"I think men and women are beginning to starve in Australia. Many are quite starving in the old countries and have been starving longer. That's why the workers are somewhat worse off there than here. The gold rushes gave things a lift here and raised the condition of the workers wonderfully. But the same causes that have been working in the old countries have been working here and are fast beating things down again."
"A gold rush!" exclaimed Ned. "That's the thing to make wages rise, particularly if it's a poor man's digging."
"What's that?"
"Don't you know? An alluvial field is where you can dig out gold with a pick and shovel and wash it out with a pannikin. You don't want any machines, and everybody digs for himself, or mates with other fellows, and if you want a man to do a job you've got to pay him as much as he could dig for himself in the time."
"I see. 'Poor man's digging,' you call it, eh? You don't think much of a reefing field?"
"Of course not," answered Ned, smiling at this apparent ignorance. "Reefing fields employ men, and give a market, and a few strike it, but the average man, as you call him, hasn't got a chance. It takes so much capital for sinking and pumping and crushing, and things of that sort, that companies have to be formed outside, and the miners mostly work just for wages. And when a reefing field gets old it's as bad as a coal-field or a factory town. You're just working for other people, and the bigger the dividends the more anxious they seem to be to knock wages"
"Then this is what it all amounts to. If you aren't working for yourself you're working for somebody else who pays as little as he can for as much as he can get, and rubs the dirt in, often, into the bargain."
"A man may not earn wages working for himself," answered Ned.
"You mean he may not produce for himself as much value as men around him receive in wages for working for somebody else. Of course! You might starve working on Mount Morgan or Broken Hill with a pick and pannikin, though on an alluvial your pick and pannikin would be all you needed. That's the kernel of the industrial question. Industry has passed out of the alluvial stage into the reefing. We must have machinery to work with or we may all starve in the midst of mountains of gold."
"I don't quite see how you mean."