STOCK EXCHANGE AND AMERICAN BUSINESS 485
ance policies. The fact that many far-sighted and progressive
corporations are encouraging their employees to become stock-
holders by purchasing the stock of the employing company,
and the possibility of largely composing the difficulties which
arise between capital and labor by thus merging the two classes,
has already been pointed out.™
But there is also a profounder although even more imper-
ceptible service which the organized markets render to the
laboring classes. Owing to the ability of these organized mar-
kets to finance increasingly efficient means of production, the
purchase price of goods has been gradually cheapened in
terms of wages and salaries, with the result that the standard
of living has gradually been raised.'> We shall say something
later in the present chapter concerning this great although in-
direct and slow-moving service of the organized markets, and
particularly of the Stock Exchange, to labor. If the working
classes realized the full value to their economic status of the
Stock Exchange, they would be the first to spring to its defense
when it is unjustly assailed.
The Stock Exchange and Our Middle Class.—Passing on
to cur so-called “middle class”’—our tradesmen, salaried exe-
cutives, doctors, lawyers and the like—the Exchange likewise
has its appropriate service to perform for them. The typical
fairly successful man derives in many respects the same general
benefits from the Exchange as does the laboring class. But as
a rule he experiences more fully the problems arising from the
saving and accumulation of wealth. With the first few thou-
sands he saves, he will probably buy real estate, get his life
insured, and start a savings bank account, thus at least becom-
ing a security investor by proxy. But after that point has
been passed the problem of how to invest his money safely and
yet profitably becomes a vital rather than merely an incidental
part of his economic existence. The problem may be intensified
by his inheriting money from relatives. If he is overcredulous
71 See Chapter IV, p. 119
12 See Chapter II, p. 52.
