The past was another country. Nick Szabo brings us a letter from the early stages of the British Industrial Revolution: the Darbys do the Lord's Work:
Unenumerated: A letter from the industrial revolution: Here's an interesting letter from the dawn of the industrial revolution. It was written in 1775 by Abiah Darby, mother of Abraham Darby (III) and wife of Abraham Darby (II), the son of Abraham Darby (I), who invented the process of smelting iron with coke made from coal. The Darby family were Quakers and produced several early industrialists and engineers. This small letter makes or implies several points that may have been crucial to the growth of industry that makes modern wealth possible:
- The importance of property rights and market prices in maintaining a sustainable balance between the supply and demand of wood. ("woods for charcoal became very Scarce and landed Gentlemen rose the prices of cord wood exceeding high"). Although wood became expensive, there remained a sufficient supply of wood for the buildings, mine works, wagons, rails, etc.
- The ability of people living with sufficient technology and secure property rights to bypass and surpass ecological limitations (in this case substituting coal for wood, and later due to this cheap iron-making process, iron and steel for wood).
- Decentralized money issue. Abiah points out that the remote area of Coalbrookdale, where coal and iron were available, still often operated as a barter economy. Thus apparently Abraham had to either coin tokens or open a bank to issue notes (common during this era) so that the Darbies could pay their workers.
- Darby II's invention of the iron-tracked railroad (improving the productivity of the horses by over six times and precursor to the later steam-powered railroad).
- The ability to securely establish large machine works and lay 20 miles of track out in the boondocks and not have them be torn up by trespassers and used for other purposes or confiscated or taxed into oblivion by local lords. In most of the rest of the world that could not be taken for granted.
- The use of atmospheric pressure (Papin/Savery/Newcomen) steam engines to drain the mines and supply water to the waterwheel pond. (The atmospheric engine apparently wasn't up to the job of directly powering the bellows for the blast furnaces; that came later with the Watt steam pressure engine). Steam engines allowed water to be pumped out of mines at a far greater rate, and thus allowed coal and iron mines to be dug far deeper, creating a large and inexpensive new supply of coal and iron.
The link is a Word document, which I don't recommend opening for security reasons, but I've copied the contents below: http://www.umassd.edu/ir/Resources/MetalandMining/m2.doc
Mrs. Abiah Darby on developments in the Darby ironworks at Coalbrookdale, 1708-1763
Esteemed Friend,
Thy very acceptable favour of the 9th ulto. claim'd my earliest acknowledgments, which I should immediately have made, had not thy kind condescension in taking notice of my late honour'd Husband, and requesting to be inform'd of any circumstance which may be interesting relating him, caused my delay--to recollect what might occur concerning his transactions or improvements in the Manufactory of Iron, so beneficial to this nation. But before I proceed further, I cannot help lamenting with thee in thy just observation, "that it has been universally observed, that the Destroyers of mankind are recorded and remembered, while the Benefactors are unnoticed and forgotten". This seems owing to the depravity of the mind, which centres in reaping the present advantages, and suffering obscurity to vail the original causes of such benefits; and even the very names of those to whom we are indebted for the important discoveries, to sink into oblivion. Whereas if they were handed down to posterity, gratitude would naturally arise in the commemoration of their ingenuity, and the great advantages injoyed from their indefatigable labours--
I now make free to communicate what I have heard my Husband say, and what arises from my own knowledge; also what I am inform'd from a person now living, whose father came here as a workman at the first beginning of these Pit Coal Works. Then to begin at the original. It was my Husband's Father, whose name he bore (Abraham Darby and who was the first that set on foot the Brass Works at or near Bristol) that attempted to mould and cast Iron pots, &c., in sand instead of Loam (as they were wont to do, which made it a tedious and more expensive process) in which he succeeded. This first attempt was tryed at an Air Furnace in Bristol. About the year 1709 he came into Shropshire to Coalbrookdale, and with other partners took a lease of the works, which only consisted of an old Blast Furnace and some Forges. He here cast Iron Goods in sand out of the Blast Furnace that blow'd with wood charcoal; for it was not yet thought of to blow with Pit Coal...
Sometime after he suggested the thought, that it might be practable to smelt the Iron from the ore in the blast Furnace with Pit Coal: Upon this he first try'd with raw coal as it came out of the Mines, but it did not answer. He not discouraged, had the coal coak'd into Cynder, as is done for drying Malt, and it then succeeded to his satisfaction. But he found that only one sort of pit Coal would suit best for the purpose of making good Iron.
These were beneficial discoveries, for the moulding and casting in sand instead of Loam was of great service, both in respect to expence and expedition. And if we may compare little things with great--as the invention of printing was to writing, so was the moulding and casting in Sand to that of Loam. He then erected another Blast Furnace, and enlarged the Works. This discovery soon got abroad and became of great utility. This Place and its environs was very barren, little money stiring amongst the Inhabitants. So that I have heard they were Obliged to exchange their small produce one to another instead of money, until he came and got the Works to bear, and made Money Circulate amongst the different parties who were employed by him. Yet notwithstanding the Service he was of to the Country, he had opposers and ill-wishers, and a remarkable circumstance of awful Memory occurs; of a person who endeavour'd to hinder the horses which carried the Iron Stone and Coal to the Furnaces, from coming through a road that he pretended had a right to Oppose: and one time when he saw the horses going alone, he in his Passion, wished he might Never Speak More if they should Ever come that way again. And instantly his Speech was stopped, and altho' he lived Several years after yet he Never Spoke More!
My Husband's Father died early in life; a religious good man, and an Eminent Minister amongst the people call'd Quakers.
My Husband Abraham Darby was but Six years old when his Father died--but he inherited his genius--enlarg'd upon his plan, and made many improvements. One of Consequence to the prosperity of these Works was as they [were] very short of water that in the Summer or dry Seasons they were obliged to blow very slow, and generally blow out the furnaces once a year, which was attended with great loss. But my Husband proposed the Erecting a Fire Engine to draw up the Water from the lower Works and convey it back into the upper po6ls, that by continual rotation of the Water the furnaces might be plentifully supplied; which answered Exceeding Well to these Works, and others have followed the Example.
But all this time the making of Barr Iron at Forges from Pit Coal pigs was not thought of. About 26 years ago my Husband conceived this happy thought--that it might be possible to make bar from pit coal pigs. Upon this he Sent some of our pigs to be tryed at the Forges, and that no prejudice might arise against them he did not discover from whence they came, or of what quality they were. And a good account being given of their working, he errected Blast Furnaces for Pig Iron for Forges. Edward Knight Esqr a capitol Iron Master urged my Husband to get a patent, that he might reap the benefit for years of this happy discovery: but he said he would not deprive the public of Such an Acquisition which he was Satisfyed it would be; and so it has proved, for it soon spread, and Many Furnaces both in this Neighbourhood and Several other places have been errected for this purpose.
Had not these discoveries been made the Iron trade of our own produce would have dwindled away, for woods for charcoal became very Scarce and landed Gentlemen rose the prices of cord wood exceeding high--indeed it would not have been to be got. But from pit coal being introduced in its stead the demand for wood charcoal is much lessen'd, and in a few years I apprehend will set the use of that article aside.
Many other improvements he was the author of. One of Service to these Works here they used to carry all their mine and coal upon horses' backs but he got roads made and laid with Sleepers and rails as they have them in the North of England for carring them to the Rivers, and brings them to the Furnaces in Waggons. And one waggon with three horses will bring as much as twenty horses used to bring on horses' backs. But this laying the roads with wood begot a Scarcity and rose the price of it. So that of late years the laying of the rails of cast Iron was substituted; which altho' expensive, answers well for Ware and Duration. We have in the different Works near twenty miles of this road which cost upwards of Eight hundred pounds a mile. That of Iron Wheels and axletrees for these waggons was I believe my Husband's Invention.
He kept himself confined to the Iron Trade and the Necessary Appendages annex'd thereto. He was just in his dealings--of universal benevolence and charity, living Strictly to the Rectitude of the Divine and Moral Law, held forth by his great Lord and Saviour, had an extraordinary command over his own spirit, which thro' the Assistance of Divine Grace enabled to bear up with fortitude above all opposition: for it may seem very strange, so valuable a man should have Antagonists, yet he had.
Those called Gentlemen with an Envious Spirit could not bear to see him prosper; and others covetious; strove to make every advantage by raising their Rents of their collieries and lands in which he wanted to make roads; and endeavour'd to stop the works. But he surmounted all: and died in Peace beloved and Lamented by many.









Completely off topic, but for those not sitting right next to a news wire...
Ariel Sharon has been taken into surgury, after suffering a cerebral hemorrhage, having suffered what a doctor on the scene described as "massive" bleeding.
Posted by: kharris | January 04, 2006 at 02:01 PM
The Darbys, like many English capitalists, were Quakers. Is this because they were kept out of the army, the courts, or any profession where they had to swear an oath, and were forced to go into manufacturing, trade and banking, or was there something in Quaker doctrine that lead them to be entrepreneurs?
Similarly, Pennsylvania was the richest American colony by 1776, and Philadelphia next to London was the largest English speaking city in the world. Was this because William Penn give his colony the greatest freedom in the world, and was the first modern real estate promotor to populate his land, because the Quakers were laisse faire capitalists and hardly governed, or because something in Quaker doctrine made them entreprneurs? I don't know where to look for the answers, or perhaps much American economic history remains to be written.
William Rhoads
Posted by: William G. Rhoads | January 04, 2006 at 02:44 PM
A series of inventions can lead to major economic growth if the institutional framework is conducive. I wonder if anyone has compared at a micro-level industrial units in U.K. and Continental Europe (say France) at the dawn of industrial revolution. Once similar technology was available to both sets of firms were British firms able to capitalize on their growth opportunities better than their Continental counterparts?
Posted by: Arun Khanna | January 04, 2006 at 03:05 PM
William, the Quakers also had their own schools which neglected greek amd latin for maths and physics and chemistry.
It is of interest to me that they were still called "sleepers", in my youth.
Posted by: eric bloodaxe | January 04, 2006 at 04:30 PM
For the influence of Quaker culture, a general source is "Albion's Seed" by David Hackett Fisher. The Quakers were associated with Northen England and the Puritans with East Anglia. The culture of both groups was egalitarian and more hospitable to large settlements, economic specialization and trade.
I'm descended from the other two groups, Border Scots and Gentry, so I know more about why they were culturally incompetent to foster a manufacturing economy. The Virginia ideal was to own your own plantation with your own carpenters, shoe-makers etc. There were few large settlements. There wasn't enough currency to support a lot of trade, so people ran up debts that were rolled over year after year. The main path to wealth for ambitious young men was growing tobacco, or perhaps the law (both activities being a good basis for land speculation). They made some worthwhile contributions in the realm of political ideas, but came up with no significant inventions or commercial innovations that I'm aware of.
In passing, I note that the women of the gentry were intelligent and sometimes outspoken, but I don't think there's an example of correspondence from the period in which one of them produced anything like Mrs. Darby's letter for vigor, original opinion and expository organization.
Posted by: Roger Bigod | January 04, 2006 at 04:45 PM
On Quakers and industry -- many of the major confectionery firms were Quaker in origin: Rowntrees and Terrys (both of York) at least, and maybe Cadbury as well. No idea why.
One suggestion I have seen regarding their commercial success is that at that point the ability to make reliable verbal arrangements with each other was easier for groups with a high trust level, and the Quakers had that.
Posted by: Tom | January 04, 2006 at 07:38 PM
Many early chocolate makers were Quaker families for a reason at odds with the idea of the market economy. As part of a humanitarian effort, they co-operated in introducing cocoa int West Africa as an alternative cash crop to slaves, and then they worked hard to market it. The fact that it turned out commercially profitable was serendipitous.
Much of the fuel for early mine pumping engines was essentially free; there was a fair amount of byproduct scrap coal that couldn't be shifted profitably but could be burned locally.
It wasn't necessary to set up quasi-money, though it was convenient; this was before the days of the Truck Acts, so it was still practical to pay workers in truck whenever there was a cash flow problem. (And, that early, the system wasn't iniquitous since the truck could still be on-bartered.)
The success of railways did NOT depend on solid property laws, but rather the reverse. It was the railway builders who were attempting trespass, and it was unusual to find sufficient available property for the use of private lines through conventional means. Instead, the usual parliamentary jobbery procured special Acts of Parliament for the benefit of the railways, over the wishes of the landowners unless they were very well connected politically (like Oxford University, which is why the railway to the west bypassed Oxford in favour of Abingdon). Even before this overriding of property rights, surveys were made by trespassing; the elder Stephenson was notorious for trespassing to do this.
Posted by: P.M.Lawrence | January 05, 2006 at 01:15 AM
The comparative success of Pennsylavania and Philadelphia in the 18th century was because the local Quakers were rogues and swindlers. They took too much land for Philadelphia by violating Indian customs for measuring. They ripped off William Penn over his retained rights, so gaining a windfall capital boost. And they routinely operated as receivers of pirate booty, most importantly in regard to pirate operations around Madagascar.
Posted by: P.M.Lawrence | January 05, 2006 at 01:19 AM
P.M L.
Nefarious Quakers? Goody! The kids are gonna love this. Any sources?
Posted by: kharris | January 05, 2006 at 06:25 AM
P.M. Lawrence
It's not saying much but the Quakers of Pennsylvania dealt with Native Americans far more fairly than any other group of Europeans in North or South America. This is reasonably well documented in most histories of Pennsylvania and in the active role Quakers took in opposing violence against the native population (e.g. by the Paxton Boys prior to the Whiskey Rebellion).
Posted by: Michael Carroll | January 05, 2006 at 07:52 AM
Brad, I believe this is related to this post from the industrial revolution as well as the mining tragedy of two days ago.
I would truly like to understand what a progessive economist such as yourself thinks will happen to Occupational and Public Safety Investigatory and Regulatory Organizations like MSHA, OSHA, the FAA, NHTSA, etc. in a world of free trade, and a world where having these safety regulations is perceived as adding costs and reducing profit compared to companies that can produce similar products in countries that do not have such safety policies in place.
All else being equal, what happens to worker and public safety? I am not asking about wages, just worker safety.
Posted by: jerry | January 05, 2006 at 09:56 PM
Perhaps we're putting the cart before the horse. Maybe cultural settings which, for reasons of their own, were friendly to individual initiative and innovation, and skeptical of hierarchy and coercion, were receptive to both Quakers and industry. Or, to go even further, perhaps industrialism fostered cultures friendly to individual initiative and innovation and skeptical of hierarchy and coercion, which laid the basis for how well Quaker theology was received among already industry-minded cultures.
Posted by: Julian Elson | January 05, 2006 at 10:37 PM
Th Darbys obviously thought property rights and the products of labour and capital were important, even if they cut corners on rights over land. But note their relaxed view of intellectual property rights: "Edward Knight Esqr a capitol Iron Master urged my Husband to get a patent, that he might reap the benefit for years of this happy discovery: but he said he would not deprive the public of Such an Acquisition which he was Satisfyed it would be; and so it has proved, for it soon spread, and Many Furnaces both in this Neighbourhood and Several other places have been errected for this purpose."
Compare Silicon Valley in its glory days. If you want Many Furnaces, don't listen to the IP engrossers.
Posted by: James Wimberley | January 06, 2006 at 07:25 AM
Too right, it's not saying much that Pennsylvania Quakers preferred to cheat the natives than to use violence. They did the same sort of trick as the founders of Carthage did to get more land than the sellers thought they were agreeing to; they bought as much land as they could go round (understood by the Indians to mean walking) while smoking a pipe. Instead they ran (I suspect in relays). Source: the materials Robert Graves used in his Sergeant Lamb historical novels.
As for ripping William Penn off, a while back it was described at Lew Rockwell's site, maybe accessing the mises material, presenting it as an example of righteously not paying an absentee landowner but setting up independently for themselves (leaving out the fact that Georgists often leave oot, the role of the landlords in the tenants being there in the first place).
The pirate related activity is fairly well attested, and shows up in, e.g., how rice first reached the colonies - it was the Madagascar strain, landed at Philadelphia. You may have to search further for this. It is known that many of the pirate enclaves on Madagascar had people of colonist stock, so the only question is where they came from and who they dealt with.
On top of all that, I have heard that Philadelphia ordered a bell or some such from the UK and never paid for it, and that it is there to this day. You can check out its provenance - I believe it's still there.
A lot of liberty amounts to taking liberties.
Posted by: P.M.Lawrence | January 07, 2006 at 05:51 AM