Year: 1867

taXatlon tnan any OGuer naeiou wv :.
is now staggering towards ruin in patriotic
endeavor to bear up under its enormous
weight, The effect of it is most apparent
in the starnation in all branches of produc~
tive industry, and the labor strikes gong
on all around, notwithstanding that the la
bor market is overstocked with idle hands.
Commissioner Wells, who was employed by
the Government to collect information IN
relation to the industrial and commercial
interests Of the country, and report system
of taxation for raising revenue, gave 1t as
his opinion that the rate of wages for all
kinds of labor had advanced sixty-two per
! cent. since 1860, and the price of commodities
had advanced ninety per cent. IN the same
time. Prof Amasa Walker, OF Amherst Col
leoe. in a recent lecture in Boston, expressed
the opinion that the price of labor had ad-
yanced fifty per cent, while that of commod-
tiles had advanced one hundred per cent.
He called attention also to the fact that
while the cost of commodities had doubled,
the rate of interest on money remained un-
changed, from which fact he argued that
the prevailing high prices are a disadvant>
age Of fifty per cent. to the capitalists. We
may add that thu laboring class are subjected
to the same disadvantage Of fifty per cent
on account of the cost of living being in'
creased one hundred per cent, while their
wages have been increased only ffty per
cent. And here we discover the cause Of
the labor strikes. 1t is the effort of the
workingmen to obtain an increase of wages,
so as to overcome a portion of the fifty per,
cent. disadvantage they are laboring under,
and enable them to live as we'll now on their
wages as they have been accustomed to In
former times But it is easy to see that
under the circumstances the capitalists cans
not employ them at increased wages, because
they are subject to the same disadvantage
arising from an increase in the cost of the
commodities they would have to consume in
the employment of labor. 1t is impossible,
therefore, for the capitalist to expeud more
for wages as well as for materials consumed
in the manufacture Of the goods upon which
he is engaged. Already such manufacturing
operations have been discontinued from this
cause, to such an extent that large number
of workingmen are thrown out of employ
ment Capital is thus diverted from the in
dustrial pursuits and thrown upon tho loan
market, which accounts for the fact stated
above that the rate of interest had not In
creased as everything else had.


The position Of the capitalists, however,
is much better than that Of the wOrkingmen,
because the latter is compelled to sell his
labor 10 get a living and must therefore
take such price as he can get, however small,
while the former has his choice of invest
ments, and when the high prices of either
L L l l. i .
his making a profit in manufacturing pur>
suits, he may engage in trade, or loan his
money, or even let it lie idle. Having this
advantage, it is quite apparent, that he cans
not be forced to employ workingmen at
present rates, much less at an advance, and
hence the futiliry of labor strikes at such a
time. The evils Of the strike must fall prin-
eipally upon the laborer tbecause he must
work in order that he may live, while the
capitalist knows no such necessity. These
influences operate less injurously 10 the in,
terest of wOrkingmcn on the Pacific coast
than in the EisterH States, because the cost
Of living has not increased here as at the East.
Wages have not materially changed here
since 1860, and the cost Of Ewing has prob
ably decreased, owing to the increased sup>
ply of breadstufs prodnced here, and other
causes, without any corresponding increase
in demand. Consequently the wurkingmen
are more independent and some classes may
perhaps secure an increase Of wages, because
Of the increasing demand for certain kinds
of skilled labor.


The question as TO the proper remedy for
this disturbance of the relations of capital
and labor, is one that interests the people of
the Atlantic States more than it does those
| of the Pacific, because the evils resulting
from it are greater there than here. But
still it is an important one to US, because if
the great increase in the price Of commod-
tiles bad not taken place, the cost of living
would be much less than it is, and conse>
quently the profits of both labor and capital
would have been much greater than they
have been, or now are. The greater profit
of labor and capital would have had the
effect to increase our manufactures, and draw
large population from less favored regions,
as well as capital, to develop our great re-
sources and increase our general prosperity.
From the premises existing as we have
enumerated them in this article, we deduce
the conclusion that, as the rates of wages
cannot be increased, the high price of com
modities must be reduced. The high price
Of commodities is caused by heavy taxation
imposed both upon imports and the products
of labor. Between FIVE and six hundred
millions arc paid each year in taxes by the
people Of the United States. The value of
the annual products Of labor is estimated at
about $4,000, 100000, consequently the tax
amounts to about twenty per cent. of the
gross product, which of course swallowe up
all the profits If not something more. No
people in the world can continue for any
length of time to pay twenty per cent.
tax of all the labor aud capital in the country.
This enormous tax is raised to support the
government and pay the interest on the
National debt and portion of the principal.
How to reduce this taxation one-half is the
great question of the day, and it may we'll
challenge the attention not only of our states,
men, but Of the whole people. Let all there