I 8 89 UNIVERSJTY OF CALIFORNIA 'S ANGELES TRADE UNIONISM. TRADE UNIOMSM: WITH REMARKS ON THE REPORT OF THE COMMISSIONERS ON TEADES' UNIONS. JAMES) STIRLIXG. REPRINTED FROM THE SECOND EDITION, ISC.O. GLASGOW: JAMES MACLEHOSE & SONS, Gl ST. VINCENT STllEE'J", {Jubltshcrs anb SjaoUscllcvs to the iluiU.rsiln. 1880. HD QGG -r ^ TRADE Uy 10 J ISM. Parliamext havin!; now undertaken to legislate in regard to Trades' Unions, it may be well to enquire, what has been the net result of the late investigations into that subject ; and w^hether any principle has been evolved, wdiich may serve as a o^uide for the Lesfislature in their deliberations. In this matter of Unionism, we fear the country will not find safety in the multitude of its Commis- sioners. On the contrary, their Report, with its various *' dissents," " statements," " observations," and what not, is only too fiiithful a reflex of the ^ perplexity of the public mind. The Commissioners 1^ have laboured, with admirable assiduity, but without eft'ect, to set their egg on its end. No principle J is forthcoming, to guide Parliament, or the public. ^ The country asked for a clue to lead it out of a '.' labyrinth of perplexity : the Commissioners offer it a ravelled skein of weak compromises and con- tradictory suggestions. ^ The root of our perplexity is the want of clear ^ ideas, as to the true nature of our modern indus- H trial system. We forget that society is in a state of transition ; and that wo are but in the act uf 420793 passing- from serfdom to freedom. A benumbing feudalism has hardly yet passed away, leaving the labourer free to bargain for the hire of his labour; and our trade-disputes are the natural first-fruits of this new-found liberty of contract. It is scarce an hundred years, since the colliers and salters of Scot- land were sold with the land on which they worked: what wonder, then, that the freeman of yesterday should not yet have learned to use his freedom wisely ? In a state of slavery — even under the modi- fied form of serfdom, — the superior class imposes its own terms on the inferior : the relation between master and servant is then purely one offeree. The labourer must simply do the bidding of him who needs his labour. But in a state of industrial free- dom, the relation between the labourer and his em- ployer becomes one of contract. Each individual is left free to make his own barsfain, and to "hio-ale in the market," as may seem good in his eyes. Yet freedom is not anarchy ; the will of the individual is regulated by universal laws. God does not leave society to be torn asunder by the capricious violence of contending interests. On the contrary, self-interest is subordinated to the public good ; and by the natural antagonism of individual desires the rightful interests of all are harmonized. Things base in themselves are turned to hio^hest uses. The competition of avaricious men is made to check their avarice. The power of the strong becomes a shield to the weak ; and the wealth of the rich is made to minister to the needs of the poor. The humble labourer finds his best protection, and his richest reward, in that very struo;-lf-assertion. 8 To be secure, therefore, the labourer has only to put his trust in nature. His interest would be amply protected, by the natural equipoise of individ- ual desires. But ordinary minds have little faith in the efficacy of impalpable agencies ; and the labourer yields, not unnaturally, to the fallacy, that he will be better able to hold his own with his employer, by abandoning the principle of individual bargaining, and trusting instead to the power of association. And so, to escape an imaginary risk, he rushes into a real danger. Distrusting the natural protection of competition, he seeks safety in an artificial system of combination. But competition, if suspended on the one side, may no less be suspended on the other. Combination of labourers may be met by combina- tion of employers. Individualism on all sides may disappear. The two classes may thus stand face to face in organized hostility; and the labourer may find himself subjected to the reality of that power of oppression, of which he now dreads the shadow. As to the right of combination, there is no longer any question. Be it v/ise or be it unwise, no one now disputes its rightfulness. Freedom of contract is now the recosfnized rio-ht of the labourer. He is free to bargain as he likes. He may bargain singly, or he may bargain with his fellow-labourers in a body. The only limit to his right is the corresponding right in all others. His liberty of contract only stops short of the liberty to oppress. Nowhere has the just principle of combination been laid down more clearly, or more concisely, than by Lord Stanley, speaking to the working men of Glas- gow: "That is, I think, the broad and plain rule to lay down — freedom to every man to use it as lie will, provided, in so doing, he does not interfere with the equal freedom of his neighbour." But a freedom thus limited is not the freedom demanded by the unionist. The object of his policy is to restrict competition in his own favour ; an object only to be achieved by the coercion of others. Unionism is the Protectionism of labour. In spirit, it is a return to the antiquated sj'stem of guilds ; certain self-constituted bodies, in each trade, claiming a more or less complete monopoly of labour. Trades' unionism is the reversal of our free -trade policy. It would impose on labour, restrictions such as a bar- barous age imposed on trade, but which a wiser policy has for ever banished from these realms. The end of the unionist being to force from his employer better terms, than the natural play of supply and demand would afford, he has recourse to artificial means to control the labour-market. By an organization more or less complete of the work- men enof^wed in each trade, he strives to limit the supply of labour, and so to force higher terms from those who seek to employ it. But in thus restrict- ing the supply of labour for his own ends, the unionist does a double wrong: he wrongs the employer, from Avhom he forcibly withholds the natural supply of labour; and he no less M-rongs his fellow-labourer, whom he hinders in the free disposal of his services. One of the most usual and a})})r()^'cd modes of restricting labour is, by limiting the number of apprentices, or learners, admitted into a trade. Those who have been bred to a trade, claim — in the 10 true guild spirit — a vested interest ia its emolu- ments, and a consequent right to restrict the numbers of those who shall be admitted into it. Sometimes we find this pretension avowed with a cynical plainness of speech, which would be surprising, did we not know how monopoly tends to blunt our moral perceptions. " The limitation of apprentices," says one, " is simply because we consider that as working men who have been brought up in tlie trade and devoted a number of years to learn it . . . we have a right in a certain measure to limit the supply in accordance with what the demand may be."" The " demand," of course, to which the supply, in this case, is to be accommodated, is not that of a free labour-market, but that which will best suit the con- venience of the unionist artisan. From another workman we have the following naive statement of his notion of the rio-ht of restriction : " The wav in which we look at this apprentice question is simply this — that we have served our time to a business, and we wish to get a respectable living by il."t No doubt, a most praiseworthy wish ; if only it be not forgotten, that there are other people in the world, who also wish to get a *' respectable living." Equally indefensible are the restrictions, which unions place on the kind of labour to be em- ployed. Thus, women are excluded from certain employments, where their services are desired, be- cause they would interfere with the interests of the men. " A union of warpers in Manchester," says the Report, | " refused to allow the wife and sisters * Report of Commissiouers. Q. 18,719. t Ibid. Q. 19,94!). J Report, p. 16. 11 of one of their members to warp ; ' It was against their rules,' they said, ' to allow women to warp, for if women were introduced into their market, the wages of the men would be reduced.' " ^'' So boys are frequently excluded from doing work which the unions think " ought to be done by men." This has given rise to many disputes, more especially in the engineering trade, where many self- acting machines have been invented, which require neither skill nor strength for their supervision. But the skilled artisan asserts a right to the superintend- ence of machinery which has displaced his handiwork. Hence the secretary of the Amalgamated Engineers states that during the last ten years, one of the principal causes of dispute with their employers has been " the large number of boys employed." t Another cruel restriction is the exclusion of un- skilled labourers from work, which has been appro- priated by those who call themselves skilled artisans. A man of ability, though not regularly bred to a trade, may be perfectly able to do the work i-equired; and in such a case the only rational test of fitness is the desire of an employer to employ him. But in many trades, the workman not regularly bred to it is prohibited from working at it, however willing and capable he may be, and however anxious the master may be to employ him. This exclusion from skilled employment is the more grievous, that it practically prohil)its the unskilled labourer from raising himself into a higher position ; and thus establishes a monopoly in favour of a minority, to the detriment of the great body of the working class. * Report of Manchester ExatiiiDer:^, ji. 21. f Q. 841. 12 A yet more outrageous method of restriction is thus noticed in the Commissioners' Report. "' " Sometimes the monopoly of the work of a district lias l)een attempted. A society of brick makers in Manchester, as stated in the Report of the Examiners into that district, claim an extent of four miles round Manchester in every direction, an area of 120 square miles, as their peculiar district, within the limits of which they permit no bricks to be made, except by Manchester union men, nor any bricks to be used except tliose made within the district." And this monstrous infringement of the liberty of the subject, enforced by systematic " outrage and wrong," is perpetrated in Manchester, the heart of English industrial civilization ! The same monopolizing spirit lies at the root of all those union rules, which aim at limitinof the productive power of labour, and at hindering the free use of machinery and improved methods of production. All progress is based on the increased efficiency and economy of human labour. To reverse this process, and strive to lessen the efficiency of labour, and hinder the economy of it, is to do a grievous wrong and injury to mankind. Yet this the unionist attempts to do. He labours to limit the productive- ness of his own, and his fellows' labour, that more men may be needed to do a given quantity of work. Hence the union rales against piecework, overtime, "chasing," and so forth; all tending to lessen the work done, and create the need for more workers. Thus wilfully to abridge one's productive power, is an oflence against God and man ; but a heavy pun- * P. 16. 13 ishment falls on the unjust workman. An increase of workers is an increased force of competition ; and the inevitable result is a diminished waoe. Nothing, indeed, proves better the narrow spirit of Unionism, and its disregard of the interests of the true workman, than its aversion to piecework and contract-work. Piecework, or payment by results, wherever it can be applied, is the fairest mode of remunerating labour ; and it is best for the best worker. It admits the hired workman to a participa- tion in the results of production, according to what is produced ; and so removes the objection to hired labour, that the labourer has no interest in the result of his exertions. According as he works, so he is paid : and thus while stimulating all to the utmost exercise of their energies, the system of piecework, alone, yields to the superior workman the remunera- tion which is his due. As to the pretence, that union rules prohibit piecework, in the interests of the employer and the public, in order to secure them against inferior work- manship, the plea is as absurd as it is dishonest. " The plan of doing piecework," says Mr. Robinson of the Atlas Ironworks, ^' in an establishment like ours, and in Whitworth's and Beyer's, has led to such a reputation for our work, that we can get a higher price than other firms." But be it better or be it worse, that is a question which each man has a right to decide for himself, and on which no trades' union has a right to thrust a decision upon him. Other union rules oppose the use of niacliinery and improved methods of production, with the di- rect purpose of lessening the efficiency, or increasing 14 the cost of labour. TJiiis, objection is taken to the use of machines for dressing stones and for making bricks ; and even the use of machine-dressed stones or machine-made bricks ]ias Ijecn prohibited. The difference of cost to the pubhc, from this prohibition, was calcukited by the contractor, on one occasion, at no less than 35 per cent. Numberless other regula- tions appear in the Commissioners' Report, all ani- mated with the same restrictive spirit, and some of even a mere grotesque barbarism. Thus, rules exist in certain unions, that stones shall not be dressed in the quarry where they are found, but shall be carried rougli to the place where they are to be used. Other rules prohibit masons from laying bricks, and bricklayers from laying stones ; while others ordain that no labourer shall wheel bricks in a wheelbarrow, and that the hodman shall not carry more than eight bricks at a time in his hod. Such regulations, how- ever paltr}^ and ridiculous they may seem, are most vexatious in their practical eifect, and demonstrate even more clearly than more important matters, the restrictive spirit in which Unionism is conceived. That such restrictions as we have pointed out on the freedom, both of employers and of work- men, cannot be carried out without more or less of coercion, is manifest from the nature of thino-s. Force — open or latent — is of the essence of Union- ism. But the manner of applying force varies with the temper of the times, and the character of insti- tutions. While society was ruder than it now is, violence was open and systematic ; and among coarse populations similar violence still exists, though less openly practised. But Unionism has participated in 15 the softened manners of the age. The bearing of unions, especially of those of the higher class, is less rude ; and more deference is paid to public opinion. All needless display of power is carefully eschewed ; and the purposes of the union are carried out with a miiiimuin of coercion. Brute force is carefully kept in the background, and only its shadow is allowed to fall on the minds of men. Still, coercion there is and must be, if Union- ism is to achieve its ends. The strike — actual or potential^ — is the motive power of unionist machinery. In all productive industry, the capitalist can only make his capital available by the help of labour ; and this labour he can only obtain — in a free country — by the voluntary consent of the labourer. On this necessity the unionist builds his system. He waits till his employer has laid out capital on buildings and machinery ; till he has entered into engagements and undertaken liabilities ; and till his productive power is in full operation : then, hy virtue of his organization, he suddenly withdraws the labour em- ployed, stops the work, and on pain of certain loss and possible ruin, urges his demands. Or he may stop short of an actual suspension of work ; a threat may suffice : and suiooth-spoken secretaries may take credit to their unions for discouraging strikes, while actually ruling a trade by the dread of them. In carrying out the system of strikes, the union leaders show great strategic skill. Avoiding a general attack upon a powerful body of employers, they adopt the Napoleonic tactics of concentrating their force upon isolated points ; attacking one work after another, and beating the masters in detail. In 16 this way, if not met by energetic counter-organiza- tion, they are enal)led not only to control the trade and command their own tenns, but absolutely to make the masters contribute the funds for their own subjugation. While one work is stopped, in a trade or district, the others are temporarily permitted to go on, in order to provide the necessary funds for supporting the strike. When tlieir turn comes, they are subjected to a like process of coercion. An important aid is furnished to the unions, in conducting strikes, by the provision made by English law for the support of able-bodied labourers when out of work. The unionist fiolits his battle with the Poor Law at his back. If the worst come to the worst, he can fall back on the parish for sup- port. No doubt, guardians may refuse relief to workmen who will not accept of proffered employ- ment ; but public opinion would hardly sanction a stern application of poor-law rules in the face of clamant distress, even though self-inflicted. More- over, the difficulty is easily evaded by change of residence ; and the subsidiary workers thrown in- vokmtarily out of employment, as so often happens by a strike of skilled artisans, cannot legally be denied relief. And so it may come to pass, that a laro'e number of hands on strike shall be thrown on the rates for support, and that the very employer, whose works have been closed by a strike, shall be heavily taxed for the support of the workmen who have stopped his business. But even with the Poor Law for an ally, unions would fail to achieve their end, without the help of more or less of coercion. Force, open or threat- ened, is a necessary condition of success. A mere voluntary cessation from labour will avail little, unless followed up by a forcible exclusion of other labourers, more needy or less exacting. This is clearly perceived by the leaders of Unionism, whose hope is fixed on some compulsory power, which will enable them to force into the organization, those who as yet are beyond the pale. Without this. Unionism must fail. A strike can only be efficient, when those who give up work can hinder others from taking the places they have abandoned. Unless the unionist can accomplish this, he accomplishes nothing : he simply sacrifices his bread in vain. Hence the practice of picketing ; a needful ad- junct of the strike. It is the ordinary policy of the unions, when a strike has been declared, to surround the workshop which has boon struck against, with guards technically called " pickets," whose business it is to hinder the approach of workers, willing to fill the places vacated by those on strike. This picketing they consider the neces- sary compliment of the strike. Without [)icketing, Mr. Applegarth, the intelligent secretary of the Amalgamated Joiners, admits that " the masters would be able to obtain the workmen they desire." * As to the means employed by pickets, these vary according to the need ; rising in energy from " moral suasion" up to violent outrage. If fair means fiil, foul means may chance to be resorted to. The mode of action will probably vary with the varying fortunes of the contest. Pickets, while successful, can afford to be good-natured ; but are apt to get *Q. 0744. B 18 savage, when they find themselves about to be worsted. So long as there is hope of victory, pickets may be satisfied to use persuasion and pots of beer ; but when cajolery fails and the strike is about to collapse, passion will too often get the better of prudence ; and the stolid knobstick who will not be convinced will be very apt to have his head broken. The due regulation of picket practice, indeed, is one of the nicest points of unionist management. The object of the directors of the strike is, effectively to shut out competition, and yet to keep within the limits of the law ; the unionist would fain avoid collision with the police ; and yet, he would fain, too, keep out black-sheep. The problem, therefore, is, how to coerce, without the outward seeming of co- ercion ; how to give the greatest possible hindrance to knobsticks, with the least possible technical " molestation ; " how to combine a maximum of com- pulsion with a minimum of law-breaking. But this problem has its difficulties. No doubt, union officials, with a prudent regard for the law, and having the fear of Baron Bramwell before their eyes, send forth their pickets with strict injunctions to keep Her Majesty's peace : but is it in human nature that the picket, hungry and angry, should always keep his temper with the knobstick, who will not listen to reason^ and whom he sees about to take the bread out of his mouth 1 We do not wonder, then, to learn from the Commissioners, that : " the evidence before us leaves no doubt on our minds that during the existence of a strike, workmen, desirous to accept work, are often subjected, through the agency of the pickets, to molestation, intimidation, 19 and other modes of undue influence, and in effect are prevented from obtaining employment." " The more systematic violence, revealed to an ap- palled community by the inquiries of the sub-com- missioners at Sheffield and Manchester, need not be dwelt upon. The first thrill of horror which thev caused, has been followed by the usual apathy of reaction ; and people are half inclined to look back on the whole thing as the phantom of an uneasy dream. But the ugly facts remain ; and it is to be regretted, that these systematic outrages hardly met from the unions with so hearty a condemnation as might have been wished ; and that partisans were oven found to palliate their atrocity. Altogether, the investigation was not thoroughly satisfactory. At Sheffield the unions were taken by surprise. But at Manchester they Avere better prepared; and witnesses absconded, and books missing or nmtilated, left a l)ainful impression on the public mind, that wo had not got to the bottom of this great iniquity. So much at least is certain, that the restrictionist policy of Unionism, and the coercive means by which it is carried out, tend 1)y their very nature to excite angry passions, which naturally lead to oppressive inter- ference, even when they do not vent themselves in open violence. Such are the objects of Unionism, and such the means by which it seeks to attain them : what then are its results ? and what Gfood has it done to the communit}^ to the working class in general, or to the unionist himself .' The fruits, we fear, are * Report, ]>. I'l. 20 such as might be expected from the radical unsound- ness of the system. No good can come of an arbi- trary interference with the rights of others ; and that root of bitterness empoisons the relations of the unionist, alike with his employer and his fellow- workman. We hear, indeed, much from the apologists of Unionism, of its high aspirations, and its generous concern for the common weal of the labourinof class, as contrasted with the vuls^ar selfish- ness of isolated competition. But in the practice of Unionism we can find no higher principle than the vulgarest self-interest, and a sheer disregard of the interests of all beyond its pale. Unionism cares only for the unionist; non-unionists, on the other hand, are regarded as an inferior type, unworthy of the privileges of high-caste artisans, or even of the equal rights of fellow-workers ; as hewers of wood and drawers of water, on whom a tax is to be levied for behoof of the exclusive oligarchs of the unions. This exclusiveness even derives support from the carelessness of the law itself, to provide efficiently for the security of the non-unionist. Practically, he is a Pariah, left to fight his own battle as he best may. True, we have little direct evidence of oppression from non-unionists themselves, in the Report of the Commissions. Nor was this to be expected. The poor knobstick, threatened, outraged, and driven from his trade, dares not complain : his is an inarticulate grief But we do hear of offers from men who have suffered wronor and outrao^e, " to come and sfive evidence, if they were enabled to emigrate after they had given it." '" The truth is the law, practically, * Q. .3006. 21 affords no efficient protection to the non-unionist workman ; for when he is wronged, evidence of the wrung is not forthcoming. He is intimidated ; and, as was shrewdly observed to the Commissioners : " if a man is intimidated from trying to get work, he will he still more intimidated from going to give evidence, ill relation to that intimidation." '"'' To the unionist himself, the results of Unionism are no less hurtful. Ample testimony was given to the Commissioners, of the change for the worse in the relations between employers and their workpeople, under the unionist disjiensation. A spirit of antag- onism, formerly unknown, has sprung up between them. The mutual respect and kindliness which once sweetened the intercourse between master and man — names now as obsolete as the feelings they embodied — have given place to nmtual susj^icion and hostility. The employer complains, that the workman seeks to establish an arbitrary control over his business : the workman resfards his emiilover as a tvrant, who would rob him of the fair remuneration of his labour. They no longer look upon each other as friendly co- operators in a joint enterprise, but rather as hostile disputants, snarling at each other like dogs over a bone. And so, too, the sense of reciprocal duties has been lost. The employer has no longer the same feeling, that he owes guidance and helpfulness to his work people : the unionist no longer recognizes the duty of faithful service to his employer. One cannot but sympathize with tlie sadness of ]Mr. Trollope, the eminent London builder, in bearing witness to the changed relations between masters * g. -Mil. 22 and men, within his own memory. Witli a simple pathos, he tells us of the friendly feelings that once suhsistcd between himself and his people ; and hov/ *' he used to boast," that his firm had men "who had been 30 or 40 years " in their service. " We had a respect for them, and they for us;"* and when a job was in a hurry, and they Avere asked to "drive along," they did so with a will. But, witli the growth of Unionism, all this has passed away ; and now when a man is asked reproachfully : " Come now, is this a fair day's work ? " he answers (if he have a remnant of the old conscience left) : " Well, sir, it is not; but I am not allowed to beat my mates." t Or, again, when remonstrating with a workman for crawling at a snail's pace to his work, he may be answered after this fashion : J " Sir, I am very sorry to say it, but we are not allowed to sweat ourselves if we are walking in your time." Need we wonder that a man of principle like Mr. Trollope, should often say : " I am so disgusted with the system, I should be glad to leave the business altogether ? " In the nature of things, the effect of Unionism on the character of the workman himself cannot but be hurtful. To take wages from one man and do the bidding of another, must needs lower a man in his own esteem. It cannot but degrade him, to feel that he is obtaining wages under a false pretence of service, and that, while calling himself the servant of his employer, he is in reality serving a society, organized for the purpose of controlling that em- ployer's authority and undermining his interests. * Q. 924. t Q. 2920. I Q. 2920. The workman cannot serve two masters ; and the master he elects to serve is not the one who pays him his wages, but the chief of a junto bent on opposing him. Again, the complete absorption of the workman in his union is fatal to all individuality of charac- ter. The unionist does not dare to think or act for himself : he is a mere puppet in the hands of the wire-pullers of his union. When he joins the union, he abdicates all autocratic power, and ceases to exist as an independent intelligence. U'he man is lost in the unionist. Regarding himself solely as a unit of his trade, the unionist abandons all claim to self-guidance, and tamely submits to the edicts of an irresponsible club, into whose hands he commits the care of his interests and the keeping of his conscience. In democratic times, like ours, the great ditticulty of the citizen is to preserve independence of thought and autocratic power of will. Sequacity is the bane of modern society. But Unionism intensifies this evil ; and the workman's trade conspires with his politics, to paralyze his noblest powers. Even in his capacity of workman, the union- ist suffers deeply from the system of his adoption. His trades' union does not teach him well his trade: it is a hindrance rather than a help to his becoming a master of his craft. It cramps, instead of develop- ing his powers ; and tends to make him an indolent and inefficient workman. Instead of rousing, in the young workman, a spirit of strenuous industry and faithful service, it encourages him to scamp his work and idle away his time. It is the aim of Unionism to restrict the produce of each man's labour ; from 24 a foolish notion of making work for more workers. The effect of this pohcy is to discourage emulation, and by repressing individual energy and skill, to reduce the mass of workmen in a trade to a dead- level of mediocrity. J a this way merit is repressed; and the superior man is sacrificed to the worthless. The ardent, energetic workman, who would fain push on, and gratify an honourable ambition by the assiduous exercise of his higher gifts, is snubbed and held back, to suit the convenience of his idle, good- for-nothing mate, who prefers to take life easily, and whose hiofhest outlook is to a life of beer-swillinof and blue Mondays. Nay, there are teachers of unionist philosophy, who think it becoming to sneer at aspir- ing workmen ; and who denounce all especial in- dustry, as little better than privately stealing from a common stock. In a natural state of thinofs, our industrial svs- tem affords the best possible practical education for the workino- class. The best of their order raise themselves by superior energy and thrift, to posi- tions of power ; and then these superior men, in the ordinary exercise of their calling, discipline and educate their fellow-workers. Not from any lofty motive of philanthropy, but simply in pursuit of his own interest, it is the chief endeavour of an employer to search out and promote merit among his people. The most essential condition of successful production is the mental training of those engaged in it. To succeed, the employer must develop the faculties, and form the habits, of his workpeople ; promoting to the higher posts in his establishment, those who distinguish themselves by capacity and character. 25 Thus our industrial system naturally becomes an educational system for the people. But Unionism sets its face against this elevating process. Its aim, oil the contrary, is to repress superiority in individuals, and reduce the mass to average infer- iority ; thus sacrificing the best interests of the com- munity to the necessities of a lazy communism. So a Nasmyth, by his genius and energy, raises himself to wealth and distinction, and with him- self raises a whole community. But a domineer- ing union dogs his steps, thwarts his efforts, and at last drives him in disgust from the trade ; to the great loss of the nation, and the especial loss of the engineering trade. Could Unionism attain its end of neutralizino- the elevatinof influence of a free industrial system, the noblest element of modern civiHzation would be lost; and mankind would sink back into the monotony of mediaeval caste. Fortu- nately for us, nature is stronger than any selfish confederacy; and the unions we ma}- hope, will fail to arrest the progress of the working- classes. In any large or generous sense, then, Union- ism fails to elevate the working classes. But does it even improve their material condition ? Does it, or can it, at lowest, raise their wages ? With all this cost, of wrong to others, and deterioration to himself, has the unionist, even in a money point of view, bettered his position ? The unionist himself has no doubt about it. But doul)t forms no element of unionist [)hilosophy ; and of what value is the opinion of a philosopher, who never doubts ? To us, indeed, it seems that much \ aluable time was wasted by the Commissioners in ascertaining the opinions 26 on scientific subjects of men devoid of scientific training-. Such opinions, however interestinc^ in a social point of view, as manifesting the leanings of certain classes and corporations, possess no scientific value. An uneducated bricklayer knows as little of the laws which reofulates his wasfes, as of the laws which regulate the laying of his bricks. It is an old and mischievous fallacy, that men must have some theoretic knowledge of matters with which they are practically conversant. To us it seems clear, that Unionism must needs fail ; that it cannot, in the nature of things, attain its object of controlling the market-price of labour. Two antagonist forces hold the industrial world in equilibrio. On the one hand, the principle of population regulates the supply of labour ; on the other, the principle of accumulation determines the demand for it. These forces act and react upon each other ; and the play of their antagonism — when left absolutely free — ultimately determines, at any given time and place, the just price to be paid by the em- ployer to the labourer, for the hire of his service. No human power can permanently raise the rate of wages, above the level determined by these natural causes. There is only a certain produce to be divided be- tween capitalist and labourer. If more be given to the labourer than nature awards, a smaller amount will remain for the capitalist ; the spirit of accumu- lation will be checked ; less will be devoted to j^ro- ductive purposes ; the wage-fund will dwindle, and the wage of the labourer will inevitably fall. For a time, indeed, a natural influence may be dammed back ; but only to act, ultimately, with accumulated 27 force. In the long run, God's laws will overwhelm all human obstructions. Should a union succeed — as, no doubt, for a time it may succeed — in shutting out competition, and so unnaturally raising wages and lowering profits, in some particular trade ; a twofold reaction tends to restore the natural equi- librium. An increased population M'ill add to the supply of labour, while a diminished wage-fund will lessen the demand for it. The joint action of these two principles will — sooner or later — overcome the l)ower of any arbitrary organization, and restore profits and wages to their natural level. This, too, must be borne in mind : that the move- ments of population are slower and more permanent than those of capital. Inequalities of capital are speedily redressed. With modern appliances of information and intercourse, the readjustment even of international capitals is the work of a few weeks or months. But a readjustment of population is a slow and painful process ; and an excess in the numbers of a people can only be remedied by the sufferings of a generation. This reasoning, however, is lost on the unionist. Nothing, indeed, in Unionism strikes one more than the extreme narrowness of its views, in contrast with the magnificence of its pretensions. A system which aspires to regulate the industry of a nation, omits all wide consideration of the laws which govern the movements of population and the economy of capital. The unionist regards capital and j)opula- tion — both elements of extreme varial)ility — as fixed quantities, to be manipulated at will by an interested confederacy. 28 Of the principle of population, indeed, and its resistless power, the unionist takes no note what- ever. He looks simply to the numbers engaged in his own trade ; and these he strives to restrict by his trade-regulations, carried out with more or less coercion as occasion requires. Of the dread power of population, which is silently overruling the des- tinies of his trade, his nation, and his kind, he takes no heed at all. With a fanatical faith in the all- sufficiency of his system, he pits his union against Providence; and the Mrs. Partington of Unionism unhesitatingly undertakes to sweep back an Atlantic force of population. No less narrow are the unionist's views regarding capital. Of all earthly things, capital is the most sensitive. Not only does it flee injustice, the very dread of wrong will banish it. But the unionist regards the capital in his trade as a fixed amount, permanently invested for his behoof; which no loss will diminish, and no ill-usage will drive away. In short, he looks upon his employer's capital, much as the wrecker looks upon a wreck, which, as it seems to him, a kind Providence casts upon his coast, for his especial behoof. Wages are regulated by natural laws. The will of masters and of men is alike po\verless in the matter. But the unionist, thouo-h not aiminsf at making industry more productive, hopes, by a subtle use of his organization, to wrench from the capitalist a larger share of their joint-production than nature awards. This polic}^ even if temporarily successful, must ultimately prove injurious to the labourer. As a rule, productive capital is accumulated out of 29 profits, not out of wages ; and, therefore, the greater the proportion of wages to profits, the small er'the tendency to national accumulation. Thus, if com- bination were for a time to raise wages, tlie growth of the wage-fund would be unnaturally retarded, while a fictitious stimulus would be given to popu- lation, by the momentary enrichment of the labour- inof class. A diminished demand for labour would coincide with an increased supply. The labourer's wage would be forced down to starvation-point ; and his last state would be worse than his first. But a forced increase of wages not only tends to limit accumulation ; it tends, no less, to drive away capital. Productive capital must pay, or it will cease to produce. It will not be bound down to unremun- erative employment. If you force your Samson to grind for you with(nit suitable reward, he will simph' cease to grind at all. The unionist, indeed, calculates that he has the capitalist in his power ; that fixed capital cannot be removed ; and that a change of business means practical ruin : and, no doubt, to a certain extent his calculation is correct. Yet even here there is a limit to coercion. The unionist may ruin his employer ; but he cannot force him to continue a ruinous trade. And then, ruin to the capitalist means hunger to the labourer. The heaviest penalty falls on the triumphant unionist. In beating his employer, he has ruined the man, who gave him bread. It is the old story of the clown and the goose with the golden eggs. The Hepoit of the Commissioners teems with evidence of this suicidal folly in various unions. Even a man of Nasmyth'a strength of mind yields to 30 the "terrible power" of Unionism; and is driven from his trade, "10 or 12 years sooner than he would have left it."* He feels that his business rests on a " volcano ; " and he hastens, at any sacrifice of pro- spective gain, to secure the fortune which his energy had created. His loss was great ; but a greater loss fell on his persecutors, the Amalgamated Engineers. The M'age-fund, destined for their support, was by so much diminished ; and the genius which directed it, w^as for ever lost to them, and to the world. So it has been with other industries. The North Staf- fordshire ironworkers, by their exorbitant demands, compelled more than one employer to " close their vv^orks;"f and drove a portion of their trade to Belgium, never, it may be, to return. In like manner, the extortionate folly of an union forced the Directors of the Mersey Iron and Steel Works, *' to come to the determination, that their works should close : " t thus recklessly depriving themselves of their daily bread. But perhaps the most notable instance of self- destructive Unionism, in these latter times, is the case of the iron shipbuilders of the Thames. Mr. Samuda has told us this sad tale of suicidal foll}^ " By degrees," he says, " the men have be- come the parties who have fixed the wages, and the masters have been ig^nored in the matter." In vain he warned his workmen, that they extorted unrea- sonable terms "at their peril." They persisted; and, within the last seven or eight years, enforced a rise of wages, amounting in all to 15 per cent., with this result ; that, with the exception of his own, '' every * Q. 19,-222. t Q. 10,522. I Q. 11,160. 31 single establishment that \vas in existence as an iron shipbuilding yard, on the Thames, when I begun to build in 1851, and several that have started since, has either broken down, failed, or given up because they could not make money."'" Mr. Samuda himself now employs some 200 hands ; formerly from 1 200 to 2000. Meanwhile on the Clyde, where the masters had succeeded in resisting the demands of the unions, the iron shipbuilding trade has flourished exceed- ingly. The daily wage of a shipbuilder on the Thames was 7.s\ ; on the Clyde it is 4s. (jcl. But whereas the former was a mere empty figure, the latter is a real wage, regularly earned, and secured by a thriving trade. Thus for the Clyde workman, a seeming defeat has proved a real gain ; while the success of the Thames unionist has been his ruin. All along the Clyde there is the din and bustle of a prosperous industry; while on the banks of the Thames we find only silent workshops and " East end distress." The same cause threatens to drive tir.de abroad ; the factitious cost of Ens^lish labour tendino- to (Ave an undue advantage to the foreign capitalist. Here, again, the practical experience of Mr. Samuda is of great weight : — " My greatest customers," t he says, " used to be, ten years ago, even five years ago, France, Russia, Prussia, Egypt and Turkey. I have had as much as £700,000 worth of orders for tliose dift'erent governments in my yard at one time, but at the present moment France is competing with iiie, and taking away my Prussian orders. She is also taking av/ay my Egyptian orders ; and at this *(^ 10,747. 1 ^>. lC,7o7. 32 moment there is in France no less than .£380,000 of* woik going on for two of those very governments, Avho have been my own customers for fifteen years." In all ironwork, and more especially in all iron ship- buiklino:, our natural advantaofes should make our supremacy assured : yet in this very trade, as Mr. Samuda tells us, our future fate is " trembling in the balance." As he remarks, with biting sim- plicity : "if they raise the price of the article I have to produce more than it is worth in the market of the world, I cannot go on producing." '" Again, in the manufacture of steam engines, locomotives, and machinery in general, England, it was thought, could defy the world. And so she could ; but so she can no longer. Mr. Robinson, the experienced engineer of the Atlas Works, at Man- chester, says : " We have now competitors in almost every market in Europe, where before we had the market in our hands." t With regard to locomotives, the manufacture of which is eminently suited to our industrial capacities, and the demand for which has immensely increased with the development of the railway system all over the world, Mr. Robinson says : " Formerly, England supplied certain kinds of machinery; for instance, locomotives to France, Germany, Austria, Holland, Russia, Italy, Spain, and other European countries ; whilst now France, Germany, and Austria, not only supply their own wants, but have become important competitors with us in Russia, Spain, Italy, Egypt, and even in India and in England herself." On the same subject^ Mr. Beyer, of the Gorton Foundry, at Manchester, says : * Q. 16,759. t Q. 19,040. Tenth Eeport, p. 56. 33 " When I came to Manchester, and for years after, we supphed the Continent with locomotives. Now they do not want us, and we can scarcely compete with them." "" The cause to which Mr. Robinson attributes the increased cost of production, is less an increase of wages than a diminished productiveness of work, " I do not believe," he says, " that these unions have done much on the whole to advance the rate of wages, in their respective trades, but I have a very strong conviction that their tendency is to diminish the amount of work produced for a given sum of wages, and so to increase materially the cost of the production of labour." Similar danger seems to threaten the glass trade, in which the restriction of labour by the unions is peculiarly oppresssive. Dr. Lloyd, of Birminofham, stated to the Commissioners, that : " Foreign competition is increasing daily almost. The quality is improving, and the cost of production and labour is cfreater in Ensrland than it is abroad." And so it is with hosiery, printing, and other trades which it were tedious to enumerate ; to the great detriment of the community at large, but to the especial loss of the labouring population to whicli they give employment. No doubt, other causes, besides the exactions of Unionism, may have contri- buted to foster foreign competition. But so much more reason is there, for wise moderation on the part of British workmen. Whatever tends, like reckless Unionism, to hamper the operation of the capitalist, and raise the cost of his production, endangers his industry, and by driving his capital abroad, lessens^ ♦Q. 18,933. c 34 pro tanto, the home labourer's means of subsist- ence. As to the Board of Trade statistics, on which so much stress has been laid by the apologists of Unionism, they prove only that certain staple in- dustries have not yet been extinguished in this country ; not by any means, that they have received their due development. Since the establishment of free-trade, our exports in general have been trebled. In the natural course of things, the manufacture of steam-engines, locomotives, and machinery of all kinds, railroad iron, iron ships, and like articles, should have received, of late years, an enormous development. It is sorry comfort, then, for the British capitalist, and still sorrier for the British labourer, to be told that these industries still exist, though their future continuance, and still more their future expansion, are seriously threat- ened. The East- end shipbuilder, musing, dinner- less, among the ruins of the Isle of Dogs, will hardly be consoled by learning from the Report of the Commissioners that the " total of iron and steel exported " has risen, " from the value of ten millions in 1861 to that of fifteen millions in 1867."'" The pressing question for him is, where he is to get his dinner. Next, let us count the cost of Unionism. What does the unionist pay, in hard cash, for the privilege of inflicting so much of injury on himself and others I Take, for instance, an amalgamated engineer, earning from 305. to 365. a week, and paying a contribution of \s. a week to his union. Here * Eeport, p. 125. 35 the direct cost of Unionism to such a workman, independently of entrance fees, occasional levies and public-house expenses, is a self-imposed income-tax, averaging about 8cZ. in the pound. We know how grudgingly a tax of this extent was paid, even by our richer classes, for objects of the highest national importance ; and we cannot but think that, if the w^eiofht of the union income-tax were not iudiciouslv veiled under periodic payments, we should have more murmuring at its amount. Were a slump sum of £2 12s. called for, once a year, by the tax-gatherer, even an enthusiastic amalgamated engineer would look more closely into his " value received." But the unionist pays also indirectly for his whistle. He is a consumer no less than a producer; and, in that capacity, must bear his share of the burden of increased cost of production. Unionism, like protectionism, is a system of taxation " all round " ; a mulcting of everybody for everybody else. It is needless, at this time of day, to follow out, in detail, such a system of mutual spoliation. It is enough, as an example, to point to the increased cost of labourers' cottages mentioned by Mr. E. Ashworth, than whom no one is more deserving of being listened to. After alluding to the opposition in Manchester to machine-made bricks, he continues: " Cheaper cottages would be a great blessing to the working-classes ; and, with machine-made bricks and free-trade in labour, I am of opinion they might be made much cheaper than at present. A cottage now lets at 3s. per week : if built at present prices, it would require 4s. per week rent ; and this would 36 be a weekly tax of Is. per week on the occupier." "'' This weekly shilling, added to his contribution of is. per week to the union, would make the weekly cost of Unionism, on these two items alone, to an amal- gamated carpenter or engineer, 2^', per week, or £5 As. a year ; equivalent to an income-tax of about Is. Ad. in the pound. Thus, Unionism is in this dilemma, that whether it fails or whether it succeeds in its immediate object, its ultimate tendency is hurtful to the labourer. If it fail, at once, in forcing higher terms on the employers of labour, the whole cost of the organization, in money and exertion, is simply thrown away. An amount is lost that, more wisely invested, might have secured to the workmen a provision for sickness or old age. If, on the contrary, it should attain, for a time, a seeming- success, the ultimate result is even worse. Nature's violated laws vindicate their authority by a sure reaction. The presumptuous mortal, who dares to set his selfish will against divine ordinances, brings on his head inevitable retribution ; his momentary prosperity disappears, and he pays, in prolonged suffering, the penalty of his suicidal success. We say, then, that Unionism does not, and can- not, permanently and generally raise wages, t But the unionist insists that it has raised wages; and, in proof, he points to the fact, that, of late years, unions have flourished and wages have risen. He is here, however, the dupe of a natural, but transparent illusion. The establishment, in this country, of the policy of Free-trade, some quarter of a century ago, * Q. 4345. + See Note, page 56. 37 added greatly to the productiveness of the national industry. More was produced, to be divided between capitalists and labourers. Wages rose, and capital was rapidly accumulated. This again caused a renewed demand for labour, and a rise in wages, amounting in all to from 25 to 50 per cent. Now this rise coincided — especially during the last ten or fifteen years — with a marked development of the system of Unionism ; and the unionist, naturally but erroneously, attributes the rise in his wages to the influence of the system which he had organized to effect it. His error is the common one of confound- ing simple sequence with cause and effect. Hardly even that : for it is rather probable, that the growth of Unionism was itself due to the excitement, caused by the prosperity of the working-classes, under the influence of our free-trade lesfislation. O Moreover, the rise of wages throughout the country, during the last twenty-five years, has nowise been confined to the organized trades. It has been universal ; being shared, in at least an equal propor- tion, with those classes among whom organization is not only unknown, but impossible. Thus the rise in the wages of agricultural labourers, which Lord Overstone recently estimated at 25 per cent, during the last twenty years, could only be the result of a natural demand for labour, not of any organized effort. The rural labourer is too isolated, and too stupid, to combine. So the increased pay of our soldiers has manifestly been caused by natural, not artificial, means. The strays aud waifs who recruit our armies, have no power of previous organization. They are not even known to each other ; still less 420792 38 do they form a compact body. Yet these isolated and thoughtless creatures feel, simultaneously, the electric thrill of demand that passes through the labouring body ; and their heightened terms tell as imperatively on the recruiting sergeant, as the demands on the capitalist of the most dictatorial union. So, again, with our domestic servants. A class, seemingly, more helpless, or less capable of combined effort, cannot be conceived. Yet the wages of this class have risen, parri passu, with those of the best organized trades; and the most friendless little maid -of-all- work has had her interests cared for, and her wages raised, as surely as those of the haughti- est member of the Amalgamated Engineers. Unionism can neither enrich, nor ennoble, the working-class. The only effectual means of bettering their condition is that course of self-improvement, enjoined alike by morality and common-sense. They must practise industry, thrift, and self-denial. They must work hard and look ahead, refraining from marriage, till they can support and educate a family; and striving resolutely towards a higher ideal of existence. When, by this means, they have succeeded in limiting their numbers, and raising their standard of life, they will be able to command better terms for their labour. " Effort and sacrifice " are the elements of all genuine pros- perity, as — according to Kant — of all real virtue. The working-man can only improve his circumstances, by elevating his character. Any scheme he may devise, or that false friends may suggest to him, for bettering himself by robbing others, is as vain as it is dishonest. 39 And now let us ask : What is the probable future of Unionism ? Is it to go on developing its power, till it gets to rule the industry of the nation, and of the world ? Or will its influence more pro- bably be checked, by an inevitable reaction ? Par- tisans, elated by the rapid development of the system during the last few years, predict for it the former fate : to our cooler judgment, the latter seems more probable. But as yet we know too little of the nature of Unionism, to forecast, with confidence, its future fortunes: we can only reason on general prin- ciples. The whole system is but a thing of yester- day. The Union of Amalgamated Engineers has not existed for twenty years, the other chief unions barely for ten. Such a duration is a mere point in a nation's history, and can afford no solid basis, on which to build a scientific system. We must wait for more experience. We must have time for the study of a phenomenon so new and strange as this of Unionism. Hitherto, friends and foes have been alike puzzled; and, as yet, the British Public is only groping its way to some dim conception of its real nature. To us it seems pretty clear, that a new phase of Unionism is setting in. Hitherto, com- bination, as a rule, has been confined to the men; and their success — when they did succeed — arose from the assaults of orcranized bodies on isolated individuals. Now similar tactics have been adopted by tlie masters. Henceforth, it would seem, com- bination is to be met by combination; an organiza- tion of capital will be opposed to tlie organization of labour; and the '* terrible power" of the Strike will 40 encounter the still more terrible power of the Lock- out. This policy of the masters is prompted by the instinct of self-preservation. Combination among employers is always difficult ; so, difficult, indeed, that nothing short of dire necessity will effect it. The oft-quoted dictum of Adam Smith, that it is very easy for a few capitalists to combine, is a griev- ous error ; very natural for a closet philosopher, but palpably false to every man conversant with practi- cal affairs. Capitalists in the same trade are neces- sarily competitors, and are therefore kept apart by natural rivalries, which too often degenerate into personal jealousies. Moreover, the capitalist has difficulties peculiar to himself. If a suspension of labour threatens the labourer with want, it threatens no less the capitalist with ruin. Insolvency is the terrible phantom, that gives the employer pause. Every producer has obligations that must be met on pain of dishonour; bills to take up, contracts to fulfil, borrowed money to repay, and so forth. Mr. Sa- muda has told us with what crushing force these obligations fall on needy producers, and make it all but impossible for them to carry out a combination. Speaking of the great engineers' lock-out of 1851, he says : "I was one of the committee for carrying out that contest, and the difficulties that existed in maintaining a combination among the masters, were enormous, because there were so many masters whose necessities were so great that they could not act to the extent of resisting demands that they thought unjust. It was only men who were thor- oughly independent, and who did not care for 41 closing their works, that could stand the difficulty, and face the insolvency that was brought upon weaker houses, by resisting the unjust demands of the workman." ^'" Besides such considerations of mere interest, other and more generous motives cause the capitalist to hesitate, before entering into combinations, even for defensive purposes. It cannot but be painful to any gentleman of proper feelings, to enter on a course of policy, the result of which may be to in- Hict — however justifiably — severe suffering on his .subordinates. Moreover, men in the position of employers of labour are singularly sensitive to the opinion of the public, always impatient of witnessing distress, and ready, without much enquiry, to cast blame on those whom they fancy to be its authors. We do not wonder, therefore, to find in the Commissioners' Report, abundant evidence of the strong aversion felt by employers, to enter even into defence associations, unless impelled by the dire necessity of self-preservation. Still, endurance has its limits ; and when wrong and humiliation become intolerable, the tamest employer will turn to bay. He will cast sentiment to the winds; will defy public opinion; and will face ruin itself, to preserve at once his property and his self-respect : if he must be ruined, as well be crushed in a gallant struggle for his rights, as tamely submit to unresisted spoliation. When masters are in this temper, defence-associations become possible ; and when achieved, they are irresistible. The power of such a counter organization was stikingly shown *Q. 16,805. 42 forth in the late success of the iron shipbuilders on the Clyde, as contrasted with the disastrous fate of their brethren on the Thames. The latter were disunited ; could offer no effectual resistance ; and were ruined. The former organized a Defence Association ; beat the unions ; and preserved a val- uable industry to themselves, their workmen, and the community at large. Should, then, the labouring class continue to put their trust in combination, they must face the possibility of counter-combination. In bargaining for his wages, the workman has before him the alternative of natural competition, or artificial organ- ization ; but he must not expect to combine the advantages of both. If the system of individual bargaining is to be rejected, it must be rejected for masters and men alike. Both must bargain indivi- dually, or both in a body. One and the same prin- ciple must regulate the demand for, and the supply of, labour. You cannot have monopoly on the one hand, and freedom on the other. If competition be suspended among the men, it will inevitably be suspended among the masters. Now, mark the consequences. So long as individual competition prevails among masters and men alike, the humblest labourer is protected in hiring out his labour, by the competition of powerful capitalists; just as the poor needle- woman is protected in purchasing her ounce of tea, by the rivalry of Mincing Lane produce brokers and millionaire China merchants. Under a system of competition, the strength of the capitalist is the shield of the labourer. But when combination takes the place of competition, and masters as a 43 body confront workmen as a body, the natural conditions of the market are reversed. Then the rich are pitted against the poor ; the powerful against the weak ; and then, as of old, the battle will be to the strong. And so there is established that very supremacy of wealtli, which Unionism was vainly devised to counteract. Besides the danger of counter-combination, that threatens Unionism from without, a more insidious danger threatens it from within. In the very constitution of trades' unions, as combining the char- acters of trade and benefit societies, there lurk tlie seeds of weakness, if not of ultimate dissolution. And so, even though they should withstand the power of hostile organizations, they must succumb to the financial difficulties inherent in their nature, No doubt the combination of trade with benefit purposes was astutely conceived, with a view to increase the strength of trade organizations. The benefit element was first to decoy, and then to con- trol. The lure of prospective benefits having attracted members, the dread of confiscation was to enforce obedience. A workman, it was calculated, who had contributed for years to an union, would hardly dare to resist the will of its chiefs. The savings of a life-time stood pledged for his submis- sion. Yet the development of the system has shown it to contain an element of fatal weakness. No doubt the promise of lavish benefits tends, at first, to attract members ; but, on the other hand, the ful- filment of these promises to old members so exhausts the funds as to rcj^cl new ones ; and the older the society, and the more lavish its promises, the greater 44 will be the difficulty of recruiting its ranks. A work- man, invited to join such an union, will probably fear that his contribution may be required to liquidate obligations long ago incurred ; and he will hesitate to cast in his lot with a society, whose whole funds may be so absorbed, before his turn comes to participate in its advantages. Nor will it lessen his reluctance, to be told that, in case of a total exhaustion of the society's funds, its treasury can be replenished by extraordinary levies on himself and his fellows. That these fears are nowise visionary, has been clearly established by the investigations of two actuaries of high standing, into the affairs of the two model unions, the Amalgamated Engineers and the Amalgamated Carpenters. The result arrived at by these authorities was, that both of these unions are in a state of hopeless insolvency. The argument chiefly relied on, in reply, by the unionist authorities, is, that the number of members entitled to super- annuation is greatl}^ reduced by voluntary secessioii. But, even after the most extreme allowance for secession, Mr. Finlaison makes the deficiency in the present value of the assets, of the Amalgamated Engineers, to amount to £1,000,972 ; and of the Amalgamated Carpenters, to £201,508. Mr. Finlai- son estimates separately the deficiency for benefit purposes, and that for donations or trade purposes. Putting them together we arrive at the following result : — Amalgamated Engineers. Estimated deficiency of Assets, — For Benefit purposes, . . . £453,930 For Trade purposes, . . . . 547,042 Total Deficiency, . . . £1,000,972 45 Amalgamated Carpenters and Joiners. Estimated deficiency of Assets, — For Benefit purposes, . . . £46,414 For Trade purposes, 155,094 Total Deficiency, . . . J201,508 Mr. Finlaison adds, that the weekly contribution required for benefit purposes alone, wholly irrespec- tive of any trade object, would be, in both societies, Is. 6d. instead of Is. per week, or 50 per cent, more than the actual contribution.'" In answer to those astounding disclosures, the apologists of Unionism assert, that no conclusion adverse to the system in general can be drawn from the insolvency of these two model unions, as only they and a few others offer superannuation benefits. It is difficult, however, to believe, that if these superior societies were found wanting, when subjected to scientific scrutiny, weaker and more reckless unions would have better stood the test. But be this as it may, so much at least is certain, that the collapse of such an union as the Amalgamated Carpenters or Engineers, would involve the ruin of many other unions. The prestige of these societies is great; and the credit of Unionism throughout the land, rests greatly on the general opinion of their stability and power. Were they to fall, a shock would be given to the whole system. This, too, is certain, that in every trades' union there exists the fatal element of incalculability. At any moment, a trade dispute may swamp the richest and best resrulated union. The wise unionist, therefore, will *Mr. Fiulaisoa's " Menioranduui " in App. to Commissioners' Sixth Report. 46 lay to heart the significant hint, with which Mr. Finlaison concludes his " Memorandum" : — "In con- clusion, it may be remarked, that it is too frequently unobserved, that regulations which leave the funds required to meet definite contingencies open to diversion for casual and incalculable demands, have also the effect of removing the conditions which are generally indispensable to permanent success," That is : if you would preserve your union funds for sickness and old age, beware of wasting them on strikes and lock-outs. Holding these opinions as to the disastrous conse- quences, which the union of trade and provident purposes is likely, ultimately, to bring on Unionism, we should have expected their separation to be chiefly insisted on by the earnest friends of that system, with a view to eliminate an element of great future danger. But, strange to say, we find the supporters of Unionism clinging tenaciously to this double function ; and angrily resisting every proposal for separation, as an insidious device to sap the power of the system. On the other hand the opponents of Unionism, with no less inconsistency, call for the peremptory separation of the trade and provident purposes of the unions, or at least of the funds devoted to each. They do not see that, even if they could effect this object — as assuredly they can not— they would only give increased stability and perma- nence to a system they condemn. Next, let us consider, shortly, some of the reme- dies for the evils of Unionism, suggested by the Commissioners in their Report. Foremost among 47 these are arbitration and conciliation. As to the former, we confess we hardly see how it is to be made available for the purpose in view. All efficient arbitration is based on some acknowledged principle of decision. The arbiter's judgment rests on the application, to a particular case, of some rule of law or natural equity. But trade-disputes involve no question of right ; they are mere differences on points of interest. An arbiter can no more decide, on any rational principle, whether the wage of a labourer should be a pound or a guinea, than whether the price of a pound of rump steak should be Is. or Is. Id. In neither case can any universal rule of right be invoked ; in both, the decision lies with each man's notion of his own interest or con- venience. His idea as to his interest may be wise, or it may be foolish ; but such as it is, he is entitled to hold by it. The employer and the labourer, like the butcher and his customer, has each the right to name his own price, and to stick to it. In such a case, an arbiter has no means of judging according to any principle of reason. He may advise as a friend : he cannot decide as a judge. In the end he will find, he has nothing for it but to split the difference. But if splitting the difference becomes a system, de- mands will be so regulated, as to admit of being «plit. Then, how is arbitration to be enforced ? In the Report of the Commissioners, there is abundant evidence of the difficulty of getting disputes referred to arbitration, even when a general assent to the prin- ciple had been previously obtained. And even sup- posing this difficulty overcome, how are the parties 48 to be bound by the arbiter's decision? Legal com- pulsion is out of the question; and moral compulsion can be least depended on, just when most needed ; naaiely, to enforce an unpalatable decision. But even if good faith be kept, and the original parties to an arbitration abide honourably by the award, how can their successors be equitably bound by it ? Labour- ers are a fluctuating body; and it seems unreasonable that the workmen of to-day shall have power to bind the workmen of to-morrow. On the whole, arbitra- tion, we fear, is likely to remain more an amiable as- piration, than a practical principle for everyday use. But the pet scheme of the Commissioners, for settling trade disputes, is the establishment of courts of conciliation. Such store, indeed, do they set by this contrivance, that they declare, they will deem their two-years' labour well repaid, if it shall be the means of forcibly drawing public attention to so hopeful a means of ^' establishing lasting friendly re- lations between capital and labour."* For our part, we do not altogether share this lively faith, in the all-sufficient remedial force of the system of con- ciliation. We do not, for a moment, doubt the al- leged success of Mr Mundella's Nottingham court of conciliation ; but we cannot discover any prin- ciple of efficiency, to which that success can be attributed, or which is capable of general application. It seems to us, that Mr. Mundella has attributed too much to the power of his system; too little to his per- sonal influence. Mr. Mundella is too modest by half. We can well believe, that, in a comparatively limited trade, such as the hosiery trade, the energy * Report, p. 28. 49 and good feeling of a superior man may overrule the wills of more vulgar spirits; but such an infiuonce is partial and precarious ; and neither ]\Ir. Mundulla nor the Commissioners have pointed out any princi- ple of influence, capable of universal application in their courts of conciliation. " All that is needed," says the Commissioners, " is that certain representative employers and work- men should meet at regular stated times, and amica- bly discuss, around a table, the common interests of the common trade or business." Just so : but how insure the " amicable " discussion ? Given "friendly feelings" on both sides, the problem is easy of solution ; and courts of conciliation might even be dispensed with, as a superfluous luxury. But failing such friendly I'eelings, we do not see how any amount of discussion, "around a table," is to ensure an " amicable understanding." The proposi- tion of the Commissioners, in short, amounts to little more than a pious wish, after the manner of the excellent Dr. Watts, that brethren in trade shall dwell in amity together. Even the physical conditions of courts of con- ciliation present practical difficulties, which might appal men of less intellectual nerve than the Royal Commissioners. No doubt, it may be possible to collect representatives of a small hosiery trade, in a central town like Nottingham ; nor would it be unreasonable to expect some feeling of a " common interest " in such a representative body. But the lar- ger unions, spread all over the kingdom, nay all over the world, seem much less manageable. How, for in- stance, are representative men of the 33,325 Amalga- D 50 mated Engineers, and their hundreds or thousands of employers to be gathered together from all the ends of the earth; from the colonies, from the Continent, from the United States, not to speak of the United Kingdom and Ireland? And even supposing these preliminary difficulties overcome, and a national, or even an international, court of conciliation assem- bled, say in London, the problem would still remain to be solved, how a sense of " common interests is to be established, and an " amicable understanding " regarding them arrived at. Our main objection, however, both to arbi- tration and conciliation, as palliatives of Unionism, is that they sanction, nay necessitate, the continu- ance of the system of combination, as opposed to that of individual competition. We regard them, therefore, as mischievous compromises with a prin- ciple essentially evil; as deceitful remedies, which palliate the symptoms, but confirm the disease of Unionism. By bringing together representative bodies of masters and men, and appealing to their cooler judgment and better feelings, we may, pos- sibly, stave off* a quarrel for a time, and here or there prevent a strike or a lock-out. But, in so doing, we lend the authority of public recognition to the pestilent principle of combination; and sanc- tion the substitution of an artificial mechanism, for that natural organism which Providence has pro- vided for the harmonious regulation of industrial interests. On one point the Commissioners are unani- mous : all agree in recommending the registration of unions. To this suggestion, — agreeable as it is to 51 the present passion for State supervision — we have the same objection, as to the proposal for arbitration and conciHation. Like them, registration gives State recognition to a bad principle. Unionism is a system to be tolerated ; not to be encouraged. The liberty of the subject must be respected, even when men inflict injury on themselves; but a system inju- rious to the workman, to his employer, and to the community, ought not to bear the stamp of State recognition. Moreover, the apparatus of registration, as proposed by the Commissioners, is practically unworkable. The whole system of regulation — especially when separation of trade and benefit funds is enjoined — is singularly intricate and vexatious; and, most assuredly, would be indignantly rejected by the unions. Nor would the publicity be obtained, which is so much desired. The regulations which it would be really important to know, would still remain ''secret rules"; and the accounts would be equally unexplicit. It is childish to suppose that, where evil existed, the wrong-doer would volunteer information to the registrar of his own misdeeds. Not even the temptation of a " first-class certificate" would induce the unionist conspirator to proclaim his guilt. A Broadhead would not publish his schemes of outrage to the world ; nor would the blood-money of his assassins appear in his accounts. To us it seems, that little new legislation is needed. What is wanted is, rather, a juster ad- ministration of existing laws. What the State is bound to do is, to enforce perfect liberty of con- tract; to secure to every person, "full freedom 52 in disposing of his own labour or his own capital according to his will." '" This is the principle estab- lished by common law, and definitely sanctioned by enlightened public opinion. How it may best be carried out, is a question for the lawyers; but as to the end to be attained, there is, among rational men, no longer any dispute. The sanction given, by universal consent, to the principle of combination, behoves to be carried out to its logical results. The right to combine being con- ceded, the unionist ought to be protected in the full exercise of his right. Having liberty accorded him to combine for his own purposes, he may logically use his combination to accomplish similar purposes for others. And, moreover, it is impossible to hinder him from doing so. The proposal, therefore, of the majority of the Commissioners, to prohibit one union from helping another, is at once oppressive and futile. Neither can the unionist be reasonably denied the rio'ht to refuse to work with another workman. No doubt it may be a spiteful thing to refuse to work, as sometimes happens, under a fore- man of undeniable ability and good character; but we can see no rule of law, under which such spiteful conduct can be condemned as criminal. Such sole- cisms must be left to the influence of public opinion and individual conscience. They are sins against morality; not crimes against the State. Again, combination being recognized by law, union funds have a clear right to protection: and if they are not sufficiently secured by tlie law as it stands, by all means give them full protection. The * See Sir W. Erie's Memorandum. Report p. 59. 53 ideas of unionists may not be consistent with the received principles of economical science ; but it is no good reason to outlaw men, that they are bad political economists. The old bugbear of " restraint of trade " must not be made use of to sanction larceny. It is a sorry policy, which allies the law of the land with the rascality that robs a till. On the other hand, the unionist must not be permitted to oppress his neighbour ; whether em- ployer or fellow-workman. The first duty of the State is to secure a just administration of the laws ; and our rulers abdicate their highest function, when they cease to protect the citizen. It is intolerable, that a district of England should be abandoned, like Wigan the other day, to the club-law of infuriated colliers ; or, that the community of Manchester should be condemned, to use 72 millions a year of bad and dear bricks, to fill the pockets of a junto of semi-barbarous brick-makers. The evidence given before the Commissioners demonstrates, also, in many cases, a shameful miscarriage of justice. Persons have been forcibly impeded, both in hiring labour, and in offering labour for hire. In the ordinary exercise of their calling, they have been subjected to grievous injury; and their wrongs have gone unavenged, because men feared to give evidence against the wrong-doers. Such a paralysis of law is disgraceful in a land, calling itself civilized; and our authorities cannot too soon take order, that such scandals shall henceforth cease. Witli this view, we heartily applaud the suggestion of a major- ity of the Commissioners, that a public prosecutor be appointed. To every man of common sense, it must 54 appear a grotesque perversi(.>ii of" justice, to call upon the poor victim of a trade outrage, to prosecute his assailant at his own expense ; and to bind him over in heavy penalties, to vindicate the majesty of a law which has failed to afford him protection. Come what may, Government is bound to keep the peace, and to secure to every citizen the full exercise of his freedom. This is not " class legisla- tion;" it is, in the best and highest sense, legislation for the community. The State has renounced the barbarism of fixing a maximum of wages ; let it see to it, that resuscitated guilds do not fix a minimum. The Legislature must be just to the trades' unions; but it must not truckle to them. As for the public, the less they interfere in trade- disputes, the better. They will get no thanks, and will do no good. They never can understand the intricate technicalities of such a discussion, nor unravel the contradictory statements of the disput- ants. They can onl^'^ offer the usual weak wailings as to the loss to be incurred, and threadbare plati- tudes as to the foolishness and wickedness of con- tention. Such considerations never shortened a trade-dispute by an hour. Far other considerations weigh with both the parties in a serious trade contest. Goody talk, in such a case, is mere waste of human speech. One thing is clear : the relation betAveen work- men and their employers has permanently changed its character. The democratic idea which rules in politics, has no less penetrated into industry. The notion of a governing class, exacting implicit obedience from inferiors, and imposing upon them 55 their own terms of service, is gone, never to return. Henceforward, employers and their workmen must meet as equals in all the essentials of manhood. When this truth shall have been more thoroughl}^ recognized, it will influence favourably the conduct of both parties. It will soften the manner of em- ployers towards workmen, whom they recognize as equals in all essential respects; while the workman, more and more assured of his position, will feel less anxious to assert his dignity by a rude address and intemperate demands. Let the nation, then, insist on justice: let it see that freedom is secured to all ; and then, let it leave unionists alone. Let it leave them to the teachinos of experience. If that stern school-mistress cannot teach them wisdom, none else can. A system so rooted in the proletarian mind, as Unionism, will only yield to self-inflicted suffering. It will be a painful, and a slow process; but in the end it will be successful. Generations ma}^ pass away without effect ; but, with time, truth will prevail. The fanatical faith of the working-classes in the artificial mechanism of combination, will give place to trust in the wiser, because more natural, system of indi- vidual competition ; and the hiring of labour, like the exchange of commodities, will be set free, to be regulated by the heaven-ordained laws of Supply and Demand. 56 NoTK TO iSkcond Edition (page 36). We have been twitted, by an otherwise friendly critic, with having overlooked the late modification of this doctrine by Mr. Mill and Mr. Thornton. Thi.s is not so; but we thoiit,dit that, in so slight a tract as ours, we might, withotit controversy, build on a doctrine which, on v Mr. Mill's own showing, has up till May, 18(59, been sanctioned by ^11 or most economists, including himself. As to Mr. Thornton's theory, that different prices may coexist in one and the same market, it seems ' to ITS, he confounds the oscillations of price with the point towards which price oscillates. "Higgling " is but another name for oscillation; and it matters not a straw, whether the higgling begins with the buyer or the seller; whether the oscillation commences from the right hand or the left. Surely Mr. Thornton has forgotten the rebuke administered by Luckie Mucklebackit to the Antiquary, for closing at once with a fishwife'.s "first bode." Mrs. Mucklebackit evidently held more orthodox views tiian Mr. Thornton, as to the oscillations of price ; and set less store by the power of the initiative. PRINTF.n BV ROBERT MACLEHOSE, rNMVRRSITV PRESS, OLASOOW. UNIVERSITY OI' CALIFORNIA, LOS ANGELES THE UNIVERSITY LIBRARY This book is DUE on the last daic stamped below rm L-0 i-2,'43<520;1 yC SOUTHERN REGIONAL LIBRARY fini iry 3664 Stirling - 386t Trade x mio i 1889 . - ■ "lNlliin|||ii||i;|||||| .iA 000 962 071 7 HD 6664 S86t 1889