LIBRARY OF THE UNIVERSITY OF CALIFORNIA. Class - LETTERS FACTORY ACT, it affects t&c <2f otton JWanufacturc, ADDRESSED TO THE RIGHT HONOURABLE THE PRESIDENT OF THE BOARD OF TRADE, NASSAU W. SENIOR, ESQ. LONDON : B. FELLOWES, LUDGATE STREET. 1837. LONDON : CLAY, FRINTEU, BREAD-STREET-HILL. LETTERS FROM MR. SENIOR TO MR. THOMSON, York Hotel, Manchester, Tuesday, March 28, 1837. MY DEAR SIR, WE have now been for some time in the centre of the cotton district. Our principal objects of inquiry have been the effects of the Factory Regulation Act, as respects the cotton manufacture, and the consequences which may be expected from further legislative interference. And as Lord Ashley's motion is at hand, and will probably be disposed of before our return, I think you may not be unwilling to hear the results to which we have as yet come ; although, in stating them, I have no doubt that I shall say much with which you are familiar. I have always been struck by the difference between the hours of work usual over the whole world in cotton factories and in other employments ; and did not, until now, perceive the reasons. It seems to arise from two causes : first, the great proportion of fixed to circulating capital, which makes long hours of work desirable ; and, secondly, the extraordinary lightness of the labour, if labour it can be called, which renders them practicable. I will take them separately : I. I find the usual computation to be that the fixed capital is in the proportion of four to one to the circulating; so that if a manufacturer has 50,000/. to employ, he will expend 40,000/. in erecting his mill, and filling it with machinery, and devote only 10,000/. to the purchase of raw material (cotton, flour, and coals) and I A 2 the payment of wages. I find also that the whole capital is supposed in general to be turned over (or, in other words, that, goods are produced and sold representing the value of the whole capital, together with the manufac- turer's profit) in about a year ; in favourable times in rather less, in others, such as the present, in rather more. I find also that the net profit annually derived may be estimated at ten per cent., some computations placing it as low as seven and a half, others as high as eleven ; ten I believe to be about the average. But in order to realize this net profit, a gross profit of rather more than fifteen per cent, is necessary ; for although the circulating capital, being continually restored to its ori- ginal form of money, may be considered as indestructible, the fixed capital is subject to incessant deterioration, not only from wear and tear, but also from constant mecha- nical improvements, which in eight or nine years render obsolete, machinery which when first used was the best of its kind. Under the present law, no mill in which persons under eighteen years of age are employed (and, therefore, scarcely any mill at all) can be worked more than eleven and a half hours a-day, that is, twelve hours for five days in the week and nine on Saturday. Now, the following analysis will show that in a mill so worked, the whole net profit is derived from the last hour. I will suppose a manufacturer to invest 100,000/. : 80,000/. in his mill and machinery, and 20,000/. in raw material and wages. The annual return of that mill, supposing the capital to be turned once a -year, and gross profits to be fifteen per cent, ought to be goods worth 115,000/., pro- duced by the constant conversion and reconversion of the 20,000/. circulating capital, from money into goods and from goods into money, in periods of rather more than two months. Of this 1 1 5,000/. each of the twenty-three half hours of work produces 5-ll5ths, or one twenty-third. Of these 23-23ds, (constituting the whole 115 3 000/.) twenty, * that is to say, 100,000/. out of the 115,000/., simply re- place the capital one twenty-third (or 5,000/. out of the 1I5,000/.), makes up for the deterioration of the mill and machinery. The remaining 2-23ds., that is, the last two of the twenty-three half hours of every day, produce the net profit of ten per cent. If, therefore, (prices re- maining the same,) the factory could be kept at work thir- teen hours instead of eleven and a half, by an addition of about 2,600/. to the circulating capital, the net profit would be more than doubled. On the other hand, if the hours of working were reduced by one hour per day (prices remaining the same), net profit would be de- stroyed if they were reduced by an hour and a half, even gross profit would be destroyed. The circulating capital would be replaced, but there would be no fund to compensate the progressive deterioration of the fixed capital. And it is to be remarked, that there are many causes now at work tending to increase the proportion of fixed to circulating capital. The principal, perhaps, is the tendency of mechanical improvement to throw on ma- chinery more and more of the work of production. The self-acting mule is a very expensive machine ; but it dispenses 'with the services .of the most highly paid operatives the spinners. It has acquired, indeed, the sobriquet of e ruinous, and that even the fear of them is most mis- chievous. It will appear from this statement, that the Govern- ment is not likely to be much troubled by demands from the manufacturers for improvements in the Factory Act. The manufacturer is tired of regulations what he asks is tranquillity implora pace. But, if alterations are to be made, the following are those which have been suggested to us : 1st. That Government shall provide schools, and, at least, lolerabje teachers. At present there seem to be none that deserve the name, except a few whom some opulent and enlightened mill-owners, such as the Gregs, Ashton, and Ashworth, have established themselves. 2d. That the duty of forcing the^chiLdren-to-be educated, shall be transferred fcornMjie mill-owner to the parent ; or (which they, with one exception, prefer) _lhat educa- tion shall be enforced only by making a certain amount of it a preliminary to employment by enacting, for instance, that after a^given time no child shall be admitted to a fac- tory til.l it can read, or be allowed to work full time until it can read and write fluently. 3d. That the mill-owner shall be punishable only for substantial, not for mere formal, violations of the law. That he shall no longer be liable to be fined and dis- oraced as a violator of the law, for an incorrect entry in 15 a time-book, inadvertently made by his book-keeper, or because a child has stayed in the mill five minutes too long, in order to tie a shoe, or warm itself by the stove. 4th. That gome control shall be exercised over the promulgation of rules by the inspectors; some appeal from their regulations, and some better mode of publish- ing them. These seem to be all their wishes ; and I must sai that they appear to me to be reasonable. The first ap- pears to be the most important ; an.d I only repeat my own words on the Poor Law Report when I say, that the most pressing duty now incumbent on the GovernmenTis, to provide for the_j^ligiousand moral education of the . f 1 peopled In" fact, the Factory Act, by driving many chil- dren into other employments, makes the expediency of adoptmg"a~ generaFsystem of education for all children even rogrejargent_than "it wasjbefore. " WbaLare you doing herej" said Mr. Ashton to .a_Jjttle., fellow, whom he founoTmorjie of his coal-mines. " Working in mine, till I am old enough to go into factory." The general impressionon us all as to the r effects of factory labour has been _M,^E^l^!zJ5 voura ^^ e - The factory work-people in the country districts are the plump- est, +">** jCJgjJlfA fl"d...hpfl.l.tliip-st 1nnl^ng^p.rsnng__nf the labouring_class that I have ever seen. The girls, espe- cially, are far more good-looking (and goodjpoks are fair evidence of health and spirits) than the daughters of agri- cultural labourers. The wages earned per family are more than double those of the south. We examined at Egerton three of the Bledlow pauper migrants. Being fresh to the trade, they cannot be very expert ; yet one family earned II. 19s. 6d. ; another, 21. 13s. 6d. ; and the other, I/. 16s. per week. At Hyde we saw another. They had six children, under 13 ; and yet the earnings of the father and two elder children were 30s. a week. All these families live in houses, to which a Gloucestershire cottage would be a mere out-house. And not only are 16 factory wages high, but, what is more important, the employment is constant. Nothing, in fact, except the strikes of the work-people themselves, seems to interrupt it. Even now, when the hand-loom weavers and lacemakers are discharged by thousands, the factory operatives are in full employ. This is one of the consequences of /the great proportion of fixed capital, and the enor- ' mous loss which follows its standing idle for a single : day. Nothing can exceed the absurdity of the lament- I ation over the children as u crowded in factories." j Crowding in a factory is physically impossible. The 1 machinery occupies the bulk of the space ; the persons 1 who have to attend to it are almost too distant to con- iverse. Birley's weaving room, covering an acre of ground, had not space among the looms for more than 170 persons. Bailey's factory, covering two acres and a half, one story high, and therefore, taking together the ground-floor and first-floor, containing five acres of apartment, was to be worked by about 800 operatives, which gives more than J5 yards square to each. I only wish that my work-room in Southampton Buildings had as much space, in proportion to the people in it. The difference in appearance when you come to the Manchester operatives is striking; they are sallow and thinner. But when I went through their habitations in Irish Town, and Ancoats, and Little Ireland, my only wonder was that tolerable health could be maintained by the inmates of such houses. These towns, for such they are in extent and population, have been erected by small speculators with an utter disregard to every thing except immediate profit. A carpenter and a bricklayer club to buy a patch of ground, and cover it with what they call ouses. In one place we saw a whole street following- he course of a ditch, in order to have deeper cellars cellars for people, not for lumber) without the expense f excavation. Not a house in this street escaped cholera, nd generally speaking throughout these suburbs the 17 streets are unpaved, witli a dunghill or a pond in the middle; the hj^es^iirbackto back, without ventilation or drainage ; and whole families occupy each a corner of . i a cellar__C_^a_arret. A good Building Act f strictly t. enforced, might give health not only to the factories" but to thC^pIe^pop^la-tion . We tried, indeed, an experi- ' ment as to the comparative appearance of different classes of the Manchester population. We went last Sunday to the great Sunday-school in Bennett-street, where we found about 300 girls in one large room. We desired first all the carders to stand up alone, then all the piecers, then all the reelers, and so on through the various de- partments. Then we desired all those not employed in factories to stand up ; then all those employed in factories ; and on each of these trials not one of us could perceive the least difference between the apparent health of the different classes of factory children, or between the children employed in factories and those not so employed. \ We inquired very sedulously as to the mode in which ' Mr. Homer has carried out the Act ; and the testimony was generally, I may almost say unanimously, favourable. The mill-owners are angry, indeed, at his last report, and most vehemently opposed to his demand for further powers, and for authority to his superintendents to enter the mills ; but, notwithstanding this, they agree that he has performed his very difficult duties mildly and judi- ciously. Ever yours, N. W. SENIOR. P.S. On looking back at this letter I see that I have omitted one point which was earnestly pressed on us, namely, that the superintendents should be appointed by the inspector, and removable by him ; and the inspector made responsible for their conduct. Under the present system they may, and I believe often do, pull different ways. The Right Hon. Charles Poulctt Thomson, 18 York Hotel, Manchester, April 4, 1837. MY DEAR SIR, I MUST own that I am somewhat alarmed at the rumours that the Government propose to render the Factory Act more stringent, in compliance with Mr. Horner's requisitions. Those requisitions are two : 1st. That magistrates who are mill -owners, or have some property in mills, or who are by trade or near relationship connected with factories, should not sit on the bench on prosecutions connected with offences under the Act. 2d. That the sub-inspectors or superintendents should have free access, without asking permission, to every part of a factory. 1st. The first of these proposed enactments would exclude from the bench on factory questions, all manu- facturers or commercial men ; for who is there among them, in the manufacturing districts, who is not by trade or near relationship connected with factories ? It would therefore leave the enforcement of the Act to the clergy and country gentlemen, classes generally opposed to the mill-owners in habits and politics, and without practical knowledge of the system in the working of which they would have to interfere. This might not, perhaps, be of great importance if the offences on which they would have to adjudicate were substantial offences. If wilful over- working a child, wilful false entries, or wilful obstructions of education were the punishable acts, the adjudication might, perhaps, be safely left with the country gentlemen ; but as the Act is worded, the offences may be mere formal ones. They may be the permitting a child to remain too long in a mill, or an inadvertent error in one among 1000 entries ; or non-compliance with the educa- tion clauses, with which Mr. Homer himself declares that " in many cases strict compliance is nearly imprac- 19 ticable." If for such offences as these the judge is to be a person without sympathy for the accused, or knowledge of the difficulty, I fear that provisions now severely vex- atious may become almost intolerable. 2d. The free admission of the sub-inspectors would, however, be still more opposed. The "personel" of a large factory is a machine as complicated as its " mate- riel," and is, I think, on the whole, the great triumph of Sir R. Arkwright's genius. In such an establishment from 700 to 1400 persons, of all ages and both sexes, almost all working by the piece, and earning wages of every amount between two shillings and forty shillings a-week, are engaged in producing one ultimate effect, which is dependent on their combined exertions. Any stoppage, even any irregularity in one department, deranges the whole. A strict and almost superstitious discipline is necessary to keep this vast instrument going for a single day. Now how, ask the mill-owners, could this discipline be kept up, if the sub-inspectors were at liberty to walk over our establishments at all hours ; listen to the com- plaints and jealousies of all our servants, and at their in- stigation summon us as criminals before the magistrates ? Could the discipline, they ask, of a regiment or of a ship be carried on, if we had sub-inspectors of regiments, with power to ask all the privates for grievances, and summon their officers for penalties ? I firmly believe that if this enactment is carried, the following will be the consequences : 1st. That a considerable number of the educated and intelligent mill-owners, that is, of those who have the sensibilities of gentlemen, will cease to follow their occu- pation within the British Islands. We have already found one who is preparing, if such a clause is passed, to form an establishment in the Tyrol ; and others have told us that they shall resist it by main force. This was probably an idle menace ; but it shows the degree of irritation that the mere proposal has excited. 20 2d. That from a large proportion of the Mills, the children under thirteen will be excluded, and forced, therefore, into other employments, unprotected by any regulations whatever. I mentioned in my former letter, that this has already been done to some extent. And it is remarkable, that of the four establishments seen by us, which have adopted this manner of escaping from the Act, three, that is to say, Lambert Hoole and Jackson's, Cheetham's new mill, and Orrell's, are of first-rate magnitude. A very slight additional pressure, occurring too at a time of diminished manufacturing activity, would render it prevalent. Mr. Homer disbelieves the probability of such an event, because " it cuts off the future sup- " ply of useful hands ; as children, to be profitable to "their employer, must begin to learn their trade at a " much earlier age than thirteen." I agree as to this fact, but not as to the inference. A manufacturer who excludes children under thirteen, may still carry on his business with work-people who acquired their skill under the old regulations, or with a supply from other mills. Some years hence, the evil may be great, and may be irremediable ; but, by that time, the manufacturer in question may have quitted business. 3d. I fear a very 9angerous state of feeling among the work-people. I need not tell you, that we are approaching a season of great difficulty. Excessive shipments have injured the Asiatic market, internal supply, the continental, and financial embarrassment, the American. Already the manufacturers complain of diminished or suspended demands, are holding stocks, and talking of working short time. If the dense and ignorant population of the manufacturing districts, trained in combinations, and accustomed to high wages, is partly thrown out of work, and the remainder. reduced in in- come, scenes of violence may follow, which may frighten away capital, already having a tendency to emigrate. 21 On the whole, the result of my tour has been a mixture of pain and pleasure. I have seen a vast, well paid, thriving, and apparently happy population. But I see, impending over that population, calamities which may be, and I hope will be averted but which will inevi- tably fall on them, if the suggestions of those who call themselves their friends are even partially followed. To enforce ventilation and drainage, and give means and motives to education, seems to me all that can be done by positive enactment. Ever yours, N. W. SENIOR. The Right Hon. Charles Poulett Thomson, Sfc. 8fc. 8fc. THE END. R, CLAY, PRINTER, BREAD STREET HILL. 14 DAY USE *WUH-H BORROWED HOME USE CIRCULATION DEPARTMENT * ' LIBRARY andreCllabeni (R8191L) ' Berkeley 78 ' GENERAL LIBRARY . u.C. BERKELEY B000731S40