known persons at the expense of throwing out of
employment certain other unknown persons. Since those who are thrown out
of work in the labour market are, on the average, inferior in character
and industry to those who are kept in work, the effect of the Salvation
Army policy is to substitute inferior for superior workers. The blind
philanthropist may perhaps be excused for not seeing beyond his nose,
and for ignoring "unseen" in favour of "seen" results. But General Booth
was advised of the sound economic conditions of his experiment, and
seemed to recognize the value of the advice. The defence of his action
sometimes takes the form of a denial that the Salvation Army undersells
outside produce in the market. Salvation matches are sold, it is said,
rather above than below the ordinary price of matches. If this be true,
it affords no answer to the objection raised above. The Salvation
matches are bought by persons who would have bought other matches if
they had not bought these, and if they choose to pay 3d. for Salvation
matches instead of 21/2d. for others, the effect of this action is still
to take away employment from the 21/2d. firm and give it to the Salvation
firm. Indeed, it might be urged that a larger amount of unemployment is
caused in this case, for persons who now pay 3d. for matches which they
formerly bought for 21/2d., will diminish their expenditure upon other
commodities, and the result will be to diminish employment in those
industries engaged in supplying these commodities. Here is another
"unseen" result of fallacious philanthropy.
The inevitable result of the Salvation Army placing goods in the open
market is to increase the supply relatively to the demand; in order that
the larger supply may be sold prices must fall, and it makes no
difference whether or no the Salvation Army takes the lead in reducing
the price. If the fall of price enables the whole of the increased
supply to be taken off at the lower price, then an increase of
employment has been obtained in this trade, though, in this case, it
should be remembered that in all probability the lower level of prices
means a reduction of wages in the outside labour market. If the
increased supply is not taken off at the lower prices, then the
Salvation goods can only be sold on condition that some others remain
unsold, employment of Salvationists thus displacing employment of other
workers. The roundabout nature of much of this competition does n
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