necessity for capitalist production, that after a period of growth and transition, even its crowning success, the factory system based on machinery, grinds down more workpeople than on its first introduction it throws on the streets.¹⁴⁶

It is true that in some cases, as we saw from instances of English worsted and silk factories, an extraordinary extension of the factory system may, at a certain stage of its development, be accompanied not only by a relative, but by an absolute decrease in the number of operatives employed. In the year 1860, when a special census of all the factories in the United Kingdom was taken by order of Parliament, the factories in those parts of Lancashire, Cheshire, and Yorkshire, included in the district of Mr. Baker, the factory inspector, numbered 652; 570 of these contained 85,622 power-looms, 6,819,146 spindles (exclusive of doubling spindles), employed 27,439 horse-power (steam), and 1,390 (water), and 94,119 persons. In the year 1865, the same factories contained, looms 95,163, spindles 7,025,031, had a steam-power of 28,925 horses, and a water-power of 1,445 horses, and employed 88,913 persons. Between 1860 and 1865, therefore, the increase in looms was 11%, in spindles 3%, and in engine-power 3%, while the number of persons employed decreased 5 1/2%.¹⁴⁷ Between 1852 and 1862, considerable extension of the English woollen manufacture took place, while the number of hands employed in it remained almost stationary, showing how greatly the introduction of new machines had superseded the labour of preceding periods.¹⁴⁸ In certain cases, the increase in the number of hands employed is only apparent; that is, it is not due to the extension of the factories already established, but to the gradual annexation of connected trades; for instance, the increase in power-looms, and in the hands employed by them between 1838 and 1856, was, in the cotton trade, simply owing to the extension of this branch of industry; but in the other trades to the application of steam-power to the carpet-loom, to the ribbon-loom, and to the linen- loom, which previously had been worked by the power of men.¹⁴⁹ Hence the increase of the hands in these latter trades was merely a symptom of a diminution in the total number employed. Finally, we have considered this question entirely apart from the fact, that everywhere, except in the metal industries, young persons (under 18), and women and children form the preponderating element in the class of factory hands.

Nevertheless, in spite of the mass of hands actually displaced and virtually replaced by machinery, we can understand how the factory operatives, through the building of more mills and the extension of old ones in a given industry, may become more numerous than the manufacturing workmen and handicraftsman that have been displaced. Suppose, for example, that in the old mode of production, a capital of £500 is employed weekly, two-fifths being constant and three-fifths variable capital, i.e., £200 being laid out in means of production, and £300, say £1 per man, in labour-power. On the introduction of machinery the composition of this capital becomes altered. We will suppose it to consist of four-fifths constant and one-fifth variable, which means that only £100 is now laid out in labour-power. Consequently, two-thirds of the workmen are discharged. If now the business extends, and the total capital employed grows to £1,500 under unchanged conditions, the number of operatives employed will increase to 300, just as many as before the introduction of the machinery. If the capital further grows to £2,000, 400 men will be employed, or one-third more than under the old system. Their numbers have, in point of fact, increased by 100, but relatively, i.e., in proportion to the total capital advanced, they have diminished by 800, for the £2,000 capital would, in the old state of things, have employed 1,200 instead of 400 men. Hence, a relative decrease in the number of hands is consistent with an actual increase. We assumed above that while the total capital increases, its composition remains the same, because the conditions of production remain constant. But we have already seen that, with every advance in the use of machinery, the constant component of capital, that part which consists of machinery, raw material, &c., increases, while the variable component, the part laid out in labour-power, decreases. We also know that in no, other system of production is improvement so continuous, and the composition of the capital employed so constantly changing as in the factory system. These changes are, however, continually interrupted by periods of rest, during which there is a mere quantitative extension of the factories on the existing technical basis. During such periods the operatives increase in number.. Thus, in 1835, the total number of operatives in the cotton, woollen, worsted, flax, and silk factories of the United Kingdom was only 354,684; while in 1861 the number of the power-loom weavers alone (of both sexes and of all ages, from eight years upwards), amounted to 230,654. Certainly, this growth appears less important when we consider that in 1838 the