great area and
economic diversity of the United States?--Section 2. Differences in
natural or acquired advantage between different enterprises as a
reason for modification and limitation of the principle.--Section
3. Differences in the character of the work performed by any large
group of wage earners as a reason.--Section 4. Differences in the
cost of living at different points within the area of
standardization as a reason.--Section 5. The grounds for "nominal
variations" in standard wage rates. The policy to be pursued in
regard to payment for irregular employment.--Section 6. The
possibility of maintaining standard wage rates over a large and
diversified area considered.--Section 7. Up to the present, the
progress of standardization has not proceeded in accordance with
reasoned conclusions as to the results produced.--Section 8. Where
should level of standardization be set? The doctrine of
"standardization upward."--Section 9. The importance of the
principle of standardization in wage settlement.

1.--We have now completed our analysis of the general effects to be
expected from the enforcement of wage standardization throughout
industry. That analysis was carried out on the underlying assumption
that the general economic position of the industrial enterprises which
would be included within any area of standardization was substantially
alike. That assumption must now be given up. A further question must be
faced. That is whether the principle of standardization, as put forward
up to this point, should be limited or varied in any way because it
would have to apply, as a matter of fact, to an area so great and so
diversified in economic character as the United States, and to an
industrial situation which is the product of a great number of separate
impulses, and which is made up of a vast number of separate interests.

2.--We will consider in order the grounds upon which limitation or
variation of the principle of standardization has been argued for in the
past--limiting ourselves, as we must, to the most important. The first
that may be taken up has arisen almost every time that wage
standardization has been introduced into a craft or industry. It is the
contention that, due to differences in natural or acquired advantage
possessed by different enterprises in the same industry, certain going
enterprises will be forced to cease product