To the political economist of the rigidly orthodox school this important change may afford great satisfaction. According to his theories it is a gigantic step in the right direction, and must necessarily redound to the advantage of all parties concerned. The producer now receives a regular supply of raw material, and regularly disposes of the articles manufactured; and the time and trouble which he formerly devoted to wandering about in search of customers he can now employ more profitably in productive work. The creation of a class between the producers and the consumers is an important step towards that division and specialisation of labour which is a necessary condition of industrial and commercial prosperity. The consumer no longer requires to go on a fixed day to some distant point, on the chance of finding there what he requires, but can always buy what he pleases in the permanent stores. Above all, the production is greatly increased in amount, and the price of manufactured goods is proportionally lessened.
All this seems clear enough in theory, and any one who values intellectual tranquillity will feel disposed to accept this view of the case without questioning its accuracy; but the unfortunate traveller who is obliged to use his eyes as well as his logical faculties may find some little difficulty in making the facts fit into the a priori formula. Far be it from me to question the wisdom of political economists, but I cannot refrain from remarking that of the three classes concerned—small producers, middle-men, and consumers—two fail to perceive and appreciate the benefits which have been conferred upon them. The small producers complain that on the new system they work more and gain less; and the consumers complain that the manufactured articles, if cheaper and more showy in appearance, are far inferior in quality. The middlemen, who are accused, rightly or wrongly, of taking for themselves the lion's share of the profits, alone seem satisfied with the new arrangement.
Interesting as this question undoubtedly is, it is not of permanent importance, because the present state of things is merely transitory. Though the peasants may continue for a time to work at home for the wholesale dealers, they cannot in the long run compete with the big factories and workshops, organised on the European model with steam-power and complicated machinery, which already exist in many provinces. Once a country has begun to move forward on the great highway of economic progress, there is no possibility of stopping halfway.
Here again the orthodox economists find reason for congratulation, because big factories and workshops are the cheapest and most productive form of manufacturing industry; and again, the observant traveller cannot shut his eyes to ugly facts which force themselves on his attention. He notices that this cheapest and most productive form of manufacturing industry does not seem to advance the material and moral welfare of the population. Nowhere is there more disease, drunkenness, demoralisation and misery than in the manufacturing districts.
The reader must not imagine that in making these statements I wish to calumniate the spirit of modern enterprise, or to advocate a return to primitive barbarism. All great changes produce a mixture of good and evil, and at first the evil is pretty sure to come prominently forward. Russia is at this moment in a state of transition, and the new condition of things is not yet properly organised. With improved organisation many of the existing evils will disappear. Already in recent years I have noticed sporadic signs of improvement. When factories were first established no proper arrangements were made for housing and feeding the workmen, and the consequent hardships were specially felt when the factories were founded, as is often the case, in rural districts. Now, the richer and more enterprising manufacturers build large barracks for the workmen and their families, and provide them with common kitchens, wash-houses, steam-baths, schools, and similar requisites of civilised life. At the same time the Government appoints inspectors to superintend the sanitary arrangements and see that the health and comfort of the workers are properly attended to.