the solution of the unemployed problem.  They have provided employment for certain known persons at the expense of throwing out of employment certain other unknown persons.  Since those who are thrown out of work in the labour market are, on the average, inferior in character and industry to those who are kept in work, the effect of the Salvation Army policy is to substitute inferior for superior workers.  The blind philanthropist may perhaps be excused for not seeing beyond his nose, and for ignoring “unseen” in favour of “seen” results.  But General Booth was advised of the sound economic conditions of his experiment, and seemed to recognize the value of the advice.  The defence of his action sometimes takes the form of a denial that the Salvation Army undersells outside produce in the market.  Salvation matches are sold, it is said, rather above than below the ordinary price of matches.  If this be true, it affords no answer to the objection raised above.  The Salvation matches are bought by persons who would have bought other matches if they had not bought these, and if they choose to pay 3d. for Salvation matches instead of 21/2d. for others, the effect of this action is still to take away employment from the 21/2d. firm and give it to the Salvation firm.  Indeed, it might be urged that a larger amount of unemployment is caused in this case, for persons who now pay 3d. for matches which they formerly bought for 21/2d., will diminish their expenditure upon other commodities, and the result will be to diminish employment in those industries engaged in supplying these commodities.  Here is another “unseen” result of fallacious philanthropy.

The inevitable result of the Salvation Army placing goods in the open market is to increase the supply relatively to the demand; in order that the larger supply may be sold prices must fall, and it makes no difference whether or no the Salvation Army takes the lead in reducing the price.  If the fall of price enables the whole of the increased supply to be taken off at the lower price, then an increase of employment has been obtained in this trade, though, in this case, it should be remembered that in all probability the lower level of prices means a reduction of wages in the outside labour market.  If the increased supply is not taken off at the lower prices, then the Salvation goods can only be sold on condition that some others remain unsold, employment of Salvationists thus displacing employment of other workers.  The roundabout nature of much of this competition does not impair one whit the inevitability of this result.

This objection is applicable not only to the method of the Salvation Army, but to many other industrial experiments conducted on a philanthropic basis.  Directly or indirectly bounty-fed labour is brought into competition with self-supporting labour to the detriment of the latter.  It is sometimes sought to evade the difficulty by confining the produce which the assisted labour puts upon the open market to classes