The Dominion. MONDAY, JANUARY 3, 1910. CHEAP CAPITAL, MORE LABOUR

Dominion, Volume 3, Issue 705, 3 January 1910, Page 4

The Dominion. MONDAY, JANUARY 3, 1910. CHEAP CAPITAL, MORE LABOUR

"No capital, no hiring," is a fundamental law of. economics. No man can hire, another -without the possession of capital—accumulated capital with which : to pay the person hired. What is wanted in,tho working man's interest is plenty, of capitals-cheap capital,' or , what is the same thing "a low rate of interest." It away, with unemployment? wherever -unemployment is due to economic and not to moral causos. ' A thoughtful article : on this. subject appears ih the Spcotatorof a ; rodent dato, and . it is ono that working men would appreciate if | they cared to study it :■ carefully; i Goldsmithj when he' .talked aboutl tho ' 'land: whero, wealth accumulates and men- decay," was economically i talking- nonsense, becausev economically the • land where - wealth accumulates is the land'whero men flourish. ■When capital is plentiful'and cheap the chances favour 'increased labour —of mofo; labourv being. ■tively employed. • An- energetic; man of business, considering the 1 question whether he shall start a factory, or: build , dwelling-houses, or ■ open a 'shop, or start a fruit farm* or any other practicable vonture, naturally I wants to know if he can make a profit. The answer -will depend upon .a great. many things, ■ including, of [ coursoj the question of markets, but i the. final. consideration will bo. capital- and labour.' If the current rate' | of intorest is low, that: is, capital |-is .'cheap, and sufficient labour is | availablo at'.' a reasonable rate of i wago, , the. venture will bo started, I: because there would ba profit in it. i What is wanted .by tho working. I man' hero,: as" elsewhere, is a plenii t-ude of capital—cheap capital, i There aro two ways by which ho cah, I help. One way, and a most importI ant: way, is to become thrifty. Every penn'y of his savings increases I the stock of capital which is com.peting in the labour market forkbour. ''The notion which is ontcr'tained by certain socialisticallyinolined' trade unionists that. a workman who Saves has, to some extent, gone over to the enemy and is committitig treason towards his own class,: is the wildest of delusions," observes tho Spectator-, -and ■ oilr readers will not need to be told that this is true, thrift on the part of the • working classes is ;the': positive, way of helping capital to accumulate and become, choapi Thcro is also a negative way, and this dopends on the attitudo which' tho workman takes towards capital.,' The l groat London weekly put this phaso of tho subject very forcibly, and says: "If be yields to the paradoxical teachings of. tho Socialists and comes to regard tho, act of oxchango which takes placo between labour and capi> tal as an act of .war rather than what it really is, a union of forces; ho .will in divers ways check tho accumulation of capital. Capital is largely a matter of credit, and oredit, as all the world knows, depends upon security, or perhaps wo "should say upon . tho sontimcnt of security. Even if there is in fact security, such security will not en* courago tho accumulation of capital if peoplo aro : not thoroughly convinced of its oxistonce. Illgrounded fears may. kill credit, and

thus kill capitalj quito as easily as fears whiqh aro well grounded. Tho political and social atmosphere in which capital most easily and rapidly . accumulates is an atmosphere of absolute soourity—ono in which all mon feel that thoro is no risk of. their capital being . taken away from them against their will, cither in wholo or in part." Tho present-day worker, in effect, puts up his strength, his skill, or his ability to auction, that is to say ho hires himself to the employer who will i pay him the highest wage or salary/ When one is selling a house at'auction what one desires is to see a number of biddors, for their competition for possession of tho property will ensure a good price being realised. Tho same thing applies, to the* worker. lie wants to See plenty of bidders for his labour So that he Way. get the/highest ;wage possible. If tho workers were wise they would take as , muoh care to avoid frightening capital,', or decreasing the .security-of its employment, as the capitalists themselves They would smooth every road to the labour market, and inlprove every means of access, abolishing all obstacles and toll-gates, and welcomo. the capitalist or potential hirer of labour as tho man they can least afford to get Oil without. This, unfortunately, is 'not the of tho .worker,' for, the creed to-day of a largo-proportion of .workers is to regard the capitalist aB something akin to a criminal, and ito pray-for the day whon they can get rid of tho scoundrel.