Karl Marx - The Rate of Surplus-Value (Chap 1.9.3) lyrics

SECTION 3. SENIOR'S “LAST HOUR” ______________________________________________________ One fine morning, in the year 1836, Na**au W. Senior, who may be called the bel-esprit of English economists, well known, alike for his economic “science,” and for his beautiful style, was summoned from Oxford to Manchester, to learn in the latter place, the Political Economy that he taught in the former. The manufacturers elected him as their champion, not only against the newly pa**ed Factory Act, but against the still more menacing Ten-hours' agitation. With their usual practical acuteness, they had found out- that the learned Professor “wanted a good deal of finishing;” it was this discovery that caused them to write for him. On his side the Professor has embodied the lecture he received from the Manchester manufacturers, in a pamphlet, entitled: “Letters on the Factory Act, as it affects the cotton manufacture.” London, 1837. Here we find, amongst others, the following edifying pa**age: “Under the present law, no mill in which persons under 18 years of age are employed, ... can be worked more than 11½ hours a day, that is, 12 hours for 5 days in the week, and nine on Saturday. “Now the following an*lysis (!) will show that in a mill so worked, the whole net profit is derived from the last hour. I will suppose a manufacturer to invest £100,000: — £80,000 in his mill and machinery, and £20,000 in raw material and wages. The annual return of that mill, supposing the capital to be turned once a year, and gross profits to be 15 per cent., ought to be goods worth £15,000.... Of this £115,000, each of the twenty-three half-hours of work produces 5-115ths or one twenty-third. Of these 23-23rds (constituting the whole £115,000) twenty, that is to say £100,000 out of the £115,000, simply replace the capital; — one twenty-third (or £5,000 out of the £115,000) makes up for the deterioration of the mill and machinery. The remaining 2-23rds, that is, the last two of the twenty-three half-hours of every day, produce the net profit of 10 per cent. If, therefore (prices remaining the same), the factory could be kept at work thirteen hours instead of eleven and a half, with an addition of about £2,600 to the circulating capital, the net profit would be more than doubled. On the other hand, if the hours of working were reduced by one hour per day (prices remaining the same), the net profit would be destroyed — if they were reduced by one hour and a half, even the gross profit would be destroyed.”[10] And the Professor calls this an “an*lysis!” If, giving credence to the out-cries of the manufacturers, he believed that the workmen spend the best part of the day in the production, i.e., the reproduction or replacement of the value of the buildings, machinery, cotton, coal, &c., then his an*lysis was superfluous. His answer would simply have been: — Gentlemen! if you work your mills for 10 hours instead of 11½, then, other things being equal, the daily consumption of cotton, machinery, &c., will decrease in proportion. You gain just as much as you lose. Your work-people will in future spend one hour and a half less time in reproducing or replacing the capital that has been advanced. — If, on the other hand, he did not believe them without further inquiry, but, as being an expert in such matters, deemed an an*lysis necessary, then he ought, in a question that is concerned exclusively with the relations of net profit to the length of the working-day, before all things to have asked the manufacturers, to be careful not to lump together machinery, workshops, raw material, and labour, but to be good enough to place the constant capital, invested in buildings, machinery, raw material, &c., on one side of the account, and the capital advanced in wages on the other side. If the Professor then found, that in accordance with the calculation of the manufacturers, the workman reproduced or replaced his wages in 2 half-hours, in that case, he should have continued his an*lysis thus: According to your figures, the workman in the last hour but one produces his wages, and in the last hour your surplus-value or net profit. Now, since in equal periods he produces equal values, the produce of the last hour but one, must have the same value as that of the last hour. Further, it is only while he labours that he produces any value at all, and the amount of his labour is measured by his labour-time. This you say, amounts to 11½ hours a day. He employs one portion of these 11½ hours, in producing or replacing his wages, and the remaining portion in producing your net profit. Beyond this he does absolutely nothing. But since, on your a**umption, his wages, and the surplus-value he yields, are of equal value, it is clear that he produces his wages in 5¾ hours, and your net profit in the other 5¾ hours. Again, since the value of the yarn produced in 2 hours, is equal to the sum of the values of his wages and of your net profit, the measure of the value of this yarn must be 11½ working-hours, of which 5¾ hours measure the value of the yarn produced in the last hour but one, and 5¾, the value of the yarn produced in the last hour. We now come to a ticklish point; therefore, attention! The last working-hour but one is, like the first, an ordinary working-hour, neither more nor less. How then can the spinner produce in one hour, in the shape of yarn, a value that embodies 5¾ hours' labour? The truth is that he performs no such miracle. The use-value produced by him in one hour, is a definite quantity of yarn. The value of this yarn is measured by 5¾ working-hours, of which 4¾ were, without any a**istance from him, previously embodied in the means of production, in the cotton, the machinery, and so on; the remaining one hour alone is added by him. Therefore since his wages are produced in 5¾ hours, and the yarn produced in one hour also contains 5¾ hours' work, there is no witchcraft in the result, that the value created by his 5¾ hours' spinning, is equal to the value of the product spun in one hour. You are altogether on the wrong track, if you think that he loses a single moment of his working-day, in reproducing or replacing the values of the cotton, the machinery, and so on. On the contrary, it is because his labour converts the cotton and spindles into yarn, because he spins, that the values of the cotton and spindles go over to the yarn of their own accord. This result is owing to the quality of his labour, not to its quantity. It is true, he will in one hour transfer to the yarn more value, in the shape of cotton, than he will in half an hour; but that is only because in one hour he spins up more cotton than in half an hour. You see then, your a**ertion, that the workman produces, in the last hour but one, the value of his wages, and in the last hour your net profit, amounts to no more than this, that in the yarn produced by him in 2 working-hours, whether they are the 2 first or the 2 last hours of the working-day, in that yarn, there are incorporated 11½ working-hours, or just a whole day's work, i.e., two hours of his own work and 9½ hours of other people's. And my a**ertion that, in the first 5¾ hours, he produces his wages, and in the last 5¾ hours your net profit, amounts only to this, that you pay him for the former, but not for the latter. In speaking of payment of labour, instead of payment of labour-power, I only talk your own slang. Now, gentlemen, if you compare the working-time you pay for, with that which you do not pay for, you will find that they are to one another, as half a day is to half a day; this gives a rate of 100%, and a very pretty percentage it is. Further, there is not the least doubt, that if you make you “hands” toil for 13 hours, instead of 11½, and, as may be expected from you, treat the work done in that extra one hour and a half, as pure surplus-labour, then the latter will be increased from 5¾ hours' labour to 7¼ hours' labour, and the rate of surplus-value from 100% to 126 2/23%. So that you are altogether too sanguine, in expecting that by such an addition of 1½ hours to the working-day, the rate will rise from 100% to 200% and more, in other words that it will be “more than doubled.” On the other hand-man's heart is a wonderful thing, especially when carried in the purse — you take too pessimist a view, when you fear, that with a reduction of the hours of labour from 11½ to 10, the whole of your net profit will go to the dogs. Not at all. All other conditions remaining the same, the surplus-labour will fall from 5¾ hours to 4¾ hours, a period that still gives a very profitable rate of surplus-value, namely 82 14/23%. But this dreadful “last hour,” about which you have invented more stories than have the millenarians about the day of judgment, is “all bosh.” If it goes, it will cost neither you, your net profit, nor the boys and girls whom you employ, their “purity of mind.” [11] Whenever your “last hour” strikes in earnest, think of the Oxford Professor. And now, gentlemen, “farewell, and may we meet again in yonder better world, but not before.” Senior invented the battle cry of the “last hour” in 1836. [12] In the London Economist of the 15th April, 1848, the same cry was again raised by James Wilson, an economic mandarin of high standing: this time in opposition to the 10 hours' bill. ______________________________________________________ Footnotes 10. Senior, l.c., pp. 12, 13. We let pa** such extraordinary notions as are of no importance for our purpose; for instance, the a**ertion, that manufacturers reckon as part of their profit, gross or net, the amount required to make good wear and tear of machinery, or in other words, to replace a part of the capital. So, too, we pa** over any question as to the accuracy of his figures. Leonard Horner has shown in “A Letter to Mr. Senior,” &c., London, 1837, that they are worth no more than so-called “an*lysis.” Leonard Horner was one of the Factory Inquiry Commissioners in 1833, and Inspector, or rather Censor of Factories till 1859. He rendered undying service to the English working-cla**. He carried on a life-long contest, not only with the embittered manufacturers, but also with the Cabinet, to whom the number of votes given by the masters in the Lower House, was a matter of far greater importance than the number of hours worked by the “hands” in the mills. Apart from efforts in principle, Senior's statement is confused. What he really intended to say was this: The manufacturer employs the workman for 11½ hours or for 23 half-hours daily. As the working-day, so, too, the working year, may be conceived to consist of 11½ hours or 23 half-hours, but each multiplied by the number of working-days in the year. On this supposition, the 23 half-hours yield an annual product of £115,000; one half-hour yields 1/23 × £115,000; 20 half-hours yield 20/23 × £115,000 = £100,000, i.e., they replace no more than the capital advanced. There remain 3 half-hours, which yield 3/23 × £115,000 = £5,000 or the gross profit. Of these 3 half-hours, one yields 1/23 × £115,000 = £15,000; i.e., it makes up for the wear and tear of the machinery; the remaining 2 half-hours, i.e., the last hour, yield 2/23 × £115,000 = £10,000 or the net profit. In the text Senior converts the last 2/23 of the product into portions of the working-day itself. 11. If, on the one hand, Senior proved that the net profit of the manufacturer, the existence of the English cotton industry, and England's command of the markets of the world, depend on “the last working-hour,” on the other hand, Dr. Andrew Ure showed, that if children and young persons under 18 years of age, instead of being kept the full 12 hours in the warm and pure moral atmosphere of the factory, are turned out an hour sooner into the heartless and frivolous outer world, they will be deprived, by idleness and vice, of all hope of salvation for their souls. Since 1848, the factory inspectors have never tired of twitting the masters with this “last,” this “fatal hour.” Thus Mr. Hovell in his report of the 21st May, 1855: “Had the following ingenious calculation (he quotes Senior) been correct, every cotton factory in the United Kingdom would have been working at a loss since the year 1850.” (Reports of the Insp. of Fact., for the half-year, ending 30th April, 1855, pp. 19, 20.) In the year 1848, after the pa**ing of the 10 hours' bill, the masters of some flax spinning mills, scattered, few and far between, over the country on the borders of Dorset and Somerset, foisted a petition against the bill on to the shoulders of a few of their work-people. One of the clauses of this petition is as follows: “Your petitioners, as parents, conceive that an additional hour of leisure will tend more to demoralise the children than otherwise, believing that idleness is the parent of vice.” On this the factory report of 31st Oct., 1848, says: The atmosphere of the flax mills, in which the children of these virtuous and tender parents work, is so loaded with dust and fibre from the raw material, that it is exceptionally unpleasant to stand even 10 minutes in the spinning rooms: for you are unable to do so without the most painful sensation, owing to the eyes, the ears, the nostrils, and mouth, being immediately filled by the clouds of flax dust from which there is no escape. The labour itself, owing to the feverish haste of the machinery, demands unceasing application of sk** and movement, under the control of a watchfulness that never tires, and it seems somewhat hard, to let parents apply the term “idling” to their own children, who, after allowing for meal-times, are fettered for 10 whole hours to such an occupation, in such an atmosphere.... These children work longer than the labourers in the neighbouring villages.... Such cruel talk about “idleness and vice” ought to be branded as the purest cant, and the most shameless hypocrisy.... That portion of the public, who, about 12 years ago, were struck by the a**urance with which, under the sanction of high authority, it was publicly and most earnestly proclaimed, that the whole net profit of the manufacturer flows from the labour of the last hour, and that, therefore, the reduction of the working-day by one hour, would destroy his net profit, that portion of the public, we say, will hardly believe its own eyes, when it now finds, that the original discovery of the virtues of “the last hour” has since been so far improved, as to include morals as well as profit; so that, if the duration of the labour of children, is reduced to a full 10 hours, their morals, together with the net profits of their employers, will vanish, both being dependent on this last, this fatal hour. (See Repts., Insp. of Fact., for 31st Oct., 1848, p. 101.) The same report then gives some examples of the morality and virtue of these same pure-minded manufacturers, of the tricks, the artifices, the cajoling, the threats, and the falsifications, they made use of, in order, first, to compel a few defenceless workmen to sign petitions of such a kind, and then to impose them upon Parliament as the petitions of a whole branch of industry, or a whole country. It is highly characteristic of the present status of so-called economic science, that neither Senior himself, who, at a later period, to his honour be it said, energetically supported the factory legislation, nor his opponents, from first to last, have ever been able to explain the false conclusions of the “original discovery.” They appeal to actual experience, but the why and wherefore remains a mystery. 12. Nevertheless, the learned professor was not without some benefit from his journey to Manchester. In the “Letters on the Factory Act,” he makes the whole net gains including “profit” and “interests” and even “something more,” depend upon a single unpaid hour's work of the labourer. One year previously, in his “Outlines of Political Economy,” written for the instruction of Oxford students and cultivated Philistines, he had also “discovered, in opposition to Ricardo's determination of value by labour, that profit is derived from the labour of the capitalist, and interest from his asceticism, in other words, from his abstinence.” The dodge was an old one, but the word “abstinence” was new. Herr Roscher translates it rightly by “Enthaltung.” Some of his countrymen, the Browns, Jones, and Robinsons, of Germany, not so well versed in Latin as he, have, monk-like, rendered it by “Entsagung” (renunciation).