On the Economy of Machinery and Manufactures

by Charles Babbage

Chapter 26

On a New System of Manufacturing

305. A most erroneous and unfortunate opinion prevails amongst workmen in many manufacturing countries, that their own interest and that of their employers are at variance. The consequences are that valuable machinery is sometimes neglected, and even privately injured—that new improvements, introduced by the masters, do not receive a fair trial—and that the talents and observations of the workmen are not directed to the improvement of the processes in which they are employed. This error is, perhaps, most prevalent where the establishment of manufactories has been of recent origin, and where the number of persons employed in them is not very large: thus, in some of the Prussian provinces on the Rhine it prevails to a much greater extent than in Lancashire. Perhaps its diminished prevalence in our own manufacturing districts, arises partly from the superior information spread amongst the workmen; and partly from the frequent example of persons, who by good conduct and an attention to the interests of their employers for a series of years, have become foremen, or who have ultimately been admitted into advantageous partnerships. Convinced as I am, from my own observation, that the prosperity and success of the master manufacturer is essential to the welfare of the workman, I am yet compelled to admit that this connection is, in many cases, too remote to be always understood by the latter, and whilst it is perfectly true that workmen, as a class, derive advantage from the prosperity of their employers, I do not think that each individual partakes of that advantage exactly in proportion to the extent to which he contributes towards it; nor do I perceive that the resulting advantage is as immediate as it might become under a different system.

306. It would be of great importance, if, in every large establishment the mode of payment could be so arranged, that every person employed should derive advantage from the success of the whole; and that the profits of each individual should advance, as the factory itself produced profit, without the necessity of making any change in the wages. This is by no means easy to effect, particularly amongst that class whose daily labour procures for them their daily food. The system which has long been pursued in working the Cornish mines, although not exactly fulfilling these conditions, yet possesses advantages which make it worthy of attention, as having nearly approached towards them, and as tending to render fully effective the faculties of all who are engaged in it. I am the more strongly induced to place before the reader a short sketch of this system, because its similarity to that which I shall afterwards recommend for trial, will perhaps remove some objections to the latter, and may also furnish some valuable hints for conducting any experiment which might be undertaken.

307. In the mines of Cornwall, almost the whole of the operations, both above and below ground, are contracted for. The manner of making the contract is nearly as follows. At the end of every two months, the work which it is proposed to carry on during the next period is marked out. It is of three kinds. 1. Tutwork, which consists in sinking shafts, driving levels, and making excavations: this is paid for by the fathom in depth, or in length, or by the cubic fathom. 2. Tribute, which is payment for raising and dressing the ore, by means of a certain part of its value when rendered merchantable. It is this mode of payment which produces such admirable effects. The miners, who are to be paid in proportion to the richness of the vein, and the quantity of metal extracted from it, naturally become quicksighted in the discovery of ore, and in estimating its value; and it is their interest to avail themselves of every improvement that can bring it more cheaply to market. 3. Dressing. The 'Tributors', who dig and dress the ore, can seldom afford to dress the coarser parts of what they raise, at their contract price; this portion, therefore, is again let out to other persons, who agree to dress it at an advanced price.

The lots of ore to be dressed, and the works to be carried on, having been marked out some days before, and having been examined by the men, a kind of auction is held by the captains of the mine, in which each lot is put up, and bid for by different gangs of men. The work is then offered, at a price usually below that bid at the auction, to the lowest bidder, who rarely declines it at the rate proposed. The tribute is a certain sum out of every twenty shillings' worth of ore raised, and may vary from threepence to fourteen or fifteen shillings. The rate of earnings in tribute is very uncertain: if a vein, which was poor when taken, becomes rich, the men earn money rapidly; and instances have occurred in which each miner of a gang has gained a hundred pounds in the two months. These extraordinary cases, are, perhaps, of more advantage to the owners of the mine than even to the men; for whilst the skill and industry of the workmen are greatly stimulated, the owner himself always derives still greater advantage from the improvement of the vein.(1*) This system has been introduced, by Mr Taylor, into the lead mines of Flintshire, into those at Skipton in Yorkshire, and into some of the copper mines of Cumberland; and it is desirable that it should become general, because no other mode of payment affords to the workmen a measure of success so directly proportioned to the industry, the integrity, and the talent, which they exert.

308. I shall now present the outline of a system which appears to me to be pregnant with the most important results, both to the class of workmen and to the country at large; and which, if acted upon, would, in my opinion, permanently raise the working classes, and greatly extend the manufacturing system.

The general principles on which the proposed system is founded, are

1. That a considerable part of the wages received by each person employed should depend on the profits made by the establishment; and,

2. That every person connected with it should derive more advantage from applying any improvement he might discover, to the factory in which he is employed, than he could by any other course.