A further development of this system is the big factory, especially of ready-made clothes, in which hundreds of women pay so much for the sewing-machine, the gas, the gas-heated irons, and so on, and are paid themselves so much for each piece of the ready-made clothes they sew, or each part of it. Immense factories of this kind exist in England, and it appeared from testimony given before the “Sweating Committee” that women are fearfully “sweated” in such workshops—the full price of each slightly spoiled piece of clothing being deducted from their very low piecework wages.

And, finally, there is the small workshop (often with hired wheel-power) in which a master employs three to ten workers, who are paid in wages, and sells his produce to a bigger employer or merchant—there being all possible gradations between such a workshop and the small factory in which a few time workers (five, ten to twenty) are employed by an independent producer. In the textile trades, weaving is often done either by the family or by a master who employs one boy only, or several weavers, and after having received the yarn from a big employer, pays a skilled workman to put the yarn in the loom, invents what is necessary for weaving a given, sometimes very complicated pattern, and after having woven the cloth or the ribbons in his own loom or in a loom which he hires himself, he is paid for the piece of cloth according to a very complicated scale of wages agreed to between masters and workers. This last form, we shall see presently, is widely spread up to the present day, especially in the woollen and silk trades; it continues to exist by the side of big factories in which 50, 100, or 5,000 wage-workers, as the case may be, are working with the employers’ machinery and are paid in time-wages so much the day or the week.

The small industries are thus quite a world,[129] which, remarkable enough, continues to exist even in the most industrial countries, side by side with the big factories. Into this world we must now penetrate to cast a glimpse upon it: a glimpse only, because it would take volumes to describe its infinite variety of pursuits and organisation, and its infinitely varied connection, with agriculture as well as with other industries.


Most of the petty trades, except some of those which are connected with agriculture, are, we must admit, in a very precarious position. The earnings are very low, and the employment is often uncertain. The day of labour is by two, three, or four hours longer than it is in well-organised factories, and at certain seasons it reaches an almost incredible length. The crises are frequent and last for years. Altogether, the worker is much more at the mercy of the dealer or the employer, and the employer is at the mercy of the wholesale dealer. Both are liable to become enslaved to the latter, running into debt to him. In some of the petty trades, especially in the fabrication of the plain textiles, the workers are in dreadful misery. But those who pretend that such misery is the rule are totally wrong. Anyone who has lived among, let us say, the watch-makers in Switzerland and knows their inner family life, will recognise that the condition of these workers was out of all comparison superior, in every respect, material and moral, to the conditions of millions of factory hands. Even during such a crisis in the watch trade as was lived through in 1876-1880, their condition was preferable to the condition of factory hands during a crisis in the woollen or cotton trade; and the workers perfectly well knew it themselves.

Whenever a crisis breaks out in some branch of the petty trades, there is no lack of writers to predict that that trade is going to disappear. During the crisis which I witnessed in 1877, living amidst the Swiss watchmakers, the impossibility of a recovery of the trade in the face of the competition of machine-made watches was a current topic in the press. The same was said in 1882 with regard to the silk trade of Lyons, and, in fact, wherever a crisis has broken out in the petty trades. And yet, notwithstanding the gloomy predictions, and the still gloomier prospects of the workers, that form of industry does not disappear. Even when some branch of it disappears, there always remains something of it; some portions of it continue to exist as small industries (watchmaking of a high quality, best sorts of silks, high quality velvets, etc.), or new connected branches grow up instead of the old ones, or the small industry, taking advantage of a mechanical motor, assumes a new form. We thus find it endowed with an astonishing vitality. It undergoes various modifications, it adapts itself to new conditions, it struggles without losing hope of better times to come. Anyhow, it has not the characteristics of a decaying institution. In some industries the factory is undoubtedly victorious; but there are other branches in which the petty trades hold their own position. Even in the textile industries—especially in consequence of the wide use of the labour of children and women—which offer so many advantages for the factory system, the hand-loom still competes with the power-loom.

As a whole, the transformation of the petty trades into great industries goes on with a slowness which cannot fail to astonish even those who are convinced of its necessity. Nay, sometimes we may even see the reverse movement going on—occasionally, of course, and only for a time. I cannot forget my amazement when I saw at Verviers, some thirty years ago, that most of the woollen cloth factories—immense barracks facing the streets by more than a hundred windows each—were silent, and their costly machinery was rusting, while cloth was woven in hand-looms in the weavers’ houses, for the owners of those very same factories. Here we have, of course, but a temporary fact, fully explained by the spasmodic character of the trade and the heavy losses sustained by the owners of the factories when they cannot run their mills all the year round. But it illustrates the obstacles which the transformation has to comply with. As to the silk trade, it continues to spread over Europe in its rural industry shape; while hundreds of new petty trades appear every year, and when they find nobody to carry them on in the villages—as is the case in this country—they shelter themselves in the suburbs of the great cities, as we have lately learned from the inquiry into the “sweating system.”

Now, the advantages offered by a large factory in comparison with hand work are self-evident as regards the economy of labour, and especially—this is the main point—the facilities both for sale and for having the raw produce at a lower price. How can we then explain the persistence of the petty trades? Many causes, however, most of which cannot be valued in shillings and pence, are at work in favour of the petty trades, and these causes will be best seen from the following illustrations. I must say, however, that even a brief sketch of the countless industries which are carried on on a small scale in this country, and on the Continent, would be far beyond the scope of this chapter. When I began to study the subject some thirty years ago, I never guessed, from the little attention devoted to it by the orthodox economists, what a wide, complex, important, and interesting organisation would appear at the end of a closer inquiry. So I see myself compelled to give here only a few typical illustrations, and to indicate the chief lines only of the subject.

The Small Industries in the United Kingdom.

We have not for the United Kingdom such statistical data as are obtained in France and Germany by periodical censuses of all the factories and workshops, and the numbers of the workpeople, foremen and clerks, employed on a given day in each industrial and commercial establishment. Consequently, up to the present time all the statements made by economists about the so-called “concentration” of the industry in this country, and the consequent “unavoidable” disappearance of the small industries, have been based on mere impressions of the writers,—not on statistical data. Up till now we cannot give, as it is done further in these pages for France and Germany, the exact numbers of factories and workshops employing, let us say, from 1,000 to 2,000 persons, from 500 to 1,000, from 50 to 500, less than 50, and so on. It is only since factory inspection has been introduced by the Factory Act of 1895 that we begin to find, in the Reports published since 1900 by the Factory Inspectors (Annual Report of the Chief Inspector of Factories and Workshops for the year 1898: London, 1900), information which permits us to get a general idea about the distribution of working men in factories of different sizes, and the extension that the petty trades have retained in this country up till now.[130] One may see it already from the following little table for the year 1897, which I take from the just-mentioned Report. These figures are not yet complete, especially as regards the workshops, but they contain already the greater part of the English industries.