The Principles of Political Economy with some of t

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The Principles of Political Economy with some of t
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  Butapeoplewhohaveonceadoptedthelargesystemofproduction,eitherinmanufacturesorinagriculture,arenotlikelytorecedefromit;andwhenpopulationiskeptindueproportiontothemeansofsupport,itisnotdesirablethattheyshould。Labourisunquestionablymoreproductiveonthesystemoflargeindustrialenterprises;theproduce,ifnotgreaterabsolutely,isgreaterinproportiontothelabouremployed:thesamenumberofpersonscanbesupportedequallywellwithlesstoilandgreaterleisure;whichwillbewhollyanadvantage,assoonascivilizationandimprovementhavesofaradvanced,thatwhatisabenefittothewholeshallbeabenefittoeachindividualcomposingit。Andinthemoralaspectofthequestion,whichisstillmoreimportantthantheeconomical,somethingbettershouldbeaimedatasthegoalofindustrialimprovement,thantodispersemankindovertheearthinsinglefamilies,eachruledinternally,asfamiliesnoware,byapatriarchaldespot,andhavingscarcelyanycommunityofinterest,ornecessarymentalcommunion,withotherhumanbeings。Thedominationoftheheadofthefamilyovertheothermembers,inthisstateofthings,isabsolute;whiletheeffectonhisownmindtendstowardsconcentrationofallinterestsinthefamily,consideredasanexpansionofself,andabsorptionofallpassionsinthatofexclusivepossession,ofallcaresinthoseofpreservationandacquisition。Asastepoutofthemerelyanimalstateintothehuman,outofrecklessabandonmenttobruteinstinctsintoprudentialforesightandself—government,thismoralconditionmaybeseenwithoutdispleasure。Butifpublicspirit,generoussentiments,ortruejusticeandequalityaredesired,association,notisolation,ofinterests,istheschoolinwhichtheseexcellencesarenurtured。Theaimofimprovementshouldbenotsolelytoplacehumanbeingsinaconditioninwhichtheywillbeabletodowithoutoneanother,buttoenablethemtoworkwithorforoneanotherinrelationsnotinvolvingdependence。Hithertotherehasbeennoalternativeforthosewholivedbytheirlabour,butthatoflabouringeithereachforhimselfalone,orforamaster。Butthecivilizingandimprovinginfluencesofassociation,andtheefficiencyandeconomyofproductiononalargescale,maybeobtainedwithoutdividingtheproducersintotwopartieswithhostileinterestsandfeelings,themanywhodotheworkbeingmereservantsunderthecommandoftheonewhosuppliesthefunds,andhavingnointerestoftheirownintheenterpriseexcepttoearntheirwageswithaslittlelabouraspossible。Thespeculationsanddiscussionsofthelastfiftyyears,andtheeventsofthelastthirty,areabundantlyconclusiveonthispoint。Iftheimprovementwhicheventriumphantmilitarydespotismhasonlyretarded,notstopped,shallcontinueitscourse,therecanbelittledoubtthatthestatusofhiredlabourerswillgraduallytendtoconfineitselftothedescriptionofwork—peoplewhoselowmoralqualitiesrenderthemunfitforanythingmoreindependent:andthattherelationofmastersandwork—peoplewillbegraduallysupersededbypartnership,inoneoftwoforms:insomecases,associationofthelabourerswiththecapitalist;inothers,andperhapsfinallyinall,associationoflabourersamongthemselves。

  5。Thefirstoftheseformsofassociationhaslongbeenpractised,notindeedasarule,butasanexception。Inseveraldepartmentsofindustrytherearealreadycasesinwhicheveryonewhocontributestothework,eitherbylabourorbypecuniaryresources,hasapartner’sinterestinit,proportionaltothevalueofhiscontribution。Itisalreadyacommonpracticetoremuneratethoseinwhompeculiartrustisreposed,bymeansofapercentageontheprofits:andcasesexistinwhichtheprincipleis,withexcellentsuccess,carrieddowntotheclassofmeremanuallabourers。IntheAmericanshipstradingtoChina,ithaslongbeenthecustomforeverysailortohaveaninterestintheprofitsofthevoyage;andtothishasbeenascribedthegeneralgoodconductofthoseseamen,andtheextremerarityofanycollisionbetweenthemandthegovernmentorpeopleofthecountry。AninstanceinEngland,notsowellknownasitdeservestobe,isthatoftheCornishminers。’InCornwalltheminesareworkedstrictlyonthesystemofjointadventure;gangsofminerscontractingwiththeagent,whorepresentstheownerofthemine,toexecuteacertainportionofaveinandfittheoreformarket,atthepriceofsomuchinthepoundofthesumforwhichtheoreissold。Thesecontractsareputupatcertainregularperiods,generallyeverytwomonths,andtakenbyavoluntarypartnershipofmenaccustomedtothemine。Thissystemhasitsdisadvantages,inconsequenceoftheuncertaintyandirregularityoftheearnings,andconsequentnecessityoflivingforlongperiodsoncredit;butithasadvantageswhichmorethancounterbalancethesedrawbacks。Itproducesadegreeofintelligence,independence,andmoralelevation,whichraisetheconditionandcharacteroftheCornishminerfarabovethatofthegeneralityofthelabouringclass。WearetoldbyDrCarham,that\"theyarenotonly,asaclass,intelligentforlabourers,butmenofconsiderableknowledge\"。Also,that\"theyhaveacharacterofindependence,some。thingAmerican,thesystembywhichthecontractsareletgivingthetakersentirefreedomtomakearrangementsamongthemselves;sothateachmanfeels,asapartnerinhislittlefirm,thathemeetshisemployersonnearlyequalterms\"……Withthisbasisofintelligenceandindependenceintheircharacter,wearenotsurprisedwhenwehearthat\"averygreatnumberofminersarenowlocatedonpossessionsoftheirown,leasedforthreelivesorninety—nineyears,onwhichtheyhavebuilthouses\";orthat\"281,541l。aredepositedinsavingbanksinCornwall,ofwhichtwo—thirdsareestimatedtobelongtominers\"。’(1*)

  MrBabbage,whoalsogivesanaccountofthissystem,observesthatthepaymenttothecrewsofwhalingshipsisgovernedbyasimilarprinciple;andthat’theprofitsarisingfromfishingwithnetsonthesouthcoastofEnglandarethusdivided:one—halftheproducebelongstotheowneroftheboatandnet;theotherhalfisdividedinequalportionsbetweenthepersonsusingit,whoarealsoboundtoassistinrepairingthenetwhenrequired。’MrBabbagehasthegreatmeritofhavingpointedoutthepracticability,andtheadvantage,ofextendingtheprincipletomanufacturingindustrygenerally。(2*)

  Someattentionhasbeenexcitedbyanexperimentofthisnature,commencedabovethirtyyearsagobyaParistradesman,ahouse—painter,M。Leclaire,(3*)anddescribedbyhiminapamphletpublishedintheyear1842。M。Leclaire,accordingtohisstatement,employsonanaveragetwohundredworkmen,whomhepaysintheusualmanner,byfixedwagesorsalaries。Heassignstohimself,besidesinterestforhiscapital,afixedallowanceforhislabourandresponsibilityasmanager。Attheendoftheyear,thesurplusprofitsaredividedamongthebody,himselfincluded,intheproportionoftheirsalaries。(4*)ThereasonsbywhichM。Leclairewasledtoadoptthissystemarehighlyinstructive。Findingtheconductofhisworkmenunsatisfactory,hefirsttriedtheeffectofgivinghigherwages,andbythishemanagedtoobtainabodyofexcellentworkmen,whowouldnotquithisserviceforanyother。’Havingthussucceeded’(IquotefromanabstractofthepamphletinChambers’Journal,(5*))’inproducingsomesortofstabilityinthearrangementofhisestablishment,M。Leclaireexpected,hesays,toenjoygreaterpeaceofmind。Inthis,however,hewasdisappointed。Solongashewasabletosuperintendeverythinghimself,fromthegeneralconcernsofhisbusinessdowntoitsminutestdetails,hedidenjoyacertainsatisfaction;butfromthemomentthat,owingtotheincreaseofhisbusiness,hefoundthathecouldbenothingmorethanthecentrefromwhichorderswereissued,andtowhichreportswerebroughtin,hisformeranxietyanddiscomfortreturneduponhim。’Hespeakslightlyoftheothersourcesofanxietytowhichatradesmanissubject,butdescribesasanincessantcauseofvexationthelossesarisingfromthemisconductofworkmen。Anemployer’willfindworkmenwhoseindifferencetohisinterestsissuchthattheydonotperformtwo—thirdsoftheamountofworkwhichtheyarecapableof;hencethecontinualfrettingofmasters,who,seeingtheirinterestsneglected,believethemselvesentitledtosupposethatworkmenareconstantlyconspiringtoruinthosefromwhomtheyderivetheirlivelihood。Ifthejourneymanweresureofconstantemployment,hispositionwouldinsomerespectsbemoreenviablethanthatofthemaster,becauseheisassuredofacertainamountofday’swages,whichhewillgetwhetherheworksmuchorlittle。Herunsnorisk,andhasnoothermotivetostimulatehimtodohisbestthanhisownsenseofduty。Themaster,ontheotherhand,dependsgreatlyonchanceforhisreturns:hispositionisoneofcontinualirritationandanxiety。Thiswouldnolongerbethecasetothesameextent,iftheinterestsofthemasterandthoseoftheworkmenwereboundupwitheachother,connectedbysomebondofmutualsecurity,suchasthatwhichwouldbeobtainedbytheplanofayearlydivisionofprofits。’

  UntilthepassingoftheLimitedLiabilityAct,itwasheldthatanarrangementsimilartoM。Leclaire’swouldhavebeenimpossibleinEngland,astheworkmencouldnot,inthepreviousstateofthelaw,havebeenassociatedintheprofits,withoutbeingliableforlosses。Oneofthemanybenefitsofthatgreatlegislativeimprovementhasbeentorenderpartnershipsofthisdescriptionpossible,andwemaynowexpecttoseethemcarriedintopractice。MessrsBriggs,oftheWhitwoodandMethleycollieries,nearNormantoninYorkshire,havetakenthefirststep。Theynowworktheseminesbyacompany,two—thirdsofthecapitalofwhichtheythemselvescontinuetohold,butundertake,intheallotmentoftheremainingthird,togivethepreferencetothe’officialsandoperativesemployedintheconcern’;and,whatisofstillgreaterimportance,whenevertheannualprofitexceeds10percent,one—halftheexcessisdividedamongthework—peopleandemployes,whethershareholdersornot,inproportiontotheirearningsduringtheyear。Itishighlyhonourabletotheseimportantemployersoflabourtohaveinitiatedasystemsofullofbenefitbothtotheoperativesemployedandtothegeneralinterestofsocialimprovement:andtheyexpressnomorethanajustconfidenceintheprinciplewhentheysay,that’theadoptionofthemodeofappropriationthusrecommendedwould,itisbelieved,addsogreatanelementofsuccesstotheundertakingastoincreaseratherthandiminishthedividendtotheshareholders。’

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