The Industrial Review, Social and Political. — 1877-08-04 (London, England)

comes. The employers should find that the men will not submit to the reductions without a struggle that may throw this most important industry into ruinous confusion. To submit to an arbitration that would lead to such a condition of things would be simply suicidal, and the leaders of the men, far as they have gone for the sake of peace and the good they expected would ultimately come out of it, will not recommend such a policy.  It is not right as a general principle to regulate wages by price of coal. The labour market and the coal market are different; not the same; and the one cannot therefore be justly and properly ruled and regulated by the other. This will appear plainly enough when they are examined side by side. In 1871, when prices began to go rapidly up, the output of coal for the United Kingdom was 117 millions of tons, when price had reached its highest point at the close of 1873, the output for that year was 127 millions of tons. The demand for coal rapidly got ahead of the power of supply, and the price of coal became fabulously high. The men during this time got in advanced wages whatever they insisted on, but as they act in huge masses, and by decisions to be come to after public meetings, discussions, and votes, their movements were necessarily slow, and when everything was counted up at the end, their gains compared with those of the owners were quite insignificant. Besides, in the latest advances made by the owners in price the men did not follow them.  When the iron trade fell off, and demand for coal began to slacken, as a natural consequence, prices began to recede. Two causes were in operation, namely, a decreased demand and an increased supply. The output of the miners of Groat Britain for 1876 was the largest over known, namely, 134 millions of tons. This double process of slackened demand and increased supply brought prices down with a run, and as the output of coal kept ncreasing, and demand at the same time kept slackening, it was quite certain that the lowest point must soon be reached; and ie the statements of the employers, made when the last demands of reduced wages were put forward, this lowest point has been reached. The doctrines of political economy as well as commonsense and ordinary experience, tell us that a languid demand in an oversupplied market must bring down prices, and that this is the condition of things in the coal market at the present moment is undeniable.  Let us turn now to the labour market. The output of 1874, when the highest prices was reached, and the turning point had come, was 125 million tons. This, as will be seen by the figures already given, did not decrease with the declining markets and falling prices. On the contrary, it increased, till in 1877 it had reached 134 millions. The labour market was not contracted. There was no falling off in the demand for miners' labour; beyond this, that certain of the least profitable workings were abandoned, and the whole power put on where the pits were of the largest and best capacity in yield, where the working, in fact, was cheapest. In 1876 there were 116 mines fewer at work for the production of the larger quantity of coal. The diminution of the number of persons employed was rather under 4 per cent., and to that extent only was the demand for labour in and about the mines decreased. And this diminution, it is fair to presume, consisted of the inferior workers brought into the mines under the stimulus of high prices and large profits. If then we take the highest price of coal at 18s. per ton, and its present price at 65., there has been a reduction of two-thirds in price, whilst in demand for labour the falling off has not been quite four per cent. This makes a great difference between the condition of the coal market and the condition of the labour market, in favour of the labour market; and we can say. therefore, that if the men had as eagerly taken advantage of their position as the employers have taken advantage of their oppotunities for lowering wages, the likelihood is that the men would have fought the employers, and that their wages would at the present moment be far better than they are. This is not urged with the view of encouraging strikes, but to warn coalowners of the peril that lies before them if they seek to push the men too far down bill by aid of arbitrators and umpires. If concealment of fact and adroitness of statement under the name of arbitration are to be substituted for force, as displayed in strikes and lock-outs, the true situation should be known. The day has gone by for ever when men will work for insufficient wages contentedly. There must be an equitable adjustment of interests honestly sought for between employers and employed, and it woulki be wise on the part of the men to seek to attain this through arbitration, without the attendant loss of strikes. The shifts of cunning cannot be substituted for the wisdom of justice, and if any attempt in such a direction be carried too far by the employers, the men may, however unwilling, draw the sword and throw away the scabbard until they have made good their position as active and necessary agents in promoting the welfare of the country and enriching it by their labour. 

Article type: NotIncident