l development,
rather than concentration at a few points. The strain on the social and
political structure of the nation would be less, to-day, if our
industrial population were more widely distributed; and our problems of
civic and economic life would be simpler. That I believe to be true,
although it is probable that the wage earners in New York City are
better governed, have more freedom, and enjoy a healthier and more
stimulating environment than the wage earners in the smaller industrial
towns of Massachusetts or Pennsylvania, for example.

As to the second argument, it is true that differences in the cost of
living do indicate that the essentials of economic life can be procured
with a smaller expenditure of human labor and capital at some places
than at others. There is a further question, however. Does not the
ability of the enterprises established at the places where the cost of
living is relatively high, to compete with the others, denote a
compensating advantage in another stage of production? The answer
depends on two conditions. Are the enterprises in genuine competition
with each other? And secondly, do wages at the several places differ in
correspondence with the differences in the cost of living? To the extent
that these conditions hold true, any shift of industry away from the
points where the cost of living is low, as a result of wage
standardization, would not be uneconomical--in the sense of this
argument. For then, the ability of the enterprises established at the
points where the cost of living was relatively high to compete with the
others would indicate that they benefited by some compensating advantage
in their location.

Still another matter to be noted is that if differences in the cost of
living are recognized in the enforcement of standardization, there will
be some tendency for the abler and more energetic workmen to drift to
the points where money wages are higher. This movement is likely to
occur even though real wages are the same at the different places.

In addition to these theoretical considerations, one practical matter
should be called to mind. The relative scale of the cost of living at
the different points to which a standard wage might be applied does not
usually remain fixed over a considerable period. Small changes and
shifts in the relative scale occur constantly, and even large changes
may take place within a short time. Experience has shown that wage
differences which re