Problems of Poverty: An Inquiry into the Industrial Condition of the Poor

by J. A. Hobson

δ. The constant introduction of new machinery, as a substitute for skilled hand-labour, by robbing of its value the skill of certain classes of workers, adds these to the supply of low-skilled labour.

ε. The growth of machinery and of education, by placing women and young persons more upon an equality with male adult labour, swells the supply of low-skilled labour in certain branches of work. Women and young persons either take the places once occupied by men, or undertake new work (e.g. in post-office or telegraph-office), which would once have been open only to the competition of men. This growth of the direct or indirect competition of women and young persons, must be considered as operating to swell the general supply of unskilled labour.

ζ. In London another temporary, but important, factor must be noted. The competition of provincial factories has proved too strong for London factories in many industries. Hence of late years a gradual transfer of manufacture from London to the provinces. A large number of workers in London factories have found themselves out of work. The break-up of the London factories has furnished "sweating trades" with a large quantity of unemployed and starving people from whom to draw.

Regarded from the widest economic point of view, the existence of an excessive supply of labour seeking employments open to free competition must be regarded as the most important aspect of the "sweating system." The recent condition of the competition for casual dock-labour brought dramatically to the foreground this factor in the labour question. The struggle for livelihood was there reduced to its lowest and most brutal terms. "There is a place at the London Docks called the cage, a sort of pen fenced off by iron railings. I have seen three hundred half-starved dockers crowded round this cage, when perhaps a ganger would appear wanting three hands, and the awful struggle of these three hundred famished wretches fighting for that opportunity to get two or three hours' work has left an impression upon me that can never be effaced. Why, I have actually seen them clambering over each other's backs to reach the coveted ticket. I have frequently seen men emerge bleeding and breathless, with their clothes pretty well torn off their backs." The competition described in this picture only differs from other competitions for low-skilled town labour in as much as the conditions of tender gave a tragical concentration to the display of industrial forces. This picture, exaggerated as it will appear to those who have not seen it, brings home to us the essential character of free competition for low-skilled labour where the normal supply is in excess of the demand. If other forms of low-skilled labour were put up to be scrambled for in the same public manner, the scene would be repeated ad nauseam. But because the competition of seamstresses, tailors, shirt-finishers, fur-sewers, &c., is conducted more quietly and privately, it is not less intense, not less miserable, and not less degrading. This struggle for life in the shape of work for bare subsistence wages, is the true logical and necessary outcome of free competition among an over supply of low-skilled labourers.

§ 3. The Multiplication of "Small Masters."--Having made so much progress in our analysis, we shall approach more intelligently another important aspect of the "sweating system." Mr. Booth and other investigators find the tap-root of the disease to consist in the multiplication of small masters. The leading industrial forces of the age, as we have seen, make for the concentration of labour in larger and larger masses, and its employment in larger and larger factories. Yet in London and in certain other large centres of population, we find certain trades which are still conducted on a small scale in little workshops or private houses, and those trades furnish a very large proportion of the worst examples of "sweating." Here is a case of arrested development in the evolution of industry. It is even worse than that; for some trades which had been subject to the concentrating force of the factory system, have fallen into a sort of back-wash of the industrial current, and broken up again into smaller units. The increased proportion of the clothing industries conducted in private houses and small workshops is the most notorious example. This applies not only to East London, but to Liverpool, Leeds, Sheffield, and other large cities, especially where foreign labour has penetrated. For a large proportion of the sweating workshops, especially in clothing trades, are supported by foreign labour. In Liverpool during the last ten years the substitution of home-workers for workers in tailors' shops has been marked, and in particular does this growth of home-workers apply to women.

A credible witness before the Lords' Committee stated that "at the present moment it would be safe to say that two-thirds of the sweaters in Liverpool are foreigners," coming chiefly from Germany and Russian Poland. In Leeds sixteen years ago there were only twelve Jewish workshops; there are now some hundreds.

Since a very large proportion of the worst sweating occurs in trades where the work is given out, either directly or by the medium of sub-contract, to home-workers, it is natural that stress should be laid upon the small private workshops as the centre of the disease. If the work could only be got away from the home and the small workshop, where inspection is impracticable, and done in the factory or large workshop, where limitations of hours of labour and sanitary conditions could be enforced, where the force of public opinion could secure the payment of decent wages, and where organization among workers would be possible, the worst phases of the malady would disappear. The abolition of the small workshop is the great object of a large number of practical reformers who have studied the sweating system. The following opinion of an expert witness is endorsed by many students of the question--"If the employers were compelled to obtain workshops, and the goods were made under a factory system, we believe that they could be made quite as cheaply under that system, with greater comfort to the workers, in shorter hours; and that the profits would then be distributed among the workers, so that the public would obtain their goods at the same price."[[25]] It is maintained that the inferior qualities of shoes are produced and sold more cheaply in the United States by a larger use of machinery under the factory system, than in London under a sweating system, though wages are, of course, much higher in America. Moreover, many of the products of the London sweating trades are competing on almost equal terms with the products of provincial factories, where machines are used instead of hand-labour.

§ 4. Economic Advantages of "Small Workshops."--The question we have to answer is this--Why has the small workshop survived and grown up in London and other large cities, in direct antagonism to the prevalent industrial movement of the age? It is evident that the small workshop system must possess some industrial advantages which enable it to hold its own. The following considerations throw light upon this subject.

1. A larger proportion of the work in sweating trades is work for which there is a very irregular demand. Irregularity of employment, or, more accurately speaking, insufficiency of employment--for the "irregularity" is itself regular--forms one of the most terrible phases of the sweating system. The lower you descend in the ranks of labour the worse it is. A large number of the trades, especially where women are employed, are trades where the elements of "season" and fashion enter in. But even those which, like tailoring, shirtmaking, shoemaking, furniture and upholstery, would seem less subject to periodic or purely capricious changes, are liable in fact to grave and frequent fluctuations of the market. The average employment in sweating trades is roughly estimated at three or four days in the week. There are two busy seasons lasting some six weeks each, when these miserable creatures are habitually overworked. "The remaining nine months," says Mr. Burnett, "do not average more than half time, especially among the lower grade workers."

This gives us one clue to the ability of the small workshop to survive--its superior flexibility from the point of view of the employer.