The patron of husbandry. (Columbus, Miss.) 1875-1883, 1880-07-31
CO.ODeratiOn.

he lOllOWlnS SlICuldr LeLlef, IS
sued by the Cochranton { Penn. } Co.
operative Association, gives very
clear explanation of the principles
and benefits of cooperation, which
will be found interesting and instruc-
tive:
AS the principle of cooperation is
imperfectly understood, hence the
reason for issuing the circular.
PREFACE.
Practical co operation does not
necessarily imply buying by whole
sale and distributing at cost, neither
does its success depend upon buy
ing from the producer and selling to
the consumer. But successful CO.
operation is based upon the policy
of investing the profits of trade for
the benefit of the purchaser.
If a number of persons, collective
ly buy stock of goods and distri-
butte them to each other at whole
sale or cost prices, there is no sub
stantial evidence of profit, but an
invariable creation of prejudice
throughout the mercantile commu-
nifty.
If, however, the same party dis
pose of their wares to themselves
and others at usual retail rates, and
invest the profits in favor of those
who purchase, the transaction is at
once pronounced legitimate and
Iaudable, and rapid accumulation of
profit is the result. Let US illus
trate:
If one hundred dollars worth of
articles be sold at wholesale rates,
quarterly, for consumption during
the year, there will be nothing at
the close of that year to present
either as an evidence or economy or
thrift.
But should that same amount be
sold during the first quarter at re-
tail, and the profits (that is, the diff
ference between wholesale and re
tail prices) be invested in favor of
the purchaser, there would at the
the beginning of the second quarter
be SIO5 to reinvest, if the sales only
netted five per cent. This amount
again invested in goods to be sold
the second quarter at the same prof
It of ten per cent, would yield $IIo.
50 to be invested at the beginning of
the third quarter; and the same op-
Grafton repeated through the third
quarter would increase the amount
to be invested at the beginning of
the fourth quarter to $II6.55. Con-
tinue this operation during the
fourth quarter, and there would be
to begin the second year with a
capital of I23.2o.i Or, in other
words, an investment paying quar-
terly dividends of five per cent is
more than q per cent per annum.
1t is not an eXtravagant assertion
that in all mercantile transaction an
exchange is seldom ever made for
less than five per cent profit. Hence
successful co-oberation is depend
ent upon quick exchanges for cash,
and cash only, and not upon whole
sale buying, or large marginal prof
its to secure extended credit
APPLICATION.
In order to practically carry out
CO operation, as in every other busi
ness, it is necessary to have capital,
and the difficulty has been, in Joint
stock companies. to keep the capi-
tai from absorbing all the profits
Hence the reason for adopting the
Rochdale system, by which capital
is allowed a certain per cent, and
no more, the balance of the profits
being divided between the consum
ers, in proportion to the amount o1
their purchases. For example:
Suppose man to take one $500
share of stock; he will receive as in
terest on that share 80 cents. If he
does not buy of the store, that is al
he will get, nc matter what the
amount of profits may be; but sup
pose he buvs of the store, during the
year, $500 worth of goods, and the
total sales of tie store are $4,000
and the profits after paying CLERK
hire, rent, interest on capital, ETC., bt
$1,000, then he will receive the one
hundredth part of $1,000, or $40
10000, $500; $1,000, $Iol. Thus
he will receive on his capital g
cents and on his trade $40. Total
$40 80.
If man does not take stock, bu
trades the same amount as the stock
holder he will receive but S. 90
but should he let his S 90 of prof
remain in the store he will get
certificate of stock and become
stockholder, and the second year h
will, providing he trades the sam'