744 THE POPULAR SCIENCE MONTHLY. 



the " History of Cooperation," in two volumes, which all should read 

 who wish to know how the movement arose, who labored for it, and 

 what its ultimate aims are. 



The rules of the Rochdale society are accepted by the chief expo- 

 nents of cooperation as being thoroughly wise and judicious. The 

 society sells its goods at the current rates charged by retail merchants, 

 thus avoiding the direct underselling of shopkeepers, and withholding 

 the profits of their system from non-subscribers. Buyers are given 

 metal tokens, representing the value of the cash they pay in. Quar- 

 terly stock is taken, and the rate of profit ascertained ; then, after pay- 

 ing subscribers to capital their interest at five per cent, per annum, 

 buyers are paid in cash, or credited in the ledger, as they choose, with 

 the amount of their dividends, computed on the tokens brought in. 

 The majority of buyers have their dividends credited to them, thus 

 virtually establishing a savings-bank account, and affording the soci- 

 ety means for the extension of its business. Connected with the store 

 are a corn-mill, a shoe-factory, and a soap-factory. 



The capital of the cooperative societies is, as a rule, nominally with- 

 drawable. As large investments are often made in real estate, machin- 

 ery, and other property not readily salable, the necessity has become 

 evident that the trading capital of a society should consist in transfer- 

 able shares like those of a joint-stock company while the deposit 

 capital can only be withdrawable at call. Thus an element of stability 

 is introduced, which prevents a temporary panic or stress of bad times 

 from winding up a really sound society's business. 



The societies are managed by committees usually elected for a year, 

 and annual statements of affairs are required by the Government. To 

 watch over the collective interest of the societies, they appointed in 

 1870 a Central Cooperative Board, with its office in Manchester : this 

 body has obtained for cooperation all needful legislation, and the re- 

 moval as far as possible of obstacles to its right action. The exemp- 

 tion of the societies as such from income-tax, the limitation of the 

 liability of members for the debts of a society to the sum unpaid upon 

 the shares standing in their names, and an easy method of bequeath- 

 ing shares without expense, were assured by the Central Committee to 

 which the Central Board succeeded. The Board since its formation 

 has prepared and published the land, building, and mortgage rules, 

 necessary to be observed by societies ; and a series of general business 

 rules well thought out and thoroughly tested by experience, whereby 

 new associations may avoid the weaknesses and errors which have been 

 the causes of cooperative failures in the past. For the further assistance 

 of the societies scattered throughout the country, a general secretary 

 of legal attainments is engaged to give such legal and practical advice 

 as from time to time may be sought. The Central Board has estab- 

 lished at Manchester " The Cooperative News," a weekly journal, and 

 in addition it circulates broadcast cooperative tracts and pamphlets. 



