English Economic History: Select Documents

by Unknown

The Tyranny of the Blackwel-Hall Factors.

The sufferings of the poor employed in working up Spanish wool, are not owing to the unmercifulness of the clothiers, but the tyranny of Blackwel-Hall factors; who though originally but the servants of the makers, are now become their masters, and not only theirs, but the wool merchants and drapers too.

Perhaps, sir, you may ask how it is possible that these men, who style themselves but factors or agents, could find means to lord it as tyrants over their employers? Why thus: they have managed it so, that the merchant dare not sell his wool to the clothier, nor the clothier presume to buy it of the merchant. On this grand point their whole power is founded. To make this clear, sir, you are to understand, that in the year 1695, the clothiers finding themselves in much the same circumstances they are at present, by their credit given to the drapers on one hand, and their being obliged to purchase wool of the factors, on the other, applied in a body to parliament for relief, and an act was accordingly past for restoring to them Blackwel-Hall for a market, limiting the credit to be given for their goods, to six months; obliging the factor to demand notes of hand of the draper, payable in that term, for the use of the clothier, on penalty of forfeiting double the value of the debt; and in case the draper refused to give such notes, so demanded, fining him 20s.

For a little while, this act had its desired effect; these notes were immediately returned to the clothier, who carried them to market for wool, etc., and by that means, made them answer in trade almost as well as cash itself. The factors thus stripped of the most valuable part of their business, immediately concerted such measures as rendered the whole act ineffectual, and put it in their power to tyrannize over the clothiers as much as ever. This was done, by tampering with those of the trade, whose circumstances were most precarious, who induced by the promise of a speedy sale for their goods, prior to those of any other maker, were easily prevailed upon to forego the advantage of the notes granted them by Parliament. This fatal precedent being once set, the factors instantly exacted a like compliance from all the rest; and if any refused not one piece of their cloth was sold. By which means, being obliged to keep their workmen employed in the interval, their whole stock, though ever so large, was exhausted; and the more stock they had, the more it became their interest to truckle to their old oppressors, and again take off their wool on what terms they pleased.

This important point carried, like true politicians, they resolved to pursue their blow, and add some new acquisitions to what they possessed before. Accordingly, they again allowed the drapers such unreasonable credit, that it was impossible for the most substantial clothier to carry on the trade, while the returns were so slow and precarious. On an universal complaint therefore of this grievance, they graciously condescended to insure the debt to be paid, twelve months after it was contracted; but in return of so great a favour, insisted on two and a half per cent. as a reward; and if any was rash or stubborn enough to disrelish or oppose this new imposition, he had the mortification to wait six months longer for his money, that is to say, a year and a half in all; which, together with the three months the cloth is in making, and three that (one piece with another) it continues in the hall, before it is sold off, make two years in the whole. Now let any one judge how large a stock is absolutely necessary to carry on a trade, under all these disadvantages, particularly when 'tis recollected, that the clothier is obliged to pay his workmen ready money all this while, whether his goods are vended or no; and that the modest factor always insists on his being paid for his wool, with the first money he receives for the cloth.

Neither is even this all. But if the clothier, hard drove by so vast and so continued a charge, should be compelled, as too many are, to draw upon the factor for money before 'tis due, according to their calculation, one misfortune makes way for another; and he must pay an extravagant premium for the advance, probably, of his own money. Nor are you to wonder, sir, that these worthy gentlemen are so solicitous to monopolise the whole market of Spanish wool; since, on a medium, they get four pounds on every pack. Now a considerable clothier may be supposed to work up 80 packs a year; which is in a manner a rent charge of 320l. to the factor annually; for it is more than probable that this very wool is purchased with the clothiers' cash; and while the factor grows rich without any risk, and with very little trouble the clothier is doubly excised, both for what he receives, and what is not only withheld, but employed so manifestly to his prejudice.

'Tis farther to be observed, that as by far the greatest part of a clothiers' stock must of necessity be lodged in the factors hands, if he (the clothier) happens to break, or die insolvent (as in spite of a whole life of toil and industry, many of them do) the factor immediately seizes on the whole; it being (says he) a pledge for money advanced, wool sold, etc., so that the rest of the creditors seldom receive a farthing, while he, to whom the poor man's calamity is principally owing, runs away with all.

Besides these capital grievances, there are several others, which though inferior in degree, are, when added together, no small increase of the load; such as the factors lumping the charges for warehouse-room in the hall, porterage, pressing, packing, etc., every article of which ought to be particular; as likewise sending out cloths to the drapers at the expense of the clothier, not for sale; but one would be almost tempted to think, to supply the shops with the paper and packthread they are secured with; since they are returned stripp'd of both, tumbled from end to end, exposed to all weather and accidents, and in such a condition as renders it absolutely necessary to have them cleaned, pressed, and packed anew. And all this, after they have been out of the hall six or eight weeks; though the above quoted act of Parliament provides that every cloth shall be reputed sold, after it hath been detained eight days.

One would think, sir, I had already mentioned grievances enough, not only to justify the clothier, but to excite the concern of the whole people in their favour, and the aid of the legislature in their redress. But there is yet another behind, which ought not to be omitted. It is this. These worthy factors, not content with all these various methods of oppression, to crown the whole, often set up people to act as master clothiers, on their stock, during any little glut of business; and as it is easy to imagine, give all the cloth so made, the preference of the market, though perhaps in all respects, least deserving of it. Hence, those that trade on their own bottoms, and employ the poor in good and bad times alike, are liable to all the disadvantages of the one, with little or no share in the benefits of the other. And hence, more people are admitted into trade, than the trade can possibly maintain; which opens a new door to the tumults and riots so lately felt.

6. Report on the Condition of Children in Lancashire Cotton Factories [Report of Committee on State of Children in Manufactories, 1816 (III), pp. 139-140], 1796.