We suppose no English working man of the present day needs to be taught that it is the interest of the individual capitalist, as well as of the capitalist class generally, to reduce wages as much as possible. The produce of labour, after deducting all expenses, is divided, as David Ricardo had irrefutably proved, into two shares: the one forms the labourer's wages, the other the capitalist's profits. Now, this net produce of labour being, in every individual case, a given quantity, it is clear that the share called profits cannot increase without the share called wages decreasing. To deny that it is the interest of the capitalist to reduce wages, would be tantamount to say that it is not his interest to increase his profits.

We know very well that there are other means of temporarily increasing profits, but they do not alter the general law, and therefore need not trouble us here.  
 
Wages pushed down, hours extended
Now, how can the capitalists reduce wages when the rate of wages is governed by a distinct and well-defined law of social economy? The economical law of wages is there, and is irrefutable. But, as we have seen, it is elastic, and it is so in two ways. The rate of wages can be lowered, in a particular trade, either directly, by gradually accustoming the workpeople of that trade to a lower standard of life, or, indirectly, by increasing the number of working hours per day (or the intensity of work during the same working hours) without increasing the pay.

And the interest of every individual capitalist to increase his profits by reducing the wages of his workpeople receives a fresh stimulus from the competition of capitalists of the same trade amongst each other. Each one of them tries to undersell his competitors, and unless he is to sacrifice his profits he must try and reduce wages. Thus, the pressure upon the rate of wages brought about by the interest of every individual capitalist is increased tenfold by the competition amongst them. What was before a matter of more or less profit, now becomes a matter of necessity.

Against this constant, unceasing pressure unorganised labour has no effective means of resistance. Therefore, in trades without organisation of the workpeople, wages tend constantly to fall and the working hours tend constantly to increase. Slowly, but surely, this process goes on. Times of prosperity may now and then interrupt it, but times of bad trade hasten it on all the more afterwards. The workpeople gradually get accustomed to a lower and lower standard of life. While the length of working day more and more approaches the possible maximum, the wages come nearer and nearer to their absolute minimum--the sum below which it becomes absolutely impossible for the workman to live and to reproduce his race.

There was a temporary exception to this about the beginning of this century. The rapid extension of steam and machinery was not sufficient for the still faster increasing demand for their produce. Wages in these trades, except those of children sold from the workhouse to the manufacturer, were as a rule high; those of such skilled manual labour as could not be done without were very high; what a dyer, a mechanic, a velvet-cutter, a hand-mule spinner, used to receive now sounds fabulous. At the same time the trades superseded by machinery were slowly starved to death. But newly-invented machinery by-and-by superseded these well-paid workmen; machinery was invented which made machinery, and that at such a rate that the supply of machine-made goods not only equalled, but exceeded, the demand. When the general peace, in 1815, reestablished regularity of trade, the decennial fluctuations between prosperity, overproduction, and commercial panic began. Whatever advantages the workpeople had preserved from old prosperous times, and perhaps even increased during the period of frantic overproduction, were now taken from them during the period of bad trade and panic; and soon the manufacturing population of England submitted to the general law that the wages of unorganised labour constantly tend towards the absolute minimum.  
 
Workers need to be organized
But in the meantime the Trades Unions, legalised in 1824, had also stepped in, and high time it was. Capitalists are always organised. They need in most cases no formal union, no rules, officers, etc. Their small number, as compared with that of the workmen, the fact of their forming a separate class, their constant social and commercial intercourse stand them in lieu of that; it is only later on, when a branch of manufacturers has taken possession of a district, such as the cotton trade has of Lancashire, that a formal capitalists' Trades Union becomes necessary. On the other hand, the workpeople from the very beginning cannot do without a strong organisation, well-defined by rules and delegating its authority to officers and committees. The Act of 1824 rendered these organisations legal. From that day Labour became a power in England. The formerly helpless mass, divided against itself, was no longer so. To the strength given by union and common action soon was added the force of a well-filled exchequer--"resistance money," as our French brethren expressively call it. The entire position of things now changed. For the capitalist it became a risky thing to indulge in a reduction of wages or an increase of working hours.

Hence the violent outbursts of the capitalist class of those times against Trades Unions. That class had always considered its long-established practice of grinding down the working class as a vested right and lawful privilege. That was now to be put a stop to. No wonder they cried out lustily and held themselves at least as much injured in their rights and property as Irish landlords do nowadays.¹

Sixty years' experience of struggle have brought them round to some extent. Trades Unions have now become acknowledged institutions, and their action as one of the regulators of wages is recognised quite as much as the action of the Factories and Workshops Acts as regulators of the hours of work. Nay, the cotton masters in Lancashire have lately even taken a leaf out of the workpeople's book, and now know how to organise a strike, when it suits them, as well or better than any Trades Union.  
 
Wage slavery
Thus it is through the action of Trades Unions that the law of wages is enforced as against the employers, and that the workpeople of any well-organised trade are enabled to obtain, at least approximately, the full value of the working power which they hire to their employer; and that, with the help of State laws, the hours of labour are made at least not to exceed too much that maximum length beyond which the working power is prematurely exhausted. This, however, is the utmost Trades Unions, as at present organised, can hope to obtain, and that by constant struggle only, by an immense waste of strength and money; and then the fluctuations of trade, once every ten years at least, break down for the moment what has been conquered, and the fight has to be fought over again. It is a vicious circle from which there is no issue. The working class remains what it was, and what our Chartist forefathers were not afraid to call it, a class of wages slaves. Is this to be the final result of all this labour, self-sacrifice, and suffering? Is this to remain for ever the highest aim of British workmen? Or is the working class of this country at last to attempt breaking through this vicious circle, and to find an issue out of it in a movement for the ABOLITION OF THE WAGES SYSTEM ALTOGETHER?

Next week we shall examine the part played by Trades Unions as organisers of the working class.