This is an advantage in a social, as well as an individual point of view.
We see that men are constantly in quest of a fixed and stable position, and that there is an incessant effort to diminish and circumscribe on all sides the element of uncertainty. Where two men participate in a common risk, this risk, having a substantive existence, cannot be annihilated; but the tendency is for one of [p363] them to take that risk upon himself. If the capitalist undertakes the risk, the labourer’s remuneration is fixed under the name of wages. If the labourer runs the chances of profit or loss, then the remuneration of the capitalist is fixed under the name of interest.
And as capital is nothing else than human services, we may say that capital and labour are two words which in reality express one and the same idea; and, consequently, the same thing may be said of interest and wages. Thus, where false science never fails to find antagonism, true science ever finds identity.
Considered, then, with reference to their origin, nature, and form, wages have in them nothing degrading or humiliating any more than interest has. Both constitute the return for present and anterior labour derived from the results of a common enterprise. Only it almost always happens that one of the two associates agrees to take upon himself the risk. If it be the present labour which claims a uniform remuneration, the chances of profit are given up in consideration of wages. If it be the anterior labour which claims a fixed return, the capitalist gives up his eventual chance of profits for a determinate rate of interest.
For my own part, I am convinced that this new stipulation which is ingrafted on the primitive form of association, far from destroying it, improves and perfects it. I have no doubt of this, when I consider that such a stipulation takes its rise from a felt want, from the natural desire of all men for stability; and, moreover, that it satisfies all parties, without injury, but, on the contrary, by serving the interests of the public.
Modern reformers, who, under pretence of having invented association, desire to bring it back to its primitive and rudimentary forms, ought to tell us in what respect these fixed bargains are opposed to justice or equity, in what respect they are prejudicial to progress, and on what principle they wish to interdict them. They ought also to tell us why, if such stipulations bear the stamp of barbarism, they are constantly and more and more mixed up with that association which is represented as the perfection of human society.
In my opinion, such stipulations are among the most marvellous manifestations, as they are among the most powerful springs, of progress. They are at once the perfection and reward of a past and very ancient civilisation, and the starting-point of a new and unlimited career of future civilisation. Had society adhered to that primitive form of association which saddles all the parties interested with a share of the risks of an enterprise, ninety-nine [p364] out of every hundred of such enterprises never would have been undertaken. The man who at the present day participates in a score of enterprises would have been tied down for ever to one. Unity of design and of will would have been wanting in all commercial operations; and mankind would never have tasted that precious good which is perhaps the source of genius—stability.
The wages-system [salariat], then, takes its rise in a natural and indestructible tendency. Observe, however, that it satisfies men’s desires but imperfectly. It renders the remuneration of workmen more uniform, more equal, and brings it nearer to an average; but there is one thing which it cannot do, and which their admission to a participation in profits and risks could not accomplish, namely, to ensure them employment.
And here I cannot help remarking how powerful the feeling is to which I have made reference throughout the whole of this chapter, and the very existence of which our modern reformers do not seem even to suspect,—I mean men’s aversion to uncertainty. It is exactly this very feeling which has made it so easy for Socialist declaimers to create such a hatred on the part of the working classes to receive their remuneration in the shape of wages.
We can conceive three phases in the condition of the labourer: the predominance of uncertainty; the predominance of stability; and an intermediate state, from which uncertainty is partly excluded, but not sufficiently so to give place to fixity and stability.