Page:The Economic Journal Volume 1.djvu/274

 252 London, promoted by the Manchester, Sheffield, and Lincolnshire Railway, will, it is calculated, tend to double the production of coal in Derbyshire, Nottinghamshire, and part of Yorkshire.

One of the main objects of the proposed east and west coast line is to give an outlet on the west coast to the inland coal districts. Mr. Arnold Lupton, of the Yorkshire College, in his evidence given before the Committee of the House of Lords on the Ship Canal, pointed out that Yorkshire steam coal could not at the present time compete with Welsh coal, owing to the cost of carriage to Liverpool. He estimated that at Manchester the coal could be put on board vessels in the Ship Canal at a price that would at once secure a market. Other witnesses gave similar evidence. It may of course be urged that the above increase in transit facilities and the consequent development of new coal-fields are entirely independent of any reduction in hours. This may be admitted. But the fact is all-important in discussing the probability of a reduction in hours reducing production and raising the price of coal. Assmuing the demand to be unchanged, the increased output from the new coal-fields will tend to neutralize any reduction due to decreased hours. It may be said, however, that if hours are not reduced, the extra-production of new fields will cheapen coal, and therefore the consumer will gain more benefit than if hours were not reduced. But on the other hand the lower price of coal may prove unremunerative to the producer, and he may at once contract the supply by working his mines fewer days in the week. So that a reduction of hours might be brought about owing to the opening oi the new coal-fields. Price always tends to affect supply, and any rise in price due to the shortening of the hours of labour tends to lead to an increase in the supply. In 1871 the price of steam coal f.o.b. at Cardiff was 10s. 6d.; in 1872, 15s.; and the supply rapidly increased. In 1873 the price was 23s., in 1873 and in 1874 16s. 16d.; whilst in 1876 it was 10s. 3d. This great fall was due partly to the falling of in the demand and partly to the great increase in the production of coal. The high prices of 1890 have also led to an increase in the supply, with the result that with a slight falling off in the demand prices are tending to fall rapidly. Prices in the coal trade usually fall and rise rapidly. One explanation of this circumstance is that