But economy in the consumption of coal, in the manufacture o

Transcribed from the 1873 Longmans, Green, and Co. edition by David

Price.

WAGES IN 1873.

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* * * * *

ADDRESS

READ BEFORE THE

SOCIAL SCIENCE ASSOCIATION

AT NORWICH.

* * * * *

BY

THOMAS BRASSEY, M.P.

* * * * *

LONDON:

LONGMANS, GREEN, AND CO.

1873.

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LONDON: PRINTED BY

SPOTTISWOODE AND CO., NEW-STREET SQUARE

AND PARLIAMENT STREET

WAGES IN 1873.

Rise in Wages.

IN the following Address I shall devote myself to the task of reviewing,

I hope in an impartial spirit, the most recent phases of the labour

movement. The great advance of wages is a conspicuous feature of modern

English industry, and is obviously due to the rapid growth of the general

trade of the country. The long depression following on the panic of 1866

has been succeeded by a period of unprecedented activity in every branch

of our export trade. The demands upon the labour-market have far

exceeded the supply; and the artisan and labourer have not been slow to

take advantage of a situation which afforded to them a brilliant

opportunity. Between 1866 and 1869 the value of the exports of the

produce and manufactures of the United Kingdom had remained stationary;

while it rose from £190,000,000 in 1869, to £256,257,000 in 1872. Such a

leap was not possible without imposing a strain upon the powers of our

labouring population, which must inevitably have led to a material

alteration in the rate of wages.

Not attributable to strikes.

It is too often alleged that the recent advance of wages is attributable

to a series of successful strikes. I maintain, on the contrary, that a

strike against a falling market is never successful, and that Trades

Unions, as an organisation for the purpose of raising wages, can never do

more than assist the workman to obtain an advance at a somewhat earlier

date than that at which the competition among employers would have

brought about the same result. I may quote the unfortunate strike in

South Wales, at the commencement of this year, as a signal instance of

the inability of Trades Unions to cope with the superior resources of

employers when firmly united together.

The recent strike in South Wales.

It may be worth while briefly to recapitulate the most important

incidents of the South Wales strike. In June 1872, the miners had

proposed to apply for an advance of 20 per cent. on their wages. They

were, however, advised by the executive council of their Union to limit

their demand to an advance of 10 per cent. The advance was granted, and

three months later the men asked for an additional 10 per cent. Their

application was refused, and shortly afterwards the masters gave notice

of a 10 per cent. reduction. The men thereupon desired that their case

should be referred to arbitration. This request was refused by the

masters, who were so fully convinced of the strength of their own case,

that they offered to submit their books for the inspection of the

workmen. The miners were unwilling to avail themselves of this offer;

and, encouraged by large promises of support from Mr. Halliday and Mr.

Pickard, they went out on strike.

Without venturing to apportion to either of the contending interests

their share of responsibility, it is clear that the ironmasters were

alone in a position to know whether their business was sufficiently

remunerative to make it possible to dispense with a reduction of wages;

and it was stated by Mr. Crawshay that he had taken a contract for 2,000

tons of rails at £9. 2_s._ 5_d._ per ton nett, and that he lost money by

selling rails at that price. Mr. Crawshay expressed an opinion, founded

on the statements made by his workmen in daily interviews, that, but for

the interference of the Union, they would have been satisfied with the

explanations which he had given them, and returned to their work. In

short, it became a point of honour with the masters to prove to their

workmen that they were able, when acting in concert, to fight a

successful campaign against the united forces of the Miners’ Union.

The miners, on the other hand, were in the embarrassing position in which

workmen are always placed whenever they are engaged in similar disputes.

They had to struggle in the dark, and had no means of correctly

estimating the profits of their employers. The responsibility of the

Executive Council of the Miners’ Union, during the labour crisis in South

Wales, was immense. Although the miners connected with the Union were

only 10,000 in number, by their cessation of labour 50,000 of their

fellow-workmen, engaged in various branches of the iron trade, were kept

out of work. The ‘strike pay’ distributed by the Colliers’ Union

amounted to a total of £40,000, a sum quite insignificant, by comparison

with the amount of £800,000, which the men would have earned, had they

continued at work; and yet the burden of sustaining a vast population

proved eventually insupportable. In point of fact, the men were only

enabled to continue the struggle by the assistance of the tradesmen of

the district; and when, at length, the latter found themselves unable to

continue the supply of the necessaries of life on credit, surrender was

inevitable.

The reaction against the International Society among the working classes

in Belgium originated in a similar cause. In 1871, during the strike in

Flanders, the International was unable to fulfil its promises of support,

and it has consequently lost credit with the operatives, many of whom, as

we are informed by Mr. Kennedy, have withdrawn from the Society. It was

the same with the miners at Waldenburg, in Silesia, where 6,000 men went

out on strike. After all their savings had been exhausted, they received

a grandiloquent despatch from the Central Council at Berlin, urging them

to emigrate _en masse_. A few obeyed the advice. The majority who

remained were compelled to surrender, being consoled by the assurance

that the most valiant armies must sometimes yield to superior numbers,

and that they had won for themselves the admiration of Germany.

Almost to the last the originators of the strike in South Wales opposed

the generally felt desire to return to work. Never, perhaps, was the

magical power of eloquence over an imperfectly educated audience more

conspicuously displayed than at the meetings held by the workmen towards

the close of the South Wales strike. Men, who had gathered together, for

the express purpose of negotiating a peace with their employers, were

turned aside against their own judgments by the eloquent exaggerations of

orators, who were interested in the continuation of the struggle.

Overwhelming, indeed, is the influence of speech over the uninstructed

mind. Well may Carlyle exclaim: ‘He who well considers, will find this

same right of speech, as we moderns have it, to be a truly astonishing

product of ages; and the longer he considers it, the more astonishing and

alarming. I reckon it the saddest of all the curses that now lie heavy

on us.’

In the event, as I have said, the workmen returned to their work on the

terms, which their masters had originally proposed. Happily they had not

long to wait for an improvement of their position; and, in less than a

fortnight after the close of the strike, the workmen received an advance

of 10 per cent. on the reduced wages, which they had accepted.

Proposal of the International for an universal strike.

The defeat of the miners in South Wales offers, as I have already said,

one more illustration of the inability of workmen to force a concession

from employers possessed of abundant resources, when the state of trade

is such, that a concession cannot be made, without involving the employer

in direct pecuniary loss. We have evidence that this fact is becoming

generally recognised. The inability of Trades Unions to control the rate

of wages was frankly admitted by the members of the International Society

in their last congress, when the working men were informed that

hereafter, if they wished to secure any substantial advantages for

labour, there must be a strike _en masse_ of all the working men of every

country in the world.

In extreme cases strike may produce results beneficial to workmen.

Orderly conduct of men on strike in South Wales.

While I feel bound to assure the working man of the certain frustration

of his expectations, if he seeks to obtain from capital impossible

concessions, I am at the same time ready to acknowledge that a strike

will sometimes make an impression on employers, even in cases, in which

the demand for an increase of wages is not immediately conceded. If the

trade, in which the workmen on strike are engaged, is prosperous for the

employer; cessation of production means loss of profit. The apprehension

of a recurrence of such loss may, on a future occasion, induce

concessions; and the wage-earning classes may rest assured that, in the

long run, and without the assistance of Trades Unions and the disastrous

interruptions to their business occasioned by protracted strikes, the

competition among employers, to secure the services of workmen, will

infallibly lead to a rise of pay, proportionate to the amount of profit,

derived from the particular industry, with which they are connected. It

was a noteworthy feature in the South Wales strike, that the men never

had recourse to physical violence. I attribute their good conduct in

this regard in part to the influence of Mr. Halliday and his colleagues.

Advance in price of coal.

I now pass to the graver subject of the recent rise in the price of coal.

It will be remembered that, on the motion of Mr. Mundella, a Committee of

the House of Commons was appointed in the last Session to inquire into

this subject. After a long investigation the Committee reported, as

might have been expected, that, in their judgment, the rapid development

of the iron industry was the primary cause of the advance in the price of

coal. It appears from statistics, compiled under the direction of the

Committee, that the total production of coal in 1869 was 107,000,000

tons, of which 79,000,000 were used in manufactures. The total

production in 1871 was 117,000,000 tons, of which 85,000,000 were used in

manufactures. It will thus be seen how large a proportion of the total

quantity of coal raised is consumed in manufactures, and specially in the

manufacture of iron. In 1867, 567,000 tons of pig iron were exported,

4,193,000 tons of pig iron were converted into rolled iron, 1,317,000

tons of rolled iron were exported, and 28,331,000 tons of coal were used

in the manufacture of iron. In 1872, 1,333,000 tons of pig iron were

exported, 5,390,000 tons of pig iron were converted into rolled iron,

2,055,000 tons of rolled iron were exported, and 38,229,000 tons of coal

were consumed in the manufacture of iron.

Mr. Lothian Bell.

In the evidence, which he gave before the Committee, Mr. Lothian Bell

stated that the greatly increased demand for the manufacture of iron,

although not the sole cause, was one of the causes, of the rapid advance

in the price of coal.

In his district the iron trade gave a great stimulus to the coal trade.

‘But,’ he observed, ‘all industry throughout the country has been, and

still is, in a very flourishing condition. The manufacture of alkali in

the North, the increase of railways, the substitution of steam for

sailing vessels, all added to demands on an output not very greatly

increasing.’ It is to be observed that the rise in the price of iron

preceded the rise in the price of coal. Mr. Lothian Bell quoted figures,

from which it appeared that, in September 1871, forge pig iron was

selling for 50_s._, while coke was selling for from 10_s._ to 12_s._ a

ton. In July 1872, the forge pig iron rose to 120_s._—more than double

the price of nine months before—and coke, following the advance in iron,

rose from 37_s._ 6_d._ to 41_s._ a ton.

The Committee rightly observe, in commenting upon these figures, that,

although the disturbance in the proportion between the demand and the

supply of coal might not appear sufficient to explain fully the great

rise of prices, yet a comparatively small deficiency in the supply of an

article of paramount necessity may produce a disproportionate increase of

price, through the eagerness of buyers competing with each other, each

for his own supply.

Rise of wages in collieries.

Other reasons for the rise in the price of coal have been urged, and

among these more especially the reduction in the hours of labour, and the

great advance of wages. The advance in the wages paid to miners is in

truth extraordinary. In a large colliery, in which I have an interest, I

will give the advance in the weekly wages of some of the principal

trades. The weekly wages of hewers in 1869 were 24_s._ 5_d._; they have

risen in 1873 to 48_s._ 9_d._ The wages of timbermen in 1863 were

25_s._; in 1873 they are 53_s._ 4_d._ Haulers, in 1869, 20_s._; in 1873,

31_s._ 6_d._ Landers, in 1869, 21_s._; in 1873, 36_s._ 9_d._ Labourers

in 1869, 15_s._; in 1873, 24_s._ a week. The average wages of all the

men employed were 20_s._ 11_d._ for 1869, as compared with an average of

36_s._ 8_d._ per week in 1873.

A similar rise of wages has been established in other parts of the

country, of which I have no personal knowledge. Wages have risen, since

1870, 48 per cent. in Northumberland, and 50 per cent. in Durham. The

requirements of the Mines Regulation Act have involved an additional

expenditure, estimated by some authorities at 12½ per cent. upon the cost

of production. It was estimated by Mr. Pease that the total cost of

working, in the collieries with which he was connected, had increased 50

per cent. between 1870 and 1872. Mr. A. Macdonald, the president of the

Miners’ National Association, confirming the opinion of Mr. Pease,

estimated that the cost of getting coal in Northumberland had increased,

between 1868 and 1872–73, from 60 to 65 per cent., while the selling

price had risen 120 per cent.

Increased profits of colliery proprietors.

It might be easily made to appear that the rise of wages was the

principal cause of the advance in coal. But the case would be

imperfectly presented for examination, if the profit derived from the

working of the pits were not ascertained. The colliery, to which I have

already referred, had, for years, been worked at a serious loss—there

being no dividend for the proprietors in the years 1870 and 1871.

Indeed, the prospects were so gloomy in the latter year, that some of the

shareholders in the undertaking made over their interest to their

co-proprietors at a considerable discount. At length, however, the tide

suddenly turned, and in 1872 an ample dividend was earned; while there is

every prospect that the results of the present year may be still more

favourable.

Rise of wages has followed advance in price of coal.

My individual experience abundantly confirms the opinion expressed by the

Committee of the House of Commons, to the effect that the prices of coal,

which prevailed for years before the present rise commenced, were so low

that they did not afford a reasonable profit to the owners of collieries

in general, or such remuneration as the workmen might, with regard to the

hazardous and arduous nature of their labour, reasonably expect. The

rise in the rate of wages has not, under the exceptional circumstances,

been unreasonable; and it is certain that the real order of events has

been, first, the rise in price of iron, then a rise in the price of coal,

and lastly a rise in the rate of wages. On the other hand, great as the

profits in the coal trade have been, it is a question whether the last

two years have compensated the coal-owners for the former protracted era

of stagnation, and, in many cases, of serious loss.

In a letter addressed to _The Times_, early in the present year, in which

the case of the masters was ably argued, Mr. Laing narrated the history

of the Bleanavon Company. Owing to various causes, that concern had been

worked for several years without profit. Only within the last three

years had it become a profitable undertaking; and yet all through a long

period of adversity an amount of £3,000 to £4,000 a week was paid in

wages, at the same rate as by the most prosperous iron works; and the

capital sunk by the original proprietors was the means of creating a

town, and supporting a population of 9,000, in a secluded mountain valley

of South Wales.

Causes which will lead to a reduction in price of coal.

The present unprecedented prosperity may continue for a year or two years

at the most, but, at the end of that time, the influx of capital into the

coal trade, attracted by the present high profits, will infallibly lead

to some reduction of price. New coal pits are being sunk. Old pits are

being improved. More workmen are being trained in the business of

mining. Hence we may look with confidence to an augmentation of the

output, and to a sufficient supply for the ordinary demands of consumers.

The insufficient profits of former days cannot be attributed to the

unreasonable standard at which wages were maintained. The excessive

competition in the supply of coal was the true cause of the unfortunate

position of the trade. And as in the former period of depression, so in

the sudden and it may be short-lived prosperity of the present day, the

rates of wages must be regarded, not as a cause, but as a consequence, of

an abnormal position of affairs.

Hours of labour.

Complaints have been urged as to the effects of shortening the hours of

labour; and it is certain that if a comparison be made between the amount

raised and the total number of individuals employed, a less quantity is

raised than in former years. It must not, however, be forgotten that

high wages have attracted many untrained hands to the coal pits. It

would be presumptuous in me to express an opinion as to the precise

number of hours, which would constitute a fair working day in a coal pit.

Mr. Macdonald, who has had actual experience as a working miner, declares

that the present earnings could not be obtained with less than eight

hours of work a day, and that no man, who laboured assiduously for that

number of hours could work continuously six days a week at coal mining.

It will be the duty of those, to whom the miners are in the habit of

looking for guidance, to watch with care the course of trade. They know

that the iron manufactures of this country can only prosper, so long as

we are able to sell our iron abroad at cheaper rates than those demanded

by foreign producers.

There are some who think that a limitation of the hours of labour is in

itself an evil. I cannot share in this view. Because some may make an

unwise use of their newly acquired advantages, that is no reason for

returning to a former state of things; when, in the general depression of

trade, an undue pressure was brought to bear upon the working man. ‘No

doubt,’ says Sir Arthur Helps, ‘hard work is a great police agent. If

everybody were worked from morning till night, and then carefully locked

up, the register of crime might be greatly diminished. But what would

become of human nature? Where would be the room for growth in such a

system of things?’

The use of leisure requires education, and that education had not been

freely given to the mechanics, miners, and puddlers, of former

generations.

The double-shift system.

Among the various proposals for maintaining the production of collieries

while conceding to the individual workman the advantage of a reduction in

the number of hours of daily labour, the double-shift system of working

promises a most satisfactory result. When the memorable struggle was

commenced in Newcastle for a reduction in the number of hours, I ventured

to suggest, in an address delivered at Birkenhead, that the solution of

the difficulty, which had arisen in the engineering establishments, might

be found in employing relays of mechanics to succeed each other at the

same machine. When we have to combine human labour with machine power,

we know that it is impossible for the human machine to keep pace with

machinery of brass and iron. But why, I venture to ask, should not a

machine, which never tires, be tended by two or three artisans relieving

each other as one watch relieves another on board ship? In driving the

machinery of steamships, it has been found necessary, on long voyages, to

have three sets of engineers and firemen. Why should not the day be

divided into three periods of eight hours, or the working day be extended

to sixteen hours, two sets of men being employed? The change, arising

from the increasing use of machinery, seems to render corresponding

modifications in the application of labour essential. My friend Mr.

Elliott is pushing the system of a succession of labour in collieries

with very advantageous results to all parties concerned. Comparing a

Durham colliery, worked on the double-shift system, with a colliery in

Glamorganshire, worked by one set of miners, he ascertained that twice

the quantity of coal per day was being raised in Durham. The prejudices

of the miners in South Wales against the double-shift have presented a

serious obstacle to its introduction, but Mr. Elliott hopes that this may

eventually be overcome by the influence of Mr. Macdonald and other

representatives of the men, whose superior intelligence will enable them

to appreciate more readily the advantages of new and improved systems of

working.

Coal-cutting machines.

Among various improvements, which may tend to reduce the price of coal,

we may look with confidence to the increased use of coal-cutting

machinery as a substitute for manual labour; and to the discovery of

methods by which the consumption of fuel may be reduced. The

experiments, which have been tried with the machines invented by Captain

Beaumont, R.E., and others, have been eminently satisfactory; and these

machines are now being made in large numbers in Glasgow and Birmingham.

Waste of coal in domestic consumption.

Our domestic consumption is undoubtedly wasteful; and the inventor of an

effective improvement in the form of grate in common use will be a real

benefactor to his fellow-man. Already we have, in the cooking-stove for

yachts, the invention of Mr. Atkey, of Cowes, a highly successful

apparatus. A letter from Mr. Vale, Ex-President of the Liverpool

Architectural Society, addressed to _The Times_ in August last, describes

a cooking stove for a party of nine persons and a crew of thirteen men,

which measured only one foot four inches by one foot four inches in area,

and one foot nine inches in height, the actual fuel-space being less than

one cubic foot. The fuel required in his yacht for one day’s consumption

was forty-seven pounds of coke at twenty shillings a ton, and the cost

per head per day amounted to less than one farthing.

Captain Galton’s fireplace.

In his lecture, delivered at Bradford during the meeting of the British

Association in the present year, Mr. Siemens described Captain Galton’s

ventilating fireplace as a most valuable invention.

‘The chief novelty and merit,’ he said, ‘of Captain Galton’s fireplace

consists in providing a chamber at the back of the grate, into which air

passes directly from without, becomes moderately heated (to 84° Fah.),

and, rising in a separate flue, is injected into the room under the

ceiling with a force due to the heated ascending flue. A plenum of

pressure is thus established within the room whereby indraughts through

doors and windows are avoided, and the air is continually renewed by

passing away through the fireplace chimney as usual. Thus the

cheerfulness of an open fire, the comfort of a room filled with fresh but

moderately warmed air, and great economy of fuel, are happily combined

with unquestionable efficiency and simplicity; and yet this grate is

little used, although it has been fully described in papers communicated

by Captain Galton, and in an elaborate report made by General Morin, le

Directeur du Conservatoire des Arts et Métiers of Paris, which has also

appeared in the English language.’

Mr. Bessemer’s inventions.

But economy in the consumption of coal, in the manufacture of iron, is a

far larger question than economy, however desirable in itself, in the

consumption for domestic purposes; and, as an illustration of what may be

achieved in this direction, I will quote some extracts from a letter from

Mr. Bessemer, detailing the results, which have actually been attained

through his most valuable discoveries.

The average quantity of coal required to make a ton of pig iron is about

two tons of coal to a ton of pig; and, as pig iron forms the raw material

for the several processes of manufacturing both malleable iron and steel,

we may treat the pig simply as the raw material employed, and consider

only how much coal is required to make a ton of finished rails. About

two tons of coal are required in order to convert pig iron into iron

railway bars.

To produce one ton of steel rails by the old process of making steel in

Sheffield, a total consumption of ten tons eight cwt. of coal is

required; and the conversion of iron bars into blistered bars occupies

from 18 to 20 days.

To make Bessemer’s steel from pig iron into steel rails requires about

five cwt. of small coal, in the form of coke, to melt the pig iron in the

cupola; two cwt. to heat the converting vessel and ladle; two cwt. for

the blast engine, which converts five tons of pig iron into fluid cast

steel in twenty minutes; and, lastly, for rolling the ingots into rails,

sixteen cwt. of coal, making a total consumption of twenty-five cwt. of

coal, in producing one ton of Bessemer’s steel rails from pig iron.

Thus, common iron rails take two tons of coal; Sheffield cast steel

rails, ten tons eight cwt.; Bessemer’s steel rails, one ton five cwt.

But we must also consider other points in connection with these figures,

in order to arrive at a correct estimate of the saving of coals, effected

by the introduction of steel, as a substitute for iron.

Although the cost of Sheffield steel entirely shut it out of the market

for rails, it must be borne in mind that it was extensively used for

wheel tires, slide bars, piston rods, and other parts of locomotive

engines; and here a saving of over nine tons of coal per ton of steel has

been effected. Further, it must be borne in mind that at stations where

rails are rapidly worn, the saving by the use of steel, as a substitute

for iron, must not be simply estimated as a saving made on one ton of

each material. For instance, at the London and North-Western station, at

Crewe, the iron rails are so rapidly worn, that they require to be

reversed every four months, each rail being completely worn out in eight

months. Bessemer’s steel rails were first used at this station, and

after being in constant use for seven years, they were removed in

consequence of rebuilding the station; one side only of the rail having

been used, and this was not quite worn out. During the seven years,

therefore, that those rails were down, one ton five cwt. only of coal had

been employed in the production of each ton of rails used at this

station; whereas ten sets of iron rails would have been entirely worn out

in that period, each set consuming two tons of coals in its manufacture,

or equal to twenty tons of coals for iron rails, as against one ton five

cwt. of coals for steel rails; and these, when turned, would be equal to

another seven years’ wear on the side not used.

The above is, no doubt, an extreme case, but the same sort of thing goes

on everywhere where steel is used, though in a lesser degree. It has

indeed been admitted by competent persons, that the rapid destruction of

iron rails would have caused a complete collapse of the Metropolitan

railways by continued interference with the traffic, while removing the

worn-out rails, had not steel been employed.

It should further be borne in mind that the extra strength of steel over

iron admits of a reduction of one-third of its weight in all structures,

previously made in iron. Thus, a further saving is effected in the fuel

consumed for a given work.

The rapidity, with which Bessemer’s steel is coming into use, will be

appreciated, when it is stated that the report of the jury at the London

International Exhibition showed that the entire production of steel in

Great Britain, prior to Bessemer’s invention, amounted to 51,000 tons per

annum; while the quantity of Bessemer’s steel, made in Great Britain

during the twelve months ending June 1873, amounted to 481,000 tons, or

nearly ten times the amount of production prior to the invention. Had

this quantity of steel been made by the old Sheffield process, it would

have consumed, according to the foregoing figures, 4,401,000 tons more

coal than was actually employed in its production. Should this enormous

increase in the manufacture continue, as it at present promises to do, in

another five years, we may have treble the quantity of steel made in this

country with a corresponding saving of fuel.

Reduced consumption of coal in steamers.

In steam vessels a remarkable economy of fuel has of late been attained.

In his lecture at Bradford, Mr. Siemens said, ‘A striking illustration of

what can be accomplished in a short space of time was brought to light by

the Institute of Mechanical Engineers, over which I have at present the

honour to preside. In holding their annual general meeting in Liverpool

in 1863, they instituted a careful inquiry into the consumption of coal

by the best engines in the Atlantic steam service, and the result showed

that it fell in no case below 4½ lbs. per indicated horse-power per hour.

Last year they again assembled with the same object in view in Liverpool,

and Mr. Bramwell produced a table showing that the average consumption by

17 good examples of compound expansive engines did not exceed 2¼ lbs. per

indicated horse-power per hour. Mr. E. A. Cowper has proved a

consumption as low as 1½ lbs. per indicated horse-power per hour in a

compound marine engine, constructed by him with an intermediate

superheating vessel. Nor are we likely to stop long at this point of

comparative perfection, for in the early portion of my address I have

endeavoured to prove that theoretical perfection would only be attained

if an indicated horse-power were produced with 1/5.5 lb. of pure carbon,

or say ¼ lb. of ordinary steam coal per hour.’

Inventions of Mr. Siemens.

The furnace invented by the Messrs. Siemens is another highly successful

contrivance. In melting one ton of steel in pots, 2½ tons of coke are

ordinarily consumed. In Messrs. Siemens’ furnace, a ton of steel is

melted with 12 cwt. of small coal.

When such results as this have been secured by a few inventors, what may

we not venture to expect from the concentration of many ingenious minds

on the important problem of economising coal?

Substitution of peat for coal.

As it is, I fear, certain that coal will never fall below fifteen or

sixteen shillings a ton at the pit’s mouth, we ought not to neglect any

possible source of supply. It has been suggested that the time has come

when the peat bogs of these islands should be turned into coal and

charcoal; and I am informed that the cost of the process does not exceed

five shillings a ton. If these anticipations are verified, the drain on

our coal-pits will be materially lessened.

General prospects of the iron trade.

It remains to consider how far the apprehensions, entertained in many

quarters for the future of the British iron manufacture, are justified by

actual experience. When we look back upon the past, the growth of

British commerce cannot fail to reassure those, who are most inclined to

look doubtfully on the future of our industry. Some statistics of the

increase in the exports of iron and steel were given in a recent number

of ‘Iron,’ from which I quote the following figures. Our exports of iron

in 1840 amounted to 268,000 tons, of the value of £2,526,000. The

quantity in 1850 was 783,000 tons; in 1860, 1,442,000 tons; and in 1870,

2,716,000 tons. The value in the latter year amounted to £21,080,000.

In 1872 the quantity was 3,383,000 tons, the value of £36,000,000. We

are sometimes assured that Belgium threatens our ironmasters with serious

competition; but in Belgium the ore must be carried 100 miles or more to

be smelted. The coal-pits are worked in many cases with considerable

difficulty, and a Belgian workman does little more than half what an

Englishman can accomplish in the same space of time. Sometimes we are

told we shall lose our position in the Russian market. The Russian

Government are doing their utmost to encourage the manufacture of iron at

home; though there is little demand for pig iron in that country. Few

Russians have had any experience in puddling. Skilled mill and forge men

are scarce. Few of those obtainable have had any experience in the use

of mineral fuel, and great difficulty is experienced in consequence of

the objection of the Russians to piece-work. Lastly we are threatened

with competition from the United States. The production of pig iron in

the States may now be estimated at 2,500,000 tons, an increase of

1,000,000 tons on the production five years ago, and yet the ironmasters

of the United States, who are protected by a duty of nearly £3 a ton on

railroad iron, have hitherto been unable to supply the entire demand at

home. There cannot be a doubt as to the ultimate consequences of the

comparative exhaustion of our supplies of raw material at home; but we

may hope that the tariffs, which now throw obstacles in the way of

legitimate trade, will in time be removed, and that, as Mr. Mattieu

Williams has suggested, we may be enabled to avail ourselves of the

natural resources of America for obtaining our supplies of raw material,

just as we already derive large supplies of hematite iron ore from

Bilbao.

American competition.

At the present time, the United States, not content with their natural

advantages, impose an almost prohibitory tariff on our exportations.

There is a party in America opposed to protection, but hitherto the

superior organisation and greater determination of the manufacturers

interested in the maintenance of the tariffs has overpowered all

opposition. At the last annual meeting of the American Institute of

Mining Engineers at Philadelphia, the Honourable D. Kelley, who delivered

the opening address, asserted that, by its dereliction of duty in not

protecting the labourer of Great Britain against competition, the

Government of this country have fostered anarchy in Ireland, while the

life of the labourer in England and Scotland has been robbed of all its

joys. ‘The millions of sturdy men,’ he declared, ‘represented by

Bradlaugh, Odger, Joseph Arch, and the travelled and humane patrician,

Sir Charles Dilke, know that the world owes every man a living, and that

it is only by protection that the means of living can be secured to the

people.’ So long as such a feeling prevails, there is little hope of our

ironmasters obtaining free access to America.

The progress of the American iron works is the more creditable, because

great difficulties are experienced in obtaining a sufficient supply of

labour. Men come over from England, having had their expenses paid, on

condition of taking an engagement for a period of five years. As soon as

their bargain is performed, they generally find it impossible to resist

the attractions of an independent farm in the Far West. Their places

must be supplied by other workmen, obtained by the same costly means from

the mother country. The difficulty of obtaining skilled workmen has had

a great effect in America in stimulating the invention of labour-saving

machinery; and as scientific manufacturers, the American ironmasters can

doubtless hold their own against the world. In finished iron the

Americans have been highly successful. Bridge-work, locomotives, wheels

and tires, and machinery, are produced at prices, which may compare not

unfavourably with our own. As an illustration of American ingenuity and

enterprise, which came under my immediate notice, on the occasion of a

recent visit to the States, I may point to the Peabody Rifle Company’s

establishment at Providence, Rhode Island. During the Rebellion the

Company was fully employed in the manufacture of small arms. The

cessation of the struggle put an end to the demand for rifles; but, with

the fertility of resource which distinguishes American industry, the

manual skill of a large body of workmen especially apt in the production

of tools or machinery, composed of numerous small and interchangeable

parts, and the valuable and ingenious plant belonging to the Company, are

now employed in the production of sewing machines. Three hundred

machines are turned out every day, and the sale is constantly increasing.

The wages of the 500 operatives employed are most liberal. The monthly

pay-sheet amounts to 25,000 dollars, giving an average of 40_s._ a week

throughout the factory. The leading workmen, five or six in number, to

whom the work is let by the piece, or rather by sub-contract, earn nearly

£600 a year. The superior mechanics earn 12_s._ to 14_s._; labourers

4_s._ to 6_s._ a day. The supply of highly-skilled labour is limited,

but ordinary mechanics can always be obtained. On an average, one

skilled mechanic a day makes application for employment.

The success of the Peabody Company affords significant evidence that the

cost of production is not augmented in equal proportion to the high rates

of pay. At the time of my visit, they were negotiating a contract for

the supply of 100,000 rifles to the Roumanian Government, at the rate of

63_s._ per rifle; and they had to compete for the contract against all

the makers of Birmingham and Liège. This Company had also in prospect an

order for 200,000 rifles, from the Turkish Government. The success, with

which the Americans have reduced the cost of production by the invention

of machinery, gives us ground for caution, lest our old supremacy be

shaken by the energy and talent of the New World; while it also gives us

reason to hope that the effects of the exceptionally high rates of wages

now prevailing may be mitigated by substituting, wherever it is possible,

mechanical for manual labour.

A monopoly of the iron trade impossible.

I can only repeat once more that, in the present condition of our trade,

there is nothing to justify serious misgivings as to our power of

continuing a successful competition with foreign producers. It does not

follow that, because we have lost a monopoly of a particular branch of

trade abroad, the skill of the English workman must have deteriorated, or

the cost of production have been unduly enhanced by the rise of wages.

Foreign countries may have imported from us a particular commodity at a

former time, solely because they were entirely inexperienced in its

manufacture. When my father was executing the Rouen and Havre Railway,

he imported the rails from England, although he had to pay an import duty

at the French Custom-house, amounting to a considerably larger sum than

the selling price of the rails at home. The almost incredible difference

between the price of English and French rails at that time no longer

exists: because that special branch of industry is now as well understood

in France as in England. So, too, in the case of the employment of

English contractors for the execution of public works on the Continent.

An opportunity was offered to them in the origin of the railway system on

the Continent; because in those early days of railways there were no

native contractors, sufficiently acquainted with the art of making

railways to venture to compete with the English invaders. Their

intelligent observation of our methods of construction soon enabled the

contractors on the Continent to tender in competition with the English;

and for many years past all the railway works in France have been carried

out by Frenchmen. It does not follow that the English contractor has

lost his former skill. The true inference is, that the French, who had

been previously in a position of inferiority solely from lack of

experience, were enabled, as soon as they had gained that experience, to

execute the works required, without the assistance of foreigners.

The development of our commercial relations with France, since the

negotiation of the Treaty of Commerce, affords convincing proof of the

great capabilities of our manufacturing industry. Since 1860, the

exportation of iron, wrought and unwrought, to France has increased in

value £540,000.

Looking therefore to the present condition of our iron trade, there is

nothing to justify serious misgivings. According to the last report of

the Commissioners of Customs, the average value of the pig iron exported

in 1870 was £2. 19_s._ 2_d._ per ton; in 1871, £3. 1_s._ 8_d._; in 1872,

£5. 0_s._ 11_d._; and yet the demand for pig iron continued unchecked.

The increase in the quantity exported in 1872 over 1871 was 28 per cent.

The increase in the price ranged as high as 108 per cent.

While the export of pig iron attained to the figures I have quoted, the

total increase in the exports of iron and steel manufactures did not

exceed 6.7 per cent. Indeed the manufacture of steel actually fell off

from a value of £683,000 in 1871, to £623,000 in 1872; a result the more

remarkable as compared with the increase in pig iron, because the price

of steel had not advanced in the same proportion as the rise in pig iron.

The price of the latter article had risen, as I have said, from £3. 1_s._

8_d._ to £5. 0_s._ 11_d._ per ton; while unwrought steel had only

advanced from £30. 12_s._ 3_d._ to £32. 18_s._ 7_d._ per ton, and steel

manufactures from £52. 8_s._ 1_d._ to £55. 4_s._ 10_d._ per ton.

Hence it would appear that a demand once created for an article of the

first necessity, such as iron, is not easily checked, even by a very

marked advance of price.

It must, however, be remembered that, when the course of trade has been

changed, and consumers, alarmed by the high prices in our market, have

been taught to look for their supplies in another, the position once lost

is not easily recovered. The superiority of our artisans in skill and

industry has assisted our manufacturers to compete successfully in the

past. The same success will not be maintained in future, unless our

employers and workmen continue, as before, to use their united efforts to

reduce the cost of production.

Shipbuilding.

Perhaps no branch of industry has been more successfully prosecuted in

this country than shipbuilding; and the extensive use of iron for ships

of the largest type makes it a point of great interest to ascertain how

far the cost of building ships has been affected by the recent advance of

wages. I am informed by an eminent firm of shipbuilders, that at the

close of 1871, shortly after the reduction in the hours of labour from

fifty-nine or sixty hours a week to fifty-four, an agitation was

commenced amongst all classes of men for an advance in their rates of

wages, which has been, in some shape or other, conceded to them, to the

extent of from 7½ to 15 per cent. In reality, this was the natural

consequence of the reduction in the hours of labour; although, at the

outset the leaders of that movement professed that they had no desire to

raise the rates of wages.

The reduced hours of labour increased the cost of production of all

articles, and led to the necessity for an advance in the rates of wages.

In point of fact, the advantage of the reduction in the hours of labour

being conceded, on social and moral grounds, the necessity for some

corresponding advance in wages followed as a matter of course, and was

perhaps not unreasonable. The two causes combined have resulted in an

increased cost of production, so far as labour is concerned, of from 20

to 25 per cent. The cost of building first-class steamers and

first-class marine engines has, in consequence of the rise in wages and

materials, been increased from 30 to 40 per cent.

The actual diminution, by the nine hours’ movement, in the amount of

work, turned out with a given plant, should, in theory, be only in

proportion to the reduced number of the hours of work, or, say, about

one-tenth. It is in reality from 15 to 20 per cent.

From an eminent firm on the Clyde, I learn that on riveters’ and smiths’

piece-work there has been an increase of 20 per cent. and 10 per cent.

respectively, in the last two years; on the other hand, in fitters’

piece-work there has been a decrease of 10 per cent. The price of

first-class steamers in 1871 was about £24 per ton. At present the cost

would be from 30 to 35 per cent. higher. While the building of sailing

ships decreased in 1871 and 1872, in 1873 there has been an increase in

the number built. The building of steamers has not been so brisk in 1873

as in 1871 or 1872; a marked falling-off in orders having taken place

since the beginning of this year.

On the Thames I find that piece-work is at least 15 per cent. dearer now

than in 1869 and 1870. The operatives, employed in attending to large

self-acting machines, which require little manual labour, are only

working fifty-four hours instead of sixty hours. Again, there has been a

large increase of overtime, since the nine hours’ movement commenced.

Wages for overtime are higher than for ordinary time. An hour and a

half’s pay is given for every hour’s work, and many men refuse to work

unless a certain amount of overtime is given to them.

With these recent reports from shipbuilders it may be useful to compare

the general progress of shipbuilding in the United Kingdom, in the last

ten years. The tonnage of the ships built increased from 328,000 tons in

1867 to 475,000 tons in 1872. There has been no increase in the

registered tonnage in the interval, but the vast increase in the

proportion of steam to sailing vessels will fully explain the apparently

stationary condition of the mercantile marine, if tested solely by the

amount of tonnage. It is equally reassuring to find that, in the

estimation of foreigners best qualified to form an opinion, the extent of

our merchant navy excites profound admiration. M. Bal, director of the

Bureau Veritas, in giving evidence before the French Parliamentary

Commission of inquiry into the condition of the French Mercantile Marine,

said that to him it seemed almost incredible that England, which has only

27,000,000 inhabitants, had 6,903,000 tons of shipping, whereas all the

other maritime Powers combined had only 6,648,000 tons.

In the United States, until the quite recent, and still but partial,

revival of the trade, the decline of shipbuilding had been very

remarkable. In a country possessed of less natural resource, the

suffering, which would have been entailed on the particular industries,

would have been almost insupportable. According to Mr. Wells, 15,000 men

were employed in New York, in 1860, in building and repairing marine

steam engines. In 1870, fewer than 700 found employment in the same

branch of industry.

In France, it would seem, from the report of Mr. West, that a wooden ship

costs from £3 to £4 a ton more than a similar ship built in England or

Canada; and in regard to iron steamers, the price of wrought iron in

France for shipbuilding purposes is so much higher than in England, as to

make competition impossible.

Amid the many difficulties of the present time, English employers may

perhaps take comfort by looking abroad, where they will generally find

that the same problems, with which they have to deal, are presenting

themselves, and often in a still more aggravated form.

The engineering trade.

Passing from shipbuilding to engineering, I have ascertained that in an

establishment on the largest scale, in which the cost of production has

been minimised to the utmost, the increased cost of production in 1871

over 1870 was, for wages, 2.73 per cent., and for materials, 2.59 per

cent. Again, the increase in 1872 over 1871 was, for wages, 7.97, and

for materials, 7.94 per cent., thus showing that the most liberal

application of capital, the most ingenious machinery, and skilful

administration, had failed to compensate for the great advance in the

rate of wages.

I may also quote the following details from a report received from an

engineering establishment with which I am connected.

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