Year: 1877

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is greater than the supply the value of


the article rises, capitalists rush into that


business, and by increasing the supply


cause the price to decline. But in


swinging back the pendulum frequently


swings too far--more goods are pro.


duced than there is demand for, goods


fall below their cost of production, the


weakest producers 60 to the wall, and


then the equilibrium is restored.


In the article by Mr.. Wells, which


was referred to in the Tribune short


time since, it was conclusively proved


that this country had been producing


more than the people required Let US


take the case OF the railroads The i'm.


mense freight profits which existed


during the years of apparent prosperity


which followed the war led to an uD.


precedented extension of our railroad


system. New roads were built to meet,


rot present, but prospective wants and


when the collapse Of our whole inflated


busines system came, with its ensuing
shrinkage in the volume of our CONNER.
cial transactions, we had a mileage of
railroads largely in excess of the amount
of the business to be done The result was
that in their struggle to get business,
these roads transported freight for less
than it cost them, and the competition
became ruinous, each road cutting"
on freight, hoping thereby to increase
the business on its own line and so to
get along until general revival of com.
mercial activity should again bring the
volume of trade up to the capacities of
the railroads The ease of the iron
manufacturers, woolen manufacturers,
and other trades, is exactly analogous
to the case of the railroads and how
ever much one may deplore such state
of things, he who thinks such a condi.
tion of affairs can be prevented, entirely
human nature.


To continue with the railroads When
there are too many roads to make
profit on the business they are called
upon to transact, obviously one of two
things must be done-either some roads
must close up, or else ali the roads must
reduce their running expenses. Either
Of these ways must result in hardship
to the workingmen, and reduction of
wages will do the least harm since it |
will eoable each oneito earn something.
But the capitalists share with the work
rgmen they are also the first ones
called on to make the sacrifice, and in
he present case the railroads they are
he ones who have lost most, since there
s to day no other investment in this
country which pays as poorly as do
he railroads As rule they receive
nothing from their stocks.


There has been an effort through this
great strike to make it appear as
var against capital, and it has been
lgain and again assumed, and the St.
Louis Workingmen's Society have de-
Jared, that there is necessary aDtagon.
SIN between labor and capital that the
.apitalist is the laborer's worst enemy
This is an entire mistake, the laborer
.ets high wages when the capitalist
makes large profits, and otcc ve,Sa.
This rule is invarible, and the eXplana-
ion is clear. Capital is what is set
side TO assist future production. The
arger the profits the more is the amount
o set aside. Now a moments thought
viii show that, with the exception of
What is paid for land and improvements,
apital used in business is entirely con
umed in wages of labor. When, there.
ore, there is large amount of capital
here is large amount to distribute
mong laborers, and the reverse is equal
y true. If the laborers are few aud
he capital great, high wages is the Sc
ult; if, on the other hand, the laborers
re many and the capital is small, the
wages must fall. Such a thing as too
much capital there cannot be, for that
would imply that there are no more hu.
nan desires to fulfill, which is absurd.


There is another important point in
his connection. Capital is not money,
IS many enormously suppose. Capital
,rovides shelter, tools, materials, food
nd clething for workingmen and these
hings, which are the necessary requis-
tes for production, are capital, When
my laborer destroys any one of these
equisies for production he aims blow
It himself


As was clearly proved by The admira-
,le paper of Mr.. Wells, the country has
'een expending its capital in war and |,
Wasting it in ex!ravagant living and
he only way TO replace it is by saving
rom the results Of present labor some.
hing to assist future production There
nus be universal adopting of our
ocial, domestic and business habits to
he day of smaller things, aud wages aud
ialaries cannot escape general shrinkagc.
We understand how useless it is to at
,empt by mere reasoning to show that
{ is for the ultimate advantage of the
aborer to accept the present reduction
If wages there is no argument strong
enough to induce any man to give up
tangible high wages in expectation that
BY the present sacrifice his class will in