The existence of unenclosed commons and common fields had been accompanied by very poor farming, very thriftless and shiftless habits. The improvement of agriculture, the application of capital to that occupation, the disappearance of the domestic system of industry, and other changes made the enclosure of common land and the accompanying changes inevitable. None the less it was a relatively sudden and complete interference with the established character of rural life, and not only was the process accompanied with much suffering, but the form which took its place was marked by some serious disadvantages. This form was brought about through the rapid culmination of old familiar tendencies. The cla.s.ses connected with the land came to be quite clearly distinguished into three groups: the landlords, the tenant farmers, and the farm laborers. The landlord cla.s.s was a comparatively small body of n.o.bility and gentry, a few thousand persons, who owned by far the greater portion of the land of the country. Their estates were for the most part divided up into farms, to the keeping of which in productive condition they contributed the greater part of the expense, to the administration of which trained stewards applied themselves, and in the improvement of which their owners often took a keen and enlightened interest. They received high rents, possessed unlimited local influence, and were the favored governing cla.s.s of the country. The cla.s.s of farmers were men of some capital, and frequently of intelligence and enterprise, though rarely of education, who held on lease from the landlords farms of some one, two, or three or more hundred acres, paying relatively large rents, and yet by the excellence of their farming making for themselves a liberal income. The farm laborers were the residuum of the changes which have been traced in the history of landholding; a large cla.s.s living for the most part miserably in cottages grouped in villages, holding no land, and receiving day wages for working on the farms just described.

Notwithstanding the improvements in agriculture and the increase in the extent of cultivated land, England ceased within the eighteenth century to be a self-supporting country in food products. The form which the "corn laws" had taken in 1689 had been as follows: the raising of wheat was encouraged by prohibiting its importation and paying a bounty of about eightpence a bushel for its exportation so long as the prevailing price was less than six shillings a bushel.

When it was between six shillings and six shillings eightpence a bushel its importation was forbidden, but there was no bounty paid for exportation. Between the last price and ten shillings a bushel it could be imported by paying a duty of a shilling a bushel. Above the last price it could be imported free. Nevertheless, during the latter half of the eighteenth century it became evident that there was no longer a sufficient amount of wheat raised for the needs of the English people. Between 1770 and 1790 exports and imports about balanced one another, but after the latter year the imports always exceeded the exports.

This was of course due to the great increase of population and to its employment in the field of manufactures. The population in England in 1700 was about five millions, in 1750 about six millions and a half, in 1800 about nine millions, and in 1850 about eighteen millions. That is to say, its progress was slow during the first half of the eighteenth century, more rapid during the latter half, and vastly more rapid during the nineteenth century.

*61. The Laissez-faire Theory.*--A scarcely less complete change than that which had occurred in manufactures, in agriculture, and in social life as based upon these, was that which was in progress at the same time in the realm of ideas, especially as applied to questions of economic and social life. The complete acceptance of the view that it was a natural and desirable part of the work of government to regulate the economic life of the people had persisted well past the middle of the eighteenth century. But very different tendencies of thought arose in the latter part of the century. One of these was the prevailing desire for greater liberty. The word liberty was defined differently by different men, but for all alike it meant a resistance to oppression, a revulsion against interference with personal freedom of action, a disinclination to be controlled any more than absolutely necessary, a belief that men had a right to be left free to do as they chose, so far as such freedom was practicable.

As applied to economic interests this liberty meant freedom for each person to make his living in the way he might see fit, and without any external restriction. Adam Smith says: "The patrimony of a poor man lies in the strength and dexterity of his hands; and to hinder him from employing this strength and dexterity in what manner he thinks proper, without injury to his neighbor, is a plain violation of this most sacred property. It is a manifest encroachment upon the just liberty both of the workman and of those who might be disposed to employ him. As it hinders the one from working at what he thinks proper, so it hinders the other from employing whom they think proper." Government regulation, therefore, in as far as it restricted men's freedom of action in working, employing, buying, selling, etc., was an interference with their natural liberty.

A second influence in the same direction was the prevalent belief that most of the evils that existed in society were due to the mistakes of civilization, that if men could get back to a "state of nature" and start again, things might be much better. It was felt that there was too much artificiality, too much interference with natural development. Arthur Young condemned the prevailing policy of government, "because it consists of prohibiting the natural course of things. All restrictive forcible measures in domestic policy are bad."

Regulation was unwise because it forced men's actions into artificial lines when it would have been much better to let them follow natural lines. Therefore it was felt not only that men had a right to carry on their economic affairs as they chose, but that it was wise to allow them to do so, because interference or regulation had been tried and found wanting. It had produced evil rather than good.

A third and by far the most important intellectual influence which tended toward the destruction of the system of regulation was the development of a consistent body of economic teaching, which claimed to have discovered natural laws showing the futility and injuriousness of any such attempts. Adam Smith's _Wealth of Nations_ was published in 1776, the year of the invention of Crompton's mule, and in the decade when enclosures were more rapid than at any other time, except in the middle years of the Napoleonic wars. This was, therefore, one of the earliest, as it was far the most influential, of a series of books which represent the changes in ideas correlative to the changes in actual life already described. It has been described as having for its main object "to demonstrate that the most effectual plan for advancing a people to greatness is to maintain that order of things which nature has pointed out, by allowing every man, as long as he observes the rules of justice, to pursue his own interests in his own way, and to bring both his industry and his capital into the freest compet.i.tion with those of his fellow-citizens." But the most distinct influence exercised by the writings of Adam Smith and his successors was not so much in pointing out that it was unjust or unwise to interfere with men's natural liberty in the pursuit of their interests, as in showing, as it was believed, that there were natural laws which made all interference incapable of reaching the ends it aimed at. A series of works were published in the latter years of the eighteenth and the early years of the nineteenth century by Malthus, Ricardo, Macculloch, James Mill, and others, in which principles were enunciated and laws formulated which were believed to explain why all interference with free compet.i.tion was useless or worse. Not only was the whole subject of economic relations clarified, much that had been regarded as wise brought into doubt, and much that had been only doubted shown to be absurd, but the attainment of many objects previously sought for was, apparently, shown to be impossible, and to lie outside of the realm of human control.

It was pointed out, for instance, that because of the limited amount of capital in existence at any one time, "a demand for commodities is not a demand for labor;" and therefore a law like that which required burial in a woollen shroud did not give added occupation to the people, but only diverted them from one occupation to another. Ricardo developed a law of wages to the effect that they always tend to the amount "necessary to enable the laborer to subsist, and to perpetuate his race without either increase or diminution," and that any artificial raising or lowering of wages is impossible, or else causes an increase or diminution in their number which, through compet.i.tion, soon brings back the old rate. Rent was also explained by Ricardo as arising from the differences of quality between different pieces of land, and as measured by the difference in the productivity of the land under consideration and that of the poorest land under cultivation at the time; and therefore being in its amount independent of direct human control. The Malthusian law of population showed that population tended to increase in a geometrical ratio, subsistence for the population, on the other hand, only in an arithmetical ratio, and that poverty was, therefore, the natural and inevitable result in old countries of a pressure of population on subsistence. The sanction of science was thus given alike to the desires of the lovers of freedom and to the regrets of those who deplored man's departure from the state of nature.

All these intellectual tendencies and reasonings of the later eighteenth century, therefore, combined to discredit the minute regulation of economic society, which had been the traditional policy of the immediately preceding centuries. The movement of thought was definitely opposed to the continuance or extension of the supervision of the government over matters of labor, wages, hours, industry, commerce, agriculture, or other phenomena of production, distribution, exchange, or consumption. This set of opinions is known as the _laissez-faire_ theory of the functions of government, the view that the duties of government should be reduced to the smallest possible number, and that it should keep out of the economic sphere altogether.

Adam Smith would have restricted the functions of government to three: to protect the nation from the attacks of other nations, to protect each person in the nation from the injustice or violence of other individuals, and to carry on certain educational or similar inst.i.tutions which were of general utility, but not to any one's private interest. Many of his successors would have cut off the last duty altogether.

*62. Cessation of Government Regulation*--These theoretical opinions came to be more and more widely held, more and more influential over the most thoughtful of English statesmen and other men of prominence, until within the first half of the nineteenth century it may be said that their acceptance was general and their influence dominant. They fell in with the actual tendencies of the times, and as a result of the natural breaking down of old conditions, the rise of new, and the general acceptance of this att.i.tude of _laissez-faire_, a rapid and general decay of the system of government regulation took place.

The old regulation had never been so complete in reality as it was on the statute book, and much of it had died out of itself. Some of the provisions of the Statute of Apprentices were persistently disregarded, and when appeals were made for its application to farm work in the latter part of the eighteenth century Parliament refused to enforce it, as they did in the case of discharged soldiers in 1726 and of certain dyers in 1777. The a.s.size of bread was very irregularly enforced, and that of other victuals had been given up altogether.

Many commercial companies were growing up without regulation by government, and in the world of finance the hand of government was very light. The new manufactures and the new agriculture grew up to a large extent apart from government control or influence; while the forms to which the old regulation did apply were dying out. In the new factory industry practically the whole body of the employees were without the qualifications required by the Statute of Apprentices, as well as many of the hand-loom weavers who were drawn into the industry by the abundance and cheapness of machine-spun thread. In the early years of the nineteenth century a strenuous effort was made by the older weavers to have the law enforced against them. The whole matter was investigated by Parliament, but instead of enforcing the old law they modified it by acts pa.s.sed in 1803 and 1809, so as to allow of greater liberty. The old prohibition of using fulling mills pa.s.sed in 1553 was also repealed in 1809. The Statute of Apprentices after being weakened piecemeal as just mentioned, and by a further amendment removing the wages clauses in 1813, and after being referred to by Lord Mansfield as "against the natural rights and contrary to the common law rights of the land," was finally removed from the statute book in 1814. Even the "Combination Acts," which had forbidden laborers to unite to settle wages and hours, were repealed in 1824.

Similar changes took place in other fields than those of the relations between employers and employees. The leading characteristics of legislation on questions of commerce, manufactures, and agriculture during the last quarter of the eighteenth century and the first half of the nineteenth consist in the fact that it almost wholly tended toward freedom from government control. The proportions in which the influence of the natural breaking down of an outgrown system, of the new conditions which were arising, and of pure theory were combined cannot of course be distinguished. All were present. Besides this there is always a large number of persons in the community who would be primarily benefited by a change, and who therefore take the initiative or exercise a special pressure in favor of it.

The Navigation Acts began to go to pieces in 1796, when the old rule restricting importations from America, Asia, and Africa to British vessels was withdrawn in favor of the United States; in 1811 the same permission to send goods to England in other than British vessels was given to Brazil, and in 1822 to the Spanish-American countries. The whole subject was investigated by a Parliamentary Commission in 1820, at the request of the London Chamber of Commerce, and a policy of withdrawal from control determined upon. In 1823 a measure was pa.s.sed by which the crown was empowered to form reciprocity treaties with any other country so far as shipping was concerned, and agreements were immediately entered into with Prussia, Denmark, Hamburg, Sweden, and within the next twenty years with most other important countries. The old laws of 1660 were repealed in 1826, and a freer system subst.i.tuted, while in 1849 the Navigation Acts were abolished altogether. In the meantime the monopoly of the old regulated companies was being withdrawn, the India trade being thrown open in 1813 and given up entirely by the Company in 1833. Gradually the commerce of England and of all the English colonies was opened equally to the vessels of all nations.

A beginning of removal of the import and export duties, which had been laid for the purpose of encouraging or discouraging or otherwise influencing certain lines of production or trade, was made in a commercial treaty entered into by Pitt with France in 1786. The work was seriously taken up again in 1824 and 1825 by Mr. Huskisson, and in 1842 by Sir Robert Peel. In 1845 the duty was removed from four hundred and thirty articles, partly raw materials, partly manufactures. But the most serious struggle in the movement for free trade was that for the repeal of the corn laws. A new law had been pa.s.sed at the close of the Napoleonic wars in 1815, by which the importation of wheat was forbidden so long as the prevailing price was not above ten shillings a bushel. This was in pursuance of the old traditional policy of encouraging the production of grain in order that England might be at least partially self-supporting, and was further justified on the ground that the landowners paid the great bulk of the taxes, which they could not do if the price of grain were allowed to be brought down by foreign compet.i.tion. Nevertheless an active propaganda for the abolition of this law was begun by the formation of the "Anti-Corn Law League," in 1839. Richard Cobden became the president and the most famous representative of this society, which carried on an active agitation for some years. The chief interest in the abolition of the law would necessarily be taken by the manufacturing employers, the wages of whose employees could thus be made lower and more constant, but there were abundant other arguments against the laws, and their abandonment was entirely in conformity with the spirit of the age. At the close of 1845, therefore, Peel proposed their repeal, the matter was brought up in Parliament in the early months of 1846, and a sliding scale was adopted by which a slight temporary protection should continue until 1849, when any protective tariff on wheat was to cease altogether, though a nominal duty of about one and a half pence a bushel was still to be collected. This is known as the "adoption of free trade."

It remains to be noted in this connection that "free trade in land"

was an expression often used during the same period, and consisted in an effort marked by a long series of acts of Parliament and regulations of the courts to simplify the t.i.tle to land, the processes of buying and selling it, and in other ways making its use and disposal as simple and uncontrolled by external regulation as was commerce or any form of industry.

Thus the structure of regulation of industry, which had been built up in the sixteenth and seventeenth centuries, or which had survived from the Middle Ages, was now torn down; the use of the powers of government to make men carry on their economic life in a certain way, to buy and sell, labor and hire, manufacture and cultivate, export and import, only in such ways as were thought to be best for the nation, seemed to be entirely abandoned. The _laissez-faire_ view of government was to all appearances becoming entirely dominant.

*63. Individualism.*--But the prevailing tendencies of thought and the economic teaching of the period were not merely negative and opposed to government regulation; they contained a positive element also. If there was to be no external control, what incentive would actuate men in their industrial existence? What force would hold economic society together? The answer was a plain one. Enlightened self-interest was the incentive, universal free compet.i.tion was the force. James Anderson, in his _Political Economy_, published in 1801, says, "Private interest is the great source of public good, which, though operating unseen, never ceases one moment to act with unabating power, if it be not perverted by the futile regulations of some short-sighted politician." Again, Malthus, in his _Essay on Population_, in 1817, says: "By making the pa.s.sion of self-love beyond comparison stronger than the pa.s.sion of benevolence, the more ignorant are led to pursue the general happiness, an end which they would have totally failed to attain if the moving principle of their conduct had been benevolence.

Benevolence, indeed, as the great and constant source of action, would require the most perfect knowledge of causes and effects, and therefore can only be the attribute of the Deity. In a being so short-sighted as man it would lead to the grossest errors, and soon transform the fair and cultivated soil of human society into a dreary scene of want and confusion."

In other words, a natural and sufficient economic force was always tending to act and to produce the best results, except in as far as it was interfered with by external regulation. If a man wishes to earn wages, to receive payment, he must observe what work another man wants done, or what goods another man desires, and offer to do that work or furnish those goods, so that the other man may be willing to remunerate him. In this way both obtain what they want, and if all others are similarly occupied all wants will be satisfied so far as practicable. But men must be entirely free to act as they think best, to choose what and when and how they will produce. The best results will be obtained where the greatest freedom exists, where men may compete with one another freed from all trammels, at liberty to pay or ask such wages, to demand or offer such prices, to accept or reject such goods, as they wish or can agree upon. If everybody else is equally free the man who offers the best to his neighbor will be preferred. Effort will thus be stimulated, self-reliance encouraged, production increased, improvement attained, and economy guaranteed.

Nor should there be any special favor or encouragement given by government or by any other bodies to any special individuals or cla.s.ses of persons or kinds of industry, for in this way capital and labor will be diverted from the direction which they would naturally take, and the self-reliance and energy of such favored persons diminished.

Therefore complete individualism, universal freedom of compet.i.tion, was the ideal of the age, as far as there is ever any universal ideal.

There certainly was a general belief among the greater number of the intelligent and influential cla.s.ses, that when each person was freely seeking his own best interest he was doing the best for himself and for all. Economic society was conceived of as a number of freely competing units held in equilibrium by the force of compet.i.tion, much as the material universe is held together by the attraction of gravitation. Any hindrance to this freedom of the individual to compete freely with all others, any artificial support or encouragement that gives him an advantage over others, is against his own real interest and that of society.

This ideal was necessarily as much opposed to voluntary combinations, and to restrictions imposed by custom or agreement, as it was to government regulation. Individualism is much more than a mere _laissez-faire_ policy of government. It believes that every man should remain and be allowed to remain free, unrestricted, undirected, una.s.sisted, so that he may be in a position at any time to direct his labor, ability, capital, enterprise, in any direction that may seem to him most desirable, and may be induced to put forth his best efforts to attain success. The arguments on which it was based were drawn from the domain of men's natural right to economic as to other freedom; from experience, by which it was believed that all regulation had proved to be injurious; and from economic doctrine, which was believed to have discovered natural laws that proved the necessary result of interference to be evil, or at best futile.

The changes of the time were favorable to this ideal. Men had never been so free from external control by government or any other power.

The completion of the process of enclosure left every agriculturist at liberty to plant and raise what he chose, and when and how he chose.

The reform of the poor law in 1834 abolished the act of settlement of 1662, by which the authorities of each parish had the power to remove to the place from which they came any laborers who entered it, and so far as the law was concerned, farm laborers were now free to come and go where they chose to seek for work. In the new factories, systems of transportation, and other large establishments that were taking the places of small ones, employees were at liberty to leave their engagements at any time they chose, to go to another employer or another occupation; and the employer had the same liberty of discharging at a moment's notice. Manufacturers were at liberty to make anything they chose, and hire laborers in whatever proportion they chose. And just as early modern regulation had been given up, so the few fragments of mediaeval restrictive inst.i.tutions that had survived the intervening centuries were now rapidly abandoned in the stress of compet.i.tive society. Later forms of restriction, such as trade unions and trusts, had not yet grown up. Actual conditions and the theoretical statement of what was desirable approximated to one another more nearly than they usually have in the world's history.

*64. Social Conditions at the Beginning of the Nineteenth Century.*--Yet somehow the results were disappointing. More and better manufactured goods were produced and foreign goods sold, and at vastly lower prices. The same result would probably have been true in agriculture had not the corn laws long prevented this consummation, and instead distributed the surplus to paupers and the holders of government bonds through the medium of taxes. There was no doubt of English wealth and progress. England held the primacy of the world in commerce, in manufactures, in agriculture. Her rapid increase in wealth had enabled her to bear the burden, not only of her own part in the Napoleonic wars, but of much of the expense of the armament of the continental countries. Population also was increasing more rapidly than ever before. She stood before the world as the most prominent and successful modern nation in all material respects. Yet a closer examination into her internal condition shows much that was deeply unsatisfactory. The period of transition from the domestic to the factory system of industry and from the older to the new farming conditions was one of almost unrelieved misery to great ma.s.ses of those who were wedded to the old ways, who had neither the capital, the enterprise, nor the physical nor mental adaptability to attach themselves to the new. The hand-loom weavers kept up a hopeless struggle in the garrets and cellars of the factory towns, while their wages were sinking lower and lower till finally the whole generation died out. The small farmers who lost the support of spinning and other by-industries succ.u.mbed in the compet.i.tion with the larger producers.

The cottagers whose commons were lost to them by enclosures frequently failed to find a niche for themselves in their own part of the country, and became paupers or vagabonds. Many of the same sad incidents which marked the sixteenth century were characteristic of this period of a.n.a.logous change, when ultimate improvement was being bought at the price of much immediate misery.

[Ill.u.s.tration: Carding, Drawing, and Roving in 1835. (Baines: _History of Cotton Manufacture_.)]

Even among those who were supposed to have reaped the advantages of the changes of the time many unpleasant phenomena appeared. The farm laborers were not worse, perhaps were better off on the average, in the matter of wages, than those of the previous generation, but they were more completely separated from the land than they had ever been before, more completely deprived of those wholesome influences which come from the use of even a small portion of land, and of the incitement to thrift that comes from the possibility of rising. Few cla.s.ses of people have ever been more utterly without enjoyment or prospects than the modern English farm laborers. And one cla.s.s, the yeomen, somewhat higher in position and certainly in opportunities, had disappeared entirely, recruited into the cla.s.s of mere laborers.

In the early factories, women and children were employed more extensively and more persistently than in earlier forms of industry.

Their labor was in greater demand than that of men. In 1839, of 31,632 employees in worsted mills, 18,416, or considerably more than half, were under eighteen years of age, and of the 13,216 adults, 10,192 were women, leaving only 3024 adult men among more than 30,000 laborers. In 1832, in a certain flax spinning mill near Leeds, where about 1200 employees were engaged, 829 were below eighteen, only 390 above; and in the flax spinning industry generally, in 1835, only about one-third were adults, and only about one-third of these were men. In the still earlier years of the factory system the proportion of women and children was even greater, though reliable general statistics are not available. The cheaper wages, the easier control, and the smaller size of women and children, now that actual physical power was not required, made them more desirable to employers, and in many families the men clung to hand work while the women and children went into the factories.

The early mills were small, hot, damp, dusty, and unhealthy. They were not more so perhaps than the cottages where domestic industry had been carried on; but now the hours were more regular, continuous, and prolonged in which men, women, and children were subjected to such labor. All had to conform alike to the regular hours, and these were in the early days excessive. Twelve, thirteen, and even fourteen hours a day were not unusual. Regular hours of work, when they are moderate in length, and a systematized life, when it is not all labor, are probably wholesome, physically and morally; but when the summons to cease from work and that to begin it again are separated by such a short interval, the factory bell or whistle represents mere tyranny.

Wages were sometimes higher than under the old conditions, but they were even more irregular. Greater ups and downs occurred. Periods of very active production and of restriction of production alternated more decidedly than before, and introduced more irregularity into industry for both employers and employees. The town laborer engaged in a large establishment was, like the rural laborer on a large farm, completely separated from the land, from capital, from any active connection with the administration of industry, from any probable opportunity of rising out of the laboring cla.s.s. His prospects were, therefore, as limited as his position was laborious and precarious.

The rapid growth of the manufacturing towns, especially in the north, drawing the scattered population of other parts of the country into their narrow limits, caused a general breakdown in the old arrangements for providing water, drainage, and fresh air; and made rents high, and consequently living in crowded rooms necessary. The factory towns in the early part of the century were filthy, crowded, and demoralizing, compared alike with their earlier and their present condition.

[Ill.u.s.tration: Cotton Factories in Manchester. (Baines: _History of Cotton Manufacture_.)]

In the higher grades of economic society the advantages of the recent changes were more distinct, the disadvantages less so. The rise of capital and business enterprise into greater importance, and the extension of the field of compet.i.tion, gave greater opportunity to employing farmers, merchants, and manufacturers, as well as to the capitalists pure and simple. But even for them the keenness of compet.i.tion and the exigencies of providing for the varying conditions of distant markets made the struggle for success a harder one, and many failed in it.

In many ways therefore it might seem that the great material advances which had been made, the removal of artificial restrictions, the increase of liberty of action, the extension of the field of compet.i.tion, the more enlightened opinions on economic and social relations, had failed to increase human happiness appreciably; indeed, for a time had made the condition of the ma.s.s of the people worse instead of better.

It will not, therefore, be unexpected if some other lines of economic and social development, especially those which have become more and more prominent during the later progress of the nineteenth century, prove to be quite different in direction from those that have been studied in this chapter.

*65. BIBLIOGRAPHY*

Toynbee, Arnold: _The Industrial Revolution of the Eighteenth Century in England_.

Lecky, W. E. H.: _History of England in the Eighteenth Century_, Vol.

VI, Chap. 23.

Baines, E.: _History of the Cotton Manufacture in Great Britain_.

Cooke-Taylor, R. W.: _The Modern Factory System_.

Levi, L.: _History of British Commerce and of the Economic Progress of the British Nation_.

Prothero, R. E.: _The Pioneers and Progress of English Farming_.

Rogers, J. E. T.: _Industrial and Commercial History_.

Smith, Adam: _An Inquiry into the Nature and Causes of the Wealth of Nations_.