Silver And Wages

How will the wages of labor be affected by the depreciation of money and the corresponding rise in the price of commodities which, it is universally conceded, will be the effect of the unrestricted coinage of silver money? An intelligent answer to this question involves not only the study of the effect of the rise and fall of the purchasing power of money upon the remuneration of labor in the past, the 8. discussion of the present conditions of labor and its future prospects under the existing gold standard. We are met by the contention that the purchasing power of wages has increased under a gold standard - that the decline in the price of the necessaries of life has been greater than the decline in the price of labor. In some favored localities and in some f avored trades this is true, not on account of the gold standard, however, but by virtue of the thorough organization oí of laboring men. But we are not to estímate the average rate of wages by the nominal wages paid to those employed. Because 100 men flnd employment at any particular trade at $2 per diem, we cannot justly assume, without further investigation, that $2 per diem is the real rate of wages for that trade. We must take into consideration all of the men entering into competition for that $2. If there are another 100 idle men seeMng employment in the same trade then the real rate is but $1 per day. The real rate of wages at any particular time or place can be obtained only by dividing the wage fund - the gross amount paid to labor annually - by the number of men competing for employment. Measured in this way the rate of wages was never so low in the United States as at the present time. And there is the further fact to consider that as the appreciation of the gold standard of valué continúes thia rate must become still lower and one by one those who are now at work will be transfered to the army of the unemployed, an army that at the present time is estimated to have in it ranks one-third of the men who are under the necessity of earning a livelihood by manual labor. In spite of the salutary effect of labor organizations the wages of all labor - excepting the official vvhose compensation is fixed by - are flxeiï by the law of supply and demand, fixed by competition. It followers then that the condition of business will have an important influence upon the price of labor. All concede that the free coinage of silver, by decreasing the purchasing power of money, will cause a rise in the price of commodities measured by that money. The industrial history of this country affords conclusive proof that rising prices will stimulate all lines of business. Prosperous business will giiarantee full employment to labor at goodwagess. Wben money is advancing in value and commodities are falling men hesitate to invest their money in business enterprises and as a consequence the demand for labor slackens. This has been the history of every period of declining prices. On the other hand, when commodities are advancing and money is declining it is more profitable to invest capital in productive industry than to hold it in a shape that is declining in value like money. Again, every one is anxious to secure the profits which spring from rising prices. And the activity thus stimulated gives full employment to labor in the production of wealth. Add to the price of the farmer's producís and you add to his capacity to purchase from the merchant. The merchant must in turn purchase from the manufacturer and the manufacturer to meet the increased demand must give more employment to labor. More employment means fewer idle men. Decrease the number of idle men and you increase the opportunity for those employed to secure a larger compensation for their labor. Any one can understand that with ten jobs for nine men the opportunity for labor to demand a fair price will be greater then when there are ten men for nine jobs. With these facts in view the assertion that with free coinage labor will be paid the present scale of wages in money of less purchasing power than that now in use is clearly seen to be a ridiculous falsehood. We have on the one side of this financial controversy the interests of the producing masses - they who créate the wealth of the country - and their interests lie in the direction of cheaper money and dearer commodities. Upon the other side are marshalled the nonproducing classes - they who live by tribute levied upon the production of others - their interests will be best served by dear money and cheap commodities. The interest of the working man in this struggle obviously lies on the side of the producer.