work short time, perhaps half the day; wages fall by reason of the competition of the unemployed, the diminution of working-time and the lack of profitable sales; want becomes universal among the workers, the small savings, which individuals may have made, are rapidly consumed, the philanthropic institutions are overburdened, the poor-rates are doubled, trebled, and still insufficient, the number of the starving increases, and the whole multitude of “surplus” population presses in terrific numbers into the foreground. This continues for a time; the “surplus” exist as best they may, or perish; philanthropy and the Poor Law help many of them to a painful prolongation of their existence. Others find scant means of subsistence here and there in such kinds of work as have been least open to competition, are most remote from manufacture. And with how little can a human being keep body and soul together for a time! Gradually the state of things improve; the accumulations of goods are consumed, the general depression among the men of commerce and manufacture prevents a too hasty replenishing of the markets, and at last rising prices and favourable reports from all directions restore activity. Most of the markets are distant ones; demand increases and prices rise constantly while the first exports are arriving; people struggle for the first goods, the first sales enliven trade still more, the prospective ones promise still higher prices; expecting a further rise, merchants begin to buy upon speculation, and so to withdraw from consumption the articles intended for it, just when they are most needed. Speculation forces prices still higher, by inspiring others to purchase, and appropriating new importations at once. All this is reported to England, manufacturers begin to produce with a will, new mills are built, every means is employed to make the most of the favourable moment. Speculation arises here, too, exerting the same influence as upon foreign markets, raising prices, withdrawing goods from consumption, spurring manufacture in both ways to the highest pitch of effort. Then come the daring speculators working with fictitious capital, living upon credit, ruined if they cannot speedily sell; they hurl themselves into this universal, disorderly race for profits, multiply the disorder and haste by their unbridled passion, which drives prices and production to madness. It is a frantic struggle, which carries away even the most experienced and phlegmatic; goods are spun, woven, hammered, as if all mankind were to be newly equipped, as though two thousand million new consumers had been discovered in the moon. All at once the shaky speculators abroad, who must have money, begin to sell, below market price, of course, for their need is urgent; one sale is followed by others, prices fluctuate, speculators throw their goods upon the market in terror, the market is disordered, credit shaken, one house after another stops payments, bankruptcy follows bankruptcy, and the discovery is made that three times more goods are on hand or under way than can be consumed. The news reaches England, where production has been going on at full speed meanwhile, panic seizes all hands, failures abroad cause others in England, the panic crushes a number of firms, all reserves are thrown upon the market here, too, in the moment of anxiety, and the alarm is still further exaggerated. This is the beginning of the crisis, which then takes precisely the same course as its predecessor, and gives place in turn to a season of prosperity. So it goes on perpetually—prosperity, crisis, prosperity, crisis, and this perennial round in which English industry moves is, as has been before observed, usually completed once in five or six years.
From this it is clear that English manufacture must have, at all times save the brief periods of highest prosperity, an unemployed reserve army of workers, in order to be able to produce the masses of goods required by the market in the liveliest months. This reserve army is larger or smaller, according as the state of the market occasions the employment of a larger or smaller proportion of its members. And if at the moment of highest activity of the market the agricultural districts and the branches least affected by the general prosperity temporarily supply to manufacture a number of workers, these are a mere minority, and these too belong to the reserve army, with the single difference that the prosperity of the moment was required to reveal their connection with it. When they enter upon the more active branches of work, their former employers draw in somewhat, in order to feel the loss less, work longer hours, employ women and younger workers, and when the wanderers discharged at the beginning of the crisis return, they find their places filled and themselves superfluous—at least in the majority of cases. This reserve army, which embraces an immense multitude during the crisis and a large number during the period which may be regarded as the average between the highest prosperity and the crisis, is the “surplus population” of England, which keeps body and soul together by begging, stealing, street-sweeping, collecting manure, pushing handcarts, driving donkeys, peddling, or performing occasional small jobs. In every great town a multitude of such people may be found. It is astonishing in what devices this “surplus population” takes refuge. The London crossing-sweepers are known all over the world; but hitherto the principal streets in all the great cities, as well as the crossings, have been swept by people out of other work, and employed by the Poor Law guardians or the municipal authorities for the purpose. Now, however, a machine has been invented which rattles through the streets daily, and has spoiled this source of income for the unemployed. Along the great highways leading into the cities, on which there is a great deal of wagon traffic, a large number of people may be seen with small carts, gathering fresh horse-dung at the risk of their lives among the passing coaches and omnibuses, often paying a couple of shillings a week to the authorities
