Chapter VI.

Remedies for Sweating.

§ 1. Factory Legislation. What it can do.--Having now set forth the

three aspects of the industrial disease of "Sweating"--the excessive

supply of unskilled labour, the multiplication of small employers, the

irresponsibility of capital--we have next to ask, What is the nature of

the proposed remedies? Since any full discussion of the different

remedies is here impossible, it must suffice if we briefly indicate the

application of the chief proposed remedies to the different aspects of

the disease. These remedies will fairly fall into three classes.

The first class aim at attacking by legislative means, the small

workshop system, and the evils of long hours and unsanitary conditions

from which the "sweated" workers suffer. Briefly, it may be said that

they seek to increase and to enforce the legal responsibility of

employers, and indirectly to crush the small workshop system by turning

upon it the wholesome light of publicity, and imposing certain irksome

and expensive conditions which will make its survival in its worst and

ugliest shapes impossible. The most practical recommendation of the

Report of the Lords' Committee is an extension of the sanitary clauses

of the Factory Act, so as to reach all workshops.

We have seen that the unrestricted use of cheap labour is the essence of

"sweating." If the wholesome restrictions of our Factory Legislation

were in fact extended so as to cover all forms of employment, they would

so increase the expenses of the sweating houses, that they would fall

before the competition of the large factory system. Karl Marx writing a

generation ago saw this most clearly. "But as regards labour in the so-

called domestic industries, and the intermediate forms between this and

manufacture, so soon as limits are put to the working day and to the

employment of children, these industries go to the wall. Unlimited

exploitation of cheap labour power is the sole foundation of their power

to compete."[28]

The effectiveness of the existing Factory Act, so far as relates to

small workshops, is impaired by the following considerations--

1. The difficulty in finding small workshops. There is no effectual

registration of workshops, and the number of inspectors is inadequate to

the elaborate and tedious method of search imposed by the present

system.

2. The limitation as to right of entry. The power of inspectors to

"enter, inspect, and examine at all reasonable times by day or night, a

factory or a workshop, and every part thereof, when he has reason to

believe that any person is employed therein, and to enter by day any

place he has reasonable cause to believe to be a factory or workshop,"

is in fact not applicable in the case of dwelling-rooms used for

workshops. In a large number of cases of the worst form of "sweating,"

the inspector has no right of entrance but by consent of the occupant,

and the time which elapses before such consent is given suffices to

enable the "sweater" to adjust matters so as to remove all evidence of

infringements of the law.

3. The restricted power in reference to sanitation. A factory inspector

has no sanitary powers; he cannot act save through the sanitary officer.

The machinery of sanitary reform thus loses effectiveness.

Compulsory registration of workshops, adequate inspection, and reform of

machinery of sanitary reform, would be of material value in dealing with

some of the evils of the small workshop. But it would by no means put an

end to "sweating." So far as it admitted the continuance of the small

workshop, it would neither directly nor indirectly abate the evil of low

wages. It is even possible that any rapid extension of the Factory Act

might, by limiting the amount of employment in small workshops, increase

for a time the misery of those low-skilled workers, who might be

incapable of undertaking regular work in the larger factory. It is, at

any rate, not evident that such legislative reform would assist low-

class workers to obtain decent wages and regular employment, though it

would improve the other conditions under which they worked.

Again, existing factory legislation by no means covers even

theoretically the whole field of "sweating." Public-houses, restaurants,

all shops and places of amusement, laundries, and certain other

important forms of employment, which escape the present factory

legislation, are in their lower branches liable to the evils of

"sweating," and should be included under such factory legislation as

seeks to remedy these evils.

§ 2. Co-operative Production.--The organization of labour is the second

form of remedy. It is urged that wherever effective organization exists

in any trade, there is no danger of sweating. We have therefore, it is

maintained, only to organize the lower grades of labour, and "sweating"

will cease to exist. There are two forms of organization commonly

advocated, Co-operation and Trade Unionism.

The suggestion that the poorer grades of workers should by co-operative

production seek to relieve themselves from the stress of poverty and the

tyranny of the "sweating system," is a counsel of perfection far removed

from the possibility of present attainment. No one who has closely

studied the growth of productive co-operation in England will regard it

as a practicable remedy for poverty. Productive co-operation is

successful at present only in rare cases among skilled workmen of

exceptional morale and education. It is impossible that it should be

practised by low-skilled, low-waged workers, under industrial conditions

like those of to-day. It is surprising to find that the Lords' Committee

in its final report should have given prominence to schemes of co-

operation as a cure for the disease. The following paragraph correctly

sums up experience upon the subject--

"Productive societies have been from time to time started in East

London, but their career has been neither long nor brilliant. They have

often had a semi-philanthropic basis, and have been well-meant but

hopeless attempts to supersede 'sweating' by co-operation. None now

working are of sufficient importance to be mentioned."[29]

The place which productive and distributive co-operation is destined to

occupy in the history of the industrial freedom and elevation of the

masses doubtless will be of the first importance. To look forward to a

time when the workers of the community may be grouped in co-operative

bodies, either competing with one another, or related by some bond which

shall minimize the friction of competition, while not impairing the

freedom and integrity of each several group, is not perhaps a wild

utopian vision. To students of English industrial history the transition

to such a state will not appear more marked than the transition through

which industry passed under the Industrial Revolution to the present

capitalist system. But the recognition of this possible future does not

justify us in suggesting productive co-operation as a present remedy for

the poverty of low-skilled city workers. These latter must rise several

steps on the industrial and moral ladder before they are brought within

the reach of the co-operative remedy. It is with the cost and labour of

these early steps that the students of the problem of present poverty

must concern themselves.

§ 3. Trade Unionism. Ability of Workers to combine. Trade Unionism is a

more hopeful remedy. Large bodies of workers have by this means helped

to raise themselves from a condition of industrial weakness to one of

industrial strength. Why should not close combination among workers in

low-paid and sweating industries be attended with like results? Why

should not the men and women working in "sweating" trades combine, and

insist upon higher wages, shorter hours, more regular employment, and

better sanitary conditions? Well, it may be regarded as an axiom in

practical economies, that any concerted action, however weak and

desultory, has its value. Union is always strength. An employer who can

easily resist any number of individual claims for higher wages by his

power to replace each worker by an outsider, can less easily resist the

united pressure of a large body of his workmen, because the

inconvenience of replacing them all at once by a body of outsiders, is

far greater than the added difficulty of replacing each of them at

separate intervals of time. This is the basis of the power of concerted

action among workers. But the measure of this power depends in the main

upon two considerations.

First comes the degree of effectiveness in combination. The prime

requisites for effective combination are a spirit of comradeship and

mutual trust, knowledge and self-restraint in the disposition of united

force. Education and free and frequent intercourse can alone establish

these elements of effective combination. And here the first difficulty

for workers in "sweating" trades appears. Low-skilled work implies a low

degree of intelligence and education. The sweating industries, as we

have seen, are as a rule those which escape the centralizing influence

of the factory System, and where the employés work, either singly or in

small groups, unknown to one another, and with few opportunities of

forming a close mutual understanding. In some employments this local

severance belongs to the essence of the work, as, for example, in the

case of cab-drivers, omnibus-drivers, and generally in shop-work, where,

in spite of the growth of large stores, small masters still predominate;

in other employments the disunion of workers forms a distinct commercial

advantage which enables such low-class industries to survive, as in the

small workshop and the home-labour, which form the central crux of our

sweating problem. The very lack of leisure, and the incessant strain

upon the physique which belong to "sweating," contribute to retard

education, and to render mutual acquaintanceship and the formation of a

distinct trade interest extremely difficult. How to overcome these grave

difficulties which stand in the way of effective combination among

unskilled workers is a consideration of the first importance. The rapid

and momentarily successful action of organized dock labourers must not

be taken as conclusive evidence that combination in all other branches

of low-class labour can proceed at the same pace. The public and

localized character of the competition for casual dock labour rendered

effective combination here possible, in spite of the low intellectual

and moral calibre of the average labourer. It is the absence of such

public and localized competition which is the kernel of the difficulty

in most "sweating" trades. It may be safely said that the measure of

progress in organization of low class labour will be the comparative

size and localization of the industrial unit. Where "sweating" exists in

large factories or large shops, effective combination even among workers

of low education may be tolerably rapid; among workers engaged by some

large firm whose work brings them only into occasional contact, the

progress will be not so fast; among workers in small unrelated workshops

who have no opportunities of direct intercourse with one another, the

progress will be extremely slow. The most urgent need of organization is

precisely in those industries where it is most difficult to organize. It

is, on the whole, not reasonable to expect that this remedy, unless

aided by other forces working against the small workshops, will enable

the "hands" in the small sweater's den to materially improve their

condition.

§ 4. Trade Union Methods of limiting Competition.--So far we have

regarded the value of combination as dependent on the ability of workers

to combine. There is another side which cannot be neglected. Two

societies of workmen equally strong in the moral qualities of successful

union may differ widely in the influence they can exert to secure and

improve their position. We saw that the real value of organization to a

body of workmen lay in the power it gave them to make it inconvenient

for an employer to dispense with their services in favour of outsiders.

Now the degree of this inconvenience will obviously depend in great

measure upon the number of outsiders qualified by strength and skill to

take their place without delay. The whole force of Unionism hangs on

"the unemployed." The strongest and most effective Unions are in trades

where there are the smallest number of unemployed competitors; the

weakest Unions are in trades which are beset by crowds of outsiders able

and willing to undertake the work, and if necessary to underbid those

who are employed.

Close attention to the composition and working of our Trade Unions

discloses the fact that their chief object is to limit the competition

for work in their respective trades. Since their methods are sometimes

indirect, this is sometimes denied, but the following statement of Trade

Union methods makes it clear. The minimum or standard rate of wages

plays a prominent part in Unionism. It is arbitrarily fixed by the

Union, which in its estimate takes into account, [Greek: a]. prices paid

for articles produced; [Greek: b]. a reasonable standard of comfort;

[Greek: g]. and remuneration for time spent in acquiring necessary

skill.[30] This is an estimate, it must be remembered, of a "fair wage,"

based upon calculations as to what is just and reasonable, and does not

necessarily correspond to the economic wage obtainable in a

neighbourhood by the free competition of labour and capital. Now this

standard wage, which may or may not be the wage actually paid, plays a

very prominent part in Unionism. The point of importance here is its

bearing on the admission of new members. The candidate for membership

has, as his principal qualification, to show that he is capable of

earning the standard rate of wages. It is evident, however, that the

effect of any large new accession to the ranks of any trade must, unless

there is a corresponding growth of employment, bring down the rate of

wages, whether these be fixed by a Trade Union standard or not. Hence it

is evident that any Trade Union would be bound to refuse admission to

new applicants who, though they might be in other respects competent

workmen, could not find work without under-bidding those who were at

present occupied. This they would do by reason of their standard wage

qualification, for they would be able to show that the new applicants

would not be competent to earn standard wages under the circumstances.

How far Trade Unions actually have conscious recourse to this method of

limiting their numbers, may be doubted; but no one acquainted with the

spirit of Trades Unions would believe that if a sudden growth of

technical schools enabled large numbers of duly qualified youths to

apply for admission into the various Unions so as to compete for the

same quantity of work with the body of existing members, the Unions of

the latter would freely and cheerfully admit them. To do so would be

suicidal, for no standard rate of wages could stand against the pressure

of an increased supply of labour upon a fixed demand. But it is not

necessary to suppose that any considerable number of actually qualified

workmen are refused admission to Trade Unions of skilled workers. For

the possession of the requisite skill, implying as it does a certain

natural capacity, and an expenditure of time and money not within the

power of the poorest classes, forms a practical limit to the number of

applicants. Moreover, in many trades, though by no means in all,

restrictions are placed by the Unions upon the number of apprentices,

with the object of limiting the number of those who should from year to

year be qualified to compete for work. In other trades where no rigid

rule to this effect exists, there is an understanding which is equally

effective. Certain trades, such as the engineers, boiler-makers, and

other branches of iron trade, place no restrictions, and in certain

other trades the restrictions are not closely applied. But most of the

strong Trades Unions protect themselves in another way against the

competition of unemployed. By a System of "out of work" pay, they bribe

those of their body, who from time to time are thrown out of work, not

to underbid those in work, so as to bring down the rate of wages.

Several of the most important Unions pay large sums every year to "out

of work" members. By these three means, the "minimum wage" qualification

for membership, the limitation of the number of apprentices, and the

"out of work" fund, the Trade Unions strengthen the power of organized

labour in skilled industries by restricting the competition of

unemployed outsiders.

It is true that some of the leading exponents of Trade Unionism deny

that the chief object of the Unions is to limit competition. Mr. Howell

considers that the "standard wage" qualification for membership is

designed in order to ensure a high standard of workmanship, and regards

the "out of work" fund merely as belonging to the insurance or

prudential side of Trade Unionism. But though it may readily be admitted

that one effect of these measures may be to maintain good workmanship

and to relieve distress, it is reasonable to regard the most important

result actually attained as being the object chiefly sought. It is fair

to suppose, therefore, that while Unionists may not be indifferent to

the honour of their craft, their principal object is to strengthen their

economic position. At any rate, whatever the intention of Trade Unions

may be, the principal effect of their regulations is to limit the

effective supply of competing labour in their respective branches of

industry.

§ 5. Can Low-skilled Workers successfully combine?--Now the question

which concerns our inquiry may be stated thus. Supposing that the

workers in "sweating" industries were able to combine, would they be

able to secure themselves against outside competition as the skilled

worker does? Will their combination practically increase the difficulty

in replacing them by outsiders? Now it will be evident that the

unskilled or low-skilled workers cannot depend upon the methods which

are adopted by Unions of skilled workers, to limit the number of

competitors for work. A test of physical fitness, such as was recently

proposed as a qualification for admission to the Dock-labourers Union,

will not, unless raised far above the average fitness of present

members, limit the number of applicants to anything like the same extent

as the test of workmanship in skilled industries. Neither could rules of

apprenticeship act where the special skill required was very small. Nor

again is it easy to see how funds raised by the contribution of the

poorest classes of workers, could suffice to support unemployed members

when temporarily "out of work," or to buy off the active competition of

outsiders, or "black-legs," to use the term in vogue. The constant

influx of unskilled labour from the rural districts and from abroad,

swollen by the numbers of skilled workmen whose skill has been robbed of

its value by machinery, keeps a large continual margin of unemployed,

able and willing to undertake any kind of unskilled or low-skilled

labour, which will provide a minimum subsistence wage. The very success

which attends the efforts of skilled workers to limit the effective

supply of their labour by making it more difficult for unskilled workers

to enter their ranks, increases the competition for low-skilled work,

and makes effective combination among low-skilled workers more

difficult. Though we may not be inclined to agree with Prof. Jevons,

that "it is quite impossible for Trade Unions in general to effect any

permanent increase of wages," there is much force in his conclusion,

that "every rise of wages which one body secures by mere exclusive

combination, represents a certain extent, sometimes a large extent, of

injury to the other bodies of workmen."[31] In so far as Unions of

skilled workers limit their numbers, they increase the number of

competitors for unskilled work; and since wages cannot rise when the

supply of labour obtainable at the present rate exceeds the demand,

their action helps to maintain that "bare subsistence wage," which forms

a leading feature in "sweating."

Are we then to regard Unions of low-skilled workers as quite impotent so

long as they are beset by the competition of innumerable outsiders? Can

combination contribute nothing to a solution of the sweating problem?

There are two ways in which close combination might seem to avail low-

skilled workers in their endeavours to secure better industrial

conditions.

In the first place, close united action of a large body of men engaged

in any employment gives them, as we saw, a certain power dependent on

the inconvenience and expense they can cause to their employers by a

sudden withdrawal. This power is, of course, in part measured by the

number of unemployed easily procurable to take their place. But granted

the largest possible margin of unemployed, there will always be a

certain difficulty and loss in replacing a united body of employés by a

body of outsiders, though the working capacity of each new-comer may be

equal to that of each member of the former gang. This power belonging

inherently to those in possession, and largely dependent for its

practical utility on close unity of action, may always be worked by a

trade organization to push the interests of its members independently of

the supply of free outside labour, and used by slow degrees may be made

a means of gaining piece by piece a considerable industrial gain. Care

must, however, be taken, never to press for a larger gain than is

covered by the difficulty of replacing the body of present employés by

outside labour. Miscalculations of the amount of this inherent power of

Union are the chief causes of "lock-outs" and failures in strikes.

Another weapon in the hands of unskilled combination, less calculable in

its effectiveness, is the force of public opinion aided by "picketing,"

and the other machinery of persuasion or coercion used to prevent the

effective competition of "free" labour. In certain crises, as for

example in the Dock strike of 1889, these forces may operate so

powerfully as to strictly limit the supply of labour, and to shut out

the competition of unemployed. There can be no reason to doubt that if

public authority had not winked at illegal coercion of outside labour,

and public opinion touched by sentiment condoned the winking, the Dock

strike would have failed as other movements of low-skilled labour have

generally failed. The success of the Dockers is no measure of the power

of combination among low-skilled labourers. It is possible, however,

that a growing sense of comradeship, aided by a general recognition of

the justice of a claim, may be generally relied upon to furnish a

certain force which shall restrict the competition of free labour in

critical junctures of the labour movement. If public opinion, especially

among workmen, becomes strongly set in favour of letting capital and

labour "fight it out" in cases of trade disputes, and vigorously resents

all interference of outsiders offering to replace the contending

labourers, it seems likely that this practical elimination of outside

competition may enable combinations of unskilled workmen to materially

improve their condition in spite of the existence of a large supply of

outside labour able to replace them.

§ 6. Can Trade Unionism crush out "Sweating"?--But here again it must be

recognized that each movement of public opinion in this direction is

really making for the establishment of new trade monopolies, which tend

to aggravate the condition of free unemployed labour. Unions of low-

skilled labour can only be successful at the expanse of outsiders, who

will find it increasingly difficult to get employment. The success of

combinations of low-skilled workers will close one by one every avenue

of regular employment to the unemployed, who will tend to become even

more nomadic and predatory in their habits, and more irregular and

miserable in their lives, affording continually a larger field of

operation for the small "sweater," and other forms of "arrested

development" in commerce. It must always be an absorbing interest to a

Trades Union to maintain the industrial welfare of its members by

preventing what it must regard as an "over-supply" of labour. No

organization of labour can effect very much unless it takes measures to

restrict the competition of "free labour"; each Union, by limiting the

number of competitors for its work, increases the competition in trades

not similarly protected. So with every growth of Trade Unionism the

pressure on unprotected bodies of workmen grows greater. Thus it would

seem that while organization of labour may become a real remedy for

"sweating" in any industry to which it is vigorously applied, it cannot

be relied upon ever entirely to crash out the evil. It can only drive it

into a smaller compass, where its intenser character may secure for it

that close and vigorous public attention which, in spite of recent

revelations, has not been yet secured, and compel society to clearly

face the problem of a residue of labour-power which is rotting in the

miserable and degraded bodies of its owners, because all the material on

which it might be productively employed is otherwise engaged.

§ 7. Public Workshops.--Those who are most active in the spread of

Unionism among the low-skilled branches of industry, are quite aware

that their action, by fencing off section after section of labour from

the fierce competition of outsiders, is rendering the struggle more

intense for the unprotected residuum. So far as they indulge any wider

view than the interest of their special trades, it may be taken that

they design to force the public to provide in some way for the

unemployed or casually employed workers, against whom the gates of each

Union have been successively closed. There can be little doubt that if

Unionism is able to establish itself firmly among the low-skilled

industries, we shall find this margin of unemployed low-skilled labour

growing larger and more desperate, in proportion to the growing

difficulty of finding occupation. Trade Union leaders have boldly avowed

that they will thus compel the State to recognize the "right to

employment," and to provide that employment by means of national or

municipal workshops. With questions of abstract "right" we are not here

concerned, but it may be well to indicate certain economic difficulties

involved in the establishment of public works as a solution of the

"unemployed" problem. Since the "unemployed" will, under the closer

restrictions of growing Trade Unionism, consist more and more of low-

skilled labourers, the public works on which they must be employed must

be branches of low-skilled labour. But the Unions of low-skilled workers

will have been organized with the view of monopolizing all the low-

skilled work which the present needs of the community require to be

done. How then will the public provide low-skilled work for the

unemployed? One of two courses seems inevitable. Either the public must

employ them in work similar to that which is being done by Union men for

private firms, in which case they will enter into competition with the

latter, and either undersell them in the market and take their trade, or

by increasing the aggregate supply of the produce, bring down the price,

and with it the wage of the Union men. Or else if they are not to

compete with the labour of Union men, they must be employed in relief

works, undertaken not to satisfy a public need or to produce a commodity

with a market value, but in order that those employed may, by a wholly

or partially idle expenditure of effort, appear to be contributing to

their own support, whereas they are really just as much recipients of

public charity as if they were kept in actual idleness. This is the

dilemma which has to be faced by advocates of public workshops. Nor can

it be eluded by supposing that the public may use the unemployed labour

either in producing some new utility for the public use, such as

improved street-paving, or a municipal hot-water supply. For if such

undertakings are of a character which a private company would regard as

commercially sound, they ought to be, and will be, undertaken by wise

public bodies independently of the consideration of providing work for

unemployed. If they are not such as would be considered commercially

sound, then in so far as they fall short of commercial soundness, they

will be "charity" pure and simple, given as relief is now given to able-

bodied paupers, on condition of an expenditure of mere effort which is

not a commercial _quid pro quo_.

If the State or municipality were permitted to conduct business on

ordinary commercial principles, it might indeed be expected to seize the

opportunity afforded by a large supply of unemployed labour, to

undertake new public works at a lower cost than usual. But to take this

advantage of the cheapness of labour is held to be "sweating." Public

bodies are called upon to disregard the rise and fall of market wages,

and to pay "a fair wage," which practically means a wage which is the

same whether labour is plentiful or scarce. This refusal to permit the

ordinary commercial inducement to operate in the case of public bodies,

cuts off what might be regarded as a natural check to the accumulation

of unemployed labour. If public bodies are to employ more labour, when

labour is excessive, and pay a wage which shall be above the market

price, it must be clearly understood that the portion of the wages which

represents the "uncommercial" aspect of the contract is just as much

public charity as the half-crown paid as out-door relief under the

present Poor Law. Lastly, the establishment of State or municipal

workshops for the "unemployed" has no economic connection with the

"socialist" policy, by which the State or municipality should assume

control and management of railways, mines, gas-works, tramways, and

other works into which the element of monopoly enters. Such a

"socialist" policy, if carried out, would not directly afford any relief

to the unemployed. For, in the first place, the labour employed in these

new public departments would be chiefly skilled, and not unskilled.

Moreover, so far as the condition of the "workers" was concerned, the

nationalization, or municipalization of these works would not imply any

increased demand for labour, but merely the transfer of a number of

employés from private to the public service. The public control of

departments of industry, which are now in private hands, would not, so

long as it was conducted on a commercial footing in the public interest,

furnish either direct, or indirect, relief to "the unemployed." A

reduction of hours of labour in the case of workers transferred to the

public service, might afford employment to an increased number of

skilled labourers, and might indirectly operate in reducing the number

of unemployed. But such reduction of hours of labour, like the payment

of wages above the market rate, forms no essential part of a "socialist"

policy, but is rather a charitable appendage.

§ 8. State Business on uncommercial terms.--It cannot be too clearly

recognized that the payment by a public body of wages which are above

the market price, the payment of pensions, the reduction of hours of

labour, and any other advantages freely conferred, which place public

servants in a better position than private servants, stand on precisely

the same economic footing with the establishment of public workshops for

the relief of the unemployed, in which wages are paid for work which is

deficient in commercial value. In each case the work done has some

value, unless the unemployed are used to dig holes in the ground and

fill them up again; in each case the wages paid for that work are in

excess of the market rate.

If it were established as a general rule, that public bodies should

always add a "bonus" to the market wage of their employés to bring it up

to "fairness," and take off a portion of the usual "working-day" to

bring it down to "fairness," it would follow quite consistently that a

wage equal to, or exceeding, the minimum market rate might be paid to

"unemployed" for work, the value of which would be somewhat less than

that produced by the lowest class of "employed" workers. The policy

throughout is one and the same, and is based upon a repudiation of

competition as a test of the value of labour, and the substitution of

some other standard derived from moral or prudential considerations.

So far as the State or Municipality chooses to regulate by an

"uncommercial" or moral standard the conditions of labour for the

limited number of employés required for the services which are a public

monopoly, it is able to do so, provided the public is willing to pay the

price. There is much to be said in favour of such a course, for the

public example might lend invaluable aid in forming a strong public

opinion which should successfully demand decent conditions of life and

work, for the whole body of workers. But if the State or Municipality

were to undertake to provide work and wages for an indefinite number of

men who failed to obtain work in the competition market, the effect

would be to offer a premium upon "unemployment." Thus, it would appear

that as fast as the public works drew off the unemployed, so fast would

men leave the low-paid, irregular occupations, and by placing themselves

in a state of "unemployment" qualify for public service. There would of

course be a natural check to this flow. As the State drained off all

surplus labour, the market value of labour would rise, greater

regularity of employment would be secured, and the general improvement

of industrial conditions would check the tendency of workers to flow

towards the public workshops. This consideration has led many of the

leaders of labour movements to favour a scheme of public workshops,

which would practically mean that the State or Municipality undertook to

limit the supply of labour in the open market, by providing for any

surplus which might exist, at the public expense. The effect of such a

policy would be of course to enormously strengthen the effective power

of labour-organizations. But while the advocates of public workshops are

fully alive to these economic effects, they have not worked out with

equal clearness the question relating to the disposal of the labour in

public workshops. How can the "protected" labour of the public workshops

be so occupied, that its produce may not, by direct or indirect

competition with the produce of outside labour, outweigh the advantage

conferred upon the latter by the removal of the "unemployed" from the

field of competition, in digging holes and filling them up again, or

other useless work, the problem is a simple one. In that case the State

provides maintenance for the weaker members in order that their presence

as competitors for work may not injure the stronger members. But if the

public workmen produce anything of value, by what means can it be kept

from competing with and underselling the goods produced under ordinary

commercial conditions? Without alleging that the difficulties involved

in these questions are necessarily fatal to all schemes of public works,

we maintain that they require to be clearly faced.

Even if it be held that public workshops can furnish no economic remedy

for poverty, this judgment would of course be by no means conclusive

against public emergency works undertaken on charitable grounds to tide

over a crisis. Every form of charity, public or private, discriminate or

indiscriminate, entails some evil consequences. But this consideration

is not final. A charitable palliative is defensible and useful when the

net advantages outweigh the net disadvantages. This might seem self-

evident, but it requires to be stated, because there are not wanting

individuals and societies which imagine they have disposed of the claim

of charitable remedies by pointing out the evil consequences they

entail. It is evident that circumstances might arise which would compel

the wisest and steadiest Government to adopt public relief works as a

temporary expedient for meeting exceptional distress.

§ 9. Restriction of Foreign Emigration.--Two further proposals for

keeping down the supply of low-skilled labour deserve notice, and the

more so because they are forcing their way rapidly toward the arena of

practical politics.

The first is the question of an Alien law limiting or prohibiting the

migration of foreign labourers into England. The power of the German,

Polish, or Russian Jew, accustomed to a lower standard of life, to

undersell the English worker in the English labour market, has already

been admitted as a cause of "sweating" in several city industries. The

importance of this factor in the problem of poverty is, however, a much

disputed point. To some extent these foreign labourers are said to make

new industries, and not to enter into direct and disastrous competition

with native workers. In most cases, however, direct competition between

foreign and native workers does exist, and, as we see, the comparatively

small number of the foreign immigrants compared with the aggregate of

native workers, is no true criterion of the harm their competition does

to low-waged workers. Whether this country will find it wise to reverse

its national policy of free admission to outside labour, it is not easy

to predict. The point should not be misunderstood. Free admission of

cheap foreign labour must be admitted _primâ facie_ to be conducive to

the greatest production of wealth in this country. Those who seek to

restrict or prohibit this admission, do so on the ground that the damage

inflicted upon that class of workers, brought directly or indirectly

into competition for employment with these foreigners, overbalances the

net gain in the aggregate of national wealth. It is this consideration

which has chiefly operated in inducing the United States, Canada, and

Australia to prohibit the admission of Chinese or Coolie labour, and to

place close restrictions upon cheap European labour. Sir Charles Dilke,

in a general summary of colonial policy on this matter, writes,

"Colonial labour seeks protection by legislative means, not only against

the cheap labour of the dark-skinned or of the yellow man, but also

against white paupers, and against the artificial supply of labour by

State-aided white immigration. Most of the countries of the world,

indeed, have laws against the admission of destitute aliens, and the

United Kingdom is in practice almost the only exception."[32]

The greater contrast between the customary standard of living of the

immigrants and that of the native workers with whom they would compete,

has naturally made the question seem a more vital one for our colonies,

and for the United States than for us. There can, however, be little

doubt that if a few shiploads of Chinese labourers were emptied into the

wharves of East London, whatever Government chanced to be in power would

be compelled to adopt immediate measures of restraint on immigration, so

terrible would the effect be upon the low class European labourers in

our midst. Whether any such Alien legislation will be adopted to meet

the inroad of continental labour depends in large measure on the course

of continental history. It is, however, not improbable that if the

organization of the workers proceeds along the present lines, when they

come to realize their ability to use political power for securing their

industrial position, they may decide that it will be advisable to limit

the supply of labour by excluding foreigners. Those, however, who are

already prepared to adopt such a step, do not always realize as clearly

as they should, that the exclusion of cheap foreigners from our labour-

market will be in all probability accompanied by an exclusion from our

markets of the cheap goods made by these foreigners in their own

country, the admission of which, while it increases the aggregate wealth

of England, inflicts a direct injury on those particular workers, the

demand for whose labour is diminished by the introduction of foreign

goods which can undersell them. If an Alien law is passed, it will bring

both logically and historically in its wake such protective measures as

will constitute a reversal of our present Free Trade policy. Whether

such new and hazardous changes in our national policy are likely to be

made, depends in large measure upon the success of other schemes for

treating the condition of over-supply of low-skilled labour. If no

relief is found from these, it seems not unlikely that a democratic

government will some day decide that such artificial prohibition of

foreign labour, and the foreign goods which compete with the goods

produced by low-skilled English labour, will benefit the low-skilled

workers in their capacity as wage-earners, more than the consequent rise

of prices will injure them in their capacity as consumers.

§ 10. The "Eight Hours Day" Argument.--The last proposal which deserves

attention, is that which seeks to shorten the average working-day. The

attempt to secure by legislation or by combination an eight hours day,

or its equivalent, might seem to affect the "sweating system" most

directly, as a restriction on excessive hours of labour. But so far as

it claims to strike a blow at the industrial oppression of low-skilled

labour, its importance will depend upon its effect on the demand and

supply of that low-skilled labour. The result which the advocates of an

eight hours day claim for their measure, may be stated as follows--

Assuming that low-skilled workers now work on an average twelve hours a

day, a compulsory reduction to eight hours would mean that one-third

more men were required to perform the same amount of work, leaving out

for convenience the question whether an eight hours day would be more

productive than the first eight hours of a twelve hours day. Since the

same quantity of low-skilled work would require to be done, employment

would now be provided for a large number of those who would otherwise

have been unemployed. In fact, if the shorter day is accompanied by an

absolute prohibition of over-time, it seems possible that work would

thus be found for the whole army of "unemployed." Nor is this all. The

existence of a constant standing "pool" of unemployed was, as we saw,

responsible for keeping the wages of low-skilled labour down to a bare

subsistence wage. Let this "pool" be once drained off, wages will

rapidly rise, since the combined action of workers will no longer be

able to be defeated by the eagerness of "outsiders" to take their work

and wages. Thus an eight hours day would at once solve the problem of

the "work-less," and raise the wages of low-skilled labour. The effect

would be precisely the same as if the number of competitors for work

were suddenly reduced. For the price of labour, as of all else, depends

on the relation between the demand for it and the supply, and the price

will rise if the demand is increased while the supply remains the same,

or if the supply is decreased while the demand remains the same. A

compulsory eight hours day would practically mean a shrinkage in the

supply of labour offered in the market, and the first effect would

indisputably be a rise in the price of labour. To reduce by one-third at

a single blow the amount of labour put forth in a day by any class of

workers, is precisely equivalent to a sudden removal of one-third of

these workers from the field of labour. We know from history that the

result of a disastrous epidemic, like the Black Plague, has been to

raise the wages and improve the general condition of the labourer even

in the teeth of legal attempts to keep down wages. The advocates of an

Eight Hours Act assert that the same effect would follow from that

measure.

Setting aside as foreign to our discussion all consideration of the

difficulties in passing and enforcing an Eight Hours Act, or in applying

it to certain industries, the following economic objection is raised by

opponents to the eight hours movement--

The larger aggregate of wages, which must be paid under an eight hours

day, will increase the expanses of production in each industry. For the

increased wage cannot in general be obtained by reducing profits, for

any such reduction will drive freshly-accumulated capital more and more

to seek foreign investments, and managing ability will in some measure

tend to follow it. The higher aggregate of wages must therefore be

represented in a general rise of prices. This rise of prices will have

two effects. In the first place it will tend to largely negative the

higher aggregate of money wages. Or if organized labour, free from the

competition of unemployed, is able to maintain a higher rate of real

wages, the general rise in prices will enable foreign producers to

undersell us in our own market (unless we adopted a Protective Tariff),

and will disable us from competing in foreign markets. This constitutes

the pith of the economic objection raised against an eight hours day.

The eight hours advocates meet the objection in the following ways--

First, they deny that prices will rise in consequence of the increased

aggregate of wages. A reduction in interest and in wages of

superintendence will take place in many branches of industry, without

any appreciable tendency to diminish the application of capital, or to

drive it out of the country.

Secondly, the result of an increased expenditure in wages will be to

crush the small factories and workshops, which are the backbone of the

sweating System, and to assist the industrial evolution which makes in

favour of large well-organized factories working with the newest

machinery.

Thirdly, it is claimed that we shall not be ousted either from our own

or from foreign markets by foreign competition, because the eight hours

movement in England must be regarded as part of a larger industrial

movement which is proceeding _pari passu_ among the competing nations.

If the wages of German, French, and American workers are advancing at

the same rate as English wages, or if other industrial restrictions in

those countries are otherwise increasing the expenses of production at a

corresponding rate, the argument of foreign competition falls to the

ground.

These leading arguments of the advocates of an eight hours day are of

very unequal value. The first argument is really based upon the

supposition that the increased aggregate of wages can be "got out of

capital" by lowering interest and profits. The general validity of this

argument may be questioned. In its application a distinction must be

drawn between those businesses which by means of the possession of some

monopoly, patent, or other trade advantage are screened from the full

force of competition, and are thus enabled to earn profits above the

average, and those businesses where the constant stress of close

competition keeps interest and profits down to the lowest point which

suffices to induce the continued application of capital and organizing

ability. In the former cases the "cost" of an Eight Hours Day might be

got out of capital, assuming an effective organization of labour, in the

latter cases it could not.

As to the second argument, it is probable enough that the legal eight

hours day would accelerate the industrial evolution, which is enabling

the large well-equipped factory to crush out the smaller factory. As we

have seen that the worst evils of "sweating" are associated with a lower

order of industrial organization, any cause which assisted to destroy

the small workshop and the out-work system, would be a benefit. But as

the economic motive of such improved organization with increased use of

machinery, would be to save human labour, it is doubtful whether a

quickening of this process would not act as a continual feeder to the

band of unemployed, by enabling employers to dispense with the services

of even this or that body of workers whose work is taken over by brute

machinery.

The net value of these two eight hours arguments is doubtful. The real

weight of the discussion seems to rest on the third.

If the movement for improving the industrial condition of the working

classes does proceed as rapidly in other industrial countries as in our

own, we shall have nothing to fear from foreign competition, since

expenses of production and prices will be rising equally among our own.

If there is no such equal progress in other nations, then the industrial

gain sought for the working classes of this country by a shorter day

cannot be obtained, though any special class or classes of workers may

be relieved of excessive toil at the expense of the community as a

whole. Government employés, and that large number of workers who cannot

be brought into direct competition with foreign labour, can receive the

same wages for shorter hours, provided the public is willing to pay a

higher price for their protected labour.

In conclusion, it may be well to add that the economic difficulties

which beset this question cannot be lightly set aside by an assertion

that the same difficulties were raised by economists against earlier

factory legislation, and that experience has shown that they may be

safely disregarded. It is impossible to say how far the introduction of

humane restrictions upon the exploitation of cheap human labour has

affected the aggregate production of wealth in England. It has not

prevented the growth of our trade, but very possibly it has checked the

rate of growth. If the mere accumulation of material wealth, regardless

alike of the mode of production or of the distribution, be regarded as

the industrial goal, it is quite conceivable that a policy of utter

_laissez faire_ might be the best means of securing that end. Although

healthy and happy workers are more efficient than the half-starved and

wholly degraded beings who slaved in the uninspected factories and mines

during the earlier period of the factory system, and still slave in the

sweater's den, it may still be to the interest of employers to pay

starvation wages for relatively inefficient work, rather than pay high

wages for a shorter day's work to more efficient workers. It is to the

capitalist a mere sum in arithmetic; and we cannot predict that the

result will always turn in favour of humanity and justice.

At the same time, even if it is uncertain whether a shorter working day

could be secured without a fall of wages, it is still open to advocates

of a shorter working day to urge that it is worth while to purchase

leisure at such a price. If a shorter working day could cure or abate

the evil of "the unemployed," and help to raise the industrial condition

of the low-skilled workers, the community might well afford to pay the

cost.

Problems of Poverty: An Inquiry into the Industrial Condition of the Poor · 第 6 / 11 章