It is extremely difficult to ascertain the ratio of Capital to Population at any particular period; yet some approximations may be made, which, in a degree, may indicate the activity or the inertness of the labour-fund, in regard to the condition of the labourer.
At the end of the seventeenth century, about half the land of England and Wales was, according to the best authorities, held to be under cultivation, either as arable or pasture. As the whole area of England and Wales is about thirty-seven millions of acres, this would show a cultivation of eighteen million five hundred thousand acres. The entire quantity of wheat, rye, barley, oats, pease, beans, and vetches, grown upon these eighteen million and a half acres, was estimated at less than ten millions of quarters, wheat being little more than a sixth of the whole produce. The quantity of stock annually fattened for food was even more inconsiderable. We may safely assume that in a century and a half the amount of agricultural produce in England has increased five-fold. Two-thirds of the whole area of England and Wales are now under cultivation; for in the census returns of 1851 we have twenty-five million acres of farm holdings, occupied by two hundred and twenty-five thousand farmers. In the calculations of Gregory King, in 1688, the number of farmers was given at a hundred and fifty thousand; but the number of lesser freeholders, who were doubtless cultivators, was also a hundred and twenty thousand. The produce of the land has increased at a greater rate than the increase of population. According to the commonly received estimates, the population of England and Wales was about five millions and a half, perhaps six millions, at the end of the seventeenth century; it is now eighteen millions. The inhabited houses, according to the hearth-books of 1690,[40] were one million three hundred and twenty thousand. In 1851 they were three million two hundred and seventy-eight thousand. The hearth-books of 1685 show that, of the houses of the kingdom, five hundred and fifty-four thousand had only one chimney—they were mere hovels.
Gregory King has given 'A Scheme of the Income and Expense of the several Families in England, calculated for the year 1688.' He considers that, in the aggregate, there were five hundred thousand families who were accumulators—that is to say, whose annual expense was less than their income. He values this accumulation at three millions. The number of persons comprised in the accumulating families was two million six hundred and seventy-five thousand. Of this number only one-fifth belonged to the trading classes—merchants, shopkeepers and tradesmen, artisans and handicrafts. The remainder were the landholders, farmers, lawyers, clergy, holders of office, and persons in liberal arts and sciences. But there was a large non-accumulating class, consisting of two million eight hundred and twenty-five thousand, whom he puts down as "decreasing the wealth of the kingdom,"—that is to say, that their annual expense exceeded their income; and this excess he computes at six hundred and twenty-two thousand pounds, which reduces the annual national accumulation to two million four hundred thousand pounds. The positive plunderers of the national capital were thirty thousand vagrants, such as gipsies, thieves, and beggars. We were in a happier condition than Scotland at the same period; where, according to Fletcher of Saltoun, there were two hundred thousand "people begging from door to door," out of a population of one million, for whose suppression he saw no remedy but slavery. We were more favoured, too, than France; where, as Vauban records, in 1698, more than a tenth part of the population of sixteen millions were beggars, in the extremity of hunger and nakedness.[41] But we may be sure that in England the two million eight hundred and twenty-five thousand "labouring people, out-servants, cottagers, and paupers," who are put down by Gregory King as non-accumulators, were working upon very insufficient means, and that they were constantly pressing upon the fund for the maintenance of profitable labour. It is a curious fact that he classes "cottagers and paupers" together; but we can account for it when we consider how much of the land of the country was uninclosed, and how many persons derived a scanty subsistence from the commons, upon which they were "squatters," living in mean huts with "one chimney."
The small number of "artisans and handicrafts," comprising only sixty thousand families, is of itself a sufficient indication that our manufactures, properly so called, were of very trifling amount. In various parts of this volume we have incidentally mentioned how slowly the great industries of this country grew into importance. At the period of which we are now speaking, nearly every article of clothing was, in many districts, of domestic production, and was essentially connected with the tillage of the land. The flax and the wool were spun at home; the stockings were knit; the shoes were often untanned hide nailed upon heavy clogs. Furniture there was little beyond the rough bench and the straw bed. The fuel came from the woods and hedges. About forty thousand of the cottages mentioned in the hearth-books had some land belonging to them; and, to prevent the growth of a "squatter" population, it was the business of the Grand Jury to present, as a nuisance, all newly-erected cottages that had not four acres of land attached to them. There was a contest perpetually going on between the more favoured portion who had regular means of subsistence, and the unhappy many who were pressing upon those means, in all the various forms of pauperism. One of the means of keeping down this class was to prevent them having dwellings.
Towards the end of the seventeenth century, then, we see that there was some accumulation of capital, however small. There was then a vague feeling amongst the accumulators that something might be saved by setting the unemployed and the starving to other work than was provided for them in the fields. Population was pressing hard upon Capital. It pressed, chiefly, in the shape of increasing demands upon the poor-rate. The remedy universally proposed was "to set the poor to work." The notion was extremely crude as to the mode in which this was to be effected; but there was a sort of universal agreement expressed by sober economists as well as visionary projectors, that the more general introduction of manufactures would remedy the evil. Of course, the first thing to be done was to prohibit foreign manufactures by enormous duties; and then we were to go to work vigorously at home, knowing very little of the arts in which foreigners were greatly our superiors. But we were to go to work, not in the ordinary way of profitable industry, by the capitalist working for profit employing the labourer for wages, but by withholding from the poor the greater part of the want-fund, and converting it into a labour-fund, by setting up manufactures under the management of the poor-law administrators. Here, in these "workhouses" was the linen trade to be cultivated. Mr. Firmin set up a workhouse in Aldersgate Street, of the results of which, after four years, he thus speaks:—"This, I am sure, is the worst that can be said of it, that it hath not been yet brought to bear its own charges." Sir Matthew Hale was for setting up a public manufactory of coarse cloth, of which the charges for materials and labour in producing thirty-two yards would be 11l. 15s. He calculated that the cloth, if sold, would only yield 12l. The excellent Judge does not make any calculation of the cost of implements, or rent, or superintendence. He desires to employ fifty-six poor people, who are paid by the parish 400l. per annum, and by this cloth manufacture he will give them the 400l. for their work, and save the parish their cost. One thing is forgotten. The pauper labour yielding no profit, and consequently preventing any accumulation, the labourers must be kept down to the minimum of subsistence, which appears to be about seven pounds per annum for each labourer. The earnings of the artisan and handicraft are estimated by Gregory King at thirty-eight pounds per annum. These were the wages of skilled labourers. The pauper labourers were unskilled. If these schemes had not broken down by their own weight, and workhouse manufactories had gone on producing a competition of unskilled labourers with skilled, the rate of wages would have been more and more deteriorated, and the amount of poor seeking workhouse employment as a last resource more and more increased. Experience has very satisfactorily demonstrated that these schemes for employing the poor ought to be strictly limited to the production of articles of necessity for their own consumption. Even the production of such articles is scarcely remunerating,—that is, the produce scarcely returns the cost of materials and superintendence. Even the boasted Free and Pauper Colonies of Holland have turned out to be commercial failures. They are not self-sustaining. The want of skill in the colonists, and their disinclination to labour, having no immediate individual benefit from their labours, have combined to produce the result that one good day-labourer is worth five colonists working in common. There are also tenants of small colonial farms, at a low rent, and having many advantages. They are not so prosperous as the little farmers out of the colony, who pay a higher rent, and have no incidental benefits. The solution of the question is thus given:—"The certainty that the society will maintain them, whether they save or not, has an unfavourable influence on their habits."[42]
The increase of population was very small during the first fifty years of the eighteenth century. It absolutely declined at one period. The two million four hundred thousand pounds that were calculated by Gregory King as annual savings, were probably more and more trenched upon by pauperism and war, by "malice domestic, foreign levy," under a disputed succession. The upper classes were licentious and extravagant; the labourers in towns were drunkards to an excess that now seems hardly credible. Hogarth's 'Gin Lane' was scarcely an exaggeration of the destitution and misery that attended this national vice. About the middle of the century, or soon after, sprang up many of the great mechanical improvements which made us a manufacturing people; and which, in half a century, added a third to the population. In spite of the most expensive war in which England had ever been engaged, the accumulated capital, chiefly in consequence of these discoveries and improvements, had increased as fast as the population in the second fifty years of the eighteenth century. In the present century the population has doubled in fifty years; and the accumulated capital has more than doubled. Population has been recently increasing at the rate of one and a half per cent.; capital has been increasing at the rate of two and a half per cent.[43] It is this accumulation which has been steadily raising the rate of wages in many employments of industry; whilst the chemical and mechanical arts, the abundant means of rapid transit, the abolition or reduction of duties upon great articles of consumption, and the freedom of commercial intercourse, have given all the receivers of wages a greatly increased command of articles of necessity, and even of what used to be thought luxuries.
There is nothing more difficult in economical inquiries than the attempt to ascertain what was the actual rate of wages at any given period. The fluctuations in the value of money enter into this question, more or less, at every period of our history. We find the nominal rate of wages constantly increasing, from one generation to another, but we cannot at all be certain that the real rate is increasing. That nominal rate always requires to be compared with the prices of the necessaries of life. What pertains to wages pertains to all fixed money-payments. A Fellow of a college applied to Bishop Fleetwood to know if he could conscientiously hold his fellowship, when the statutes of the college, made in the time of Henry VI., say that no one shall so hold who has an estate of 5l. a year. The Fellow had an estate of much larger nominal amount. The Bishop made a very valuable collection of the prices of commodities, and he thus answers the conscientious inquirer:—
"If for 20 years together (from 1440 to 1460) the common price of wheat were 6s. 8d. the quarter; and if from 1686 to 1706 the common price of wheat were 40s. the quarter; 'tis plain that 5l. in H. VI. time would have purchased 15 quarters of wheat; for which you must have paid, for these last 20 years, 30 pound. So that 30 pound now, would be no more than equivalent to 5 pound in the reign of H. VI. Thus if oats, from 1440 to 1460, were generally at 2s. the quarter, and from 1686 to 1706 were at 12s. the quarter, 'tis manifest that 12s. now would be no more than equivalent to 2s. then, which is but a sixth part of it. Thus, if beans were then 5s. and now 30s. the quarter, the same proportion would be found betwixt 5l. and 30l. But you must not expect that everything will answer thus exactly. Ale, for instance, was, during the time of your founder, at three-halfpence the gallon; but it has been, ever since you were born, at 8d. at the least: which is but five times more, and a little over. So that 5l. heretofore (betwixt 1440 and 1460) would purchase no more ale than somewhat above 25l. would now. Again, good cloth, such as was to serve the best doctor in your University for his gown, was (between 1440 and 1460) at 3s. 7d. the yard; at which rate, 5l. would have purchased 29 yards, or thereabouts. Now you may purchase that quantity of fine cloth at somewhat less, I think, than 25l. So that 25l. now would be an equivalent to your 5l. then, 250 years since, if you pay about 18s. the yard for your cloth. I think I have good reason to believe that beef, mutton, bacon, and other common provisions of life, were six times as cheap in H. VI. reign as they have been for these last 20 years. And therefore I can see no cause why 28 or 30l. per [ann.] should now be accounted a greater estate than 5l. was heretofore betwixt 1440 and 1460."[44]
But we are not to infer from these considerations that the wages of labour ought to fluctuate with the prices of commodities, or that practically they do so fluctuate. If this were the principle of wages, every improvement which lowers the price of commodities would lower the rewards of labour. Almost every article of necessity is cheaper now than it was ten years ago, taking the average of years; and the larger amount of this cheapness has been produced by improvements in manufactures, by facilities of communication, and by the removal of taxation. At the same time, taking the average of years and of employments, wages have risen. There must be some general cause in operation to produce this result.