CO-OPERATION IN SPENDING

The question arises as to whether help is to be expected from

co-operative distribution, which has had such an extraordinary history

in England and been highly developed in a number of the other European

countries. There is always the temptation to recall the winter evening

in December, 1844, when twenty-eight weavers, of whom two were women,

opened in Toad Lane, Rochdale, Lancashire, a little shop, and began to

sell themselves the necessities of life. Their remarkable services in

England have not been confined to their business undertakings, but

have always included important educational activities.

In America there have for many years been a few co-operative stores,

some succeeding, some failing, most of them working out their plans

independently without connection with other similar stores from whose

experience they might profit. Within the last few years, however, the

number of such stores has greatly increased and the need for closer

union has been felt. This has resulted in the formation of the

Co-operative League of America. Education in co-operative buying is

its main purpose. At what appears to be the beginning of an important

period in the extension of the movement in this country it is worth

while to consider how far the existing co-operative stores in this

country are helping the foreign-born women.

Anything that assists her to lower the cost of living is beneficial.

Although sound practice dictates that consumer's co-operatives sell

their goods at prices current in their neighborhood, the profits to

the members appear in the return of a per cent of all purchases. In

proportion as the local stores are able to supply the housewife with

all her goods, the saving on the purchase of her daily needs will be

more appreciable. Her interest in the enterprise will make her demand

both greater variety and better quality of goods.

Moreover, there may be other than material gains to the foreign-born

woman from her contact with a co-operative. If it is one formed by her

countrymen, where her mother tongue is spoken, it may be her first and

for a long time her only contact with anything outside her home.

Natural timidity will readily be overcome if she can go around the

corner to a store kept by people who speak her language and understand

her wants. As confidence is established she may venture to other

neighborhoods or centers of distribution where more advantages can be

gained. But unless she gains the confidence which few immigrant women

have at first, she is an alien and isolated unit in a vast, strange

country. Eventually she may become a member of a co-operative store.

If she does this, perhaps the most benefit to the foreign-born woman

results. Her incorporation into this country may well be said to have

been started when she has become an active member of an institution

which is a part of American life. The benefits are those which result

to any individual from participation in a going concern. Sharing

responsibilities and evolving policies for a joint enterprise have

educational implications that no other activity can supply.

The question, then, may be raised as to the extent to which a

development of the co-operative methods in the United States may be

looked to as likely to become an important educational agency in

intelligent spending for the foreign housewife, enabling her to

develop in her task something of a technique. As to the possibility of

developing co-operative societies because the ordinary trade is

wasteful, it should be recalled that the retail trade in the United

States, while wasteful, is probably not less, but rather more

efficient than in other countries. Moreover, in the United States

there are often lacking those conditions that give rise to a sense of

a permanent division of interest between those who sell and those who

buy. In fact, when the foreign-language store exists, there may be a

tie between shopkeeper and purchaser.

In communities in which there is an apparent division of interest

between the foreign born and the native, or between two foreign

groups, the national bond may grow into a social bond that for a time

at least would serve as the basis for the collective action by one

group against the other group. If the dealers then belong to the

outside group, or if the dealers of the foreign-born group seem to

betray their fellow countrymen, there may develop a movement strong

enough to carry over into organization.

Among some groups, such as the Finns, the language constitutes a

permanent barrier for the adult members of the group, and with a

skillful and intelligent leadership the co-operative undertakings may

be expected to prosper for a very considerable period of time. The

immigrants have probably twice as many successful co-operative stores

as the native born.

In a community like a mining town, that is almost or altogether an

industrial community, with no leisure class, the pecuniary resources

of all are fairly well known to all, and the temptation to spend

conspicuously is therefore lacking. It will be recalled that these are

the communities in which the employers have specially abused their

power by forcing the employees to buy at company stores. In such

communities there are always considerable numbers of competent,

efficient, intelligent persons. Under a specially able leadership, a

special hardship through high prices, or a condition of special

exploitation, the co-operative store may be expected to develop. Then,

too, a sense of identity of interest may find its basis in trade-union

membership or in membership in a special trade, as was the case with

the miners in a store at Staunton, Illinois, where the union managed

the store for years at a profit.

With the exception of these few bonds, however, there are lacking in

most communities several elements present in the foreign experience

that have undoubtedly contributed materially to the success of

co-operative enterprises. There is, in the first place, the lack of

stability caused by the rapid movement from group to group. The older

people do not speak English; the children learn English and often do

not want to speak the language of their parents. They want to be

American and to buy as Americans buy. They therefore resent any

organization that tends to emphasize their foreign origin.

Also no sense of class consciousness among customers arouses

antagonism against retailers. In the cities, particularly where there

are large foreign colonies, the retail trade in those colonies,

especially the trade in foodstuffs, is largely in the hands of fellow

countrymen whose background is much the same as that of their

customers. Most of the stores are small, and the proprietors, who are

not skilled in modern business methods, do not make much more than a

living from their stores, so that there is no great contrast in

prosperity to arouse a feeling of antagonism.

On the contrary, the proprietor and his family usually live in the

district--often over the store--in much the same condition as the rest

of the group. They are friends of all, and by their knowledge of the

group can meet certain needs and appear to serve as a connecting link

between the separate group and the general community. How far the

desire of the more ambitious group members to open up a shop of their

own acts as a deterrent to interest in co-operation would be

difficult to estimate, but it seems probable that this has some

weight.

On the other hand, attention may be called to the fact that the retail

trade, and especially the marketing of food, has been so slightly

reduced to an art, it is still so empirically and wastefully carried

on, that there are many possibilities of reasonable success of

co-operatives. For a time, at least, this will be true if the

undertaking is on a modest scale and does not seem worthy of attack by

a relatively powerful group.

Among the obvious wastes are those connected with the transportation

(cross freights), the display and salesmanship, the marketing of

novelties, and the use of the indefinite measures. Besides these there

are the bad debts resulting from careless credit transactions, the

waste involved in deliveries of packages, the waste of the repeated

purchase of articles known to be regularly needed. Wherever any group

can be led to consider the wastes involved in these methods of doing

business, their good sense will make them perceive easily the folly of

persisting in those ways, and the practice of this minimum of

self-restraint will serve as a basis for a considerable balance, out

of which dividends may accumulate.

The use of the co-operative idea has, therefore, great possibilities

as the basis for discussing the wastes of the present system and for

deliberation as to the best or as to any possible way out. In other

words, experimenting in democratic organization in obtaining the

necessities of life is an important next step. As in the matter of

copartnership in relation to housing, co-operative distribution may

serve as a point of departure, an object lesson worthy of closer study

and experimental imitation. Especially would the experience of the

Women's Co-operative Guild be helpful in bringing the idea to the

attention of the influential women among the various groups.

The importance of doing this cannot be overestimated. For, as has been

so often suggested, the wastes of retail dealing, while probably not

so great here as in some other countries, are so enormous that great

economies are possible from even a slight rationalizing process.[43]

The development of a general consciousness of the nature and extent of

these wastes would in itself serve as a corrective. Moreover, the

experience of the co-operative enterprise may often be carried over

into legislative policy, and in this way give to the community the

benefit of the experiment tried by a group. Co-operators in England

have both initiated and backed such social legislation as the Trade

Boards Act, the provision for general maternity care under the

Ministry of Health, and other measures.

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