LECTURE ON ADVANTAGES OF CO-OPERATION.

Temuka Leader, Issue 309, 26 October 1880, Page 2

LECTURE ON ADVANTAGES OF CO-OPERATION.

Thk following is the second an 1 third parts of tiie lecture delivered by Mr Bateman, iu Temuka, on Tuesday last : The Principles of Co-operation under the second heading, are of so sound a character, that it is more (Iran probable that at no distant period they will have muck weight in revolutionising certain rooted interests ; and when these principles are baiter and universally known applied, so in proportion will there be an individual and national progression. The Principles of Co-operation are in themselves highly commendable. The original of Co-operative Associations is of a very recent date. The first one was established in the year 1844. The object of its promoters was to obtain cheap and unadulterated food. Under its rules each member is entitled to receive at stated periods a division of the profits. The members are not only individually strong supporters of the associations, bat, in no small degree, contributes to its prosperity. Tiie laid down primary principle is that the business is all conducted upon a strictly cash basis. Co-operative Associations of this character, are termed societies of consumption, the object being to buy and sell both to members and to non-members, but in dealing with the latter, 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 humble way, by contributing only a few pence each in a series of weekly payments to the joint funds. The few enterprising woikmen who had the courage to start tire first Co. operative store, at a time when trade was in almost unprecedentedly bad state, were 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 these work men to look in that quarter for relief was a hopeless thing. Their consistence and steady adherence to right principles, led them on to make tiie attempt to get better value for the paucity of their earnings, by buying as they termed it at wholesale and selling to members at retail prices. The articles were to be unadulterated and of the very best kind, and the profits were to be divided among themselves in proportion to the business of each. The principle of combination in this small way was one of the first things which they sought to establish, Tiie 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 those who are members. The measure of success which has attended these associations has been sc marked, that, on the most unquestionable authority, the members have been able to a»ve fully ten 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 initiated, for twenty shillings. In addition to the above system of Cooperation there are other forms, namely, associations of producers, tne object of which is to sell the collective or individual work of the members; and also as-ocia tions of credit or banking ; thti object of the latter is to open accounts of credit with its members, and advance them loans for Industrial purposes. The whole system of Co-operation is based upon self-reliance and thrift, and is worked upon the principles of economies. Coming to the third division of this subject of Co-operation, the following w>ll show you the extent of the development attained by Co-opera'ive Associations. In order to make the advantages arising out of amalgamation still mote lucid to you, it will not be am.ss to compare them with those of the most successful hanking companies of the day.

It is generally a pleasant duty for the Chairman of Directors of am h an institution 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 has been so exceedingly prosperous, that this Board has little or nothing to say : and that he has only to submic for their approval the handsome dividend which it is his gratifying duty to have to declare, and which in itself is quite sufficient to justify the Board in assuring the shaieholders that prosperity of an almost unbounded nature has prevailed. After such an announcement, every one departed with the happy thought that the Chairman’s statement is a very satisfactory one. It will not be assuming too .much upon myself if I endeavom to emulate the ’xample of this gentleman, by showing you what have been the declared results in connection with co-operative move, incuts to a very recent period, by submitting to you, even a more favorable account than our imaginary friend the bankers. The manifold advantages which arise from the amalgamation in one common cause of those in connection with productive industry, either as consumers, or as those who do business under a co-opera-tive system, are indeed of a most marvelous kind. The revolution in the method of doing business which the organisation of these associations has brought about f is now' gradually assuming very wide dimensions. The business started in a very humble way. The old saying “out of little much may come ” is truly applicable in this case.

England stands at the head in societies of consumption, and Germany in those of credit The Co-operative Societies, in England, which transact business under the title of workingmen’s stores, on a capital of about £6,000,000 sterling, turn over more than three times that amount yearly in sales ; and yield to the members a net profit of approximately £2,000,000 ; so that on the capital employed, the yearly dividend is over thirty per cent. Nowgentlemen do you not consider this a most satisfactory dividend to declare? Under your present method of dealing, a proportinate sum to this, according to the amount of your purchases for articles of consumption, 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 htade in Germany with the Cooperative Credit System has been equally successful.

As recently as the year 1849 the Credit Society, which is practically a bank, com. mencttd operations in the small German town of Delitzch, comprising only 6,000 inhabitants. This financial institution was organised on principles specially adapted to meet the requirements of tli e working classes. In 1877 the members owned £8,000,000 in capital ; which, according to the latest advices, is more than one-half 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 of 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 ; aud is nearly three'times the total amount of the due to the whole of the banks now doing business in this colony ; and more than the tot <l amount of debts due to the whole of the Banks in the four colonies of New South Wales, South Australia, Queensland, and Tasmania, ihe year 1877- In bringing this somewhat long address to a close, I have to ask you to accept my best th inks for your attendance, and I venture to hope that these few observations will have the effect of inducing you to accept the grand principles commercial reform, and that you will become strong converts to this cooperative movement. You will, I hope, go txway in very much the same kind of spirit as that which our genial friend the Banker succeeded in infusing into the minds of the proprietary of his Bank* when he announced to them a highly remunerative dividend. Unce more, gentlemen, allowme to impress upon you the importance of your arrival at a speedy decision on this great question of cooperation* For if you neglect to avail yourselves of its many ad -’aatages, you will sooner or later regret your want of union.