productiveness of his labour on the other. The first affects the demands of the workers, the second the terms granted by the employers.

But now, I beg my honoured fellow-countryman particularly to note what I am about to say. The habits of the masses are not unchangeable. Every human being naturally endeavours to live as comfortably as possible; and though it must be admitted that custom and habit will frequently for a time act restrictively upon this natural tendency to expansion in human wants, yet I can assert with a good conscience that our unhappy brethren in the Flowery Land did not go hungry and half-clad because of an invincible dislike to sufficient food and clothing, but that they would have been very glad to accustom themselves to more comfortable habits if only the paternal wisdom of all the Chinese governments had not always prevented it by most severely punishing all the attempts of the workers to agitate and to unite for the purpose of giving effect to their demands. Workers who united for such purposes were treated as rebels; and the wealthy classes of China--this is their folly and their fault--have always given their approval to this criminal folly of the Chinese government.

I call this both folly and crime, because it not merely grossly offended against justice and humanity, but was also extremely detrimental to the interests of those who thus acted, and of those who approved of the action. As to the government, one would have thought that the insane and suicidal character of its action would long since have been recognised. A blind man could have seen that the government damaged its financial as well as its military strength in proportion as its measures against the lower classes were effective. The consumption by the masses has been in China, as in all other countries, the principal source of the national income, and the physical health of the people the basis of the military strength of the country. But whence could China derive duties and excise if the people were not able to consume anything; and how could its soldiery, recruited from the proletariate, exhibit courage and strength in the face of the enemy? This oppression of the masses was equally injurious to the interests of the wealthy classes. While the Chinese people consumed little they were not able to engage in the more highly productive forms of labour--that is, their labour had a wretchedly small utility because of the wretchedly small cost at which it was produced.

Thus the Chinese employer could pay but little for labour, because the worker was prevented from demanding much in such a way as would influence not merely the individual employer, but the labour market in general. The individual undertaker could have yielded to the demands of his workers to only a limited degree, since he as individual would have lost from his profits what he added to wages. But if wages had risen throughout the whole of China, this would have increased the demand to such a degree that Chinese labour would have become more productive--that is, it would have been furnished with better means of production. The employers would have covered the rise in wages by the increased produce, not out of their profits; in fact, their profits would have grown--their wealth, represented by the capitalistic means of labour in their possession, would have increased. Of course this does not exclude the possibility that some branches of production might have suffered under this general change, for the increase of consumption resulting from better wages does not affect equally all articles in demand. It may be that while the average consumption has increased tenfold, the demand for a single commodity remains almost stationary--in fact, diminishes; but in this case it is certain that the demand for certain other commodities will increase more than ten-fold. The losses of individual employers are balanced by the proportionately larger profits of other employers; and it may be taken as a