Chapter III: Front Matter (3)

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 class 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 class who, if they had money, would spend it. That class 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 passage 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 butter 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.'

The real or imaginary necessity under which the men are placed, of dealing at the merchant's shop, is demonstrated by their taking meal and other bulky articles a distance of many miles to their own houses, although there are shops nearer home where they could be purchased of as good quality, and it would seem sometimes better and cheaper. Thus James Hay says:

'5343. Do you deal at his shop for all your provisions and your purchases of cotton and other things?-I do for the principal part of what I need, but not altogether.' '5344. How far do you live from Mr. Adie's nearest shop?-About 71/2 miles; his shop is at Voe.' '5345. Do you always go there for what you want?-Yes; generally I do that, unless sometimes when I am needing some small things, I may go to another: but I am not bound to go to his shop unless I choose to go.' '5346. Then why do you go so far?-Because I generally fish to Mr. Adie, and I have the greatest part of my dealings with him. I have not been accustomed to shift very much, unless it might be an inconvenience to me, and sometimes I have gone to another shop.'. . . '5399. Are you under any obligation to go to Mr. Adie's shop for the goods you want in the course of the year?-None that I am aware of.' '5400. You have never been told it of course; but is it a great deal more convenient for you to go there than to deal at another shop?-No; it is not more convenient. I could go to a shop somewhat nearer; but still I don't think I would be any better; and as it has always been my custom to go there, I just continue to go.' '5401. Is it only because it is your custom to go, or is it because you are in the way of delivering your fish to Mr. Adie, that you go to his store?-Mr. Adie has been very obliging to me many a time, by helping me when I could not help myself, and therefore I always felt a warm heart towards him, and went to his store.' '5402. But is it the way with the fishermen here, that they go to the shop of the man that they sell their fish to?-I am not able to speak to that except for myself.' '5403. Do you not know what your neighbours do? -It depends on the circumstances that my neighbours are in. If they are indebted to the man they are fishing to, of course they will go to that man, and perhaps have very little to go to him with.' '5404. Are those neighbours of yours who are so indebted also likely to engage to fish for the same the merchant during the following season?-Yes. When a man is short of money, and has not enough with [Page 19 rpt.] which to pay his land rent, he may go to the man he is fishing to, and he will help him with what he requires; but the understanding in that case is, that he will serve him at the fishing for the rising year. That is generally the way it is done.' '5405. Do you mean that when a man gets advances at a merchant's shop, it is understood that he must fish to him in the coming year?-Yes; that is generally understood.'

[James Hay, 5352 etc.; W. Green, 5860 (Voe to Sullom); W. Blance, 6057, 6118 (Voe to Ollaberry); G. Scollay, 8417; J. Robertson, 8454 (Muckle Roe to Hillswick); J. Johnston, 9552 (Voe to Burravoe); T. Robertson, 8590.]

So John Twatt, a merchant, says:

'12,210. Is it not the fact that men who live near you do go to Reawick for supplies, although it is much farther away?-Yes.' '12,211. And although it is inconvenient?-Yes, it is inconvenient. They could do much better by coming to my shop, which is next door to them, and they could get as good articles at the same price as they can at Reawick.' '12,212. How far is it from your place to Reawick?-I think it is about 10 or 12 miles.' '12,213. When the men go there for meal or other supplies, are these supplies brought across the country?-Sometimes they are brought by boats, and sometimes round by the rocks.'

BOATS AND FISHING MATERIALS.

Advances by the fish-curer to fishermen, in the form of boats and fishing materials, form a very material portion of the debits in the men's accounts. For the most part the boats used in the ling fishing belong to the men. It is generally understood that when a crew gets a new boat, it is to be paid up in three years. Sometimes a good fishing enables them to pay it the first year; more frequently the payment extends beyond the three years-generally for five fishing seasons. The price of the boat is charged against the crew, which has a company account in the merchant's books, and they are labourers jointly and severally liable for the whole. When a boat is furnished, it is always understood that the men are to continue to fish for the merchant who furnishes it until the whole price is paid; and this of course constitutes a bond over the men for three or more years, as the case may be. Sometimes hire is charged for the boat, or for the boat and lines. A new boat, ready for sea, costs £20; if supplied with new lines, the whole cost will be from £35 to £40. The men agree to pay £6 as hire for boat and lines, or £2 to £3 for the boat, for the period of the summer fishing. In Yell and other places, the merchant, for this hire, undertakes the risk of the whole. On the west coast of Shetland, the rate charged as hire and the amount of the annual instalment of the price of the boat and lines appear to be the same; and the lines, if lost, are understood, it is said, to be at the risk of the men in both cases, which is an inversion of the ordinary rule of law in location. It is generally said that little or no profit is derived by merchants from boat hires or the sale of boats. In some places, however, those who are anxious to get into business make deductions from the boat hire; in order to get men to agree to fish to depending entirely for their profit on the fish and goods sold. Hence it may be inferred, either that the hires charged are sufficient to remunerate the merchant for his outlay and risk, or that the profits made from the fish and goods sold are so large as to allow of this bonus being given.

[W. Irvine, 3838; T.M. Adie, 5607; T. Tulloch, 12,960; G. Irvine, 13,272; O. Jamieson, 13,396; P.M. Sandison, 5206; T.M. Adie, 5610; W. Pole, 5881, 5890, 5953; D. Greig, 7125, 7153, 7209; L. Williamson, 9092; John Laurenson, 9856; T. Tulloch, 12,958; A. Johnson, 14,933; T.M. Adie, 5638, 5642; P. Peterson, 6808; A. Sandison, 10,133; C. Nicholson, 11,950; L. Williamson, 9092; T. Williamson, 9514.]

With regard to lines and hooks, and such things as the men require for the fishing, they are bound or expected at most places to buy them from the merchant for whom they fish.

[J. Robertson, 8454; P. Blanch, 8717.]

Turning from the debit to the credit side of the account between the curer and the fisherman, the most important branch of the latter is the price of the fish. This is fixed in Shetland only when the annual sales of cured fish have been effected, <i.e.> in September or October. The understanding is that the men shall get the current price. This is not ascertained in any formal way; but as there is little difference between the prices obtained by the various curers, each calculates for himself how much he can afford to give to the crews for the green fish, and pays accordingly. There is always, of course, some knowledge, more or less vague and general, of the prices obtained and given by other curers, and there may be a consultation of some kind between the leading merchants. In some cases, curers, especially those who are in a small way, wait until the leading merchants have settled with their men, and thus avoid questions with their men. In all cases the men hear how much their neighbours have got for their green fish; and it may be supposed that there is sufficient competition for men to ensure that the highest possible sum will be given. The fishermen themselves, however, do not seem to be satisfied of this, and there is an impression among some of them that 'the current price' of green fish is fixed by arrangement among the merchants at a lower rate than they might afford. This belief has originated, or has been encouraged, by the fact that the dealers of Cunningsburgh, in Sandwick parish, have for some years paid considerably more than 'the current price.' In 1871, the usual payment to fishermen was 8s. per cwt. of wet fish, which was thus ascertained: 21/4 cwt. of wet fish are calculated to produce [Page 20 rpt.] cwt dry. The current price of dry fish was 23s. per cwt.; cost of curing is usually estimated at 2s. 6d. per cwt. dry (or by Mr. Irvine at 3s.). Thus:-

Price of 21/2- cwt. wet ling, at 8s., 18s. 0d. Cost of curing, at 2s. 6d., 2s. 6d. Merchants' profit and commission, 2s. 6d., 2s. 6d. Total, 23s.

or about 11 per cent.* Merchants say that the cost of curing is actually greater than 2s. 6d. per cwt., and that their profit has to cover not only the risk of bad debts and insurance, but likewise a loss upon boat hires and sales, which never remunerate. Fishermen, on the other hand, assert that curing never costs so much as 2s. 6d. per cwt.; and they appeal, in support of this, not only to their experience in curing their own fish, but to the higher rates paid by Messrs. Smith & Tulloch in Sandwick parish The reply, as regards these merchants, is that they sell to retail merchants direct, and thus save profit of the middlemen or wholesale purchasers; but there is evidently a feeling of irritation among other fishcurers, because they have broken in upon the practice of paying a uniform price throughout the islands. A similar question with regard to the cost of curing has been raised in the Faroe fishing.

[L.F.U. Garriock, 12,581; W. Irvine, 3742; J.L. Pole, 9423; J. Bruce, jun., 13,332; J. Flawes, 4919; A.J. Grierson, 15,105; L. Williamson, 9085; A. Sandison, 10,154; L. Williamson, 9097; T. Williamson, 9515, 9536; L. Mail, 662; R. Halcrow, 4694; G. Blance; 5561; A. Sandison, 7062; J. Nicholson, 8721; J. Flawes, 4990; J.S. Houston, 9673; W. Irvine, 3623; W. Pole, 5882 sqq.; J.S. Houston, 9698; A. Sandison, 10,125; W. Robertson, 13, 646; L.F.U. Garriock, 12,565.]

Some men complain because they do not know what they are to get for their fish and that they 'work away as if they were blind;' but it is said on in a few cases where a price has been fixed at the beginning of the season and the price that has risen, the men have grumbled, and the curer has been obliged to pay the higher current price in order to retain the future services of the men. There is not, however, sufficient evidence to justify the conclusion that Shetland fishermen would, as a body, resent a merchant's adherence to a bargain which on other occasions must turn out to be a favourable one for themselves and a losing one for him. If there is any advantage in the present system, it is, as the Rev. Mr. Fraser points out, on the side of the fisherman, who is less able than the merchant to foresee the probable course of the market, and who, if the suggested change were adopted, would have to take, in the run of cases, such a price as the merchant might judge safe for himself.

[James Hay, 5375; A.J. Grierson, 15,081; P. Garriock, 15,228; J. S. Houston, 9862; A. Sandison, 10,009; Rev. J. Fraser, 8071, but see P. Blanch, 8546.]

*CURERS' PROFITS.

Mr. Irvine (3623) says the prices of last year leave only 40s. per ton to the curer, out of which he has to pay store rent, weighing, skippers' fees, gratuities to fishermen, and to meet loss by small and damaged fish, and of interest and risk. The total quantity of cod, ling, and hake landed from open boats and cured in Shetland in the year ending 31st December 1871, according to the returns made to the Fisheries Board, was 46,391 cwt. If we suppose that the expenses which are to be paid out of the fishcurers' 2s. per cwt. amount to 6d. per cwt., there remains a sum of £3479, 6s. 8d., as the total profit earned by thirty-seven fish-curers and fish-curing firms. If we suppose that these expenses absorb 1s. of this surplus, then the total profit amounts only to £2319, 11s. It may be observed, however that other sources of profit are open to these fish-curers. All of them have shops, in which the aggregate credit sales to fishermen amounted in the year 1871 (from settlement to settlement) to probably £14,000. A considerable amount of cash transactions, and sales of goods for butter and eggs, also take place at their counters; and many of them deal in cattle and kelp, and are engaged in the Faroe fishing. With all these sources of income, however, it is difficult to believe that no larger direct profit per cent. is earned from so complicated and hazardous a business as the ling fishing.

STOCK SOLD TO MERCHANTS

Next to fish, cattle sold form the largest and most common credit in the account of the fisherman farmer, although this is not, like fish, an indispensable item in the account. Cattle, ponies, sheep, and pigs, are an important part of the Shetlander's means, and they, like the rest of his saleable produce, are generally purchased by the merchant, who buys all that leaves the country, from a whale to an egg, and sells everything that the country people want, from a boll of meal or a suit of clothes to a darning-needle. The stock goes into the account, and is settled for at the yearly settlement. There is a custom throughout the country of holding public sales twice, sometimes four times in the year 'for the benefit of the tenant' as a witness puts it' but also for the benefit of the landlords and merchants. The sales are managed by the proprietor of the estate for which they are held, or by his tacksman or factor, and the prices of all the animals sold are paid, under the conditions of sale, into his hands. He has thus, just as in purchasing the fish of his tenants, an opportunity of retaining what is due to him for rent, and of making effectual his hypothec, or rather of avoiding the necessity of enforcing it at all. No cases have been alleged or proved in which advantage has been taken by proprietors or merchants of the power given them by their position, or by the indebtedness of tenants, for the purpose of getting cattle at low prices; and, indeed, the publicity of these sales to be a sufficient safeguard against such abuses. There is a practice, formerly much more widely prevalent than it is now, of marking the horns of animals with the initials of a creditor, which is supposed to hypothecate the debtor's cattle effectually as against all but the landlord's claim for rent. The practical effects appear to have been formerly injurious; <e.g.>, a well-informed and reliable witness says that, twenty years ago, when a merchant bought a beast from one of his debtors, he could really fix the price himself. [Page 21 rpt.] But the practice seems now to be so rare, probably because its legal inefficacy is better understood, that it need not be more particularly referred to.

[J. Laurenson, 9873; T. Gifford, 8133; A. Sandison, 10,079.]

There is evidence as to the sales of cattle on the Sumburgh, Busta, Gossaburgh, and Ollaberry estates, and in the islands of Unst and Yell. A man who is in debt to the landlord or merchant-tacksman is expected to offer his cow or pony which is for sale to him first. If the owner is dissatisfied with the price offered, he has an opportunity of exposing it at the next half-yearly or quarterly sale, where all the money passes through the hands of the merchant or landlord, and is settled for at the end of the year, the owner getting supplies from the shop if he requires them in the meantime. Intimation is given to all the tenants of the sale; and a man who is very deeply in debt is 'so far forced to bring his cattle and sell them.'

[W. Irvine, 3772; R. Halcrow, 4673; P.M. Sandison, 5271; D. Greig, 7228; Rev. J. Sutherland, 7600; T. Gifford, 8130; J.S. Houston, 9686; J. Laurenson, 9873; G. Irvine, 13,241; J. Bruce, jun., 13,329; R. Halcrow, 4684.]

An instance of a sale of wool to a merchant-tacksman by an indebted tenant, at a lower price than might have been obtained (according to the tenant's own statement), is given by Robert Simpson:

'14,014. Was 111/2d. the current price for wool last autumn?-I cannot say. That was what we got for it from Mr. Sutherland.' '14,015. Did anybody else offer to buy it from you?-We did not offer it to anybody else, because we thought he had a better right to it, as he was paying the rent. There were several people asking me for it, but I would not sell it to them.' '14,016. How much did they offer you for the wool?-We never came to any particular agreement about the price, because I would not consent to sell it to them at all.' '14,017. Did they not say anything about what they would give you?-They spoke of 1s.; but I thought it better to sell it for 111/2d. wholesale than to sell it to them for 1s., even although I had had power to do it. Besides, I thought Mr. Robertson had the best right to it.' '14,018. Had Mr. Robertson told you that he expected to get your wool?-I cannot say that he had.' '14,019. Had Mr. Sutherland told you that?-If I could have paid my debt he would not have asked it.' '14,020. But did Mr. Sutherland tell you that he expected to get your wool?-Sometimes he would ask me if I would give him the wool, and that I would be better to give it to him than to sell it to another.' '14,021. Even at a halfpenny less?-Yes.'

This is probably a true enough picture of the transactions in regard to cattle, which in bad times are still commonly resorted to for the purpose of reducing large debts; but of which, in the late prosperous years, little has been heard.

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THE EXTENT OF INDEBTEDNESS. ADVANCES ARE MADE UPON AN ENGAGEMENT TO FISH.

The evidence taken in Shetland does not confirm the statement made before this Commission in 1871, that 'the success of a merchant in Shetland consists in being able to accumulate such an amount of bad debts about him as will thirl the whole families in his neighbourhood, and then he succeeds,' etc. So far as this exaggerated statement has any truth, it may be said to mean that a merchant often avails himself of the power given him by his past advances, and by the hope of more, to secure both the fish and the shop custom of the fishermen in his neighbourhood; while fishermen so often need accommodation from the merchants, that even those who for the time are clear do not think it prudent to break off their connection with the merchant of the place from whom they have hitherto got supplies, and by whom they expect to be assisted in future bad years. But it does not mean, and probably was not intended to mean, that merchants ever deliberately sink a part of their capital in binding fishermen to them by the uqestionable bond of hopeless debt. The truth, so far as the highest class of merchants is concerned, seems to be fairly stated by Mr. Irvine, who says, with regard to the system of paying for fish by reference to the current price, that -

'Fishermen are quite safe with this arrangement. They know the competition between curers all over the islands is so keen, that they are secure to get the highest possible price that the markets can afford. Any curer that can offer a little advantage to the fishermen over the others is certain to get more boats the following year; and this is carried so far, that men with limited capital, in their endeavours to obtain a large share of the trade by giving credit and gratuities, in one way and another leave nothing to themselves, and in the end come to grief.'

[John Walker, qu. 44,319; W. Irvine, 3623, 3856 sqq.; See L. Williamson, 9092; T. Williamson, 9513.]

Undoubtedly, all the merchants are in the habit of making advances to fishermen, chiefly in the form of goods, long before the fishing season begins. In such cases there is, as a matter of course, an obligation, sometimes in writing, to fish for the ensuing year; and for the purpose of more easily getting such advances, boats' crews are often formed as early as November and December. Advances of boats and lines are invariably made upon an engagement by the men who get them to deliver their fish. [Page 22 rpt.] But many of the merchants examined as witnesses agree in stating that indebtedness does not give them a hold over their men; a statement which must, however, be limited to the case of men who are hopelessly and irredeemably sunk in debt, who see no means of escape from it, or rather no means of obtaining supplies beyond the barest subsistence, but by removing to another employment. A merchant is not always desirous to retain the services of such men, because his chance of getting the old debts repaid is small, while he cannot continue to employ them without making further advances to enable them to go on with the fishing. The statements made by merchants, that indebtedness is the great drawback to their business, that indebted men are worst to deal with, and that debt gives them no control over the men, must, I think, be referred to such extreme cases only, and are not applicable to the relations between merchants and men who, not of being already hopelessly involved, require some advances in money for rent, in the form of boat and lines, or in goods for family use, after settlement and before the fishing season begins. In all such cases the debt is incurred on the express or understood condition that the man shall deliver his fish next season, and where the advance consists of boat and lines, until it is altogether paid off. To this extent it cannot be said that the debt gives the merchant no hold over the men.

EFFECT OF DEBT IN BINDING THE MEN TO A MERCHANT ENGAGEMENT BETWEEN MERCHANTS ON WEST COAST NOT TO INTERFERE WITH EACH OTHER'S MEN

In districts where indebtedness is general, the bond formed by debt is stronger. Merchants are there obliged to save themselves by enforcing their claims against indebted men, whom others, in more fortunate districts, would gladly get rid of. The merchants have allowed their debts to become too numerous and too large, either from a wrong system in the management of their business or from a desire to 'thirl' the west side men to them. On the coast of Northmaven and of Delting, a complete monopoly of the fish trade is possessed, not by landholders or their tacksmen or factors, but by three merchants (Messrs. Adie at Olnafirth Voe, Inkster at Brae, and Anderson at Hillswick and Ollaberry), who lease curing premises and a small portion of agricultural or pasture land from the Busta trustees. Except at North Roe, where Messrs. Hay have a station, there is no other merchant, along a coast-line extending for many miles, to whom the tenant can sell his fish; and the indebted man has not the liberty, which he seems to be able to exercise in some other districts, of entering into an engagement with another merchant, with whom he begins afresh, with clear books, and the hope of keeping clear. I do not say that it is morally wrong for the merchant to endeavour to secure payment of a debt by requiring the debtor to agree to deliver to him the produce of his fishing. But it cannot be a wholesome system which has led the merchants into giving credits, which they can only recover or secure by such means, and which induces them to enter into a formal written engagement among themselves-'not to tamper with or engage each other's fishermen, or allow our boat-skippers or men to do so, or to make advances of rent to them on their cattle, sheep, or ponies, or under any circumstances whatever, unless they produce a certificate from any of us whom they last fished for to the effect that he is clear of debt.' The formal stipulation thus undertaken is only what has been very frequently, not universally, acted upon throughout the western and northern parts of Shetland; for men changing their employment often find at settlement the debts due to their late master standing against them in the books of the new master. Sometimes in coming to a new employer the men's debts are, with their consent, transferred to his books, or they get cash to discharge them.

[Wm. Adie, 8641; J. Anderson, 7775; M. Laurenson, 7354; A. Harrison, 7746; T. Gifford, 8126; J. Wood, 8371; M. Henderson, 9940; A. Sandison, 10,497; T. Tulloch, 13,001; C. Ollason, 16,019; John Robertson, sen., 14,126; L. Williamson, 9074.]

The fishermen, on the other hand, for the most part admit that, so long as they are indebted to a merchant, they must continue to fish for him. Notwithstanding the statements of the merchants before referred to (see above), the truth appears to be that most of them do so continue from honesty as much as from fear of onsequences. But, so far as the practical effects of the system are concerned, it is perhaps of small importance whether supplies are given in the belief that a man's honesty and his fear of legal execution will make him continue to work them off by his labour, or in the belief that his fear of legal consequences alone will have such an effect.

[G. Blance, 5554; C. Young, 5829; P. Blanch, 8575; C. Nicholson, 8694.]

Some merchants do not hesitate to admit that being indebted compels, or at least induces, men to fish to the creditor; and, indeed, it is so obviously and naturally an inducement to do so, that it is impossible to avoid regarding indebtedness to the merchant and the engagement to fish for him as more than a merely accidental sequence of events. Experience, however, has been teaching the more extensive merchants, and teaching them perhaps more readily because they have less difficulty than others in getting fishermen, that free or unindebted men are the most successful fishermen; and that to act on the old Shetland maxim, 'If you once get a man into debt, you have a hold over him,' is to fill their boats with inferior or at least half-hearted men, and their books with bad debts. Thus the returns show that at two important stations of a leading firm 244 men were employed in 1867, and 260 in 1871; and that of these, 72, or less than a third, owed sums averaging only £2, 7s. 9d. at the settlement of 1867; while in 1871 only 9 owed sums averaging £l. In this and other cases, where debt is less, the supplies of goods also bear a less proportion to the money payments.

[L.F.U. Garriock, 12,549; T. Tulloch, 12,998; J. Harrison, 16451; Rev. D. Miller, 5596; D. Greig, 7165.]

The extent of indebtedness thus differs in the different districts. It is difficult to say whether this difference is caused by accidental circumstances, or by the degrees of firmness with which the various merchants act on the principle of restricting advances and supplies when a man is getting behind. In bad years still more after a succession of lean fishings and harvests restriction is of course universal, and all the inhabitants of an island or a parish may be getting weekly doles of meal at the merchant's shop. At Grutness store, a day is fixed for the families who are 'on allowance' to come for their meal. The proportion of men in a state of indebtedness, and the amount of their debts, will be best seen from the tables afterwards given. There are, however, many general statements on this subject which I shall briefly refer to. In considering these and the tables, it must be kept in view that, in spite of some bad fishings and harvests in late years, the people are generally in a more thriving condition than they were ten or fifteen years ago. They have shared in the general prosperity of the empire. The Rev. Mr. Miller, who says that the majority of the fishermen at Mossbank are further in debt than they can hope to pay in one year, believes that they were once worse, and that eight or ten years ago hardly a fisherman was not in debt. The Rev. J. Fraser of Sullom believes that a great number of the men are very seldom clear, and that permanent indebtedness prevails to a much larger extent than is good for the community. It must be admitted that the sums due by the men are much smaller in Shetland than the sums which, it is said, are often due by fishermen in Wick, where the boats and nets advanced to the men are comparatively expensive. In a few cases, debts of £40 have been contracted; but that seems to be a rare and indeed is considered a hopeless amount. The returns show that the average debt of chronic debtors, so far as it can be ascertained, is very much less. Mr. Anderson states it to be £12. 4s. in 1871 at Hillswick, having been £14, 2s. in 1868. The witnesses are numerous-so numerous that it is not necessary to note their names-who say that they have been in debt at settlement for many years, or that the balance is generally against them.

[T. Hutchison, 12,640; L. Robertson, 13,966; G. Irvine, 13,178; Rev. D. Miller, 5989; Rev. J. Fraser, 8019; A. Harrison, 7446; J. Anderson, 7770, 7835; A. Humphray, 12,822; J. Anderson, 7834.]

It is almost superfluous to point out the connection between the system of accounts at the shops and the general indebtedness of the peasantry; but it may be interesting to refer to the evidence of Magnus Johnston, now a small shopkeeper, and formerly skipper of a Faroe smack. He says:

'... I think it would be better for the people to have no accounts at all.' '7932. Do you mean that it would be better for their own sakes?- Yes. '7933. What would be the advantage to them?-For my own part, if I had no money, but if I had credit, I might go to a shop and take out more goods than perhaps I ought to do, without regard to whether I would be able to pay them or not; whereas if a man did not have that liberty, but went into a shop with only a few pence in his pocket, he might make it spin out better, or more to his own advantage. '7934. Do you think he might get his meal cheaper by going to another shop and paying for it in cash?-He might, or he might take better care of his money, and manage to spin it out more.' '7935. I suppose a merchant like yourself, if you were giving long credit in that way, would require little more profit on your goods?-Of course.' '7936. But you can afford to sell cheaper because you are paid in cash?-Yes; and I think it would be better for the public in general if all payments were made in cash.' [M. Johnson, 7931.]

Again, Mr. James Hay, formerly a merchant in Unst, but never concerned in fishcuring, says:

'... My own conviction is, that if a ready-money system was once in operation, and had a fair start, it would work better than the present system.' '10,528. But how are you prepared to give it a start?-I think that if the men were paid their money monthly or fortnightly, that would make them feel their independence better. Perhaps they would husband their means better; and if there were those among them who were careless about it, they would be taught a lesson when the year was done, which would serve as a warning for them in time to come. There might, however, be a difficulty in beginning such a system. I can remember, and others present will remember it too, two or three years of bad fishing, followed by a year of blight, when the man who wrought most anxiously and was honest-hearted could not meet the demands upon him. At such times, if there was no qualification or mitigation of the ready-money system, perhaps the men might get into difficulty.' '10,529. But do you not think that with that system of fortnightly payments a respectable fisherman and tenant would get credit just as easily as he gets it now?-I believe he would.' '10,530. From a greater number of persons, and on advantageous terms?-I think he would.' '10,531. Do you think there would be more places open to respectable fishermen, at which they could get credit if it was absolutely required in a bad season?-Yes.' '10,532. I suppose in a bad season now no merchant would give credit to the fishermen unless he was secure of their services for next season?-I should suppose so.' '10,533. Therefore the fishermen, as a rule, are shut up to the one shop?-Yes, it comes to that.' '10,534. Where fishermen were paid monthly or fortnightly, and you knew a man to be a respectable man, would you, as a merchant, have any hesitation in a bad season in giving him credit for the support of his family?-I would have no hesitation in doing that at all, and I have done it. ....' '10,537. But do you think you would be more likely to obtain repayment if there was an open system, and the whole country was not monopolized by one or two great firms?-I think so; because if the men were paid their money I think they would feel more independent, and they would, so to say, eke out that money in the most economical way, and thus be better off.' '10,538. Probably, also, they would not be encouraged to run so very much in debt with any merchant as they are at present?-I think they would not. If the system were altered, and cash payments introduced, I think the men would feel that they could not ask credit to such a large extent as they do now, except in cases of urgent necessity.'

[J. Hay, 10,527; See also J. Anderson, 6537, Dr. R. Cowie, 14,731.]

SETTLEMENTS AND PASS-BOOKS

The accounts between merchants and fishermen are settled in a sufficiently loose manner. In many cases no pass-book is kept. Sometimes it has been refused by the shopkeeper on account of the trouble; sometimes it is the fisherman who could not be 'fashed' with it; sometimes it has been used for a time and given up because of the customer's irregularity in bringing it. There is undoubtedly much carelessness among the men with regard to their accounts. They get what they want without much trouble. The merchant or landlord helps them through bad times; and they do not always minutely scrutinize the items charged against them. They have a considerable, and probably not misplaced, confidence in the honesty of the shopkeeper, so far as the quantities of their 'out-takes' are concerned. Some men indeed keep private notes of their out-takes, which they compare with the shop ledger when read over to them; but most trust to their memory to check their accounts, and sometimes they are in a hurry to get home, and the ceremony of reading over the account is omitted altogether. The shopkeeper of course does not insist on doing so: in some places, indeed, it is read over only if expressly asked. William Blance, who fishes to the firm of T.M. Adie, is a specimen of the more careless class of men:

'... There are somethings which you have got which are not put in here?-Yes; I have gone to the shop when I did not have my book, and I have got what I asked.' '6086. What goods you got in that way when you did not have your pass-book were all put down in Mr. Adie's book, and you remembered about them when you came to settle?-Sometimes, and sometimes not.' '6087. If you did not remember them, did you trust to the honesty of the shopkeepers?-Yes.' '6088. Is your account read over to you at settling time?-Yes, if I ask it to be done.' '6089. Do you generally ask it?-Sometimes I do not, if I am in a hurry to get home.' '6090. Then you have perfect confidence in their honesty?-I always think it would do more harm to them than to me if they were not honest ....' '6119. Do you get your meal at Voe?-Yes; most that we use comes from there.' '6120. I see it is not entered in your pass-book?-No; because the meal has generally been sent in my absence, and I carry the book about with me.' '6121. How is it sent?-I have got some of it sent from Aberdeen to Ollaberry direct.' '6122. How much of it was there of it at a time?-I don't remember ....' '6127. What did you pay for that meal?-I cannot say.' '6128. Is it settled for yet?-My account is squared up.' '6130. Do you know what you paid for it before?-I don't remember.' '6131. When was your account squared up?-Fourteen days ago.' '6132. It was not squared up in your pass-book then?- No, I had it with me; but I wanted to get home soon, and I did not ask Mr. Adie to look over the pass-book.' '6133. You saw there was a balance against you then?-Yes.' '6134. Did you not ask the price of the meal you had got?-No.' '6135. Did you not hear it mentioned?-No.'

[J. Hay, 5370; L. Mail, 690; J. Leask, 1348; G. Colvin, 1340; W. Irvine, 3668, 3778; W. Goudie, 4333; G. Goudie, 5402; P.M. Sandison, 5169; G. Blance, 5574; P. Peterson, 6790; T. Robertson, 8619; G. Garriock, 8828; J.L. Pole, 9359; J. Laurenson, 9827; G. Tulloch, 11,441; L.F.U. Garriock, 12,295; G. Irvine, 13,176, 13,267; W. Robertson, 13,791; R. Simpson, 13,990; Wm. Blance, 6085, 6119.]

The effect of the prevailing indebtedness plainly is to make the men careless about prices:

'8698. What is the price of meal at Mossbank just now?-I cannot say rightly.' '8699. When did you know last? Have you made your settlement this year?-Yes.' '8700. Don't you know what you were charged for meal then?- No.' '8701. Do you ask the price of your meal as you buy it?- Sometimes; but we must take it, whatever it is, because we have no money to purchase it with elsewhere.' '8702. Whose fault is that?-I don't know.' '8703. Is it the merchant's fault?-I cannot say that it is.' [C. Nicholson, 8698.]

THE RETURNS AND TABLES.

It was for the purpose of ascertaining the area and degree of debt, as well as the degree to which truck prevails in the various districts of Shetland, that a series of questions was sent, some time after the inquiry had been opened, to most of the fish-merchants in Shetland. The answers to these questions must have cost in the larger establishments a good deal of time and trouble, which I am bound to say was in most cases ungrudgingly bestowed. The returns for the home fishing of 1867 (Table I.) are furnished by merchants, who, according to the returns made to the Fishery Board, produced more than four-fifths of the whole cure from that fishery in that year. They show that out of 1913 fishermen in their employment, 596 were indebted at the settlement of 1866, and 1832 at that of 1867, showing an average debt of £6, 11s. per man in 1866, and £6, 13s. 8d. per man in 1867. In the same year the total sum due to their fishermen by the eighteen curers making returns was £19,362, 17s. 23/4d., and the total amount received by the men from the curers was £21,456, 5s. 10d., which resulted, according to the 10th column, in an increase of the debt by £1,631, 9s. 8d. The goods supplied in account by these curers to fishermen in 1867 amounted to £10,860, 1s. 41/2d., rather more than a fourth being charged to the crews for fishing expenses. Thus rather more than one half of the total payments were made in goods.

The returns for 1871 (Table II.) were made by the same merchants, with the exception of two who had not settled for that year, and represent, according to the Fishery Board returns, nearly three fourths of the total cure of the year. Out of 1615 fishermen, 644 were indebted in a total amount of £5,026, 19s. 13/4d., or an average sum per man of £7, 13s. 33/4d. at the settlement of 1870; and 614 were indebted in a total amount of £4,437, 1s. 21/2d., or an average sum per man of £7, 4s. 61/4d. at the settlement of 1871. The total amount due to their fishermen by these fifteen curers was £20,759, 17s, 33/4d., and the total amount which the men got from them was £20,579, 14s. 13/4d. The debt was reduced by £589, 18s. 111/4d. The goods supplied in account were £8,927, 2s. 10d., £2,574, 12s. 51/2d. being for fishing expenses. Thus, in this prosperous year, considerably less than a half of the whole earnings of the fishermen were received in goods. In 1867 about three fourths, in 1871 about a half, of the cash paid was paid before settlement.

Table III., for the Faroe fishing of 1867, applies to 509 men out of 699 who were engaged in that fishery in smacks belonging to Shetland curers. The average debt of 219 debtors in 1866 was £4, 13s. 2d., and of 125 debtors in 1867, £4, 11s. 31/2d. The total amount credited to the men was £6,764, 16s. 6d., and £6,723, 18s. 31/2d. was paid to them, of which £3,120, 14s. 9d., or less than half, was paid in goods.

In 1871 (Table IV.) the returns apply to 605 men out of 816 engaged in Shetland smacks in that year. Of these, 53 debtors in 1870 owed on the average £3, 8s. 93/4d each, and in 1871, 240 debtors owed £4, 6s. 91/4d. each. They had got altogether £8,177, 2s. 1d., or about £770 more than was due to them; and of that sum, £4, 146, 16s. 2d., or one half, was paid in truck.

Tables V. and VI. are Tables I. and II. in a different form, showing more clearly the total debits and credits of the men. They also show how accurately, upon the whole, the returns have been made up. Certain discrepancies are shown by the figures in the column entitled 'Amount indebted in excess of statement.' These may be accounted for in various ways;-where the discrepancy is small, by trivial errors in making the returns; where it is greater, by the omission from the returns of transactions of a less usual character, <e.g.> sales of cloth, which were not supposed to be within the questions asked; and in the two cases where the difference is largest, it may be conjectured that the large amount of debt may have been reduced by drafts upon secret bank accounts or hoards, on sons at sea, or on the earnings of the female members of the debtors' families.

These Tables show that from one third to one half of the fishermen are in debt to the curers each year at the time of settlement, after their fishing has been credited to them. It is not less true, as shown by the evidence, that during the rest of the year nearly the whole of them are in debt to the curers, because the goods and advances are debited to them as they get them, while the credit for fish only comes at the end of the year.

TABLE I.--HOME FISHING--SEASON 1867. [Page 25]

1. No. of Fishermen employed

2. Amount of Goods debited to Fishermen

3. Cash advanced before Settlement

5. Gross Sum credited to Men for Fish

6. Gross Sum credited to them for Stock, etc.

7. Cash due to Fishermen at Settlement

8. Cash paid to them at Settlement.

9.1. No. of Fishermen indebted at Settlement of 1866

9.2. Total Debts.

10.1 No. of Fishermen indebted at Settlement of 1866

10.2. Total Debts.