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small capitals, the large capitalists possess undue advantages, which they never will be parties to deprive themselves of, and without their aid such a scheme would be utterly futile. is true that amongst them there are as benevolent men as in any class of the community, and men who would do a kindness to the needy and deserving; but as a matter of business and worldly prudence it is not to be expected that they should be active in depreciating the value of their own property, or depriving themselves of power. In those cases in which the workmen should be at liberty to invest their savings in the business conducted by a managing capitalist, the great difficulty of ascertaining the proportion in which the profits were to be divided would be entirely avoided, as the proportion of each individual investing would be that which the sum invested by him bore to the entire capital employed. We agree fully, that this is by far the most desirable, as well as the most feasible of the several modes of co-operation suggested, and a short bill enacting that no stipulation for a payment to workmen of a share of profits, either as wages or in the shape of interest on the money invested by them in a concern, should entitle them to the interest and remedies of partners, but that all differences between them and their employers should be settled in the mode which might be agreed upon by deed to be subscribed by the parties, would enable such associations to be formed. As we have already stated, the test of experience in other countries, especially in America, has proved such co-operations to have had the most gratifying results. It is sufficient to refer to the well-known mills at Lowell, in the United States, and the condition of the workpeople there.

:

The carrying on of manufactures by working people with borrowed capital, which is in our opinion open to the same objection as that of the association of the working people with their own funds-viz. that in large manufactures for the conduct of the business, there is such an experience, such business abilities, such rapidity of action, such foresight and decision necessary to carry it on, and compete successfully with other manufacturers, as could not be hoped for either from a managing body of the working men, or the individual they would be likely to select. This mode has been tried in Paris and proved almost a complete failure. At page 121, Mr. Morrison gives the following extract from the Constitutionnel, of August 21st, 1852:

"The sum voted by the Assembly was 3,000,000 francs, but was afterwards reduced to 2,950 francs. The number of associations among which this was divided was 56, of which 30 were in Paris, and 26 in the departments. Out of the 30 in Paris, 27 were contracted between workmen only, and 3 between masters and workmen; while in the departments 15 were between masters and workmen, and 11 between workmen only. It is therefore among

associations of workmen only, that the plan has been for the most part tried. The 30 Parisian associations comprised 434 members. Out of this number, 194 were formed into 6 associations, which received 178,000 francs, while the 240 others formed 24 associations, which received 612,000 francs; these sums represented 922 francs per head in the former case, and 2,250 francs in the latter. There was one association, that of shawl manufacturers, which had only 18 members, which received 200,000 francs, or at the rate of 10,000 francs each. Out of the 26 associations in the departments, the 15 which were between workmen and masters, absorbed on an average 80,000 francs each, the 11 associations between workmen, received 48,000 francs, of which 300,000 francs were granted to 2, composed of silkweavers, at Lyons. What is now the situation of these 56 associations, to which such advantageous conditions were granted, from whom, only 3 per cent. was demanded, when the loans did not exceed 25,000 francs, and 5 per cent. when they were more considerable, who were only subjected to an annual reimbursement drawn over a period of, on an average 20 years, and managed in such a manner as to bear only very lightly on the first years of the undertaking?

Some have swallowed up their capital without producing any useful work: others have succeeded in selling some goods, but in such small quantities that the general expenses have not been lowered, and in both cases the affair has been a failure. Others it is true present inventories where the profits and losses about balance, and even where a slight profit is shewn, but unfortunately, there are many illusions in the calculations. What proves besides that all these associations are not prosperous, is that very few among them enjoy any private or personal credit. Towards the middle of 1851,

18 establishments which had received 589,000 francs, had ceased to exist, viz.:-10 in Paris, representing 142,000 francs and in the provinces representing 447,000 francs. Thus after a first campaign, 18 establishments of 56 were already hors de combat; since that period 12 fresh revocations of loans have been made, amounting to 365,000 francs; 8 in Paris, for a sum of 202,000 francs; and 4 in the departments for 163,000 francs. Thus 30 establishments are in a state of dissolution."

On the other hand, we have a favorable account of the working of such an association in London; an association, however, rather for the purposes of a retail trade, than of a manufacture, and, therefore, not needing those requirements for its conduct, that more extensive establishments would demand. In the early part of the year 1850, an association of benevolent persons subscribed a sum of £300, to enable a

number of journeymen tailors to work on their own account, and thus assist to relieve the distress of that class of artizans, who were then suffering considerably from their labor market being overstocked. The manager of the institution was examined before the Committee of the House of Commons, which sat in 1850, for the purpose of inquiring into the subject of investments for the working classes, and gave the fol lowing favorable account of the progress of the association:

"580, Chairman.] You are an association of a number of working tailors, are you not? There are at present 34 of us; when we commenced there were but 12, about three months ago. It will be recollected that those letters which appeared in the Morning Chronicle on labour and the poor, created a very great impression on the public mind; and a number of gentlemen, well-disposed towards the working classes, met with a few working men, and the question was asked, what can be done not only to rescue the working classes, but to shew them what they can do themselves, by unity and sobriety?' And believing that the principle of association was a sound one, a house was taken, a committee was formed, and a certain amount of capital was guaranteed for the use of the association, £300, that was all the capital. We issued an address to the public; the public responded to that appeal, and we had a number of friends who were our first customers, and gradually we got beyond the circle of our friends. We have got a great portion of the public, and the working men of different trades come to us in large numbers. Though we have been only three months at work, at the end of that time we found that we had a clear profit of £77 after paying all expenses, and paying the workmen good wages. That £77 we divided into thirds, one third went towards paying off the capital we had borrowed, the second third to the increase of the stock, and the next third was divided among the workmen at the end of three months. The difficulty we feel, however, is this, that money was lent to me, and I am the party responsible, I gave a bill of sale and I am the responsible party. The workmen are not responsible, they might break the laws, and there is no legal power that could hinder them, that is as we understand it at present. They say we are quite willing to work together; we are willing to invest our savings to strengthen the association, and to assist other associations, but we think that working men ought to have a security when they have done, so that one bad man or some bad men shall not take the advantage which the law now offers to rob them of their savings.

581. You want a mode which shall prevent any of those who may turn out from taking the property of the association as partners, and shall make them amenable to the law? Yes.

582. You want also to have the power of enforcing those rules which you may form among yourselves, for the purpose of carrying out your association? Yes, if we had the protection of the law, so far as to prevent a bad man from robbing the association; I really think that is the great difficulty.

585. That advance may be considered to have been in the spirit of kindness, and from a desire to serve the working classes rather than as an investment of their money? Yes, but there would be investments if there were security. It is only this week that some of our men came to me and said, 'here is a sovereign we will pay towards the capital, and towards and for the association.' One young man who had saved £15, brought it and he said, I have confidence in the association, I will trust them with the £15;' and there are hundreds of working men who would do the same, but we cannot give them security. It is notorious that the savings' banks are not

secure."*

The conclusion which we should therefore draw from the above apparently conflicting statements are, that for the purposes of extensive manufacture and wholesale trade, associations of the working men would be, if not utterly unfitted, yet under a very great disadvantage in competing with firms conducted by shrewd, active, intelligent, and experienced men of business: but, that as far as regards retail trades, which do not require for their conduct more than the average amount of knowledge or intelligence, they may be very successful. We would therefore hope, that as far as the trifling protection asked by for by them goes, as stated by one of themselves, the Legislature will act upon the evidence taken before, and the recommendations given by the last named Committee. The cherished prejudice in favor of unlimited liability may still be indulged, while conceding this small favor to associations of working men-that any attempt at fraud upon the part of an ill-disposed or dishonest member, may be made the subject of speedy redress by a magistrate, and that any differences arising should be referred to some inexpensive tribunal, provided expressly for such a

purpose.

There is one advantage in enabling the working classes to associate and carry on trade or manufacture on their own account, which should be sufficient to recommend such associations, even did they serve no other or further purpose; by permitting it we shall enable them to see that they are not suffering such injustice as they imagine, at the hands of their employers; that the average profits of such trades or manufactures are not so large as they estimated; and they will thus have before their eyes an unfailing proof, and one which

See Minutes of Evidence taken before Select Committee on Savings of Middle and Working Classes. Ordered by the House of Commons to be Printed, 5th July, 1850."

cannot be misunderstood-which will shew them what their labor is really worth.

It is neither our wish nor intention here to offer one word, or express any opinion as to the policy of the proposed measure which is still further to extend the suffrage, and place additional power in the hands of the working class. Though some efforts have been of late made and are making, it cannot be disguised that we have grossly neglected the great masses of the people, that we have not cared for them, have not educated them, have not legislated for them as we should have done; that they have been used by parties for party purposes; that as a class, independent of politics, or party, they have been ignored. The Reform Bill is a purely political move, and regards not, though it may have some effect upon, the elevation of the working class. Sooner or later they must become a great party in the State, and exercise an immense power for evil or good. There are, in our Constitution, sound and wholesome principles which require but an educated gaze that they should be recognized as the wisest that human wisdom has ever yet devised or man's experience tested; our institutions require but an educated gaze to be recognized as those under which the greatest amount of rational liberty, liberty alike from the despotism of a monarch, or of a mob, may be enjoyed; let us educate that class from whom so much is dreaded; let us care for them; let us do them full justice, not for the sake of party or politics, but for their own sake and for that of the common weal, and we shall find them the most ardent supporters and the boldest defenders of our Constitution and of our laws.