Repository: UIHistories Project: Board of Trustees Minutes - 1884 [PAGE 72]

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76 in the amount of capital invested and in the aggregate' value of the productions. Her progress has been as notable in this respect as in agriculture. Here are the figures: 1850 186<* 1870 1880 No.ofestablishm'ts, .3,162 4,268 , 12,597 14,549 Capital $6,217,765 $27,548,568 $94,368,057 $140,652,066 Persons employed. 11,559 22,968 82,979 144,727 Wages paid $3,204,336 $7,637,921 $31,100,244 $57,429,085 Material u s e d . . . . . ' 8,959,827 35,558,782 127,600,027 289.843,907 Value of products.. 16,534,272 57,580,886 205,620,672 414,864,873 Produced value..... 7,474,045 22,022,104 78,020,645 125,020,766 Share of labor. . . . 20% 13.5% 15% 14% Share of material.. 55% 62% 62% 70%' Share of capital .. 25% 24.5% 23% 16% Profit on capital.. . 70% 52% , 50% In the estimate of shares we take the total value of the product as the unit; we set aside the cost of the materials used, and the amount paid for labor; the remainder is that which may be returned to capital, for rent, interest, and profit. The relatively increased share of materials may be taken to indicate in part, progress in the kinds of manufactures carried on. The product of the earlier stage of manufacturing may become the material of a later stage, as the leather of the tanner becomes the stock of the shoemaker. It may also indicate that closer competition causes a smaller margin, of produced value to be divided between capital and labor. It may also show that the constant introduction of machinery and of improved process increases the relative amount of product and cheapens its relative value. A comparison of the rates of division of the produced value between labor and capital for the several periods stands thus, produced value being the unit: 1850 Share of labor . . . . 44% Share of capital... D6% 1860 35.5% 64.5% 1870 39.5% 60.5% 1880 46.6% 53.4%

I have neither the time nor the disposition to discuss here the vexed question, the indeterminable problem, whether labor h&s or has not its rightful share of the value which it helps to produce. I note simply the fact that in 1880 the share of labor was higher than at any time before in three decades, and that it has been steadily on the increase; while the profits of capital, whether as related to labor, or to the volume of production, or to the amount of capital employed, has been as steadily decreasing. I have not had time to investigate these items as related to the industries of the whole country, but it can not be presumed that Illinois should present conditions materially different from those which generally prevail.