in
particular, upon working conditions for the American laborer.

Consider, too, the question of "social surplus." Several American
economists, among them Professors Hollander, Patten and Devine, agree that
we are creating annually in the United States a substantial social
surplus. But it is evident from the figures of wages and standards of
living quoted above that the American laborer is not participating as he
might expect to participate in this economic advantage. Three factors
conspire against him. First, we have yet no adequate machinery for
determining exactly what the surplus is, or how to distribute it
equitably. Mr. Babson with his "composite statistical charts" has made a
beginning in the mathematical determination of prosperity; but it is only
a beginning. Second, organized labor is not yet sufficiently organized nor
sufficiently self-conscious to perceive and demand its opportunity for a
larger share. The significant point here is that recent immigration has
hampered and hindered the development of labor organizations, and thus
indirectly held back the normal tendency of wages to rise. Third,
inadequate education, particularly economic and social education. The
adult illiterate constitutes a tremendous educational problem. Over 35 per
cent of the "new immigration" of 1913 was illiterate, and this new
immigration included over two-thirds of the total. Ignorance prevents the
laborer from demanding the very education that would give him a better
place in the economic system; it hinders the play of intelligent
self-interest; and it actually prevents effective labor-organization,
which is one of the surest means of labor-education. Jenks and Lauck,
after experience with the Immigration Commission, concluded that "the fact
that recent immigrants are usually of non-English speaking races, and
their high degree of illiteracy, have made their absorption by the labor
organizations very slow and expensive. In many cases, too, the conscious
policy of the employers of mixing the races in different departments and
divisions of labor, in order, by a diversity of tongues, to prevent
concerted action on the part of employes, has made unionization of the
immigrant almost impossible."

For these reasons, and others, we are driven to the conclusion that future
policies of immigration must be based on sound principles of social
welfare and social economy, and not upon the economic advantage of certain
special industries. Whet