On the Economy of Machinery and Manufactures

by Charles Babbage

Supposing, indeed, that the same machinery which is used in England could be obtained on the Continent, it is the opinion of some of the most intelligent of the witnesses that a want of arrangement in foreign manufactories, of division of labour in their work, of skill and perseverance in their workmen, and of enterprise in the masters, together with the comparatively low estimation in which the master manufacturers are held on the Continent, and with the comparative want of capital, and of many other advantageous circumstances detailed in the evidence, would prevent foreigners from interfering in any great degree by competition with our principal manufacturers; on which subject the Committee submit the following evidence as worthy the attention of the House:

I would ask whether, upon the whole, you consider any danger likely to arise to our manufactures from competition, even if the French were supplied with machinery equally good and cheap as our own? They will always be behind us until their general habits approximate to ours; and they must be behind us for many reasons that I have before given.

Why must they be behind us? One other reason is, that a cotton manufacturer who left Manchester seven years ago, would be driven out of the market by the men who are now living in it, provided his knowledge had not kept pace with those who have been during that time constantly profiting by the progressive improvements that have taken place in that period: this progressive knowledge and experience is our great power and advantage.

It should also be observed, that the constant, nay, almost daily, improvements which take place in our machinery itself, as well as in the mode of its application, require that all those means and advantages alluded to above should be in constant operation: and that, in the opinion of several of the witnesses, although Europe were possessed of every tool now used in the United Kingdom, along with the assistance of English artisans, which she may have in any number, yet, from the natural and acquired advantages possessed by this country, the manufacturers of the United Kingdom would for ages continue to retain the superiority they now enjoy. It is indeed the opinion of many, that if the exportation of machinery were permitted, the exportation would often consist of those tools and machines, which, although already superseded by new inventions, still continue to be employed, from want of opportunity to get rid of them: to the detriment, in many instances, of the trade and manufactures of the country: and it is matter worthy of consideration, and fully borne out by the evidence, that by such increased foreign demand for machinery, the ingenuity and skill of our workmen would have greater scope; and that, important as the improvements in machinery have lately been, they might, under such circumstances, be fairly expected to increase to a degree beyond all precedent.

The many important facilities for the construction of machines and the manufacturing of commodities which we possess, are enjoyed by no other country; nor is it likely that any country can enjoy them to an equal extent for an indefinite period. It is admitted by everyone, that our skill is unrivalled; the industry and power of our people unequalled; their ingenuity, as displayed in the continuol improvement in machinery, and production of commodities, without parallel; and apparently, without limit. The freedom which, under our government, every man has, to use his capital, his labour, and his talents, in the manner most conducive to his interests, is an inestimable advantage; canals are cut, and railroads constructed, by the voluntary association of persons whose local knowledge enables them to place them in the most desirable situations; and these great advantages cannot exist under less free governments. These circumstances, when taken together, give such a decided superiority to our people, that no injurious rivalry, either in the construction of machinery or the manufacture of commodities, can reasonably be anticipated.

442. But, even if it were desirable to prevent the exportation of a certain class of machinery, it is abdundantly evident, that, whilst the exportation of other classes is allowed, it is impossible to prevent the forbidden one from being smuggled out; and that, in point of fact, the additional risk has been well calculated by the smuggler.

443. It would appear, also, from various circumstances, that the immediate exportation of improved machinery is not quite so certain as has been assumed; and that the powerful principle of self-interest will urge the makers of it, rather to push the sale in a different direction. When a great maker of machinery has contrived a new machine for any particular process, or has made some great improvement upon those in common use, to whom will he naturally apply for the purpose of selling his new machines? Undoubtedly, in by far the majority of cases, to his nearest and best customers, those to whom he has immediate and personal access, and whose capability to fulfil any contract is best known to him. With these, he will communicate and offer to take their orders for the new machine; nor will he think of writing to foreign customers, so long as he finds the home demand sufficient to employ the whole force of his establishment. Thus, therefore, the machine-maker is himself interested in giving the first advantage of any new improvement to his own countrymen.

444. In point of fact, the machine-makers in London greatly prefer home orders, and do usually charge an additional price to their foreign customers. Even the measure of this preference may be found in the evidence before the Committee on the Export of Machinery. It is differently estimated by various engineers; but appears to vary from five up to twenty-five per cent on the amount of the order. The reasons are: 1. If the machinery be complicated, one of the best workmen, well accustomed to the mode of work in the factory, must be sent out to put it up; and there is always a considerable chance of his having offers that will induce him to remain abroad. 2. If the work be of a more simple kind, and can be put up without the help of an English workman, yet for the credit of the house which supplies it, and to prevent the accidents likely to occur from the want of sufficient instruction in those who use it, the parts are frequently made stronger, and examined more attentively, than they would be for an English purchaser. Any defect or accident also would be attended with more expense to repair, if it occurred abroad, than in England.

445. The class of workmen who make machinery, possess much more skill, and are paid much more highly than that class who merely use it; and, if a free exportation were allowed, the more valuable class would, undoubtedly, be greatly increased; for, notwithstanding the high rate of wages, there is no country in whichit can at this moment be made, either so well or so cheaply as in England. We might, therefore, supply the whole world with machinery, at an evident advantage, both to ourselves and our customers. In Manchester, and the surrounding district, many thousand men are wholly occupied in making the machinery, which gives employment to many hundred thousands who use it; but the period is not very remote, when the whole number of those who used machines, was not greater than the number of those who at present manufacture them. Hence, then, if England should ever become a great exporter of machinery, she would necessarily contain a large class of workmen, to whom skill would be indispensable, and, consequently, to whom high wages would be paid; and although her manufacturers might probably be comparatively fewer in number, yet they would undoubtedly have the advantage of being the first to derive profit from improvement. Under such circumstances, any diminution in the demand for machinery, would, in the first instance, be felt by a class much better able to meet it, than that which now suffers upon every check in the consumption of manufactured goods; and the resulting misery would therefore assume a mitigated character.

446. It has been feared, that when other countries have purchased our machines, they will cease to demand new ones: but the statement which has been given of the usual progress in the improvement of the machinery employed in any manufacture, and of the average time which elapses before it is superseded by such improvements, is a complete reply to this objection. If our customers abroad did not adopt the new machinery contrived by us as soon as they could procure it, then our manufacturers would extend their establishments, and undersell their rivals in their own markets.