On the Economy of Machinery and Manufactures

by Charles Babbage

365. It is, however, important to consider the effects of combination in another and less obvious point of view. The fear of combination amongst the men whom he employs, will have a tendency to induce the manufacturer to conceal from his workmen the extent of the orders he may at any time have received; and, consequently, they will always be less acquainted with the extent of the demand for their labour than they otherwise might be. This is injurious to their interests; for instead of foreseeing, by the gradual falling-off in the orders, the approach of a time when they must be unemployed, and preparing accordingly, they are liable to much more sudden changes than those to which they would otherwise be exposed.

In the evidence given by Mr Galloway, the engineer, he remarks, that,

"When employers are competent to show their men that their business is steady and certain, and when men find that they are likely to have permanent employment, they have always better habits, and more settled notions, which will make them better men, and better workmen, and will produce great benefits to all who are interested in their employment."

366. As the manufacturer, when he makes a contract, has no security that a combination may not arise amongst the workmen, which may render that contract a loss instead of a benefit; besides taking precautions to prevent them from becoming acquainted with it, he must also add to the price at which he could otherwise sell the article, some small increase to cover the risk of such an occurrence. If an establishment consist of several branches which can only be carried on jointly, as, for instance, of iron mines, blast furnaces, and a colliery, in which there are distinct classes of workmen, it becomes necessary to keep on hand a larger stock of materials than would be required, if it were certain that no combinations would arise.

Suppose, for instance, the colliers were to 'strike' for an advance of wages—unless there was a stock of coal above ground, the furnaces must be stopped, and the miners also would be thrown out of employ. Now the cost of keeping a stock of iron ore, or of coals above ground, is just the same as that of keeping in a drawer, unemployed, its value in money, (except, indeed, that the coal suffers a small deterioration by exposure to the elements). The interest of this sum must, therefore, be considered as the price of an insurance against the risk of combination amongst the workmen; and it must, so far as it goes, increase the price of the manufactured article, and, consequently, limit the demand which would otherwise exist for it. But every circumstance which tends to limit the demand, is injurious to the workmen; because the wider the demand, the less it is exposed to fluctuation.

The effect to which we have alluded, is by no means a theoretical conclusion; the proprietors of one establishment in the iron trade, within the author's knowledge, think it expedient always to keep above ground a supply of coal for six months, which is, in that instance, equal in value to about L10,000. When we reflect that the quantity of capital throughout the country thus kept unemployed merely from the fear of combinations amongst the workmen, might, under other circumstances, be used for keeping a larger number at work, the importance of introducing a system in which there should exist no inducement to combine becomes additionally evident.

367. That combinations are, while they last, productive of serious inconveniences to the workmen themselves, is admitted by all parties; and it is equally true, that, in most cases, a successful result does not leave them in so good a condition as they were in before 'the strike'. The little capital they possessed, which ought to have been hoarded with care for days of illness or distress, is exhausted; and frequently, in order to gratify a pride, at the existence of which we cannot but rejoice, even whilst we regret its misdirected energy, they will undergo the severest privations rather than return to work at their former wages. With many of the workmen, unfortunately, during such periods, bad habits are formed which it is very difficult to eradicate; and, in all those engaged in such transactions, the kinder feelings of the heart are chilled, and passions are called into action which are permanently injurious to the happiness of the individual, and destructive of those sentiments of confidence which it is equally the interest of the master manufacturer and of his workman to maintain. If any of the trade refuse to join in the strike, the majority too frequently forget, in the excitement of their feelings, the dictates of justice, and endeavour to exert a species of tyranny, which can never be permitted to exist in a free country. In conceding therefore to the working classes, that they have a right, if they consider it expedient, to combine for the purpose of procuring higher wages (provided always, that they have completed all their existing contracts), it ought ever to be kept before their attention, that the same freedom which they claim for themselves they are bound to allow to others, who may have different views of the advantages of combination. Every effort which reason and kindness can dictate, should be made, not merely to remove their grievances, but to satisfy their own reason and feelings, and to show them the consequences which will probably result from their conduct: but the strong arm of the law, backed, as in such cases it will always be, by public opinion, should be instantly and unhesitatingly applied, to prevent them from violating the liberty of a portion of their own, or of any other class of society.

368. Amongst the evils which ultimately fall heavy on the working classes themselves, when, through mistaken views, they attempt to interfere with their employers in the mode of carrying on their business, may be mentioned the removal of factories to other situations, where the proprietors may be free from the improper control of their men. The removal of a considerable number of lace frames to the western counties, which took place, in consequence of the combinations in Nottinghamshire, has already been mentioned. Other instances have occurred, where still greater injury has been produced by the removal of a portion of the skill and capital of the country to a foreign land. Such was the case at Glasgow, as stated in the fifth Parliamentary Report respecting Artizans and Machinery. One of the partners in an extensive cotton factory, disgusted by the unprincipled conduct of the workmen, removed to the state of New York, where he re-established his machinery, and thus afforded, to rivals already formidable to our trade, at once a pattern of our best machinery, and an example of the most economical methods of employing it.

369. When the nature of the work is such that it is not possible to remove it, as happens with regard to mines, the proprietors are more exposed to injury from combinations amongst the workmen: but as the owners are generally possessed of a larger capital, they generally succeed, if the reduction of wages which they propose is really founded on the necessity of the case.

An extensive combination lately existed amongst the colliers in the north of England, which unfortunately led, in several instances, to acts of violence. The proprietors of the coalmines were consequently obliged to procure the aid of miners from other parts of England who were willing to work at the wages they could afford to give; and the aid of the civil, and in some cases of the military, power, was requisite for their protection. This course was persisted in during several months, and the question being, which party could support itself longest on the diminished gains, as it might have readily been foreseen, the proprietors ultimately succeeded.