rtaking. The profits
really belong to the management of any undertaking, as return for the
exertion in that management. In every-day use the term wages is applied
only to the stipulated amount paid from time to time for services rendered
to another. There is practically no difference between such payments made
for service by the hour, day, week, month or year. If, however, the
engagement for service is by the year, the name salary is more likely to
be given than wages.

Further, the term wages is most distinctly applied when the service is
rendered as a task, and wage-earners when found in considerable bodies are
usually called operatives, under the natural classification of labor
explained and illustrated in Chapter III (page 35).

The services of an overseer are much more likely to be permanently
required, and his wages are therefore called a salary, estimated by the
year even though payments be made monthly or even weekly. In this case,
the labor is chiefly executive, taking a higher rank because of the
greater powers required. In this case the overseer is supposed to have
definite plans provided for his work, and to carry out those plans to the
best of his ability.

If, in contrast with this, one's efforts are given to managing a business,
devising the ends to be accomplished as well as planning for their
accomplishment, he is said to have entire responsibility for results and
to receive what he can make out of the business. His exertion is chiefly
speculative labor, and the returns for his _speculation_ or
foresight--often effort of the severest kind--are termed profits. Such
efforts have already been illustrated in Chapter III, page 35. No
generally accepted name has been given to the one who thus carries the
entire responsibility of the business, but the word manager conveys to
most people the general idea involved. While it is true that a manager may
sometimes work for a salary, in general the very inventive ability
required for success makes the stimulant of profits the most natural means
of securing higher effectiveness. Most managers, even of stock companies,
must from the nature of the case be at least sharers in the profits.
Farmers easily distinguish between those who work for stipulated wages,
often called farm hands, and the farmer himself, who gets the pay for all
his endless variety of labor, including his constant planning, in the
shape of profits.

_Wages defined._--Hence it is fair to define wag