Hostname: page-component-68945f75b7-s5tfc Total loading time: 0 Render date: 2024-09-04T16:10:53.535Z Has data issue: false hasContentIssue false

Technology, Transaction Costs, and the Transition to Factory Production in the British Silk Industry, 1700–1870

Published online by Cambridge University Press:  03 March 2009

S. R. H. Jones
Affiliation:
The author is Senior Lecturer in Economics, University of Auckland, Private Bag, Auckland I, New Zealand.

Abstract

Scholars still disagree about why nineteenth-century Britain adopted the factory system. Traditional historians emphasize the scale requirements of new technology; radical economists stress the possibilities that factory production held for worker exploitation; other economists and economic historians argue that the factory system was preferred because of its superior transaction-cost properties. This paper tests these competing hypotheses by examining the technological and organizational developments in the British silk industry. It concludes that in this Industry technological factors were primarily responsible for the adoption of the factory system.

Type
Articles
Copyright
Copyright © The Economic History Association 1987

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

I am grateful to the editors of this JOURNAL, to Donald Coleman, and to members of seminars at the Universities of Auckland, Lancaster, and the Institute of Historical Research, London, for their helpful comments and advice.Google Scholar

1 Jenkins, D. T., “The Validity of the Factory Returns, 1833–1850,” Textile History. 4 (10 1973), pp.4346.CrossRefGoogle Scholar

2 The pin industry, used by many as the basis for generalizations about the factory system, made extensive use of outworkers. It was not until the introduction of the automatic pin-making machine in the 1830s and 1840s that outwork was abandoned.Google Scholar

3 Fang, H. T., The Triumph of the Factory System in England (Philadelphia, 1978), p. 5.Google Scholar

4 Thus accounts by Unwin, Clapham, and Mantoux discuss the development and spread of the factory system largely in terms of technical advances in cotton and woolen textiles. Unwin, G., “The Transition to the Factory System,” English Historical Review, 37 (04 1922), pp. 213–14;Google ScholarClapham, J. H., An Economic History of Modern Britain: The Early Railway Age 1820–1850 (Cambridge, 1964), pp. 143–47, 192–97;Google ScholarMantoux, P., The Industrial Revolution in the Eighteenth Century (London, 1961), p. 195 ff.Google Scholar For a more modern approach, see Ashton, T. S., The Industrial Revolution (London, 1962), pp. 33, 70–76;Google ScholarLandes, David S., The Unbound Prometheus (Cambridge, 1969), p. 81;Google ScholarMathias, Peter, The First Industrial Nation (London, 1969), pp. 108, 128–33.Google Scholar

5 Marglin, Stephen A., “What Do Bosses Do? The Origins and Function of Hierarchy in Capitalist Production,” Review of Radical Political Economics, 6 (Summer 1974), p. 84.CrossRefGoogle Scholar

6 The neoclassical argument that labor can avoid exploitation simply by hiring capital is criticized by Marglin. The social relations of production, he argues, preclude such an arrangement. (“What Do Bosses Do?” p. 66).Google Scholar

7 Bowles, Samuel and Gintis, Herbert, Schooling in Capitalist America (New York, 1976), P. 77.Google Scholar

8 Williamson, Oliver E., “The Evolution of Hierarchy: An Essay on the Organization of Work,” Fels Discussion Paper, No. 91, University of Pennsylvania, Philadelphia (07 1976);Google Scholar see also, The Organization of Work,” Journal of Economic Behavior and Organization, 1 (No. 1, 1980), pp. 538.Google Scholar

9 North, Douglass C., Structure and Change in Economic History (New York, 1981), Pp. 168–69.Google Scholar

10 See, for example, the report of R.D. Grainger on pin manufacturing in Birmingham. Royal Commission on Children's Employment, British Parliamentary Papers [hereafter B.P.P.], vol. 14, 1843, F.23.Google Scholar

11 For an analysis of the relative advantages of the putting-out and factory systems, see Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 117–37.CrossRefGoogle Scholar

12 Charles Babbage's work, On the Economy of Machinery and Manufactures (1835), is a general eulogium to modernity and progress. Not surprisingly, the putting-out system does not elicit favorable comment.Google Scholar

13 “The term Factory, in technology, designates the combined operation of many orders of work-people, adult and young, in tending with assiduous skill a system of productive machines continuously impelled by a central power.” Ure, A., The Philosophy of Manufactures (London, 1835), p. 13.Google Scholar

14 See, for example. Fang, Triumph of the Factory System, p. 15.Google Scholar

15 Cooke-Taylor, W., Factories and the Factory System (London, 1891), p. 1.Google Scholar

16 Sir Ambrose Crowley's ironworks in County Durham were atypical both in size and organizational form. The two slitting mills each employed 250 workers, while the Winlaton factory, which produced ironmongery, employed as many as 300. Water power was used to drive the slitting mills, but the Winlaton factory, quite the largest in England, relied on traditional hand techniques. Flinn, M. W., Men of Iron (Edinburgh, 1962), pp. 75, 184.Google Scholar

17 A three-story silk mill had been built on the same site by Thomas Cotchett in 1701 but had failed. Chaloner, W. H., People and Industries (London, 1963), pp. 1011.Google Scholar

18 Defoe, Daniel, Tour through the Whole Island of Great Britain (1726).Google Scholar Quoted by Chaloner, ibid., p. 13.

19 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 1415. The rest of this account draws heavily on Chaloner's excellent essay on the life of Thomas Lombe.CrossRefGoogle Scholar

20 The silk industry was still organized on a craft workshop or putting-out basis at this time. The silk-throwing section was relatively insignificant, mainly because of foreign competition. Organzine was a particularly strong form of silk thread used principally for warps. It was produced by throwing several single threads together and then doubling them. Coleman, D.C., Courtaulds, An Economic and Social History (Oxford, 1969), vol. 1, pp. 1214.Google Scholar

21 Chaloner, People and Industries, p. 10.Google Scholar

22 Patent No. 422, Woodcroft, B., An Alphabetical Index of Patentees of Invention 1617–1852 (London, 1969 edn.).Google Scholar

23 Chaloner, People and Industries, p. 13.Google Scholar

24 John Lombe, the mechanically more able of the two brothers, died in 1722, allegedly poisoned by infuriated Italians. Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp., p. 15.CrossRefGoogle Scholar

25 Unwin, G., Samuel Oldknow and the Arkwrights (Manchester, 1924), p. 26.Google Scholar

26 Journal of the House of Commons, 30, 1765, p. 219.Google Scholar

27 Warner, F., The Silk Industry of the United Kingdom: Its Origin and Development (London, 1921), pp. 131, 147, 298, 324–39.Google Scholar

28 Select Committee [hereafter S.C.] on the Silk Trade, B.P.P., vol. 19, 1831/1832, pp. 195–96, 280.Google Scholar

29 Even Marglin, who cites the failure of the Wyatt-Paul enterprise, is willing to concede that early factory management was a far from routine exercise. “What Do Bosses Do?”, p. 86.Google Scholar

30 Report of the Committee on Silk Ribbon Weavers Petitions, B.P.P., vol. 9, 1818.Google Scholar

31 “…the wages for silk weavers were to be fixed in London by the Lord Mayor, Recorder and alderman … in Middlesex and Westminster by magistrates …” , J. L. and Hammond, Barbara, The Skilled Labourer, 1760–1832 (London, 1936), p. 209. Wages were fixed in regional centers according to local books of prices agreed to by masters and men. They were almost invariably less than the Spitalfields rates, which were sometimes used as a benchmark.Google Scholar

32 Committee on Silk Ribbon Weavers, pp. 97–98.Google Scholar

33 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 8.CrossRefGoogle Scholar

34 The cost savings from cheaper labor were estimated at 10 percent. S.C. on Silk Trade, p. 113.Google Scholar

35 Committee on Silk Ribbon Weavers, pp. 16–17, 156.Google Scholar

36 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 156.CrossRefGoogle Scholar

37 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 124.CrossRefGoogle Scholar

38 S.C. on Silk Trade, p. 203.Google Scholar

39 Warner, The Silk Industry, p. 286.Google Scholar

40 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 458.CrossRefGoogle Scholar

41 The changes in duties are summarized in Assistant Commissioner Fletcher's report, Commission on Handloom Weavers, B.P.P., vol. 24, 1840, p. 6.Google Scholar

42 On rich figured gauzes the labor costs amounted to almost 60 percent of the cost of manufacturing. S.C. on Silk Trade, p. 153.Google Scholar

43 S.C. on Silk Trade, pp. 479–81, 690, 724–25, 750, 791; Commission on Handloom Weavers, vol. 24, 1840, pp. 8–10.Google Scholar

44 S.C. on Silk Trade, pp. 345, 380, 419, 841.Google Scholar

45 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 479, 488, 652–53, 690, 724–25, 776–77.CrossRefGoogle Scholar

46 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 636.CrossRefGoogle Scholar The very highest classes of goods, such as exhibition work and fancy ribbons, were beyond the scope of the Jacquard loom because of the number of threads involved. It was eminently suited for most figured work, however, enabling complicated patterns to be produced on a regular basis. Prest, J. R., The Industrial Revolution in Coventry (London, 1960). pp. 4748.Google Scholar

47 The engine loom, or Dutch loom, was not in any way mechanical but was simply a hand loom capable of weaving a number of ribbons at the same time.Google Scholar

48 Of the 4,000 engine looms in Coventry at the end of 1831, almost 700 had Jacquard attachments. Commission on Handloom Weavers, vol. 24, 1840, P. 9.Google Scholar

49 S.C. on Silk Trade, p. 522.Google Scholar

50 The factories were fairly equally distributed between Derby, Manchester, and East Anglia.Google Scholar

51 S.C. on Silk Trade, pp. 796–97.Google Scholar

52 Coleman, Courtaulds, vol. 1, p. 86.Google Scholar

53 S.C. on Silk Trade. p. 377.Google Scholar

54 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 636, p. 694.CrossRefGoogle Scholar

55 Coleman, Courtaulds, vol. 1, p. 60–64.Google Scholar

56 The Factory Inspectors Returns record 1,714 power looms in use in 1835. B.P.P., vol. 45, 1836, pp. 152–53. The returns note that a further 22 power looms are about to commence in Warwickshire but omit mention of Wiltshire, in which a ribbon-weaving factory had been operating since 1834. On the deficiencies of the Factory Returns, see Jenkins, “The validity of the Factory Returns,” pp. 26–46.Google Scholar

57 The quality of silk thread had deteriorated as throwsters, in an attempt to meet foreign competition, had speeded up their machines without increasing the number of machine minders. The knots and blemishes in the thread added to weaving times and led to imperfections in final product. S.C. on Silk Trade, pp. 194, 205, 767, 790.Google Scholar

58 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 358.CrossRefGoogle Scholar

59 Fixed costs were effectively transformed into sunk costs by the severe depreciation of capital values following the removal of protection. One Somerset throwster complained that his mill, which had cost between £20,000 and £30,000, was now virtually useless. S.C. on Silk Trade, p. 205. It therefore paid to remain in the industry as long as operations yielded some contribution to fixed costs.Google Scholar

60 Coleman, Courgaulds, vol. I, pp. 72, 87.Google Scholar

61 The tariff was further reduced in 1829 and changed from a specific to an and valorem duty, largely because of the success of domestic manufacturers in reducing costs following the initial tariff reduction in 1826. It was the aim of the government to limit protective duties to around 30 percent ad valorem. Commission on Handloom Weavers, vol. 24, 1840, p. 6.Google Scholar

62 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 12;CrossRefGoogle ScholarS.C. on Silk Trade, p. 479;Google ScholarDavies, C.S., A History of Macclesfield, (Manchester, 1961), p. 134.Google Scholar

63 Mitchell, B. R. and Deane, Phyllis, Abstract of British Historical Statistics, (Cambridge, 1962), p. 207.Google Scholar

64 Of the 10,500 or so looms in London in 1838, 97 percent belonged to families owning five looms or less. Commission on Handloom Weavers, vol. 24, 1840, p. 227.Google Scholar

65 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982) p. 47.CrossRefGoogle Scholar

66 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 337–50.CrossRefGoogle Scholar

67 S.C. on Silk Trade, pp. 56–57.Google Scholar

68 Commission on Handloom Weavers, vol. 24, 1840, PP. 226–34. The figure-engine list, which had always been more difficult to sustain on account of the greater fluctuations in demand and heterogeneity of the product, was largely abandoned in the mid-1830s.Google Scholar

69 Prest, Industrial Revolution, p. 88.Google Scholar

70 By 1838 the bulk of the half-pay apprentices in Coventry were working in factories. Commission on Handloom Weavers, vol. 24, 1840, P. 43.Google Scholar

71 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), PP. 4649, 292.CrossRefGoogle Scholar

72 This factory employed both power and hand looms. Weavers were employed at a weekly wage that was greater than they might normally receive if working by the piece, but only on condition that they produced a minimum length of ribbon well in excess of the weekly norm. Their mode of working did, however, vary from that of other weavers in that they were given assistants to help them tend and clean the threads of the warp. Fletcher concluded that this system concealed the fact that the factory master was actually paying a lower price per piece than the agreed list. Not surprisingly, weavers disliked the system even though they were paid more, and the factory concerned was subject to strikes and other disturbances. Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 4650, 226, 231–32.CrossRefGoogle Scholar

73 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 282–83.CrossRefGoogle Scholar

74 The lack of factory discipline was not confined to the silk industry. See Pollard, S., The Genesis of Modern Management (Harmondsworth, 1968), chap. 5.Google Scholar

75 Commission on Handloom Weavers, vol. 24, 1840, p. 46.Google Scholar

76 By 1850 all weaving factories possessed at least some power looms. Factory Returns, B.P.P., vol. 62, 1850.Google Scholar

77 Commission on Handloom Weavers, vol. 23, 1840, p. 398.Google Scholar

78 Courtaulds had installed 178 power looms by 1838, while Grout, Baylis & Co. probably possessed around 200. Coleman, Courtaulds, vol. 1, p. 87.Google Scholar

79 Commission on Handloom Weavers, vol. 23, 1840, pp. 378–79.Google Scholar

80 Coleman, Courraulds, vol. 1, p. 107.Google Scholar

81 Commission on Handloom Weavers, vol. 23, 1840, pp. 384–85.Google Scholar

82 Coleman, Courraulds, vol. 1, p. 142.Google Scholar

83 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), pp. 128–33.CrossRefGoogle Scholar

84 Forty percent of the power looms used in the silk industry in 1857 were located in Lancashire. Factory Returns, B.P.P., vol. 14, 1857, Session 1.Google Scholar

85 Prest, Industrial Revolution, p. 95.Google Scholar

86 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 93.CrossRefGoogle Scholar

87 This account of cottage factories relies heavily on Prest, Industrial Revolution, chaps. 5–7.Google Scholar

88 The cottage factory did not affect the organizational structure of the trade. Weavers still worked on materials and patterns supplied by merchants and manufacturers according to outdoor list prices.Google Scholar

89 Factory Inspector Baker, an enthusiastic advocate of cottage factories, went so far as to suggest that they were displacing the larger silk factories. Reports of Factory Inspectors, B.P.P., 34, April 1860 Report, p. 58.Google Scholar

90 Prest, Industrial Revolution, p. 102.Google Scholar

91 Although the broad silk trade in Spitalfields also suffered greatly. Warner, The Silk Industry, chap. 8.Google Scholar

92 Some of the manufacturers and the free trade Birmingham Post were inclined to attribute the depression to “the change in fashions which has almost abolished ribands.” Reports of Factory Inspectors, B.P.P., vol. 22, Oct. 1861 Report, pp. 38–39. The subsequent growth in the importation of French goods suggests that they were not entirely correct in their view.Google Scholar

93 Prest, Industrial Revolution, p. 123.Google Scholar

94 Andrews, William, Papers Relating to the Ribbon Trade, (1878), quoted by Prest,Google ScholarJones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 122.CrossRefGoogle Scholar

95 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 127.CrossRefGoogle Scholar

96 Reports of Factory Inspectors, B.P.P., vol. 22, April 1861 Report, p. 35.Google Scholar

97 Prest, Industrial Revolution, p. 132.Google Scholar

98 Reports of Factory Inspectors, B.P.P., vol. 22, April 1861 Report, p. 38.Google Scholar

99 Reports of Factory Inspectors, B.P.P., vol. 24, October 1866 Report, pp. 62–66.Google Scholar

100 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 127.CrossRefGoogle Scholar

101 Warner, The Silk Industry, p. 458; Commission on Handloom Weavers, vol. 23, 1840, pp. 226–27.Google Scholar

102 Commission on Handloom Weavers, vol. 23, 1840, pp. 226–27.Google Scholar

103 Warner, The Silk Industry, p. 89.Google Scholar

104 Returns, Factory, B.P.P., vol. 42, 1850; vol. 14, 1857.Google Scholar

105 Warner, The Silk Industry, p. 84.Google Scholar

106 Jones, S.R.H., “The Organization of Work,” Journal of Economic Behavior and Organization, 3 (No. 2, 1982), p. 127, p. 88.CrossRefGoogle Scholar

107 Booth, Charles, ed. Life and Labour of the People in London (London, 1893), vol. 4, p. 252.Google Scholar

108 Warner, The Silk Industry, pp. 88–89.Google Scholar

109 Jordan, W. H., “The Silk Industry in London, 1760–1830” (M.A. thesis, London University, 1931), p. 34.Google Scholar

110 “[T]he rational and methodological management of labour was the central management problem in the industrial revolution, requiring the fiercest wrench from the past,” Pollard, Genesis, p. 189.Google Scholar

111 There is a parallel here between the situation in Macclesfield and the Gloucestershire woolen industry, where from around 1828 manufacturers installed looms in large weaving shops in an attempt to break the power of weavers' combinations. Commission on Handloom Weavers, 1840, p. 457.Google Scholar