cover that cost the supply was allowed to accumulate, which merely intensified the embarrassment of the Company. So long as these stocks remained on hand low standards were offered for ores for two reasons; first, to enable the Company to recoup any loss that might be incurred by a distant sale, and, second, to force some mines to close and so decrease the supply. Thus while consumers were complaining of the lack of copper, the miners were being forced to curtail their output. As the Metal Company lowered the standard, many mining concerns, weary of the whole arrangement, commenced selling to the companies outside the agreement; and the manufacturers in the chief copper market set about safeguarding themselves from the high price, which they were being forced to pay, by forming a companythe Birmingham Mining and Copper Company-to mine and smelt for their own consumption.1 A solution of the problem confronting the Metal Company was becoming more and more urgent, and it seemed only a matter of time until the combination would be destroyed. The high prices offered by the outside companies encouraged the miners to break away from their contract; and it was clear that if the agreement were to be ended without some scheme being accepted for the disposal of the stock the shareholders would incur great loss. Williams was strongly in favour of a continuation of some means of co-operation with Cornwall, because competition would mean a fall in price, and a loss of profits for him. He was convinced that the real weakness in the Metal Company lay in the fact that one-eighth of the ores produced in Cornwall were not included in the agreement; as he wrote in a letter to Vivian, "Nothing short of a unanimous engagement of all the miners of Cornwall can attain the grand object of our first union.' He was so anxious to bring about this complete unity that he offered to smelt all the ores at a considerable reduction below the existing charges, on condition that all the mines were prepared to join for a definite period. Moreover, if such an arrangement could be made, he was willing to allow Cornwall an extra proportion of sales, since it produced more than Anglesey, but both were to agree not to raise more than the market could bear. As a further inducement to the shareholders to keep the Company in existence he offered a douceur of 21 per cent. on their capital.2 1 Vide infra, p. 231 et seq. Williams to Vivian, July 9, 1790. Vivian seems to have viewed these proposals with much favour. He addressed a communication to the Cornish miners in which he emphasised the importance of obtaining an agreement satisfactory to all parties, and pointed out that, if the Metal Company were to be left out of account, it could do infinite mischief to the copper trade by bringing its stock of 5,500 tons to market. In his opinion the causes of the prevalent distress were too high a "returning charge," too high a price paid for manufacturing, and the sale of a quantity short of the produce of the mines. Williams's proposals seemed to meet all these difficulties; but they could only be carried into effect by a continuation of the Metal Company. Vivian, therefore, urged the miners to agree to sell 4,000 tons of copper per annum to the Metal Company so long as the standard remained above £65, with returning charges of 36s. ; unless the state of the market warranted it the Company would be under no obligation to buy more than that amount. An attempt was to be made in fixing the standard to keep the average of the stocks at £75 per ton, and, assuming that they would be able to sell 4,000 tons per annum, he estimated that the business could be transacted at a difference of about £10 between the market price and the standard.1 There was little new in these proposals. They merely amounted to an attempt to induce all the mining companies to enter the agreement, while at the same time a bid was made for peace with the outside smelting companies, which, it was estimated, were then purchasing fully one-quarter of the Cornish ores.2 Williams and Vivian both wanted to bring about a reconciliation, which would mean a tightening up of the combination. But the power was in the hands of Williams, and it was to him that the Cornish people looked to remedy matters. It was thought possible that he might permit Cornwall to sell 4,000 tons per annum, while, by offering cake copper at reasonable prices to the companies outside the agreement, he might put a stop to their buying ores at high standards. A meeting of all parties concerned was accordingly held at Bristol in August, 1790, but no decision was arrived at. An interesting proposal was made by one of the leading shareholders in the Metal Company, 1 Vivian to Cornish Miners, July 20, 1790. Wilson to Watt, July 17, 1790. 3 * Ibid., July 29, 1790. 2 that Williams should take off all the subscribers' shares at par on condition of their lending him the amount at 5 per cent. for seven years; and that he should form a company to purchase all the ores of Cornwall at a standard of £70, with returning charges of 40s., for a definite period.1 But Williams was anxious to get control of the Cornish copper trade before coming to an arrangement with the Metal Company for the disposal of its stock. He tried to check the sale of ores to the outside companies by offering as good terms as possible for all the Cornish produce; if the miners still refused to sell to him he threatened to let the whole output of the mines go to public ticketings. Then, at a meeting in Truro in October, he offered to buy all or the major part of the ores at £76 standard, with returning charges of 50s. for the period of two years. Everybody was agreeable, and Williams departed, leaving Vivian in authority to accept all offers of ore at the agreed terms. When these proposals were presented to a meeting of the mine-owners towards the end of the month, they obtained a favourable reception, those present being unanimous about accepting the standard, which was a substantial increase over that offered by Vivian, though they wished the term to be extended beyond two years. 5 3 About the same time Williams's proposals were put before the smelting companies, twelve of which were asked to consider the offer : Lockwood, Morris & Co. Harford & Brass Wire Co. English Copper Co. Mines Royal Mine Adventurers of England. George Pengree & Co. Mitchell & Co. Paris Mine Co. The proposal placed before them was that they should contract for the whole output of Cornwall, not exceeding 40,000 tons of ore per annum, at certain fixed standards and returning charges; if they were agreed then Williams was willing, 'Wilson to Boulton and Watt, September 11, 1790. "Wilson to Boulton, October 6, 1790. 'Wilson to Boulton and Watt, October 21, 1790 'Wilson to Boulton, October 21, 1790. 'Wilson to Boulton and Watt, October 29, 1790. |