Principles of Co-operation in Agriculture. 387 



trade, while the loyal and active support of the members would also 

 be required in order to maintain a uniform supply. 



Ag-ain, societies may find it necessary to combine and establish 

 a central distributing and supply agency. 



Whatever the conditions and circumstances may be, it should be 

 made a fundamental rule that no risk whatever should be incurred. 

 There should, for instance, be no speculation with members' produce 

 by attempting- to " rig- " the market, or something- of that nature, even 

 if the society or combination of societies is strong enough to do so. 

 The risk involved in such a procedure may not be very great, provided 

 there is a steady, assured market for the kind of produce the society 

 has for disposal, but it becomes quite a different matter when the kind 

 of produce is generally an uncertain crop, and the consumption varies 

 a g'reat deal, so that prices are likely to be affected in a way not to be 

 foreseen. 



Coming now to the question of audit, the history of agricultural 

 co-operation in other countries, and I may add in our own, furnishes 

 a clear indication that regular and detailed investigations of the books 

 and affairs of co-operative associations by persons thoroughly versed in 

 the intricacies of the particular business transacted, are essential. 



Auditing a co-operative society's accounts is a different matter 

 altogether from auditing those of an ordinary business. The methods 

 of business, the aims, the accepted practices, are different. Also the 

 nature of the business transacted by some societies is such that the 

 cumulative effect of the mistakes made is not immediately discernible, 

 and it follows, therefore, that unless very special attention is given to 

 this important matter, the results are sure to be disastrous. 



I have already referred to ihe very important question of good 

 management. I now wish to offer a few remarks on something equally 

 essential, if not more so, namely, the loyalty of members. It is neces- 

 sary that each member should bear in mind that the success of the 

 organization depends upon the combined eff'orts of its members in 

 giving every possible support to the movement. They should fully 

 realize that the association's interest is their interest; its gain their 

 gain ; its loss their loss. There should be no yielding to the seductive 

 blandishments of interested persons anxious, for obvious reasons, to 

 break up their association, even at a temporary sacrifice. 



No member should, in handling his crop, be interested only in his 

 own immediate success, and look upon his association merely as a new 

 shop at which he may deal or otherwise at his pleasure. The associa- 

 tion must know definitely what it is expected to do. It is clearly 

 impossible to form a correct estimate of the volume of the business to 

 be handled, the expenses to be incurred, and the preparation to be 

 made to transact the affairs in an orderly and economical manner if 

 the loyalty of the members cannot be depended upon. 



The surest way of procuring that loyalty is obviously for the 

 association to offer some distinct and direct material benefit. The 

 members must believe that the co-operative principle is sound, and 

 this belief must be founded on the Inisiness results of the organization, 

 as well as on its larg'er influence on the development of the industry 

 as a whole. 



