainable with equal security in other
enterprises. would check the Investment
OF additional capital in that class of bust
ness or enterprise and would check pro-
duction.
"A general reduction Of the profits of
capital employed in n country to rate
substantially lower than that obtainable
in other countries would tend to cause
the people tofinvest their surplus in
como in other quantities instead Of apply
ing them in Sc'~Sown country to the
construction OF additional instruments
OF production and distribution furnish
ing productive employment to laborers
at, home.
only Way to Succeed.
"S. No redistribution OF capital or re-
adjustment of wages. earnings or profits
and no transfer to the Government Of
the instruments of production and dis
tribution can relieve the people from the
necessity Of producing not only all the
necessaries of life and luxuries con-
sumed or enjoyed by them, but also all
tho instruments of production and dis
tribution and other tangible and intangi-
Bile capital required for future use. The
production of this surplus over and
above all the necessaries of life and
luxuries consumed or enjoyed by the
people IL a necessary charge upon them.
ITO the extent that the owners of
capital expend their profits in producing
necessary instruments of production and
distribution these profits do not diminish
the amount of necessaries of life and
luxuries that can be obtained by the
laborers. The amount of necessaries Of
life and luxuries received by the L.
borers can be increased permanently at
the expense of profits Of capital only to
the extent that these profits are wasted
or consumed, and then only provided
that there is no lessening of the aggre-
gate produce of labor. A temporary
increase might, however, be obtained at
the expense of future production by
shifting labor from the production of
necessary instruments of production and
distribution to the production Of things
for present consumption.
go. A more equal division among the
people of the ownership of capital, or
of the instruments of production ard
distribution, or even their transfer to
the Government for the equal benefit Of
all the people would not of itself in
crease the supply OF necessaries of life
and luxuries available for consumption
and enjoyment and would not diminish
the labor required for their production.
Such a reapportionment or change Of
ownership would serve only as a means
Of changing the future production Of
necessaries of life and 'luxuries and OF
readjusting their apportionment among
the people.
Distribution of Capital.
ITO take away from the owners of
NoI ill h.
them and to distribute these profits
evenly among the members of the COM
munity would not increase considerably
the income of each individual, even II
the aggregate produce Of the community
could be kept up under these conditions.
To distribute evenly only that part OF
the profits of capital which is consumed
or enjoyed by the rich would not add
materially to the share Of any one. The
only way of increasing materially the
amount OF necessaries OF life and lux
uries received by the great majority cf
the people is to increase the production
Of such things.
40, The object of the labor unions
is to benefit their members by Increas-
ing their wages and improving their
working conditions. They do not seek
to enlarge the output of the work of
their members or to increase production
in general In fact, they have caused
considerable lessening of production
through strikes. shortening Of hours IF
work and diminished diligence OF t1e
workers. The increase of wages OBJ
tanned by the unions for their members
has been effected only in small degree
at the expense Of profits of capital. In
most cases the owners of capital have
increased the prices of commodities srf
ficiently to make up Tor the increased
cost OF labor, SO that the burden OF The
increase of wages has been shifted u
consumers.
The benefits obtained by each labor
union have been obtained principally
at the expense OF those members of the
community who are unable to obtain a
similar increase of their money incomes.
The burden of the increased cost of
manufactured articles and of transporta-
ton will bear heavily upon farmers
when the prices of agricultural prod
ucts fall, owing to the resumption of
normal agricultural production through
out the world. The result will be a
further withdrawal of labor from the
farms and a iessening Of agricultural
products
Labor Combination shown.
IL. OWucTS Oh puDuC utilities are
compelled by law to keep them in UNI
interrupted operation and their profits
are practically fixed by Governmental
commissions. Stringent laws have been
enacted to prohibit restraints of trade
and monopolies in all the industries
However laborers are not prohibited by
law from establishing combinations OF
monopoLes of labor to increase their
wages. although the increase of their
wages may cause an Increase of charges
or prices payable by the public, and
they are not prohibited from stopping
through concerted strikes the operation
of essential public utilities and indus
trieA although such action may be ruin
Gus to the entire community.
ITO regulate through Governmental
commissions or boards the wages OF
labor and profits OF capital in all indus