On the Economy of Machinery and Manufactures

the factory would have an immediate interest in preventing any waste or mismanagement in all the departments. 3. The talents of all connected with it would be strongly directed to its improvement in every department. 4. None but workmen of high character and qualifications could obtain admission into such establishments; because when any additional hands were required, it would be the common interest of all to admit only the most respectable and skilful; and it would be far less easy to impose upon a dozen workmen than upon the single proprietor of a factory. 5. When any circumstance produced a glut in the market, more skill would be directed to diminishing the cost of production; and a portion of the time of the men might then be occupied in repairing and improving their tools, for which a reserved fund would pay, thus checking present, and at the same time facilitating future production. 6. Another advantage, of no small importance, would be the total removal of all real or imaginary causes for combinations. The workmen and the capitalist would so shade into each other— would so evidently have a common interest, and their difficulties and distresses would be mutually so well understood that, instead of combining to oppress one another, the only combination which could exist would be a most powerful union between both parties to overcome their common difficulties. 314. One of the difficulties attending such a system is, that capitalists would at first fear to embark in it, imagining that the workmen would receive too large a share of the profits: and it is quite true that the workmen would have a larger share than at present: but, at the same time, it is presumed the effect of the whole system would be, that the total profits of the establishment being much increased, the smaller proportion allowed to capital under this system would yet be greater in actual amount, than that which results to it from the larger share in the system now existing. 315. It is possible that the present laws relating to partnerships might interfere with factories so conducted. If this interference could not be obviated by confining their purchases under the proposed system to ready money, it would be desirable to consider what changes in the law would be necessary to its existence: and this furnishes another reason for entering into the question of limited partnerships. 316. A difficulty would occur also in discharging workmen who behaved ill, or who were not competent to their work; this would arise from their having a certain interest in the reserved fund, and, perhaps, from their possessing a certain portion of the capital employed; but without entering into detail, it may be observed, that such cases might be determined on by meetings of the whole establishment; and that if the policy of the laws favoured such establishments, it would scarcely be more difficult to enforce just regulations, than it now is to enforce some which are unjust, by means of combinations either amongst the masters or the men. 317. Some approach to this system is already practised in several trades: the mode of conducting the Cornish mines has already been alluded to; the payment to the crew of whaling ships is governed by this principle; the profits arising from fishing with nets on the south coast of England are thus divided: one-half the produce belongs to the owner of the boat and net; the other half is divided in equal portions between the persons using it, who are also bound to assist in repairing the net when injured. NOTES: 1. For a detailed account of the method of working the Cornish mines, see a paper of Mr John Taylor's Transactions of the Geological Society, vol. ii, p. 309.