LECTURE ON ADVANTAGES OF CO-OPERATION.

South Canterbury Times, Issue 2371, 22 October 1880, Page 2

LECTURE ON ADVANTAGES OF CO-OPERATION.

The following is the address on cooperation, which was delivered by Mr Wm. Bateman, at Fairlie Creek, on Wednesday evening : “Mr Chairman and Gentlemen, —I appear before you under the auspices of a committee who are cominendably interesting themselves in endeavoring to bring under your notice the objects and benefits of co-operation. It will be my aim to deal with this subject in a comprehensive manner. The chief principles upon which the sj'stcm of co-opcration is based on one of the simplest nature. It is a matter of astonishment that the blessings which result from co-operation have not been the moans of making co-operative associations more general. When the advantages derived from an association of this kind, arc thoroughly comprehended, instead of co-operative associations being, as now, the exception they will become the rule. The competition of the present period will, however, do much to force attention to this important question ; for every day improvements in trade are being accepted, bestowing advantages of a most incalculable nature upon individuals and nations. As a rule, people are slow to adopt anything new, but when it has become common, they marvel that its benefits were not discovered before ; and the time will probabty come when many of you will exclaim : “Why did this important form of being our own distributing agents never strike us before V” As producers, you have already accepted many innovations in regard to production, but much remains to be done to make the distribu tion less costly. People say that fanners are generally loth to take the initiative in any great project which is out of the common, and that it is from the example of others, who have been driven by the pressure of competition, that they manage to keep pace with the times at all. You have hitherto followed the example of others too quietly, thinking, no doubt, that in making an attempt at progressive improvement the task would bo irksome, and this has induced you in many cases to go back into your old track of primitive working. This is unquestionably confirmed by your not having accepted the beneficial principles of co-operation until necessity has almost forced them upon you. In attempting to deal with co-operation and its advantages, it will bo necessary to treat it under throe heads;—(l) Productive industry ; (2) normal value ; (3) principles of jeo-operation and advantages. You are fully cognisant that the measure of your productive industry is not only in your case your individual wealth, but that it also comprises the wealth of the nation. Tho high or low value of the productive industry of a nation is the result of the toil of its people, assisted by the natural gifts which have been bestowed upon it. It therefore follows that the more industrious and saving the people of a nation arc the more prosperous is the country’s productive industry ; this is so, provided the full normal value, resulting from capital and labor is turned into channels of a reproductive kind. On the other hand, if tins law is disobeyed, the nation and people sink into a state of retrogression. Labor, when properly applied, is productive of wealth. Productive labor may be of two kinds, namely, direct and indirect. Under the class of direct labor there is included all those who are immediately engaged in production. Indirect labor does not only benefit direct labor, but if properly directed makes it more remunerative. Take, for instance, the minister of religion, who is generally in the common acceptance of the term, classed as an unproductive laborer. But this opinion is quite an erroneous one : for if tlic minister of the day, by moral influence, improves the minds of the laborers, makes them more sober, honest, and efficient, he is so far indirectly productive of personal wealth. Precisely on the same principle the improvement of the mind, or recreation of a proper kind, may tend to bring about the highest efficiency in labor, and it is within the bounds of possibility that a musician, or one who is instrumental in providing moral amusements of any kind, may by this means indirectly increase the wealth of a nation. Anything, whether its tendencies have a direct, or indirectly beneficial effect on the productive worker of a country, may tberebc considered as productive. It is, however, gentlemen, not so much to moral agencies that 1 wish to call your attention as to non-producers. The line of demarcation between productive and non-productive labor is, I think, clearly defined. The former is a producer of wealth, while the non-producer is not. As long as their relative positions remain as they now arc, and the nonproducers do not live on the productive industry of the laborer, no harm is done. But as soon as those who are not engaged in indirect production commence

to live upon productive industry from their independent means,then productive industry suffers, and simply because it supports a class who fail to contribute any profitable return. In the same way if a man is prevented by obnoxious and class laws from exercising his labor, and employing his capital in developing his calling he is robbed of his free rights as a producer. This principle applies not only to nations but to individuals. Turning to the class of non-producers who exist by trading, and arc mainly engaged in profiting by the fruit of your production, has their calling in any way augmented your position ? Those who conduct these multifarious trades get rich out of your industry, while you in many cases find it hard to make both ends meet. Some remedy must therefore sooner or later be made, or in the end ruin will befall you. This section of the community consists of dealers of various kinds. If a man buys your produce and sells it to another who resells it to a third, the produce has necessarily to pass through three hands, and as a consequence your pioductive industry is directly saddled with three profits. These intermediate men arc what may be correctly termed nonproducers, pure and simple, who subsist anti make money out of productive industries. Some call them speculators, others traffickers and dealers. However, whatever category they come under, they live by trading to your direct impoverishment. (2.) The normal value of an article is equivalent to the cost of its production in the market, when prices are regulated by the undisturbed action of free competition among producers. Whenever the value is below this level, forces are brought into play which tend to raise it ; whenever it is above this, forces are brought into play which tend to lower it. “ The value of of a commodity is in equilibrium and has no tendency either to rise or fall when the amount produced can be sold at a price equal to the expense of production”

It is important to remember that there is not ncccssarity any connection between the price which an article is sold at and the expenses of its production ; the connection is more between the expenses of carrying on the various processes of production, and the aggregate sum which the products would bo sold for. An isolated case in respect to the value which an article can bo sold for is no criterion as to its normal value because, for instance, it often happens that commodities are sold under a steady state of trade, or under disturbing elements, leaving, as the case may be fair profits, high profits, or no profits at all. It is patent that these three results rebound on the community as a malady would on the public, but the effects arc felt differently ; for if the selling price of the particular article in question is no moic than the expenses of production, then there is a settled state of trade This is a sign that the producers are in the safest position possible because supply and demand are the controlling power and are equalised. The fundamental principle and aim of co-operation is to enable a body of individuals to grasp matters which are totally out of the reach of one. Like all other undertakings, co-operation has achieved success in certain things, but it has not progressed as might have been expected. Although success is limited that is no sound reason why the efforts of men should be discouraged,and not directed in the proper groove. The aim of co-operation is the joint prosperity of all concerned. In order to achieve success it requires capacity, foresight, self-denial, self-reliance, endurance, and faith. These essentials are requisite, but strange to say, the masses, as a rule, seem to want these cardinal qualities. For is it not of daily occurrence that a movement with a progressive object, rarely receives its impulse from the multitude, but from a few who may be more enlightened and generous, and less selfish than the majority. And, gentlemen, you may rest assured that co-operative associations have not been established in other parts without a struggle, for the battle has been fought and won with difficulty. By what principles is your greatest institutions governed, such as Banks, Loan Companies, Railways, Insurance Companies, State schools, and the Church ? Do not these exemplify the feasibility of co-opcration ? Capitalists, as you all know, combine; and by doing so attain positions that would otherwise be perfectly unattainable. Labor, or ulmt might be properly termed productive industry, seems to- have made no attempt in this colony to cope with such powerful combinations ; and consequently it. is left in the cold. Hitherto it has been unable to grasp any measure of the advantages which can be obtained only through co-opcration. If you intend to realise the full benefit of your position, no matter whether producers or consumers, you will have to take the initiative and do as the dozen almost penniless weavers did at Rochdale, in the year 1844, when they saved, by a weekly contribution, twenty pence per week, with a view of imitating flic large companies of that day ! To them the success of co-opcration is due, although at that time they were scorned, and their action was looked upon as a satire upon the large concerns. Yet they have imitated them most successfully, and quite beyond their most sanguine expectations. The number of partners engaged in the United Kingdom in co-operative associations now exceeds over half a million, with results of a most marvellous kind. The share capital engaged in workingmen’s stores and other associations is recorded at nearly £0,000,000 sterling, turning over goods annually to approximately four times that of the amount of the capital. The net profits, if divisible upon a share capital basis, were equal in the year 1878, which was a veiy unprosperous year, to 31.7 per cent; or, for every ,£IOO of capital employed, the profit for that year was £3l 14s ! In the most successful years the net profit divisible upon a share capital basis was 08.7 per cent. Tins then is what the advantage of co-operation has done for the working men and others at Homo who are members. It puts back into their pockets nearly £2,000,000 sterling, and this is divisible among a little over 300,000 members, or say £4 per bead. Under the primitive mode of doing business this £2,000,000 sterling would have enriched the few “ middlemen ” to the impoverishment of the working men who are members of the co-operative associations to which reference has been made. Co-opcration is full of commendable features. It possesses the cardinal points which are embodied in political reform, for the reason that the co-operative system teaches the people the best kind of government, namely, self-govern-ment ; or, in other words to establish a complete sovereignty over themselves. In addition to political reform, gentlemen, you require a commercial reform that wil I put a stop to the unequal distribution of wealth, because it is apparent that the two extremes of wealth and poverty are highly detrimental to the best interests of mankind. There is little or no soundness in flic present fashionable way of conducting commerce. The principles of co-operation when they become better known, will be a corrective against the traders of the old school, and they will act as a check against immoral practices. Co-operation will distribute the profits which are at present derived from you as consumers and produceis, into your own pockets as the makers of these profits; and who can gainsay that you arc not entitled to what you have been the means of creating. Co-operation does not seek to take up a position antagonistic to what might be looked upon as settled interests, and customs, but, gentlemen, it seeks this much aud nothing else: to place not only the producers, but the workingmen in a position, where both can utilise their products and wages in the best way for the good of their families ; and where they can best utilise the surplus savings of their income. The very men who may think the movement of co-operation assails their position, will 3 r et, I hope be spared to live and learn that the good and virtuous principles of co-operation are of the highest order, and full of benevolence and charity to mankind at large. Co-operation seeks great things, and keeping these in view, its aim is not to vilify or slander any one, to cast no imputations, but to quietty, earnestly, aud persistently attend to working its own way.