Montana labor news., 1938-09-01
.(o-ops Succeed While
Business Is Mired in
Depression - Daniels
May Dominate American Eco
nomic Life Ii They Create
Economic Democracy.

NEW YORK u In the last five
years, while profit business was
wallowing in the mire of depression,
the c%ooperatives have been forging
ahead at the rate of about 20 per
cent gain each year, John Daniels,
former secretary of the English
Speaking Union and author of Co
operation-An American Way" just
published by Covici Friede & Co.,
declared in an interview here this
week.
Pointing to 5,560,00O members OF
four major types of consumer CO.
operatives who do a half billion dol
lars worth of business a year, Mr..
Daniels answered the question, Can
cooperation succeed in American" by
declaring that ut is succeeding"
Mr.. Daniels, who is well known as
an author and sociologist, declared
that whether the cooperatives even
tually become the dominant factor in
American economic life depends not
only on their ability to make cash
savings and savings in value and
usage, but also in their ability to
create economic democracy"
'The chief promise of the con-
sumner cooperatives," Mr.. Daniels
pointed out, lis that they are giving
the people a sense Of participation
and an actual participation in eco
nomic life. That is why they are
growing. In profit business as we
know it today, shares of stock over
ride individuals in the control Of a
business. AS a result many stock
holders have no interest in their
business other than in the specula-
tive value of its shares and their
cash dividends. The consumers CO.
operative system not only provides
participation on an individual basis,
but creates local economic autonomy
plus representative democracy in
larger cooperatives which is the
counterpart of our American system
of political democracy"
Mr.. Daniels described consumers
cooperation as a mutation of CAPT
talism, an evolution or step beyond
the present economic system.
THE chief elements of waste in
the profit system are ID the con-
slant drive to sell goods at a profit
regardless of the wishes of the con-
sumner; and ~ the fact that with
competition running rife there is nc
way of measuring demand in adj
vance. Producing in the dark leads
to inevitable Cutting of the market
and over production. The consumers
cooperative system eliminates social
waste of energy by making savings
rather than profit the motive Of
action and producing for a known
demand thereby eliminating the
cycles of over production and under
consumption
by pouring the savings back into
local communities the cooperatives
are rebuilding the purchasing power
and economic autonomy of thou
sands of American communities.
"The chief dangers in the coopera-
tive movement are the dangers of toe
great emphasis on efficiency and
the possibility of management con-
troll when the cooperatives do not
carry on constant educational pro-
grams" Mr.. Daniels declared. 'Ii
efficiency of operation becomes the
only criterion, the cooperatives may
become unconsciously imprinted with
the image of profit business. While
if the members become lethargic
there may be a tendency for man.
agement usurpation of control in the
interest of this same efficiency.
"The mere possession of things
does not bring civilization. Civiliza-
ton must be measured in a spiritual
way and is based on the individuals
participation in society. Democracy
is the only form of government
which allows for participation and
responsibility which create individ-
ual integrity" Mr.. Daniels said. Go
operation, with its universal partici-
patton by the individual and accom-
panying individual responsibility
provides that integrity.
Capitalism and cooperation will
and must go along together for the
present, and no doubt for a long
time in the future. If we assume
that both r truly trying to serve
the common good, and find the best
solutions for our common problems,
then surely the only reasonable
course for both is to work heartily
together, make experiments and
compare experience, and aim
through mutual understanding and
the growth of common interests to
reach eventually a common goal and