2262 COlVrMEECIAL JAPAIT. Pecembeb, 



mcnt". Manufacturing needs complicated machinery, and the more the industry improves with the increase of invention of labor-saving 

 machinery the more l» there need of higlily skilled laborers, who know, at least, the movements of machinery and its processes. Our 

 (lav laborers at present are personally good for little, but labor is the greatest and most important factor of the wealth of a country. It 

 is worth while to study how to improve the condition of the laborere, to increase the standard of intelligence among them, and to give 

 tlicm industrial education and make them fully acquainted with the work, and thus increase their u.sefulness; otherwise the factory 

 would become a place where the ignorant and the lower class would be gathered and industry would retrograde; pauperism would 

 increase and finally destroy all the resources of the country. 



As to the betterment of industrial conditions, industrial improvement, and the elevation of workingmen, Mr. Victor H. Olmsted 

 gives some very interesting summaries in the United States: 



"1. Club organizations, in which employees are banded together for social, educational, recreative, and other purposes incident to 

 such associations. 



"2. The encouragement of physical culture by means of gymnasiums, calisthenics, base ball, bicycle, and similar exercises. 



"3. The improvement of intellectual conditions by means of free lectures, libraries, kindergartens, and educational classes. 



"4. The increasing of industrial efficiency through industrial schools and manual-training classes. 



"5. The advancernent of spiritual life by means of Sunday schools and general religious work — making people moral and creating 

 intellectual aspiration. 



"6. The cultivation of musical taste and ability by means of concerts and masical entertainments for employees, and the 

 encouragement of musical clubs and organizations among them. 



"7. Promotion of improved social conditions by means of social gatherings, summer outings, meeting places, and game rooms for 

 employees, banquets, dances, etc. 



"8. Profit sharing with employees. 



"9 The promotion of the personal interest of employees in the successful conduct of the business by encouraging and assistmg 

 them to purchase shares in it, thus, in effect, taking them into partnership. 



" 10. The improvement of domestic conditions by means of improved dwellings, instruction in sewing, cooking, and housekeeping, 

 and in landscape and kitchen gardening, and the exterior and interior decoration of homes. 



"11. The care for employees' health and comfort by means of bathing facilities, dining and lunch rooms, the furnishing of hot 

 limches to female employees, and by imj^roved sanitary construction and appliances. 



"12. The care of sick and dlsablefl employees and their families by means of free insurance, free medical attendance or hospital 

 facilities, and by the encouragement of beneficial organizations. 



"13. The cultivation of thrift through savings-bank facilities, building associations, or provident organizations, and by the giving oi 

 prizes for valuable suggestions of employees and rewards for faithful service or the manifestation of zealous interest in their employment. 



"14. The rendering of financial aid to employees in case of hardship or distress. 



"15. The manifestation of interest in the personal affaira of iiidividual employees, the cultivation of cordial and even confidential 

 relations with them, and the i)romotion of their welfare in all possible ways." 



These are worthy of general adoption. 



As to the improvement of indur-try, this would naturally follow from competition with other strong countries. Then the great 

 economi(!al subjects to be studied are the effect on wages, profits, and improvement of laborers. 



Tlie defects in the manufacturing industry of our country at present are — 



1. Factory: (a) Insufliciency of ventilation, as in our jirinting, tobacco, textile, rug, match, and iron factories; (b) lack of space, 

 as in factories of large employment, as in matches, bookbinding, tobacco factories, etc.; (c) too small entrances, often resulting in 

 blockades in cases of panics; (cZ) narrowness and disorder of gateways in factories; (e) uncleanness of dining, resting, bathing, and toilet 

 rooms. 



2. Machinery: (a) Leaking of poisonous gas; (h) the insufficient care of dangerous chemicals; (c) imperfect arrangement in regard 

 to dust; (d) carelessness in handling machines; (e) lack of protection or remedy against accidents by machinery; (/) imperfect methods 

 of fireprooling; {g) unsafe lanterns or light. 



3. I^aborers: {«) Difference in hours of labor; (b) difference in wages on extra work; (c) lack of uniformity in recess hours; (d) 

 work in recess liour; (e) no limit as to age; (/) no limit on hours for child laborers; (g) no system of instruction for child laborers; (/<) 

 depending too much on foreman as to the laborers, employment, discharge, and wages; (() no by-law on compensation for damages when 

 dischargod; {j) food and goods given as payment; {k) imperfect system for the care of the sick and the injured among laborers; (/) no 

 regulation as to assistance on the death of laborer while at work; (y;*) mixture of male and female workers; (»)no supervision over 

 appn ntices; (o) no regulation about the runningawayof employees; (p) many defects in the method of securing employees by commission; 

 {(j) no j)enalties for damage of machinery or otlier things by the bad intention of employees. 



4. The articles produced: (a) The variety of quahty, caused by the lack of large factories and by small capital; (6) cheap quality, 

 lack of cajiital investiuont, which does not allow the factory to buy machinery with the late.-^t improvements; (c) uncertainty of time 

 of contract. This is also caused by the lack of large factories. A"ll factories which exist to-day are on a small scale, except a few in 

 cotlnn spinning and a few others, and they l)uy their raw materials with the money just got from the sale of goods, and never look 

 forward U) improvements, but seek merely the present small profit, and can not even re[>air machinery. When a large order comes 

 tlu^ merchants can not meet it because there is no factory large enough. The only thing for the merchant to do in this case is to go 

 roimd to several other small factories and get their help, wliich from the difiiculties in finance or other economical circumstances 

 often can not fill their orders at tlie ])roper time. Nor do they care very much about their promi.se?; therefore there is no confidents, 

 for if there comes any higlier bidder for the ordered goods they are easily tempted to sell, (rf) In finished goods they can not follow 

 the fasiii(jns. All sorts of luxurious things have usually a fashion. Without a cultivated taste the manufacturer can not anticipate the 

 <i)iiiiiig fashions abroatl, and therefore can not make any new design, but must weave just according to the foreign order. So to meet this 

 the iiumagcrs or designers ought to read art magazines and newspapers, and go often to the countries with which they deal and study for 

 themsehes. 



<ienera]]y the mode of remedying the above four defects is to estal)lish large factories, put in the latest machinery, employ good 

 managers, keep the firm in good order, contract for sullicient raw materials, and produce the l)est po<ssil)le quality, which then can \ye 

 sold ])y samples. The economic princi])le of the relation between j^roduction and con.«umption is: The more we pnxluce, the chcaj>er 

 we can .'<ell; the larger, therefore, the consumption. An increa«e in the demand provides more hands with work, at higher wages, and 

 con.-ieiniently results in a furtlier increase in the consuming capacity of the nation; and this agnin leads to a further opjx^rtunity for 

 ext'.!i,-i'>n ot' production. The tendency to concentrate business organization finds ex|>re>sion in our country. The Ctovernment liolds 

 an I'li-oiute monojioly in the sale of camplKU- and toltucco in all its forms. The wonl "trust" has not become hateful, and the subject is 

 l)ai>ul!uly di.^cussed. ' Thus tiie con<entration of capital ainl ]>roduction on a large scale will Iw the system of our future. As it is, very 

 many nf'the .'^mailer units have disapi)cared and are all in favor of further amalgamation. The n.»sult of the organization of tnists and 

 tln' e>1al>Iishment of the syndicate system has been to cheapen i)roduction, to control and maintain ]>nifitable prices of the outimt, to 

 give ail vantage to laborers with the greatest po.«sibIe saving of materials, to apply newe.«t machinery and newest technical improvements, 

 autl to improve the (piality of the product in order to get more consumers; for com]>etition allure.'^ by the jirospect of gains, eive^ cunti- 

 deMC(> to tin- jiroducers. Large organizations of capital enable better managers to be ohtained by giving better .silariis. and tni.>< enables 

 llu'se organizations to offer strong inducements to connnerce and to increase the future grealne:^"* of industry and trade. But for the 

 good onUr of tlu' conuuunitv there is need of j)ublic supervision and control. 



There are many agricultural institutions for stiidy and investigation, but there are no in.stitutions for the investigation of indurtn.-. 

 The e^•1al>lishment of nn institution of this kind, which would undoubtedly be of gri'at benefit to manufacturers, is exijected. Germany, 

 for in.'^tauce, lias s]>ent consideraiile money for this puriwse, sliows great improvement. 



The exports of minerals are increasing very raj>idly, as coal, copper, etc. ; they are important product.s of the country, and tlicir 

 laborers would be improved by the lietter system which I have described. Combinations would al!k> In? exixx-tinl in this line. 



