SECT'RITY IN COOPER ATIVK SOCIKTTES. 233 



lost. The cooperative societies of Culilbrniu were organized 

 as selling agencies ; if they acquire the habit of seeking to 

 "corner" the markets, and do it on borrowed money, they are 

 doomed. Hence, while advances to a certain extent are nec- 

 essary and pro^Der, cooperative societies should use caution; 

 if the pressure for advances is quite general, and tends to 

 approach half the value of the product or more, push sales a 

 little harder. Have no fear of "weakening the market;" 

 the market is already weakened when the owners of a product 

 are compelled to borrow money on it ; a cooperative marketing 

 societ}'- will be tested by its efficiency as a selling agency 

 rather than by its effectiveness in obtaining loans on products 

 held for an advance. 



Simplicity OF Object. — It is perhaps unnecessary to add 

 to what has been said before on this topic. At present cooper- 

 ation is not competent, in this country at least, to deal with 

 complex mercantile or manufacturing operations. If success 

 is achieved, it will be due to the public-spirited efforts of one 

 or two persons, and not to the inherent force of the cooperative 

 body. A creamery, a fruit drier, a selling or purchasing 

 agenc}'', and similar enterprises may be expected to succeed 

 in communities requiring them. 



There are some other matters essential to success, which 

 may perhaps be more appropriately considered under the 

 heading of the next chapter, but on the whole a cooperative 

 enterprise designed to accomplish a simple and desirable end, 

 with adequate capital and free from debt, ought to succeed. 



