Digitized by the Internet Archive in 2007 with funding from IVIicrosoft Corporation http://www.archive.org/details/cottontradeinengOOschurich THE COTTON TRADE IN ENGLAND AND ON THE CONTINENT. The Cotton Trade in England and on the Continent. A STUDY IN THK FIBLI) OF THK COTTON INDUSTRY. BY Dr. a. VON SCHULZE-GAEVEENITZ, Freiburg i. B. TRANSLATED FROM THE GERMAN UY OSCAE S. HALL, m. i. mech. e., bury. LONDON: SIMPKIN, MARSHALL, HAMILTON, KENT, AND CO., LTD. MANCHBSTEK : MARSDEN AND CO., LTD., CARR STREET. 1895. fVy3H3o WOKKS BY THE SAME AUTHOR. 1. ZuM SociALEX Friedev. Leipzig, 181)0. 2 Vols. Translated ioto English : Social Peace. Swan. Sonnenschein & Co. 1893. Abridged Russian Edition by Goldenseiser. Kieff. 2. Thomas Carlyle's Welt und Gesellschai!TS-ansciiauu>g. Dresden, 18*J:^. 3. Der Nationalismus in Rdssijind und Seine wirtiisciiaftlichen Trager. Preussische Jahrbiicher. Januar, Februar, Miirz, 1894. The French translation of this work " Der Grossbetrieb," will appear this year. 109480 CONTENTS. CHAPTER I. Pajres Lntrodoctio.v 1 CHAPTEll II. The Development of CENXRALiSAtioN ix the English Cotton Tkaue ... 10 I.— The Origin of the Factory System ID II. — The Cotton Industry under the Influence of International Competition o 1 CHAPTEK III. ' The Present Position of the English Cotton Industry Compared with ITS Position in the "Thirties," and the Present Position of the German Cotton Industry (53 I.— Organisation and Division of Labour of the Industry G5 II.— Replacement of Raw Materials and Labour by Capital 85 A, — Sp innuuj 85 B. — Weavin distant peiiod be renewed, probably many steps retraced, and bring further discontent and distress in its train. It therefore behoves all parties to the struggle to- study the question minutely, to weigh carefully all that can be said in each other's favoiu', all that can be brought forward to show lucidly the position which ought to be taken up for the economical welfare of the community in general. Without committing myself to the whole of the i)Ositions taken up by Dr. G. von Schulze-Gae\'ernitz, I came to the conclusion whilst reading the work that within it lay ihe elements by which the future position of our whole industries and economical prosperity might be guided to a safe haven. It seemed to nid tliat such an udmirablo work should be as widely distributed as jjossiblc : that many uiisleadiiig and niiycliicvijiis ideas — jjrobably iioue the less due to hone«t couvictiou — would be dispersed by a. careful perusal of the results of the Professor's patieut, industrious inquiry and research. These were the reasons which induced me to undertake the translation. Tlie results of my work — ^accom- plished in leisure moments snatched from an active business life — in translating, I leave to the reader to judge and criticise leniently. I have tried to reproduce as simply as possible the exact meiiniiig intended in the oiiginal. A few additions to the original work have been made by the author, and the whole book has undergone careful revision to bring it up to datei. AVhatever be the merits or demerits of the translation, I trust it will Ijc favom-ably received and carefully studied by all tliose who have the welfaie of c»ur industries, and espcnally the prosperity of the staple trade of Lancashire, at heart. OSCAR S. HxVLL/ Bury. INTRODUCTION. BY THE EDITOR OF THE "TEXTILE MEKCUiiY.' The student of industrial, political, and social matters, coming to the investigation of the developments of the 19th century, will find in these subjects ample mateiiai to engage the services of schoolsful of colleagues. In no preceding period was the fer- ment of material science, mechanical invention, industrial change, political revolution, and social progress so active as during the century now nearing its close. No time in the past can compare with it, and, so far as we can see, though the futm*e centuries may have nmch in store, they are not likely to eclipse it in any similar period of time. It seems to us that it will be much more accordant with the natural sequence of events, if the past affords grounds for any safe inferences regarding the future, that a long period of comparative repose should follow one of such unpre- cedented activity. Such periods succeeded the collapse of the Roman Empire, the Crusades, and the Reformation, and inter- vened between the English Revolution of 1688 and the French uprising of a century later. In these intervals there was little of intellectual activity, and less of social and industrial progress, whilst science in its best sense had hardly been born. These facts form a basis for the above reasonable and natm'al conclusion. Should it bo realised, the students will be able to work at their investigations of 19th century life and progress undistm'bed by the noise of contemporaneous disputes, the excitements of new scientific dis- coveries, or the rapid spread of economic and social theories that may contain within themselves the germs of social salvation or destruction. We venture to predict that it will be the latter phases of 19 th century development which will excite the most cuiious interest in the minds of future students of social progress, because the factor that has been active amidst the numerous causes contributing so very largely to the amelioration of the lot of the human race — and under the influences of which it has benefited so enoi-mously, and yet is not satisfied — will to a large degree be hidden from superficial inspection. At no period in the history of mankind has the task of labour been so light, or its reward so large and generous. And yet, notwithstanding this, a wave of dissatisfaction with the new conditions seems, during the past few years, to have spread over the industrial world. Tliis has been followed by the development of a feeling of hostility to every one of the new and beneficent factors of progress that have come into being during the century, which threatens their destruction. Is the basis of this movement a gross mental delusion — a hideous nightmare — which has taken possession for a time of the intellectual nature of the industrial classes, and from which we may hope that in an early time they will shake themselves heel This .is our imj)ression. We need not wonder that the phenomena to which we have referred are beginning to engage the earnest and careful attention of inquirers of high cultm'e, independent thought, and philosophic minds, and that these are making careful inquisition into the facts in order to discover whether the popular impression is in any sense justified, or whether it is the delusion we believe it to be. If the former, it will bo incumbent upon those resi)onsiblo for the con- duct of our political destinies to so guide the ship of State which caiTies our affairs that it shall not run upon breakers whose Xlll. presence has tlnis clearly been pointed out. If the Latter, it will be the duty of the investigators to so state the truths and conclu- sions to which they have been le " Verbum Sapienti," p. 12. r 5. " I conceive the true original grounds of trade to be a great multitude of f)eople crowded into a small compass of land, whereby all things necessary to ife become dear, and all men who have possessions are induced to parsimony ; but those who have none are forced into industry and labour, or else to want " AND ON THE CONTINENT, 3 for the worker to abstain from labour, and consequently tends to raise its price (6). Petty, as well as Temple and many others, pointed to the example and teaching of the Dutch. Indeed De Witt had already demanded high taxes in order to encourage an inventive spirit, industry, and frugality, as well as a strict poor- law, with bureaucratic reduction of wages (7). This point of view is most minutely justified by John Houghto n, in "A Collection of Letters for the Improvement of Husbandry and Trade" (London, No. 6, June 16th, 1683, p. 174). In consequence of several bad harvests the price of wheat at that time had considerably risen. Tlie result, Houghton thought, was in no wise to be viewed as a disadvantage, but rather as an economical advantage. If the price of wheat was lower the poor would work less, because with less exertion they could earn the necessaries of life. This, he says, follows from general psycho- logical observation. The landed nobility spend their time mostly in recreation and sports, instead of working, because they possess means for years to come — for eating, for drinking, and for main- taining themselves. Should, however, one of their circle come to grief, he immediately looks out for some public post and occupa- tion. The rich tradesman retires from business when he has succeeded in entering the ranks of the landed gentry. The poor craftsman, on the other hand, who can never hope to call a fortune of £10 his own, scarcely takes the trouble to get 10s. into his hand at once. If he can earn sufficient in three days to live up to his usual standard for a week, he does not work the remaining four days. The same thing is true of the labourer, who does not work any more than is necessary to earn his bare livelihood. Instances were provided by lace and stocking makers. As soon as their wages were high they were seldom seen at their work on Mondays and Tuesdays, scarcely even on Wed- nesdays and Thursdays. They spent those days prefer- ably in alehouses, and in low debauchery. With high wages and cheap prices of food the majority of workmen employed in the various trades followed the same course. On the other hand, never did they work so hard as in dear times. By their lack of means the invention of useful labour-saving machinery received 6. Compare A Young : " The Farmers' Letters to the People of England " (London, 1768), p. 35, where, in the preface, a number of further adherents to this opinion are given. 7 Compare " Essays on Trade and Commerce " (London, 1770), p. 49. 4 THE COTTON TRADE IN ENGLAND an immediate impetus ; by their deep poverty " submissive ser- vants " were farmed from the working classes. In fact, competition between the workers in such times caused cheap wages. When left to itself, development moved in a circle. Cheap prices induced laziness; this, in turn, want and dearness; the latter industry and abundance. If, on the other hand, by wise govern- mental regulations high prices of food could be permanently fixed, it would also enforce application to be constant, and thereby a permanent surplus of production would be attained, which creates the opportunity for the conquest of foreign markets. Therefore, let it be the duty of the King to keep the price of wheat high by the re-introduction of bounties or export- premiums (8). r II. There had already arisen during the last century, in opposition hereto, defenders of cheap food, especially opposers of the artificial raising of prices. The first defender of this stand- point, as far as I know, is Josiah Child , as early as 1693. He attacks the custom of fixing remuneration, which was made in the interest for low wages. This was possible as long as England was not a country with handicrafts. At that juncture, however, low wages must cause the emigration of the cleverest artisans to better-paying countries, as already, indeed, numerous English seamen had withdrawn to Holland (9). More in detail Jacob Vanderlint advances the same view in " Money Answers all Things " (London, 1 734). Tliis writer asserts that double proposition which has ever since been taken as an axiom by the adherents of high wages and low prices of food. At some time or other — and herein he has a forcible argument on his side — a population capable of consuming is necessary for the development of trade. He turns against the writers of that day who opposed the raising of the people's needs as being luxurious. This was not the reason of the low ebb of trade — much * rather was it the lack of means of the great masses of consumers (pp. 21, 160). In addition to this, Vanderlint also casually draAvs attention to the fact that higher wages for the working man are an incentive for more work (p. 122). 8. The same opinion is given also in J. Houghton's "Husbandry and Trade Improved." Revised, corrected, and published by R. Bradle (London, 1727^, p. 266. 9, Josiah Child ; " New Discourse of Trade "(London, 1693), pp. 10 and 11. AND ON THE CONTINENT. 5 Postlethwa it and Nathaniel Foster join with this writer in supporting the same view (10). Postlethwait starts on the same lines as Vanderlint, firstly in the matter of consumption. Wher- ever are many poor people, there, he maintains, the home market is insignificant. The luxury of the few cannot by any means replace the consumption of many ; therefore too great an inequality of wealth is against the trade interests of the country. From this point of view high wages and low prices of food are to be promoted. The latter caused, in addition, an increase of the popu- lation, and, therewith, of the quantity of work accomplished. In close connection appears also the second standpoint : the idleness of the working classes was not a consequence of an hereditary fault, but rather depended upon the fact that they lacked the incentive for labour. In order to make them work more there must be the motive of bettering their position placed before them (11). In like manner Postlethwait defends the granting of a cheap leisure time to the workers (12). Foster (13), clearly influenced by Mirabeau . Rousseau , and kin - dred writer s, takes a similar position. He is indebted to them for a criticism of the question more from the stand- point of the workmen. The opinion that high prices of food and low wages were desirable was "a teaching which avarice has grasped with eagerness and turned to account for its own object." Men believe nothing easier than an untruth which brings them personally an advantage. To prove this he points to the physio^ logical experience that want certainly stimulated to energy, but only that want which could be overcome by energy. It was quite different if the exertion was not sure of success. A man who the more he laboured was so much the more highly taxed worked, according to experience, as little as possible. Foster, 10. Postlethwait, in his " Great Britain's Commercial Interest Explained and Improved " (2nd. ed. , London, 1775), especially pp. 13, 16. 43. The Supplement to the " Universal Dictionary of Trade and Commerce," quoted by Marx, I have not succeeded in finding in the Library of the British Museum. N. Foster : " Enquiry into the Causes of the Present High Prices of Provisions " (London, 1767), pp. 56, 60. Similarly, Dangueille recommends (" Avantages et Desavantages de la France et Grande Bretagne." p. 293) high wages in the interest of consumption ; quoted by A. Young, " Farmer's Letters," p. 38. 11. "I take it for a maxim that no class of people will ever want industry if they do not want encouraging motives thereto " (p. 43). 12. " Dictionary of Trade and Commerce. " I. — Preliminary Discourse, p. 751. 13. " Enquiry into the Causes of the Present High Prices of Provisions" (London, 1767), pp. 56—62 6 THE COTTON TRADE IN ENGLAND first linking himself to Mirabeau, points out, in confirmation, the peasant serfs of the Continent. The same, however, would apply to the Enp:lish workman if by bureaucratic regulations, either in fixing wages or in making the necessaries of life dearer, the reward of working more was eventually withdrawn from him. Such a policy must lead, if not to rebellion, to general stupidity and lethargy. The author denies the proposition that with high wages and low prices less work would be done than imder the opposite conditions. It is true that in an isolated case a sudden rise of wages might lead to less work being accomplished; but, generally, there would be more vigour and cheerfulness thrown into work the more the worker could better his position thereby. A similar view, though not clearly defined, and without sufficient proof, is taken by J. Anderson (14). The writers here mentioned as being friendly to the working classes are generally behind, when compared with the advocates of the opposite opinion, because they bring forward fewer results of observation than these latter, and limit themselves mainly to general assertions. Josiah Tucker, who judges the problem solely from the point of view of experience, and thereby arrives at a defence of high wages, draws attention to the fact that in a country with high wages and plenty of capital only those products wei'e brought forth which required plenty of labour, whilst less cultivated countries with low wages had their strength in goods in the production of which Nature had a large and human labour a slight share. Tucker quotes an array of instances in confirmation of his statement. Scotland produced timber ; England wheat, requiring niore labour ; certain portions of the South of England, garden products, needing still more labour ; in spite of which agricultural wages in the latter districts were the highest, and in England higher than in Scotland. Horn, wool, and hides were produced in countries with low wages ; their manipulation took place where the wages were high. Not>- withstanding which, labour had in the first case a small, in the second a large share in the production. Holland, which did not produce a single- log of timber, and where the wages were high, was pre-eminent in shipbuilding. Tucker ascribes these facts, in addition to the possession of larger capital, to the reason that more skilled and more trained labour was evolved in con- sequence of greater division of work. It may be cheaper to pay 14. James Anderson: " Observations on the Means of Exciting a Spirit of National Industry" (Edinburgh, 1777), p. 277. AND ON THE CONTINENT. 7 a capable workman 2s. 6d. per day than to employ a bad on© for 6d. The high wages of the richer country had, further, the result of attracting the most able workers from the countries paying less wages. Thus high wages were in no wise a disadvantage for a nation's economy, but were rather a sign of a higher stage of development (15). III. But the writers mentioned represent by no means the pre- dominating opinion until the timo of Adam Smith. On the contrary, they evoked a violent opposition. Several anonymous articles appeared against PostlethAvait ; for instance, the " Essays on Trade and Commerce" (London, 1770), and " Considerations on Taxes" (London, 1765). The most ordinary knowledge of man- kind taught that English workmen only worked for a bare liveli- hood. High prices alone impelled them to continuous labour. With low prices hours of labour were shorter, and still the! workers were less industrious than with higher prices and longer hours, b ecause in dear times the woi kmen were obli ged to ap^ly; t hemselves to satisfy t heir maaters . The French workman accom- plished more, although he neither ate meat nor drank beer, tol which the English workman believed he had a birthright. The] latter was the laziest workman in the world. In order to improve him, the main point was to so raise the prices of food by legislative measures that he could not earn more by six days' continuous labour than a bare living. In addition, this writer demands authoritative fixing of wages and wjQrking hours — therefore, in other words, a normal wage and a normal working day, but in exactly the opposite interest to that in which these demands are put forward to-day ; a maximum rate of remuneration which might not be exceeded, and a minimum time of labour (1 4 hours, includ- ing meal-times) (16) below which might not be worked. A. '^oung takes up the same position, also opposing the other view (iTy. He learned during his travels that business men and manufacturers in Manchester preferred high to low prices of 15. Compare Josiah Tucker: " Four Tracts on Political and Commercial Objects "(Gloucester, 3rd edition, 1774\ especially pp. 30 and 40. 16. " The poor work only for the bare necessaries of life and for the means of a low debauch. When this is obtained they cease to labour till roused again by necessity." — The second of the works quoted in note 10. 17. '< A Farmer's Letters to the People of England " (London, 1768), pp. 34-40, 201-210; further, "Political Arithmetic," pp. 110-111; further, '« Six Months' Tour in the North of England " (1770), vol. Ill, pp. 242-50. 8 THE COTTON TEADE IN ENGLAND wheat — the cloth industry languished on account of the too great cheapness of corn. He demands that food shall be made dearer and wages be lowered by bureaucratic control, in order to stimulate England's commerce and trade. Young, and the anonymous writers just mentioned, differ from Houghton, who had noticed in a raising of the ordinary wants of the workers an incentive to increased labour. They on the contrary ^ believed that a raising of the standard of living was not possible for a workman. Any balance of earnings above the necessary cost of living meant only more ale, more " spreeing," more head- aches, and less work. Therefore these Avriters wished to chain down the workman by legislation to the minimum standard of life. Benjamin Franklin came also to the same conclusion in his "Observations concerning the Increase of Mankind," though he / later on changed it for exactly the opposite opinion (18). IV. The writers mentioned were opposed by Adam Smith in his principal work (" Wealth of Nations," vol. I., chap. 8). He teaches that high wages and low wheat prices mean an increase in labour capacity. Well-nourished men worked better than those poorly fed ; those who were cheerful and contented better than the down- trodden ; healthy better than such as frequently succumbed to illnesses. The opposite view depended upon the fact that in dear V- years the workmen were certainly more submissive and dependent, but by no me$ins more capable of labour, than in cheap years. Adam Smith based these statements upon the proofs given by Messance, Receiver of Taxes at St. E^tienue, in ''Notes on the Population of Auvergne, Lyons, and Rouen " (Paris, 1 766). The passages relating hereto are on pages 287-92 and 305-8. Messance differed from the opinion that the workman only laboured for a bare existence, and that when this was attained he fell a prey to idleness. On the contrary, after satisfying his hunger he worked on more diligently to satisfy the higher wants of his life. He bought industrial productions, and spent his money on a better house and better furniture. Especially in years of cheap wheat was more clothing bought, and therefo!e more cloth woven, than in bad years. To the cheapening of wheat prices as well as the increase of wages during the last century was the prosperity 18 Compare Boscher : ♦♦ Handbuch," vol. I., par. 173, note 3. AND ON THE CONTINENT. 9 of French trade to be in the first place ascribed. Just so the development in stock-farming and garden and vine culture, the products of which now for the first time found con- sumers. Even the farmers themselves had not suffered to any extent by the falling of wheat prices. Messance proceeds, like Postle- thwait, in the first instance on the ground of increased consump- tion, although he mentions also the increase of industriousness and labour power in consequence of lower wheat prices and higher wages. In the cloth factories at Elbeuf and the silk and linen mills at Rouen we have the proofs. Messance communicates a number of tables, which, as Receiver of Taxes, stood at his service. From these, indeed, it was clear during 1740 and 1763 that the years of dear wheat had been mostly years of less produc- tion, and vice versa; that in every case the dearest showed the least, the cheapest the largest production. V. The teaching of Adam Smith was, however, far from taking immediate root. The almost universally accepted wage-theory of Ricardo stood as more important in opposition. Ricardo certainly acknowledges clearly that the minimum standard of living, to which according to him the worker was chained, de- pended upon the customary standard of living. But in his further statements, as in those of his supporters, this customary limit, though capable of being raised, disappeared behind the bare mini- mum of existence, solely decided by physiological laiKfi. The economical prosperity of a country — i.e., according to the personal economical standpoint of Ricardo, the profit of the employers — depended, for him, on low wages. Therefore, countries in which wages were low had an advantage over countries with high wages. In the latter countries capital was to be led into the channels in which the least labour in its own country was necessary— a step backward from the theory of Tucker (19). According, therefore, to Ricardo, centralised industrial development (20), which he had already in his mind, does not necessarily at the same time mean social development ; for however much national economy advanced and riches increased the worker remained chained to the minimum standard of life. That which A. Young had uttered as a practical demand was with Ricardo a law of nature J 19. Compfire. on Ricardo's position, Herkner: " Die sociale Reform als Gebot des wirtschaftlichen Fortschritts " (Leipzig, 1891), p. 12. 20. Factory system development. — Translator. y 10 THE COTTON TRADE IN ENGLAND Whilst Ricardo himself stands upon the platform of the capitalist, his wage-theory has become the basis of all those move- ments which, on principle, oppose the present economical develop- ment depending upon privilege and property — the starting-point of radical as well as reactionary Socialists. For both of these the maxim cannot be dispensed with that by reason of the existing economical arrangement the worker cannot raise his status in any case, but is irredeemably fettered down to the subsistence mini- mum. Only a complete upheaval of the groundwork of this arrangement, the abolishing of privilege and property, can bring deliverance to the working classes. But the turning of the tables will be made possible by the fact that in the present economical system the cleft between those possessing means and those without always becomes wider. The expropriated at last expropriate the expropriators. The wage-theory of Ricardo is most clearly the foundation of the Communistic manifesto in which Marx and Engels first formu- lated the progi-amme of Continental Social Democracy. The teaching aj)peared here in the definitely expressed form that it was modern centralised industry, especially the machine, which pressed down the worker unceasingly. "By the spread of machinery and the division of labour the work of the proletarian has lost its independent character, and therewith all attraction for the worker. The expenses of the worker limit themselves, therefore, almost solely to the necessaries of life, which he needs for existence and the propagation of his race. Tlie price of an article, consequently also of labour, is equal to its cost of production. In the same proportion that adversity of labour increases do, therefore, wages fall." "The modem worker, instead of raising his status along with the progress of industry, always falls deeper below the condi- tion of his own class." This teaching, which Karl Marx (21) as unconditionally supports in "Capital," has found an eloquent defender in Lassalle. "For you, gentlemen," he cried to the workers, " always the bare necessaries of life ; for the employer's share, all the balance remaining from the result of labour." Lassalle does not recognise a social advance on the basis of an economical one ; hence his scoffing at the English trade unions as "the ineffectual experiment of the commodity Labour to demean itself as Humanity." 21 K. Marx, 4th edition, vol. I., pp. 226-61. AND ON THE CONTINENT. 11 The teaching of react ionary Socialism is nothing different with regard to the consequences of the modern economical system for the worker. Represented in England by the early novels of Disraeli and contemporary High Churchism (22), it has found its most spirited adherents in Germany. In the numerous volumes of the " Berlin Revue," and in Glaser's " Annuals," this tendency in the years of the " fifties " and " sixties " has culminated in a social- political programme which H. Wagener, in 1855, collected in the "Outline for a Programme of the Right." This party, as it on the one hand glances backward to the Mercantile-State of Fred- erick the Great and Frederick William I., has on the other hand become the basis of later State-Socialism. Through all the volumes of the works mentioned the main thought shows itself, that the modern economical system founded on freedom and property, and especially centralised industry raised on this foundation, tramples down the.worker irredeemably. Far from the fact that continuous economical development means at the same time social progress, the view is taken that deliverance depends upon banishing "the principles of 1789" and in going back to the old Guild trade-rights, coupled with the fixing of wages by the State. The most important of these writers, Lavergne-Peguilhen, attributes an implacable struggle between Capital and Labour to the present economical system. It burdened the worker more heavily than the feudalism of the Middle Ages, and even than slavery (23). Similarly, Her- mann Wagener speaks df the economical system of to-day as a " despairing and annihilating struggle which everywhere can only lead to the complete social and political subjection of the less powerful — to modem slavery without masters" (24). The bourgeoisie invited the worker, " like a lame man, to a race," and under the scornfully invented pretext of freedom of trade, by the overwhelming influence of their means shut him out from trade. Freedom of trade means for the worker nothing more than the freedom to seek out for himself that trade wherein he wishes to 22. Compare ray book ' ' Oq Social Peace, "German edition, vol. I. , pp. 877-99. 23. Lavergne-Peguilhen : "The Conservative Social Teaching," second number ; " The Orpranic State Teaching." Berlin. 1870 (Collected Essays from the " Fifties" and " Sixties," p. 128). Compare also pp. 59, 60, 124. 24. H. Wagener: "The Small but Important Party" (Berlin, 1885), wherein the programme of the Eight of 1855 is communicated, pp. 8 and 9. 12 THE COTTON TRADE IN ENGLAND suffer from hunger (25). In fact centralised industry needed pauperism, so that the price of labour power did not increase beyond the cost of its production. The modem industrial system and its representatives had therefore the highest interest in pre- venting the advancement of the worker (26). Similarly, says Prof. Glaser, intimately connected with the writer mentioned, " No real judge of the teachings of national economy will assert that under the present condition of production in European States the working class as a class can raise itself by its own power from its position" (27). England is, according to this writer, because economically the furthest developed, in the worst social position — the country of massed distress, close on the brink of revolution. To these fathers of the present State-Socialism Catholic authors like Joerg, Bishop Ketteler, and others link themselves. Accord- ing to all of them the impossibility of an elevation of the workers on the basis of the existing economical system is an axiom, and by it they support their more or less far-reaching Socialistic de- mands (28). VI. This teaching, like that of Radical Socialism, depends on the common principle of view that the modem economical development binds the worker to the minimum standard of life, and that on this basis a continuous improvement of his position, especially by increases of wages, is impossible. This view, which is nothing else than a condensation of Ricardo's wage-theory, has been aban- doned in later literature. The so-called Manchester school, as well as the historical school, acknowledges the possibility, even the necessity, of a rise in the standard of living of the workers, also continuous increases of wages, on the ground and as a consequence of economical progress. 25. Compare Wa^ener's speech on the occasion of the proposal of Schulze- Delit«ch regarding the coalition right of employer and employed, sitting of the Prussian Parliament, llth Feb. 1865. Further: " Pasfr', Present, and Future of National Political Economy." by Oswald Stein (a known pseudonym for Wagener). Berne and Leipzig, 1880, p. 126. 26. Wagener's " Staatslexikon," vol. XV., Art, " Pauperism." Further, the book just quoted, pp. 131, 132, 122 27. Compare 61 aser : "Elevation of the "Working Classes to Economical Independence " (Berlin, 1865). 28. Jorg : " History of the Social-Political Parties in Germany " (Freiburg i. Br., 1867), p. 36. AND ON THE CONTINENT. 13 In this way Maccullpch (29) explains the higher wages of America, of England, and of Holland as by no means an economical disad- vantage compared with the lower wages of the Irish, Poles, and Hindoos. The difference was more than balanced by greater industry and increase in the amount of work done. Senior says the same thing — in spite of lower wages the price of labour was dearer in France than in England (30). Rau and Roscher are of the same opinion (31). The last-mentioned author supports it with an abundance of interesting experiences, gained in all countries. We find a similar change of theory respecting the hours of labour. Whilst formerly the use of machinery as long as possible was considered desirable, and every reduction of the hours of labour was looked upon as a loss, later on the economical advan- tages of a gradual curtailment of the hours of labour were generally recognised. Especially well known is the change which the views of Senior underwent in this direction. Whilst he had declared, in his "Letters concerning the Factory Acts of 1837," the reduction of the hours of labour from twelve to ten would ruin the cotton industry, because just in the last two hours was the employers' profit realised, he withdrew this teaching in 1863 , at the Congress of Social Science, in Edinburgh, as erroneous, and recommended the extension of the ten-hours law to a number of other industries. The views of Macaulay changed in a similar manner. Formerly an opponent of the Factory Acts, he made, later, a brilliant speech in defence of the ten-hours law. He closed this speech with these memorable words, since so often quoted : " If we are ever com- pelled to retire from the paramount position amongst trading nations we shall not give way to a race of degenerated dwarfs, but to some other strong nation excelling us in physique and genius " — referring to the then extreme hours of labour of some German factories and the quoted bad residts of recruiting in German indus- trial districts. German national economists agree with the English. According to Emminghaus (32), for instance, the shortening of the hours of labour means in no wise always an economical disadvantage ; fre- 29. " Principles of Political Economy," 2nd editien (London, 1830), p. 397. 30. " Political Economy," 5th edition (London. 1863), p. 143. 31. Rau : " Volkswirtschaftslehre," par. 201a ; Roscher : " Volkswirtschafts- lehre,"!., par. 40, par. 173. 32. A. Emminghaus: "Allgemeine Gewerkslehre "(Berlin, 1868), pp. 78-90. 14 THE COTTON TRADE IN ENGLAND quently the same production was realised with shortened hours of labour. But if with shortened hours of labour the same amount in wages on piecework could be paid, this had at once to be recog- nised as an advantage for the employer. Tlie severest attack against the theory of Ricardo was made by Brentano, in the first instance in his " Arbeitergilden der Gegenwart." As a result the wage-theory of Ricardo became untenable also for those hitherto its supporters, whose interests were bound up with it. After Fr. Lange had already acknowledged this in the intro- duction to a later edition of his " Arbeiter-frage " (33), it was only a question of time until the representatives of German Social Democracy also acknowledged the scientific advance. This occurred at the Congress at Halle in 1890, where even the former wage-law was abandoned (34). Brentano enforces in detail the teaching above described, that the gradual raising of wages and shortening of the hours of labour, being used for elevating the standard of living, is economically justified, in that they bring forth a higher capacity for work. Brentano has, in his writings as well as his lectures, given frequent expression to the conviction that the elevation of the working classes by continuous development of the existing economical system harmonises, indeed, even on the basis of economical pro- gress, and follows as a matter of course — a teaching which must be the foundation of all social strivings after peace (35). It is neces- sary for me here to thankfully acknowledge that for the incentive to which the present work is owing I am indebted to the gentleman mentioned. Herkner follows Brentano's steps, in his meritorious work — " Social Reform a Demand of Ec onomical Progress" (Leipsic, 1891). Herkner expressly teaches the utility of all efforts vriih. a tendency to the elevation of the working classes, especially of legislative enactments tending to the economical development of strength. 33. F. A. Lange: "Die Arbeiterfrage," third edition, 1875, p. 190. 34. Compare Brentano : Meine Polemik mit Karl Marx (Berlin, 18w>), p. 7. 35. Compare Brentano: ''The Teaching on the Increase of Wages — Annual for National Economy and Statistics," published bv Hildebrand, vol. XVI. (1871), pp. 251-91; also <' On the Relation between Wages and Hours of Labour to the Capacity for Labour " (Leipzig, 1876). AND ON THE CONTINENT. 15 VII. Let US now interrogate practical men. Among them pre- dominates by no means the same unanimity as at present exists in theoretical circles. On one side stand the English and Americans ; on the other, many of the Germans. Chief amongst them, the best known is Brassey, who, in his " Work and Wages," has gathered together the experiences of his father — the greatest railway contractor in the world. Brassey's conclusion I have spoken of in another place (36). It was a mis- take, he says, that the higher wages of England meant an eco- nomical disadvantage ; rather was the price of a defined piece of work in England by no means higher, in many cases certainly lower, than in the remainder of Europe, which exhibited a far lower standard of living of the workers. In a similar manner Lowthian Bell, a distinguished ironmaster in England, declares, in his '' Manufacture of Iron and Steel," that tlie weekly earnings of the workers engaged at the English furnaces were certainly con- siderably higher than on the Continent, in spite of which a lower amount of wages was paid per ton of pig-iron in Cleveland than in Germany. The same result holds good, according to Schoenhof, in comparing the American production of pig-iron with the European (37). Generally, the two Americans — Edward Atkinson and J. Schoen- hof — support as decidedly as possiible the opinion of Brassey. Both are men of business. Atkinson is engaged practically in the cotton trade of Massachusetts (38). Both declare that economical progress, which is at the present day progress from Isolated to Centralised Industry, from hand to machine work, necessarily brought in its train a continuous elevation of the status of the workers. The high weekly wages which countries the most eco- nomically developed exhibited were in no wise a disadvantage for them in the competition of nations. They were nothing more than a sign of technically-developed trade conditions — especially of the triumph of centralised establishments over antiquated methods of production. In spite of the higher weekly wages of the workers, in consequence of better machinery and of greater capacity for _ - , 36. "Social Peace," vol. 11, pp. 261-5. 37. J. Schoenhof: " Industrial Situation " (New York, 1885), p. 77. 38. Edward Atkinson: "Distribution of Products," 4th edition (New York, 1890). Also : «' The Margin of Profits. " Further : J. Schoenhof, ' ' In- dustrial Situation " (New York, 1885). ^ 16 THE COTTON TRADE IN ENGLAND work, the cost of labour in America for most of the goods pro- duced, especially by means of Centralised Industry, was lower than in the competing industries of Europe. The opposite view is held by numerous practical Germans. According to the opinion of many of these, the sudden and con- siderable increase of wages which took place at the beginning of the "seventies" has by no means resulted in economical progress. On many sides was the view defended, in the press as well as in the Reichstag, that these increased wages represented a weakening of German industry compared with foreign, and ,i cur- tailment of exports. Far from the increase of wages being accom- panied by a corresponding raising of labour capacity, they had rather in most cases caused a diminution in the work accomplished. This view was taken, for instance, by the Prussian Minister of Commerce, in a Rescript of 28th March, 1876, to the head Mining Departments (39). The same view is expressed in the "Memoir of the Association of German Iron and Steel Employers" which appeared in 1875 (40), and in the Government inquiries concerning the Iron Trade, as well as the Cotton and Linen Industries, in 1878 (41), herein with special confirmation by German ironmasters and some spinners. As a means for raising the labour capacity it is recommended, in the Rescript above quoted, to lower the rate of piecework, by which the most effectual incentive for work would be given — advice similar to that of A. Young and those writers of the last century' mentioned along with him. If we hie to the agricultural East of Germany, the teaching of the con- trary relation between height of wages and labour capacity would meet with few doubters. We have, therefore, to record a variation between the older theory and the yoimger, and also between practical men of different countries. Is it possible that one of the two sides is alone correct — the other simply wrong? Such an assumption is for- bidden by the abundance of undoubted facts with which each of the two views is justified by its adherents. Rather is the variance only to be solved by accepting it as the result of development. One must accept that the theoretical view, from Sir William Petty 39. Compare Brentano: "On the Relation of Wapes and Hours of Labour to the Work Accooaplished " (Leipzig, 1876), pp. 6-7. 40. Berlin : Printing Office of the " Berliner Borsenzeitung," p. 21. 41. In the original the aathor, in his foot-note, gives the pages and ques- tions here referred to. AND ON THE CONTINENT. 17 to A. Young, corresponds to an older, that of the newer national economists to an advanced stage of development. Could we still be doubtful about suoh a solution of the divergence, it is made a certainty by the fact that one of the most decided adherents to the newer theory himself denies its applicability for India (42). In India, says Brassey, one has observed, contrary to experience in England, that a higher wage lessened the capacity. If, otherwise, the change in the teaching depends on a change of circumstances, this latter must extend back to that economical reversal encircling everything which distinguishes the economical life of the present from that of the foregoing century. Wherein did it consist? From a system of independent economical units regulated by privilege and birth was evolved, with the im- provement of competition, an international establishment riveted into an independent whole by division of labour and by barter. Thi s change caused, on the one hand, a. change in the method of pro- duction. In place of hand-labour appeared modern Centralised Industry (43), and further, a certain psychological reversal. There arose new ways of thinking and, therewith, new men — new types of employers, and of workers. To the degree that this alteration develops itself the changed theory corresponds. In purely customary circumstances, the old teaching obtains everywhere ; to the extent that the conditions glide away from the ordinary average character and are drawn into the world's economy, the theory begins to waver. In the same degree that the reversal has developed with the triumph of Centralised Industry over the older forms of production, the new teaching becomes acknowledged, first by the theorists, then by practical men, of nations in which the economical reversal com- pletely exists. In countries on the point of changing, many prac- tical men cling to the old teaching. This development should be followed closely in the most im- portant branches of trade. It should be shown how this economi- ^ cal development on the one hand means technical, then social pro- gress, and how the elevation of the working class necessarily moves hand in hand with it. Nothing should be more fitting to combat that social pessimism which supposes that modem development of 42 *' Work and Wages," 2nd edition (London, 1872), p 88, 43. The factory system. — Translator. 1^ 18 THE COTTON TRADE IN ENGLAND affairs leads to a breaking-u p of society , or to a dilemma which is only to be loosened with powder and shpj. Among great indus- tries there are two specially adapted for this proof — the Iron Trade and the Cotton Industry. Both extend over the whole world, and produce everywhere the same, or at least similar, articles. The productions of both are measurable and comparable either by length or weight. Both are, in addition, the leading trades of the most important industrial countries in the world. But the Cotton Industry has one advantage over the Iron Trade. In it machinery has for a century obtained the upper hand, and has more and more confined human exertions to the minding of the machine. Tlie Iron Trade is different. The Bessemer and Siemens processes have only recently put mechanical power into a leading position, whilst with the puddlers of to-day that older type of skilled and strong-sinewed hand-labour dies out. But the English Cotton Industry, which presents the longest his- tory of all modern Centralised Industry, is particularly suitable for an examination of the economical and social tendencies of the modern economical system. We seek in the history of the English Cotton Trade those traits which can everywhere be deemed of value as general characteristics of centralised industrial forms af production. Therefore, if I beg the reader to accompany me yet again to England, this happens in the sense in which once Sir William Petty and other contemporary Englishmen studied Holland, and thereby helped to establish the greatness of their own native country. AND ON THE CONTINENT. 19 CHAPTER II. The Development of Centralisation in the English Cotton Industry. \ /. — TJie Origin of the Factory System. India, the ancient seat of trade, is also the home of the cotton industry. Alexander the Great found, even in his time, the natives clothed in cotton garments. Indian woven goods have been from ancient times imported into Europe as articles of luxury. The Arabians brought many trades and arts, including the cotton industry, to Europe. Wherever they pushed their way they grew the cotton plant ; especially did its culture flourish on all the coasts of the Mediterranean. Spain and Sicily spun and wove cotton in the 11th and 12th centuries. When, in later times, the economical point of importance in Europe advanced north of the Alps, it was followed by the cotton industry. Flemish and German towns became its seat. England, at that time depending solely upon agriculture and its products, was not the place for an industry of luxury, as the cotton trade was at that time. It required, as essentials, trade, and consumers who had become rich by trade. Venice was the cotton market of the world — the Liverpool of those days; Antwerp the seat of manufacturing — the Manchester of that period. As was often similarly the case, foreign immigrants also laid the foundation of the English cotton industry — refugees who sought a home in England after the destruction of Antwerp by Alba, in 1585. Many of them settled in Manchester and Bolton, which towns were at that time the seat of woollen weaving. Foreign weavers were particularly attracted to Manchester by the permission to fell wood for building and burning, as they wished, in the College woods situated in the vicinity of the city — 20 THE COTTON TRADE IN ENGLAND a sign of very primitive economical conditions. From that time the import of cotton into England is mentioned. But how little important was the manipulation of cotton, even at the tmn of the centur}% is shown by the fact that in the Elizabethan poor- laws the various occupations, notably the spinning of flax, hemp, and wool, are recommended as employments in workhouses, whilst cotton is not mentioned by a single word. It was the transference of the world's highways of commerce, in connection with political events, which caused Germany and Flanders to give way, economically, to Holland, and later on to England. On this basis is the flourishing of the English cotton industry to be understood. Already Lewis Roberts, in his "Treasure of Traffic," published in 1641, mentions the cotton industry of Manchester as a flourishing trade. Daniel De Foe finds, on his " Tour through the whole Island of Great Britain," in 1727, the town of Manchester in an astonishing state of progress. In a few years its population had doubled. This has to be ascribed, he says, before everything else, to the cotton in- dustry, which has flourished so exceedingly during the last 40 years. The art and manner of manufacturing was at that time, according to Guest, as follows (1). The warp for the woven goods consisted of linen yarn, mostly imported from Germany. Cotton for this purpose could not yet be spun strong enough. The weft was cotton yarn, which was spun by coimtry people in the vicinity of Manchester. Tlie weaver was an independent hand-worker. He bought yarns, and brought the woven goods to the Manchester market for sale. In the degree that the industry produced not only for local needs but also for more distant markets, and the striving to cheapen the production costs extended with competition, the independent weaving master gave way to the wage worker who received the yarns for weaving from the merchant. The merchant origin- ally sold the woven goods himself, by carrying them on the backs of packhorses through the country. Up to this point merchant and weaver stood socially equal. But in proportion as the merchant became the giver-out of the yams he began to get the sales effected by commercial travellers and pattern books. This change is put by Guest at 1740. 1 Guest: "History of Cotton Manufacture " (1820, p. 7> AND ON THE CONTINENT. 2l With the extension of the market this method of selling was not sufficient. The merchant separated himself from the giver- out of yarns, who moved from Manchester to the weaving villages situated around Manchester, and this latter sold to the merchant. Thus worker, manufactm-er, and merchant divided themselves into three separate functions which ai*e still to-day the main essentials of the industry. But, in spite of trading activity, England's cotton industry had to deal witli a superior competitor. As the European Con- tinent and America are to-day with respect to England, so was England at this time with respect to the Indian cotton in- dustry — dependent on coarse yarns and woven goods. As to its further development it is important to note that the English cotton industry was already exposed to international competition in a larger degree at a time when bad country roads on the Con- tinent still scarcely made this competition felt. India was in the last century, compared with Europe, still an industrial country which chiefly interchanged trade products, especially cotton and silk goods, for natural products, principally metals. As early as 1 708 De Foe complained about the importa- tion of Indian cotton goods into England. It had become the general fashion for ladies to wear calicoes and muslin, following the example set by the Queen. Not only clothing, but also bedding and curtains, were made from foreign stuffs. De Foe's complaint is more worthy of attention as it happened at a time when the law prohibiting printed Indian calicoes already existed (1700). Again and again similar complaints appeared, such as that the " depravity of the nature of woman " by the passion for foreign clothing ruined the home industry (2). That through- out the whole century Indian competition existed very keenly is proved by the following occurrence. In the year 1775 a "Pa- triotic Society" was founded in Edinburgh with the object of opposing the fashion for Indian cotton apparel. It was deter- mined to boycott every man who associated with ladies wearing cotton. It is also said that at this juncture the use of Indian stuffs was general — of course only in well-to-do circles of society (3). If, even, the complaints mentioned about the use of 2. Compare Baines' " History of the Cotton Manufacture "(London, 1885), pp. 79, 82, 104. 3. Ure : " The Cotton Manufacture " (London, 1836), L p. 190. ''\ 22 THE COTTON TRADE IN ENGLAND cotton goods were first raised in the interest of the English woollen and linen industries — these were at the time still the more important industries — it is clear, that the pressure of Indian competition affected in the highest degree the English cotton industry. What a revolution took place in the foliowins: decades is shown by a petition of Indian merchants in 1 83 1 . The petitioners complain that in India home productions were supplanted by English, and they demand, without promising themselves even by its aid much relief, the withdrawal of import duties in England, so that both countries might be at least treated on an equality (4). In the interval the change to machinery and the modem factory system took place. In 1760, says Baines, machinery in Eng- land was as primitive as in India; after that time inventions followed each other rapidly. In the last decade of the past century the first muslin yarns — up to this time a monopoly of India — were spun in England. In that period occurred the tremendous revolution which first transformed the cotton industry of England and placed it at the head of trading as well as social development — that revolution which extended first to Lancashire, then to the whole of England, then to the West of Europe, and re-arranged the economical conditions of the world. Tliis change raised up new classes, firstly the middle, which became the chief in the State — in the place of the old agrarian influence — followed by the upward-aspiring working class. To the extent that a nation makes such a change its otS'n, and completes its produc- tions by the^machine, in that degree does it stand to-day ahead in economical power amongst the nations of the world. From what cauaes did this change arise? Marx, who depicts the development of machinerj^ in a very clear manner, has no answer thereto. He believes that machinery' was invented because natural science was far enough advanced to create such inventions. How mistaken such a belief is Brentano has pointed out (5). He has specially called attention to the fact that by no means scientific searchers, but men of the most various callings, mostly of industrial ])ursuits — Cartwright alone was a clea^unan — created the inventions, by reason of the jiractical wants of the time. A 4. Compare Baines, p. 82. o. Comnare Brentano: "On the Causes of the Present Social Distress " (Leipzig, 1889), p. 7. AND ON THE CONTINENT. I rikffV^f>p.^ further proof in contradiction of Marx's theory is, that simil machines had already been used here and there for centuries •without in their time attaining any economical importance. The application of steam power for lifting loads is centuries old. Peter the Great had applied, after the manner of the Dutch, a steam engine for the watering of his gai'dens. The combination of a number of spindles ^vith bobbins in a creel or frame, and the setting into operation of bobbins as well as spindles by mechanic- al means, was an arrangement of Italian silk-spinning introduced by Sir Thomas Lombe into Derby before there was any mention of machinery in the cotton industry (6). Tlie so-called Saxon spinning wheel — an old German invention — ^the forerunner of the later throstle — had already made the greatest portion of the spinning process mechanical ; for instance, the twisting of the threiid and the winding-on of the same without the aid of the human hand (7). The woman spinning had only to perform the drawing-out of the thread by manual labour. This spinning- wheel was used for a long time in Germany for spinning flax, but a combination of this arrangement in some way with that of the Italian, which appears to have been somewhat similar, was not thought of. Johann Beckmann relates, in the first volume of his "Contributions to the History of Inventions" — and, with the exception of the date, Marx in " Kapital " makes exactly the same statement — that as early as about 1579, powerloom weaving had been invented in Dantzic. Therefore it was not technical p^roimds which led to the economical reversal towards the end of the last century. Much more probably was it the accumulation of a number of economical moments which led to the technical developments. Long- created, or at least half-accomplished inventions, but, up to that j date economically without influence, were first at this time applied to form modern centralised industry. This is not the place to • give in fuller detail this economical foundation of the trade revo- lution, because this task requires a special examination. It is sufficient to name the main ideas of the development. I. As m.enti&ned above, society in the Middle Ages consisted of a number of independent isolated groups which were only in a slight manner connected to each other by interchanging. What- 6. Baines, p. 127. 7. Karmarsch: " Technologie " (Hannover, 1867), vol. II., p. 844. 24 THE COTTON TRADE IN ENGLAND ever flowed to each group in the way of riches was controlled by usage and privilege, especially by the position in which the repre- sentative of the group was bom. The revolutionary element in Middle-Age society was the merchant — a stranger in the land, originally treated as an enemy. He represented, as opposed to the landed proprietary of the Middle Ages, a new modem line of thought. Whilst, then, the lots in life were settled by usage and privilege, the stri^dng after the greatest possible profit tilled his \ery soul — according to present ideas, the first " self-made man." Conunerce brings riches. In order to favour it a new system of law subservient to it must be created. Whilst justice for the rest was inherited privilege, a law freed from personality was created the commercial relations — a "jus gentium," as opposed to " jus civile" — a common right as opposed to the special laws of the Saxons, Franks, etc. The two events in the history of the Roman as well as German law just mentioned depend upon the development of the commercial element. Wherever this attains the upper hand it leads to legal conditions which are just the opposite to former ones ; in place of restriction of property, to free property ; in place of limitation of the person, to personal freedom. But for a long time the influence of the commercial element was slight, and was confined to certain centres of communication, markets and towns. Tlie difficulty of traffic, the badness of roads, the uncertainty of law, duties, staple rights, etc., confined commerce to a few valuable articles. With respect to the great majority of economical commodities, competition was not felt for a long time. Production and prices depended upon privilege and custom. How the individual persons participating in the pro- duction divided the products among themselves was regulated, in like manner, by authority. Only when competition, and therewith commercial ideas, seized industry, the old guilds yielded to freedom of trade, and that change of production occurred which led to the machine and centralised industry. The development, for certain reasons, first occurred in England during the last century, and, indeed, earliest in the cctton in- dustry. A helper at the birth of the new period was here, as in other places in Europe, the mercantile monarchy, "which re- quired money in order to pay civil servants and soldiers, and therefore favoured commerce. (Elizabeth, Cromwell, William III.) AND ON THE CONTINENT. 25 During the last century England became the chief commercial country of Europe. Even into the camp of landed proprietorship the spirit of commerce entered, as is evidenced by the change from customary rents to so-called rack-rents. To a still greater ^ extent was industrial production seizedby the desire for the greatest possible profit. But, on the other hand, with the thriv- ing of commerce^industrv^ came undei* the pressure of competition^^^^-'' The maritime position of England, the number of her harbours, and the favourable conditions of the tides for shipping aided her trafiic, whilst the bad communication on the Continent combined to maintain the monopoly of trade for a long period (8). But, as seen above, English cotton industry came first under' the influence of competition. Therefore with competition arose the striving after cheapening the costs of production, which led to production in large masses, and to the application of labour-saving machinery. "Communication was* the outer vehicle. Commerce the inner soul, which gave the impetus to Centralised Industry " (9). II. The first essentials of commerce — personal freedom and security of property — were, during the last century, in England, as a commercial country, more realised than in the still mostly agrarian States of the European Continent (9a.). In the supposed interest for the livelihood of the people State police-power has in other countries (10) hindered the coming into use of machinery. The hatred of the masses against inventions has also caused the persecution of inventors everywhere. The first English manufac- turers passed through this experience ; their mills were destroyed, their lives threatened. Kay, the inventor of the fiy-shuttle (1733) had to leave his native country, and later inventors were mostly compelled to seek their fortunes in other lands. 8. According to Sir Winiam Petty (" Several Essays on Political Arithmetic," (London, 1699, p. 173) carriage on land was at that time 15 to 20 times as dear as ship freights. 9. Schmoller : Ueher die Entwicklung des Grossbetriehs und die sociale Klassenbildung, " Preussische Jahrbiicher," vol.. LXIX., part 4. 9a. Adam Smith acknowledges, thus early, political freedom and security of property as consequences of commerce, and even declares them to be the most important issues (" Wealth of Nations," vol. III., chap. 4). Petty points out, following the examples of the Dutch, that commercial and religious freedom go hand in hand. 10. Roscher: System, III. , par. 125. Lotz: <' Archiv fiir sociale Gesetz- gebung," Vol. IV. , p. 560. Thus the people of Dantzic caused the inventor of the "Band-Mill" to be secretly drowned. Grassmann: " Entwicklung der Augsburger Industrie" (Augsburg, 1894). At pages 13, 14 there is a passage concerning a magisterial order against using machinery in the year 1826. ^ 26 THE COTTON TRADE IN ENGLAND Thus, especially in Nottingham, and later in Lancashire, the seat of the textile industry, were their mills destroyed and their lives threatened. Thus it was with Hargreaves and Arkwright; even the elder Peel was personally in danger of his life. It is thus seen that the security ct the law was in England also, at that time, only just so far advanced that inventions could be applied under great difficulties and dangers. (III.) The revolution in industry could only develop itself in a branch which was free from legislative enactments of industry in the sense of the older period. The cotton industry of the Con- tinent possessed such an .enactment. One only needs to read the description which Bein gives of the industry of the Voigt- land in order to see that under such conditions inventions could not come into existence. There everything was regulated. Spin- ning took place under the control of the State, and yarns were collected together by officials. The right to weave was vested in membership of the Guild. The method of production was strictly defined. Stat© offices for inspection exercised control. Faults in woven goods were visited by punishment. In the same manner the right to dispose of cotton goods was also vested in members of tlie Commercial Guild. To be a trade employer had almost the character of a public office. Besides other ^sen- tials, a formal examination was necessary for it. The sale of goods was also minutely regulated; for a long time fixing of prices existed, and even a legislative fixed selling maximum for the retailer. The retailer was ^obliged tcr buy the weaver's goods, for which, in return, a monopoly of sale was guaranteed to him. Under such conditions the application of machinery was not to be thought of. Not only was the production itself defined by the State, and &very deviation punishable, but, what was still more important, the incentive to technical progress was wanting, in that to everyone who possessed a lawfully con- firmed position in the trade, to the weaver as well as to the retailer, a sufficient existence was guaranteed by reason of fixed arrangements, and ©very encouragement to technical improve- / ment was lacking. ,' The introduction of the modern working system would also ' have opposed the spirit of this legislative arrangement, which had for its object an equal division of riches and sought to prevent that advancement of the few which was certainly inevitably connected with the modem factory system./ It was competition with the productions of English machinery' which first overthrew this arrangement on the Continent (11). 11. Compare Bein : " Die Industrie desVoigtlandes," II., pp. 40-45, 73-86 AND ON THE CONTINENT. 27 A similar institution controlled the English wQflHenJndustry. There existed offices for the inspection of woollen_go€ds in Man- chester, Rochdale,, Blackburn, and Bury (12). Josiah Child gives (in his " New Discourse of Trade,"' London, 1693, p. 130) a view of the trade privileges which he had already, opposed, and which regulated the woollen industry. According to him, the sort and quaUty of the cloth was exactly specified by law, so that ''loyal cloth" might be produced. Deviations were settled by the inspecting offices. It was also defined up to what length a certain piece of cloth might be stretched. Cloth fulfilling the lawful conditions was mai'ked with the magisterial seal, and every infringement of the existing regulations was punished. In addition to this, the law fixed the number of the workpeople and of the looms which one weaver might employ — that is, a^ by the aforementioned German law, it fixed a limit of production in the interests of property-equalisation. The author mentioned demands, instead, that a faculty inspection should displace the obligatory; everybody should be able to make cloth to his own mind, but only the cloth produced and examined according to regulations should receive the official seal and so go abroad on the " public good faith of England." On the other hand, Child is in favour of retjiining definite bureau- cratically controlled length-measurement-s of all cloth which was destined for export. Therefore, even an unquestionable reformer asks to what extent the old arrangement should l)e limited, as in fact this gradually occurred during the last century, especially by means of the movement of the industry from the towns to the country. Whilst the woollen industry, therefore, only gradually loosened the bonds of the older trade-privileges, the cotton industry was a new trade, just brought into the country, whi(;h the State, in protection of the older industry, handled with disfavour. Whilst the one was helped forward by all the means possible— the laAv is known according to which no dead should be laid in the grave without a woollen shroud — the cotton industry was hampered with import duties only repealed by Sir Robert Peel (after a partial repeal, 1787, 1798) ; with prohibition of printed calicoes; later, in place of these, loaded with heavy taxes on its' use (the latter only repealed in 1831). In spite of which it was not the woollen but the cotton industry whose wonderful unfolding was to create the greatness of England. 12 Compare Ure : " The Cotton Manufacture," I. p. 187. 28 THE COTTON TRADE IN ENGLAND It enjoyed an advantage over the woollen industry in being able to develop itself in the field of the new time without hin- drance. On the basis of property and freedom, the spirit of commerce launched this, the first modern industry. It was not by chance that the delicate fibre, its standard-bearer, was a child of the distant tropics. Commerce had first brought the fibre here, and Commerce had to be thanked for the freedom from ancient enactments which still strangled her home-bred sisters, the woollen and linen fibres (13a). The revolution first attacked spinning so early, because up to now the demand for yarns had by far outstripped the supply (13). Powerloom wea\dng could not be thought of until spinning by power delivered yarns in suitable quantities. The first factory, in the modem sense, was the spinning mill of Arkwright, in Not^ tingham, 1768. The following moments are to be noted in the first decades of the cotton industry — I. The prohibition of Indian woven goods. In 1772 the first printed calicoes wholly of cotton were made in England; in 1822 the first twist was exported to India, II. The change of fashion to cotton among the wealthy as well as the working classes. Fustian, a sort of cotton velvet, became for a very long time the clothing of the English workman. III. The flooding of the Continent with English yarns and woven goods. In 1792 English yams appeared for the first time in large quan- tities at the Leipsic fair. IV. The Napoleonic war, which hin- dered the flourishing of a Continental industry, and, with the tremendous extension of smuggling, scarcely harmed the English cotton industry. V. The quick realisation of large fortunes in the hands of the earliest manufactiu'ing families. Up to the "twenties" there were, unless we except 1812 to 1814, no de- pressed business years. As early as 1801, with total exports of 18 millions, cotton goods counted for 7 millions. Truly could Macculloch say that the rapid growth of the cotton industry had given England the 13. Compare Baines, pp. 115, 116. 13a. Qn the other hand the German cotton industry, because older than the English, was under Guild control, the Augsburg industry (compare Niibling trim's Baumwollindustrie in Mittelalter, Leipzig, 1890) as well as that of the Voigtland (compare Bein : " Die Industrie des VoigtlanHes," Leipzig, 1884). Even in this century the existence of Guild trade limitation was a fetter pre- venting the development of the Augsburg cotton industry. Compare Grass- mann: " Augsburger Industrie in Jahrhundert," Augsburg, 1894, pp. 12, 13, 27, 29, 31, 107. Only in 1861 did the Weavers' Guild cease to exist AND ON THE CONTINENT. 29 power and the means to withstand victoriously the long years of war with France. But this splendid economical development had another ad-\ vantage, not less gratifying. It is known that England in the first decades of this century possessed a social-revolutionaiy La- bour party which exceeded in strength and harmfulness all later similar movements on the Continent (14). This tendency, which sought a forcible seizure of governing power by the workers, had its chief adherents among the workers of the flourishing great industry. Even Ure, depicting everything as favourably as possible, has to acknowledge that nowhere in the world did such bad relations exist between employers and employed (15) as in the Englisli centralised industries. This is interesting, indeed, if we compare therewith the present relations of Europe. In Manchester, in 1819, the massacre took place on "Peterloo'* fi.eld, caused by a charge of the yeomanry on a crowd of working people which did not disperse on the reading of the Riot Act. An attempt on the life of the Premier followed, and the answer thereto was a coercion law, the so-called " Castlereagh's Gag Bill," with extensive limitations of the right of public meeting and the freedom of the Press. It was in Hyde, a stronghold of spinning, and the seat of one of the oldest manufacturing families — the Ashtons — where, in 1838, at a nightly gathering, the workers, when asked by their leaders whether they were ready, answered by volleys from rifles. At this time there existed in Glasgow a system of terrorism advanced even up to assassination. Houldsworth and other employers refused repeatedly to give any evidence respecting workers' combinations, and the like, before the Committees of Inquiry, l>ecause they would have feared for their safety (16). "^ Without going more closely into the movement, we must get to know its economical foundation. About the turn of the century, according to the declaration of the manufacturer Houldsworth, potatoes, and with them oatmeal, were the chief nourishment of the workers; as an occasional luxury a herring served. Indulgence in meat was almost un- known. It grew in proportion as the machines, becoming larger, 14. Compare my book, " On Social Peace," I., p. 55, also Brentano, in the '' Prussian Annuals " (1874). 15. Ure: " Cotton Manufacture," Intro. , pp. 24, 25. 16. Ure: " Philosophy of Manufactures," pp. 348-65. 30 THE COTTON TRADE IN ENGLAND necessitated the meatreating spinner, who was introduced from England into Scotland. On the other hand, the large majority of the workpeople were confined to the minimum standard of life. A weaver did not get more than 5 to 1 2 shillings per week, and the average wages of all, spinners included, was not higher than 10 shillings. Against this, having regard to prices in 1839, and to the indispensable minimum of clothing and nourishment, a weekly sum of 34s. OJd. was necessary for a family of man, wife, and three children. If we assume that man and wife were employed at average wages in the cotton industry, they would together have earned 20s. There would therefore be a deficiency of 148. to be covered by under-nourishment, debt, or both. "No wonder that we at that time heard about Chartism," remarks the best authority on the English cotton industry hereto (17). That, indeed, both these means of aid were requisitioned is proved by the numerous instances contained in Blue-By)ks . n^ During the last 25 years, related in 1834 a witness froin lijiiiEk- ■port — a town which was inhabited solely by cotton workers — the number of pawnbrokers had increased fourfold ; the turnover of each threefold. A quarter of the population of the town regularly pawned their household goods, and almost all clothing, on the Monday, to fetch both back, as far as possible, on the Saturday, after receiving their wages. The same witness affirmed that the working classes bought nearly everj^thing on credit, and, on account of the uncertainty of their paying, had to pay 50 per cent, more than buyers for ready cash (18). It is not necessary here to give further details. On the other hand, it is to be pointed out that at that time the extensive mass of cottage workers stood behind the factory operatives as well ; that also in England the question of the distress of the cottage weavers appeared to mock all efforts at solution. These ^ . conditions were the^^cause of numerous and unwieldy inquiries. They are full of telling analogies to the conditions of German cottage industry as they are depicted in numerous individual researches, and critically put together lately by Sombart in Braun's Archiv (19). That high- water mark in the development 17. Samuel Andrew: "Fifty Years' Cotton Trade" — paper read at the meetinpj of the British Association" (1887^, p. 4. David Chadwick: «' The Expenditure of Wages, 1839 and 1887" — paper read at the same meeting, gives the reckoning mentioned in detail. 18. Committee on Manufactures (1833), 10,547-86. 19. Braun : " Archiv fUr sociale (Jesetzgebang " (1891), part I, AND ON THE CONTINENT. 31 of cottage industry from handicraft, where the worker is still the owner of the means of production was long ago passed. In the years of the "thirties" the weavers were still mostly only hirers of the looms, or heavily in debt for them, and therefore at the beck and call and mercy of suffering employers (20). The reason of the cottage weavers' decline was not, in the first instance, the power-loom. As early as 1808 there was an exam- ination into the distress of the hand-weavers, and still there were in 1813 only 2,400 power-looms in Lancashire, as compared with 200,000 hand-looms (21). Much rather was it the marchiug of the cotton industry into the world's market that disturbed rela- tions depending upon monopoly or usage. Guest is certainly correct in his " History of the Cotton Manufacture " (at the con- clusion), when he ascribes the decline of the English cotton weaver to the tremendous yarn exports to the Continent, in con- junction with the cheaper prices of food thei-e. The Continental cottage weaver thus in this way forced the English worker even below the Continental standard of living. On average goods weavers in Bolton earned weekly (22) : — 1797-1804 1804-U 1811-18 1818-25 1825-32 The stuff m question was at that time not yet produced by the power-loom. It permitted, therefore, the chance of far more favourable remuneration than the production, for example, of printing calico. There were even wages as low as 2s. to 3s. weekly (23). According to^ Blue-pooks. potatoes and oatmeal were almost the sole nourishn!^^^^^e cottage weavers." A housekeeping 20. Committee on Handloom Weavers in 1835 (3,375). Often did the employers say to the weavers seeking work : "We have no work ; if we give any, it is for God's sake. We would rather let it be undone ; but if you take it, it must be at a shilling less." But the hungering weaver thinks: "One potato is better than none," etc. 21. Compare Committee on Petitions from Several Cotton Manufacturers (1808). 22. Compare Committee on Handloom Weavers of 1834 (432). 23. Committee on Manufactures (10.065, 11.750). Committee on Hand- loom Weavers of 1835 (1,130-59) refers to linen weavers. Lb. Lb. Wheat- Hour. Oatmeal. 26 8 = 100 or 142 20 = 79 115 14 7 = 60 79 8 9 = 48 64 G 4 = 38 ,, 48 32 THE COTTON TRADE IN ENGLAND budget (24) of a man in a proportionally better position, because he possessed his own hand-loom, given in a Blue-Book, shows, for a family of 4 persons, only half a pound of meat weekly (on Sundays); for the other days weaker nourishment. One is re- minded of the conditions, noted by Rechenberg and Schlieben, of the hand-weavers in the Lord High Constable's district of Zittau (25). Indeed Rechenberg's result may have acted in like manner for the weaving population of the North of England — that in many instances nothing at all would be left for the parents if the children had received as much to eat as was neces- sary for the formation of a healthy race. A wavering step, a hollow-cheeked countenance, are given by observers at that time as typical of the English workers in general (26). The average hours of labour were 14 to 16. The children began to weave when 9 years old, and that after they had already been winders (27). That under such circumstances the workers at that time wore not consumers of the industry, follows as a matter of course. What the Blue-Books contivin in this respect reminds us vividly of the accounts detailed by Herkner concerning German workers' budgets (28). Thus says that weaver whose relatively favourable budget we touched upon above : " As regards clothing, I do as I can. Some- times I have some, sometimes very little. I borrowed coat and waistcoat in order to appear before the Commission. I never bought furniture in my life. My wife is even as badly situated for clothing as I. Cooking-utensils I have never bought since I was born Cotton sacking filled with straw served as beds, and old tea-chests as chairs." (29). 24. Committee on Handloom Weavers of 1834 (7,256). " The weavers subsist on the coarsest food : oatmeal, water porridge, onion porridge, potatoes. The parents may drink weak tea, and very little sugar in it, and eat dry bread. But even of the coarsest food they have no sufficiencv. " Compare further, loc. cit., 1834 (7,643-57); further, the evidence of 'Richard Oastler, 1834 (3,736-54); similarly, Conmiittee on Manufactures (11,747). 25. Compare "Zeitschrift des kgl. Sachs. Stat Bureaus," Jahrg. 31, and Rechenberg : " Die Ernahriing der Handweber in der Amtshauptmannschaft Zittau" (Leipzig, 1890). 26. Compare Hermann Schulze: " Nationalokonomische Bilder aus Eng- lands Volksleben " (Jena. 1853), towards the end. 27. Committee on Manufactures (11,764); Committee on Handloom Weavers, 1834, the above-mentioned evidence of Oastler ; compare similarly, Rechenberg, p. 37. 28. Herkner : ' ' Die sociale Reform als Gebot des wirtschaf tlichen Fortschritts ** (Leipzig, 1890), p. 55. 29. Compare Conunittee on Manufactures (11,801, 11,863); Conunittee on Handloom Weavers of 1834 (4,972-80> AND ON THE CONTINENT, 33 It is extraordinary how long the cottage weavers, in spite of their distress, enjoyed the favour of many patrons. Thus, Sir Robert Peei has depicted them as loyal subjects, as opposed to the factory operatives. In fact, as the economical foundations of their existence were only tardily withdrawn from hereditary rule, so also the ideas accompanying them. But, under the pressure of high wheat prices and lowering wages, the inevitable revolution or change occurred hei'e also, after the war. Instead of feelings of dependency towards the authorities above them, appeared doubt and hatred — hatred against the State as well as the Church. Blue-Books accuse the cottagg weavers of disloyalty and atheism. Alreiidy, at the riots on the field of " Peterloo," in 1819, was tliis class numerously represented. They fell at that time into the hands of the Chartist leaders, and '• would have greeted every ui)heaval, because it could only bring them an improvement." (30). Similar conditions had just produce- able. Switzerland also appears to be the first to have arrived at the possession of fairly skilled factory laboiu*. Tlius Ure remarks that in Switzerland the population preferred, in many cases, factory labour to cottage industry, no easy, but so much the more an important alteration in the people's usages. Alsace also enjoyed advantages similar to those of Switzer- land. Here there were already in the " thirties," even if isolated, spinning mills which in number of spindles were equal to the English ; for examr le, Nageli's, in Mulhouse, with 80,000 spindles, and that of Schlumberger and Bourcart, at Guebweiler, with. 54,000 spindles. Notably was Alsace superior to England in chemical knowledge, and in design for printed muslins. It may certainly serve as a sign of industrial strength that the Societe Industrielle petitioned foi* the introduction of a Factory Act, and that the president of the Chamber of Commerce, Jean Dollfus, supported a reduction of the tariffs. In his evidence before the Commercial Inquiry of 1834, and in his answer to certain attacks on this evidence, in 1835, he declares, strengthened ^ 4. Compare Bein : " Die Industrie des Voigtlandes," pp. 121-33. One i» „ . Leipzig, to give np home spinnings and weave English yarns. But as earlv as 1797 an English compelled at once, by the appearance of English yarns in Leipzig, to give uj merchant put cotton goods also on the market at a reduction of 25 per cent o. Ure : " Cotton Manufacture," II. , 398. 6. Ure: "Cotton Manufacture," I., Intro., pp. 31-33; Committee on Manufactures (670). / AND ON THE CONTINENT. 37 by accurate reckonings of the costs of production, that coarse numbers could be spun in Alsace not only not dearer, but rather cheaper than in England. " It is cleai* that France, when every- thing is considered, possesses an advantage over England, which must increase in proportion as the duties on raw materials and machinery are reduced" (7). A,merica possessed another advantage — the cheapness of the raw material. This made it possible for that country to compete successfully with England in cotton goods, even in certain foreign markets, for instance, China, Chili, and Brazil. Thus, in 1834:, the imports of ^Vmerican calicoes into China amounted to 134,000 pieces, the English to only 75,000 (8) — a state of affairs wliich since then has altered very largely in favour of England. " The continents of Europe and America," says Ure in 1836, "possessed up to some time ago, after the peace of 1814, only fac- tories in such a small degree that they could by no means be viewed as competitors in the world's markets. To-day, however, they manipulate 750,000 bales of cotton, which is about three-fourths of our consumption, and they have become dangerous competitors in many markets which up to now belonged entirely to us." The economical worth of the facts quoted is nothing less than that the district of the earliest centralised industry had been attacked by international competition. This applies also with regard to countries of high protective duties, even to France, which maintained the importation prohibition against English cotton goods even after the Continental blockade. The economic- al importance of smuggling, which flourished at that time, must not be overlooked. It is certainly known that tremendous quan- " titles of English yarns went to the Continent during and after the Continental blockade. Whole industries have to attribute their present situation to smuggling. Thus Ure declares — and he should know — that the spinning mills of Reichenberg, on the frontier of Saxony, were nothing else. than establishments for reeling English yams, and that the spinning mills of Lombardy 7. Compare the description of the Alsatian industry by the expert, Ure C" Cotton Manufacture," Intro. , pp. 57-93). Compare alsoEngel : " Baumwoll- industrie im Konigreich Sachsen " (1851), p. 26. Further, Herkner: "Die ober-elsassische Baumwollindustrie " (Strassburg, 1887), pp. 71-115. 8. Ure, pp. 52-54. Committee on Manufactures (3,845). Compare, on the other hand, " Commercial Relations of the United States," No. 12 (Oct., 1881), p. 204. / 38 THE COTTON TRADE IN ENGLAND also had no other object than to mask the import of English yarns. The value of yarns smuggled yearly into France alone is given as 15 to 20 million francs (9). Of the importance of smuggling we find in Bein's " Industry of the Voigtland " a quantity of proofs (compare pp. 88 to 91). The commerce of the Voigtland suffered for instance, by long-continued rainy weather, because thereby the routes for smuggling into Russia were meuie impassable. International competition compelled England to cheapen the costs of production. This effort, as it had produced Centralised Industry, now drove this forward to further improvement. It was compelled to bear the consequences of its own existence. Even at that time also the egg-shells of decentralised industrial con- ditions clung to the oldest Centralised Industry — spinning. The brushing away ot these egg-shells is the history of English cotton- spinning, which develops the peculiarities of Centralised Industry In proportion as it has to contend for the premier position in the world's markets. Looked at from this standpoint, the tremend- ous mass of entangled Blue-Book reports are quite clear. The complaints of textile employers and the troubles of the workers are understood — the conditions of changing from half to fully cen- tralised industry. But clear also become therewith the social- revolutionary movements in the "thirties" and "forties." If, indeed, economical conditions are really the foundation of the social, the same conclusion harmonises for the latter : These social movements are the infantile sicknesses of Centralised Industry. We now ask what was the result of international competition — how did the striving after the cheapening of the costs of produc- tion first influence spinning? It caused at once a concentration of the industry in the neighbourhood of Manchester. That this development occurred under the pressure of the world's market is proved by the fact that formerly spinning was much less con- centrated than to-day. Spinning by means of rollers, ihe most important step to modem machinery, i.e., the arrangement for the mechanical drawing of rovings, which before this was 'ichieved by hand, was transferred by the metal preparation. Thus the first yam was spun " without hands " in the middle of the last century in Birmingham. The first large" factories were situated near Nottingham, and the merchants of Manchester sought to 9. Ure: " Cotton Manufactures," Intro., pp. 34, 36, 63. Report of the Silk Committee of 1832, p. 586. AND ON THE CONTINENT. 39 boycott them. Scotland, for a long time the home of Robert Owen, was originally, one of the chief seats of spinning. The cotton in- dustry was also pretty fairly extensive in Ireland at that time, although it has to-day disappeared (10). The demand for cheap production forced forward concentration. The advantages of this are, apparently, the avoidance of expen- sive repairing shops and reserve stocks of machinery pieces, which isolated mills cannot dispense with (11). Everywhere the com- plementary machine works settled in the central points of the cotton industry, in })roximity to the spinning-mills. Lancashire became, therefore, at the same time a chief centre of machine- making. Local concentration first made possible, as well, a class of workers highly and intelligently trained for the work. But certain natural advantages made the southern portion of Lancashire the earliest centre for Centralised Industry. Marching from here, this industry conquered England — even the world. In the North and East the district in question, smaller than Saxon Voigtland, is bounded by hills, which, towards Todinorden and Rochdale, attain considerable elevations, and are there divided by deep valleys. -Keeping back the dry East winds, they subject the West to downpours of rain. The land is little suited for agi'iculture ; therefore the population turned fairly early to cottage industry, especially woollen weaving. On all sides brooks and rivers hurry from these hills to the near sea. These streams provided the first driving power for the machinery springing up. But under the meadows, and easily accessible to men, lies that mineral whose presence allows the replacement of water-power by steam-power — coal. One of these water-courses — the Mersey — forms at its mouth, through the influence of the Atlantic tide, one of the best harbours in the world. As soon as the county possessed something for barter, a central point of the world's commerce could not help but spring up here, viz., Liverpool. But the county has to thank the proximity of the sea for something still more important — the damp sea-breezes which envelop the hills and produce rains. The degree of moisture of the air is, in fact, on those heights, only ten per cent, below complete satura- 10. Ure : " Cotton Manufacture," L, 287. Further, Baines, p. 219. 11. In these days also to dispense with special g^as plant, etc. Compare Jannasch : '• Dieeuroptlische BaumwoUindustrie " (Berlin, 1882), p. 25. 40 THE COTTON TRADE IN ENGLAND tion (1 2). This dampness was, later, to make it possible to spin cotton to such a fineness here as is impossible elsewhere, or only to be attained by large extra expense. How much this advant- age of climate comes into consideration is shown by the fact that spinning-mills more and more seek the declivities of those hills where the rains are the heaviest; thus, especially, Oldham instead of Manchester. This local concentration of the trade is one of the striking features of Centralised Industry. It strives after a condition in which every county, every country, })roduces that for which its natural essentials are most favourable, for an international division of labour. But since the industry, then, more or less dispersed, settles all over the whole counti*y, this wandering by the few unsuitably situated must be viewed in many cases as trade decline. Thus, for instance, is to be attributed the particularly strong complaints, found in the Blue-Books, of the Scotch spinners. In conjunction with the concentration just described, a similar one occurs within single mills. Leaving out of consideration a few tremendous exceptions, spinning mills had formerly a small number of spindles — often not above 1,000. They settled just where the necessary water-power existed. Tlie owners spun mostly on commission for the mei'chant, who delivered the cotton (13), and took the yarn, exactly as to-day small commis- sion s})inning-mills situated on the water-courses are still to be seen in the highlands of Saxony (14). The |)ressure of the world's market made such people at that time impossible in England. As opposed to them, larger mills sprang up (15) With the modern method of arranging a mill a double amount of capital makes it possible to produce more than double the quantity. Tlie costs of establishment, for instance, of a double number of spindles are not double ; and the cost of buildings, land, machinery, etc., is 12. Compare Edward Atkinson: '« Science Monthly" (New York, Jan., 1890). Americans reckon the advantage which Lancashire possesses on account of its climate at 7 per cent, of the cost of production on all fine counts. Compare *« Commercial Eelations of the United States " (23rd Sept, 1882), pp. 27-37, where are exact meteorological figures. 13. "Committee on Manufactures " (9,126). 14. Compare, concerning such small spinning-mills, " Government Enquets on Cotton and Linen Industry " (" Shorthaud Protocols,*' pp. 142-3). They have probably disappeared since then. 15. The reasons why the smaller spiuuing-mills everywhere succumbed to the larger have been already followed by E. Engel in his work, '* Die BaumwoUindustrie des Kouigreichs Sachsen " (1851). AND ON THE CONTINENT. 41 less (16). The same thing applies to a portion of the costs of running ; for instance, steam power, lighting, tending, etc. Entirely dependent upon steam power (16a), these great spinning- mills sought unrestrained the most favourable situation, especially the neighbourhood of similar mills. Thus arose those factory towns with workers solely trained for cotton manipulation. Side by side with the concentration of the industry, the striving after cheapening the costs of })roduction led to technical advance- ments in a more contracted sphere. These lay in various direc- tions. Experience taught the spinner to use raw materials to a greater extent than before; to spin equally good yarns from poorer cotton by improved pi"eparation machinery ; to lessen the loss during spinning, and to utilise the waste itself for lower qualities of yarn. In spite of this, the percentage of loss, com- pared with to-day, was still high in eveiy instance. But the most important developments lay in the replacement of labour by capital and in the increase of labour capacity. Both developments require one another so much that with regard to greater production it cannot be said how much is due to the one or* the other factor. Machines were originally small, and found occupation for a great many badly-paid and under- nourished workpeople, but who, on account of their great number, were expensive. But since the employers had to begin to defend the possession of the markets of the world, this pressure forced a con- tinual lengthening of machines. The number of spindles in single frames was increased, the speed of the spindles raised, the traverse of the mule lengthened. Here children were not suffi- | cient; grown-ui> workers were needed, who by means of an in- ^ creased standard of living had to be made capable of attending to the increased demands of machinery. In spite thereof, both developments allow themselves to be clearly separated into the development of technical matters and the consequential alteration of labour, Tlie necessity for cheapening the costs of production demanded an increase in the quantity produced. This was to be attained, in the case of spinning ma- 16. Compare Committee on Manufactures (9,166). Also Jannasch : *' Die europ. Baumwollindustrie " (Berlin, 1882), p. 21, according to which an engine of 100 h.p. costs only one quarter as much per horse-power as an engine of 10 h. p. 16a. Especially did the going over to the self-actor demand steam power Exclusive of preparation, according to Martin, a hand-mule spindle requires 0-004 and a self -actor spindle 00065 h.p. On the other hand, self-actors require more preparation machinery. -X 42 THE COTTON TRADE IN ENGLAND cliinery, in two ways. One was a larger production of the single spindle attained by a greater speed. At the same time the loss of time by ends breaking, etc., was lessened by improvements in the spinning-machine itself, and by improved carding and pre- paration, in spite of the greater speed. According to Ure and Kennedy, the capability of the spindle was tremendously raised in the very years with which we are at present concerned — with 40's yam from 2 hanks daily in 1820 to 2| up to 3 hanks in 1830 (17). As early as 1831: the daily pro- duction of the spindle was 3f to 4J hanks, of course with the most improved, but at that time still little-known machinery (18). Tliis latter increase was in consequence of the introduction of the Self-actor, invented by Koberts in 1830. Since the return traverse of the mule-carriage was achieved mechanically, the winding-on of the yarn spun took \Asuce concurrently, witli less danger of breakages and in a shorter time. Besides tliis, mechanical power, by its regularity and free- dom from fatigue, being superior to human power, built the cops firmer and better suited for the wciiver. Only when the weiiver received weft yarn spun on self-actors could an increase be considered in the hitherto low sj)eed of the loom. By the introduction of the self-actor the last demand on umscular strength disappeared, but certainly not, as was then thought, the adult / spinner, because the minding of the more and more complicated y^machines was not to be achieved with youthful helpers alone. f If by the introduction of the self-actor the production per single spindle was increased by 15 to 20 per cent., so also was the number of spindles per spinning frame increased. In 1779 the operatives smashed jennies containing more than 20 spindles. The water frames with which ArkwTight fomided the factory system do not show more than 8 spindles, in the illustrations given by Ure. The happy combination of both machines by Oi'ompton — the mule — had also not more than 20 to 30 spin- dles (19). At the period when Baines and Ure wrote, 400 to 600 spindles were the common length, whilst both, so early, described machines of 1,000 to 1,100 spindles (20). Side by side \sith the raising of the number of spindles occurred, not an increase, but rather a decrease of labour power. 17. Ellison : " Cotton Trade," p. 65. 18. Ure : Cotton Manufacture," 11. , pp. 194-203. 19. Compare Baines. p. 201. Ure : " Cotton Manufaf-ture," 1.. pp. 259-60. 20. Ure, 11, , p. 154. Baines, p. 202. Further, Ure: " Philosophy of Manufactures," p. 323 AND ON THE CONTINENT. J.3 The consequence of the development delineated was an extra- ordinary increase of production. Since the costs of working did not increase in the same ratio, they were spread over a greater produced quantity. Especially could a permanent reduction in piece^wages be introduced. The cost of labour for a defined quantity was continuously declining, owing to the advancing technical skill. Yam counts. Hanks spun per spindle per day. Cost of labour per lb. of yarn. Cost of similar labour in India. 40 .... 1812. 9 1830. 2-75 1812. s. d. 1 1836. F. d. 7i 1 7i 2 2i Unchanged. s. d. 3 4 80 .... 100 .... lo 1-4 2 '2 1-8 2 2 2 10 6 10^ 11 11 150 .... 1 1-33 G G 4 11 25 200 .... 0-75 0-90 IG 8 11 G 44 7 (21) What effect had tliis technical development on the worker? It is, in the first place, to be noted that in spite of continuous cheapening of work the weekly earnings of the worker went higher. This phase was hidden at first by the prices of food moving downwards. But it is certainly correct to measure the income of the worker, not only according to its face value, but also by its buying power in relation to the most important nourishing foods. Looked at in this light, there occurred also at that time, along with cheapening of labour, an increase in the earnings of tho worker — a development which belongs to the most marked peculiarities of centralised industrial progress. The elder Houldsworth gave the following interesting statistics, in this respect, before the Committee on Manufactures. Weekly i sroduct'n Time Total wages. Deduct Net Buying ] power of of the Spinner. worked. for earnings these net earnings. Lb. of Hours. helpers. of In lb. In lb. Counts. yarn. Spinner. Flour. Meat. R d. s. d. «. d. 1804.... 180 12 74 to 80 60 27 6 32 G 117 62^ 200 9 ,. G7 G 31 i 36 G 124 73 1814.... 180 18 74 72 27 6 I 44 6 175 67 «i .... 200 13^ ,, 90 30 60 239 90 1833.... 180 22* GO 54 8 21 33 8 210 67 " •••• 200 19' )) 65 3 22 6 42 9 (22) 267 85 (23) 21. Baines, p. 353. Ure : " Cotton Manufacture." II. , 425. 22. These wages are applicable for fine counts. The average wage of the mule-spinner in Manchester at this time amounted to 27s. Ure: "Cotton Manufacture, " II. , p. 444. 23. Prices reckoned according to the invoices of the Chetham Hospital, Manchester 44 THE COTTON TRADE IN ENGLAND The high counts of yarn mentioned here were, at that time, as yet scarcely spun on the Continent of Europe, because it did not possess the needful skilled workers for them. Tliey were spun, outside of England, only by Indian hand-spinners, whose dexterity up to then had been the wonder of Europe. These finest Indian muslins were termed "woven ^vind"; they were extraordinarily expensive, because counts of yam up to 210's were not seldom in them. But although the Indian female spinner of those fine yarns, up to then imattained on the newer Continent, received 9d. per week, the English spinner, there- fore, earning 40 to 50 times as much, the latter nevertheless destroyed the ancient industrial art still existing at this time, which (paradoxical enough) succumbed to dear labour, to labour which, as the table on page 43 shows, was about four times as dear as in England (24). But a similar process developed also within England, in that the place where the industry progressed most strongly was where jjiecework wages were certainly lower, but, on the other hand, the weekly earnings and standard of living of the spinner was the highest. Thus at that time Manchester raised itself above Glasgow, which, notwithstanding considerably loweh weekly wages, paid higher piecework wages (25). It is every^vhere a fact capable of proof that with Centralised Industrial development a continuous decline of piecework wages is jiccompanied with a continuous increase in the income of the worker. Upon what does this result depend ? In order to under- stiind it, we must grasp it as a continuation of that old-time development which once raised labour from slavery to freedom. The fettered or slave worker, who acomplishes labour by external l)ressure, is chained to the minimum of life; the master does not, as a matter of course, spend more than is absolutely necessary for maintaining and perpetuating labour. It has to be viewed as a permanent factor, that it was economical progress which emancipated the worker. Only the most primitive tools can be put into the hands of slaves (26). Economical progress de- 24. Compare Ure: " Cotton Manufacture," L. p. 45. Compare also the work quoted by Roscher, I., par. 40 : "La main d'ceuvre est chere en Russie." 25. Committee on Manufactures (5,339), and Baines, p. 440. 2B. Thus slaves in America could not be trusted with horses, but only with mules. Compare Roscher: "System," I., par. 71. Agricultural exhaustion of land can only be pennanently connected with slavery. Compare Baines •' Slave Power " (London, 1863) ; and Mackenzie Wallace : " Russia," where a similar state is reported in America and Russia. AND ON THE CONTINENT. 45 mands an increasing interest of the worker in his labour, with the object of impro^dng and raising his capacity for work, and these are only possible on the foundation of freedom. Thus the free craftsman is evolved from the serfish industrial workers, originally in the interest of the master ; and the town from the feudal establishment of the Middle Ages (27). But more especi- ally clear, because only belonging to the last and present century, is this development in the sphere of agricultm-e. The necessity of more thorough cultivation compels the introduction of the free labourer, whose work, though apparently dearer, is still cheaper, on account of its extraordinarily greater capacity (28). In the hand-toil of the Middle Ages, trade labour had reached freedom early, and afforded not only an agreeable existence^ but also honour and position in society. But the foundation of this position was insecure ; it depended upon monopoly and law enact- ments. It vanished with the flourishing of the world's market and international competition. Cheapening of the costs of production was now the innermost principle of trading. Hand-work was therewith succeeded by Centralised Industry, the oldest form of which was (^cottage in- dustry, whose full attainment first created the modern factory system.) But the worker sank exceedingly quickly from his former height, under the pressure of the new world-market. His law of life was again the minimum standard of living, beyond which he had already appeared to have raised himself for good mth the abandonment of slavery. The time for labour, limited by custom or law, in summer (including the stoppage for dinner) 12 hours, in winter until the commencement of darkness, was again lengthened to the bounds of possibility. 27. The same thing is to be seen, again, in Russia, where the serf was allowed to engage himself in another's trade service, and only a payment was reserved ; in fact, he was freed with the exception of the payment. — Oprockbauern. 28. Compare, for instance, what Roscher(par. 71) says is the experience on the Bernstorff estates. The experiences of Von Miinchausen have a similar tendency. This personage, along with Bernstorff, was one of the first to demand the emancipation of the serfs from the point of view of economical progress. Compare Munchausen: "Detailed Particulars of the Cessation of Serfdom on the Estate Steinburg " (Leipzig, 1801). Further instances, for Russia, are given by Roscher (par. 71, note 6). A free mower mows as much as two or three serfs ; an estate horse accomplishes as much as three to four peasants' horses ; with free workers instead of serfs rye produces 8J instead of 3, barley 9_i instead of 4, oats 8 instead of 2| standards. All are analogies of the development to be depicted here. / 46 THE COTTON TRADE IN ENGLAND This development, in the ca«e of England, has to be followed up most minutely. Up to our century the standard of living for the worker stood authoritatively defined — ^the degree of labour as well as of remuneration. I f he earned sufficient with three days' work to live six days in the ordinary manner, he did not work the other three. Therefore the merchants of Manchester told A. Young that they preferred high to low food prices ; for nothing but the first compelled the worker to labour. Tliis customary foundation of existence fell with the appear- ance of the modern trade system. Broken-down farmers and cottage workers, workhouse cliildren, discharged soldiers — in short, the poorest of the poor — were placed at the newly-invented machines. It is known that the workers a})|)lied themselves to factory labour only through the uttermost necessity. The iron discipline and regularity of this labour itself appeared worse than the imtraramelled misery of cottage workers. Only by the lowest wages were those elements to be forced to regular work. Tliis deterioration occurred so much the more without opposition because those first workers of Centralised Industry were thus first drawn from customary conditions, wh^ereas, on the other hand, their employers had already completely realised the modem man. Certainly the power of that first generation of English large em- ployers consisted entirely in carrying out the principle of economy, regardless of anything. TTie proposition : Satisfy thy wants ^vith the smallest possible expense, produce at the lowest cost, was of so much value to them that the choir of national economists accompanying the drama declared it to be the ever- lasting law of human life. The "white slaves" which the modem factory system Isas produced have been spoken of. This is more than a saying. Because, in spit« of outward differences, the position of those factory proletarians certainly resembles inwardly that of slaves, in that they seem in a hopeless manner to be forced to the mini- mum standard of living, and that every interest of the worker in his work is lacking. Contemporary observers have therefrom derived the immobile wage-law. They had, as we see to-day, / only that stage of trade before their eyes which belongs to the r^l change from scattered to centralised industry, and has only ex- tended itself where that change was retarded. On the other hand. Centralised Industry, which is no longer a monopoly com- pared with a declining industry, requires, as we shall see more AND ON THE CONTINENT. 47 in detail further on, for the pui-pose of cheapening production, a gradual raising of labour similar to that which formerly led from serfdom to freedom. That factory proletarian, whose posi- tion brings to mind serfdom, is put on one side by the Central- ised Industry growing up. This follows, as a matter of fact, because the first low-standing factory labour certainly did not work cheaply. As later, every- , where where the factory system was introduced, one had at that time to struggle in England with the irregulai'ity of labour. A | ^j^ reliable authority informs us that at the turn of the century it 1 was impossible to keep the spinners at regular work. "Frequently they spent two or three days per week in idleness and drinking, and made the children who worked under them wait for them in the alehouses until they decided to go to their work. When they went to it, they would often work quite desperately, day and night, in order to pay off their public-house score and to earn more money for ' sprees ' " (29). This description reminds us of that which Blue-Books to-day inform us about Indian spinning- mills — large centralised establishments with the latest ma- chinery. In spite of all discipline it cannot here be avoided that the workers work irregularly, and stop to eat and rest themselves > in between. One is therefore compelled to keep such a large number of workers that those who work can take the places of those who do not. It is allowed, under this arrangement, that the men go out and smoke during working hours, the women suckle their children, workers often remain away for weeks in order to do agricultural work at their homes, and so on, As compensa- tion, there are no long stoppages during which the engine stands, no free Sundays, or only one per month in order to clean the engine, and the working day is from 12 to 14 hours (30). Also in Lancashire — to-day the country of the highest working capacity — a similar condition existed at that time. How little machinery had up to then entered into the people's consciousness is shown by the keeping aloof, by the often inimical position, of most writers, compared with whom Ure emphatically took the more progressive standpoint. Thus a well-known physician of Manchester complains at that time about the lot of the operative 29. Ure: "Cotton Manufacture," II. , p. 448. 30. "East India Factories" (10th Feb., 1891), pp. 23, 27, 45, etc. Com- pare, further: Proceedings of the Manchester Chamber of Commerce — " Bombay and Lancashire " (1888), p. 57. 48 THE COTTON TRADE IN ENGLAND — " Whilst the engine runs the people must work. Men, women, and children are yoked together with iron and steam. The animal machine — breakable in the best case, subject to a thou- sand sources of suffering, changeable every moment — is chained fast to the iron machine, which knows no suffering and no weari- nevss." (31) It is noteworthy how here the machine, as such, is accuse^l of inhumanity ; the almost mathematical precision which it requires from the worker is pictured as unendurable tyranny. In all the labour movements of the first ten years of the century the hatred of the masses turned against machinery. But gra^lually a change came — a change by reason of economic- al progress. It was in the "thirties" that, on the field of the oldest Centralised Industry, international competition marche<^l for the first time. If England would conquer it mu.st lower the costs of production. How was this possible? No longer by press- ing down the worker, because these were already reduced to the minimum of life's wants. The only means for economical victory lay, therefore, in technical improvement, as also in the lessening / of the number of workers employed in comparison with the / work accomplished. Both led to continuous lowering of piece- [^ work prices, which was decisive in the battle of competition, and, on the other hand, raised the weekly earnings of the individual I worker. Similarly, as one could not put better tools in the hands of slaves, neither were the increasingly complicated and more valuable machines to be trusted to miserable factory proletarians. / In order to increase the speed of the spindle, to raise the number ' of spindles to be tended, and to lessen the number of operatives per spinning mill, a worker with a higher standard of living was necessary. Thus the unmeasured services of the serfs ' became measured, and from the latter came freedom, from the trade working slave the free craftsman, from the sen^ant of the master the journeyman of the Guild ; the servant rose, but the master had more than before. In the same manner, also, the economical need raised the worker of Centralised Industry. This developm.ent on the part of the worker appears to have been followed by a psychological chang e similar to _that which had produced the modern employer. Whilst the man of the Middle Ages was born to his standard of living, his wants authoritatively defined^ 31. Dr. Kflv : •< On the Moral and Physical Conditions of the Working Classes " (Rtancbester, p. 24). Similarly : Gohre : •' Drei Monate Fabrik- arbeiter " (Leipzig, 1891). I AND ON THE CONTINENT. 49 a state of affairs which has survived for a longer period in the lower stages of society — the modern man now also grows up in the worker of centralised industry. Just as the enterprising spirit of the employer pervades the whole world, "insatiable" from the standpoint of a former condition of society, in the case of the worker the limits to economical attainment also disappear. Hja Yrnntpi, up tn now limited by cu stom, encom pass the whole achievements of culture. That which he earns over and above" what his bare ^existence costs he adds to his standard of living. In order to satisfy his increased demands, he increases his labour capacity. In this way he succumbs at last to the "l aw of the greatest_D Ossible profit, " which first pervaded the merchant, then the trade employer, and had produced the modem regime. The best worker of the world at present is the one with the highest needs, just as the cotton worker in Lowell and Fall River excels, earhaps, all his fellows in labour capacity, but also in his wants 1(32)7 It is true that this development in the " thirties " in England was only in its infancy. That, however, the later type of worker was also just beginning to be evolved is proved by occasional particulars in the Blue-Books. He comes upon the scene as the mule- spinner of Lancashire. Thus, for instance, attention is drawn to the evidence of a certain Edwin Rose, who in the "twenties" or "thirties" was occupied for some time in a spinning mill at Mulhouse (33). In this town at least double the quantity of hands were necesaary compared with Lancashire. Labour was therefore dearer, in spite of lower wages. In Mul- house there were, for low counts, mostly 3 persons per 200 ends ; in England per 600 to 800. It is true, according to Ure, that 32; Compare Pidgeon: *' Journal of the Society of Arts" (Jan. 1885). Miss H. Martineau had already described, in her " Mind among the Spindles," the high and well-regulated standard of living of the old race of labour in Massachusetts. Compare, on the other hand, the following story lately related to me. The proprietor of one of the largest and finest weaving-sheds in Germany wished lately to persuade the best of his weavers to mind three looms instead of two, as formerly. But as this arrangement met with opposi- tion from the workers, he sent for one of them in order to inquire into the cause of the opposition. On being made aware that the new arrangement meant an increased weekly wage, the weaver answered : He and his wife earned 28s. per week ; he did not wish to exert himself for more ; more money .meant a "spree more." That man stood, in the field of the customary standard of living, as opposed to that girl in Lancashire who to-day minds four, and that in Massachusetts who to-day minds six looms. — 33. Factory Committee: Keport (1833), Part I., D. I., 121; also Mr. Cowell: Supplementary Report (1834), 119. Compare also Koscher: " Nationalokonomie," I., par. 40, and the therein quoted particulars of Mohl. Further, Senior: '* Outlines" (London, 1863% 142. E 50 THE COTTON TRADE IN ENGLAND especially in Alsace, at that time the number of spindlesJn the single frame appear to have risen quickly ; notwithstanding which the production remained less than in Lancashire. The daily production per 800 spindles of No. 40's yam in England was 661b., in France 481b. From the evidence of numerous employers, given before the Examining Committee quoted, as well as before that on Artisans and Machinery, it appears that the master- spinners examined already looked upon the possession of better labour as their chief strength against Continental competition. " A spinner in England does twice a4S much as a Frenchman. The latter gets up at four o'clock and worka until 10 o'clock at night. But onr spinner does in 6 hours what he does in ten." f^ith the same tendency we have also the utterances of workers, as, for instance, that in spite of shortened working hours the labour had become far more taxing than formerly; it was com- plained that some operatives were seized by a dangerous ambition to accomplish more than is fit for human nature (84-). The same witness from Stockport reports that these workers, however, also developed wants unknown up to then. For instance, instead »)f going to the public-house they took to books and attended schools — all at that time still quite exceptional circumstances. Possibly this applied only to a town where, as in Stockport, the second generation was already spinning, and wherein numerous workhouse children had been introduced to factory labour. For nothing urges fonvard the development of the modern man as much as forced or willing transplantation to other fields (35). A new type of man entered at that time into existence in Lancashire — the industrial worker, born and educated for the machine. He is the latest result of the modern method of working, and determines its condition for some generations ahead. But even then he is only developed under favourable conditions, as in the most advanced great industries, before all others of England and America, and still the economical power-position of a nation is dependent in an increasing degree on his possession. As the man of the future, he does not find his equal in the past. It is not bodily power which distinguishes him, for the movements 34. Committee on Manufactures (10,552). 35. We are reminded here of colonists, who generally develop themselves more quickly than their former countrymen: also of how new-arising in- dustries everywhere require foreign workers. How long the later increase of factory labour was fed from the poorhouses is proved by the Committee on Manufactures (11,412). AND ON THE CONTINENT. 51 requiring strength are accomplished by the machine. He re- s (3mbles not , the labour virtuoso of -the- so-called manufacture (division of labour without mechanical power) which, Jbj reason of extensive division of labour, requires few hand-touches for perfection. Tools now accomplish these touches more perfectly — tools which attack more and more the field of so- called " mechanical " work. Freeing the man therewith from the . ^7 ' tie of the constantly developing division of labour, the perfect machine simply requires watching. With increasing size and speed, ^vith their augmenting productive power and complication, there is, on the other hand, a continuously increasing brain - attention deman ded from the operative — an understanding of the therein embodied thoughtsof technicality. The man attending it should be a son of the century of natural science. The modern method of production also tends towards the contraction of similar or increased labour capacity to a shorter time ; it is cheaper to exhaust the working power in nine than in eleven hours. The modern operative, as produced by the American and English Centralised Industry, is the extreme opposite of that handworker who, by reason of a real or legal position of monopoly, " makes his customers wait." This development has been, without doubt, hurried forward in X^ England by social moments, especially by the contraction of ^v children's work and the shortening of the hours of labour which the Factory Acts caused. The workpeople's combinations, andc. their struggles with the employers, are also to be taken into account. For instance, it is undoubtedly correct that the Self- actor, invented by Roberts in 1830, was designed as a weapon against the spinner, and first came into general use in consequence of strikes (36). Looked at from this point of view, the social movements of that time, those of the philanthropic Tories, as well as the workmen striving to raise themselves, first attain the foundation of economical necessity. Both have done their quota to urge forward technical development. This consciousness is expressed unusually early in the "Edinburgh Review" of July, 1835. "If from the discovery of the Spinning Frame up to the 36. Ure:" Philosophy of Manufactures," 367. Ure : "Cotton Manu- 1. factnre," II., 194. Committee on Manufactures (5,621, 5,421). On the other hand, the so-called " cheap labour "(i.e. labour feeble, incapable of exertion) held full sway on Saxon spinning up to the "sixties " with the ancient system of hand-mule. Compare Martin, ' ' Der wirtschaftliche Aufschwung der Baum- wollspinnerei im Kiinigreich Sachsen," Sraoller's " Jahrbuch fiir Gesetzgebung, " Band xvii., Heft 3, pp. 12, 13 52 THE COTTON TRADE IN ENGLAND present," it is there written, " wages had remained at a level, and workers' coalitions and strikes had remained unknown, we can without exaggeration assert that the industry would not have made half the progress." But economical development has still been the chief factor, in that it has first called Centralised In- dustry and machinery in general into existence. So it was also, side by side with social moments at that time, the pressure of the world's markets which in England led to technical advance- yV-jnent, and, therewith, to the uplifting of labour (37). ^ What has been said shows English cotton spinning in a peculiar condition of changa The lawful and real possibility of competi- tion had evolved the existence of machinery, but this alone could only develop the tendencies existing in it to the extent that, with the entrance into being of international competition, the English spinner ceased to demand monopoly prices. It is in general the trading history of the 19th century which is here represented within a microscosm. All characteristic delineations of modem Centralised Industry present themselves in the tenets: Con- centration of Capital, geographically as well as technically; Replacement of Raw Material and Labour by Capital ; Increase of Labour-capacity ; Upliftment of the Position of the Operative. Far less developed were the conditions of cotton weaving, which had just taken the first steps towards centralisation. Up to now the manufacturers had bought yams spun by the machine, and given them out to the cottage weavers. In the first years after the invention of spinning machinery, which allowed the English spinners to have monopoly prices simply at the expense of their Continental customers, the* business of English weavers of necessity flourished. At that time a tre- mendous influx of men occurred in the hand-weaving industry, the wages in which up to the turn of the century were splendid. The so-called manufacture developed itself at thfct time side by side with the real cottage weaving. Capitalists built special weaving shops in order to find work therein for about 20 to 30 hand-weavers, whilst the preparation work was accom- plished by children and old people in the same house. Every- where in Lancashire, but especially in Bolton, one sees even to-day these now desolate weaving shops. 37. Compare, on the other hand, concerning the Continental indvistry, Committee on Manufactures (11,378, 11,382, 11,387, etc.). AND ON THE CONTINENT. 58 All this changed with the end of the war and the beginning of international competition. The change was not merely a direct transition to the power-loom, but employers of hand weavers with plenty of capital built spinning mills, and spinners became at the same time employers of hand weavers. Especially was the latter often the case, because the in- creasingly unstable payments of the small manufacturers led the spinners to give out the yarns themselves. These were the persons who at that time drew large profits from the so-called elasticity of the cottage industry, and who, according to the state of trade, sold the yarns or got them woven. The richest in capital amongst them began gradually to build, in addition to their spinning mills, sheds for power-looms (38). The first owners of power-looms meide, like the first spinners, tremendous profits; as power weaving mills became general, prices as well as profits rapidly declined. On a piece of calico, for instance, 28 in. wide, 5jlb. weight, ordinary quality, there was in 1829 still a sum of 5s. for the cost of production and profit, in 1833 only 3s. (39). Only after 1820 did the power-loom make more important progress. But in spite of this there were still in 1830 only about 50,000 to 80,000 (40) power-looms, against 250,000 hand-looms. With the power-loom, also, the replacement of labour by the machine developed much more slowly than in spinning. As long as the sizing of the warp had to be accomplished by hand during the weaving the application of the power-loom was scarcely an advantage. An alteration was for the first time effected by the invention of sizing and dressing machines. From that time weaving could go on without a break, and one weaver could mind two looms. It does not appear that more looms were anywhere at that time tended by one weaver. The increase of production by the power-loom was also not very important. 38. Ure : " Cotton Manufacture," II. , p. 430. Committee on Manu- factures (9,161, 9,280). 39. Committee on Manufactures (9,171-95) 40. According to Porter, 50,500; according to Ellison, 80,000 in the year 1829, and about 100,000 as early as 1833. Compare Baines, p. 236, where he gives the above number for hand-looms. Compare Committee on Manu- factures r9,449) ; Committee on Handloom Weavers, 1834 and 1835 (371-4). The total number of all hand-weavers is given as one million. 54 THE COTTON TRADE IN ENGLAND In the year 1823 two power-looms produced weekly seven, in the year 1826 twelve pieces of shirtings, of which a hand weaver in the same time could produce but two (41) Moreover the power-loom was at that time only used for the smaller portion of all woven materials — for com- mon and plain gwds. In 1822 a patent wa« first granted to Roberts for a power-loom with six shafts, in order to produce twill-like articles ; and in the whole following y^ decade experiments were being constantly made on arrangements for raising and lowering several shafts, with the object of pro- ducing the most simple patterns with the power-loom (42). That an advance in this branch wiis slower certainly was not on account of the greats- difficulty of the technical i)roblems to be overcome, but that in this branch the jn-essure of the world's market^ and the necessity for invention, were not felt so soon. ' In Blue-Books we find, accordingly, nearly all manufacturers of the opinion that the hand-loom could never be supplanted by the power-loom; but rather that with the increase of Englisli com- ioerce the nmnber of the cottage weavers must pernuuieutly incrciise, as was in reality up to then the case (43). And yet the Frenchman, Jacquard, had as early as 1812 invented the arrange- ment called after his name, which, in connection with the power- loom, was to make it possible to produce even the most intricate art designs by mechanical means. At that time the production of such goods required a great (juantity of labom* — the so-called reader, who, according to the pattern, read aloud the figured points ; and another worker, who, according to these instructions, connected the couplings to which the shafts hung with the hooks requiring to be drawn ; and then, besides tlie weaver, the draw- boy, who during the weaving looked after the raising of the thus coupled shafts (44) ; also here, therefore, by the newer inventions an extraordinary replacement of Labour by Capital took place. A jieculiar similarity with the conditions just pictured is shown by the commercial organisation of the cotton industry at that time. Just as modern Centralised Industry developed itself side 41. Baines, 239-40. 42. Ure : *' Cotton Manufacture," 11., 306. 43. For instance : Committee on Manufactures (11,092, 1,212): "Hand- loom weavers increase and must increase " ; further, 1,198, 9,434. 44. Ure: "Cotton Manufacture," II., 281-7. Karmarsch: '* Techno- logie," 973-5. AND ON THE CONTINENT. 55 by side with spiiming, the raw-material market was already the most advanced product-market of the world, with which the technicalities of the modem world's commerce were perfected. It enjoyed already in the "thu'ties" a division of labom* developed in the highest degree. As, however, on the other hand, weaving, being in closer proximity to the consumers, was technically still behind, so was it also with the mediating conmiercial element between manufacturers and consumers. The reasons for these results are also similar. As Centralised Industiy in weaving retjuired first that of spinning, so the whole cotton industiy required the cotton mai'ket. Tlie investment of large sums in centralised industries was not possible until the investors were certain of the regular delivery of the raw material, and an organised market already lessened the dangers of extreme variations of price. But the possibility of such a market was produced because purely commercial, calculating pooplo came here into contact with one another. It was otherwise with the relation to the ccn&umer. As long as the English factory owner, as the rejiresentative of the oldest centralised industry, found himself in a sort of position of monopoly as compai*ed with his customers, the formation of a highly developed organisation for sale was not necessary. This api)eared in proportion as these advantages dis- api)eared, and it was solely economical superiority which assured to the English industiy its market for sale. To the following of every industry, from the buying of the raw material to the sale of tlie finished article, there are connected a great many dangers of the most variable kind — dangers which, however, allow themselves to be extraordinarily diminished by an intimate practical knowledge of the controlling conditions. Hence division of labour, wherever it is possible, in such a manner that, for every risk which demands control of one of the groups of ceii:aintie8 contained within it a special organ is created. Now this was already in a high degi*ee the case in the " thirties " in the cotton market. Here, on the one hand, stood the im})orting merchant with his office in Liverpool. His task was to make himself conversant with the American market — a risk of such greatness, with the difficult traffic and communication conditions of the time, that he at first even imported the cotton, not at his own risk, but on commission for account of the Americans against cash on account. But already in the first half of the centuiy came, in place of the importing commission house, the real 66 THE COTTON TRADE IN ENGLAND importer, who imported the cotton at his own risk. To deal with him existed the inland merchant, mostly with his office in Man- chester, who generally sold the cotton to the spinners, giving long credit. His task was to watch over the influencing industrial conditions — for instance, the demand to be expected, the paying capabilities of the 8j)inners, etc., etc. The more complicated the influencing conditions became the less were importer and merchant in a position to deal direct with one another — such would have needed also a knowledge of each other's business. Hence the formation of two mediums, the buying and the selling broker, €>ach of which attended only to the interests of his own customers. Tlie relation of these different classes of commercial life rested upon a code of unwritten laws. No importer could, as Ellison (45) assures us, attempt to deal direct with the buying agent; this latter would have refeiTed him to the selling agent. Just as little could the buying agent contract direct witli tlio importer. Tlie impoi-ters, like the merchants, generally had one or more brokers, through whom they permanently transacted their business. Whilst thus, as regards the raw material, an already extreme di\4sion of labour had arisen, it was absolutely wanting as regards the selling of the finished article. Tliere was still wanting that, at the present day, important person, the export merchant, who relieves the manufacturers from a knowledge of foreign markets, of the paying capacity of foreign and home buyers, etc. The manufacture still dealt direct with the home retailer or the foreign importer, the commercial traveller and the agent being the mediums. The manufacturer searched for the home customer by com- mercial travellers. Richard Cobden was one of these in his youth. Similarly was the Continent of Europe attended to (46). At the most important places of the mainland the English manufacturer sold as well by agents on the spot. The trade with India, China, and East India was conducted otherwise. This trade, on account of the great distances and slow connections of that time, was extremely risky. Originally the captain freighted his ship on his own account, so far as the trade was not by reason of privileges in the hands of officials. 45. «' Cotton Trade," p. 273 46. Committee on Manufactures (2,148). AND ON THE CONTINENT. 57 East India was only thrown open in 1815 (47). In the " twenties" and "thirties" this adventurous navigator disappeared. The manufacturer shipped the balance of his production at his own risk. The merchant who acted for him was in fact only a commission merchant, who attended to tlie shipping and gejierally advanced half the value of the shipment (48). When the goods arrived they were sold by native or English commission houses, or put up by auction. In the best case the English manufacturer could expect payment in 18 or 19 months after the departure of the goods. This came either in the form of return freight^ — indigo, coffee, tea, etc. — or in bills of exchange, often of a questionable nature. In this way nineteen-twentieths of the colonial trade was transacted, alongside of which shipments to order played but a slight part. We find, therefore, as i-egards the selling, the manufacturer saddled almost alone with all risks. Instead of strictly confining himself to the inner development of his manufactory, he was obliged to take into consideration the political and economical variations of the whole world, especially the rate of exchange on India^ at that time already very fluctuating. The home market, in the last century the most prominent, was still always of larger importance. Home Market. Export in Cotton Goods. 176G ^379,241 £220,759 according to Postlethwayt. 1819-21 £13,044,000 £15,740,000 1 „,,^ n. „ . p,,,. ^„ 1829-31 £13,331,000 £181074,000 } according to Elhson. We notice how the export interest at the beginning of the " thirties " predominated. On this basis was founded the position taken up by the manufacturers of Lancashire against the Corn Laws. This movement must here not be lost sight of; firstly, because it was the result of the centralised industrial development, as soon as the export interest was uppermost; then, because its success sealed the character of the English cotton industry as an export industry. The enormous increase in the export of cotton goods in the following decades was one basis of the further development of the centralised industrial form of production and the commercial organisation corresponding to it, the details of which we deal with below. 47. Compare Committee on Manufactures (2,066, 2,120) on the conditions which led to the withdrawal of the privileges of the East India Company. 48. Committee on Manufactures (2,117, 2,155). 58 THE COTTON TRADE IN ENGLAND The Anti-Com-Liiw League was a capitiilist movement, emanat- ing from the cotton manufacturers and the Manchester Chamber of Commerce, after a forward movement by the London tradesmen in 1820 had remained without success. At its head stood the spinner and weaver, John Bright, and the calico-printer, Richard Cobden. llie large sums which were used for the agitation — nearly £500,000, including the princely rewai'd of Cobden for his services — are iilone a proof of the capitalistic character of the movement. Tlie immediate factor of the movement was the depression in trade from 1839 to 1843. In 1842 ten per cent, of all cotton mills stood idle part of the time (49). The manu- facturers, so says Cobden distinctly, had invested a portion of their capital in the movement in order to save the remainder (50). The working classes, up to then the most earnest opponents of the Corn-Liiws, turned their backs to the movement as soon as it had got into the hands of the employers. Again and again they disi)erserices, fiicilita- tion of imports, and making exports more difficult. Further consequences must be the lowering of the rate of interest and the flowing away of cash reserves. In the stores of the precious metals of the world, such a level ling-up would follow of itself. 49. Compare "Ash worth, Cobden, and the League "(London, 1876), p. 34. 50. Compare " Ashworth, Cobden, and the League," pp 3.9,72-75,112. AND ON THE CONTINENT. 69 As a matter of fact experience teaches that such a relation can really happen, but still not beyond reasonable bounds. A few millions in cash taken from or added to the stores of precious metals of a country accomplish of themselves alone a raising or lowering of the rate of interest which is sufficient to lead to the opposite result^ and theremth cause an equality. Generally the money market is of itself very sensitive to the increase and decrease of amounts which do not come into consideration in comparison with the gigantic sums of international exchange of goods. The whole of the precious metal of a nation, including that used for ornamental and industrial purposes, would not be suificient to pay, even for only one year, for the imports. Thus, for instance, in 1880 the whole stores of precious metals in England were computed at 140 million pounds, whilst the imports amounted to over 400 millions. Looking from this point of view the cotton manufacturers of Lancashire asserted that it was immaterial whether the exports of their yarns and goods were placed under an export duty or the imports of the goods received in exchange were subjected to an import duty. As England satisfied its own industrial wants, the great mass of imports could only consist of nature's products; the dearer, and thcs&e natural products forming a luxury, are, how- ever, only bought when the longing for food is stilled ; therefore wheat was the most important exchange article of foreign and non-industrial nations for the English cotton and other industrial productions. Wisdom also demands that one should let in the chief exchange mediums of agricultural nations free of duty if one would not lead too early to the introduction of an industrial system (51). That ti'ade interests predominated is shown already in Cobden's first sentence in which he touches the question. The repeal of the Corn-Laws was the means to return to the battle in the world's market, under more favourable conditions to defeat the competi- tion everywhere newly arisen. "To stem the import of com into an industrial countrj'- is nothing less than to kill the living nerves of its foreign trade" (52). Industry has to bear the 51. Committee on Manufactures 52. Compare Richard Cobden : " Political Writings "fLondon, 1867), vol. L , 143, 288. Gladstone, in a debate on the 23rd March. 1842, expressed pregnantly the point of view under notice: "The import of 50,000 cattle leads to an import trade to the value of half a million. It therefore leads to an export trade of a similar amount, which makes increased industry and labour neces- sary." Similarly also, Ure " Philosophy of Manufactures," p. 448. 60 THE COTTON TRADE IN ENGLAND tremendous calls of the State debt caused by the war, and the taxes for the defence of the country as well as tlie colonies. That husbandry in the future will be more capable to bear these ever- increasing public burdens was beyond eveiy possibility ; therefore industry was to be strengthened in the common interest of the country. rThe further point of view, that free imports, and therewith cheapening of foodstuffs, must lessen the production costs of the industry, is less seldom mentioned, perhaps because many manu- facturers were short-sighted enough to introduce this advantage in the unpopulai* form of reduction of wages. But that it was \tliought about is shown by the writings of Ure and Cobden (53). Ure lingers repeatedly on the advantage which the Continent possesses in the greater cheapness of foodstuffs. In January, 1836, the average price of wheat per tiuarter in Hamburg, Amsterdam, Antweq>, and Stettin had been £1 Ss. Id., against which in London it was £2 4s. 6d. A similar relation existed between England and North America. But even Ure does not arrive at a correct understanding regarding the influence of the prices of foodstuffs in the production costs of the industry. His gaze rests in the first instance on the possibility of reduction in wages. If in England the amount of wages just reached sufficient to guarantee the worker a scanty existence, this wage could not be permanently reduced. But where for the wages paid far more could be bought than was really necessary, there was created the possibility of a reduction in wages. Thus were the lower wages on the Continent explained by the cheapness in the prices of food. The manufacturers of Lancashire were certainly correct when they considered that cheap food meant also cheap labour ; they were, however, mistaken in confounding cheap labour with lower wages. Cheap labour, like low wages, is only in that beginning stage of centralised industrial development in which the worker accomplishes no more than is necessary for satisfying the scantiest needs of life. If the latter become cheap, there is therewith, indeed, the possibility given of reducing wages, and this is the only way to cheapen labour. It is otherwise where the modem worker develops himself from that extensive factory- proletarianism. The English manufacturers certainly knew already 53. Compare R Cobden : " Political Writings," L , p. 286. Ure : '* Cotton Manufacture," I., Intro., pp. 18, 36, 47, 56. AND ON THE CONTINENT. 61 quite well, that their mule-spinner worked cheaper, although he was perhaps the only worker in England who at that time, jneasm'ed in foodstuffs, received a higher wage than the worker on the Continent. For this modern worker cheapening of food causes at the same time a rise of wages, the latter, however, being added to the standai-d of living. The more nourishing food, especially the going over to wheat and meat nourishment which was the lot of the English worker after the repeal of the Corn- Laws, has certainly caused more than anything else the produc- tion of that high capacity for labour, the real " skilled labour,"' which to-day fonns the strength of England in international competition. Up to the repeal of tlie Corn Laws English wages, at all events in money value, but not, which is the real factor, in purchase value of foodstuffs, had been higher than those on the Continent (54). In conclusion, Ure draws attention to the fact that the anta- gonistical feeling between employer and employed, which injured the competitive capacity of England so much, was due in a great degree to the Com Laws. Blue-Books, indeed, prove, by the printed evidence of the workers, how much the Com Laws seemed to them as "a law for the rich," which had for its purpose the keeping down of the workers in their needy position — an irre- movable source of liatred against the Government and society (55). The manufacturers were also not wrong in thinking that the abolition of the duties would secure more peaceful relations between capital and labour. Tliis did not happen, however, in the manner which they pictured to themselves, for the Chartists banished this hope at once by opposing the League. But by the repeal of the Com Laws a stage of industrial development was prepared which made those political-revolutionary classes repre- sentatives of the past. Cottage-industrial and decaying hand- workers, along with that earliest, hopeless factory proletariat evolved by Centralised Industry, had been their foundation. While the path of centralised industrial development was opened by 54. Thev amounted, according to Ure, on the average to about one-third more than the Continental, just as the prices of food were just so much higher. 55. Compare Committee on Manufactures (10,614) : *' They think it (repeal of duties) would cause a complete revolution in wages and profits ; it would cause an unbounded extension of manufactures." Further, 10,618, 10,622, 10,627, li,08l 62 THE COTTON TRADE IN ENGLAND the victory of Cobden, it also aided not only economical but also social progress. The worker of Centralised Industry, as he was now formed, grew out of the political-revolutionaiy movement, which had been nothing more than a sign of extreme weakness. In consequence of technical development, and by reason of increased labour capacity, this worker rose in existing society to a middle-class position. The victory of the League was the expression that bourgeoisie society, economically the highest in the State, had achieved this position politically also. The previous transition stage is noted thereby that the leader of landed-proprietorship. Sir Robert Peel, was himself the offspring of one of the oldest manufacturing families of Lancashire. On the other hand, it is not to be lost sight of that the manner in which the victory took expression, that of the autonomous duty repeals in place of the use of the Ccrn Laws to bo given uji, to get compensations from other nations, depended solely upon the commercial-poHtical constella- tion of that time. It was hoped that the other nritions of Europe Avoiild of themselves follow with low«.*ring of toriflfs. Then appeared at that time those enormous markets of the East for the cotton induistry, India and Cliina, which were ruled politically or commercial-politically, and with which that point of view of compensation did not come into question. AND ON THE CONTINENT. 63 CHAPTER III. The Present Position of the English Cotton Industry Com- pared WITH its Position in the ''Thirties" and with the Present Position of the German Cotton Industry. (1) In the half-century that has elapsed since the " thirties " l:ngland has become "the workshop of the world." "WTiere there is no English commerce there is no commerce at all " — is the report of the American Secretary of State (2). A number of centralised English industries have succeeded in obtaining possession of the neutral markets of the world ; English exports have quadrupled and quintupled themselves since the " forties." The cotton industry progressed beyond all others, its exports exceeding those of the iron trade by about three times (3). We indicate at the outset the progress and the present position by statistics : — Spindles. Power-looms. Hand-looms. 1831 10,000,000 80,000 220,000 1856 28,000,000 298,847 some thousands 1885 45,000,000 560,955 some hundreds (4.) About a third of the total exports of England falls to the lot of the cotton industry, and a not much smaller proportion of the English people live on the foodstuffs which are exchanged for 1. Where no sources are given in the following particulars they may be taken as originating from studies on the spot, and are, from their very nature, sufficiently authoritative, 2. "Commercial Relations of the United States," No. 12 (Oct. , 1881), p. 71 . 3. 1887 : Exports of cotton yarns and goods, £70,959,766 ; of iron and steel, raw and finished, £24,992,314 ; total exports of home productions, £221,414,186. 4. These figures approximatelv agree with those given bv Samuel Andrew, in » Fifty Years' Cotton Trade." they are taken for 1856 and 1885 from official statistics; for 1831 from Ellison: " Cotton Trade. " The number of spindles were averaged, because Ellison, by reason of commercial directories, declares the official figures far too small. He estimates the number of spindles in 1885 to be already 48 millions. Compare Ellison, p. 327-8, These statistics are confirmed by Elijah Helm, " Economic Journal" II, 737; according to him there were in 1891 in Great Britain 44,750,000 spinning spindles ; in addition, according to the Statistical Abstract, nearly 4,000,000 doubling spindles, besides the spindles not in operation, which, according to Ellison, are a few millions. 64 THE COTTON TRADE IN ENGLAND cotton goods. The English cotton industry, besides being the oldest, is also in many ways to-day the centralised industry wliich shows up most typically the peculiarities of the modem method of production in an economical as well as social aspect. But still it has only to be accepted as a link of a people's economy depending upon centralised industry and world barter. As the flourishing cotton industry, before everything else, founded the trading dominion and capital power of England, so at present does it receive the harvest of the highly-developed economical life encircling it. We are thinking, firstly, in tliis connection, of the trade organisations of Manchester and Liverpool, of the development of English machine-making, etc. The pressure of the world's market was the motive element It compelled a continuous cheapening of cotton goods. Witli it a permanent lowering of the production costs became the leading motive of the whole development. This is shown by the following figures : — Jan., 1779. 1830. 1860. 1882. 1892. Frice per lb. of 40's yarn 16/- "?t Hi lOi 7i Price of cotton, 18 oz 2/- ^ H H Difference in price 14/- 6f 4| 3f 2} And ?o with finer counts: a pound of No. lOO's, which in 1830 still cost 3s. 4jd., was in January, 1892, sold up to 16Jd. In tlie years 1880-85, which were by no means bad ones for spinners, the difference between cotton and yarn per pound amounted on an average to only 3j^d., whilst in the "thirties" double the amount (for instance, 1830, for 40's, 6jd.) was looked upon as unprofitable (5). Similarly with weaving, even though the com- parison between the price of yarn and that of cloth is more difficult on account of the heavy and variable weighting of many goods with foreign matter, and on numerous other grounds. In any case one cannot be far wrong if the lowering of the costs of production is taken as at least one-half. The possibility of this cheapening lies herein, that under the pressure of the world's market (competition) those tenets of a centralised industry before mentioned have been meanwhile fully developed. 5. Compare Ellison : «' Cotton Trade," pp. 61, 310. AND ON THE CONTINENT. 65 1. — Arranyement and Division of Labour in the Industry, Marshall, in one portion of his last work, points to the connec- tion ])etween national economy and natural science. Tlie latter has borrowed from national economical writers the representation of the struggle for existence; but to-day it pays back the debt by enriching national economy with its teaching of organic development. Marshall thinks, apparently, in this respect, about the development-teaching of Herbert Spencer, which allows lappy analogies to be applied to the social and economical side. Every development consists, according to this view, in the first instance in the formation of single centres for development by the collection of matter; it is in the first degree a history of increasing dimensions and accumulating positiveness, as compared with the surroimding state: Integration. Bcfrides this, it is a histoi'y of gro\ving inner vaiiation. The homogeneous sti'uctm-e gives way to the improvement of pai-ts, which develop themselves independently in an increasing degree and ever undertake more varied functions. But in proportion as the parts become different from one another their mutual dependence increases. Tlie one cannot exist without the other; a change of the part alters the whole ; a disturliance of the jiart disturbs the whole: Differentia- tion. Tliis is applicable to physiological as well as social occurrences. Thus the development progresses from the minute living form of the lowest class to the powerful phase of the higher animal world ; from the protoplast, which is very little different from its surroundings, to definite wholes, complete of themselves, and sharply define^l from their surroundings. Whilst in the lower stages of development the inner structure is homogeneous, an increasingvariationof the parts is ever formed ; in place of similar- shaped cellular formations appear complicated organisms. Originally every part performs all functions ; thus the original particle performs the functions of nourishment and perpetuation at the same time. Later on there is developed for every function a special organ. Therewith the mutual dependency of the parts upon one another increases ; for instance, of the heart upon the nerve system, and of the whole upon the parts. Those lower stages of life can be separated at will ; they still live on. The mutilation of one of the organs of the higher organism is detri- mental to all the other organs, indeed can kill the whole organism (6): 6. Compare, for this, Herbert Spencer : " First Principles " and " Principles of Biology," part I. F (56 THE COTTON TRADE IN ENGLAND Economical development is also principally a history of enlarg- ing dimensions and increasing separation from the surround- ings. Firstly, small works are spread over the whole country; as against these stand the modem gigantic mills, which localise themselves geographically. Tliere is also here the same increaf>ing division of labour. Whilst originally all trades are joined together in one works — the self-providing farm, the ancient municipality of the past — the farming interest separates itself from the textile industrj-, this from the preparation of metals, etc. But therewith in- creases the mutual dependency of the single works. The original isolated establishment can be sei)arated without disadvantage from its like ; the establishment founded on division of labour and exchange, if torn from its connection with the whole, perishes or falls back to the former basis of existence. The same thing applies if we take only one trade into con- sideration — say the textile industry. Originally its inner structure is uniform ; ever\' one of the small establishments produces the raw materials, manipulates them, and uses them. Also where barter later appears, the small trader is producer and merchant concurrently. As against this stands modern industry, in which all these functions are separated — the production and the consumption, the technical and the commercial element. A special market is formed for the raw materials, a special one for the articles produced, and both markets are separated from the manufactory. All three links are joined by connecting ones. Also in the manufacturing process there is progressive division of labour: it is cheaper to produce 1,000 of A than 500 of A and 500 of B. But here, also, with progressive di^^sion of labour there is an increasing dependency of the single establishments upon one another. A disturbance of the raw-material market exercises its damaging influence on the manufacturing and selling : while sale stagnations are inimical to the two preceding links. The industry becomes more and more a complete organisation, made up by a number of isolated organisations dispersed over the whole country, but remaining similar to one another — a complete organism, which is formed out of different kinds of units, geographically concentrated, depending upon one another. No industry is more fitting to confirm these principles of Herbert Spencer than the English cotton industry. AND ON THE CONTINENT. 67 In this respect the concentration of the industry and therewith the developing division of laboiu* is most striking. Lancashire, or rather the southerly portion of the county, not 25 English square miles in extent, becomes the sole seat of this world- industry, which was originally by no means so arranged (7). The once not unimportant Irish industry has ceased; Scotland, which at one time entered into competition with Lancashire, has been confined to some specialties. The population of England has increased threefold since the beginning of the century, that of Lancashire sixfold ; some of the single industrial towns — Oldham, for instance — twenty-fold (8). As Lancashire to-day is the seat of the industiy, Liverpool is the world's market for cotton, Manchester that for yarns and woven goods. But, closely allied ^vith the local bringing together of the industry, we have the concentration of the single mills. Accord- ing to olHcial sources these were on the average in Eng- land (8a) : — In 1850, per mill 10,858 spindles. ,, 1885, ,, 15,227 „ „ 1856, ,, 155 power-looms. „ 1885, , 213 But these figures do not nearly represent the real conditions. Remote mills scarcely coming into consideration for the industry are included, as well as such as still combine weaving and spinning. If we only bring those mills into consideration which solely spin or weave, there were already in 1878, per mill, 24,738 spindles and 305 power-looms (9). But much more do these figures increase if we consider the real seats of the industry. According to a personal communication from Mr. Sam. Andrew, the Master-Spinners' Secretary at Oldham, the average number of spindles in his district amounts to from 60,000 to 65,000 ; for the " limited " concerns, so early as the middle of the " eighties,'' to 65,342. There are in this district spinning mills up to 185,000 spindles. I am also indebted to a personal communica- 7. Compare Baines, pp. 19 and 238. 8. Compare "Co-operative Wholesale Annual" (1884), p. 106; do. (1887), p. 332. 8a. These statistics are based upon figures which do not distinguish between spinning and weaving mills, because the official census of 1850 was so arranged. The number of spindles per spinning mill is, of course, greater, 9. Ellison : " Cotton Trade," p. 72. Q G8 THE COTTON TRADE IN ENGLAND tion from Mr. Rawlinson, Secretary of the WeaA'ing Association of Nortli Lancashire, for the following information. According to liim the average number of power-looms per weaving-shed is 600; the highest nimiber in one building, 2,200 ; those belonging to one firm, 4,500. The lowest number is 110 to 130, because with such mills tlie employer requires only one overlooker, whom he would have to pay if even less looms were at work. There is an exception in Burnley — a weaving-shed with GO looms ; in this instance, however, the employer was formerly an operative, and is his own overlooker. One circumstance is to be noted here which has helped forward the concentration of the mills: the extension of the "limited ' principle. It appears especially advantageous for spinning con- cerns whose working is uniform and whose market is continuous. At the present time limited concerns have the upper liand in spinning. In Oldliamjiffire than 80 per c ent, of t he w^hole spindles belong to limited companies.^ It li'generally acknow- ledged that this developmentr^diich lias o ccurred si nce the "seventies," has led to an extraordinary accumulation of capital. Tlius the best authority on the English cotton industry, Mr. S. Andrew, said before the Royal Commission on Depression of Trade : — " The limited principle has brought many benefits to the country. It came into existence with us at a time when tlie lowering of production costs in the cotton industry was a question of life or death. Private firms at the time did not quite keep pace with the requirements of the time : limited concerns arose and undertook the lead, which they have never yet lost since that time." In another portion he mentions how the very great accumulation of capital secured the acquisition of the most im])roved technical arrangements by those companies (10). The limited principle seems to be less suitable for weaving-mills, because these demand adaptations to fashion and market varia- tions, especially those weaving-mills making fancy goods for the European markets. In the latter branch an employer following 10. Compare also Ellison : " Cotton Trade," p. 136 ; further, " Co-operative Wholesale Annual " (1884), which, on page 174, contains a list of the limited spinning-mills at work in Oldham at that time, along with the number of spindles. A similar list is published periodically by the Oldham Sharebrokers' Association, which, in addition to the number of spindles, gives also the market value of the shares, the amount paid per share, nominal value and number of shares, as well as the last dividend, etc. AND ON THE CONTINENT. 09 the iiiarket, and with a taste for art, is to be desired (11). Ou the other hand the regularity of Oriental conditions grants to the greater portion of the cotton-weaving mills of Lancashire the advantage of a similar regular staple industry. If European taste changes according to months and seasons, that of the Hindoo changes only after hundreds, even thousands of years. It is therefore correctly stated in Liincashire that the demand from India year by year for certain cotton stuffs is as sure as that the English nation requires every year a certain quantity of wheat. In the weaving branch the limited principle is, by reason cf the causes mentioned, less extended, and is certainly confined to the staple industry for the Eastern markets. Still, according to Mr. Ilawlinson's communication, about 10 per cent, of the weav- ing-mills of his district are also limited concerns. Tlio value of this concentration of the industry is best under- stood if one takes into account the division of labour made possible by it. The latter, first developed in the " thirties " for the raw-cotton market, has since then taken hold of the whole cotton trade — the manipulation as well as the market for yarns and woven goods. We will follow the cotton on its way from the importer to the export merchant. The cotton market in Liverpool, highly de- veloped as early as the "thirties," has entered since then under the influence of modern traffic facilities — i.e., the application of steam power to transport. In the continual development that has necessarily followed it has been an example in general for the technicalities of the world's commerce (12). The first of these occurrences was the opening of the railway from Manchester to Liverpool. Up to this time the spinner chiefly bought from the dealer in Manchester, either from his warehouse or according to samples provided. From this time Liverpool and Manchester became practically one city. The spinner could go just as easily to the broker in Liverpool as to the dealer in Manchester, and choose there and then on the spot 11. Herein consists, for instance, the strength of certain German industries. Not only the director, but also his wife, are here often personally engaged in designing patterns, often of remarkable beauty, as, for instance, in many export goods of the Saxon Voigtland. 12. Compare, for instance, Fuchs: " The Organisation of Liverpool Cotton Commerce" (" Schmoller's Annual," 14th year, part 1.), and the second portion of Ellison's " Cotton Trade," which is devoted to the cotton market. 70 THE COTTON TRADE IN -ENGLAND what he wanted. At the same time the paying capabilities of the spinners had increased sufficiently to dispense with the giving of credit on the part of the dealer. Since that time, therefore, the spinners began to buy direct from the brokers in Liverpool ; the old dealer gradually disappeared altogether. An event of far greater importance was the laying of the transatlantic cable (1866) and the consequent improvement of a network of telegraph wires encircling the whole world. Liverpool had now approached nearer to the American Continent than it had been before this time to the neighbouring city of Manchester. Therewith disappeared the necessity of a special class of business people, whose particular forte had been the knowledp:e of the raw-material market. In a similar direction tended the opening of the Suez Canal and the extension of Indian railwjiys. Tlic brokers themselves partly became importers, the importers partly sold without consideration of the brokers, and there followed a blending of both classes. This development reached its climax, after heated contentions between the Cotton Brokers' AsBociation and the Liverpool Cotten Exchange (formed by the importers in opposition), by the formation of the Liverpool Cotton Association, consisting of both classes (1881). Therewith the old difference was in reality banished, even though the older merchant firms, backed up strongly by capital, frequently sold through brokers, in opposition to those younger firms which werj r,t the same time brokers and merchants. As modern technical skill only puts aside the hand-worker understanding a particular work, so it puts aside also the merchant controlling only one closed market ; it unites the markets. There are, therefore, only the inij^orter and the spinner, and, between both, the buying broker left remaining as different types. Tlic buying broker so far justifies his existence that he is superioi' to the spinner — a non-commercial man, even to-day — in his knowledge of the market. Tlie existence of the broker makes it possible for the millowuer to concentrate his filtentioi» on the progress within his factory, and to ti'ouble himself as little as possible about commercial conditions. But the relation between spimier and broker had so far changed to the disadvantage of the spinner that the class which up to now had kept the buying brokers within bounds had disappeared. As long as the selling broker existed In the opposite interest, the separation was strictly kei)t intaci, whoreby the AND ON THE CONTINENT. 71 selling brukers solely represented the mlorests of tlio importer, and the buying brokers those of the spinner, by tlie separate class restraint which the business world regulates jnore than any other. The latter had thus the sei'vices of a class of people whose interests wei'e identical with his own, and who repre- sented only the buyer's side. With the merging of the selling brokers and importers into one class nothing hindered the buying brokers any longer from selling the cotton on their own account, or at the same time transacting business as selling brokers for importers. Instead of buying as cheap as possible, their interest was now veiy often in selling as dear'as possible. Some means were therefore necessary to force back the broker to the interests of the spinners. This was only possible by a section of the spinners banding together, and by means of paid export serv^ants regulating the transactions of the broker. This was achieved by the formation of the Cotton Buying Co., a limited company originally consisting of 20 to 30 limited cotton-si»inning concerns (13). Its object is to buy cottoji in the Liverpool market, for which the members have to pay the ordinary broker's charges ; the balance above the expenditure is divided at the end of the year in the shape of a dividend. This company encountered at the beginning the most violent opposi- tion of the brokers. It only succeeded in holding up its head by a clever application of the antagonism — not yet vanished — between the brokers and importers, by the new company com- bining with the latter against the broker. The company has since then made its way on the Liverpool market under the direction of Samuel Andrew — whom we have several times mentioned — secretary of the large Master Spinners' Association of Oldham. If it only includes a minority of the total number of spindles of Lancashire, it has certainly compelled the brokers to attend to the interests of the spinners more than before — in the same way that the Co-operative Societies forced down the extreme profits of the retail shopkeepers. The possibility also of an extension of the operations of the Buying Company to America already influences similarly the importers. Corresponding to the development delineated, the burdens laid on the price of cotton by the Liverpool market have become less and less since 13. For this development, which Ellison and Fuchs did not describe, com- pare the business reports of the said company (12, Clegg-street, Oldham), and " Co-operative Wholesale Annual " (1883), p. 183. 72 THE COTTON TRADE IN ENGLAND the " thirties." At that time cotton, even when the old merchant had disappeared, was still made dearer by 3 J per cent. ; 2 J per cent, went to the importer and J per cent, to each of the two brokers. To-day Liverpool demands only 1 to H per cent, for the importer and ^ per cent, for the buying broker (It)— not too high a payment for the advantages which the Liverpool market secm^s to English spinners. If the market, when compared with the "thirties," shows a simplification of the commercial routine, this is due to the lessening of the risks by the influence of modern improvements in communication, which brought the countries of the world nea.i\3r together. But as well ;is the traffic there was a second moment which lessened the dangers of business ; the progressing improvement of commercial life itself, especially the introduction of business in "futures." This weakened, as Ellison distinctly ])oints out, the risk of imports so much, that a section of import merchants existing solely for this purpose, and standing in con- nection with the market only through the broker, became unnecessary. In the next place it is certain that the flourishing of business in futures neutralised the too violent fluctuations since the "sixties." Human intelligence is successful in an increasing degree in foreseeing want and abundance, and by means of speculative transactions compensating for their influences (15). Therewith a formerly unknown equality of prices was .attained for the most important raw materials of human use, especially, next to wheat, for cotton. But independently of this, business in futures helps the importer directly, as an assurance against risk. If he buys cotton at a favourable price in the producing land he can immediately sell in Liverpool the same qiiantity for the date at whic^h the cotton, as far as can be seen, will really arrive; by a further fall in cotton prices and loss on the real business he can then recoup himself by the speculative protit on futures; by the rising of prices he can balance the speculative loss by the profit on the real goods. He is placed in the same position as if prices since the transaction of business had not- changed. Thus, side by side with the development of communication, the progressive development of commerce led to a simplifying U. Compare Ellison, p. 2S0. 15. Compare Sonndorfer : " Technik des Welthandels," p. 14. AND ON THE CONTINENT. 7S of that division of labour shown by the " thirties." On the other hand, this development called new organisations of commerce into being. Yirat, in this respect, comes the founding of the "Cotton Clearing-house," in 1876, whereby the clearing system was applied for the first time to trade in products; then the formation of the "Settlement Association" in 1882, with the object of making certain, by periodical balancing of the parties, the final {payments of the dift'erences in " future " transactions ; lastly the formation of the " Cotton Bank," for facilitating the method of payment. Without going further into these institu- tions, it is sufficient here to point to the fact that since the "thirties" the structural features of the already (at that time) many-linked cotton market have become to-day still more com- plicated. The result of this development wa« a regulation of extreme price variations and cheapening of the raw material for the cotton industry. This far-extending linking of the market has been followed by a similar linking within the industry, whereof in the " thirties,' even, scarcely a trace was to be seen. In the first place, weaving and spinning have separated themselves. Only firms which date from the older period couple both together ; new mills are devottyi either to the one or the other trade, and are arranged under ilio most favourable conditions for it. Herewith there comes at once the advantage of not needing any longer managers who are expert in both branches. Therewith weaving has also separated itself locally from spinning : whilst the latter clings to circles nearer Manchester, weaving describes a semicircle further north. Tlie one seeks the declivities of the hills, with the level ground beyond, the other the valleys cutting through the hilly country. But division of labour has advanced further. Oldham is the chief seat of the great staple industry which produces the medium counts of yarn. ITiere alone revolve 11 millions of spindles. The district of Oldham extends to Ashton, Middleton, and ihe factory places situated to the south of Manchester. Bolton, Chorley, and Preston, which border on the central point of com- merce in the North, spin, on tlie other hand, fine counts, which, owing to climatic advantages, form a monopoly for England. Tlie chief mass of weaving-mills seek the towns situated to the north of these, especially Blackburn and Burnley, in front of them, and extending to Todmorden and Rochdale. Burnley makes ordinary printings; Blackburn clothes India and China 74 THE COTTON TRADE IN ENGLAND (so-called dliooties and T-clotlis) ; Prestou produces tiuer plaiu calicoes for tli© home and Continental markets, llio factory places lying nearer to Manchester, and the tirst customers for spinning, have mostly their specialty in more complicated woven goods. Thus Oldham has cotton velvets, Bolton figured goods, Ashton and Glossop printing cloths cf the tiist quality, the district of Colne, situated between these and the northern weaving dis- trict, makes ordinary coloured goods. On the other hand, in Manchester, the central point of the industry, manufacturing is gradually disappearing. Tlie mills there are mostly of an elder date, but are still of historical interest as former cradles of the great industry. Manchester is constantly becoming more and more simply the seat of the export trade. Thirty years ago goods were packed in the northerly weaving districts for export. xVt the present time this takes place in Manchester — in many cases in the cellars underneatli the high warehouses, which often go down several stories into the earth, and in which, by means of steam engines and hydraulic presses, the bales of yarn and woven goods are pressed into half their bulk, and even less. The continually increasing value of the land (16) drives the industry away from the city of com- merce. But the environs of Manchester are also abandoned by the industry. It is generally admitted as the reason that only in places which are quite exclusively devoted to the industry are working populations, highly trained and thoroughly to be de- pended upon, to be found (17). How important is the existence of these exclusively industrial localities, which, situated in the neighbourhood of the centre of commerce, combine the advantages of centralisation with those of decentralisation, is confirmed by Marsden (18). "It can easily be demonstrated that it would be more profitable to plant a mill in a locality possessing skilled labour and in proximity to the markets, paying full prices for buildings and machinery, than it 16. Compare " Auswanderung der Industrie nach dem flachen Lande " (Jannasch: " Europaische Bauiuwollindiistrie.'' 11 and 12). There is. how- ever, by no means a decentralisation in Lancashire, but rather an organisation of the industry round its central point 17. Compare J. 0. Fielden: "Sketch of the British Cotton Industries" (" Co-operatiTe Wholesale Annual," 1887). p. 330. 18. Marsden: •• Cotton Spinning" (Loudon, 1888), p. 60. AND ON THE CONTINENT. 75 would be to accept one of the same capacity as a free and untrammelled gift, but located in a place not possessing these advantages." The division of labour which exists between the industrial places extends to the single mills. One employer produces at the present time few specialties. Tlie large spinning- mills of Oldham and Bolton spin, for instance, not more than one count, or at most but a few counts, and these from year to year. In the sivme way many weaving-mills of North Lancashire produce only one sort of current staple goods (19). This far-reaching division of labour is only made possible by the certainty of sale which is guaranteed by the organisation of commerce in Manchester. This also has made the principles of centralisation and division of labom* useful in a high degree. ITie most important in this respect is, that the millowner does not himself go to customers, but the wholesale merchant or exporter acts between both. We have above followed cotton up to its buying by the spinner through the broker. A highly-developed railway and canal net- work assists the traffic from the market of the raw material to the centres of production. Whilst the older spinning-mills are almost always situated on canals, and the cotton is raised from the boat to the immediate neighbourhood of the mixing-room, the newer spinning-mills are more and more dependent upon railway com- munication, often being connected by railway sidings with the main line. The opening of the Ship Canal now being constructed will mean a further facilitation of traffic. Alreiidy at this time one sees those tremendous docks excavated in the neighbourhood of Manchester which only now require connection with the sea in order to receive here, in the middle of the seat of industiy, its raw materials direct from the producing land. (19a.) A ten-years agitation in speeches and writings — carried on by employers as well as employed — preceded this colossal undertaking. It was authorised on the 30th July, 1885, with aquisition rights, along with which, as a condition, the authority of Parliament had fixed 10. Compare " Protokolle der Reichsenquete fiir die Baumwoll und Leiuen- industrie." p. 380. Eighty thousand English spindles have spun, since the commencement of the "sixties," the same two counts — ;>2's twist, 40'8 weft — an example of many. 19a. Now in full operation. 76 THE COTTON TRADE IN ENGLAND a maximum-rate tai'itt'. Accordiiig to this, tlic carriage fruiii Liveiijooi to Oldham, up to now just as dear as from Bombay to Liverpool, will be cheapened at least by one-third (20). Since the spimier mostly buys the raw cotton for cash or on short credit (21) it is to his interest to sell the yarn in the shortest time. Tlierefore the time during which the cotton is in the mill is always limited to a short span — even to only a few days. In the same way, as little cotton as possible is to be kept on stock. The English spiimer generally goes every eight days to Liverpool (22) in order to buy there his weekly wants, just as he once on private sources ; as far PiS the infonnation given by W. Rieger (Stuttgart, 1893) goes, concerning the 25. Compare Andrew : ' ' Fifty Years' Cotton Trade," p. 7. 26. "Commercial Relations of the United States," No. 12 (Oct., 1881), p. 102. 27. Report " Stat. Ermittelungen," Heft II. , pp. 4 and 5. AND ON THE CONTINENT. 79 number of spindles nnd looms on cotton in Germany — ol* 877 firms only 748 have given peiliculars — ^th© following figures are ai)plicable: — Cotton Spindles. Cotton Looms. District. Average Average Total. perBpiniiine Mill. Total. per Weaving Mill. Alsace and Lorraine 1,187,738 28,280 27,110 467 Baden 402,088 19,148 11,966 307 Wurttemturg and Hohenzollern 490,492 19,980 11,865 237 Saxony 741,246 16.450 19,403 185 Silesia 74,600 6,782 5,630 268 Rhine Province and Westphalia 1,052,048 13,663 24,987 209 Remainder of North Germany 265,032 26,503 7,619 169 Rhine Palatinate 98,570 19,714 1,628 203 Bavaria 1,075,735 44,822 19,745 420 Totals (27a) 5,396,549 20,756 129,983 264 The total number is rather too little (27b) the average number rather too high, several firms, and prolmbly the smaller one>s have furnished no particulai's (27e). German Stat© statistics for 1882 show a, further extension of small industrial concerns in th© textile branch, although here a direct comparison with English figures is imposible. It is stated that per spinning ©stiiblishment there are not more than 10 }iersons. This statement must only, however, be taken along with the consideration that amongst these spinning mills cottage industrial concerns which reel, as w^ell as establislimeaits engaged in manufacturing wadding and candle-wicks, are included. On the other hand, there are in England, according to Mr. Drage, secretary of the Ijiabour Commission, at the present time no special mills for reeling, as formerly 20 years ago. These operations are performed either in the spinning mill before the yarn is sold, or in the weaving mill after it is bought (27d). 27a. The 600,000 German spindles spinning Vigogne yarns, also cotton, are not included. 27b. A great difficulty in giving a comparison with the English figures is the circumstance — which wrecks nearly all international comparisons statistically — that in England the single mills are counted, whereas in Germany, only the firms. It is certain that many firms have several mills, and therefore the aver- age number of spindles and looms per firm must be greater than per mill. 27c. I myself, as well as the author, from personal observation, have little confidence in these figures. (Translator.) 27d. Concerning these statistical difficulties compare my contribution in Schraoller's " Jahrbuch fur Gesetzgebung u.s.w.," 1893, pp. 1,224 to 1,226. 80 THE COTTON TRADE IN ENGLAND 111 a much greater degree than spinning does weaving hear a cottage industrial character. But since first cr.tton, then woollen, then half- woollen goods are prwluced on the sacie looms, special figures conceining cotton weaving are scarcely possible in this direction. In the whole German textile industry there were in 1882 still 42 per cent, of the oj)eratives occupied in small mills (mills with under 5 j)ersons), and 38 }ier cent, in large mills (over 50 persons). The relation between cottage iinlustiy and factory work in the three most important branches of the textile industry are given in the following table: — Employed, without further ore n pat ion. Preparation of spinning materials, spinning. . 103,7.')0 .. 28,391 Weaving 171,00.'. .. 178,060 Needlework, knitting, and lace .. .. 23,077 .. 08,248 Totals 2n7,')22 .. 274.G01) Losch (28) renijuks, concerning these figures, that the total proro cotton mnrket at Bremen. Tlio same came into exist- ence by reason of an agi*eement between the associations of German spinning niill proprietors and Bremen importers in 1886. Although ib was recognised that the Bremen cotton market possessed splendid regulations for the business in futm-es, also that classification ond arbitration could be depended upon and were impartial, four lepresentfitives of the German cotton spinners were placed upon the cotton market committee. German spinners have therewith understood how to curtail the dangers of conjuncture losses to the slightest degree. Tlie development of this Bremen market is so much the more hopeful when we consider that to-day almost 1 2 million spindles belong to its natural ten*itory, viz., the German, Swiss, Austrian, Polish, and (partly) Belgian mills. The disadvantages of division are not slighter with respect to the mill itself. Whilst in England the spinner and weaver in many cases only produce one or two specialties, the German em- ployer has himdreds of patterns. Therefore he is compelled to frequently alter his machines and to accustom his workmen to new work, which not only means less total production and more 29. Compare Report of the " Enquetekommission," p. 22; '< Protokolle," pp. 3G, 286, and others. :*0. Concerning the disadvantages of buying in the producing country, *' Protokolle," p. 1558. Concerning the position of the Liverpool market to the Continental markets, compare Jannasch, p. GO. a 82 THE COTTON TRADE IN ENGLAND working costs, but also greater wear and tear (31). Add to this that in Germany the combining of spinning with weaving in the same business — cleaiiy only because the difficulties of selling occur in this case but once — pays the best, exactly as reported by the English Commission in the " thirties " ; to-day, however, the organisation of the market in England makes possible that tech- nical separation between weaving and spinning which is preferable (32). Lastly, without concentration highly capable labour is im- possible, because such demands as an essential the sole employ- ment of a population for generations in the same industry. Further, only in the seat of a concentrated industry is labour also with certainty to be met with, whilst German manufacturers often on this ground also must work on at a loss, in order that the laboriously taught labour may not vanish from their grasp, of which instances are supplied from Alsace and other places (33). Especially must South German spinning-mills, mostly situated in isolated places, always attract afresh workers from other branches. Scarcely in working trim, they often leave the mill again in order to go back to agricultural work, to hand-labour, to house serv^ice. Tliis complaint is often repeated in the German Enquete; only fe^v workers think about devoting their lives to factory labour. In the possession of a permanent operative popidation exists the great advantage of England, where such a frequent change of occupation is unknown. The German manufacturers are also agreed that it is not want of capacity which makes the German operative less capable than the English, but much rather the lack of tradition, f=ince he adheres to a decentralized industry. ' Such circumstances decide," says one of the skilled witnesses examined, after he had taken into account certain social-political advantages for the dispersion, "that we can never have the trained workers of England, where children and children's children devote them- 31. " Protokolle," p. 387, gives 15 per cent as the disadvantage which results to the manufacturers of Alsace as a consequence of having to spin a larger range of counts than formerly. 32. Compare "ProtokoUe," pp. 29, 409, 452. 33. For instance, ' ' Protokolle," pp. 360, 387. (A mill which just for the moment wishes to spin fine counts cannot dispense with the therehy imnecessary operatives, because if it goes back to coarse counts, which give employment to more labour, it would not find the operatives at its call. ) Also Grassmann's " Augsburger Industrie," p. 176, informs us of a frequent change of operatives, specially pointing out the custom of the younger workers to change their situa- tions in spring. The compulsory military service has also a disturbing influ- ence in this direction. AND ON THE CONTINENT. 83 selves for their whole life to factory labour, and where the factory owners, by means of the great training which is there developed in such a form for the tending of machinery, can manage, for instance, 1,000 spindles with 3 to 4 operatives, whilst we need for this number from 6 to 10" (34). Centralised industry possesses a further extremely important advantage ; it alone develops machine-making specially and solely for the cotton industiy and its technical progi'ess. This makes possible an important cheapening of establishment as well as working costs compared with mills which introduce their machinery from afar and must keep special repairing shops with highly-paid mechanics, often not fully occupied. In England the erection and repairing is done by neighbouring machinists, who at the same time guarantee the possession of the most highly-developed skill. As in Alsace the concentration of the industry is more extended than in Germany, it alone possesses also machine makers devoted solely to cotton, which certainly are, however, by no means capable of supplying all Germany. The latter remains dependent in the first degree upon English machinery (35). The advantages of dispersion are, in comparison, slight. Ex- tremely doubtful is the advantage of lower wages, which represents only too often bad, and therefore dear, labour. Tliis advantage becomes so much weaker the more food becomes cheaper in the centres of traffic than in remote countiy towns. More important is the possession of water-power, on which the dispersion of the German industry is chiefly founded. But also in Germany the gi'adual going over to steam-power is developing itself (36). But especially disadvantageous is the decentralisation in respect to the sale. Here also the German manufacturer stands under the same disadvantages with which the English had to struggle in the "thirties." The German manufacture!- still seeks his customers through travellers and agents, and in many instances through retail sellers, whose financial standing is often questionable, whose necessity for credit is always certain. Hence the complaints about 34. Compare Report of the '* Enquetekommission," pp. 31 and 49 ; " Proto- kolle," pp. 19, 36, 74, 296. 35. Compare Jannasch : *'Die europdische Baumwollindustrie " (Berlin, 1882), pp. 24 and 25. 36. Compare Report of the Commission, p. 27 ; further, regarding the necessity of going over to steam-power, Engel : " Cotton-Spinning in Saxony*" (1851), p. 11. 84 THE COTTON TRADE IN ENGLAND the l)ad conditions of payment in Gcirmany which crop up con- tinually in the En(]uete. Tlie manufacturers had to wait tliree, four, or six months, and even 12 months and longer for payment. In reality there existed "termless terms" — a "complete anarchy in the method of payment" (37). Sir Walter Raleigh once similarly complained to the English that the economical greatness of the Dutch was founded on the system of ca«h payments. The disadvantages j)ictured are only to be avoided by progres- sive division of labour. The manufacturer cannot be at the same time commission agent, banker, merchant, and retail dealer (38) ; he neefls sound customers capable of pa^nng. He fares best if the sale is concentrated in one market, and 'Change jiricee simplify the struggle between buyer and seller. Tlie search for customers, foreign as well as home, and the bearing of all possible risks of disposal are in any case difficult enough to necessitate the whole strength of a man. The wholesale merchant alone is in a position to pay the manufacturer in ca.sh or on sure, short terms. But especially where export is in (]uestion is the dispersal of sales an oxti'eme impediment Tlie manufacturer cannot follow the fashions in Australia and South America ; the foreign buyer cannot travel from mill to mill. Tljere are undoubtedly at the present time in Germany arrange- ments made for the improvement of this important connecting link between manufacturers and consumers (39). In Alsace there has existed from the French ]^eriod a commission agent (40) for mediating the sales, a function performed in England, later on, by the wholesale merchant. In North Germany exporters have .icte . ,. 10-5 .. 4-5 1830 „ (13).. .. G9-70 .. lG-5 . ,. 15 .. 5-4 181)0 ,, (U).. .. 5t>^ .. 28-30 , 23-5 .. 17-18 1867 ( Germany (according .'?} 7« •• 21 IS i^'«ir" ' * ^ Kannarsch) ( Gerinauy, Ure tells us of an average i)roduction, as early as 1834, of 20 to 22.5 hanks of 4:0'8 twist per week; but though the differences at that time between good and bad machinery were far greater than at the present time, his statement refers only to the few spiiining-mills at that period which had already introduced Koberts' self-actors (15). In 186G, 32's Oldhaju twist had attained a proiluction of 22 i hanks per spindle and week; in the middle of the "eighties," 2^8 hanks (16). The most remarkable fact in the above table is, that not only is the capacity of the spindle increased, but that it has increased in spite of substantially diminished working hours. 12. "Protokolle,''pp. 81, 2D0. 13. Compare Baines, p. 353. 14. From my own observation in Bolton and Oldham. 15. Ure : *< Cotton Manufacture," XL, pp. 201, 31)1). Iti. Andrew : " Fifty Years' Cotton Trade," p. 4. 90 THE COTTON TRADE IN ENGLAND A similar development is shown by those spimiing-mills in which the twisting and winding-on of the thread — differently from the mule — is continuously taking place, whether it be by a throstle or by ring spindles. The twisting of the thread is achieved in this case by the spindle and tiyer traveller i-espectivelf running in the same direction, but \vith different speeds. 1834 No. .32*8 twist. . . Throstle Speed of spindles per minut«. 4,200 Working hours per w«?ek. 65-70 Weekly pro- duction (17). 24 hanks 1891 . . Ring . . 9,000 56J . 40-50 „ This higher capacity of the throstle and ring spindle, which is so very apparent, is balanced by the greater cost of buildings and increase of jjower — therefore, in this respect also, a replacement of labour by capital. Ring-spindles ai*e advantageous up to 40's. Above these counts they can scarcely supersede the mule, at all events not in the softer weft yarns (18). Tlie machines used for preparation also show an increase in their capacity similar to that of the actual spinning-machine. But the progret's in both is developed not only by the greater produc- tive power of the single machine, but at the same time by a lessening of the number of operatives per machine. This was made possible j)artly by technical progress, partly by raising the labour capacity. An ojierative to-day attends to more than twice, in fact nearly three times, as nmch machinery as his father did. The number of machines in use has become five-fold since that time — the number of operatives has not quite doubled (19). Insteiid of 10,000,000 spindles and 80,000 looms in the year 1831, England possesses today, for cotton alone, about 50,000,000 spindles and 600,000 looms. Tlie number of operar tives has, on the other hand, only increased from 220,134 (first official census in 1835) to 504,069 (1885). From 1856 to 1885 the number of sjnndles have increased 58.6 per cent., power-looms 87.5 per cent., and the number of operatives only 32.8 per cent. Of especial importance is the decrease in the number of opera- tives in the spinning of fine counts. This process was still in the time of Ure in a high degi'ee an art which demanded great prac- 17. Ure: "Cotton Manufacture," 11., p. 131. The particulars for the present time were received from the spinning-machine makers, Howard and BuUough, and Brooks and Doxey. 18. Compare R. Marsden : " Cotton Spinning" (London, 1888), p. 312. 19. Andrew : " Fifty Years' Cotton Trade," pp. 2, 5. AND ON THE CONTINENT. 91 K tice and much hand labour. In 1850 there were in Houldsworth's //f\\ ) fine ppinning-mills 7*5 operatives per 1,000 spindles; as early^ \ ^ as 1885, in the same mill, not more than 3 operatives. - By the following figures is clearly shown the great advantage which Lancashire enjoys by reason of this state of affairs, even in conjparison with its own past days, as well as against its present competitors. Pei* 1,000 spindles and accessoiy preparing machinery there were at the commencement of the "eighties" (20):- lu Bombay . . 25 operatives In Germany (1861) 20 operatives „ Italy .. .. 13 „ (1882) 8-9 „ „ Alsace . . .. 9-5 ,, „ England (1837) 7 „ ,, Mulhouse .. 7-5 „ „ „ (1887) 3 „ According to the Enquete, there were in Germany itself the most extreme variations. Whilst in Baden and Suabia only 6 opera- tives were employed to 1,000 spindles, this nmnber increased in Silesia to 14*75 operatives (21). On the other hand, India shows us, since 1884, extraordinary developments, about which details follow. There can be no doubt that Germany also has reduced the number of operatives per 1,000 spindles since the Enquete. From a gi'eat quantity of materials lying before me for 1891 and 1892 I cull the following, which, however, refer solely to leading and technically distinguished spinning-mills. The average for Germany is cei'tainly higher : — Switzerland, per 1,000 spindles . . Mulhouse , , Baden and Wiirttemberg, per 1,000 spindlfs . . Bavaria, per 1,000 spindles Saxony Tnew and splendid spinning-mills). } per 1 ,000 spindles . . . . . . i Vosges (old spinning-mills) Russia The average counts of yarn spun by all the spinning-mills men- tioned are between 20'8 and 30's. The table shows the most favourable conditions for the south-west corner of Germany, where 20. Compare Manchester Chamber of Commerce ("Bombay and Lanca- shire," p. 2). according to which 30,000 spindles in Bombay require 750 operatives; and Jeans: Statis. Soc. (Dec. 1884), p. 665. Similarly Merttens ; Manchester Statistical Society, April 18th, 1894, p. 169. The report of the German " Enquetekommission " for Cotton and Linen Industry, p. 8, gives the figures for 1861. Further, compare Jannasch : " Die europiiische Baumwollindu8trie"(l882), p. 53; Andrew: "Fifty Years' Cotton Trade," p. 2. 21. <« ProtokoUe," pp. 3, 33, 397 ; further, pp. 19, 54, 73, 98, 289. Statist. Ermittl, I. , 16. 6-2 operatives 5-8 6-2 6-8 7-2 8-9 6-6 92 THE COTTON TRADE IN ENGLAND spiiiniDg is tho oldest and the operative the iiiotit skilled, whilst newer spinning-mills towards the east (Bavaria, Saxony, and Silesia) recjuire an increasing number of operatives per 1,000 spindles. In order to prove the saving in labour in detail, I put together the labour power utilised in a new spinnrng-mlll at Oldham with 000 spindles (Oldham medium counts), for whicirT~^amino dl the necessaiy processes for spinning in their order. The spinning-mill chosen is a suitable average instance, which we can very well compare with the one given by Ure in his time, one just about as large — rather smaller if anything. Tho first process to which cotton is subjected is "mixing." There are for this, in the case in view, two grown-up men neces- saiy, who manipulate 12,000 lb. of cotton daily. Tlie next pro- cess is " opening," i.e., loosening the fibres, which have been pressctl together in the packing. For tliis purpose a machine ia applied which tears the cotton apart by means of revolving teeth, whereby the heavy and coarse impmities fall out. In the spinning-mill described there were not more than two women en- gaged in opening. Tlien follows tho " scutching " process, in order to separate the single fibres one from another and to remove the finer impurities by means of a fan. The cotton leaves tliis macliine in the form of a wide, comiected sheet (lap), in which form it is brought to the "card." The cotton is generally sub- jected twice to this latter process. Each time four — therefore, together, eight — machines were at work for this purpose. They were, together, tended by two grown-up men. Next follows the important process of " carding," which, along with tho further removing of impurities, serves the ob- ject of laying the fibres parallel. Tliis is achieved by two cylindrical surfaces working against one another, and which surfaces are clothed with fine hook-shai)ed wire points. At the mill in question there were 50 carding-engines, each of which manipulated 800 lb. of cotton weekly. Tliese engines were attended to by seven men — an average of one man for seven engines. This number is, however, even under the average; fre- (juently, in Oldham, eight or nine engines are tended by one operative. Tlie cotton leaves the cards like a small loose band (slivei-), which is collected in revolving cans. Tho "drawing" of the cotton next follows. Hie slivers pro- AND ON THE CONTINENT. 93 duced by the cards are drawn out under stretching rollers. At the mill under examination there were 7 drawing frames, each with 3 heads and 7 deliveries. Each of these frames was attended to by a girl. The cotton drawings produced are made by the next process into "rovings," by which they are further drawn out and then given a certain twist. Tlie manipulation before finally spinning is subdivided into three operations (slubbing, intermediate, and roving frame). In this particular spinning-mill 7 slubbing frames, 13 intermediate frames, and 30 roving frames were brought into operation. The first 20 frames were tended by 10 young women and 10 children. The children — so-called back-tenters — stand behind the machine and have to fill it with bobbins, to clean it, etc. The 30 roving frames are served by 15 young women, each of whom minds 328 spindles. They have as helpers eight children. In Oldham the number of spindles in the slubbing frames fre- quently reaches up to 96, in the intermediate frames up to 150 ; -^kamS accordingly a rover frequently looks after 360 spindles. I have, - yv however, noticed even higher nmnbers ; for instance, roving framerf^ i^'?^ up to 200 spindles. Tlie whole preparation work does not nee 653 operatives. 163 operatives. 22. Ure gives also, in addition, 90 grown-up women as engaged in cleaning and choosing cotton. But since this hand labour, according to him, was only employed at that time for the production of a special quality, I have left them out of account in the above comparison. L 04 THE COTTON TRADE IN ENGLAND I The great number of children and young workers in 1830, com- pared with tlie present, is worthy of notice. At that time a gi-eat portion of them were under ten years of age, and for the most part were only there to sweep up cotton waste — those poor little "scavengers" which Lord Shaftesbury lias handed down for the pity of following generations. Those Factory Acts, therefore, which made child-labour more difficult have in no way injured the advance of the great industry ; it was^n no wise, as was frequently argued by his opponents, dependent on an increase of child-labour. After reading the works of Baines and Ure, let us visit such a new fireproof (23) spinning-mill in Oldham, in order to view the ^advances since their time. We find ourselves in one of the outer exits of those polypus arms which extend the factory town into the meadow-lands of Lancashire. As far as the eye reaches, on the meadows there are dispersed five or six storeyed spinning-mills — neat brick buildings, with overtowering chimneys. Certainly there are 40 to 50 of such chimneys to be coimted in one view, imtil they disappear on the horizon, for the towns dovetail one into the other. Add a clouded sky and that damp atmosphere the possession of which an American expert reckons to be, with fine counts, an advantage of 7 per cent. We enter into the fac- tory immediately from the street, without a special yard and gateway, as is customary in Germany. The foreigner looks about, as soon as he is inside, and asks himself: ^Vlifi^:^are the operative s? Less human labour than even given in theabovein stances may be required. For mixing, as for opening, I have myself observe 120 operatives Carding Drawing yiubbing, intermediate, and roving Spinning No. of overlookers packet's, etc 155 men J 12-6 women 44"3 women and young \ workers j 87'0 women and young \ workers ... / 12 ■" .■■ .'■■ .'V 59 202 117 '.'. (25) Totals 167 Oiwratives per l.UOO spindles 2*4 i«5-3 3-S 498 8-9 Tliese results show that in Ohlham fewer operatives are required for 70,()U() spindles than in Mulhouse for 32,000. Yet by these very figures Mulhouse shows, in this respect, the most favourable conditions of all Gerniany. Much more unfavourable is the state of affairs in the valleys of the Vosges, as the instance given proves. It is true that the figures given for Oldham and Mulhouse do not refer to the same average counts f)f yarn ; 01dhjuii-jufijliinn__js^ from 3G's to 40's ; those which are given for Afulhouse refer to No! 2T)'s French (metrical). But this circumstance does not come into account in the extraordinarily high difference of the fore- going instances. This is also shown by the following fairly repre- sentative mill in Switzerland, compareuJd 43133 AV 1 ip?-=iiiliiiiiiil 1222 1650 .530 633-3 258 333-3 •sanoq SUIVOAV XinaaAV SSS3 SS3S3:931SJ23S'J? ss ss-ss Seconds for traverse backw'ds and forw'nls. 252 IjEjSS No of Length of operatives, travei-se. §3 SiSSS »4e4 04940303 si^.. ;is . -saoioB i -jiasjo.uBd aad saip.ds 1 JO -ON 1272 1280 1272 1280 1568 1200 2000 2208 1472 2064 1472 1200 1704 2000 2376 2688 1560 2400 1248 1632 Places. Vosges Mulhouse Mulhouse Bjivaria Wuictemberg.. Sjixony Oldham S'th trermany Bolton S'th Germany Switzerland ... Saxony... Oldham.. Oldham Oldham Alsace Bolton Alsace Bolton (1) 12's metric warp ... (2) 28's metric'warp ".'.. (.3)20's twist, English... (4) 36''s twist, "English".'.". (5)36's twist, "English."."." 1 ■ 1 1 ■ t ' i 'i ' 73 73 ^ s S 2^ 104! THE COTTON TRADE IN ENGLAND capacity is less. In tlie latter respect it is to be bariie in miud that ill England doffing and filling with bobbins take place in a shorter time, breakages of ends occur more seldom, and the piecing of broken threads reipiires less time. From these it results that the cost of labour per lb. of yarn — esi)ecially if the overlooking is included — is in England decidedly less than in Germany. The wages of the English spinner are^ as well, nearly twice as high as in Germany, and the hours of labour a little over 9 hours (32), compared with 11 to IH in Germany. Weaving. Similar to the progress of spinning was that of weaving. Cotton manufacturers, before the Committee on Manufactures (1), in 1834, advanced the theory that hand-weaving was increasing, and must increase as long as British commerce expanded. Especially had the manufacturers of Bolton — which at that time was the centre of weaving — thus expressed themselves. In spite of all prophecies to the contrary, hand-weaving, at least in cotton, ha^s, as a matter of fact, dieil out in England. Not without much difficulty — because in Manchester even the largest merchants in cotton goods knew nothing more of them — I have still found hand-weavers in Ijancashire. Let me here dedicate a word to the last of the race. If the death-struggles of hand- weaving often extend themselves in a sad jnanner throughout decades, its death itself is a comparatively easy one. A gi-eat portion of the operatives' outlying districts of Bolton comprise, even to-day, those houses which at the beginning of the century were built for hand-weavers — cellars for weaving, lighted from both sides by an unbroken row of windows, over which are dwelling-rooms accessible by 8te}>s fixed outside the house, now small houses for single weavers, then larger ones with space for about 20 to 30 looms, where cottage weaving had de- veloped into division of labour establishments. Most of these houses have at the }>resent time lost their original object, and have become dwelling-houses for the operatives under the rule of 32. Spinning machinery in England generally runs 55 hours per week ; the ctory Act g ' "" ' '' ' '^ ' "" '•— ^ " ^ -^--•—- ^t-- chinery. Tl , because, oui 1. (1,212> Factory Act grants 56i, of which 1| hours are devoted to cleaning the machinery. The clause for regulation of German trades shortens the hours to Go, because, out of the 6() hours allowed, one is necessary for cleaning. AND OK THE CONTINENT. 105 tlio iuctoiy system (ceutralised iudustry). But in u detaelied environ here aud there we still hear — of course isokited — the sound of the hand-loom. If we descend into one of these cellars, which, as mentioned, are very well lighted and contain about four looms, we are greeted by grey-haired men and women. They seem to belong to another world, especially if the visitor has just wandered through one of the gigantic fine-sjnnning mills of Bolton. Here, as everywhere else, the dying liand-weaving clings to a specialty for existence — counterpanes of peculiar patterns and with words woven in, mostly Bible verses. The patterns are formed by the weaver raising the weft, at the proper place, with a small hook to form a shed. Similar patterns could only be i>roduced by the power-loom w^ith complicated jacquard arrangenients, and in large quantities. But here it is only a question of a limited supply for people who still cling to tlie old fashions, perhaps mostly for customers who, in point of age, do not stand iimch behind the producers. For their requirements it would not pay to introduce costly machinery. The weavers work with extremely coarse weft — about 90 yds. to the Uj. — which is spun from cotton waste. This enables a quick production, because there are no more than 12 picks per quarter- inch. The warp is 12's twist. Similar counterpanes are also woven with coloured cotton — in every instance old-fashioned goods with a very limited circle of buyers. \Vc gee, therefore, how the cottage industry has at last with- drawn itself to a sphere specially suited for it, which also becomes more and more contracted, but not more quickly than the hand-weavers die off. Therefore the position of these, the last of their race, is a better one than that of their j^arents in the "twenties" and ''thirties." They have taken their share in the general progress of the times ; a 4:1b. loaf, pointed out one of the weavers, 40 years ago cost lOd., now only id. Tlio hours of labour are still 12 to 14, but with longer stoppages for meals. The rate of wages is also better than formerly. A weaver receives Is. 7d. for one of the counterpanes described. Ho can weave 8 in a week, so that his earnings amount to 13s., of which, however, 28. to 38. goes as rent for the loom, etc. As soon as goods come into question which Jiro not specialties, the earnings sink far below — to 7s. per week and less. But the most astonishing fact in regard to the condition of wages is that the hand-weavers in late years 106 THE COTTON TRADE IN ENGLAND even succeeded in obtaining an advance. Since the old men possess a monopoly of their hand-labour, the threat of a strike was sufficient, as long as old maids still bought their goods. An astonishing thing is this guild of the cottage weavers, which once comprised the whole neighbourhood of Bolton, and had thousands of membei-s. Even 30 years ago it had 1,800 mem- bers ; to-day it has only 50. The youngest member, 50 years of age, is secretary, with whom, apparently, at some time the guild will die out. Most of them are far older, and to our questions about the trade the answers often went back 50 years. If their condition is tolerable, it depends upon the almost fanatically spoken-out determination to be the last of their trade, and to teach their handicraft to no younger person. Even winding is not done here by children, but by the oldest of the old. The gi-andchildren work in the factory, where they earn three times as much — thus solving the hand-weaver problem. If we comj^are the conditions of the hand-weavers in Germany with those just delineated, they stand also on about the same economical footing as those of England in the " thirties " — in the midst of the death-struggles of the cottage industry, whose fatal character is well known to the thinking observer. There are, indeed, also voices not wanting like those of the manufacturers of Bolton who thought the home liand-weaving could only cease altogether with English commerce (2). For instance, an advertise- ment lies before me, in which hand-weaving is declared to be as capable, indeed in many articles superior, to power- weaving. It ill fits in therewith, however, if at the same time the sympathy of the public is appealed to, and an advertisement made of the poverty of the weaver. Opposed thereto E. Engel (3) deserves special recognition, for in 1855 he already called attention to the fact that there was only one remedy for the misery of the hand-workers — the replace- ment of the hand industry by the factory system. So early as that, Engel spoke with great foresight of a certain " conservative calling of centralised industry." Even at this day this expression will appear paradoxical to most people. Where, however, the 2. Compare Report of the •' Eaquetekoinmission," p. 70. 3. E. Engel: " Siichsisches Obererzgcbirge" (Dresden, 1855), especially pp» 10, 14, 15. I AND ON THE CONTINENT. 107 change to the factory system has been possible, hand-weaving in Germany has also been put aside without extreme sufferings. Where it still exists, conditions are the most favourable where it confines itself to at least a specialty. But it wrestles most severely mth death where it does not bend before the factory system in the direction of a specialty, but lives on by tampering with the quality, as in many cases in Silesia and partly in Saxony (4). Power-weaving, compared with hand-weaving, means a replace- ment to a large extent of labom* by capital. A weaver on the power-loom accomplishes about as much as 40 good hand-weavers (5). But also in power-weaving itself, as in spinning, the quantity produced per loom as well as per operative is continuously in- creased. First comes into account, since the "thirties," the considerably increased speed of the loom, which at the present time in Lanca- shire has in some cases reached 240 picks per minute (6). The avei-age si)eed on plain goods is approximately as follows: — la England, in 1830(7) 80 to 90 picks to-day .. .. .. 195 „ ,, Alsace ., (8) 140 „ The advantage of England in this respect is given in detail by the following table : — Approximate Speed of Looms ox Plain Cotton Goods. Picks per minute. Width. Knelaiid. Switzerland. Alsace. 80 to 85 cm. 240 190 to 200 150 to 160 110 .. 116 ., 200 160 ,, 170 130 „ 140 135 ., 140 ., 180 150 .. 160 120 „ 125 165 „ 170 „ 180 120 ., 130 110 ., 115 (») Similarly, however, as in spinning, the number of the really completed movements of the machine within a working day is far less than the simple nmltiplication of the picks by the number of minutes. The loom is not in operation during the whole of the 4. Report of the •• Enquetekommission," p. 77; " ProtokoUe," pp. 223, 306, 405, 411. 5. Andrew : •' Fifty Years' Cotton Trade," p. 7. 6. Compare Andrew, p. 2, 7. Ure : " Cotton Manufacture," II. , 810. 8. Jannasch : " Europiiische BaumwoUindustrie " (Berlin, 1882), p. 54. 9. These figures are from private infonuation. The particulars for England are, however, confirmed by Brooks: "Cotton Manufacturing" (Blackburn, 1889), p. 79. 108 THE COTTON TRADE IN ENGLAND working houi's, but time is lost ijy breakages of euds aud similar disturbances. Thus in England, with a theoretical speed of 210 picks, not more than 200 picks are on tho average effective — i.e., the loss amounts to 1G"6 ix;r cent. With lower speeds tho loss sinks down to 8 per cent. In comparison, 20 to 30 })er cent, has been given me as the average loss for Alsiice in plain goods; for Switzerland even a little more. Karl Grad mentioned before the " EiKiuetc-konniiission '' a uot exceptional case, in which on j)lain goods, and with a sj»ei.'d of 160 picks per minute, tho loss amounteil to 34 per cent. He founded this emphatically on the want of highly-skilled labour (10). From the facts mentioned wo find that English looms produce considerably more than those on tho Continent in the same time. Unfortunately a comparison in ligm-es, a»s in spiiming, cannot be given, because I have not succeeded in getting details for exactly tho same goods in England and Germany — by the way, an in- teresting instance of international division of labour. If, however, English looms run about 30 per cent. (|uicker than the German, and show at least 10 per cent, less loss, it follows that in spite of 15 per cent, shorter hours of labour, the weekly production is not less, but rather must be greater. In spite of this increase of proiluction per loom, the number of operatives, compared with the number of machines used, has, as in spinning, continually decreased. If we take the particulars given by Ure as a basis for reckoning, there were still in 1820 more operatives than looms ; in 1878, on the other hand, there were more than two looms per operative, both including all the people em- ])loyod on the preparation machinery' : — In 1820 there was one operative per 0*9 loom .. 1850 „ .. ., 1-6 looms .,1878 ., .. ,. 2-1 „ (11) .. 1893 „ ., „ 4-6 ,, lu comparison, in India, only 0-22 loom (12) ,, .in Alsace, only 1*5 looms (13) 10. '• Protokolle der Enquete,'' p. 372. 11. Compare Birtwistle before the Labour Commission. 1891. 12. Compare "Bombay and Manchester*' (Manchester Chamber of Com- merce, 188iS). p. 8. Report of the ♦• Reichseuquete." p. 109. Whereby, how- over, it must not be forgotten that on the average Alsace produces finer goods than England. 13. Brooks : " Cotton Manufacturing," p. 47. AND ON THE CONTINENT. 109 We liiid tlie same thing if we leave tlie preparing machinery ont of the question and take only into account the number of looms which the weaver minds. Whilst during the time of Ure the weaver did not mind more than one loloyers in North Lancashire. In his district one person minds on the average 3'9 looms. That we can accept four looms as the average number has been confirmed to me, in a similar manner, by Mr. Birtwistle, secretary of the Amalgamated Weavers. He writer : " The larger number of our best weavers (in Blackburn and Accrington) mind four looms per person, some with, some Avithout, help." It is, how- ever, to be borne in mind that these statements are not only with respect to plain, but also to simple fancy and bordered goods, especially the so-called dhooties — the clothing of the Hindoos. Six looms per weaver are in Burnley very frequent; in this case the weaver has mostly a young assistant. Compared with the foregoing, the nmnber of looms per weaver in America has increased still more. A weavei* in Massachusetts frequently minds 6 to 8 looms, as a letter of Mr. J. Howard, secretary of the Cotton Operatives of Fall River, informs me (14), and Mr. Edward Atkinson, of Boston, confirms. In a weaving-shed at Lowell, Massachusetts, there were em- ployed in the " eighties," according to a communication from the manager — Mr. Dupre: — 11 women weavers with 5 looms I 43 women weavers with 7 looms 232 „ „ „ 6 „ I 20 „ ., .. 8 „ In Germany a weaver scarcely anywhere minds more than two, in Mulhouse and Switzerland, on plain goods, often three looms. Also in Ai.gsburg this latter has, according to Grassmann, been lately successful (15). The highest capacity there is that four looms are given to two operatives — one adult and one young 14. Reprinted in the Cotton Factory Times of March 22nd. 1889. The same is given in " Commercial Relations of the United States," No. 23 (Sept. , 1892), p. 43. 15. Compare Grassmann : " Die Entwicklung der Augshurger Industrie, 1894." On the other hand, the story on p. 49 was related to me a few years ago. 110 THE COTTON TRADE IN ENGLAND person. In Silesia (15a), on account of the lower standard of weekly earnings, it has been found more economical to confine a weaver to one loom. In order to bring the degiee of labour-saving which has been attained in England before the eyes of the reader, let us visit one of the weaving-sheds in North Lancashire. It contains 602 looms for plain printing calicoes. The looms are arranged on a flagged ground floor, with light from above. This is at the present time the usual arrangement in England for weaving, because thereby the vibration, and therewith the wear and tear of the machinery, as well as the number of ends breaking, is the least (16). The remaining rooms attached to this light and roomy weaving- shed are small, and are built with the utmost regard to economy. There are the following operatives : — 16 Females at winding machines, at . . . . 18/- per week, piece-work 2 Operatives for beaming, at .. .. .. 33/- ., ,, 1 „ for sizing (for the coarser and) ^, dav-work white yarns), at . . (■*"/- •♦ aay-worJt 5 ., for dressing (for coloured and fineri .^, yarns (17), at .. .. f *"- " ^' •» 5 Females for drawing-in warps, from . . 35/- to 16/- „ piece-work 180 Weavers and tenters, mostly females, includ-") go/g ing six-loom weavers, at . . . . J ' " " These pay the tenters .. .. .. .. 6/6 ,, day-work Four-loom weavers, at . . . . . . . . 24/- ,, piece-work 6 Overlookers, at 38/- ,, „ [These latter receive 1/4 for every pound which the weavers under them earn.] Then, in the warehouse : — 1 Cloth-looker, at 33/- „ day-work 3 Labourers, at 22 -. 18/-, 14/- 4 Youths, at 10/- In addition : — 1 Clerk 38/- ,, ., 1 Labourer 18/- ,. ., 225 operatives, all told, or per operative, including all preparation. 2 -7 looms. 15a. "ProtokoUe der Enquete,"p. 410. Compare also p. 180. 16. Compare B. Shaw : ' ' The Cotton Manufacture of Lancashire " ; " Commercial Kelations of the United States," No. 12 (Washington, 1881), p. 129. In America this method of building is impossible, owing to heavy snowfalls in winter — also another climatic advantage of England. Compare the same, No. 23 (Sept, 1882), p. 42. 1 7. The difference between dressing and sizing is that in the first case the warp is spread out thread by thread; in the second it is subjected to the strengthening ingredients in the form of a small coil. Compare Karmarsch, II. , S83. Ill the case before us, partly one system and partly the other was used. AND ON THE CONTINENT. Ill In similar first-class weaving-mills of Baden and Switzerland there are, in comparison, on plain goods only 2"1 to 2 looms per weaver, whilst on the average this number is much less. A weaver in the weaving-shed we have examined earns 5s. 6d. per loom per week, whilst the average in Burnley probably amounts to 5s. The weekly wage varies between 22s. and 27s. The six- ioom weaver earns 33s. 6d., but pays from this to his young heljter, who, by the way, is generally a member of the family, 6s. 6d. The width of the printings produced varies, as generally in Burnley, between 32in. and 4:6in. The yarns used are so-called mediums — that is, warp 28's to 45's twist, weft 30'sto60's. The weekly production per loom is 250 yds. on the average, therefore the cost of weaving is U'26d. per yard, whilst in Burnley it is reckoned at 0*2 2d. In comparison, a weaver of similar plain printings in Germany and Switzerland earns about 12s. weekly. His labour is, in spite of this, by no means cheaper. Quite another aspect is shown by one of those art weaving-sheds in the neighbourhood of Manchester — for instance, Bolton. Here no loom is weaving the same thing as another. There are towels, t-able-cloths, counterpanes, so-called fancy goods, especially for the home market. But in spite of the fact that the majority of the looms have jacquard arrangements, even here one weaver minds on the average two looms, whilst in all Continental weaving- mills one weaver has only one such loom. Only a few of the weavers in Bolton have tenters — among 250 weavers perhaps about 50. On the 500 looms at work, which represent a considerable amount of capital (a loom costs £5 to £150), there are 300 weavers and tenters, in addition to 1 50 operatives on the prepara- tion work, cutting of jacquard cards, and in the repairing shop, which is necessitated here by the complicatefl machinerv\ The average, therefore, per single operative, including all the accessory preparation mentioned, is I'l looms — a remarkably favourable result. The woven goods which the dexterity in art of our German hand- weaver 8 still produces are in many cases the same. The English weavers earn on the average 25s. per week, and on the real art-looms Ss. per day easily, and still the productions of these highly-paid operatives have killed the old cottage weaving of Bolton, in which their fathers and grandfathers once eked out a not less miserable existence than the German hand-weavers. 112 THE COTTON TRADE IN ENGLAND Wliat we have said shows how the technical projrress in weaving also caused a permanent increase of production per operative, and therewith a continuous lowerinj^ of piece-wages. Thereby, as in spinning, the weekly earnings of the operatives have risen. This can be proved by figures. The following instance is taken from a large weaving-mill in Hyde, which since the introduction of the power-loom has remained in the hands of the same family : — Weekly production per operative. Cost of labour. Hours of labour. Weekly eaniings'per weaver BuyinK-power in flour. 1814... 1890.. Yards. 130-7 221*2 540 Per Yanl. l-3d. 0-6d. 13d. Per week. 80 72 I 148. I 128. i'i .3-looin weaver. \, , 17s..3d. - I •i-loom weaver, ( ! 22s.6il, Lb. 56 65 } 131K1«) I 208 The goods to which these figures refer are ordinary printing calicoes (3H in, wide, 72'8 reed, 26's twist, 30's weft, 20 picks per quarter-inch) (19). Figures comprising the whole of cotton weaving, on the basis of Ellison's estimates, have like results : — Bnf^Iish total production in cottr>n sroods. Number of opera- tives. Capacity per operative. Cost of labour per lb. Yearly earnings per operative. 1819-21 .. 1829-31 ... 1844-G .. 1859-Gl .. 1880-82 ... [n 1.000 lb. 80,620 143,200 348,110 650,870 993,540 250,000 275,000 210,000 203,000 246,000 Lb. 322 521 1,658 3,206 4,039 Pence. 15-5 9-0 3-5 2-9 2-3 £ 8. d. 20 18 19 8 24 10 30 15 39 The apparent irregularities of the table (20) are explained by the decline of hand-weaving being included in it. To this the lowering of the yearly earnings between 1820 and 1830 must be ascribed. 18. The prices of flour are the same as before (p. 98). In Hyde, south of Manchester, the weavers, unlike those in the districts of the staple industry in the North, only mind three to four looms. 19. The figures for 1810 and 1830 are reckoned from the particulars of Baines ; those for 1890 emanate from private communications. 20. Compare KUison: " Cotton Trade," p, 69, AND ON THE CONTINENT. 118 This development has been repeated in the States of Massa- chusetts and Rhode Island. Tlie following particulars emanate from the well-known writer, Edward Atkinson, who at the same time is a practical man in the cotton industry (21). Here also the same decrease is shown in piece-wages, the same increase of production per operative, and the same raising of weekly earnings. Even if the still remaining colonial character of America (higher cost per spindle and loom per mill, stronger demand for labour, dearer capital, etc.) should make the industry there appear not suitable for extracting general economical principles, the American instance is nevertheless, in res])ect to the replacement of labour by capital, extremely instructive. Tlie particulars of x^tkinson refer to two mills which since 1830 produced unchanged the same goods (standard sheetings, width 36 in.. No. 14's yarn), and spun the necessary yarns themselves. In the cost of labour the cost of spinning as well as of weaving is included. The particulars are taken from the business books of the firms in question. Yearly protluction per operative. Cost of labour | Annual earninKs P^^y*^"^- i ope?ltive. 1830 . 1850 Yards. Cents. 4,321 1 -9 12,164 1-55 19,293 1 1-24 28.032 i 1-07 Dollars. 164 190 240 290 1870 1884 In the case of Germany, also, a similar development can un- doubtedly be shown. Although the looms run more slowly, in spite of this the losses (22) are larger and the production per loom less than in England. This is a consequence of the want of highly- skilleil and highly-capable labour. But this fact is easily ex- plained by the still comparatively youthful age of power-weaving in Germany. In the eastern portions of Germany, especially in Silesia and Saxony, the power-loom has only been settled since 21. Edward Atkinson : " Address upon the Labour Question " (Boston, 1886), p. 11. The same: Popular Science Monthly (January, 1890), pp. 316-7. The same : " Distribution of Products," 4th ed. (New York, 1890), p. 118. Compare, further, .Jeans: Statist. Society (December, 1884), p. 617. 22. That is, the difference between the theoretical and real production. — Translatoi\ 114 THE COTTON TRADE IN ENGLAND the "sixties" — in 1861, for instance, the first powerloom mill was got to work in Plauen (23). Grassmann gives the following table regarding plain calico weaving (23a): — Yearly Production per Power Loom in metres. Weavers per Loom. Annual Production per Weaver in metres. 1861 1875 1891 8,588 (93 cm. wide) 8,966(130 „ „ ) 9,202(130 „ „ ) 0-5 0494 0-43 17,176 18,163 21,447 On account of the disparity in the goods produced, an exact comparison of the cost of labour in weaving between Germany and England is more difficult than in the case of spinning. I confine myself to the following instance, which is based on the authority of Schoenhof (24), and has been confirmed to me in Lancashire. It refers to ordinary printing calicoes, 15i yds., 64 by 64 standard sheeting : — Switzerland and\ Germany ... | England America Weekly production per operative. y* LP**" I hours of "*• I labour. Yards. 466 706 1,200 Pence. 0-303 0-27:> 0-2 Weekly earnings per operative. s. «l. 11 8 16 3 20 3 Tliat on the field of weaving, however, Germany bravely steps forward is proved by numerous particulars of the *' Enquete." In any case the cost of labour had only increased a little, in many cases even lessened, although since the "fifties" the weekly income of the operatives had permanently risen, in some instances very considerably, in many cases 60 per cent. This was attained by giving two looms to a weaver, increasing the speed of the looms, and introducing piecework and labour-saving machinery 23. Bein: "Industrie des Voigtlandes," II., 341 ; also " Protokolle der Enquete," p. 105. In Augsburg already in 1839. Compare Grassmann : loc. cif. , pp. 22. 23. 23a. Grassmann : lor. cit. . p. 96. 24. J. Schoenhof : '•Influences Bearing on Production " (1888), a journey- report, out of print AND ON THE CONTINENT. 115 for the preparation. Whilst in some cases spinning-mill owners complained that the labour capacity became worse as a conse- quence of increasing wages at the beginning of the " seventies/' the continuously increasing capacity of the operatives in power- weaving was, even at that time, according to the evidence of experts, beyond doubt (25). Similar cases since then have been communicated to me, in which, by speeding the machinery, piece- wages were reduced and resulted in an increase of the weekly earnings. In spite of all this it is at the present time less the technically-advanced centralised industry which has made German weaving partly into an export industry than the accommodating itself to changing daily demands, to taste in the patterns, etc. Thus the merchants of Ijondon and the manufacturers of Lancashire order, in many cases, German novelties and produce them in large masses if they take (26). The lack of technically perfected productive systems has in many instances resulted in the fruits of the admirable technical and art skill and training which GernAiny gives to her sons being plucked by other nations. WEAVING PRICES IN LANCASHIR: I. — Plain Cotton Goods. — Blackburn. Width of goods. Reed (27). Picks per Length pieces. Twist. Weft. Wages piece. Weeltly production per loom. Inches. 39 62 .U-6 Yards. 37 30's 30'8 Pence. 8-92 Blis. 222 39 62 14 9 37 30's 30'8 9-47 215 39 62 16-5 37 30's 30's 10-08 215 40 50 14-6 37 30's 30's 8-72 222 25. Compare *'Protokolle zur Reichsenquete," pp. 105, 183, 188, 192, 247. 26. Compare the Second Report of the Commission on Depression of Trade, part I., 4,945, 4,949, 4,977, 4,982, 5,815. 27. The method of counting reeds usual in Lancashire is the Stockport method — the number of dents in two inches, i.e., since generally two warp threads are drawn through one dent, the number of ends per inch. 110 THE COTTON TRADE IN ENGLAND II. — FouR-SiiAFT Twills. — Radcliffe. Width of goods. Reed. Picks per , iinch. Length of pieces. Twist. Weft. Wages piece. Weekly production per loom. Inches. 34 00 12-2 Short ells. 80 32's 40"s Pence. 15-05 Pieces. 34 00 1 13-25 80 32's 40"s 10-05 H 34 CO 14-45 80 ' 80 32s 40'i 18-48 3 34 00 1-55 i 32's 40's 10-84 n III. — BuR>aiEY Printers. Width of goods. Reed. Picks per 1- incTi. Length pieces. Twist. Weft. Wages piece. Weekly production per loom. Inches. 34 OS 18-75 Yards. 135 Medium (28) Pence. 40 03 Yanls. 200 20 07 18-03 110 r. 31-^2 215 20 53 12-47 125 ?» 21-07 352 311 50 14-25 ! 130 2442 310 Tlie above figures show extremely low prices per piece, which give the weaver a weekly wage of 22s. to 24s. A comparison with Germany in figures would be impossible in detail, but still the foregoing particulars should not be withhehl from practical men - ///. — Labour, A.— Further Proofs of the Statement advanced from Other Countries. We can condense our result up to this point in the sentence : Technical progress, in connection with an increase of labour capacity, accomplishes a permanent lowering of piece- wages, at the same time raising the weekly earnings of the operatives and gradually shortening the hours of labour. If we further sup- orte^l this statement by comparing the present condition of the English cotton industry with its condition in the "thirties" and that of the contemporary German, the cotton industry in its 28. Medium = 28'8-45's twist, SO's-OO's weft. AND ON THE CONTINENT. 117 remaining phases also allords a pletiiora of ju'oofs. Wlierc tlie staudard of living and the wages are the lowest, there the pro- duction is the dearest. The Russian cotton industry has its seat in two centres— one in the centrally-situated provinces of Wladiniir and Moscow, and the other in the North, near St. Petersburg and in ]^]stlila.nd. In the latter district the standard of living of the operative is the higher ; but his greater intelligence and cleverness amply counter- balance the lower wages of the middle provinces, as the following table shows (1) : — Yeaklv pHoDrcrioN teu Operativk. In spinning. In weaving. ^^^^^r" 1 1 Roubles. Koubles. i Wladimir and Moscow. I 937 45G St. Petersburg 1,928 1,102 | Esthland 1,513 1,327 j i 14 and over 12 The tremendous waste in labour-i)ower is the chain wliich, in spite of English nuichinery and English managers, keeps l)ack the industiy of Russia — conditions which link themselves to the days of serfdom and heathenism, when the labourer cost just as little as he accomplished. An American Consular report speaks similarly respecting Italy : Power-looms in Italy proiluce far less than elsewhere because the female operatives are very slow in piecing ends, and thereby lose almost 40 per cent, of the time worked. Certainly the wages here are very low in comparison with the United States, but the ]>roduction in the same time is lower in the same proportion. Tlie Italian spinners pay their operatives 6 to 8 lire per week; but they require 10, 15, and even 20 operatives per 1,000 spindles. The same applies to weaving. An English weaver minds 3 to 4 looms, and has from every one (!) a larger production than the Italian, who seldom min^s more than One loom (2). 1. Compare '• Commercial Kelafions of the United States," No. 12 (Oct., 1881); •• Beport on the Conditions of Labour in Russia " (Lond.. 181)2). 2. "Commercial Relations of the United States," No. 23 (Sept., 1882 p. 285. 118 THE COTTON TRADE IN ENGLAND A similar antitliesis is found within the United States. Here the South, which produces cotton, appears to be specially adapted also for fui'ther manipulation; the technical aids and capital are at hand as in the North ; and water-power is also not lacking in the South. In spite of these facts the North is the seat of the cotton industry, although it has to bear the carriage of the raw materials. There, however, is the seat of an old race of operatives of extraordinary productive capacity. Tlie South, which depended up to a short time ago on slave labour, has nothing to set against this race. It is true that the weekly wages in the South are far lower, but the cost of labour is dearer. " I have," says Atkinson, " made a very accurate calculation of tlie proportion of operatives to the number of spindles, the number of looms, etc., and therein conceded vei*y much for the variation of yarns, the capability of the mills, etc., and still found that in the South there are two .operatives for one in New England. This calculation was con- firmed by observations on the spot" (3). The most remarkable confirmation of our contention of reversed proportional conditions between weekly wages of the operative and piece-wages is given by the reports of Mr. James Thornley, who travelled in the American cotton districts in the interests of the " Textile Manufacturer," an English journal devoted to the textile trade (they were printed in the journal mentioned). Their general pm*port was, that the cost of producing plain calicoes was higher in the United States than in England. On the other hand, the cost of labour for the same production was less in America. In comparison with these facts it is known that the weekly earn- ings of the operatives in America and England are about as thre^ to two (4).. But it is especially remarkable that the cost of labour in America, particularly in weaving, stands very considerably below that of England, but on the other hand that spinning is cheaper in England. Although this is the case the English weaver earns far less than the American; the spinner, who is still superior to his American contemporary, is, however, the highest-paid English operative. For the production of a pound of ordinary printing calico, of a sort which the expert mentioned deems specially suitable for comparison, the follo\ving figures are 3. Edward Atkinson: Popular Science Monthli/ (Jan.. 1890), p. 371. Compare further : " Address of Edward A.tkinsoQ. given in Atlanta, (Georgia. Oct, 1890," p. 5. 4. Compare, for this, Atkinson : •' Distribution of Products,'' p. 133. 'Jew England. Lancashire. G-32d. 6-08d. 3-33d. 3-48d. 0-66d. 047d. 1-Gd. 2'03d. 33/- to 35/- 35/- to 40/- 25/- to 37/() (6) . . 20/- to 24/- AND ON THE CONTINENT. 119 of .value. I, on my side, add the weekly earnings, and tender my thanks to Mr. E. Atkinson for the friendly information con- cerning the conditions of American wages (5) : — Cost of Productio.v per Pound (excluding Raw Cotton). Total cost of production ,, labour Cost of spinning ., weaving Weekly earnings of spinner „ .. weaver These particulars agi'ee with those of Schoenhof in his " Economy of High Wages," according to which the costs of spinning in England, and of weaving in America are the lower. In Germany the standard of living of the working classes has without doubt considerably advanced during the last decade; wages have risen and the hours of labour become shorter, without needing an increase in the rate of piece-prices (7). As an instance, in a Bavarian mill for which particulars were repeatedly made, the average wage, in spinning, in 1886 was 2 marks, in 1890 2*12 marks; inweaving, 1886, 2 marks; in 1890, 2-22 marks; in addition to which a lowering of piece-prices was possible in the weaving-she introducetl into Switzerland, follow- ing that already introduced in 1872 into the Canton Grlarus. It can already bo |)roved with certainty that the cotton industry of Switzerland, one of |the chief industries of the country, has not suffered in the least by these regulations. By calling into service a corresponding s}>eeding of the machinery, the experience of in- creasing the productive ca])acity of labour — which in many cases 8. Compare ProtokoUe of the " Reichsenquete," p. 375. Brassey: *♦ Work and Wages," 2nd ed., pp. 121 and 143. 1). Compare "ProtokoUe der Reichsenquete," p. 376. 10. The same relation applies to knitting. A firm 1 am personally acquainted with produces curtains in Nottingham. Silesia, and Austria. The mills iu the latter places make ordinary goods for home consumption. Goods for export can only be successfully produced in England. The same difference exists in England. The lace trade has at the present day. in many cases, left Nottingham in order to obtain the advantages of lower wages in the country districts. But the finest articles, which require the most expensive machinery, are exclusively made within the Nottingham " trade-ring," because only there is sufficiently capable labour to be found. 11. Compare " Archiv fiir sociale Gesetzgebnng," vol. IV.. part I., p. 8S. On page 89 particulars are given respecting the weekly wages of the operatives. They are in England twice as high as in Switzerland, in spite of which labour in the English cotton industry is cheaper. Detailed reasons for this arc to be seen above. A.ND UN THE CONTINENT. 121 lias led to an iiiureased production — has been gone through. These facts are based upon communications from Swiss milloAVuers accompanied by detailed figures. Numerous manufacturers and spinners expressly acknowledge the favourable influence of shorten- ing the hours of labour. This opinion is certainly limited in one direction. Mills with out-of-date machinery, which at the same time em})loy the worse, poorer-paid cla«4s of labour, have not been able to participate in this development, by which the same production was crowded into a shorter tima Such mills have without doubt been jtrejudiced by the shortening of the hours of labour, inasmuch a« the (juantity of their production has exjHjrienced in some cases a considerable falling-off. Poor machinery and poor operatives became impossible. The loss witli hand-looms was still more complete — it wiis in exact proportion to the lessening of the time for labour. But these disadvantages for the few show a decided progress for national economy on the whole. But cannot the flourishing state of Indian spinning be used as an instance against the opinion expressed here? Does not this strongest living competitor of England de[)end upon the lower wages which are paid in India? Against this view the researches of the Manchester (^haniber of Connnerce have shown that cheap labour is by no means the advantage of India. According to the view of the Chamber of Connnerce, it lies nmcli rather in the constantly falling silver-prices. In India the buying power of silver falls but slowly and incompletely in comparison with the lowering silver prices in the international market, but in every case the Indian spinner always i>roduces under a higher price con- dition of silver than that which obtains at the time w^hen English yarn is sold in India (12). That cheaper lal)our does not create the strength of Indian spinning is shown already by the fact that in India only the coarsest yarns are i^roduced successfully ; therefore those in which raw matei'ial outweighs capital as Avell as labour. Twist No. 4()\s requires about double as much labour and spinning wages as No. 20's. If cheap labour was the advantage of the Indian si)inner he would therefore rather spin 40's than 20's. Just the opposite is 12. Compare " Bombav and Lancashire" TManchester Chamber of Com- merce. 1888). p. 111. Further, pp. 2. 4. 29, 33, 75. With 20's the cost of labour is the same in Bombay and Oldham. 0-(>2d to 0-G4d. per pound of jam ; bundling costs, on the other hand, 0-44d. in Oldham, against only 0-35d. in Bombay, taking Is. 5d. as the value of the rupee. 122 THE COTTON TRADE IN ENGLAND the case, as he cannot compete with tlie Englishman in counts above 36's, although the latter fetches the raw material and must tciko back the yarn. The difliculty for the Indian spinner increases in proportion as labour preponderates in the costs of production — a ccailirmation of the statement by Tucker already given. On the other hand, the hours of labom* in England are 9, with free Sundays and Saturday afternoons. In India the hours of labour cannot be exactly determined ; in Bombay they appear to be 12 to 13 hours (13), in the interior, more. x\.dded to this, a cessation of labour on Sunday does not exist, but the mill only stops every third Sunday for cleaning purposes. The religious holidays of the operatives are observed by those who are affected receiving leave, the mill working on with the large number of reseive operatives. Wages fluctuate in India between 15 and 8 rupees monthly for adults, and 3 and 4 rupees for young opera- tives. The spinner i)roper receives 15 rupees (H) — i.e., with the value of the rupee taken at Is. 5d., 21s. 3d. per month, the English mule-spinner 35s. to 40s. weekly. This ditference is ex- plained by the fact that in India 3 J to 5 times as many operatives are necessary as in England ; that the more unskilled hands lead to a more considerable wear and tear of machinery (7i per cent, against 5 pei* cent.) ; even that the single spindle itself in Bombay })rwluces lens in 12 hours than in Oldham in 9 (with No. 20's in Oldham oh hanks, in India 5J hanks daily). Schoenhof even calculates that in Lowell 35,000 spindles spin daily just as many lb. of 38's as are spun in Bombay of 20*8 (15). In the face of these facts the English cotton industry does not need to fear India in its finer productions. But Blue-Books already contain facts which point out that peculiar progress of labour in India which is produced everywhere by a vital cen- tralised industry. In Bombay the wages in the spinning-mills have increased in the 5 years from 1883 to 1888 by 30 to 40 per cent., in spite of which it is asserted that the productive capacity of the Indian operatives has increased so much that the cost of 13. East Indian Factories Report (1891). p. 23. Hours of labour in a spinning-mill in Bombay, witbout reckoning stoppages, are 13 : also another instance on page 24 : but on page 25 only 11 to 12 hours; p. 74, 13 hours. The queries as to hours of labour frequently remain unanswered, because '•witness has no definite ideas about time." Thus on page 23. 14. Page 45 of Report just. quoted. 15. Schimhof : •' Influences bearing upon Production " (1888), p. 8. AND ON THE CONTINENT. 128 labour to-day is rather lower than higher. The number of opera- tives, up to this time 5 to G times as many as the English, is to- day in the best spinning-mill of Bombay only 3J times as high (IG) — i.e., does not stand far behind the German. Add to this that the prices of food have not increased to the same extent as the fall of exchange, but that they will rather remain for a long time to come extremely cheap owing to the increasing opening out of the interior by railways (17). This also acts like a rise in wages, and increases the labour capacity. We dare not for a moment tliink that in India it is a question of the introduction of industrial labour into what has been up to now a non-industrial country, as, say, into Russia. On the other hand, India, as an industrial country, was up to the beginning of this century superior to Western countries; it is the mother-country of the textile industry, and up to the time of ArkwTight possessed the monopoly of fine yarns. There is now no doubt that under the attack of the factory system Indian industry launched out into the course which everywhere leads, under similar conditions, tO' pro- gress. To begin with, cottage industry devoted itself to specialties, which, indeed, were dearer than European goods, but were still preferred by the rich of the country as articles of luxury. On the other hand, India plunged quickly and energetically into the factory system, under the protection of the falling exchange. As everywhere in Europe the hand-weaving districts have become seats of the modern textile industry, India also appears destined for the same future. Mr. James Piatt and Mr. Henry Lee, two authorities on the cotton industry, agree with each other by reason of many-sided practical experiences in India, that in no country on the earth, except in Lancashire, do the operatives possess such a natural leaning to the textile industry as in India. "We have not to deal here with a class of savages, but with a people that takes to everything extremely quickly, and which, as experience shows, can be taught w'ith extraordinary rapidity as new spinning-mills continually require new hands" (18). If centralised industrial progress, there- IG. Compare " Bombay and Lancashire." pp. 34, 191. 17. Tax-collectors in the interior prefer bad harvests to good ones, because with good harvests the people have no money, wheat being unsaleable. 18. '* Bombay and Lancashire," p. 295. 124 THE COTTON TRADE IN ENGLAND £ore, also briugs in its traiu the uplifting af tiiu labour serving it, the latest Factory Act would certainly be an advantage lor India, but scarcely for Lancashire. As in the cotton industry, the argument advanced applies also to other modern centralised industries, as far as their productions are measm*abie and are comparable all over the world. In this respect the iron trade comes before all others. From the German Iron " Enquete," in 1878, we find that the cost of labour for a ton of pig-iron amounted to less in Cleveland than in Germany, whilst the English shift-wages were far higher than the German (19). The same quantity of j)ig-iron produced in a day at the German furnaces would cost, in Cleveland only 11 5' 77 marks, instead of 14:5'77 marks in Germany, for labour. The greater capacity of the English and Belgian ironworkers is expressly acknowledged in the Report of the Inquiring Conj mission (p. 3(3). The English ironmaster, Lowthian Bell, confirms this relation. " None of these figures," he says, speaking of the production of jiig-iron per man in Germany, " reach by far the capacity of a worker at the furnaces of Cleveland, and proves that well-nourished and highly-paid labour is by no means always dearer than less well-nourished and lower-paid labour. As a fact, I have scarcely found tliat the cost of labour is anywhere lower than in Cleveland " (20). Similarly, according to Schoenhof , the cost of labour per ton of i)ig-iron is less in North America than in Germany ($1*20 against $1'66) (21), whereas the American wages are known to be double as high and ever higher than the German. It is true the Iron ** Enquete " mentions expressly that in Ger- many also the capacity of the worker has been increased, " in itself as well as by changes in technical appliances." "It is clear from the particulars brought to light that the number of workers en- gaged in the iron industry proper has been reduced, and, indeed, in a higher degree than could be expected, by the almost similar 19. Compare " ProtokoUe." p. 259, Question 8 : p. G98. Question 9 : p. 789, Table 11. Kespecting these latter tables, they can be turned to accoant by combining the average shift wages per worker paid by the " Bochumer Vereiu " with those of the Clarence Works in Cleveland (columns 7 and 8). and by the consideration that the production of a furnace at the Clarence Works amounted to seven-ninths of what a furnace at Bochum produced per shift 20. Quoted by Sch: increase. A four-loom weaAei* receives j>er loom considerably itss than a one- loom weaver ; but he receives per loom more than a quarter of the earnings of the latter. He must receive more ; because otherwise his standard of living could not be higher than tliat of the one- loom weaver. With such a standard of living the four-loom weaver himself would not be possible. A similar state of affairs is seen regarding the hours of labour. By the quicker speed, the lengthening of the machines, etc., a larger production per day is achieved ; a larger production which, on the one hand, allows a curtailment of the hours of laboiir, without which, on the other hand, it would not be possible, since the labour capacity of the operative is fettered to the fixed limit's of organism. By producing in a shorter time just as much as, or more than, was produced formerly in a longer time, an array of fixed charges is cut down. " It is cheaper to exhaust labour- power in than in 11 hours," said an intelligent employer to me. .\fter having already written down the above observations, I find to my joy a thorough similar gi'a.<*p of the question examined in the latest work of Marshall : " Elements of Economics " (Tx>ndon, 1 802). Marshall also accepts the fact that by machinery a reverse development results in regard to division of labour. " Machinery weakens the boundaries between the single branchy of trade" (55). Machinery' tends towards a complete automatic discharging of the work to be done, to the condition which limits the energy of men to the feeding ^vith raw material, taking away the^produced articles, and minding the machine. " That portion of the labour which repeats itself is done by the machine, which becomes more : r ■ 28. From the above-mentioned work. p. 163. But when the action has been reduced to routine it has nearly arrived at the stage at whteh it can bo taken over by machinery. . . . This machinery constantly supplants that purely manual skill, the attainment of which was, even up to A. Smith's time, the chief advantage of division of labour. AND ON THE CONTINENT. 129 and more automatical until, at length, the human hand has nothing to do except put in materials at certain periods of time and to t^ke aAvay the results when they are ready " (p. 167). But if thus the demands which the older system of division of labour required from the hand-skill of men become less, the per- fection of machinery requires other essentials from the operatives. "The finer the accomplishment so£ the machine become, the greater ' the understanding and the more the care which is demanded from those who look after it. Let us think, for instance, of that beauti- ful machine which on one side feeds itself with steel wire, and gives forth, on the other, fine screws of remarkable finish. It displaced, a. lai'ge number of workers who had reached a high stage of skilled hand proficiency, but who led a sedentary life, straining their eyes with the microscope, and who found at their work little room for any ability except the mere regulation of their fingers. But the machine is complicated and expensive, and the person who attendn to it must have reasoning power and a lively sense of responsi- -^r bility, which form a good share of character-discipline, and which, *^ although more frequent than formerly, is still sufficiently scarce to command a high payment." This instance may certainly show in an unusual degree the influence of the machine on labour, but the same is the case everywhere, in a less degree, wherever machineiy replaces hand-labour. It is certain that if industrial progress depends at the present day on the machine, therewith is the necessity foi-med for a, gradual raising of the standard of living of the working classes. We can herewith justify the appai*ently paradoxical assertion that the extent of the standard of living of the working classes is a measur- ing scale of the industrial power of a nation, because it at the same , time shows the degree of technical progress. But in the field of social, as in general of organic occurrences, everything is action and re-action. The possession of high standing and capable labour is action, so on the other side an essential for the application and development of technical inventions and therewith the foundation for the building-up of the great industrial power position of a nation. Not the* countries which employ the lowest-paid hand-labour, but those which use the best and most machinery, prove themselves at the present day the strongest in the industrial contests of nations. K 130 THE COTTON TRADE IN ENGLAND It shall now be shown by English factory labour, especially that of Ijancashire, in which directions it at once comes into account as a result of centralised industrial progress, and, at the same time, as a demander of its further development. B. — The Factory Labour of Lancashire's Cotton Industry. That Lancashire to-day possesses the most capable labour in the cotton industry all expert observers agree. Thus J. C. Fielden, a well-known member of the business world of Manchester, sees in the superiority of the labour the chief strength of I>ancashire (1). A similar view was expressed by the American Consul in Manchester (Mr. B. Shaw), an acknowledged capable judge, in agreement with German employers before the Enquete-Commission (2). "An English operative," says Mr. Shaw, " is satisfied if he has abundant work and abundant wages ; only a few think of changing to another calling (3). ll.is fixity of labour is of great value to the industry, because long experience creates a dexterity in always minding the same machines, which guarantees the most complete regularity, as well as superiority of the results." Samuel Andrew, the Secre- tary of the large Employers' Association of Oldham, condenses the advantages of English labour Into tHeTollo wing words : "We have at this moment the most capable labour in the world. It is born .and brought up well suited and disciplined to its work ; under its wage-lists, with the present improved machinery we can depend upon it fulfilling its duty with the accuracy of clockwork." Upon"%hat do the advantages of North English factory labour depend ? The following points of view can be shown to be valuable : — (a) a high vitality, which finds its expression in greater speed, dexterity, and strength ; (b) the presence of certain mental qualifications which specially suit machine labour ; (c) the peculiar arrangement of labour contracts ; (d) the consumption power of the working classes. (a) The physical superiority of the English factory operative when compared with the Continental is recognised by German 1. Compare a series of articles on Foreien Competition in the Manchester Examiner^ 1882, especially the articles of 28th November and 5th December. 2. "Protokolle," pp. 14, 81, 227. "Commercial Relations of the United States," No 12 (Oct 1881), p. 129. 3. On the other hand in America, according to Sartorius von Wattershausen (" Die nordamerikanischen Gewerkschaften," p. 108), the facility for changing a calling still discloses a certain colonial character in the people. AND ON THE CONTINENT. 131 observers, just as the operatives of the great English industries themselves boast of a physical superiority. Nowhere in England, says the organ of the cotton operatives (the " Cotton Factory Times "), are there so many strong and healthy children as in the seats of the cotton industry. The quickness of the "doffers" (young workers who look after taking off the full and putting on the empty bobbins in the throstles-room) is in Lancashire pro- verbial (4). Regarding the adult worker a German manufacturer says : — " One must see them at a self-actor, with what quickness they doff the full bobbins, or observe the dexterity of the female flyer operatives. Everything is accomplished like a flash of lightning" (5). When machinery was first coming into use physicians and Blue- Books made mention of specific mill diseases ; at the present time the new spinning-mills of Oldham are model hygienic institutions. Plithisis was in the "thirties" a frequent illness of the spinners. To- day, as Dr. Niven, the Medical Officer of Health at Oldham, full of sympathy for the operatives, informs me, it occurs more seldom with spinners than any other class of people in Oldham. The borough of Oldham contains two classes of skilled workpeople — the cotton operatives and machine workers. Statistics show that both classes are far less liable to consumption than the remaining population (unskilled workmen, shopkeepers, etc.). The duration of the sickness is more severe with the machine workers than with the cotton operatives (6). The progress which the English operative has made in health as well as ca]ja< ity compared with his forefathers, depends chiefly on an improved standard of living. The enormous progress in the nourishment of the people which England has seen during this century is a most important element favourable to the capacity for competition of English industry as opposed to the competition of Continental industry. 4. " Lancashire Characters and Incidents," by T. Newbigging (Manchester : Brook and Chrystal, 1891). Compare the chapter about the " Lancashire Factory Doffers. " 5. "Protokolle der deutschen Enquete," p. 81. 6. Compare " Report of Health, Borough of Oldham," 1890. <' From the details given in connection with the experience of former years I conclude that the influences which materially affect the health of the population, as far as lung complaints come into consideration, are to be sought for without the factory gates " (pp. 56-9). Compare, also, Atkinson: "Popular Science Monthly" January, 1890), pp. 317-8 182 THE COTTON TRADE IN ENGLAND The better food of the operatives enpfa^ed in Enjjland's j^eat industry at the present day, compared with that of Enjjlish opera- tives in the "thirties" and the Continental operatives of the present, depends upon two circumstances ; one being the higher w^ages in money, and the other the greater buying power of this money. We have seen above how the development of technical skill made possible an enormously increased production per operative, and therewith a permanent lowering of piece-wages. "We have at the same time given an array of figures to prove that the weekly in- come of the operatives has risen in the same proportion as piece- wages fell, because the progressive technical development de- manded more capable operatives. The weekly income of the operative at the present time in England is higher than in the " thirties," and also than at present on the Continent. Since this high income depends upon lower piece-work prices, it is nothing but a source of strength to English indu.stry. Regarding the general increase of the weekly earnings of the operatives during the last half-century, R, GiflFen, the well-known statistician, says : — " In all cases where in consequence of repeti- tion labour it has been possible to set up a comparison, an extra- ordinary- increase of wages of from 20 to 50 and 100 per cent., and even more is shown. This statement rather underestimates the real extent of the change " (7). In the Appendix to the First Report of the Royal Commission on Textile Depression, the Secretary of the Manchester Chamber of Commerce gives similar statistics. According to these^ the income of the operatives from 1850 to 1883 has increased for : — Cotton spinning and weaving, medium coants, bv 74*72 per cent. ., ,, fine ,. ' 35-16 „ Bleaching and printing .. .. ,, .'SO-OO ., (8) 7. Compare R. Giffen: " Progress of the Working Classes" (London, 1884), p. 6. 8. Compare p. 99 ; further, the Appendix to the Second Report, pp. .376-7. These statistics are. as a fact, not unchallenged ; they are corrected by the author himself in the Second Report, but without materially giving other results. On the other hand, D. Chad wick ("The Expenditure of Wages." paper read before the British Association. Manchester. 1887) declares that the percentages given are too high. Since 1860 the earnings of cotton operatives had, howevor, certainly increased by 10 per cent. (p. 8). R GiflFen, the leading statistician in England, accepts the figures of G. Lord. Compare R. Giffen : " Recent Changes in Prices and Incomes" (Royal Stat Society, 1888, p. 20). AND ON- TtiE CONTINENT. 133 The same thing is showu if we compare the weekly rate of wages given by Baiues with those contained in the official statistics (9). From these facts we have the pictm'e of a formidable rise in wages which has taken place in Lancashire during the last centmy. The ulHcial figures are, however, not quite free from criticism. General statistics of wages which can be depended upon are unfortunately not at hand, because no census of the wages conditions of all the operatives employed is available in the cases given. A comparison which referred to the wages paid to the same classes of operatives in the same mill appeared to me, therefore, to be the most free from criticism. I was fortunate in receiving the following figures from the wage-books of one of the largest and most renowned spinning firms in Lancashire. Since the firm chiefly spins fine yarns, the wages are j)ai*tly higher than the average wages of official statistics mentioned alongside. But whilst the latter claim only an approximate accui^acy, the first are authentic. WEKKLY WAGK8. Official avernge figures. is:ii. 1850. 18«3. 1886. 8. d. 8. d. 8: «1. s. d. s. d. Labourers . 15 15 20 Mechanics.. . 27 27 33 — Carders : — 1st class . 30 27 32 37 11 2nd class . 15 13 G 21 28 10 3rd class — — 24 10 Drawing-frames (girls) . . y 8 3 14 12 5 to 15 4 Preparation . D 8 3 14 14 „ 14 3 Combing (women) — 8 6 15 G — Jack tenters — 8 16 G — Spinners . . . 35 40 42 35 G Helpers . 14 13 16 14 2 A similar state of affairs results from the wages of a firm, just as old and important, in the neighbourhood of Manchester, which combines spinning and weaving. WEEKLY WAGES. j 18.32. im. ^4^ 8. d. 8. d. [J Spinner — 1st class , . 35 39 ^ „ 2nd „ 28 2 36 ,, 3rd ,, 28 2 30 Dresser 30 G 36 Weaver 12 18 t). lieport of the Board of Trade : " Return of Rates of Wages in the Triucipal Textile Trades," 188U. Baines, pp. 444-5. L 134 THE COTTON TRADE IN ENGLAND These are the wage conditions of two of the most respectable firms in Lancashire, which were already quoted by Ure and Baines for the first decades of the century as instances applicable to the industry of the county. If the raising of wages depends upon technical alterations, and, therewith, growing demands on the working capacity of the opera- tive, it was the development of centralised industry, of the factory system, which also raised the income of the operative in another direction. The chea-pening of food, moving parallel with the in- crease of wages, is not an accidental occurrence, but is the result of the economical development delineated. This appeared the most effectively in the productions of centralised industry themselves ; the striving after cheapening the coats of production and, there- with, of the goods, forms certainly the motive for the technical progress. For instance, in the cotton industry the prices since the " thirties " have gone down by at least one-half. Cotton yarn, per lb. (10) Cotton woven goods, per yard. No. 408. No. lOOs. 8. d. 8. d. 8. d. 1830 ... 1 2^ ... 3 ^ 1839 5^ 1882 ... lOi ... 1 10 1882 3 Such a development also took place with other productions of in- dustry. But the cheapening of food was also, as mentioned above, the immediate result of industrial development. The com duties fell, as soon as the export interest had become predominant, because every burden on the chief imports represented a burden on export. If the economical development on the one side made the English operative the highest paid in Europe, it made England at the same time one of the cheapest industrial countries. The price of wheat in the decade before the repeal of the Corn Laws was 58s. 7d. per quarter ; in the decade 1872 to 1882 only 48s. 9d. (11). But just as important for the operative was the equalisation of prices, since formerly famine prices alternated periodically with extremely cheap prices. In 1836 the price was 368. ; 1838, 1839, 1840, and 1841, it was 78s. 4d., 81s. 6d., 728. lOd., 76s. Id. In 1812 we find even an average price of 1268. 6d.; in 1813 109s. 9d., and 10. Compare Ellison: " Cotton Trade," p. 61 ; Giff en : " Progress of the Working Classes," p. 11. Merttens: Paper read before the Manchester Statistical Society, April 18th, 1894, p. 129. 11. Compare Giffen, pp. 8, 9. AND ON THE CONTINENT. 135 1817 96s. lid. Such variations in prices represented a complete uncertainty of existence for the operative. Regularity of living conditions is the first essential for a regulated standard of living. According to Chadmck's estimates, which refer to retail inter- course, prices for food fell from the "thirties" in the following proportion (12). An operative's family, consisting of man, wife, and three children from two to seven years of age, requires weekly for food : — Prices for similar quantities in I— Bread, etc.: — Eight 4 lb. loaves . . ) 6 lb. of flour . . V Half-peck of oatmeal) II.— Meat : — 5 1b. beef .. ..) 2 lb. bacon . . . . J III. — Accessories : — 40 lb. potatoes 7 qts. milk Vegetables, etc IV. — CoLOxiAL Products, ETC, including: — 3 lb. sugar . . .,\ ^ lb. coffee . . . . ( i lb. tea . . . . I 1 lb. butter . . . . J Totals . . ;:l 18S7. !. d. 3 Ui 4 6i 1S59. 8. d. 4 0^ 4 3 6 11 1849. 8. d. 4 5 4 3 1839. 8. d. 7 6 4 0^ 4 3 18 5^ 20 6^ The following were the prices of the most important necessaries : — Pence. Flour, per lb. . . . 141 Fresh meat, do. 6f Bacon, do. '. 2/2 Tea, do. Sugar, do. .. 2 Soap, do. . 3 1859. Pence 1 66 8 1/- 5 4 7 li 8 9^ 21 5^ 24 9 tant necessaries : 1849. Pence. 1-83 7 [) 4/4 5 5 1839. Pence .. 2 ;: P .. 6/. .. 7 .. 5 At present, however, there is a reduction of from 5 to 10 per cent, on these prices for articles which are supplied by co-opera^ tive stores, which is the usual mode as regards the better-situated operatives of centralised industries. House-rent has risen little. 12. D. Chadwick : " Expenditure of Wages," read at the British Association, Manchester, 5th Sept., 1887. l3t) THE COtTOK TRADE IN ENGLAND but in this respect the demands are also higher, the operatives requiring better accommodation. Taken generally, the operative only succeeded by co-operation in benefiting by the lowering of prices. The majority of the cotton oi>eratives of Lancashire are members of the co-operative stores. What a small advance on wholesale prices the operative in buying retail has to pay I determined in the summer of 1891 for the chief seats of the English textile industry-. Since the co-operative societies mostly pay back 10 per cent, dividend, their selling prices to-day are not lower than those of the retail shopkeepers, whose profits have been considerably cut down by the flourishing of co- operative societies. Let us follow a pound of wheat on its way froni the merchant in Liverpool to the operative's home. The sole intermediaries are the co-operative corn mills and local societies. Tlie prices of these latter societies are fairly equal tliroughout the whole of the North of England. In order, how- ovei-, not to err on the side of cheapness, I expressly choose a society which is a considerable distance from the corn mill, so that the cost of carriage is included in the price : — Star Corn Mills, Oldham. Darwen Co-op. Sociktv. Consumers* respective average price per lb. flour. Pence. 1-47 132 118 114 115 112 lis Tlie prices of a pound of flour were very little higher in Bradford, the seat of the woollen industry. Thus in 1889 and 1890 a pound of flom- cost, on the average, 1*3 Id. Tlie lowness of these prices comes so much the more into account since the operatives receive 7 J to 10 per cent, on the amount of their buyings from the co- operative societies. But wheat flour is at present the most im- portant food of the English operative. In the North of England it is baked at home by the -wife. The price of bread, which is seldom bought in Lancashire, amounts to Jd. per lb more than the price of the flour. 1888 Wholesale average price of the wheat bought, per lb. Pence. 1 0«J Selling price of flour at the ca mill, per lb. Pence. 142 1884 0-94 127 1886 0-86 113 1886 82 109 1887 0-87 110 1888 0-86 107 1889 083 108 Beef, per lb. Pence. 8| Mutton, per lli Pence. 8' :: {>* 8^ 9i 7i D? 7 8^ 7^» 8* 8 4 8 11 8 lOi AM^ ON THE CONTINENT. 137 Prices of meat in the shops of the Co-operative Society at Darwen were the following, and are approximately tlie same in the whole of Lancashire : — 1883 ... 1884 ... 1885 ... 1886 ... 1887 •... 1888 ... 1889 ... 1890 ... 1891 ... Tliese figures are, however, average values, in wliich very ditierent prices are included. For instance, in England, even in the co- operative stores, extremely variable prices are paid, according to the quality of the piece. Tlius, during the last few years, legs of mutton and beefsteaks cost Is. per lb., against which the prices of ordinary but good pieces of beef and mutton and pork were as follows (all in the same Co-operative Stores at Darwen) : — Beef. Mutton. Pork. Pence. Pence. Pence. 1888 6i 71 7 1889 ... ... 7 8} 8 1890 ... ... of 8| 8 1891 of 8J 8 Pieces of lower quality were sold at 4d. On the average Id. per lb. is paid back as dividend. I also add, as well, the following retail prices, also co operative society's average figures : — Su^ar, per lb. Butter, per lb. Pence. 8. d. 1870 ... G34 1889 ... 374 1 1 1890 ... 351 I 2 1891 ... 2-99 \ .... 1 3 What has been said shows an extraordinary cheapening of the most important necessaries during the course of the century (13). Just as favourably stands the English operative to-day compared with his Continental brother. The following comparison refers to the same week in February, 1892 ; it concerns the prices of food in Chemnitz and in Hyd© (near Manchester, occupied exclusively in 13. Compare Porter : " Progress of the Nation," p. 543, and Giffen. 138 THE COTTON TRADE IN ENGLAND textile industries), and is given in German weights and measures Flour (1 German lb.) Bread ,, ,, Beef (14),, Beef ,, „ Bacon ,, ,, Sugar „ ,, Potatoes „ ,, Milk (1 litre) Hyde. Chemnit?. Pfennige. Pfeiinige. .. 16 22 ... 18 (wheat) 15 (rye) ... 75 to 80 80 66 to 70 (with adjuncts) .. 63 to 73 80 to 90 .. 27 to 28 30 to 34 .. 52 52 .. 15 to 22 20 In Hyde a dividend of 14 per cent, is paid on the sales; in Chem- nitz, in shops, 65 per cent., in co-operative store, 8'3 per cent. (26 pfennige per 3 marks). The higher wages, in connection with the lower food prices, make })ossible an extraordinarily good nourishment of the English opei-ative. The English workman lives on meat and wheat-flour bread, whilst potatoes mostly form the chief sustenance of the German factorj^-worker. If the Einglish operative, as shown above, minds two to three times as much machinery as the German, he also- certainly eats two to three times as much — not in quantity, but in nourishing value from a physiological point of view. (b) In the second consideration there are certain mental qualifi- cations which make the English operative specially capable for working on the machine, the achieved results of a development now almost a hundred years old. In Lancashire, not only were the fathers, but even the grandfathers of the present race machine spinners and weavers. It is thereby shown how untrue the assertion was that machine labour pressed down the mental level of the operative. The Eng- lish cotton operative, as well as the North of England factory worker in general, is to-day a son of the generation of technical skill. Technical problems awaken his most lively interest. The fact stands alone of its kind, that the organ of the cotton opera- tives in Lancashire, the " Cotton Factory Times," always has a 14. In England the single piece of meat is sold, according to quaUty, at various prices ; so-called adjuncts (bones, etc.) are not to be found. These latter are generally sold separately. AND ON THE CONTINENT, 139 considerable amount of technical discussions. The contributions of operatives ai'e said to be often, from a practical point of view, so admirable that the paper has subscribers among English fore- men and managers in spinning-mills in India, Japan, and Russia. Interesting for the Continental observer in a similar direction is a visit to some machinery exhibitions in the industrial districts. The operatives here crowd around the exhibited objects and discuss their advantages and failings. It is also a remarkable fact that the trade society of the spinners lets the capability for its secre- taryship of the Amalgamated Societies depend upon a purely technical examination; the answering of questions in writing under control is specified. The "Cotton Factory Times" also urges the greatest possible use of the aid of technical training on the part of the operatives (15). This advice is followed so much the more frequently because the " limited" principle of the cotton industry in England, as in India, grants to young people with technical knowledge from the operative classes at the present time manifold opportunities for bettering their position. A mark of the technical inclination of the English operative is the Mutual Technical School (16) at Oldham, founded solely by operatives. In it there are lectures, in which the members mutually teach one another about the particular branches in which they are specially at home. Business managers and similar practical people also give lectures here. The school has gradually acquired the possession of all the various machines of the cotton industry. It is exclusively under the control of the operatives. What has been said shows how the opposition, even hatred, against machinery which permeated the operative in the first period of centralised industry, and is often acquiesced in by phil- anthropic observers, has in Lancashire at the present day been put on one side. If the operative still hopes as hitherto for social progress, he knows that the means lie inthe extension of machinery. But how essential a control full of understanding is for the machine to be worked, and this latter's suitability to the nature 15. Compare also, for instance, Commission on Depression of Trade, Second Report, part I., 5,055, 5,170, where the Secretary of the Spinners' Association expresses himself in favour of every possible advance of technical instruction. 16. Denton-street, off Clegg-street, Oldham, 110- THE, COTTON TRADE IN ENGLAND of the raw material for a qualitative as well a^ quantitative good result, evei'y practical man is awai'e (17). This is not the place to speak in detail about the way in which technical education is being energetically pressed forward at the present time in England. In that it affects the working classes in a high degree, it differs from the acknowledged splendid efforts in the same direction in Germany. Tlie latter produces distinguished trained teclmical men, not only for Germany — whose demand has not kept pace with the supply — but also for competing countries, especially England, whose labwatories, mills, and technlQal educa- tional institutions are f^'lled with German exi.>erts. As opposeses of scarcity of work mostly help their members, whilst in Germany an efflux of labour has to be feared, or the operative has to depend upon poor-relief. Whilst the English employer possesses, through the trade unions, the advantage of easily obtaining labour and just as easily dispensing with it, the German employer still seeks to attach the workman by money clubs, etc. This patriarchal social policy, also once customary in England, has to-day made room for a purely contracting relation. (d) Tlie operative comes into account in the industry, not only as producer, but also as consumer. Whilst centralised industrial development increases the quantity produced, it evolves, on the other hand, an extensive population capable of buying. This is th*? condition of its own existence. Without it the centralised industrial development would only be an episode, and would come to a standstill as soon as the as yet non-industrial nations had ostablished their own industries. But thus every industrial nation /extends permanently the home market to the lower classes, and obtains selling markets in the same proportion that other nations become industrial, and, therewith, capable of consumption; as, for instance, the two industrial countries, England and Germany, are to-day the most important markets for each other (24). Before the modern economical development set in, only limited portions ot the population were customers of the industry. The countryman especially, in general scarcely drawn into the world's market, made his owti clothing, as is still done in portions of the European Continent (25), and even in certain districts of what were formerlv the purelv agrarian Southern States of North America (26). The arising of the world's market brings forward with centralised industry the new class of industrial operatives, who for the satisfy- ing of their wants are forced to buy from the commencement. This consuming power, at first slight, rises hand-in-hand with technical progress and cheapening of food — both results of cen- 24. Compare Ellison : '• Cotton Trade," p. 152, and Lotz, p. 202. 25. If, for instance, Viebahn (III. , 952) still gives, together with 394,865 hand-looms in cottage industry, 387,969 as partially used, this refers to the very frequent, even to-day not quite stopped, home production, in peasant circles, of clothing at the end of the ''sixties." 26. Compare Atkinson : "Distribution of Products," p. 121. AND ON THE CONTINENT. 145 tralised industrial development. But more and more does the interweaving of isolated industries seize upon the circles which up to now kept aloof. The countryman also produces more to sell than to use. English centralised industry, still in the "thirties" depending upon an under-nourished factory proletariat, stands to-day upon the wide basis of an operative population with high capacity for consumption. Still in the "thirties" were the wages in Lanca- shire not sufficient to cover even the needs of ordinary food; products of industry were not bought. To-day the raising of the weekly earnings and the cheapening of foodstuffs grants a con- siderable surplus above living necessities. This is the reason for that astonishing use of industrial productions, especially the results of the textile industry, as the operatives' budgets to follow will show. But it is to be mentioned that the class of industrial workers capable of consumption is by no means limited to Lanca- shire. It extends as far as the English centralised industries reach. Machine workers, shipbuilders, miners, and partly, also, workers at iron furnaces, enjoy a somewhat still higher standard of living than cotton operatives. Also the farmer and agricultural labourer are to-day completely drawn into the market ; the Scotch " Jack of all trades," of Eden, has also disappeared from isolated districts. Far remote, only to exchange the surplus of his farm, the countryman produces to-day, solely for the wants of society, productions which he perhaps does not need for himself. This so much the more because since the repeal of the Corn Laws he threw himself upon specialties; for instance, meat of good quality, pedigree-horses, garden products, etc., for which the industrial development, on the other hand, pushed forward customers capable of paying. The more legislar tion, as it has already done in Ireland, favours small landed pro- prietors, the more does a new home market for English centralised industry extend (27). 27. Compare, concerning the influence of exchange between centralised industry and spade culture, what Atkinson (" Distribution of Products," p. 77) relates about the farmers once producing wheat in the State of New York. By going over to spade work, for which the industrial centres were close customers, they removed themselves successfully from the competition of the large central- ised corn producers of the West. Wheat, unlike rye, requires the addition of vegetable food. Wheat contains not only more nourishment, but is easier to assimilate ; therefore vegetables are necessary in order to bring the digestive organs into play. L 146 THE COTTON TRADE IN ENGLAND Especially important for the textile industry is the consuming power of the masses. The development of the use of cotton goods is given by the following figures : — CONSDMPTION OP COTTON GOODS IN EnGLAXD. Per head. In £1.000. In 1.000 lb. 1820 ... 13,044 ... 35,620 ... 1-5 lb. ... Is. ( 25,960 ) 1885 ^ (incluiing imports, J- 201,800 ... 5 3 1b. ... 1-558. ( 28,217) ) These figm-es show a considerable increase of the consumption, and give at the same time an idea of the cheapening of cotton goods. The estimating of the use of other textile stuffs is met by certain difiiculties (for instance, the uncertainty of the quantity of raw wool produced in England itself). We must therefore loc^ to the operatives' budgets communicated below, by which an extra- ordinary capacity of consumption is shown. We shall in these, in the case of some families of the cotton operatives of Lancashire, which by no means form exceptional cases, meet with yearly outlays for clothing which reach the total earnings of an adult operative of the German textile industry — indeed, even exceed them. (German industrial employers before the examining "Enquete- kommission " are right in looking upon the smaller consumption of the German operative as a disadvantage as compared with England. Indeed numerous examinations of later years give the result that in general only the outermost fringe of the industrial workers of Germany buy new articles of clothing (28). The proofs of this statement have been collected by Herkner. Especially important, as well, are the published workers' budgets from the German Freie Hochstift of Frankfurt a/M. Indeed these researches show, like those whicji I undertook in Saxony, that not only in the case of operatives of the German cottage industries, but also in those of an important portion of centralised occupations, the wages must be exclusively applied for food. If the masses in Germany possessed the same consuming power as in the United States or in England, Germany could dispose of more than double the amount of its whole export in textile goods 28. "The Social Position of the Operatives in Mannheim" (Karlsmhe, 1891), pp. 245, 250. Herkner: *< Social Reform a Law of Economical Pro- gress" (Leipzig, 1891), p. 55. AND ON THE CONTINENT. 147 in its own country (29). Germany stands also in this respect on the step of the economical development which England had attained in the "thirties." The replacement of labom* by machinery is still comparatively slight, and therewith Germany also still lacks that operative, just as capable for labour as for consumption, which forms to-day the strength of England. In consequence of this the farmer has also not yet the market for the products of his garden and spade which make him himself a good customer, capable of paying for the productions of centralised industry. IK — Comparison of the Costs of Production in England and Germans/, The rising markets of the world have evolved the modem method of production on a large scale, and in the first instance in the cotton industry. But other trades have rapidly followed in this latter's footsteps, especially the iron industry, machine making, and shipbuilding, so that at the present time English national economy bears a centralised industrial character. This progress was a consequence of certain historical conditions arising from certain natm-al advantages of England. But the latter as per- manent elements must give way to the continuous cheapening of the costs of production. The industrial strength of England de- pends no longer in the first instance on those natural advantages, but rather on the fact that English national economy has farthest advanced the technical, commercial, and social results of modern centralised industry; and that therewith, both by employers and employed, that psychological change has been most developed — that psychological change which, we noted above, occurred with the departure from the customary foundations of the old methods of trade. The onward-driving wheel of the advancement was the pressure or demands of the world's market. Seen from this point of view, the fact will be easily understood that at the present moment the costs of building and running mills, and of raw materials and finished articles in the greatest staple industry, are the cheapest in England. 29. Compare Schonhof: "Industrial Situation" (New York, 1885), pp. 54-6. 148 THE COTTON TRADE IN ENGLAND We will follow this as regards the cotton industry. In spinning as well as weaving the cost of a mill is cheaper in England than anywhere else in the world. This depends on two facts. One is that, in consequence of technical progress and commercial organisa- tion, almost all the requisites for putting up and working a mill are cheaper in England than in the remaining industrial countries. Then remains the fact that the English capitalist, when building or establishing a business, thinks mostly of turning to good account a momentary favourable opportunity rather than of a permanent investment. He therefore saves fixed capital, in order to have as much untied money as possible at his disposal for carrying on the business. The lifetime of a spinning-mill, for instance, is usually assumed to be not longer than 20 years. Tlien, besides this principle we have shown, it must be noted that land in England for industrial purposes is in most instances not bought outright, but only taken at a rental for a certain term of years. Under such conditions all luxurious additions which are not essential for the object of the undertaking are more or less eschewed from the mind. Although we cannot assert, as well, that land for industrial buildings is cheaper, England in this respect has also certainly an advantage. German factories are situated either in the midst of traffic communications, where the ground is extraordinarily dear, or are dispersed in the country, where the cheaper price of land is counterbalanced by hiprher costs of maintenance. In this respect English industry has the ad- vantage of its collectiveness and its division of labour. The factories of Lancashire enjoy all the advantages of extreme cen- tralisation ; but as they leave commercial centres and establish themselves in smaller industrial places, and in the vicinity, they enjoy almost agricultural prices of land. A second consideration is the cost of building^s. Bricks and stone are cheaper in England than on the Continent, a consequence of the technically further advanced and larger proportions of the brick industry which are made possible by the steady demand of an exceedingly great industry (1). But still more important is the difference in price of iron equipments, which in new mills play a continually increasing part. Iron prices differ from those on the Continent by about the amount of duty and carriage added to- 1. Compare " Protokolle," p. 80. In England 1,000 bncks cost 14s. to 158. ; in Stuttgart, 27s. AND ON THE CONTINENT. l49 gether. Building labour in England, in spite of the higher weekly wages of the workmen, is also cheaper than on the Continent. We ai-e reminded in this respect of the particulars given by Lord Brassey (2). According to his experience, English bricklayers and navvies generally work cheaper than Continental or Indian work- men, who receive far less wages. The greater becomes the advantage of England the more we tmn from natural materials, such as land, bricks, and ii-on, to those in whose production labour and capital take an important position. The advantage of England in this respect is tremendous. The centralisation of the cotton industry in Lancashire has caused the concentration of corresponding machine-making establishments, with thousands of workpeople. Such works as Piatt's, of Oldham, Dobson and Barlow's, of Bolton, and others, which furnish for the most part machines for a special branch of trade, can only arise in the centre of a large industry of the foremost rank. The making of machinery also enjoys therewith all the advantages of division of labour in producing on a large scale. The same progress which we have observed in the cotton industry led also in the making of machinery, in spite of a continual advancement of the weekly wages of the workmen, to a progressive cheapening of the pro- duction. What importance in this respect the displacement of hand-work by machines has had is shown, for instance, by the remark of Sir Joseph Whitworth, according to which the planing of a square foot of cast iron in 1826 cost 12s. by hand, against which, to day it costs by machinery only 1 s. Machine works have also arisen in Germany wherever a textile centre has been formed — thus, in Alsace. German machine- making is, however, still beliind the specialisation attained in England. Just as the German textile industry is wanting in con- centration, so does the corresponding machine-making also lack the advantages of that division of labour attendant upon concen- trated industry. To make machinery for the cotton industry now and then alongside with other machinery is unprofitable. At the time of the German Enquete machinery for spinning was still mostly, that for weaving almost generally, obtained from England, although the charges for packing, duty, carriage, etc., amounted to from 30 to 50 per cent. (3). Even into Alsace itself was English 2. Brassey: "Work and Wages" (London, 1872), pp. 68, 78, 198. 3. Compare " ProtokoUe," pp. 18, 403, etc. 150 THE COTTON TRADE IN ENGLAND machinery imported. It also appears, according to statements before the Enquete Commission, that the prices of machinery in the recent decades had by no means gone down as in England. In a similar direction tended the changing of the tariff in 1878, since English prices plus duty and charges are looked upon, even to-day, as the basis for the machinery required by the cotton industry in Germany. I am indebted to a celebrated expert for the following particulars in this respect, whereby it may be noted that the difference in freight to Leipzig and to South Germany is only slight : — Price at Oldham. Marks. Bale-opener — gross 7G, net 53 cwts. . . 1,275 Exhaust opener and lap machine, with lattice apparatus and regulator — gross 185, net 138 cwt. . . . . 0,420 Scutcher and lap machine, with regulator —gross 81, net 04 cwt 2,099 Carding engine, with 100 flats, without clothing — gross 08, net 50 cwt . . 1,752 Drawing-frame, with 3 heads of 7 de- liveries — gross 123, net 107 cwt. . . 3,247 Slubbing-frame, 82 spindles — gross 100, net 88 cwt 2,669 Intermediate frame, 128 spindles— gross 110, net 90 cwt 3,383 Roving-frame, 104 spindles — gross 100, net 91 cwt 3,315 Ring-spinning frame, 400 spindles — gross 120, net 100 cwt 3,519 Sell -actor, 880 spindles, IJ in. gauge — gross 163, net 125 cwt 4,041 What has been Siiid is sufficient to show that English machine- making bears in a high degree the same character as that which we have proved as peculiar to the centralised industrial develop- ment of the cotton industry ; the same organisation and division of labour ; the same continuous advance in the cheapening of the costs of production, brought about by the replacement of labour by capital ; the same cheapening of the costs of labour, accompanied at the same time by an increase in the weekly earnings of the workers. English machine fitters, with whose productions in many cases competition on the Continent seems impossible, stand, how- ever, on the average above the highest class of cotton operatives — the mule-spinners — and are really the aristocracy of England's labour, as well as, in general, of that of Europe. Already at the Price on quay at Hull. Marks. 1,500 Price at Leipzig. Marks. 1,766 7,180 7,845 3,140 3,434 2,120 2,365 3,820 4,293 3,140 3,500 3,980 4,375 3,900 4,281 4,140 4,574 5,400 5,950 AND ON THE CONTINENT. 151 beginning of the " seventies " they obtained a nine-hours day, and at the present moment stand in the midst of the practical intro- duction of the eight-hours day (3a). With the greater development of machine-making England possesses the leading technical position in the cotton industry; for to-day it is almost always from machine works that the technical advances emanate ; for instance, the introduction of the self-actor by Roberts and the recent perfection of the ring-spindle by Brooks. But the cost of founding a business, for main power as well as working machinery, becomes less with the extension of the whole establishment, which means, by the greater average size of mills in English spinning, a further advantage for England. The cost per spindle is therefore lower in England than in Germany. Tlie following figures for England were obtained by me in making inquiries in the summer of 1891. Oldham. Alsace. Germany, ^ ^ -^ According to the minutes of the Enquete Commission. No. 20's 248. . . 60s, \ Average cost Oldham medium (32'8 to | ^^^ b.«„ per 40's) .. .. I -'"^- •• ^"^' r spindle, No. 60^8 268. 6d. . . ? j 45s. to 55s. In the 71 limited spinning concerns of Oldham, which were founded in the middle and end of the " seventies," and had then passed through a business crisis, in which therefore the depreciation could only amount to very little, there stood in 1883 in the books 4,217,008 spindles, valued at £4,402,291. According to this the cost per spindle would amount on the average to about 21s. — a result which agrees with the above particulars. In exceptional cases there are, however, in England spinning mills which are built far cheaper — for 18s. or 19s. (4). Apart from these excep- tions there is a slow but continuous cheapening of the establishment costs perceivable in Lancashire, whilst according to the German Enquete the same thing does not apply to Germany, or at all events only in a far slighter degree. In France, since the war, the price of the spindle has even risen about 18 per cent., and still remains above that in Germany (5). 3a. Fifty-three hours per week is the present standard. — Translator. 4. Andrew : " Fifty Years' Cotton Trade," p 6. 6. Compare Jannasch: •' Europaische BaumwoUindustrie," pp. 28, 29. 152 THE COTTON TRADE IN ENGLAND In the same maiiDer the cost of English ioonis is also less than those of the Continent; though comparisons are here more difficult than in spinning, because the width and the variation of the goods lo be produced have a great influence on the cost of the weaving as well as main-power machinery. Thus, for instance, before the Enquete Commission the particulars regarding the cost of a shed per loom varied between 666 marks (printers' calico) and 1,500 marks (plain twill and fancy calico). In England the establishment costs per power-loom go down to 350 marks and less. In Burnley the average cost per power-loom for buildings and engine amounts to £13 ; for the other machinery from £5 to £6 ; together, therefore, £18 to £19. Advantages similar to those in the establishment costsare pos- sessed by England in the matter of the working costs of the cotton industry. The same applies, according to the usual division, to interest, cost of raw materials, wages, and the so-called general expenses. To these the jirolits are to be added, N\hich must be included in the selling prices quite as much as the amounts just mentioned. Here also the same thing applies as above for the establishment costs. Also the expenses of working have been reduced, for the whole of the heads mentioned, in the course of the century, not however to the same extent, but rather more in the degree that, the moment Nature retreats from Labour and Capital, in the same degree grows the superioi'ity of England above its competitors. In the first instance the so-called general expenses of working come into consideration. England has also here an advantage as far as it concerns products of centralised industry, which are produced dearer on the Continent and are subject in many cases to duties — oil, tallow, sizing ingredients, cards, bobbins, paper tubes, shuttles, tying-up cord, etc. On the whole, however, the advantage of England in this respect is comparatively the least ; for instance, the cheaper price of coal is connected with a much greater waste in burning materials (6). With respect to the raw material there is also a permanent cheapening to be observed — one reason being in consequence of the increased planting of cotton and the growing competition of the producing countries. But chiefly is it to be ascribed to the 6. Compare Jannasch, p. 86. AND^ON THE CONTINENT. . 153 constantly further perfecting of the cotton market at Liverpool. According to a detailed estimate in the German Enquete (7), middling Louisiana, in 1878, cost in the English mill 113'55 marks per 100 kilos.; in the x\lsatian mill 123*84: marks. This difference will be apparently further increased in favour of England by the completion of the Ship Canal to Manchester — a cheapening of carriage which will be as advantageous to the import of food- stuffs as to the export of manufactured articles, and should cause the long-planned canalisation of the Upper Rliine to be postponed no longer (8). If German spinners in many cases at the present time buy in the producing country, this certainly means an advantage in so far that they free themselves from the extra expenses in Liverpool. But by no means does this method replace a home cotton-market. German spinners must buy on stock 4 to 5 months ahead. They have therefore to determine their wants long before the time when they know the future demand, and therewith run the risk of a fall in the price of cctton. They can also draw upon Gerinany at an exchange disadvantage. The English spinner buys, as we have seen, from week to week, at the prices ruling in Liverpool, so far as he does not seize favourable opportunities of covering (9). And so with the weaver. The cheapening of the yarn manipu- lated by him has made itself felt far more than the cheapening of cotton, since the fall of prices is more pronounced in proportion as the element Nature is overcome by Capital and Labour. The progressive cheapening of the raw material has also to be regarded as a general result of centralised industrial development, in any case so far as it depends upon improved methods of pro- duction and improved trading organisation. Indeed this develop- ment can be blocked by the nature of the raw material, as a product of nature limited in supply. But then technical progress produces 7. Compare " ProtokoUe," p. 358. 8. The importance of waterways is shown, for instance, hy the " Proto- koUe," p. 19, regarding cost of carriage to Alsace : — Cotton per Kilo. In Summer, In Winter, up the Rhine. per rail. East Indian 4-02 pf 5*42 pf. American 4-69 6-29 ,. 9. Compare, for Germany, " Report of the Enquetekommission," p. 85. > 154 THE COTTON TRADE IN ENGLAND mostly equivalents, as cotton itself has largely become an equiva- lent for the dearer wool (10). As we have already spoken of the continuous lowering of the costs of labour within the centiuy, and of the advantages of English producers in this direction as against the German, there remain here only interest and profit still to be touched upon. As long as the profits do not depend upon a monopoly, as was generally the case in the first stage of centralised industry, already referred to, they resolve themselves into two elements ; one in an insur- ance premium, which is paid to the capitalist for venturing his fortune in a more or less risky undertaking ; then the employer's wage, which, again, is retained for two reasons ; one for the putting to work at a favourable juncture, then for the technical and com- mercial management of the existing business. It is now clear that, first, the insurance i»reniiuni falls witli the falling rate of interest. This will bo so much the more the case as the risk is partly thrust upon wages, which, according to the stiito of trade, rise or fall. But the real wage of the employer also falls, and certainly, in proportion as technical and business training become general, its special value therewith falls ; and, on the other hand, the growing division of labour simplifies the dangers to be overcome. For both reasons the degree of profit in England has gone down more than on the Continent, and &ven capital and intelligence is applied to the industry when both have been long frightened back on the Continent. Centralised industry, called into being by individually highly-gifted pioneers, after it has been founded, needs no longer the genius of an Arkwright. The capacities which it now demands are especially to be found frequently in the seats of a high-standing working population. Hence the remarkably lower salaries of directors of limited spinning-mills in Oldham. And there is another consideration : the social standing of the millowning class always forms an even more considerable portion of its payment. Where bourgeoise society is the first in the State, where industrial callings are highly valued in society, the beet powers turn to them even without the enticement of exceptionally high profits, which otherwise seek honour and position in official situations, and partly place their capabilities at the disposal of 10. We think on the quantity of substitutes which are formed from coal, without seeing a limit in the future, in the replacement of iron by aluminium, the attempts to produce starch (food) from celluloid (wood). AND ON THE CONTINENT. 155 the industry of other countries. In the German Enquete it was correctly perceived that the social standing of trade callings in England formed a strong point of the industry there (11). This is a circumstance of economical importance, upon which for the greatest part depends the strength of private initiative in all branches of undertakings in England. But still something else has to be taken into consideration. In the first stage of centralised industrial development class differences are unavoidable, which ai*e mostly filled with extreme bitterness and hatred. These conditions will also influence in an increasing degree the profits, because they cause many capable powers, and perhaps not the worst, to avoid the industry, or with- di'aw from it earlier than necessary. We certainly see how under such conditions great employers often belong to the most hated men of the nation. Where, on the other hand, social peace is opened out by centralised industrial progress; where the most enlightened operatives, of their own free will, return their em- ployers to Parliament, for instance, as not seldom happens in the North of England, the position of the employer acquires a meaning which certainly comes into account as ideal property. For as such the feeling is certainly to be reckoned, to stand at the head of those who give back to the nation the inner peace. lie who has been fortunate enoui^h to enter the house o£ a David Dale, which hi filled with tokens of remembrances from operative societies, arbitration boards, etc., in a field which was formerly torn by the bitterest class struggles will value the point of view just presented. If thus profits, as far as a sort of wage is concerned, go down, so also in the last respect the rate of interest. The continual lowering of the rate of interest is also a result of economical progress. Whilst formerly loans were chiefly taken for consumption purposes, they are in the arena of the economical system of to-day in the first degree devoted to productive objects. Therewith the quantity of capital at hand, and the offer of such, is continuously increased (12). But the lending capitalist, differently 11. "Protokolle of the Enquete," p. 351: "There is here, in Germany, something which has great influence — it is the fact that trade and industrial, pursuits are not honoured. Industry and trade are only taken up as a pursuit frequently, when no other calling can be found. In England it is otherwise." 12. Manchester Chamber of Commerce, "Bombay and Lancashire, " p. 40. 156 THE COTTON TRADE IN ENGLAND from the employer and operative, has not the possibility of a coalition at hand, because every suitable application of his money produces competition — i.e., creates new capital seeking channels for investment. ITiis strengthened supply can certainly also be balanced from time to time by strengthened demand. But, in general, a retarding moment makes itself felt on the side of the demand — the enormously increased producing power of capital by technical progress. With a sovereign invested in machinery I can to-day produce four to five times as much yarn of the same quality as I could 50 years ago. The joint influence of this speeding with this retarding movemenr pioduced for the Erglish industry an im- portant lowering of the rate of interest during the course of the centmy. In a similar way England has herein to-day an advantage com- pared with the Euroi)ean Continent. Ordinary loan capital stands at the disposal of the English cotton industry for 3} to 4 per cent. ; alongside exists, however, the possibility of receiving at {iny time capital subject to notice at 2J to 3 per cent. — a system which is used in many cases by spinning-mills in Oldham. On the other hand, the German employer works with an average rate of interest of 5 per cent. An industrial establishment does not represent a permanent capacity, but rather one which is consumed. Most certainly, as above shown, the tendency of development is from a change of fixed capital to a floating one. Therewith, along with the in- terest, the creation of a depreciation rate becomes a necessity. According to the rules laid down by Piatt, machinery for manipu- lating cotton should be depreciated by 7^ per cent, buildings and steam engines by 2J per cent. This amounts to about as much as a total depreciation of 5 per cent. Therefore one can take 20 years as the life of a cotton factory. The introduction of a definite depreciation grants to English spinners and manufacturers great advantages over the Continental ones (13). According to Andrew and Ellison, the English spindle stands on the average in the books at 18s. 6d. per spindle, and the loom at £20. 13. Thus according to Andrew : ** Fifty Years' Cotton Trade," p. 8. Com- pare *' Respecting the Depreciation of the Spindles in the Rhine Provinces," Jannasch, p. 44 : " The far greater progressed depreciation mostly helped the Alsatians to withstand the revolution in the industry, which was connected with their heing taken over by the German State." AND ON THE CONTINENT. 157 But it is (^asier to introduce a definite depreciation in England than on the Continent ; for one reason on account of the costs of establishing, and then on account of the greater producing power of the maohineiy. The greater dexterity of the operative comes also into account — unskilled hands ruin the machinery, which is the rwison, for instance, why the wear and tear in India is far higher — as well as the regularity of the production. Whilst the German textile employer must continually change the machinery to correspond with the great variation of the goods to be produced, the Englishman spins from year to year the same counts, weaves the same goods, and thus escapes from the considerable wear and tear caused by the alteration of the machines. The following relation of the costs of production approximately result for undepreciated mills : — Cost of Production per Pound. 2U'8. 32'8 twist. 40' 8 weft. eo's twist. Wages iVi- Id. l^d. lld. Working expenses (strap- ping, oil tubes, card- clothing, etc., 7^ per cent, deduction) l^Vd. Ud. IH lld. Depreciation ^d. id. ifjjd. Id. Cost of production 2M 2|d. 2id. 4d. Everything above is inter- est and profit, in the proportion of ii.=5% id. =5^ id.=B% U—5% This relation gives tlie following reckoning : — Cost per spindle = a (£1 for 32's twist = 240d. ). Yearly production per spindle = b (50 lb. for 32's twist). The amount necessary for 5 per cent, in the cost of production of 1 lb. yarn = -^ — — = id. for 32's twist. On the basis of these figures a glance at the current prices on the Exchange at Manchester gives the average profits of the spinner. The amounts given certainly cover the costs com- fortably ; the technically-developed mills produce at a cheaper rate. Thus 32'8 twist has been sold with a difference in price of the yarn from the cotton of 2d., and still without loss. 158 THE COTTON TRADE IN ENGLAND For proof I give as an instance the quarterly production relations of a spinning-mill at Oldham with 75,000 spindles. Quarterly Production, 582,115 lb. 32'8 twist axd oO's weft Totel cost of Per lb. production. yarn, 1. Wages 2,767 18 4 l-14 to whom a weekly wage of 24s., instead of 18s., must be paid. In consequence of this, the piece^wages for B could only decline to 8d. As, with the reduction of the share falling to capital, advancing conditions have come into play, which by the progress of human genius permanently grant increased dominion over nature, and therewith the augmenting production-power of capital, thus with the reduction in the cost of labour, retarding circumstances, the nature of mankind as an organism, by which higher capacity in a definite direction is only possible if the whole condition of the organism is raised. The relation of both, therefore, is reversed, in the coiu'se of development, in favour of labour. This means nothing else than that the production costs of a certain article have certainly gone down, whereas, on the other hand, with the lower producing costs relatively more has fallen to labour and less to capital. The following is an instance. It refers to the same mill, combining spinning with weaving, whose capital in 1883 repre- 170 THE COTTON TRADE IN ENGLAND sented the same value as in 1840. In this case the price of an ell of calico of exactly the same quality declined from 1840 to 1883 by 22 per cent., the cost of labour per yard by 41 per cent., the amount falling to interest and profit by 63 per cent., and during the same period the weekly earnings of the operative had risen by 64 per cent. (1). What applies to a single article may also apply to the whole national production, as far as it depends upon the principle of centralised industry. I^abour receives a relatively. higher share. But the centralised industrial system represents such a greater production that, similarly as in the production costs of a single article, the amounts for labour as well as for capital absolutely decrease. Thus with regard to the greatly increased total produc- tion, both amounts absolutely increase. On labour as well as on capital falls an absolutely greater amount. An exception only occurs in so far that extraordinary dexterity becomes replaced by the machine. As the demands on labour become more regular, wages also approach more nearly to a similar level (2). Thus medium wages, according to experience, tend to rise more than the highest, and the latter partially to fall. For instance, the wages of the mule-spinner, at one time, for the finest yams amounted to double those for ordinary yams; to-day the wage conditions of both have approached one another. To those special capacities which were formerly higher paid than later, because they have become partly less necessary, partly more frequent, belong before everything else the portion of the profit which is termed real employer's wage. We have already laid clear the reasons for this. Extremely influential in this respect operates the "limited" system, which at the present time comprises one-tenth of all busi- ness concerns in the United Kingdom. With the largely increased operations of single undertakings, only few large possessors of capital would be in a position to come forward as industrial em- ployers. With them the limited principle puts all those technical and commercial talents into competition which, without consider- 1. Compare Atkinson: "Distribution of Profits," pp. 119 and 120; further, " Report on the Statistics of Labour" (Massachusetts, 1890), p. 261. 2. Compare " Protokolle der deutschen Reichsenquete," pp. 291, 376, 337, etc. AND ON THE CONTINENT. 171 able capital, were still in the position to acquire the necessary business qualifications. This circle constantly increases with the growing prosperity of the middle and the elevation of the working classes. It is scarcely possible any longer, owing to the advanced centralised industrial development, for the individual worker to rise up to be an employer on his own account alone, whilst at one time the greatest and most celebrated pioneers of centralised in- dustry emanated directly from the working class. He can, on the other hand, with the necessary talent become a servant of large companies, which, along with talent, require character and honesty ; while that first generation of industrial employers, along with their talent, were in many cases indebted for their success to cunning and meanness. Marshall says, with respect to this point*: " Perhaps at the present time not so many operatives rise to the position of employers ; but more get on to-day far enough to put their children in a position to reach the highest offices. Tlie rise to prosperity is divided over two generations, but the completeness of this movement upwards is to-day perhaps greater than ever. This is better for society. The foreman who still has to obey as well as to order, and sees his children rise up, is in a certain direction more to be envied than the small employer. The children become well educated and make at some time, probably, a better use of their riches " (3). With this growing competition for industrial leadership in this second period comes the pressure from below, which — as Brentano in his "Arbeitergilden" first pointed out — is exercised by the opera- tive class elevating itself. Both, at this stage of development, force down the profits to a minimum, under which they cannot sink without detriment to the industry. In the first stage o^ centralised industrial development the employer received the balance after loan capital and operative had been paid ; but now labour receives the balance after the payment of interest and management. With an insight into this relation, the leader of the English spinners said to me : One must guarantee the employer, as far as possible, a certain margin of profit, which cannot -without loss to the operative be lessened in favour of wages. A high- standing operative class must think about attracting intelligence into industry, and keeping it — if possible, more intelligence than 3. *' Elements of Economics," p. 195. 172 THE COTTON TRADE IN ENGLAND the competing industries of foreign countries possess. The opera- tive must pay for finding the most capable employers (4). As profits thus approach a minimum boundary, wages become more and more dependent on prices, and consequently on the position of the world's market. Whilst in the former stages of development legislative measures could accelerate the alteration- mentioned in favour of labour, profit now tends, like interest, to become a permanent power, but wages to rise only by increase of the total production. Li^slative measures cannot provide this increase. Since the state of trade partly re-acts upon wages, in the same way the premium on risk, which is contained in the profit, falls (5). From what has been said we can deduce the following proposi- tions : — (a) Within a defined product the amounts falling to capital as well as labour absolutely decrease with the development of centralised industry — cheapening of production in favour of the consumer. (b) The amount within a defined product falling to capital not only decreases absolutely, but also relatively in proportion to that upon labour. (c) The amount within a defined product falling to labour certainly decreases, but relatively, on the other hand, increases. (d) The increase of national total production in itself makes possible greater amounts absolutely for labour and capital. Oh the other hand, the share fcnr eapita.1 falls relatively, that for labour increases relatively. Labour ever receives a greater share of national total produc- tion. It receives more and more of the balance which remains after paying the amounts falling to interest and profit. The social consequence »f the eeonomical development here depicted is a levelling-up of extremes of property . So far from the rich becoming richer and the poor poorer, just the reverse is 4. Ck)mpare a similar view of the well-known £. Atkinson: " DistriBntinn of Profits." p. 70. " Wages are the remainder after profits are paid," pp. ITS and 179. 5 Schmoller " Ueber die Entwicklnng des Grossbekiebs und die sociale Xla«!enbildung. " " Share capital, the capital of sleeping partners, also expects really nothing more than pavment of interest. This capital retreats more and more from the ruling position." " Preass. Jahrb. , voL 69, part 4." AND ON THE CONTINENT. 173 the case, which, as to England, has been statistically proved (6). At the time when the industrial employers socially and politically conquer the highest positions, new middle classes begin to rise behind them, which at first gain economically in importance, then politically. That, indeed, in this later stage of develo-pment the centralised industrial operative has to be counted with the middle classes is proved simi)ly enough by Atkinson from the fact that important callings, which hitherto were generally connected with the middle classes, have gone in income far below the level of the centralised industrial working class of New England. This is esi)ecially true of large portions of the teaching and religious classes. That Germany still by no means stands economically in the same advanced position is shown by the movement of the people's income. It can be taken, according to Herkner, that the poor at present do not become poorer ; on the other hand, the rich become richer, and the middle classes in many cases decrease. //. — Proofs from Lancashire. "Prosperous Lancashire!" Under this title the "Spectator" published the following article, which the organ of the operatives, the " Cotton Factory Times," of 23rd. Oct., 1891, reproduced : — " According to the testimony of a late United States Consul at Manchester, the district of which that city is the centre enjoys a greater measure of prosperity than any similar community in his own country, therefore in the world, for in no part of the Continent are the working classes so well off as in Lancashire ; nowhere are wages sc high, hours of toil so short, and the cost of living so moderate. None who knew the district in the * forties ' and 'fifties* cawi revisit it without being struck by the signs of improvement a.nd progress which he sees around him. It is not merely that the population has doubled, and tall chimneys multiplied beyond com- putation : these are signs of increasing wealth, and wealth may act^umulate while men decay ; the veriest pessimist must acknow- C R. Giffen: " Increase of Moderate Incomes " (Roval Stat. Society, 16th Dec. , 1887). Compare my boob. '« On Social Peace," vol. II., p. 491 . Atkin- 8W1 accepts a similar relation for America, which is, indeed, known as the country whpr<» fortunes roll together into a few hands. (" Distribution of Profits," p. 356.) 174 THE COTTON TRADE IN ENGLAND ledge that the people are better off, their dwellings more comfort- able, their labom- less arduous, and their lives altogether pleasanter than those of their fathers and grandfathers. True, the houses are still grimy and smoky, and unsanitary back-to-back cottages too numerous ; but these are being gradually superseded by better- constructed dwellings, and there is hardly a considerable borough without its parks and recreation grounds. Poverty and pauperism, the outcome of drink, idleness, accident, and disease, exist in the most i)rosperous comnmnities ; but in Lancashire none who are able and willing to work need to want. Wages were never so high, labour never more in demand. A good weaver, and weavers are mostly young women, can earn 248. a week. A skilled workman, with two or three children working in the mills, is better off than many a country parson. There are families whose aggregate earnings amount to £400 a year. Day labourers are in demand at 6d. an hour. Nor are high wages limited to the strictly manu- facturing district-s. In the Fylde country, the garden of Liancar shire, farming hands, generally young men, command from 98. to 11 s. a week the year round, with board, lodging, and washing, and farms let without difficulty at £3 an acre. It is satisfactory to find that prosperity has promoted thrift. Every village, almost every hamlet, has its co-operative store, managed by working men, who provide the capital, and neither give nor take credit. The agent of a large assurance company, whose district is partly in- dustrial, partly rural, informed me that it is difficult to find a man whose life is uninsured, and benefit societies number their mem- bers by the million. " All this implies considerable activity. Lancashire people were never slow-witted, and now, thanks to the extension of educational facilities and the multiplication of newspapers, they are become exceptionally intelligent. Fifty years ago, a manufacturer, from whom I had the story, opened a reading room for his hands, and supplied it with suitable literature ; but so few of them could read that the others insisted on one of the better-instructed reading aloud to them, and as this led to confusion and bickering the room had to be closed. At that time there was not a single daily paper in the county, and the few local four-page papers sold for as many pence. One can now get a better paper for two fiirthings. A few days ago I was staying at a country house in the neighbourhood of two contiguous manufacturing villages, containing together some twelve hundred inhabitants. In these two villages are three news- AND ON THE CONTINENT. 175 agents, who amongst them sell every day a hundred and fifty halfpenny evening papers, of which latter, however, working people buy but few. I may note as an interesting fact that of the four evening papers vended by the agents in question three run stories ; and the proprietor of one of them assured me that without fiction his paper would find few readers. Equally in demand with fiction are accounts of football matches, the Lancashire pastime par excellence. I learnt from a policeman who had been stationed at Coppul (a mining -district near Chorley) tliat it has all but put an end to ' up-and-down fighting ' — a method of adjusting quarrels a good deal more deadly than French duelling. Instead of punching each other's heads and kicking each other's shins, the young bloods of the neighbom-hood find a vent for their energies in kicking the footballs and fighting for goals." I try in the following to show clearly the standard of living of the operatives of Lancashire statistically : — According to the principles of Boehmert, explained in the journal of the Saxon Statistical Office, an examination was undertaken by me, in the summer of 1891, on the standard of living of the artisans of the North of England. The Board of Ti-ad© had some years previously made a similar attempt. They had, however, only attained few satisfactory results; first, on account of the partly unsuitable queries asked, then on account of the aversion of the operatives to lay bare the details of their private life to official questionings (1). I was, however, in conse(]uence of an interview with R. GifTen, the celebrated statistician to the Board of Trade, enabled to make use of the experiences of that first examina- tion, while I had, as a private person, more likelihood of getting at the particulars wanted, and of removing ditliculties, by a personal exchange of thoughts. Thus equipped, I repaired to the North of England. But there it immediately became clear to me that only through the organisa- tions of the operatives were the details for my purpose to be attained. This was no disadvantage for the examination, since co- operative societies and trade unions comprise by far the greater portion of the skilled workers in that district. Old acquaintance- ships made my way smooth. Most of the workers' budgets given by me were confirmed by the co-operative societies' organs, which were so much the more suitable for doing this, since the operative 1. " Returns of Expenditure by Working Men" (London, 1889). 176 THE COTTON TRADE IN ENGLAND in Lancashire gets all his necessaries for existence from the society. I am specially indebted to Mr. J. C. Gray, the general secretary of the Co-operative Union in Manchester. I single out pre-eminently the representative of that great in- dustry of I^ancashire — the mule-spinner. The two spinners whom I choose are in the average position of that operative class — an average from which exceptions are the fewer since in the chief spinning districts all spinning-mills pay exactly the same wages, on the basis of the wage list agreed upon with the operatives. The man is 42 years old, his wife 41 ; they have seven children — three boys of 9, 16, and 18 years of age; and four girls, aged respectively 3, 6, 12, and 14. The family lives in a house in one of the environs of Oldham. The house, in which, comparatively speaking, there is a saving, consists of two rooms downstairs (5 by 4J yds. and 4 by 4 J yds.), a kitchen joined to the house behind, a small cellar, and two bedrooms a storey high. The rent amounts to 4s. per week. To my question as to what formed the principal food of the family the man gave the answer applicable for the operative of the North of England — wheaten bread and meat. Meat, mostly beef, is eaten daily at least ^once, potatoes, coffee^, vegetables, etc., performing only the part of aiRcessories. The man and four of the children work in the met^rv ; the man as mule^spinner, the two eldest boys as piecers, and theEwir^ldest girls in the preparation rooms. Tlic hours of labour amount to 56J per week for both father and children. The weekly earnings of the man reach 40s. ; but since there are only 49 to 50 weeks in the year to be reckoned as working ones, the yearly income is put at £98. The yearly earnings of the children amount to £92 19s. 3d. Since the wife and the younger children earn nothing, the income of the family from wages accordingly amounts to £190 19s. 3d. The wages of father and children flow together, as is generally customary in the North of England, into the family exchequer — a circumstance which ensures so much the more the high standard of living of this working population, since man-iages do not take place much too early. In addition to the income men- tioned there comes one from savings and co-operative societies' dividends, amounting to £15 yearly. The total income, therefore, amounts to £206. The man is a member of the Oldham Co-operative Society and of the trade union of mule-spinners, which extends over the whole of Lancashire. In the co-operative shops everything is bought — ^nat I AND ON THE CONTINENT. 177 only food, but also clothing, etc. One shilling per week is paid to the trade union. But since this union grants relief only in case of want of work (13s. per week, or in case of a strike 15s. weekly), the man and wife are also insured in a friendly society against sickness, for which they pay 5d. weekly, and receive in case of sickness 8&. per week. The children who are working are also similarly insured. The man takes a trip eYerj year with some of his children — in August, during the so-called " Oldham wakes," at which time the mills close for a week. He goes mostly to- one of the neighbouring watering-places on the coast, and this absorbs a portion of the savings. The total expenses amount to about £185 ; therefore about £21 is saved per year. As a second representative of the spinnei-s I choose one from Hyde, a place near Manchester well known from its connection with the history of Chartism. Tlie man is employed in one of the largest spinning-mills, belonging to the Ashtons. His age is 47 years, that of his wife 42. He has married rather late, and has only two children — girls of 1 5 and 1 7. The family rents a house consisting of four rooms and a kitchen — two living rooms on the ground floor, two bedrooms a story high. The measurements of the front room are 4 J by 4 J yds., of the back room 4 J by 4 yds. In this case relatively more value is laid out on the dwelling than in the one mentioned before. The rent is 4s. 6d. per week. In this case, also, wheaten bread and meat are given as the chief nourishment. Meat, and indeed beef, is eaten once a day. The man earns 30s. ; the daughters, one a weaver, the other in a hat works, each lOs. per week. Here also only 50 working weeks are reckoned, and 14 days are expressly mentioned for holidays and relaxation. Thus the yearly income, with £6 8s. in dividends from the co-operative society, amounts to £131 8s. The man is a trade-unionist, which costs him Is. weekly; for insurance purposes Is. weekly is paid to friendly societies. The insurances are as in the foregoing case. The man is, as well, a member of a social club, and subscribes to the trade paper, " The Cotton Factory Times," a non-political paper, and also — as he belongs to a political party — to a Liberal paper. As long as the children did not work the family were partly dependent upon the savings which both partners had made before their marriage. The wife has, since her first confinement, ceased working. Since the girls went to work the yearly savings have been considerable, the object being to secure the parents in old age, and tO' allow of some- N 178 THE COTTON TRADE IN ENGLAND thing for the children when marrying. The man is a zealous member of the Unitarian body, a sect that was introduced into Hyde by the Ash tons, and to which not a few^ of their operatives belong. Since the yearly expenses only amount to £107, there are savings of £24 to be noted. The budgets of both families come out in detail as follows. Their interest consists in showing how centralised industry, where it is oldest and most developed, produces far from proletarians. Much rather does there appear to be now middle-classes arising, both as regards standard of living and capability of thrift. n. WEEKLY EXPENDITURE FOR HOME USE. A, n f-h. oz. 8. d. Lb. oz. s. d. Wheat bread (bread is baked at home) 72 8 6 17 2 Oatmeal 1 2 ... ... Rice 2 4 ... ,. Potatoes 30 1 3 15 9 Tea 1 4 2 3 8 10 Siigrar 14 2 11 5 1 0^ Milk 3^ qts. Lh. nz. 10^ 5 qts. 1 3 Coffee 3^ ... ... Kgg« Six Lb. oz. G Twelve Lb. oz. 1 Butter 8 8 2 8 3 n Cheese 1 8 8 4 Meat: Beef 6 4 6 6 5 Mutton 1 10 Pork 8 4 .. ... Bacon and ham 1 8 9 1 10 Vegetables (cabbage, onions, turnips, beans, etc.) ... 6 2 i| Salt 1 Oi 1 Oi Pickles ... . 8 3 Jam 8 "3^ 1 4 A. Herb beer (this drink is non- alcoholic, since both families em- brace teetotal principles) 16 qts. 1 4 qts. 2 B. Ordinary beer Lb. oz. • •• Lb. oz. ... Soap (washing materials) 1 1 4 Light (petroleum ,ga8, and candles).. ... 3 6 Tobacco ... u H 0*"2 8 Coals (yearly average) 2 2 Other expenses ... 1 ... Weekly expenditure for house ... £1 18 Ti £1 2 lOi AND ON THE CONTINENT. 179 h. OTHER WEEKLY EXPENDITURE. Rent Trade union Friendly society Further insurance Social club Newspapers Insurance for paying doctor in sickness School money Walks, trips, enjoyments (in come under the heading of expenses) Various case ol case A yearly Total Weekly Expenditure ... A. * 8. CI. 4 1 5 1 1 1 1 1 1 2 8 3i d. 6 5 7 6 4 1 14 YEARLY EXPENDITURE. A. B. £ 8. d. £ 8. d. Weekly expenses x 52 125 11 88 8 Clothing 30 8 Shoes and boots, etc 5 2 10 Larger repairs 4 14 Thread, etc., for wife for mending ... 9 13 6 Furniture, utensils 3 1 5 Doctor Paid weekly. 10 Taxes 1 4 ... Other expenses (especially for tlie trip during the Wakes) 15 5 Total expenses £184 4 1J107 6 Total income 206 131 8 Savings ... £21 IG £23 12 Next to the spinner, the weaver is the chief representative of the Lancashire cotton industry. His standard of living is below that of the spinner. Men and women are here employed in the same manner, but seldom married women. The girls marry compara- 180 THE COTTON TRADE IN ENGLAND tively late, and mostly only when they have saved something, which makes it possible for them to give up factory labour after the birth of their first child. This is the explanation of the long holding together of adult family members in a common dwelling. If the children grow up and earn money, the time for saving begins anew. We now give the budget of a weaver at Bacup. The man is 58 years old, the wife 54. They have seven children, who live to- gether in on© household; five male, two female — ages, 18 to 31. The father and all the children are cotton weavers, the mother does not work. The total income of the family amounts to £227 yearly, of which the father earns £45 and the children £168, while £14 is the amount of dividends received from the co-operative society. Wheaten bread is looked upon as the chief nourishment, in addi- tion to which meat is eaten once daily. Tlie expenses for the dwelling-house are comparatively low — 3s. 6d. per week. For this amount the family has a house consisting of four rooms, one of which is used as a kitchen and for living purposes. Tlie father is not a trade-unionist, but the sons pay 1 s. 2d. weekly to the weavers' society. For educational purposes 6d. per week is paid ; to this must be added 25s. yearly for Sunday schools and religious objects. Very considerable are the savings in this case ; they amount yearly to about £50. They are invested in the Post Office Savings Bank, in building societies, and in the co-operative society, partly in the names of tJie parents, partly in those of the children. These savings have the object of assuring to the parents a comfortable old age, of supplying the children with something when married, and also of making it possible for the family to have an outing during the holidays, for which the expenses vary. A further case refers to a weaver's family at Darwen. Man and wife, 39 and 33 years old, are both cotton weavers. The wife also goes to work for nine months of the year, because she has only three children, whose ages are 7, 9, and 11. In the year which is taken into account, from the summer of 1890 to 1891, the man has only worked 48 weeks. He lost two weeks by sickness, and has had 10 days' holidays. The total income amounted to £101 7s., of which the man earned £52 16s., the wife £43 Is., £4 10s. being the dividend from the co-operative society, and £1 was sick money from the friendly society. The expenses amounted to £94 15 s. AND ON THE CONTINENT. 181 6d., SO that £6 10s. remained as savings. The living conditions of the family are eminently good ; for a rent of 4:S. 6d. the family has 4 rooms, two being used as bedrooms. The size of the front room is 14 by 13 ft, of the back room 13 by 9 J ft., the height being 8 ft. In front of the house is a little garden. Wheaten bread and meat are looked upon as the principal food, beef and mutton in equal quantities forming the meat. The man is a trade-unionist, and pays 4d. per week to the weavers' branch society, for which he receives in case of want of work 9 s. per week, and, in addition, death money amounting to £6. The same amount is paid to the friendly society, which grants 10s. per week sick money, and £10 in case of death. As my last representative of the cotton industry I bring forward a fustian-cutter of Hebden Bridge. The husband is 52, the wife 49 years old; there are six children from 14 to 23 years of age — two sons and four daughters. The mother does the work in the house ; the children are engaged in the fustian trade. The husband earns 24s. weekly. He has not worked for six or seven weeks of the past year; he has had thereof 20 days' holidays, and lost 19 for other reasons. The children, who had similarly about 14 days' holidays, earned together in the year £172 4s. To this has to be added £12 6s. as dividends from the co-operative society, and £5 interest from other investments. The total income is £244 4s., the total expenditure about £175, and the savings nearly £70. Of these savings, however, only a small proportion was invested, the larger proportion being applied for holiday trips and similar exceptional objects. The co-operative society's dividend was not drawn, but was allowed to remain invested. The family lives in its own house of five rooms, one of which serves exclusively for living. The dimensions of the rooms are as follows: Front room 15 ft. 3 in. by 12 ft. 3 in., back room 15 ft. 3 in. by 9 ft. 3in., height 8 ft. The kitchen is attached to the house behind. The chief food is wheaten bread, and meat is par- taken of five times per week. Under the heading of expenditure there is none for trade unions, because the husband and children are employed in a co-operative undertaking. On the other hand, he pays 4d. per week for insurance against sickness, for which sum 8s. per week in case of illness and £8 in case of death is paid. Very important are the sums applied for clothing^£40 per year. The remainder is shown by the budget given : — 182 THE COTTON TRADE IN ENGLAND WEEKLY EXPENDITURE. Wheat flour Oatmeal Rice . . Potatoes Tea .. Sugar .. Weaver at Bacup. Lb. 02. 30 5 2 16 8 8 6 8 2 8 6 3 2 1 1 Milk Coffee ! 8 Eggs Butter Dripping, lard Cheese . . Meat : Beef . . Mutton . . . . I Pork ! Bacon and Ham Fish Veget'ble (salad, cabb'ge, etc.) Salt Mixed pickles Jam Beer Spirits Temperance liquors . . Soap Lighting Candles Tobacco Fuel . . . . . . Blacking, wash'ng liquor, etc. Rent (add to C value of house} Trade union Friendly society Other insurance (children) . . Social and political clubs Newspapers , School money (case A, even ing classes, etc. ) . . Trips and enjoyments Total weekly expenditiire . . Yearly expenditure 8. d. 3 6 10 Lb. oz. 20 1 2 7^ 9 1 6 8 4 2 H 5 3 2 6 % Weaver at Darwen, 6 6 1 3 7 4 3 6 1 2 10 o"6 2^ 6 2 6 jE2 14 5 ^141 9 8 6 6 1 2 2 s. d. 2 7 li 4 6 10^ 1 3 1 104 2i 2 3 3 5 8 1 6 1 8 Lb. oz. 48 7 8 4 0^ 8 0*3 10^ 6 o"n 2 3 Fustian Cutter at Hebden Bridge. 2 10 £1 10 7^ £79 12 6 1 4"o 1*0 7 2 2 Je2 7 2 ^122 12 8 AND ON THE CONTINENT. 183 YEARLY EXPENDITURE. A. Weaver at Bacup. B, Weaver at Darwen. c. Fustian Cutter at Hebden Bridge. Brought forward Clothing Boots, shoes, and clogs Repairs Thread and sewing materials Kitchen utensils, furniture . . Books (in case B from the library of the Co-op Society) Doctor, chemist Taxes Other expenditure (for A, ex- penses for Sunday schools and religious purposes; for B, washing) £U1 9 8 16 10 3 12 1 10 4 2 1 1 4 2 1 5 £79 12 6 6 2 5 3 15 6 jei22 12 8 40 3 10 2 12 2 18 1 5 1 18 6 Total yearly expenditure . . Savings (for A and C, in- cluding the expenditure for yearly holidays) £172 10 10 £55 £94 15 6 £6 £174 16 2 £69 8 As a proof of the fact that the cotton operatives of Lancashire are by no means in an exceptional position, but rather that their position is merely that of the operatives of English centralised industry generally, the following instances are also quoted : — The first instance refers to a representative of the miners in Northumberland. The husband is 44, the wife 40 years old, and they live in the neighbourhood of Delaval. There are eight children of the marriage, aged respectively from 2 to 21 years — four boys and four girls. The father and the two eldest sons go to work — all three in the mine. The father earns 36s. per week, the sons 25s. and 14s. The hours of labour amount to 40 per week, and, on the average, 6 hours' overtime. Every fortnight a day's holiday is taken, so that in reality only 11 days are devoted to work. The yearly income of the father amounts — reckoning 50 weeks yearly — to £90, that of the two sons to £97. To these sums a yearly dividend of £19 48. from the co-operative society has to be added, and from other investments £28 6s. This gives a total yearly income of £234. 184 THE COTTON TRADE IN ENGLAND WEEKLY EXPENDITURE. A, Miner in North- umberland. Bread (case B bought ready, as usual in Loudon) Flour (case A baked by wife)... Oatmeal Rice Potatoes Tea Sugar Milk CoflFee Cocoa EggB Butter Lard, etc. ..j Cheese Meat: Beef ' Mutton , Pork Ham and bacon i Vegetables (turnips, cabbage, onions, etc.) Salt Mixed pickles Jam Beer (A, teetotaller) ... ... ...; Spirits I Temperance cordials Soap and washing materials ... Lighting Candles ... Tobacco (B, non-smoker) Fuel (case A, free) Other expenses Rent (case A, free, value 5/6 per week) Lb. oz. Total weekly expenditure Yearly expenditure ... 3 8 3 s. d. Machine Fitter in London. 66 7 9 1 lOi Lb. oz. 48 4 2 8 24 12 6 10 3 lU 9 2 2 4 6 1 6 1 ^ 9 3 4 2 6 8| 121 9 11 12 6 4 1 Si 8 1 19 10 103 11 4 AND ON THE CONTINENT. 185 YEARLY EXPENDITURE. Brought forward Trade union Friendly Society (case A, Foresters)... Life insurance ... Social and political clubs Doctor (case A pays 3d. per week, B needed none) Further insurance Trips and enjoyments Other expenses (pocket money for children) Clothing Boots and shoes Repairs ... Thread, etc Furniture and utensils... Newspapers and journals Books Yearly expenditure Approximate annual savings Miner in North- Machine] htter in umberland. London. i-121 9 11 £103 11 4 1 19 3 5 3 18 2 3 4 1 14 8 2 12 4 4 ... 13 1 14 4 ... 3 10 3 18 7 16 37 4 8 10 10 7 17 2 3 1 1 3 8 3 15 3 3 17 4 1 8 6 ... £194 14 7 jei39 11 MO i-6 The other side of the balance-sheet is debited with £229 6s. Tliere is no rent included in this expenditure, because the miners of Northumberland have nothing of any moment to pay for the rent of their houses, which belong to the colliery proprietors. These houses are the ordinary dwellings of the North English workman. They comprise 2 to 4 living rooms, in the foregoing case four, in two storeys, each 28 J by 18 ft. The coal-hewers also receive coals for nothing, delivered for about 6d. per fortnight for carting expenses. The man is a trade-unionist and co-operator, also a member of a friendly society ; and so with the two sons. The trade union pays, in case of stoppage or other intermission of work, 10s. per week for support; the friendly society, for sick support, 10s., and, in addi- tion, £8 funeral money in case of the death of a member, and £2 on the death of a child. Remarkably high are the expenses for newspapers, books, etc., inasmuch as the miners of Northumberland are noted for active intellipjent interest. By this fact, as well as by the high relation in which the single items for clothing, etc., stand to the expenses for food, the budget detailed above appears completely like that of one of the middle classes. The chief nourishment here is also wheaten bread and meat. The wife as well as the daughters, the eldest of whom is 16 years of age, do not go to work. 186 THE COTTON TRADE IN ENGLAND Side by side with this is given the budget of a machine fitter at London. The husband is 43 years old, and the wife the same age. They have six children — ^two boys and four girls — from 6 to 17 years old. The husband earns 41s. per week; the children, of whom the eldest son is becoming a machine fitter and the daughter works in a cotton factory, earn together 18s. The man estimates his annual income at £105, to which sum £45 is added by the children; the total income is therefore £150. Tliere are 50 work- ing weeks taken into account, because two weeks have to be reckoned for sickness and holidays (9 days yearly). The man declares he has never lost any time on account of labour disputes or want of work. He is a member of the Amalgamated Engineers, to which society he contributes la per week, and for which he is entitled to sick pay, and support in case of want of work and in old age. In addition, he spends Is. lOd. per week for further insurance objects, partly with the friendly society called the Hearts of Oak, for the object of sick insurance. The house, which com- prises five rooms, is comparatively dear, as in general dwelling- houses in London are dearer thao those of the North English operatives. Three rooms are applied to sleeping purposes, and two for living in (two rooms 14 by 12 ft., three rooms 10 by 9 ft). In this case, also, meat and wheaten bread form the chief nourish- ment. Tlie budget sliows meagre savings, in connection with which, however, the considerable applications for insurance pur- poses have to be taken into account. The figures given reveal the enormous advance of the English operatives when compared with the " thirties " (see page 88). On the other hand, numerous German operatives' budgets that have been published bring us to the conclusion that the standard of living of German operatives at the present time about balances that of the English in the ''thirties" — a further proof for the dependence of the position of operatives on the condition of economical development. In the same degree that Germany has advanced less towards centralised industry, and that hand labour still preponderates over machine labour, is the standard of living of the German operative less than that of the workers of the present English centralised industry. In most of the German workers* published budgets the income scarcely covers the expenditure; very frequently a deficit occurs which is balanced Vjy benevolence and poor relief, in many cases AND ON THE CONTINENT. 187 by prostitution — even by misery and want. Excellent service in the cause of detei mining the conditions of life of German opera- tives has to be ascribed to the inquiries — published by order of the Ministry of the Grand Duchy of Baden — of Woerishojffer, for the celebrated and well-known Committee on Baden Factory In- spection. Even for the skilled workpeople of well estal)iished centralised industries (for instance, of the chemical industry) it appears, according to these, that the most favourable result is the ever scanty attainment of the physiological minimum of living. In spite of which, these communications contain — in connection with the information concerning other German working classes, especially concerning the known conditions of the German cottage industrial workers — proof that sound centralised industries always make possible a relatively higher status of living of the operatives. "While for the mass of the workers in German cen- tralised industries the nourishment — mostly potatoes and rye bread — may at least scantily supply the physiological demands, that of the cottage workers shows, in comparison, an apparent want of nourishment (see page 88 )• I quote, as an instance from one of the textile centres of North Germany, the following opera^ tive's budget, which seems to me, after comparison with another, to stand rather above than below the average. The family con- sists of the husband (49 years old), wife (53 years old), and four children (5 to 17 years old). The husband and the two eldest children are employed in a power weaving-mill. The man earns 15s. ; the two children together contribute 7s. per week for food and lodgings to the parents : — WEEKLY EXPENDITUKE FOR FOOD AND HOUSE, etc. Rye bread, second quality Potatoes . . White bread (small rolls, 25 grammes) Wheaten flour (2nd quality) . . Meat (Sundays only) Dripping . . Vegetables (peas, linseed, rice, etc.) . Coffee Butter Skimmed milk . . Rent Sick money and old-age insurance School money M. pf. 42 1b. 5 60 30 litres 1 80 2 1b. 2 2 „ 40 45 3 40 20 2ilb. 3 40 6 litres 60 3 20 65 .. 15 •• . 21 85 Total It results from what is given above, in comparison with the 188 THE COTTON TRADE IN ENGLAND English operatives' budgets, that the chief food of the English operative — meat and wheat — is with the German a Juxury. Especially is this applicable from the item of f lb, meat weekly for a family of fom* adults (of whom three work) and two children. A comparison in figures between German and English operatives' budgets is impossible in detail, by reason that one certainly knows that wheat is more nourishing than rye. A positive relation of value between both cannot, however, be given, on account of too great variations according to the harvests, conditions of the land, etc. But something further is certainly to be taken as general — the income reaches, in favourable cases, no further than for nourish- ment. There remains for other purposes, as a rule, little or nothing over. In addition, German industry lacks consumers of mass articles. Skilled workers, even in the most favourable cases, and if the children or \nfe work as well, scarcely ever spend above £15 yearly for clothing and other industrial productions, whilst in the English budgets given above this expenditure runs to £50 and over. A Leipzig book-printer's- family — therefore belonging to one of the highest classes of operatives — with only two children, has only £9 14s. yearly left over for clothing and shoes. "In order to save boots, the children run about barefooted in the warmer season of the year." The household utensils of the German worker's family are scarcely ever bought new, but, like the clothing also in numerous cases, from the broker, or received through charity. Numerous proofs of this statement are given by the Frankfort workers' budgets (2), which by no means refer to a specially low working class — a disadvantage not to be under- rated for German industry, which, as numerous statements before the " Enquetekommission " show, feels keenly a rise in food prices, reductions in wages, or curtailment of employment in other im- portant branches of trade, especially in mining and iron working. 2. " Schriften des Freien deutschen Hocbstifts" (Frankfurt a. M., 1890). A worker's family with four children and j957 income spent only £5 for clothing, washing, household goods, and repairs. The head of the family says 'he buys perhaps occasionally a pair of working trousers or some such indispensable article of clothing, but for fifteen years has not bought himself a complete new suit." The furniture is mostly second-hand when forming the household. Even the sofa is missing in most cases. There is never a room used exclusively for living purposes ; living and sleeping are generally com- bined in the same room. Frequently one room serves the whole family for living and sleeping, and in manv cases the same is partially sub-let. Ck>mpare pp. 37, 44, 70, 85, 94 ; further, Herkner, pp. 49-64. AND ON THE CONTINENT. 189 If one visits the English operative in his home, its appearance convinces one that there is here more than the bare standard of living, that certain demands for comfort are fulfilled, which has a most favourable influence on the family life. Let us go, for instance, to the spinner in Hyde, whose budget was given above. In front of the house there is a small garden. It was, at the time that the particulars for the budget were got (August, 1891), filled with blooming plants. The house door leads into the living room, the size of which has already been given. In the middle of the side wall there is a large fireplace, with a clear, flaring coal fire. On it is a kettle, in which water for the tea, indispensable at every meal, is boiled. At the side of the fireplace we find an oven for cooking meat and baking bread. In the middle of the room stands a large square table, the meal-table of the family. Against the second wall a long sofa, against the third a large mahogany set of drawers, upon which were some stuffed birds and some books. Against the fourth wall of the room stands a piano, for buying which the operative with pleasure applies his savings, chiefly in I^ancashire, the population of which has a special inclination and capacity for music. I have seen one in many operatives' dwellings, even in weavers' houses at Bacup, who did not pay more than 3s. 9d. for rent (3). Even if the value of the instrument as well as the musical productions on it are meagre — it was related to me that the two daughters had deemed 10 lessons each sufficient for learning the art — in any case, the life of the operative of Lancashire gains a cheerfulness by the practising of music, which is doubly to be wished by the sad commonplaceness of the industrial localities of the North of England. The floor of the room is covered with oil- cloth. Nowhere is there missing an arm-chair for the head of the family. Five further chairs complete the furnishing. Behind the living room there is a kitchen. The same, however, does not serve for cooking, since this is generally done in the li\nng-room, but for preparing the dishes, and chiefly for washing. We notice particularly the large built-up washing boiler, arranged for heating with a coal flre. At the window there is a slopstone 3. The lack of pianos in similar workers' dwellings in Germany was pointed ont by me in a paper partially reprinted in " The Textile Mercury " and the " Manchester Chamber of Commerce Monthly Record " on March 28th, 1891. "Even though Germany is noted for its makes of pianos, I never remember having seen one in the house of a daily-bread toiler," — Translator, 190 THE COTTON TRADE IN ENGLAND with water-tup. As a chief article of furniture there is not often missing a wringing machine, which serves for wringing-out the damp clothes, and which I have seldom missed in any of the houses of the cotton operatives visited by me. Behind the kitchen there is a small yard, with a shed for coals. A small staircase leads from the kitchen to the upper storey, whose two rooms are used for sleeping purposes, and are furnished with beds, drawers, etc. This is the customary type of the operatives' houses, of which not a few present more extensive furnishing. Generally, the first thing in this respect is a sewing-machine. The similarity of the architecture is as astonishing as the furnishing. The worst type of operatives' houses, which at the present time is gradually diminishing, differs from that described in that the yard and the kitchen disappear from behind, and the houses are built back to back, and the living-room downstairs takes up the whole area in front. The buildings which exist above the average have the kitchen connected to the house in the yard, so that below there are two rooms, one opening to the front, the other to the back, which mostly means three rooms above. They also often possess a special entrance hall. These types of buildings occur in the factory towns near Man- chester, as well as in the seats of weaving in North Lancashire. The above-described building and furnishing cannot by any means, after the numerous instances I have seen, be regarded as a case standing above the average. Quite especially as notable proof for the high standard of living of the cotton operatives of Lancashire is the amount of capital widely distributed in their circles, which results from the balances of the numerous operatives' budgets. In this respect there apfiears to be a sort of decentralisation of society by an increas- ing regular division of wealth — a consequence, as we have already seen, of the centralised industrial development. As opposed to this, the view of Karl Marx is certainly wrong, that the working classes, in consequence of centralised industrial development economically pressed down, still rise up to political power, until they at last, holding political power in their hands, cause the economical reversal which would change them from non-possessors to mutual possessors of existing capital. Economical decentralisa- tion — that is, a proportional division of wealth — ^has, much AND ON THE CONTINENT 191 rather, always historically preceded a proportional division of political power. Countries with unequal division of possessions were always oligarchal — thus countries of lauded estates, o£ commerce, and of flourishing centralised industries. First, in proportion as the machinery system, developing itself, raises the working classes economically, do they gain real influence, of which the present Labour party lacks the first stage of the development, because it is based upon economical weakness. Now in what way, we ask, are the widely extended savings of the cotton operatives of Lancashire invested 1 Into account come insurance societies of every kind, especially the large and rich friendly societies ; further. Government as well as private savings banks, building societies, industrial undertakings, etc. (4). Here we only bring to notice two kinds of investments ; the co-opera^- tive societies and " limited " concerns. Regarding the co-opera- tive societies I refer to what is said in the first volume of my book " On Social Peace," as well as that' excellent work by Miss Potter. As an insbince, we only point out here the tremendous business transacted by the Oldham Co-operative Society. This society consisted, in December, 1890, of 11,000 members, belonging exclusively to the working classes, and had in the year 1889 net receipts of £341,195. It possesses a large number of shops for groceries, clothing, bread, and butcher's meat, for boots and shoes, furniture, drapery, etc. It has, further, a branch for building houses, and had up to the time mentioned built 623 operatives' houses for about £100,000, which, for the most part, had already become the private property of individual operatives. In addi- tion, there is a savings bank attached to the society, with deposits amounting to £18,000. The society has invested a part of its property in limited spinning-mills, partly in shares and partly in loans. It paid £50,000 in dividends to its members in 1889 — that is, nearly £5 per member, in addition to £5,000 interest to loan owners. Besides this, the society spent considerable sums on education and recreation. The Educational Committee had arranged, in the year mentioned, a large number of lectures on various subjects, partly in connection with the University Extension Scheme, partly with those institutions which apply themselves, as pointed out 4. Compare Report of the Commission on Depression of Trade, Second Report, part 1. , p. 136. 192 THE COTTON TRADE IN ENGLAND above, to the fostering of technical knowledge. Instruction classes were held in cotton industry, shorthand, botany, physio- logy, hygiene, book-keeping, and dressmaking The society possessed a library of 13,075 volumes, besides several reading- rooms supplied with numerous newspapers and journals. It also arranged tea meetings, balls, entertainments, etc. Respecting house-building by the societies, I received the follow- ing communication from the Bacup Society's committee : — " The average price for which we sell houses to our members amounts to £210. The society gets the houses built on contract by local builders, and sells them by auction, when ready, to its members. These either pay the whole price at once, or must pay interest for the amount left owing, and, in addition, £1 10s. every quarter, until the whole amount is paid off. If they wish to pay more speedily, it is, of course, accepted. The living rooms are 5 ells wide and 4 ells long, the kitchens 2 to 3 ells ; behind the house there is a yard 1 2 ells square. A storey high are 2 to 3 bedrooms. A lobby runs the whole length of the house (from back to front.)" In another co-operative society the houses were paid for within 19 years, under the following scheme, on the basis of 3 per cent. Of the £190 borrowed : — There falls of £16 12«. paid :- Leaving as balance. To interest, To capital payment. £ 8. d. £ 8. M. £ n. d. At the end of 1 : S^ear 9 10 6 2 183 18 2 (rears ... 9 3 lOJ 6 8 U 177 9 lOJ 3* ... 8 17 6 6 14 6 170 15 4J 4 ... 8 10 9i 7 1 2J 163 14 2 5 ... 8 3 8i 7 8 3^ 156 5 10 6 ... 7 16 3^ 7 15 8i 148 10 2 7 ... 7 8 6 8 3 6 140 6 8 8 ... 7 4 8 11 8- 131 15 9 ... 6 11 9 9 3 122 14 9 10 ... 6 2 8f 9 9 3i 113 5 51 11 ... 5 13 3i 9 18 8J 106 6 9 12 ... 5 3 4 10 8 8 92 18 1 13 ... 4 12 lOf 10 19 U 81 18 11? 14 ... 4 1 lOf 11 10 u 70 8 lOi 58 7 3| 15 ... 3 10 5i 12 1 6i 16 ,, 2 18 4:^ 12 13 7f 45 13 8 17 ... 2 5 8i 13 6 31 32 7 4f 18 ... 1 12 4^ 13 19 7^ 18 7 8f 19 » 18 4i 14 13 7* 3 14 11 AND ON THE CONTINENT. ..Or interest. Interest and capital payment amounted to £15 128. annually. From what has been said it results that a happy solution of the so-called operatives' house question is to be found in the last degree in a gi-eater participation of the working classes in national possession of capital. Of special interest is the development of the " limited " principle in spinning at Oldham, and certainly not only from economical, but also from social points of view. It has already been touched upon how the "limited" system helped onward the development of spinning, and made possible concentration of capital, and there- with a considerable lowering of the costs of production. It is a remarkable fact that those large limited spinning-mills at Oldham, furnished with the most improved machinery, which to-day can generally be looked upon as the leading ones, are also socially interesting pictures, and in fact emanated from a movement of the working classes. Their origin is ascribable to the co-operative movement, which has always had its chief seat in Lancashire. The banks of the little river Roach, which washes Todmorden and Rochdale, are cer- tainly those of a second Tiber, going out from which the co-opera- tive idea, according to the thought of its supporters, should conquer the whole world (5). As a fact, however, the efforts of the co- operative societies at production have mostly failed, and have proved themselves only possible under the first condition of having morally exceptionally high-standing members. On the other hand, the co-operative stores, to which belong the extensive masses of the cotton and machine operatives of Lancashire, had an increas- ing success. They educated the operative for the practical manage- ment of business. Besides which they collected, as savings, the dividends, which in many cases were not drawn by the members, forming considerable capital which required investment. Both conditions must come together in order to make possible the suc- cessful formation of "limited" undertakings by the working classes. A further circumstance favoured this development ; num- erous Oldham employers had arisen from the ranks of the opera- tivpp. as well as that larpe class of overlookers, technical men, and managers, which stands between employers and operatives. In all >. Compare my book " On Social Peace," I., p. 311. 194 THE COTTON TRADE IN ENGLAND countries of the world OldhcOin operatives, as managers and over- lookers, have formed spinning-mills and managed them, especially in India and Russia. , As a rule they return to their native town with their savings. They are people who, in general, are the cleverest in the cotton industry, and who still retain a close feeling of kinship with the working class from which they emanated. At political and social meetings the position of the cotton trade has for a long time formed the most interesting theme. Thus a considerable degree of commercial knowledge extended itself into the widest circles, helped forward by the reading-rooms, conversation-rooms, lectures, and educational evenings of the co-operative societies, technical educotional institutions, etc. The highest-paid class of operative in Oldham, nlso. which is emja^^ed in machine v.'orks, depen^^s in a similar manner on the condition of the cotton industry, and joins in the interest for the position and technicalities of the tradft. Thus it happened that with the support of the co-operative stores, as early as 1860 a limited spinning-mill was established, which counted numerous oj^eratives, and people who stood socially little above the operatives, amongst its founders. This spinning- mill, the Sun Mill, to-day one of tlie largest and best establish- ments in Oldham, has a brilliant record behind it. In the first ten years it was able already to declare dividends of from 10 to 30 per cent. Soon after it a great numl^r of similar undertakings came into life. All these formations emanated from people who could make a claim to special knowledge, and were still by no means separated socially, as it were, from the operative by a gulf. Fitted throughout with the best machinery, these mills were most keenly supervised by their shareholders. Thus they have in the period of trade depression of the " seventies " held up their heads in an acknowlerofits tends more than anything else to the softening of that class conflict which was calleular than anything else is the seaside. Especially crowdeil in those days by tn})pers is the Isle of Man and that seaside resort, Blackpool, situated in I^mcashire. Along with a clergyman of my acquaintance, who wished to visit his parishioners on one of these holiday days in Blackpool, I went to the seaside place mentioned. Arriving there by one of the excursion trains, we strode through the over-filled little town, consisting of lodging-houses, and betook ourselves to the beach. As far as the eye could follow, on the siinds surged thousands of j)eoi)le, well nourisheil and well dresseil ; the men mostly of that strong, rather plump build, as mostly appears to us in English- men ; the girls and women, in growth, stature, and colour of com- plexion, in many instances genuine Britons, along with a few Celtic types. "Ninety per cent, of these people," my companion informed me, "are mill-hands," i.e., operatives of the cotton in- were closed for four days. ' Have you no work to do, that you are closed ? What will your workmen do the whole time ?' ' We are ohlie^ed to close for anuual holidays,' was mv reply, 'and our workmen will in most cases go to some watering place or other for three or four days.' The incredulous smile with which this was received left no doubt whatever on my mind that I was risking my reputation for telling the truth. Not on this occasion alrer:itive, who formerly stood without the State, knew to-day how to attain an esteemed position within it. lie doubted, however, whether the operatives would use tlieir inlluence for helping forward on a large scale the changing of private undertakings into public ones, lie would not give his opinion about other branches of trade, because he held this ques- tion as one to be decided in each individual instance and accord- ing to practical considerations. In numerous cases, especially in London, the Socialists who demanded State undertakings might be right in regard to the municipalisation of water companies, tramways, gas-works, and docks ; regarding transport arrange ments it was questionable. All this he only knew from hearsay But legarding the cotton industry, a\ Inch he knew, he said : " Hands cvff." A State institution was here ini))ossible, because officials would defend the* world's market worse than private employers. A mere fraction of a penny often decided at the present time the battle of nations. In advanced economical and social relations private undertakings guaranteed the cheapest form of payment of the manager, who, at the same time, ensured the most skilled management. If Socialists pointed to the " limited " princii)le as a proof of the possibility of their ideas, they thought hereby of that imsound form where the shareholders themselves, standing quite aloof, w'ere often — only too often — wrongly led. In Oldham the shareholders were skilled employers. If, however, the (h'fference of em])loyer and worker could not be given up, extreme differences between rich and ])oor counter- balanced one another. By the fact that great capitalists fre- 204 THE COTTON TRADE IN ENGLAND quently withdrew their capital from one undertaking and divided it airongst many, it was proved that the function of great riches was slighter to-day than 50 years ago. In Oldham those limited concerns which were managed by directors from the operatives' class displaced the older private undertakings. Afi opposed to these temperate utterances the clergyman de- fended that social idealism which demanded the elevation of the poorest of the poor. This scene made clear to me that peculiar stage of the English labour movement, according to which the Uadical wing to a great extent shows the touch of a religious enthusiasm. As Ben Tillett, the leader of the dockers, said to me, he had to give a speech daily, but on Sundays he preached twice, and as Sidney Webb ascribes the last successful election to the County Council in the first degree to the Dissenters and their preachers, so also here the parson took the side of that helpless and deeply submerged mass of humanity, above which the taught and organised workers of Centralised Industry stand higher than the families comprising the House of Lords stand above him. A few weeks later my studies led me into a circle of operatives «»f one of the most important textile centres of Germany. I met here the same friendly reception, the same willingness to support scientific researches, also a similar social idealism. But it differed at once from that drawn above in that it did not stand in connec tion with the traditions of ideal goodness of humanity ; the opera - tives themselves as well, not the priests and women, were here the bearers of that idealism. On the other hand, there was a lack of manly criticism of the problems on the side of reasoning and understanding. Why should we tread the laborious path by which the English operative has bettered his position, since as- suredly in a fe.v years the great revolution must take place which will of itself bring everything wished for ? As I related this my comparison between German and English operatives to an industrial employer, he declared : German operatives are preferable for me, since their wishes and strivings are pluced in a cuckoo's home of clouds, which, when they think it to be near, again disappears in the distance. I could only reply to this that this weakness of German operatives also comes into expression in their work, and the carnivorous Englishman is, in the utmost degree, still the cheaper worker. AND ON THE CONTINENT. 205 CONCLUSION. In conclusion, there are two misunderstandings to be avoided. By no means is it to bo accepted, in the first place, that the present econon)ical and social conditions of the staple irdustry of Lanca- shire are in general those of English industry. Much rather, in the field of English textile industry, are the various stages of the develojiment of centralised industry to be seen at the present time side by side. Accordingly we meet liere also social conditions which possess much similarity with those of Lonca shire in the * thirties" and of the present German. If we go, say, for instance, frum Manchester to Bradford, the centre of the worsted industry, we enter into another economical as well as social world. Even the raw-material market is here less developed than that for cotton. While the spinner in Lanca- shire buys from week to week, the wool is sold at half-yearly auctions in Liverpool. Tlierewith there is a special class of wool- buyers necessary in Bradford, who attend to the mixing and combing of the wool on commission. Both occupations have; throughout, the character of a season business. They are done during one part of the year in day and night shifts, whereby the wages are low, and the conditions of labour are opposed to health. For instance, the wool-combers (one to every two combing machines), who labour, in the night shift, 60 hours per week at 120 deg. F., have no more than £1 per w^eek, and lose 20 weeks in the year for want of work. In economical development the worsted spinning and weaving of Bradford stands behind, compared with Lancashire; 10,000 spindles are given me as the average number for the worsted- spinning mills of Yorkshire, and 60 to 100 looms for the average weaving-mills in Bradford. Where there are exceptionally large mills they do not depend upon the "limited" principle, which is in general little developed, but on the monopoly of some specialty or other. Hereto belong, for instance, the weaving-mill s in Saltaire. 206 THE COTTON TRADE IN ENGLAND In the same way the conditions of labour in the worst«d- sj)inning mills of Yorkshire and the " stuff goods " weaving-mills of Bradford are far below those in Lancashire. The female opera- tives in the spinning-mills do not earn above 10s. per week, and the weavers in Bradford between 7s. and 16s. The operatives' houses which I visited in Bradford, as well as in other places of Yorkshire, are far behind those in Lancashire. Especially fre- quent are the so-called back-to-back houses, which have no back yard, and often enough have only two rooms, one above the other — the older type of English operatives* houses, which in Lanca- shire are dying out more and more. But, remarkably enough, these houses are not only relatively, but frequently ab.solutely, dearer than in Lancashire, since the operative here did not under- stand, by means of co-operative Imilding societies, to press down rents in general (1). The operatives are less organised, and remarkably enough Brad- ford is tiie only place wliere, for the coming Parliamentary elec- tions, special I^abour candidates are in the field, whilst otherwise, as is well known, the operatives in England attend to their in- terests within the political parties. The relation between em- ployed and employers is extremely strained, and reminds one of the conditions of those German mill districts in which the labour movement has severed the relations of olden times. But especially hated is the relation, in those gigantic concerns above mentioned, which outwardly kept up the old patriarchal dominion. A ])eculiar light flashes upon the state of affairs if we consider that it does not here by any mejins depend upon a staple industry fostered by export, which, like that of Lancashire, dominates in its branch the world's market. As is known, there exists between the Derman and English worsted industries certainly a far-reaching division of labour, which prevents them in many respects from being close and imme- diate competitors. We shall not, however, be far ^^Tong, looking at everything all round, if we view the German and English in- dustries in this branch as equally important in economical de- velopment. Tlierewith there are similar social conditions between 1. Thus the operatives' dwellings in Manningrham, near Bradford, are not only far worse, but in fact dearer, than those in Oldham — 4s. 6d. to 5s. 6d. per week, against .Ss. 6d. to 4s. 6d. A better-class dwelling-house, which in Oldham or Hyde would cost Gs. per week, cannot be got in Bradford under 8s. AND ON THE CONTINENT. 207 both: therewith the difference letween Bradford and Lancashire, although both are only separated by an hour's railway journey. But still further proofs of the dependence of the social on economical conditions are shown by the industry of Yorkshire. In different districts of this county woollen weaving still exists as a cottage industry, as in Oldham, Skelmanthorpe, Clayton West, Scisset, and Darby Dale. The position of the hand-weavers still employed here reminded me in many respects about what has been said regarding the hand-weaving of Lancashire in the " thirties." While at the present time in Lancashire we only dis- cover with difficulty the last examples of this once numerous class, they still form in Yorkshire the main population of the small weaving villages mentioned ; and although, indeed, children can scarcely be taught it any longer, the complete dying-out of hand-weaving may still extend to another generation. . The num- ber of hand-weavers in the woollen industry may, however, even to-day, not reach to above a few hundreds. The woollen si)inning and weaving, economically and socially little advanced, which has its seat in and about I^eeds, is also, as well, dispersed in small undertakings. The average size of these spinning-mills is only from 2,000 to 3,000 spindles ; of the weaving-mills, only 40 to 50 looms. In most cases the mills prepare the yam, or a portion of it, for their own use. The largest spinning-mill in Batley has, for instance, no more than 7,680 spindles. Differently from worsted yarns, woollen yarns are spun with a machine similar to the self-actor in the cotton industry. I noticed, in visiting several of these woollen-spinning mills, what a large number of operatives were re<]uircd in com- parison with Lancashire. A pair of mules here has no more than 600 to 800 spindles, but there are, however, 3 to 4 operative's for minding them ; added to which comes the spinner as well, who looks after two pairs of mules — i.e., 1,200 to 1,600 spindles. In the same ratio the wages are lower than in Lancashire, and the labour conditions, although, on account of the small mills, not so extreme as in Bradford, are just as little desirable. In the same manner, the woollen weaving is by no means involved in the world's market, and solely satisfies a limited and entirely home demand. On the other hand, there is within the whole English woollen and worsted industry only one branch which, in the same way as 208 THE COTTON TRADE IN ENGLAND the staple iudustry of Lancashire, maintains the front rank in the world's market — the weaving of those line worsteds for men's clothing in and about Huddersfield. And, as a peculiar confirma- tion of our proposition, Huddersfield not only pays the best wages within the whole woollen and worsted industry of England, but its social conditions are the most advanced, and show, as wfeU, much similarity with I^ancashire, which, the further one goes into York- shire, the more does it disappear. Tlie weaver in Huddersfield earns double as much as the weaver in Bradford (20s. to 2 is.). If he does not also mind more looms than the weaver in Bradford — mostly one, exceptionally two — the machinery to be tended by him is certainly far more complicated and costly. A loom in Huddersfield represents three times as much capital as a loom in Bradford; therefore here is also the more f^j^vourable position of the operatives to be attributed to a ' further developed replacement of labour by capital. But, on the other hand, Huddersfield is not only a famous centre of the co- operative movement^ which early extended thereto from out of Lancashire, but also the seat and outlet of a trade-union organisa- tion for the whole woollen and worsted industry, while the societies of the operatives in Bradford and I^eeds still bear that semi-jiolitical and Radical character wliich always denotes the labour organisations in the first stage of centralised industrial I development. But, in order to see the most striking confirmation of our pro- position above given, let us go to Macclesfield, that ancient little town in Cheshire, which is the seat of the English silk industry. The technicalities of the English silk industry are the same as long ago. Tlie jjrinciple of the industry is here in its widest extent still of a cottage-industrial character. The position of the hand-weavers is an extremely low one, and reminded me even of the bad cottage-industrial conditions in Germany. Tlie ordinary weaver earns about 10s. per week. From this, however, a great portion is deducted for rent, loom, winding, etc. In any case, I confirmed a great many, and these not exceptional cases, in which not more than 5s. net per week was earned. Still worse is the extraordinary irregularity of work. Some of these silk- weavers assured me that they searched unsuccessfully for work several months, even half the year. The household budgets of these AND ON THE CONTINENT. 209 people, of which I made up several, reminded me of those of the Zittau hand-weavers mentioned by Rechenberg (2). Interesting observations were made in tliis direction by a hand- weaver from Macclesfield, formerly president of the trade society of the hand-weavers — since dissolved — on a journey to the Con- tinent in company with the President of the Macclesfield Chamber of Commerce (3). His report shows that the position of the hand- weavers in Macclesfield is worse than that of their like at Crefeld. " It is not to be denied," says the report, " that the hand-weavers of Crefeld are far better clothed than the weavers at Macclesfield " (page 24). "We came to the conclusion," continues the report, "that the average wages of the weavers at Crefeld were higher, and the standard of their social comfort was better, than in Macclesfield ; that extreme poverty, in which a greater portion of our cottage weavers are involved, does not exist in Crefeld" (p. 26). On the other hand, the report says in regard to Maccles- field : " If lower wages are a means against the dying-out of an industry, Macclesfield ought to-day to be one of the most flourish- ing communities in the world " (page 38). " No silk weavers on the whole of the Continent have such long hours of labour as our weavers" (page 47). In spite of all this it is not to be denied that the industry of Macclesfield is being strangled by a continuous decline ; that it is beaten, especially by Crefeld, in the English market itself (4). This is due to various reasons. For one, the better accommo- dating of Crefeld to the taste of the market, especially of the London market, thanks to the better technical instruction, the superiority in designs and colours, etc. The consequences of these are that the weavers in Crefeld have far more regular em- ployment, that they also receive longer warps than in Macclesfield (150 ells against 20 to 40 ells). The German industry possesses here, therefore, according to this report, in a peculiar degree that advantage, as far as this is possible in the branch of a hand and luxury industry, which otherwise in general (for instance, also 2. Compare pp. 42 and 43. 3. " A Macclesfield Handloom Silk Weaver at Lyons, Zurich, and Crefeld," 1886. The publication of the report of the journey was refused by the Chamber of Commerce at Macclesfield. For a glance at the report I am indebted to the gentleman who travelled with him. 4. Thus the report of the Travelling Commission closed with the words • — << Give back to injured Macclesfield her trade, long lost to Crefeld." 210 THE COTTON TRADE IN ENGLAND in calico-printing) is in favour of England — the character of a staple industry. But something else comes here into consideration, continues the report. The weavers at Crefeld are far more industrious and Y^ capable than those needy fellow-creatures who, in the streets of Macclesfield, often seek employment for weeks and months unsuc- cessfully. " One fact specially drew our attention : the Crefeld weavers do not bear that anxious and desponding expression of features of people who are to-day miserable, and are yet afraid of the next day. Just the op[»osite, they present an intellectual elasticity which, unfortunately, is not general among the weavers of Macclesfield " (p. 24). Respecting drinking, this is on the Rhine a form of sociability, in Macclesfield a vice. The weaver of Crefeld is different from his fellows in Macclesfield, thoughtful about saving time at his work — as a rule in other branches just the advantage of the Englishman compared with German opera- tives. But the greater capacity of the German silk-weavers comes all the more into coneideration ;;ince he works on more valuable and better looms. / Therefore, to a certain extent, the advantage of high-standing ' labour shows itself in more perfected working tools ; also on the field of cottage-industry. But in silk weaving, at present, the change to centralised industry has set itself into motion, and changes the cottage industrial conditions we have delineated by going over to the power-loom. Also on this new field the standard of living of the operatives in Germany appears by no means to be lower than in England, as is otherwise generally the case. As at the time of the great strike in the silk-plush weaving-mills of Lister, at Manningham, in 1891, the demand for lowering wages was founded by the directors on the fact that the wages would even still be far higher than in Germany, one of the chief repre- sentatives of the Crefeld industry in this branch addressed a letter to the " Bradford Observer," in which he proved that the corre- sponding weekly earnings of the operatives in Crefeld were not lower, but rather higher than in England (5). 6. The letter was as follows : — " Sir, — In reference to the report of the annual meeting of Lister and Co., Limited, you gave in your paper of the 4th inst., it will perhaps he welcome to receive some rectification with regard to Crefeld weaving wages. <»The Chairman (Mr. S. C. Lister) said that in offering 14fl. wages AWD ON THE CONTINENT. 211 However this may be, in any case the transition to the power- loom, which has also begun in Macclesfield, contains within it a step forward for the weaving population. The weekly earnings in the power weaving-mills of Macclesfield amount to more than double, even triple, the earnings of the hand-weavers. An ell of plain goods, 22 in. wide, costs therewith for weaving, on the hand- loom, Is. 4d. ; on the power-loom, 8d. On the other hand, a hand-loom rejjresents a value of £8 to £10; a power-loom — i.e., only the working macliine, exclusive of building and driving- power — £30 to £35. Tlierefore also here appears replacement of labour by capital, and therewith a raising of the standard of living of the operative. This tendency of centralised industry shows itself also in that the aristocracy of labour in Macclesfield, apart from the power- weaving only just rising up, has its seat in the silk-spinning mills, centralised industrial concerns which, far superior, look down upon the surrounding weavers' cots (6). If we glance back at what has been said, we can extract from it the following confirmation of our views developed above : — 1. The weekly earnings and the standard of living of the operative in the English cotton industry is about double as high and 15 per cent — which was equal to IGs. 3d. per week— the directors of the company were offering just double what the Crefeld manufacturers were paying to their velvet weavers. In stating this Mr. Lister shows himself to be very badly informed. The weavers in our factory can easily earn 20s. to 21s. a week, and those who are rather skilful earn 26s. to 28s. a week (56 to 60 hours' work), some even more. All large Crefeld manufacturers pay about the same wages. — I am, etc., " Crefeld, 16th Feb. , 1891. " M. de Greiff." 6. Also in another branch, akin to the textile industry, which seemed up to now in a hopeless condition, the appearing centralisation has improved at last the conditions of working. The misery of the female workers in made-up clothing and dressmaking is well known. Centralised industry in the last ten years has seized this branch of industry, and presses hard the cottage industry in articles of general consumption. In Leeds, the centre of this industry, there are to-day about 20 clothing establishments. If we visit the largest we find a tre- mendous building, reminding us of the largest spinning-mills of Lancashire. One thousand three hundred and fifty girls and 300 men are at work ; up to forty folds of cloth are cut through at one operation by the machine ; 10,000 to 13,000 suits are made per week. All labour is accomplished by the most improved machinery, of which, for instance, the button-hole machine makes a button- hole and hems it with thick stitches in 25 to 30 seconds. The operatives who mind these machines are not only occupied under better working conditions as to ventilation, etc. , but are also paid far higher wages than the tailoresses working without mechanical power. 1- 212 THE COTTON TRADE IN ENGLAND as in the woollen and worsted industry ; in the latter about double as high as in silk-weaving at Macclesfield. Corresponding to this, the cotton industry is the oldest and one of the most developed centralised industries of the world. The English woollen and worsted industry is economically not so far advanced ; it stands, as it were, in certain respects on that first step of centralised- industrial development we have so often spoken of. Correspond- ing to this is the degree of social development; in it to-day pre- pouderates class struggle and class hatred, as opposed to the highly-developed conditions of labour in Lancashire, where the period of class struggles falls back into the "thirties" and "forties." Finally, the silk industry shows, along with the worst position of the operatives, also technical conditions remaining extraordinarily backward. 2. The position of the operatives of the German cotton industry is far lower than that of their contemporaries in Lancashire. In the woollen industry the English stand only a little above the German ; decidedly higher only in the district of Hudders- field. In the silk industry the German operatives enjoy rather a better standard of living than the English. On the other hand, the English cotton industry in neutral markets is far ahead of the German. In woollen and worsted both stand about equal ; only the Huddersfield industry is superior in foreign competition. On the other hand the German silk industry is driving back the English in its own country. 3. England, as the more economically advanced country, has its strength on that field of the textile industry in which labour and capital mean almost everything, and the raw material is of far less value in the articles produced. Tlie younger but upward- striving industrial country has thrown itself first, with the greatest success, on textile productions in which material as compared with labour and capital come largely into consideration, both of which latter production elements are cheaper in England than in Ger- n)any. Therewith England produces more goods for the million, Germany goods for the use of the wealthy classes. The first de- mand centralised undertakings in the highest degree, the latter, on account of the vagaries of fashion, taste, etc., are identified easiest with smaller undertakings. The highest standard of living of the working classes, therefore, shows highly developed exporting centralised industries, the reason for which, as above ascertained, lies in the continuous replacement AND ON THE CONTINENT. 213 of rf church, the prominent features of which are apparent far out of labour by capital. But from this follows the refutation of an objection which has perhaps been met with above by many readers. For instance, readers perhaps ask, Do not some of the operatives have their means of livelihood withdrawn by the continuous re- placement of labour by capital? If one operative attends to as many machines as formerly three operatives, the one may well receive a higher wage, but what becomes of the other two? We saw, opposed to this, how that development was just only possible on the ground of economical elevation of the industry concerned. The English silk industry cannot, in consequence, go over to the power-loom, because its market is not stable; the elevation of the cotton industry, on the other hand, in spite of all technical progress, allowed an increase in the number of opera- tives. There were in 1835, 220,134 operatives, against 504,069 in 1885, engaged in it. I should like to avoid a further misunderstanding — that is, that I neglect, tioncerning the economical development, the im- jiortance of social Uioments. When I pictured those social move- ments by means of which the English operative has attained his present height, especially the change of public opinion accompany- ing this development, I found already the necessity of proving the eccrcmical correctness of this development. If one up to then could not object that the high standard of living of the English operative was built upon certain foundations ; that it would be- come untenable with the rise of competing industries in countries of socalled cheaper labour ; that it must become forced back by the pressure of the world's market, I tried, on the contrary, in what has gone before to prove, on the field of the oldest centralised industry of the world, how it was just the pressure of the world's! market to which centralised industry and machine-making were indebted for their origin, and how the continual development of r~^ both necessitated an elevation of the classes serving them. If the , economical correctness of social progress is maintained, this is not to be understood as if the social progress is always or only fre- quently caused from a known understanding of its economical advantages. In this respect those earlier social movements had, alongside, at least a strong influence. Allow me to make use of a scene to throw some light on tins relation. The height which certain classes of skilled English industrial workers have reached is similar to the towering steeple 214 THE COTTON TRADE IN ENGLAND in the moving sea, showing the discouraged captain the way to the harbour through storm and waves. That steeple rests upon columns, oF which no slight portion has been erected by the benevolence of the citizens. But these columns would not bear the steeple, and the benevolence of the citizens would avail nothing, if the building, instead of being on sure rocks, was erected on shifting sands. Similarly, all social movements are fruitless without a powerful economical foundation of strong and technically progressive centralised industries. ^ OF THE UNIVERSITY cr C^LIFOP^ F /OG -^- : __ SL DCTI IDk.1 ^m^a .. • — ^. -__ ^ PFTIIDKI /-in^"" --"^ ~ RETURN TO the circulation desk of any university of California Library or to the NORTHERN REGIONAL LIBRARY FACILITY SS 400 Richmond Field Stat.on university of Califom.a Richmond, CA 94804-4698 „;„e:,"s'and ,eo«,es ^., b. mad, 4 aa,a prior to due date GENERAL LIBRARY - U.C. BERKELEY '>*'■■'*■ \''i' '1 '':•.'*' ■ '' *'.*i. ■ '■•■ ^^^^^ '«''-v> w-V/^'y*' ••-■ ''^ -^ ■'.'•■•'^ , »> - > ■'-' J '- ii'; '"^* ;';-'.. , -,''