THE CENTRAL CO-OPERATIVE UNION OF FLAX GROWERS I9 



year, 1915-1916, the turnover was more than 1,500,000 roubles. It was 

 possible to obtain these results in spite of the scepticism of the public and 

 insufficient propaganda, and in spite of the small number of truly expert 

 co-operators within this sphere. 



It should be noted that the work of distributing the selected and in- 

 spected seed is enormously important to flax growing. For the first time the 

 exchange of seed among co-operative societies, without the intervention of 

 dealers, has been organized. The zemstvos which]^began the distribution 

 'of selected seed were often obliged to have recourse to dealers, and were 

 not seldom cheated, so that the loss of whole harvests in a given district 

 resulted. As early as igi6 the influence of this work of the union was first 

 felt, the good quality of the seed causing in many places harvests notably 

 above the average. The Central Union was able to pay the peasants from 

 one to three roubles a pud more than they had obtained in the market 

 and yet to make a profit of 5,981 roubles. 



At the congress held at Moscow in August 191 6 it was resolved to in- 

 crease the financial strength of the Central Union. The number of shares which 

 shareholders must buy was therefore increased. Each co-operative union 

 is now obliged to buy at least three shares, each co-operative credit society 

 five shares, each provincial agricultural society ten, and each consumers' 

 and agricultural co-operative society two. The societies may not make ad- 

 vances of funds. The Central Union retains 2 kopeks (i) per pud sold for 

 costs of management and 10 kopeks for the formation of an insurance 

 fund. The relations of the Central Union with its member associations have 

 been unified. From the second year onwards each co-operative associa- 

 tion must present to the Central Union data as to the quantity and quality 

 of fibre, the market price, and the conditions of payment which it desires. 

 Thus only will the Union consent to become active, and to regulate, as 

 circumstances render necessary, prices and the forms in which payment 

 is made. 



Besides this commercial enterprise the Central Union exercises another 

 no less important form of activity. In addition to its weekly bulletin it 

 has published leaflets of propaganda and has furnished information as to 

 the treatment of flax and the sale of products. For this object it has 

 founded a special office to which an instructor and ten specialists belong. 



There is no doubt that in the near future, as soon as the idea of co-ope- 

 ration has penetrated the masses, the inflow of flax into the co-operative 

 depots will enormously increase. 



We have but to examine the development of this form of co-operation 

 in the various districts of Russia, as shown by the good results of the first 

 year, in order to find confirmation of the forecasts of the managers of the 

 Central Union. 



Thus at Rybinsk the people are beginning to understand that it is 

 the co-operative sale of flax which is the most profitable. The number of 

 co-operative associations which undertake in advance business guaranteed 



(i) I kopeck = about V4 d. 



