particular time a compact body of masters might keep down wages below what would be the market rate were there an opportunity for free 'haggling,' as Adam Smith calls it, between individuals. Besides, an individual workman would be in a state of almost slavish dependence, had he not a union to support him; and it is little consolation to him to be told that, in the course of some, perhaps many, years, the mischief would work its own cure by the operation of the well known laws of political economy. So long as the present relations remain we feel certain that combinations of this kind will subsist between the men, as they always do, in some form or other, between the employers. Those who wish to remove the evils caused by trades' unions and strikes should therefore endeavour to instruct the artisans in the truths of political and social economy, so as to direct the action of their combinations aright, rather than attempt the hopeless task of inducing them to forswear those societies altogether.

There is nothing unjust in the relation of employer and employed, the former paying to the latter wages, and taking the profit and loss of the concern; on the contrary, that relation has been productive of much benefit to both parties, and particularly to the employed. Still the position of the latter is one out of which a prudent and thoughtful man must be anxious to .emerge, if he can do so by fair and honest means. A worker for wages cannot help feeling that he is in a somewhat passive state, that his fortunes are not in his own hands,-that he is in a great measure dependent on the will of another. Again, he who simply receives a periodical sum which continues or ceases owing to the operation of causes beyond his control is to some extent in the position of a child, not getting that education and training in the affairs of life which arises from taking part in the transaction of business; and consequently we find that artisans are, as a class, imprudent. It is not, therefore, to be wondered at that there is a strong, and, indeed, an exaggerated, feeling among many of the handicraftsmen against the system of working for wages, and that the more thoughtful of them, both here and abroad, have been casting about for some mode of placing themselves in a position to be their own masters. Still, the strong tendency of business to concentrate itself in large concerns leaves no doubt that, so far from any more openings occurring than heretofore for men to alter their condition by becoming small manufacturers, it is probable that that class will be eventually superseded, even in the trades which are now in its hands. The only course, therefore, left open to workmen who have an ambition to emerge from the condition of mere wage-earners is combination of And here they have the benefit of the example of the

means.

classes

classes above them. They see how, by the aggregation of the comparatively small contributions of great numbers of persons, vast enterprises, involving the construction of huge waterworks or gasworks, railways costing many millions, and fleets of steamvessels, are carried into effect to the great benefit of the public, and generally to that of the shareholders, and they naturally ask, why should not working men accomplish objects which are less colossal in proportion to their own means than are these undertakings as compared with the wealth of the middle classes?

In England until recently the laws of partnership threw hindrances in the way of the conduct of ordinary business by combination; but the passing of the Limited Liability Act, and of the Provident Societies' Act of last year (which among other provisions extends limited liability to Provident Associations), has removed nearly every obstruction. Owing probably to the defective state of the law here, the successful establishment of associations by handicraftsmen for conducting works and manufactures began earlier on the Continent than in this country, where the co-operative spirit took at first the form of societies for supplying the members with articles of consumption by means of shops and flour-mills.

During the last seventy or eighty years many attempts have been made to establish something of this kind, but until about twenty years ago we believe all the enterprises established by the working classes proved failures (owing, as it is supposed, mainly to their having adopted the unsafe practice of dealing on credit); and of those founded by the middle classes, such as succeeded soon ceased to be consumers' associations, in the proper sense of the word, becoming mere ordinary trading companies.

The real working men's associations may be said to have had their origin in the Leeds Corn-mill and the society called the Equitable Pioneers at Rochdale. The great success of the latter body, and the fact that nearly all the co-operative stores, now so numerous over the kingdom, have been modelled more or less after it, will justify us in giving its history in some detail.

In the year 1844 a few poor flannel-weavers of Rochdale, belonging to the numerous class of workmen who were dissatisfied with their lot, after casting about amongst various schemes for amending it as Owenism, Chartism, &c.-at last thought that if they were unable to devise any mode of increasing their income they might at any rate economise their expenditure. They knew that the prices charged at the shops where they dealt were greatly in excess of what the goods might be bought for wholesale with ready money. The numerous shopkeepers, they were aware, had each to pay rent, rates, taxes, expenses of advertising,

advertising, and to obtain a living profit from a small aggregate of returns. They saw also that the tradesman gave long trust to most of his customers, thus making bad debts; and that as his own capital was but slender, he was obliged to take credit from his wholesale dealers, and therefore was not able to buy in the cheapest market. The shrewd northern intellects of these weavers perceived, therefore, that if they had self-denial enough to eschew credit, and put by something weekly out of their slender wages until they had accumulated a small capital to begin with, they might supply themselves on much better terms than by dealing at the shops.

It would, however, be a great mistake to suppose that these men were actuated merely by the desire of cheapening their consumption. They belonged to the thoughtful, earnest portion of the working classes, who, however they may for the time be led astray by false lights, are sure in the end to find the true road. They are of the stuff of which our Arkwrights, Hargreaves, and Stephensons are made. They had that, without which we believe no great social improvement was ever effected, a strong moral feeling a deep conviction of the rightfulness and weightiness of their cause. They had been Owenites, and had much of the philanthropic benevolence of their amiable though sadly-mistaken leader. The best part of Owen's doctrine was a strong objection to the credit system of dealing; and to this principle these worthy weavers clung tenaciously. Again, several of them had a conscientious scruple about taking an oath, so that they would have been at the mercy of any dishonest debtor who chose to drive them into court for their due. Some of them, indeed, had a tenderness with respect to suing, and would rather lose money than go to law to recover it. They therefore determined neither to take nor to give credit; and from this resolution they have never swerved. Most fortunate for them was this determination, for in the hands of men so ignorant of business as they were at starting, credit would have been a most dangerous edgetool. But the necessity of paying at once for all that they bought kept them out of speculation; and to this their coming safely through many perilous conjunctures may be attributed.

Meetings were held to form a store association, at which let us record the names of James Daley, Charles Howarth, James Smithers, John Hill, and John Kent, as taking an active part. With the straightforwardness and honesty which characterised all their proceedings the promoters placed themselves at once within the control of the law, enrolling the concern under the Provident Societies' Acts then in force.

With the simplicity which often accompanies great earnestness of character, these honest men believed that they were to regenerate society altogether, putting forth their views in language which would have been almost ludicrous were it not that the actual results, though not, indeed, fufilling the whole of the programme, have been so great and beneficent.

The modus operandi by which this grand scheme was to be launched was the contribution of two-pence a-week by each of the twenty-eight (afterwards increased to forty) promoters. This payment was subsequently raised to three-pence, and the collection was continued until 287. had been gathered, when a small shop was taken in a back street called Toad Lane-a corruption of 't' Ode (the Old) Lane'-at a rent of 107. per annum. William Cooper-then a mere youth-was appointed cashier, the benefit of whose able and faithful management the concern still enjoys; and Samuel Ashworth undertook the duties of salesman, which, however, were at first but light, since, after fitting up the shop, only some 147. remained wherewith to purchase goods; indeed, a neighbouring tradesman said, in derision, that he could wheel away the whole stock in trade in a barrow. But the worthy pioneers had more serious discouragement to bear than ridicule. Their ignorance of the trade they had taken up, and the slenderness of their capital, prevented them from obtaining their goods either of the best quality or at the lowest price. And thus the more lukewarm of the members were discouraged, and began to discontinue dealing at the store.

This unfaithfulness in dealing-so to speak-is the most constant subject of complaint of co-operative store associations in their earlier days, many of the members and their wives being unwilling to make the temporary sacrifice of going a somewhat longer distance to effect their purchases, or of putting up occasionally with goods not of the best quality, which must sometimes be supplied, owing to the mischances necessarily occurring before the committee has acquired experience in the business. As the meeting the expenses and making a divisible profit depend upon the amount of sales, dealing constantly at the stores is naturally looked upon as the duty of an earnest member. When a concern has passed through its early difficulties, and has become prosperous, interest and duty go so clearly together that the complaints cease. In the Rochdale Store the evil was so severely felt that a proposal was once made to pay out those members who did not deal regularly, which, however, was rejected on the ground that it would interfere with the freedom of action of the associates.

And

And here we would mention a very important principle introduced by the Rochdale Association * the division of the profits among purchasers-which was originally proposed by Mr. Charles Howarth, one of the founders. In all previous concerns of the kind the profits appear to have been divided among the members in proportion to the shares each held in the concern, but the Rochdale Pioneers determined that, after paying a fixed percentage upon the capital, and setting aside a sufficient amount for a reserve fund, the remainder the profits properly so called-should be divided among the customers rateably on the amount of their purchases. And, assuming that the capital is well secured (and that the members think so is proved by the fact that the Association, except in 'its earliest years, has always had a redundancy, rather than a deficiency of capital), this is clearly the just mode, the real co-operation. A number of persons associate to enable themselves to buy goods on more advantageous terms than they could do separately. As there are outgoings to be met, in the shape of working expenses, loss from goods spoiling, deterioration of stock, &c., it is necessary to sell at an advance upon the cost price; and, to be on the safe side, this advance should be sufficient to cover the maximum of outgoings. Under these circumstances it is clear that, as a general rule, there will be a surplus at the end of the quarter, and after a fair interest has been paid to the owners of the capital, this surplus evidently belongs to those whose purchases have produced it. It is, indeed, simply restoring to them the excess of what they had paid on an estimate of outgoings over what has proved to be the actual amount. The ordinary course is to charge the prices usual in the shops of the town, supplying, however-what those establishments do not always afford—a genuine article of good quality, and in full weight or measure.

This mode of dividing profits is a very important cause of the success of co-operative shops. It suits itself exactly to the circumstances of the poorer classes. A man when admitted to membership is usually required to take five shares of one pound each, upon which he pays three pence a week until the amount is made up. He deals at the store, receiving at each purchase tokens showing what he has spent ; and on the declaration of profit after the periodical balancing of accounts, he becomes entitled to his quota of dividend on the amount of tokens produced-sixpence, a shilling, eighteen pence, or even two shillings and upwards in the pound, as the case may be. His profit, by the rules of most

* It is alleged that a co-operative society in Scotland adopted this plan at an earlier period; but, at any rate, it was an independent discovery in Rochdale, whence it has spread over the country.

societies,