ADVERSE PROSPERITY.
I have a few words to say about high wages and prosperity, before I
quit the subject.
Although the rise of wages is, in fact, to some extent, the work
of protection, I am not proud of it; for trades unionism is
protection of an extreme character, generally narrow in its aims,
not sufficiently far-seeing, and consequently sometimes mischievous
in its results.
The raising of wages within reasonable bounds is desirable; but,
in a Free Trade country, it is apt to be attended with serious
consequences in raising the cost of the manufactured article, when
competing against the manufacture of foreign countries, where wages
are lower and hours of work longer.
It is said by Free Trade advocates, that although the cost of
provisions has not sensibly increased, yet _wages are 50 per cent.
higher, and hours of labour 20 per cent. less_, than they were
forty years ago.
From the political economist’s point of view, this appears to be a
decrease of national wealth. Mill says:--
“Saving enriches, and spending impoverishes, the community along
with the individual. Society at large is richer by what it
expends in _maintaining and aiding productive labour_, but poorer
by what it expends in its enjoyments.”[52]
Now if a stalwart race could have existed, and have done 20 per
cent. more work on the lower rate of wages,--although, doubtless,
some improvement in the condition of workmen was desirable,--50
per cent. appears to be a large margin, when we consider that the
price of provisions is said to be unaltered. The British workman
is proverbially extravagant and improvident. High wages encourage
extravagance, whilst surplus cash furnishes the means, and short
hours the leisure, for gratifying a taste for drink.
Setting aside for the moment the serious evils of intemperance,
we have practically, with high wages, the causes that lead to the
impoverishment of a community.
A glance at the statistics of Mr. Giffen seems to indicate this,
for whilst the consumption per head of those commodities which are
termed necessaries of life, have only increased 33 to 40 per cent.
respectively, the consumption of those which may be considered
luxuries--namely, tea and sugar--have increased 232 and 260 per
cent. respectively.
Again, statistics show that, whilst the other classes of the
community have increased in number by 335 per cent. of late years,
the working classes have only increased by 6½ per cent. In other
words, the unproductive classes have increased largely, but, whilst
there is only 6½ per cent. _numerical_ increase in the productive
classes, their labour has decreased by 20 per cent. from shorter
hours of labour.
The drones in the hive have increased very largely, and the workers
have not done so, but have developed an alarming taste for honey.
The question of waste of wealth would be comparatively of minor
importance were it not seriously complicated by the existence of
Free Trade; but we have now to confront the fact, that, in the
present day, we have to pay 50 per cent. more money for 20 per
cent. less labour than we did forty years ago; whilst Free Trade
brings into the market the products of the keen competition of a
thrifty and parsimonious class of workmen who accept lower wages
and work longer hours. The result must be a gradual extinction of
our industries:
Cotton and woollen industries are struggling hard for existence.[53]
Silk manufacture is dying out.
Iron industries in a bad way.
Gloomy predictions are made respecting the shipping trade.
Agriculture is rapidly becoming extinguished.
English pluck, capital, and credit are struggling manfully against
disaster, but the struggle cannot last much longer; capital is
sustained by credit; and credit is receiving heavy and repeated
blows from unremunerative industries. Meanwhile, high wages and
extravagant habits are not the best training for the millions that
will be thrown out of employment when the crash comes.
Your prophet, Adam Smith, though an advocate for the repeal of the
Corn Laws, foresaw and forewarned you of these consequences, as
follows:--
“If the free importation of Foreign manufactures were permitted,
several of the Home manufactures would probably suffer, and some
of them perhaps go to ruin altogether.”[54]
Verily, my Friend, you are like a shipowner who congratulates
himself that his sailors were never so well off before--never went
aloft less--never kept fewer watches--never remained so much in
their warm beds: meanwhile the devoted ship is drifting slowly, but
surely, on to the rocks.[55]
FOOTNOTES:
[52] ‘Political Economy,’ by J. S. Mill, Bk. I. Chap. V.
[53] Mr. S. Smith, M.P., who is connected with cotton industry, has
recently stated that “with all the toil and anxiety of those who
had conducted it, the cotton industry of Lancashire, which gave
maintenance to two or three millions of people, had not earned so
much as 5 per cent. during the past ten years. The employers had
a most anxious life; and many, after struggling for years, had
become bankrupt, and some had died of a broken heart;” and he added
that he believed “most of the leading trades to be in the same
condition.”
The cheap production of Belgian fabrics is stated by the employers
to be the cause of the depression in the cotton trade. (_Times_,
Dec. 1883.)
[54] ‘Wealth of Nations,’ Bk. IV. Chap. II.
[55] A writer in _Vanity Fair_, in analyzing the Board of Trade’s
statistics for the year ended March 31st, 1883, when compared with
those for the year ended March, 1880, or the three years of the
Gladstone Ministry, says:
“We were promised cheaper Government, cheaper food, greater
prosperity. We find that so far from these promises being verified,
they have every one been falsified by the result.
“Our Imperial Government is dearer by £8,000,000; our Imperial and
Local Government, together, is dearer by £10,000,000.
“As to food, wheat has become dearer 1_s._ 3_d._ per quarter; beef,
by from 3_d._ to 5_d._ per stone; Mutton, by 1_s._ 3_d._; money is
dearer than 1¾ per cent.
“As to prosperity, our staple pig iron is cheaper by 22_s._ 2_d._
per ton. We have 398,397 acres fewer under cultivation for corn,
grain and other crops; 50,077 fewer horses; 129,119 fewer cattle;
4,789,738 fewer sheep in the country. We have, in spite of the Land
Act and the allegation of increased prosperity, 18,828 more paupers
in Ireland on a decreasing population. We find that 115,092 more
emigrants have left the country in a year, because they cannot get
a living in it. We lose annually 349 more vessels and 1,534 more
lives at sea. The only element of consolation that these figures”
(Board of Trade Returns) “have to show is, that we have 778,389
more pigs and 4,627 more policemen in the country. In fact, we are
more lacking in every thing we want; more abounding in every thing
we don’t want.
“The price of everything we have to sell has gone down; the price
of everything we have to buy has gone up; and what has gone up most
is the price of Government.
“Dearer Government, dearer bread, dearer beef, dearer mutton,
dearer money; cheaper pig iron; less corn, potatoes, turnips,
grass, and hops, fewer horses, fewer cattle, fewer sheep; more
paupers, more emigrants, more losses of life and property at sea,
more pigs, more policemen.
“These are the benefits that three years of liberal rule have
conferred upon us!!!”