Speech #530043014

It is conceded that wages are higher in the United States than anywhere else. and the protectionists claim that it is so because of protection. A complete answer to this is found in the fact that wages were much higher here than in foreign countries before our protective system was adopted. and are muchhigher in England. where they have free trade. than in Germany or France. where they have protection. but the truth is that wages are regulated by the supply of and demand for the service of the laborers. If there were not enough mechanics in this country to do the necessary work in any particular trade. those who were here could command almost any price for their services until their high wages would cause their numbers to be increased by immigration or by others taking up their calling. but if a part of the mechanics could do the work in their line. the competition would cut down the price until the wages would become so low that a portion of them would have to seek other fields of employment. In this way the equilibrium between the demand for and supply of laborers is regulated. When it is considered that over onehalf of the manual laborers in this country are engaged in agricultural pursuits. it will be perceived that anything which reduces the returns for agricultural services and diverts m.ny from that calling must necessarily produce competition which will cause a reduction in the wages of those engaged in all the other avocations.