But enough of illicit trade. What was legitimate trade doing? The marvellous expansion which afterwards came, thanks to steam as applied to machinery, railways, and shipping, had only just commenced; but, at all events, a beginning had been made, and, thanks to her iron and coal, England was able for many a long year to head the race for commerce, hold her own with foreign competition, and even to defy it. The Trades' Unions, which have not altogether been an unmixed blessing, were still in their infancy, and in many trades the "truck" system of paying the workers in kind rather than coin was the rule. It was the payment of labour in goods or provisions instead of money; and the mode in which it was carried on by the manufacturers was to set up a large shop or store (commonly called a "Tommy shop"), containing all sorts of necessaries for their workmen, so that, instead of paying them money for their wages, tickets were given to these shops; or, in other instances, periodical visits to them were allowed to the mechanic or his wife, and they chose those things they were most in need of. Under these circumstances money was very seldom, or, rather, never paid; for, though parties to evade the law gave the money to their workmen, yet, before they left the premises, it was all received back again.
These "Tommy shops" were generally kept by some relation or servant of the master, put in for that purpose; or, when the tradesman did not resort to such measures on his own account, he made an arrangement with the retailer, who allowed him a discount. And the more needy the manufacturer, the greater his advantage under this system; for he was enabled to stock his shop for three months, and then pay for that stock with a bill at another three months; so that, instead of paying his workmen ready money, he was obtaining six months' credit. Again, without saying that there was a regular contract amongst the masters, it was always an understood thing that a man discharged for objecting to this system should not be taken on by any other employer. And, indeed, this naturally followed; for, when once it was known that a man had lost his employment by objecting to this mode of payment, it was not likely that another master, who paid in exactly the same way, would give him employment.
And the poor fellows had to pay through the nose for all they had. The milder "truck-masters" were content to charge their men from 15 to 20 per cent. more than the market price, while those unburdened with a conscience, exacted 100 per cent. profit; nor would they allow their men to keep pigs. This state of things was well known, and leave was applied for and given in December, 1830, to bring a Bill into Parliament to do away with the truck system, and make it penal. On October 15, 1831, this received the Royal sanction, and the Act was afterwards known as 1 and 2 Gul. IV. c. 36, "An Act to repeal several Acts and parts of Acts prohibiting the Payment of Wages in Goods, or otherwise than in the current Coin of the Realm." And another (same, c. 37), in which it was settled that all wages must be paid to the workman in coin, and payment in goods was declared illegal; that artificers might recover, by law, wages, if not paid in current coin, and that no employer should have any action against his artificer for goods supplied to him on account of wages; whilst, if the artificer, or his wife or children, became chargeable to the parish, the overseers may recover any wages earned within the three preceding months, and not paid in cash. That contracts between master and man as to the payment of the whole or part of wages in goods should be illegal, and for the first offence the employer should be fined not less than £5, nor more than £10; for the second, not less than £10, nor more than £20; and for the third he was to be fined, at the discretion of the Court, a sum not exceeding £100.
On May 26, 1826, the Royal sanction was given to an Act which virtually destroyed the monopoly of the Bank of England, and laid the foundation of the present Joint Stock Banks, or rather what they were before they took advantage of limited liability. It is 7 Geo. IV. c. 46, and is entitled, "An Act for the better regulating co-partnerships of certain bankers in England." But it does not seem to have been acted on in London, at all events till 1833, when we have advertisements soliciting subscriptions to the London and Westminster Bank, the Imperial Bank of London, and the National Provincial Bank of England. The London and Westminster Bank was established March, 1834; the National Provincial Bank of England in 1833; the National Bank in 1835; the London Joint Stock Bank in 1836; as also the Commercial Bank of London and the London and County Bank; whilst in 1837 was started the Union Bank of Australia.
When William IV. died, the trade of the country was in a very depressed state, as we learn by the Annual Register, June 13, 1837, which quotes from the following papers:—
"We are sorry to say that trade in this district continues in a very depressed state; and the consequence is, a scarcity of employment and low wages for the operatives, amongst whom, we regret to observe, distress prevails to a most deplorable extent."—Manchester Courier.
"At Manchester it is stated there are fifty thousand hands out of employ, and most of the large establishments are working only half-time. At Wigan, which is not a large place, there are four thousand weavers totally unable to get work. Unless a stimulus is shortly given to commerce, persons who have the means of forming the most correct opinion say that half a million of hands at least will be idle in the manufacturing districts in the very worst time of the year."—Morning Chronicle.
"The pressure upon manufacturers and commerce has at last reached our county. Within a short time several extensive failures in the 'How of Fife,' along the Leven, as well as in the towns upon the coast, have taken place."—Fifeshire Journal.
"A meeting convened by the circular of several gentlemen was held on Friday, at the Public Office, for the purpose of considering what measures could be adopted sufficient to relieve the present appalling state of commercial distress. At this meeting it was universally admitted that the number of unemployed workmen, and the consequent distress which prevails, call for the adoption of prompt and efficient measures; and resolutions were passed expressive of the deep sympathy felt by the meeting for their suffering fellow-townsmen and their families."—Birmingham Journal.
"We regret that we cannot announce any improvement in the trade of this town. There has been one failure of a respectable lace concern since our last. The number of operatives employed by public subscription on the roads is nearly a thousand. The Relief Committee, after anxious deliberation, came to the decision on Monday evening that, in future, the wages allowed could be only 8s. a week on day work."—Nottingham Review.