Alaska because the cost of living (or value of labor-power) is so extremely high in the far north that there is very little surplus value left for them.
The value of a commodity is determined by the average social labor contained in it. The Alaska steel manufacturer would have to compete in a world market just as the Bethlehem and Gary mills compete, and it is necessary social labor only that makes value.
Reports are coming from Guatemala of cotton manufacturers who are locating and establishing cotton mills there. The natives of Central America can live on very low wages. Almost all natives in Guatemala build and own their own thatched huts. The climate is warm and artificial heat is never needed. Nobody requires steam heat or base-burners. A cotton shirt and cotton trousers clothe a man as well as his neighbors, so that the cost of living is a very negligible quantity. Bread fruit and bananas grow wild, and 10 or 12 cents a day will keep a native in comfort. A recent magazine article, which dwelt upon the advantages of capital in Central America, reports that Guatemala natives receive, on the average, 9, 10 or 12 cents a day.
If the Central American natives were driven to toil as fiercely as we are of the states, Guatemala would be a heaven for capitalists. But it is still possible for them to live without much labor. When, however, the capitalists gain control of the land, so that the natives will be forced to sell their labor-power in order to live, more
