On the Economy of Machinery and Manufactures

by Charles Babbage

422. In enquiring into the effect produced, or to be apprehended from any particular mode of taxation, it is necessary to examine a little into the interests of the parties who approve of the plan in question, as well as of those who object to it. Instances have occurred where the persons paying a tax into the hands of government have themselves been adverse to any reduction. This happened in the case of one class of calico-printers, whose interest really was injured by a removal of the tax on the printing: they received from the manufacturers, payment for the duty, about two months before they were themselves called on to pay it to government; and the consequence was, that a considerable capital always remained in their hands. The evidence which states this circumstance is well calculated to promote a reasonable circumspection in such enquiries.

Question. Do you happen to know anything of an opposition from calico printers to the repeal of the tax on printed calicoes?

Answer. I have certainly heard of such an opposition, and am not surprised at it. There are very few individuals who are, in fact, interested in the nonrepeal of the tax; there are two classes of calico-printers; one, who print their own cloth, send their goods into the market, and sell them on their own account; they frequently advance the duty to government, and pay it in cash before their goods are sold, but generally before the goods are paid for, being most commonly sold on a credit of six months: they are of course interested on that account, as well as on others that have been stated, in the repeal of the tax. The other class of calico-printers print the cloth of other people; they print for hire, and on re-delivery of the cloth when printed, they receive the amount of the duty, which they are not called upon to pay to government sooner, on an average, than nine weeks from the stamping of the goods. Where the business is carried on upon a large scale, the arrears of duty due to government often amount to eight, or even ten thousand pounds, and furnish a capital with which these gentlemen carry on their business; it is not, therefore, to be wondered at that they should be opposed to the prayer of our petition.

423. The policy of giving bounties upon home productions, and of enforcing restrictions against those which can be produced more cheaply in other countries, is of a very questionable nature: and, except for the purpose of introducing a new manufacture, in a country where there is not much commercial or manufacturing spirit, is scarcely to be defended. All incidental modes of taxing one class of the community, the consumers, to an unknown extent, for the sake of supporting another class, the manufacturers, who would otherwise abandon that mode of employing their capital, are highly objectionable. One part of the price of any article produced under such circumstances, consists of the expenditure, together with the ordinary profits of capital: the other part of its price may be looked upon as charity, given to induce the manufacturer to continue an unprofitable use of his capital, in order to give employment to his workmen. If the sum of what the consumers are thus forced to pay, merely on account of these artificial restrictions, where generally known, its amount would astonish even those who advocate them; and it would be evident to both parties, that the employment of capital in those branches of trade ought to be abandoned.

424. The restriction of articles produced in a manufactory to certain sizes, is attended with some good effect in an economical view, arising chiefly from the smaller number of different tools required in making them, as well as from less frequent change in the adjustment of those tools. A similar source of economy is employed in the Navy: by having ships divided into a certain number of classes, each of which comprises vessels of the same dimensions, the rigging made for one vessel will fit any other of its class; a circumstance which renders the supply of distant stations more easy.

425. The effects of the removal of a monopoly are often very important, and they were perhaps never more remarkable than in the bobbin net trade, in the years 1824 and 1825. These effects were, however, considerably enhanced by the general rage for speculation which was so prevalent during that singular period. One of the patents of Mr Heathcote for a bobbin net machine had just then expired, whilst another, for an improvement in a particular part of such machines, called a turn again, had yet a few years to run. Many licenses had been granted to use the former patent, which were charged at the rate of about five pounds per annum for each quarter of a yard in width, so that what is termed a six-quarter frame (which makes bobbin net a yard and a half wide) paid thirty pounds a year. The second patent was ultimately abandoned in August, 1823, infringements of it having taken place.

It was not surprising that, on the removal of the monopoly arising from this patent, a multitude of persons became desirous of embarking in a trade which had hitherto yielded a very large profit. The bobbin net machine occupies little space; and is, from that circumstance, well adapted for a domestic manufacture. The machines which already existed, were principally in the hands of the manufacturers; but, a kind of mania for obtaining them seized on persons of all descriptions, who could raise a small capital; and, under its influence, butchers, bakers, small farmers, publicans, gentlemen's servants, and, in some cases, even clergymen, became anxious to possess bobbin net machines.

Some few machines were rented; but, in most of these cases, the workman purchased the machine he employed, by instalments of from L3 to L6 weekly, for a six quarter machine; and many individuals, unacquainted with the mode of using the machines so purchased, paid others of more experience for instructing them in their use; L50 or L60 being sometimes given for this instruction. The success of the first speculators induced others to follow the example; and the machine-makers were almost overwhelmed with orders for lace frames. Such was the desire to procure them, that many persons deposited a large part, or the whole, of the price, in the hands of the frame-makers, in order to insure their having the earliest supply. This, as might naturally be expected, raised the price of wages amongst the workmen employed in machine-making; and the effect was felt at a considerable distance from Nottingham, which was the centre of this mania. Smiths not used to flat filing, coming from distant parts, earned from 30s. to 42s. per week. Finishing smiths, accustomed to the work, gained from L3 to L4 per week..The forging smith, if accustomed to his work, gained from L5 to L6 per week, and some few earned L10 per week. In making what are technically called insides, those who were best paid, were generally clock- and watchmakers, from all the districts round, who received from L3 to L4 per week. The setters-up—persons who put the parts of the machine together—charged L20 for their assistance; and, a six quarter machine, could be put together in a fortnight or three weeks.

426. Good workmen, being thus induced to desert less profitable branches of their business, in order to supply this extraordinary demand, the masters, in other trades, soon found their men leaving them, without being aware of the immediate reason: some of the more intelligent, however, ascertained the cause. They went from Birmingham to Nottingham, in order to examine into the circumstances which had seduced almost all the journeymen clockmakers from their own workshops; and it was soon apparent, that the men who had been working as clockmakers in Birmingham, at the rate of 25s. a week, could earn L2 by working at lace frame-making in Nottingham.

On examining the nature of this profitable work, the master clockmakers perceived that one part of the bobbin net machines, that which held the bobbins, could easily be made in their own workshops. They therefore contracted with the machine-makers, who had already more work ordered than they could execute, to supply the bobbin carriers, at a price which enabled them, on their return home, to give such increased wages as were sufficient to retain their own workmen, as well as yield themselves a good profit. Thus an additional facility was afforded for the construction of these bobbin net machines: and the conclusion was not difficult to be foreseen. The immense supply of bobbin net thus poured into the market, speedily reduced its price; this reduction in price, rendered the machines by which the net was made, less valuable; some few of the earliest producers, for a short time, carried on a profitable trade; but multitudes were disappointed, and many ruined. The low price at which the fabric sold, together with its lightness and beauty, combined to extend the sale; and ultimately, new improvements in the machines, rendered the older ones still less valuable.