New-York tribune., 1922-12-31

nent loss Tor the future.
The wage Garner Is more concerned
With the price Of his commodity than
With the total volume Of his sales. He
would rather suffer unemployment than
accept a lower wage. The loss OF en-
ploymsnt he eoDesiveE Of as temporary;
the loss Of his established wage he be-
hsves Is . permanent loss. II one can
not retain n wage once achieved what
hope Is there Of recovering it7 Our
recent experiences on the railroads. in
mining and in the textile Industry
illuEtruts the point.
skilled labor holds most tenSeiously
20 money wage once achieved. Skilled
labor has more reserve power. its psy-
ehslory it controlled more powerfully
By established standards. Yet sem.-
skilled labor has shown unexpected
tsnaGity. This tenRcity has been REIN
forced by the absence Of immigration.
Immigrant labor readily accepts
loser wage, for u Is accustomed 20 a
lower wage. Yet immigration Affects
chiefly unsklled labor, and We have
already noted that the unskilled wage
lsVel was thoroughly debated even
without any large immigration. Il was
the semi-skllled and skilled wage level
that failed 10 come down. There was
no large immigration 70 help push II
down aud unemployment failed 20
do 80.
Tho stage is thus set for al unpree-
sdtnted struggle over the existing
wage level. The unprecedented nature
Of this struggle will become clear from
a comparison with the post Civil Wa
dsyf. The situation then WAS utterly
unlike the present. Dgring the war
period wages rose but slightly COM
pared 20 the rise in prices. Mitchell
shows that BY January, 1855, wages
had inereASd only % per cent, while
prices had increased las per cent.
Thus IN spite of the heavy fall in prices
from January, 1855 10 July, 1865, the
margin between wages and selling
pr,ess continued 10 be favorable 90 en-
ployeft Not ur.il the year 1863 did
,hs wage level definitely overtake the
price level
This no doubt accounts In large part
for the fact that here We have, 90 far
. AZ ! kgow, the only outstanding excep-
tlon ~ the direct correlation thE. regu.
lerly obtains between the movement Of
psfccs aud tho business cycle. IL wa.
not until after the panic ~ 1873 thst
the uaFs level had reached poin,
which proved an obstacle 20 prosperity
From 1879 70 1897 the struggle was on
against a wage level too high for in
duBtry 90 sustain. 10 is 10 be note,
that Il was "a Tbs period that wage
ft1uatlcianS md the greatest gains Y
real wages. Money wages for the mos
part were holding their own ard rea
wages wrre rising, but the huy.n.
power OF labor as q class was low. be
cause q widespread Unemployment
particularly In the '4os and sos.
In the very period when labor wa
making It's greatest gains Ia real wage
Il was suffering the most in buyin.
power. In fact, IL may be said tha
an :rdex OF real wages correia.es In
YerSely with an index Of the buyin!
power Of labor as q clAss This Is du,
TO the fact that when real wages sr-
highest unemployment Is great-st. Al
labor cannot be employed when wage
srcsed the marginal productivity Of
the entire body Of wage-esrneyS. To b
sure no wage level can be higher thar
the marginal product, bat !. Is osvi0u'
that the marginal productivity Of 20.
6oo, 900 men would be higher thar th'
marginal productivity % l2.0o0,0ao ii
similar situation. Thus unemploy
ment makes possible higher wages foi
those employed, or, IN other words ab
normally high wages cannot Be pais
without q considerable voluae Of un
employment
Wage Struggle
Thus the ienE-run drop IN prlea r.
suited IN . continuous struggle ever
the wage level, which became espe.
cisiiy severe during the heavy decline
In prices IN the 10's and a0's Tks
stPuggle was. however. Affected BY two
factors which no longer PreyHil-gn-
rmited Immigration On The ore hand
ard free lard on the other. Both en-
Tioyer and employee had an avenue Of
IT, Hna|rr "a TOD -