Soldiers and railroad employÉs for such reasons do not command pay in proportion to the dangers met. Any employment where there are obstacles to natural advancement or where continuance is uncertain does not attract applicants except by higher wages. Illustrations of all these occasions for limited competition are found everywhere.

Stimulants to competition.—If any occupation shows circumstances making entrance easy for new applicants, or if advantages for promotion are readily seen, or if it seems to have a special respectability with the advantage of social privileges, especially if it in some respects seems a work of philanthropy, there will be multitudes ready to engage, and willing to undertake the work at less than average compensation. It is commonly said that these peculiar advantages are a part of the compensation. They operate simply as a stimulant to competition, making more people willing to enter such employment at small wages than would be willing without these special advantages.

A good illustration of such employments is found in common school teaching. While a teacher does need an expensive preparation, and success is dependent upon special adaptability to the work, it is nevertheless true that the work can be taken up readily and as readily laid down; it confers upon the applicant the privilege of social recognition and somewhat of personal dignity; it gives opportunities for some note in the community, and, with all, it is considered a work of philanthropic character, entitling to the gratitude of the public. The result is that teachers everywhere command less of salary or [pg 246] wages in proportion to their abilities than other classes of wage-earners. Fortunately, this stimulant to competition appeals largely to those characteristics of the individual teacher which make him more serviceable in his calling. The opportunity for a life of study, added to other considerations, makes still more effective the competition of earnest, philanthropic students, such as the world needs for teachers.

In the lower ranks of teachers, competition is still more increased by the fact that common school teaching can be temporarily carried on in the intervals of study, without interfering with mental growth. Teaching is also specially adapted for the temporary employment of young men and women not quite ready to enter the actual life work. Acquaintance with human nature, which it fosters, is thought to be good preparation for home and business life. The employments in which women largely engage as wage-earners are chiefly of this temporary character. The fact that the life work of most women must be the making of the home hinders competition in employments where long apprenticeship or special skill of any kind may be demanded. Any temporary employment not only appeals to her sense of capacity for earning wages, but seems better adapted to her future. If that employment at the same time affords opportunity for social life and calls for the natural adornments of youth, the young woman considers wages only a small part of the general consideration, and is satisfied with a bare living. Hence clerkships in stores, subordinate positions as teachers and places as typewriters are crowded with applicants at wages insufficient [pg 247] for a life-time support. Employment in domestic service, which might be supposed more consistent with the larger work of life, is rendered less attractive by the almost entire absence of social privileges and natural opportunities for advancement in knowledge of the world. Girls who would prefer house work, with equal social freedom and the natural stimulant of contact with other young people, compete for lower wages in less satisfactory employment during the years of their girlhood. This is less noticeable in country life, where girls in domestic service become a part of the household and share in the privileges of the young people at home.

Another illustration of the depressing effect upon wages of excessive competition is found in the work of women upon cheap clothing. This work is usually done by the piece in the home, and can be taken up at intervals between household duties. Many women consider earnings of this kind a mere addition of spending money to a somewhat meager support in their home life. It can be carried on without display, and so preserves the dignity of persons who would otherwise shrink from wage earning. The result is a very serious competition, reducing wages below even enough to sustain life and character.

These are only illustrations of what happens in every calling when circumstances stimulate excessive competition. Relief can come only from larger range of satisfactory employment and a clearer distinction in favor of genuine wage-earners and genuine employers among the mass of the people. The customs of society have a much stronger influence upon the life of women in steady employments than upon that of men. A thoroughly [pg 248] enlightened community can do much to enlarge the sphere of such women as are naturally wage-earners, by proper encouragement of their enterprise.

Fluctuation of wages.—Wages in every employment are just as naturally subject to fluctuation under the law of supply and demand as are prices of commodities. Whatever operates to increase the number seeking employment, or to diminish the amount of employment open to competition, reduces the wages. Whatever increases the opportunity for employment, or diminishes the number of persons seeking employment, increases the wages. This is well illustrated in the cost of harvest hands in a year of large crops as compared with a year of small crops. Any financial disturbance, checking the building of railroads and other great enterprises, brings multitudes of would-be farm hands to compete with those who naturally follow farming. On the other hand, the introduction of factories or mining industries has sometimes affected directly the wages of farm hands through a large region by lessening competition.

Upward tendency of wages.—It is certain that the general tendency of wages in all employments is upward rather than downward, in spite of serious disturbances from financial depression often repeated. The gradual increase of welfare among wage-earners is greater even than the increase in money wages. Those who are inclined to join in the cry that the former times were better than these can be answered as they were in Solomon's time, “Thou dost not inquire wisely concerning this.” No doubt the transition from small workshops to large ones and from small factories to great combinations [pg 249] has caused friction in adjustment to the new conditions. Many are now wage-earners who were once profit-gainers. But with the improvements in association and a clearer understanding of abilities and needs, each worker becomes a stronger factor than ever before in bringing about a fair competition and a satisfactory compensation.

There are still new difficulties in every change of method. The influence of custom often retards freedom of movement, makes more slow the natural rise of wages, and hinders a gradual adjustment to new conditions. In many cases it prevents individual enterprise among wage-earners, and crowds from the higher ranks into competition with the lower because of no natural outlet for ambition. Even laws intended to protect laborers sometimes operate against them. Thus a law restricting the terms of contract between workmen and their employer has sometimes prevented the employer from investing capital in a business which otherwise would have increased the opportunity for labor, and so would have actually increased wages.

The effect of free schools upon ability to earn is generally recognized. The best estimates place the increase resulting from common school education at fully 25 per cent. Some of the best establishments are limiting their offers of employment to young people who have had the advantage of even high school training. This more general education tends in two ways to increase the compensation of wage-earners: first, by giving a clear knowledge of abilities that makes competition fairer; and second, by increasing the general effectiveness [pg 250] of all production, which enlarges the sum to be divided.

Every movement toward greater social freedom and uniformity of opportunity contributes to the same end. Next to slavery, social caste is the chief obstacle to free and fair competition of laborers. Any barriers of race, social organizations, or even churches, which cultivate exclusiveness in any direction, in the end work hardship. If they bring temporary advantage to a few, they are sure to hamper the freedom of many. The welfare of the community is surest when social conditions favor the freest communication in all ranges of employment, whether in wage-earning or in profit-making.

The cheapening of transportation in recent years, bringing all the world nearer, has had various effects upon wages. It has destroyed, to a considerable extent, the inequality of wages between different regions of country. If laborers of any kind are scarce, a telegram will within a few hours bring numbers from some place where they are too plenty. The result is a tendency to greater uniformity throughout the world. As yet the full effects of this progress are not realized. Some hardships will undoubtedly be endured from the ready introduction of unskilled laborers from crowded countries into our less densely peopled country. But with a larger range of production opened by cheap labor, our better workmen will find more constant and more remunerative employment. If restrictions upon immigration are necessary, it must be to prevent too sudden a transition, hindering adjustment to new conditions. The danger of overcrowded population comes [pg 251] more certainly to the nation excluding itself from the great world by excluding the rest of the world from itself.

The general effect of improved machinery has been several times referred to already. Its advantages come to the wage-earner directly in multiplying employments and in multiplying the demand by cheapening products. Indirectly, the benefits are still greater, because these cheaper products form the bulk of living for the workers. It is probable that even the better living thus provided has raised the efficiency of labor so as to command better wages. It is certain that every movement of civilization which gives a clearer knowledge of human nature and the world about us adds to the power of every man, whatever his work. We may welcome every element of progress in this enlightenment as a direct help to the portion of humanity recognized as wage-earners. The better the masses of people understand each other the better each understands himself; and that understanding is the best protection against oppression of circumstances or of men.

Variation in profits.—Profits in various pursuits, like wages, are affected by limited competition. The need of special abilities and experience in any particular undertaking keeps back the timid from that enterprise, and the accumulation of experience of a peculiar kind hinders one from turning to other occupations. Even if a young man is willing to take the risk of inexperience as a manager, he can seldom gain the confidence of those who control capital. Hence competition in new and untried enterprises is slight, and [pg 252] profits are often great. Other undertakings are of such a nature as to involve great uncertainty. The risk of failure retards the cautious, and so the most enterprising win great returns. In estimating such returns, we overlook the failures and count only the great successes. Sometimes accidental opportunities open to the few a limited range of enormous profits. Legislation fostering monopoly sometimes favors such opportunities. These are usually temporary, and such advantage cannot long be maintained under the most fortunate conditions. Secret methods have sometimes controlled the market for individuals with enormous gain, and in a few instances a nation has maintained such secrecy with apparent success. But these, too, quickly yield before competing enterprise, since wage-earners under such employers must share to some extent the secret, and will have the stimulant of enormous profits to use the secret for themselves.

Profits in competition.—Profits are themselves a stimulant to competition, and competition in every pursuit tends to reduce the profits. If any circumstance apparently insures more than average profits in any undertaking, competition becomes excessive and profits vanish. The promise of a tariff on wool leads farmers to expect an advance in the profits of sheep raising. Competition begins in the purchase of flocks, by which the profits of those already in the business are greatly increased. Competition continues by multiplication in the flocks until sellers of sheep are more plenty than buyers. Thus, the stimulant to competition has operated to lessen profits in the end. A famous sheep [pg 253] raiser in New York, when asked to give a maxim for success in the business, answered, “Buy when your neighbors sell, and sell when your neighbors buy.”

Similar experience has been noted in various pursuits. The tendency, however, with wider knowledge of others' wants and efforts is toward a greater uniformity of profits. Modern methods of production and clearer perception of ways and means make it easier for competition to have its full effect between different kinds of business, as well as in the same business. The more we know of our neighbor's work through the daily press and extensive travel, the fairer is the opportunity for competition to act. This tendency brings hardship to the weaker portion of managers engaged in any particular business. This makes the power of so-called trusts and great combinations apparently harmful. In the end, however, the result is more constant profits, though smaller, and the advantage of the whole community in a more stable business. It is even conceivable that the stimulant of fair profits may finally reach a larger proportion of the community through interest in the great establishments than in the past from the unequal and uncertain returns of independent managers.

Even among professional men, whose fees for services have somewhat the nature of profits, the same law of competition, dependent upon supply and demand, holds sway. The compensation of an author for his publications, though protected by copyright, is dependent upon conditions limiting competition or stimulating it. It is customary for surgeons, physicians and dentists to make a fee proportional to the demand for their services. [pg 254] Thus the skilled dentist, who is wanted by ten times as many people as he can serve, raises his price till the demand is limited to meet his strength. This enables younger men at smaller prices to gain the opportunity to establish like reputations by doing equally good work.

Profits in agriculture.—The profits in agriculture are subject to the same laws. Many influences operate in both directions. The limitation of land fit for agricultural purposes has a tendency in itself to increase the profits of land-holders, under the principle of monopoly, though its chief effect is on land values. The increasing wealth of the world, and the greatly increased wants of the civilized community, multiplying manufactures, limit competitors more and more. The relative number of farmers in our country is gradually diminishing, while the demand for food is actually increasing beyond the increase in population. Men are predicting every year a scarcity price for wheat,—unwisely, probably,—through the limited range of possibilities in wheat raising. The introduction of labor-saving machinery enables enterprising farmers to greatly increase their product for the same number of acres, and still further to increase the range of management so as to make larger farms a possibility. The rapid advance of means of transportation has so widened the range of competition as to make the farmer in one part of the world compete with the farmers of every other part. The staple products, especially wheat, being so easily adapted to new countries, are constantly liable to over-production. At the same time the effects of a bad season in any particular region, while reducing the crop, are not [pg 255] likely to advance the price to the same extent as formerly. The opening of vast regions once considered deserts to a rapid settlement by farmers for the sake of the profits in land speculation has again and again wrought changes in the entire business of agriculture. Similar effects may be expected still with the development of South America, South Africa and Siberia.

All these facts tend now to make the profits in agriculture decline, and the fact that farm life has certain attractions in establishing permanent homes for families and life-time associations, contributes to this tendency by holding people to their place as farmers for at least a generation. The possibility of independent enterprise, even with small profit, and the freedom of family life from interference of neighbors make large numbers of farmers willing to continue their business in spite of the reduced earnings.

Fluctuation in profits.—It is proper to call attention to the rapid effects of any change in market upon the profits of any enterprise. Wages are in large measure an anticipation of profits, and so far as they are affected by changes in market prices, it is largely through estimates upon averages. Custom has much to do with wages demanded and paid, but profits are fluctuating constantly with the fluctuation of prices, with every change of methods affecting competition, with every introduction of improved machinery and with every accident of fortune.

No better illustration of this fact can be given than is familiar to every farmer in comparison of results from the work of different seasons. With the same outgo for [pg 256] labor he may find the profits of two successive years wide apart. One year has granted the fortune of good crops with fair prices, while the other has yielded him a half crop when the prices of his product in the world are low. Possibly the improved machinery in wheat raising, applicable to the great farms of Minnesota, Dakota and California, has caused him to bring a costly product into close competition with a cheap one. Possibly, too, he has been tempted to excessive use of labor-saving machinery himself at too great cost for the transition, and it is more than probable that, stimulated by the high price of oats last year, he, with thousands of his neighbors, has made an extra crop of oats this year, to the actual destruction of the market. In all these cases the farmer himself suffers directly, while his hired hand is affected only indirectly by the unwillingness of farmers in some seasons to employ as much labor.

Profits offset by losses.—The actual profits in any enterprise are often overestimated by our failing to notice that all the waste of unthrifty undertakings comes practically out of the profits of the more thrifty. Wage-earners as a class are protected against losses by frequent settlements and by public sentiment. The losses of the unthrifty managers come out of the accumulations of previous thrift, or else are borne by the thrifty men who have trusted them. The bulk of bad debts in failure of any enterprise is for materials, machinery, etc., furnished by other producers. In great financial depression, the profit-makers bear the evil directly, while the wage-earners feel the effects in the lessened competition for their service.