mmmmmtf "^^^ ^ - //- ff'y THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES liilDrary Insti-tute of Industrial Relations-. University of Callfoi'nla Los Angeles 24* California' 1/7 THE LABOUE QUESTION LONUOX : fUINTKl) »Y SPOi-riSWOOOB AND CO., N KW-.sTltK.ST .SQPARB VM) I'AIII.IA.MKXT KTnKKT LECTUEES ON TH !■: LABOUR QUESTION BY THOMAS BEASSEY, M.P. AUTHOK OF ' ■WOIiK A>fD WAGES* AND 'BRITISH SEAMEN ' THIRD EDITION LONDON LONGMANS, GEEEN, AND CO. 1878 III i-i'ihli ;-,'v,v HI) H^Ol 1878 PREFACE. In OFFERiiVG to the public the following collection of addresses on the Labour Question I publish nothing that is new. I venture, however, to believe that the encouragemeut, which I have received, in my labours in the exposition of sound doctrines on work and wages to the rank and file of the armies of industry, may induce more competent teachers to work in the same, field. The soil is fruitful ; but it demands the labour of the husbandman. CONTENTS, I.BCTUKK I. II. III. ly. V. VI. VII. VIII. IX. X. XI. XII. XIIX. Labour and Capital ...... 1 The Nine Hours Movement. . . . . . 8 Wages in 1873 25 Public Elementary Education in the United States . . . . . . . . 74 The Duties of the Church in relation to the Labour Question ...... 93 Co-operative Production . . . . . . 101 The South Wales Colliery Strike . . . 168 On the Influences affecting the Price of Labour in England at the Present Time . 178 On Canada and the United States . . . 197 Work and Wages in 1877 209 Labour at Home and Abroad . . . . 229 On the Comparative Efficiency of English and Foreign Labour ...... 243 On the Rise of Wages in the Building Trades OP London ........ 264 APPENDIX INDEX . 295 329 902302 LECTUEE I. LABOUR AND CAPITAL. Address delivered m the Workmen's Hall, Birkenhead, October 3, 1871. If.B. — This and the succeedimj Paper were prepared at the request of the Executive Committee on Labour and Capital of the Social Science Association. I AM here to-night at the request of Mr. Frederic Hill Social and other members of the Social Science Association. Associa- It has been thought that something should be done on the part of the Association to prevent the recurrence of the deplorable industrial conflicts of which we are daily witnesses, and it has been proposed : 1. To tender the good offices of the executive committee as mediators in cases where a desire has been expressed for their friendly intervention. 2. To deliver lectiu-es in various parts of the country on those branches of political economy which bear on the question of wages. Connected as I am with this rising community, I have undertaken to deliver an address in your Work- men's Hall. I shall begin this attempt to elucidate the Avao-e ^^^^ of question by reminding you of tlie universally accepted f^e Conti- neut. 2 Lithour ft/I'/ Ctipififl. axiom of ecoiioiiiical science, that the rate of wages is invariably regulated by the relative proportions of the capital available for the payment of wages and the number of workmen seeking employment. The only limit to the fall of wages is the cost of living. His wages must be at least sufficient for the maintenance of the workman. Thus the rate of wages being essentially dependent on the relation between supply and demand, it is not possible for a trade combination in the long run to exercise a controlHng influence on the price of labour ; though I readily admit that by concerted action work- men might often obtain an advance of wages at an earlier date. Our operatives have but a faint conception of the rise of wages which has taken place, in recent years, abroad, in countries where trades unions do not exist, and where the improvement in the workman's condition is attributable solely to the increased demand for labour. I take a few figures from the tables given in a report prepared by Mr. Phipps on the industrial classes in WUrtemberg. From these it appears that the average increase in the rate of wages in eight branches of manufacture and industry, during the last thirty years, amounts to from 60 to 70 percent. In the building trades the rate of wages has advanced from 80 to 90 per cent., and this advance is fully ex- plained by the unusual activity in the trade. As a general average, 69 per cent, might be taken as the increase in Germany, in the daily wages, for the different classes of out-door labourers. Wages in Tumiug froui EuroDc to the United States, the the United ,. f -n t i States. wages of skilled workmen average from 9o-es affords no mdication of the actual Tlie Nine Hours Movement. 1 3 cost of labour. Cases have been recently quoted of English workmen on the railways in France earning double the pay awarded to the French labourer, and yet executing for the employer a greater amount of work, in proportion to the wages they received, than the native workman. It must, however, be remembered that this remarkable result was due to the superior physical energy and skill of the English navvy as compared with the French agricultural labourer. If the Enghsh artisan receives higher wages than the foreigner, he must, like the navvies in France a quarter of a century ago, in the earlier days of railway enter- prise, earn his higher wages by a corresponding superiority in energy and skill. In railway experience it has been repeatedly proved that an increase in the rate of wages will often produce a more favourable result to the employer than the lower rate. Indeed, in a rude climate, the power of the manual labourer cannot be fuUy developed, unless he is supplied with a more generous diet than that upon which the agricul- tural labourers in some parts of the country support themselves. The success, which marked my father's career, has become matter of notoriety. I venture to assert that no employer ever dealt more liberally with labour. A rise in the prevalent rate of wages was an almost invariable result of the commencement of railway ope- rations in any county in England, or in any country abroad. On one occasion an estimate was submitted to my father for a contract, for which a sharp com- petition was exj^ected. The prices had accordingly 14 The Nine /Join's Jforrntt'uf. been cut down 1o an uiiiisiuilly low figure. He there- upon asked liow it was proposed to cany out the work for such inadequate prices. In reply it was stated that the calculation was based on the assumption that a re- duction of wages could be negotiated. On receiving this explanation my father desisted from idl further examination of the estimate, saying that if business could only be obtained by screwing down w^ages he would rather be without it. A similar feeling I believe to be generally entertained by employers. The dear- ness of labour in England has stimulated inventive genius and administrative skill, and the continued success of our trade should be attributed, not only to the energy of the British workman, but to those improvements in the processes of manufactm^e, the merit of which should be equitably apportioned among our men of science, oiu" scientific employers of labour, and those skilful workmen, not few in number, Avho have exercised their ingenuity wdth success in per- fecting or abridging the tasks in which they have been engaged. Wages at While tlic Comparative cheapness of fuel and the -Essen, . -, , • 1 /> abundant supply of u'on and other raw materials of industry have been an immense advantage both to capital and labour in England, it must be acknow- ledged that, in economy of production no less than in design, foreign competition treads closely on our heels, English workmen only imperfectly realise the serious odds against which our industrial establishments con- tend. It requires much skill in the employer, much energy in the workman, to compensate for the difference Tlte Nine Ilour.s Movement. 15 in the wages. Perhaps the most successful engineering establislnnent on the Continent is M. Krupp's at Essen. Between 8,000 and 10,000 men are employed. Day workmen and helpers receive only Is. 2^d. to 1<§. ^^d. a day, while the wages of smiths, piiddlers, carpenters, and masons average 21. 86'. to 6/. 155. a month. These wages would not satisfy the English artisan, yet they are the highest which are paid in any part of Germany. This low rate of wages is to be explained partly by the cheapness of provisions ; and here let me remind you that the comparative cheapness of provisions abroad goes a long way to compensate foreign competitors for the higher price of coal and iron. Moreover, the mode of living adopted by the artisans in Germany is more frugal than English habits will permit. A writer in the August number of the Revue des Deux Mondes states that at Essen 1,500 of the workmen live together in a barrack, where they have an eating room in common. In this barrack the workmen can procure food and lodging for the small sum of lOii. a day. The writer proceeds to state that the favourite beverage of the workmen at Essen is coffee, and suggests that their preference for a cup ' which cheers, but not inebriates ' to intoxicating liquors is worthy of imitation in other countries. In spite of the development of industry in this country, the constantly increasing employment, and gradual increase in the rate of wages, we have to deplore the existence side by side with this pros- perity of a miserable and, we are too apt to think, inevitable pauperism. Do not the statistics of the con- sumption of intoxicating liquors, the expenditure of 16 Tlie Nine J J ours ]\f(>r<'ment. 100,000,000/. a 3'car on drink, indiciite an excessive indulgence in the use of stimulants ? Causes 111 England the facilities of communication, wliicli teiuliiii^ to . , equalise railways have aflbrded, have had a marked efTect in equalising the cost of labour throughout the country. The difference in the rates of pay of the operatives employed in shipbuilding on the Thames, the Mersey, the Tyne, and the Clyde, has diminished, and will con- tinue to diminish. Inequalities in the cost of living tend to disappear, and differences in the rental of land, ac- cording as the available area is large or small, and in the cost of materials, will be the only elements of cost in which equahty will be impossible. That which has already occurred in England will be repeated over a wider area. If wages in England, taking into account the amount of labour performed for the money paid, and the cost of living, give to the English artisan a great advantage over the foreigner, foreign labour will be at- tracted to the English workshop. On the other hand, the cost of the voyage to the United States has been so materially reduced that the higher rates of pay wliich the workman receives on the other side of the Atlantic cannot but affect the price of labour here. The cost of living has increased so much, since the war between the North and South, that it is doubtful whether the married workman has derived any ad- vantage from the increase in his wages. Should his position become much improved by a reduction in the cost of living, without a corresponding reduction in his wages, a large number of our skilled operatives will be attracted to a field of labour where employment is The Nine Honvf^ Movement. 17 fo be obtained on betler tcnns. This has occurred, in point of fact, in South Wales, where reductions of wages have had the effect of increasing the emigration of miners to America. With a more easy means of communication, a more perfect solidarity must gradually be established between the industrial classes through- out the civilised world. Tlie international combinations of the operatives may do something to check the influx of foreign labour into England. But they can only effect that object by giving an additional impetus to the ascending movement, of late years much more rapid on the Continent than with us, in the scale of wages. It is almost superfluous to remark, that the rise of wages on the Continent will be an advantage to British industry, by making the competition with the Continental manufacturer more equal than before. Allusion has been made to the importance of a Messrs. Brings, knowledge of the markets and of the state of trade to the industrial classes ; and it has been suggested that the course of business should be carefully watched. An inspection of the employer's books would doubt- less be a still more effectual means of obtaining this knowledge. This inspection is permitted in Messrs. Briggs's co-operative colliery. Theirs is a noble experiment which merits a full measure of success. It is clear, however, that such an arrange- ment as that experimentally adopted by Messrs. Briggs could not in practice be extensively applied. In many branches of trade the returns are in the high- est degree fluctuating. A cycle of years of extreme depression is followed by a period of corresponding c 1 1^ The Aliie Uours Movement. prosperity. During the years of bad trade workmen are employed at rates of wages wliicli involve con- siderable loss to the employer, who looks for his compensation to the good years of large profits. If the workmen were continually informed of the profits of their employers, they would be apt to exact their full share of reward in the good years. They might not be equally ready to submit to sacrifices in the succession of years of bad trade. So in the case of the peculiarly hazardous business of a railway con- tractor. In some of his contracts the profits will be large, in others the loss will be of serious amount. The large employer, taking a general view of his affairs, and setting the good contracts against the bad, contents himself if the general result is satisfactory. Is it likely that the navvy, who works equally hard both on the bad contracts and the good, would be content to suffer a reduction of pay on the bad contract, and to see his fellow-workmen, employed elsewhere, but working no harder, receive double the pay awarded to himself? Is it not, on the contrary, certain, that while the navvy upon the unsuccessful contract would object to such a reduction of pay as would protect the employer from loss, the navvy employed on the more remunerative undertaking, if he were made aware of the profits, would press with urgency for some share in the gains of his employer, in the form of an increase in his pay ? Such being the practical difficulties in the way of opening the ledger of the capitalist to the inspection of the operative, what other means are available for enabling the work • The Nine Hoiir.^ Movemoil. 1 1' man to determine the fair I'ate of wages, in liis own branch of business ? The poUtical economy of the wages question, and the general principles which determine the rate of w^ages, are simple enough. The difficulties, which beset the question, lie entirely in the practical application of the principles to the facts. The facts are, unhappily, unknown to the working men. They have to struggle in the dark, and have no means of estimating correctly the profits of their employers. The last great strike in the coal trade in Lancashire occurred during the depression caused by a financial panic. The consumption of coal had been much reduced. Foundries and engineering works received no orders ; because the railways, with a few exceptions, were in a state of collapse. The loss of employment, and the mildness of the winter, had especially told on the consumption of coal in the metropolis, where vast stocks had accumulated. It was therefore to the interest of the coal-owners to cease for a time to raise coal from their mines. They, however, thought it more just to the miners in their employ, to propose a reduction of 10 per cent, in their wages. The reduced wage was peremptorily refused, and the men went out on strike. A resolution more favourable to the interests of their employers could not have been formed. I was present on the scene as a disinterested spectator. Mr. Mundella, who has won an honour- able name by his humane labours, was anxious to be the messenger of peace. Unhappily his endeavours to mediate were unsuccessful, and the workmen con- tinued the strike until their resources were exhausted. c 2 20 'JliC, Niin' J/oiii:-; Movement. It is precisely in sucli a case as tliis that tlie co-o[)era- ti\e associations, working side by side with i)rivate enterprise, could difluse anioiig the workmen in the trade a knowledge of tlie state of affairs, which would make such a mistake as that committed at Wigan impossible. Risks of Co-operation would teach our industrial population to appreciate the dillicultics and hazards attending the investment of capital in business. I have had an opportunity of seeing what they are. I can assure the working man, whose stock in trade is secure amid all the fluctuations of commercial life, because it consists of his individual experience and dexterity, of which no reverse of fortune can deprive him, that the more precarious tenure by which capital is held — capital which lias only been amassed after long years of thrift and untiring exertion — ought to mitigate the envy, which the rare instances of great success in commercial enterprise may arouse. In the difficult vocation of a railway contractor, the fluctuation and anxieties, of which I speak, are felt with pecuhar severity. I know of one great contract, in which a firm with three partners lost 750,000/. I could enumerate other contracts, in which, though the actual loss was not so serious, the result was even more disastrous, in proportion to the limited extent of the operations. Education The difliision of education under the recent Act co-opera- will, doubtlcss, assist the industrial classes to overcome the difficulties of co-operative organisation ; and, when a higher scale of education is given to the people than the purely elementary instruction which is now pro- tion. The Nine Hours Movetnent. 21 posed, the gi'eat quality of self-help will be more highly developed. Under the Austrian Education Act of 1870, the necessity of compulsory attendance is ac- cepted, and in addition to the bare elements of know- ledge which are to be taught in England, the educational course comprises the history and geography of tlie child's native country, physical science, geometry, and singing. Seligious instruction is entrusted in the first instance to the communion to which the parents belong. If the religious bodies neglect their duty, it is under- taken by the State. With such an example before them, our people will not long rest content with the present scheme, and will expect a higher education than the State as yet has provided. In times of commercial depression, the importance Courts cf . . concili;i- of establishing friendly means of adjustmg the rival tion. claims of capital and labour is underrated. When the rapid increase of production is checked, and more when the rate of production is diminished, the com- petition among the industrial classes for employment makes it impossible for labour, however skilfully orga- nised, to exact any concessions from capital. It often happens, in periods of unsuccessful trade, that mills are kept running, mines are being Avorked, and that engineering establishments are in ojieration, although the results may involve the employer in serious loss. ^ In such cases production is continued, partly for the sake of sparing to the workmen the suffering arising from suspension of industry, partly also with the hope of a return of more remunerative trade. It will be readily understood that, under such ad\'erse circinnstauces. 22 The Nine Hours Movement. the employers cannot possibly entertain demands for an augmentation of wages. The case is reversed in periods of commercial prosperity, wlien an increasing production in every branch of industry affords em- ployment to every individual who is able to work. The competition of unemployed labour is no longer felt, and labour will naturally begin to seek for an increased reward. The certainty that these claims will arise is a strong reason why some effort should be made to establish friendly and impartial tribunals, by which they can be review^ed. Education will pro- bably do much to develop the usefulness of courts of conciliation. It may be, as the Economist says, that a court of conciliation can never adjust a real quarrel. But it is certain that it may do much to prevent a quarrel from arising. If the workmen were satisfied that an employer could not make a concession without suffering serious loss, they would not stand out for impossible conditions. The constant meeting of employers and representatives of the operatives at the same table must naturally facilitate peaceful nego- tiation, where a desire for peace exists on both sides. With constant discussion, coming events will cast their shadow before, and disputes are not likely suddenly to arise. Again, employers will acquire the habit of giving more unreserved explanations as to the condition and prospects of trade. It seems to me that in England we should do well to study the state of society in Switzerland, as described by Mr. Bonar. In Switzerland the personal relations between employers and employed are far more intimate The Nine Hours Movement. 23 and cordial than with us. Persons of every grade of society sit side by side in the cafes and places of amuse- ment. The admission of workmen into the communal councils, where they share with their employers the responsibilities and honours of public life, while it encourages a wholesome spirit of independence, does much to establish a mutual feeling of sympathy and regard. Sometimes a want of cordiality in the de- meanour of the employer is misinterpreted, as indicating a want of sympathy and kindness of heart. A little more facility of manner towards faithful and deserving workmen would often encourage sentiments of loyal goodwill beneficial alike to the master and the man. When I had the privilege of accompanying my lamented father on visits of inspection to works under construc- tion, I was ever deeply impressed by his genial manner towards his old followers. He used to recognise many of the old navvies, even some whom he had not met for years, and address them by their Christian names. He would never omit to shake hands cordially with old gangers and sub-contractors, and when he met them on the works he would generally pull up for a few minutes to talk over old times, and ask after mutual acquaintances who had been employed on former contracts. A small manifestation of kindness — how little it costs ; how much it is valued ! In con- clusion, let me congratulate the workmen of Newcastle on their generally well-regulated conduct in the trying ordeal through which they have lately passed. It is by meritorious self-restraint, by urging with moderation and fairness demands which they deem to be just, that 24 The Nine Hours Movenienf. the claims of tlio ()])eratives on the sym[)athy of all classes of society can alone be establislied. Believe me, your recent conduct has won for you many friends ; and the abihty which has marked the conduct of your leader, Mr, Burnett, will increase the desire already universally entertained to see labour more directly represented in the House of Commons. I for one do not want to see working men in that House as the exponents of new constitutional doctrines. There may be an ideal perfection in a republic ; but under the limited monarchy, under which it is our happiness to live, w^e possess every substantial guarantee for freedom. Working men waste their joowers when they aspire to become the leaders of political revolution. No patron of the working classes, on the other hand, however generous or friendly he may be, can urge their claims and explain their wants to the legislature and the country like one of themselves ; and the working man may rest assured that a w^ell-selected champion of his order will never speak in the House of Commons to an indifferent, an inattentive, or an unsympathetic audience. ZD LECTUEE III. WAGES IN 1873. Address read before the Social Science Association, AT Norwich, October, 1873. In the following Address I shall devote myself to the task of reviewing, I hope in an impartial spirit, the most recent phases of the labour movement. The great advance of wages is a conspicuous feature of modern Enghsh industry, and is obviously due to the rapid growth of the general trade of the country. The long depression following on the panic of 1866 has been succeeded by a period of unprecedented activity in every branch of our export trade. The demands upon the labour market have far exceeded the supply ; and the artisan and labourer have not been slow to take advantage of the situation. Between 1866 and 1869, the value of the exports of the produce and manufac- tures of the United Kingdom had remained stationar}'. It rose from 190,000,000/. in 1869, to 256,257,000/. in 1872. Such a leap was not possible, without im- posing a strain upon the powers of our labouring popu- lation, which must inevitably have led to a material alteration in the rate of wages. It is often alleged that the recent advance of wages 26 War/e,s 171 1S7^. is attributable to a series of successful strikes. It can, however, be sliown, that a strike against a falling market is never successful, and that trades unions, as an organisation for the purpose of raising wages, can rarely do more than assist the workman to obtain an advance, at a somewhat earlier date than that at which the competition among employers would have brought about the same result. I may quote the unfortunate strike in South Wales, at the commencement of this year, as a signal instance of the inability of trades unions to cope with the superior resources of employers, when firmly united together. South It may be worth while briefly to recapitulate the strike, uiost important incidents of the South Wales strike. 1872 In June 1872, the miners had proposed to apply for an advance of 20 per cent, on their wages. They were, however, advised by the executive council of their Union to limit their demand to an advance of 10 per cent. The advance was granted, and three months later the men asked for an additional 10 per cent. Their application was refused, and shortly after- wards the masters gave notice of a 10 per cent, reduction. The men thereupon desired that their case should be referred to arbitration. This request was refused by the masters, who were so fully convinced of the strength of their own case, that they offered to submit their books for the inspection of the workmen. The miners were unwilling to avail themselves of this offer ; and, encouraged by large promises of support from Mr. Halliday and Mr. Pickard, they went out on strike. Without venturing to apportion to eithei- of the Wages in 1873. 27 contending interests their precise share of responsibility, it is clear that the ironmasters were alone in a position to know whether their business was sufficiently remu- nerative to make it possible to dispense with a reduction of wages ; and it was stated by Mr. Crawshay that he had taken a contract for 2,000 tons of rails at 9/. 2^. 5c?. per ton nett, and that he lost money by selling rails at that price. Mr. Crawshay expressed an opinion, founded on the statements made by his workmen in daily interviews, that, but for the interference of the Union, they would have been satisfied with the expla- nations which he had given them, and returned to their work. Meanwhile, it had become a point of honour with the masters to prove to their workmen that they were able, when acting in concert, to fight a successful campaign against the united forces of the Miners' Union. The miners, on the other hand, were in the em- barrassing position in w^hich workmen are always placed whenever they are engaged in similar disputes. They had to struggle in the dark, without any independent information as to the profits realised by their employers. The responsibility of the Executive Council of the Miners' Union, during the labour crisis in South Wales, was immense. Although the miners connected with the Union were only 10,000 in number, by their cessation of labour, 50,000 of their fellow-workmen, engaged in various branches of the iron trade, were thrown out of employment. The ' strike pay' distributed by the ColHers' Union amounted to a total of 40,000/., a sum quite in- significant, by comparison with the amount of 800,000/., which the men would have earned, had they continued 28 Wages in 1873. at Mork ; and yL't tlie burden of sustaining a vast popu- lation proved eventually insupportable. In point of fact, the men were only enabled to continue the struggle by the assistance of the tradesmen of the district ; and when, at length, the latter found themselves unable to continue the supply of the necessaries of life on credit, surrender was inevitable. The reaction against the International Society among the working classes in Belgium originated in a similar cause. In 1871, during the strike in Flanders, the International was unable to fulfil its promises of support, and it has consequently lost credit with the operatives, many of wliom, as we are informed by Mr. Kennedy, have withdrawm from the Society. It was the same with the miners at Waldenbnrgh, in Silesia, where 6,000 men went out on strike. After all their savings had been exhausted, they received a grandi- loquent despatch from the Central Council at Berlin, urging them to emigrate en masse. A few obeyed the advice. The majority who remained were compelled to surrender, being consoled by the assurance that the most valiant armies must sometimes yield to superior numbers, and that they had won for themselves the admiration of Germany. Almost to the last tlie originators of the strike in South Wales opposed the generally felt desire to return to work. Never, perhaps, was the magical powder of eloquence over an imperfectly educated audience more conspicuously displayed than at the meetings, held by the workmen, towards the close of the South Wales strike. Men, who had gatliercd together for the }Va. 4:b who delivered the opening address, asserted tluit, by its dereliction of duty in not protecting the labourer of Great Britain against competition, the Government of this country have fostered anarchy in Ireland, while the hfe of the labourer in England and Scotland has been robbed of all its joys. ' The millions of sturdy men,' he declared, ' represented by Bradlaugh, Odger, Joseph Ai'ch, and the travelled and humane patrician, Sir Cliarles Dilke, know that the world owes every man a hving, and that it is only by protection that the means of living can be secured to the people.' So long as such a feeling prevails there is little hope of our ironmasters obtaining free access to America. The progress of the American iron works is the American . . . . competi- more creditable, because great difficulties are experi- tion. enced in obtaining a sufficient supply of labour. Men come over from England, having had theu' expenses paid, on condition of taking an engagement for a period of five years. As soon as their bargain is performed, they generally fnid it impossible to resist the attractions of an independent farm in the Far West. Their places must be supplied by other workmen, obtained by the same costly means from the mother-country. The difficulty of obtaining skilled workmen has had a great effect in America in stimulating the invention of labour- saving machinery. As scientific manufacturers the American ironmasters can doubtless hold their own against the world. In finished iron the Americans have been highly successful. Bridge- work, locomo- tives, wheels and tires, and machinery, are produced at prices which may compare not imfavourably with our 46 W(tJ/<'.s ill 1 87^. rcabody owii. As till illustnitioii ol" American inwiiuily and Company, enterprise, which came under my immediate notice on the occasion of a recent visit to the States, I may point to the Peabody Eille Company's estabhshment at Pro- vidence, Ehode Ishmd. During the Rebelhon the Company was fully employed in the manufacture of small arms. The cessation of the struggle put an end to the demand for military weapons. With the fertility of resource which distinguishes American industry, the manual skill of a large body of workmen especially apt in the production of tools or machinery composed of numerous small and interchangeable parts, and the valuable and ingenious plant belonging to the Company, are now employed in the production of sewing machines. Three hundred machines are turned out every day, and the sale is constantly increasing. The wages of the 500 operatives employed are most liberal. The monthly pay-sheet amounts to 25,000 dollars, giving an average of 40^. a week throughout the factory. The leading workmen, five or six in number, to whom the work is let by the piece, or rather by sub-contract, earn nearly 600/. a year. The superior mechanics earn 125. to 145., labourers 45. to 65. a day. The supply of highly-skilled labour is limited, but ordinary mechanics can always be obtained. On an average, one skilled mechanic a day makes application for employment. The success of the Peabody Company affords sig- nificant evidence that the cost of production is not' augmented in equal proportion to the high rates of pay. At tlie time of my visit they were negotiating a Wrf(/es ill IST^. 47 contract for the sup])ly of 100,000 rifles to the Roiima- - niaii Government, at the rate of G3s. per rifle ; and they had to com{)ete for tlic contract against all the makers of Birmingham and Liege. Tliis Company had also in prospect an order for 200,000 rifles from the Turkish Government. The success, with which the Americans have reduced the cost of production by the invention of machinery, gives us ground for caution lest our old supremacy be shaken by tlie energy and talent of the New World, while it also gives us reason to hope that the elTects of the exceptionally high rates of wages now prevailing may be mitigated, by substituting, wherever it is possible, mechanical for manual labour. Meanwhile there is nothing in the present condition Monopoly - -■ . . „ . ... cannot be oi our trade to justiiy serious misgivings, as to our retained. power of continuing a successful competition with foreign producers. It does not follow that, because we have lost a monopoly of a particular branch of trade abroad, the skill of the English workman must have deteriorated, or the cost of production have been unduly enhanced by the rise of wages. Foreign countries may have imported from us a particular commodity at a former time, solely because they were inexperienced in the process of manufacture. When my father was executing the Eouen and Havre Eailway he imported the rails from England, although he had to pay an import duty at the French custom-house, amounting to a considerably larger sum than the selling price of the rails at home. The former almost incredible difference between the price of English and French rails no longer exists ; because that 48 }V(/rejudicial to the health of the population. At Pictou, in Nova Scotia, the inhabitants appeared more robust. The wages for ordinary shipwrights are 8.9. a day, and taking into consideration the cost of living, the working classes are as well off as in any part of Canada. In comparing the American and English operatives Wages in 1873. G7 or rather the English operatives when transplanted to the States, with the hands who have remained in the Old Country, it would seem that there is, as a rule, a higher development of skill in the individual operatives. The difference is attributable to the conviction that the present high rate of wages in the States could not be maintained, unless the utmost skill and diligence were put forth. The results which have followed from the reference Trades of disputes relating to wages to arl:)itration are a sign of the happiest augury for the future relations between employers and employed. It has been urged, on the part of the employers, that the working class will only accept the decision of arbitrators when it is favourable to themselves. In this, as in other respects, the organi- sation of the unions has proved beneficial. The influence which the more enhghtened workmen, acting as mem- bers of the executive committees of the unions, possess over their less instructed fellow-workmen, have been the means of securing obedience to every decision arrived at after careful investigation, conducted in an impartial spirit. Such influence becomes more important when the members of the trades unions are for the most part uneducated men. It is always more difficult for an employer to negotiate or to argue with a boiler- maker than with a fitter. The executive councils of the unions have entitled themselves to the gratitude of the employers of labour, by accepting the use of machinery, the substitution of which for manual labour becomes more and more indispensable with every advance in the standard of wages. v 2 68 Wages in 1873. It is not by encouraging useless strikes, or by making an attempt, which in the end must always be defeated, to sustain a vast body of woi^kmen and their families, when not in the receipt of wages, that the wire-pullers of the trades unions will best serve the interests of their clients, or enhance their personal influence among them. There is a wide field of use- fulness open to these captains of our great hosts of workmen, in which success is to be attained, not by war, but by diplomacy. The state of the trades, in which their clients are employed, should be carefully watched, and every variation in the prices quoted, every fluctuation in the cost of the raw materials should be noted. And here I may frankly admit that the proposal of the International for a universal strike con- tained a few grains of wisdom ; for it is clear that, if the cost of producing an article in England were so much enhanced by an advance of wages, that the foreign manufacturer would be enabled to undersell us in every market, it would be an act of self-destruction for English workmen to insist upon a rise, which would have the inevitable effect of depriving them of employment. In such a case an advance of wages can only be possible where the workmen in the competing countries agree to act in concert ; or where, by superior skill or machinery, the more highly paid workman is able to turn out a larger amount of work. Export It has been already pointed out that in England we s^tzer- have to contend against competition of t^vo kinds : — I. against the cheaper labour of the Continent on the laud. Wages in 1873. 60 one side ; and IT. against the superior natural resources of America on the other. While we occupy at the pre- sent time a highly favoured position, which has been attained not merely by the skill of our workmen, but by the administrative skill of their employers, and the gradual accumulation of an ample capital in their hands, the race with other great manufacturing countries is very close. The Swiss have entered into competition with our own manufacturers, both in the home and foreign trades. The exports of textile fabrics from Switzerland, as we learn from Mr. Gos- ling's report, have risen from 12,485,000/. in 1860, to 26,464,000/. in 1871, an advance of 112^ per cent. In this total the exports to the United States have risen from 509,000/. in 1862, to 2,159,000/. in 1872, in other words, over 324 per cent. In cheap silks and ribbons the Swiss are able to compete with the British producer in the English market ; and, to sum up the case, in the Avords of Mr. Gosling, * the advantages of Switzerland in competition with Great Britain are the use of water-power as a substitute for steam-power to the extent of upwards of 80 per cent., low wages, long hours of labour, and a minimum expenditure for management.' On the other hand, as an inland country, Switzerland has to pay heavy freights, the workmen are inferior in activity to oiu: own, buildings for ma- chinery are more costly, and, from want of capital, production is on a smaller scale than here. The balance, however, in the opinion of Mr. Gosling, was greatly in favour of Switzerland, and could not fail to become greater from day to day. 70 Wages in 1873. Such being tlie case as regards textile industry, Mr. Lowthian Bell lias recently pointed out, that, iu ores of the finer descriptions, the resources of the United States are unhmited, while in coal our own wealth is, in comparison, poverty. There is but one bar to the boundless production of minerals in the New World, tliat is to say, the want of hands to manufacture them. Liissiiiie. A large number of the working class in Germany have been fascinated by the fanciful theories of Lassalle. His system is founded entirely upon the pernicious principle that the State is to do everything, and the jjeople nothing for themselves. Karl Marx, as the successor of Lassalle, is the ruling spirit of the German socialists, and has become a prominent figure from liis connection with the International. The socialist journals in Germany delight to reproduce the pro- gramme and doctrines of that society. They make noisy professions of atheism. They applauded the in- surrection of the Commune in Paris. They disavow the warlike policy of Germany, and have endeavoured to substitute the community of class interests for the community of race, language, and country. It must not, however, be supposed that the number of these unpractical visionaries is proportionate to the noise w^hich they make in the world. The influence of socialistic doctrines is not so great in England as on the Continent, and it is weaker in America than in England. I hope, tlierefore, that no disposition may be manifested here to abandon the hopeful work of social, moral, and material progress for the pursuit of visionary and impossible schemes. Wages in 1873 71 The amelioration of the condition of the poor is not to be brought about by destroying the ancient fabric and foundations of our social and political system. It is easy to destroy, but most difficult to restore, the institutions created by past generations, in which there lived men not less great, and wise, and good than the most gifted of our own contem- poraries. English workmen are less easily deluded by tall talk and sophistry than the more excitable populations of the Latin race ; and I would earnestly invite them to apply their practical sagacity to the difficult yet hopeful experiment of co-operative industry. To return once more to the familiar axiom, the Education and price of labour, hke that of every other commodity, manual must mainly depend upon the relation between supply and demand. The wages of skilled workmen have risen, because skilled workmen are scarce. How shall we increase their number and improve their skill ? The answer is, by bringing recruits into our industrial army from a class of society which has hitherto exhibited too strong a prejudice against manual labour. The same aversion to handicraft of every kind exists in the United States and Canada. In America a skilled workman earns thirty dollars, a clerk only fifteen dollars a week. It is almost as difficult for a clerk to obtain a situation in JN^ew York as in London. A skilled workman can always command employment. It is unnecessary to dwell on the evils that must ensue from a dispropor- tionate increase in the non-productive classes of the community. Lord Bacon has truly said that a popula- 72 Wages in 1873. lion is not to be reckoned only hy nninbers, 'for a smaller number that spend more and earn less do wear out a greater number that live lower and get more.' My father's advice was often sought by parents anxious for the future of their sons. His counsel always was, tliat a young man, whose destiny it must be to make his way unaided through the world, sliould begin by learning a trade. It is a laudable ambition in a parent to endeavour to raise his family to a better station in life. He cannot bestow on his cliildren too high an education. But a wise man will be on his guard, lest the enjoyment of such advantages should render those occupations distasteful which afford the most secure and ample livelihood to those whose lot it is to labour. When justly appreciated, the condition of the skilled artisan should be as much esteemed as that of any other class of the community. He whose life is passed in useful service to his fellow men, whatever his special calling, holds an honourable station, and social dignity will ever be most effectually maintained by those who are the least dependent upon the favours of others. In conclusion, I would tender a few words of advice to my fellow-countrymen of the so-called work- ing classes, for whose welfare I am bound to feel the deepest solicitude. Their just claim to share in the benefits arising from a thriving industry has of late been liberally recognised. The earnings in many trades have been unprecedented. It should not be forgotten that forethought is an especial duty in a time Wages in ISIS. 73 of prosperity. At no distant period, the progress of our cominerce may sustain at least a temporary check. It will be sad indeed if the receding tide leaves be- hind it lai'ge multitudes of our highly-paid workmen without the slightest provision to meet a period of adversity. 74 LECTURE IV. PUBLIC ELEMENTARY EDUCATION IN THE UNITED STATES. Read before the Hastings Historical Society, December 1873. Among the many interesting lessons whicli may be learned by the Enghsh traveller in the United States, none are more instructive than those which may be acquired from a careful observation of the provision made for the education of the people. The democratic principles upon which the Gov^ernment is established, and which confer upon every citizen political power and responsibility, impose a corresponding obligation on the State to provide education for the people. The obligation has been nobly fulfilled. In the most advanced outposts of civilisation, on the farthest limits of the settled territories of the United States, the construction of the railway, and the establishment of the school are considered as the primary duties of the community. Every district is compelled by law to provide the necessary accommodation for the school population ; and public opinion is so strongly pronounced in favour of an efficient system of popular education, that legal penalties are not required. States. Elementary Education in the United States. 75 In England we have, until lately, been far behind Educa- . , ^ tional eta- the United States in relation to that most essential tistics, element of civilisation, popular education. The Ele- united mentary Schools Act of 1870 should have preceded, not followed, the Eeform Bill of 1866. It is now too late to recall the past ; and it will rather be the object of every enlightened patriot to do what in him lies to promote the success of the great work of education, which the Government has at length taken in hand. With this object in view, let us proceed to examine the educational institutions of America. In my recent short journey, I was fortunate in having the opportunity of seeing the most perfectly organised educational institutions in America : the public schools at Boston. I will commence with a summary of the more important educational statistics of Boston. The population, according to the census of 1870, numbered 250,701 persons, of whom 45,970 were between five and fifteen years of age. The aver- age number of pupils, belonging to day-schools of all grades, during the year 1871-2, was 36,000; and the average daily attendance was 33,500. Thus the average percentage of attendance at all the day schools w^as 92*5. The schools at Boston are divided into three classes, namely, primary schools, grammar schools, and the Latin school and English high school. The average attendance at the primary schools was 13,614 ; at the grammar schools, 18,312 ; at the high schools, 1,430. The ratio of the number of pupils belonging to the schools to the school population is 78 per cent. ; and as there is a law of the State of Massachusetts for 76 Public Elementary Education enforcing compulsory attendance, which, thougli mildly administered, is backed up by a strong public opinion, it may be assumed that the number of children attend- ing school in Boston represents tlie highest practicable result attainable by the enforcement of a strict law of compulsion. Dividing the children under instruction at the primary schools into a classification according to age, there were, of children of the age of five years, 2,447 ; six years, 3,275 ; seven years, 3,319 ; eight years, 2,772 ; nine years and over, 2,747. In the grammar schools the number of pupils between eight and ten years of age was 3,027 ; between ten and twelve years, 5,947; between twelve and fourteen years, 4,941 ; between fourteen and fifteen years, 1,596 ; over fifteen years, 1,110. Boys cannot be admitted to the public Latin school or the English high school before the age of twelve years. The age of admission into the girls' high and normal schools has been fixed at fifteen years. The schools are in session ten months in the year, and the pupils are strictly classified according to their attainments. When we compare the educational statistics of Boston with the state of public education in England, at the date immediately preceding the passing of the Elementary Education Act of 1870, we see how great are our own deficiencies, and what a formidable task lies before us, if we aim, as we ought to do, at the standard which has been reached in America. Accord- ing to the last report of the Committee of Council on Education, there were 1,336,000 scholars on an aver- age in daily attendance at school in England and in the United States. 77 Wales. The accommodation supplied by the existing Parliamentary schools would be sufficient for 2,295,894 scholars ; and it is assumed by the Educational Depart- ment that 3,500,000 of the population of Great Britain ought to be daily in attendance at elementary schools. The general diffusion of education of a superior order through a large population cannot be accomphshed immediately, nor without a large expenditure. In their liberal appropriation of the local resources for the maintenance of educational institutions, the people of Boston set us a good example. They have never shown an ignorant impatience of the taxation imposed for this purpose. The cost of the public schools of Boston in 1870-1 was, in round figures, 300,000/. Eather more than half the total expenditure was applied to the payment of the salaries of the teachers. The returns prepared by the School Committee of the city show a great increase of expenditure, as compared with the year 1867-8, when the total amount was under 200,000/. The two heads of expenditure which show the largest increase are the salaries of the teachers and the cost of new school-buildino-s. The increase is not attributable solely to the larger attendance at the schools. The expenditure in educating each individual child has increased from thirty shillings per scholar, in 1867-8, to thirty-five shillings in 1870—1, an aug- mentation which proves the determination of the people to make large sacrifices, in order to improve the standard of public education. The average expen- diture per scholar in attendance at the inspected schools in Great Britain in 1872 was 1/. 7s. Qd. If it 78 Public Elementary Education be the will of the English people, as I trust it niiiy be, to secure equal educational advantages for the rising and coming generation, they must be prepared for a proportionate taxation. The total income of our public elementary schools in 1872 was as follows : — £ Endowments 89,917 School Board Rates . 5,085 Grovernment . 755,049 Voluntary Contributions . 557,273 School Pence . 707,283 Other sources 31,466 Total . . 2,146,073 School I ^ow proceed to give a resume of the general twnsr regulations of the public schools of Boston. The teachers are reminded, in the first portion of the regulations, of their duty, ' in all their intercourse with their scholars, to strive to impress upon their minds, both by precept and example, the great importance of earnest efforts for improvement in morals and in manners, as well as in useful learning.' The morning exercises of all the schools commence with reading by the teacher of a portion of the Scriptures, to be followed by the Lord's Prayer, repeated by the teacher alone. The afternoon lesson is closed with appropriate singing. Instruction is given in good morals daily in each of the schools, and the principles of truth and virtue are faith- fully inculcated upon all suitable occasions. It is the duty of the instructors, as far as practicable, to exercise a general inspection over the pupils in respect of their moral conduct both in and out of school, and also while in the United States. 79 going to the school and returning home. Tlie morn- ing lessons of the grammar and primary schools com- mence at nine, and close at twelve o'clock, with a recess of twenty minutes in the middle of the session. The afternoon lessons commence at two, and close at four o'clock. Every scholar must have some kind of physical exercise each forenoon and afternoon. In order to keep ahve the patriotism of the citizens of the United States, annually, on the school-day next pre- ceding February 23, each master is required to as semble his pupils, and read extracts from Washington's ' Farewell Address to the People of the United States ; ' combining therewith such patriotic exercises as he may think advisable. According to regulations in force for the manage- ment of the primary schools of Boston, each school should contain, as nearly as possible, 49 pupils, which is intended to be the standard number. The actual average number is 4fi'7. The number of pupils in the grammar schools is much larger, varying from a maxi- mum of 1,016, to a minimum of 359. The number of teachers in the grammar schools is increased in such proj)ortion, that the whole number of pupils to a teacher is limited to 45. The subjects of instruction in the Subjects of primary schools are suited to the tender age of the tion. children, and include reading, spelling, arithmetic, and singing. Reading is taught by Leigh's phonic exer- Leigh's cises ; and the School Committee say that, ' Six years exercises. of careful experiment in several schools in Boston have shown the best results from this system. Pupils learn the sounds belonging to phonic type very readily ; and, 80 Public Elementary Education as those sounds are imclianging, the labour is much less than in gaining the mastery of a less number of letters, most of which are liable to variations.' Within six months, the ordinary pupils get through the second reader — a point which was never reached by the pupils taught in the old method in less than eighteen months. ' Is it not much,' they ask, ' to add a year to the practical duration of human life ? ' We had the pleasure of witnessing the process of instructing a class of very young children in reading, by Leigli's method. The task of the pupils appeared to be lightened in a remarkable degree. Instruction in the art of reading monosyllables appeared rather to resemble a lesson in singing. In the grammar schools of Boston, the common branches of an English education are taught, including writing, spelling, grammar, arithmetic and mental arithmetic, geography, natural philosophy, sing- ing according to Hullah's method, and drawing. The latter accomplishment has been only recently introduced into the pubhc schools of Boston. The services of a very able master from the School of Science and Art at Kensington were secured ; and all the teachers in the public schools were placed under his instructions. As the teachers have acquired a knowledge of art from him, they have in turn imparted what they have them- selves acquired to the pupils under their charge. The importance, from a political point of view, of maintaining a high standard of instruction in the grammar schools, has been fully appreciated in the United States. The Boston School Committee, in their report, declared that the condition of the grammar in the United States. 81 schools must always be a subject of solicitude. For the great mass of pupils, these must of necessity be the sole means of education. They are the academies and col- leges of the poor. ' When,' as they properly observed, ' we remember that the fabric of free government rests upon the support of all our citizens, and tliat the ignorant and the vicious have equal political power with the wise and good, w^e feel the responsibility that belongs to teachers and supervisors of instruction, and are impelled, not only to urge the bringing of all youth within the reach of good influences, but to provide for them the best and amplest training attainable.' The public Latin school of Boston — one of the Latin IT 1 • 1 • T • school. institutions already enumerated — is designed to give thorough general cultiu'e to boys intending to pursue the higher branches of learning, or preparing for professional life. Each candidate for admission must be at least twelve years old ; he must be able to read English fluently and correctly, to spell all words of common occurrence, and to write well and readily from dictation. He must understand mental arithmetic, the simple rules of written arithmetic, with reduction and fractions, both vulgar and decimal. He must be able to explain the terms most used in geography, and to state the leading facts. He must have a suflicient knowledge of English grammar to parse common prose. The studies at the Latin school embrace the followino; subjects and authors : — English : Scott, Goldsmith, Campbell, Wordsworth, Covv^per, Tennyson, Leigh Hunt, Sterne, Beattie, Morris, Hazlitt, Gray, Addison, Moore, Burns, Hood, Shelley, Eogers, Milton, Pope, G 82 Public Elementary Education Thomson, Collins, Colerivlge, Keats, Burke, Tyncliill, Dryden, Spenser, Thackeray, Lamb, Euskin, Shake- speare, Macaulay, Junius, Marvell, George Herbert, Byron, Carlyle, Channing, Ben Jonson, and Bacon. American : Hawthorne, Longfellow, Irving, Bryant, Prescott, Holmes, Lowell, Whittier, Emerson. French : Eacine, Corneille, Moliere, Eousseau. Latin : Ciesar, Ovid, Quintus Curdus, Virgil, Cicero, Lucian, Plutarch, Sallust, Horace, Tacitus, Lucretius. Greek : Honier, Isocrates, Euripides, Demosthenes, Plato, Thucydides, Sophocles, and Aristophanes. The list of studies in- cludes arithmetic, algebra, plane geometry, logarithms, plane trigonometry, physics, mechanics, chemistry, astronomy, music. The Latin school, as may be inferred from the list of studies and authors, affords to the pupils a thoroughly liberal education. At this school, the eons of all the wealthiest citizens of Boston are educated, side by side with youths of their own age, who come from a very different grade of society. No disadvantage is found to arise from these social inequalities ; and, doubtless, the democratic institutions of the country contribute greatly to facilitate the fusion of all classes of society in a common institution for a common object. From the harmonious intercourse of all classes in the pursuit of learning, may we not learn some lessons, to be applied with advantage to ourselves ? Here, in England, from the earliest age, the various grades of society are kept apart ; and thus it happens that so little is done to redress the inequalities of fortune by social kindnesses and by extended sympathies. If the children of the in the United States. 83 rich and the poor knew more of each otlier in earher life, artificial distinctions would be less strictly regarded. In Switzerland it is tlie great object of tliose in easy circumstances to ignore all social distinctions, and to keep tlie workman and the employer on a footing of social equality. Tliongli poor the peasant's hut, his feasts though small, He sees his little lot the lot of all : Sees no contigaous palace rear its head, To shame the meanness of his humble shed. In such a community as our own, a wider diffusion of educational advantages would have the happy effect of assuaging the bitterness of envy, and imparting to a greater number the advantages of our advanced civili- sation. As no other means exist for obtaining an equally perfect preparatory education, the Latin high school has become one of tlie most important contribu- tories to the Harvard University. Almost all the young gentlemen of Boston receive their education at the Latin high school, and at Harvard. The English hig;]i school is another valuable educa- English »""" "'& hi oh tional institution in Boston. It has been established school. to afford to tliose boys who have completed the course of study prescribed for the grammar schools, the op- portunity of pursuing more advanced studies, and of completing a liberal course of education in English literature. Candidates for admission must be twelve years of age, and must pass a satisfactory examination in spelling, reading, writing, English grannnar, arith- metic, modern geography, and the history of the United States. The school holds one session daily, from 9 a.m. o 2 84 Public l-'Jcnii'iilary Edncatinn until 2 r.M. The following subjects are inclutled in the scheme of studies. In mathematics : intellectual arith- metic, book keeping, algebra, geometry, trigonometry, navigation, and descriptive geometry. In English literature : a course of reading from the best authors, history, antiquities, philology, and composition ; and in French : grammar, conversation, and composition. The elements of German are also taught. In physical science, the scheme embraces navigation, astronomy, with the practical study of the stars, and the explana- tion and use of instruments, mechanics, chemistry, mineralogy, anatomy, and physiology. The English high school of Boston, in its character, aims, and orga- nisation, is unique. There is no other school of the same type in America. It is intended to offer to those who are preparing for a commercial career the advan- tages conferred in the Latin school on students pre- paring for a professional career. It is intended to erect new and beautiful buildings in Boston for the high and Latin schools, the former to contain a thousand, the latter five hundred pupils. Girls' high One otlicr educational institution yet remains to be described — the girls' high and normal school. This institution affords to girls who have completed the course of studies pursued at the grammar schools the opportunity for higher intellectual culture, by a "thorough course of advanced study. It qualifies for teachers those who desire to make that calling their profession. Candidates for admission must not be less than fifteen years of age. They must pass a satisfactory examina- tion ill spelling, reading, waiting, aiithmetic, English in ihe United States. 85 grammar, geograpliy, and history. The course of study extends over a period of three years, and includes physical geography, algebra, geometry, trigonometry, natural philosophy, astronomy, geology, chemistry, mineralogy, and botany, music, drawing, English lite- rature, French, German, Latin, intellectual and moral philosophy, history, penmanship, book-keeping, and instruction in the theory and practice of teaching. The School Committee of Boston, while highly commending the general course of study pursued in the normal school, as an education for the pupils themselves, complain that the institution has been a failure as a seminary for training up teachers. They speak strongly of the advantages of the higher branches of education in all circumstances and in all countries, especially in the United States, where there are few persons whose position is secure against the hazards of commerce, and no one can predict the coming fortunes of any family. ' The delicately nurtured girl may be obliged by some turn of affairs to become a teacher, and the energetic daughter of poorer parentage may become the possessor of wealth. If they have been judiciously trained, they can exchange places without great difficulty.' Hence they rejoice ' that the children of the rich and poor should meet under one roof to receive a training that is best for all.' While the School Committee urge the importance of improving the system of educating the girls, so as to adapt it more effectually to the preparation of the students for their intended vocation as teachers, the excellence of the education given in the normal school, 80 Public Elementury Eihication from every other point of view, is iiiuleniablc. An inspection of the examination pa[)er8 in the sciences, mathematics, history, and modern languages, will show what a high standard of attainments has been reached. A visit to the schools of Boston, imd especially to the normal schools, will present to the traveller one of the most interesting spectacles which can fall under his notice in Ameiica. He will observe the size and convenience of the buildings, the happy faces, good behaviour, and intelligence of the pupils, the graceful manners and intellectual power of the teacheis, as evinced in their demeanour, their conversation, and their power of teaching. In America the system of pupil-teachers is unknown. The normal schools afford tlie only opportunity of preparing teachers for the elementary schools and the grammar schools. In a paper by Miss Brady, read before the Social Science Association, we are informed that the majority of the teachers in the high schools are men who make teaching a profession. The others are women, most of whom teach only for a period of from two to eight years preceding marriage. Women teachers are now employed in preference to men. With the same experience and attainments, they teach better than men, and manage their pupils with more tact. Few women, however, are as yet fitted to teach in the higher departments of study. They do not generally succeed, at the head of a school, in managing their women assistants as well as men. Women do not so readily submit to the authority of other women as they do to the authority of men. They have not as in the United States. 87 much influence in a community as a man lias. They are not so readily received as visitors in tlie famihcs, and this social influence is found to be of great ad- vantage in giving character and popularity to the school. Where women do precisely the same work as men they get less pay, but a more enliglitened spirit on this subject is beginning to prevail. Teaching in America is for the most part a temporary occupation, followed chiefly by young people between the ages of eighteen and tliirty. How much tlie schools lose by the immaturity and inexperience of the teachers it is difficult accurately to estimate ; but that they gain by the freshness and vigour of these young minds is unquestionable. The teachers take a far higher posi- tion in society than teachers occupy in most other countries, and the success of the public schools is mainly due to this cause. It may be worth while to mention that the number Teachers. of teachers in the schools of Boston is 951, of whom 123 are males and 828 females. The total expenditure for the salaries of teachers is 16,000 dollars, ffivino; an average income of 200/. a year. Their profession is more liberally paid than in tliis country, though a con- siderable allowance must be made for the additional cost of living. It has been already pointed out that in America the teachers are obtained from a higher grade of society than that which has hitherto supplied the teachers in our own elementary schools. An experiment has open tried by the Bishop of Chicliester, under whose auspices Bishop Otter's college has recently been re-opened, to 88 Public Eleinentary Education attract candidates from the same class in our own country. On tliis subject some most apposite remarks from tlie last report of Mr. Cowie, some time Inspector of the Training Colleges and now Dean of Manchester, will be read with attention. 'The special training,' he says, ' of our teachers is for a wide, necessary, and somewhat humble work, but one of immense importance. It is laying the foundation of knowledge, developing the powers of all the children of our humbler classes, giving them the key of knowledge, initiating them into the vast field of self-improvement, which is open to all ; teaching them to benefit by the experience of past generations as well as of their own, to be able to ex- press their own ideas intelhgibly, and to reason, and reflect, and draw their own conclusicms.' ' Although such objects of education are represented by the homely names of reading, writing, and arithme- tic, it ought never to be forgotten thati^eading — intelli- gent reading — is the entrance to the accumulated stores of human wisdom ; writing is eventually the power of expressing ideas, by which a man is brought to think what he means to say, and to judge whether he has expressed himself with accuracy ; while arithmetic is the logic of the million ; it is, when intelligently taught and thoroughly mastered, the power of calculation, i.e., of predicting and verifying consequences.' Let no one say that there is not, in education in these subjects, in the hands of a clever teacher, ample scope for the highest aims. We may, with Lord jkicon, summarise the scope of education in a single in the United States. 89 phrase : ' Reading inaketh a full man, conference a ready man, and writing an exact man.' If our children in our elementary schools were well prepared for the business of life, we should have a shrewd intelhgeut people who could not be imposed upon by quacks, whether social or political, and we should look with confidence to the solid improvement of the social condition of the labouring classes, and to their general loyalty and steadiness of character. Those whose task it is to render the children of the poor fit for the stern battle of life, must, with rare exceptious, be content to follow the path of duty un- seen, unheard, and only appreciated within the limited circle of their parish or their town. It behoves them, therefore, to learn that difficult lesson for a man con- scious of ability, how ' to banish the canker of ambi- tious thoughts.' They may, however, remember that, inasmuch as the power to do good to others is the worthiest aim of human ambition, the humblest teacher may not go altogether unrewarded. At a time when compulsory education is constantly Truancy. under discussion iu this country, it cannot but be especially interesting to watch the result of experi- ments in other countries. By an Act passed in 1850, the cities and towns of Massachusetts were empowered to secure the attendance at school of children between the ages of six and fifteen years. The offence of ti'uancy was made punishable by a fine or by commit- ment to a house of correction. In 1852 the term of commitment was limited to one year, and three truant officers \\ere appointed. Complaints against truant 90 Public Elementary Education children are lieard, not in open court, but in a ])rivate room, and the proceedings are divested as far as pos- sible of a criminal character. Generally the parents or friends of a truant avert the judicial sentence by placing the child in some educational institution. In 18G2, children wandering about the streets were subjected to commitment to the House of Eefor- mation for two years. It was found that the increased stringency of the law had exercised a most salutary effect. In 1866, pursuing the policy already adopted, with so much advantage, a committee was appointed to inquire into the working of the law. They recom- mended that the law should be extended, so as to include additional numbers of nesflected children. But the com- pulsory powers, so far as Boston was concerned, were at the same time withdrawn. The mistake which had been committed was soon acknowledged, and in 1867 the compulsory powers were restored. The revival of the former legal powers has been attended with eminently satisfactory results. The only complaint now urged relates to the cha- racter of the House of Eeformation at Deer Island, which was intended as a penal establishment, and not for juvenile delinquents who have been convicted of no offence against the law. The truant children are charged vvdth no crime. They are simply children suffering from neglect, in circumstances exposing them to the influences of ignorance and crime. The truant law is designed for their relief, and to give them the nurture, care, and education of a home and a school. It is, therefore, argued that a separate establishment 171 the United States. 91 should be })rovided for the reception of the children committed for truancy. The description which has been given of the prin- cipal schools maintained in Boston, at the public expense, will have awakened many reflections in an English audience. We admire the number and completeness of the schools. We are gratified to find that the most serious of the difficulties we apprehend or have actually experienced in this country — I mean the unwillingness of the parents to send their children to school, and the inability of children to remain long enough to acquire a liberal education — have been scarcely perceived in the United States. We are amazed at the willinorness of the public to sustain institutions so costly. But we apprehend that it would be impossible to imitate in this country the good example of the American people. It is clear that the success of the public schools in Boston is partly due to the fact that they are equally used by all classes of the community. The sons of gentlemen of the highest standing are educated in the Latin high school, where a better education can be obtained than at any private seminary. Happily, a general disposition is manifested among all classes to avail tliemselves of the opportunity of obtaining a superior culture. Hence, the high schools are not regarded with the same jealousy Avliich would be felt if they were frequented only by the privileged few. All are willing to add to the efficiency of schools from which they hope, sooner or later, to derive some personal advantage. It is not impossible that the creation of o;ood public schools in every town and county in England 92 Elementary Education in the United States. might, in lime, lead to tlie general use of such schools by all classes. Should such a change take place, it would materially tend to remove class prejudices, and to abolish unnecessary, and sometimes painful, social distinctions. We in England should aim at the stan- dard of excellence which has been reached in Boston, where every child is gathered into the fold, and care- fully instructed in the rudiments of learning, and where the development of education in the highest branches is diligently pursued. In the cities of New York and Boston, it is delightful to see the streets and omnibuses crowded in the afternoon with boys and girls, of the age of fifteen, sixteen, and upwards, carrying each a package of books, on their way homewards from school. The conversation of these young learners often relates to the studies of the day, and leads to many earnest and animated discussions. Without popular instruction, free government is impossible, and house- hold suffrage a delusion : while in an educated people there will be no credulous belief in the fanciful theories of socialism, nor shall we have cause to fear lest the blessings of political liberty be recklessly abused. 93 LECTURE V. THE DUTIES OF THE CHURCH IN RELATION TO THE LABOUR QUESTION. Read before the Hastings Church of EnCxLand Christian Association, December 1873. I iiAVE selected for the subject of my address this evening ' The Duties of the Church in Eelation to the Labour Question.' Tlie problem is most important, and the solution full of difficulty. Many clergymen doubtless would prefer to remain silent rather than offer advice to their flocks on these matters. Such an alternative cannot, however, be accepted. The need for the advice of the minister of religion on every question of real difficulty, whether in relation to things secular or to things spiritual, is most felt by the least instructed members of the Church. It is in the rural districts especially that the impartial advice of the clergyman, too often the only educated gentleman in the parish, is most essential. It is not possible for the work of the Church to be carried forward among an ignorant and needy population, unless the clergy can contribute to the relief of bodily as well as spiritual wants. The parson, like the missionary, must acquire a spiritual influence, by showing his superior knowledge and judg- ment in relation to matters affecting the daily life, and lying within the comprehension and observation of the people. 94 The Duties of the Church Difficulties I ]iavc stated tliat tlie iiitcTvcntioiiof tlie clerixvman ot rural >-» cKrgy. as ail udviser is more likely to be sought by a rural than an urban community ; and it is equally certain that tlie mediation of the clergyman presents exceptional diffi- culties in the case of differences arising between the farmers and the labourers in their employ. The clergy- man in the country is mainly dependent on the landed proprietors and the well-to-do farmers for those volun- tary contributions which enable him to carry on the work of education, to reheve the wants of the poor, to maintain the fabric of the church, and to conduct the services with appropriate order and dignity. To make a stand against the prejudices or the interests of his most powerful friends is a task which may require, on the part of the minister of a country parish, a high degree of moral courage, and possibly of self-sacrifice. Oil the other hand, if the clergyman should unconsci- ously permit his judgment to be biassed by the desire to conciliate those from whom it is disadvantageous to differ, and if he should accordingly fail to do justice to the legitimate claims of the poorer members of his flock, he will no longer retain that influence over their affections without which it is impossible to carry for- ward his more important and essential work. Great difficulties of this kind have been of late experienced in Norfolk and Suffolk, and, as I am informed, in parts of Oxfordshire also ; localities which I mention more par- ticularly, because I have received information from clerical friends in those districts, relating what has passed in their own parishes, which will serve to illustrate the state of affairs elsewhere. In Norfolk the agitation in Relation to the Labour Question. 95 among the labourers for an increase in their wnges has been opposed by many among tJie local clergy. I am unable to offer an opinion as to the claims of the agri- cultural laboui'crs in that part of England to an increase of pay ; but this is certain, that the ex parte statements of a band of agitators had excited high expectations among labourers, and that tliey experienced the most bitter disappointment whenever they found the clergy uniting with the farmers to oppose their demands. It cannot be doubted that much harm may be done by reckless misrepresentations, addressed to an unthink- ing and imperfectly instructed auditory. The same easy means of winning the popular favour has been adopted by the demagogues of every age. Shakespeare, in liis Henry the Sivth, has drawn a picture of Jack Cade, which might pass for the portrait of many of liis successors in the nineteenth century : — ' Tom King,' Cade is represented to have said, ' is brave, and vows reformation. There shall be in England seven halfpenny loaves sold for a penny ; the three- hooped pot shall have ten hoops ; and I will make it felony to drink small beer ; all the realm sliall be in common, and in Cheapside shall my palfrey go to grass ; and when I am king, as king I will be — ' All. — ' God save your Majesty! ' Cade. — ' I thank you, good people : there shall be no more money ; all shall eat and drink on my score ; and I will apparel them all in one livery, that they may agree like brothers, and worship me, their lord.' Agitation, however, among the labouring class should not in all cases be discouras-ed. Previous to 96 The Datie-'i of the Church the Education Act of 1870, and before a stimulus liad been given to the dormant energy of tlie agricultural labourers by the exhortations of Mr. Arch, the popu- lation of our more secluded districts were in a lamen- table condition of apathy and dependence. If, then, it be the duty of the Church to offer dis- criminating advice to the poor upon the labour question, where are the clergy to look for a sure foundation, upon which they may venture to justify an authorita- tive opinion on the merits of a controversy which, in a practical point of view, is of the highest importance ? It is the duty of the clergy to insist on a large and generous view of the claims of the working man on the one hand, and, on the other, to encourage the poor to live contented Avith the lot in which by Providence they have been placed. The latter duty — the duty of sub- mission — it is not at all times easy to perform. All men cannot be leaders, and few among the ambitious critics of those in authority know anything of the re- sponsibilities and the difficulties of their rulers. This painful lesson of subordination it is the duty of the Church to inculcate ; and in the midst of the vague aspirations which influence the masses of the working people in our day, many will be found to rebel against such teaching. ' Socrates,' says Lord Bolingbroke, ' used to say that, although no man undertakes a trade he has not learned, even the meanest ; yet everyone thinks himself qualified for the hardest of all trades — that of government. He said that upon the experience he had in Greece. He would not change his o])inion if he lived now in Britain.' That which is true of poli- in Ilelation to tlie Labour Question. 97 tical government is not less true of industrial and com- nercial organisation. The guidance of autliority and superior judgment are essential, where the skill and phy- sical powers of vast numbers of men are to be combined for the purposes of manufacturing ])roduction, or for the execution of the great conceptions of the architect or i\\e engineer. Agricultural operations are generally conducted on a humbler scale ; but here, too, the directing mind and the resources of capital are equally essential to success. The advisers of the rural poor in matters spiritual Wages -,,,,-,, , settled by must not only teach them the duty of contentment and general subordination, but must also be prepared to offer them counsel wdiere they are seeking to improve their worldly position. The last may appear to present in- surmountable difficulties, and a delicate and hazardous task assuredly it is. Fortunately for the clergy, the general principles which determine the rate of wages are amongst the most clearly-established doctrines in the science of political economy. The accuracy of the rules laid down by Adam Smith has been con- firmed by the long and wide experience of the largest employers of free labour ; and the able waiters who have followed their great teacher into the same field of inquiry have, in the main, repeated his doctrines, their own contributions to the literature of the sub- ject consisting chiefly of additional illustrations. It must be the earnest desire of those, to whom is committed the spiritual instruction of the people, to protect the masses of our labouring poor from the pres- sure of misery and want. A struggling and necessi- H 98 The Duties of the Church tous peasantry ^vill be too much absorbed, in tlie luird stnijTo'le for existence to receive or to understand tlie spiritual exliortations of their pastors. The general principles of the science of political economy cannot be applied to special and local circumstances, unless the progress of trade, the modification in prices, and the comparative cost of labour in other places, be from time to time ascertained. It is accordingly essential to a complete understanding of the problems which may arise in connection with the demand for increased wages, that those to whom the working people are disposed to look for advice should carefully watch the course of events. The Economist must be studied as well as the ' Concordance.' A technical knowledge of manufacturing industiy is not required in order to form an opinion as to the validity of a claim for an advance of wages. The collation of the facts adduced by the contending parties, and the formation of a sound judgment on the merits of the question at issue, require a fair and impartial mind, rather than special technical experience. Most valuable services have been ren- Mr. Rupert dercd by Mr. Eupert Kettle, a County Court judge, and a gentleman without any practical knowledge of manu- facturing industry, in composing the differences between masters and workmen in the coal and iron trades. There is no reason why the same work of practical beneficence should not have been performed by a clergyman. It may be that these inquiries, from their very nature, are far removed from the sphere of thought in which most clergymen are engaged ; and it would be unreasonable to expect that the remarkable capacity in Relation to the Labour Question. 99 for apprehending these subjects, disphiyed by Mr. Kettle, should be found in every minister of the Church. On the other hand, in so large a profession there must be men of the most diverse qualifications. Some may be specially gifted for contemplation, others for preach- ing, others for practical beneficence in the ordinary affairs of the word. Each of these has his own work to do. Only let it be recognised that a clergyman should not necessarily be limited to the pulpit, the study, and the schoolroom ; and that occasions may arise when he will be truly in his place when occupied in assisting his people in the solution of the practical difficulties which occur in daily life. The advisers of the working man, if it at all times clearly appear that their counsel rests on a sound basis, will have no cause to fear that they will lose their influence by giving a verdict against the workmen. Mr. Thomas Hughes and Mr. Kettle have not ceased to be trusted counsel- lors ; because they have been strictly impartial. The labourers of England well know that — Thrice is lie armed that hatli his quarrel just, And he but naked, thougli locked up in steel, Whose conscience with injustice is corrupted. There is another lesson to be learned, more espe- cially by those on whom has been bestowed the blessing of means. Say what we may on the political economy of the subject, however strongly we may justify on legal and political grounds the strenuous defence of the rights of property, to the poor and needy who cannot understand political economy, legal principles, nor politics, there must be an apparent injustice in the H 2 100 The Church and the Laboiir Question. unequal distribution of wealth among the various classes of society. The wealthy can only make their advantages tolerable to the poor, by freely applying their resources to purposes which are beneficial to society at large. The most persuasive teachers of socialism are those whose wealth is employed in the gratification of vicious tastes, in sensual indulgence, in selfish pleasure, or in personal ostentation. The vindication of the rights of property can only be successfully undertaken by those who follow that wise opinion of Lord Bolingbroke, tliat ' a life dedicated to the service of our country admits the fidl use, and no life should admit the abuse, of pleasures ; the least are consistent with a constant discharge of our pubhc duty, the greatest arise from it.' 101 triides. LECTUEE VI. CO-OPERATIVE PRODUCTION. Address to tue Annual Conference of the Co-operative Societies, held at Halifax, April 6, 1874, It is scarcely necessary to insist on the vast develop- ment of our Co-operative organisation. The tabular return, recently presented to Parliament, on the motion of Mr. Morrison, one of the most earnest and judicious friends of co-operation, sets forth the statistical result in a most remarkable enumeration. The number of Co- co-opera- operative Societies in England and Wales is 746 : the [4°air number of members 300,587 ; of whom 60,000 were admitted, and 32,000 withdrew in 1872, The share capital amounted at the end of 1872 to 2,784,000/,, and sums of 10,176,000/, were paid and 11,379,000/, were received during the year in cash for goods. The disposable net profit realised from all sources amounted to 807,748/. The enormous sums I have enumerated give proof that the principle of Co-operation, in its application to the Distribution of Commodities among consumers, is convenient and practicable, and effects a considerable saving of expense. It cannot, therefore, be doubted that the co-opera- tive system tends to diminish the business of tiiat large 102 Co-operative Production. class who eari) their hvelihood in the retail trade of the coimtr3\ As the co-operative system is more and more generally adopted, many, who might have earned an income as shopkeepers, must seek out another career. In the transition stage some suffering may be ex- perienced by individuals. I trust, however, that changes will proceed gradually ; and that there may be ample time for the absorption into other channels of the labour and capital displaced by co-operation. Further, it is to be observed that the retailers may, by a better system of trading, find themselves able to afford their customers the same advantages which they now receive at the co-operative stores. Eetail prices have been enhanced by the unwholesome system of long credits. The business of tlie individual retailer has generally been so small, that a livelihood could be earned ovUy by making a high profit on a limited number of transactions. If the retailer's business were concentrated in fewer hands, and the credit system were abolished, if the sound commercial principle were adopted of looking for a large aggregate gain by means of small profits but quick returns, and by making a small percentage on a large turnover, the public might find that the exceptional advantages it now offers need not be confined to the co-operative system. The main purpose of the friends of the co-operative movement is not so much to concentrate the whole business of supplying the public at a few stores, under the control of that special organisation which they direct, as to secure to the great body of consumers the Co-operative Production. 103 means of obtaining the necessaries of life at the lowest practicable cost, and of the best quality. So long as this object is attained, it matters not whether it be accomphshed through the co-operative associations, or by the agency of the ordinary retailer. The management of the Co-operative Store is a task not without difficulties. The members who Avithdrew from these societies in 1872 — the returns for 1873 are not completed — were half as many in number as those who joined. The retailers may, therefore, reasonably infer that they are competing with rivals, who have serious problems to solve. Instead, therefore, of idly complaining, they must meet the competition of the Co-operative Stores by an improved organisation of their own trade. If they succeed in holding their own, as I confi- dently anticipate that they will, the community will be the gainers, and there can be no other feeling but one of good-will for those, who are competing with each other, to promote the advantage of the general body of consumers. I pass from co-operative distribution to Co-opera- tive Production. The equitable distribution of profits between labour, capital, and the inventive faculty, which creates, and the commercial and organising faculty, which conducts a business, is the most important, as it is undoubtedly one of the most difiicult, of the social problems of our age. There are doubtless many persons in this hall, who inequniity '' , , of wealth. tliink that, in the actual organisation of productive in- dustry, there is a disproportionate assignment of profits 104 Co oj^erative Production. to capital. As instances of individual success are multiplied, so this conviction of tlie injustice of the existing order of things in the commercial world will be strengthened and confirmed. Whatever political economy may teach, however easy it may be to explain the operations of trade, between wealth and necessity there still exists a contrast, which mingles with the possession of riches a dark alloy, and cannot but make the burden of the poor man harder and heavier to bear. We may be able to prove that the capital of the large capitalist ordinarily receives but a moderate return, and indeed is freely employed on easier terms than a needy man would exact ; but it is not less true that, measured by the strict necessities of life, an accumulation of wealth must, under all circumstances, be a super- lluity. The sentiments, so naturally aroused by the spectacle of this ungracious contrast between wealth and poverty have found an illustrious, though not un- prejudiced, exponent in the poet Wordsworth : — Slaves canuot breathe in England — yet that boast Is bnt a mockery ! when from coast to coast, Though fettered slaves be none, her floors and soil Groan underneath a weight of slavish toil, For the poor many, measured out by rules Fetched with cupidity from heartless schools, That to an idol, falsely called ' The Wealth Of Nations,' sacrifice a people's health. Body and mind and soul ; a thirst so keen Is ever urging on the vast machine Of sleepless Labour, 'mid whose dizzy wheels The power least prized is that which thinks and feels. Socialism is the protest of labour against the un- equal distribution of the profits of production ; but Co-operative Production. 105 the system of absolute equality is against the law of nature. Whatever poets, sentimentalists, and agitators may say, there cannot be equality in a society com- posed of individuals unequally endowed in knowledge, natural aptitude, and in physical and mental power. But while there cannot be equality, there must be justice. Viewing the subject in the light indicated in these Co-opera- observations, I earnestly wish success to the experiment auction. of adapting the co-operative principle to productive industry. In a co-operative mill, or workshop, or farm, the producers unite the double functions of capital and labour. The handicraftsman sits in judgment on the claims of the capital provided by his ow^n thrift and past labours, and while he is not likely to appropriate an inadequate rate of interest to a fund obtained from such a source, he cannot, at the same time, apportion too much to capital, without doing an injustice to himself in another capacity. If it be practically developed on an extensive scale, co-operative production ought to save many disputes concerning the rates of wages. In the co-operative establishments there cannot, in the nature of things, be any contention between a body of workmen and an individual, whom they regard with unfriendly eyes as a selfish monopolist. Nor will the benefits be confined to co-operative establishments alone. They will ameliorate the relations between employers and employed in cases where, as it commonly happens, the confiicting interests of capital and labour are represented by different individuals. All contentions on the ques- tion of wages will be more easily adjusted, when the 1 OG Co-operative Production. capitiilist is enabled to refer the labourer to the rates of wages prevaiUng in co-operative establishments, where they have been determined, not by a single individual, suspected of being without sympathy for the labourer, but by those very men who, in the capacity of workmen, become the earners of wages, fixed and paid by themselves. A Stan- The desideratum in all laboui" disputes is a standard, waoos re- sct up by au impartial tribunal, by which it may qiiiioc. readily be decided what constitutes a fair rate of wages. When co-operative production has been introduced into all branches of industry successfully, and on a sufficiently extensive scale, we shall then have the universal gauge or measure of the workman's rightful claims. From the day when the workman will take his part in the deliberations which accord to capital its fair rate of interest, and to the wage-earner his due ; from the day when the workman may count with certainty on a just and equal participation in the profits of every enterprise in which he is engaged, in proportion to his merits ; we may venture to hope that strikes will cease, and that workmen will be content to devote themselves to the successful prosecution of the industry in which they find their employment. If it should appear an exaggeration of the powers of human nature to adopt the principles on which Fourier insisted, and to regard all labour as a pleasure ; it is possible to conceive conditions in which labour would appear more alluring and attractive than hitherto. The labourer might have more satisfaction in working under the direction of persons selected by himself. Co-operative Production. 107 than he now experiences under the authority of an employer, upon whom he is entirely dependent as the distributor of wages. It has been asserted by prominent advocates of the labour interest that among capitalists there is a universal desire to acquire wealth, and but little disposition to pay due regard to the rights of others. There may be cases in w4iich these allegations are true, but they do not correctly represent the general tone and temper of the employers of this country, among whom a higher spirit prevails than some ill-natured critics are ready to allow. In France and Germany similar representations have gained many credulous converts. In those countries, and especially in the former, there is much hostility between masters and men. Even when kind and considerate acts are done, they are regarded with suspicion, and are not accepted as the fruits of a generous impulse, or as meriting grateful recognition. Happily there is no such hostility of class and class in this country. That it does not exist is con- clusively proved by the support given by multitudes of working men at the recent general election to Conser- vative candidates, who, among other claims to favour, are supposed to be the chosen defenders of the rights of property. One thing may unhesitatingly be affirmed, that the disposition to be liberal towards workmen is developed, as a general rule, in proportion to the extent of the business and the capital of the employer ; that there is the most intense love of gain among certain smaller employers ; and that some of the least generous 108 Co-operative Production. members of the class are those wlio liiive luuat recently raised themselves from the capacity of workmen to that of employers. This is easily explaiued. Those who have been nursed in ease and security from care, may well afford to deal in a more generous mood with their dependents. It has been alleged that in England the class of ml!nox!i persons is gradually being diminished, who without otiand. large means enjoy the advantage of holding a position of independence. Theirs is an order essential in a happily constituted society, as the connecting link between the rich and poor. They are defenders of the rights of property, while their modest and frugal households present no painful contrasts to the condition of the less independent wage-earners among whom they hve. It is said that the monopoly of capital is gradually leading to the extinction of the small farmers and shopkeepers, and that there is a gloomy prospect of a society, in which a painful gulf will separate the privileged few from the mass of the community. What does the recent Census teach on this subject ? It is true that the number of large farms is increasing, and the acreage of farms under one hundred acres diminishing, but the process of change is slow. The number of farms of 200 acres and upw^ards, in 1851 and 1871, is within a fraction the same ; and it is a most remarkable circumstance that, while the average size of the farms in seventeen representative counties of England was ascertained to be 152 acres, the average size of the farms of the United States, according to the Census of 1870, was 154 acres. Co-operative Production. 109 There is in the United States a boundless territory- available for agricultural occupations, and the laws offer every facility for the purchase and transfer of land. We may therefore safely infer that, as there is a remarkable coincidence in point of size between the farms of England and the United States, the acreage has in each case been determined by considerations of convenience. If smaller holdings had been found to offer equal advantages, no obstacle would have been raised on the part of the landowners to a more minute subdivision. The average size of farms has been determined by long experience, and has been settled as between landlord and tenant by a countless number of inde- pendent negotiations, each party to the bargain looking mainly to his own interests in the transactions. Hence, so far at least as agriculture is concerned, there appear no sufficient grounds for the assertion, that there are impediments here — which are not found elsewhere — to the existence of a class of farmers cultivating small holdings, but not furnished with capital enough to do justice to a large extent of land. No doubt it would be a benefit to society that capital should be distributed among a greater number of individuals ; and it is because co-operative pro- duction would tend to promote that result that its development is so earnestly to be desired. Let me not, however, be misunderstood. There is a power for good in large accumulations of capital in the hands of a single individual, if he be steadfastly determined to make a right use of his resources. It is 1 1 Co-operative Production. by such men that some of the most judicious operations have been caiTied out in this country for developing the mineral resources of an untried district, for the advancement of agriculture by costly drainage, for the comfort of the poor by the erection of convenient dwelling-houses, for the improvement of our towns and cities by the destruction of unwholesome habitations and the erection of dwellings furnished with all the contrivances of modern sanitary science, and for the extension of the boon of railway communication into thinly-peopled districts. Works such as these, however profitable in the long run, generally involve a protracted lock-up of capital; and the ordinary investor, who cannot afford to lose for a long period the interest upon a comparatively slender capital, is slow to undertake them. Difficulties Apart, liowcvcr, from such exceptional cases, of co-oper- ^ ^ ative the argument in favour of a more equal partici- oroanisa- tion. pation in profits may be admitted as theoretically incontrovertible. The Co-operative system of produc- tion leads us towards that consummation which is so devoutly to be wished. At the same time, while highly commending the system in principle, it cannot be denied that in its practical application there are grave difficulties. In deliberation the opinions of many counsellors serve to establish sound conclusions in the mind ; but when you proceed to carry out a decision thus arrived at, when you have to govern and administer, all experience proves the infinite superiority of indivi- dual over corporate management. ' There be three Co-operative Production. Ill points of business,' says Lord Bacon — ' the preparation, the debate or examination, and the perfection. Wiiere- of, if you loolv for despatch, let the middle only be the work of many, and the first and last the work of few.' The following opinion of Mr. Erastus Bigelow, of Massachusetts, quoted by Mr. Harris Gastrell, may be cited in support of the view I have ventured to express : — ' The Corporation system has been a serious hindrance to the proper diversification of our manu- factures I will point out briefly some of the disadvantages. When men who are occupied with other pursuits decide to invest capital in manufac- turing corporations it is usually done on grounds of general confidence. They invest, because others are in- vesting. They believe, without exactly knowing why, that such investments are safe, and will be profitable ; or they follow the lead of some friend, in whose know- ledge and judgment they confide. They do not act on their own acquaintance with the nature and require- ments of the business ; for such an acquaintance can be made only by careful investigation or actual ex- perience. The natural consequence of all this is that capital for the extension of old or the projection of new manufacturing enterprises can seldom be ob- tained at those times when it is most needed and micjht most profitably be employed. This single feature of the system is fatal to any true and healthy progress under it. ' The capital thus raised must be expended. An agent is employed and enters on his work. Those 112 Co-operative Production. capitalists who have invested under the stimulus of higli profits are impatient for results, and urge him to hasty action on ill-considered plans. A sudden and unnatural demand for operatives is thus created, raising the rate of wages and greatly enhancing the cost of goods. Lastly, unity of purpose and action, without which no business can be successfully prosecuted, can hardly be expected under the divided responsibilities of a large corporate organisation.' Losses in A ready means of applying the principle of limited stock Corn- liability to all descriptions of business was created by panies. ^^^^ Joint Stock Companies Act of 18G2. That enact- ment gave great facilities, for the sale of their property to Joint Stock Companies, to men at the head of large concerns, who were tired of hard work, and anxious to hand down to their families an inheritance, secured from the risks and fluctuations of trade. While there were many seeking to exchange the wear and tear of business for the comparatively easy life of the country gentleman, there was a large body of inexperienced and sanguine investors, who had deluded themselves with the belief that it was possible to conduct the most intricate operations of industry successfully, without experience and without that constant personal devotion to administrative details, which the individual manufacturers whose property they had purchased had found it essential to bestow. It is well known that in numerous instances the purchasers have sustained a serious loss. In some cases the prices paid have been excessive, and the failure has resulted from the exaggeration of the capital account. Co-operative Production. 113 In other and more numerous cases tlie explanation is to be found in the imperfect control exercised by a board of Directors, assisted by a salaried manager, as compared with the administration of the individual employer's. Even in the choice of an a^ent, representative, or Business » ' ^ ' of a rail- manager, a private individual has advantai^es over a ^ay con- ° ' ^ . ° tractor board. Take the case of a railway contractor. The comd not contracts for a long line of railway are subdivided, for managed I f, ■, . , I. -, , . . by a com- tne purposes oi the supervision oi the work, into sections pany. rarely exceeding eight to ten miles in length. If the works are unusually heavy, the sections are shorter in proportion. A sub-agent is placed in charge of each section, and an experienced agent has the general direc- tion of the whole contract. The principal contractor for the undertaking, by paying frequent visits of in- spection, has opportunities of becoming acquainted with every sub-agent in his employ. He observes the progress made on his section. He can test his capabi- lity of dealing with every kind of practical engineering difficulty, by moving him from railway to railway, and putting him in charge of work in districts totally dis- similar in their physical character and resources. Gradually those employed in a subordinate capacity have an opportunity of showing their powers ; and yet while there is ample scope for individual merit, the supervision of the agent, having the general charge, will prevent the mistakes of a subordinate from pro- ducing very serious consequences. Thus, with the lapse of time, and without any grave risk of loss, the contractor may form an opinion as to who are his most trustworthy sub-agents, and can select principal agents I 114 Co-operative Production. from among tlicir number witli confidence ; because their powers will have become thoroughly tested in a subordinate capacity. Here it will be obvious that long experience and continuity of management are essential. A board will make appointments upon the faith of testimonials. The private individual will trust to personal observation. Again, administrative success depends upon the knowledge and management of details. The art of organising large bodies of workmen will only be ob- tained by previous experience on a smaller scale. The general supervision of subordinates will be most eifec- tually exercised by one, who, by close observation on the spot, whether in the tunnel, the workshop, or the factory, has learned how to discharge in his own person the duty he has delegated to others. The greatest commanders and administrators have ever been con- summate masters of detail. Napoleon's arrangements for the marches undertaken by his vast armies are admirable for the forethought and the care wisely bestowed upon details. A council or a board, only occasionally meeting, cannot manage a business ; and, unless efficiently represented by their officers and ser- vants, they are practically powerless. In a commercial point of view, great profits in productive industry are generally obtained by infinite small economies. Directors in a board-room can effect nothing in this way. Every economy of expenditure must be suggested by close and constant observation of the processes by which materials are prepared, and labour apphed to the execution of the work. Co-operative Production. 115 In the orOL eacli ; and that, since the distribution, they have iiad applications from their workmen for about 700 additional shares in the Company ; though they were asking 10/. premium on the shares, on which only 12/. lO.s'. have been paid. About half the sum paid as bonus has been thus returned to the Company by the workmen in premium on the shares applied for. For several years a workman director has sat on the board, who is qualified by holding one share in the Company, and by the receipt of weekly wages. This representa- tive of labour is annually elected by the votes of share- holders actually in receipt of weekly wages. Formerly one of their most bitter opponents, the Messrs. Briggs believe tliat the insight he has lately gained into the difhculties of conducting large industrial undertakings will effectually deter him from renewing the strife of former days. M. Godiu. Monsieur Godin, of Guise, has adopted the following scheme of paying his workmen, with a view to giving Co-operative Production. 135 tliem an interest in the success of the business in which they are employed. Capital, invention, and labour being alike essential to the production of wealth, the problem to be solved is the apportionment of the profits equitably among the several interests concerned. In determining the rate of interest due to capital, the workmen, in the opinion of M. Godin, should be pre- viously consulted ; and the rate should be determined with due regard to the risks of trade and other circum- stances. In the scheme, adopted in the establishment of M. Godin, capital receives a clear 15 per cent, in- terest ; the workman is paid his ordinary wages ; and provision is made to cover the charges for adminis- tration and mechanical inventions. These necessary expenses having been provided for, the balance over, if any, is regarded as the net profit ; and it is appor- tioned, one-third to the reserve fund, and the re- maining two-thirds to capital and labour, in propor- tion to the fixed amounts, payable to each from the earnings, before the net profits were ascertained. The practical operation of the system may be illustrated by an example. Assume that the sums payable had been — Wages 9,000 Interest on 40,000Z. at 15 per cent. . 6,000 General charges 1,000 £16,000 Then if 2,400/. be the net profit, one-third, or 800/., equal to 5 per cent, on the fixed expenditure, is set aside to reserve ; and the balance of 1,G00/. is ap- J3G Co-operative Production. propriated to capital and labour, in proportion to their respective shares iu tlie fixed earnings. Thus the sum of 900/. is added to the earnings of the wage-receivers, the sum of 600/. is payable as bonus to the capitalist, and 100/. to the management. Under the system usually adopted, capital would have claimed the whole of the 1,600/. The evils of a general pay-day are well understood by persons at the head of great industrial establish- ments. The drunkenness and disorder, the wasted earnings, the subsequent irregularity of attendance, are the familiar yet regretable incidents of a general distribution of wages to a numerous body of workmen. M. Godin pays his workmen every fortnight. He has divided them into sections, and each section is paid separately. The pays take place three times a week, and one section only of the workmen is paid on the same pay-day. By this arrangement, the irregu- larities, inevitable when a general distribution of wages takes place, are avoided. The small proportion of men, receiving their pay on any one pay-day, are kept in order by the example of steadiness afforded by their fellow-workmen, who are not disturbed by a recent payment of money. With these encouraging examples before them, many employers may be glad to follow the same course. Any plan, by which workmen may be made to realise that they row in the same boat with their employers, should not be lightly set aside. It is good policy to forego a portion of the profits of a prosperous year, in order to avert the calamity of a strike, with all its Co-operatice Production. 137 attendant evils of loss of profit, and bitterness and strife between masters and men. Capital and labour are essentially necessary and interdependent elements of production ; and the man of business, not less than the philanthropist, must desire to see the representatives of the two interests closely allied. I remind this Conference of these and other efforts to combine the principle of co-operation with the undoubted advantages of undivided responsibility in the administration of a large undertaking, because I am satisfied that the corporate system is not always applicable. Where no special personal influence is needed, for the purpose of securing clients and customers, and where the internal economy of an establishment can be conducted by a regidar routine, there will be no practical disadvantage in the management of a board or council. But when no transaction can be com- pleted without long and difficult negotiations ; when an undertaking is of a kind that cannot be conducted in accordance with fixed rules, and the emergencies, which must from the nature of the case arise, are always unforeseen, and must be met on the spot by an administrator, upon whose skill and conduct all will depend — in such a case, the co-operative system, pure and simple, becomes impossible ; and the ingenuity of masters and workmen, wishing to work together in friendly alliance, should rather be employed to devise schemes, whereby the equitable distribution of profits among the workmen may be combined with the 138 Co-operative Production. necessary concentration of authority in tlieir em- ployer. There must always be peculiar advantages in the personal supervision (to borrow a French expression) of an experienced ' chief of industry.' The earlier railways of this country were completed with great expedition. There was an anxious demand for im- proved arterial commiuiications by the new method, the superiority of which was universally acknow- ledged, so soon as it had been proved practicable. In those days the difficulties of the pioneers of the railway system were great. Tlie best methods of sur- mounting the engineering problems encountered were not yet perfectly ascertained. In driving a tunnel through a quicksand, in forming a high embankment, or excavating a deep cutting in treacherous and yielding soil, in carrying a line of railway over the trembling bog, the contractor sometimes endured the mortification of seeing the labour of weeks destroyed in a moment. When in trouble and anxiety, when a difficulty in the execution of the works presented itself, his representatives on the spot would seek for the valu- able advice of their chief. In such an emergency he assumed the management of the works : and his was in fact the directing mind to which his subor- dinates referred, and by which they were guided. Nor did they ever recur to him witliout obtaining valuable counsel, the fruits of a wider and more varied ex- perience than their own. It would, in fact, have been Co-operatice Prodaciion. 139 impossible for any individual to accumulate the same knowledge, without having the same exceptional opportunity of keeping a continual watch over a large number of operations simultaneously in progress. In a time of discom^agement the personal visits of the master, the w^ords of kindness to the disheartened workmen, the novel yet practical suggestions evolved from a fresh and vigorous mind, brought to bear upon a problem which had baffled the men more imme- diately concerned, would never fail to cheer up the " industrial army, and arouse them to new, and in the end, always victorious efforts. These details will have sufficiently explained the relations in which the railway contractor, or any other large employer, should stand to the members of his numerous staff. To me it seems that no board or council could ever take the place of an individual fitted by character and experience for his work, when such operations as I have described are to be carried out successfully. The inspiration given to subordinates under trying circumstances, the stores of knowledge and experience of the engineering art, the confidence imparted to engineers and directors and shareholders by the personal reputation of their con- tractor — these were advantages inseparable from purely personal management and responsibility, and they never would have been obtained from the cumbrous machinery of a board. Cases in For complicated undertakings co-operative orga- operative nisation will rarely prove effectual. A council of war praS-^^*^ able. 110 Co-operative Production. never figlits ; and no difficult task in the field of peace- ful labour can be brought to completion witliout a trusted leader. M. Eenan, in his interesting essay, La lleforme intellectuelle et morale., confirms these observations from the results of French experience. ' Eappelez-vous ce qui a tue toutes les societes cooperatives d'ouvriers : I'incapacite de constituer dans de telles societes une direction serieuse, la ja- lousie contre ceux que la societe avait revetus d'un mandat quelconque, la pretention de les subordonner a leurs mandants, le refus obstine de leur foire une position digne.' One more suggestion, and I close my remarks on this aspect of the case. In many descriptions of enter- prise the commercial result cannot be ascertained until after an interval of time has elapsed, too long to be tolerable to a body of workmen dependent on their weekly wages. I again choose an illustration from the experiences of the railway contractor. Take the case of a concession for a long line of railway on the Continent. The first conception of the project will probably come from some local engineer. He makes a rude preliminary survey of the country to be tra- versed. He comes to England with his rough studies to seek the financial aid and larger professional expe- rience of one of our eminent engineers or contractors. The negotiations proceed, and the English promoters make a second and a more careful examination of the scheme, involving a repetition of the original survey. Plans and an estimate are prepared at considerable ex- Co-operative Production. 141 pense, and negotiations are thereupon commenced with the Government within* whose territories the proposed railway will pass. Weary months, and sometimes years, elapse before a decision is obtained. Let us assume the decision to have been favourable, and that a concession has been granted. Then follows the execution of the works, which, if the length of the railway is con- siderable, may probably occupy a period of three years. While the construction is progressing, financial arrangements must be made in order to form a company, to take over the concession from the contractors, and to raise the capital for the line by public subscription. The subscription may possibly be only partly successful. In that event, the contractor must meet a large propor- tion of the expenditure from his private resources. Before he has succeeded in disposing of his proportion of the shares or bonds allotted to him, a European war may have broken out. In that case, an in- definite period must elapse before the securities are realised. This is no imaginary picture. In the business with whicli my name is identified, the history of every transaction is a repetition of the story I have narrated. It is not an exaggeration to say that an interval of ten years ordinarily elapsed between the opening of com- munications with the original promoters and the final payment for the construction of the works. You may easily imagine the hazards and uncertainties of an enterprise of this nature. No true friend of the work- ing classes would recommend them to risk their liard earnings in such adventures. 1 12 Co-operatlce Production. The general business of the country, liowever, is of a more stable and metlK^dical character, and better adapted for tlie application of the co-operative principle. And now let us pass on to consider other develop- ments of the co-operative principle, second only in their importance to co-operative production, and perhaps more practicable in execution. It is impossible to exaggerate the importance of adopting every means of enabling the labourer to lay out liis scanty resources to the best advantage. The co-operative stores furnish him with supplies on the most advantageous terms. But this is not the only object at which we ought to aim. Economy in consumption is scarcely less de- sirable. Take, for example, the consumption of fuel. Captain Galton has expressed an opinion, based on much investigation, that five-sixths of tlie coal con- sumed in our houses is absolutely wasted. If we had a more effective description of grate than that in ordi- nary use, instead of consuming 32,000,000 tons per annum for domestic purposes, our consumption would be reduced to 5,000,000 tons. Captain Galton says that with only moderate economy not more than from 12,000,000 to 16,000,000 tons need be used. This economy in the household consumption of coal would enrich the nation to the extent of from 20,000,000/. to 30,000,000/. annually. The co-operative societies shoald exert themselves to bring into use among the working classes the very best grate and cooking range that can be contrived. Co-operative Production. 143 The merits of that invented by Captain Galton are well worthy of their attention. As in the use of fuel, so in the art of cooking, there Co-opcra- might be effected an almost incalculable economy of kitchen.s. food, if our English housewives were as skilled in cookery as the peasantry of France. The co-operative associations should organise the means of imparting a complete knowledge of culinary matters to the mass of the population. In all great towns workmen's restau- rants might be established on a large scale. The more extensive the arrangements, the more easy it would be to introduce the utmost possible economy. The mid- day meal might be eaten by many artisans and factory operatives at the restaurant itself ; and for others who wished to enjoy the comforts of their own firesides, dinners and suppers might be cooked at the restaurants, and taken home to be eaten. Abroad, arrangements of the kind indicated have been long established in every large town, and especially in France and Italy, and they have been found to work most conveniently and econo- mically. As an example of the great results which can be Mr. Coi- accomplished in a well-managed restaurant for working men, the following details are given relating to the establishment created by Mr. Colman, M.P., for the benefit of those employed in his extensive manufactory of starch and mustard. ' When first started,' to quote from a letter recently received from Mr. Colman, ' the aim was rather to meet a want felt by the w^orkmen. It wns not calcu- lated that the Carrow Works Kitclien would pay its way. ]44 Co-operative Production. The firm, tlicrefore, still bears the cost of rent, coals, and gas, as well as the general charges of wear and tear on utensils, but not the wages of the attendant. ' Yet. while it cannot be said that the kitchen is entirely self-supporting, it may with equal trutli be said that, by making the tea and coffee rather weaker, or with a reduced price of meat and sugar, neither of which seems altogether an improbable event, all ex- penses would be paid. ' The Carrow Works Kitchen was commenced in March 1868, and is for the use of the Carrow work- people exclusively. The bill of fare consists of coffee served at 5.45 a.m., when the workmen are assembling for work, and a second supply at 8.30 (the breakfast time). On two mornings in the week we provide tea instead of coffee at 8.30. ' For the early breakfast at 5.45 we find the men prefer coffee to tea, as more nourishing. Some of them say they should take beer in preference to tea before coming to work, but they should like coffee better than either. Our object in providing this early coffee, is to check the habit of drinking beer in the morning. We only commenced the early breakfast six months ago, but it seems likely to be very popular. The price for tea or coffee is Id. a pint, with milk and sugar. ' The dinners consist of four different kinds, but only one kind is prepared on the same day : — ' I. A ^-Ih. of roast meat with gravy and vegetables and a " Norfolk dumpling " (i.e. a halfpenny- worth of boiled bread) is served for 4c?. ' II. A stew of English meat and vegetables, with dumpling, 'dd. Co-operative Production. 145 'III. A stew of Australian meat and vegetables, with dumpling, 2d. ' IV. A pint of soup, Id. ' We use the Australian cooked meat, which is im- ported in tins, and only requires to be warmed up. We have used about 60^. worth, during the last year, of the Australian meat. ' As to the increase in the consumption, it is, in round numbers, as follows : — Tea and Coffee, Pints Dinners April 1, 1868, to March 31, 1869 . 9,677 13,990 1869-70 20,645 11,107 1870-71 27,017 13,977 1871-72 . . . . . 30,313 13,473 1872-73 55,210 20,957 1873-74 76,117 25,776 ' The kitchen is nearly self-supporting. ' The following is a list of the principal items of expenditure for the year 1872-3. The accounts for 1873-4 are not yet made out. Paid. English meat Australian meat Dumplings Coffee . Tea . Sugar Wages Sundries Flour . £ a. d. . 86 7 11 . 63 2 6 . 24 12 9 . 42 19 3 . 41 12 . 80 ^ . 35 19 . 15 11 5 . 3 4 10 £383 10 Oi Milk . Vegetables . Rent . Coals and Gas 146 Co-operative Production. lQ72-72>.— Received :— Tea, Coffee, Pints Pints Dinners £ a. c >4,805 30,405 2,852 at 4>d. v 1,717 „ Sd. 7,255 „ 2d. 9,133 „ Id. [ 397 11 < 20,957 Dinners. , Dr. To cash received Cash Accounts. £ £ 397 s. d. 11 397 11 Or. By payments Balance in hand • £ 383 14 8. d. 10 Oi ll| £397 11 Dr. Stock in hand . Cash in hand . £ 11 14 5. d. 11 91 Hi £25 12 9 M. Godin. Balance in favour of kitchen, towards paying for milk, vegetables, rent, coals, and gas.' The results attained at the Carrow Works must be admitted to be eminently satisfactory. By an excellent organisation, mainly due to the kind-hearted and intelligent exertions of Mrs. Colman, a great boon has been conferred on a multitude of workmen ; and the only contribution required from the employer has been the personal attention devoted to the initiation of the system. Among many recent efforts to ameliorate the con- dition of the working classes, one of the most original Co-operative Production. 147 and spirited has been made by Monsieur Godin, the founder of the familistere, or general dwelling-house, for his operatives and their families at Guise. The principles of the scheme, and the mode in which the attempt to develop these principles has been conducted, are set forth by M. Godin in his interesting volume, entitled, ' Solutions Sociales,' from which the following details are extracted. The originality of the plan and the general idea, underlying the whole conception of the founder of the institution, that the condition of the masses can be elevated only by their mutual action for the common good, will be essentially acceptable to the friends of the co-operative movement. Whether the familistere is a judicious application of the principle is another question. There have been many isolated efforts in France and Belgium to improve the habitations of the working class. At Miilhausen especially a large number of houses for workmen have been erected, constituting what has been called a Cite Ouvriere. M. Godin objects that tlie dwellings erected at Miilhausen are too cramped in dimensions ; that the workmen having been encouraged to purchase their cottages, the founder of the Cite Ouvriere has lost all power of direction and control ; that the rooms originally barely sufficient for the wants of a family are sublet as lodgings ; that pig- sties are constructed in the tiny garden attached to each cottage ; and that, thus dirt and noxious odours are allowed to pervade the suburb. M. Godin, not without some justification, finds fault with the term Cite Ouvriere ; and he, perhaps justly, says that the L 2 148 Co-operative Production. name implies the separation of those, who. ])y tlieir labours, are tlie creators of wealth from those who enjoy the use of that wealtli by inheritance or by successful speculation. A more favourable opinion of the Cite Ouvriere of Miilhausen has been formed by Lord Brabazon, who says, in his able paper on the industrial classes in France that, * the condition of the lease granted to the workman, allowing him, after a certain number of years to obtain the freehold of his house, has an immense moral influence. His self-respect increases, and he is enlisted on the side of order. The absence of super- vision removes a fruitful source of irritation.' The cites ouvrieres erected for the workmen of Paris, though possessing every advantage of space, air and light, have never been popular, because the strict discipline main- tained, — as, for example, the closing of the gates at ten o'clock at night, — ^is an irksome restriction to the excitable and pleasure-seeking population of the French capital. The criticisms applied to the Cite Ouvriere at Miilhausen may be applied with greater reason to London and the great towns of our own country. The rich gather together in the most eligible situations. The price of land in certain positions becomes so enormous, that it is impossible to erect houses at rates which, while not exceeding what workmen can afford to pay, will be remunerative to the owners and builders. Hence the working class are compelled to occupy more remote suburbs. They live in daily contact with no other class but their own, and a consequent danger is Co-operative Production. 149 incurred of social disunion. This state of things is prac- tically inevitable under our existing system ; but it is not the less a regretable incident of tlie great increase in our population. M. Godin suggests that it is a paramount obligation of the wealthy to organise means for securing to the masses a larger measure of the luxury and comfort created by their toil and labour. The tendency of modern industry has been, and will continue to be, towards the concentration of capital in large private or corporate establishments, and to production by machinery, in substitution for manual labour. The use of machinery, necessarily operates unfavourably to the interests of small manu- fiicturers without the resources of capital. This general tendency of our industrial organisation has been pro- moted by the railway system. Consumers have been enabled to obtain their supplies from the cheapest markets, irrespective of those considerations of trans- port, which in former times more than neutralised the advantages of different localities for special branches of trade. Before the introduction of railways, it was essential to obtain the more bulky articles from the local producer. iJ^ow, the consumers are enabled to go to the localities where the articles required can be produced of the best quahty, and at the cheapest rate. The attention of the employers has hitherto been concentrated on the organisation of the factory and the workshop, on the great scale required in the present day, in order to carry on competition in manu- factures with success. But, though much has been 150 Co-operative Production. done to organise tlie i)roduction, iiotliing lias been done to organise the consumption and the use of products. The problem of domestic consumption has been solved in the opinion of M. Godin, by the erection, close to his workshops at Guise, of an edifice which he calls a social palace. It is a vast barrack, capable of containing 900 inhabitants. The building is several storeys in height, and consists of three large courts, surrounded by galleries communicating v^ith the rooms. Each room is let separately, so that the lodgers can regulate the rents in exact and constant proportion to their requirements. The unmarried and the married, according to the number of their family, can occupy a greater or lesser number of rooms. The building cost 40,000/. and the capital expended has been divided into shares of small amount, with the view of inducing the workmen to purchase them, and thus to become their own landlords. The rents of the rooms give a return of 3 per cent, upon the capital, and the profit upon the sale of provisions gives an additional percentage of the like amount. M. Godin quotes the principles advocated by Fourier as the foundation of his system. By grouping many families together, each individual is enabled to undertake, for the general service of the community, that special function in which he excels. Cooking, and all the domestic duties may thus be performed by persons specially selected. At the familistere there are general kitchens for the whole establishment, from which the meals ordered by lodgers are supplied. The Co-operative Production. 151 children, as soon as they can leave their mothers, are brought up first of all in inftint schools, and then in more advanced schools, where they receive an excellent education. It is contended that under this system the working men enjoy by combination many of those advantages which must otherwise be the exclusive privilege of wealth. Cooking is often badly done for the rich, a fortiori., it is to be expected that it will be unskilful in the homes of the poor. To command the services of efficient persons, whether in the capacity of nurses or cooks, is regarded by M. Godin as among the greatest advantages of ample resources. By combi- nation the occupants of the social palace at Guise are enabled to place their children, even at a tender age, under the care of well-trained nurses, and to obtain their own food properly cooked. Where the working men live apart from each other in small houses they are necessarily widely scattered. They are at a distance from their work, and their children are so far from school that their attendance is always difficult, and often most irregular. In case of illness the services of a medical man may not be easily obtained, and medical comforts cannot be provided, as they can be in an establishment having a well-equipped dispensary for the general use of the inmates. The social palace at Guise stands in the midst of extensive and well-kept pleasure grounds on the banks of the Oise. It has an excellent theatre, where dramatic representations and concerts are frequently 152 Co-operative Production. given by associations, formed for llie purpose by the operatives. The internal management is carried on by com- mittees, composed of twelve men and twelve women. The men devote themselves specially to questions relating to the amelioration of the condition of the workmen, the rates of wages, and the formation of provident societies. The women supervise tlie quality of the provisions supplied from the co-operative stores and butchers' shops connected with the social palace. They also superintend the management of the chil- dren and the arrangements for preserving order and cleanliness. It is alleged that there is an entire absence of crime in this singular community ; and that public opinion, the more sensibly felt when all dwell together under the same roof, has raised the tone of conduct and morals above the standard generally maintained among persons of the same class, living in private dwelhngs. A system of domestic economy, not widely dis- similar from that adopted at the familistere, has been extensively followed in the United States by the well- to-do classes. To avoid the difficulties and extra expenditure of a separate household, many married couples permanently reside at the large hotels.' They secure similar advantages, and suffer similar incon- veniences, to those experienced by the inhabitants of the social palace at Guise. The want of privacy and retirement, the loss of much that we should value and cherish in family life, are grave disadvantages, insepa- Co-operative Production. 153 rable from the quasi-coWegmiQ system of which the operatives of M. Godiu have been induced to make a trial. Life in common is more congenial to some dispo- sitions than to others. It would probably succeed better in France than in England. On the other hand, there are many serious drawbacks in a too great isolation. On the whole, I venture to give an opinion that, as a marked success w^ould seem to have attended the experiment at Guise, it deserves the most attentive consideration on the part of our working people in this country. They have already proved the value of the co-operative system for obtaining their supplies. The so-called social palace is a further development of the same principle. In numerous cases it might be found to oifer most important advantages of comfort and economy. The co-operative principle may be beneficially Dramatic applied not merely to productive industry or economy tions. in consumption, but to the scarcely less difficult and important work of providing higher amusements for the people. In Vienna the dramatic art is still maintained at a high standard. The theatres are a favourite resort of the people, and the representations include pieces calculated to raise the moral tone and improve the taste of an audience. The novelties latterly introduced into the English theatre tend to degrade the stage. With many illustrious exceptions, it may be said that inferior plays and players have been too easily accepted ; and that some stage managers have sought to make money by appealing to those lower tastes, which cannot be indulged without injury to the national character. I 154 Co-operative Production. should be glad to see an elTort made by those, who have led the way in other co-operative undertakings, to apply themselves to the cultivation of the musical and the dramatic arts. The choral associations are a delightful and most elevating source of amusement in every town in Germany. Already, in many of our manufacturing towns, music is being widely and highly cultivated. The drama may offer greater difficulties, chiefly on the score of expense ; but the means at the disposal of co- operative associations might be applied to a limited extent, yet with great advantage, to promote a taste for dramatic representations of the better sort among the people. The English have been reproached, perhaps not unjustly, as a nation destitute of resources for amuse- ment. Indulgence in eating and drinking has been the only recreation the uninstructed labourer has been capable of appreciating. It is a lesson many of us have yet to learn, that time given to innocent pleasure is not wasted ; and that there are other things besides fame and money, for which it is worth our while to Hve. To use the happy phrase of Mr. Goschen, ' a livelihood is not a life.' It is not well to concentrate aU the thoughts on work, and take no pains to provide pure and elevating enjoyment. Education. I am not here to speak of poHtics. But Mr. Glad- stone and ]\Ir. Forster, and their supporters in the last Parliament, are entitled to gratitude for a measure of infinite value to co-operation in the passing of the Education Act. Whether this or that provision be Co-operative Production. 155 approved or disapproved, the substantial result must be to qualify all the working men of the rising genera- tion to embark their savings, with more confidence than before, in a society for co-operative production. Until they have mastered the art of book-keeping, and have acquired the habit of reading those trade reports afford- ing the only clue to their true position, the co-operative workmen are too dependent on the opinions of others. Being ignorant, they are inclined to be suspicious ; and they are reluctant to reward generously services they are unable to appreciate. At the same time, I sincerely hope that the progress of education in England may not be attended with the regretable consequences that have followed from a wide diffusion of knowledge in other countries. In the United States, the result of universal edu- cation has been to make the native-born Ameri- cans averse to manual labour. The dignity of the pen is so much more highly regarded than that of the hatchet or the hammer, that the youths of America universally prefer to take very moderate pay as clerks, rather than earn the wages, double their own in amount, which are given to skilled artisans. The false estimate they have formed of the prestige of a sedentary occu- pation is due to their education. Even in Germany it has been found that foremen in workshops, notwith- standing their higher responsibilities, do not receive proportionate wages ; because the general diffusion of education has made most artisans competent, and has made all desire, to undertake duties of supervision, and thus escape the indignity of manual labour. 1 56 Co-operative Production. Education in Greece being practically gratuitous, thousands of men think themselves fitted for some call- injT more intellectual than that of the manual labourer. Hence it is, that while every deputy in the Eepresenta- tive Chambers and every member of the Government is besieged with applications for the smallest posts in the public service, the labour market is largely supplied from Crete and Turkey. The remedy must be to withdraw a part of the subsidy now given to the University, and to apply the funds to insti'uction in the practical arts. The mental energies of Greece should no longer be devoted to purely intellectual, to the exclusion of practical work. Arguing from these examples, it may be appre- hended that the advances of national education may not be an unmixed benefit to a people hitherto pre- eminent in the practical arts ; unless public opinion be firmly set against the tendency to regard the labour of the hands as derogatory. Swiss An infinite number of plans might be proposed to ameliorate the condition of the people. The Govern- ment may, without weakening the spirit of independence, introduce the system described by Mr. Gould, and adopted with so much advantage in Switzerland, of establishing a people's bank, under the guarantee of the State, in every village. In the Swiss banks deposits of the smallest amount, even of a few pence, are received. Intending depositors bind themselves to pay into the bank a weekly sum. The minimum is fixed at 9.',(i., and the maximum at 21. The payment is to be continued during three consecutive years. Interest is allowed at banks. Co-operative Production. 157 4 1 per cent, on all sums above 45. The rate allowed in our own savings banks is too low. It might be raised without loss to the Government, and a higher rate w^ould materially increase the inducements to save. Every description of banking business is transacted by the Swiss banks ; but the special feature is, that loans are made to depositors on the security of their deposits, provided the loan does not exceed 75 per cent, of the amount at credit. Interest is charged at 6 per cent. At the end of three years the deposits are returned with the accrued interest, and a proportionate share of the profits of the bank. The amounts so returned may be re-invested in the bank in 4/. shares, bearing 4.i per cent, interest, and entitling the holder to a participation in the profits. The first of these banks was founded so recently as 1865, and they have been most successful. A mode of perfecting another great social reform has Co-opera- been put forward by the Committee of the Charity Or- ing socle-' ganisation Society on Dw^ellings for the Labouring Classes. *'^^" They have recommended that the Government should endeavour to afford facilities for providing better habi- tations for labourers. Many private agencies exist for this purpose. The Peabody donations, which now amount to 600,000^,, may be quoted as a crowning instance of individual munificence; while the Metropo- litan Association, the Industrial Dwellings Company established by Sir Sydney Waterlow, which has in- vested nearly 250,000/. in the erection of workmen's habitations, and the London Workman's Dwelhngs Company, founded in 1862, may be selected as ex- amples of extremely beneficial, and, at the same time. 158 Co-operative Production. fairly remunerative orgauisations. The societies here mentioned have paid steady dividends of 5 per cent. By wise arrangements it is asserted that the work of reconstruction need not be unprofitable. The valuable sites in the centre of large towns are not economised as they ought to be. It is stated by the Metropolitan Association that, whilst the population of Westminster is only 235 persons to the acre, in the dwellings they provide, including in the area large court-yards and gardens attached, the population is upwards of 1,000 to the acre ; and that the rate of mortahty is, nevertheless, only two-thirds of the average of the whole of London. The Committee of the Charity Organisation Society are of opinion that large powers for the compulsory purchase of condemned property should be conferred on some suitable authority, — in the metropolis, a central municipal authority — and that the land purchased should be offered for sale or lease to private or associated building agencies. They quote, as an instance of the conspicuous success of such a poHcy, the action taken by the municipality of Glasgow, under a Local Improve- ment Act passed in 1866. Avaihng themselves of their powers, the civic authorities have borrowed and ex- pended upwards of 1,000,000/. in the purchase of pro- perty, a portion of which had been resold, while the greater part was let, and yielding 24,000/. a year. The building had been conducted throughout by pri- vate agencies. At the outset a rate of sixpence in the pound had been anticipated, and a loss of capital of 200,000/. The rate had actually been kept at sixpence only for one year. It remained at fourpence for two Co-operative Production, 159 years ; and had since been reduced to threepence, with the prospect of an early reduction to twopence ; while the capital loss was not now expected to exceed 50,000/. at most. Equal success has marked similar efforts in Edin- burgh and Liverpool. The Artisans and Labourers' Dwelhngs Act of 1868, which the country owes to Mr. M'Cullagh Torrens, has already produced excel- lent results, and under its provisions improvements in Liverpool have been carried out. The Act originally contemplated four purposes, — compulsory repair, re- moval, compensation, and building. The powers of compensation and reconstruction were removed by the House of Lords. The Committee of the Charity Orga- nisation Society recommend that those powers should be restored. Their recommendations have been adopted in the recent Act brought in by Mr. Cross at the instance of Sir Ughtred J. Kay-Shuttle worth. The recent rise in wages and prices presses with a Else of heavy burden on every individual ; and unless there ship were a concurrent rise of prices abroad, we should have ^^ ^°^* a gloomy prospect in view for the future of England. No other country is so dependent on the superiority of its workmen, both for excellence and economy of pro- duction. In no other population is the proportion of those who hve by the fertility of the soil so small, by comparison with the classes who live by the application of skilled labour to the manufacture of goods for foreign markets. In the anxiety and the inconvenience ex- perienced from the advance in wages, people are dis- posed to attribute the concessions, made most reluctantly IGO Co-operative Production. to the demands of workmen, to some arbitrary cause, such as the superior organisation of trades-unionism. They mistake a manifestation of power for the actual sources of power and strength. There has been much outcry at the recent increase in prices and in wages. There is nothing new to economic science in our recent experience. All the oscillations in the labour market can be fully explained by the long-recognised law of political economy — that the rates of wages, like the price of commodities, are regulated by demand and supply. I will illustrate the operation of this rule in one department of trade, that of ship-building. The tonnage of the new vessels built in the United Kingdom in 1862 was 310,900 tons ; in 1865, 607,000 tons; in 1871, 391,000, and in 1872, 475,000 tons. In the latter year, therefore, there was a great increase upon the tonnage of the first year in- cluded in the period under review ; while in the infla- tion of the ship-building trade, which reached its climax in 1865, the amount of tonnage built was doubled in three years. It is clear from these considerations that there has been a permanent increase, and occasionally an enor- mous increase, in the demand by ship-builders for the supply of the highly-skilled labour required for their trade. In the meanwhile the total number of artificers employed exhibits no corresponding augmentation. In the period embraced in the recent census, 1861-71, the number of shipwrights and shipbuilders has been slowly increased from 39,058 to 40,605 men. Arguing from the reports published by the Econo- Co-operative Production. IGl mist of the state of the ship-building trade on the Clyde and the Mersey, we may reasonably assume that in 1873 there was no diminution of activity. The aggre- gate tonnage of ships built on the Clyde was in 1870 189,800 tons ; in 1871, 196,200 tons ; in 1872, 224,000 tons; in 1873, 261,500 tons. Of this tonnage, six steamers, of 18,200 tons and 3,300 horse-power, were built for the North German Lloyd's; five steamers, of 13,325 tons and 2,100 horse-power, for the Penin- sular and Oriental Company; three steamers, of 11,250 tons and 1,500 horse-power, for the Anchor line ; three steamers, of 10,500 tons and 1,800 horse-power, for the German Transatlantic Company of Hamburg. The demand for the supply of labour has been more urgent, not only through- the activity in building new sliips, but also through the numerous alterations of old vessels. It lias been ascertained that there is much economy in point of horse-power and fuel from an increase in the length of the ships and the adoption of compound engines. It should be observed, further, that the repairs constantly required for our vast fleet of merchant ships must necessarily be very extensive ; and in many ports more workmen by far are employed in repairs than in building additional tonnage. In this marvellous activity ample explanation is given for the rates of wages prevailing in Liverpool, in London, and the Clyde, where ship-carpenters are sometimes earning eight shillings a day, and other trades in proportion. Many masters are competing against each other for the services of but few men. The case would be rapidly changed, if there were more M 102 Co-operative Production. men and less employment. Capitalists should con- sider whether they themselves are not to blame, ere they impute to the labourers the responsibility for an augmentation in the cost of production. Our work- men, too, should pause, before they proceed to make further demands. It is a question for them to con- sider how far the advance of prices has neutralised the benefits they derive from higher wages. I have the misfortune to be the holder of shares in one of our largest lines of steamships ; and the recent history of the company affords a striking instance of the need for the admonition I have ventured to address to incautious capitalists. Within a short space of time the company in ques- tion has doubled the tonnage of its vessels, which are all powerful ocean-going steamers of the first class, in dimensions, speed, equipment, and as a necessary con- sequence, in price. In 1873 the company were sup- plied with nine steamers from the Clyde alone, one being a vessel of 4,820 tons and 650 horse-power — while the total tonnage and horse-power constructed for them amounted to 28,895 tons and 4,500 horse- power. This was the largest amount ever supplied to a single company in one year. For the same company three steamers of the largest class were built last year by Messrs. Laird Brothers, at Birkenhead. The construction of this great fleet for one concern alone must have exercised a most appreciable influence on the rates of wages in the ship-building yards on the Clyde, and made it sometimes difficult to obtain the labour required for other similar contracts. But the Co-operative Production. 1G3 shareholders of this company now learn that the policy of increasing their fleet has been, in a commercial point of view, injudicious. Their trade has not increased with the increase of their fleet, and they would have fared better had they been content to keep their under- taking within its former limit and scope. Here, there- fore, two consequences have followed from the errors of certain capitalists. The course they have pursued has tended to keep up, if not actually to raise, the price of labour ; while they have sustained a con- siderable loss from the depreciation in the value of their shares. In the case I have quoted as a warning and illustration of the consequences to be apprehended from errors of commercial judgment, the price of labour cannot be assigned as the direct or indirect cause of misfortune ; and similar instances might be indefinitely multiplied to prove that many great re- verses, which chequer the history of our commerce, must be traced, not to the rapacity of the workmen, but to rash speculations. While I am anxious to do equal justice between Labour and Capital, and to vindicate the conduct of workmen when unfairly accused, it is my duty to remind the working classes in England that their employers are engaged in the closest competition with all the manufacturing countries of the world. The markets of the United States, almost monopolised in former times by British productions, are now princi- pally supplied with American goods. The tariff, established since the war, presents a formidable barrier to importations from England, If those duties were K 2 164 Co-operative Production. removed, the diflerence in tlie cost of labour would, doubtless, at the present time, secure for England her former position. But it must also be remembered that, assuming the cost of labour in the United States to be 25 per cent, in excess of the cost in this country, the addition to the value of the product does not exceed 5 or 6 per cent. ; and, if the duties imposed in the United States on all raw materials should be repealed, and if, as we may reasonably anticipate, the cost of living should be materially lessened, the cost of pro- duction under those more favourable circumstances would be so much reduced, that the present advantages of the British manufacturer would cease, and there would no longer be a sufficient margin to cover the cost of exportation from this country to America. I cannot conclude these observations on the condi- tions of the labouring classes, without reference to the important influence which must eventually, and it may be very rapidly, follow from the increasing facilities of communication between distant centres of industry. Foreign travel, in former times, was the exclusive privilege of the wealthy ; but when the working men begin to circulate more freely from country to country, the class interests which they have in common will inevitably tend to bring them together, and make them regard with stronger aversion those national struggles in which, from motives of personal ambition, their rulers in past ages have been too ready to engage. Already we see in Germany a party being formed whose sympathies are for France. The originators of the movement are the artisans in the two countries ; Co-operative Production. 16b and, as their numbers will probably increase, they may exercise a valuable influence in promoting the blessed wdrk of reconciliation. So, too, between England and the United States, Relations " ^ between the solidarity of the two peoples is a surer guarantee England -' . and the for a close and permanent alliance than the most United 11 • n ^• ^ States. elaborate contrivances oi diplomacy. Our eminent writers appeal with equal success to Anglo-Saxon readers in both hemispheres ; and when they visit the United States they are welcomed as men of whom the American people are proud, because they have conferred distinction on the whole English- speaking race. Our early history, our language, our literature, are common to both nations. They are links which should unite us together as no other people can be united. I have elsewhere spoken of the workmen of the United States as the competitors of the English. I trust that their rivalry may be always generous. As union is most earnestly to be desired between the same classes in different countries, so it is not less desirable between different classes in the same country. If it is hard for the privileged few to appreciate the difficulties of the masses around them who are staggering forward in the battle of life ; it is still harder, we may rest assured, for the poor to appreciate the peculiar trials of the rich. We may plead for princes their isolation, and for the nobly born the absence of many powerful motives which fire the ambition of men of modest station, and lead them forward to a career of usefulness and distinction. We may urge on behalf of 16G Co-operative Production. tlie ricli that tlioy are a tempting prey to designijig men, and can seldom earn the gratitude reserved for those who are beheved to practise the virtue of self- denial ; but we may rest assured that the mass below them, contending for bare existence, have little sym- pathy for trials that to them must appear artificial and self-imposed. Whatever the poor may feel towards the rich, the duty of the rich towards the poor is too plain to admit of misconception. Whether moved by considerations of policy, or by the nobler impulses of humanity, it must be the subject of our universal solicitude that no class of society should be exposed to the fatal influences of despair. Multitudes there must be in every city contending amid waves that threaten destruction ; and when, with anxious glances they seek a refuge from the storm, can they descry the happy isles in which they may repose ? The land, if seen, is f^ir away, their bark is sinking, and their only hope the aid of those who have already gained the shore. An idea prevails in certain quarters abroad that there is no sympathy between the affluent classes in England and the masses of their less fortunate fellow- countrymen. Much more truly may it be affirmed that in no other country is the same deep interest felt in the welfare of the poor. There are philanthropic organisations innumerable for giving aid to all who are in sorrow. The ill-paid clergy, the decayed gentle- woman, the widow, the orphan, the sick, the destitute, whether in mind, body or estate, are all cared for, Co-operative Production. 167 and in most cases partially, in some effectually re- lieved. The almoners of this generous bounty are among the best and noblest in the land. Many of their names are familiarly known. A still greater number are engaged in the same good work, of whom the world never hears. The purest charity will often be found among those who are most exposed to the temptations of ease and pleasure. It is because this sympathy exists, that in England we have as yet been spared the miseries of social disunion ; and from this, the most dire calamity which can befall a nation. Heaven grant we may remain for ever free ! .168 VIL LETTER ADDREJSSED TO MR. SHIPTON ON THE SOUTH WALES COLLIERY STRIKE. Having been consulted in April, 1873, by the trades societies in London, as to the probable issue of the pending struggie in South Wales, I made inquiry on their behalf, and embodied the results in the following letter, which, it is believed, was not without effect in reconciling the colliers to the terms insisted upon by the coal-owners : — ' 24 Park Lane, W., April 30. ' Deak Sir, — In fulfilment of my promise to you, I have had interviews this morning with two gentlemen largely interested in the coal-fields in South Wales. While differing as to the expediency and practicability of arbitration, they share the same opinions as to the necessity for a reduction of wages to the extent of 15 per cent., as stated in the last offer of the masters. ' I am convinced that the masters will adhere to their present terms, and that they could not make a more favourable proposal without serious loss to themselves. ' I have reason to believe that the coal-owners in South Wales feel deeply the interruption to their former cordial relations with their workmen ; and that they Letter on the South Wales Colliery Strike. 16 y rtre prepared, as soon as the men have returned to work, to make a proposition for a sliding scale of wages, varying with the fluctuations in the price of coal, and other circumstances. The adoption of a well-considered scale of wages, based on the selling price of coal, will obviate the risk of the recurrence of the present de- plorable struggle. ' In my conference with you yesterday, I referred to the fluctuations of wages and profits in collieries. For a long period anterior to the year 1870 the owner- ship of coal was an unsatisfactory investment. It is equally certain that large profits were made in 1871 and the two succeeding years. The unusual profits attracted a large amount of new capital to our coal- fields, and the high prices led to diminished consump- tion. The supply of coal has now overtaken the demand. Prices have fallen in consequence to such a point that the reduction of wages, now demanded by the masters, must be accepted by the workmen as a dire necessity of the situation. Better times are doubt- less before us, and the adoption of a sliding scale will secure to the workmen their fair share in the increasing profits of the business. ' The figures, which were given by Mr. Hussey Vivian in his speech at Bridgend in February, clearly show that the men have participated fully in the ad- vantages derived by their employers from the im- proved position of the coal trade. The advance in wages between June 1871, and August 1873, amounted to 117 per cent. The advance in the price of coal during the corresponding period was about 100 per 170 Letter addressed to Mr. Shipton cent. The culminating point in the price of coal was reached in 1873. Happily for the pubhc, the excep- tional prices were not long maintained. The subse- quent fall in the value has been extraordinarily ra])id. Steam coal fell from 22^. a ton in October, 1872, to 125. 6g?. a ton in December last. At the present time the price of coal is only 31-|- per cent, higher, while the wages of the men, after the reduction now proposed, will be 50 per cent, higher than in 1870. In a tabular statement published in the Western Mail in February last it was shown that, whereas, in 1870, the average wages in the collieries enumerated amounted to 45. 2d. a day, the earnings would now be 65. 8^c?. a day, as- suming the reduction of 10 per cent, then proposed to have been accepted and that an equal quantity of coal was cut. 'It cannot, therefore, be said that the men have derived no substantial and enduring advantages from the high prices and large profits of the years of inflation through which we have lately passed. ' I most earnestly advise the colliers of South Wales to return peaceably to their work. The course of events in the sphere of industry and commerce is go- verned by irresistible laws. You cannot have exces- sively high prices without unduly stimulating production. When the supply of an article exceeds the demand for it, the price must fall, and with the fall there must be a diminished profit, or, it may be, a most serious loss to the employer, and a reduction in the wages of the workmen. 'It is an invariable rule that, in a falling market. on the South Wales Colliery Stnke. 171 the fall in the price precedes the reduction in the wages — always a disagreeable necessity to the employer no less than to the workman — and that the diminution in the wages is not proportionate to the fall in price. In a rising market, the increase in the price precedes, as a general rule, the advance of wages, and the work- men, always contented when wages are rising, not un- frequently acquiesce for a certain time in an advance which may not be fully proportionate to the rise in prices. There is, however, in prosperous times, great competition for labour on the part of the employers ; and hence it is certain that in the long run the work- man will secure his full participation in the prosperity of his employer. ' For the reasons I have stated, strikes can seldom, if ever, produce an amount of good sufficient to com- pensate for the evils they entail. But if at any time the workmen in South Wales can derive benelit from an organised conflict with their employers, it certainly is not now, when the depression of trade is such that no advantage can be gained by the prosecution of manufacturing operations in iron. The firm determi- nation of the employers to keep their works closed affords most Conclusive evidence that no loss is suffered by the adoption of such a course. In a time of pros- perity a general lock-out is impossible. Employers would never be foimd united in their determination to deprive themselves of the opportunity of making a profit. ' I owe much to the working class. I am grateful to them, and I heartily sympathise with them in their 172 Letter on the South Wales Colliery Strike. many difficulties and trials. But I should not show myself their true friend in the present instance if, in answer to the inquiries you have addressed to me, I were to advise any further prolongation of the hopeless struggle. ' Always faithfully yours, 'Thomas Brassey.' 173 YIII. ON THE INFLUENCES AFFECTING THE PRICE OF LABOUR IN ENGLAND AT THE PRESENT TIME. Published in the International Review, New York, 1876. At the present time, trade in England is depressed movement , , of wages to a degree almost unexampled in the history of British in Eng- commerce. As a necessary consequence, the tendency of the rate of wages in the principal manufacturing industries is in a downward direction. All our accu- mulated experience in the development of productive industry, in the age in which we live, does but confirm the principles laid down in 1776 by the author of ' The Wealth of Nations,' and by Mr. Eicardo in 1817. ' Labour,' he wrote, ' is dear when it is scarce, and cheap when it is plentiful.' In the relations between labour and capital in Legisia- England, it is satisfactory to observe the gradual abate- i87o. raent of hostile feelings. The solicitude of the employers for the welfare of the working class has been exhibited in a most practical form in the recent amendments of the laws relating to trade combinations. The improve- ments effected are summarised in the following passage 174 On the Influences affecting the from an article in the Times newspaper, quoted in the Annual Register: — 'By an Act passed in the session of 1875, all breaches of contract between masters and workmen cease to be, in the eye of the law, criminal offences. Damages may be recovered from workmen for breach of contract of service, and the Courts may, at the request of a defendant, order specific performance of his contract in place of damages, with the alternative of a short term of imprisonment, in default of his new undertaking. But criminal and penal proceedings can no longer be taken.' By another Act of the same session, trade combina- tions ceased to be subject to indictment for conspiracy, except in cases where the objects of the compact were themselves legally punishable. It is now admitted by the warmest advocates of the rights of workmen, that the state of the English law, as it affects the industrial classes, no longer presents any grievances of which they have reason to complain. Moderate The most Substantial grievance of the British work- trade in man is of a nature which cannot be removed by legisla- K°ngdom. tiou. lu the United Kingdom, after centuries of active enterprise in the pursuit of commerce, capital has been accumulated in a more ample store, in proportion to the population, than in any other country in the world. The result is that the ordinary rate of interest is lower in England than in any other money market in Em-ope. The average rates for the year 1875, in the open market, were as follows : — Price of Labour in Eihjland. 175 Avorage rate of Interest for 1876. London . . . . .3 per cent. Paris . H „ Vienna , ^ Berlin ' 3| Frankfort • 3i Amsterdam . H Brussels . . . 31 Hamburg . 3f St. Petersburg • H Money being abundant, and the rate of interest low, outlets for investment are eagerly sought for. It is in London that foreign countries, in a state of impending bankruptcy, have of late conducted their principal borrowing operations ; and their appeals to a credulous and ill-informed pubhc have not been made in vain. If, in any trade or business, whether in commerce or agriculture, in mines or in ships, at home or in the remotest regions of the earth, a return has been anti- cipated, ever so little beyond the low nominal rate of interest, eager and credulous people have hitherto been only too easily induced to embark their capital. A large proportion of the annual savings of the country has thus been squandered away in injudicious specula- tions ; and, even when capital has been attracted to a legitimate trade, if the profits have, for ever so short a time, exceeded what may be called the normal rate of interest, over-production has ensued, and the period of short-lived prosperity has been followed by a long depression, A serious fall in the value of manufac- tured goods has been inevitable ; and the workmen, whose wages have been unduly advanced by exces- 17G On the Influences affecting the sive demand for their labour in prosperous times, have been compelled to submit to a reduction, or to suffer the more cruel alternative of entire loss of em- ployment. state of ^Yhe recent history of the iron trade presents a iron trade. '' ^ strikino; illustration of the course of events which has here been sketched out. The circular of Mr. Muller, of Middlesborough-on-Tees, quoted in the Commercial Eeview for 1875, published in the Economist, contains the following passage : — ' The year 1875 has been a period of hard struggle in the iron trade. The crisis has been felt more severely than those of 1837 and 1866, because the iron trade had not at that time attained the dimensions it now occupies ; nor were former crises preceded by such extraordinary prosperity and injflation as had been developed during 1871-2 and 1873. ' In the course of three years a great amount of capital had found its way into the iron and coal trades, helping to bring up the means of production and manu- facture to the level of the exceptional demand then existing, but which could scarcely be expected to continue. When, therefore, this demand slackened, and prices declined, the burden was felt first by under- takings which had been established on the basis of extreme ideas. It is this great and sudden prosperity which has been so baneful in its effects on all classes of society, from the workman upwards. When, in due time, the tide turns, and the reaction sets in, outside capital begins to be nervous and fidgety, and tries to get out as fast as possible. A wholesome reaction is Price of Labour in England. 177 thereby often magnified into a disastrous crisis, a short epidemic in business, which, while removing much that is weak, injures also much that is worth preserving.' A very large proportion of the total quantity of coal raised is consumed in the manufacture of iron. After a long period of depression, the price of iron rose in 1871, to use the language of Mr. Gladstone, not by steps, but by strides, not by strides but by leaps and bounds. In September, 1871, forged pig-iron was selhng for 505., while coke was selling for from lOs. to 125. a ton. In July, 1872, the forged pig-iron rose to I2O5., more than double the price of nine months before, and coke, following the advance in iron, rose to from 375. Qd. to 4l5. a ton. These high prices implied a high rate of profit ; and forthwith everybody engaged in the iron and coal trades applied his utmost energies to the increase of production ; while new capital for the development of these industries was obtained, with accustomed facility, from the inexperienced investors who abound in an old country. The great pressure thus brought to bear on the laboiu^ market naturally caused a rapid advance of wages. Such an inflation of prices and wages was inevitably South and promptly followed by corresponding reaction. As strike. prices fell, the masters required that the men should accept reduced wages, and a long conflict naturally ensued. The most severe engagement was fought in South Wales, and it may be interesting to record some of the principal incidents of the struggle. In the years 1871 and 1872 the price of coal had been increased about 100 per cent. The culminating N J 78 On the Injiuences affecting the point was reached in 1873. Happily for the consumers, tlie exceptional rates were not long maintained. The subsequent fall in the value was extremely rapid. Steam-coal fell from 22^. a ton in October 1872, to 125. Q>d. a ton in December, 1874. In May, 1875, the price of coal was only 39^ per cent, higher, while the wages of the men were 60 per cent, higher than in 1870. In 1870, the avemge wages in the collieries were 4s. 2c?. a day. In 1874, the average earnings were 6s. ^\d. a day. After a prolonged resistance, the work- men in South Wales were compelled to surrender. A deduction of wages was fixed at 12 per cent, for three months, and it was agreed that any further change in the rate should be regulated by a sliding scale, depend- ing on the selling price of coal. A joint committee of workmen and masters was appointed, to prepare a scheme for the proposed sliding scale. Thus, after a disastrous struggle representing a loss in wages to the workmen estimated by Lord Aberdare at 3,000,000/. sterling, the truth of the doctrine, laid down by Adam Smith, was once more confirmed, that it is only when trade is in a progressive state that wages can be increased. Strikes in a rising market are generally successful. Strikes against a falling- market inevitably terminate in disaster to the workmen. ' The condition of the labouring poor is hard in the stationary, and miserable in the declining state. The progressive state of trade is in reality the cheerful and the hearty state, to all the different orders of society. The stationary is dull, the declining melancholy.' An able writer in the Commercial Keview, published Piice of Labour in England. 179 in the Economist iu March of the present year, makes feome observations, which ehicidate and confirm the great principles laid down in the quotation cited above from Adam Smith, * Decreasing employment,' he says, ' has compelled the adoption of lower wages, and has enabled the employer to obtain more and better work, for the money paid, than was possible during the ex- ceptional period of 1871-3. Indeed, it must be re- membered that our great iron and coal industries have been rendered unprofitable, not merely because wages rose inordinately, but because, as the wages rose, the quantity and quality of the work given for more money became less and less. The workshop became, in no small degree, the paradise of negligence and incapacity, evils to be cured only by the sharp physic of privation.' In the finished iron and engineering trades, the workmen have succeeded, within the space of a few years, in reducing the hours of labour to nine a day, and they have obtained a substantial advance of wages. In our own establishment, the Canada Works at Bir- kenhead, the hours have been reduced, in accordance with the rule which has come into force universally in the United Kingdom ; while the wages have been advanced since 1871, in the case of the fitters, from hs. to 5^. 6(i, per day; smiths, from 5^. 4(i. to 65. 26?.; platers, fi'om 5s. 6d to 6s. Ic?., and other trades in proportion. Being anxious that the present condition of the Mr, Pottfir s iron and coal trades iu England should be impartially letter. exhibited to American readers, I have asked Mr. Potter, the editor of the Beehive, the leading journal N 2 180 0)1 the Injiuences affecting the on tlie afliiirs of our trades unions, to state tlie case from his point of view. Tlie following is a letter of great interest received from him : — 'May 12, 1876. ' Dear Sir, — I find it is not easy to obtain the infor- mation as to the wages in the coal and iron trades you have asked for. ' First. Nearly every district in which coal is got differed in amount of wages in 1871, the period when the advances in the coal and iron trades began. ' Secondly. In each district the advances were at different times and of different amounts. • Thirdly. The highest amount of wages obtained by the men differed in the different localities. ' Fourthly. Some started from a low level and at- tained to a high standard. ' Fifthly. In arbitrating for reductions — and all the arbitrations in the coal trade were for a reduction — the actual wages, either as a starting point, or at any stage of the advance, were scarcely ever mentioned, the per- centage of advance and increase being almost the only thing alluded to. This practice, as you will see, fixed nothing, either as a starting point or resting point, over the whole scale, in rising or descending. * In the coal trade the highest wages are earned in Northumberland and Yorkshire. Advances in miners' wages began to take place towards the close of 1871. In West Yorkshire the advances were about 59 per cent, on the prices paid in 1871 ; in South Yorkshire 57^ per cent., in Lancashire 60 per cent., whilst in Cheshire and the Oldham districts the advances were Price of Labour in Etujland. 181 considerable, more perhaps thau 100 per cent., but the point from which they rose in tltese districts was very low. In Durham the advances were 57 per cent., in Northumberland 57 per cent. But in Scotland, where wages were very low, the advances reached 140 per cent. In North Staffordshire the advances were 55 per cent., and in Cumberland 54 per cent. ' The general reductions have brought wages down in all the coal districts to very near the old level. But it should be borne in mind that, where the coal is used for manufacturing purposes, the wages have been better maintained, as in Yorkshire, and certain parts of Lin- colnshire, and Derbyshire ; whilst in other districts, where the consumption has been in connection with the iron trade, they have gone down. There are places where perhaps 15 per cent, is yet retained, whilst in other places there is scarcely anything over the wages of 1871 ; and if the increased cost of living be taken into account, the gain all over has not been much, and the downward tendency still continues. ' In this matter it might not be amiss to bear in mind that the miners' unions are of recent date, the greater number having been estabhshed within the last five years. They have done a great deal in regard to the general improvement of their condition ; but their discipline is by no means perfect, and there is much to be done among them in the work of organisation. ' It is also worth noticing that in the trades where the unions have been more perfected, wages have not been affected by the state of trade. The Amalgamated 182 Oil the Influences affecthuj the Engineers, the Iron Founders, the Steam Engine Makers, the Iron Ship Builders, and the Boiler Makers, have not been reduced at all. These trades have obtained advantages during the years of briskness of trade, par- ticularly in regard to reduction of hours of work, but nothing has been 'given up by them, owing to the present slackness of trade. ' I may state that coal-heavers' wages, which are the best of the colliers, will not average more than 55. per day, whilst some of the day workers go down to 3.S. per day. It should also be borne in mind that miners cannot well work more than five days a week. ' It will not be far from the mark, if we say that the wages of miners in 1871 were 45. per day, though in some branches they were much more. What they were at the highest will be seen by the percentages stated in this summary. The following paragraph appears in the Times of to-day, which will show the condition of miners' wages in Warwickshire : ' " The Proposed Reduction in Warwickshire Miners^ Wages. — At a mass meeting of Warwickshire miners, held on Wednesday night, at Bedford, the masters' proposition for a reduction in wages was considered. The meeting unanimously passed a resolution to the effect that their present rate of wages is only 3c?. per day in advance of the rate of 1871, and that their present working hours are as long as those of competing districts. The men, therefore, hoped the reduction would not be insisted on, it being now impossible for them to procure the common necessaries of life." ' Price of Labour in Eiujland. 183 Turning from manufactures to the cultivation of Agncui- ° . tural the soil, it is satisfactory to know that the agricultural wages. labourer has shared in the generally improved condition of the labouring classes in England. Until within a recent period, the condition of the rural population in many districts was a dishonour to a country abounding in riches and resources of every kind. The blessings of education and political intelh- gence had not been extended, even now they are but partially enjoyed, among the inhabitants of the secluded villages and hamlets of the agricultural districts. In their complete ignorance of any other condition of life than that which they had inherited from their fore- fathers, they had no definite aim or plans for the im- provement of their lot. They endured their poverty with dogged submission. At length, however, the rural labourer found a powerful and eloquent advocate in the person of Mr. Joseph Arch. By arguments based upon a more or less accurate appreciation of the facts, but, in the main conclusive, the labourer was urged to ask for an advance of wages. The demands made were not extravagant. In Suffolk, for example, the men asked that their wages should be increased from 13s. to 145. a week. This modest request was met, on the part of the farmers, by the formation of a counter association, and ultimately the labourers throuijhout an extensive district were locked out. The course adopted by the employers was con- demned by all impartial and thoughtful men. In one of his characteristic and sensible letters to the Times, 184. On I he liijluences (tffectuuj the tlie ]>islio]:> of Mancliester stated the case a^rainst the fanners in plain and forcible terms. ' Could a man,' he asked, 'at the present prices of the necessaries of life, maintain himself and his famil}^, he would not say in comfort, but even witli a sufficiency of food, fuel, and clothing, to enable him to put his whole strength into his work, on a smaller income than 155. or 16.s. a week?' If the farmers said they could not afford to pay this rate of wages with their present rentals, and could prove this statement, then rents must come down, an unplea- sant ' thing to contemplate, for those who would spend the rent of a oOO-acre farm on a single ball, or upon a pair of high-stepping carriage-horses. But, neverthe- less, one of the things was inevitable.' The farmers succeeded for the time in their resist- ance to the demands of the labourers. They and their families performed the manual labour on their farms, which had hitherto been carried on by hired workmen. The results, however, of the labour movement in the agricultural class have been considerable, The la- bourers were defeated in their pitched battle with the farmers ; though they subsequently obtained consider- able advances in all those districts of England where the lowest wages had hitherto been given. Space does not permit me to follow up the labour movement in all its ramifications, in Dorsetshire and other counties. Mr. Henry The actual positiou of the agricultural labour market Taylor. ^ . . , . is, however, summed up, from a unionist's point of view, in the following letters, received from Mr. Joseph Arch, and from Mr. Henry Taylor, the Secretary of the Union of Agricultural Labourers, in reply to an inquiry. Price of Labour in England. 185 which I ventured to address to them, ou behalf of the International Review. The following is from ]\ii\ Taylor : — ' May 9, 1876. ' I would say that we have no official statement as to rates of wages in the rural districts, and in speaking of the rises during the past tliree years, we can only generalise. Having made myself intimately acquainted with the various counties in which our cause exists, I feel justified in saying that at least 35. per week has been gained on the old wages prior to this movement. In North Lincolnshire the wages run as high as 2l5., and, coming southward, they are as low as 135. or 14.s. In Norfolk, 145. or 155. is about the day price for ordinary labourers, some receiving 135. Carters obtain more by l5., or in some cases 25., than ordinary men ; but, of course, their work entails more hours, as well as Sunday duties. Suffolk is about I5. under Norfolk. Cambridge and Bedfordshire about the same, or tending rather downwards. In Wiltshire there are a large number who work for 11 5. : in fact, we have men on strike at present against that wage. Hampshire about 135. Oxfordshire the same. Warwickshire from I85. to 135. A few miles' separation often makes a great difference in wages. Of course, manufacturing towns or public works make the difference frequently. But in other cases there is a difference of I5. or 25.,' which is simply attributable to the spirit of the men, who in most cases are too ignorant to know aught of the labour market, or are altogether too spiritless to move, and otherwise invoh'ed in poverty. In most 186 On the Influences affedlmj the cases, where the union is in force, wages are better — other conditions similar — than where there is no union. This can of course be understood. The men are of more courage, because excited to move, have assistance to move, and are directed in their movements. But, migration apart, the men would get better terms if they demanded them ; but in many cases they are too timid. This is removing, however. I said there had been a rise of 3s. all round. I wish to keep within the mark ; but I believe 45. is nearer truth. And this is not all. The piece-work prices are much improved. They determine the bargain before performing the work, unlike the old custom. And then, I am assured that the independence of the men, and the liability of their moving, have caused the employers to be much more cautious and respectful in their attitude to them.' Mr. Taylor enclosed a letter, as a sample of the correspondence in which he is hourly engaged, which, omitting names, I give as a typical case : — ' May 8, 1876. ' Dear Sir, — We saw in the English Labourer that Mr. Miller goes to Canada the 24th of this month, and that he wishes to take members of the union with him. We gave our names in to our secretary, and thought to go in March. I am working for ten shillings a week, and I hope I shall have the good luck to go, for I am tired of England, for we are half-starved. If the men would all be union men it would be better for all ; but they hang back so here, and they that has joined more than half has left the ranks. They say Mr. Arch Price of Labour in England. 187 ought to come among us and cheer them up. I think myself if the speakers was to come often, our branch would soon grow stronger. Dear Sir, I hope you will send by return, and tell me whether it's free emigration, and whether we can be sent free. There are five of us, one boy 14 and a girl 9, and an older daughter, who is very weakly. She earns her living by sewing. If we are to go, please send the tickets at once, as I have many things to do before we go.' The following is from Mr. Joseph Arch : — Mr. Arch. ' Barford, Warwick : May 13, 1876. ' The wages of the farm labourers have been advanced in every county, where our Association has gone, from two to three shillings per week, viz. from 9^. to 12s. and in some parishes more, say 13^. and 14^. as in Dorset. In other counties they have risen from 10^. to Vis. and 145. as in Norfolk. In my own county, Warwickshire, the increase has been from lis. to 15^. and 16s. ; in Wiltshire, from 9s. to 12s. and 13s. ; and in Lincoln- shire, from 12s. to 16s. Qd. and 18s. In other counties, where the power of unionism has been felt, the above- named wages have been obtained, and, as a rule, retained, employers being only able to effect a reduc- tion where the labourers have been disorganised. It has been computed that four millions sterling more have been paid to the labourers during the last four years than were paid in the four preceding years. I cannot vouch for the statement as correct, because I have not gone into details on that point, but I have every reason to believe that it is true. The increased pay obtained has brought more comforts to the houses of the labourers 188 On the Influences affecting the than tliey ever enjoyed before. Better wages have reduced pauperism in the rural districts, the number of paupers being about 323,000 less, and the poor rates Ijaving fulleii from 8^?. to 3M. in the pound. At Guild- ford, Blandford, Warwick, and in every district where tlie better pay has been given, the like results have followed ; of course in proportion to tlie intelhgence of the county, as the men are better educated in some counties than in others. Take Sussex, where the education of the labourer has just ])een what the squire and parson have allowed it to be, where any Eadical publication was denounced as sedition. That despotism has had its day ; and I hope, sir, that in the paper you are about to submit to the intelligent Americans, you will not forget to mention that, with increased wages and home comforts, the English labourer has increased in intelligence.' It is necessary, in order to com])lete this statement, to refer to the situation in which the farmers are placed. While wages have advanced, they have had to contend with the most disastrous seasons within the memory of man. On January 14, 1876, Mr, Clare Sewell Eead, M.P. for West Norfolk, made a speech on the situation, which was quoted in the Economist. ' He and his friends had only a poor crop of corn ; their roots were the worst he ever remembered to have seen grown in Norfolk. The hay crop had been exceedingly light, and had been secured in very bad order: and even the straw, which they thought of great value, was so indifferent, that, when it was threshed, it broke all to Price of Labour in England. 189 pieces. Wlien he came to speak of prices, he con- sidered tliey were ruinously low, having regard to the yield per acre. Prices did not apparently depend upon the amount of corn which was grown in the country, but upon the quantity of the grain which foreigners were pleased to send us, and which would increase year by year. If the farmers had another year like that of 1875, he fancied they would see even longer and more dolorous faces than those now before them. Farmers might stand one such brunt, but they could hardly face another. If he were to sell every bushel of corn which he grew m 1875, the proceeds would not much more than pay his labour bill and half his rent ; and as he should have to expend a further amount for artificial manures, he would leave the meeting to guess upon which side his banking account would be hkely to stand after he had paid his rent, as he had done that day.' Philanthropic men have sought to reconcile the Co-opera- apparently hopeless conflict between capital and labour, by the introduction of the so-called co-operative system. The nature of the experiment will be too familiar to your readers to make it necessary that a detailed expla- nation should be given. It wiU be sufficient to point out where the principle has been adopted with success and where it has been marked by failure. It has been successful where the business to be done was easy to manage. At the co-operative retail stores, great reduc- tions of price and inprovements of quality have been secured to the consumers. Co-operation has been a failure in its application to productive industry. In 190 On the Influences affecting the a large factory, or mine, or foundry, where the labours of hundreds or thousands of men must be combined, in order to carry out extensive and complicated operations, discipline must be maintained, and the reasonableness of the orders given must be accepted without debate by those engaged in subordinate capacities. Tlie government of a factory, like the command of a regiment, must be an autocracy. Hence it is that the principle of associated effort has been found inapplicable to productive industry. There is another reason why co-operative manu- facture has been a failure. Capital is required for such undertakings. Competition has reduced the profits of manufacturers so considerably, that an establishment unprovided with the newest and most costly machinery must show an adverse balance. Unfortunately, the savings of the working classes are . not sufficient to enable them to provide the capital necessary for busi- ness on a large scale. It would be unfair to the intel- ligent and industrious working people of England to ignore the many laudable efforts they have made to raise their material and their social condition. The benefit societies, the Post-office savings banks, in which the savings of the poor are accumulated at the rate of a million and a half a year, the building societies, and the co-operative associations, attest the prudence and the thrift of multitudes, who cannot save money with- out self-denial. On the other hand, the returns of the consumption of spirits and beer in the United Kingdom show that the surplus earnings of prosperous times are largely consumed in pernicious indulgence. The con- strike. Price of Labour in England. 191 sumption of British spirits increased from 24,000,000 gallons, in 1871, to 30,100,000 gallons, in 1875 ; while the number of bushels of malt consumed was increased in the same period from 54,000,000 to 62,000,000. It has been computed that 100,000,000/. a year are annually expended in the United Kingdom in drink. If any appreciable proportion of this vast and deplorable outlay were devoted to industrial investment, the work- ing classes might become more independent than they are of the aid of the capitalist. There is, however, another, and a more practicable, Erith form of co-operation, namely, that of payment by results. During the past w^inter, this subject has ex- cited much interest, in consequence of the protracted strike of the workmen belonging to the Amalgamated Society of Engineers who were in the employ of Messrs. Easton and Anderson, at Erith. It had been urged by the officers of the Society, first, that the practice of piece-work placed the men under the tyranny of what was called the 'butty,' or piece- master, system, and that the workman under this system did not get his share of the results, as it was monopolised by the piece-master ; secondly, that it frequently happened that workmen found at the end of a job on which they had been engaged, that they were in debt to their employers, inasmuch as they had not earned the full amount of their weekly rated wages, and were forced to pay the deficiency ; thirdly, that the results were, when equally distributed, small in amount, and that earnings were reduced by the system, as wages were brought down by this process 192 On the Tnjiaences affecting the to the lowest possible point. These allegations have been carefully examined by Mr. Stark, Fellow of the Statistical Society, of London, and the result of an inquiry shows that, of 97 employers from whom in- formation was obtained only 15 pay through a piece- master ; that a deficiency hardly ever happens ; and that the additional earnings vary from 15 per cent, to 75 per cent, on the weekly ratings ! The lower earnings are exceptional, and are confined to small concerns. The weekly ratings are higher in districts where piece-work most obtains than where it is never practised ; and the percentage additions on piece-work balances are highest in those shops where the weekly ratings of the men are also on the highest scale. It would therefore appear that the best workmen are found where piece-work is the established practice. While piece-work is strongly resisted by the Associa- tion of the Amalgamated Engineers in its corporate capacity, and by a certain proportion of the workmen is much disliked, in many important districts the men who have learned its value to the able and industrious mechanic would strenuously oppose any proposal to limit its operations. Piece- Piece-work has been stronsjly advocated by the ■work. _ ^ f '' most generous friends of the working classes. Among their number, I would specially refer to Mr. Mundella. In a speech, delivered in London, on March 20, he delivered the following opinion on the subject: — 'He was an advocate of piece-work : of the 240,000,000^. a year of English exports, he believed he was right in saying that fully 90 per cent, were made by the Price of Labour in England. 193 piece. Of textile manufactures they exported, in 1874, 120,000,000/. worth, f^nd these had all been paid by the piece. So it was with iron and steel, to the extent of 31,000,000/. ; ai]d also with coal, cutlery, haberdashery, and other small articles, all of which, so far as prac- ticable, were produced under tlie piece-work system. There was more piece-work, he maintained, done in England than in any other country in the world ; and the more it was extended the better for the workmen, whether they liked it or not. Scamping was as often done under the day-work as under the piece-work system ; for the master could push the men under both, and urge them to " slip " it. The question on that point was, what amount of money was the master pre- pared to pay, and what superintendence did he give as to quality? Piece-work tended to regularity of work, and the weak were better off by it : for in slack times these were, under a day-work system, the first to be dismissed. In conclusion, he made his earnest protest against any attempt to resist piece-work, when it was honestly practicable.' Another authority on the labour question, Mr. Frederic Hill, brother of Sir Eowland Hill, who holds a high permanent position in the Post Office, and is an entirely disinterested observer, remarks, in a recent address : — ' The stimulus to ingenuity and exertion given by piece-work is, I have no doubt, one cause of the general superiority of English workmen over those of the Continent. It is well known that the rate of wages here is considerably higher than on the Continent ; and yet English manufacturers are seldom induced to 194 On the Infiuences affecting the transfer their establishments to tlie Continent in the hope of getting their work done more cheaply ; because, owing to the greater energy and activity of Englishmen, their higher wages are fully compensated for by greater production. In nothing, perhaps, has this English superiority been more manifest than in the railway work of navvies ; in which, under the gang or " butty " system, the rule of payment according to the quantity of work done, instead of by time, is, I believe, almost universal ; and we have the satisfaction of knowing that the example thus set to Continental workmen has produced the happy effect of raising their wages and permanently benefiting their condition.' The comparative efficiency of the English and the foreign workman has been much discussed in the pre- sent hard times, as it always is when trade is depressed. The truth is, that there is little difference between the amount of work performed for a given sum of money in any of the manufacturing countries of Europe. The English workmen became idle when their wages were raised and their hours of labour curtailed ; but I have faith in their skill and physical power, and in their common sense. They are not likely to allow themselves to be beaten in a fair and open competition. The best evidence of the excellence of the British workman is afforded by the high tariffs which, in many countries, where the wages are low and the hours of labour longer than with us, it is thought necessary to impose, in order to give effectual protection to native industry. If there were no protective duties, our iron- work would be extensively imported into France, Eussia, and the United Price of Lahonv in England. 195 States, whence now it is only excluded by prohibitive imports. The present depression of the iron trade is not confined to England. The Economist gives a gloomy picture of the state of this trade on the Continent. In Germany also there has been over-production. Wages have risen as rapidly as in England. Good workmen have become careless ; and the general standard of diligence and workmanship has declined. In Belgium more than half the blast furnaces are standing idle. Such a description as this is even more discouraging than that given of the trade in England. ' Our faith,' then, ' is large in time.' The growing mechanical genius of some countries may make them independent of England, but other markets will open out elsewhere. We know not what may be the future demand for our productions in Japan, in China, and in Africa. It is idle to find fault with trades unions. When men came to be employed together in numbers so vast it was natural that they should combine to promote their mutual interests. It is better to recognise these organisations, and to make use of the facilities they afford for negotiation and agreement between employers and their workpeople. Even in the most prosperous times there are mul- titudes who have to fight a hard battle in the daily struggle for hfe. Side by side with the colossal for- tunes accumulated in successful enterprise, it is sad to see so many human beings without suflicient food or raiment. The affluent may strive to satisfy the con- 2 196 Influences affecting Price of Labour in England. scientioiis scruples of tlicir position by lavish doles to the poor. But this is not enough. Indiscriminate alms create more misery than they relieve, and their distribu- tion requires an amount of careful inquiry that is not commonly bestowed. To the rich it is easier to be lavish of th(ur money than to devote their time to tlie practical work of charity. The poor, however, have a claim to both ; and a fidl and generous recognition of that claim can alone dispel the bitterness and the envy which an ostentatious display of wealth cannot fail to excite. In discussing the condition of the labour question in England, it has been impossible to suppress all allu- sions to the industrial competition between our country and the United States. We are now rivals only in the arts, the sciences, and commerce. The people of England and the United States are bound together by many ties, by their common ancestry, by their language and literature, and by the laws and the liberties they enjoy. The natural attachment, which ought to unite them, was never more sincere ; nor are there any clouds on the farthest horizon to overshadow the pleasant pros- pect of amity and peace between the great Anglo- Saxon nations. 19^ LECTUEE IX. ON CANADA AND THE UNITED STATES. Delivered at the Hastings Mechanics' Institute in 1873. In the following Lecture it is proposed to invite your statistics 1 • n ^ c • p 0^ emigra attention cliieny to the prospects oi emigrants from tion. Europe to North America. As the principal field of emigration for the redundant population of the Old World, America is a country of surpassing interest. We are only too famihar with the difficult problem of pauperism. Our pauper population may be num- bered by hundreds of thousands — a truly melancholy spectacle, when seen side by side with the wealth and luxury of our age and country. The pressure has been partially removed by the vast emigration which has taken place from our shores. Between 1815 and 1871, both years inclusive, 7,266,000 persons emigrated from the United Kiug- dom. Of these 1,424,000 went to the American colonies, and 4,671,000 to the United States. Emigra- tion was most active between the years 1850 and 1854. Since the latter date it has fluctuated with the com- merce of the country, having always been most con- siderable in years when it lias been most difficult to obtain steady employment at home. Of late there has 198 On Canada and the United States. been a considenible decrease in tlie iiiiinbcr of Irish and a corresponding increase in the number of Enghsh emigrants. In 18G4 tlie numbers of English and Irish emigrants were 56, CIS and 115,428 respectively, or in the proportion of 33 to 67 ; in 1869 they were 90,410 and 73,225, or in the proportion of 55*27 to 44 '7 8. Nevertheless, as compared with tlie population of the country, Irish emigration is still much greater than cither the English or the Scotch. The proportion in 1871 was — Irish , . 1-31 per cent, of the population, English . "45 „ „ Scotch . -57 Canada. In 1870, of the whole number of emigrants 198,843 went to the United States, and only 32,671 to British North America. It is to be regretted that so many of the most valuable of our population have ceased to be British citizens ; but it is, as the Emigration Commis- sioners observe, an inevitable consequence of the extent of our emigration. Canada cannot at present absorb more than from 30,000 to 40,000 emigrants a. year. There are two special obstacles to extensive emio;ration to Canada. The first and most serious is the severity of the climate. The winter lasts at least two months longer than in the States, and it is far more severe, putting a stop to all agricultural occupa- tions. The other difficulty is the want of railroad communication with the remote but fertile districts in tlie Far West. In the Eed Eiver Settlement, Indian corn, wheat, barley, -oats, flax, hemp, turnips, tobacco, (Sec, can be readily grown ; but there is no means of On Canada and the Lnited States. 199. taking the produce to market. A project has been set oil foot for estabhshing a line of railway through the Canadian Dominion to the shores of the Pacific. It is doubtful if it could be carried into execution without an Imperial guarantee. In the present state of public opinion at home on these subjects such a guarantee would be given with reluctance ; and no assistance would be granted by the Imperial Government to the numerous subordinate railways, which it would be necessary to construct as tributaries to the main artery of communication. As a set-ofF against the drawbacks, which have been aUuded to, Canada has the advantage of cheap food ; while the wages for all who can find employment are as high as in the United States. Skilled farm hands earn from 30/. to 40/. a year, with board. Common labourers earn from 5s. to Qs. 3c?. a day, and skilled artisans from Gs. to 16s. a day. It should be observed, by way of caution, that employ- ment cannot be obtained at these rates during the five or six winter months. The prices of some of the principal articles of food are as follows : — The four-pound loaf of white bread costs hd. to M. ; salt butter, b\d. to 6c/. per pound; meat, 3^c/. to hd. and Qd. ; cheese, A\d. to lid. ; potatoes, \s. to 2s. per bushel ; eggs, 6c?. to 9(7. per dozen ; milk, per quart, 2^d. to 36?. ; beer, 2d. to 5c?. per quart ; tobacco. Is. to 2s. per pound ; and other articles in proportion. While the facilities for obtaining land in most of the Canadian provinces are not equal to those accorded 200 On Canadd and the United States. to emigrants in the United States, tlie price of land cannot be considered immoderate. The lands in the Province of Manitoba jmd the North-West Territory- are held by the Dominion Government, which at present gives free grants of IGO acres, on the condition of settle- ment. Dominion lands in other provinces are sold at 45. 2c?. an acre. The physical geogra[)hy of the North- West Territory may be appreciated, when it is mentioned tliat a light gig may be driven for a thousand miles, in a straight line, in the open prairie, over land well adapted to the production of wheat. It may be interesting to you to know that in 1821 no less than 702,000/. were remitted by emigrants from the United States and Canada to their friends in the Old Country, of which the sum of 310,000/. was in the form of prepaid passages. The al:)Ove remittances are believed to have been made almost exclusively by Irish emigrants to their relations in Ireland. United Turning to the United States, the vast area of States. o _ .... country comprised within its limits may be divided into three great regions : — 1. The Mississippi slope, between the Alleghanies and the Atlantic Ocean. 2. The Mississippi basin, between the Alleghanies and the Eocky Mountains. 3. The Pacific slope, between the Eocky Mountains and the Pacific Ocean. These three divisions embrace an area of 3,034,459 On Canada and the United States. 201 square miles, of which 2,867,185 square miles were originally in the hands of the Government. Under the liberal system, introduced under the ^ome- *' ' stead Law. Homestead Law, the settlement of the wide tracts still unoccupied is proceeding with marvellous rapidity. Any individual who is a citizen of the United States, or has taken the initiatory steps to become a citizen, can secure a grant of 160 acres of land upon the mere payment of office fees, amounting to from 21. to 4/. To obtain a complete title, the land must be cultivated for five consecutive years. Only one homestead privilege is allowed to a single individual ; and thus the evil effects of an excessive monopoly of the soil are avoided. The rapid extension of railways has supplied the Forpijmera p / . ^^ in United ready means of access to great distncts of the West, states. which must otherwise have remained desert, and has materially increased the tide of emigration. Already the emigration from Europe has led to the formation of vast communities in the United States, which pro- mise to become, at no distant day, flourishing nations, retaining the distinctive language, customs, and national characteristics of their forefathers in the Old World. There are now resident in the State of Xew York ahnie 110,000 English, 530,000 Irish, and 317,000 Germans. The City of New York is the second largest Irish and the third largest German city in the world. In order that some appreciation may be formed of Wages. the prospects of emigrants in the States, I will quote from the recent report of Mr. Archibald, the British 202 On Canada, and the United States. Consul in New York, the rates of wages paid in tliat State, and compare with the earnings of the labourer the cost of some principal articles of food. Let us take a few representative trades in the great manufacturing industries. Weavers in cotton mills earn 32^. a week, or 39 per cent, more than the corre- sponding wages in England. The average excess of wages paid in the cotton mills, in 1869, over the rates in Great Britain was nearly 40 per cent. In woollen mills, weavers earn on an average 34s. 4^. a week ; and the wages of all the various classes of operatives averaged 25 per cent, above the corresponding rates in England. In iron foundries and machine shops the weekly wages of some of the principal trades are as fol- lows : — Iron moulders Macliinists (ordinary) Boiler makers Do. lielpers . Riveters Blacksmiths . Engineers Millwrisrhts . The average excess of wages £ s. 3 7 2 15 3 2 1 15 3 1 3 10 2 17 . 3 18 n this industry over the corresponding wages in England is 86 per cent. In agricultural industry experienced hands earn in summer, without board, 95. 2d. a day, and in winter 6s. Ordinary hands earn in summer 7s. 5c?., and in winter 4s. 4,d. The wages of able seamen, shipped at the port of New York, are 6/. 12s. a month, nearly double the usual rates in En^jland. On Canada and the United States. 203 The demand for good domestic servants is always greater than the supply. Female cooks of very ordinary skill obtain from 3/. IO5. to 5/., and housemaids from 54.9. to GO5 a month. The iDurchasincr i)ower of money in New York is ^"rehas- ^ 01 J jiig power seriously diminished by tlie high price of labour, the of money. protective tariff, and tlie large issues of inconvertible paper currency. House rent, fuel, woollen clothing, and medicines are 100 per cent, dearer than in England. Articles of hardware are GO per cent., earthenware and glass ware 20 per cent., cotton clothing, sugar, and tea 10 per cent, dearer. On the other hand, salt pork, a description of food largely consumed by the working classes, is about 25 per cent, cheaper, while beef, bread, butter, and cheese average about the same in both countries. The average cost of living for a skilled labourer with a family exceeds by about 70 per cent, that of the same class in England. Of unskilled labourers those who fare best in America are domestic servants, and they are the largest depositors in the savings banks. Mr. Archibald entertains the opinion that the diffi- culties originating in the high rates of wages have been successfully overcome in America in many important trades. More work is got out of labourers, whether skilled or unskilled, than in England. There is vastly less drunkenness and waste of time. An eminent American ship-builder, who has recently visited the shipyards of England, has stated that oin* joiners' work costs twice as much as the same work in America. 204 Oti Canada and the United States. Prospects The prospect of becoming proprietors of land, the grauts. greater social equality, the advantages of education for children free of cost, and the political privileges conse- quent on naturalisation, will always offer irresistible attractions to large numbers of our fellow-countrymen. The most energetic and skilful of their number will find opportunities of advancement which do not exist at home. The British Consul at Baltimore has given two illustrations in point. The son of a tenant of 4 acres upon the estate of a nobleman in Ireland emigrated to the States in 1848. At first he worked as a labourer in a foundry, but afterwards he became a gardener. In 1870 he transmitted to Ireland money enough to pur- chase his landlord's castle ; and at the same time he owned a sugar plantation on which he had spent 40,000/. He had also a fine farm and a handsome town residence. In another case an emigrant from a British possession, who cannot write his own name, has become by steady industry worth over 20,000/. He is not a penurious man, but on the contrary charitable in the highest degree. These cases, however, are exceptional ; and those who are fairly well-off in the Old Country will not find it easy to improve their condition by emi- grating to America. The best field for the emigrant is the Far West. But in the new settlements in the wide solitudes of the prairies many of the amenities of our advanced civili- sation are necessarily wanting. Social con- I uow procccd to offcr a few observations on the American social Condition of the American people. The universal reop e. diffusion of education is one of the happiest features of On Canada and the United States. 205 American life. Attendance at school is the universal practice, and in many States has been made compulsory by law. The schools at Boston, and all those connected with the manufacturing establishments, which I had an opportunity of visiting, are altogether admirable. The buildings, the system of instruction, the teachers, all are models truly worthy of imitation in England. The teachers in the normal schools for girls, and in the lower schools for boys and girls, were young women of sin- gular grace and refinement ; and their intellectual powers were abundantly manifested in the manner and the matter of their teaching. The difficulty of inter- mixing children of all grades of society in the same school, which has been regarded wath so much appre- hension by some members of the London School Board, has not been felt in America. It is doubtless to the general education of the people Education, that we may attribute the failure in America of the advocates of those Socialistic heresies, which find a too ready acceptance in Europe. The general education of the people is essential to good government in a republic. In America, however, the authority of the Government is but little felt by the masses of the people ; and, happily, they are too intelligent to re- quire either its guidance or control. In the States the pursuit of commercial enterprise, as is natural in a new country, in which there are comparatively few persons who have inherited indepen- dent means, absorbs the whole energies of the people. Hence, while there is no ignorant class, and instruction of a high order is widely diffused, the number of those 206 On Canada and the United States. who have devoted themselves to literature as a pro- fession or an occupation is comparatively small. Tlie want of a literary profession is most manifest in the inferior quahty of the periodical literature. The news- papers especially, while all the mechanical arrange- ments of the establishments are admirable, are often deficient both in hterary power and political wisdom. It must not be inferred from these remarks that there are no good newspapers and no literary culture in America. Our most eminent authors are read as ex- tensively as at home. The taste for reading is almost universal. In some cities, and especially in Boston, where the influence of the neighbouring Harvard College has been most valuable, all classes, including in an eminent degree the mercantile community, are highly cultivated. Perhaps no character in society is more charming than the cultivated merchant, who possesses both the re- finement, the knowledge, and the graceful imagination of the man of letters, combined with the practical ex- perience of the man of the world. This felicitous com- bination is often found in Boston society. I must not dismiss this branch of my subject with- out rendering my humble but sincere tribute of praise to the ladies of America. They have taste in dress, personal beauty, charming manners, and high cultiva- tion. The general impression, which must remain with all who have mixed largely in American society, must be highly favourable to our fair cousins on the further shores of the Atlantic. Nothing is more interesting to us to know, nothing On Canada and the U?iited States. 207 is so difficult to ascertain, as the real state of public Reeling in ^ America feeling in America towards Eno-land. In some quarters towards ° _ °_ -1 , England. doubtless the old jealousy exists. The Irish section of the population of the United States cherish an hereditary and unreasoning hostility towards England. It is not agreeable to draw an indictment against a nation ; but our experience of the difficulty of main- taining the authority of the Government in Ireland is not without its counterpart in the experience of the great American Eepublic. It seems impossible to in- fuse into the minds of the Irish people, even by the largest concessions of political liberty, that natural love of order and allegiance to their Government which are essential in a free state. While, therefore, it must not be supposed that England has no enemies in America, we may confi- dently believe that among the more numerous and influential sections of the American people there is a strong attachment to the Old Country. Time is necessary to remove completely a long-standing jealousy. But I have been assured by those who know America well that, if England were unjustly assailed by a combina- tion of the Continental Powers, a feeling of sympathy would immediately be aroused in the United States, and that we should find in that country a faithfid and most powerful ally. The attachment to the Queen, so deeply and universally felt in the United States, is a proof of the many close and indissoluble ties which bind the two countries together. The reference of the ' Alabama ' claims to arbitra- tion may be accepted as a happy omen for the future. 208 On Canada and the United States. Surely it gives us cause to hope that tlie benign in- fluences of Christianity are beginning to exercise a stronger control than heretofore over the evil passions of mankind, when the two great nations of tlie Anglo- Saxon race — both too professing the Protestant faith — have led the way in accepting a peaceful adjudication upon questions in dispute which, in a former age, would not have been settled without an appeal to arms. It is alleged that in accepting an arbitration we have destroyed the prestige of our own country. I differ from this opinion. I am no lawyer, but I am convinced that we were in the wrong. The ' Alabama ' had been constructed, not only in violation of our own statute law but in defiance of the Queen's recently issued ^Proclamation. It was surely inconsistent to give to such a vessel a hospitable reception in our colonial ports. All our diiferences being now adjusted, it is the duty of every English and every American patriot to exercise whatever private or public influence he may possess in order to preserve an intimate alliance be- tween the two countries. The United States have received from us their religion, laws, language, and literature. They have given in return to innumerable emigrants from our shores a hospitable reception and happy homes. These are mutual benefits, of which the wise and thoughtful men of both nations will never be unmindful. 200 LECTUEE X. WORK AND WAGES IN 1877. Trades Union Congress, Leicester, October 1877. Before I enter upon more important topics, I desire to express my high appreciation of the honour of being invited to address the Delegates from tlie Trades Unions at their annual Congress. Connected as I am with the employers of labom-, you cannot expect me to come here to encourage an aggressive movement against men of ray own order. All that you can ask from me is that I shall hold in my hands the equal scales of justice as between capital and labour. I liave before had occasion to vindicate the character of the English workman from unmerited strictures. I hear the same charges renewed to-day, and again I ask for evidence to prove that the English workman is deteriorating ; and first, let us ask ourselves, has the volume of our trade diminished while that of other nations has increased ? This question may be satisfactorily ans^vered by Progress a reference to Mr. Leone Levi's History of British commerce. Commerce. It is there shown that while we export produce and manufactures of the value of 6/. 35. 2d. per head of our population, France export's at tlie rate of p 'J 10 WorJi- awl Wa(jes in 1877. '11. 1 8.S. 8f/., and Italy at the rate of 1/. 4.9. M. per head. Our trade doubled itself in the fifteen years 1855-70. The exports and imports in 1870 amounted to 547,000,000/., and the progress has been so well sus- tained through the period of depression, from which we have not yet by any means emerged, that in 1876 tlie total amount had grown to 631,000,000/. Mr. Levi very truly observes, in commenting on these re- markable figures, that what gives an o[)en market to British merchandise all over the world is its universal adaptation to the wants of the populations of every chmate. Luxuries are useless to the masses of mankind, but calico, iron, and hardwares are necessaries even to the least civilised peoples. The demand for these articles of universal necessity would not be supplied almost exclusively from England unless our labourers were, as he says, ' really good workers.' Wages may be higher here than elsewhere, but the labour per- formed is cheaper, from its greater effectiveness, and from the saving of unnecessary supervision. French Let US uow examine the effects of recent treaties of treay. commcrcc ou international European trade. A valu- able paper on this subject was read by Mr. Leoni Levi in December last before the Statistical Society. Let us take the trade between the United Kingdom and France as an illustration. By the treaty of 1860 France en- gaged to abolish all prohibitions, and to admit certain articles of British manufacture at duties not exceedinor 30 per cent, ad valorem, to be further reduced to not exceeding 25 per cent, in October, 1864. Great Britain, on the other hand, consented to abolish duties on es on Co) tine at. Worl' and Wage.<^ in 1877. 211 Frencli silks and other manufactured goods, and to re- duce the duties on French wines. What have been the results of the treaty ? It is true that our imports from France have risen from 17,000,000/. to 47,000,000/., but our exports to France, in spite of the heavy duties to which our goods are subjected, have increased to the extent of 185 per cent. These figures show both the growth of our trade Fiucrua- generally and the ample share of advantage which we wag have secured under commercial treaties. That success could not have been attained except by the co-operation of skilful labour with well-directed capital. The Eng- lish workman may, therefore, claim to share with his employer the merit due to that combination of cheap- ness of cost with excellence of quality, wdiich has secured for us the pre-eminence we enjoy in the export trade of the world. Grave faults are imputed to our working classes, and their conduct in many instances deserves censure. But, wdien we look abroad, we hear exactly the same complaints under the same circumstances. For information on the relations between labour and capital in foreign countries I would refer more especially to the admirable reports of our Secretaries of Legation and Consids. Sir Henry Barron's report on Belgium in 1872 describes the condition of that country in a period of unexampled prosperity. A great rise in wages had taken place, but the improvidence of the people was aggravated with their prosperity, and there was an actual decrease in the deposits in the savings banks. Pig-iron doubled in value in six months ; but the prices of labour and materials rose to such exorbi- p 2 212 Work and Wages in 1877. tiint rates as to absorb tlie "whole profits of the trade. The zinc, glass, and woollen industries have passed through crises of equal severity, Germany. In Germany, during the period of universal inflation between 1871 and 1872, wages were advanced not less rapidly than in England. It was a period of immense profits all round. The make of iron was increased from 1,500,000 tons in 1871 to 2,250,000 tons in 1872. In the prices of coal and pig-iron there was an advance of 100 per cent. The rise of wages in all branches of trade was 37 per cent, over the average of former years, and the prices of all the raw materials of industry were 50 per cent, higher. Unhappily, this great prosperity brought about no permanent improve- ment in the condition of the industrial classes. The cost of living was increased to such a degree that the workmen were but little better off than before, and money was more freely expended in intoxicating . liquors. 1 must confine myself to a single example in order to show what alternations of misery and want were experienced in Germany. The case is taken from the report of Mr. Savile, Chief Clerk of the Treasury Department of the United States, and is pub- lished in a volume on Labour in Europe arid America^ compiled by Mr. Young, Chief of the Bureau of Statistics of the United States. Mr. Savile describes how, at Chemnitz, a great manufacturing centre, the advance of wages from 1870 to 1872 was accompanied by a still greater advance in the cost of living. When the commercial reaction ensued wages fell 25 per cent. ; but there was no corresponding fall in the price of food, and widespread misery was the inevitable conse- Work and Waged in 1877. 213 qiience. The meagre dietary of the people did not mclude meat more than ouee a week. A few touclies will sometimes produce the most striking effect in a picture ; and an audience of English workmen will probably appreciate most fully the low standard of hving to which the people had been reduced, when it is mentioned that Mr. Savile refers in hopeful terms to the establishment of a market at Chemnitz for the sale of horse-meat, which, being comparatively cheap, gave them more for their money, or enabled them to get meat oftener than formerly. In the large towns of Germany there is a widespread though morbid spirit of disafiection to the political and the social organisation under which they live. The Socialist agitation is described as a purely negative opposition to the existing order of things, and to every proposal of reform. It opposes popular education, and it is indifferent to pohtical progress. The only excep- tion to this negative policy is the tendency to encourage strikes. It is not necessary to insist at greater length on the existence of troubles elsewhere. The burden we have to bear is not lightened because a heavier load is imposed on others. I shall, therefore, proceed to examine the statement, which is so often repeated, that labour is dearer in England than on the Continent. It is assumed that, because the scale of wages is Belgium. higher, there is a corresponding difference in the net cost of production. It is certain, however, that low wages do not necessarily imply cheap production. The melancholy condition of certain branches of trade in Belgium has been already adverted to, and yet in 214 Work and lV(i(jt\'i in 1877. American competi- tion. Belgium the wages of the mill operatives have been reduced so low us scarcely to cover the cost of sub- sistence in cheap seasons, and to leave the workman with an inevitable deficit in dear seasons. Not more than 40,000 workmen in the whole country have accounts at the savings banks. Hitherto I am convinced that, in those trades where we are exposed to foreign competition, the English workman has, in the main, performed an amount of work fully proportionate to the difference of wages in his favour ; and the fact that we are running a close race in some branches of trade with a country, where higher wages prevail than those earned in England, is a ])roof that the cost of labour is not correlative with the scale of wages. A recent return of the import duties levied on articles of British produce shows conclusively that foreign producers, notwithstanding the nominal cheap- ness of labour abroad, are afraid of free competition with our own manufacturers. The following are a few figures taken from the return in question : — Articles Russia Gei-many Belgium France United States Cotton yarns . Jute (canvas and sacking) Iron. Pig ... . Bar ... . Eails for Eailways . Per cent. 38 10 17 50 28 Per cent. 7 5 free Per cent. 7 to 19 10 7 5 5 Per cent. 11 to 26 27 35 35 to 50 Per cent. 75 30 to 40 42 67 to 100 46 to 83 The United States afford very striking evidence of the extent to which the influence of a high rate of wages on the cost of production may be neutralised by superior organisation, by superior industry in the Work and Wayes in 1877. 215 worker, and by the substitution of mechanical for manual labour. The small arms for the Turkish army have been largely supplied from the United States. The ability of tlie Americans to compete with the makers in this country in the manufacture of an article, in which so much labour is employed, is a very signi- ficant circumstance. In cases where the raw material is the largest factor in the total cost — as, for example, the timber in a wooden ship — it might have been readily understood that we, who have no virgin forests, should have been unable to build wooden ships as cheaply as they can be produced in Canada or New England. But in the case of small arms there are no circumstances which are specially favourable to the United States ; and Mr. Stanley James, quoted by Mr. Young, cal- culates the wages of mechanics in the Eastern States and the large cities of America generally as 100 per cent, higher than in England. With regard to the comparative rates in the prin- Wages in cipal trades in the United States, Mr. Lowthian Bell, in states. his report on the iron exhibits at tlie Philadelphia Exhibition, gives the following table of daily wages as the result of many inquiries in 1874 : — Trades United States North of England Highest Lowest Average Good men Carpenters . Smiths Bricklayers Machinists . Engiuemen s. d. 12 3 13 2 18 10 11 3 5. d. 5 7 6 2 7 6 7 s. d. 9 9 5 12 3 8 3 6 6 s. d. 5 6 6 6 5 10 5 6 In America, as in England, it will be observed that 216 Work caul ir(/^6'.b- in 1877. the building trades are disproportionately paid. The reason is the same in both cases : the demand is essen- tially local, and wages are given, which could not be sustained, if the price coidd be determined upon a balance of demand and supply distributed over a wider area. In all trades, which are subject in any degree to the influence of foreign competition, the American workmen are conscious of the necessity of working hard and well, in order to keep up the high wages which they are at present earning. I do not shrink from telling the representatives of English labour, whom I see before me, that any rules and regulations whereby the native vigour of the British workman is restrained must in the end prove fatal in their consequences. No doubt the effects are less baneful, in a commercial point of view, in the building and other trades, which are not brought face to face with foreign competitors. But, if improved dwelhngs are urgently needed for the working classes, the unwisdom of imposing rules and restrictions, tending to augment the cost of building, must be pateut to all. America Til CSC remarks may be enforced by a reference to Mr. Lowthian Bell's comparison, made in 1874, of the net cost of labour in the coal mines in the United States and England. The American miners earned on the average 9s. a day. They worked for ten hours, and extracted six tons of coal. The average earnings of the English miners were 5s. 2d. a day, spending about seven hours in the pit and six in actual work. This was equal to Is. 2d. per hour, for whicli the quantity worked was al)out 11 c\\t. Miners in the United miners. Work and lVas in 1877. employers and their workmen have become less intimate than before. In my own case the discontinuance of my father's business has deprived me of opportunities, which I should have greatly prized, of associating with the working class. Many prejudices may be removed by an lionest interchange of ideas, face to face, in a spirit of conciliation, and with a mutual and sincere desire to reach the truth and to maintain justice. 221) XL LABOUR AT HOME AND ABROAD. A Lecture at the Central Hall, Leicester, October, 1877. Having discussed Trades Unionism on two previous English occasions during the present Congress, I shall confine France. myself this evening to otlier subjects, which may pro- bably be interesting to an audience composed of tlie representatives of the great trades of tlie country. I need not say that I come here imbued with no pre- judices against the English workman. I cannot but remember that when my father went over to France, as the pioneer of the business of the railway contractor in that country, he owed his success, in a great measure, to the superior qualities of a body of five thousand English workmen who followed him to the Continent. It may not be inappropriate to mention that the works of the railway connecting Paris and Eouen were let to the contractors in many separate contracts. Every bridge, tunnel, culvert, cutting, embankment, and station formed the subject of a distinct competition, the English estimates being the lowest in every in- stance. Though much of the work was new to them, the French had had considerable experience in some important branches of construction, and especially in 230 Ldlioxr at Home and Abroad. Wages in France. In Eelgium. tlie building of timber bridges across the Seine. But there were other important elements of economical pro- duction which were altogether new in their experience ; I mean the pluck, and energy, and skill of the British workmen. When those five thousand men, of whom I have spoken, first commenced to excavate cuttings and to pile up embankments, the French held up their hands in amazement at Herculean labours which they were incapable of imitating. The meagre diet of the French labourers rendered them physically incapable of vieing with the Englishmen. The industrial classes in England still retain many advantages, in regard to their standard of living, over the operatives of continental Europe. The physical condition of a large portion of the French population has not materially changed during the last twenty- five years. It is stated in Lord Brabazon's report that there are nine million families in France, of whom one million are in easy circumstances. The inhabitants of towns in France constitute about two-fifths, in England four-fifths of the entire population. The food of the French workman is inferior to that to which the Englishman is accustomed. In Eouen and many other manufacturing towns the dwellings of the labour- ing classes are wretched. The condition of the female weavers of France is thus described by Monsieur Jules Simon : ' They are miserably lodged, clothed, and fed ; and with all this they are obliged to work twelve hours a day.' In Belgium, again, where wages are extremely low, the working classes are as a consequence wanting in Labour at Home and Abroad. 231 strength and vigour. The employer would secure a more advantageous return for tlie money expended on labour if the workmen were more liberally paid. Mr. Grattan, the British Consul at Antwerp, gives a melancholy description of the condition of the working classes of Belgium. ' The standard of wages,' he says, ' taking all things into consideration, is undoubtedly insufficient to satisfy the legitimate wants of the working population.' The average wages of mill operatives do not exceed \s. Sd. a day. ' The working days will hardly exceed 250 in the year ; making a maximum earning of 20/. in a year, or about 8^. a week. Adding, in the case of the married operative, with a wife and three children, 10c?. a day, earned by some member of the family, a weekly amount of 14^. will possibly be realised. The ex- penses of the family, calculated at the lowest possible rate, in ordinary seasons, fully absorb the earnings. In dear seasons the expenditure will exceed the earn- ings by at least 4^. a week. Beer, meat, and sugar are not included in the dietary. Diminish the family by one child, or add one-third to the wages of the operative, and it still remains next to impossible to make both ends meet. There are probably from ten to twenty thousand working men's households in Belgium in this sad position.' Tliis description sufficiently proves that the wages of many trades in Belgium have been reduced to the minimum required for the meagre subsistence of the people. On the other hand, it is certain that the industry of Belgium has not escaped the depression experienced elsewhere. My conclusion is, that to minimise wages is by no means the most 232 Lahoiir at Iloine and Abroad. effectual method of securing economy of production. It is a cheaper and a liap})ier rule to give a fair day's wages for a fair day's work. I forbear to touch upon the social aspect of the subject. Tlie prosperity of trade must be a thing little to be desired if it could only be attained at the price of misery and destitution. Cost of The last report by Captain Tyler on the railways Kaiiways. of the British Empire throws some light on the relations between wages and the cost of production in this country. While there have been considerable advances in the wages of all classes of workmen employed in the construction of railways, the average cost per mile of railway open has remained for many years approxi- mately the same. It was 34,099/. in 1858, and 34,100/. in 1870. The average had risen to 38,000/. in 1875 ; but, as Captain Tyler remarks, the more recent rail- ways have, with the exception of the Metropolitan and some others, been constructed at a much lower rate of cost per mile than the figure of 34,000/., which was given as the average from 1858 to 1870. The inference is, that the pressure of the higher price of labour has stimulated in the utmost degree the contriving and organising faculties of employers. More machinery has been used, an ever-widening experience has sug- gested more effective and economical methods of work, and profits have been reduced to a minimum. We are passing through an era of commercial depression. It is said that the trade of this country has been prejudicially affected by the rise in the price of labour. It is however, to be observed that the same reaction has occurred in countries where the Labour at Home and Abroad. 233 lowest rates of wages prevail. In the iron trade (as it iron trade, is shown in the commercial history of 1876 published by the Economist) the state of aflairs in Germany and Belgium — countries of low wages — is most unsatisfac- tory. In France the railway iron trade is dull, Creuzot being described as almost deserted. In the United Kingdom, though the depression has been extreme, there was an increase of production m 1876 in the Cleveland district and in Scotland ; and the indications for the future are decidedly more hopeful. The high price of labour has not been the sole cause of commercial depression. In 1876, according to the circular of Messrs. Fallows, operatives worked steadily throughout the year. Colliers' wages had fallen 12i per cent. ; but the workmen must not forget that the market value of coal had fallen at least 20 per cent. The reduction in prices in the coal and iron trades may be appreciated from the following figures : — 1872^3. 187&. Common engine-coal at pit 7s. 6(Z. 2s. Gd. Ordinary pig-iron at works . 6Z. to 7Z. 21. 5s. to o^, StafFordsliire bars 16L 81. Best Bessemer rails . . 16^. 10s. 61. 15s. The profits derived from the inflated prices just quoted gave sudden and colossal fortunes to the em- ployers and unexampled wages to the workmen ; but the cost of production speedily exhausted the spending power of the consumers, and we see the inevitable result in the number of furnaces standing idle, and in the present reduction of wages. It may not be super- fluous to point out that a very considerable proportion of 23-1 Labour at Home and Abroad. the profits of the employers ia the iron and coal trades was applied to the sinking of new pits and the exten- sion of works, which have ever since remained but partly employed, the capital invested having thus been wholly unproductive. Nor must it be forgotten that, by the Mines Regulations Act and the Workshops Act rules have been established which, while they are doubtless beneficial, necessarily entail expense. It is said, indeed, that the first-named Act has resulted in an increase in the cost of getting coal to the extent of Is. or Is. Qd. per ton. As an able writer in the Pall Mall Gazette has truly remarked, the cost of these im- provements must be borne by the consumer ; and the restricted demand of the last three years has shown that, during the period of depression, the consumer has been unable to satisfy the calls that have been made upon him. Over-pro- British trade has suffered at least as much from reckless competition as from exorbitant wages. All the foreign markets have been overstocked with British goods. In order to encourage sales in a glutted market, prices are reduced. To cover the reduction in prices, manufacturers exercise their ingenuity to produce a showy article of inferior quality. The reputation of British goods in China has been almost ruined by the use of size to give a fictitious appearance to cotton goods. Sir Brooke Robertson, the British Consul at Canton, in a recent report, has pointed out in the most forcible language the necessity for restoring the character of British industry in the East by an aban- donment of these practices. I have pointed out how the returns upon capital Labour at Iloine and Abroad. 235 liave been diminished ut least as much by rash specii- Foreign in- lation as by the aggression of trades unions. The contractors for loans to foreign States not entitled to financial credit have worked the London Stock Ex- change until the supply has at length been exhausted. The misplaced confidence of tlie public has been destroyed by the revelations of the Committee ap- pointed to investigate the subject. A field no doubt there is for the reproductive employment of the savings of the Old World in the development of the resom^ces of the New. Many a brave and laborious settler in the Far West of North America, or in the wilds of Aus- tralia, could convert to profitable use a well-timed loan of 100/. from the imeraployed deposits in the custody of the London bankers. But how are you to bring together the lender and the borrower ? There must be, as it has been said, more prudence Short in the application of capital ; and the exaggerated profits of 1871 cannot be revived. The trades unions, on the other hand, must acknowledo;e that this is not all. It has been proposed by the trades unions that the depreciation of prices should be arrested by a limi- tation of supply, and that the mill operatives should work short time. Such a suggestion must be received with extreme caution, lest, l^y makincj production more costly, you raise the price of British goods in the neutral markets to such a point that you are undersold by the foreign manufacturer. Again, if, by restricting its use, you prevent the money invested in costly machi- nery from being reproductive, the result must be that capital will be diverted from manufacturing to other 230 Labour at lloine and Abroad. bmnches of business, where a more satisfactory return can be obtained. Factories, steanisliips, railways, are created by the savings of the pubhc, who are perfectly unfettered in tlieir choice of investments. Tliere are cases in which it is the wisest course, in the interest alike of capital and labour, to compensate for low profits by selling a greater quantity of the commodity. In other cases of overtrading, the appropriate remedy is a temporary limitation of production. There are no abstract rules for all the varied contingencies which may arise in the industrial world. Each case must be dealt with according to circumstances. It is equally the duty of the workman and of his employer to watch closely and continuously the course of events, with a view to select a fitting opportunity for the advancement of prices or the improvement of wages. Every alteration, whether of prices or wages, is a question of expediency and opportunity. Conditions In all classes an advance of wages must be made iinclGr which subject to two conditions : (1) The cost of English be raisST labour must not be permitted to exceed the cost of foreign labour. (2) The scale of prices cannot be raised beyond tlie capacity of the consumer to bear them. On the other hand, if the working men offered no resistance to the downward pressure, the reduction would continue, until wages had been reduced to the minimum required to cover the cost of subsistence. In England, if the workman were to make such a sacrifice, the employers would reap no substantial or lasting benefit. So keen is the competition in every branch of trade, that the full benefit of tlie reduced price of Labour at Home and Abroad. 2o7 labour would be given to tlie consumer. If labour ■were cheaper in England than it is, the workman would share with the whole body of consumers the advantages of a reduction in the cost of living, which would go far to compensate for the reduction of wages. Much of the objection wliich exists in the public Cost of '' living m mind towards trades unions rests, as it must be con- England, fessed, on the general reluctance to see any effort made to raise the price of labour ; but if it be inexpedient to seek for an advance of wages, all those requirements or prejudices, which make the cost of living of the working classes clearer in this country than on the Continent, may with equal justice be condemned. The British workman has a prejudice against brown bread, and insists on eating white bread. If he were content with brown bread, he would Hve more cheaply. But what is the effect of this prejudice ? It is that the British workman will prefer to labour more, and live on white bread, rather than labour less, and live on brow^n bread. It is needless to give further details in illustra- tion. All political economists are agreed that a high standard of living is an encouragement to industry, and that a low standard of living tends to indolence. A de- mand for higher wages is only the aspiration to a higher standard of living in another form ; and, provided that it be recognised that for the higher wages an equivalent must be given in better work and more work, there can be no abstract objection to the demand. A rise in w^ages, without an equivalent increase in work per- formed, is only possible where there is a margin of profit available for division among the workmen. It Workmen in United 238 Labour at Iloiiie and Abroad. is, as it has been sliowu above, the business of trades unions to gather materials for forming a judgment as to whether such a margin exists. Wliere it does not exist, and the workman knows tliat he must do more work or better work in order to secure an advance of wages, the aspiration for a higher standard of Hving is distinctly beneficial both to capital and labour. I pass from the abstract rules of political economy states. ^Q |-|jg practical results of high wages, as exhibited in the social condition of the industrial population of the United States. During the period of prosperity anterior to the recent collapse of- trade in the United States, I am inclined to believe that the working man in America, like his fellow-labourer in England, spent nearly the whole of his earnings on the maintenance of his family and household. If, however, his savings were not appreciably greater, his standard of living was much higher than that of the corresponding classes in our own country. In New York the dwelhngs of the workmen were often crowded to excess, and the same remark is applicable to some of the towns of New England ; but, for the most part, the working people of the United States inhabited comfortable houses and enjoyed an abundance of good food and clothing. Their children enjoyed the advantage of an admirable system of public elementary education. The circumstances of 81 workmen, including carpenters, masons, shoemakers, and mill hands, were examined by the Bureau of Statis- tics in the State of Massachusetts in 1874. The results are given as follows : — Labour at lloine and Abroad. 239 EXPENDITURE Rent Fuel Groceries Meat and fish Milk Clothing, boots, and shoes Dry goods Religion and books Sundries Tota: ^146.58 51.19 350.88 108.28 25.47 114.65 28.27 23.18 38.76 ^886.76 @ 4s. 2rf.— 184?. The earnings were as follows : — The father .... The children .... . ^619.18 . 310.78 Total Number of rooms occupied Persons in family Children at school . . ^929.96 @ 4s. 2d.- . 5 . 6 . 2 -195?. Five houses were reported as unpleasant in situa- tion, eight were moderately, the rest well furnished, thir- teen contained pianos, and three had organs. All the families, save three, were ' well dressed.' Yet, with all these comforts, not to say luxuries, only sixteen had deposited money in savings banks. The advantages enjoyed by the working classes in the United States are, in my opinion, seriously dimin- ished by the protective policy of the country. The trade is confined to the home market ; and the fluctu- ations must be more frequent and more violent than in a country which has commercial relations with the whole world. In the case of a country which has a large export trade, the demand for goods, if dull in one market, will probably be brisk in another. Under 240 Labour at Home and Abroad. a free-trade policy employment will accordingly be more regular. No condition can be more trying to tlie workinn the Coniparative Efficiency of The percentage of reduction for other classes of labour is shown in the following statements : — BuUding Trades. Daily Wages Per cent, of Decrease 1873 1877 D. C. D. C. Masons .... 4 00 2 60 37i Masons' labourers 2 50 1 50 40 Plasterers . . . 5 00 2 50 50 Carpenters . 3 50 2 50 28i Common labourers Id. 75c. to 2d. 00c. 1 25 28i to 37i Contractors' Men. 1873 1877 Percent, of Decrease D. C. D. C. D. C. D. C. Stone Masons on rail- road work .... 3 00 to 3 50 150to2 00 50&43 Stone Cutters 4 50 5 00 ... 2 50 44 50 Carpenters on railroad work 2 50 3 00 ... 1 25 50 59 Blacksmiths (excep- tionally skilful) . . 4 50 ... 2 50 ... 44 Blacksmiths, ordinary- 3 00 ... 150 ... 50 Blacksmiths' helpers . 2 00 ... 1 00 ... 501 Tracklayers .... 2 00 1 12 1 25 44 37 Engineers, steam shovel (per month) . . 118 00 125 00 ... 60 00 48 52 Firemen, steam shovel (per day) .... 2 50 ... 1 50 ... 40 Summary. Railroad wages — The average percentage of reduction varied from 21 per cent, for firemen to 37 per cent, for trackmen. Building trades w^ages — The average percentage of decrease varied from 28^ per cent, to 50 per cent. English and Foreign Labour. 259 For other classes of labour, as specified — The average reduction was nearly twice as great as the average railroad reductions. In the oil refineries and yards about New York, where a great many men of different trades are employed, including coopers, ship carpenters, house carpenters, and machinists, the reductions of wages since 1873 have been abont 25 per cent. These figures should convey a most instructive lesson to our working people. I have on many occa- sions shown that the cost of ]:)rocluction cannot be determined by the nominal rate of daily wages ; and I have never been alarmed for the future of the indus- try of the United Kingdom, simply because wages on the Continent of Europe were so much lower than in this country. I have been much more impressed with the capabilities of the manufacturers of the United States. In America labour has, until a recent period, commanded the highest rates of wages. The scarcity and the cost of labour have stimulated to the utmost the ingenuity of our intelligent and enterprising kins- men across the Atlantic, who have all tlie qualities of the Anglo-Saxon race and a boundless field for their development. Labour-saving machinery and mechanical skill generally have thus been brought to great perfec- tion. With high wages, and all the obstacles to trade which an extreme protectionist system presented, the cost of many articles has been brought down to a level, which has enabled American manufacturers to compete successfully with our own producers. I will give a striking case as an illustration. It might have been supposed that the rifles required for the Turkish armies 260 On the Comparative Efficiency of would liave been made by tlie comparatively cheap labour of Liege or Birmingham. That, however, has not been tlie case. A contract for rifles, amounting to 17,000,000 dollars, the largest single contract ever taken in America from a foreign nation, was given to the Providence Tool Company by the Turkish Govern- ment. The Tool Company were three years in pre- paring to begin the work upon the contract, and now employ 2,500 men, who turn out 200,000 Martini- Henry rifles per year, or 600 finished rifles in a day. ' One of the side businesses of magnitude' — to quote from the Polytechnic Review — ' which have grown principally out of this contract is that of the Excelsior Box Company of Providence, which is busy making 10,000 boxes per year for the Tool Company, in which to ship their guns to Turkey. The machinery for the manufacture of these boxes was perfected by an inven- tion for the purpose. The Company have still two years in which to complete the number of these boxes that they contracted to make, by which time, also, the Tool Company will have completed their immense con- tract with the Tm'kish Government.' The mechanical industry of the United States has been developed with equal success in other branches. The locomotive manufacturers of Pennsylvania have supplied engines to all the railways of South America, and I believe to our own Australian Colonies also. It would seem at first sight incredible that om^ engine builders should have been beaten in a neutral market with no hostile tariflf. Anyhow, it would have been expected that, if we were beaten, it would have been English and Foreign Labour. 261 by Belgians or tlie German makers, who command an ample supply of labour at comparatively low rates. The contrary, however, has happened ; and it is a country where labour is paid at rates imknown in the Old World whicli has supplanted us. We have been conquered by the mechanical skill of the employer in devising labour- saving machinery, and by the industry and energy of the workmen, who, if they have earned high wages, have worked longer and more industriously than many among "our own mechanics have been disposed to do. I am not afraid of high wages, but I have a fear lest the foundation of our industrial prosperity should be under- mined by restraints on the characteristic energy of our people. If our workmen allow themselves to be deluded with the notion that by working at half speed they will prevent over-production, British industry cannot contend successfully against the free and vigor- ous efforts of our kinsmen in America. The only result of such a suicidal course must be that the people, who impose no artificial restrictions on their powers, will take our place in every open market. In conclusion, permit me to say that I offer in no narrow and selfish spirit these suggestions to the conside- ration of my fellow-countrymen, whose lot it is to labour and to earn their bread by the sweat of their brow. I contemplate, with more equanimity than some students, perhaps, of economical science, the increasing participa- tion of other nations in trades which once seemed destined to be the mono}X)ly of the United Kingdom. Would it be a thing to be desired that our island should become the universal workshop of mankind? Would 262 On the Comparative Efficiencn of it add to the felicity oC its inluibituuts tluit the popula- tion of this huge metropolis should be doubled in number ? Would you wish to see all Lancashire and Yorkshire honeycombed with coal-pits, every hill crowned with a monster manufactory, and the black country of Wolverhampton enlarged to twice its present limits ? Is it not better that we should share with other nations in the development of those indus- tries which, however admirable they may be, as illus- trations of the skill and energy of man, inevitably involve the destruction of much that is fair and lovely in nature ? A life without t,rees, and flowers, and blossoms, which no breeze fi-om the hills or the sea ever refreshes, is a life imjDcrfect, and wanting in the purest and the best pleasures which it is given to man to enjoy. I heard a thousand blended notes While in a grove I sat reclined, In that sweet mood when pleasant thoughts Bring sad thoughts to the mind. To her fair works did Nature link The human soul that through me ran ; And much it grieved my heart to think What man has made of man. Let US, then, abandon the vain idea that it is an irreparable misfortune for our country to share with others in the development of the commerce of the world. Let us study the situation in a spirit of gene- rosity to the foreigner and of justice to our own people. Montesquieu has well said : ' L'esprit de commerce produit dans les hommes un certain sentiment de justice cxacte, oppose, d'un cote, au brigandage, et de I'autre, h. English and Foreign Labour. 263 ces vertiis morales qui font qu'on ne discute pas toujours pes interets avec rigidite, et qu'on pent les negliger poiu: ceux des autres. Le commerce rend les hommes plus sociables, ou, si Ton veut, moins forouches, plus indus- trieux, plus actifs ; mais il les rend en meme temps moins courageux, plus rigides sur le droit parfait, moins sensibles aux sentiments de generosite.' It may be that the young men and women of the present and of coming generations may be required to go forth in augmented numbers to earn their livelihood in other lands. Such a contingency may be contem- plated without regret, if our sons and daughters carry with them an affectionate memory of the mother- country. In the Antipodes, or the New World, under the Union Jack, or it may be beneath the Stars and Stripes of the American Union, I see before me a glorious vision of the growth of the Anglo-Saxon race. I see new nations rising up, speaking our language and educated in our literature, bound to us and to one another by the closest ties ; and I see, in this wider distribution of our race, more individual happiness, and a surer basis for our greatness as a nation than in the concentration of a redundant population within the narrow limits of their ancestral island home. 2G4 LECTUEE XIII. ON THE RISE OF WAGES IN THE BUILDING TRADES OF LONDON. Read bkpoke the Royal Institute of Britisu Architects, February 4, 1878. The present Paper has been prepared in compliance with an invitation of long standing, which I esteem it a great honour to have received. The delay in the preparation of the following statement is due to the pressure of many engagements, and to my protracted absence on a voyage of circumnavigation. Even now I should have been quite unable to have performed my task, without the aid and co-operation of others. I have little spare time for such an investigation, and I have no technical knowledge. Under these circum- stances I appealed to gentlemen whom I knew to be thorouglily conversant with the subject, and I grate- fully acknowledge their readiness to assist me. Being anxious to collect the information required from impartial sources, I applied to Messrs. Hunt and Stephenson, the well-known surveyors. As represen- tatives of the builders, I communicated with my old friends, Messrs. Lucas Brothers ; and lastly, with a view to obtain a fair statement on behalf of the w^ork- men, I asked the co-operation of Mr. Howell. These Wages in the Building Trades of London. 265 gentlemen, therefore, are in point of fact the anthors of the following Paper. If it [xjssesses any impor- tance as a contribution to the sum of knowledge on that labour movement which constitutes one of the most urgent questions of our time, it is to the practical authorities whom I have quoted that its value must be attributed. To the Council of this Institute belongs the credit of suggesting that a review of the alterations in the rates of wages in the building trades should be pre- pared. It is only by bringing into view the fluctua- tions in prices during a tolerably extended period that the relation between cause and effect can be satisfac- torily traced, and principles laid down for the future guidance of masters and men. It was tridy said by Lord Bolingbroke, that ' history is philosophy teaching us by examples how to conduct ourselves in all the struggles of public and private life.' I begin by giving a statement of the increase of wages and reduction of working hours in the building trades in London from 1837 to 1847. The current wages of building operatives in London from the year 1836 were hs. per day of ten hours, or 30.^. per week of sixty hours. This rate was generally adopted, but it was not universally paid in all branches of the build- ing trades until 1847. In fact, it was only established as the standard rate by dint of protracted efforts, extending over a period of several years. Masons and bricklayers were the first to secure the advance. The carpenters, plasterers, and painters followed their example. 266 On the Nise of Wa(je.s in the III the >ear 1847 u movcnieiit was set on foot for a reduction of one hour and a half on Saturdays, the men leaving work at four o'clock. This agitation seems to have originated from the idea of the Saturday half-holiday which had been promoted by Lord Shaftes- bury and other eminent philanthropists. After a com- paratively short struggle, the hour and a half was con- ceded ; and it soon became general for all branches of the building trades to leave work at four o'clock on Saturdays. Only one master persisted in refushig this boon, and he was ruined for his obstinacy. In the year 1858 an effort was made to obtain a reduction of time to nine hours a day. The men were offered a rise of Qd. per day, which was accepted, and the nine hours' agitation was abandoned. The rate of 5s. 6cZ. per day was not universally conceded in all branches of the building trades for some years, although the leading firms gave it to the majority of their workmen. In 1857 an agitation was recommenced for the Saturday half-holiday. This was abandoned in 1858, and a limitation of the hours of work to nine hours a day was accepted instead. In 1859 the movement in favour of the half-holiday was again resumed, and the demands of the men being refused, a strike ensued, wdiich was followed by a lock-out of the whole of the building operatives in London. Eventually, in 1861, the masters introduced the hour system, payment being made at the rate of 76?. per hour. A reduction in time was obtained of two hours on Saturdays, the men working through the dinner hour, but leaving work at BailditKj Trach',^ <>f London. 267 1 p.m. instead of 4 p.m. as formerly. In 18G5 a rise of a halfpenny, making the wages l\d. per hour, was granted without a strike. In 1 866 another rise of a halfpenny per hour was granted, making the rate 8c?. per hour. After a strike and partial lock-out in 1872 the masters granted a further advance of a halfpenny, raising the rate of wages to ^id. per hour. There was a simultaneous reduction in time of four hours per week ; the men leaving work on the first five days of the week at five o'clock, and on Saturdays at twelve. The hour for commencing work w^as at the same time fixed at half-past six on Mondays. In 1873 another rise of a halfpenny per hour was granted without a strike, making 9c?. per hour, and the working hours were fixed at 9.', per day, or 52^ hours per week. In 1876 a memorial was sent to the master builders, asking for an advance of wages from ^d. to 10c?. per hour. This demand being refused, on June 30, 1877, the masons struck, and the strike is still pending. It w^ill be seen from the foregoing statement, which embraces a period of 30 years, that there has been a reduction since 1847 of seven hours and a half in time — that is to say, from 60 hours per week to 52^ hours. The current wages in 1847 were at the rate of hs. per day of 10 hours, or 305. per week for 60 hours' work. In 1877 the current wages were 1/. 12^. A^d. for 52| hours' work, being an increase of wages amounting to 95. 4:^6?. per week. This represents a rise of 31^^ per cent, on the original scale of wages, at the rate of 305. per week, and of 1 2^ per cent, in time value, or a total advance in 30 years of 44 per cent. 268 On the Rise of Wa(/es in the Mr, Howell fuitlicr states that greater care is taken to ensure regularity of employment. Tiie masons and carpenters have better sheds or workshoi)s. Wherever it is possible, the bricklayers engaged in cutting arches, splays, or similar work, are under cover in wet weather. On the other hand, it is said that large contracts are finished more rapidly. Hence the men have to look out for fresh jobs oftener than they had to do 30 years ago. The time also is kept more strictly. A workman must be at his work at six o'clock precisely. No five minutes' allowance is now given. The workmen are equally prompt in dropping their tools as the clock strikes five. Messrs. Lucas have prepared a memorandum giving the various wages by the day or the hour both for labourers and mechanics. It will be seen upon examination that these figures, although stated in a different form, correspond exactly with those contained in Mr. Howell's Paper : — Memorandum of the Cost of Materials and Labour, etc., in the Building Trades. Dato Wages per day of ten hours Mechanics Labourers s. d. 5. d. Sept. 1853 5 3 Sept. 4, 1853, to Marcli 22, 1861 . 5 6 3 4 March 23, 1861, to Sept. 27, 1865. Pay- ment by the day was discontinued and Per hour the men were paid at the rate per hour of 7 4i Sept. 28, 1865, to May 4, 1866 H 4i May 5, 1866, to July 5, 1872 . 8 4| July 6, 1872, to Aug. 1, 1873 . ^ 5i Aug. 2, 1873, to present time . 9 5| Building Trades of Land cm. 2G9 The present working hours are — Monday . . 9 hou Tuesday . . ^ . Wednesday . n » Thursday . . ^ . Friday . 91 „ Saturday . . 5L „ Total . . 52L as compared with GO liours for tlie summer and 47 hours for the winter season, commenring 6 weeks before and ending 6 weeks after Christmas. This shows an increase of 50 per cent, upon the wages of meclianics, and 6-i per cent, upon those of labourers. In addition to this, there is a loss in time of 7i hours per week. The men now only work 52. ^j instead of 60 hours — a reduction of 12.^ per cent, in time; the mechanics receive 395. 4.^c?. for the 52 _^ hours, instead of 30.s. for 60 hours ; and the labourers also work 12.^ per cent, less time and receive 26s. 2d. for 52 J, hours as agiiinst 18^. for 60 hours. It is a remarkable circumstance that the most important ad- vances have been obtained by the unskilled workmen. The lower the original rate of wage the greater lias been the advance. This is clearly shown in the fol- lowing table prepared by Mr. Stephenson : — 270 On the Rise of Wages in the Memoranda with Reference to the Comparative Cost of Wages and Materials for Builders^ Work in IS()5 and 1875. Wiigt'S In 1865 per Hour In 1875 per Hour Incroaso d. d. Excavators 4f H 28 per cent. Bricklayers Masons .... It 9 9 20 „ 20 „ ,, .... Carpenters Joiners .... 8' n 91 9 20 „ 20 „ 20 „ Smiths .... n 9 20 „ Plasterers .... n 9 20 ., Painters and Glaziers 7 81 22 „ Plumbers .... ^ 10 171 „ General Labourers 4i 5f 35 ;, Scaffolders 4 6i 28 „ Plumbers' Labourers . 4f 6i 28 „ It might have been expected that in trades where the Unions were most completely organised the greatest advances wonld have been secured. But this has not happened. While the number of the unskilled labour- ers is not limited by any necessity for a preliminary apprenticeship, it is they who have reaped the greatest benefit by the increased demand for labour. The rise in tlie rate of wages is doubtless due partly to the increased cost of living. The pay of those labourers, whose wages were nearest to a mere subsistence-level, has been most sensibly influenced by the changes which have led to an increase in the cost of articles of the lirst necessity. The price of labour, as I have so often reminded employers, in the very terms used by the father of Political Economy, is determined, not by the dictation of Trades Unions, but by its relative scarcity. In the instance before us, we see that the advance has Building Trades of London. 271 been most conspicuous in tlie case of labourers who have no trades' union organisation. Are we not, therefore, justified in the conchision that Trades Unions in the long run exercise but a small influence over the rates of wages, in comparison with the inevitable and natural operation of an altered relation between the de- mand and supply of the necessary commodity of labour ? Let us now proceed to ascertain how far the cost of building has been influenced by the increased cost of labour. First, let us consider the cost of materials. Messrs. Lucas observe, ' The cost of materials fluctuates from time to time, but as a whole we find that the average cost is about the same as formerly, the reduc- tion of duty on bricks, timber, glass, &c., being in our favour.' Mr. Stephenson has kindly prepared a Memorandum showing the difference in the prices of materials in London between 1865 and 1875. Bricks and Portland stone are cheaper. In timber there is some increase, and in other articles there is a considerable augmenta- tion of price. Bricks Grey Lime Roman Cement Portland Cement Portland Stone (at) Deptford) . j Yorkshire 3 inch Middling Dautzic I Fir, average price J Archangel Deals . . Petersburg Deals . . Lead, Milled Sheet . Glass, Plate and Sheet 34s.per 1000 10s. per yard Is. per bushel Is. %d. „ 2s. 1 (Z. per foot cube 63s. per 100 feet 75s. per load f 1 il. per standard \_ head 121. 5s. 21s. per ewt. 27s. per 1000 lis. per yard Is. per bushel 2s. 2d. „ 2s. per foot cube 83s. per 100 feet 80s. per load 16^. per stan-"1 dard head J lil. 10s. „ 24s. per cwt. f 20 per cent, rc- \ duction 10 per cent. 26 per cent. f 4: per cent, rc- \_ ductioii 30 per cent. 7 per cent. 16 per cent, mean Ditto 14 per cent /" Advance about ^^ 20 per cent. 272 On the Rise of Wages in the The increase of wages, according to Messrs. Lucas, ouglit to liave been more than covered by the introduc- tion of machinery for many building operations, for hoisting all materials, instead of carrying by hod, and raising by hand labour; for grinding mortar and for the execution of all kinds of carpenter's, joiner's, and mason's work. They say, however, that their experience shows that the cost of building has actually inci eased from 20 to 30 per cent., and this increase is entirely due to the small amount of work now done by the men, compared with what they did some few years ago. As an illustration of this, they refer to the new station, hotel, locomotive works, and goods' sheds at York, which they have recently erected for the North- Eastern Eailway Company. These works were of great magnitude and Avere superintended by one of the most experienced and able members of their staff. The materials were bought for less than the estimated price, and the introduction of steam-power to an unusual extent — in fact, whenever it could be used — effected an immense saving upon the labour. But all these advantages were more than neutralised by the indolence of the men. A conspicuous instance is quoted. The labour upon the brickwork, winch would formerly have cost 385. per rod by piece-work, was estimated at a price which Mr. Harrison, the Engineer of the North-Eastern Bailway Company, considered liberal for such work, namely, 3/. o.*?. per rod. The actual cost was a little more than 5/., or 1/. 17s. per rod more than Messrs. Lucas received from the Company. Li this case, there- fore, a loss of 55 per cent, was sustained upon the esti- BnihUiui Trades of London. 273 mate for labour. If, iKnvever, the men had done a fair and proper amount of work tlie cost would have been as follows : — With wages at the price formerly paid, at the rate of Gc?. per hour . . £1 18 per rod. Add 50 per cent, for increase of wages at present time . . . . 19 £2 17 In point of fact, the actual cost, as before stated, was a little over lOOs. per rod, and this notwithstanding all tlie additional advantage of the possession of steam- power. This illustration proves beyond all doubt that the men at the present time do very little more than half the work for 9(f. per hour that they formerly did for Qd. These experiences of a large building firm are corroborated, fi'om a different and perhaps a more impartial point of view, by Messrs. Hunt and Steplienson. An opportunity of applying an accurate test to determine the depreciation or appreciation in the cost of buildings has recentl}" occurred, Mr. Stephenson having been called upon to make a close professional estimate of the cost of re-erecting an ordi- nary dwelling-house which had been built in 1865 for the sum of 5,000/. The building in question was demolished to make room for a Metropolitan Eailway Extension, and it was ascertained that it would cost no less than 5,624/. to rebuild it in 1875. The following are some very interesting details as calculated by Mr. Stephenson : — 274 On tJie Rise of Wages in the •^ S o o o "^ O i?-. s s V o Kl 5^ g &» g Sq rt iJ ^ — ' to fc "i £ ? >■- S > i; g -2 o: S « o 0.-S -^ > 11 fl o i^C C „ 0) S S o I I C^ U5 I CC i-H C^ I I N e-1 i-H I f-< r-c e^ OOwOOOO00OCC»0 q^ Oi o 00 ^ o c" ^ — ■■ ■ 00 ^ c-» t^ » 00 -^ 00 CC (?3 -^ i-H T t* T3 g J- OJ £ I. t^ r: o S5 ^ rs ;3 :3 20 Appendix. engagcfl,ha(l to soino extent heen supplied from certain (piar- ries where for perhaps sixty years the masons had worked piece-work. With a view to developing this trade, he became the occupier of the quarries, and made arrangements for em- barking a considerable capital in the works, premising that the labour would be carried on as heretofore ; but no sooner had this capitalist desired to take labour into partnership with him, and to ensure the development of the profitable employment of labour and of capital, than the local society gave him notice that no more piece-work should be done, but all day-work was insisted on at one rate of wages. And this is a fair illustration of the course the working man thinks most adapted to advance his interests. [Mr. Howell. — Was that notice given by a union ?] I apprehend by the Society of Grranite Masons. [Mr. Howkll. — We cannot test facts of this description without the name.] My correspondent does not specify the name of the society, but the quarries referred to are the Dartmoor Granite Quarries. The notice was re- ceived from a society. The result of this action taken by the masons or the society on their behalf, has been that my informant has been compelled to abandon the intention he liad formed of developing the working of these quarries, and where perhaps 300 men might have had full and continuous employment, paid for in such a manner that each man's skill and physical power would have received its commensurate re- ward, without limit imposed on the extent of earnings, and a corresponding benefit would have been conferred on the whole locality — only some thirty men are now engaged in the preparation of pitching, the commonest form of labour, and this because, under the system insisted on by the men, the cost of production of work such as curbs, ashlar-plinths, moulded work, &c., like finished work, would cost some 25 or 30 per cent, more than under the old system. The same correspon- dent writes that for the execution of certain limestone welling, he, as on previous occasions, invited the masons to take it piece-work, but they objected, saying the society would not allow it, but only day-work. Further, when he attempted to measure what a man had done, to ascertain if he was earning Appendic. '62 1 his pay, he was told that this was not allowed, and tliat it' persisted in, a strike would ensue. I contribute these facts for the consideration of Messrs. Howell and Potter — facts which, unfortunately for the well-being and prosperity of the working man, are rather the rule than the exception. Mr. Tkoi-lope, Visitor. — I have known this trade for forty years. I think the whole question was raised at once by the first statement of Mr. Howell, who, when speaking for the men, said that the object of every man was to get the most he could and to do the least he could. That has been the point between the union and the employers of labour for the last twenty years. Allusion has been made to the strike of 1859, and ours was the firm struck against. I will tell the Meeting how that was brought about. We had some masons at work ; my brother saw one man continually doing next to nothing, as he thought, and he said to the foreman : — ' That man is always idling — discharge him.' The foreman said, ' I cannot ; he is a shop steward, and if I discharge him, the whole of the men will leave.' My brother said, ' I cannot stand this, I will have his work measured, and if he has not earned his wages he shall go.' The work that he had done in a week was found to be worth 15s. 6d., and he was getting about 35s. The man was discharged, and on the Monday the whole of the masons left; and so began the strike of 1859. That principle has gone on more or less ever since. I can tell the Meeting a recent instance. A friend of mine, a contractor, was employed on a Gothic work, and a certain number of G-othic heads had to be done, and 51. was allowed in the quantities for the performance of this work. The one was done as a model for the architect to see and put up in its place, and the architect approved it. The man had executed it fairly for 5/. or under. When the others were put in hand it was found they came to 81. each. The man said, ' I must not say much about it, but the shop steward will not allow us to do them for 51. He says they are worth 81., and we must make them come to 81.' How is it possible for a master builder to estimate work under those circumstances? All competition contracts of that sort during the last few years Y 322 Appendia;. have been a mere toss-up. It is impossible to calculate the cost of labour. I am quite sure of this, that the men might earn more money if they were only true and honest. There need then be no disputes. I agree with everything Mr. Lucas has said. If we could get a profit of 10 per cent, upon labour we should be perfectly satisfied, but instead of that it has been too frequently a 10 per cent, loss as far as labour is concerned. The thing has come to such a pass that whether we introduce German labour or not, matters cannot go on in the way they have been going for the past few years. Workmen must get out of their heads the principle of ' getting the most wages they can strike for, and then doing the least work they can.' I am sorry, but not surprised, to find this principle plainly stated by ]Mr. Howell. Mr. Christian, Fellow. — I am very glad to learn from Mr. Howell and Mr. Potter that it is conceded by trades unions that men are now to be paid for their work according to its value. I see no objection to a minimum wage, but let the men who earn more be paid as much as they can get. I should like to state a fact that happened in my own experi- ence thirty-eight years ago, when I was superintending the building of a chm^ch, as Clerk of the Works. A few years before I had been advised by a shrewd Scotch builder that if ever I had the opportunity of superintending work in that capacity, I should not fail to value everything that was done as it went on. I did so, and I have taught many young men, much to their own advantage, to do the same since. Dm'ing the progress of the works it so happened that there were twelve masons under one shed, and in one particular week they each had to work exactly the same thing, a plain moulded capital. Of these twelve men, the first did his work better and quicker than any other man, finishing it in three days. The second man was quite four days, another four and a half, others five or more, and the worst six, and that man (because he was a setter) was paid 5s. 6d., all the other men 5s. It struck me at the time as most unjust that this first man, who did his work so well and so quickly, should be paid no more than the slower men, when he ought, accord- Appendix. 323 ing to value, to have been paid double as much as the last. Is it possible for architects to approve of such a system as that ? It is hardly necessary in this room to repudiate the notion of Mr. Howell that it is the natiu*e of all men to wish to do the least possible amount of work for the greatest amount of pay. I do not believe that it is the wish of any man whatsoever ivho is worth his salt to act on such a principle, and I am quite sure that if he did act upon it he would deservedly suffer. Mr. Lascelles, Visitor. — As a small employer of labour, may I be allowed to give you my experience, as it somewhat differs from that of Mr. Lucas and Mr. Trollope ? I do not pretend to have carried on works that can compare in magni- tude to theirs. My work has been on a smaller scale. I have always found the men to be most industrious, and have never had the experience of a strike. I believe that my men do quite as much work as they did twenty years ago. I am not speaking of bricklayers — my experience being confined almost exclusively to joiners. I have always found the men most desirous to do all they could for the welfare of the business and assist me in every possible way. It would not be right for me to sit and hear so much against the men, when I have found them my best friends and when I cannot speak too highly in their praise. One remark has been made as regards the rate of wages. I think we are labouring under a misapprehension on that score. I fancy the sum fixed by the trades unions is the minimum amount, and the men may earn more if they can, and sometimes do. I am told every man to be a member of the union shall be a man capable of earning a certain amount of wages in order that it may be some gauge as to his ability. They fix a minimum rate of wages, and I think if a man can earn more they are only too glad for him to do so. As regards piece-work, mine is a piece-work shop, and it is known to be such. There have been men connected with trades unions who have worked for me, and very good men indeed they are. One of the best men in my employ is such a man, and at a meeting of the trades unions in the Park some ten or twelve years ago I Y 2 324 Appendix. Know he was on the committee. He is a very industrious man and lias studied my interests fur many years, and I should never wish to have a better man in my employ. A Fellow. — Would the last speaker say whether the great bulk of his men are not non-union men ? Mr. Lascelles. — It is possible they may be ; I have never inquired. I know I have at least one union man, and there may be a hundred. My shop has gone on for forty years and has never been closed a day. We have never had any dispute. Mr. Lucas. — I repeat that whatever I receive for labour I will give to the men less 10 per cent. We do not profess to carry out works at less than 10 per cent, profit, and I do not believe any man can do so. What that gentleman (Mr. Lascelles) stated as his experience of the joiners, I can also state, but I spoke of out -door works, and there is not done that quantity which ought to be. Mr. Henfret, Visitor, said : — As a contractor for the last thirty-five years, he had heard with some amazement two statements . one from Mr. Howell to the effect that brick-work could not well be carried out by piece work ; the other from I\Ir. Lucas, that the labour on the brick- work at the York Station had cost 51. per rod, equal to about 9s. per cube yard, in consequence of the trades union compelling him to employ day-men only. He remembered building a railway viaduct in Manchester about the year 1844. The labour of the brick-work was all let piece-work at prices varying from Is. lOd. per cube yard for foundations to 3s. per cube yard for 14-inch parapets. From the statements made, brick- layers' wages have risen about 50 per cent, since 1 844, and this should make parapets, or similar expensive work, worth 4s. 6d. per cube yard at the present time. To this we must add other 4s. 6d. for the indolence, or want of skill, of the York bricklayers, to arrive at the cost of 9s. per cube yard, which Mr. Lucas had to pay in consequence of the inter- ference of the trades union. The Chairman, in closing the discussion, said : — We have arrived at that point at which, if it is the desire of the Meet- ing, we can adjourn to our next gathering, a fortnight hence ; Appendix. 325 buL if you feel that there is no reason for discussing the question further, it will be now necessary to conclude the present proceedings. I would only say a very few words. I have been very much pleased to see the good temper with which this discussion has been carried on, and my only regret is that we have not had more representatives of the masons and the working classes present than we have had. Unfortunately, I called upon one of them at the very outset, and put him in this way a little at a disadvantage, for which I have to apologise to him. I think that Mr. Brassey put before us very clearly the statement of the case — more clearly, indeed, than we have had it dealt with by anybody this even- ing. He pointed out very fairly that the increased cost of living, and of everything that the working man has to pro- , vide, justified a considerable advance of wages. The question, as he put it, appears to me to resolve itself into one simply of supply and demand. He has pointed out what has not been commented on to-night, and what is of the greatest im- portance, that the common labourer, who is not benefited by any trades society, has increased his wages during the period to the extent of about 64 per cent., while the skilled mechanic has only increased his by 50 per cent. Speaking for architects, but with the most kindly feeling for working men, I must say that the result of my experience is certainly very much to confirm what is said by Mr. Lucas and others on that side — that we do not get at the present day the same amount of work that we used to get, that the quality has not a tendency to improve, and that, in spite of the state- ments which Mr. Howell and Mr. Potter make — that they only fix the minimum amount any man may earn, as a mere matter of fact, fixing a minimum rate must almost always fix a uniform and maximum rate also. The result is that we see, for instance, such a class as the masons, with whom I peisonally am most concerned, who work upon Gothic architecture — and it requires a very skilled mason to make a good Gotliic workman — compelled to work — and it is monstrous that it should be so — at the same wages as the man who does an altogether inferior sort of work. Certainly on 326 AppciiiJix. these terms nobody will rise fiuin a dead level. The work- men's object should be just what the object of the architect is, to encourage the good workman and to let tlie rest see before them the example he sets, and the much higher posi- tion in which he stands, by reason of his a])ility and the superior quality, and perhaps quantity too, of the work he does. How do you suppose men rise in other professions ? By doing, not as little as they can, but as much as they can, in hours far longer than those of the workman, and therefore, if it is the result of the action of trade societies that men are limited in the amount of work they are allowed to do, tliey are condemned, not by a hostile critic, but, in my case, by one who is very anxious to see the working man get his rights, and who is most emphatically opposed to the notion of tliere being any 'wickedness' — though too often much want of prudence-— in strikes. I see no wickedness in a strike, so long as it is to obtain a ftiir day's pay for a fair day's work. The wickedness is when it prevents the best workman from earning the best wages, and in spite of any denial one does often find particular workmen objected to because they do too much work. I have myself known such cases as that quoted by Mr. Cates, and of which he gave us the particulars. They are not imaginary cases. An architect who goes about the country as I do meets with these dit^icul- ties in all directions, and knows that they do occur ; and without knowing what all the rules are, and what all the exact decisions of the societies may be on the subject, that is one of the practical results of their action. The statement that they only insist upon a minimum amount of wages is at the same time met, unless I am very much mistaken, by the fact that, if a builder proposed to give two rates of wages, nearly all the men who work for him would probably absent themselves forthwith. My own experience is certainly of that kind. The societies undoubtedly interfere more or less with the freedom of the workman. The discussion we have had to-night, if it does nothing else, will show the represen- tatives of the working-classes how little hostility there is to them or to their true interest ; and I must say that I think Appendix. 327 the speech of Mr. Lucas was creditable to him in every way. I trust that the outcome of all this will be that workmen will consider, if, at the present moment, they are defeated in the attempt they have made to raise their wages beyond a certain point, still that the masters have their interests necessarily just as much as their own in view; for what they have to consider is, whether in granting an increase of wages they will not be ruining the business that keeps them both ? What Mr. Lucas has said about the replacement of brick-work by concrete is quite true. The tendency of the rules which the societies are making is to destroy all art. If we dare to have nothing but concrete done by labourers at the lowest wages, and if stone-masonry and good brick-work are to become things of the past, I think that good architecture will also entirely disappear from the field, and that we as architects shall have to give up our work. Therefore, in the interests of my profession, and in the interests of the workmen, I ap- peal to the representatives of the working men to-night to reconsider their position ; and I do hope that sooner or later these rules of the societies (which are so mysterious that when they are quoted on the one side they are always denied on the other), shall be so far modiiied as to encourage good work and honest work, and to render it impossible for anybody long to say, as it has been said this evening - — and in a way that most of us, from our experience, could confirm — that, as a rule, men do not feel it their duty to do the greatest amount of work in the best way and in the shortest time. The discussion on Mr. Brassey's Paper having thus been brought to a close, the Meeting adjourned. INDEX. A6S ABSOLUTE equality impossible. 105 Accumulation of capital in England, 175 Additional labour, employment of, 1 1 AdA'ancemont of the people, material, 1 Advice to the working classes, 72 Agricultural labour market, Mr. Henry Taylor's letter on position of the, 185 Mr. Joseph Arch's letter on position of the, 187 movement, results of the, 184 — labourer, letter from, to Mr. Henry Taylor, 186 improved condition of the, 183 ' Alabama claims,' the, 207 America, ladies of, 206 — prospects of emigrants to, 197 — state of feeling in, towards Eng- land, 206 — statistics of emigration to, 197 — wages of mechanics in Eastern States of, 215 American rifle manufacture, contract of the Providence Tool Company with the Turkish Government, 260 — people, social condition of, 204 Americans, competition of, with Eng- land, 215 Arbitration, results of the reference of disputes to, 67 Arch, Mr. Joseph, the advocate of the rural labourer, 183 Archibald, Mr., his tables on the fall in wages in everj- State of the Ameri- can Union, 257 Architects, the best arbiters of the prices of labour in the building trades, 309. 318 Assignment of profits to capital, BRl BACON, Lord, on the scope of educa- tion, 88 Bacon, Lord, on the three points of business, 110 on population, 71 Baker, Mr., on English trade competi- tion with foreign nations, 246 Bank rate of discount, 220 Belgium, rise of wages in, 211 — - condition of the working classes of, 231 — relations between labour and capital in, 211 — wages of working classes in, 231 Berlin, work and wages in, 275 Bessemer, Mr., his discoveries in the manufacture of iron, 39 Bigelow, Mr. Erastus, his opinion of corporations. 111 Bishop of Manchester on the lock-out of agricultiu'al labourers in Suffolk, 184 Blaenavon Company, history of the, 29 Bolingbroke, Lord, on government, 96 Boston, cultivated merchants of, 206 — English high school of, 83 — educational statistics of, 75-86 — girls' high and normal school of, 84 — grammar schools of, 84 — Latin school of, 84 — public schools of, 75, 205 — regulations of public schools of, 78-86 Brassey, Mr., cordial relations of, with his workmen, 59 his Letter on the South Wales Colliery Strike, 168 liberality of, 13 Breach of contract, the Times on, 174 Brick-work replaced by concrete, 310, 327 oo 30 Index. nut Briggs, Messrs., ihoir expcrimont, 17 their sclunie of pjiynieiit, 13-4 IJritish Consul in New York, his re- port, 201 British gooils, iiitVrioritj of, in China, 231 — iion trade, future of tlio, 43 — rail way.s, Captain Tyler's report on, 232 — trade, cause of success of, 1-1 Builders' work, Mr. Stephenson's table of the comparative cost of wages and materials in ISGo and 1875, 270 Building tr.ide, will its present ac- tivity continue ? 206 — trades of Loudon, increase of wages in, 264 increase of wages and re- duction of working hours, 265 Messrs. Lucas's memoran- dum of the cost of materials, labour, &c., 268 Mr. Stephenson's memor- andum on the prices of materials, 271 pay of, in America, 216 reduction of wages in America, 258 CANADA and the United States, 197-208 — emigration to, 198 — facilities for obtaining land in, 200 — North- West territory of, 200 — prices of food in, 199 — price of Lmd in, 200 — remittances to England from emi- grants to, 200 — wages in, 119 Capital and labour. 8-24 — distribution of, 109 — interest upon, in England, 108 — use of large accumulations of, 109 Carlyle, Mr., on the absurdity of the combination of numbers without a competent chief, 71 — on the right of speech, 29 Census, teaching of the, 108 Channels of investment, difhculty in finding, 235 Charlottetown, Prince Edward's Island, unsatisfactory condition of people, 66 Chemnitz, people of, 218 Children, employment of, in Belgium, 69, 60 England, 50 Church, duties of, in relation to labour, 93-100 COO Cit6 Ouvriire of Mulhansen, the, 147 — Lord Brabazou's opinion of, 148 Clergyman, the, as an adviser, 194 Cual-cntting machine, Captain Beau- mont's. 37 — machinery, use of, 37 Coal, economy of, in the manufacture of iron, 39 — increased cost of getting, 177 — advance in tiu; price of, 170 — statistics of the production of, 31 — saving of, by the introduction of steel for iron, 40 — wastefulness of domestic consump- tion of, 37 — mines, cost of labour in English, 216 — saving cooking-stoves, 38 — trade in England, Mr. Potter's view of, 180-182 Colman, Mr., account of hisCarrow Works kitchen, 143-146 Commerce, the true spirit of, 262 Commercial depression, 233 cause of, 233 — relations with France, 48 — enterprise, pursuit of. in the United States, 205 Communistic principles in France, 59 Comparative efficiency of English and foreign Libour, 24.3-263 Competition of England with the manufacturing countries of the world, 163 — two kinds of, to be contended against by England, 68 — with foreign prodiicers, 47 — — Switzerland, 69 Compulsory education in Massachu- setts, 88 — purchase of condemned property, 158 Condition of the people, plans for the amelioration of, 146 Conflict between capital and labour, attempts to reconcile the, 189 Co-operation, and the investment of capital, 20 — in Lancashire, 20 New York, 6 — Sweden, France, Gei-many, and the United States, 20 — reports of Secretaries of Legation on, 121 — not suited to works extending over long intervals of time, 141 Co-operative establishments, reason of their failure, 116 I Index. 331 coo Co-openitive fmuidrios in NfW Yurk and Massachusetts, 121 — manufacture, reason of its failure, 190 — movement, main purpose of, 102 — organisation, statistics of the development of, 118 in the metropolis, 282 — principle, the, 6 amongst the Mormons, &c., 121 to be encouraged, 71 when impossible, 137 and the rate of wages, 9 in amnsements, 153 — printers in Austria, 123 — production, 101-1G7 and the rate of wages, 165 general management of, 115 in Sweden, 123 small success of, in England, 123 — societies, successful, 117 — stores and i-etailers, 102, 103 management of, 103 Cost of living at home and abroad, 16 Cotton factories, comparison between Englisli and German, 247 Court of Conciliation, desirability s. 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