^"UXDAMESTAL RULES OF COOPERATION. 215 



put with $1,000 worth of fruit owned by the cooperators. The 

 finished product has usually sold for less than the aggregate 

 cost, and as canning operations very rapidly run into money, 

 the losses have often been such as to involve heavy assessments 

 on tlie stocklioldcrs to make them good. It is not safe for any 

 cooperative society to attempt such things. They may succeed, 

 but when they do, it is because one or more public-spirited 

 y)ersons give to the community the benefit of their talent and 

 industry which they might have used to build up their own 

 fortunes. 



Cooperative societies must do a strictly cash business. Any 

 serious departure from this is nearly certain to involve dis- 

 aster. If there is no money in a community, or among those 

 who wish to cooperate, it is best not to try to do business. If 

 there is little money, keep down the scope of the enterprise 

 to suit the amount of capital. By retaining all the profits in 

 the business, as additions to capital, the business can soon be 

 extended. 



This is a very important point. Few understand the accu- 

 mulating power of capital judiciously managed. Suppose one 

 hundred persons, having $10 each, start a cooperative store, 

 undertaking to buy only for cash. Such an enterprise could 

 not possibly succeed if ordinary rents and mercantile salaries 

 were paid, because the expense would exceed any possible 

 profit on sta})le goods to that amount. If any show whatever 

 is made, or attempt to attract trade by advertising or display, 

 the capital is almost certain to disappear. But if the owners 

 will not despise the day of small things, and will be content 

 for a time to go to some out of the way place, involving little 

 or no rent, and undertake to make their purchases of evenings, 

 it is possible for great results to follow; by restricting the 

 commodities dealt in to a few staple articles, it would be quite 

 possible to turn over such a capital once a month, at an aver- 

 age net profit of five per cent; a hundred families loyally sup- 

 porting their own business, would certainly purchase goods to 

 the value of $1,000 per month. This, at the end of the first 

 year, would give a capital of $1,500; at the end of the second 

 year, $2,250; at the end of the third year, $3,375; of course, as 



