Both of these assumptions he assails. Labor is not a "subject state;" nor is capital in any sense its master. There is "no such thing as a free man's being fixed for life in the condition of a hired laborer." So he affirms. And then he argues that "labor is prior to and independent of capital." "Capital is only the fruit of labor." "Labor is the superior of capital, and deserves much the higher consideration." Hired labor, and capital that hires and labors not--these do both exist; and both have rights. But "a large majority belong to neither class--neither work for others, nor have others working for them." This is measurably true even in the Southern States. While in the Northern States a large majority are "neither hirers nor hired." And even where free labor is employed for hire, that condition is not "fixed for life." "Many independent men everywhere in these Northern States, a few years back in their lives, were hired laborers." The "penniless," if "prudent," "labors for wages awhile;" "saves a surplus;" "then labors on his own account;" and "at length hires another new beginner to help him." "This is the just and generous and prosperous system which opens the way to all, gives hope to all." Here is a form of "political power;" here is a "popular principle" that underlies present national prosperity and strength, and infolds a pledge of its certain future abounding expansion. Thus Lincoln argued in his Annual Message of 1861. In his Annual Message of 1862, he pursued in a similar strain, a vital and kindred aspect of the same industrial theme. He was arguing with Congress in favor of compensated emancipation. In the course of that argument, speaking of the relation of freed negroes to white labor and white laborers, he said: "If there ever could be a proper time for mere catch arguments, that time surely is not now. In time like the present, men should utter nothing for which they would not willingly be responsible through time and in eternity." And then, after appealing with utmost patience and consideration and with ideal persuasiveness to every better sentiment and to every proper interest, he drew towards the close of his plea with these arresting, prophetic, almost forboding words, words richly worth citation for a second time:--"The occasion is piled high with difficulty, and we must rise with the occasion." "We must disenthrall ourselves, and then we shall save our country." "We cannot escape history." "The fiery trial through which we pass will light us down, in honor or dishonor, to the latest generation." "We know how to save the Union." "We--even we here--hold the power and bear the responsibility." "In giving freedom to the slave, we assure freedom to the free--honorable alike in what we give and what we preserve." "We shall nobly save or meanly lose the last, best hope of earth." "The way is plain, peaceful, generous, just--a way which, if followed, the world will forever applaud, and God must forever bless."