LECTURE ON ADVANTAGES OF CO-OPERATION.

Temuka Leader, Issue 308, 23 October 1880, Page 2

LECTURE ON ADVANTAGES OF CO-OPERATION.

The lecture delivered by Mr Bateman, in the Crown Hotel, on Tuesday evening last, was divided into three parts. We regret that the length of the lecture pre eludes us from puolishing more than the first part this issue. The second and third will appear on Tuesday. Mr Talbot occu pied tho chair. Mr Bateman opened his lecture as fallows ; Mb Chairman and Gentlemen : I appear before you at the solicitation of the gentlemen in whom has been delegated the power of taking steps to promote the object of co-operation, and for tnat pur pose of explaining to you its broad prin ciples You are no doubt fully cognisant that a movement has been tairen in this district to establish a Co-operative Association, having for its aim the supplying of articles of consumption, and realising on the productions of the farmers at the cheapest rates ; and that whatever profits are derivable from these two main sources will be devisible among the members. To illustrate the magnitude of the benefits which follow in the train of cooperative associations, it will be as well to depict to you (I) Your Present Position, (2) To explain the principles of Cooperation, and (3) To illucidato the advantages which are likely to arise out of such an amalgamation. The primary principles for your consideration is unity. With respect to Your Pr sent Position and mode of doing business ; you are fully aware that the Productive Industry of nations supports not only the whole community, but its respective forms of government ; it is therefore evident that the producing interest is the most important of all others, and as many of you are necessarily vitally connected with that part icular interest, you are naturally, as a body, of great political significance. This then is a paramount fact; a.d while this remains it will not be amiss to enquire whether you have or not, witli nature’s bountiful gifts at your feet, made that progress which might be expected ; or whether you have or not accepted the numerous innovations in the way of progressive improvement, so as to enable you as farmers to place and maintain your position in the strongest possible form.

Your present position is, in some respects, due to your having accepted what may be very justly termed modern appliances. You have no longer your old implements to depend on, as most of you have abandoned them for new and improved ones. Your method, therefore, for carrying on your callings as producers, in this respect, may then be admitted as one which points to progression. The question might be asked, what prompted you to try these innovations 1 Was it not done with a view to lessen the cost of production 1 And does it not infuse into youi minds a spirit of emulation, and which unquestionably fortifies you with the commanding power of competing with your con temporaries and rivals ? Up to this stage of your experience you are then no more handicapped than what your acute competitors are. Except, perhaps, in the competitive race of the world, you may have not, in the first instance, been so eager to adopt new inventions for saving labor, until others had not only tried them but proved them to be perfect in every way, beyond doubt of any kind. It is proverbial that the tillers of the soil prefer and believe, even as some of you yourselves admit with marked candour, that, as a rule, it is best to follow the old beaten track, although it may be considerably much 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—dt matters not; they are indeed hard to move. In many things tampers are proverbially perverse and especially in matters appertaining to their callings; their obs'.inacy at times almost borders upon dovvnrigiit obdtirauce; yet, in some respects, they profess a degree of perception of the very keenest nature.

The aim which progressive movements have in view is free and open competition. And if this has an ttuimpeded course, beneficial results are generally the outcome ; because the purchaseis of wares ; it matters not of what description obtain Normal Value for their money or kind. Competition'unrestricted is the corrective of all sorts of commercial trickery. To parry this point a step further ; free and open competition benefits both mankind and nations universally; for where modern

innovations have been unanimously accepted, and the people educated to understand the true principles and blessings arising out of Political Economy, they have invariably succeeded in attaining to a preeminent position. The principles of Political Economy should be exercised by you in all your dealings, precisely upon the same common sense rule that the thrifty housewife manages her household. Although she is generally looked upon as the weaker vessel, yet, in some things, we have much to learn from her, and not only us, but even our Colonial statesmen might with considerable profit, take a salutary lesson from her. If she has an allowance doled out to her, is it not her great study to make the ‘ wnys and means’ suffice for the general well being -of her household ? If she professes the admirable understanding of the truly thrifty woman, 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 uonsuccess, as farmers, at present depends upon your common understanding, and the carrying out in your every day calling of the accepted and cardinal principles of Economies. In this respect, do yoiTnot 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 yonr expend'ture and realisation of your products, imperatively demands some innovation of a progressive character.

The mission which has fallen to my lot i» to show you conclusively that there are, if you choose to avail yourself of euch, ways and means open to yon for the promotion of your prosperity and independence. Under the present system of transacting business, your productions at the best can only fetch such prices as are ruled by open markets of the world ; therefore as no improvements can possibly be secured in that respect, it is most evident that other means will have to be devised, so as to enable you to produce at a less cost; or else the present buying power of your money will have to be increased ; and not only this, but the cost of distributing your productions will also have to be placed on a widely different basis. At present, the articles of da ly use and consumption necessary to maintain you in your proper position in dealing, cost you prices from which a certain section of the community contrive to exist. This class is of a most varied and numerous kind. It, somehow or other, very ingeniously manages to sustain itself out of your productive industry ; and is therefore indirectly supported by your labour and capital. It contributes nothing, but merely acts in the capacity of what may be laconically termed a “ disbursing agent.” If a man works for you, you naturally expect him to do a fair day’s work for a fair day’s pay ; but, if beyond this he gains large profits out of you, you are clearly so much the loser. In case you secure a fair day’s work for a consideration, and yon find that the result of the expenditure produce you satisfactory results, the fruits are in such a case of a profitable kind. So far as your capital, employed in the expenditure for labor is concerned, and as long as you receive an adequate return, you may rest assured that no improvement can be looke 1 for in that particular department of your calling. It is in respect to either items of expenditure that your attention is now solicited ; where a saving can be accomplished; for instance if you can 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 you could by this means, clearly and safely reduce your expenses ten per eenti Considering that the bulk of the articles you consume and use have to pass through the hands of an innumerable lot of traders each of whom has his profit, it is not unreasonable to assume that you are paying quite one tenth more for the 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 percent, goes to the support of the trader, and augments the cost of your producing power to this extent. Then to briefly summarise the matter : for every £IOO you expend, whether on food, raiment or implements, to carry out your productive industry, the very moderate estimate of £lO has to go from you with quid pro quo ; and providing you can by association retain these traders’ profits you would obviously benefit to that amount Not only this, but you have the additional capital of £lO in every £IOO so expended, to use as a nucleus to form a fund ; or, if necessary, to extend any other productive undertaking. If you are able lo progress under the present system of conducting your productive industries, you would doubtless do so much more, by the adoption of more modern methods; and by acting up to the principles of Eonomies. The same remarks will also apply to the old fashioned and round about process pow i Q vogue with Respect to the distribu-

tion of your produce. There is in fact a total disregard of economical principle by you in the realisation of your products. As home similes will perhaps he more clearly understood by you, it will be as well to show how your produce has to pay the toll. For this purpose, take the man in your midst; and who makes his livelh hood by buying your grain. What does he do ? He sustained himself out of your productive industry ! How does he succeed in accomplishing this 1 Does he not post himself up in the value ruling in the great import markets of the world? He ascertains the minimum and maximum price that has ruled for years. He also learns from authenticated sources, the probabilities of an increase or decrease in the supply from other producing countries ; and he is accordingly possessed of a superior knowledge than that, which you can possibly gain, in your present circumscribed sphere of action. He is unquestionably master of his position ; he knows exactly whem to buy, or not to buy. He probably combines with others, and acts in union, with them and by this means, h : s position is a controlling one ; and if you are not in easy circumstances to enable you to ship to the consuming markets, you are unfortunately obliged to seII in your confined local ones ; in all probability, to a “ring of buyers,” or monopolisers, As such the “ local large buyer ” trades with you, and acting upon such information as he is possessed of; if he conducts his business upon what he terms a judicious basis, he, therefore, necessarily accumulates wealth at your expense. The question might here be asked : does he contribute anything to you beyond the money value he pays you in exchange for your grain ? On the face of the transactions of daily occurrence it is patent not It is also equally admissable that by becoming the shippers of your own produce, whether it be much or little, you receive the full Normal Yalue 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 so much 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. You would receive the fullest return by this means, whicli it ia possible for you to obtain ; and which you could not possibl}' accomplish in your present unorganised posit on; and consequently you are too weak to grasp matters essential to your well-being It has been contended by some, that these “ large local buyers” of your productions, are mostly animated by speculative ideas ; and, as such, 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 depression of trade ; for if the grain buyer is successful, thai success what ever i t might be, comes from your productive industry. Your Present Position is an invidious one, so far as regards your relationship with that particular section of the community from whom you buy your requirements ; and to whom you sell your products, it is so, because they both make money, out of their dealings with you, in what is now-a-days called “business.” These individuals may, de facto, be likened unto mere satellites and revolve round those who are engaged in the producing industries, without contributing anything in shape of value in return Their very trade depends upon these, and, consequently, it follows, that should you be resolute enough to become your own disbursing agents, it is possible that your position will be changed, and with respect to them, turn out to be an envious one ; | for the simple reason that you retain that j which under your present system of trading, maintains them.