The Socialist theory of value is all right, my friend, and has not been disturbed by the assaults made upon it by a host of little critics. But Socialists have always known that the laws of competitive society do not apply to monopoly, and that the monopolist has an increased power to exploit and oppress the worker. That is one of the chief reasons why we demand that the great monopolies be transformed into common, or social, property. _The fourth principle of Socialist economics is that the wages of the workers represent only a part of the value of their labor product. The remainder is divided among the non-producers in rent, interest and profit. The fortunes of the rich idlers come from the unpaid-for labor of the working class. This is the great theory of "surplus value," which economists are so fond of attacking._ I am not going to say much about the controversy concerning this theory, Jonathan. In the first place, you are not an economist, and there is a great deal in the discussion which is wholly irrelevant and unprofitable; and, in the second place, you can study the question for yourself. There are excellent chapters upon the subject in _Vail's Principles of Scientific Socialism_, Boudin's _The Theoretical System of Karl Marx_, and Hyndman's _Economics of Socialism_. You will also find a simple exposition of the subject in my _Socialism, A Summary and Interpretation of Socialist Principles_. It will also be well to read _Wage-Labor and Capital_, a five cent booklet by Karl Marx. But you do not need to be an economist to understand the essential principles of this theory of surplus value and to judge of its truth. I have never flattered you, Jonathan, as you know; I am in earnest when I say that I am content to leave the matter to your own judgment. I attach more importance to your decision, based upon a plain, matter-of-fact observation of actual life, than to the opinion of many a very learned economist cloistered away from the real world in a musty atmosphere of books and mental abstractions. So think it out for yourself, my friend. You know that when a man takes a job as a wage-worker, he enters into a contract to give something in return for a certain amount of money. What is it that he thus sells? Not his actual labor, but his power and will to labor. In other words, he undertakes to exert himself in a manner desired by the capitalist who employs him for so much an hour, so much a day, or so much a week as the case may be. Now, how are the wages fixed? What determines the amount a man gets for his labor? There are several factors. Let us consider them one by one: