370. One of the remedies employed by the masters against the occurrence of combinations, is to make engagements with their men for long periods and to arrange them in such a manner, that these contracts shall not all terminate together. This has been done in some cases at Sheffield, and in other places. It is attended with the inconvenience to the masters that, during periods when the demand for their produce is reduced, they are still obliged to employ the same number of workmen. This circumstance, however, frequently obliges the proprietors to direct their attention to improvements in their works: and in one such instance, within the author's knowledge, a large reservoir was deepened, thus affording a more constant supply to the water-wheel, whilst, at the same time, the mud from the bottom gave permanent fertility to a piece of land previously almost barren. In this case, not merely was the supply of produce checked, when a glut existed. but the labour was, in fact, applied more profitably than it would have been in the usual course.
371. A mode of paying the wages of workmen in articles which they consume, has been introduced into some of our manufacturing districts, which has been called the truck system. As in many instances this has nearly the effect of a combination of the masters against the men, it is a fit subject for discussion in the present chapter: but it should be carefully distinguished from another system of a very different tendency, which will be first described.
372. The principal necessaries for the support of a workman and his family are few in number, and are usually purchased by him in small quantities weekly. Upon such quantities, sold by the retail dealer, a large profit is generally made; and if the article is one whose quality, like that of tea, is not readily estimated, then a great additional gain is made by the retail dealer selling an inferior article.
Where the number of workmen living on the same spot is large, it may be thought desirable that they should unite together and have an agent, to purchase by wholesale those articles which are most in demand, as tea, suger, bacon, etc., and to retail them at prices, which will just repay the wholesale cost, together with the expense of the agent who conducts their sale. If this be managed wholly by a committee of workmen, aided perhaps by advice from the master, and if the agent is paid in such a manner as to have himself an interest in procuring good and reasonable articles, it may be a benefit to the workmen: and if the plan succeed in reducing the cost of articles of necessity to the men, it is clearly the interest of the master to encourage it. The master may indeed be enabled to afford them facilities in making their wholesale purchases; but he ought never to have the least interest in, or any connection with, the profit made by the articles sold. The men, on the other hand, who subscribe to set up the shop, ought not, in the slightest degree, to be compelled to make their purchases there: the goodness and cheapness of the article ought to be their sole inducements.
It may perhaps be objected, that this plan is only employing a portion of the capital belonging to the workmen in a retail trade; and that, without it, competition amongst small shopkeepers will reduce the articles to nearly the same price. This objection would be valid if the objects of consumption required no verification; but combining what has been already stated on that subject(1*) with the present argument, the plan seems liable to no serious objections.
373. The truck system is entirely different in its effects. The master manufacturer keeps a retail shop for articles required by his men, and either pays their wages in goods, or compels them by express agreement, or less directly, by unfair means, to expend the whole or a certain part of their wages at his shop. If the manufacturer kept this shop merely for the purpose of securing good articles, at fair prices, to his workmen, and if he offered no inducement to them to purchase at his shop, except the superior cheapness of his articles, it would certainly be advantageous to the men. But, unfortunately, this is not always the case; and the temptation to the master, in times of depression, to reduce in effect the wages which he pays (by increasing the price of articles at his shop), without altering the nominal rate of payment, is frequently too great to be withstood. If the object be solely to procure for his workmen better articles, it will be more effectually accomplished by the master confining himself to supplying a small capital, at a moderate rate of interest; leaving the details to be conducted by a committee of workmen, in conjunction with his own agent, and the books of the shop to be audited periodically by the men themselves.
374. Wherever the workmen are paid in goods, or are compelled to purchase at the master's shop, much injustice is done to them, and great misery results from it. Whatever may have been the intentions of the master in such cases, the real effect is, to deceive the workman as to the amount he receives in exchange for his labour. Now, the principles on which the happiness of that class of society depends, are difficult enough to be understood, even by those who are blessed with far better opportunities of investigating them: and the importance of their being well acquainted with those principles which relate to themselves, is of more vital consequence to workmen, than to many other classes. It is therefore highly desirable to assist them in comprehending the position in which they are placed, by rendering all the relations in which they stand to each other, and to their employers, as simple as possible. Workmen should be paid entirely in money; their work should be measured by some unbiassed, some unerring piece of mechanism; the time during which they are employed should be defined, and punctually adhered to. The payments they make to their benefit societies should be fixed on such just principles, as not to require extraordinary contributions. In short, the object of all who wish to promote their happiness should be, to give them, in the simplest form, the means of knowing beforehand, the sum they are likely to acquire by their labour, and the money they will be obliged to expend for their support: thus putting before them, in the clearest light, the certain result of persevering industry.
375. The cruelty which is inflicted on the workman by the payment of his wages in goods, is often very severe. The little purchases necessary for the comfort of his wife and children, perhaps the medicines he occasionally requires for them in illness, must all be made through the medium of barter; and he is obliged to waste his time in arranging an exchange, in which the goods which he has been compelled to accept for his labour are invariably taken at a lower price than that at which his master charged them to him. The father of a family perhaps, writhing under the agonies of the toothache, is obliged to make his hasty bargain with the village surgeon, before he will remove the cause of his pain; or the disconsolate mother is compelled to sacrifice her depreciated goods in exchange for the last receptacle of her departed offspring. The subjoined evidence from the Report of the Committee of the House of Commons on Framework Knitters' Petitions, shows that these are not exaggerated statements.
It has been so common in our town to pay goods instead of money, that a number of my neighbours have been obliged to pay articles for articles, to pay sugar for drugs out of the druggist's shop; and others have been obliged to pay sugar for drapery goods, and such things, and exchange in that way numbers of times. I was credibly informed, that one person paid half a pound of tenpenny sugar and a penny to have a tooth drawn; and there is a credible neighbour of mine told me, that he had heard that the sexton had been paid for digging a grave with sugar and tea: and before I came off, knowing I had to give evidence upon these things, I asked this friend to enquire of the sexton, whether this was a fact: the sexton hesitated for a little time, on account of bringing into discredit the person who paid these goods: however, he said at last, 'I have received these articles repeatedly—I know these things have been paid to a great extent in this way.'