The Russian Revolution/Chapter 8
VIII.
THE CO-OPERATIVE MOVEMENT.
The Russian co-operative movement is comparatively new, but its history, especially since the revolution, has been a very stormy one. In its earlier days, under the Czars, the movement grew very slowly in the face of strong governmental opposition. By the beginning of 1914, however, it had expanded to about 10,000 societies with a total membership of 1,500,000. The war was a period of rapid growth, because the increasing cost of living turned the workers and peasants toward co-operative effort in a mighty stream, and the economic collapse of the old regime compelled the Czar's Government to turn over to the vigorous co-operatives much of the business of handling the retail food trade, etc. The revolution gave the movement another great impulse, so that by January 1, 1918, it had grown to the figure of 25,000 societies with about 9,000,000 members. Its activities covered a wide scope, including buying, selling, manufacturing, credit, etc. The following table, stated in rubles, indicates the increase in the volume of business transacted:
| Capital Invested. | Sales. | |
| 1899 | 800 | 81,340 |
| 1909 | 47,822 | 1,278,511 |
| 1913 | 225,413 | 7,985,234 |
| 1917 | 10,269,757 | 212,000,000 |
With the advent of the Communists to power a series of adventures began for the co-operatives. The movement had always been of a pronouncedly reformist character. It had given whole-hearted support to the Kerensky Government and its leaders denounced the Communists, then struggling for power, as "criminal adventurers and enemies of the people." Nor did its hostile attitude change when the latter seized the Government, except perhaps to become one of even more determined opposition. The co-operative movement turned its whole enormous educational, political, and economic force against the new Government. It supported every counter-revolutionary attempt; in later stages even helping to fit out the armies fighting the Communists.
Previous to the revolution and for some time afterward, the Communists paid but little attention to the co-operative movement. They looked upon it as petty bourgeois institution of no great consequence in the revolution, and concentrated their attention upon the fighting organs of the proletariat: the political parties and the trade unions. In the general movement to nationalize the industries the properties of the co-operatives were exempted. But once in power, the Communists soon learned that they had to give the co-operative movement serious consideration: first, because it was a stronghold of reaction which could not be tolerated, and second, because they needed its elaborate economic machinery.
To begin with the Communists met the reformist co-operators and tried to get them to turn their movement to the advantage of the new order. But the latter were flinty in their opposition, refusing to allow their stores to function in the general scheme of things and forcing the Government to organize a rival distributive system. Finally tiring of this hositility, the Communists took the situation firmly in hand. They declared open war upon the Mensheviks and Social Revolutionists controlling the co-operative movement, and proceeded to break their power, so that that great organization could be utilized for the revolution.
For this purpose a variety of means were used. For one thing the Communists fought the reformistic co-operators in all the organizations, gradually weakening their influence and eventually ousting them from leadership. In addition to this interior fight, the Government ordered a number of structural and functional changes in the co-operatives, all calculated to adapt them to the Communist social organization. The first of the more important of these came in April, 1918, when by a decree all the citizens of Russia were made members of the co-operatives. As an inducement to join they were exempted from the tax of five per cent which was levied upon all purchases made from private merchants. The system of holding stock in the co-operatives was abolished, the former shareholders being reimbursed by the Government for their shares. Also, from time to time orders were issued amalgamating the various existing independent co-operative societies into the Central Union, which for a long time has been the general national organization of the co-operative movement. The Peoples' Bank was nationalized. The old bureaucratic reactionaries objected strenuously to these measures and large numbers of them resigned their posts in protest. But in vain; in spite of their sabotage and opposition the whole co-operative movement eventually was unified under one national head.
Along with this broadening, unification, and centralization of the co-operative movement went important functional changes. In the matter of the manufacture, collection, and distribution of non-monopoly articles (a minor factor in the prevailing economy) the co-operatives preserved their independence and went along much as before; but in the vital matter of monopoly articles, especially with regard to the collection and distribution of foodstuffs they were subjected to a rigid state control. The national body, the Central Union, was brought into direct relationship with the Supreme Economic Council, the Food, Labor, Educational, Agricultural, and other Government departments. It had representatives upon the local and national boards of these departments and worked in close co-operation with them. In fact the co-operative movement operated to a great extent under the supervision of the Government. Also, in many cases, to avoid duplication of effort, the co-operatives were actually amalgamated into the Government’s productive and distributive machinery. The co-operative movement elected its own officials and in many other ways exhibited a nominal independence; but in reality it had become virtually a department of the state.
Recently, however, a new turn has taken place in the evolution of the co-operative movement. The tendency now is rather to reverse the policy of centralization and strict government control by detaching the co-operatives from the state and giving them wide independence and more elaborate functions than ever. The immediate cause of this change of policy was the establishment of free trade in Russia. To help solve the general economic crisis the Government has raised its iron-clad monopoly on industry and is seeking by allpractical means to encourage production by individual effort. In order to prevent this bringing about a renaissance of capitalism, however, it is planned to organize the newly-created private industries into the co-operative movement. The aim is to make that movement a tremendous machine for the manufacture, collection, and distribution of products among city and country workers, thus relieving the strain upon the new, state organization. It is felt that the co-operative movement, with its many devices for encouraging individual production, can be of great service in this direction. In addition to this direct economic reason for reviving the co-operatives, may be added the fact that as the military crisis is now passed and the bourgeoisie thoroughly smashed, the general tendency in Russia is to grant greater freedom of action all around, both for individuals and institutions.
Although the Communists at the head of the Russian Government have conceded the co-operative movement this new freedom of action they labor under no illusions about it. They realize that it encourages all sorts of primitive small-scale production—with a resultant narrowly selfish, petty bourgeois point of view. They pin their faith to large-scale production, as the only type that can at once properly meet the people's needs and develop a true revolutionary psychology. But they are sure they can control the co-operatives and use them advantageously during this crisis. The whole movement has been purified and strengthened. It went into the revolutionary wringer purely petty-bourgeois in character and loaded down with reactionary leaders; it came out with a proletarian viewpoint and manned with revolutionists. The cleansing process was a severe, one but had to be gone through with. The Communists believe that the movement will now stand the revolutionary test. But the situation is full of uncertainties and unknown quantities. What the renaissance of the Russian co-operatives will finally lead to few venture to prophecy.