Naturally, in this line of argument, I shall be met by the oft-repeated question: "Do you then advocate the reduction of the wages of our mechanics to the level of 'pauper labor' in Scotland?" By no means but while explicitly in favor of such free trade in general as will make a dollar go as far in the United States as four shillings now go in Great Britain, I maintain that in the particular industry of ship owning, so long as the necessity for higher wages is imposed upon us, we ought to avail ourselves of any labor, "pauper" or otherwise, by which steamships are built, because other nations are so doing and are prosecuting for their manifest advantage this vastly more important business upon the ocean, which we are forbidden to engage in, because we cannot build ships. The homely illustration at the close of the parable on the concluding page, is certainly applicable. We are not allowed to whittle, because we cannot make jack-knives. On the other hand, my friend Mr. Roach will, if he is not engaged for the moment in asking for subsidies for the very reasons I have just adduced, most confidently assert that, on account of the superiority of his machinery, and the energy of his workmen, attained by "breathing the pure air of liberty," he can overcome all the difference in wages, that he has already done so, and that he "can now build steamships cheaper and better than they can be built upon the Clyde." Mr. Denny sends the following memorandum under date of February 5th, 1878: "_Prices of steamers of various sizes similar to those at present employed in the Atlantic passenger trade._ 1st, 2,000 gross tons, speed on trial, 13 knots, cost L44,000 2d, 3,000 " " 13-3/4 " " 62,000 3d, 4,000 " " 14-3/4 " " 96,000 4th, 5,000 " " 16 " " 147,500 The whole of these prices include the builders' profit, which has been put down at the usual one we expect for our work. I enclose rates of payment our men get while employed on time, but our boiler-platers work almost wholly by the piece. Also rates paid to men in the ship-yard while on time, but this system of payment has been almost entirely abandoned there in favor of piece work, which you may safely say reduces the cost of labor from ten to twenty per cent., as compared with time work. However, for such of them as are employed on time, the rates I give you are correct. In the foregoing prices of ships I have given you, you may say that 27-1/2 per cent. of the total cost at present price of materials may be put down against labor, but of course this will vary as the prices of materials vary. _Rates of wages paid on Clyde to men employed in the manufacture of iron ships--apprentices excluded_: