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Les diagrammes suivants illustrent la mdthode. 1 2 3 32 X 1 2 3 4 5 6 h %- ^ If i**/i ETeRODOx Economics vs.. . • . Orthodox Profits A PRELIMINARY PAMPHLET. .''^i;"**- l'>N^^; i. A A AAA ''The economic structure of society, i. e. the method of production and distribution of the products of labor, is and always has been, the basis upon which everything else rests." — (Students Marx.) "Howbeit that is not first which is spiritual, but that which is natural, then that which is spiritual." —(Paul of Tarsus.) ▼ T ▼ ▼ ▼ BY HENRY B. ASHPLANT, A. T^LBOf J 00., fRINTERS, LONDON. ..^.i-i^ US . M # PREFACE. tHE purpose of the writer of the following pages is to call the attention of readers to the fact that the sum of money realized ^^ne profit m a mercantile transaction is actually an absorption of a fellow busmess man's floating capital, and does not represent an increase m the wealth of society, but an ««.ar«,^ increase of the wealth of an mdividual (or nation) at the expense of society in general, and at the expense of a bankrupt fellow business man (or nation) in particular The point I wish to make clear (I may fail to make it clear m this Hmited essay) is that absolute net profit, which is ad- mittedly the goal aimed at by the business man of the 19th century. IS unreahzabU ; and that the mercantile policy which tries to realize It is responsible for mercantile and social chaos. To understand my argument, the reader must understand clearly that in using the term profit. I refer to the realization by the typical seller of a manufactured commodity of a sum of money in excess of the sum of money which was put into circulation during the process of manufacturing and marketing the same commodity. If such a sum of money is realized, where does it come from ? T. *K ^T^^ " J^^ equivalent form of the manufactured commodity. i 1 .f ?K '? '""" ""^'^^ "°"^y '°'' °^ '^"^ commodity and the sum of the floatmg money equivalent form of the commodity (circu- lating as an exchange medium) must be exactly equal. How then can the sum of money realized by a menanti/e excAan^e of fAefi„isA,d article for tts cash equivalent exceed cost ? for»nL''!ir '^ifV'" f .'^^,^'^^°'y °^ commerce, neither the manu- fectu er, the wholesale jobber, or the retail merchant, has succeeded tn selling his goods above cost. To u rstand this argumenf. the reaH*.. m.,ef »^a ..-j Clearly that :onomic analysis of this claim, the class of manufac the mdividual members (or nations) of the class who have made profit ^;. aW/«^ /A. capital of their fellows ', thus throwing the uXTo;;d ''"' '"'"^^ ^°'"^"''°" ^"^° ^»^« -'^^ o'the To a man who argues on the basis ot the success of c to lo per cent, of a c ass, Bradstreet and Dun & Co. support my argument by provmg stat.stically the failure of go to 95 per cent, of the samedLs tion ^ ^T ^"'■^'''"'^ '''P' '•'" ^'" '"^'^ pamphlet) of the wages ques- tion. My reason is. that to treat that question as thoroughly as its nature requires, the purpose of this particular pamphlet would be oDscured. I am prepared to deal with the subject "Wages" on a lu'^L'"'''?'''"' \ ''°"^*^ '"«^"' *^""' ^°^^^^^' '^^' 'f a definite sum be paid as cash wages for services embodied in the commodity he sum termed net profit must be extracted from some other source f U be reahzed by the seller of that commodity, since not more than the sum of his wages can be realized in cash from the wage receiver. .u2^} ^T^^^}"" ™^'''"^ """^ * ^*'^' ^ respectfully submit that to students of sociology a vast field of revolutionary thought is opened up. I am prepared to make the assertion that the supremacy of England ,n politics and in international finance, results from her profits acquired by absorbing universal products as the typical manufacturer and dealer in commodities, along the line suggested in this pamphlet The solution to this problem will also solve those perplexing problems of international import arising from the acquisi- tion of new territory or "markets" to suit the necessity of mercantile prqfitmongertng. That solution is the collectivist programme of the International Socialist Labor Party. The currency problem is vitally connected with the acquisition of profit. Gold and silver are com- modities, and my use of the term profit covers the net results of dealing tn gold and silver, or proceeds realized above cost of running a finance department. If circumstances permit. I will deal in future with the bimetallic or 16 to i idea, also the matters of interest and rent H. B. A. London. Ontario. Canarfa Fphnjarw « ,o«^ '.« INTRODUCTORY. tHE ashes of the heterodox exponents of God's newly discovered —but ever present— laws, have been the salt of the earth in all ages ; refreshing the roots of progress when withered by barren pro- fessionalism, and nourishing truth when crushed by the gilded heel of othodox infidelity. ^ X Socrates was poisoned by the orthodox of Athens because he agitated ignored principles; and in this 19th century the same Socrates is acknowledged as "the founder of ethical science." Jesus of Nazareth, a heterodox Jew, "Son of God," and "Light ofthe world," was crucified by orthodox churchmen nineteen cen- turies ago, for preaching unaccepted Truth. He is being crucifiedf to-day by the modern orthodox. Yet the blood of Jesus has so vitalized a sterile soil, that a wilderness of error has given birth to springs of eternal life-giving streams, long suppressed, but now as the twentieth century dawns, bubbling upwar. ut ofthe most rocky of stony places, refusing longer to be confined. Martin Luther in Germany, John Knox in Scotland, John Wesley in England, and the Puritan Fathers in America, were all heterodox in their efforts to purify a stream which "orthodox" follow- ers have again polluted. The records of progress in scientific knowledge tell the same story of heterodox devotion to truth in spite of orthodox persecution. The oft repeated story of Galileo, the heterodox astronomer : the early reception of Charles Darwin ; the social and political persecution of Karl Marx, the able German scholar, famous as one of the founders ofthe International Socialist Labor Party, all testify to the fact that God has ever chosen the heterodox soul to scale the rugged heights of progress and erect on higher levels the standard of Truth. Regarding othodox antagonism to heterodox economic adminis- tration of mercantile affairs, it is certainly true of many very worthy and well meaning victims of false teaching and good intentions, that they do not possess correct knowledge of economic laws, and conse- quently ••know not what they do" in opposing the propagation of truth, and supporting the p^rpatuation of existing criminal errors. The writer pleads for a study of ''Heterodox Economics" by all who would guard the future from the nameless horrors of bloody social strife, and revolution by physical force ; and especially commends its perusal to those who profess to adopt as their inspira- tion m practical daily relationships, a gospel which was designed by God and Jesus to regenerate and peacefully revolutionize human society. Othodox political and mercantile economics on the American Continent (in Canada and the United States, as in Europe) have demonstrated their falsity by their products ; and the pagan ante- cedents to which they owe their origin are made manifest in the fruit they bear. It is blasphemously untrue to assert that poverty is a disciplinary dispensation of Divine Providence. All efforts to instil that kind of doctrine into uninformed minds are insults to a beneficent and bounteous Deity, and a manifestation of discreditable ignorance of easily discovered and long ignored economic principles. Peace and plenty are the absolutely sure outcome of obedience in mercantile engagements to God's economic laws. Poverty is a product of economic mismanagement, reflecting discredit on the administration responsible for its presence. Jesus said nothing in denial of this truth (see Matt, xxvi., 12 ; John xii., 8). Let the reader answer to himself or herself the question, "What class m the community has control of the administration of affairs in commerce and politics?" The answer to that question wi name those who are reRnoneihlA inr *U^ ». .!•_.. . . - — J. ..^. „^^ pic3cwv;c ui poveny, ana its attendant crimes and miseries, resqlting from their incompetent It is very evident to any man or woman who once gets his or her eyes open to a correct perception of economic arithmetic, that the design of the Creator of this planet was luxury for every man; woman, and child born to inhabit it. This is demonstrated by the bounty of nature under cultivation, by the productive capacity of applied mechanics, and emphasized by the teaching of strictly business-like principles in heterodox political economy. This luxury was intended for and is absolutely possible for every individual. Not for a minority ; not for a majority ; but absolutely sure to every person who lives under a really business like and common-sense political administration. We do not live under a business like mercantile policy to-day, and orthodox beliefs in that direction have no foundation in fact. I call the attention of the civilized world to the existence in past and present orthodox mercantile practice, of an arithmetical absurd- ity and criminal error in estimating price for commercial exchange of commodities. An arithmetical error wholly ignored by all orthodox economists, politicians, financiers and statesmen ; and also so far as my research has discoveied, equally over looked by all so-called econ- omic reformers and writers outside the ranks of the International So ciahst Labor ^ariy. Regarding Socialist publications, there is certain- ly a clear per e.tion of the fact ihat profit is robbery. I do not, however discover in any literature I have read, a satisfactory analysis of the mercantile process of exchange, which demonstrates to the opponents of collective ownership of the machinery of production and distribu- tion, the economic truth that profit is really robbery from an arithmetical and purely business standpoint, independent of moral considerations, or sentimental sympathies. I have made a careful study of "Capital" by Karl Marx ; a book which I consider the worthiest and most thorough economic work published in the English language, and in that famous work I find the same absence of satisfactory arithmetical analysis regarding the economic origin of profits. Henry George's work, "Progress and Poverty," is simply foolish as an example of economic analysis. "Coins' Financial School" is 8 «l«o wholly at sea regarding the economic cause of mercantile chaos • and Herbert Spencer has failed to calculate on this arithmetical error m his treatment of socialism in the final volume of "Synthetic Philosophy," recently published. In this preliminary pamphlet I cannot attempt to elaborate the facts which (if I am permitted by circumstances) I hope to expound m a more extensive work; I cannot even outline as fully as I wish to do, the analysis I have in preparation. I can say here, however, that I do not have to say I think, or that I believe, but I say that / inow, that the arithmetical error to which I call the attention of the intelligence of the world, is positive, scientific, and immutable in its disastrous operations. It is an economic blunder sanctioned by antique orthodoxy, which controls positively the mechanism of mercantile exchange in all countries now conducting commerce on a metal currency basis ; and to ignore this fact is criminal oversight on the part of administrators in politics and commerce, since the error referred to is the long hidden basis of inevitable mercantile bank- ruptcy, social chaos, and domestic poverty. I address my thoughts to all upon whose shoulders will fall the burden of impending revolution, which, peaceably or by force will certainly readjust our social system, now bankrupt under the othodox mal-administration of our misguided forefathers and present rulers It 18 criminal to our children to drift languidly down the stream of present tendencies in commerce and politics. God has always nerved the soul of the revolutionist to drive the worshipper of false gods from the land of Canaan, and to accomplish the Divine purpose in the removal of obstinate wrong. It is the truest selfishness for the individual to assist in estab- hshing social stability and the permanence of private property in the prcduct of personal industry. The policy of our present mal-admin- istration actk/ely assaults both social stability and the security of Drivate nronertv. Tr\.Aan ;«• -....„i :_j;_:j.-_t.. ... ' JT— .f / .^ ^iu=tic3 luuiviuuauiy, roDS inUustry of mcentive, rewards cunning; and breeds social, political and religious monstrosities. A I demand a practical recognition of the catholic spirit of universal brotherhood. A true catholic spirituality is foreign to a false economic basis. Not until the economic errors, which are the concealed roots of social discord, are cast out, will true religion overcome all Protests and Nonconformities. When this is done, the ideal Catholicism of a united international brotherhood of men and women worshipping in common at the one altar will speedily culminate. Let wisdom discard a suicidal policy in time. There is nothing to fear from the Socialist Labor Party. Salt puril.c- and preserves the good, it makes only impurity smart. Let us be the "salt of the earth." When it is clearly and satisfactorily proved that God's natural bounty is backed by scientific economic administration to ensure the unfailing prosperity and social equity of all men and women, and ensures the banishment of all fear of poverty under correct political legislation ; then he can be neither a patriot nor a Christian, who would permit moral cowarcice, personal greed, selfish ambition or any religious fallacy to withhold him from the propogation of heterodox economics, and the inauguration of a peaceful, in prefer- ence to a forcible and bloody, mercantile revolution. H. B. A. HETERODOX ECONOMICS V. ORTHODOX PROFITS. .1. ^RUTH and error are terms equivalent to good and evil. All truth ^ IS good, and all that is good is true. Error is evil ; and eve y erroneous policy must necessarily produce evil results. •« A good tree cannot br.ng forth evil fruit'^ in mercantile or political pract^e If you drop the letter "o" from the word good, you have the prmcple personified in the term God. If you aid the lettered" to the word ev,l, you have the principle personified in the term Devil wome'n 1 H ' ' t "'"'"* *'^"^^^^^^^ ^" ^^^ ^-™« of men ad women ; and mercantile practice is no exception to the rule in which both "live and move and have their being." . .K^T" i' '^^ ''"'^"'"^ P'*^^ *»^ ^o"^ce of inspiration of all tru^ and good. Hades (or hell) is the dwelling place a'nd source o inspiration of all that is evil and erroneous. If there is error in mercantile and political organization, do not suppLT: app o^^^^ It. for ,t must be of the Devil, and cannot fail to breed the Devil- own product, chaos and crime. truth"?°f'!'«n"^^K'?^ ^"' '^' ^^""•" ^^'^^''^ and establish t uth. so fulhllmg the law of God in commerce and politics, as in all else. The product will be social peace and individual plenty. II. The bankrupt political parties of the orthodox civilized world have hung out the sitrn. "Wanf^H « ^^ ..i ,._.. ... ^, * ^«,;« -i. .' . ■■ ' J - '.=v--ai,wic ^«in;y i iheecon- omic situation is an unsolved riddle to all alike. Grit and Tory • Liberal and Conservative; Democrat and Republican ; Patrons and i II I f People's Party. None of these produce a statesman or financier who gives evidence of knowledge of a correct analysis of the universally deplored situation. The so-called social problem must be acknow- ledged as a mercantile problem ; since economically the social status of every individual is determined by his income. Such being the fact, not until a clear analysis is discovered of the arithmetical workmgs-of the financial methods adopted (on a metal currency basis) for the commercial exchange of commodities, of which incomes are composed, can any statesman or political party formulate a mercantile polio .lich shall meet the demands of the now serious situation. The heterodox International Socialist Labor Party is the only political party presentmg a mercantile policy of an intelligent nature, ensuring permanent security to private property in the pro- ducts of individual effort. Our present chronic bankruptcy gives us no such security. III. The rainbow chasing goal of an erroneous mercantile policy, mspired from Hades, is the accumulation of profits. The attainable goal of a mercantile policy under Divine inspira- tion, is the equitable distribution of manufactured commodities. All Hades inspired political and mercantile administrations result in social confusion, political corruption, and commercial bankruptcy ; breeding millionaires and paupers. The history of all past dynasties is a testimony to this fact. The culmination is expressed in the term damnation. All Divinely inspired jiolitical and mercantile administrations result in sociil harmony, political purity, and commercial stability • breeding a race of equitably related men and women. The culmin- ation inay be expressed in the term salvation. I ask you three questions, viz.: I. Name the goal aim.»d a» in mercantile practice by the "business man" of the nineteenth century ? II. Name the social, political, and mercantile results of the administration of the "upper classes" of the nineteenth century ? 12 III. Name the source from which the present mercantile and pohtical pohcy of so-called Christian countries is inspired ? In giving your answer to the third question, avoid insulting the Deity ; and bear in mind the eternal truth that "a good tree cannot bnng forth evil fruit." , If a survey of the existing universally deplored results of our mmonty-manipulated administration, leads to an unpleasant conclusion, truth makes no apology for its verdict on matters of fact Where demonstration rises above theory. The goal of the orthodox mercantile policy of to-day is the accumulation of profits. iV. Profit, the goal of the orthodox "business" man (both Jew and*^ Gentile), can, under a metal currency .system of finance, only be realized by a process which permits a legal absorption or mis- appropriation of the floating capital of competitors. Cash profits cannot be and never have been realized by any other process. In a future more extensive work I will presume to criticise in detail the masterly work of Karl Marx, regarding the origin and source of profits, or "surplus value." I claim that profit, so far as the financial phase IS concerned, is not derived by an extraction from the wage receiver ; since it is utterly impossible to receive back in the sale of a commodity to a wage receiver a sum of cash in excess of the amount paid to him in the process of manufacturing the commodity. Profit IS an absorption ; a mis-appropriation ; an extraction from the market, of the floating capital of competitors ; accomplished by a deniand price in excess of cost being realized by fortunate sellers. Hence, bankruptcy is a scientific sequel to profit realization. Increase in the rate of speed of manufacturing and marketing commodities, which is the process by which money capital is put in circulation, x^easures the rapidity with which floating capital can be absorbed by realizing cash values in excess of money capital expended; in other words, selling for cash above cost instead of ex- < i h t ti d c the 13 - changing commodity for commodity on the basis of equal vaiues. Thus, we can easily understand why, with improved machinery for pro' duction and more rapid marketing of commodities in recent decades, we necessarily have the scientific sequel of, as rapidly recurring financial crises ; known as bankruptcy etal., with an increasing army of unemployed on the one hand and bigger fortunes on the other. The human products of this Hades-conceived ;Jwy?/ accumulation policy, are merchant princes, bankrupts, and the "proletaire." Henry George, in his work "Progress and Poverty," has made an analysis \o unscientific, that in order to give support to his plea for single tax he makes the preposterous assertion that wages of superintendence (meaning the profits or incomes of capitalist employers) have not increased with the increase in productive powers of machinery. (Book HI., chapter VHI.) The treatment of the term profits by this widely read author is so thoroughly absurd, that popular ignor- ance of mercantile economics alone explains the position given to his work by ill-informed admirers. In a future work I purpose examining the fallacy of some of his baseless assertions ; showing that* ownership of land in a commodity producing civilization follows the accumulation of mercantile capital, proving in direct antagonism to "Progress and Poverty" that the original landed aristocracy are absorbed by the mercantile mortgagee. That the original landowner does not absorb the mercantile capitalist, but the mercantile capital- ist absorbs the original landowner, is proved in England. V. Profit (the goal of mercantile orthodoxy) must be clearly distin- guished from wages for labor of superintendence, and also from increase in product. Profit is neither of these. Like so called common labor, the labor of superintendence has a definite market value or r.-.„, p.-..^ ,^.j ..v,xi«.ii jaws, ^utury for iaoor af superintendence is the economic equivalent to wages for common labor. This is speedily discovered h^ hose unfortunate (though industrious and thoroughly competent) a^ercantile profit seekers, who become bankrupt through 14 callr .K '^ '■'^^ "' P"""' f™™ ">« ™"k«, Iheir floating In crand 2lht ^'^ '" ""^'^ °' "-^ufactunng his particular for hi! 'own filtn '^"'°" '""'" "' '^"'■°' '«"' '» '"change stit.,ents of ir.!. °'"'°'"^ ''"f^"^'^ >" the purchase of con- reah'S atve cost It''- "'" I '°"'^'^°' '^' ^"^--f"'" missing ca^ta Su^h a Ln Th" /' ™" '"'"^ 'he bankrupt's te«jJl^r,' • ""'''"** f"""* employrasnt as superi„. dife7„ : betZn r' 'T'f ^""P"""'' 'P-dilydi-overs the thalth,n , '"■ ' '""^ ""8^^ °f superintendence, and learn, that the net rece.pts of the concern ie now manages do n^t accrue "o determintTh I f -^ '"pertntendma, and limited to Wan, detern„ned by he same laws that determine common wages Hence he mcome wh.ch any employer is entitled to receive for persona! o a 'manT T^' '' """'"^'^ "^ -"■?-"« "^ '»hor w' I ■rnrofi; wh . 1 ? ""J""''"' "PP'OP""'" in excess of such salary economics of stable commerce, declares that he did no, earn- and ,t ,s the unfulfilled duty of the political economisr t^ explam by anthmetical analysis the source from which thTs -un" enectual. This e relations of man to man, and separates labor from materials. No Divinely in- spired mercantile policy can produce such results. True econom"c = S-. l^^-for °' — -- - -. "- are ntteril^or ^l^ t^ ZtZ^l^ .^ease ,n ,s al froiuc<. Only the in,i.,Jual makes profit' who realizes an "unearned increment," or mu.pproprialion of the s^ia" increase by some traditionally sanctioned process, or under the cloak of a fundamental error in the arithmelu of the money process of exchange which permits him to demand from the market aTm tt money ,„ return for his commodity that is in excess of the sum o money that he himself put into circulation as payment for the Z stituent parts of that commodity. Since money does no growTn drawn this ..„ .n excess of cost, which is correctly termed profits* That IS the task which I do not find satisfactorily completed bf any orthodox economist, not even by Karl Marx, who certainly ZZ the nearest approach to a correct analysis so far as my presen research has discovered. ' P'*"™ -.5-ss:-i-ni".;s.i2s;-ritr ~ "--"■- 17 VII. Profit is something taken for nothing given. The process, or modus operandi, by which profit— the sum of money absorbed from the market by a seller in excess of the sum of money put into circulation by himself— is realized, and bankruptcy of com- modity holders realized as its scientific sequel, is the mercantile practice in finance of raising the selling price of commodities above the sum of the cost price [I claim that cost price embodies the sum total of the purchasing capacity or money income of the whole community, including rich as well as poor). This absolutely foolish and uni- versally disastrous practice of raising demand price above cost dates from the inauguration of metals as currency, and is a Pagan practice of ancient Pagan merchants who ''knew not God." This corrupt policy, thoroughly unscientific from a mpnetary standpoint, is re- tained by a professional Christianity in commerce, without any practical enquiry into the desirability or undesirability of perpetuating a mercantile policy conceived by heathen merchants in an un- developed age, before Christ— "The Way, the Truth, and the Life"— gave to mankind a new philosophy, applicable to mercantile economics as well as to all other spheres of human activity. • A mixture of Pagan practice with Christian profession is like mixing oil and water. No harmonious brotherhood can result from such attempts to blend scientifically irreconcilable principles. It is a fact not yet properly recognized, that the Gospd of fesus embodies thoroughly rational science. It is the law of God, spoken by Himself on social relationship, and mercantile association is the basis of the social o.ganism. Our past and present mercantile policy, not being according to the design of the Deity, must necessarily have been conceived in the abiding place of error, and is being perpetuated under inspiration from false prophets who "know not what they do." These have reared as the material stronghold from which they attack the laws of God and the Catholic Church of Christ an enticingly beautiful gilded structure, viz., a gold and silver metal currency system for the absorption of profit rather than for the equitable exchange of commodities. c 1 l8 Read "Revelations" Chan rr „ That docerine was an ^Son to .f f""' " ''""^ '"i-'i I ia ^ Chr.e,a„ phi,„,oph,. The etrrr"':.'' ''=«^" Practices To, followed such abominable ins.nceri.v n ' ''■""'"''™ "« always cantile abortions and banknm,. "^ """* incapacity „., a Cathobc brotherhood. That •■thT' '"'ananism in pUce of ed.ct Of rational social scienc and n^T, °' ''"* '' "eath'Tan by the historic rnins of manvon.T'""^'"""'"'. i^ evidenced ad.ance tremors of coming r::o'l„tio„?'"'"f'"« <'^"-"-. and'he Pohfcs, warn of a deca/ng ,1 r"'' "P'''"^' '» commerce and ■hro™ unaer ,he Divide infpiral" V S,:/' -« »8-n over The sonorous call com^. . ' ^"''""^ '•««'«ment. mercantile policy of Europe and aI" • '"'""'' "''^'"^ "f the Kmgdom of Heaven is at hand-'^fw f^'- ^^'P'"' ^c, for the conscousofitsmissionasapomicr. he Socialist Labor Party i, an silver as a medium for eX g^'^ rV^f' °'«^"'-^"'- «old n the balance and found wantin/ Th '"''"''^ "' ™l"e, are tried the purposes of a profi..accumSi„.^tT "T" '"""^ '"^niselves w bankrupt, and paupers. Like met", ? J ""^ '" ""' manufacture of the,r usefulness has passed The! b^"'' '"''^'"^ '"^ breastplate^ To be« ' .^"'^ "■"^'"""^ philosophy Tfe'° "" "■""'-'^<' Pa ' to better th.ngs and happier davs A '' ""^ '"P^"' Progress consciously collects the future mnt "'" "^"""'or of to-day un 'be antique armory of a ^s m^Se's ?"' "'' """ P--" the innocents » and crucified SeT^u T'^"'- "bich "slaughtered I essential to the natural and only true "'" ~""«« '= ■" no ^^ I d.stnbution of commodities unde 1"'""*' "'"""S" ^^''em for I ■n vogue, and soon to culminafe in ! '' "' ''«'»' '"dnstry now I *Sin is a violation of ,ny b-*- whlhTT^"" " ' "*i "■"ccner physical »,.«» J^ y«cal, economic, or spiritual. 'So hast thou also ^^ing which I hatch an practices to a nation has aJi^ays in the last decade incapacity; mer- and impending nism in place of is death " is an uth, is evidenced nasties, and the » commerce and nee again over- :ntment. irectors of the -nt ye, for the Labor Party is rganism. Gold value, are tried themselves to lanufacture of i breastplates, liquated past, 5ede progress of today un- en preserved "slaughtered 5 in no sense e system for idustry now state, pro- 19 VIII. ^ I have said that "Profit" is something taken for nothing given, and that the process by which this disastrous error is prac- ticed, and bankruptcy made certain for the many who "chase the rainbow," is the foolishness of raising selling price above cost price of manufactured commodities. ''Price depends entirely upon the actual substance that is money," says Marx in " Capital," Part I., Chap. Ill , Sec. i, I claim, and propose to demonstrate, that that part of price which is covered by the term Profits, has no substantial counterpart in the money market either in gold, silver, or paper cur- rency, and that it cannot be realized by any merchant except by an absorption of the actual money counterpart, which is the substantial representative of the cost price of his neighbor's commodity. Hence bankruptcy of the neighbor is a scientific sequel to profit accumula- tion by the " successful " gentleman in the misappropriation busi- ness. The wage receiver is crushed beneath the nether millstone. It is possible I am in error in the statement, but I believe I am correct in saying that no writer has yet unfolded to the world a correct analysis of the mercantile process, or modus operandi, which proves this fact. Worked out to its full results I am prepared to say that this arithmetical error will be found to be the basis of every phase of economic confusion, and social problems, from the purely economic or material stand- point, which is the true basis of stable moral and ethical structures. *'Howbeit that is not first which is spiritual but that which is natural ; then that which is spiritual," (so wrote Paul of Tarsus). IX. I cannot, in this limited essay, discuss fully the Marx theory of *' Surplus Value." I can say, however, that I am not able;;to see my way to accept as sound and scientifically correct the reasoning aAvanroA in •• C^nrAtn\ " !>.•.<. TTT —" — ——•—•-— ' \^«j^!i.i»j, .1. ait 1.1.2. .. .. . KJt%m.*. Ill /"^U-... ij/tiisj, i ait lis.., v^iiaj;, TTTT . vii.., Sec. 2., regarding the illustration which " pposed to demonstrate that " the trick has at last succeeded ; money has been converted into capital." (Page 109, Humboldt Ed.) The book, " Capital," does not reply to my enquiry ^ ao as to fAe origin of the realized surplus of 3 shillings in the examples given by Marx, dealing with the sale of 20 pounds of yarn. Karl Marx says, (Page 109) " 27 shillings har, been transformed into 30 shillings, a surplus value ot 3 shillings I.as been created •" and a few lines further on says, -the laws that regulate th- exchange of commodities have been in no way violated. EguivaUnt has been exchanged for equivalents It seems to me that M.trx has built his theory at this point on an assumption which is not permissible to a scientist. He assumes the existence in the money market of x shillings tn excess of all the money in circulation under his illustration and It certainly cannot be true that, in exchanging 27 for ,0' equivalent has been exchanged for equivalent." I cannot accen; as scientific the term -created^^ as applied to the 3 shillings j„ question If 30 be given for 27, the margin of 3 is a tenth part of 30 and has no origin that is to be explained in other terms than the explanation given for the other ninetenths. viz., the 27 That origin IS found in payment for constituent parts of commodities. Hence if 30 be realized in exchange for 27, the margin of x c;i\\ed profit, or "surplus value," must be an absorption of 3 from another 27 in the market issued by a neighbor who has also circu- lated that 27 as the money representative of the constituents of a contemporary 20 lbs. of yarn. If Karl Marx absorbs 30 where he only circulated 27, it simply means that Ws neighbor can only realize 24 in place of his 27. A repetition of the transaction will find one gaining profits, by no exercise of brains, while his neighbor becomes bankrupt, not from lack of ability ; the workmen of the latter form- ing the ranks of the unemployed. Now, if both Marx and his neigh- bor had sold for 27, viz., cost price, both would sell all their goods and regain their capital, continuing to employ the workmen of both m a process of reproduction. The " fallacy of saving " is a serious one. To save any of the money in 27 will stop the turnover of the . commodity to which it is related as a constituent part of price. I ' cannot, in a limited pamphlet, do anything like justice to my analy- sis; but simply suggest the inextricable confusion into which our past and present economy throws the whole mercantile world. ai examples ansfcrmed created ; '* ' exchange t has been built his iible to a rket of 3 'ustration, ' for 30, 3t accept illings in h part of rms than 7. That ties. gin of 3 f 3 from Iso circu- ints of a vhere he y reah'ze find one becomes er form- is neigh- ir goods of both serious ir of the • rice. I '" y antUy- ich our .uh,l° J '^"f ^'"^^ °^ ^"y explanation as to the origin of the ubstance spoken of as the " created " 3 shillings, is a serious defect o the whole theory of " surplus value " so laboriously worked out by the greatest economist of the 19th century, Karl Marx. , My own analysis is a product of persona! observation during 2? years daily engagement in active mercantile life; covering experi- ence m manuiacture on a mammoth scale in England (14 years with a firm employing 3.000 hands), and 11 years in Canada, varied by acuve experience in factory manufacture, wholesale jobbing and busy retaihng. and commercial travelling. The result of my personal observation is summed up in three statements on the matter of profits, I . The cost price of the sum total of manufactured commodities IS the sum total of money in circulation ; and is the exact equivalent o the sum total of incomes ; consequently excluding the possibility of^rea^izmg above cost by the act of exchanging commodities for 2 That net profit is an economic phantasm, scientifically unre- alizable. Hence, what is known as net profit in commerce, is misap. propriated wealth, ensuring a neighbor's bankruptcy, and the wage receiver s poverty, entailing all the crimes in the calendar. 3- That human labor, applied to free raw materials, being the only component in any commodity known as wealth, luxury limited only by scarcity of labor or materials is the design of the Deity for every individual born on this planet, and this design will be realized under a common sense business administration, which we do not now enjoy. XI. My experience is, that in fixing price for marketing commodities, absolutely no consideration is given by "business" men to the fact that price is an expression of a sum of money which must exist in at nlZ'll'' '" '"^'''"''' '"*^ "°* '" '*^^°'y' '^ '^ •« to be realized. Hence the question .s never considered, -^re the constituent parts of my demand prxce present in substance in the money market?" or to u it It another way. " Is the income of all classes combined equal to ne purchase of th,s commodity at this price?" Marx appeals .,• have overlooked these points. Examination reveals the truth iha. price is made up of two factors, viz. : f «= « I. Cost. II. Profit. Only one of these two factors of price can present itself as a pur Chaser in the form of money, whether in gold, silver or paper, or all conibmed. and that is .../, which is simply the expression of incomes on the one hand and t'>e commodity on the other hand. Profit has no existence. It is an unrealizable phantasm and has lured the iqth century to the verge of forcible social revolution. This danger can be avotded only by an immediate inauguration of peaceful revoluttonary reform. Delay is fatal to the wealthy. XII. Before giving a simple example tojllustrate my analysis I will deal briefly with the matter of incomes, t No person can arrive at a correct conclusion in political economy w«u dc-s rot trace p ! n>onev incomes to their source. An investigati .^ v^m\ ^i,cover tnat there are two mam groups or classes of income, viz. : I. Primary (viz., Industrial). II. Secondary (viz.-professional, menial and governmental). Fiimary incomes are the money equivalents received by the rso'- classes who excavate, cultivate, or otherwise secure raw 'te^ials ; and y those other classes, who, with muscular and mental energy, combine to perform the services required to transform this -_.....„ ,,,,„ „ „,„3„cu proauct, viz., the manufactured com- modity (including transportation up to point of marketing the commodity for consumption). 23 those who receive primary incomes, which portions of orim.™ .ncomes are received by other classes of the comZ ,y L mo„.T rres thii" "T 'r r"''™^'' -"-'■ -"ove-enTa .ScMhertar" "' "' "■"™^^"""<' -^ ^^-^ -— y mcMes the total money ,n circulation, and co,. stitu.es the financial or ,.«Mory ,,uivaknl form, a, distinguished . om the actual com moduy income, of .// ./.„„ i„ , eivilLd com, unity "' Ihe commodity is the actual and only real ncome. Monev ■ts financal equivalent, is a convenient and le.s bulky count f' part, havmg as ,,s chief function the facilitating., .ime'a,^„raTd Uborsavmg exchange or distribution of the var ed coZl!,i? n.anufactured under . „//..,^ ,y,„„ of s.tlZ ^1^""' It will not require a vast amount of intelligence o perceive that he .0 a sum of the money counterpart is .h'e exac eq^Lfo the total sum of the money cost of the commodity •■ excSrorc*: "rr:a,ir r. ZeV^h "" "-' ^^'^' -"«' ■" re collectino .h. "* '">' ' «""! = Pi-o=«s of through h? I V '" ""^'''"Se for the finishe, commodity through the medium of a self-sacrificing retail merchant ? ^ I have never yet come in contact with the retail mer to««, The typical retail merchant, as also the jot bing ware houseman IS blissfully ignorant of the astounding fact T.f JnZ ^n.te ■.business-- wisdom his class is fooL enough to saddle Itself with the manufactured commodities of the mercanti^^ world, and contuct to collect and pay over to the ZX::^ w .r.voice; a »u,n of money lor those commodities in excess 7b» the amount of profit) of the total income or purchasing p,«er of .J classes of society, even supposing no persoi: saves a co^er. n! 1 1 84 wonder that Bradstreet and Dun, Wiman & Co. report the frightful mortahty » of 90 to 95 per cent, of those who undertake to engage in such a crazy " business." No wonder that the manufacturing (lass IS absorbing the wealth of the world, while the retailer is des- tined to go "to the dogs," and the perspiring wage-receiver is ground beneath the nether millstone of such an unscientific mercantile policy. Henry George discovered a mare's nest when he discovered the capitalist-manufacturer to be equally oppressed with the wage- receiver. Single Tax is simply a red-herring across the trail, those who follow It getting away "off the scent." I repeat again the saying of the ancient seer, " The wages of sin IS death," and the mercantile steward who, becoming conscious of the truth, will reap the "profit." of his brother's downfall without exerting himself to overthrow the system which permits him to cor- rupt the social organism, will reap his reward on the spiritual plane If not on the material ; for -God is not mocked " (Gal. vi., 7-8), and all ,s not gold that glitters." There was quite a depth of meaning in the saying of Jesus of Nazareth, " Not every one that saitb unto me Lord, Lord, shall enter into the Kingdom of Heaven," (Matt, vii.. 21); and Dives found himself "in Hades" notwithstanding the charity of his crumbs for Lazarus. XHL In this pamphlet I am not discussing the honesty or economic justice of the incomes derived from rent and interest. Both these Items are positive factors in orthodox mercantile practice and substantial money is handed over to their recipients. Hence 'these sums must be counted in any example illustrating the cost of com- modity production under existing legislation. For that reason both rent and interest will be given their proper place in the estimate of cost which follows. I may point out here that my use of the term profit covers that sum nf mrknov vo,r.^i.,^A u.. :„j'-.?j 1 - 3 .-.vA-tTvu oy iiiuiviuuais as interest which IS m excess of the actual money expenditure or cost in con- nection with money loans. It also covers the sum of money received he frightful s to engage nufacturing liler is des- r is ground mercantile discovered the wage- :rail, those 2 wages of conscious ill without lim to cor- tual plane, 7-8), and ' meaning saith unto n," (Matt, nding the economic 3th these tice, and jce these of com- son both imate of the term \ interest ' in con- received as as rent which exceeds the actual money expenditure for taxes and cost of mamtenance, or wear and tear of property. It is very important to students of political economy to note carefully the very definite distinction between primary and secondary rents, mterest and incomes. There is primary rent and interest, and there IS secondary rent and interest, just as there is (as previously noted) primary and secondary incomes. All primary rent, interest and other incomes constitute the cost price of commodities. All secondary rent, interest and other mcomes are mcluded in the cost of commodities (indirectly) as expenditures from the receipts of primary income recipients. Hence ail incomes combined do not exceed financially the sum of the cost of the commodity, and the item pto^f is a phantasm with no substantial counterpart. Net profit is simply individual misappropriation of social product, rendered possible by arithmetical increase of demand price above cost. The absorption from circulation of competitors floating expenditure by this process necessarily bankrupts the said com- petitors and throws them and their co-working wage-receivers into the ranks of the unemployed, thus stultifying production and making an infernally chaotic muddle of a possible paradise. As I said before, I do not obscure the purpose of this pamphlet by discussing the wage question. I do not overlook the fact that the wage- receiver, in paying over his wages for the purchase of his commodity, receives a smaller portion of the commodity than his wage represents in actual production, but this is also true of salaries and all other classes of buyers, if a correct analysis is examined. It is only fair and scientific also to recognize the fact that a vast volume of " savings " or invested capital of employers is consumed by wage and salary receivers, during the progress of the 90 per cent bankrupts along the road to insolvency. That truth is not fairly appreciated in manv dis- cussion. un the wage question. It is a significant fact that but for the constant inrush of new investors in the retail trade to supply the place of bankrupts the ranks of the unemployed would be much M a6 deeper than they are to-day. If salary or wage-receivers, who, by true "abstinence," accumulate savings, were only sensible enough to "let well enough alone" and stop losing their savings in retail lotteries, then c ir present crazy regime would reach the end of its tether in double-quick time, simply from lack of food to keep the "Kilkenny Cats" going. I XIV. The advent of the departmental retail store is a sign ^> the times which only the Socialist truly understands. The development of the departmental store system will frighten or warn the mdividual mvestor of savings out of the retail field in the near future, especially as electric cars feed the cities and larger towns from the outlying villages. Then the wholesale jobber will "wind up," and with him a host of small manufacturers. With the small retailers, and jobbers, and small manufacturers crushed out. the idiotic nature of the profit phantasm will be less obscured than it is to-day by the constantly recruited army of new mvestors who maintain the present system at their own expense by the loss of their capital. Society will not then tolerate its own lunacy any longer, and will (if it has not had the sense to do it sooner) quickly socialize the whole business of production and distribution as now demanded by the collectivist programme of the International Socialist Labor Party, controlling it under municipal, county, state provincial and national administration. Private enterprise and ambition is the source of political corruption and social chaos to day Such things will have nothing to live on under collective ad- ministration, when the fear of want is abolished for ever Then production will not cease in any line of staples or luxury so long as a want is unsupplied. No true Socialist stoops to any such political blackguardism as Democrat and Republican. Grit and Tnrv Lih-oi and Conservative, "Christian " politicians wallow in. rs, who, by )le enough ;s in retail end of its » keep the «7 XV. ign '^ the I'plopment individual especially e outlying with him ufacturers 11 be less y of new jense, by vn lunacy t sooner) tribution, rnational »ty, state, rise and ►s to day. live ad- Then long as political Having digressed somewhat, I return to the point of Rent and Interest. I'rmary rent is that sum of money paid to landlords for use of land or premises consumed in production of raw materials and the manufacture of those materials into commodities. This expendi- ture is a part of the cost of manufacture, and is itemized in the price of the finished article, and no profit can be said to have been real- ized until that sum, paid to landlords as rent, is recovered from the market by sale of the commodity. SecoMary rent is the sum of money received as income by land- lords for use of residences, property or buildings of any kind, paid for by expenditures out of primary or secondary incomes. All such rents bejng embodied in the incomes counted under their respective headings in the cost price, as wages, salary, etc., etc., are actually, though indirectly, a part of manufacturers' cost, as much as primary rent. The rent of opera houses, club rooms, professional offices, etc., are all secondary rents, derived from fractional expenditures from incomes that can be traced to primary items embodied in a manufacturer's cost price. Hence it must be evident that the sum total of all rents cannot exceed the sum of the original items from which they are drawn, and landlords can supply no cash profits to the commodity exchanger in excess of cost. Henry George would wipe out the landlord. In that case he would also wipe out the income rent as a purchasing item on the other side of the counter. The result would be that the mercantile process would be on precisely the same footing as at present ; de- mand price being still in excess of cost, and the "single tax " fraud would simply transfer the sum now paid to landlords into the pockets ot proht mongers. There is no doubt that this evident fact IS present to the mind of such manufacturing advocates of single tax as Tom L. Johnson, the U S. Congressman. 11 28 I exper^'cet'd^"""'*'"""''""'' ''"'<' °" ^pposieions. without experience or deraonseration, read ■• Progress and Povertv '■ I S, he ,,„,raJ hcaUon. wh,ch is always the relMor dUMbulin, district «d o7.h "■''■"l.f'":'-" '"e soft end of the tax rate, and the 1' oavthVo """^f" "P"""'" "''"' »>« retailer will still have to fohi^LrcTax C '" '"^ "'"'"^^ °' "^-^-P"'™ - ^^^^ to nis public tax. The nonsense talked about the future of wa primary or secondary mto7ed in'r."'' '""""r °">" ""'P--. '»" - therefore a sT Turns at r° , r""^"?"- »'"« »» '"'"«•• »0 «" di^ pnce of a It !,' ■ " ""''°'^'"'' '*''"="'' <» '"-Ji'^'ly "> 'he cost pnce of a marketed commodity, and the whole money loaning and tt rn'comr.""''''T"r •''"™' " P--'"'-* P°w".ne «, ot "yty"^ tofruptcy of go p,r «nt. o/inm^tor,, and the army of the unemployed robbed of their share of nature's /ree provTsioT XVII. The incomes of all Government officials from the Queen the Emperor, the President, the Premier, down to the letter carrL as ct ' HcT f'a' ct '""; "^^ '"" ™'^' - '" '"^-ied'r'th cost price of a commodity. All snrh .n^-o.— ^r^ h-:-- . taxation assessed on primary or seco„d;"ry" income of otht'TsseT or by tar.«fs, etc., embodied in the market cos. price of comm^'S 29 The incomes of the clergy, doctor?, lawyers, scientists, artists, poets, entertainers, literary men and women, menials, etc., are all more or less if not wholly secondary, being drawn largely from each other's receipts, and all primarily derived from expenditures for various professional services on the part of primary incomes received in form of rent, interest, wages, salary, etc. The permanent security of all these professional classes is threatened by the manufacturing absorption of ''profits " and the growing army of unemployed. The same principles of primary and secondary analysis apply to insur- ance and transportation, as applied to rent and interest. The sum total of incomes cannot rise above the level of their source, which is the money in circulation as the cost price or financial counterpart of a manufactured cornmodity. Hence I repeat again that net profit is an unrealizable phantasm, and that the sum of money which individuals realize under that name to day is an unearned misappropriation of a fellow creature's products, re- sponsible for stoppage of production, mercantile bankrupty, social chaos and domestic misery. The perpetuation of such a Pagan and unscientific mercantile policy stinks in t»ie nostrils of Almighty God, its overthrow is decreed, and with it the abolition of poverty, thus securing the permanent emancipation of the wage-receiver and society in general. XVIII. It may be well to "emphasize again the fact that all incomes (of all classes) are finally paid in commodities, and that money is only the shadow of which the commodity is the substance. In other words, money incomes result from a collective* method of manu- facture with sub-division of labor as its " mode," and, in view of the impossibility of sub-dividing the commodity which results from coUective energy, money is used as the medium of exchange, reHfeseniing the temporary form of that share of the total sum of commodities which each individu al has contributed and shall receive. pmtion oVtfeVrSuaV''" manufacture is under our no« to-day, but with individual misappro- 30 m fact ie nominally adraiHed by the orthodox economists, and ye. lead ".r,,'™'' V"*'"' """'"""^ '° ""'"=•' ">= admission mC eaulval m '^ '*T. ' '"•• *" " """^y '' »"P'y 'he temporary .'com andthe' rr"''*^ "™""=' "«" '"' -™ "' ™o„ey exchanging the comraod.ties for money is utterly impossible The etenllL ?!:'"rV""" '"°'"' '''"""'"'°" '» '"e vcdicfof eternal law. The development of social (or collective) life saw the ntroductton of mon.y in response to a demand for some meThod of . ansfernng values, (vij. the r.ght of claim to commodWesr n atesa cumbersome and less laborious fprm, than the system of barter of commodity for commodity by direct exchange in ,h„ It was 31. i.nH. 1 J excnange in the open market. absence of an . ". ""'"""" "'^' >'^'> ""'"-ithstanding the al^L°i , 7 ""^'"■" °' "'^"""ec there was «./ .,. aisL of lo^ soil T ?"" ""' '"™^^ <■"■'" ^-J-'able (infinitely Tensiv o lah . .' ■'°''' '""'"'"'> °" '"^ basis of iime and tie The deml At " "' °"'' ""^ ^"""^''"' "' """O""- .ha:v::ewTnd:4':f :Lr ™'" "-^ "^'""- -'-^"-''^ loaical sern^n, ,k responded to the promptings of the mytho- cmde Jrfh ' \™' ""^ ''^>' "'"^" "■« Pagan financiers of a crude age threw overboard their natural and time honored standard e chtr'the fu"?"' ■V^."'"" "' '"''' """P'"" ■»«"- of mher^o'mmo^dfr '°" "' '""" ""^ ^ " "'"''-'' "^ -'"- '» a" It was an inspiration from Hades, well calculated to defeat the avine purpose in industrial development, concealing under he or \r7,'"^"'= r'"" "-^ "'""'^ «'"« ofapotn^'r !1°L "._"■! ?,'"';='' "f P™«'^ "ther than a purer form of the ... .R..«. .4ua;.o« oartci of time service for time service. 31 XIX. With due respect to the "Anglo Israel" doctrine, the worship of the golden calf has been a characteristic of the blasphemous infidel- ity of the modern Israelite in his wandering through the economic wilderness; and he is not a modern Moses* who agitates fo. the sub- stitution of a bi-metallic pair of twins for the single beast. There is absolutely no remedy in compromise,-that damnable doctrine of the Nicolaitanes. // there is any one thing which the philosophy of /esus demands of a Christian it is that he shall make no compromise with evil. God's eternal law of truth in economic administration demands nothing less than the utter pulverization of the metal heresy as an abomination and author of social confusion. This is no rhetoric It is a solid fact. Gold and silver are not and cannot be standards of value, and the works that have been written to defend them are on a par with the works expounding the scientific correctness of the Ptolemaic astronomy previous to the advent of Galileo. The solar system did not go to pieces when men gave up their fallacies concerning its economy ; neither will the mercantile world go up m the blue smoke of chaos, when sensible men give up their antiquated fallacies regarding gold and silver impediments to progress The commerce of the world depends not on gold and silver but on individual needs and demand for commodities ; and the supply of that demand depends not on gold and silver, but on the capacity of machinery in control of human intelligence to form the commodities out of hmitless//-^^ raw material. A common-sense political admin- istration, guided by correct knowledge of the laws of distribution will not rob the rich, but will enrich the poor; instead of robbing the poor as to-day. There is a modern application to the words, "Oh ye of httle faith." Try the Socialist or Collectivist administration, and see if It be of God or of the Devil. "Where there is a will there is a way, an„ . was once informed by my employer that there was no such word as can't or cannot. One thing at any rate is absolutely - -A u P"^**"*/"' campaign in the United States, in i8q5. W evidence that he understands the money question. ^•'-■-^^ .y?'^^ orator of the Gold Party. XT '.L ■ "jV't," •.-'•-^'■y*" *^'d "ot give Neither did Bourke Cochrane, the aump 32 certain ; scientific law is in operation to wind up the existing admin- istration, and if any notice is to be taken of God in history. God has never scrupled to freely shed the blood of those who oppoled them- selves to the manifest laws of progress. XX. ,„m L!t"'/' '•^' ^°"°'''"^ ^""'"P'"' *° '""^*^^*« '"y <=>»'■"' tJ^at the sum total of primary incomes is simply the money counterpart of the unctions embodied in and making up the cost price of manufac- uredcommodit.es, and that net profit having no substantial coun- iegatzed "''"^^ ""'''''"' '' ^°'"'''^ '''^^^'^' °' tnis-appropriation It will be borne in mind by the reader that the presence of the Items rent and interest, as used in these examples, is only tolerated Z'TTh /k''''"''''"*^''P'"'"^^ •" ^^'^^'"g maladministra- tion. Both of these extractions from the product of honest mental and muscular energy are relics of Pagan relationships, and neither rent or interest have any basis in equity. The cost of maintenance of property is not rent ; neicher is the cost of running a financial department interest. Only the sum received in excess of these expenditures IS true rent or interest, and both items will be wiped out of the hst of personal incomes in future as unscientific and incompatible with good government, or the permanence of a social organism. owv,jai Example \—( Prima fy Incomes ) My first example discovers the factors embodied in the form of a finished commodity. In other words I analyze a commodity and find It IS made up of the following constituents: \ 1. Land; premises. 2. Money ; capital (if borrowed). 3 Raw materials. 4. Superintendence. 5. Labor (manual or skilled). 6. Transportation. 7- Insurance. 33 It will be well understood that money incomes are received by the persons representing the factors i. 2, 3. 4. 5. 6. 7. only on con- dition that they hand over (or part with) their property, materials, or services to the manufacturer, who in exchange for the money counterpart retains the values so handed over until the finished commodity, ready for the market, issues forth as the material embodiment or substantial representative of the collective efforts of the seven classes. Money is, therefore, never in the same hands as the components of the commodity. These cancel each 6ther in the act of exchange ; money being of itself nothing but an equivalent expression of the share each party or class contributed to the pro- duction of the article. The commodity being completed, it is put into the market to recover the sum of its cost, thus completing its mission by being consumed, and the process of reproduction is rendered possible by a recovery of the medium of exchange. To summarize, if 1. The landlord receives rent, the manufacturer receives the use of property. 2. The banker receives interest, the manufacturer receives the use of borrowed money. 3. The producer receives cash price, the manufacturer receives the raw materials. 4. The management receives salary, the manufacturer receives labor of superintendence. 5. The worker receives wages, the manufacturer receives the use of labor, 6. The railway company receives freight rates, the manufacturer receives the use of transportation equipment. .7. *The insurance company receives premiums, the manufacturer receives the value of security against loss. By examining this summary further it will be found *r^ rA»ooi not only the seven factors which are brought into collective relationship by the process of manufacture, and result in a commod ity, but we but wniSri/SlSrnd'l't/o^cSLism.'" T •"'="'^«'' '— " ^ * primary factor. 34 also discover seven individuals or classes as human representatives of the seven factors; and v.e further discover seven money incomes accruing to these human representatives as the financial tqu.valent for their functions embodied in the mercantile product, thus con- structed by a sub-division of labor. The analysis discovers them as follows, viz. : Seven Items or Factors in Cost. Landed Property or Premises Money Capital Raw Materials. " Labor of Supterintendence. Primary Classes or Human Representatives. _ Primary Incomes as Financial Equivalents to Services Rendered. Rent. Lant'lords j j^^^^j Bankers or Money Lenders ," .' .' ." .' . a.' i „,8rest . Producers of Raw Materials. ... r Price of Materials Manag ng Supervisors ^ Sa aries ^'"'"■'''- 5 Wages. I- Trr^rf''""^'* ^^■■■■- M^nutlkl^d^Sr^ork-ers •• 6. 1 ransjjortation Hailivav unrl n..„„ r' • ^ -- oisso. ^- '~ •••••■■■ i^/i^ceXe'^ntrrn^S^^^ % S.l^"' •Farmers, Miners, Fishers, Lumbermen. It Will readily be understood ilat the stockholders in banks railways, vessels (lakes or ocean), insurance companies, mines etc ' receive no dividends on their shares, except by extraction from the incomes above enumerated. I claim that the sum of the money put into circulation as the total financial resources or purchasing power of the seven primary classes cannot exceed, but originates in and is precisely equal to cost price of the commodities. xxr. Example 2 — Secondary Incomes. With the development of the social organism, which finds its origin m the social or collective (subdivision of labor) system of production of the necessaries and luxuries for purposes of consump- tion m daily life, there gradually evolves a secondary group of classes in the community, who take no positive or direct part in the indus- trial process, which is the primary essential to their own existence • yet these participate indirectly. ' These secondary classes exist by virtue of receiving financial equivalents to commodity incomes derived solely from the money ex- penditures of the recipients of primary incomes. These sums expended epresentatives of » money incomes mcial tquivalent oduct, thus con- scovers them as 'rimary Incomes as lancial Equivalents to iervices Rendered. . Rent. Interest. Price of Materials. Salaries. Wages. Frtigbt Rates. Premiums. Iders in banks, ies, mines, etc., iction from the :ulation as the seven primary y equal to cost i^hich finds its >or) system of ;s of consump- roup of classes t in the indus- wn t xistence ; ving financial the money ex-: ims expended 35 by the individual members of the seven primary classes (see Ex- ample i) ; are the financial equivalents exchanged for governmental and professional services ; the members of these latter (or secondary classes) being to the extent of their incomes the ultimate redeemers of that proportion of the manufactured commodity in place of the original and primary producer, who has relinquished that portion of his financial counterpart to the commodity as compensation for the ser- vices he has preferred to utilize. These secondary groups may be analyzed into Class A and Class B, as follows : Class B (Governmental Group). 1. Queen, King, Emperor or President. 2. Judiciary and High Officials. Civil Service. Army. Navy. Police. Municipal Employees, etc. 3. 4- 5- 6. 7. Class A (Profassional Group). 1. Clergy (and all engaged in philanthropic work). 2. Medical. 3- Legal. 4. Literary. 5. Entertainers. 6. Artists. 7. Retail Merchants. 8. Barbers, etc. 9. Menials. 10. Tramps. Class B derive incomes raised by a process of taxation ; extract- ing not only from the seven primary (industrial) classes, but also from Class A in the secondary group. Class A derive incomes not only from the seven primary classes direct, but also from Class B in the secondary group, and also by an interchange of services among the various groups in their own Class A. The fact remains undisturbed by this further examination, that the sum total of the money incomes of all classes, from Queen to tramp, does^ not exceed, but originates in and is exactly equivalent to the sum ofifii money cost of manufactured commodities, (see Example i) and the commodity is in reality the substantial ultimate income. There is no such possibility as making "profit" by exchange. Jl! 36 There may be some touch of grim satire in classing "tramps" with the professionals. That group is, however, a permanent institu- tion as long as existing practice is retained ; and the "tramp" cannot be placed in either the industrial or governmental groups. Being "unemployed," he might legitimately be included in group I or group 2 of the seven primary classes, but for the fact that hered- itary stupidity on the part of society as a whole does not permit him to draw either «'rent" or "interest" for his participation (?) in the mdustnal process. Being unemployed is not of itself a misfortune, as IS evident from the fact that their economic relations to manufac- ture, oblige us to place groups i and 2 of the primary classes (see Example i) in the "Industrial" (?) classification rather than in the professional unemployed denomination. XXII. A further thoughtful review of Examples i and 2 will reveal the fact that not a single individual in the population comprising the secondary classes, viz : groups A and B, is positively engaged in the direct processes connected with manufacture of commodities. Hence It follows that so far as the productive capacity of individuals is con- cerned, the industrial energies of the five groups (Nos. 3, 4 5 6 7) in Example i are equal to the task of supplying all the vast mass of commodities consumed, not only by themselves, but also in the feed- ing, clothing, housing, furnishing and transporting of the whole community, and also stocking warehouses and stores with an unsold "over-produced" balance. If this is the result of the productive energies of these five active groups in the primary classes, what is the rational explanation for , the poverty of the "masses" and the bankruptcy of the retailer ? Is it owing to a scarcity of raw material ? No. Is it owing to a scarcity of machinery to work up the mater- lals ? No. Is it owing to a scarcity of the "masses" themselves to manipu- late the machines and to form products ? No . ^^^ ork up the mater- selves to manipu- I ]^ 37 The only components in any form of wealth are raw-materials and human energy. Why then is poverty present in mercantile civil- ization ? /^over/y is a product of a criminal financial blunder in fixing the selling price of commodities above cost. It is evident that if the manufacturer (who retains the services and matenals handed over to hur. by the seven primary classes, until the,r final amalgamation in the commodity is complete ) was to offer the finished article direct to the seven representative individ- uals for consumption, at a money price in excess of the sum of their total money holdings, the absurdity of the demand and the scientific barrier to its achievement would be so self-evident that one experiment would end ihe existence of the profit-accumulating idea. The mere fact that a temporary intermediate stage in the evolution of mercantile exchange has developed the wholesale jobber and retail storekeeper, who invests his hereditary fortune, or personal savings* in the commodity, and contracts per invoice to do. at his own risk, what the manufacturer could not himself do by direct exchange with the consumer, does not in any sense lessen the absurdity of the economic problem. The wholesale and retail buyer, (note the word buyer, not producer,) increases the amount of money m circulation by the sum of his original investment only, and since h.s calculation is to realize the return of this full sum with an additional sum in the name of "profit" on that investment, the real difficulty of the economic situation is actually increased by the income ''' ""' ""'^'^ ^^^'''' ''^''" ^^ ^'"'^ '^ ^^' available public In the light of this arithmetical barrier to the purchase of the commodity it surely is only natural that the whole of it cannot be sold, and that the holder of the unsold portion finds himself indebted for a sum which he cannot realize. Hence anxiety, bankruptcy. ,, ......^, „,, tuc lucvuuoie outcome of a policy which on intelligent investigation exhibits not even the shadow of one s olitary whhou7goinnn"S1,riginl'^'" '" '"'' '""P'^''' ^ assume the existence of past saving. 38 redeeming point to plead for its retention in an enlightened country/ "Profit" means poverty, stopping exchange, and preventing the re-production of wealth. Profit is a " Will o' the Wisp," luring 90 per cent, of those who chase it into the "bog," a veritable "slough of despond." The actual fact is that the investments of the wholesale and retail " buyers " are the constantly renewed props of the present iniquitous system, feeding by the sacrifices of their investments the "profits " devouring 5 to 10 per cent, and hiding the real nature of the mercantile economy. The rapidity of the process of manufacture and transportation decides the speed with which exchange or turnover can be effected. With each turnover the absorption of more floating (or invested) capital is effected by the successful 5 to 10 per cent., and a crisis of bankruptcy recurs. Hence it can be understood why the era of machinery (rapid production) is also the era of rapidly recurring mercantile crisis. Each industrial cycle, or turnover, absorbs more " profit " and makes the situation worse by contracting the area of possibility to sell, until the situation becomes chronic, and revolution is developed by God inspired resentment. Magnificent possibilities of limitless wealth, mercantile stability, and social and domestic hap- piness, are sacrificed to idols and the false god Profit. Great must be "the fall thereof." To illustrate the process by which mercantile exchange in modern civilization is conducted, we will examine a few further examples. XXIII. Example 3. This example will assume the existence of the typical manu- facturer, and the existence of the seven representatives of the primary classes only (see Example i) ; previous to recognizing the secondary classes, and wholesale and retail distributors, whose evolution do not in any sense aliei: liic nature of the exchange, but really obscure the inherent absurdity of sslling for money, instead of exchanging for money (two totally diflferent ideals). 39 Let us suppose that the business of the raanufacturer in Ex- ample . ,s .ha. of baker, and that eight loaves of bread is the pro- duct of .he collective services of .he seven individuals in con ncSon mthh,mself. Assuming .ha. one loaf represents .he propor.ion of the product due .o his own labors, the baker holds the seven as the product or share of the other con.ribu.ors to the process, X have temporanly accepted the money expression of .heir cla m on 'he loaves m the meantime. The baker arrives at the price, or money cost, of theie seven loaves, by the very simple process of book^^g; entertagihe ..ems of expenditure as he pays them out, and L^l totalling up article It thT„'T?/" T "'"'" '""^"'^^ ''" '"^ "-'h^^ article. At this point the ma.ket situation is as follows, viz.: Commodities in hands of manufacturer, . . Items of money expended in cost of production , Number of purchasing consumers and contributors io product Total items of money in circulation,' as incbmVs,' and ' counterpart to product 7 There is only one natural and equitable process by which sale of these seven loaves can be effected, and full purchase compLrd consumption made equivalent in volume to production and 'he conditions for reproduction evolved. That is, by an ex^hanl o, the loaves for the money on the basis of cost pric'e, each reXn, bread in proportion to his contribution to its manufacture IsTo pose that next season some machinery is introduced in.o ihe oro- cess, so that fourteen loaves are evolved instead of seven it wil sto- ply mean that each man is weal.hier by double his origin'a^ p^ZcT- the mercantile basis of exchange remaining the same,) ' - _ „^ ,..,,t ,,,, „,^,,^y ^gj,Q jjj jj^j^ liiustraiion is of the same denommation as now current, we have this result, viz.: ^ost of bread $y qq | p„rchasing power of public. .$7 00 Mt will be noticed .hat .11 classes, both "upp.." ^nT^^i;;^:?!:^;!^^;^^;-;;^^ aSK 40 Or in terms of ledger account the sale transaction would be as fol- lows : IN ACCOUNT WITH PUBLIC. Feb. 1st, 1897. Dr. To seven loaves bread $7 00 $7 00 Feb. ist, 1897. Cr. By Cash— Per Landlord " Banker " Farmer " Superintendent ... " Laborer , " Railway Co " Insurance Ager>t . . , Leaving a clean sheet, With no profit and none necessary ; no overproduction or surplus stock, no bankrupt, no unemployed, as the conditions for reproduction are fulfilled, and all stock sold, or in more correct phraseology, exchanged. XXIV. Now, it by no means is necessary to assume that each of the seven persons in this illustration is holding an equal sum of money with his co-workers, or that each will be able to purchase only an equal proportion of bread. The opponents of collective ownership of the machinery of pro" duction and distribution do not understand their own economic practice, much less do they understand the symmetrical harmony of a social or collective administiation as demanded by the International Socialist. The 'dead-level equality" idea is a product of unscientific imagination, and is no essential attachment to a social economy which abolishes poverty. The most important point in the above example^ is the fact that the total sum of money in circulation is exactly equivalent to the cost of production ; and the profit cannot be realized by an equitable transac- tion between the parties making exchange. The proportions of the total sum of products contributed by irould be as fol- contributed by 41 each individual may not be equal, and the amount of money equiva- lent held by each will vary according to ability and capacity. A discussion of individual merits is totally outside the range of the present enquiry as to the nature of profit realized in money form by the orthodox mode. The existing practice, developed with the "profit heresy" from Pagan antecedents, appears to award money in- comes m mverse proportion to the expenditure of productive energy. That fact does not aflbrd any explanation to the problem now seek- ing solution, viz.: extraction from the market oi^net pr^t, or an excess above cost. Equity does not mean Equality in the popular sense. Neither does equity involve so irrational a system of distribution irrespective of capacity to either produce or consume, as is pictured by Edward Bellamy in "Looking Backward" (chapter IX ). To quote Dr. Leete, "In the 19th century, when a horse pulled a heavier load,than a goat.' I suppose you rewarded him. Now, we should have whipped him soundly if he had not, on the ground that being much stronger, he ought to." Edward Bellamy in this chapter argues through Dr. Leete that exactly equal income must be awarded the goat as the horse, because he has done his best as far as natural endowment permits him ; and therefore as the horse cannot do more, from an ethical standard the horse shall receive no more food (reward or income) than the goat. There is nothing sensible, or equitable, or in accord with ethical law in this sophism. To limit the horse to the rations of the goat is simply idiotic ; to surfeit the goat with the provisions requisite for a horse is equally idiotic. Such an irrational economy in regard to incomes would mean extermination for both goat and horse, and the Socialist Labor Party is not so foolish in its suggestion. In accord with the law of truth in economics, and in perfect accord with the gospel of Jesus, the S. L. P. demands th*. ina.,o..rof;^., ^c tile administration that shall establish ^wer of all 45 The ledfi^er entry will snow as follows, viz : IN ACCOUNT WITH PUBLIC. Feb. 4, 1897. Dr. To sales — ^ths of 7 loaves bread . .$6 00 Feb. 4, 1897. Cr. By cash $6 GO Feb. 5, 1897. To stock on hand and not sold — X*-h of 7 loaves = 25 per cent, of yesterday's product, and no available cash to purchase it. Results may be tabulated as follows: (a) " Surplus " or » overproduction » and " glutted market," owing to the two fallacies : 1. Savings. 2. Raising price above cost. (6) •• Restriction of future output." Only 75 per cent, of last pro- duct having been sold, and 25 per cent, being on market, our " business " baker estimates that it will be safe only to repro- duce 50 per cent, of last output to come out even on next transaction. (c) Discharge of employees ; reduced demand for raw materials ; reduced business for transportation company ; sum of money capital laying idle ; less insurance. (d) All purchasers on last transaction received in exchange for their* money a smaller share of the product than was equated to their money incomes for factorship in process of manu- facture. (e) The saving of money by one class has actually resulted in pov- erty and distress to another class, under present administra- tion. ^ -'hodox economrhave" Of calTul t:f rit\?~!?'- '" ^-^j^ "^ 'h» p-ss r 1 . r. " ' ' •"." ^irioiuua iur circuiatioii around fho family table ; and so it is with the sum of commodities.TtSe sum of money; they cannot increase or produce net profit iy heactTf distribution, no matter how ingenious the circuUtin^ med 1 4« Money is absolutely nothing but an equivalent fo™. the "shadow" of . correct ,. would have been possible to have sold ou his product a. he advanced pnce, and realize the demand for $8.00 sTch a •• t.^'."and":h'"""'""'""^- """""- -'-" --Ob: I propose now to show the nature of ,asi profit and exnbin the mercantile process by which "wreckers" absoVh ,h, ^^ ^ they secure by steering the social craft TT,y.. T / '*'"''" bankruptcy, anxiety and suffering rdes^ib^Me ^^ '"' ^""'^ °' XXVIII. sen Jh" h '''"^''' ^'.^ '""^ 5' ""^^ P"'"^^^ ^^ass is correctly repre sented by one typical individual. The fact th«t ' k /^ actually sub-divided into thousands orl'^^ro^: ,^^^^^^^ f-rence to the economic relation of class to class, or of total .../ ^l Lera'^?;^^^^^^^^^^^ - Toronto/i^ nZ' ^^^^l^^^^iii!^^ single individual in the "The trickhrrt laTt ucceed'd monL^'>!"iT "^^^ been T^ns'fo;„.S inTc; „ „ 3,...!?«!.^.'.^"J» 'h« programme of th^sTciX^'nKbS^ffr^"'^. into capital." Marx th7o"rj;' of '• S^^rplus wJue/' and'^y Zt^r.'!! ' '>l^Vdecid"ed"sta;f,i iropposhion To" thj fr„'i^'"„?h *^ '^" y*' ^""'"PH-hed by a^e^xtraction from ^""'' " *=•''''*''"« * surplus !°a"ue of ' from other income receiving classes. «*t'^act.on from wage-receivers as a class differentiate! he "shadow" of :annot "breed" , Carnegies, et tion) business, successful in in "Capital" t his product 5.00. Such a ' cannot be n which cash , and explain the plunder and shoals of rectly repre- ach class is )lecules " or rticle of dif- >tal cost price f money in ity for pur- n, or Paris, 0, in North dual in the irn manufacture jaker or fellow oney circulator, ransformed into into capital." ;:«cctive coiiiroi position to the plus "alue of 3 is differentiated 49 population of that city, and, having previously arranged a separate bu, dmg for the accommodation of the members of each of the vanous ,ndus.rial, professional and Governmental groups tha re class,<^ed m Examples . and ., he can take each separate personaliv .n that cty, and correctly place him or her into one or other of "hese bu.dmgs „n.,l the whole of the population is aicountd fo frl Queen Emperor or President, to "professional tramp" L th^ economtc relation of group to group is precisely the samea! :":::?::U::ire,"' — ^^ «' '^ ----- -^e antlerw^rnorirgatdi^errrltro^itrcost as compared » th total money equivalent or purchasing pier ij person- Money Cost of Product Offered for Sale. •• • $7 00 . . 7 00 , . Dry Goods...... 7 00 Shoes 7 00 " • • • • 7 00 . . .... 7 00 , . Stationery ^ ^ Hardware Machines Baker.. Grocer. Clothing- Yarn .... 7 00 Demand or Selling Price. $8 00 8 00 . 8 00 . 8 00 . 8 00 . 8 00 . 8 00 . Cash in Circulation or Money Purchas- ing Power of all Classes. • . • $7 GO 7 DO 7 DO 7 00 7 00 • . • • 7 00 7 00 Jewellery. . Totals . 7 00 7 00 8 8 00 00 $7 o 00 $8 o 00 7 00 7 00 7 00 $70 00 50 How in the name of common arithmetic can $80 be collected from $70 ? The trick has never succeeded. It never will succeed, simply because it cannot. All of these ten "business" men being inspired with the same erroneous doctrine (which they have been persuaded by ingenious sophistry to regard as endorsed by the disciplinary providence of God) simultaneously pursue the same mercantile policy of selling their various products for the most money they can realize on the exchange transaction, instead of sensibly exchanging their products with each .other to harmonize their needs, and establish the basis for continued reproduction and permanent prosperity. We will watch the result? of profit seeking. Assume first that five out of the ten traders have been successful in unloading their products and realizing the demand price. The following change will have taken place in the mercantile situation. Absorbed from Circulation. Profit. Cost. Cost of Pro- ducts not yet Sold. Demand or Selling Price. Balance of Cash in Circulation $1 00 $7 00 Baker • • * • I 00 7 00 Grocer ■ • a • I 00 7 00 Dry Goods • ■ • • 4 • « • • • a I 00 7 00 Shoes I 00 7 00 Clothing ■ • . , Yarn $7 00 $8 00 $6 00 .... Stationery 7 00 8 00 6 00 .... Hardware 7 00 8 00 6 00 .... Machines 7 00 8 00 6 00 .... Jewellery 7 00 8 00 6 00 $35 00 $40 00 $30 00 The deficiency of $5 in balance of purchasing power, compared to cost of balance of stock on market not yet sold, is accounted for by the presence of $5 profits absorbed from circulation by the first sellers, and it will be noticed that the per centar. of differenr- be- twe n demand price and purchasing power is now greater than at the star of the game. 8o be collected er will succeed, with the same ;d by ingenious idence of God) f selling their n the exchange lucts with each Balance of Cash in Circulation. $6 OO 6 OO 6 OO 6 OO 6 OO $30 00 2r, compared :counted for by the first ifTA 51 > XXX. Example 6 (Continued.) «n JdlnrhJ'" 'h"' ""'" ^'""""'"« «'' ""'«" »'«> ""cceed in Balance of Purchasing Power. 5 tor coiitmued Absorbed from ^ Circulation. Cost of Demand or Profit. Cost. Product yet Unsold. Selling Price. $1 00 $7 00 Yarn een successful I 00 7 00 Stationery d price. The I 00 7 00 Hardware • • . . * • • • e situation. • • • • • • • • Machi nes $7 00 $8 00 • * * . • • • ■ Teweii cry 7 00 8 00 $14 00 $16 00 $6 00 $6 00 r^nr^a r than at the bv JLT,r^Tl' Z""f " ""''*""' "" "-"'"f "f"" "li'-'y copper by either landlord, banker, farmer, railway company, or sunerTi;^ .mag,ne .he economic result „, •.„„,>,, ^he balance ofTsTom c,rculat,on or any portion of it. No matter if the "economy "b" practiced by upper or lower "cma" ,\,. k • ■='-"n"my oe the same Tr,,i„ ,1, .■■ ' ^""'"'' consequence is ne same. Truly the expenditures of the Bradley-Martin class are "good for business." But more than that the flauntinriniquil of su-h possibilities is fuel to the revolutionary fire and fins 'the mouldering flame .0 discover the origin of such a d splorLate income, and roast it out of the social oiganism. °P°«'™«« „.„Bt""' "u T""'' '" '^'^"''"'"g 'he only fund from which cash LnftS T ^.t'T- '"''" '"""^ '= "'« --""d <" float", mony fTfa h'^f t°: r-!! .--■ ".™ arithmetically imCS T "" "'''" '" «"cceea m - business," and failure is ZZl^Z ."''""'"' '° '''^'' """"'"^ '" »"^ "»«• Bank ul; mdudes anxiety, poverty, domestic distress, and loss of sS Regarding social status and class distinctions on the American continent, the abolition of the profit fraud would smash the wedge that now splits society into upper and lower social strata. The above illustration proves positively that the unearned income of our upper classes measures the depths of the undeserved poverty of our so called lower classes. The one is equated to the other. In Europe, social strata and former class distinctions developed under totally different historic conditions to the evolution of classes on the North American continent. Reasons that account for upper and lower classes in Europe as products of a past military and feudal organiza- tion of society, do not account for the existence of upper and lower classes in Canada and the .tfnited States. In the latter countries these Pagan manifestations have absolutely no historic basis, but the practice of the dishonest mercantile policy outlined in the above illustration* and the disgusting domestic products of the Canadian and United States political administrations up to date, are more dis- creditable to the American people than are similar manifestations in Europe to the European of to day. XXXI. The under-mentioned results follow the first industrial cycle or business "turn-over" of the community in Example 6. (a) Net cash profit realized by absorbing a fellow trader's floating capital, t (If) Financial embarrassment of manufacturers unable to re-collect cost-price (without profit) for commodities in stock. One struggles on with diminished capital to "try again," The ^ . *1^]^ sentence can also apply to the recent reconstruction of classified social strata in England, France. &c., in Europe. fAs a matter of fact, in England the successful manufacturers and merchants have been busy absorbing a mass of capital, which they found " ready-made," and a rich source of "surplus value, before trenching upon each other's investments. That "ready-made" capital was the wealth of the older landed aristocracy, which, contrary to the single-tax doctrine, is slipping through the fingers of the original landlords. 53 other is unable to "pull through," and sells out his stock en bloc to a fellow trader at " so much on the I." {c) The trader who struggles on cuts wages and prices to help him in competition. {d) The trader who retires from business joins with his former employees to flood the labor market and compete for the positions of those who strike against the " cut.'!-^- {e) The successful "profit absorbing" trader who purchased his retiring neighbors stock at "so much on the $," realized thereby a further product which he did not earn, and begins to make it more interesting for his remaining neighbors by " slaughtering " below normal market price. (/) Those who originally entered into association on a normal basis of equivalents, are now divided into "upper" and "lower" classes ; who neither practice equity or exchange equivalents, but scramble for all they can secure. social strata in XXXII. In Example 6 I have not recognized the existence of the wholesale jobber or retail merchant in the process of exchange. In Example 7 it will be seen that their participation in the " profit " seeking process, under the present disorganized and chaotic admin- istration, adds another stumbling block to the "turn-over" of the commodities produced by the collectivity, while adding no addition- al income to the resources of the market. Regarding the relation of the labors of wholesale and retail distribution to actual cost of the finished process of production ready for consumption, it is a strange and significant fact, that while the other classes participating in the direct mercantile process as primary income receivers, (see Example i,) are all in receipt of actual purchasing money incomes from the manufacturer for their -•'^■ffl-TI 1-1 HI I I . S4 Ubors or semces rendered in relation to the commodity, this is not e.,ilT H '''!."' '" "" ""''"'"' '^'""■'»«"- The wholesale and tslbf fll '""''•'f /■''~"''> '""'"^ "P- 'heir chance of absorbing aoatmg capital from the market ; failing to sacreed in .«omphsh.ng that aim, these gentlemen r;main !n the ranks of . traders only ,„ ,o„g , y„, ,, ,, ,^^^^ ^^^ k» », competitors to eat up their original investment, thus giving he abors for nothing, with anxiety and bankruptcy as the rewL of their "enterprise." A statistical record of 90 l 95 per cenf "f failures IS not .0 be wondered at. It is as natural'a'rLlt of such an Idiotic mercantile policy as our unenlightened "upper" classes have constructed, as that day shaB follow night on the planet Earth under the solar system. The Divinity of the origin of this commercial administration may surely be questioned without being irreverent to the Deity I claim that the labors of wholesale and retail distribution are acL^fy alted to the functton of transportation, and are an unpaid continuation of the factorship m production represented by the railway and ocean freight distributors in Example i, I believe I am correct in the statement that this suggestion is not embodied in any economic essay previously published Under a Socialist administration the supervisors and associate workers in the labor of distribution will not be called upon to risk their "savings" in such an enterprise, but will be sure of equitable salaries, and be free to spend their "savings" in personal cultivation or enjoyment to their own taste, with no futur? ^' *° ^°'"^^^ bankruptcy looming overhead to shadow their While referring to this matter I would point out that all salaries wages, rents, and other expenditures of retail merchants, if not paid a a loss from their original investment, can only be paid by first absorbing the funds froin thP marii-flf K„ ^„* .__ , ^ ., J ' of purchasers. "' -.««.«„„ ,rom rne incomes I submit the following diagram to illustrate my claim that the 55 wholesale and retail distributors are alUed[to transportation, and are an integral part of the primary industrial process : PRODUCINQ AND C0N8UMINQ PUBUO, MANUFACTURER. This diamond represents the manufacturer as the point towards which the lines of raw material and commodity production lead ; and it also represents the manufacturer as the point from which the lines of wholesale and retail distribution start. The lines of the dia- mond represent ocean, inland water, railway and parcels delivery, transportation from the starting point of production to the finishing point of consumption. It will be noticed that both producing and consuming capacity focus at the one point. XXXIII. Example 7. In the following example I illustrate* the result of a business "turn-over" or commercial "cycle," with the additional profit of the retailer added to the manufacturer's demand. In view of the fact that the money, circulated as an original investment by the retail merchant, is supposed to be recovered in full by himself with the added sum of " profits," it cannot be considered that this invested sum adds anything to purchasing capacity in the way of additional social income. Hence the same figures are used to represent the sum of cost price and of total purchasing capacity, as in Examples trW^ ^' ^ ''"^ P°'"' °"*' ^^'^^^^'^ t*^*^ ''^"e not increasing the nve ted savings or fortunes of wholesale and retail buyers o manufactured commodities do increase the fund of floating capital from which '.profits" may be absorbed by -successful sellers Following is an example in which I also assume an » economy " evervT hT''.'^'^"'" '^"'^ '° one-quarter of a dollar out of every seven dollars income, (say about 3>^ per cent.) : Cosi of Manufacturer's Retailer's '^°'^' P"""- Assumed . ., , , Product. Demand Demand chasing Savings Available Price. Price Capacity ©fall l^urchasing _ ■ of Public. Classes. Capacity. |of::.: *,'S ;; »s'- ;: *|- ,- *?-■• *°|5 ..»!„ sSafr.' 'S- I-- '-■■ r'lo":; II:: til r-i iu- 7 "o . . a oo . . q oo . . >7 nn -» ^ ''' stationery. 7^ S :: g' 00° :: 9%°? '^ ? °° ' " ^^ .• 6 7I Hardware. 700 .. 800 ^S "' ?S'- ^5 • • 6 75 Machmes.. 7 oc . . 8 00 . . ^ ^ ' ' ? °° " ' ^5 .- 675 Jewellery.. _^ • • _8- . . JS y. J^]] ^ ^ ^75 Totals... $70 00 ..$8000 ..$9000 .. $7000.."^ ..^^77, In this example it will be noticed that the total advance in demand price above actual cost ; (including manufacturers'Tobbe s and retail profits) does not equal 30 per cent., yet the c p'acity oi consumption to production is as 67^^ is to 90. ^ Rn ^^'•J^^'^^^.d Atkinson, a much quoted American statistician, of Boston. Mass., ,n a work entitled '^The Industrial Progress of he Nauon." makes the following statement, as the outcome of much study. VIZ. : " On the basis of the statistics compiled in recent years it mankind to consume the means of subsistance is limited, while on the other hand, the power of mankind to produce and distribute the means of subsistence is traftimih, ,.^7:^.:4^j» t. .y ..^ Number of the "Enginee ring Magazine" for January, rs/, thi 57 . $6 75 6 75 6 75 6 75 6 75 6 75 6 75 6 75 b 75 6 75 same author reiterates the above original theory. Mr. Atkinson does not say whether he bases his opinion on the results acquired from a study of the comparison between the productive versus consuming capacity of the Bradley-Martin millionaire or professional tramp type of " mankind." It seems to be fairly safe, however, to venture the assertion that this "eminent statistician," (considered to be one of the highest authorities in the United States,) has not, in his extensive research, yet come across a similar analysis to the above as an explanation of the peculiar phenomenon oiiginally dis- covered by himself. It would, indeed, be strange, if under our present arithmetical policy the power of mankind to "consume," or (more correctly speaking punkase,) was equal to his ability to produce. When we consider the individual instead of the community^ we have no difficulty, however, in arriving at the opposite conclusion to Mr. Atkinson ; since power to purchase when allied to opportunity, as in the case of millionaire " profit " absorbers, exhibits a human capacity to consume far in excess of the individual power to produce. The orthodox statistician has something yet to learn. Returning to our example we find that when the " cycle " or universal turn-over is completed, the market situation is as below :* Manufacturer 'Absorbed from Circulation. Retailer Ab- sorbed from Circulation . Profit. $r OO I OO I OO I OO I OO I OO I OO Cost. $7 OO 7 OO 7 OO 7 OO 7 OO 7 OO 7 OO Profit. $1 OO I OO I OO I OO r OO I OO I OO Cost. $8 OO 8 oc 8 oo 8 OO 8 OO 8 OO 8 OO I- c ^^ s n B ■ O tl $7 OO $49 OO $56 00 $7 00 $56 00 $61 00 Baker Grocer Dry Goods Shoes Clothingf Yarn Stationery Hardware $8 00 Machinery 8 00 jeweiiery S 00 el o c t) o rt t> rttl $9 00 9 00 9 00 $4 50 Totals $24 00 . . $27 00 . . $4 50 *If distributors are paid a primary income, in common with other factors in the industrial process, and then all proaucts exchftnged at "pf," tio such chaotic results can follow an indui- trial cycle. ,58 It will be understood that the $56.00 received by these success 1 manufacturers is paid over by the successful retailers "ut of he sum $63.00 ; and ,t will also be found that the $4.50 left in cLil ion added to the $63.00 absorbed by seven out of th s teTrnt- latn """' ''"' ^'^ original $67.50 available iotalt^Z- .r. Z^^ '^""™"^'^'' social, and domestic results of this "turn-over" It is not difficult to work out the social results of the next turn "cli,l "'';"""'' ""P'"''". More bankrupts allied to b"" DutCn'! ''T'"'""""^'^ and^^orewage-slaves; restrict out ^ih Dv ' ""P""'" ""-^ ""'"^^ "agitators" ,f G^, feed huiT' T"'?"' ''"' ''™""'™' P^'"'"'^ revolu ion ^e ferred. but force brought to bear against obstinate wrong if necessa^ i. ,K ^"1^ "!,°" "'"""" '°'' a«onisMng phase of our existing chaos . the stup,dUyo. the general Anglo-.axon public in regard ,o the pu poses and values of political legislation rigarding 00^.1100^ tro of producfon and distribution. It must certainly be dmi ted that expenence demonstrates the insecurity of private property ™der our existing mercantile policy, and the one certain result of colkcl IstZh T"""""'""'"^ P'°^»*°" ='"<' exchange wou°d be a stable bas,s for security of private property such as no other form of admm,strafon can possibly establish. Orthodox critics of th^ Inter„a„onal Socialist Party seem to possess "eyes that dolfsee" and "ears that do not hear" the truth. Like the ancient prisoner to teaVtr""'"."" "'"'''™ '""^ '■>' ■■8ht of Heaven, h^ seem leal^ ,"'""""■ '"""°" »» W »' 'he prospect of r" lease from long accustomed bondage. 59 XXXIV. At this point I wish to attract attention to the fact that the Examples 6 and 7 illustrate the economic results of a commercial administration, in which there is no competition in any one branch of business. Each merchant in these Examples illustrates a " com- bine or trust," having absolute monopoly of the universal market in his particular line of product. To arrive at the economic results of a large or small number of competitors in any or each branch of production or distribution, it is only necessary to multiply the differ- ent figures a^ected, and you find no change in the relation of totals^ or ultimate results of the universal turn-over. The question of Mon- opoly versus Competition is not fundamental, but incidental, so long as thti " profit-seeking " policy is retained on the programme. XXXV. I also wish to attract attention to the fact that the problems of wages and hours of labor are distinctly separate from the problem of " profits." The wages question is a matter of apportioning the relative values of each factor in cost of production. The eight-hour day is a question of affording more or less leisure time to the laborer who has an occupation. The full programme of the old school British- American trade unionist could be achieved without making any absolute difference to the unemployed problem, which is a product of " profit " accumulation. The great problem of unemployed pov- erty is not grappled with by the pure and simple British-American trades union movement. The more recent trade union movements of the wage receiving classes in Germany, France, Belgium, etc., and the "Socialist Trades and Labor Alliance" in the United States (recently organized), are far .nore intelligently directed. The mem- ucf s of these laiter organizations are far better educated on economic truth, and the value of intelligent political solidarity, than their Anglo-Saxon contemporaries, and they aim, not at raising false issues and false hopes, but at sure and steady progress to complete and 6o The old school British-American trade union policy is a product of unscientific reasoning. Professing to aim at the emancipation of eprerntedt'T' ''"• ''"" '''"°"" slavery, this movement, as represented by the existing British Trades Union Congress, and the American Federation of Labor, frames a platform and pursues a policy which IS no more capable of emancipating the Mower" ^^asses than is the programme of the manufacturers association. 1 hese organizations, pretending to hold aloof from politics, are canti? T'' '"'^"'■^'' ""' °«^^'^^^ ^^° P'^y into the hands of llT^u ^ '''"' '"^ "^'^'' ^^^'"'ers, and "stump" against each other on opposite party platforms in general elections.* That kmd of emancipator" is not a characteristic of continental Socialist abor organ,zatK)ns. and the growth of International Socialist politics 4kl1m'' "^ ''%^"''' ^''''' '' ^''''^'^ '- «^^™P °'t this JtkuZ f.u u ""! ^""P"'"'^ ^"^ ^°'' °^ •"fl"^"^^ explains the attitude of the orthodox trade union leader to the Socialist school, in Canada there is no organization on the same basis as the British 1 rades Union Congress or the American Federation of Labor The heterogeneous annual gathering, known as the "Trades and Labor Congress of Ca >ada. is a farce without eit' ^r platform or policy,! and IS principally engineered by old-line political party «« hacks " some of the most prominent of whom appear to climb into pro- chaTcte^^ '^^ ^'''' °^ ^°^"' '^^'''" °^ ^ non-trade union Toronto "Globe." September 21st. 1896,) these " fakirs " dread the advent of intelligent Socialists •' as the devil dreads Divinity." So far as the genuine trade union movement is concerned it is aper fectly legitimate or ganizatio n, and has done much to protec't the tS!*r^f '^°"' '" '}'' Presidential campaign in the United Sutcs in xSge! ~" Ann J SeLb ". •■ "'' " *•'"«"'' '*» '^^' " Congress " in 1895 . See official report of " Eleventh §See Ottawa " Tribune." November 14, 1896. ] 6i interests of those who can retain employment^ but it has done nothing to, hinder the steady incre' ae of the number of unemployed ; and it can do nothing to stop it. It has done nothing to emancipate the class from economic slavery. The wage question, and the ** profit " question are two distinct problems ; and the unemployed are '■'■evolved^* by the accumulation of profits^ and the consequent accumulation of unsold stocks ; with bankruptcy, restricted output, and poverty as sequels. To raise money wages under the present system of exchange^ is simply to increase one of the items in cost (see Example i) at the expense of some of the other factors, and in opposition to Ricardo and orthodox economists, this does not affec* net profit; since profit is not a factor in cost at all. Hence the new trades union movement adopting th<; political programme of continental Socialists is the only intelligent organization of the wage receivers It must not be forgotten that the economic result to individual manufacturers and merchants of a local raise in wages, is not in any sense typical of the general principle. The results that follow from a commercial "turn-over" (as illustrated in Examples 6 and 7, in accord with universal practice) supply the market with every condition required to bring about the local reduction of wage scales, strikes, lockouts, and general revolu- tionary agitation for the restriction of the output of millionaire and pauper unemployed citizens. XXXVI. I have reached the limits assigned to the purpose of this pamphlet. If I have failed to convince a reader of the correctness of my argument, I think I have given him some new idea to think over, and those critics who undertake to prove that net profit has occn, anu can uc rcuii^cu uy miy uitxci piwcas man mai x iiaTc outlined, will, I think, undertake a somewhat difficult task.* •A test case for critics to examine will be the bicycle "boom" in 1896. If my argument is not correct, why should the "abnormal" profits of one industry disturb the receipts of other merchants. $1 I have only skimmed the surface of the problem here referred to the phase of the economic situation, which is here pointed out W men do not think right. tl,ey are not likely to ac7rS and i being quite evident that „,.„ . . "ght; and it inferenr, Lr,r '^ "°' "=""8 right, makes it a fair wtthefo fhl ' T "»' '""""« "«*"• *'°^' ■»- ""<• "omen thtalt ^ 1, '"*"*"'^'"'' ^S'" in the statement that "some^ h fr rP it Zfy '"'*' " ''"""^ ""» ■» -Pon^iMe", . e error ,■ I do not believe m imcrulabU mysteries. I believe in the ms^ucnon, "Seek and ye shall find." Of course here arelon! sobmdasthey ,h„ will, not see, and unfortun y . TeLX the e are many who would sacrifice the future of their own oflsp rin ' Is^l T •'"""''"»"°" "<" '» »« that which calls for Tome effort on thetr own part to remove it from the path of progress. not initfatl'T"^'"'' '°"™"'^ '"" "■= """■8"°' °' '"is planet did exr ,"e for therr""" T'"' "°" '" ™«"«' ^ " ^^^'^''-T exerc.se for the human character. Men who found themselves environed by conditions they did not understand, and rXd to correctly analyze, apparently deemed it necessa"y in the '« to charge to the account of the Deity the result „, thir own ign^l; and hence we have a theology which finds it uncomf^abTe to recognize the truth, Th.> fact seems to be evident that the laws If God are beautifully designed to ensure material prosperity and Tndi vidua! luxury, when mercantile exchange is based on the p^cy dictated by these laws. It is also evident that i, is utteriy mpoSe IhJ, "\'S' '"'™°"'"" P"''"'''"" "y »"V other method han absolute obedience to those dictates.* The Nicolaitane Policy of compromise to suit the convenience of^Pagan practice is. and always has been, the fore-runner of certain What is the e conomic law? York*"sX' cVd'i^ndors^' conSeTn""''^"^^^ represented by " The People " N^^ some 63 It asserts the fact that when the evolution of the Social organism has reached the stage at which the commodity is a product of collective or social energy {%eQ Example i) as distinguished from the primitive stage of individual independent production, then the collectivity must control the product and its distribution, if success and permanent prosperity and stability is to be attained- It is not an assertion of sentiment, or a matter of preference, but a dictate of immutable law, which certainly cannot conflict with correct biological or physcological science, (? Herbert Spencer), that indi- vidual ownership and control of the machinery of collective produc- tion and distribution is utterly at variance with scientific require- ments, wholly antagonistic to ethical law and destructive to •* business " stability, disorganizing the mechanism of exchange, and breeding civil and inteinati^nal strife. There u.e great possibilities open to the administrators of young countries such as Canada, Australia, New Zealand, South Africa. Population and intelligence will flow to any mercantile country that adapts its legislation to the dictates of common-sense "business," and luxury is the inevitable outcome of such a public policy, since there is no natural barrier to any form of commodity production, but scarcity of raw material or scarcity of human labor. There has been no scarcity of these things in the past; the greatest dearth being in the realm of common-sense and moral courage. The greatest need of the present age is citizens of the types of Jesus of Nazareth, Pan) of Tarsus, and Karl Marx of Germany ; who have moral courage enough to declare heterodox truth, and common-sense enough to dare the orthodox devil. v For copies of this Pamphlet apply .0 regular book agents ; or enclose 10 cents to the author, addressed London, Ontario. INDEX. PAGE. Absorption of Floating Capital 4. '2. 25» 50. 52 Arithmetical Error. .7, 16, 19, 25, 37 Army, Incomes 28, 35 Atkinson, Edward 56, 57 American Federation 60 Bradstreet, Dunn & Co 4, 24 Bankruptcy, Sequel to Profits 12, 14. 17. 51 Bankruptcy, 90 to 95 per cent. 4. 24, 25, 28, 54 Bank Discounts 28 Barter 30 Bellamy, Edward 41 Bimetallism 4> 31 Bryan, W. J 3, Brotherhood, Universal 9, 17 Bradley-Martin Expenditure. .51, 57 British Trade Congress 60 Bicycle "Boom" 1896 61 Canadian Trade Congress 60 "Capital," Karl Marx. .7, 15, 19, 48 " Idle 45 " Floating, Absorbed 4. 12, 25, so, 52, 56 Christianity, Professional. 17 Christian Socialist 42 Classes, Primary 34 Secondary 35,38 " Professional.. 29, 35, 46, 47 Commodity, Components 16, 21 Cost Price 17, 21. 28, 32, 4.'», cfi Constituents of Price ,22 Collective Ownership 40, 46, 58 " Industry »8, 23, 26, 29, 33, 62 PAGE. Compensation for Risk 43. 46 " Coin's Financial School 7 Competition eg Civil Service 35 Currency 4, x^, 30 Darwin, Charles e Departmental Stores 26 Demand Price 43. 49. SL S6 Peity, Design of i6, 21, 42, 62 Dives in Hades 24 Divine Providence 6, 50 Dividends, Stockholders' 34 Distribution 1 1 Debs, Eugene V 62 Eight-Hour Day gg Error, Source of 10 Error, Arithmetical. 7, 16, 19, 25, 37 Erroneous Doctrine 6, 50, 62 Economists, Orthodox 7, 30, 47 Economic Value 30 Electric Cars 26 Equivalents 20, 39, 53 Equity vs. Equality 40, 41 Ethical Law 41, 46, 63 Experimental Study 48 Example 1 32 " " ''.'.'.'.'.'.3^ " I" 38 " IV 42 •' V 44 " VI 49 it ^TTT ■'" 55 Exchange Medium i8, 30 Fakir Reformers 60 Factors in Cost Price 32 65 •43. 46 1 7 59 35 . '7. 30 5 26 . s>. 56 . 42. 62 24 • .6, so ••••34 ... .11 ... .62 ••••59 10 25.37 , 50. 62 30. 47 ....30 ....26 . 39. 53 .40, 41 46. 63 ....48 ....32 ••••34 ....38 ... .42 ....44 ....49 ••••55 • 18, 30 ....60 ....32 PAGE. Fallacy of Saving 20, 44, 56 Fawcett, Mrs >5 Freight Rates 33 Galileo ' 5. 3^ Glutted Markets 44. 45 George, Henry. .7, 3- 14, 24, ^7, 43 Gold Standard 30 Gold and Silver J 7- ^.3' Goal of Mercantile Po / ...n, 12 Government, Incomes 22, 28, 35 " Globe," Toronto 60 Hades 10, 30, 58 Hours of Labor 46, 59 Heaven to, 58 Incomes 1 1> 22, 41, 53 " Commodity 23,29 " Primary 22, 32 " Secondary 23, 34 Interest 4. 24, 32 " Primary 25, 28 " Secondary 25, 28 Insurance 33 International Socialist Party.. 4. 5. 7. 9. "' 15. '8, 26, 40, 58 Individual Ownership 46. 63 Jesus of Nazareth... .5, 6, 24, 42, 63 " Gospel oi 17. 41 Johnson, Tom L 27 Judiciary, Incomes 35 Knox, John 5 Landlords, Absorbed 13. 27, 52 * ' Factor in Production. .33, 43 Legislation 46. 58 Liability of Buyer 43 ♦' Looking Backward " 41 Luther, Martin 5 Luxury, Design of Deity. ..7, 16, 21 PAGE. Machinery, Influence of. ..13, 38, 39 Mai-Administration 32 Market Situation 39, 43, 50, 51 Marx, Karl .••5. 7. 12, 15, 16, 19, 21, 22. 63 Metal Currency 8, 13, 17, 18, 30 Municipal Employees. . . 35 Money, Incomes 33, 35, 41, 47 " Chief Function 23 " Exchange Mediunt. . . . . 3. 29. 30. 44 " Equivalent Form 3. 19. 23, 29, 48 Monopoly 59 Navy, Incomes 28, 35 Nicolaitanes, Doctrine of . . . . 18, 31,42, 62 Orthodoxy and Heterodox 5. 6, 42, 63 Overproduction 45 Object of Pamphlet 3, 61 Parcels Delivery 55 Paul of Tarsus 19. ^3 Pagan Pt actice 17, 18, 29, 52 Political Parties 10, 26, 60 " Solidarity 59 " Administrati«;r . .31, 46, 52 Poverty, Cause of . . .6, 37, 61 Private Property 8, 58 " Ownership 46 Productive Capacity 36, 55, 56 "Progress and Poverty". 7, 13, 14, 28 Puritan Fathers 5 Professional Classes, Incomes. 29, 35 '• " Threatened • 29, 46 Professional Classes, Not Recog- nized 47 Purchasing Power 34> 5°. 57 Price, Constituents of. 22 66 PAGE. Price, Cost 17, 21 " Demand 43. 49. 51. 56 Profit, Net 3, 19, 61 *' Gaol of Commerce.. II, 12, 13 " Excess Above Cost. .3, 16, 21 " NotDrawnfrom Wages..4, 12 " Not Increase in Pro- duct 13, ,5 " Unrealizable. . . 3, 12, 21, 29 " Source Discovered 49, 51 " Not a Factor in Cost... 19, 61 Raw Material i6» 37 Rational Science 17, 18 Remedy to Situation 46 ^^"t 4,24, 32, 4). " Primary 27 " Secondary 25, 27 Responsibility for Poverty. .6, 37, 6i Restricted Output 45. 47 Retail Merchant 3. 23, 26, 35, 37, 53, 55 Revolution 8, 9, 18, 22, 38 R'sk 43,46 Ricardo, David 61 Saving, Fallacy of. 20, 44, 51, 56 Savings, Consumed 25 54 Salary of Superintendence.. 13, 14, 33 Single Tax. . 13, 14, 24, 27, 2t, 44, 52 Silver ahd Gold 17, 18, 31 Socrates e PAGE. Socialist Labor Party -5. 7. 9. ". IS. 18, 26, 40 Socialist Trade Alliance 59 Social Stratification 52 Standard of Values 30, 31 Stockholders' Dividends 34 Surplus Value 12, 19, 48 Subdivision of Labor 29 " Commodities 47 Spencer, Herbert 8, 63 Speed of Manufacture 12, 38 Solution of Problem 46 "sThe People," New York 62 Trade Unions 59, 60 '^^'^^^ ?5.35 '^'■^'"Ps 35.36 Turn-over or Cycle. ...47, 55, 57, 61 Transportation 54? 55 Unemployed.4, 13. 25, 29, 36, 59, 61 Unearned Increment ... 3, 16, 29, 53 Value ^Q Wages of Sin ,8, 24 Wages. . 4, 13, 15, 25, 46, S3, 59, 6r Wage Receiver ... .4, 19, 24, 25, 33 Walker, Francis A jg Wealth, Components of 16, 21 Unit of 15 Wholesale Jobber. 3, 23, 26, 37, 53, 55 Wesley, John - I