Ten millions of people inhabit the manufacturing districts of which Manchester is the centre. It is at once the wealthiest and the poorest district in England, where wealth has an increasing tendency to accumulate in the hands of the few, and where, according to official returns, there are, at the other extreme, more paupers than anywhere else in the land, with the single exception of Middlesex, including London. The inevitable reverse to the medal of great commercial prosperity is wretched poverty existing side by side with it. It is only in poor agricultural, non-manufacturing countries that poverty is comparatively happy and endurable. If there is a remedy for such a state of things in the industrial centres, no one has yet found or applied it. There is always a large proportion here of the classes it has become the fashion to style “submerged,” and in times when prosperity wanes it increases so as to include most of the wage-earners, and to bring the smaller shopkeepers to the verge of ruin. Many of these periods of depression have been beyond human power to foresee or to avert, but others have been induced by the action of the manufacturers, in competition with one another. But in almost every instance of hard times the nearest remedy has been sought, on one side, or the other, in the strike or the lock-out. Lancashire is the home of these crude remedies.

Next to the shortage, or the high price, of raw material, or the slackness of trade, the greatest evil is that of the glutted market, caused by over-production, hardly possible before the days of machinery; an evil which is most often caused by the competition of manufacturers, who continue to manufacture, each one in the hope that, whoever else suffers, he at least will not. Over-production has in the past been carried on to such an extent that goods have had to be sold in bulk for very considerably lower than the cost of manufacture. Selling at a heavy loss, the manufacturers have sought the nearest means handy to reduce their deficit; and this has usually been found in the reduction of wages, rather than in decreasing the output. A five or ten per cent. reduction has generally brought about a strike, which has, before now, been welcome to great firms, in affording an excuse for ceasing to manufacture at a ruinous loss. To provoke a strike on these terms has been the only way out of an impossible situation; and the indignant workpeople have thus, instead of embarrassing the masters, unwittingly saved them from bankruptcy. The middle course is the expedient of “short time.”

These are large and serious questions, happily not of late years pushed forward by circumstances so greatly as of yore; but once very prominent indeed. The literature of cotton-spinning and strikes is a very extensive one, and written upon largely by no less an authority than Mr. John Morley, who is of opinion that “some of them (the manufacturers) are idle, some are incompetent, and some of them are blackguards.” This is severe criticism indeed to pass upon as enterprising and as upright a body of commercial men as it is possible to find in England: men, too, not so long since, generally of his own brand of politics. They do not seem the words of a philosopher.

The greatest period of over-production was that culminating in the gorged markets of 1861. The years 1859-60 had been times of “terrific prosperity,” in which new mills had sprung up numerously, and had, in common with the older, been working overtime. In the beginning of 1861 there were 2,270 factories in Lancashire, Derbyshire, and Cheshire, working at high pressure. As a result of the supposition that those good times would last, manufacturers strained every nerve to work their plant and their hands to their utmost capacity, and in doing so produced such a bulk of goods that by their own efforts they brought prosperity to an end. India and China, the great markets for shirtings and yarn, were full up, and ceased to be buyers; and all the while, the warehouses of Manchester were bursting with an increasing stock of unsaleable goods. The result was “short time” in October 1861. Even had there been no war in America, bad times would have come; but with the opening of the civil war between North and South, the Cotton Famine of 1862-3, brought about by the cessation of the supply of raw cotton from the Southern States, brought wealthy cotton-spinners to the verge of ruin, and misery and starvation to hundreds of thousands. Every one in the manufacturing districts suffered, for the classes are dependent one upon another. To manufacturers, workpeople, shopkeepers, professional men, the Cotton Famine was a very grim reality. By December 1862, no fewer than 247,000 hands were out of employment, and more than half that number on “short time.” The huge number of 234,000 were in receipt of poor-relief, and the average poor-rates for the manufacturing districts rose from 7⁵/₈d. in the £, to 2s. 2½d. The Relief Funds subscribed amounted to over £2,000,000, and the trade losses due to the Cotton Famine were calculated at £70,000,000.

The newspapers of that dreadful time were full of pen-pictures of the Famine, and they are readily to be referred to, but no good purpose would be served by recounting those sad tales. Yet, in spite of all their sufferings, in spite of having everything to gain from the success of the South, the essential sturdiness, independence, and honesty of the Lancashire people’s character kept their original opinions firm: that the North was right in fighting against slavery. It was essentially the people’s opinion. Knowing something themselves of slavery in the days before the Factory Acts, they were sympathetic, and were solid for the North. Other classes were, at best, divided, and England as a whole was for the South.

Manchester long ago ceased to be a cotton-manufacturing centre. The growth of the industry, the growth of the city, and the increase of rent, rates, and taxes within it, all led to Manchester becoming the metropolis of cotton, in which it is no longer worked up from the raw material, but where the finished product is warehoused. Warehouses, and not factories, are the prominent buildings of “Cottonopolis”; which is now a city of merchants and middlemen, and the metropolis of the Lancashire industrial towns, where all professions and trades are represented. To see the cotton mills, you need go to Stockport, Bolton, Blackburn, Oldham, and Preston: but whenever they suffer, Manchester will share in their trials.

The magnitude of the cotton-spinning trade is too great to be readily grasped. In the comparatively early stages of its history, in the years 1793-1824, the value of the total exports was £365,000,000, or an average of, say, twelve millions sterling a year, and that of the raw material imported £128,000,000. In 1887, the total value of the annual exports had risen to £70,957,000; or, in other words, it had grown almost six-fold.

There were then 700,000 operatives, and a sum of £29,400,000 was paid annually in wages. According to the returns for 1905, the exports of cotton goods in that year were valued at £92,000,000, showing an annual increase since 1887 of considerably over a million sterling a year. And still the tide of commercial prosperity is rising; no fewer than eighty new cotton mills having been built in Lancashire in the eighteen months comprising 1906 and the first half of 1907: with the result that there is more work to be done than hands to do it. When in due course the usual over-production ensues, and the scarcity of labour is replaced by lack of work, the bulk of misery and suffering will be proportionately increased; and should there ever come another Cotton Famine, the horrors of 1863 will fade into comparative insignificance.