The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1867-08-09
MUTUAL BENEFIT STORES.

The rules of Cooperative Societies in England
are simple and few the results have exceeded the
expectations OF the most sanguine. Goods are
kept on sale for the public. The payment OF feW
pence is the condition of membership. Further
payments, about ten pence month, until their
aggregate, together with the interest and divi-
dends placed to his credit, amount to the pre-
scribed minimum share in the undertaking, which
varies in different places from one pound sterling
to five pounds. Each member has the privilege OF
letting his share increase to f1O0; although the
Society can make the amount smaller. After pre-
vious notice, each member can obtain the payment
of his share, over and above the minimum share,
after an interval varying according to the amount.
No member, however, can withdraw this minimum
share when he resigns. With the approval OF the
Society, he may have it transferred to the credit
OF another, who thus becomes himself member.
In other words, he can sell out, but the existence
of the society cannot be threatened Or its credit
seriously affected, by the withdrawal OF capital
stock below certain minimum standard.
The net profits are distributed quarterly. After
five per cent. per annum has been deducted from
the share of the members, and two and half per
cent. of the profit have been applied to the "edu-
cationa fund, the balance is placed to the credit
of the members, in proportion to the purchases
that each has made at the store during the three
months The members are liable to no losses be-
yond the depreciation Of their respective shares.
There is a monthly meeting, at which an Execu-
tive Committee of twelve is elected to manage the
business Of the Society for one year. AS the
Society at Rochdale was the first Of Cooperative
Societies, and has been the most successful, 1t ID
worth while to consider the principles that ruled
in the management of the Rochdale Pioneers.
One of these was frugality. They valued penny
at its full worth. They were not above saving that
petty sum. They were sspenny-wise," =" without be-
ing ''pound-foolish." They knew that many
mickle makes muckle; that pounds grow from
pence. By close economy their savings accumu-
lated, and with these they established business
Of their own; which required the exercise OF their
own judgment, and the management OF which
gave them an acquaintance with the details OF
business, which was as valuable as the actual gain
in money. The profit was in proportion to the
diligence they displayed in their enterprise, and
they were certain to receive in goods tho equiva-
lent of their cost in money. They were not 80
short-sighted as to adopt lower scale OF prices
than ordinary shop-keepers, but paying the cur
rent prices, they received at the end OF the quar-
ter their share Of the gains in proportion to their
purchases. 1t was to their advantage to let these
premiums remain in the business; for by 80 doing
they abridged their consumption in order to in
crease their cash deposits, and increased their
own portion of the profits by their consumption.
The profits arising from that system are shown
by the account of laborer on the records OF the
Rochdale Society. Without paying out atarthsng
beyond the first shilling hei realized in ten years
s477 so (not including f6 drawn out) by making
his purchases at the stores of the Association.
Another feature in these Mutual Associations is
their far dealing. That they were able success
fully to compete with the established shopkeepers
of Rochdale, when their stock was small and OF
Indifferent materials, was owing mainly TO their
unvarying honesty. Their own interest, both as
buyer and seller, secured them against unfair
dealing.
Aware Of the evils Of keeping credit accounts,
which those who work for fixed wages are peculi-
arly exposed to, the Society was formed and con-
Quoted on the basis Of cash payments. That sys-
tenn confines the purchasers to such things as
they really need, and enables the society to buy
goods to the greatest advantage, and to adhere to
fixed schedule Of prices.
We cannot do more here than glance at the
topics treated in the remaining chapters OF this
book on Cooperative Stores
The following are some Of these: Directions for
establishing o cooperative store; the formation of
rules; instructions concerning the different kinds
Of business, and their pecularities; the accumula-
ton Of capital; the purchase and sale of goods;
rules for the keeping Of goods, and general hints
for the management Of business.
Wherever cooperative stores have been estab-
lished and conducted on the plan pursued by the
Rochdale Pioneers, they have been successful.
Similar societies have resulted in failure, but that
has been owing to unwise changes from the Roch-
dale model, or to the incompetency or dishonesty
of officers and agents. The principal cause, how
ever, Of the downfall of unfortunate societies has
been the credit system. Cash payment is indis-
pensable to success It is the life Of the inshtu-
ton. There must be no exceptions made. That
rule must never be violated. No one under any
circumstances, must be INDUCED with credit for
even the smallest sum, for if indulgence be once
granted, no limit can be put to the crediting.
We would earnestly commend this system. 1t
is peculiarly adapted to present circumstances.
We are all poor None Of us have more than is suf-
ficieqt for mere comfort. We are therefore, under
the necessity Of practicing the closest economy.
This is favorable time for learning tugality. AS
we are obliged to confne ourselves to the neces-
saries Of li.e by the help Of such institutions We
may be assured we get the valne of our money;
at the same time lay by penny for rainy day.
We hope somo Of our clear-headed business
men, who have the public veal at heart, will con-
slider this matter worthy their attention, and pro-
ceed to take measures for the establishment OF
cooperative stores among us.