The evidence taken in Shetland does not confirm the statement made before this Commission in 1871, that 'the success of a merchant in Shetland consists in being able to accumulate such an amount of bad debts about him as will thirl the whole families in his neighbourhood, and then he succeeds,' etc. So far as this exaggerated statement has any truth, it may be said to mean that a merchant often avails himself of the power given him by his past advances, and by the hope of more, to secure both the fish and the shop custom of the fishermen in his neighbourhood; while fishermen so often need accommodation from the merchants, that even those who for the time are clear do not think it prudent to break off their connection with the merchant of the place from whom they have hitherto got supplies, and by whom they expect to be assisted in future bad years. But it does not mean, and probably was not intended to mean, that merchants ever deliberately sink a part of their capital in binding fishermen to them by the uqestionable bond of hopeless debt. The truth, so far as the highest class of merchants is concerned, seems to be fairly stated by Mr. Irvine, who says, with regard to the system of paying for fish by reference to the current price, that -
'Fishermen are quite safe with this arrangement. They know the competition between curers all over the islands is so keen, that they are secure to get the highest possible price that the markets can afford. Any curer that can offer a little advantage to the fishermen over the others is certain to get more boats the following year; and this is carried so far, that men with limited capital, in their endeavours to obtain a large share of the trade by giving credit and gratuities, in one way and another leave nothing to themselves, and in the end come to grief.'
[John Walker, qu. 44,319; W. Irvine, 3623, 3856 sqq.; See L.
Williamson, 9092; T. Williamson, 9513.]
Undoubtedly, all the merchants are in the habit of making advances to fishermen, chiefly in the form of goods, long before the fishing season begins. In such cases there is, as a matter of course, an obligation, sometimes in writing, to fish for the ensuing year; and for the purpose of more easily getting such advances, boats' crews are often formed as early as November and December. Advances of boats and lines are invariably made upon an engagement by the men who get them to deliver their fish. [Page 22 rpt.] But many of the merchants examined as witnesses agree in stating that indebtedness does not give them a hold over their men; a statement which must, however, be limited to the case of men who are hopelessly and irredeemably sunk in debt, who see no means of escape from it, or rather no means of obtaining supplies beyond the barest subsistence, but by removing to another employment. A merchant is not always desirous to retain the services of such men, because his chance of getting the old debts repaid is small, while he cannot continue to employ them without making further advances to enable them to go on with the fishing. The statements made by merchants, that indebtedness is the great drawback to their business, that indebted men are worst to deal with, and that debt gives them no control over the men, must, I think, be referred to such extreme cases only, and are not applicable to the relations between merchants and men who, not of being already hopelessly involved, require some advances in money for rent, in the form of boat and lines, or in goods for family use, after settlement and before the fishing season begins. In all such cases the debt is incurred on the express or understood condition that the man shall deliver his fish next season, and where the advance consists of boat and lines, until it is altogether paid off. To this extent it cannot be said that the debt gives the merchant no hold over the men.
EFFECT OF DEBT IN BINDING THE MEN TO A MERCHANT ENGAGEMENT BETWEEN MERCHANTS ON WEST COAST NOT TO INTERFERE WITH EACH OTHER'S MEN
In districts where indebtedness is general, the bond formed by debt is stronger. Merchants are there obliged to save themselves by enforcing their claims against indebted men, whom others, in more fortunate districts, would gladly get rid of. The merchants have allowed their debts to become too numerous and too large, either from a wrong system in the management of their business or from a desire to 'thirl' the west side men to them. On the coast of Northmaven and of Delting, a complete monopoly of the fish trade is possessed, not by landholders or their tacksmen or factors, but by three merchants (Messrs. Adie at Olnafirth Voe, Inkster at Brae, and Anderson at Hillswick and Ollaberry), who lease curing premises and a small portion of agricultural or pasture land from the Busta trustees. Except at North Roe, where Messrs. Hay have a station, there is no other merchant, along a coast-line extending for many miles, to whom the tenant can sell his fish; and the indebted man has not the liberty, which he seems to be able to exercise in some other districts, of entering into an engagement with another merchant, with whom he begins afresh, with clear books, and the hope of keeping clear. I do not say that it is morally wrong for the merchant to endeavour to secure payment of a debt by requiring the debtor to agree to deliver to him the produce of his fishing. But it cannot be a wholesome system which has led the merchants into giving credits, which they can only recover or secure by such means, and which induces them to enter into a formal written engagement among themselves-'not to tamper with or engage each other's fishermen, or allow our boat-skippers or men to do so, or to make advances of rent to them on their cattle, sheep, or ponies, or under any circumstances whatever, unless they produce a certificate from any of us whom they last fished for to the effect that he is clear of debt.' The formal stipulation thus undertaken is only what has been very frequently, not universally, acted upon throughout the western and northern parts of Shetland; for men changing their employment often find at settlement the debts due to their late master standing against them in the books of the new master. Sometimes in coming to a new employer the men's debts are, with their consent, transferred to his books, or they get cash to discharge them.
[Wm. Adie, 8641; J. Anderson, 7775; M. Laurenson, 7354; A. Harrison, 7746; T. Gifford, 8126; J. Wood, 8371; M. Henderson, 9940; A. Sandison, 10,497; T. Tulloch, 13,001; C. Ollason, 16,019; John Robertson, sen., 14,126; L. Williamson, 9074.]
The fishermen, on the other hand, for the most part admit that, so long as they are indebted to a merchant, they must continue to fish for him. Notwithstanding the statements of the merchants before referred to (see above), the truth appears to be that most of them do so continue from honesty as much as from fear of onsequences. But, so far as the practical effects of the system are concerned, it is perhaps of small importance whether supplies are given in the belief that a man's honesty and his fear of legal execution will make him continue to work them off by his labour, or in the belief that his fear of legal consequences alone will have such an effect.
[G. Blance, 5554; C. Young, 5829; P. Blanch, 8575; C. Nicholson, 8694.]
Some merchants do not hesitate to admit that being indebted compels, or at least induces, men to fish to the creditor; and, indeed, it is so obviously and naturally an inducement to do so, that it is impossible to avoid regarding indebtedness to the merchant and the engagement to fish for him as more than a merely accidental sequence of events. Experience, however, has been teaching the more extensive merchants, and teaching them perhaps more readily because they have less difficulty than others in getting fishermen, that free or unindebted men are the most successful fishermen; and that to act on the old Shetland maxim, 'If you once get a man into debt, you have a hold over him,' is to fill their boats with inferior or at least half-hearted men, and their books with bad debts. Thus the returns show that at two important stations of a leading firm 244 men were employed in 1867, and 260 in 1871; and that of these, 72, or less than a third, owed sums averaging only £2, 7s. 9d. at the settlement of 1867; while in 1871 only 9 owed sums averaging £l. In this and other cases, where debt is less, the supplies of goods also bear a less proportion to the money payments.