36 JAPAN - CO-OPERATION AND ASSOCIATION 



As regards production, there is a special department with storehouses 

 for the members' produce. The members may produce individually or 

 collectively. These societies neither grant loans nor advances; however, 

 they give warrants for the grain deposited. These warrants have various 

 names {beiken, bakii-ken), according to the class of grain. 



The producing member may only sell through the society. The 

 method of sale is, as we have said, identical with that in use in the 

 co-operative credit and sale societies. 



Finally in the co-operative societies of the third class (production, 

 credit and sale), we find the special characteristics of each of the two pre- 

 ceding classes for each of the kinds of business they perform in common 

 with them. 



Having thus briefly treated the constitution and working of these 

 societies, let us now give some examples from the report of the ministerial 

 enquiry, limiting ourselves to those that may have some interest for our 

 readers. 



Before, however, beginning this practical examination, we think it 

 well to make certain general observations that will serve to explain the 

 facts to be given later. 



It is necessary first of all to observe that these small societies, which 

 are a real providence for the small Japanese farmer, are strictly local 

 in character ; which, if on the one hand it greatly limits their material im- 

 portance and the extent of their business, does not at all affect their social 

 importance. If the reader, therefore, finds the figures small which we 

 reproduce below, he must remember the special character of these soci- 

 eties and principally their essentially local nature. On the other hand, these 

 are the most common characters of the whole economic and social develop- 

 ment of Japan. While in most countries of advanced economic progress, 

 there is a marked tendency towards concentration of the various activities 

 in a few powerful corporations and while the great development of these 

 latter produces a system of competition in which the smaller corporations 

 are forced to disappear or to unite with their rivals, in Japan we find a 

 distinctly different state of things. Decentralisation here is most marked : 

 independent organizations are started in various points of the coimtry, ac- 

 cording to local requirements, estabhshing territorial limits for them 

 selves and even imposing limits on themselves, beyond which they may 

 not extend their action. The Hmitation of their field of action implies no 

 corresponding Hmitation of their local activity. These various associations 

 recognise in their absolute independence a necessar}' condition of their 

 existence, and even the most flourishing of them are not ignorant that to 

 engage in a struggle with their rivals, even if it led to victory, and to an 

 increase of their importance, would be most unlikely, in view of local 

 conditions, to give them the tangible benefit of a real increase of profit. 

 And, therefore, we find in Japan this strange and interesting phenomenon 

 of the foundation of innumerable associations, agricultural societies, co-oper- 

 ative societies, guilds, trades unions etc., which all, while very insignificant 

 in respect to the number of their members or the amount of their business, 



