Second Shetland Truck System Report Part 7

There are, of course, differences in the readiness with which cash is advanced by the various merchants, as the returns made to me show. Thus there is unanimous testimony to the fact, that Mr.

John Bruce, jun., whose 'bondage' and prices were most loudly complained of, never refuses money advances before settlement, when asked, to the full amount of the fish at a man's credit, and, in the case of a good man, to any reasonable amount he may ask for.

In some places, advances are mostly made at the settlement of the previous year, to men who have got as much money as they require.

[L. Smith, 4457, 4486; H. Gilbertson, 4533; G. Leslie, 4629; R.

Halcrow, 4676; A. Leslie, 4885; G. Williamson, 4905; J. Bruce, Jun., 13,322; G. Irvine, 13, 162; J.L. Pole, 9391.]

The effect of the long settlements in compelling men to deal at the merchant's shop is very clear to the men themselves, although they do not appear to regard it as a great hardship, except where the goods at a particular shop are of bad quality or high price. William Goudie says:

'4298. Are you under any obligation to buy your goods from Mr.

Bruce's shop?-Not strictly speaking.'

'4299. What do you mean by "not strictly speaking?"-In one sense we are not bound, yet in another sense we are bound. There is no rule issued out that we must purchase our goods from there; but as we fish for Mr. Bruce, and have no ready money, we can hardly expect to run accounts with those who have no profit from us.

That confines many of us to purchase our goods from his shop.'

.....'We cannot expect to run a heavy account with a man who has no profit from us, when we are uncertain whether we will be able to clear that account or not. Therefore, as a rule, we do not run heavy accounts for such things as meal, for instance, when our crops are a failure, with any man except Mr. Bruce.'

[Wm. Goudie, 4928, 4307.]

[L. Smith, 4480, 4488.]

And another witness says:

'4669. But if the prices are so much higher at the Boddam shop than elsewhere, why do you go there when you say you are not obliged in any way to take goods from the Boddam shop? Why do you not go to Gavin Henderson's for them?-I am obliged to go to the Boddam shop and take my goods there if I have no money in my pocket to buy them elsewhere.'

'4670. Does that often happen?-Perhaps not very often with me, but it happens as a general thing among many of the men. I believe there are as many men who have to go to Mr. Bruce's store and take their goods there, in consequence of the want of money to pay for them at other places, as there are who can go and open accounts with other merchants and pay them yearly'

[R. Halcrow, 4669.]

MEN MUST DEAL AT CURER'S SHOP

The main reason why men must deal with the fish-curer is, that most of them have neither money nor credit elsewhere. The fish-curer is secured in the fisherman's services for the fishing season, and holds his earnings in his hands for a year. He cannot lose by him, unless he voluntarily allows his 'out-takes' to exceed his earnings. But other shopkeepers have no such security; indeed they know that the man is already engaged to fish for a rival shopkeeper, and that the latter will not only pay himself for his possibly large account, but will also retain the man's rent, leaving for other creditors at best but a small balance, and not always a balance, of his earnings. Add to this that in bad seasons many fishermen depend on the merchants for larger advances than one season's fishing can repay, and it becomes apparent that the attraction to the merchant's shop is not only the possibility of present credit, but grat.i.tude for past favours, and the certain expectation of having to ask for similar favours in future. It is quite true, as Mr. Irvine says, that 'one great drawback on a Shetland business is fishermen's bad debts, and our chief study is to limit the supplies when we know the men to be improvident; but it is quite impossible to keep men clear when the fishing proves unsuccessful.' And there is evidence that in bad seasons, such as 1868-69, merchants are expected to advance, and do advance, large amounts in meal and other necessaries, and in cash for rent.

Where such advances are made, the fishermen are of course bound, sometimes by a written obligation, to fish for their creditor next season.

[M. Johnson, 7909, 7921, 7928; James Brown, 7977; C.

Georgeson, 12,126; James Hay, 5401; W. Irvine, 3623, p. 83b 3793; A. Sandison, 10,016; J. Hay, 10,540; A.J. Grierson, 15,089; W. Irvine, 3796.]

The habit of dealing on credit at the fish-curer's store is so inveterate, that even men who have means to buy their provisions, etc., frequently begin the account for the year at the very time of settlement. Mr. Grierson says:

'15,096. But do you think a man would stand permanently in arrear at settlement with you if he had money in the bank?-No; but if I settle with him in January, I believe he would go and deposit a 10 note from that year's settlement, and begin a new account with me, and get a new boat, and let it stand to his credit until next year.

But he would never think of having a permanent running balance with me if he had money of his own in bank.'

'15,097. Is it a general thing among the men to go and deposit some of their money in bank and begin a new account with you?- Yes, I believe they do that for a single year. They would be great fools if they did not. They keep a pa.s.s-book, if they choose, with, the shop, and they would be no better off if they were to pay for their goods in money.'

[A.J. Grierson, 15,096.]

[Page 17 rpt.]

'Plenty of them,' says Mr. Peter Garriock, speaking of Faroe fishers, 'are able to live on their own resources, but still they come for their supplies;'and he gives an example, which is not a solitary one. Mr. John Harrison says:

... 'The system has obtained so long, of fishermen requiring advances, or rather taking advances, that they cannot see, or do not understand, why they should take their own money in order to buy the necessary supplies before they proceed to the fishing. I have no doubt that they have also this idea, that the fish-curer takes a sufficient profit upon the goods supplied, and they consider they have a right to keep their money and not to pay for them until the end of the season.'

[P. Garriock, 15,223; W.B.M. Harrison, 15,724; John Harrison, 16,511]

It is of course a result of this system, that a large shop business, in many districts, can be carried on only by one who has a fish-curing establishment. In Lerwick and in Walls, in one case in Dunrossness (Gavin Henderson), and perhaps in Unst, some shops have succeeded without the aid of fishing, but always under difficulties. Fish-curers have also attempted to confirm or extend this monopoly by artificial means, such as the prohibition of rival shops,-as in Burra, Whalsay, Unst, Northmaven, Fetlar , and Yell.

[T. Williamson, 9463; G. Georgeson, 12,111; A. Sandison, 10,133.]

It has thus come to pa.s.s that there is almost nowhere in Shetland, out of Lerwick, a shop of any size not belonging to a fish-curer. I attempted to ascertain the views of various small shopkeepers, struggling to make a trade, with regard to their larger neighbours. Sometimes these men did not understand the disadvantage under which they are placed; or they may have had views of eventually rising by the same means which have led their compet.i.tors on to fortune; or, as there was sometimes reason to suspect, they may have been put into business by a larger merchant to sell his goods on commission, or have been otherwise indebted to him or dependent upon him. Whatever may be the cause, shopkeepers of this cla.s.s are not so sensitive, or not so communicative, on this point as might be expected. One or two, however, were found independent enough, or intelligent enough, to tell how their business is hampered and confined by the local custom, which thirls the men to the shops of the fish-merchants. Mr. Georgeson, a respectable shopkeeper in the parish of Walls not engaged in fish-curing, says that men who sell their fish green are necessarily less frequent customers of his than those who cure their own fish. He thinks that the skipper generally influences his men to take their supplies from the shop of the merchant, or at least that the men are apt to be guided to do so by his example; while his neighbour, Mr. t.w.a.tt, thinks 'there is a little bribe which the skippers get for seeing that the men go to the shop.' I give this, however, merely as an opinion by a shrewd but not disinterested local observer. The force of custom, the want of ready money, and the other influences already mentioned, are quite sufficient to account for the great amount of this kind of Truck which exists in Shetland, without having recourse to the supposition that skippers or others are bribed to induce men to buy goods at the employer's shop.

[G. Georgeson, 12,122; J. t.w.a.tt, 12,200; R. Henderson, 12,860.]

ARGUMENTS FOR PRESENT SYSTEM

I have said that some of the employers are prepared with arguments to vindicate the system of annual settlements. The favourite argument is, that it affords the men, or at least a certain cla.s.s of them, protection against their own improvidence. For instance, Mr. P.M. Sandison says:

'5235. Does not that system of long settlements induce people to be a little careless about their money, and improvident?-There are a certain cla.s.s who, if they had money, would spend it. That cla.s.s are pretty well looked after by the fish-curer; they are only allowed advances in such small proportions as enable them to get through the year, and to be as little in arrear as possible at the end.

If these same parties had the money in their hands, I am certain it would not last them so long as it does in the fish-curer's hands.'

'5236. That is to say, he will only allow them certain amount of supplies from the shop?-Yes, so much a week or a fortnight.'

'5237. Or cash if they want it, but to a limited extent?-Yes; I should think that cash would be given to a free man.'

'5238. But not to a bound fisherman?-Not unless it was for a necessary purpose-to purchase something, for instance, which the merchant cannot supply.'

[P. Smith, 986; L.F.U. Garriock, 12,372; W. Irvine, 3641, 3826; J.

Anderson, 6707; Rev. J. Sutherland, 7518; A. Harrison, 7664; T.

Gifford, 8102-8124; D. More, 9634; A. Sandison, p.248 f.n. to 10,205, 10,483; J. Spence, 10.559.]

The members of the firm which holds the lands and fishings in Unst urged strongly that only a large concern like theirs would have the interests of the men in view as well as their own, and, by possessing a monopoly and restricting the men's credit, keep them free from debt. With this view they have made war against small shops in that island. The returns show that they have not yet succeeded in keeping the men free from debt.

[A. Sandison, 10,494; J. Spence, 10,559.]

The sort of partnership that exists between merchant and fisherman, the latter being paid in proportion to the results of the whole year's transactions, is the chief excuse for delaying settlements. The views of the merchants on this point may be seen from the following pa.s.sage in the examination of Mr.

Robertson, manager for Mr. Leask, one of the chief merchants in Shetland. Mr. Robertson came forward with other [Page 18 rpt.]

merchants for the purpose of denying the Report of Mr. Hamilton to the Board of Trade, and the other statements made in the previous inquiry:-

... 'Then I deny that the truck system in an open or disguised form prevails in Shetland to an extent which is unknown in any other part of the United Kingdom. I have no proof to offer in contradiction of that statement; I simply deny it, and I don't believe it.'

'13,698. What is the population of Shetland?-About 30,000.'

'13,699. Of these, how many do you suppose consist of fishermen and their families?-I should say that perhaps about three-fourths of them are fishermen and seamen, and their families.'

'13,700. I suppose the seamen are mostly the younger members of the families?-Yes.'

'13,701. Is it not the case that almost every fisherman has an account with the merchant to whom he sells his fish?-Yes; but I don't consider that to be truck at all.'

'13,702. That account is settled at the end of the year, part of the value of the man's fish being taken out in supplies of goods, and the balance being paid in cash, if any balance is due?-Yes. He simply has an account, in the same way that all the retail merchants in Shetland and everywhere else have to deal with wholesale merchants, and have to pay them.'

'13,703. Do you suppose Mr. Hamilton meant anything else than that by saying that the truck system prevailed in Shetland?-I am not bound to know what he meant, but I deny his statement.'

'13,704. I presume he merely intended to state that a great part of the earnings of every fisherman, as well as of some other people in Shetland, were really settled by taking out goods from the employers. Do you suppose he meant anything else than that?-I am afraid he did. I am afraid he meant to convey the idea that the men got nothing but goods when they should have got money.'

'13,705. Is it not the case that many of them do get nothing but goods?-That is their own fault.'

'13,706. Still it may be the fact, although it is their own fault?-It may be the fact, because the men earn very little, and they require supplies of provisions and clothing; and no person would give them such supplies unless the person who employs them. But I don't think that is truck, in the common meaning of the word.'

'13,707. Then the difference between you is rather a dispute about the meaning of the word "truck" than as to the actual state of matters in Shetland?-I would not even admit that. I don't think there is any room for complaint about the state of matters in Shetland, as a rule.'

'13,708. I suppose you mean that the fishermen have a certain advantage by getting advances of goods? -Of course they have.'

'13,709. But you do not mean to deny the fact that they do get such advances when they require them?- Of course I don't deny that; but the shipowner or curer runs a great risk in advancing goods on the security of fish which have to be caught. It is a very good thing in a good season, but in a bad season he may come rather short.'

'13,710. On the other hand, he does not pay for the fish that are caught until six or seven months afterwards?-He does not realize them until then. None of the fishcurers get one penny for their fish until about the end of December, except perhaps for a very small parcel which they may send to a retail dealer in the south.'

'13,711. That may be quite true; but is any employer of labour in a better position?-Yes.'

'13,712. A farmer, for instance, pays his labourers weekly or fortnightly, as the case may be, and he very often does not realize his crops until many months afterwards?-That is true; but he is selling his b.u.t.ter and milk and cattle.'

'13,713. Still it does not follow that he is paid for them at the time?-Cattle, I think, are generally paid for in cash.'

'13,714. But there are other producers, such as manufacturers, who are only paid by long-dated bills, generally at three months?-Yes; but here the merchant does not get his return until the end of twelve months. The fish-merchant or curer begins to advance in the beginning of January, and he continues to advance until the end of December, without getting any money back; so that he lies out of his money for twelve months. He neither gets money from the party to whom he advances the goods, nor from the party to whom he sells his fish.'

'13,715. Do you think that is the main justification for the long settlements which are made with the men?-Of course it is.'