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Tous les autres exemplaires originaux sont film6s en commenpant par la premidre '"age qui comporte une empreinte d'impression ou d'illustration et en terminant par la dernldre page qui comporte une telle empreinte. Un des symboles suivants apparaitra sur la dernidre image de cheque microfiche, selon le cas: le symbole — »- signifie 'A SUIVRE ', le symbole V signifie "FIN". Les cartes, planches, tableaux, etc., peuvent dXre filmds d des taux de r6duction diffdrents. Lorsque le document est trop grand pour &tre reproduit en un seul clich6, il est film6 d partir de rangle supdrieur gauche, de gauche d droite, et de haut en bas, en prenant le nombre d'images ndcessaire. Les diagrammes suivants illustrent la mdthode. 1 Capilal and Labour "Now these 1)0 tho Iii~t wonliof D.ivil. D.iviJ tho son of Jesso Siiid, and tho man who was raised up on lii^li, tho anointt'd of the (Jod of Jacob, and tho swoct p-alniist of I.-raul said, Tho Spirit nf tho T/ird spako by mo, and Ilis word was in Mv tonguo. Tho (i.jJ of Israel said, tin' Uook of Israel spako to mo : ' llo X]y.d rwh'ih OM'i- men iiiii'^t /iijiii,', ruliiii/ in the fed)- nf (iuii. And ho shall bo as tho light nf tlie nioniiiii:; wlicn tho sun rineth, oven a morning withont elond-i a.i the ti ndcr grass spiingcth out of the earth by the clear shining of the mui ;.tler riiin.' " i T'.IK INDUSTRIAL rOf^ICY OF ENGLAND IX TIIH YEAR EIGIITKEX m'XHUKn AXI) SEVEXTY-SEVEX. A SECOND LETTER TO THE PUBLIC. Liiti.i' lUl'l Cdpltdl. ! Biiid, and tlio !uid the swoct lis wold was to mc : ' Uo ho .shall bu tliout (.loiul-i V' ul' tllO Mill r.Y K U K LOS. LONDON : rUBLI?;iIED 1!Y JOIIX HARRIS. I L (V I'RIXTED 1)Y WKRTIIEIMER, LEA & CO., tmcvs I'L.vrr., iin>iuuy tiuri s, Of irhom Ciiiiif niit'J ho obtaiiuJ. Jaxl-akv, 1878. Tt i'' ti1 .so 7', si: CM CC Cf tl] ai tc C( k SKCOXl) Ll-rrTKli TO IMIl-: ITHLIC n ON •iiii-; INDUSTRIAL rOLICY OF ENGLAND IX .i;'(iHTi:i:.\ iirxnRKD and sEV':NiV.si;vi:\. Lo.Mio.v,* Di'i'eiiiher '2U/<, 1877. J Tjik I'n'.LK', — Our iirst lettor, i)iil)lishcd in October, en- titled "The Conniierciul Policy of Engliind," was soon fullo^\■ed Ly ;i letter on the same subject in Thr Times newspaper I'roni Lord IJatenum, and, since that time, a general discussion on the expedi- ency of tlic Tree Trade policy adopted by this country, has taken place, sufKciently active to indi- cate a very widespread dissatisfaction in regard to the conniicrcial state of alfairs now existing, and anxiety as to the future industrial prospects of J aigland. Under these circumstances we take the earliest opportunity to fulfil our promise of a second letter to the public on wluxt i.s, and what should be tho economical policy of a nation possessing the privi- le":cs, advantages, o})portunities, and wealth which wc enjo}^, when called upon to actively acknow- ♦ Publication of tliis loiter lias been delayed ubout a furtnit;lU.-J. U. 4 T!ir. IN'DI'STIJl.M- roi.K'V ••!• r.N(;i,.\M>. I.hI.t \hv lii-luT iTsi..M.sn.ilIfHs Mini -luti.'S ^vlu.•h prv'tMln 1.. llM.sP possessions. As it Iwipi.-iuHl or, tl.r fornuT n.rasi.MK so it Imppcns i.-aiu, thi.t wo ,vo fortm.ato in (Inain.u- in 77. /'-7.v 7' /, ;/../J. an avticl." well n.lai.tcMl Inr tl.o .lor,l.lo purposoot spo.a- fylu- certain opinions, now .nl.Tfain.Ml, wln.-li w.^ avo (losirous to MiLjid to examination, an.l ol Inr- nishlnu- ivlial>lo aiul uscfnl inlnnnatiun rtt-il to scTVo as (lata on whi<-li to -rouinl nuv ai-an.cnls, au.l, also, to uive that iniincdiato and pradi.'al clia- vactor to tl,o (lixaission wlii.-h isospocially .U-siral.le. TA. y)„;///7'. /> ;//v'y'/' «'n)(rnnber ;.M»tli. 1ST7, says:— .'Those of uur ,ouutryinen wUohavo a stake in manufacturing or ..ommcvcial cnteq.rlso cannot fail to l.o s.nuowhat anx:ous just ,„,vinvo,..vatotlu4n-osiK...tsofi;riti.htnnlo.Tlu.pat.on..oofho conm^nnitv, in ^vaitin,^ for the V, turn of inaushial an.l nuuvantdo pvosrerit; contlnnos to l.o taxo.l, without any inuuo,Uato pvospoct of their long c.h..vi>lu.l hopes hoing realisea. The latest IJoard of Tra.lo returns .how a consiaerable increase in the value of imports hut the advanco in exports is as yet hardly appro, .able, and ,inco the excess of tho former over the latter indicates an annual average balance ..f trade against ns for tl>e present year, aniountingto more than one hundred and forty nulhous the a^^rogato business wo t^-ansaet with foreign natnms canm.t be ar^me^l satisfactory. Ten per eent. may fairly be deducted from that sum for freight, insurance, and incidental charges upon the excess of imports. But even after n.alr r,Niir,\Ni». ; wliifli Ucd nil tluit we r^tj'h ail nt'speci- lilcli wo, 1 (.f I'lir- I'tt-il to :iiuu'iit>, ii'iil clia- Icsirablo. , says: — III fact uri lis uxious just ioiu'o of the mrrcantili' .to prospect ■st I'uaril of >uf imports, ciablo, iind s an annual ■(•sent year, lillions, tlio IS cannot lio ducted from liavgcs upon is allowaneo [■ the account I y, in accord, ■liavactor. In lis for textile own require- ) and foreign lid Yorkshire nro nt pronent wurki'd oii short tiiuo, und in tho iron districts of Monmouthshire, Durham, Northumberland, anS; Co., tho holding manufuiturers of iron rails in tho Middlesborough district, in view of tho disastrous crisis whi. li has overtaken this industry, have recently felt com- pelled, wall other houses engaged in tho same branch, to re- eonstruct their ("yilopcan forg<'s, and adapt them, at enormous expense, to tho nianufa'turo of steel. The deeliuo in steel and iron transactions 1. :.woen Ihigland and Italy has of lato years been most marked. For soruo time subsequent to tho introduction of railways into the latter country, railway plant was exclu- sively imported from Great Britain. It now appi'ars, however, that Englisli makiu-s aro losing their liold ou Italian markets, and are beaten out of tlie held by tho compotitiou of Franco, Germany, and lieigium. A ehango similarly nnfavourablt! to uur metallic industries is visible in other parts of tho T'ontinent, and the rival countries wo have meulioned aro receiving orders for locomotives, axles, tyres, springs, and tools, which wore for- merly executed by our own manufacturers, lint tlio heaviest blow sustained in the export department aiiects our trade with tho United States. In l80o the value of ]?ritis!i exports to tlio Union amounted to 1 '22,000,000 dollars against H l.TOU.OOOdoUars imported by us from that country during the samo period. Last year[187()], however, the tables were turned; for, while our exports -to the States had dwindled to 98,000, 000 dollars, tho value of the goods imported reached tho largo sum of ;3(j7,;J.32,O0O dollars, 'showing a balance in favour of America, in twelve months, of 2G'J,O0O,0CO dollars. " Amidst the protracted trial to which commerce has been subjected, wo have some doubtful consolation. A\'c aro reminded that the entire value of British manufactures sent aliroad con- stitutes but an insignificant part of tho £1,200,000,000 which is the estimated gross annual income of the country ; that, though ('. •Illi: INIU'STIMAL I'or.K'Y OF r.NciLAXD. Bomcwlmt trii'pled, wo should not If hoprlrsHly luconvcniomiil if Iho wlitilo of our foreign custom M'oro lost ; iiud that tlio fiipitul Bunk iu till' mochauital apiilinnci'H necessary to i»rodu((> tlio luaiiufactures we export, to tlio yearly value of i! 1 lO.dOO.OUO, g>iaranteo3 oureoutiuued iudustrial supreiuacy. We aro eu- couraged Ly cortnin visionary econoniists to helievo tiiat tlio trade luilanco aj^ainst ua is npiiroxiniateiy li(iuidated liy tlio vessels we build for loroign shipowners, and by tlio investment, of llritish capital iu mines, railways, and other enterprises abroad. I'.ut, whatever plausibilily altaehea to such state- ments, they proceed on tiio fallacious assumption that the prospovily of tho population as a whole can bo justly estimated by tho I'xtcnt of tho gross annual earn- ings of the community, a largo proportillil.\l, I'Ol.lrs oi' i:N(;l.\NI). iconvcniontctl if tliat llio capital to pi'uiliici.' tlio li'l 10,000,000, ■, Wi) aro vn- loliovo that tho [iiiilatoil liy llio r tho investment llier entevpvif-e3 to such stato- ssumptiou that whoh) can bo 9 nuiuial cnvu- n of which in 10 derived fnmi feed, and backs rniui vents, rail- uf tho soih And 1 fulls oil', desti- I emharrassmout 10 ucec8sai'ic3 of ' exceeding that iiblie creditor, or itely ascertained produced by an lahlo to produce population, buys om abroad with It is the incoino fls of her internal ign conimcrco — if 3rially reduce tho . agricultural in- i on her manual y, directly or iu- irnings. To treat f England, there- fore, a.s of secondary coii>ideration, is to ignoro tho causes of her past material greatness and lu r (iituid [irogress. KxiHting dipreg.sion is to bo removed, aidirding to u certain scliool of tlnorists, liy the enactnn lit of reciprocity treaties. They would (oiiipel us to admit duty free to our ports tlie wares of countries vhieh at iiresont handicap English mauulaiturcs with licavy tariU'H, only on condition >'[■ their aljolisiiing these restrictions. ]!ut tho absurdity of tlio rcciiiro( ity agitation is obvious at u glance. If a baker wlio sells bread of goud (pialily at a low- price chooses to phue obstructions in tlin way of a travelling drainer approaching his sliop for tiio purpose of selling linen and silk, ought tliis fo(di^h conduct of the liakor to prevent tho draper from buying liia bread where it can be procured cheapest, merely because tlio proprietor has a prejudice against dealers in textiles? According to tlio puliev of reciprocity, the draper bhoidd rotaliato on tho baker for refusing to pureliaso his cloths, by paying a higher price for his bread at anotiior shop. The sound principle of trade con>,ist3 of buying in the cheapest and selling in tho dearest market. If, however, fiscal restric- tions should sometimes interfere with tho transport of our manu- factures to a dear market, that is no reason why wo should decline to buy what wo want in a iliea[) one. "In view of prohibitory tarill's, manufacturing competition, and home strikes, which at present combine to menace gravely our trndo with most of the countries in Europe and America, tho practical upshot centres in the inquiry, AVhnt is tho probable future of r.ritish industry? Even ;Mr. Goldwin Smith, who does not indulge too sanguine hopes concerning England, said tho other day, at Oxford : ' A maritime position admirably adapted for trading with both liemisphercs, a race of lirst-rato seamen, masses of skilled labour, vast accumulations of machinery and capital— these were advantages not easily lost ; and there was still in England a good store of coal and iron.' Tho revival of trade is only a question of time, and tho manufacturing talent and abounding wealth of England will, in ono way or other, secure, as hitherto, tho lion's share of tho advantage to bo ob- tained, though tho conditi /ns o. commercial success may bo 8 THE INDUSTRIAL POLICY OF ENGLAND. cliaiigucl. Englishmon will co-itrol tlio iudustrics of tho voiM ill tho futuro in one of two Mays. If our staple nmiuifiRturos can bo pruiluccd at less cost in another country, capitul and tcclniical appliances Avill simply ho moved to a now seat of enterprise, where perhaps labour will ho cheaper and foroi,L;n tariffs niore easily handled. Or in case England is rccognihod as possessing all other conveniences for carrying on manufac- tures, except moderate-priced hihour, il is probahlo that this commodity will he imported. "\\o are not to he understood as advocating any particular course in tho emergency wo have imr.,:rined. "We simply predict tho lino which will ho eventually followed according to tho ordinary laws of trado. Tho cxperi- ment already made of introducing foreign labour— despite tho troubles which have attended it— is regarded by master masons in a hopeful light, and it would not surprise us if labour from abroad should, in given contingencies, bo imported on a still larger scale. Employers cannot prevent their men from com- bining to obtain higher wages as long as tho law is strictly kept by both parties. On tho other hand, it is difficult to sec how, consistently with free trado principles, men can interfere with masters, if the latter should evince a preference, under particular circumstances, for foreign workmen. Labour is acknowledged to be a marketable article, and consequently, if the working classes may assert their liberty to determine what employers they will serve, employers may naturally lo expected to claim tlio same right in reference to tho class or race of artisans thoy elect to hire. Notwithstanding tho conflicting theories zealously promulgated on this subject, tho relative in- terests of capital, labour, and trade will, sooner or later, adjust themselves in harmony with inexorable economic principles."' Notwitlistandmg that the present article exhiljits what appears to us to be inconsistencies in reasoning- of a very remarkable character, and instances of perverseness in deducing inferences the very oppo- site to those which the data suggest and justify, it seems to us on the whole, the production of a mi?"' Tin; INDU.STIJIAL .'OLICY OF r,\(iLANl> f tho -svoilcl auvifiicturcs capital ami ,cw seat of md foreign recognised m mauufac- that this iderstood as ■y -ne have Q eventually Ilio cxpcri- -despite tho ister masons labour from .1 on a siill a from com- strictly kept ; to see how, m iuterfero ronco, under Labour is sequently, if 2rmine what bo expected IS or race of conilictiug relative in- later, adjust rinciples.'' ic exlill)its 1 reasoning- i.stanccs of reiy oppo- justify, it . of a mi;"' Avliicli has, on tlie ono lunul, lost nnicli (»f its conli- dcncc in tin; doo-niii of Frrc TnifJr, an-l, on tin; otluT, iiu.s become less sure tluit the future prosperit v of Kng-hmd is perfectly secure and siife whatcvci' l)olicy tli(> conununity may choose to adopt, — ofa mind in wliich a decomposition of sonn; of its economical conclusions is taking- place, and in which the recomposition of the elements, thereby sut Jree, has not yet had time to attain completion. Let us, as in the former instance, separate and arrange consecutively, the more important of the facts and propositions Avhich tho writer in Thr Tclri/yajJi puts befor(> lis : — 1. "Tho latest Board of Trade returns show a considerable increase in the value of imports; but the advance in exports is as yet hardly appreciable, and since the excess of imports over exports indi- cates an annual average balance of trade against us for the present year amountin<^ to more than oni; hundred and forty millions, the aggregate business we transact with foreign nations cannot be deemed satisfactory." ;2. " The present industrial statistics are of a depressing character. In several instances nations formerly dependent on ns for textile and metallic fabrics arc not oidy supplying- their own reqaire- mcnts, but vigorously competing- Avitli ns in home and foreign markets." 'J. " ^lany cotton factories in Lancashire and Yorkshire arc at present worked on short time, and in tho iron districts of ^fonmouthshire, l)ur- i 10 TllK INUr.STKIAL rOLICY OF KNULANU. liaiii, Northuiuljcrlaiul, and Stailurdsliirc, rolHii,^- mills are said to l)e ruiniiujL'- at a loss, and serious distress prevails amon<;- the workpeople. The iron trade ofCiri'at Ik-itain is g-encrally helieved hy eoiu- petent judges, to bo not merely deju-essed, hut in a condition of decay." I. "'J1u^ decline in steel and iron transactions b(>tween Kngland and Italy has of late years been most marked. For some time subsequent to the in- troduction of railways into the latter country, rail- wa}- plant was exclusively imported from Great liritain. It now a).i)ears, however, that jMiglish makers are losing- their hold in Italian markets, and are beaten out of the field by the competition of Trance, Gennany, and Belgium."' o. " A shuilarly unfavourable change to our metallic industries is visible in other parts of the Continent, and the rival countries we have men- ti(mcd are receiving orders for locomotives, axles, tyres, springs, and tools which were formerly exe- cuted by our own manufacturers."' . 0. " But the heaviest blow sustained in the export department affects our trade with the United States. In 1 SG5 the value of British exports to the Union amounted to 122,000,000 dols., against 8i,700,000 dols. imported by us from that country during the same jieriod. Last year, however, the tables were turned, for, whilst our exports to the States had dwindled to 98,000,000 dols., the value of the goods imported reached the large sum of 307,352,000 dols., showing a balance in favour of America, in the twelve months, of 269,000,000 dols." SI). THE LNDUSTKIAL POLICY OV KNCI.AXI). 11 rc, rolHiii;' lid iserious Tlu" iron J J l)v com- d, but ill ;i raiisiictions years been t to tlic iii- iintiy, rail- roni Great at jMig-liisli arkets, and ipetitlon of oo to our xarts of tlio liavc iiuni- :ivc.s, axles, rmerly exc- 11 the export uited States. ) tlio Union 8i,700,U00 iitry during ', the tal)k\s > the States value of the 3n7,;3o2,000 America, in 7. "The j^TOss annual income ol' Mniihind is esti- mated at .t:l.200.(IU(),(»()(>, and the cai)ital sunk in manufacturinji,' plant and machinery employed in the export trade at .i:M(),00(),O0u." JH. '' The cxi)eriment already made tif introducint;- foreig'n labour — despite the troubles M'hich liave attended it — is repirded ))}' master masons in a hopeful ll;^-ht."' . . . " It is dillicult to sec how, consistently with Free Trade })rinciples, nuni can interfere with masters, if the latter should conceive a preference, under particular circumstances, for foreign Avorkmen." 0. " Labour is acknowledged to be a marketal)le article, and, consequently, if the working classes nuiy assert their liberty to determine Mhat em- ployers they will serve, em})loyers nuiy naturally be expected to claim the same right in reference to the class or race of artisans they elect to hire." 10. " The relative interest of capital, labour, and trade will, sooner or later, adjust themselves in har- mony with inexorable economic principles." The sterling fairness and straightforward honesty with which the important statistical infornuition contained in the preceding quotation is set forth, is as cheering as the information itself is depressing. For evidently the Avriter of the article has not allowed his favourable o})inions and advocacy of the Free Trade system to bias or interfere with his statement of the actual circumstances and facts — plainly as those facts speak against tlio system in whose favour he argues. It is with no uncertain 12 TIIH IXDl'STKIAL I'OLICl' OF KXGLANU. souiid, indeed, nor in huslied tones tliat tliesc fiiots now speak and ''say tlieir say" . . Willi clear voice and in toncrf so loud as to he heard even ahove the din of war, and to eonnnand attention from those most unwilling to hear, they tell of the downi'all of the eciniomieal super-structure called. Free Trade . . of the tinal break-down and collapse of that system, which in a few years has done so much to damage the commerce* and imi)air the industrial cajiacity of England, and to mystify and delude her sons. For the present, merely referring to our previous letter (of October), we will leave the tale they so plainly tell to impress itself on the reader's mind, and })rocecd at once to our more innnediate subject. It is now more than two years since wc specified, in our introductory treatise on Political Economy,* some of the reasons which induce us to deny that any such thing as a science of political economy, correctly so called, exists at the present time ; and we endeavoured, at the same time, to explain and illustrate the orderly method in which it was reciuisite that the heterogeneous matter, belonging to that department of knowledge, already collected and available, shoidd be arranged. In that exposition of the sul)ject we showed that a want of just appreciation of the distinctive dif- ference between Satiiral and Iilml Science had vitl- * " Political Economy as a division of Science." ( Montreal — The T-ovell rublishing Company. Avgnst, 1875. ^ i^„„,jon_Triibn(.r .t (\ Tin; i.\i»rsTi;iAi. rui.icv of mxci.am). l: icsc facts itli clear ard even attention ell of the ro called i colla})so done so ipair the stify and previous 3 they so r's nn'nd, e subject, specified, cononiy,* deny that economy, snt time ; to explain ich it was belong'inj^ ' collected owed that ictivc dif- i had viti- ICO." rompany. atcd the treatises and M'rltln<--s heretofore ])iil)lislie(l. Avhether ]n-ofesse(lly sci(>nti(ie or oth(>rwIse. in such wise as to render llieiii. in regard to some of the mntters treated in them. uiu-elia1»le and useless, nnd, ui re,u-ard to others, deceptive and niischievous. And the eharu-e, thus hrouuht 1>y us, ii.u'aiirst writing's on l*olitical Economy, is of the most general character, ior we have not met with any, in any form, whether elab(n-ate treatises or simple ess:i\s, Avhich we can exempt from tla^ eiiarii-e. There is apparent in all of them, ev(Mi in theb(>st. a confused endeavour to treat sonu> of the subjects of this department of knowledgro (political economy), which l)elong's Mdiolly to Ideal Science, as though they belonged to Natural Science. We have sliowii that Avriters on Political Economy have habituall\- treated ir,;allh as ;i natural product, in the same way as though thoy supposed it to be a kind of veg-etal)le. And this mode of treatment has l)een so unain- mously adopt(Hl, and continued for so long- u time, that it lias Ijccome a sort of established conccn- fidiia/farl among-st ])olitical economists that wealth IS a rcijetahlc , . g'rowijig-, nmturing- and fulfdling- its functions under and in obedience to the impera- tive laws of Nature. In the same manner, because under the same misapprehension, they have ^-eated the subject of l:d)our; and, in the treatise men- tioned, we pointed out (now nu)re than two \ears since) the al)surdity of such expressions as lahmir inarl-rt used in the sense in which it has been, for a long time past, considered orthodox to employ the exjn'ession. 14 THE INDUSTRIAL POLICY UF I'.NGLAND. Instead of ro-stating the exposition, wo will liorn quote from that formerly is considerably more vapid ; in China considerably slow(>r.' Here wo fnul the example directly contradicting the proposition to which it is appended as an illustration. Instead of the relation being constant, the example exhibits the * i< Essay on Tolitical Ecouomy," by Trof. Cairxes. -J- " riilitical Ecouomy and Science," by Kuklos. will licro 10 treatise IS a Divi- I'o dearly il fallacy, 'S so nnu'li a part of 10 form of published, comprises are most jr's immc- I'c must be liicli ]/*ro- ural fact.' evidently >-: 'These 10 natural L constant each other lie, capital ountry at ted States in China e example to ^Yhieh ;ad of the xhibits the lIEXES. :.os. Tin: INPU.STKIAL I'OI.U'V OF KNCLAND. 1. relation as inconstant; in neither iwo out of the three instances is the relation shown to be constant. The sj)ecilic ^-ravity of water is the same in China as in Knnliiiul, and the sanu in Ku that an ellect nnist stand in a constant relation to its cause, whether that cause be tenned a natural luworapnenomenon; in fact, the mind cannot dis- connect the one from the other. For example, fi-ravitation causes the fall of a stone to the .urouiul. The fall of the stone measures the irravi- tation, to which it has a speciiic relation. The fall of the stone without a cause is an idea which the reasonable mind woidd decline to accept. In the example <,nven to us, the causes vary, and, of course, the eflects mast vary in corresj)ondence. Why do the causes vary!^ Because they are not natural. " We do not see how wages can be classed as phe- nomena of Avealth, for Avealth transferred as waj-'es does not differ from other wealth ; it may be any one or more of the various kinds of wealth, but it does not present any exceptional or peculiar features. Wo are of opinion that wages are pheno- mena rolatPil to labour or industry, if they must bo called phenomena. AVo should prefer, however, to class them as the exchangeable value of labour. But this again would be only correct as a definition of the sense in which the expression is connnonly understood. For a more strictly correct definition 16 Tin: INDU.STIJIAL I'DI.ICY oV i;N(iI.AM). ■\v(MV(>ul(I say : tluM'xpressicju 'wii sun. Tlu' sun rt'ccivc's i;o prolit or interest for all the InvaUuihk) henefits it pours down ui)on the sons of men. Surdy ihe;e )nust be some mistake here of a fundamental eliaiaeter. Professor ( 'airnes certainly intended lo ex- press some intellI,L;ible meaning-. "We will endeaviu'r lo explain the s(trt of mental conl'usion between the subiectsofNaturaLScIencciaidthoseof Ideal Science, which has evidently IchI to these strange statements. '• Let us sup})ose a case l)y way of illustration: — S'onu> meddlesome and ollicicms arbitrary g'oveniment having determined to regulate the exchanges of its subjects, ai)points oHicers to direct and control all kinds of barter and commercial transaciions. ]], an enqdoycr of labour, possessed of some wealth, has agreed to hire a labourer at five shillings a day wages, but the sanction of thooilicer to the arrange- ment must be had, and ho objects. 'Xo; four shillings a day is Cjuite enough; let him agree to Avork for four slii"ings a day, or don't employ him.' < lUit,' says E, ' 1 am quite "willing to pay the man five shillings' a day.' 'No matter, 1 won't allow it.' E also wants to buy a cow ot his neighbour E, who agrees to sell it him for ten pounds ; but the ollicer has to be informed, and he interferes : ' Xo ; I). nciins tlio 1)1- labour. ' a natural What has ■ the Aviiul not charuc The sun iuvaliuihlo ■11. Surely ii(laiii('iital tided lo cx- cudcavour ■twcen the al 8(tieuce, itatenunits. ■itration : — overviineiit imcs of its control all .'iions, ]'], ne wealth, iiiLi's a day le arran.u'e- ' No ; tour u aj^ree to qiloy him.' ly the man ron't allow 'iyhbour F, s ; but the TI[i: IN'DUSTRIAI, I'OI.KT of r.N(;r,AM». 17 res : ' Xo ; that's not (Miou a breed of n-ood cattle; the cow is a -ood c.,w, an for u-n pounds.' ' Xo matter, you nnist olve fifteen pounds or els,. d„ without it.' /'', the fann(>r, reerives an order from the ofiieer fixin.-- the price at Avhich ho must sell his nn'llc, on-o;^, and butter, at only half the price which his neinhbours would be willin apprehend arl^^ht, this would bewJiat Professor Cairnes means by nn interference wi.h the natural law of wa.i^^es and of profits. lUit the rudy connection it has with natural laws, is that the G.."(l of the natural world is also God ,,f the intellectual Avorld . . that the God of Ideal Science is God als„ of Natural Science; that He, who has ordained laws to phenomena of the ma- terial world (Xufnye), has also ordained laws to f?overn and control the i)henoniena of the .spiritual world {hitellci'f). The employer, tlu^ farmer, and the labourer, all feel a^meved. Whyy Jiecause the laws of nature have been interfered with ! Xot at all : but because they feel and know that injus- tice has been done to them. The --reat fuiula- niental compouiul fact of Ideal Science . . that God IS just, and that man has been made in the iman-e of God, and therefore created on the basis of justice, has been disregarded. The circumstance that arbitrary nnnecessary interference with the reasonable liberty of his" fcllownu.n, by man, is disapproved and forbidden by the intellectual law B * Id Tin; INDUSTHIAI. I'Ol.ICY OF KNfil-AND. of 0()(1, and is (-onscciuontly uiilinvful, 1ms l)oon (li8- iv-;ar(lniecr, ivsult- in unlawful action of liis o-,,vcrnnu'nt is, because unlawful, out of liannony with tli(> whole of creation: with the intellectual world i)riniarily and directly, hut, henc(>, indirectly with the natural world also. In this very indirect sense, and in this indir(>ct souse only, the unwise and unlawful inter- ference with the"^ just rij-hts and liberties of the several iiulividuals would have a connection with natural Inws, " We find, however, a little further on in Professor Cairnes' work, a uiodiiu«d definition whicirappears to rcco^Miise, in some de^mM>, that the phenomena do not belong to Natm-al Science, and they are now termed ' economic plu>nomcna.' For exaniph^ :— 'It is, then, the constant relations exhi])iti'd in economic ].henomena that we have in view when we .speak of the laws of the ])henomena of wealth.' ^ " Now th(> relations and laws here spoken of arc so imaginary and unreal, that the thiuos specitied have no absolutely necessary relation to lunnau existence, and, where they actually exist, no one of them has a necessarily definite and constant rela- tion to any one of the others. Take, for example, a comnumity of Indians, sucli as is still found in the western parts of North Ameri(,'a. There is wealth, but: thfiv possessi(Uis are confined to the weapons, utensils, and clothln- necessary to support the simple industrial conditions of th.cir existence. There aiv no hibourcrs and no wages, no rout, no T ND. H lu'Oll (lis- icor, ivsult- (•riimrnt is, lie wliolo of iniarily and the niitiiral iuul in tluH awful inter- i-tii'S of tlio cetluii Avitli in Profos-sor ihappcarH to cnonicMia do oy arc now exaniplo : — Lwliibitod in iewwlicn wo w(>altli.' ])okon of arc ngs si)cciiied n to liuman ;xist, no ono constant rela- for example, 1 found in tlio ?vc is wealth, the weapons, support the .>ir existence. s, no rent, no Tni: iNnrsTiji.vi, i-oi.k v oi- England. li) profits, no interest. I',„t, l,.f us Hui)p...so u conn.ni- nity of lAIonnons, or .sonie oth(>r connnunity, th(> inenil)ors of wliicli l.ave agreed all to Hliaro alike . . each on(> to do his share of work, and all tlio uneon- J^unu-d products of thoir lahoin-to holon^M,, ,.onnnon to the eonnnunity. After a time the eonnnunify beconiCM very ])rosporous, uiul its possessions In eattlo, to a lar^ro amount. Here ihen we have hinnan existence and the social relations of lunnaii l.oin<,rs dweiliiifr to-ethc.- in a eonnnunity. and wo 1kiv(! wealth; hut, where are the specified facts or phenomena of Avealth ? . . And where the hiws and constant rela- tions r There are no wa,£,^es and no rout. The accumulation of wealth by the connnuiuty ml<.ht, indeed, be considered a descrii)t- i of i)r(jfits, "but this would dlfVer consideraldy from the dost;ription ol profits intend(>d by Professor Cairnes. Of ' inte- rest ' there would be none: unless, indeed, the com- munitybo supi)osed to capitalize its jjossessions ami to send the proceeds to the baidc— which it mln-ht, or might not, l)e a^a-ecd to do. The conchul- inn- sentence, however, shows that the Trolbssor has aUogother mioconceived the relationship of man to Nature. ' It is by such knowdcd<,'-e that man ))e- c(Muesthc nu'nister and interpreter of Nature, and harns to control Nature by oljcA-Ino- ],(>i..' j^ ro-pect to his merely animal nature,, and In his relation to Nature, as a variety of organized matter, num is under the laws of Nature, which ho has t(i obey. A man's body, for instance, is subj(^ct to thy 20 •llir, INDl-HTKIAI. I'OI.ICY or r.NOLANn. law of pravitatioii ; u iiiiin's pliVMicul iictlons aro HuhjiTt to tlic! laws of iiu«fliaiucH. This ncnissaiy ()l)(«(li(>n("o of matter to tlics laws <.f tlic material world, cannot bo avoided in any dc-rce l.y tho .sImi)lo exercise of man's volition. Hut tli(> man, us an intellectual bein^, Inis been f^lven by the express deelaratinii of Uod, control, witliin certain limita- tions, and subject to (-ertain restraints, over the forces of the natural world. Therefon*, man, by learnin-;- to understand and brin<;' himself into moro jK'rfect harmony with tin" laws of th(> intellectual world, learns to obtain a more perfect control over the forces of Nature ns (Jod's minister.'' At tho conclusion of our October letter wc spoke of a subject of very Kfoat importance, upon which loose notions, rather than sound knowled-e,provaih!d amon<,'st economists at the present time. That hij-hly important subject is the "Correlation of Lid)our and Capital " as a part of the elements, or components, of National Wealth, and "of tho Labourer and the Capitalist" as a part of tho com- ponents of tho Nation. The observations wc arc desirous to submit for your present consideration will mainly belong to these sections:— (r?.) Tho characteristics of a Labuiircr, and the rights of Z(//^o((r. (b.) Tho characteristics of a Caintaliit, and tho rights of Capita!. {<'.) The National Law as the guardian, the protector, and tho governor oHhe Lahoiirer and of the Capitalist. As nmch of what wc wish now to say is comprised iictions iiro in ii('C(!S>sury lie iniitcrliil ;rc(' 1 y tlic the man, ii.s tlu> express rtiilii limita- s, over tlu! !•(>, luiui, Ity 'If into more iutcllcctuiil control over vv wo spoke upon which [n;e, prevailed time. That orrelatioii of elements", or md "of the t of the com- () submit for ielon<^- to these f a JMbourcr, ructeristics of tal. {>'.) The )rotcctor, and he Copitalid. y is comprised 'I III: IMHSTKI.VI, I'OMCV OF IINOLAND. •J I in whnt wo hnvo said hofore, and as it has hecn stated with as much concisi-ness as appears to bo consistent with a satisfiKitory exjjosition of our views, Avc will a^iiiln proceed by (piotation from the treatise " Political Kconomy and Si-ieiice." Pdffc 30:— "The ri^-hts, the claims on the Nation, and the national duties of the Labourer :— The iirst (juestion is— What meanin compul- sory or free; it may be undertaken unwillinj^rly through necessity, willingly us a pleasure, out of a desire to be useful, as a recreation, as a physical — or as an intt'llectual exercise. The worknum nuiy bo a highly educated and intellectual num, (u- may be quite i^jfuorant, and })ossessed of only the mini- mum share of human intelli<,''ciu'e. Jt is at once evident that the exjjression * labourer,' as com- monly used and understood, excludes most of these descrI])tions of work and Avorkmen. "A labourer nuiy be defined as one of that class of individuals which is distinj^uished by having- phy- sical labour as the characteristic business of his terrestrial existence. The individual, thus cir- cumstanced, ]al)ours physically from necessity, ami for the purpose of supj)lyin<,r the daily requirements of his life. The class he belonj,'s to is less highly educated than the mercantile and wealthy classes of the connnunity, and from deficiency of education is, as a class, incaiiable of intellectual labour of tho 23 THE INDUSTRIAL POLICY OF ENGLAND. liioher dcRCription. In c-orroctly appreciating- tins (loiinition, it is important to remember that the lal)0iirin«r class, as it now presents itself for con- sideration, althou-h in a less intellectually developed condition than other sections of the community, has nevertheless progressed educationally; and, witliin the last fifty years especially, has done so Avith considerable rapidity. At the same time, the intellectual development of the other sections having- also progressed, the relative difference, although probably somewhat diminished, has not underg-one any very considerable diminution. Let us now consider the question . . What rights has flw labomrr, as against the individuals collectively belonging- to the other sections of the community or nation ? A very little consideration makes it apparent that the answer to this question must be dependent upon, not only the intellectual relation of the labouring class to tlie other sections, but more particularly upon the general recognition or nim-recognitiou of the higher law by himself, and by those other sections. Let us for the moment suppose the intellectual relation to be, on the part of the labouring class, that of human intellig-encc almost wholly undeveloped by education; and, on the part of the other sections, an intelligence hig-hly developed ; and let the supposition include non-recognition of the higher law. How, on such a supposition, would stand the r/f//(^ of the labourer? 'Right' would then be the right of might; and, since merely physical strength is incapable of sue- L AND. 2ciatiiig' this icr that the self for coii- ly developed inumity, has and, Avithiu one so Avith thne, the etioiis having- ce, althoug'h .)t undergone Let us now stltc hiboii.n'r, belonging- to ' nation ? A u-ent that the endcnt upon, the labouring c particularly )n-recognition nd by those ment suppose 1 the part of n intelligence ,tion; and, on 11 intelligence jsition include How, on such )f the labourer y /' might ; and, apable of suc- Tlli: INDU.STIMAL I'OUCV OP KXCiLAND. 0'> I cessi'ully contending with or resisting intehectual strength, the right would Ije with tlie more highly developed intelligence. Tlie )/'//(/ of llie laljourer would be but a little more than a right to live. The remuneration of his labour would be barely sullicient to provide the absolute necessaries of his daily existence, and to enable him to go through his daily toil. If ho comi)lained, more work would bo put upon him and exacted; if he resisted, in- creased severity and hardship would be the result. lias not the world, ere now, exhibited a state of things not much unlike this ^ X(jt onh' of this or of that particular nation, but of every quarter of the globe and of every country, the historian tells of a time when the condition of the laboiu-er has been l)ractically, if not nominally, that of serldom and slavery. '' But the higher law — the law of Divine justice — the law of Christian love and charit\ — intervenes, and is recognized. The labourer is no lunger the serf or slave, but the fellow-man . . less fortunate than his richer brother, because less favoured with the gifts and blessings of llim who givetli to each one as lie sees good, and requiring the guidance and assistance of his intellectual neighbours, because without the advantages of education. What are now his rights? In proposing this question, anijthcr suggests itself: Does he himself recognize and accept the higher law r If he wish to have the bcneiits and advantages conferred by it, is it not reasonable that he should also imdertake liio duties 24 THE INDl.'isTKIAL TOLICY OV ENGLAND. and re^poiKsibilitlcs belonolnf,^ to it ? Is he trustful in those Avho have benefited, or who try to benefit him y Docs he endeavour to fit himself for the privile«-es and duties of a higher condition ? Is ho unseliish and sympathizing towards those less fortu- nate than himseh': and does ho, with pr.tieuce and forbearance, endeavour to assist them V If he docs so recognize the higher law, and thus fit himself for a moreintellectual condition in life, then his ri'jht will be to possess and enjoy the advantages belong- ing to such condition. But if, on the contrary, he does not recognize the higher law, and says witlun himself, ' that man is richer than 1 am ; he is keep- ing my property from me ; I have as much right to it as he has ; all men are born equal :— let us combine to take this wealth nwuy from the rich, and divide it amongst us.' . . In such case the higher law would become abrogated, and the terrestrial law of man's natural existence would come into full foi-cc ;— that terrestrial law of God, which gives to intellectual strength the dominion over the whole creation of the natural world. "Let us now, assuming that the higher law is fully recognized, and that, by endeavouring to qualify himself, the labourer has become entitled to the full benefits of the higher law, consider what modi- fications could be most readily made in the existing conditions under whicii the life of the labourer in the most civilized countries is now passed, such as would enable him to take a larger share in the advantages and pleasures belonging to intellectual existence. u. THE INDUSTUIAL I'OLICV OF KNLiLAND. xl."> le trustful to Leiiefii If for the 11 ? Is lie loss fortu- tloucc and If he ilocs liniself for L his riijht OS bclonjj;- iitriiry, ho lys -within 10 is kecp- luch right .1 : — lot us the rich, the higher terrestrial 10 into lull d\ gives to the Avholo law is fully to qualify :lcd to the rt'liat modi- he existing labourer in ed, such as ai'o in the intellectual ''The conditions, broadly stated, wliicli, on a general survey of the circumstances, appear to b.-n- the way to any innncdiate iniproveniont of more than a sliglit character, are these : For six days in the M-eek the labourer's work has to 1)0 almost incessant. To fuHil the recpiirenicnts of liis pliysical existence — to sleep and take his meals, in addition to Jiis work, occu])ios almost the whole of his time. TJio seventli day is a day of rest ; but it is a day to be especially devoted to the remembrance (jf llim and of His benefits In' Avhom it lias been apjjointed, and to tliat rest, from (ordinary week-day) work of all kinds, by Avliich the completion of the great 1 work of Creation is to be continually commemo- rated. "In remuneration for the six days' almost inces- sant labour, the wages received by the labourer barely sufliee to defray his current expenses, and to provide, perhaps, if he bo xcij provident, a fund for old age, sickness, or other emergency. "If the desirable improvement consisted simply and solely in reducing the hours of labour, so as to give the labourer, let us say, u second day out of the seven, or the equivalent of this in a reduction of about two hours daily for intellectual improvement, the alteration might be readily eftected. But : it is requisite for the labourer to get, at least, the full amount of wages which he now receives for the longer period of Avork. If it be proposed to make the alteration by i)aying him the same amount in wages for the shorter time, an objection is very 26 THE INDUSTRIAL POLICY OF KNUr^ANP. forcibly stated by the employer o^ labour ; namely, that this woultrbecciuivaleutto paying a higher rate of wages, and would bo either more than nis, the employer's, proiits would afford, or else would obli"-e him so to increase the price of his farm pro- duce, or his manufactured product, that ho wouUl be no longer able to successfully meet his rivals ni competition. " This objection, so stated, appears for the mo- ment very formidable, if not fatal to the proposed alteration ; l)ut wc observe that the obje^ction rests on the assumption that a competition with other pro- duce or products must be sustained, in which coni- petill.M, whilst having the advantage in tins respect, the competitor would be on an Cipal lootmg in regard to the other circumstances. Is it certani that \w\i assmnption must be admitted as neces- sitated by the conditions of the whole case? We are of opinion that it is not. " In the first place, the competitor or competitors referred to must be outside the nation, for other- wise the objection would not apply, because the supposition is that such an increase in the rate ot wages would be general throughout the nation. But then, if the competition be w.'vh competitors outside the nation, and the alteration be one which it is to the interest of the nation to make, the question j,,.iscs-wliether the nation cannot yet make the alteration and so support its own manufacturers (or formers) that the foreign competitor could still bo advantageously met. Supposing, for example, the n. ; namoly, a higher 3 than nis, 3lsc wouhl farm pvo- ho wouUl is rivals in )!■ tho lUO- c proposed ion rests on other pro- which Coni- ne in this pal footing- [s it certain (1 as iicces- case ? We competitors n, for other- becausc the 11 the rate of nation. But titers outside ,vhich it is to the question :t make the jfacturcrs (or could still bo example, tho THE INDUSTRIAL rOLICV OF KXGJ-ANI). '^7 nation in (|uesti(ni to contain a coiisideraltly g-reater number of labourers tlian sulHeient to su|)ply the required labour at the longer time of work (and loAver rate of Avagcs). It is evident ihat, since the .superfluous nundjer of labourers nuist live, and have no resources of their own,* iheir maintenance nuist be in some way sujjported by the nation. Herein would be a set-otf, so far as it n)ir, just as honourably entitled to his wages at whatever * My argument will, however, go much beyond this; furl hold it to bo reasonably domonstrablo tliat in thus employing its wealth beneficially, the nation would bo investing its otherwise latent capital in a manner exceedingly advantageous, in a /;n.sl. ncs.o sense, for all ; not only for those who would directly receive the benefit, but also for those who primarih; would confer it. 30 THE INDUSTRIAL POLICY OF ENULAND. iiK-rcasocl rate the nation niij^^lit see well (either (Vin^ctly or by dimlnishinj,^ the lunxrs of labour) to lix the amount, as if he, under compulsion of the necessity caused by uncontrolled competition, were obliged to work for a nrich less sum, "To fully ai)preciate the whole case, it is necessary to apprehend distinctly, and to bear in mind the us(^s of wealth, whi^thcr possessed by the one indi- vidual or by a nation of individuals; at the same time remombcrin^r that in the case of tlie nation, wealth, which merely passes out of the hands of certain of the nu turn's individual components into the hands of certain others of them, is neither lost nor (jninrd by the nation* '• To illustrate this by an example, let us suppose, iu the Government ship-yards of England, a largo increase to be suddenly and quietly made in the rate of remuneration paid to all those engaged in the * r,ut oLserve, tho nation may gain very greatly by the potent rffect of tlio active wealth becoming oporativo, and operating . . as capital, in its transfer from the one indiviaual to another. Thus : let a h r d, four individuals, possess collectively £1,000. Tt makes no diirerence, as to the amount owned by them oollcct- Icctively, M-hethor they own it in o-iual shares, whether a owns nine-tenths of the whole, or whether he owns only one-tenth of tlie whole. But it will make a great difference to them, col- loctlvelv and individually, whether, on the one hand, a owning niue-tenths of tho whole amount, and not wanting to use it hhusclf, he hoards it, or lends it to (.•, // and z) other ontsido partio-; or, on the other hand, they agree that, whichever tho capital nny more particularly belong to, whichever of them most ro iiicnniso in the jjay attracts iniblic not i(;o; th(! case would be very pro- bably brouo-ht muler Iho attention of the jjublic as n statement that (>ach ship had cost the nation just so much more as tlie increased rate of reuuuu'r- ntion had exceeded that formerly ])ald; but such a statement Avould bo evidently (piito incorrect, because the Individuals m-Iio had re- ceived the increased amount belong to and form part of the nation :* the money Avoidd not have been spent by the nation at alf, but merely have chang-ed hands. •' The actual cost to the natlcm would be measured by the ((uantlty of Avork expended upon the ships, quite indei)endently of the monetary valuation attached to it. It would bo a certain fraction of the entire worklnu- power and intellectual ability of the whole nation which had been expended, and, whether the individuals, actually emjjloyed, worked M'lthout any remuneration, whether they received five shillings, five ]iounds, or even fifty pounds each per day, would make no dllTerence whatever In the cost of the ships to the nation, so long as the indi- viduals belonged all of them to tlie nation, and the money paid to them (or Its ecpilvalent) was not sent '■•■ Unless, of eonrso, Iho workmen in question were foreir'nors, M :io lioarded their money, and when paid off, took it out of tlio coiuitry. In tha> ea^e, indeed, tlio inereaso in pay to the work- men would be just so much (I'ldiHon il loss to the ;irt//ci;j. ag ■IIIF. INDL-.SIUIAL I'OLICY OF KNdLAND. iiwiiv from tli(> .•..untry. Any such tmnsactlon mi-i.t, <.f course, involve uulUirnoss and injustice to others ot'tlie indivI.hK.ls composing,- tlie nation, and on that ground be hi-hly ohjectionahh^ hut that is another matter, and doe. not aiVect the iunnediuto ([uestion. '' We have, however, in tlu' next phice, to consiihT a question of justice and injustice to individuals, in the applieatlon of wealth possessed hy the nation. Let us suppose the whole of the individual com- ponents to he divided into three (^lasses, unecpud in mnnhers; a Urst-cla.s.s A; a second-class 15, nuu-h ,u.»re numerous than A; and a third-class C, much more numerous tlum B. The individuals composmg the class A we will suppose to be p()sses^:ed of great wealth, able to spend the whole of their time in in- tellectual pursuits, in pleasure, or in idleness. The individuals of the next class, B, wc will suppose to be engaged in trade, commercial enterprise, manu- factm-ing occupations, and professions, in which pursuits they have to labour intellectually and, in a lesser degree, physically, but they arc able to surround themselves with the comforts and rcfpurc- luents ..f civilized llf(>, to rest from their labours at intervals, and, usually, for the latter part of their lives, to cease from labour and live in rest and eond'ort, leaving at their deaths an accmnulation of wealth to their successors. The third-class, C, have to labour physically almost incessantly, they arc excluded from intellectual pleasures and from most of the comforts of civilized life. Tlu^y are unable ] A 1 C c c ii c q b tc q w w V\ hi to of lU. ransnctlou iijustico to iitlon, und )ut that is iinmedliito () consider vuluals, in ho nation, dual coni- uui'(Hiul in s 15, nuu'h is C, nuich c0ini)osin<,^ •cd of great tinio in in- ncs.s. The suppose to riso, nuuui- , in Avhic'li lly and, in are able to md rcquirc- r labours at art of their in rest and anulation of lass, C, have -; they are 1 from most arc unable Tin: INDUSTKIAL I'OLICV OF i:n(;land. 33 to nccumuluto any wcultli, and are able to provide oidy f.ir tho daily expenses of their lives. "Now the three classes take stock to were to answer them :— 'Oh! what you propose is entirely out of tho question. Why, we should all go to the dogs to- gether. We should bo no more able to comi)eto with the foreigner : the trade of the country would be ruined.' It seems to us that it would be open to class C to respond : ' Not so ; it is simply a question between ourselves. Our having a some- what larger share, even if you have somewhat less, will not prevent our competing with the foreign*--. We shall still be able to do all the Avork there is to be done, just as well and better than heretofore, but we would like to have a little more time to attend to other things besides work, and for the enjoyment of our lives.' c Tlir. Ivm-STIIIM. POLICY OF ENCI.AS1>. 34 "Mirtlm- l«.inlinj,Mmt tlmt tlio (luo-sti.... "f Hxi"!! ,1,0 rnl,. ..!■ tl,o Lilmmor's w..;;.'" i». <»• ""-y '''• »'■"'''• ,„„ „,. „.nlin,^ ,„m.onu.,t, lln.t iC .!,.■ ummULv .n.l (1,0 vow w.ulll.v .-kssos choose to ;.ivo up, .rsfCC- tivolv. KOK.n l.:.rt of th.t .kuv wl.i.-l, is LOW con- ,,,,,,i,,,,,,nvoo,,siao,v.n.> i..io"M" ti-";. •■" ".'■;';■■■ ll,„t tho otl,,..- .•l„»s, «l.M'l. .•™ soa^oly K. sau to rocoivo at tho i-vosont tln.c ,.ny »\mv. .,t tho p.ol s, „,„y rocoivc somo i,u,t of tl.cn,, xvo ,nay express the ,„,il,„ that, undor suoh ,m »•<-•"■.<;"- , "-™ ,'cnhhio,- classes wo„l.l m,t necossanly h,,.! thou ..cspcctivo iuco„,os a,t.a,ny ahohushed execp ,.,, ton'porarlly and fov, pchaps, m,ly a vc.y short time* , . ii „ *' There arc many sources ot expense, Imvnt- the character of loss, to the nation, which under such modification in the distribution of tho national .-ealth, nn,ht l-e much diminished, and n. ^ instances entirely removed: for example, looi- ratcs, Workhouses, Prisons, Strikes. * I am desirous not to compllcnto, nor oven to appeal ta overstate tho case, but in all probability, both the nuddle and Zer classes would considerably inerease then- incomes by tho alteration, for tho effect would bo an immenso merease m bu n ss. by much latent wealth being capitated and em- pWodi---^^^^'^^^^^^^^" "'"""' and this mcreasom tsiness would increase the value of property. For ho moment ■r ord" to get tho ease with some degree of completeness befo^. L reader I am .utting this very important consideration aside, I tl t^st gain and benefit to all, which would arise from the g;;'aUy increased and more active employment of the nation s capital. tl NI). ,u of i'w'mv: V 1)0 nuuU', roaltliy niitl up, rc!si)cc- s now con- ni, in order ^r 1)0 said to tlio profits, express tli(! in, tlio two y iintl tlioir il except Inuf very t>liort , having tho , under such tho national md in somo nnph', Poor- on to appear to 1 tho niiddlo and r incomes by tho onso increase in talized, and em- this increase in For tho moment, mpletcness beforo nsideration aside, .lid arise from tho nt of the nation's TirK INDUSTUIAL I'OI.RY Ol' OULANU. ih') " The roliition of the hibouriii<;- chis.s to the woahhy class hi the nation, may bo compared, ;iiid is very similar, lo (hat uf Hie emph)yed, in a liir-e mami- faeturiiiH- ,,r other business, to Ihe <'iiip!,,vrr or pro- prietors of the business. It is evident that, il', su])- posiny- the proi)rIetor to bo in receipt of very largo l)ro(lts, lie choose to divide a j)art of those ijrotlts irnonost those employed in the business, the busi- ness will not bo thereby reiahu'ed I(>ss prosjjerous. On tli(> contrary, tlioso upon whose labour being well done nnich of the success of the business may be dependent, having come to possess a direct into- rest in^ the prosperity of the business, will probably do their work with greater attention, good will, and energy ; and it is not too much to su])pose that, in- stead of diminishing, the prosperity of tho business may so nmcli augment as to give the i)roi)rietor individually as large an income as ho received when he took the whole of the profits to himself "Wo are quite aware of the argument that labour is a species of conmiodity, which comes into the market of the world and finds its natural price. Now, in considering the relation of lal^our, under particular and definite conditions, to certain other things, as tho relation of one clement to certain other elements, where the restricted conditions of tho case are fixed and determinate, such an estimate of the relation of labour may be not erroneous, but substantially sound and useful. It must be care- fully remembered, however, that the proHminary question is, as to tho conditions. A labourer is a 30 THE INDUSTRIAL POLICY OF KNGLAND. human being, not a mere labouring maclune, and there is no i)rimal necessity why he should do nothm- but hibour. So soon as the ground is thrown open, and the general case surveyed, the theory of a natural labour market and a natural price of labour, stands condemned at once as artifici.il and unsound, when applied to the general case. For example, m a given country N, there is a total average quan- tity of work to be done, necessitating the employ- ment of a proportional qu; itity of labourers. The available labourers in the country are numbered, and the number found to be ten thousand tmies X. This number is to be neither increased nor dimi- nished by immigration or emigration, and the labour is to find its own natural price in the market. Yes : but how long per day arc the men to work ? AVhat is the agreement, sanctioned, authorized, and defined by the law of the country, or the con- ventional law of custom, as to the hours of labour ? For, evidently, if the men are to work eighteen hours a day, there maybe many more than sufhcient of them to do the required work ; and the compe- tition between them will considerably reduce the market value of their labour. On the other hand, if the men are to work only nine hours a day, the nmnber will be practically diminished to the one- half • there may be now much fewer than sufficient to do the whole of the work, they will in conse- quence be greatly in demand; there will be no risk of their being unable to get work, and the market price of their labour will, by A.ND. acliinc, aivl 1 do notliin'ivo trouble ? to avoid com- t reasonable to ss, and to live ,'stem of licensing le, or some sucli r, primarily as an THE INDUSTllIAL POLICY OV ENGLAND. ;v.) Indian-fashion — satisfied with supplying the baro necessaries of life by the most ready and siuij)lc means. The ([uestion is not as to complication and trouble, but as to whether it Avould be the nu>.st just, equitable, eidightencd Christian arrangement, and tlie arrangement most salutary and beneficent to all parties, or whether it woidd not be so. '•' AVh}', in equity and justice, should not a portion of the resources of the whole town . . of all the in- habitants collectively . . be applied to meet such an adverse f kictuation in the i)rosperity of the town i' AV'liy sliould the labouring population bo, as it were, held responsible and nuide to sutler the conse- quences alone ? It may bo said, perhaps, tliat the employers also suffer from such a depres- sion of trade, or from such unfavourable fluctu- ations in the prosperity of the town. But such allegation is not in-actically and really true, excepting in cases of improvident, reckless si)ecula- tion, or of exceptional misfortune, in which the employer may liavc to succumb to unexpected or overwhelming j)ressure, and to lose whatever ho may have possessed in his business : in all other and ordinary cases the employer of labour, whether tradesmen, wholesale dealer, manufacturer, or farmer, averages the profits and losses of his busi- ness, allows a margin for the occasional consequences of adverse fortune, puts a favourable season against an unfavourable, a period of unwonted activity in the demand for his produce or products against a correspoudhig period of unusual depression. 40 THK INDUSTRIAL POLICY OF ENGLAND. " It is true that if the hiboiircr survive until the fovourablc season arrives, he will a^^ain be able to obtain full work and to live for a time in comparative comfort. 15'., into wealth which earns a periodical percentage on its value and tends to increase, and wealth which merely preserves its value or which may even quietly depreciate in value. Again . . a just con- sideration of some of the relations of the subject, necessitates a discrimination between the on-nrv capitalist, who himself owns and operates with active wealth over which he has entire control, and the /,..u()^/-capitalist, who operates with borrowed capital, which he hires, and is bomid, at the expi- ration of the time agreed upon, to return to tlie owner, together with the price for which he lures it. It is, h( vover, the correlation of Capital and Labour' . . me relation, each to the other, of the Capitalist and the Labourer, that we have here to consider. Now, if we were to speak of the capitalist as the employer of labour, or of the labourer, should we be correctly stating the relationship ? It is quite usual so to speak of it, and in a loose general sense not iiicorr(«ct, but we shall prefer to say, because more correctly expressing the relationship, that the industrial operator employs capital and labour;— ho employs them both conjointly, viz., the active- u-calth and the labom-cr. Of wealth he must possess "T^^anMato, as it is sometimes called -house or land pre rerty, .vhich, as rent, earns a percentage of its value, cannot be ^0 consider, correctly classed as capital ; although it may be converted into capital. And, on the other hand, it is not dormant wealth, because it earns. lND. Into jiro- alth ;* /. ''., :ceiitage on ealth AvhicU may even a just con- tlie subject, tlie (iic)i')'- )eratcs witli control, and til borrowed at the expi- }turn to the li he liires it. Capital and other, of the have here to the capitalist ourer, should [) ? It is quite ireneral sense say, because ship, that the' 1 hibour ; — he ., the active- 3 nuist possess 0U30 or land ]}vo- its value, caunot although it may 31- hand, it is not r THE INDUSTKIAL I'OLICY OF EXGLAXD. ■1:} some share, for otiierwiso he could not operate in ail}' department of industry, and he could not em- ploy labour : hence, since every industrial employer of labour possesses wealth and is called a capitalist, it has become a common inference that the capital- ist, as such, is the natural employer of the labourer. One example may sutlice, perhaps, to shako the conlidence of many who now su])pose such state- ment of the relationship to be that of an established economical axiom. Let us suppose a country in Avliich the institution of slavery is still existent, as it was in the Southern States of America not many years since. It nuiy have happened, and it is more than probable that it has somothues actually happened, that a man inheriting- the i)aternal property has fuund himself the owner of a number of slaves, and, in a business sense, of nothing else ; for with the slaves lie finds that he has inherited debts fully balancing the value of whatever other actual property has come into his possession. Now let us suppose that, instead of selling his slaves, he puts them to work, and that their labour is sutHciently productive to furnish the means of their support, as well as that of the owner himself. How would the owner bo classed? As a capitalist? No: for ho owns no capital (unless in the modified sense in Avliich the value of the slaves might be considered such) ; and yet he is an employer of labour.* * It may bo useful to noto that tho slaves would stand in a relationship to labour very similar to that of woalth to capital : 44 THE INDUSTRIAL POLICY OF EN(iLAND. ""Wcluivc, then, tlic''iuaustml operator" as the employer of capital aiul labour. Arc the respective interests of these two fellow-labourers (so to speak), opposed in any degree V We say : No. There are no good grounds for supposing, or ior assuming, that they are natnmJIn opposed. In one way, more especially, it has been frequently .suggested that capital interferes Avith labour in a manner highly injurious to the labourer, namely, by enabhng the operator (capitalist) to substitute machinery (ma- chine labour) for the human labourer. But although the adoption of mechanical appliances oftentimes has, at lirst, an appearance of hardship to certain labourers, and has been sometimes so carried nito effect as to constitute an injustice to the labourer, yet it would be easy to show that, eventually, and on the whole, such adoption of mechanical appliances is bcnchcial and advantageous to the labourer as well as to the community at large. Nor is it correct,^ in a general sense, to consider the adoption ot machinery a substitution of machine labour lor human labour, for it is really an improved method of doing certain work, with the expenditure of less labour and in a more perfect manner, which is effected by the adoption of suitable mechanical appliances. A very little careful reflection may, at the pre- forthcy contain the labour in themselves, wliich they furnish ^vithoul ceasing to exist and without losing the potentiality to labour; just as wealth, after serving as capital, continues to exist and retains the capacity (property) of furnishing capital. n. r" us tho respective I to speak), There are assuming, way, more jested that ner highly labUng tho iiiery (ma- Lit although oftentimes 1 to certain •arried into le labourer, ally, and on ippliances is arer as well s it correct, adoption of i labour for vcd method Lture of less sr, which is mechanical j^ at the pro- ch they furnish e potentiality to ;al, continues to ishing capital. THE INDUSTRIAL POLICY OF KXGLAND. 4') sent day, suffice to convince tlie intelligent Britisli Avorknian, that mechanical invention, and the adop- tion of powerful engines and improved nuu;ldnery, which are tho fruits of mechanical invention, have increased and not diminished the aggregate (pum- tity of employment for the labouring class; and that, although the condition of the unskilled labourer nuiy not bo, at the present time, very satis- factory or advantageous, compared with that of tho more wealthy class, there are good reasons for supposing that, were it not for the adoi)tion of appliances furnished by mechanical invention, and the great development of industrial capacity, Avhieh is the consequent of their adoption, the condition of the labourer in England, and in other countries similarly circumstanced, would have boon nuich less favourable. The present condition of the labourer in China and India, where tho population has become comparatively dense, and the adoption of improved methods of labour has not taken place, may serve to furnish practical evidence of tho con- sequences of neglecting to take advantage of tho industrial improvements furnished by mechanical ingenuity. But to look at the past and present in considering the correlation of capital and labour, and the eftect upon the condition of the labourer, caused by the introduction to a largo extent of machine labour, is not sufficient: the future has also to be taken into consideration. Moreover, in expressing tho opinion that tho labouring class, in the most civi- Tin: INDl'STItlAL rOLTCY Or KN(iLAND. 46 sicloral.ly h.uvi\U.\ by H.o naopHon of ma.^nnovy, ,v(. .lo i\ot iuKMul to oxpivss tlio opnuon tluit xho ,nntt(>r l.ns hrvu viowcl by ihv capitahsts m tho ,i.ht li^bt, nor that the interests of the labourer have received, in tho arranj^enionts which have been „,aae,that c-onsiJeration to ^vh^ch they ave^ ^vluM^ viewed in the rif^ht H-ht, clearly entitled. io ilh.strate our nu>anin^s let u.s a-ain, for a n.oment, linnt the conditions in a particular case, so as to l,rin.- prominently under consideration the manner in ,vhi..h the inronsuh'rate adoption of mechanical appliances n.ay serionsly and unjustly interfere with the interests of the labourer. Supposino- in a certain town, some years ago, before the introduction of sewing-machines, there was a quantity of sewing required which m tho aggregate employed about three thousand seam- stresses. 1 ii • „ The sewing n.achine is invented, and the inven- tion being perfected and found advantageous, it is introduced and generally adopted in the town re- ferred to The consequence is, that after a sliort time, notwithstanding that the population of the town has in the interim increased, the hand-sewuig only sulHces to employ one thousand instead ot three thousand seamstresses; and these one thou- sand are obliged to do the work at a lower rate ot remuneration, for otherwise much of tliat would also be transferred to the machine. The immediate effect, therefore, in that town, ot s'D. THK INDUSTRIAL POLICY 01' KXGLANI). 47 been con- nac'liinory, 11 tluit vho Ists in the (. l;i1)()UV(>V I have been ■ iwe, ^vhen itled. To a moment, 30, so us to the manner mechanical !y interfere ycrtrs iigo, liines, there hich in the Asand seam- i the invcn- ;ageou!:5, it U the town re- after a short lation of the hand-sewing d instead of ■so one thou- lowcr rate of lat would also that town, of tlio f-enoral adoption of the sowinu- machine^ lias been to (h^prive the two flionsinid seiniistresses of tlie means of (Mniiiii; their liveliiiood. It is easy to say, "Let them liud other eniph)yment," but is there other employiiuMit to bo found, il they si-ek for it rtrt it is vory su^x^vliciMl >xp('ri»'ii('('(l it it, -vviru'li Wo luivo icnts of tho as been \\w y tlio nuinu- iill ftu'torics, 3y a greater Ing-nuicliim> loveloinnent. -estcd in the fmd eniploy- r\\\^ nuieiuno resses can do out for a con- t the change, squired to re- some increase CO of tho Ics- on of tho ma- nic when tho ! manufacture 10 sewing ma- il! and: what out, and new old." True ; THE INDUSTKIAT- rOI.ICY OF rXCiLANM). -10 1 but tiie factories esfabb'shed, and which lor several years luivo b(>en in lull work, are eapable of sn|)|)ly- ing not only the new machines wanted to re|.laco those wliich wear out, but ten times that number. Ahnost Huddenly the .sewing macliine trade l)ecomes remarkably dei)res.sed. It is an unlookedlor and apparently unaccountable phenomenon which mani- fests itself. "\V()rknu>n at tlu; factories aro put upon lialf-time, and .still tho i)roduction nuich exceeds tho demand, which continues to dinu'nish. " What can be the matter V " '• It mu.st surely bo reckless over- production which has cau.sed this unfortunate .stuto of things. Matters nmst soon come right, however. It A\dlbe only a temporary inconvenience, and then all will be again flourishing and prosperous." Ah ! Is that a rea.sonalile conclusion? The .substitution lias now been effected; it is comj)leted and fini.shed. On what grounds do your expectations of a revival in tho demand, rest r Perhaps, in this comiection, the mind of tho Statesnmn— carrying itself from tho les.ser sul»ject of sewing machines t(j others of a more extensive character, naincl}', railways with all their various appurtenances and belongings, steamships of all kinds, enormous cities in many countries, each city representing a quantity of building so great that the aggregate seems almost incalculable, may ])er- ceivo light penetrating into places hitherto dark and obscure. What if much of this work — of which, bo it noted, nmch has the characteristic of substitution or of a supply destined to satisfy the 1) 50 THE INDUSTRIAL TOLICY OF ENGLAND. limited tloniiuul arising from the adoption of rac- cluinical improvements,— should be brought to completion at about the same time ? For example : When every town in England has Ijeen con- nected by railway with every other town ; will not tho Englisli demand for the construction of railways cease? What would 1)0 the necessary natural consequence of the sudden cessation of such a demand ? A great number of persons, who, for many years have derived their incomes from em- ployments belonging to or connected with tho construction of English railways, hnd the source of their supplies has become, almost suddenly, dried up, and their income from that source is at an end. If they no longer receive they cannot continue to purchase: tlieir custom is lost by the retaiKlealer, who has hitherto supplied them. The loss of the retail dealer soon becomes that of the wholesale dealer. And, when the demand of the Avholesalo dealer falls off, what is the manufacturer to do ? The factory must put its operatives upon short time. To return to our immediate subject— the relation of the Capitalist and tlie Labourer : We will now suppose a country having, at a certain time, years ago, a population of twenty million inhabitants. Ot' these twenty, twelve million belong to tho labouring class. Now in the course of thirty years, in consequence chiefly of tho adoption of improved appliances and industrial methods, the annual in- come of this supposed country becomes so greatly ). 11 of mc- ;)uglit to exam] Ic : ceil con- •wn ; will uction of necessary )ii of such , Avlio, for from em- witli the ! source of , dried up, 11 end. If mtiiiue to ail r.ealer, OSS of the wholesale wholesale •or to do ? ipoii short he relation ; will now time, years nhahitants. •ng to the liirty years, f improved annual in- s so greatly THE INDUSTRIAL TOLICY OF ENGLAND. 51 augmented, that at the end of the period it amounts to ton times as much as it was at its commencement. Dots it seem rpiite just and ri«>ht, that the whole, or very nearly the whole, of the immense revenue, arising from these improved appliances and their consequents, should be appropriated by the more wealtliy eight million, and the twelve million of their jjoorer countrymen bo excluded from any share in it ? How is it accounted for tliat such an unequal division of the national profits is commonly consi- dered just and equitable ? Because such division results imlumlly from, and is in accordance with, the National Law, Let us now briefly consider : Tlie Law. as cor- related with the relation of Capital and Labour. For our purpose, three kinds of law may be conveniently distinguished . . viz,, Divine Law, Conventional Law, National Law. " National Law" is compounded of Conventional Law and Divine Law ; and it is always imi)erfect, because of the imperfections of Conventional Law of which it is in part compounded. For " Con- ventional Law" merely embodies the approved (temporary) arrangement, which partially educated and partially experienced men agree upon, at any particular time, as the most judicious, expedient and equitable, that, to their limited knowledge and experience, the particular circumstances, on the wliole, then admit of. '' Divine Law," which may be also termed " The 52 IIIE INDUSTRIAL POLICY OF ENGLAND. Iliqher Laic;' means the same as "human law per- fected"; that is to say, it is perfectly just and perfectly comprehensive. As civilization advances, as the human race m general becomes better educated, and as the do- minant class, in any one country, becomes more experienced and Christianized, the imperfections in the National Law are gradually lessened, and it be- comes more nearly assimilated to the Divine Law. In Divine Law, as well as in Conventional Law, J'lrvedieun, must have a place, when the law is ap- plied to such composite circumstances and condi- tions as those of the human race in its progressive development. Expediency, indeed, must be con- sidered an essential part or component of "intel- lectual law applied to human affairs," or, as it is usually termed, " Civil Law." Ihit the, Expediency which is legitimate in the higher sense, must be equitable expediency ; for Di'vine Law will neither approve nor sanction expe- diency which is wilfully unjust. Kow, since in every country, and state of society, the conditions and circumstances undergo change as time goes on, it becomes requisite, from time to time, to readjust laws, of which the expediency may have been quite equitable, at some previous time, when they were enacted. This is more especially the case where the law regulates and controls the relationship between two classes In the nation, of which the essential difTerence, distinguishing the one from the other, consists only in the one being more highly TIIH INDKSTUIAL POLICY OF ENGLAND. 5.'J law pcr- just and race in the do- les more 'ctions in ind it 1)C- nc La^v. nal Law, law is ap- nd condi- 'oirvcssivo t bo con- jf "intcl- )r, as it is to in tlio Lcncy ; for ition cxpc- , since in conditions 10 goes on, to readjust been quite tlioy were case where elationship which the le from the ore highly educated than tlie otiior. For the education of both is progressive, ami if that of the inferior should proportionally make more rapid progress than that of the superior, the distinctive diiference will be- come in that degree lessened, and the law, Avhich nuiy have been previously ecpjitabic in its discrimi- nation, may become, in conse([uenco of the change, inerpiitable, and recpiirc readjustment. Now, supposing that a numerous class, or section of the conanunity, feels itself, or considers itself, to be unjubtly discriminated against by the law, in regard to its relation to the other sections : What is the duty of that class to itself and to the nation in respect to "the law?" And what is the most judicious and rightful conduct for that class, feelino- dissatisfied and aggrieved, to pursue? Its duty to itself and to the nation is, most as- suredly, to respectfully regard, to obey, and to uphold the national law. And the most judicious and rightful conduct for that class to follow, is to be most careful to keep the law on its side by acting lawfully ; for, if the sup- posed grievance be really and truly a grievance, the higher law will then be in its favour ; and it may be sure that, by acting lawfully and adopting such suitable measures as are lawful, the natiomd law will be amended, and eventually become the safeguard of its interests. But if it act unlawfully, then, although the grievance be real, it puts itself in the wrong ; the higher law will be also against it ; the rectification of the grievance will most probably 54 THE INDUSTRIAL TOLICY OF ENOLANIX 1,0 much postponed, find its caso, perhaps, bo ren- dered worse instead of hotter. In support of this advice and in illustration of the consequences ari '^^rr from a numericraly strong and presumably airsr^cved class acting milawfully, let us turn to the page of history. It is now nearly ninety years since the poorer and almost mieducated class in France, misled by false and foolish teachers, rebelled against the law. Stinudr A by grievances partly real and partly imaginary, they succeeded in overthrowing the ministers and executors of the law, and found themselves in a position to rectify matters according to their own ideas. We all know what followed: the Keign of Terror with its yuillotine followed; and, ere long, the great French nation commenced to pass through various stages of anarchy and frightful misrule, carried on in the name of law and reason. After a time the whole nation became the slave of one man, and helplessly saw its sons sent to the shambles—to kill and bo killed, in countries with which it (the nation) had no quarrel— to gratify the ambitious lust of that one man. A great man that one was, midoubtedly, so far as the energetic and courageous use of great natural abilities can be considered to constitute greatness. But, for the nation he enslaved : what an intellectual degradation for a proud, sensitive, and generous people . . a people aspiring, indeed, to realise an Utopian dream of lawless liberty for itself, yet ardent Avith desire to advance the in- tellectual status of humanity for others as well as THE INDUSTRIAL TOLICY OF ENGLAND. 55 , 1)0 ron- ration of ly strong laAvfully, >w nearly leducatod tcac'liors, ricvanccs cccded ill f tlic law, y matters now wliat (juillvtlne eh nation stages of )n in the the wliolo helplessly 11 and bo ation) had .st of that ioubtcdly, 30 of great constitute ,ved : what , sensitive, ig, indeed, liberty for ICO the in- as well as for itself! What a terrible, but grand, lesson — on the consequences of contemning tlie Iiiglier law ! And liave the many years which have since elapsed, sufficed, in their case, for that amend- ment Avliich can only arise from a distinct recoff- nition and i knowledgmcnt of error ? AVe fear that, to say tlie least, a wholly satisfactory ansAver cannot yet bo given to the (juestion. It would be unjust, indeed, to hold tlic whole labouring clas« of France nationally responsible for the vagaries of an extreme section, which, though numerous, may bo only a small minority. But, then, l*aris is a very largo city, and to some extent the exponent of France. The frantic attempt of Counnunism to subvert law in 1871 is yet too recent an event to allow us to suppose the present educational con- ditior of the lower class in France, to be politically mucn advanced beyond that of its predecessors who behaved so badly at the earlier period. Another and yet more recent instance is that of the very serious labour riot which took place last summer in the United States.* * Commonciug with a strike arising from a dispute about the rate of wages between a railway company and somo of their operatives, the men proceeded to use violence and to set tho law at defiance. They were joined by many others, and having suc- cessfully resisted and overpowered the feeblo force sent to restore order, their numbers rapidly augmented, and as, day after day, the dimensions of tho outbreak extended in area and numbers, tho affair began to assume a national aspect of a very serious and menacing description. Evontuallj^ after sotting tho law at defiance for about throe weeks and committing many acts 66 THE INDUSTRIAL POLICY OP ENGLAND. The injury done to tlio cause of the labouring class thougliout the civilized world by this last mentioned afllair it is diflicult to estimate, but it is probable that it will continue to do not a little harm to that cause for some time to come. There is evi- dence, wo believe, that comparatively few actual workmen were engaged in it, and that the acts of violence were not originated, and jjcrhaps not par- ticii)ated in, by many of them. Unfortunately, hoAvever. it commenced with a workman's strike, and workmen identilied themselves with it in suf- ficient number, to give it the character of a work- man's riot. It is nmcli to be regretted, we think, that the various workmen's Uni >ns and Societies in this country, and also in the United States, lost the valuable oi)portunity to publish resolutions repu- diating and condenniing all such lawless pro- ceedings. To confound this foolish and disgraceful outbreak with the lawful and orderly-conducted workman's strike, would be most unfair and unjust towards the latter. It may be very readily admitted that strikes are undesirable and are directly injurious in their cifects. This much the workman will admit quite as readily as his employer. But, because this is plainly the case, are we to condemn the workmen who adopt such proceedings, as acting wrongly and of violence, including the burning down of a railway station and warehouses, the rioters were dispersed with less dilEculty and loss of life than might have been expected from the number and character of those who took part in it. — See last part of Appendix. labouring ' this lust hut it is Uttlo harm icrc is cvi- fcw actual ho acts of :)s not par- )rtunately, an's strike, li it in snf- of a work- wc think, Societies in es, lost the tions repu- Lwlcss pro- ul outhrcak workman's uO wards the that strikes ous in their admit quite lusc this is e workmen f-rongly and I'ailway station 1 less (lifEculty om tlie number >ee last part of THE INDUSTRIAL I'OLICY OF KXGLAND. 07 foolislily, without carefully examiuini,' the reason- ableness of the proceeding considered I'roni their j)oint of view ? The outside facts (so to jspeak), as they now present themselves are of such a noteworthy descrip- tion tiiat they may Avell suggest to those who arc inclined to condenni hastily, the desirableness of exercising miu-li caution. For example, it is an un(piestionablo fact that a very great nund)cr of labouring men have agreed, and do agree, in con- sidering a strike an advisable and rightful, as well as a legitimate proceeding, and those who so agree are not unskilled and wholly uneducated lab(nirers only, but mechanics and skilled labourers, having various occu[)ations and to some extent the advan- tages of education. Nor do the men belong to oue nationality only, but each of the most advanced industrial comiiiunitics has its trade unions, and other such organizations, and, occasionally, has to undergo the Inliiction, and suller the injurious con- sequences, of (I stril-e. Now a labouring man. though generally speaking without the advantages of more than a very ele- mentary education, is nevertheless capable of rea- soning; and he frequently has oi)portunities of exercising liis reasoning faculties on subjects of innnediatc interest to him, such as that of his relation, as labourer, to his euqiloyer. We have, therefore, the fact of a great luunber of reasoning men, engaged in various enq)loyments, agreeing in opinion on a particular subject, in S8 THE INDUSTRIAL POLICY OF EXCLAND. wlilcli tlu\V nrc mneli Intcvostccl, and upon wlneli their uttcMition lias been ior a consideralle length of time almost constantly engaged. The (luestion really turns upon the characteristics of labour. As wo iiavo already said, Economists have treated it as a marketable commodity, which has a natural i>rice. Hut in speaking of, and pro- fessedly treating, labour as a marketable commo- dity, in fact they treat the labourer as a marketable commodity. Tho industrial employer, instructed by the Economist, says to the labourers: "You must understand that you lahonm:^ arc just liko so many bushels of potatoes. You come into the market and find your value. If there are many of you—more than arc wanted for tlio work— down goes your value. In that case, of course, you are to bo had chc.iper. And if there are too few of you, and you are much wanted, then your value goes up. In the same way, precisely, as the vege- tables ; if too many potatoes come to market, and they happen to be" not much in demand, they are to be had cheap ; and if they are scarce, then they. arc dearer." The labourers do not see, perhaps, exactly what is wrong in the Economist's argument, which is usually presented in a somewhat complicated and elaborate form ; but they feel that they, as human beings, arc essentially different from vegetables. Now^the strilx may be considered a reasonable pro- test, on the part of the labourers, against the propo- sition which places them in the same category as I ND. TIIK INDUSTUIAL I'OLICY OF KNfiLAND. no I poll wliicli le leii<;?t]i oi ivucteristics EeonomistH dity, wliicli )f, mul pio- l)lo conuno- markotablo , instruotccl L'crs : i( You ro just like mo into tlio arc many of ivork — down \Y60, you arc too low of . your valuo a.s tlio vogo- niarkct, and md, they aro CO, then they exactly what 3nt, wdiich is iplicatcd and ey, as human 1 vegetables. )asonablc pro- iist the propo- category as potatoes, and, at tlio same tiiiio, it serves as a prac- tical deinon>tration that tliey nw humnn hoiiifs, and not vegotablcs. Writers in tlio daily journals and in other publi- cations on the subject of labour-strikes, are, at the in-esent time, very apt to lecture the labourer on his fooli.sh and ill-advised conduct in making himself a party to the Strike Policy. ''Cannot he under- stand that h(^ injures himself and acts contrar}- to his own interest? lie loses his Avages, and deprives his family of their bread ; and ho injures the business not only of his immediate employer l)ut also of tho town or district by joining in tho strike, and thus diminishes tho quantity of work for niinsolf and his felhnvs. Tho thing is so very jjlain : How is it tho labourer cannot see it?" "Well," the labourer might reply, "I can and do see ])lainly enough what 3-ou mean, but I do not agree with you that your statement comprises the whole question. AVhat you say is quite obvious and right as far as it goes; but ijoil do not seem to apprehend that a strike is an objective proceeding ; it is intended as a means to an end ; it has a purpose. You say that I injure myself and my family by taking part in the strike : Quite true ; that is the immediate effect. And if a man fights, whether with his fists or with a Aveapon, he expects to get injured : he knows ho will be more or less hurt. Is that a sufficient reason why a man should never, under any circumstances, fight ? If a nation goes to war : many of its sub- jects will be killed and wounded, and very much GO Tin: INDUisTKlAL rOLlCV OF ENGLAND. duinno-e l)c dinw. Is tliat a sunifient reason wliy a nation sl.nuKl never go to war? If not, then why (h> you iump at a conclusion before you luive coni- niem-ed your argument : for, If we are to argue the (piestion, it is in the Ihst phice the purpose about wliich we must argue. If tlic purpose bo not u good one, the strike is evidently bad in every way : because unnecessary as well as injurious ; but if the l)urp()se be good and its attainment be of suflicicnt ;-Mportane.>, the (piestion will be then, whether tlic strike is the most elfeetive practical means we can utili/e to elTect and aeeomplish the important and desirable purpose." The purpose of the labourer, whieh he endeavours to accomplish by the strike is, in its wider and more general expression, that which we previ(nisly mentioned, namely, to establish his right to be considered a human being and not a mere vegetable product. Is the purpose a good and worthy pur- pose ? Is it an important purpose and such as to be worth making some temporary sacrifice of im- mediate self-interest to attain? Ah! What an immense dlilerence this consideration makes. That which we were just now called on to condemn as the foolish conduct of the ignorant, now appears as heroism of a very exalted character. For what is heroism, if it be not the willing sacrifice of self- interest, and the endurance of hardship iu order to accomplish a good and worthy purpose ? It may be that, in regard to some strikes and to some men, selfishness rather than a desire to benefit o1 et n in fo be su w pi in tl) .)>' th CO or ini th^ nn ye do OCi it in wl: bo ha WO ♦ pos ,AND. :ason wliy u )t, then wiiy m luivc CDin- lo argue tho iirpose about )su be not u I every way : IS ; but if the 3 of sufliclcnt icn, Avhethcr al means wo he important le endeavours ts wider and we previm- ployer to do that which neither the legitimate interest of the particuhir labourers who strike, nor the interest of the labouring class, in fairness and justice, calls upon him to do. As to the serious injury oftentimes infjietcd upon tho interest of a nianufacturlng or (other industrial comnnniity by stril-ps, there is no room for questicm or argument; and, as to their extremely harmful influence on the Industrial interests of this nation, the direct and indir(>ct loss of wealth, and of the means of gaining wealth, which they have for some years past, and now are, causing to England, in- dependent even of tho personal losses and sutTerlno-s occasioned to a very great number of individuals, it may suffice here to observe that it is very great in amount, and very serious in character. ]Jut what then ? Are we to blame tho labourer ? If it bo his faidt, indeed, let him bo blamed ; but, as wo have said, it is his means to effect a purpose,* and wo, at least, are not aware that it has as yet been * And, let it bo noted that, it is tho only means at Lis dis- posal likely to bo efTective. 02 TIIK INDUSTUIAL I'OLICY OF ENOLAM). roiisoniibly sliown by any ono tlmt the purpo.so docs not I'liUy juHtify lilui in utilizing- tho nuans. In tliis'connc'ction, let uh rotor aoain to that <,n-oat (•xi)orIniont in oonimorcial and inthistrial ooononiy, whioh this country has thounlit woll to carry on lor the hist tliirly yours. AVo havo sot forth in our fn-st h'ttor some (.f tlio disastrous rosidts of tliat expori- nicnt. Is the doveh)i)niont, to which strikes and „tlior forms of dispute between the emphner and hil)ouror have now attained, another of the out- comes of the (so-called) '' free trade " policy ? 'Vhv advocate of that Avhich he considers the nntural eonnnereial system (and which we i)refer to call the system of um-ostrictod competition), lectures the duck for not likino- to be killed. In newsi)apor articles and in essays on tho industrial prospects of the nation, he may bo found to state tho case, as he understands it, in this way :-'' The workmen are miroasonable in refusing- to submit to a reduction in tho rate of their wa-os; for the .sollin- price of the manufactured «;oods is now, in conso(iuence of the dullness of trade and tho conipotition with other manufacturers, loss than it was ;' the old price can 1)0 no lon«--cr maintained. Now, since tho manu- facturer must have his profit, and the other expenses arc substantially the same as they wore at first, it is evident that the wages nmst bo reduced or tho manufacture be relinquished." Here let us note, in the first place, that the dullness of trade does not in itself (of necessity) affect the value or price of the goods. The price is s i: I I] c b o t( tl 1> a o t( k f tho immediate circumstances, but wli\ should tlu? labourer 1k> made the victim or suileivr by such a policy? It is not evident that wao-os must bo reduced in the casi> stated : cpiite the reverse, for it is evident that they need vio/ nccensari/i/ be reduced. Two other, fpilte distinct, methods, sun't ta--^tc . . a taste for gardening, for reading, for mechanieal invention, or there may bo some other occupation which, for him, has a particular attraction. To gratify any of such desires or tastes, to a man receiving twenty or twenty-four shillings a week, and working ten or eleven hours a day, is very nearly impracticable, even if he have no family to support out of it. But give him ten shillings a week in addition, and then : What will he do? ^ Ho will proceed to make himself and his family, if ho have one, more comfortable in their home life; a better dwelling, better furnished than the old one, and better clothing will usually be among the first results. And then he will proceed to gratify some of the desires and tastes of which we just now spoke. It is true that, if especially provident, he may tako some of his additional income to tlio savings bank ; but even that part of it would not long remain unem- ployed, and, in nine cases out of ten, the greater part of the suhsldy iKiyment w^ouM very soon find' its way into the hands of retail traders such as upholsterers, linendrapers, clothiers, greengrocers, butchers, etc. What eflcct would two million pounds sterling, expended an\ongst retail traders weekly, in England, in addition to their present trade receipts, have, in reo-ard to the industrial condition and prospects of the country ? ND. THE INDUSTHIAL POLICY OF ENGLAND. nd a likina: DW hospita- y, ho limy 31* rcadhi;^-, y bo soiuo L particulur 03 or tastes, ur slilUings rs a day, is no family 1 shillings a iio do? IIo imily, if ho OHIO life; a ho old one, ng tho first jratify somo : now spoke. lie nuiy take vings hank ; jmain unom- the greater y soon find lors such as ;reengrocers, lids sterling, , in England, ipts, have, in prospects of Tho effect would very soon he felt as an inimenso increase in business. Ketail places of business, already established, would have niore custom than they could supjjly ; very many additional shops would soon be calhd i'or and opened, which would give profitable employment to a ])roportionate number of i)ersoiis. The retail trader, Avhosc business increases, nuist require supplies, ])ropor- tionally greater, from the mam jct 'ver and pro- ducer. Thus the factory, the worl< op, and the market-garden, having to sui)})iy larger quantities o!" their respective ])r(»(lucts, u pronortionally larger number of operatives will be employed by tliem, of whose wages, almost the m )1o* Avill become a secondary addition, over and above the two millions, to the active purchasing capital, and will cause a secondary increase in the denuuid for increased supplies. It seems scarcely requisite to further point out that, the various dei)artments and kinds of business being so closely connected, the effect upon one must react upon others, and the general efiect neces- sarily be to give a stinndus to tho internal busi- ness of tho country, such that an unprecedented activity and prosperity would result : for exami)le, radway traffic would be considerably increased, and this might not im])robably be the case to an extent so great that additional lines of railway com- * That is, not only tho subsidi/, but also tho employer's pay- ment. n •IlIK INDUSTRIAL POLICY OF ENGLAND. „nini<'alion Avould l)e vt'^[xmv<\, ilio consl ruction of ^vl.i(•ll would fun.is'.i lurllun- aiUlitional mnploynu-nt. Not only tlu> intmial lmsliu>ss of tlic ( ountry would 1)0 tlius iunnonscly bcnt-lited, l)ut the export inanunicturer would become most advantageously circumstanced for supplying all avallablo^ foreign markets.* Factories cvigaged in compotition with tho im)ducts of other countries would bo fully employed, and probably tho number of thcnv would scon be increased. The iron-trade would rec.)ver vigour, l)ecause, at whatever price foreign n-on mhiht be introduced, it could bo profitably com- peted witli, and, if lerpiisite, be undersold by tho native product. Another point, yet to be considered, is the pro- posed reduction in the hours of tho workman's labour. This part of tho proposition is quite inde- pendent and distinct, for such diminution in the time, whi believe, that such diminution in the work-day liours without un increase of wages, would ])e but a somewhat questionable Ijoon to tlio ordinary labourer. It would certainly tend to keep a great number of labourers in the home country, In^causc! the sanu' quantity of work would then emi)loy a greater number of hands. Jhit, to those engaged in regular Avork, to have several hours more at their own dis- posal, without tlio means of procuring any of those things whicli promote, and are almost ncc(\ssary as aids to, the rational enjoyment or to the utilization of such leisure, Avould Ik; very likely to prove harmful instead of benelicial. AVhen, however, l)y such addition as Ave propose, the means of procuring these aids is put into their hands, it becomes quite another matter. It nu'iy, at the iirst moment, strike many persons as another extravagant idea, to say, as we now do, that it Avould not only veri/ much advance the higher interests of the nation, but Avould also in- crease the business profit, and so servo, in a busi- ness sense, the immediate self-interest of the nation, to acconqxany tlie addition to the wages with a reduction in the hours of tlio Avork-day. For, evidently, taking the broad view of the case, if' Avorking the longer day, there arc a certain number of labourers in the country, all of whom have to be supported by the nation, and, the same labourers can do all the work required, by working the shorter hours, the nation loses nothing. But if the 76 THR INDUSTRIAL roLK'Y OF ENGLAND. workman, luivlnj; tlireo or four or live liours u day nt lil.s (li.sposnl, .should occupy himself in any kind of productive industry (nuukct-gardcnin^r, f..r in- stance), which wo bdievo that very numy would do, then the result of that labour would ccmstituto ISO much profit or wealth gained by the nation. AVe may hero briefly summarize^, under the two principal heads, the great benelits which wc feel sure nuiy be safely predicted as the primary and direct result of tlu; proposed nu-asuro when put into op(>ratiou. Wv Jiave supposed four million labourers to bo the direct recii)ients of the labour-subsidy, which amounts to two million pounds weekly. Now, four million nu-n represent, at least, twelve million persons, so that wo have : (I) The natural lives of (say) twelve million persons, rendered more happy and more useful; for it cannot reasonably bo doubted that the effect of the additional income will be to elevate the domestic lii(>, to lmi)rove the morality, and promote the physical and the mental well-being, of the labouring class. :Moreover, the benefit of this kind will not. bo confined to the twelve millions, for the efi'ect will certainly bo to raise generally the minimum rate of wages to the same, or very nearly the same, as the present rate, increased by addition of the national subsidy. Also skilled labourers and clerks with salaries of a hun- dred a year or less, will certainly obtain a consider- able advance in the rate of their remuneration, by which their families, as well as themselves, will bo benefited. ILAND. c liours II (lay ill nuy kind LMiinjj^, f»)V in- ■ inimy would mid constituto u; luition. iwtlvv the two vl I It'll wc Ibel ! priiimry and mo when put iibouvcrs ti) 1)0 vihs'ulv, wliich Iv. Now, i'our twelvo million Kit lira I lives of id more liapi)y reasontihly ho Litlonal income to iin[)rovo the and the mental Moreover, tho [confined to tho certainly bo to of wa^es to tho ho present rate, 1 subsidy. Also larles of a huii- )ta:n a consider- smuneratlon, by smselvcs, will bo Tin: INDirsTKIAI. POLICY OF KNGLAND. 77 We spoke of tho increased taxation requisite to provido the two inillion.s of weekly payment being levied mainly upon Class ^ (tho extremely wealthy class); but now, with the immense prospective increase of business before us, let us ask, whether it seems likely that, supposin^r this additional amount were to bo obtained simply by an increase of tho general taxation, it would bo felt to be burdensome by the general body of taxpayers. The labouring class would not complain, because it would bo mer(>ly a small contribution on the part of the labourers towards a fund tho whole of which would wlicn collected, be paid over to themselves. And as to tho intermediate or middle class, -would it not, on the whole, instead of having sacrificed a small part of its previous income in favour of thoso less fortunately circumstanced, find, in addition to very great benefits of another kind, its iucomo actually augmented ? We shall now propose a means whereby tho great and manifold benefits wo have indicated, as conse- quent on a considerable increase in tho remuneration of the labourer, may bo obtained without even tho appearance of paying away any part of its money or -wealth on the part of the nation. Instead of Parliament voting a sum for the labour- subsidy payments, or any other plan being adopted which might interfere with, disorganise, or compll- cate existing monetary arrangements, our pro])osaI is for tlie Chancellor of the Kxchcquer, or tho Government department of the Bank of England, 78 THE INDUSTKIAL POLICY OF ENGLAND. to issue hihovr-snlsidi/ notes, to the total amount in value of fifty miilion pounds. Upon those notes woukl he prmtcd the words, " Acccptahle, a- legal tender, for fiicc value, in payment of any Govern- ment tax ; if presented before. . ." {similied date) This would secure the note from depreciation, and insure its capacity to serve as a limited instrument of currency. It would also (or could he nmdc to) insure the early return of the notes to the Bank, so that the total quantity issued would not have to he much in excess of the quantity actually required to furnish the weekly payments from the time of one issue until the time arranged for the next succeeding periodical reissue. The labour-subsidy notes thus created would bo cnite independent of other monetary instruments, a circumstance which would simplify the transactions, md enable the matters connected therewith to be more easily kept d^'stinct and separate from other financial business of the State.* "iTis not unlikely tliat wo shall bo accused of liaving redis- covered " tlie pliilosoplier's stone;" tkat is to say. of having proposed a ready means of creating wealth out of paper and printer's ink. In the event of such accusation being brought against us, wo repel it in advance by repudiating the supposed discovery. Wo are in agreement with those who believe a five pound note to bo worth the paper and labour employed in its production and nothing more, and that however many of such notes may be issued by the Bank of Fugland, or by any other bank, or by the Government treasurer, the national wealth wiL LAND. ai amount m I these notes able, a" legal any Govern- pccified date). •ceiation, and „^d instrument be made to) tlic Bank, so ot have to be [y required to c time of one cxt succeeding ited would be instruments, a ic transactions, icrewitli to bo to from other id of having reclis- to say, of having out of paper and ion being brought .ating the supposed 3 -who believe a five 3ur emiiloycd in its ivcver many of such ud, or by any otlier national wealth will THE INDUSTRIAL POLICY OF EXGLAND. 79 Tlic most important of the apparent objections to the proposed scliomc wliicli will, we think, suo-o-ost themselves to the minds of practical men, arc ''tho following- : — (1.) Tiiat if such a wages-honns be paid to some labourers and not to others, those not receiving it Avould feel that they Avero treated with unlalrncss; whilst, on the other hand, it Avould be practically almost impossible to romunoratc in such u manner each individual labourer. With regard io this ob- jection, wc have to state that our proposition is for the nation to pay the subsidy to labourers engaged not bo increased iu any degree thereby. Eat if by tliis repudi- ation we escape " Scylla " on the one hand, there is " Charybdis" not far distant on the other. "Inflation of the currency," some one exclaims, " with all the dire evils attendant tJiercon. You propose to inundate tlic country with this enormous addition to the instruments uf currency, apparently riuito ignorant or regard- less of the effects .f such a proceeding upon the business and commercial interests of the community." To this charo-o, if made, we reply witliout hesitation, that, inflation of tho cur- rency is a mere bugbear of tlio economist's imagination. It is a supposed sto^o of things which " all tlio king's horses and all the king's men " never havo boon, and never will be, able to bring about. It would bo difficult to persuade a man to wear more than one pair of boots or more than ono hat ut a time, merely because moro of each are easily procural'o. Just so •vith instruments of currency ; peoplo wiU not use more than ihey want, A bank may issue as many ^jotes as it likes, but if 80 THE INDUSTRIAL POLICY OF ENGLAND. in industrial labour of a productive character, and in no case where less than four labourers arc work- ing in association under the same employer. A man working for himself would receive no share. Neither would domestic servants, nor railway ser- vants, nor cabmen. Obviously, however, the effect would be to increase the rate of wages paid to railway and domestic servants, and to increase the earnings of cabmen ; for, very soon, the servant, if not paid the former rate of wages increased by an addition nearly equivalent to the subsidy, would seek employment in some one of tlie productive industries entitling him to receive the subsidy. In not wanted tlioy will either immediately return to it, or else dis- place Bome other instruments of currency previously in use to the equivalent amount. It is from the imperfect observation of this displacement that the plausible fallacy expressed by " inflation of tho currency " has arisen. For, where several lands of currency are in use together, as in tho more civilized countries is always tho case, the one kind may bo inflated at the expense of the others : that is to say, tho relative quantify of that one kind may be made greater than tho convenience of the community requires. Thus, the silver currency may be inflated at the expense of the gold, or tho gold currency at tho expense of the paper currency, or the paper currency at tho expense of the coin currency. In either of those cases the aggregate quantity of currency ..i uso by the community remains unaltered, but a certain quantity of tho one kind is displaced and sup- pres' ^1"<^ excess or superfluity of tho other kind. ■\' a n n C( E as LAND. avactcr, and ii's arc work- in ploy cr. A v^o no shave. railway scr- rer, the effect ages paid to increase the le servant, if L-eased by an bsidy, would 10 productive subsidy. In to it, or else dis- (vlously in use to rfect observatiou icy expressed Ly )!•, where several he more civilized bo inflated at the .atlve quantii-y of onvenience of the jy may be inflated ,cy at the expense at the expense of es the aggregate remains unaltered, iisplaced and sup- ler kind. TIIK INDUSTRIAL POLICY OF ENGLAND. 81 tlio same inannor, meclianics and otlicr skilled Ia]>oui'ors,* wlu) would not bo recipients of tlio subsidy Avould very soon obtain an advanced rate of remuneration for their labour. This, it may be thought by some persons, would be a hardship and injury to those who have to pay the higher rate. To Avhich we reply that such a conclusion is bcqrjing and not arguing the question. It may, indeed, be made the subject of argument, and we will allow there is herein ground upon whieh adverse argument nuiy be stated with some show of plausibility; but wo are (piite sure that sucli argmnent logically followed out will finally leave the objectors on the wrong side. There would be, no doubt, some temporary "neon- venience to individuals in the readjustment of matters under the new arrangement, as in changes in national policy, or alterations in the mode'^of conducting public l)usinoss, there nuist always ]„>, but there would be no injustice. (2.) The Army and the Navy.—^^ Would the soldiers, when the labourers w. re receiving the proposed addition to their wages, be satisfied with the present rate of payment for military service ? " No ; it is not likely that they would be. " But then, fifty per cent, addition to the pay of the soldiers and sailors, would make a very awkward looking item in the Estimates?" 80 it might, seen from a distance, have a very unprepossessing appearance ; but If not * Inciuding office-clerks of tho lower grade, shopkoonors' assistants, and so on. 82 THE INDUSTRIAL TOLICY OV ENGLAND. t";7^;;;;d^^a^^ ^^ it more dosdy its aspect would become, .ve think, much more plea - ink In the first place, wo will again repeat the a::^om, already .eveval times st.ted:-lt the .>l^s belong to the country and retanr or spenc, tUri money in the country, the nation wdl ^^ -^^\ ^^ whit the poorer, even though it pay them double or treble the present rate; for the soldiers themselves constitute a part of the nation, and the property of the English soldier, living in England, is a part ot the wealth of hhigland, just the same as it it were the property of the English banker, or merchan , of the wealthy commoner or of the peer of the realm. Another consideration belonging to this division of the subject, is embodied in a suggestion a ready put before the public some time since in our elemen- tary treatise on Politic..! Economy. It is . . that the soldiers of the regular ..rmy, when not engaged m active service, should bo extensively employed m n.dustrial labour. For example : How much ot the work in the construction of the railways of Eng- land might have been advantageously performed by soldiers "^ * Wc do not mean for the soldiers to be disbanded or set free to seek such employment for themselves; but to bo employed in companies brigades and detachments, under their commissioned and non-commissioned oflicers. The practical * And also, mucli of tko work connected vrith arsenals, Government docks and fovtifioatious, miglit be advantageously performed by the sailors of the Eoyal Navy. I c } T r I d S ai 1 LAND. Q closely, its 1 more pleas- in repeat tlio If tlie lioldicrs Kpciul tbeir il be not one leir double or crs themselves le property of id, is a part of as if it were )!■ merchant, of of the realm. ,0 this division ;estion already in our clemen- t is . . that the Lot engaged in y employed in ow much of the dways of Eng- y performed by D soldiers to be emplo}'ment for in companies, ir commissioned The practical cted -with arsenals, t be advantageously THE INDU8T11IAL POLICY OF ENGLAND. 83 benefit to the soldier as a soldier, would be very great. He would bo inured to long-contiiuied physical ut they are not for you. You see that you are surrounded with the means of satisfying your intellectual desires: but those things you nmst not touch. It is probable, nay, it is certain, that you will feel more keenly than heretofore that you are not mere vegetables or vitali;ced machines. But you have been so classed by experienced economists, and our fathers and forefathers have so considered and treated you : wherefore you must be content still to be so regarded and treated." In our first letter, on the present commercial policy of this country, we have stated the reasons why we thinli that England has, iy these last years, OO Tin; INDl'STKIAI. I'OI ICY OF KNGLAND. in conscqucnco of the bncl 8y.stcm ndopted, lost some ()ltlioi)okMitiarity()l"ac(itiivIngw(niUlnvliiclil)ol()ii^'ccl to lier, and that, iusteudofincmisliio' that potential- ity, it is now heiii{^^ tran.stVnvd to others or supinely allowed to be taken iVoni us, XevertheU ss we arc much impressed with the iumiensity of that poten- tiality Avhich Knn-land ha., lor a lonj^- time past possessed and still does possess. It seems to us that the aetuid wealth of England, comi)ared with that of other nations, is greully underrated, cv(>n by those mIio mi;:ht bo supposed most eajjaltlo of forming- a correct estinuite. A^'e are tcjld that each of the nations of the civihzed world owes a debt ot considenddo magnitude, Avhich is called the national debt of the nation which owes it. We are told that amongst those nati(ms the British nation is one : mi.l that the National Debt of England is • enormously great, exceeding in magnitude the debt of any other nation. And we are taught to regard this great debt as a pcv coiitni, to be de- ducted from the aggregate wealth of the nation. Now this Is not true— not even partially tru( — but wholly untrue. There is no National Debt of Eug- hni'l It is not true that England owes such debt. " Arc we in earnest ^ Do not great connnerclal and financial authorities agree that this debt of vast magnitude is existent ? Do not politicians, in and out^of Parliament, deplore its baneful influence and depressing effect upon our industrial energies ? Do Ave su])posc all these experienced persons to be mis- taken ?" To this we reply that, if it were a question UNI). :e(l, lost some ii(liljolonp;c(l nut potcnl lul- l's or supinely iclc'ss Ave tu'o if tliat jiotcu- ii;;' liiMC past i^t'ClUS to lis »iHpavi(l with eiTutcd, cvcTi )st capaLlu of told that each rt'cs a debt of i called tiio ?s it. We are Ijritish nation of England is lagnitudc the are tanght to //(/, to be de- of the nation, ially tru(>— but / Debt of Eiig- wes such debt, eat commercial his debt of vast iticiaiis, in and il influence and energies ? Do -sons to be niis- werc a question IMAGE EVALUATION TEST TARGET (MT-3) 1.0 I.I Iff iiM m m IIIM IM 1.8 1.25 1.4 1.6 ^ ■a 6" ► ^ ei Photographic Sciences Corporation 23 WEST MAIN STREET WEBSTER, N.Y. 14580 (716) 872-4503 ,\ ^V % .V ^ .. \\ 'O o^ rv ' inillions to bo paia off, tho (](.'!)t wouhl of course bo cxtinguisliod. But let us suppose" tlmt, iu order to pay tho King of Abyssinia, our riovornmont l)orre amount put down against her, and the United States does acturdly owe a largo part, perhaps nearly the whole, of the amount set down to her debit. But that is not all the diftl-r- * For tho fuller discussion of tliis subject, soo " Tho Characteristics and Sisnification of National Debts," byKuklos. It waa computed tliat in 1875, the National Indebtedness of tho American Continent was, as nearly as possible, eciual in amount to the so-called National Debt of England . . namely, 775 millions. iLAND. 3 matter moro Itli of natkus no nation is diicli is rela- .' 1)0 wealthy nuicli poorer, id experienced They arrange irious nations, ion or country us wo find, for £775,000,000 Lt) 500,000,000 lebt of Groat ucli a sense a jh debt.* But There a largo ally owing hy LO diffcrc;:cc is lirland does not ni against her, y owe a large the amount set all the diftl-r- vibjcct, see " Tlio Debts," by Kuklos. [ndebto(lnes3 of tlio le, cr[ual iu amount id . . namely, 775 Tin: INDl'STRIAL POLICY OF ENGLAND. 9.") eiHv, for a largo part of tlu; United Stales' dcht is owing to KiiM.l;,i„l. So that not only Kngland does not nin', on the one hand, but owns as creditor ou the other. And this applies not only to the debt of tlic L^nited States, but to the nati.aial debts of almost every other count-y : nanu-ly, a considorablo share of tlie del)t of each is owing to l-higland. Again, to obtain an ade(puite itlea of the Avealtli and past profits of England, we must r(Mnember how much Knglisli ,-apital has been invested in otiier countries. In tlio railways of America, and of the conliiuuit of Kurope for example, and also in the Colonial part of the British Empire, in India, Canada and Australia.* ••' Tliu (luustioii of (ho iuterferonco of ono nation villi tlio action of aiiollior, oi- iu tlio affairs of other nations, does not soeni to us to Iiavo recoivod as yet that kind of systematic con- sideration, to wliidi, as belonging to national and international la^^-, its iniporfaneo entitles it. rolitioal Economists, and statesmen even, do not appear to have beeomo fully observant or aware of tlio very different modes in which such intorferenco may take place. There is (he direct interference by the nation, and the indirect iutorfereneo. The interference for tho sako of its own niateiial interests, and tho interference for tho sako of civilization, of hnv, and of order, in which tilings all nations aro interested. Tiu'ro is tlie witting or intentional interference, by thonatiun, as a pVacy deliberately adopted witli a distinct re- cognition of tlio responsibility attaching to it, and with tho expectation of a result whidi tho intorferenco lias for its object. And there is the un^vitting or unconscious interference by tlio 90 TlIK INDUSTUIAL I'OLICY OF KNGLANU. Wo rciiicinbcr meeting' somcwhcvo witli an ar-umcnt, of which tlio nature c.f Vm^a\mvV>^ National Debt rurmcd the subject. At last tlu) nation, in w..I,l. it net., or, vathor, .Hows itself to bo m.^lo to a,.t, Avithout its kn,.Nvleclgo ami without consi.loration or vogai-a, on tl.o part of its agents, to the possibly very serious ellerts of its interferon.^ and to the rosponsibilltios involvr,! in its aetio.i. Also, generally, the reasonable, justifiable, judicious, aa.l sa- lutary interferoneo may bo distinguished from the unjustifiable, impoUtie, uncalled-for, and vicious Interference. Of the unconscious interference by England, through her unrecognised agents, in the affairs of other nations, many examples nught bo adduced. One such was furnished by tlio American War between the confedor.ted Northern and tlie con- federated Southern States. Now, in that contest, the declared policy of England was neutrality, and yet if we do not mistahe, England interposed to such an extent as to have decided the contest, and to have --nded it in the reverse way to that in ^^-hich, witliout tho interference of the English nation, it might, and. not improbably, perha:.., would have, terndnated. Eor was it not tho wealth of England which, poured into tho treasury of tho Northern States, enabled them eventually to overwhelm their opponents?* It might be going too far to say that tlie gold of England has furnished IJussia with her military railways. It ma/ safely bo said, however, that * The National Debt of the United States, whicli in ISCl was £18,000,000, was increased to £oGl, 700,000 in the four years of war which followed. LAND. }vo with ini At iiiNt tlio ■to lio mndo to ration or regard, scM'Ious oU'ects or veil in its iifliuil. idlclouw, iiiul sa- thc luijustiliulilo, ul, tliruu-li I'.ot V nations, many fniiusliod liy the icvn and the con- itrst, tlio declared •0 do not inistalve, iiavo decided tho way to that in Inglish nation, it have, terminated, lich, poured into I them eventually bo gh(. luicau.so it was curtain that a liir^-c amount ct wcahh roprosontod hy tho so- caUod doht had h(>,.n oxiumdcd hy i,s as a nation, eally in Inro pnrcnth to oach and ovory of its subjects, and, lilco other parents, must abide tho consoquoncr.. of tlio wis.> ,.r foolish conduct of its cJul.h-on. Novortlieloss. thero sliould ho u roasou- •ihlo limit. If Junes injudiciously invcstn l,is nnmoy \n tli., Kamtchatlia mines and loses it, th., I.,«s is nioro sorioua to him- Hdf individually tba,, fu th. „ati„n. IJut if Jones, and Ton,, and Dick, and Harry, scatter tJie nation's wealth, at haphazard, amongst foreign .States, in u manner to cause political disturb- ance, tlu, resnlt may be grief and tribulation, as well as loss, to their national jiarent. AH Kuropo has just hoard tho opinion of an eminent states- man on national iulerfcrcnrc of another land. Tho expresHion of that opinion had somewhat the sound of a menace. It is not, however, needful, and would be, therefore, uncharitable so to construe it. As a caution or warning, therefore, let it bo understood. "France acted unwisely, in a manner ill-advised, and which tho event proved to bo detrimental to her own interest, by her interference, after the battle of Sadowa, to prevent the ruin of Austria. Thereforo let not other nations follow that example, lost thoy bring upon themselves ill conse- quences and punishment such as fell to her lot." Tho example here brought forward is perhaps nnu^no, at least no other instance of an exactly similar kind occurs to us, where the inter- ference by a third nation was to avert tho extreme conseauences of disastrous defeat from one of two combatnnt nations. Thoro have been, however, occasional instances of a nation interfering 100 TllK INPrSTKlAL I'OLICY OV E NULA.-H. (I sl^fc the Valium iTiniiins still in tlu- .-ountry, it an mil st be owin-,^ by the nation. Now assuminjr that wo have com-etly ntutod th(> a.-un.cnt, from to aid unil rrotect .mother by material support from destruction l.y superior force. lUit xvltli rcferonco to tlio examplo adducod, was Princo Bismank justlGcd iu his statement ns to tho ovont? la it possiblo that tho sn^'ucity and astuteness of tho csporienccd politician was at fault ; that he committed liimsclf to a circum- stantial error, and rendered nugatory hi. advico l.y l.asing his monitory eounsel ui.on a supposed event ^vhich never really occurred. Did i'mnrc interfere fur the rct^cuo of Austria after tho battle of Sadowa ? It is a question of fact belonging to recent history, and yet not very easily answered. There are really two (luestions included in tho one. Did Franco interfere ? And, if Franco interfered, was it for tho sako of rescuing Austria ? Wo well remember that, at tho very eommcncement of tho Franco-Prussian war, at a time when tho opinions and sympathies of Englishmen wore much divided between tho belligerents, tho draft of a most iniquitous treaty between Franco and Prussia was published in the Times newspaper, of London, which treaty was authoritatively stated to have been proposed by the Emperor of tho French, Prussia having been secretly invited and urged to join him in it. Tho effect of tho publication was unquestionably to turn very many of those Englishmen who were previously neutral, or favourable to France, strongly and decidedly against Franco and in favour of Prussia. (Lot this incident bo again noted, for it was very noteworthy, and tho impression made by it at tho LAWD. e coimtry, it .ssuiirni<^ that umciit, from Irom destruction xttniplo ndilucoJ, as to tUo ovont ? f tho cxporienccd self to a circum- po l)y basing his licli iicvpr really 8CU0 of Austiiii )f fact belonging ured. Tliero are Franco iuterforo ? sako of rescuing uencemont of tlio us and symimtliics ) belligerents, tho rancc and I'russia idon, which treaty proposed by tho n secretly invited >nably to turn very iously neutral, or ly against Franco bo again noted, for made by it at the Tin: i\m-sTRi.\L policy of v.sc.lxsd. 101 moniory, wr (l(Minir both to tlio inforonco ns to tlie moiinin^r ji„,i to fl,,. nllc'^r.itlon as to tlio fact. To tuko tho hist lli-Mt; tlio vakio(h)os n..t ronmin time having boon partly obliterated by tlio oxeiting ovonts whicli inuaodiately followed, it has had, perhaps, a loss share of atten- tion nlh.Ued to it than tho important influcneo it oxorcisod renders desirable.) Tho question is suggested : Is it probablo that England would aftorn-ards have intorforod between Trussia and France, if this circumstanco had not taken place? Tho effect of tho publication was very groat. Amongst min.ls, undecided and engaged in balancing thoir opposing sympathies, it foil sud- denly, like a bomb.fihell, and exploded. Falsehood, troachory, and deceit, whi.h Englishmen do not love, were (apparently) shown by tho evidence of this romarkablo document to bo all in tho one camp ; and so tho sympathies of Englishmen must go to tho other. Wliother tho national mind of Englan.! would otherwise have prepared itself to speak and act under certain eventualities cannot now bo known. What England actually did, we all know. She looked on, troubled and aghast . . and unprepared to art. AVe will not take up spaco here by considering what pcssiblo or probable motives may havo actuated the Emperor of tho French in hi,s interference after Sadowa, but will come at once to the point. If Austrians and Englishmen had felt convinced that Franne itself, as a nation, interfered to save Austria after the battle of Sadowa, moved in doing so by a chivalrous and un- selfish desire to mitigate tho consequences of disastrous defeat; 102 THE INDUSTRIAL POLICY OF ENGLAND. in the country. The wealth represented by the debt was actually expended years a<,ro. It was ex- pended for tlie most part in hard cash (so to speak), sown broadcast over the Continent of Europe. It went from us in subsidies to Prussia, Austria, a-.ul Kussia, and to pay our own war expenses in Sp-un to avert tho unmerciful humiliation, and the wrathful destruction, porhapp, of tho nationality of one-half of tho Gorman race by its nearly allied neighbour. I f such had been their conviction : what would have been tho olTcct wlion Franco herself subsequently met with a like disaster? It would bo too much to say certainly that ti.ny, Austria and England, would, jointly or severally, huvo interfered, but it is at least unjust to conclude tia. they would not havo done so, because, under tho actual cir- cumstances and tho influence of preceding events, they did not in fact interfere. In speaking of tho foregoing wo are reminded of another instance of interference, only a few years earlier in date, with regard to which the same question might bo asked : Did France interfere ? Mexico and Maximilian. Ah \ tlioro was another instance of national interference. And' yet— AVas it so ? Was that an interference hyFvancc herself . . by the chivalrous men of Franco ? Nay, that wo cannot easily believe. If the French nation had itself interfered, would it, at the more breath of danger, have'desorted tho man mIio had trusted himself and his fortunes to its pledged word ? Maximilian, tho knightly and bravo ; who know no decoit ; loyal, true, and worthy of Empire. He died indeed ; but died a king ; keeping that royalty adver- sity could not take from him, nor death deprive him of. iLAND. cntcd by tlio >. It was ox- (so to speak), f Europe. It Austria, and niscs ill Sp-iin ithful destruction, orman race by its ■ conviction : m hat solf subsequently ch to say certainly ntly or severally, to concludo tia., 3r the actual cir- ents, thoy did not ;iinded of another irlier in date, with asked : Did France horo was another -Was it so ? Was the chivalrous men ive. If the French the more breath of tod himself and his 1, the knightly and L worthy of Empire, tliat royalty adver- rivo him of. THE INDUSTOIAL POLICY OF ENGLAND. lo;] ,iul oLscwlicro.* Wo, a.s a nation, tlion and thoro invested tli^ , wealth in tlio i)roni()tion of an object tlio nation had greatly at heart; or, in other words, we paid away and utilized it to bring about a result which we deemed sufficiently desirable to justify us in sucli use of it. And then as to tho meaning . . Clio meaning of tho so-called National Debt of England. . . it is this. It is tho record of an event- ful and momentous period in the history of tho nation. A grand monument to the greatness of the nation. The record of a time when England stood forth alone as tho cliampion of civilization and of the nobler interests of the lunnan race. . . . Of a time when England understood her most precious interests to bc^ tlie interests of human freedom and of human i)rogress. Of a time when Britannia had national duties to perform as well as material interests to protect, and when her wealth, as well as the lives of her sons, was freely expended in the performance of national duty. For in those days it was her glory to be a leader and an example amongst the foremost nations of tho civilized world. Slio dared oven to show to others how a great nation could use as well as acquire wealth. "In * A part of the so-called National Debt belongs, liowover, to periods earlier than tlie iimo wo are hero more particularly referring to : for instance, to tho period of "Tho .Seven Years* TV ar," commencing in 17.50, in whieli seven years it was in- creased from about seventy to one Iiundred nillions, At the conclusion of Tcapo in 181.5, tlio total amount of tho Debt was a littlo more than nino Iiuudrod millions. 104 THE INDUSTRIAL POLICY OF ENOLAND. war?" Yea . . In war. Within and without the realm that great war was stuhhornly and wlili unflinching courage lought out. More d^ nger- ous and not less harmful was the secret foe within than the dei hired foe without. The sophistry and the false reasoning which brought the charms of the polished rhetorician and per- suasiveness of the practised debater, to confuse and bewilder the national mind. . . Which almost proved right to bo wrong and black to be white. Selfishness, meanness, and i)usil]animity ; which grudged the expense of protecting national honour; which bewailed the loss of that material treasure it so much loved to lioard, and Avhicli feared the con- sequences of action . . desiring to remain u passive spectator of wrongs inflicted on others. With these the battle had to be fought, as well as with the military genius and the mighty power brought an-ainst lier in other lands. Inch by inch, and foot by foot, the enemy within and the foe without were forced back and at length conquered. And then : Peace and the National Debt. No : not a Debt but a Record. Not a National Debt but a National Monument . . reminding the nation of what it has acliieved in times past, and speaking to the nation of the great ruh' it may yet play in the future history of the world, if it, behig not afraid, be mindful of its higher duties and higher interests. In conclusion, let us express the hope that the arrangement we have suggested for adjusting the LAND. . witliout the y and with ore d^ nger- secret foe ;liout. Tlie liich brought ian and pcr- ) confuse and ^Hilch abnost to be white, niity ; which ional honour; ial treasure it ired the con- lain a passive j. With these as with the >wcr brought ineli, and foot ! foe withoiit qucred. And ;. No : not a ,1 Debt but a the nation of id speaking to 'ot pk\y in the J not afraid, be er interests. hope that the adjusting the THE INDUSTRIAL POLICY OF ENGLAND. 10") relative position of the working-class, will bo con- sidered as it is proposed by us, not as belonging to any political partiicanship or social theory, but as a question of vast national importance and one greatly affecting the interests of civilization. Of those witli whom the decision will in the first place rest, many belong more or less professedly to the Church of Christ. It may be, and we trust it is, unnecessary, but it can do no harm, to remind them of that Imc of love which comprises '' all the la^v and the prophets," and of that comprehensive rule which requires us, as Christians, "to do unto others as we would they should do unto us." Respectfully, KUKLOH. '■MMnsid^W^ ' A P r E N D 1 X. WORKTXCi MKN IN THE UNITED STATES. ('/■//(■ Times ]VirIi!j Edition, Sfptrmbrr 1th, 1H77.) SoMi- infuniKition h;i. li.t.ly Loon publishca rcHpodin.^r the i>rogrcs« of the hihour movcnuMit in tl.o I'nitoa States, of the pohticiil anil Bocial cluuveH at wl.ich the new Party is aiinins^, and of the various causes whi.l, .•.nnl.ine to nuike it fonm.lahle. The Party itself is the latest birth of time. Huraiv are the Railway Strikes at an en.l before we receive news of this fresh attempt on the part of their promoters to ayments and for sanitary inspection of workshojis. Helow the.se. and of more equivocal merit, coino the projiosal to elect all State and .all National ollicers by the direct vote of the peojile. tho scheme for placing all railroads and telegraplis under immediate State control, the claim for univi'isal gratuitous instruction. 15ut after these the deseent is rapid. The interference of the (iovernment in tho suppo.se.l interests of labour is s(«m carried beyond the point at which it can be usefully exercised, until wo come at length, after various stejis downwards, to a (•et c(.ne to pass, but the existing (Jovernnient is too dcepiv ^bdged o hem for ns to hope that these pr.,cets wdl be al^.:' 't V L i ':'T- '"*■ ""'""^^'' ^■'^•^- -'-'■ - "- "iumphant in WeT, ':''■'' "^""■""■^ ^•''•"•^■^ *" --'- ■■' "-"'IM in New .South lo r^ ^ 'rT''"'"''''"''^''*''^'"'!''^'^^^ is the san.e in Mh C.>lon,(:s. The Free Trade policy of Xew South Wales is di^ ,^, *" *^'" r""^'"- '"""• "-■ i-^ ■•^«lrmidal)Ie total. The Queensland Legislature has ]iassed two BWh intendeil to abate the mischief. One has reference to ihis gold-fadd grievance ; the other is nu'ant to meet the alleged general incimvenience of a (h;lugo of strangers, without any nu';;nsof sulisistence, overspreading the country and inflicting the burden of their suj.port on the well-to-do Anglo- Saxon population. B}' the one a sum is imposed of £ lU per head, by way. iis it wen;, of caution money, on every Chineso irmiigrant on hi.s entrance into Queensland territory : by the other the price for tho Chineso of a licence to dig gold is raised from ten shillings a year to t' 00 pounds. Tho Secretary for the Colonies, our readers are in- formed in a letter we publish this morning, has given his approval to the former Bill, but has declined to advise Her Majesty to assent to the latter. We irust ilili partial compli'.iaco with the wishes of tho Colony will allay the stor^ of discontent which had arisen as our New ILANl). ,f sliiill U'. curious i)\v. iiml till! Colony |iro(i'i'iliut;s (m our [i\ troubk'i, thero is ('oloiiit's in wholly :lori;i iiinl in Nuw lulance ; though wo J J^TilVU (loul)t iis to \t recently returnetl island certiiinly ihics h wliiih till.' yellow tli:it in Kcvenil ways They perform work I'lits. not so wel' H8 yrowinj^ vegetuhles, extremely viiluiible. as those whom they (lynient. They work, L'ir own aceouut, iuid ■ else. They have in- peiially the Queens- :y have pretty nearly own provisions with ,„ tl ? ireasuren of the na. The aunmnl of it is true, not large. sold is a secoii(hii\ considera- tion to the workman, and so far thi! men in the cotton trade have heeii shiltered from Ihe pressure of the tiiiU' liy tlii! indoiiiitalile emigy with which the mannfacturcrs hfive endeavoured to hold their ground. ]{nt there is every reason to fear that .a large poilinii of the cotton traeen carried on with an inlinitesim.ally Miiall margin of jiroflt. Sik a stat(! i>f things cannot continue in- dellnilely. If a market cam; it li(! found for l\iv. goods produced at the 1 le'ciit cost of production, the cost of production must lie re- duced, (.r till! (piantity of goods jiroduced must he limited. In either ca.'o the workman must siilfer, and it is a satisfactory sign of tho lietter knowledge now [ircvailing among the work-peo])lo that this fact is generally rccog:ii/ed. The ilis]Hito lietweeii lliein and the masters at Bolton is not as to the amount they should receive in weekly earn- ings so much .-IS in regard to the m.'inner in which the amount shall he calculated: hut the different w;iys of aiiivini; al the j.ro]!! sed lediie- iiiiii of wages arc of great moiiieiit to the cajiitalisl. I; is admitted thai wages musi he reduced ; that the cajiitalists can- no(, he expected l.o go on spending money without oljtaiiiing any return. Accordingly, the masters pidjioie a reduction (if ."i jer cent, in wages. The men contend that the origin of ilu! iroiilile is over- production ; that the true I'enieily for over-])rodnctiiiii is reducing tho rate of production ; and this end they would altaiii, not hy waiting foi' a certain qnantity of cajiital to find its way out of the trade as a conse(jucnce of the present reduced prices, hut liy working the mills at 11 Ill Till! IN'DirsTUIAI. I'oI.lcY W V.S(i\.\S\h li;ill' lime, I'lic iintni'iliiitu Hiu'rilii;o of w;ii,'im tn llifiii i-i j,Mfiiti'r, Imt llii'V wtiiilil liavo till' iiiont tinn' iil lliiii' ii a lalxti aHHiiiii|itit>it a.s to tlin fiiii(ti tliu trailc, iiiiil ii- can only l«' ri'iiu'- ilii'd liy fi'iliiciiii,' Hit' I'apital I'liiploycd tt> it« natural aintmiit. Hut tliin a I'tiiitiiiiiaiifo nl' ^'lllall jirtilits is iiu'vitahly dniiif,'. 'I'd rcdiico arli- (k'ially till! (jiiantity nl' ;,'(if tiic niiiniil'acluri'f is cxpi'iult'd not nici'ily in the wa<,'t'ii which woulil lie I'ctlncod liy the halt' time system, Init in salaries tt) jieopli) will) are not paitl hy lime ami in rent, 'I'liere ii, ion. tho necessary allowance I'or the elVeit of time on his machinery ami imilil- in>,'s, 'I'lic interest on his money investi'il in plan!, aiul in stocks td' raw material must he iirovitleii for. lie asks now for a reiliu'.ioii id' expenses in re^aril to waf,'es paid lo wi'ikmeii, tiia! in this way lie may havi! a idianre of making' his accounts lialaiice on tiie whole niimlpei' id' heads id' t'\pelldil live. 'I'lli' workmen |iropose to reihlee still lilnre the sum jiaid for waf,'is, and lo rethice in |iroportion the i|uanlily td' l;ooc1s liiini'd out ; hut this woiiltl not alVecl in any apiu'ecialde .vay the otiier items of current expunditiiru. T lie salaries roducfd for a given amount of capital emiiloycd under these he.uls that the capitalist must, in the first |il:ice. tlt'iieinl for ohiainini? some rewanl of his entcr- ])ri.'-e. 'I'liiis he is askeil to forego Ins main ciiaiico id' succes'^, the rapid ])roiluctii)ii of gcK)ds from a given capital, without any t. Ari'KN'DIX. 11 liciii i-i trfciitiT, liiit ;iii'l tlii^ advimtiiK't' I' I'uitnll ),'ii(iiln sllllll lining', iIiiiiikIi ]>I:iiis- 1 a lalHO !iHsuiii|itit>ii ic ililliiMiltii'S (if till) i|ily mcaiiM tlial too H oaii (iiily 1«' riiiif- tural aiiKiiiiit. Hut iiii;,'. 'I'ovi'iliii'o arti- acliially cni^at,'!'!! in liliarily tr Lfdoils [i|i|jrt'i:ialilc! way tliu (if fleiks, the runt !i on thi^ iiriiiciplu of liicfil for a t,'ivcii i that tlio cajiitalist ' rr ward of his cntur- illU'O of Slll'CfS:, tlu' •ithout any suc-iirity and the workmen rkia'opli' foi'i^'et that ■ till! Dutch iilanter, lical ci'ononiy as an .M'lito ilL'striK'lioii by to what till' nianu- c idlo half thu time ]>nt ill tho planter's lojioiy of the jireeious lu world. The cotton lannfacturing indiis- (Jcnnany. Redneimj es no I'liarant'e that We .->h;i!l find a Iohs (|nantity of cutton i,'oodi on sale in (lie in:irkut;-t of Miiiia or the .MedileriMiie:iii. 'I'heonly dilVeiviiee will lie that the Lan- cashire ea|(itahst who ha-i so miu'li ea|ii(al invested will Ihj lialile to niiiili larj,'er lAjuiiviM in |pro|iurtioii to tlu' i(iiaiitily of ^ is lie offers for sale from the fact that half the workin;,' time of ins |)laiit is lost to him ; and he will eon e |iieiiily he. ill re-peet t) profits, at a still greater disadvaiitai;c than he is at jiieseiit in eom|iarisoii with his foreiifii lival. Tlu .^e ari' ennsiderations whii h we hope the workmen will yet lie iihle to ^'rasp for themselves. 'J'hcy will, at least, .see that their expe- dient is no relief to the jiressiire of which the caiiilalivt complains, We can (piite synipal hi/e with the desire of the men In secure a per- immeiiL rate of wa^'es, I'ermanency in the rate of pay, when it can I e .-eciired. |.roinotes order and economy; hiit the men now seek to idlaiii this liy iPiittinj,' their li at a certain fixed \aliie. and they Would rather snhinit to heavier i ediate privation than fore^^'o tho rale of wa},'es per hour they now eiijoy. The |iro|iosal they made on Saturday to the masters to fix the rate for the ne.\t two .years indicates clearly enoii^;h this purpose of making' sure that their time shall j.ro- dnce a certain fi.xcd ineomi : Imt the project is contrary to thu very IMiiiciple of waives from which they have tlienisclves derived most advaiitat,'e in past years, Ff wa,i,'es could liavi^ hceii ii.xed irrcsjiective of tie state of trade, the workmen would never have <;on(i on olitaiiiinj,' hi-her and Iru'her waLjes diirini,' the whole of the last decado up to If^i.i. and an attempt to set up an artilicial standard of wa^jes is ])ar- ticiilarly nnwit-e at a time when we may liopi^ an advance in trade is Hot distant. The real w;iy for the workman to secure the j,'ood resulta ol a re','iilar income to meet his wants is c.iiefnlly to adjust his outlay to ,1 normal level, when he would he eiialiled to put asiilu f.vtnv wagesi lor less iirospei'oiis times. 'J'o jiropo.ve that his liihonr should he ahvjiys reinmieraled at so mneli an hour, inespeclive of the state of trade is to shut himself out from one of his "greatest advantaf{es— his riyiit to share iiliimately in the ]irotits which reward ])rodiicLion. Tlie st.ite (d' India and 1-I";>- > several ,.lae.>s. or is nKiintainin^ an inelVeetual stru.-le against he : Jhieh have been sent to .leal with it. ^.^^^'^^^^^^ not let been fullv restored, but the bloekade. at every po.n but one has been already broken, and it is not ^''-'y ^"^^ [^^ ^^f 7"^:; anvwherc bo prolonged. The only ser.ous .ntelhgence s Lu.eruo County, and there, it wovdd seem, the rioters h.ue be, ^a iinal dfort, wlueh has proved too stron, forthe merely lc.a^ owers of resistance. Rut we hear, on the other hand, tha t United States Regular troops are en their w.,- to the seene and U . can be m. doubt of the restdts tl>at wdl lollow speeddx on the : rival. Theehief work which now rentains to be '"- '" »-\ the latelv disturbed districts ts that of met.u, out punishment o t^ o captured rioters. The numbers of these are, it appe.vrs, too « n. the penalty to be proportioned to the olfenee, and r^"^^.';^'^'^; . ";, ^ moderate mprisonment must be made the general hm.t wiUnn whi h r A erica, sense of justice must content itself. ^Ve will hope, in the l;;,:^: interests of order, that it may be found i.,ssil e to make^.mie distinction between the ringleaders and the rank and hie, and that a Lies of murderous outrages and high-handed destruction oi propel t, may n,.t be permitted to pass virtually nnpumshed. ] ach frcsl batch of news wo have been receiving has brought out „.„,.e and more clearly the real character of the l^to distmWcK There has bee.i a labour -lispute. and a good deal more beside . The nets .Inch have b,.oke,i out at various points of ^^y'^^'^y^^"^ „.„,v ca,.es had little enough to d.. with the ques ion of the .,,ge« ..,,aihvav servants. There had been a g-^t outbui.t of violen. , for which the discontent of certain railway hands has been the . eca - ,i„„ ,,„t has in no sense been tiie cause. The foi^ces wluch lun e b^ at work on the surface have been thrown "P f™"-; ^7;; / ^f than that which is concerned with the ordinary contests of labou ad capital. Not live per cent, of the rioters on the reuusvlvania line LAND. Ai'l'KNlJlX. II tlio oiicrativcs of 1 lirmiicss, will, on .■it of ru;isuu aii'l jKi:. !, 1877.) iieiuly iit an ciul. •al)lc to tV- iiisur- (ilien. and ro^'ulai- hee'ii ilis|)i;isL'(l at nmiflo af^aiust the i-der, it is tvue. lius •ory puint but one. , tlic resistance will L-lli!,'encc is fiom rioteiM Uave lieon for the merely local lor hand, that the ,hc scene, anil there r speedily on their bo done in most of puuishnieut to the pears, too larye for icntencesof line and limit within which AVo will hope, in the foivi^i inmii<;rauts who have l.een pouriiij^ into the country from the Stales of the ()!,l AVnrld, the trained masses (,f disbaii,:,,! soldiers and camp foll,,wers who W(;re east about nj. and down the United .States at the termination of t';e yreat Civil War. and who have not since settled down to industrial employment of any kind— all these have l.eeii ri^ady at the lirM clear signal, and have struck instinctively into the .piarrel. 'I'liere i.^ no coinitry in which such forces as these do not exist, tlioii-h it is ii<>; often that they veiitlU'o opeidy to show tlienixdvcs. Civil ,L;oveinii;eni is based everywhere U))(,n their repress!.,!), and civil -'ov.i^iment is a: ill! end wla.rever it is jxissible for them to ri.-e to more thiin teinporarv Jiower. 'I'he peculiarity of American society is that ilie elements of dislurbanee are present to tin uiiusiially large e.Kteiit, an.l that the guardians of order are less prejiared than they are clse-vhere to tmswer an inunedi.ate siiMunons. ]5ut the issue, even so, is not le.-s eerlaiii in America than in the Old World, A short rallying time is all lliat is needed, and it s(M,n becomes apparent on which side the reality of m.-iterial force is t,, be found. A mob of a few thousands, however terrible it may be while its day lasts, is a \ery insignificant bodv by comparison with the many millions who will rise, if nece.-sary. to ])ii"t it down. "Whether it would not be i.rudent to strengthen the army and to rely less ui)on the reserve of power in the nation itself, is, lu.w- ever, a ipiestion which will certainly i,resent itself. That the riots will be put down is not doid.tful. That they should have been suffered to make head so l.,ng, and to proceed without immediate check to such extremities of violence, has depended on a miscalculation which will scarcely l.'car repeating. The jieaceful citizens of the l.nited States have a cl,-iiiu upon their Coverninent for something more than protection in the long run. A li.dlway Strike may occur at any time. ]5ut that a Strike should grow so .speedily int.. a riot, and that the rioters should have the upper hand for so many days, i.s proof sulficiont that the civil p.jwer is weaker th.an it ought to be', and the means at its immediate! c( nimaiid must Ik; strengthened if it is to ]ierform its elementary duties with anything like elfectiial sjieed. But aggravated a.s the Strike has been, and changed in character bv the added forces which have taken advantage of it, we may bear in mind that even in its original and simple foim it was fn.m first to last indefensible. If the Poles and Bohemians who were forem<,st in the riots at Chicago had their own singular notions of jiroperty, the gonuino American railway servants not less certainly had theiiV. It seems to have been a sort of axiom with ihem that the wa-'cB of 118 THE INDUSTIUAL POLICY OF ENGLAND. labour have iicouvonient iixcfl level. Ijelow whicli they ()iis;lit not to I..; sutr.T(Ml to descend. If the Hallway Conipauies could not alVonl to l>av what their hands were wishiuf,' for. they must find the means as they bust eould. The burden must be shifted ano ultl not alVonl to (iud tliu nii'.uis as Jii; inoiioy must IS JIlL'SCIltud liiul . Whi'tlu'i- fares wliat pi't'cise way • ((iicstions wliifh I not niiu'li con- ! (Icniaud was for > j,'ivu or tlian the hands ^vv.n•. ready ic fact wliic'li tl.oy roof to thuni that ainiHar cu