They were sent by mail according to the law, filled out by the parties receiving them, and returned by mail to the Office.

The use of one envelope both for sending the Schedule and for its return by the aid of the gum label has been previously explained. Notwithstanding the full explanations given, it became necessary to issue a special instruction in relation to Inquiries 6 and 11, a copy of which is appended.

SPECIAL NOTICE.

PLEASE READ SCHEDULE INSTRUCTIONS.

PLEASE READ THE FOLLOWING INSTRUCTIONS.

Every point in this Schedule should be answered.

We find that the Inquiries which are not answered and require the most correspondence are numbers 6 and 11.

In answer to Inquiry 6, besides giving the Description and Value of Goods made, also state the Quantity, as we are desirous of establishing a basis of comparison by quantities produced as well as by values, which latter are often misleading.

In answer to Inquiry 11, state the proportion the business of the year bore to the greatest capacity for production of your establishment; that is, whether with the same plant and facilities you could have employed a larger number of persons, thus increasing your production a certain percentage.

The reasons that led to the adoption of the annual collection of statistics, and of the small schedule, are best given in a circular letter issued to the manufacturers of Massachusetts by the Chief of the Bureau of Statistics of Labor, a copy of which we present.

TO THE MANUFACTURERS OF MASSACHUSETTS.

By Chapter 199 of the Acts of 1837, entitled "An Act to obtain statistical information in relation to certain branches of industry," the Legislature of the Commonwealth called upon manufacturers to make returns relative to the quantity and value of stock used, and of goods manufactured, the amount of capital invested, and the number of hands employed, and in that year returns were made in accordance with the provisions of the Act; similar returns were also made in the years 1845, 1855, 1865, 1875, and 1885. The schedules for the census of industries have grown larger each

decade as the conditions of manufacturing have become more complicated.

In 1874 the Act providing for the collection of industrial statistics for 1875 transferred the whole work of the Census from the office of the Secretary of the Commonwealth to that of the Bureau of Statistics of Labor. In carrying on the work of 1875 I became thoroughly convinced that the results of a decennial census of industries were not commensurate with the expense necessary for such Census, and the annoyance to the manufacturer in making the returns required by law. In consultation with many of the leading manufacturers of the State it became apparent that the collection of statistics annually, upon a short and simple Schedule, would give to the producing community results of great value. Governor Robinson took an interest in this matter, and in his address to the General Court, Jan. 7, 1886, he suggested the expediency of a more frequent inquiry into, and report upon, the facts and changes touching the great industries of the State, and said further, "Censuses taken at intervals of ten years are liable to be quite inadequate for comparison, for the reason that one decade may end when our industries are in a flourishing condition, while the next may terminate in a year of great depression. Statistics are relied upon as of great value in scientific and economic inquiries, but they may be very misleading and insufficient to present the true conditions when collected only at long intervals. An annual account involving a few inquiries to be taken as of January first and the results reported immediately, or by the first of April following, would present to the Legislature and to the people the exact data needed relating to total products and other important features, so that proper comparisons could be made through good and bad years alike. Such annual accounts should involve but few inquiries; as for instance, capital invested, quantity and value of stock or materials used, quantity and value of principal products, total number of persons employed, total wages paid, capacity of works, number of weeks in operation, and perhaps some general classification of wages by sex."

In accordance with this suggestion a bill was laid before the Committee on Manufactures which received its unanimous approval, and the approval of those manufacturers who came before the committee, no one objecting to it. The committee reported the bill, and it passed both branches without criticism, and became

Chapter 174 of the Acts of 1886, entitled, “An Act relating to the annual collection of statistics of manufactures." This Act practically calls for answers to but nine questions and repeals the law calling for the decennial collection of industrial statistics.

It is believed that the simple annual collection will prove of far greater value to the public than the decennial collection. The question of the preservation of the industrial position of Massachusetts is one which appeals to the patriotism of every manufacturer in the State. The new industrial competition springing up in the South, a competition which, if properly understood, means the greater development of the industries of our own State, will result in transferring some of our industries to other localities. To know whether the volume of production in this State is keeping pace with the past, resort must be had to an annual collection of facts. Apprehension often exists relative to the decay of manufacturing industries. This apprehension can only be removed by faithful returns made at short intervals. The Census of 1885 has been pushed with the greatest energy, often to the annoyance of manufacturers, but with the patriotic desire to show to the public the full volume of the production of our State, that our producers might know whether they were holding their own in comparison with past decades, and if so, might have the encouragement to be gained only by a complete statement of the facts relating to the industries. of the Commonwealth. Nearly all of the manufacturers of the State have responded to the demands of the Legislature made through this Bureau. Now, with the abandonment of the Decennial Schedule, which of necessity grew to considerable proportions, manufacturers are called upon to make a simple return each year, involving but few minutes labor, of the facts concerning their industry for their own last fiscal year. In the interest, therefore, of the industrial welfare and prosperity of the Commonwealth, let me urge all concerned to promptly and cheerfully comply with the demands of the Legislature.

The Annual Schedule for 1887 contained a few changes. The point was brought out strongly that a statement for the last fiscal year ending in 1887 would be accepted if more easily given than one for the year ending December 31, 1887. It was stated more clearly in the instructions that, for persons employed, the largest or smallest number employed at any one time should be given. Particular caution to exclude the salaries of managers, bookkeepers,

clerks, overseers, and superintendents from all wage showings was inserted.

As Inquiries 4 and 6 still seemed to be hard to answer, and as much correspondence was required in order to obtain correct replies, the information sent in the letters was put in printed form and given on page 4 under the heading

SPECIAL EXPLANATIONS.

4. Capital Invested.

In securing the statistics of manufactures for the year 1885 upon the Census Schedules, and for the year 1886 upon the Annual Statistics Schedules, the inquiry that has caused the manufacturers the most trouble seems to be number 4, relating to "Capital Invested." The bookkeeper of a large firm, or corporation, could easily prepare a balance account showing the assets and liabilities, but such a statement is not the one desired by this Office. We wish to secure under the total capital invested, a figure showing the whole amount of money, whether invested in plant, goods, accounts, etc., which may be needed and used in the production of goods. Perhaps the difference between a bookkeeper's balance and the census statement may be best shown by a printed illustration, and we supply the following Bookkeeper's Balance, and Census Statement:

Notes payable (borrowed money and due for goods),

95,463

10,000

5,314

1,000

23,600

Total capital invested, used, and necessary for the production

of goods,

$238,356

It will be seen that we wish the value of the land. If the land were hired, it would be impossible to give this figure under this head, for the amount paid for rent would be an expense. So, too, with buildings; if not owned, they would be rented, and the rent would be an expense. These rents would come from the cash on hand, and the return of cash capital, in this way, would account for rented land and buildings.

The value of machinery, implements and tools, and patterns should evidently be included in capital invested, as these items form a permanent investment required from day to day for the manufacture of goods. Merchandise on hand, manufactured and paid for, and also stock on hand, paid for and in process, should be included, because so much cash capital has been put in this form, and has been used to secure the product.

Notes payable should include all those notes, whether due to stockholders, members of the firm, or other parties, where they represent what has been borrowed and used in the business, in order to aid in the larger production of manufactured goods.

If a firm should pay all its bills, and all the accounts due the firm should also be paid, and the balance being in favor of the firm, the surplus cash would naturally be added to cash capital; so, in making up the census statement, the difference between the accounts payable and the accounts receivable should be added to the capital invested, if the balance is in favor of the firm, and deducted if against the firm, for the amount due outside parties in such a case would have to be made up from the capital invested. Of course the cash on hand in the office or in the bank should be included as part of the capital invested. Accrued profits, still used in the business, should be included under cash capital. Business notes given in lieu of cash, as payment for goods purchased, should be included.

If each manufacturer would bear this classification carefully in mind, he would be able to make up his statement of capital invested with little difficulty. Of course there are, in certain firms, certain peculiarities in investments which may require special decisions.

6. Articles Manufactured, and Quantities and Selling Values of the Same.

In the past censuses, excepting in a very limited degree, all comparisons of relative product from year to year have been based upon values. As is well known, these values are fluctuating, and a dollar's worth of goods in 1885 meant more than a dollar's worth in 1875; besides this, all values in 1875, being on the currency basis, were 12 per cent higher than a gold basis, and, for this reason, in order to make comparisons between 1875 and 1885, it is necessary to reduce the values given for 1875 twelve per cent in order to secure a comparison upon a gold basis.

Having the Annual Statistics Schedule, and being able each year to call upon the manufacturers for the quantity and value of goods manufactured, it is the aim of the Bureau to gather such figures as will enable it to make comparisons from year to year upon the basis of quantities. The comparisons by values will not be omitted, but they will be supplemented by this more valuable figure the comparison by actual production shown by quantity.