ACTS. Considerations on the '\tteinpt of the ^last-India Compan?r to fecome Fanuffic. turers in Great-Britain. ^v: %. m P.'Ani.VQ ROOM QKVt CONSIDERATIONS ON THE ATTEMPT OF THE EAST-INDIA COMPANY TO BECOME MANUFACTURERS IN GREAT-BRITAIJV. PRINTED IN IHE YEAR IJS^^. „ A 1 M O C' ■ aiAi-i:? a;.ioo: r k ^i. 51 I '■■■■ CONSIDERATIONS, &C. &CC. f2 vJ RANTS of exclufive privileges in trade and commerce to a part ^ of the fubie6ls of any country, are manifeft infringements on the ^ rights of the whole, and ought to be tolerated only on the moft plaufible views of advantage to the community where they are per- mitted toexift. Great precaution fliould therefore be taken to reftrict fuch monopolies to the avowed obje6ls of their operation, and to ^ prevent, as much as polTible, the noxious tendencies they difcover, " from contaminating that vital principle which animates the intercoui^fe - of the commercial world — free and open competition. o o Among the inftances in which the Icgiflature of our own coimtry has thought it expedient to limit this general right, in favour of par- ticular corporations, the Eaft-India Company is of the nioft confpicuous magnitude. iWhen it is confidered that this Company has been foftered into growth and opulence by tlie unfufpefting generofity of public encou- ragement, its condu(^t will appear both imgrateful and imjufl: in B deviating :^549.I2 ( s ) deviating from its proper fphere of a6tion, by trying experiments on branches of trade and manufa6lure, palpably inconfiflent with the legal and prefcribed plan of its inftitution. It is alfo obvious, that experiments of the kind, whether prompted by the wanton fulnefs of wealth, or the eager defperation of refource, mud, if raflily and inju- diciouny conceived, be mifchievous in proportion to the bulk and influence of the power by which they are patronifed and put in motion. The genuine principles of commerce will therefore be elu- cidated and fupported, and the intereft of the community not incon- fiderably advanced, by the fpirit and perfeverance of thofe individuals who fliall expofe the fallacy, and obftruft the progrefs of a fcheme of monopoly, at once illegal in itfelf, unpromifing in point of advantage to the Company, and grofsly injurious to a refpe6lable part of the mercantile world. A6luated by thefe fair and intelligible motives, the following fadls, and ftatement of the differences which at prefent fubfifl between THE Hon. East-India Company and the Silk. Trade, are fub- mitted, with confidence, to the public opinion. The Silk Trade has been long diftinguiQied for the fupport and employment which it has adminiftered to the revenue and the manufa6lures of this country. Thefe advantages are happily not confined to the necelTity of our own imports : the extenfive demand for BritiHi commodities at the Italian market, turns the balance of that trade greatly in our favour. Large ( 3 ) Large cargoc? of liOi, in particular, arc fent thither from Newfound- land, and the coafts of Cornwall and Norfolk; and thus the traffic which brings to our ports the filk of Italy, forms a nurfcry for feamen, of no finall value and importance to our maritime eRabliflimcnt. A confiderable part of the filk thus imported, after being thrown by a peculiar procefs, is called Organzine*. The fuperior flaple and richnefs of this material have always occafioned a decided pre- ference of its ufe, in the moft important branches of the weaving bu- fmefs ; while at the fame time the various private capitals employed by the rerpe6live merchants in the trade, have given every advantage oi credit and competition to the manufa6lurer. This preference has by no means hindered the confumption of the Silks imported by the East-India Company from Bengal. Thefe filks, being indeed * The art of throwing filk into organzine, in which the natives of Italy are exceedingly fkilfnl, was firfl: brouglit into this country by Sir Thomas Lombe, who, for making it public, received from Parliament a reward of £ 1 0,000. The procefs confifts of fix different operations : — The filk is firfl wound from the Ikein upon bobbins; it is then forted; thirdly, it is fpun or twifted on a mill in the fingle tlu-ead; fourthly, two threads thus fpun are doubled, or drawn together through the fingers of 2 woman, who at the fame time cleans them by taking out the flubs which may have been left in the filk by the negligence of the foreign reeler ; fifthly, it is thrown on a mill, or thefe tv.-o threads are twifted together either flack or hard, as the manufadture may require, and it is wound at the fame time in flceins upon a reel ; fixthly, thefe flceins are forted ac- cording to their difi^erent degrees of finenefs, and then the procefs is complete. It may be further obferved, that, where the fecond operation of fpinning in the fingle thread is omit- ted, the filk is called Tram ; and it is Single, if the woman who performs the fourth operation, clears the filk in the fingle thread, and leaves it in that flattf. B 2 compa- ( 4 ) comparatively of inferior quality, are not confidered as fit for ail the branches of manufa6lure which employ the Italian organzine ; but they have, notwithftanding, confiantly found a ready and liberal market ; and fuch forts of them as have proved fufficiently good for the purpofe, have for years been thrown into organzine by individuals, and ufed in fome parts of the riband manufacture. Tlie quantity thus thrown has, for many years paft, been gradually more and more ; nor could any thing have prevented it from rapidly increafing, but the negletSf of the India Company in not furnifliing regular and ample fupplies of the filks adapted to that procefs. It is a fa6l notorious to all converfant in the Silk Trade, that the fabrics of organzine even in Italy feldom attain the defired degree of perfection. A natural and important quere arifes therefore imme- diately : Is fuch perfe6tion likely to attend the languid efforts of hired agents ? Left to the induftry of individuals interefted in bringing it to perfe61:ion, much has been done in this country ; and with filk fit for the purpofe, much more may be expe61:ed. Inftead, however, of attending to thefe confiderations, compatible both with their own advantage, and their duty to the Public ; infiead of fupplying our weaving manufadlures, through the fair, ufual and obvious channel of the trade ; the Dire6lors of the Company, at the inftigation of a few interefted perfons, have adopted, and feem in- clined to perfevere in an experiment, unprodudlive to the Proprietary, injurious to the filk-merchants and manufa6lurers, and pregnant with mifcliief to the community at large. This ( 5 ) This projefl is no lefs than a determination, on the part of the " United Company of Merchants trading to and from the East- Indies," to commence mumija^wers in Great-Britain, by throwing their own filk in large quantities, and in a number of mills hired by them in this country for that purpofe. The fallacious arguments adduced in favour of this alarming inno- vation will appear from the Compr'ny's Reports ; and the broad, can- did, and unequivocal reafons by which it is oppofed, will at the fame time be fubmitted to the unprejudiced reader. In the introduction to the Firft Report of the Committee of Ware- houfes, dated the firll of February 1794, the views of the Company with refpeft to the fcheme in queilion are thus cautioudy and plaufibly intimated : " The Eaft-India Company deeming it expedient to enlarge their imports of Bengal raw filk, a plan has been devifed, the objeiSl of which is, to occafion an increafed confumption of the commodity, by throwing fome portion of it into organzine, to ferve as a fubllitute for part of the organzine at prefent imported from Italy. " The merchants, and others interefted in the filk trade, have objedt- ed to the meafure ; but there is reafon to believe the intentions of the Company are not fufficiently underftood. The publication of the following Reports, it is hoped, will correct any miftaken ideas, that may prevail in this refpedl. The plan is calculated not altogether for ( ^ ) for the Company's benefit ; the intereft of the country at large is alfo involved therein : it will be feen that Italy fupplied of thrown filk, Sm. lbs. In the year 1 79 1 — — — — — — 470,195 And in 1792 — — — — — — 436,875 Average — — — — — — — 453-535 " Of this quantity it is conjeftured, that, if due care be taken in the fele6lion of the cocoons, and a proper degree of attention be given to the firft operation of the winding, at leafl: two thirds of what is now brought from Italy, may be thrown in this country, from a raw ma- terial, the growth and produce of Britidi territories. The throwing of 300,000 pounds of filk will create employment for at leaft 7,000 perfons, nearly the whole of which may be taken from the parifh •workhoufes, whereby an advantage will be derived to the country of not lefs than jT 70,000 per annum, at prefent expended in their main- tenance. It is not in this point alone that the plan has been thought eligible. It is felf-evident, that the riches and power of the nation are infeparably conneited with the fuccefs of its trade and manufactures. True policy therefore dictates, that all pradticable meafures fhould be purfuedfor leffeningthedependance upon foreign powers, for any of the materials of labour, of which we Hand in need. In the great ftaple article of woollens (with the exception only of a few dying drugs), we have every thing within ourfelves. Our cotton fabrics are materially alTifted by our Weft-India iflands. But in the filk trade, which in its various branches gives employment to perhaps not lefs than two hundred thoufand perfons, men, women, and children ; the fupply of the raw commodity ( 7 ) commodity has been, until of late years wholly, and is now in great part, fiirniflied from countries no otherwife conne6led with Great Britain, than through the medium of a commercial intercourlis, which it is not impolTible, under a continuance of the prefcnt dillra6ted fl-ate of continental politics, may hereafter be rendered highly precarious." This is the material part of the introdu6fion, which is very fpecioufly drawn up, and carefully avoids coming to iflue on a point, that, in this difcuffion, muft always be kept in view, namely. The illegal and MISCHIEVOUS interference of the India Company in the internal manu- faStures of ibis country. The introdu6\ion commences with obferving, that the Eafl India Company deeming it expedient to enlarge their importation of Bengal raw filk, a plan has been devifed, the object of which is, to occafion an in- creqfed confumption of the commodity by throzving some portion of it into organzine, toferve as afubjiitute for part of the organzine at prefent fur~ nfloedfrom Italy : that the merchants and others interefled in the filk trade have objeBed to the meafure ; but there is reafon to believe the intentions ef the Company are not fufficiently unde /flood. How the language of the Committee gradually fwells into all the confidence of enlarged fpeculation, will be feen in the examination of the fubfequent Reports ; at prefent, it will be fufficient to notice the ar- guments, or rather aflertions, upon which the fcheme is generally attempted to be juftified. The remark in the introdudion, that, in confcquence of this plan, employment will be given to about 7,cco perfons, ( 8 ) perfons, who might otherwife be burdenfome to their rcfpeftive pariflies, is an artifice that will not bear examination. The cant of benevolence and of public utility is not unufually, and is often too fuc- cefsfully, employed to impofe upon the world, in favour ol the proje6ts of private intereft. If the India Company do not import filks that are fit for organzine, where can be the demand for their commodity in that Hate ? If, on the contrary, they attend to the culture and importation of the finer forts, will not the throwfters meet with equal employ- ment through the regular medium of the trade ? There is no decent pretence then for the Company's interfering -. it poffefles no exdufive means of producing permanent employ : and if the moft important branch of the filk manufa6lure fliould cotiiiime in the feeble ftate to which the Committee of Warehoufes frequently allude in the courfe of their Reports, the Company will forfeit its promifes of conftant em- ploy thus pledged to the Public, at the fame time that it violates the laws which permit its own exiftence ! Some notice fliould be taken of the fagacity, with which the intro- du61:ion obferves, that " it isfeif-evident, that the riches and power of the nation are infeparably connected zviib the fuccefs of its trade and manu- faStures ; and that, therefore, all pradicable meafuresfhould be purfued, for lejfening the dependance upon foreign powers, for any of the materials of labour of which wejiand in need!' The truth of the above propofition, and of the inference that ac- companies it, is certainly " felf-eyident ;" but how they can impart plaufibility to the pernicious fcheme under difcuffion, is by no means equally ( 9 ) equally obvious. Arc not our inanufac^ures already in proper hands, and will they not be taken proper care of? — It inay be necefTary, perhaps, to remind the Company, that if any thing ran clif- order and dcjiroy the fyRcm, for the welfare of which they pretend fo much concern, it is an overbearing and monopolizing attempt to break through the protecting lines of divifion, that are wifely drawn between the operative departments of the larger and the fmaller commercial interefls in a flate. The Company's Reporters are ftill lefs fortunate in the laR of the general arguments with which they introduce their details on this fubjeil ; namely, that the mamifa^imug fchemes of the Company ought to be favoured, becaufe " the fupply of the raw commodity has been, until of late years, wholly, and is now in great part, fur- niflied from countries no otherwife connefted with Great Britain, than throuffh the medium of a commercial intercourfe, which it is not impoflible, under a continuance of the prefent diftraikd ftate of continental politics, may hereafter be rendered highly precarious." Nothing but a blind pertinacity as to proje6l, could have didlated the foregoing obfervation. Do the Company affect to believe, that their territorial pofllflions in India are fettled on a firmer bafis of tranquillity than thofe of the different governments of Europe? Has the power of the Company in the Eafl: been fo lojigy or fo legitimately acquired, as to preclude any apprehenfion of difturbance? Has it experienced no refinance from the native princes of the vaft conti- nent where it exifls ? and does it offer no temptation to the enterprife C ■ of ( lo ) of our European enemies? Wonderful infatuation, that will not recoUeiSl the exploits of Hyder Ally, nor be fufpicious of the humility of Tippoo Saib, that watches not the cunning perleverance of Hoi- land, nor anticipates the formidable ambition of France ! Let not the Company be deceived. The nature and the diftance of their poITeffions in the Eaft, render the connexion between them and this country of a much more precarious defcription than will apply to any of the European governments. The fufpenfions of inter- courfe produced by political agitations in the latter, will, doubtlefs, be temporary ; for, after all, convenience and necelTity will compel neio-hbours to be neighbours. But on the other hand, fuppofe a com.- bined and powerful attack to be made on the Company's eftablifli- ments in the Eaft-Indies,, and fuppofe fuch an attack to meet with internal co-operation from thofe warlike princes vs'ho have always been hoftile to the Company's power, and from others who have apparently fubmitted to it— In fueh a predicament, what could fave the Britifl"! pofleirions in India? They would probably pafs from their prefent mafters for ever ; and our fubfequent commerce, if any, with that part of the world, w'ould be of a very different kind from that which has taken place through the medium of the Eaft-India Com- pany. Thefe remarks are intended in the way of admonition to the Com- pany, rather than as neceffary to refute the frivolous argument recently quoted. If the Company fpeculate on revolutions, they muft. Ibe very fliallow politicians indeed to imagine, that governors general, fupreme ( 11 ) fiiprcmc counfcllors, and chiefs of din:ri6ls, would fit fccurely on their Oriental Thrones, while the crowns and the fceptres of Europe were trampled on the earth. No ; that may happen in India, which may not happen in Europe. Long-eftabliflicd and legitimate governments generally {"urvive the ftorms that affiiil them from within or without ; "but what is the fpccies, and of what date is the prefcription, of the Company's dominion, that it fliould be exclufively prote6led from attack or fubverfion? Tlius far of the introdudlion, and its general apology for a fchemc, thcmifchievous tendency of whicli, it is the obje6t of this publication to expofe. The FmsT Report of the Company's Committee of Ware- lioufes is chiefly occupied with comparative fi^atements of the various different quantities of thrown and raw filk imported into this country for the laft twenty years, from Turkey, Italy, Bengal, Cliina, &c. There is no difpute as to the accuracy of thofe ftatements, but they are totally unconnedled with the caufe of oppofition t the Company's plan. It is however not immaterial to remark, that in the comments on the flatements alluded to, feveral circumftances are mentioned which will be found to militate ftrongly againfl the meafure recom- mended by the Committee *. It is flated, that the broad trade (the moft important branch of the weaving bufinefs) has been greatly on the decline fince the improve- ments that have taken place in our cotton manufa6tures. * FJrft Report of the Company's Committee of Warehoufes, page 4. C 3 This ( 12 ) This obfervation is repeated in other parts of the Report, nor does it venture to infmuate a probability, that the trade of broad weaving is likely to be reftored to its former flourifhing ftate ; the Company do not therefore difplay much fagacity of fpeculation, by perfevering in their experiment upon organzine, while they are confcious that the market for the confumption of that article is fo materially con- tra6led. But if the goods manufadlured by the broad weaving trade fhould regain a confiderable degree of the celebrity that their fuperior rich- nefs and elegance feem to demand, the weavers would betray a very limited conception of their own interefi:, if they were to patronize the confumption of the Company's organzine. It is not pretended by the mod fanguine abettors of the Company's experiment, that their commodity can be expe6led ever completely to rival that of Italy : how then would the filk manufacturer, alx'eady fmarting under the negle6l of the Public, be able once more to fix the caprice of fafhion in his favour, if he fliould imprudently fubftitute the dingy and woolly produce of Bengal, for the brilliant and firm fiaple of Italian organzine ? The Report alfo alludes to the many embarrafiinents, obftrudions, and heavy lojfes, encountered by the Company in attempting to bring their filktoa quality fit for organzine: this is very natural, and might ferve as a falutary check to the progrefs of their prefent plan of becom- ing manufa6lurers in this country. Great commercial companies can- not invade the province of the private merchant, or the manufacturer, with ( 13 ) with inipualty : their bulky property will inevitably be expofed to innumerable depredations, which cannot be committed on the fmaller ftock of the vigilant individual ; and thus, while the Company dream of exploring new fources of opulence, their experiments are mod likely to produce in the refult nothing but lofs and difappoint- raent. It may be afTerted, by way of apology for the Company's fcheme, that they will get a profit on the invoice, or coft price of their filk, and that therefore they can lofe nothing by the experiment. The anfwer to this, however, is obvious ; for the Company muft lofe the diflEerencc between the price they could get for their filk in its raw flatc, when purchafed by the trade, and that which it would fell for as ORGANziNE, witli all the expenfes attached to the procefs under their inaufpicious management. Should the Company perfift in this fcheme, the lofles occafioned by it will, from time to time, as they occur, be Itated to the Public *. Mono- • Vide ifl: Report, page 15. Both the Proprietary and the Public at large mav be convinced of the fallacy of the fcheme by the following ftatement of the Company's experiments :— Average Bengal Ra-w, September Sale, 1794. Raw Bengal friifhard A. the highcft ave- rage of raw in the fale fold at 31/. /\d. the great lb. Which is . - 20/. II ( '8 ) THIRD REPOUT. THE expediency of deviling fome means for extending the Company's fales in the article of Bengal raw filli, and the way in which it was judged this might probably be effeded, were ftated at large in your Committee's Reports of the ill February and 21ft May 1794; and the Court having, on the 3d June following, given their fandion to the propofition therein re- commended, for afcertaining, by the teft of an experiment upon a broad fcale, how far Bengal raw filk, when worked into organzine in this coun- try, could be fuccefsfully introduced into any branch of the lilk manufac- tures in lieu of the thrown filks at prefent imported from Italy ; your Committee forthwith took the need- ful meafures for carrying the fame into effed. Engagements were accordingly formed with the proprietors of feveral filk mills in various parts of England, who readily undertook to perform the needful operation ; and in refult, 29 bales, containing 3,770 fm, lbs. were executed, and offered for fale with the filk declared for 25th Fe- bruary 1795. REMARKS. THE intention here avowed by the Company, of endeavouring to abohfl^ the Italian filk trade, is not lefs hof- tile to the revenue of this country, than to the profperity of its manu- fadures. Upon every pound of kalian organzbie imported, there is paid a duty of 7s. 4d. ; whereas all raw filk pays no more than about 3s, per lb. a deficiency that would be fevere- ly felt in times when the fupplies of revenue are of fuch extreme con- fecjuence. By the language of the Report, the Public might perhaps be deceived into a notion, that the experiment here alluded to is the firfl: that has been tried on Bengal filk ; this, how- ever, is by no means the cafe ; there is no fuch novelty in the attempt : for as long fmce as the year 1787, a re- fpedable filk merchant worked a quantity of a fort as fine as any the Company ever tried. This organzine was ( -^9 ) REMARKS. ■was put to work by a capital manu- fadurcf in the broad line in Spital Fields, vvhofe purpofc it evidently did not anfwcr, as no more than lolb. of it was ufcd. Another gentleman in the trade alfo, in the year 1792, organxincd a quantity of liengal filk, which was tried by a broad weaver in the fame place, and who had engaged the whole of two bales; but a cane or two being put into the loom, it was found not to anfwer, and was obliged to be cut out and ufed in the manufacfture of inferior goods. This filk was as fine and as good in quality, as any the Company ever imported; and yet it was of too inferior ftaple to be ufed as organzine in the broad trade; the Company, therefore, fliould not have confined their experiments and in- quiries to the riband-weaving branch only, which, in point of importance, is well known to be inferior to the broad trade. This palpable omilTion is, however, moft probably, not to be attributed to negligence in the Company; it may be their objed to introduce a general confump- tion of Bengal organzine, under the patronage of the riband manu- fadurers, and after having by degrees weakened or deftroyed the Italian trade, Di ( *o ) THIRD RBPORT, ,• In your Committee's Report of the ■26th February lall, they communicaced a detail of the unpleafant difcufTions, that tooii place at the opening of this fale, in which the propriety as well as the legality of the Company's proceed- ings were ftrongly combated by fome of the buyers interefted in the Italian imports. But as your Committee have good reafon to believe that much of theoppolition which then prevailed arofe from miftaken ideas, both with regard to the objedt itfclf, and the motives by which the Company were governed in embracing it; and as the needful information on thefe points has already been afforded by the pub- lication of your Committee's before- mentioned Reports, it becomes only necelTary in this place to obferve, that the controverfy terminated in a de- claration from the chair, that the Com- REM Arks. trade, to compel the broad weavers to ufe a commodity, which they know, or ought to know, would ren- der the fabrication of their goods much inferior in ftrength and rich- nefs to that produced from the pre- fent materials. The manner in which this fale was condudted appeared to bear as little refpeft to legality, even with relation to the Company's own bye-laws*, as the whole fcheme in queftion does to the tenor and fpirit of the chartered flipulations between the Company and the Public. It is to be remarked that this para- graph of the Report very freely attri- butes the oppolition it ftates to have taken place at the fale, to " miflaken ideas;" but the Committee donot con- defcend to explain in the leaft what thofc miftakes were. Here then is a charge without afhadowof proof. Oppofition was certainly made; but the gentle- men from whom it came truft that this ftatement will convince the Pub- lic, that their notions on the fubjed: were neither confufed nor millaken ; and that their condud with refped: to the * Contrary to an exprefs provifion in the Bye-laws of the Company, their agent fat as a broker during the above fale. ( 21 ) THIRD REPORT. Company's views were for the pre- fcnt confined to the cxperinricnt then on hand, which was limited to 200 bales ; but if eventually they fl)ouId fee it advifcable to proceed further in the concern, they would give public and timely notice of their intentions. With this adjuftment the fale took place, and the 29 bales fold at from 25s. 8d. to 28s. 8d. the fm. lb. of lixteen ounces, or on an average 26s. 4d. At the next fale, on the 26th of AugulT following, 65 bales, wt. 8,775 lb. were fold from 24s. 2d, to 30s. 8d. averaging 27s. ^d.; and there ■will be in readinefs for the enfuing fale a further quantity of about 70 bales. Having thus fucceeded in getting a confiderable quantity of the com- modity into the market, and difpofing of the fame at prices that afforded no room for difcouragcment, your Com- mittee were next anxious to learn in what degree of eflimation it was held by the various manufaflurers who had taken it intoufe: and in this refpedt your Committee feel a pkafure in co.i- REMARKS. the Company is dicftatcd by princi- ples of more cxtciifivc utility than tlic mere fuggeftions of private intcrcfl:. The Committee of Warehoufes have little reafon to exult in their projed, for the fuccefs to which they here allude is merely ideal. It majr confidently be maintained that with, out the Company's interference at all, not a pound lefs in quantity of their fillc fit for the purpofe, would have been worked into organzine by the regular trade ; and if the Company had calcu- lated the lofs arifing from the fale of their filk in organzine, inllead of fell- ing it as heretofore in the raw, as proved in the Remarks, page 13, it is prefumed they would have found abundant room for difcouragcment. The ample teftimonies in favour of Bengal ( 2* ) THIRD REPbRT. congratulating the Court, that the ifTue has been equal to their moft fan- guine expedlations. Your Committee have received, from feveral refpecft- abie houfcs, the moft ample tefti- monies in favour of its quality and litnefs for their purpofes, particularly in the riband branch, the whole of which would be too voluminous to be inferted in the body of this Report ; your Committee have therefore fe- leded one for the Court's mere im- mediate information, and the remain- der will be fubjoined in an Appendix. tojiy of a Letter from Mejfrs. Stanbrid^e and Tagg, on the Subje^ of Bengal Organzine Silk. Mr. Wijett, Sir, When firft the organzining Bengal (ilk was undertaken by the Eaft-India Company, we were among the number V ho oppofed the meafure, from a want of having properly weighed the motives that induced the Company fo to do, and the probable confe- rjuences that would rcfult therefrom ; but lince then having received better information, and having alfo ufed a very REMARKS. Bengal organzine, of which the Com- mittee boall fo much, will not bear a ftricl examination ; it will be feenthat every letter on the fubjecl is equivocal, and infinuates that the filk is too coarfe, even for the ufe of the riband trade. With refped to the manufac- turing of the Company's filk, it is a circumllance well known, that, in the laft fale, a bale of this organzine was bought in by their own agent, being fo badly worked as to be totally unfit for ufe. There is an obvious inconfillency in this letter. Why fliould the gentle- men whofe names are fubfcribed to it, wifli to fuperfede the ufe of Italian organzine, when they can only go the length of afferting that Bengal organ- zine will anfwer the purpofe, " if fine enough F' Whatever quantity of it they may have purchafed of the Company, there can be no doubt but that if they were afked the queftion, whether they have not ufed equally good Bengal organzine, thrown by the trade ? their anfwer would be in the affirmative. The merit of the Com- pany is in this refpetfl, therefore, by no nneaBS C 23 ) THIRD REPORT. very large quantity of the filks fpcrhaps more than any one houfe), particularly of the laft falc, we have now altered our opinion, and cordially thank the Company for commencing the buli- nefs, believing it will in time prove a national benefit, and if carried to great extent, and ftri(5t attention be paid to organzine only the very fincft lllks, there can be no doubt of their (in a great meafure) fuperfeding the Italian thrown filk ; as, if fine enough, they arc as fit for ufe as any Italian thrown filk whatever. We are, &c. Stanbridge and Tagg. No. 119, Wood-Jlreet. MefTrs. Hclmcs & Co. of Friday Street ; Mr, Jn". Ingleby of Wood Street; Wm. Wilberforce Bird, Efq. of Coventry; and MeflTrs. Fynney and Badnall, Sleigh, Allfop and Co. Phillips and Ford, Mr. John Sutton, all fpeak equally decifive as to its qualities, and the certainty of its coming into extenfive demand, pro- vided it be duly attended to. In fhort, your Committee have reafon to believe, that of I.eek; REMARKS. means confpicuous. 'Ihcy cannot work their lilk belter than the trade, as they cannot employ the mills of the firft reputation for workmanfliip; and if the filk were pofilffcd of fo much fitnefs for the higher branches of manufac- ture, it would find its inrrinlic value, regularly through the hands of the trade, with much greater adv.intage both to the Company and the ma- nufadurcr. The manufadurers alfo,or at leaf! a majority of them, cannot afford to ^^^ ready money for all thc'r warp filks ; and this they muft do if they purchafe of the Company; but on the contrary, they can obtain from the filk merchants a credit of ten mont/ts. The eligibility of this ac- commodation, and that oi the com- petition of the fellers, as to the prices and quility of the article purchaledi are too great and too obvious, not to operate firongly againft the Company's undertaking. It is impolTible that the filk manufadurers in general can avoid perceiving that their independence, and all the other advantages they noMr enjoy as purchaf«rs, are in danger from the manoeuvres of the Company to in- vade the manufacture, and monopoliie the fale of organzine. Thi. ( 24 ) THIRD REPORT. that throughout the riband trade, there is but one opinion on the fubjed:. By a reference to your Commitree's Report of the ifl: February, before alluded to, it will be feen that the quantities of Bengal filk fold at the Company's fales in the five years ending 1792, did not exceed, on the average, per annum, 338,757 fm. lbs. It appears however by a continuation of the account to the prefent period, that, owing to the filk trade having taken a favourable turn, a gradual in- creafe has been efFefted, as fm. Ihs. 1 1793, the quantity fold was 368,314 1794. - - - 387.Q58 tni was 368,314, and 387.958 The extent of the fales for 1795 cannot at prefent be afccrtained, only the March fale having yet taken place; but judging from the quantity then fold, and what is now about to be de- clared for the approaching fale, it may pro^abIy reach 450,000 fm. lbs. Flattering, however, as this increafe may appear, it falls very far fhort of what Bengal, from its prefent flourifli- ing fituation, is ftated to be capable of affording; Tlic REMARKS. This is a very difingcnuous flate- mention the part of the Committee, who mud be confcious that the quan- tity of filk fold depends on the Com- pany rather than the trade : it being impoflibie for the latter to buy more than the Company think proper to put up: the Committee choofe to forget this circumftance in alluding to the average of five years fales end- ing 1792; but had the Company brought forward for fale in 1792, a quantity equal to that they infifted on putting up in the calamitous period of 1 793 and 1 794, it would have been readily purchafed by the trade. The Public will therefore be upon their guard againft the imprefTion of fiate- ments, conneefled with fadls of which the Committee are unwilling to take notice. In the fecond note to this paflage of the Report, the confumption of Italian thrown filk in the riband ma- nufafture, is ftated to be from 200,000 to 250,000 pound weight per annum. This however is a flatement which the Committee have fo ndcd upon the mod extravagant and artificial calcu- lations ( 25 ) Tin«D REPORT. The Imports ia i 7^3 appear- ing to be - - - 79 + Average fm. lbs. 736,081 & S2i,.i6o 628,770 Your Commitlce therefore confidcr thcnifelves warranted in aflliiniiig, that Bengal is competent to the im- mediate annual lupply of from 6co,oco to 650,000 lbs. offiikinthe raw flate, or fay, from 150,000 to 200,000 lbs more than the conlump- tion in the iiiual and ordinary modes hitherto in p!a(5tice appear to require; and they are equally fanguinc in believing, that if the whole of this quantity is brought home and organ- zined in this country f, it would at once find a ready and advantageous fale, and thereby contribute very ma- terially not only to the intercfi: of the Company, but tliat of the nation at large. REM ARKS. lations in their power; no allowance is made fur any capricious turn of fafliioii, which may probably nearly difcard the ufe of ribands ij.': fuch a circumflancc would Icfien the value o! the Company's ftock. of organzine by jTio per cent,; comparatively with the price ihcir raw filk wouhi pro- duce, as the laucr might be thrown into two and three thread trams, and applied to proper ufcs in the regular courfc of other branches of the trade. The Committee frequently hold out the fpecious alfertion, that their plan would make a confidcrable addition to the employment of the poor ; but the fallacy of this alfertion has been more than once demonflrated ; and the poor may with much more fafety rely on the exertions and competition of private individuals, than on the pre- * The imports for the feafon 1795 cannot at prefent be made up, the whole of it not being yet arrived ; the quantity however will be fliort of that of the two preceding feafons, ill confecjuence of the orders from hence, direcfling the Government of Bengal to curtail their provifions unt il itfliould be feen how far the fales were capable of being extended. + It is computed that, in the riband branch only, the confumption of Italian thrown illk is from 200,000 to 250,0001b. wt. per annum; which, if worked in this country, would contribute an addition to the labour of the poor of, fay, from feventy thoufand to eighty thoufand pounds per annum. X The riband trade has recently experienced a great portion of negleft from that caprice in fafliionablc tafte, to which it feems expofcdmore than any other fpecies of maaufafture. E ( 26 ) THIRD REPORT. large, by adding to the value and im- portance of the Britilh poireffions in India ; and in affording employment to fomc thoufands of the induftrious poor of the country. In the early flage of this bufinefs, your Committee were doubtful whe- ther the throw fl:ers would be in- clined to lend their affiftance in carry- ing the meafure into efFeft ; but your Committee have the fatisfa8ion of Hating, that they have experienced no difficulty whatever on this head. Various mills, in different parts of the kingdom, have already been en- gaged in working the commodity, and the proprietors have manifefted their willingnefs toenlarge their powers, and to eredt new mills, to any extent for which there may be a reafonable pro- fpeft of affording a permanency of employment. From a due confideration of thefe circumftances, your Committee have no helitation in fubmitting to the Court as their opinion, that, with the declaration of filk now about to be pubhflied, notice be given. That the Company, feeling the meafure of throwing fome portion of their future imports of Bengal raw filk into or- ganzine, to be pregnant with the mofl: bene- REMARKS. precarious promifes of the Eafl: India Company, whofe plans are liable to change on every change of Diredlors. The acquiefcehce of the throvvfters may be traced to the natural fource — an advanced price. The permanency of employment held out to them, hangs by the fame thread as that pro- mifed to the poor, and is equally fal- lacious. The Committee conclude their Re- port with a full perfuafion of the pro- priety of the meafure it recommends. It would, however, become the Court of Direflors, as the guardians of the Company's property, vigilantly to take care that no part of it becomes a prey to the fchemes of fpeculating in- dividuals. It is known that the Di- redtors are not without experience on the fubjeift, as the abortive fcheme of felling their own teas fufficienlly ex- emplifies : the prefent infiance will, moft probably, add in a fimilar way to the Company's experimental wifdom ; and after doing much mifchief to themfelves, and ftill more to the filk trade, they will be compelled to aban- don a projed:, not lefs unprofitable than unjuft. ( 27 ) THIRD REPORT. beneficial confequenccs in every point of view, whether confidercd politically or commercially, as embracing not only their own interefts, but that of the country at large, it is their inten- tion to profecute the fame to as great an extent as from time to time fhall be thought expedient. Stephen Lushington, David Scott, ThomasTheo. Metcalfe, Paul Le Mesurier, Thomas Fitzhugh, Abraham Robarts, Robert Thornton. Eajl-India Houfe, 30/A Dec. I 795. APPENDIX to THE THIRD REPORT. London^ 2^th July 1795. Gent LB MEN, Having received a letter from Mr. Wiflett, requerting I would tranfmit to you my opinion refpeAing the qua- lity and future confumptiou of Ben- gal organzine ; I beg leave to fay, that, having made ufe of fome lots of the lafl: fale, I am of opinion, that it will anfwer very well for the purpofe of the riband manufadory ; and that, if it is fur- nifhed REMARKS, Mr. Ingj.eby's letter does not give the Company's organzine any encou- ragement on the broad fcale of con- fumption, but merely intimates," that^ if it isfurniJJied of juitahle fizes" it will anfwer for the riband manufadlure. The fame objeflion of partial tefti- mony applies to the letter from Mr. Bird ; and it is particularly to be re- marked, that not withftanding his appa- E 3 rently ( 28 ) APPENDIX TO THE THIRD REPORT. nillied of fuitable fizcs, the future fale of it may be very confiderablc. I am, Gentlemen, Your mofl obedient Servant, John Ingieby. Hon. Committee of JI arehoufes. REMARKS. Sir, Coventry, 24//^ July 1795. Having received a letter from Mr. Wifiett, r^quefling my opinion of the Bengal organzined lllk which I bought at the February fale of the India Com- pany, I have no hefitation in defiring you to acquaint him, that I know of Jio purpofe in the riband manufadory to which Bengal organzine may not be applied, if great care be taken in leleding the fineft and highefl coloured raws for the purpofe. The organzine iilks of the February fale are conlider- tibly too coarfe ; and 1 fliould recom- mend it to the Company to bring to market no organzine Bengal, coarfer than the fineft of the February fale Of the fineft of that fale, and of as much finer as pofl'ible, the riband trade could largely confume ; and, as J prefume they would be brought to market at leaft two {hillings per pound under the Italian of the fame fize, I, for rcntly warm approbation of the Com- pany's plan, he urges the great care necelfary to be taken in fclcdting the filk for organzine, and complains of the extreme coarfenefs of that put up at the February fale. From this it may be inferred, that, even in the opi- •nion of the patronizers of the Com- pany's undertaking, their organzine filk cannot, without time, difficulty, and the moft fcrupulous fe}edion, be rendered fit for the limited confump- tion of the nband trade. The fophifiry about adding to the- employment of the poor, has already been expofed in the ftrid:ures on the Company's Reports. It is really afto^ nifhing that fo much concern ftiould be exprefled for the poorer fort of peo- ple, and that no feeling fliould be fliown for thofe intermediate clafTes, upon which the profperity of the induf- trious commonwealth fo materially depends ! At the conclufion of this letter the fupplies of Italian filk are faid to be interrupted by the war ; but that is not the fault of the merchants ; they have not omitted every exertion to remedy the inconvenience. It furely cannot be neceflary again to point out how obvioufly a fimilar fufpenfion of intercourfe may happen to impede a. fupply of the Company's filks. ( 2C, ) APPENDIX TO THE THIRD REPORT. for one, fliould cercainly give them the preference, and there is no doubt but that the whole trade would do the fame. For the nicer works of the ma- nufatlory, and for a white colour, they do not at this moment appear (nor arc they) of a quality fufficiently rich and good ; but I fliouId imagine the various climates of India might produce raw filk adapted even for thefe works, and I lincerely hope it may fo prove ; for you know my opinion has ever been, that the India Company, by this ma- nufactory, will do double benefit -ifirjt to the country, by the employment oj the poor, and then to the manufa6iiirers, by not allowing them to be at the mercy either of the merchants, or of the war, for a due fujiply, a misfortune under which we noto- rioufiy labour at this moment of my writing. I am Your's truly, W. WiLBERFORCE BiRD. Friday-Jlreet, l\th July i^g^. Gentlemen, We were favoured with Mr. Wif- fctt's letter, requefting us to give our opinion on the Bengal organzine filk, purchafed at the India Company's fale in February laft. We have tried them in ( so ) APPENDIX TO THE THIRD REPORT. in our different manufa£lories, and find them good in quality, and take the dye exceeding rich and bright, in all co- lours except white. We think they will be applicable in the different inanufaiflories we carry on, when the lizes fuit, and anfvver all the purpofes of Italian organzine, except for white goods; and ue hope the India Com- pany will Jiurfiie the laudable plan they have begun, with all the exertions in their power, as it will not only empoy ihe poor of this country, but give the manufac- turers choice of two markets inftead of the Italian only. We are. Gentlemen, Your obedient and humble Servants, Jos. Holmes and Co. 7he Hon. Committee of Warehoxtfes. Leek, i^rd November 1 795. The underfigned riband manufac- turers of Leek, having made repeated trials of the Eaft-India Company's Bengal organzine, are of opinion that it has been of great fervice, and if finer filks are thrown, it will certainly be more fo. They rherefore anxioufly hope, that in future the Company will bring REMARKS. Thefe letters contain nothing more in point of encouragement to the Com- pany's fcheme than thofe preceding. If in one part the writers give their teftimony in favour of Bengal organ- zine, in others that teftimony is weak- ened by vague and equivocal expref- fions. " We think" the filks will do, " zvhen the Jizes fuit y' and " if finer f Iks arc thrown,'' &c. The Public will, doubtlefs, not fail to obferve, that during the whole of this ambiguous evidence, by which the Reports of the Committee are thus bolftered up, the BROAD TRADE is kept entirely ( s^ ) APPENDIX TO THE THIRD RETOUT. bring a more ample fuj'/ify into the market, particularly of a finer fize. (Signed) Philips and Ford, Fynney and Badnali., Sleigh, A ls or, and Co. John Sutton. n EM ARKS, entirely out of fight, and a few riband weavers * have taken upon themfelvcs to decide on the eligibility of a mea- fure, which muft flrongly operate on THE WHOLE mercantile AND MA- NUFACTURING SYSTEM Of THE SILK TRADE. The Committee of Warehoufes well know that the broad weavers cannot, in truth, allow Bengal organzine to be fit for their ufe, while there exifts a choice between that and the ItaHan. The Committee forbear, therefore, to allude to the broad trade, till they fiiall have fucceeded in dcftroying the alternative : this they may conceive to be dexterity ; but it behoves the Company ferioully to confidcr whether they are not in danger of becoming dupes to their own views, by ere6ting a lofty and expenfive fabric of monopoly, on a foundation which has neither breadth nor firmnefs. To preclude any charge of unfair fele6lion, the Company's Third and principal Report on this bufmefs has been given at length. It may befeen that the Company do not come to iffue, on the mod important objec- tions to their plan ; but though it has been judged by the filk trade both fafe and expedient to oppoi'e the Company, even on the partial and * No perfonal difrefpeft is meant to tliefe gentlemen. There is ftrcng evidence that their teftimonies in favour of the Company's organzine were obtained by mifrepreicntation and furprife, fome of them having publicly and pointedly expreffed their difapprobation of the ufe that has been made of their letters. bye ( 32 ) t)ye ground which themfelves have chofen, it is by no means intended to rehnquifli thofe general and llrong principles of oppofition that render this difpute peculiarly intereding to the mercantile public. The Company, in throwing their own filk, mufl be confidered as violating at leaft the fpirit of their charter ; for though no exprefs prohibition of Inch a meafure can be adduced, yet the very title of the Company, namely, that of merchants trading to and from THE East-Indies, the views with which it was incorporated, and thofe under which its prefent exittence is permitted, cannot be ex- tended farther in conftruction than to recognize the Company as an efficient and refponfible commercial medium for exporting and im- porting large quantities of various valuable commodities. It is highly improbable that any proje6l, on the part of the Company, to com- mence manujaclurers in this country, ever entered into the contempla- tion of the legiflature, nor does it ajjpear that any tacit encouragement to the purpofe can be fairly inferred. When the lad renewal of the Company's charter was under difcuffion '.n Parliament, the expediency of continuing the exclufive privileges olf the Company was ftrongly dif- puted, even in a inercantile point of view: how much more then would it have been expofed to the fate of annihilation, had an idea of its in- tended interference in our manufadtures at all prevailed .? The legiflature has already .difplayed much fpirit and propriety, in placing the mofl; important parts of the Company's eftablifliment under the control of (Government ; and it is to be hoped, that the fame high authority, as glial dian of the public welfare, will interpofe, to check the mono- polizingand illegal attempts of the Company in the prefent inftance ; for ( '33 ) for it fliould be remembered, that mercantile companies are incorpo- rated for the benefit of the Public, as well as their own advantage ; and in proportion as the former confideration is paramount to the latter, it becomes neceflary to watch the conducSl of Inch large trading bodies, with a jealous vigilance that fliall the better fccure the good intended to be produced by their inftitution. The filk trade are not alone interefted in oppofing tliis innovation of the Company; for, fliould it fuccecd, who can tell to what a mil- chievous extent tlie pra6f ice of the principle may be carried i* When the Company have once tried their ftrength, it will be at their choice and in their mercy, what branch of manufacture they will next in- vade — whether they will print their own callicoes ; make their own gunpowder; wind, fpin, and weave, tlieir own cottons; bake and refine the'w own fug ars; or even manufa6fure thofe articles fabricated from' our ftaple domeflic produce, and which, by their charter, they are obligated to export. A calamitous alternative would then be the lot of the perfons who are now engaged in Inch manufa6f ures : unable to trade to India, or to cope in this country with the gigantic ftrides of a mamifa^uring Eaft-India Company, they muft cither ab.in- don their purfuits, or be degraded into dependants on the all-fiveeping monopolies by whom they are injured. Thus, evils fimilar to thofe which the engrofling of fmall farms has infli6fed on the hufl^andman, would be feverely felt by the individual merchant and manufa6lurer ; and thus, the advantages refulting from the various energies and competitions of private capital in our manufacfures, would be loft to the community. F There ii^^. ( S4 ) There is another topic of great public concern, and \v]iich the con- du6lors of this oppofition to the fchemes of the Company approach with anxiety, that the publication of their fentiments may not bj mifreprefented as a vehicle for extraneous political allufions. A fenle of DUTY, however, conquers the reludlance excited by the fear of prejudice alone; and the deep injury that muft arife to our const i- TuTioK, from the undifturbed progrefs of the Company's defij^ns,. fhall be briefly hinted at. It is a melancholy truth, that the purity of the Britifh fenate has been contaminated by the wealth of India. This comparatively flight infection of the reprefentatlve body, would be increafed to an alarming degree, if the Company fliould extend their manufadluring projeits: the unparalleled influence they would, by fuch means, command in tb.e different towns and boroughs where their manuta6lories might be eftabliflied, would en- tirely change the chara6ler of a Houfe of Commons — would place in it as the minift;er of the day, a creature implicitly at their devotion, and would render the freedom and the legitimate powers of our venerable and happy conftitution, fubfei-vient to the odious domiiia- tion of Z, MERCANTILE ARISTOCRACY. 2 7 3 5 '^ UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. UNIVERSITY OF CALIFOKNU AT LOS ANGELES r TDD AUV DS ] '-^63 CQnS^dftra f^r^n? on | A2P2 the A.ttftmpt of th. [v.l become M;.iniifnc- t'- •- \ n Great DS A?P2 1796 v.l ^ 3 1158 01025 1519