the "History of Coöperation," in two volumes, which all should read who wish to know how the movement arose, who labored for it, and what its ultimate aims are.
The rules of the Rochdale society are accepted by the chief exponents of coöperation as being thoroughly wise and judicious. The society sells its goods at the current rates charged by retail merchants, thus avoiding the direct underselling of shopkeepers, and withholding the profits of their system from non-subscribers. Buyers are given metal tokens, representing the value of the cash they pay in. Quarterly stock is taken, and the rate of profit ascertained; then, after paying subscribers to capital their interest at five per cent, per annum, buyers are paid in cash, or credited in the ledger, as they choose, with the amount of their dividends, computed on the tokens brought in. The majority of buyers have their dividends credited to them, thus virtually establishing a savings-bank account, and affording the society means for the extension of its business. Connected with the store are a corn-mill, a shoe-factory, and a soap-factory.
The capital of the coöperative societies is, as a rule, nominally withdrawable. As large investments are often made in real estate, machinery, and other property not readily salable, the necessity has become evident that the trading capital of a society should consist in transferable shares—like those of a joint-stock company—while the deposit capital can only be withdrawable at call. Thus an element of stability is introduced, which prevents a temporary panic or stress of bad times from winding up a really sound society's business.
The societies are managed by committees usually elected for a year, and annual statements of affairs are required by the Government. To watch over the collective interest of the societies, they appointed in 1870 a Central Coöperative Board, with its office in Manchester: this body has obtained for coöperation all needful legislation, and the removal as far as possible of obstacles to its right action. The exemption of the societies as such from income-tax, the limitation of the liability of members for the debts of a society to the sum unpaid upon the shares standing in their names, and an easy method of bequeathing shares without expense, were assured by the Central Committee to which the Central Board succeeded. The Board since its formation has prepared and published the land, building, and mortgage rules, necessary to be observed by societies; and a series of general business rules well thought out and thoroughly tested by experience, whereby new associations may avoid the weaknesses and errors which have been the causes of coöperative failures in the past. For the further assistance of the societies scattered throughout the country, a general secretary of legal attainments is engaged to give such legal and practical advice as from time to time may be sought. The Central Board has established at Manchester "The Coöperative News," a weekly journal, and in addition it circulates broadcast coöperative tracts and pamphlets.
