The newly immigrated Irishman, encamped in the first stable that offers, or turned out in the street after a week because he spends everything upon drink and cannot pay rent, would be a poor mill-hand. The mill-hand must, therefore, have wages enough to enable him to bring up his children to regular work; but no more, lest he should be able to get on without the wages of his children, and so make something else of them than mere working-men. Here, too, the limit, the minimum wage, is relative. When every member of the family works, the individual worker can get on with proportionately less, and the bourgeoisie has made the most of the opportunity of employing and making profitable the labour of women and children afforded by machine-work. Of course it is not in every family that every member can be set to work, and those in which the case is otherwise would be in a bad way if obliged to exist upon the minimum wage possible to a wholly employed family. Hence the usual wages form an average according to which a fully employed family gets on pretty well, and one which embraces few members able to work, pretty badly. But in the worst case, every working-man prefers surrendering the trifling luxury to which he was accustomed to not living at all; prefers a pig-pen to no roof, wears rags in preference to going naked, confines himself to a potato diet in preference to starvation. He contents himself with half-pay and the hope of better times rather than be driven into the street to perish before the eyes of the world, as so many have done who had no work whatever. This trifle, therefore, this something more than nothing, is the

minimum of wages. And if there are more workers at hand than the bourgeoisie thinks well to employ—if at the end of the battle of competition there yet remain workers who find nothing to do, they must simply starve; for the bourgeois will hardly give them work if he cannot sell the produce of their labour at a profit.

From this it is evident what the minimum of wages is. The maximum is determined by the competition of the bourgeoisie among themselves; for we have seen how they, too, must compete with each other. The bourgeois can increase his capital only in commerce and manufacture, and in both cases he needs workers. Even if he invests his capital at interest, he needs them indirectly; for without commerce and manufacture, no one would pay him interest upon his capital, no one could use it. So the bourgeois certainly needs workers, not indeed for his immediate living, for at need he could consume his capital, but as we need an article of trade or a beast of burden,—as a means of profit. The proletarian produces the goods which the bourgeois sells with advantage. When, therefore, the demand for these goods increases so that all the competing working-men are employed, and a few more might perhaps be useful, the competition among the workers falls away, and the bourgeoisie begin to compete among themselves. The capitalist in search of workmen knows very well that his profits increase as prices rise in consequence of the increased demand for his goods, and pays a trifle higher wages rather than let the whole profit escape him. He sends the butter to fetch the cheese, and getting the latter, leaves the butter ungrudgingly to the workers. So one capitalist after another goes in chase of workers, and wages rise; but only as high as the increasing demand permits. If the capitalist, who willingly sacrificed a part of his extraordinary profit, runs into danger of sacrificing any part of his ordinary average profit, he takes very good care not to pay more than average wages.

From this we can determine the average rate of wages. Under average circumstances, when neither workers nor capitalists have reason to compete, especially among themselves, when there are just as many workers at hand as can be employed in producing

precisely the goods that are demanded, wages stand a little above the minimum. How far they rise above the minimum will depend upon the average needs and the grade of civilisation of the workers. If the workers are accustomed to eat meat several times in the week, the capitalists must reconcile themselves to paying wages enough to make this food attainable, not less, because the workers are not competing among themselves and have no occasion to content themselves with less; not more, because the capitalists, in the absence of competition among themselves, have no occasion to attract working-men by extraordinary favours. This standard of the average needs and the average civilisation of the workers has become very complicated by reason of the complications of English industry, and is different for different sorts of workers, as has been pointed out. Most industrial occupations demand a certain skill and regularity, and for these qualities which involve a certain grade of civilisation, the rate of wages must be such as to induce the worker to acquire such skill and subject himself to such regularity. Hence it is that the average wages of industrial workers are higher than those of mere porters, day labourers, etc., higher especially than those of agricultural labourers, a fact to which the additional cost of the necessities of life in cities contributes somewhat. In other words, the worker is, in law and in fact, the slave of the property-holding class, so effectually a slave that he is sold like a piece of goods, rises and falls in value like a commodity. If the demand for workers increases, the price of workers rises; if it falls, their price falls. If it falls so greatly that a number of them become unsaleable, if they are left in stock, they are simply left idle; and as they cannot live upon that, they die of starvation. For, to speak in the words of the economists, the expense incurred in maintaining them would not be reproduced, would be money thrown away, and to this end no man advances capital; and, so far, Malthus was perfectly right in his theory of population. The only difference as compared with the old, outspoken slavery is this, that the worker of to-day seems to be free because he is not sold once for all, but piecemeal by the day, the week, the year, and because no

one owner sells him to another, but he is forced to sell himself in this way instead, being the slave of no particular person, but of the whole property-holding class. For him the matter is unchanged at bottom, and if this semblance of liberty necessarily gives him some real freedom on the one hand, it entails on the other the disadvantage that no one guarantees him a subsistence, he is in danger of being repudiated at any moment by his master, the bourgeoisie, and left to die of starvation, if the bourgeoisie ceases to have an interest in his employment, his existence. The bourgeoisie, on the other hand, is far better off under the present arrangement than under the old slave system; it can dismiss its employees at discretion without sacrificing invested capital, and gets its work done much more cheaply than is possible with slave labour, as Adam Smith comfortingly pointed out. [{80}]

Hence it follows, too, that Adam Smith was perfectly right in making the assertion: “That the demand for men, like that for any other commodity, necessarily regulates the production of men, quickens it when it goes on too slowly, and stops it when it advances too fast.” Just as in the case of any other commodity! If there are too few labourers at hand, prices, i.e. wages, rise, the workers are more prosperous, marriages multiply, more children are born and more live to grow up, until a sufficient number of labourers has been secured. If there are too many on hand, prices fall, want of work, poverty, and starvation, and consequent diseases arise, and the “surplus population” is put out of the way. And Malthus, who carried the foregoing proposition of Smith farther, was also right, in his way, in asserting that there are always more

people on hand than can be maintained from the available means of subsistence. Surplus population is engendered rather by the competition of the workers among themselves, which forces each separate worker to labour as much each day as his strength can possibly admit. If a manufacturer can employ ten hands nine hours daily, he can employ nine if each works ten hours, and the tenth goes hungry. And if a manufacturer can force the nine hands to work an extra hour daily for the same wages by threatening to discharge them at a time when the demand for hands is not very great, he discharges the tenth and saves so much wages. This is the process on a small scale, which goes on in a nation on a large one. The productiveness of each hand raised to the highest pitch by the competition of the workers among themselves, the division of labour, the introduction of machinery, the subjugation of the forces of nature, deprive a multitude of workers of bread. These starving workers are then removed from the market, they can buy nothing, and the quantity of articles of consumption previously required by them is no longer in demand, need no longer be produced; the workers previously employed in producing them are therefore driven out of work, and are also removed from the market, and so it goes on, always the same old round, or rather, so it would go if other circumstances did not intervene. The introduction of the industrial forces already referred to for increasing production leads, in the course of time, to a reduction of prices of the articles produced and to consequent increased consumption, so that a large part of the displaced workers finally, after long suffering, find work again. If, in addition to this, the conquest of foreign markets constantly and rapidly increases the demand for manufactured goods, as has been the case in England during the past sixty years, the demand for hands increases, and, in proportion to it, the population. Thus, instead of diminishing, the population of the British Empire has increased with extraordinary rapidity, and is still increasing. Yet, in spite of the extension of industry, in spite of the demand for working-men which, in general, has increased, there is, according to the confession of all the official political parties (Tory, Whig,

and Radical), permanent surplus, superfluous population; the competition among the workers is constantly greater than the competition to secure workers.

Whence comes this incongruity? It lies in the nature of industrial competition and the commercial crises which arise from them. In the present unregulated production and distribution of the means of subsistence, which is carried on not directly for the sake of supplying needs, but for profit, in the system under which every one works for himself to enrich himself, disturbances inevitably arise at every moment. For example, England supplies a number of countries with most diverse goods. Now, although the manufacturer may know how much of each article is consumed in each country annually, he cannot know how much is on hand at every given moment, much less can he know how much his competitors export thither. He can only draw most uncertain inferences from the perpetual fluctuations in prices, as to the quantities on hand and the needs of the moment. He must trust to luck in exporting his goods. Everything is done blindly, as guess-work, more or less at the mercy of accident. Upon the slightest favourable report, each one exports what he can, and before long such a market is glutted, sales stop, capital remains inactive, prices fall, and English manufacture has no further employment for its hands. In the beginning of the development of manufacture, these checks were limited to single branches and single markets; but the centralising tendency of competition which drives the hands thrown out of one branch into such other branches as are most easily accessible, and transfers the goods which cannot be disposed of in one market to other markets, has gradually brought the single minor crises nearer together and united them into one periodically recurring crisis. Such a crisis usually recurs once in five years after a brief period of activity and general prosperity; the home market, like all foreign ones, is glutted with English goods, which it can only slowly absorb, the industrial movement comes to a standstill in almost every branch, the small manufacturers and merchants who cannot survive a prolonged inactivity of their invested capital fail, the larger ones suspend business during the