[112] The Great Transformation
cided to apply it to his convict-run factory; the place of the convicts
was to be taken by the poor. Presently the Bentham brothers' private
business venture merged into a general scheme of solving the social
problem as a whole. The decision of the Speenhamland magistrates,
Whitbread's minimum wage proposal, and, above all, Pitt's privately
circulated draft of a comprehensive bill for the reform of the Poor Law
had made pauperism a topic among statesmen. Bentham, whose criti-
cism of Pitt's Bill was supposed to have brought about its withdrawal,
now came forward in Arthur Young's
Annals with elaborate proposals
of his own (1797). His Industry-Houses, on the Panopticon plan—five
stories in twelve sectors—for the exploitation of the labor of the as-
sisted poor were to be ruled by a central board set up in the capital and
modelled on the Bank of England's board, all members with shares
worth five or ten pounds having a vote. A text published a few years
later ran: "(1) The management of the concerns of the poor through-
out South Britain to be vested in
one authority, and the expense to be
charged upon
one fund. (2) This Authority, that
of a Joint-Stock Com-
pany under some such name as that of the
National Charity Com-
pany?* No less than 250 Industry-Houses were to be erected, with ap-
proximately 500,000 inmates. The plan was accompanied by a detailed
analysis of the various categories of unemployed, in which Bentham
anticipated by more than a century the results of other investigators
in this field. His classifying mind showed its capacity for realism at its
best. "Out of place hands" who had been recently dismissed from
jobs were distinguished from such as could not find employment on
account of "casual-stagnation"; "periodical stagnation" of seasonal
workers was distinguished from "superseded hands," such as had been
"rendered superfluous by the introduction of machinery" or, in even
more modern terms, from the technologically unemployed; a last
group consisted of "disbanded hands," another modern category
brought into prominence, in Bentham's time, by the French War. The
most significant category, however, was that of "casual-stagnation,"
mentioned above, which included not only craftsmen and artists exer-
cising occupations "dependent upon fashion" but also the much more
important group of those unemployed "in the event of a general stag-
nation of manufactures." Bentham's plan amounted to no less than
* Bentham, J.,
Pauper Managemen t. First published, 1797.