he 5,000 who are filling
such places, there are perhaps 50 who seem almost faultless in their
skill and industry, there are 500 who are with one or two exceptional
faults, almost equally efficient, there are 3,000 who are fairly good
men, and the rest may be classed as those who hold their positions
because better men for the place cannot be had. So with the skilled
machinists, the relation of supply and demand is such that the price of
their labor is kept up to perhaps $4.00 per day. But of common laborers
the supply is so related to demand that the price of their work is very
low. Thus the three classes take very unequal amounts from the common
stock. The superintendent, perhaps, is able to take five thousand
dollars' worth of goods each year. The skilled workman can spend perhaps
one thousand five hundred dollars, while the laborer can spend but five
or six hundred dollars. Thus the men who secure the greatest amount of
wealth in return for their services to the world, secure it because
people are willing to pay it rather than pay less for men of less
ability. This is not the same as rewarding a man according to the actual
benefit which he does to the community, but it is an approach to it; and
it seems to be as close an approach as is possible by human methods.

This social system is not the creation of any man or set of men, but has
grown of itself out of the tendency among men to secure the things they
wish for with the least exertion. And its theoretical working is
marvellously perfect. Any thing which men desire sufficiently to exert
themselves to secure it, can be bought with a small part of the time and
labor, measured in money, which would be required if each made it for
himself. Not only this, but the aim of every man is to do the greatest
service to the world and best meet its desires, thus securing in return
the greatest rewards for himself. Rivalry among purchasers constantly
tends to increase the rewards of the producers, while competition among
the latter tends toward the furnishing of a better article at a smaller
price. These two forces hold each other in stable equilibrium, for a
variation tends always to bring things back to their normal condition.

Let us look more closely at the theory of the competition among
producers. We see that, speaking broadly, all occupations are competing
with each other. If changes in the supply or demand raise the rewards in
any calling, men will leave other work to eng