market, or in establishing artificial prices, it has only been in consequence of another clique selling for future delivery what it did not possess in common parlance of the commercial world called "selling short,". which is in itself an abnormal condition. Any effort to artificially advance prices against natural consumption alone is rarely attempted, for to have any chance of success there must be the opposing clique of "short sellers," or those who are trying to artificially depress the market. Even with the large amount of "short selling," attempts to corner the market for food products are becoming more and more infrequent, owing to the increased rapidity of transportation, which has a strong equalizing tendency. Wherever such combinations have temporarily succeeded, the result has been brought about by peculiar conditions, and in a forcible manner, before Natural Law had time to assert itself. It was like lifting a heavy weight in spite of gravitation. There is much popular misapprehension regarding the power which can be exerted by "combines" to change natural tendencies. We often see newspaper headlines like the following: "The West is holding back its grain; " or, "Chicago speculators are trying to force up the foreign markets;" or, "Wall Street has combined to get up a boom;" and many other similar announcements. The idea that the millions of farmers in the West, or that the thousands of operators in Chicago or Wall Street, could come to any general understanding in regard to a uniform policy is absurd. Instead of any such condition of unity ever existing, there are always two parties, known in common parlance as "bulls" and "bears," each of which is a balance to the other, like the two elements under consideration. The bears represent the principle of supply, and the bulls that of demand; and, as elsewhere, the higher or lower prices determine the point of equilibrium between them. So far from combination, not only each party, but every individual, is trying to excel all others in making the most correct estimate of the natural drift and tendency of existing conditions, and how to profit thereby. Of forced artificial prices for labor by labor unions, we shall refer more fully in another chapter, but in passing will suggest that the uniform dominion of these principles is not suspended in the regulation of labor values, as some theorists maintain. In the long run the value of the labor of any one is determined by its relative excellency. If artificially forced up by combination or coercion it will soon react. No matter how much we might wish it otherwise, facts are in opposition. Not only that, but upon closer study we shall find that the laboring man is as much concerned in the integrity of these laws, even if he had the power to modify them, as any other part of society. As we have before noticed, the prices of brain labor are regulated by these two elements, and it would be a violation of all analogy to claim special exception in the case of muscle. He who tries to sow the seeds of discontent in the minds of laboring men by teaching such a theory, is not their true friend. He may be actuated by an honest, though misguided sympathy, but it is none the less harmful to the laborer, and tends directly to degrade his manliness and lessen his product. The sentimentalists who expect the laboring man will be benefited by force of combination as though he were going into a combat are mistaken. Societies of laboring men might be organized for social, intellectual, and moral purposes, and be productive of great good; but when, as at present, they are constituted for the sole purpose of forcing artificial prices, they injure not only the laborer himself, but they are harmful to business and confidence, and are detrimental to society at large. A seller of labor, as of any thing else, is dependent on demand; and demand cannot be coerced. Whenever that is attempted, it shrinks back. It is like picking a quarrel with the only friend who can help us. Supply cannot afford to repel and diminish demand. It would be a poor way to induce a horse to drink, to force his head under water. Demand can be stimulated, courted, and increased by the adoption of such a policy as will promote peaceful conditions, and inspire confidence, for the present and the future. Wages then rise naturally from increased demand. Under such conditions, every employer enlarges his capacity, and as a buyer of labor has to offer higher prices to get it. The almost or quite one hundred per cent advance in average wages which has been made during the last thirty years, in spite of the immense immigration into the country, is a natural advance, and was caused by an excess of demand. If the forcing process had been continually applied during that period, the advance would have been much less. marked, for the reason that the demand would have been injured. As we have already seen that supply and demand, after adjusted by price, are always equal, it follows that an injury to one is harmful to both. It may be objected that in the case of factory towns and cities, the immobility of labor would prevent in some degree the right adjustment of wages by the law of supply and demand. This may be true temporarily; but there is no other practical adjustment possible, and therefore we have no choice. However, the practical immobility is never so great, but that in the event of any forced or continued attempt to impose artificially low prices upon labor by employers, a gradual but sure process of recovery will begin at once, and not stop until the normal rate is approximated. The emigration from such a factory or town may be gradual, but it will be continuous, until the inevitable equilibrium is reached. It is no compliment to the intelligence and manliness of laboring men to assert to the contrary. The real self-interest of the employer is also a powerful factor, for the emigration would be from his most intelligent and desirable class of help. In general, demand has grown from the cravings of primitive man for simple food and shelter, and these of the crudest character, up to the infinite and wonderfully complex variety of desire that characterizes modern civilization, and supply has paralleled its track for the entire distance. This equal progress and the enlargement of supply and demand will continue in the future, and no one can fix their limits. Until human character is evolved to that degree that unselfishness becomes the unwritten and allprevailing law, supply and demand will always be kept equal by the regulative adjustment of price. May the day be hastened when the higher law will overcome the lower, and price be a thing of the past. But when it appears it will come voluntarily, without "observation," and for the reason that it is the outer index of transformed and illumined character. |