of living, means earnings. The
employees, on the other hand, contend that the computation
of the increase in wages should be based on the assumption
that wages mean rates of pay, and that the high earnings
which the railways show for the men are the result of
excessive hours worked. They claim that it is not valid to
assert that wages have kept pace with the increase in
prices, if an employee must work continually over the time
set for the minimum day in order to make his wages bear the
increased price of commodities."

[48] W. C. Mitchell, "Gold, Wages and Prices under the
Greenback Standard," page 102.

[49] For examples, see W. C. Mitchell, "Gold, Wages, and
Prices under the Greenback Standard," pages 102-3.

[50] See pages 92-3, this chapter.

[51] See W. C. Mitchell, "Business Cycles," pages 438-44.

[52] _Ibid._, page 558.

[53] _Ibid._, pages 449-450.

[54] See Laughlin, "Money and Prices," Chart III, page 86.

[55] See W. C. Mitchell, "Business Cycles," page 58.

[56] W. T. Layton, "Introduction to the Study of Prices,"
Appendix C, page 128.

[57] "The Carpenters' and Joiners' Case," Vol. I, S.
Australian Ind. reports, page 174.

CHAPTER VI--WAGES AND PRICE MOVEMENTS (_Continued_)

Section 1. The problems of wage settlement arising out of upward
price movements two in number: (a) Should wages be increased during
such periods? (b) If so, on what basis should increases be
arranged? The doctrine of the maintenance of the standard of life
analyzed.--Section 2. An alternative method of adjustment proposed,
based on a new index number.--Section 3. Periods of falling prices
also present two problems of wage settlement, similar in essentials
to those presented by upward movement. These problems discussed.

1.--We can now proceed to the consideration of the problems of wage
settlement which arise out of price movements. First, we will deal with
the problems presented by upward price movements. Then subsequently we
shall take those questions presented by price movements downward.

The problems presented by upward price movements are two in number.
Firstly, is there any reason why wages should be increased during a
period of advancing prices? Secondly, if there is reason, on what basis
should the increases be arranged?

The answer to the first of these questions is simple. In periods of
rising prices wage increases tend to lag behind the retail price
incr