FARMERS’ CO-OPERATIVE ASSOCIATION.

South Canterbury Times, Issue 2372, 23 October 1880, Page 2

FARMERS’ CO-OPERATIVE ASSOCIATION.

The fourth public meeting in the the interests of the above took place on Thursday evening at the Masonic Hotel, St. Andrews. The meeting was well attended, which, considering the inclemency of the weather, is :i proof that the farmers are taking a very warm interest in the movement for placing productive industry on a better footing. Mr John Bradshaw, in taking the chair, stated that before introducing Mr Bateman to the meeting, he would like to olfer a few brief remarks on the important subject of co-operation and its origin in this district. lie would not deal with the general principles, as no doubt the gentleman who was about to address them would from his large and varied experience do so much more elcarily than he could. Those present were fully aware that tins cooperative step had been taken in hand by men who had not only their own interests at stake, but who wished to introduce a more modern system whereby the farmer could retain a good deal of that essential which at present went into the pockets of others who gave no adequate return for the large prolits they enjoyed. The fact was that all these gains came out of the producers. The object of the Association was to endeavor if possible to make £lB do the work of £2O. Cooperation was like a “ snow ball,” which the more it was rolled grew the larger. So it was with the results of co-opera-tion. Its prolits would increase, and like the snowball they would go on increasing. He, the Chairman, considered that the estimated gain mentioned by Mr Bateman in his first lecture (which he was glad to lind had been published verbatim) was a very safe one. He believed that in place of a saving of 12.' per cent on the requirements of the farmers, they would save 4s in the £. However, he would not go into the details of the working of the system. The association would benefit the various traders, because any dealings the members had with them would be for cash. It did not aim at more than doing its own shipping business, importing its own implements, and such things as could not be made in the colony, realising upon the products of the farmers who might be members, and making the best arrangements with existing linns for doing business. It was well known that the custom of the members would be worth while courting, and that as a body they could make better terms than could be obtained single banded by any individual. If the farmers got a larger net return for their grain, Ac., the}' would be encouraged to go more into improving their farms, and therefore more labor woidd be employed. Take, for instance, the sale of stock in this colony. If the farmers banded together they could save money, as no doubt the auctioneers would make rebates on the usual commission charged, or if not the Association could have its own auctioneer, do its own work, and retain its own prolits. The Chairman concluded by reading the report of the sub-committee and the prospectus. He then introduced Mr Bateman, who was warmly received and bad a most attentive hearing, Mr Bateman said :—You arc no doubt fully cognisant that a movement has been taken in this district to establish a

co-operative association, having for its aim the supplying of articles of consumption, and the sale of the productions of the farmers on the most advantageous terms, the profits to be divisible among its members. To illustrate the magnitude of the benefits which follow in the train of co-operative associations it will be as well to depict to yon—(1) Your present position ; (2) to explain the principles of co-operation; and, (3) to elucidate the advantages which are likely to arise out of such an amalgamation. The primary principle for your consideration is unity. With respect to your present position and mode of business, you pro fully aware that the productive industry of nations supports not only the whole community but its forms of government ; it is therefore evident that the producing interest is the most important of all, and as many of you are connected with that particular interest you are consequently, as a body, of groat political significance. Your present position is, in some respects, due to your having accepted what may be very justly termed modern appliances. You hare no longer your old implements to depend on, as most of you have abandoned them for new and improved ones. Your method, therefore, points to progression. The question might be asked, what prompted you to try these innovations ? Was it not done with a view to lessen the cost of production ? Up to this stage of your experience you are no more handicapped than what your acute competitors are. It is proverbial, however, that the tillers of the soil believe, that, as a rule, it is best to follow the old beaten track although it may be considerably the worse for wear, instead of cutting out a fresh one. To attempt anything out of the common is not to be thought of until custom and habit reconciles farmers to new methods of working, whether it be in accepting an improved implement, or a more modern system of distributing production. The aim which progressive movements have in view is free and open competition. And if this has an unimpeded course,beneficial results are generally the outcome ; because the purchasers of wares obtain normal value for their money. Competition unrestricted is the corrective of all sorts of commercial trickery. To carry this point a step further, where modern innovations have been accepted, and the people educated in true principles of political economy, they have invariably succeeded in attaining a pre-eminent position. The principles of political economy should be exercised by you precisely upon the same common sense rule that tlie thrifty housewife manages her household. Although she is is generally looked upon as the weaker} vessel, yet in some things we have much to learn from her, and even our colonial statesmen might with considerable profit take a salutary lesson from her. IE she has an allowance doled out to her, is it not her great study to make the “ ways and means” suffice for the general well-being of her household ! J She has commonly tact enough to make both ends meet without having to resort, to the expedient of issuing treasury bills on her husband. This example set by the housewife is a fair and homely illustration of the principles of political economy. Your success or non-success as farmers at present depends upon the carrying out in your cveryda}’ callings of the accepted and cardinal principles of economics. In this respect do yon not think that there is an absolute necessity for the introduction of some kind of reform based upon the approved principles of economy ? Your present unenviable position and unsatisfactory mode of doing business with regard to your products, imperatively demands some innovation of a progressive character. The mission which has fallen to my lot is to show you conclusively that there are ways and moans open to you for the promotion of your prosperity and independence. Your productions can only fetch such prices us arc ruled by the open markets of tlie world; therefore as no improvements can possibly be secured in that respect, it is evident that means will have to be devised to enable you to produce at a less cost, or else the present buying power of your money will have to he increased, and not only this, but the coat of distributing your productions will also have to be placed on a widely different basis. At present the articles of daily use and consumption necessary to maintain yon in your proper position in dealing, cost you prices from which a certain section of the community derive large profits. Tl lis class manages to sustain itself out of your productive industry, and is therefore indirectly supported by your labor and capital. By a system of unison, and by making your interests as farmers more common, there is not the least doubt that it is' possible for you to make eighteen shillings do the work of twenty shillings, and that yon could by this means clearly and safety reduce your expenses ten per cent. Considering that the bulk of the articles you consume and use have to pass through the bands of a lot of traders, each of whom lias bis profit, it is not unreasonable to assume that you are paying quite onetenth more for your articles than the normal value. The normal value of an article is the average cost of its production and manufacture, the cost of both being arrived at upon free and competitive principles. In your present position the profit of ten per cent goes to the support of the trader, and augments the cost of your producing power to this extent. To briefly summarise the matter : for every £IOO j’ou expend—whether on food, raiment, or implements the very moderate estimate of £lO has to go from yon without any quid pro quo ; and providing you can by association retain these profits you obviously benefit to that amount. Not only this, but .you have the additional capital of £lO in every £IOO to use as aneclous to form a fund, or to extend any other productive undertaking. The same remarks will also apply to the old fashioned and round-about process now in vogue with respect to the distribution of your produce. As home similes will perhaps be more clearly understood, it will be as well to show how yonr producer has to pay the toll. For this purpose, take the man who makes his livelihood by buying your grain, what does be do ? He sustains himself out of your productive industry ! How does he succeed in accomplishing this ? Docs he not post himself up with the value ruling in the great import markets of the world ? He ascertains the minimum and maximum prices that have ruled for years. He also learns from authenticated sources the probabilities of an increase or deciease in the supply from other producing countries, and bo is accordingly possessed of a superior knowledge to that which you can possibly gain in your present circumscribed sphere of

action. He is unquestionably master of his position ; he knows exactly when to buy or not to buy. He probably combines with others, and by this moans bis position is a controlling one ; and if you are not in a position to-ship to the consuming markets, you are obliged to sell in your own confined local ones, in all probability to a “ring of buyers,” or monopolisers. In this way the “ local large buyer” trades with you, and if he conducts his business upon a judicious basis he ncccssarily accumulates wealth at your expense. The question might be asked . Does he contribute anything to you beyond the money value he pays you in exchange for your grain ? On the face of his transactions it is patent he does not. It is also equally admissible that by becoming the snippers of your own produce—whether it be much or little —yon receive the full normal value for it ; and if by organising yourselves you retain the profits which at present go towards his maintenance to your own loss; you would undoubtedly be the better off. The additional sum you would receive from the realisation of your own produce in the import markets would enable you to carry out new ventures. It has been contended by some that the “ large local buyers ” of your productions are mostly animated ny speculative ideas ; and give you more than full value for your commodities ; but, gentlemen, as you are no doubt aware, in the long run this kind of dealing regulates itself to the utter ruin of the individual and the dcEression of trade. For if that grain uyer is successful, that success comes from your productive industry. The principles of co-operation are of so sound a character, that it is more than probable that at no distant period they will have much weight in revolufo using certain rooted interests. The origin of Co-operative Associations is of a very recent date. The first one was estab lished in the year 1844. The object of its promoters was to obtain cheap and unadulterated food. Under its rules each member is entitled to leceive at stated periods a division of the profits. The members are not oidy individually strong supporters of the Association, but in no small degree contribute to its prosperity. The primary principle is that the business is conducted) upon a strictly cash basis. Co-operative Associations of this character arc termed societies ofJconsmnption,the object being to buy and sell both to members and non-members, but in dealing with the hitter, certain conditions are observed. The necessaries of life, as well as other materials, such as the fruit of their industry are bought and sold. The early promoters of the first of these Societies commenced in a most bumble way, by contributing only a few pence each in a series of weekly payments to the joint funds. The few enterprising workmen who had the courage to start the first co-operative store, at a time when trade was in an almost unprecedentedly had state, wore driven to the step by distress and destitution of the most appalling kind. At one of their conferences they concluded that it was utterly impossible for them to look for remunerative wages, or to expect constant work, and therefore for those workmen to look in that quarter for relief was a hopeless thing. Their consistence and steady adherence to right principles led them on to make the attempt to get better value for their paucity of earnings, by buying at wholesale and selling to members at retail prices. The articles were to bo unadulterated, and of the very best kind, and the profits wore to be divided among themselves in proportion to the business of each. The success which has attended their humble efforts is well known, Similar associations have been instituted on the same footing in various places, and have proved to be most beneficial to the working men, and especially to those who arc members. The members have been able to save fully 10 per cent on their household expenditure, so that they are now in a position to purchase as much, and, in all probability, of a better kind for eighteen shillings than they did before the principles of co-operation were intiated for twenty shillings. In addition to the above system of co-operation there are other forms, namely, associations of producers, the object of which is to sell the collective or individual work of the members : and also associations of credit or banking ; the object of the latter being to open accounts with its members, and and advance them loans fur industrial purposes. Coming to the third division of this subject of co-operation, the following will show you the extent of the devolopement attained by Co-operative Associations. It is generally a pleasant duty for the chairman of directors of a Bank, for instance, to submit to the shareholders the balance sheet. On such an occasion, if the business done has been of a profitable kind, he usually comes forward with a smile and informs his hearers that the business lias been so exceedingly prosperous, that his Board has little or nothing to say, and that he has only to submit for their approval the handsome dividend ’ which it is bis gratifying duty to have to declare, and which in itself is quite sufficient to justify the Board in assuring the shareholders that prosperity of an almost unbounded nature has prevailed. After such an announcement, everyone departs with the happy thought that the chairman’s statement is a very satisfactory one. It will not be assuming too much if I endeavor to emulate the example of this gentleman by showing yon what have been the declared results in connection with co-operative movements up to a vety recent period, by submitting to you even a more favorable account than our imaginary friend the banker’s, England stands at the bead of societies of consumption, and Germany of those of credit. The co-operative societies in England, which transact business under the principles of co-operation with a capital of £(>,000,000 sterling, turn over more than three times that amount yearly in sales, and yield to the members a net profit of aproxinmtely £2,000,000 ; so that on the capital employed tbo yearly dividend is over 30 per ce it. Now, gentlemen, do you not consider this a most satisfactory dividend to declare ? Under your present method of dealing, a proportionate saving is quite beyond your control; whereas if you did your business upon the righteous principles of co-operation you would retain it in your own hands. The progress made in Germany with the co-operative credit system has been equally successful. As recently as the year 1819, the credit society, which is practically a bank, commenced operations in the small German town of Delitzsch, comprising only 0,000 inhabitants. This financial institution was organised on principles specially adapted to meet the requirements of the working classes. In 1877 the members owned £B/JOO,OOO in capital ; which,

according to the latest advices, is more than one-balf of the entire note and specie reserve in the Bank of England. In addition to this they had some £20,000,000 more out on loan. The total amount at the command ot these credit societies, in the short period of a little over a quarter of a century is just about equal to the State debt of New Zealand ; and is nearly three times the total amount of the debts due to the whole of the banks now doing business in this colony ; and more than the total amount of debts due to the whole of the Banks in the four colonies of New South "Wales, South Australia, Queensland, and Tasmania, for the year 1877. In bringing this somewhat long address to a close, I have to ask you to accept my best thanks for your attendance, and 1 venture to hope that these few observation will have the effect of inducing you to accept the grant! principles of commercial reform, and that you will become strong converts to this cooperative movement. You will, I hope, go away in very much the same kind of spirit as that which our gonial friend the Banker succeeded in infusing into the minds of the proprietory of his Bank, when he announced to them a highly remunerative dividend. Once more, gentlemen, allow me to impress upon you the importance of your arriving at a speedy decision on this great question of co-operation. For if you neglect to avail yourselves of its many advantages, you will sooner or later regret your want of union. At the conclusion of the lecture, the chairman stated that the lecturer would bo most happy to answer any questions with respect to the principles of cooperation. Mr McLaren, in rising to propose a vote of thanks to Mr Bateman for Ids lucid and able address, commended to the farmers of New Zealand the movement of co-operation. Its principles were equitable, and it was evident that some different system of conducting the export and sale of produce must come into use. He instanced the outrageously high charges for storage, commissions, Ac., and contended that the work done by merchants, agents, brokers, and numbers of others, the farmer could do by cooperation. At present besides paying for the support of all these it was no unusual thing for large companies to declare dividends of 15 per cent per year out of the profits of transactions with the producers. He spoke in high terms of the lecturer, for the masterly way he had dealt with the subject. Mr Coe seconded the resolution, which was carried with much applause. Mr Bateman briefly returned thanks, and said that as the chairman in opening the meeting had referred to the subject of labor it would not be amiss to assure the meeting that co-operation was the best means for bringing capital and labor more harmoniously together. It had worked well in the United Kingdom, and was an effectual remedy against strikes.

The usual vote of thanks was passed to the chairman, who in reply stated that the present movement would be carried out, even if such a course was necessary, by the few gentlemen who bad from the first allied themselves with it. The meeting then terminated.