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COOPERAGE (from " cooper," a maker of...
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See also: The hoops are generally of See also:iron . The manufacture of slack casks proceeds on the same See also:general lines, but is simpler in various respects, both because less accurate workmanship is required, and because softer See also:woods, largely See also:fir, may be employed . Machinery of the most elaborate and specialized See also:character has been devised to perform most of the operations in making both slack and tight casks, and though it involves considerable See also:capital outlay it effects so great an See also:economy of See also:time that it has largely superseded See also:hand labour . (For an See also:account of such machinery see L . H . Ran-some, " Cask-making Machinery," Proc . Inst . Civ . Eng. vol . 115; also an See also:article in See also:Engineering, 1908, 85, p . 845.) Barrels without separate staves are made by bending a See also:sheet of wood, sawn from a See also:log in a continuous See also:strip, into the required circular shape, the bulge at the centre being obtained by cutting out V gores from the ends . Barrels are also sometimes made of See also:steel, either of the See also:ordinary bulging form or consisting of straight-sided drums provided near the middle with rings on which they may be rolled .. Immense See also:numbers of casks of different shapes and sizes are employed in various See also:industries . Tight barrels are a See also:necessity to the See also:wine and See also:cider maker, See also:brewer and distiller, and are largely used for the transport of See also:oils and liquid chemicals, while slack barrels are utilized by the million for packing See also:cement, See also:alkali, See also:china, See also:fruit, See also:fish and numerous other products . CO-OPERATION, a See also:term used particularly both for a theory of See also:life, and for a See also:system of business, with the general sense of " working together " (See also:con, with, and See also:opus, See also:work) . In its narrowest usage it means a See also:combination of individuals to economize by buying in See also:common, or increase their profits by selling in common . In its widest usage it means the creed that life may best be ordered not by the competition of individuals, where each seeks the See also:interest of himself and his See also:family, but by mutual help; by each individual consciously striving for the See also:good of the social See also:body of which he forms See also:part, and the social body in return caring for each individual: " each for all, and all for each " is its accepted See also:motto . Thus it proposes to replace among rational and moral beings the struggle for existence by voluntary combination for life . More or less imperfectly embodying this theory, we have co-operation in the See also:concrete, or " the co-operative See also:movement," meaning those forms of voluntary association where individuals unite for mutual aid in the See also:production of See also:wealth, which they will devote to common purposes, or See also:share among themuponprinciples of See also:equity, See also:reason and the common good, agreed upon beforehand . Not that a co-operative society can begin by saying absolutely what those principles in their purity would dictate . It begins with current prices, current rates of See also:wages and interest, current See also:hours of labour, and modifies them as soon as it can wherever they seem least conformable to equity, reason and the common good . In the See also:industrial See also:world there is everywhere much working together for the production of wealth, but this is not included in co-operation if the shares of those concerned are determined by competition, i.e. by a struggle and the relative ability of each to secure a large share . Nor do co-operators regard the association as truly voluntary, though it may depend on See also:contract, if that contract be one of service only, without an opportunity for all concerned to share in the ultimate See also:control . Co-operation in fact is essentially a democratic association . On the other hand, there is some working together for the production of wealth which without being competitive, or based on service, is not strictly voluntary: thus in See also:primitive See also:societies there is much customary help, combined with customary See also:division of the produce; and in advanced societies we have See also:state and municipal See also:socialism . These are indeed sometimes included in co-operation, but at least they are not voluntary co-operation, since the individual has no choice but to take part in them; they depend on the See also:power of the ruler to coerce the ruled, or of the See also:majority to coerce the minority . In co-operation, meaning voluntary co-operation, there may also, it is true, be frequent overruling of the minority by the majority, but only so far as the minority have, when joining the association, voluntarily agreed to permit, and subject always to an effective ultimate right of See also:secession . Thus co-operation occupies the middle ground between competition and state or municipal socialism . In its technical sense, however, it does not See also:cover the whole of this ground: it does not cover associations which are primarily for social, provident, or religious purposes, but only those closely connected with the production of wealth . We speak of co-operative societies for See also:agriculture, for manufacturing, for See also:retail, or whole-See also:sale See also:distribution, for See also:building or See also:house-owning, for raising capital and so forth; while the great Friendly Societies (q.v.), though a part of co-operation as a theory of life, are not part of the co-operative movement . The See also:line is somewhat hard to draw, and consequently is drawn somewhat arbitrarily . Thus while a society for building, or for the collective ownership of houses, is counted a co-operative society, a Building Society (as we ordinarily understand the term), though it be purely mutual in its basis, is not,so counted in Great See also:Britain, but is in the See also:United States (see BUILDING SOCIETIES) . For the See also:early See also:history of the co-operative movement we have to look chiefly to Great Britain, and See also:British co-operation acknow- ledges as its founder See also:Robert See also:Owen (q.v.) . In every See also:age doubt be traced, wheretnen have helped one another in the creation of wealth and agreed as See also:brothers as to its division . In See also:England See also:long before the days of Owen there was much co-operation of miners and fishermen which, though scarcely obligatory on the individuals taking part in it, was largely regulated by See also:custom . Coming to more purely voluntary associations, co-operative workshops are recorded, retail co-operation was practised in See also:Scotland from the middle of the 18th See also:century, while in England shops not unlike co-operative stores, but without the democratic See also:element, were in one or two instances set up by benevolent individuals . It does not seem, however, that there was any theory of co-operation until Owen in England, and almost simultaneously See also:Fourier (q.v.) in See also:France, formulated their gospels, not identical, yet having much in common . Of these two Owen and his teaching are by far the more important . The end of the 18th and the beginning of the 19th centuries were the culminating days of the industrial revolution, when the old organization of domestic See also:industry had given way before the factory system, and the See also:population of the factory districts was suffering a martyrdom, with ruin of body and degradation of character, from unbridled competition, long hours, See also:women's and See also:children's labour, pauper See also:apprenticeship, great fluctuations of trade and employment, dearness and See also:adulteration of See also:pro-visions, the See also:truck system and insanitary homes . Owen, having himself become a great employer of labour, after starting as a See also:draper's assistant, saw that this was in every sense See also:waste, and that as it paid the manufacturer to have the best machinery and not to overdrive it, but to tend it well and keep it in the best repair, so it would pay him, and abundantly pay the nation, to have the human See also:machines well cared for, not overworked, and kept in the best See also:condition . The popular individualisticphilosophy of that See also:day taught that the good of society would be achieved by each individual seeking in his business relations the interest of himself and his family; but Owen maintained that the well-being of the social body could only be served if each individual made that his conscious aim . For this reason he and his disciples were called Socialists . He taught further that a See also:man's character depended mainly upon the circumstances which influenced his life; he emphasized environment, and all but denied See also:heredity . At New See also:Lanark, from 1799, he carried out these ideas among the workers in the See also:cotton See also:mills of which he was managing partner.l " For twenty-nine years," he wrote, " we did without the necessity for magistrates or lawyers; without a single legal See also:punishment; without any known poors' See also:rate; without intemperance or religious animosities . We reduced the hours of labour, well educated all the children from See also:infancy, greatly improved the condition of the adults, diminished their daily labour, paid interest on capital, and cleared upwards of £3oo,000 of profit." So wonderful were the results upon the population, that New Lanark became a show-place of world-wide renown, and was visited by many of the greatest and most exalted See also:people of the See also:period . While thus using his own power Owen not only advocated legislation to limit the hours of factory labour, but appealed to the public authorities to establish industrial communities, where the poor might be set to work, and be managed paternally on the principles of New Lanark . So great was his repute, and so influential the royal and other personages who gave him their support, that this See also:appeal might probably have been successful had not Owen, in reply to complaints as to his religious views—which were deistic—and that his system was not founded on See also:religion, made a public attack upon all accepted religions . Failing to get the required support from the See also:Government and magistrates, he still sought it from wealthy believers in his teaching, and a number of "communities" (see See also:COMMUNISM) were founded in England and Scotland, and in the United States . These were intended to be self-supporting, the See also:land and other means of producing wealth being owned in common, and work and See also:education being regulated on Owen's principles . Owen well knew that most of them lacked the large amount of capital necessary, but his hand was forced by enthusiastic followers, and even the most hopeful of the experiments, that of Queenwood in See also:Hampshire (1839-1844), was made prematurely and failed . His connexion with New Lanark also came to an end, not from any want of success, but through See also:differences with some of his partners who objected to such matters as dancing, military See also:drill for the children, and the wearing of kilts, but above all feared lest Owen's " infidelity " should undermine the people's faith . Thus it might have seemed that Owen's life and See also:fortune had been spent in vain, and resulted only in unsuccessful experiments; but this was far from being so . His teaching, and in particular his doctrines of circumstance, and of the conscious seeking after the social good, his belief in self-supporting communities, and his See also:vision of a new moral and industrial world, had powerfully affected the working classes, indeed, all classes . Workmen in many parts of the See also:country had formed See also:groups with the ultimate See also:object of See also:founding self-supporting communities . If the government and the See also:rich would not provide capital enough to start communities, the workers would start them themselves . Thus was the democratic basis given to co-operation . As a means they had been founding co-operative societies, which are sometimes called " See also:union shops " to distinguish them from the later growth of societies of the See also:Rochdale type . The members began by buying provisions wholesale and retailing them to themselves at current prices; the difference became capital, and as soon as possible one member was set to work to make boots and another clothes, and so forth, until ultimately the society should have capital enough to take land and form a community . Education also was prominent among their See also:objects . These co-operative societies reached some 400 or 500 between 1828 and 1834, but the movement then collapsed . As the See also:original See also:enthusiasm died out, or members See also:left the neighbourhood, or capital accumulated in 1 See also:Holyoake, History of Co-operation (1906 edition), i . 34 . Robert and every country the origins of co-operation may no Owen . the hands of the original shareholders, they almost all either failed or became private See also:property . In those early days, moreover, the See also:law gave no See also:protection to the property of co-operative societies . This remained so until 1852, when the See also:Christian Socialists (see SOCIALISM) among their many great services to the working classes secured such protection . In 1862 they secured also limited liability for the members . Before 1844 a co-operative society had already been formed and failed at Rochdale in See also:Lancashire, yet some ardent See also:spirits planned Rochdale to form another . Twenty-eight poor men, See also:flannel pioneers. weavers and such like, got together a capital of £28 by twopenny and threepenny subscriptions, and in See also:December 1844 opened in See also:Toad See also:Lane, Rochdale, a little See also:shop from which, speaking broadly, the whole of British co-operation, and very much of that of other lands, has grown . Their objects were those of other co-operative societies of the time, including the ultimate aim of a self-supporting community . In this last they never succeeded, nor indeed did they See also:attempt it; but they did succeed in vastly improving the position of millions of the working classes by enabling them td obtain their provisions cheap and pure, to avoid the millstone of See also:debt, to See also:save See also:money, to pass from retail to wholesale trade, and from distribution to manufacturing, building and house-owning, See also:ship-owning and banking; above all to educate themselves, and to live with an ideal . The Rochdale Equitable Pioneers began their trading in the smallest way, the members taking turns to serve in the shop; yet where so many other Union shops had failed Rochdale succeeded, and it has steadily grown to an institution with some 14,000 members, doing a trade of £300,000, owning shops and workshops, a library and See also:reading-rooms, making large profits, and devoting a substantial part of them to education and to charitable purposes . What was the reason of this difference ? Chiefly it would seem a different method of dealing with the profits . Earlier " Stores " had divided these according to the capital contributed by each member, or else equally among the members: the Rochdale Pioneers determined that, after paying 5% interest on the share capital, all profit should be allotted to the purchasing members in proportion to their purchases, and be capitalized in the name of the member entitled, until his shares amounted to £5 . Thus each member found it his interest to See also:purchase at the See also:store and to introduce new purchasers . The ownership of the store remained always with the purchasers, and each came under the magic See also:influence of a little capital saved . Not only did Rochdale store grow amazingly, but its example spread far and near . New stores were founded on the " Rochdale Growth See also:plan " and old stores adopted it; soon they were of co- numbered by hundreds . In spite of many failures operative there were in 'do() more than fourteen See also:hundred such stores. stores in the United See also:Kingdom, with nearly two and a See also:quarter million members, over £33,000,000 capital, and sales exceeding £63,000,000 in the See also:year . The number of societies does not increase of See also:late years, the tendency being rather for established societies to open branches, but all the other figures increase rapidly from year to year . These workmen's Co-operative Stores, or Distributive Societies, flourish chiefly in the See also:north and midlands of England and in Scotland, but are found more or less all over the country . They, and practically all other British co-operative societies, are registered under the Industrial and Provident Societies See also:Act, which constitutes them corporate bodies, with limited liability, and fixes £200 as the maximum that any member may hold inthe share capital . Their government is democratic, based on one See also:vote each, for man or woman; and their members or share-holders, and their See also:committee-men or See also:directors, are almost exclusively the more provident of the working classes, or belong to the class just above . Store societies are of various sizes, from the small See also:village shop to the greatest of them all, the See also:Leeds Society, with nearly 5o,000 members, sales exceeding a million and a See also:half See also:sterling, and an elaborate organization of branches and manufacturing departments . Their method, the " Rochdale system," is as follows, subject to occasional See also:variations . Member-ship is open to all who pay a See also:shilling entrance See also:fee and sign for a £1 share, which can be paid up out of profit . For the most part members may at any time withdraw their shares in See also:cash at See also:par . A See also:record of each member's purchases is kept by means of See also:metal tokens or otherwise, and at the end of each quarter, after paying a limited interest (never more than 5 %, and in very many societies less) on shares, and, in some societies, paying a proportion of profit to the employees, the surplus is divided to the members in proportion to their purchases: non-members also usually receiving half dividends on theirs . Thus the members in effect obtain their necessaries at cost See also:price . The See also:dividend on members' purchases averages about 2S . 6d. in the £ . In many successful societies even more is paid, but the See also:average is falling . Where dividend is high, prices are often fixed above those current in the neighbourhood, so that the members, in addition to saving the retailer's profit, use their Society as a sort of savings See also:bank, where they put away a See also:halfpenny or so for every shilling they spend . In addition to retailing, a store often manufactures See also:bread, clothes, boots and millinery, sometimes farms land, or grinds See also:corn; usually for its own members only; but occasionally for sale to other societies also . Their productions in this way exceed £5,000,000 a year . They also invest large and increasing sums in building cottages, to let or sell to their members; and they lend still more largely to their members, to enable them to buy cottages . Outwardly these stores may look like See also:mere shops, but they are really much more . First, they are managed with a view not to a proprietor's profit, but to cheap and good commodities . Secondly they have done an immense work for See also:thrift and the material prosperity of the working classes, and as teachers of business and self-government . But further, they have a distinct social and economic aim, namely, to correct the See also:present inequalities of wealth, and substitute for the competitive system an industry controlled by all in the common interest, and distributing on principles of equity and reason, mutually agreed on, the wealth produced . With this view they acknowledge the duties of See also:fair pay and good conditions for their own employees, and of not buying goods made under See also:bad conditions . The best societies further set aside a small proportion of their profits for educational purposes, including concerts, social gatherings, classes, lectures, reading-rooms and See also:libraries, and often make grants to causes with which they sympathize . Their members are prominent in See also:local government affairs; co-operative candidates are occasionally run for See also:town See also:councils, and often talked of for See also:parliament . Though the societies are non-See also:political, and have refused to join the labour See also:representation movement, they are usually centres of " progressive " ideas . There are of course many defects, and of their two million members a large, and many fear an increasing, proportion, attracted by the prosperity of the societies, think chiefly of what they themselves gain; but the government of the movement has, hitherto at least, been largely in the hands of men of ideas, who believe that stores are but a step to co-operative production, and on to the " co-operative See also:commonwealth." It is indeed only when we come to federations of co-operative societies, and above all to production, with its large number of employees, that the educational See also:side of the movement and its power to promote industrial reform are most seen . The Co-operative Union, Limited, for instance, is a propagandist federation of all the chief co-operative societies in Great Britain, and some in See also:Ireland . Its income of £1o,000 a year is contributed by the Co-operative Societies . It looks after their legal and See also:parliamentary interests, carries on much educational work by means of literature, lectures, classes, scholarships, summer meetings at the See also:universities, and so on; organizes numerous local conferences for discussion, and once a year a great See also:national co-operative See also:congress, and See also:exhibition of productions, in some chief centre of population . The Co-operative Wholesale Society, Limited, is a trading federation of the great majority of the See also:English stores . Founded in 1863 on a small See also:scale, it now See also:counts its employees by thousands, its capital by millions, and its yearly sales by tens of millions . Besides its See also:merchant trade, it manufactures to the value of £4,500,000, owning factories, warehouses and land in many districts . It imports largely, and runs its own steamships . It is also the bank of the co-operative societies, and the chief outlet for the always redundant capital of the well established stores . The Scottish stores also have their Wholesale Society, not less important relatively . For many purposes these two are in See also:partnership . In each of them the See also:net profits are returned to the stores as a dividend on purchases, and thence to the whole body of members; but in the Scottish Wholesale a part is also paid to its employees as a dividend upon their wages . There are also a few local federations of stores, mostly for corn-milling and See also:baking . Strongly contrasting with this production by associations of consumers, or " consumers' production," is the co-partnership, or labour co-partnership, See also:branch of co-operation . Its no-par,- nership. simplest form is an association of producers formed to carry on their own industry . Originally such societies were intended to consist solely of the workers employed; the ideal was the " self-governing workshop," introduced from France by the Christian Socialists of 185o; but membership is now open to the distributive societies, which are the chief customers; and usually, to all sympathizers . Shares are transferable, not withdrawable . Profits first pay the agreed " wages of capital," usually 5%, and of what remains the See also:main part goes to the employees as a dividend on their wages, and to the customers as a dividend on their purchases . In well-established societies the dividend on wages averages about is. on the £ . This is not usually paid in cash, but credited to the employees as share capital, whereby all may become members . Besides other producers' associations, more or less co-operative, there are over a hundred co-partnership societies at work in England, against a dozen or fifteen in 1883 . They are engaged in See also:boot-making, See also:printing, building, See also:weaving, clothing, wood-working, metal-working, and so on . Some of them are very small, while others have businesses of £5o,000 a year or more, the average being about £io,000 . The majority show fair, sometimes large profits . Each is governed by a committee, which is elected by the members and appoints the manager . A minority of them sell in the open, i.e. the non-co-operative, See also:market, and a few sell largely for export . We constantly hear that co-operative production is a failure . There have no doubt been failures, especially of big experiments attempted among men totally unprepared . But many See also:Rival of the failures counted were not truly co-operative. theories . At the present day consumers' production is successful beyond all question, while the net growth of producers' associations in the last twenty years has been marked both in number and importance . These two forms of production best illustrate the two rival theories which See also:divide British co-operation, and between whose partisans the conflict has at times been See also:sharp . The consumers' theory maintains that all profit on price is abstracted from the consumer, and must be returned to him; while to him should also belong all capital and control, subject to such regulations as the state and the trade unions enforce . This theory is fully exemplified in the English Wholesale Society, and in some of the smaller federations for production, which employ workmen, whether co-operators or not, for wages only, and admit no individual, but only co-operative societies, to membership . It is also exemplified by the great majority of the Stores, though in their See also:case the employee may become a member in his capacity as a consumer . The co-partnership theory, on the other hand, maintains that the workers actually employed in any industry, whether distributive or productive, should be partners with those who find the capital, and those who buy the produce, and should share with them the profit, responsibilities and control . The consumers' party contend that societies of producers make a profit out of the consumers, and thus are never truly co-operative, while as they multiply they must compete against each other . The co-partnership party See also:answer that labour at least See also:helps to make the profit, and that competition, as yet almost insignificant between their societies, can be avoided by federating them (a See also:process long ago begun) for buying and selling in common, and for other common purposes, while leaving each the control and responsibility of its own internal affairs . They further See also:advocate the eventual federation of the productive wing85 of co-operation with the distributive, for settling prices and all matters in which their interests might conflict . In this way they say the co-operative system may extend indefinitely without sacrificing either individual responsibility and freedom, or a general unity and control, so far as these are necessary to secure the common interest . On the other hand they hold that the opposing system tends more and more to centralization and bureaucracy, and divorces the individual workman from all See also:personal interest in his work, and from any control over its conditions . They contend, moreover, and it is indeed admitted that, in spite of the great advantages which consumers' production has in its command of a market and of abundant capital, only a small part of industry can ever be carried on by associations of the persons who actually consume the produce . Outside this small part, therefore, voluntary co-operation is impossible except as some form of co-partnership . On the working-out of these two principles depends the future of co-operation . The example of Scotland probably throws See also:light on the problem . There co-operative production, amounting to some millions sterling, is nearly all carried on by federations of consumers' societies, including the Scottish Wholesale, which apply more or less successfully the co-partnership principle—i.e. their employees are admitted to share in profits, and may become members, whereby they are further admitted to share in capital and control . The type of organization hence resulting is very much the same as where a society of producers admits consumers' societies to membership, and sets aside a proportion of the profits to be returned to them as dividend upon their purchases . To this combined type, we have seen, English productive societies, started by producers, have come; and it would appear that those started by consumers must ultimately tend to it . However, in spite of honoured leaders of the early days, the consumers' party is at present greatly in the ascendant in English co-operation, and even in the Scottish federations it is almost strong enough to abolish co-partnership, and allow no one to share in capital, profit or control except in his capacity as a consumer . An association of co-operative societies and individuals, called the Labour Co-partnership Association, exists to maintain the principle of co-partnership in co-operation, and also to promote its See also:gradual See also:adoption in ordinary businesses . Some progress in this latter direction is being made, there being a tendency to improve upon See also:simple profit-sharing by capitalizing the workman's " See also:bonus," whereby he becomes a shareholder, and the business is gradually modified in a co-operative direction . There are remarkable instances of such modification abroad, notably that of the great iron foundry and Familistere at See also:Guise in France . The most noteworthy, among several, in England is that of the See also:South See also:Metropolitan See also:Gas See also:Company, where after eighteen years of the system 5000 See also:odd employees had in 1907 more than £320,000 invested in the company; they also elect three of themselves directors of the company, this being one-third of the See also:board . Unfortunately this example is, or at least was, marred by a See also:feud with the trade unions, whereas there is friendship between trade unionism and co-partnership, as indeed between trade unionism and co-operation generally . One of the most See also:recent arid promising developments of English co-operation is the tenants' co-partnership movement for the common ownership of groups of houses, which the Tenants' society owning them lets out to its members . These co-partsocieties are but few as yet, but they have sprung up nership rapidly and promise great usefulness and See also:extension. societies . Somewhat similar societies have long been a recognized branch of co-operation on the See also:continent of See also:Europe . Such, then, are the history and present extent of co-operation in Great Britain . Turning abroad we find in almost all civilized countries, besides other forms of co-operation, See also:im- The moveportant and growing movements roughly similar to went those above described, but on the whole less identified outside with the working classes and less coloured by their Britain. social and economic ideals . In France, See also:Germany, See also:Switzerland, See also:Italy and elsewhere, there are very important co-operative distributive movements looking to Rochdale as their prototype; and in the United States of See also:America there are at least continual attempts to spread Rochdale co-operation . Of these See also:foreign stores, however, many exhibit important modifications, such as unlimited liability, and selling at cost price, or between that and market prices . On the whole we may say that Rochdale Co-operation is the most extended and the most typical . It, and the workshop movement springing from Fourier, and the socialist co-operation of See also:Belgium and elsewhere, are certainly the forms which have most of the ideal of democratic equality and social reconstruction . Other forms look more to the money benefits accruing to the members, seeking to supplement the present See also:order of society, rather than to bring in a new order .
Among these other forms—separate in origin, in methods, and largely in spirit—the most important are See also:credit co-operation, or people's banking, and agricultural co-operation, two forms until recently unknown in the British Islands
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Confusion has sometimes arisen from the fact that while Rochdale Co-operation sets itself against " credit," See also:continental Germany co-operation is more concerned with obtaining credit and credit for its members than with anything else
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But credit is co-See also:opera- used in two senses
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The English workman employed See also:Lion. for wages is against the credit which means spending them before they are earned: continental co-operation seeks by collective credit to put into the hands of working peasants, craftsmen and traders, the stock and the tools without which their labour is vain
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Credit for See also:consumption is the road to poverty; credit for production the road to well-being
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Just aL with co-operation in labour and in purchase, so mutual help in obtaining credit may doubtless be traced in primitive forms far back into history
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It was certainly more or less " in the See also:air " in Germany and France about 1848 and even earlier; but the beginning of systematic organized credit co-operation may be definitely fixed in the year 1849, when See also:Raiffeisen began his Darlehnscasse, or See also:loan bank, in Rhenish See also:Prussia
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Curiously enough it had also a second and entirely See also: |