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After passing a Factory Act of some importance, which, however, was only the forerunner of much subsequent legislation, the House of Commons engaged in Poor Law Reform. In the winter of 1832-3 a very startling state of things was disclosed. In a period of great general prosperity, that portion of England in which the Poor Laws had their most extensive operation, and in which by much the largest expenditure of poor-rates had been made, was the scene of daily riot and nightly incendiarism. There were ninety-three parishes in four counties of which the population was 113,147 and the Poor-Law expenditure £81,978, or fourteen shillings and fivepence per head; and there were eighty parishes in three other counties the population of which was 105,728 and the Poor-Law expenditure £30,820, or five shillings and ninepence a head. In the counties in which the Poor-Law expenditure was large the industry and skill of the labourers were passing away, the connection between the master and servant had become precarious, the unmarried were defrauded of their fair earnings, and riots and incendiarism prevailed. In the counties where the expenditure was comparatively small, there was scarcely any instance of disorder; mutual attachment existed between the workman and his employer; the intelligence, skill, and good conduct of the labourers were unimpaired, or increased. This striking social contrast was but a specimen of what prevailed throughout large districts, and generally throughout the south and north of England, and it proved that either through the inherent vice of the system, or gross maladministration in the southern counties, the Poor Law had a most demoralising effect upon the working classes, while it was rapidly eating up the capital upon which the employment of labour depended. This fact was placed beyond question by a commission of inquiry, which was composed of individuals distinguished by their interest in the subject and their intimate knowledge of its principles and details. Its labours were continued incessantly for two years. Witnesses most competent to give information were summoned from different parts of the country. The Commissioners had before them documentary evidence of every kind calculated to throw light on the subject. They personally visited localities, and examined the actual operation of the system on the spot; and when they could not go themselves, they called to their aid assistant commissioners, some of whom extended their inquiries into Scotland, Guernsey, France, and Flanders; while they also collected a vast mass of interesting evidence from our ambassadors and diplomatic agents in different countries of Europe and America. It was upon the report of this commission of inquiry that the Act was founded for the Amendment and Better Administration of the Laws relating to the Poor in England and Wales (4 and 5 William IV., cap. 76). A more solid foundation for a legislative enactment could scarcely be found, and the importance of the subject fully warranted all the expense and labour by which it was obtained.

The statutory provision for all who cannot support themselves had now existed for upwards of 280 years. There was no considerable increase of population in England from the period when the Poor Laws were established up to the middle of the eighteenth century. Its people have been distinguished for their industry, thrift, and forethought. No other nation has furnished such unquestionable proofs of the prevalence of a provident and independent spirit. From the year 1601, when the Act 43 Elizabeth, the foundation of the old code of Poor Laws, was put in force, to the commencement of the war with Napoleon, there had been scarcely any increase of pauperism. In 1815 there were 925,439 individuals in England and Wales, being about one-eleventh of the then existing population, members of friendly societies, formed for the express purpose of affording protection to the members in sickness and old age, and enabling them to subsist without resorting to the parish fund. It may be asked, How was this state of things compatible with the right to support at the expense of the parish which the law gave to the destitute? The answer is, that the exercise of that right was subjected to the most powerful checks, and restricted in every possible way. In 1723 an Act was passed authorising the church-wardens and overseers, with the consent of the parishioners, to establish a workhouse in each parish; and it was at the same time enacted that the overseers should be entitled to refuse relief to all who did not choose to accept it in the workhouse, and to submit to all its regulations. In consequence of this Act workhouses were erected in many parishes, and they had an immediate and striking effect in reducing the number of paupers. Many who had previously received pensions from the parish preferred depending on their own exertions rather than take up their abode in the workhouse.

The workhouse test, then, operated powerfully in keeping down pauperism; but another cause came into operation still more influential, namely, the Law of Settlement. By the Act 13 and 14 Charles II. a legal settlement in a parish was declared to be gained by birth, or by inhabitancy, apprenticeship, or service for forty days; but within that period any two justices were authorised, upon complaint being made to them by the churchwardens or overseers, if they thought a new entrant likely to become chargeable, to remove him, unless he either occupied a tenement of the annual value of ten pounds, or gave sufficient security that he would indemnify the parish for whatever loss it might incur on his account. And by a subsequent Act, 3 William III., every newcomer was obliged to give notice to the churchwarden of his arrival. This notice should be read in church after divine service, and then commenced the forty days during which objection might be made to his settlement. In case of objection, if he remained it was by sufferance, and he could be removed the moment he married, or was likely to become chargeable. A settlement might also be obtained by being hired for a year when unmarried or childless, and remaining the whole of that time in the service of one master; or being bound an apprentice to a person who had obtained a settlement. The effect of this system was actually to depopulate many parishes. The author of a valuable pamphlet on the subject, Mr. Alcock, stated that gentlemen were led by this system to adopt all sorts of expedients to hinder the poor from marrying, to discharge servants in their last quarter, to evict small tenants, and pull down cottages; so that several parishes were in a manner depopulated, while England complained of want of useful hands for agriculture, for manufactures, and for the land and sea services.

But we come now to a new phase in the Poor-Law system, rather a complete revolution, by which the flood-gates of pauperism were opened, and all those barriers that had restrained the increase of population were swept away. The old system had been somewhat relaxed in 1782 by Mr. Gilbert's Act, which, by incorporating parishes into unions, prevented grasping landlords and tenants from feeling that intense interest in the extinction of population and pauperism which they did when the sphere was limited to a single parish. But in the year 1795 the price of corn rising from 54s. to 74s., and wages continuing stationary, the distress of the poor was very great and many of the able-bodied were obliged to become claimants for parish relief. But instead of meeting this emergency by temporary expedients and extra grants suited to the occasion, the magistrates of Berks and some other southern counties issued tables showing the wages which they affirmed every labouring man ought to receive, not according to the value of his labour to his employer, but according to the variations in the number of his family and the price of bread; and they accompanied these tables with an order directing the parish officers to make up the deficit to the labourer, in the event of the wages paid him by his employer falling short of the tabulated allowance. This was the small beginning of a gigantic evil. The practice originating in a passing emergency grew into a custom, and ultimately assumed the force of an established right, which prevailed almost universally, and was productive of an amount of evil beyond anything that could have been conceived possible. The allowance scales issued from time to time were framed on the principle that every labourer should have a gallon loaf of standard wheaten bread weekly for every member of his family, and one over. The effect of this was, that a man with six children, who got 9s. a week wages, required nine gallon loaves, or 13s. 6d. a week, so that he had a pension of 4s. 6d. over his wages. Another man with a wife and five children, so idle and disorderly that no one would employ him, was entitled to eight gallon loaves for their maintenance, so that he had 12s. a week to support him. The increase of allowance according to the number of children acted as a direct bounty upon early marriage.

The farmers were not so discontented with this allowance system as might be supposed, because a great part of the burden was cast upon other shoulders. The tax was laid indiscriminately upon all fixed property; so that the occupiers of villas, shopkeepers, merchants, and others who did not employ labourers, had to pay a portion of the wages for those that did. The farmers were in this way led to encourage a system which fraudulently imposed a heavy burden upon others, and which, by degrading the labourers, and multiplying their numbers beyond the real demand for them, must, if allowed to run its full course, have ultimately overspread the whole country with the most abject poverty and wretchedness. There was another interest created which tended to increase the evil. In the counties of Suffolk, Sussex, Kent, and generally through all the south of England, relief was given in the shape of house accommodation, or free dwellings for the poor. The parish officers were in the habit of paying the rent of the cottages; the rent was therefore high and sure, and consequently persons who had small pieces of ground were induced to cover them with those buildings.

The evils of this system had reached their height in the years 1832-3. That was a time when the public mind was bent upon reforms of all sorts, without waiting for the admission from the Tories that the grievances of which the nation complained were "proved abuses." The Reformers were determined no longer to tolerate the state of things in which the discontent of the labouring classes was proportioned to the money disbursed in poor rates, or in voluntary charities; in which the young were trained in idleness, ignorance, and vice—the able-bodied maintained in sluggish and sensual indolence—the aged and more respectable exposed to all the misery incident to dwelling in such a society as that of a large workhouse, without discipline or classification, the whole body of inmates subsisting on food far exceeding, both in kind and in amount, not merely the diet of the independent labourer, but that of the majority of the persons who contributed to their support; in which a farmer paid ten shillings a year in poor rate, and was in addition compelled to employ supernumerary labourers, not required on his farm, at a cost of from £100 to £250 a year; in which the labourer had no need to bestir himself to seek work or to please his master, or to put a restraint upon his temper, having all a slave's security for subsistence, without the slave's liability to punishment; in which the parish paid parents for nursing their little children, and children for supporting their aged parents, thereby destroying in both parties all feelings of natural affection and all sense of Christian duty. The Government, therefore, resolved to apply a remedy. The following is a brief outline of the main features of the measure they proposed, and which was adopted by the legislature. They found the greatest evils of the old system were connected with the relief of the able-bodied; and in connection with that lay the chief difficulty of administering relief. It was, above all things, an essential condition that the situation of the pauper should not be made—really or apparently—so desirable as that of independent labourers of the lowest class; if it were, the majority of that class would have the strongest inducements to quit it, and get into the more eligible class of paupers. It was necessary, therefore, that an appeal to the parish should be a last resource—that it should be regarded as the hardest taskmaster and the worst paymaster. This principle was embodied in the Poor Law Amendment Act; and the effects which quickly followed on its operation were most marked and salutary. Able-bodied paupers were extensively converted into independent labourers, for whose employment a large fund was created by the reduction of parochial expenditure; next followed a rise in wages; then a diminution, not only of pauper marriages, but of early and imprudent marriages of all sorts; and lastly, there was a diminution of crime, with contentment among the labourers, increasing with their industry: relief of a child was made relief to the parent, and relief of a wife relief to the husband. In fact, the law combined charity with economy.

The Commissioners recommended the appointment of a central board to control the administration of the Poor Laws, with such assistant Commissioners as might be found requisite, the Commissioners being empowered and directed to frame and enforce regulations for the government of workhouses, and as to the nature and amount of the relief to be given and the labour to be exacted; the regulations to be uniform throughout the country. The necessity of a living, central, permanent authority had been rendered obvious by the disastrous working of the old system, arising partly from the absence of such control—an authority accumulating experience in itself, independent of local control, uninterested in favour of local abuse, and responsible to the Government. A Board of three Commissioners was therefore appointed under the Act, themselves appointing assistant Commissioners, capable of receiving the powers of the Commission by delegation. The anomalous state of things with regard to districts was removed by the formation of unions.

In 1831 there were in England and Wales 56 parishes containing less than 10 persons; 14 parishes containing but from 10 to 20 persons, the largest of these, on the average, containing 5 adult males; and there were 533 parishes, containing from 20 to 50 persons, the largest of which would give 12 adult males per parish. It was absurd to expect that such parishes could supply proper machinery for the levying and collecting of rates, or for the distribution of relief. It was found that a large number of overseers could only certify their accounts by signing with a mark, attested by the justice's clerk. The size of the parishes influenced materially the amount of the poor-rate—the smallest giving the greatest cost per head. For example, the hundred absolutely largest parishes, containing a population of 3,196,064, gave 6s. 7d. per head; the hundred intermediate parishes, containing a population of 19,841, gave 15s. a head; while the hundred smallest parishes from which poor-rate returns were made, with a population of 1,708, gave £1 12s. a head. The moral effects were still more remarkable. In the large parishes 1 in 13 was relieved; in the intermediate, 1 in 12½; and in the smallest, 1 in 4, or 25 per cent. of the population, were paupers. Hence arose the necessity of a union of parishes with a common workhouse and a common machinery, and with paid permanent officers for the administration of relief.

The most important change in the Settlement Law was the repeal of the settlement by hiring and service, which prevented the free circulation of labour, interfered with the liberty of the subject, and fixed an intolerable burden upon the parish. This law was repealed by the 64th and 65th sections of the Act; the settlement by occupation of a tenement, without payment of rates, by the 66th; while other sections effected various improvements in the law of removal. The old law made it more prudent for a woman to have a number of children without a husband than with a husband, as she could throw the burden of their support upon the parish, or through the parish force the putative father to support them; and if he could not give security to pay, he was liable to imprisonment. By this means marriages were often forced. These evils were remedied by rendering the unmarried mother liable for the maintenance of her children, by rendering it unlawful to pay to her any sums which the putative father might be compelled to contribute for the reimbursement of the parish, and by rendering it necessary that evidence additional to that of the mother should be required to corroborate her charge against the person accused of being the father. The law worked fairly well, though it was discovered that many mothers shrank from prosecuting the fathers of their babies at the price of disclosing their shame, and thus illegitimate children were brought up in the utmost squalor.