'We brought with us from England,' Mr Lander states, 'nearly a hundred thousand needles of various sizes, and amongst them was a great quantity of Whitechapel sharps warranted superfine, and not to cut in the eye. Thus highly recommended, we imagined that these needles must have been excellent indeed; but what was our surprise, some time ago, when a number of them which we had disposed of were returned to us, with a complaint that they were all eyeless, thus redeeming with a vengeance the pledge of the manufacturer, "that they would not cut in the eye". On examination afterwards, we found the same fault with the remainder of the "Whitechapel sharps", so that to save our credit we have been obliged to throw them away.'(1*)

274. The influence of established character in producing confidence operated in a very remarkable manner at the time of the exclusion of British manufactures from the continent during the last war. One of our largest establishments had been in the habit of doing extensive business with a house in the centre of Germany; but, on the closing of the continental ports against our manufactures, heavy penalties were inflicted on all those who contravened the Berlin and Milan decrees. The English manufacturer continued, nevertheless, to receive orders, with directions how to consign them, and appointments for the time and mode of payment, in letters, the handwriting of which was known to him, but which were never signed, except by the christian name of one of the firm, and even in some instances they were without any signature at all. These orders were executed; and in no instance was there the least irregularity in the payments.

275. Another circumstance may be noticed, which to a small extent is more advantageous to large than to small factories. In the export of several articles of manufacture, a drawback is allowed by government, of a portion of the duty paid on the importation of the raw material. In such circumstances, certain forms must be gone through in order to protect the revenue from fraud; and a clerk, or one of the partners, must attend at the custom-house. The agent of the large establishment occupies nearly the same time in receiving a drawback of several thousands, as the smaller exporter does of a few shillings. But if the quantity exported is inconsiderable, the small manufacturer frequently does not find the drawback will repay him for the loss of time.

276. In many of the large establishments of our manufacturing districts, substances are employed which are the produce of remote countries, and which are, in several instances, almost peculiar to a few situations. The discovery of any new locality, where such articles exist in abundance, is a matter of great importance to any establishment which consumes them in large quantities; and it has been found, in some instances, that the expense of sending persons to great distances, purposely to discover and to collect such produce, has been amply repaid. Thus it has happened, that the snowy mountains of Sweden and Norway, as well as the warmer hills of Corsica, have been almost stripped of one of their vegetable productions, by agents sent expressly from one of our largest establishments for the dying of calicos. Owing to the same command of capital, and to the scale upon which the operations of large factories are carried on, their returns admit of the expense of sending out agents to examine into the wants and tastes of distant countries, as well as of trying experiments, which, although profitable to them, would be ruinous to smaller establishments possessing more limited resources.

These opinions have been so well expressed in the Report of the Committee of the House of Commons on the Woollen Trade, in 1806, that we shall close this chapter with an extract, in which the advantages of great factories are summed up.

Your committee have the satisfaction of seeing, that the apprehensions entertained of factories are not only vicious in principle, but they are practically erroneous: to such a degree. that even the very opposite principles might be reasonably entertained. Nor would it be difficult to prove, that the factories, to a certain extent at least, and in the present day, seem absolutely necessary to the wellbeing of the domestic system: supplying those very particulars wherein the domestic system must be acknowledged to be inherently defective: for it is obvious, that the little master manufacturers cannot afford, like the man who possesses considerable capital, to try the experiments which are requisite, and incur the risks, and even losses, which almost always occur, in inventing and perfecting new articles of manufacture, or in carrying to a state of greater perfection articles already established. He cannot learn, by personal inspection, the wants and habits, the arts, manufactures, and improvements of foreign countries; diligence, economy, and prudence, are the requisites of his character, not invention, taste, and enterprise: nor would he be warranted in hazarding the loss of any part of his small capital. He walks in a sure road as long as he treads in the beaten track; but he must not deviate into the paths of speculation. The owner of a factory, on the contrary, being commonly possessed of a large capital, and having all his workmen employed under his own immediate superintendence, may make experiments, hazard speculation, invent shorter or better modes of performing old processes, may introduce new articles, and improve and perfect old ones, thus giving the range to his taste and fancy, and, thereby alone enabling our manufacturers to stand the competition with their commercial rivals in other countries. Meanwhile, as is well worthy of remark (and experience abundantly warrants the assertion), many of these new fabrics and inventions, when their success is once established, become general amongst the whole body of manufacturers: the domestic manufacturers themselves thus benefiting, in the end, from those very factories which had been at first the objects of their jealousy. The history of almost all our other manufactures, in which great improvements have been made of late years in some cases at an immense expense, and after numbers of unsuccessful experiments, strikingly illustrates and enforces the above remarks. It is besides an acknowledged fact, that the owners of factories are often amongst the most extensive purchasers at the halls, where they buy from the domestic clothier the established articles of manufacture, or are able at once to answer a great and sudden order; whilst, at home, and under their own superintendence, they make their fancy goods, and any articles of a newer, more costly, or more delicate quality, to which they are enabled by the domestic system to apply a much larger proportion of their capital. Thus, the two systems, instead of rivalling, are mutual aids to each other: each supplying the other's defects, and promoting the other's prosperity.

Notes:

1. Lander's Journal of an Expedition to the Mouth of the Niger, vol. ii., p. 42.

Chapter 23

On the Position of Large Factories