r industries because of high profits in
these industries, and spreading over a large part of the field of
industry. For, as has been emphasized, organized groups of wage earners
will not accept passively a change for the worse in their position in
the economic scale. Finally, there is a safeguard in the fact that no
wage increase need occur in any industry except upon the demand of the
wage earners in that industry. Joint discussion might make it clear that
wage increases could not be well afforded in particular industries, and
joint agreement reached upon that fact. The self-interest of the wage
earners, here as elsewhere, would prove to be some sort of a check upon
unwise wage increases.

As to the second possibility--that wage increases undertaken on the
showing of data derived from all industries may be considerably less
than the increases required in particular industries to bring down the
profits return in those industries to the approved level--that, too, is
entirely conceivable. But against this disadvantage must be weighed
those which would be attendant upon any measure by which wages in
particular industries are adjusted by reference to the profits return in
those industries, which subject has already been considered. The fact
must be accepted. In any plan such as the one proposed, faith would have
to be put in the power of indirect influences to keep the profits return
in particular industries from greatly and consistently exceeding the
approved level.

By way of conclusion, it may be made clear that any such plan as the
proposed would call for the assent of the wage earners to the doctrine
that, when the profits return in particular industries is greatly in
excess of the approved level for industry as a whole, the community in
general have the leading claim to those profits. It is plain that union
assent to that doctrine would be forthcoming only if the community made
effective its claims. The attainment of a just distributive outcome--one
based upon considerations of the general interest--will be essential to
the success of any policy of wage settlement for industrial peace.

FOOTNOTES:

[147] M. B. Hammond, "Wage Boards in Australia," _Quarterly
Journal of Economics_, November, 1914, February, March,
1915. E. Aves, "Report on Wage Boards and Industrial and
Conciliation Acts of Australia and New Zealand" (1908).

[148] Letter dated March 16, 1920.

[149] See pages 256-60, this chapter, for a furthe