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SCIENCE. 



[Vol. X. No. 240 



by me as a salaried agent, sends delegates of the associations be- 

 longing to it to an annual general assembly, which controls the 

 affairs of the union as supreme authority, without interfering with 

 the independence or with the special affairs of the individual socie- 

 ties. As connecting links between the central authority and in- 

 dividual associations, subordinate unions, which embrace the socie- 

 ties of various German countries or provinces, or of special branches, 

 have been formed, whose task it is to attend to their special interest, 

 and to communicate between them and the central authority. They 

 prepare for the general assembly in special assemblies of their own, 

 and enforce the resolutions of the former in their districts, while the 

 presidents chosen by them form a committee which assists the 

 agent in carrying on the business of the union" in the interval 

 between the general assemblies. Thus, without interfering with 

 the free action of the individual societies, a central point is created 

 for the exchange of experiences, for the sifting and criticising of the 

 ever-accumulating material, for advice and help for members in any 

 kind of embarrassment, and finally for common defence against 

 threatening danger. Add to these advantages the most valuable 

 business relations between the several societies in the execution of 

 commissions, and especially in mutual assistance with capital." 

 The resolutions of the general assembly have only the force of ad- 

 vice, and their acceptance is enforced only by the weight of their 

 own reasons, and not by pressure of any kind. 



The number of societies in this association increased from 171 in 

 1859, to 771 in 1864, and was 3,822 in 1885. At the last-named 

 date they were distributed thus: loan and credit societies, 1,965; 

 co-operative societies in various branches of trade, 1.146 ; co-opera- 

 tive store societies, 678 : building societies, 33. At the end of 1 884 

 the membership was 1,500,000. Of their own capital, in shares and 

 reserve funds, they possessed 300,000,000 marks ; and of borrowed 

 capital, 500,000,000 marks. 



It may be mentioned that the co-operative movement in Ger- 

 many is unfortunately at present associated with the Radical 

 political opinions. Even Schulze, though at first he kept the 

 movement free from political color, was carried along by the tide 

 in his later years. The consequence has been that co-operative 

 enterprise on the self-help principle is looked upon rather with sus- 

 picion by the ruling authorities. 



Co-operative store associations exist in considerable numbers in 

 Germany, and are in the main very successful. They bear the 

 name of Consumvereme. Many of the earlier associations confined 

 themselves to making contracts with dealers, provided that the 

 latter granted a discount to the association on all goods sold, 

 which discount was, after deduction of expenses, divided among 

 the members. 



Those formed since 1863 have followed more and more the 

 principle of similar English associations. They give no credit, sell 

 at the market price, and, after providing suitable interest for the 

 business shares of the members, divide the net profits in proportion 

 to the goods bought, which proportion is marked by dividend 

 counters ; but there are some very well conducted societies which 

 sell at the lowest price possible, and divide the profits equally, or in 

 proportion to the business shares of the members. As in England, 

 the more developed societies are gradually undertaking the pro- 

 duction of their own goods. The South German associations have 

 taken a step towards the establishment of a common wholesale 

 business by forming a joint stock company for the purchase of 

 goods at Mannheim : in North Germany this was in 1878 still re- 

 garded as premature. Nearly all the important co-operative store 

 associations have registered themselves under the Co-operative 

 Societies' Law. 



The proper principles on which such associations should be con- 

 ducted are laid down by Schulze-Delitzsch as follows: i. Those 

 who buy from the society should themselves be members of it (sale 

 to non-members is, however, allowed as being likely to induce the 

 latter to join) ; 2. Business shares should be gradually ac- 

 quired by the members up to a normal sum by the payment 

 of a small subscription, or by accumulation of their divi- 

 dends ; 3. A common reserve fund is formed by keeping back a 

 certain number of shares, and by a small entrance fee for mem- 

 bers ; 4. Capital is borrowed on the common security of members, 

 or (though this should be avoided) goods are bought on their com- 



mon credit ; 5. Sales are for ready money, the profits being divided 

 between the reserve fund and the members' dividends ; 6. The 

 manager and officials are paid according to the work they do ; 7. 

 The number of members is unlimited, entry into and withdrawal 

 from the society being equally free. 



These rules, being stamped with the great authority of Schulze, 

 represent the general principles on which the vast majority of co- 

 operative associations work, and are recommended to all by the 

 Central Union. 



The number of these co-operative stores twenty-five years ago 

 was 41 ; in 1885 it was 678. Their average sales in 1884 were 

 190,025 marks. Their average holdings in business shares are 24 

 marks 6 pfennigs per member, and in resen'e funds 14 marks 3 

 pfennigs per member. One hundred and sixty-three of the socie- 

 ties showed, in 1884, a dividend on capital and purchases of 

 2,412,366 marks, or 85 per cent. 



For the failures in 1884 numerous reasons are given. One society 

 failed in consequence of their " unfortunate choice of a store- 

 keeper ; " another in consequence of quarrels among the members ;, 

 a third society were obliged three times to change their storekeeper, 

 and eventually came to an end in consequence of the impossibility 

 of finding a suitable person ; a fourth came to grief in consequence 

 of the desire of the members to divide the reserve fund. On this 

 latter rock many societies have split. As soon as the society finds 

 itself possessed of any considerable sum of money, individual con- 

 fidence seems to give way, and greed of the immediate possession 

 of their own share prompts the members to dissolve the asso- 

 ciation. 



Co-operative workshops are not numerous in Germany, and the 

 general opinion is unfavorable to them. 



The favorable years, from 1870 to 1873, seemed to bid well for 

 the establishment of a system by which the workmen should be 

 made participators in the profits of their industry ; and the govern- 

 ments of Germany took pains not only to try the system in their 

 own works, but to obtain information as to its working elsewhere. 

 The initiative was taken by Bavaria ; and from an inquiry made in 

 1874 from fifty Bavarian firms, of whom about thirty sent replies, it 

 appeared that in most cases such participation was confined to 

 premiums, gifts, and a percentage to overseers and foremen. These 

 cases were chiefly the result of individual liberality on the part 

 of employers of labor, and, as they ceased in the time of industrial 

 depression which succeeded, they are without scientific value. 



The ' Report on Arrangements for the Benefit of Workmen in 

 the Larger Industrial Establishments of Prussia,' published in 1876 

 by the Prussian Government, states that at that time there were 

 439 cases of establishments in which the workmen shared in the 

 profits, and 61 where they shared in the capital. A closer analysis 

 of these figures, however, shows that in most cases such participa- 

 tion was confined to the foremen and overseers, and that in only 

 16 cases did all the workmen have a share at once in the under- 

 taking, and in 18 others after a certain lapse of time. 



Schulze-Delitzsch always declared that productive associations, 

 i.e., " associations of a number of small masters or of wage-laborers 

 for the purpose of industry on a large scale for common account 

 and at common risk," was the highest form of association, and the 

 keystone of his whole system. Such associations, he pointed out, 

 are most easily established the less capital they require, and the 

 more readily the goods produced are sold. They are most difficult 

 to establish in branches of industry which, owing to minute division 

 of labor, require the co-operation of workmen of different trades, or 

 which entail expensive machinery. 



Hitherto the general history of productive associations in Ger- 

 many seems to have been pretty nearly the following : a not very 

 large number of workmen join together to establish a common 

 workshop and sell their products for common account. The 

 original intention of admitting new working members is frustrated 

 by the fact, that, whereas an individual capitalist can increase or 

 diminish the number of his hands according to the requirements of 

 the market, every unfavorable conjuncture has the effect, in a co- 

 operative association, of leaving some of the members not fully 

 occupied. When better times come, the admission of new members 

 is looked on with disfavor, because it only renders the position of 

 the others worse if times of depression return. There is, further. 



