Consumers' Co-operative Societies - GIPE

SERVANTS OF INDIA SOCIETY'S LIBRARY,
POONA 4.
FOR INTERNAL CIRCULATION.
To be returDed 00 or before the last date stamped below

Consumers'
Co-operative Societies
BY
CHARLES GIDB
(Pro/essOf' 0/ Political Economy in the Faculty 0/ Laws,
Uni'f)ersity 0/ Paris)
Translated from the French by
The Staff of the Co-operative Reference Library, Dublin.
T. FiBher Unwin, Ltd., The Co.operative Union Limited.
1, Adelphi Terrace, London, W.C. Holyoake HouBe, Hanover Street, I Manehester.
1921
'I

FIRST ENGLISH EDITION, 1921
(Being " tr"nsl"tion 01 the thir4 French e4;tion,
publishe4 in 1917J.
S 05\

TRANSLATOR'S PREFACE
This translation of Professor Charles Gide's
" Les Societes Cooperatives de consommation " gives
the English-speaking reader his first opportunity
of reading what 'has been regarded on the Continent
as the standard work on consumers' co-operation
and what undoubtedly is the most careful
study of the subject made by a distinguished
political' economist.
Professor Gide's reputation as an economist
and as a co-operator is so well known that it is not
necessary to enlarge upon it. He has written many
books on economics and on co-operation which are
standard works in his own country, and all of his
works have appeared in many editions and have
been translated into other languages. His principal
works besides the present one are: "La
Cooperation" (Conferences de Propagande), " Les
Institutions de Progres Social," "Histoire de
Doctrines economiques depuis les Physiocrates
iusqu'd nos iours " (in collaboration with M. Rist),
" Les Principes d' Economie Politique," which has
been translated into 14 languages, and "Des
Institutions en vue de l'abolition du salariat."
The present work has already been translated into
Dutch, Polish, and Portuguese, and Czech, while
Ukrainian and Spanish editions are in preparation.

VI. TRANSLATOR'S PREFACE.
Professor Gide undoubtedly ranks among the
great leaders of co-operative thought in the world,
and his. book oli .. Consumers' Co:-operative
Societies" should be a source of iriformation to all
those co-operators WJlO take a real interest in the
working of their movement.
This translation is a joint work; part of it has
been made by Miss F. E. Marks, my Assistant
Librarian,. and part I have written myself; but
we have both gone through the whole translation,
so that it is really impossible to say that one or
other of us is directly responsibie for any individual
part. Professor Gide himself went to a great deal
of trouble to bring this edition up to date. He
revised it from beginning to end and made several
lengthy additions. It was unfortunately impossible
to publish the book when the translation was
finished (November, 1919), and he again went
through it in November, 1920, and again brought
it up to date.
In the French edition there are 17 chapters;
Chapters 13 and 14 are concerned respectively
. with the legal position of consumers' societies, and
the fiscal laws and consumers' societies, and were
written' for the benefit of French co-operators.
Professor Gide himself suggested that in the
English translation these two chapters should be
very much altered and made into one, and this has
been done in Chapter 13, which is called "The Relations
between Co-operative Societies and the
State." Professor Gide has omitted a large portion

TRANSLATOR'S PREFACE. vii.
of the two chapters, which deal with purely French
problems, and the whole subject has been treated
in a more general way than in the French edition.
Prqfessor Gide has also written a special preface
for the translation. Otherwise, this· edition is
unaltered.
Except in one or two small instances, we have
not given any expression of our personal views,
even where they do not wholly coincide with
those of Professor Gide; and in the one or two
instances where we have expressed views of our
own, we have made it clear that they are translator's
and not author's notes. Professor Hall
has also added a few notes under the heading
.. Editor's notes." One chapter in which we are
inclined occasionally to take issue with Professor
Gide is Chapter I4, second section: .. The Conflict
between Consumers' and Producers' Co-operation,"
but we did not think it right to intrude 'our own
views on the reader, except in the one or two
instances where we considered that a short explanatory
note would help to explain some point
which might present a difficulty to Englishspeaking
readers who, are not familiar with French
conditions.
We have to express our gratitude to Professor
Gide for the very great help he has given us all
through the work of translating his book, and to
Mr. Lionel Smith-Gordon, whom we consulted
from time to time.

viii. TRANSLATOR'S PREFACE.
The appearance of this book is due to a joint
arrangement made between the Co-operative
Union, The Labour Research Department, and the
Co-operative Reference Library,· but the whole
work· of translation has been done by the staff of
the last-mentioned body. .
December, I920.
DIARMID COFFEY,
Librarian,
The Co-operative Reference Library,
Dublin.

AUTHOR'S PREFACE
TO THE ENGLISH EDITION
We cannot expect" to teach many new ideas
to our English co-operative comrades, because it
is from them that we have received almost everything.
Still, it may happen that even ideas
which are familiar to us appear in a more expressive
and suggestive form when they return from
a voyage abroad.
...
Moreover, if we wish really to reconstruct an
international co-operative alliance in that Europe
which has been so profoundly divided by the war,
co-operators in the different countries must learn
to know each other better, and they can only do
this through translation, since the curse of the
Tower of Babel still weighs on us and the era of
an international language-even if it were only
Esperanto- is still distant.
We have retained in the text the figures of the
French edition, which are those of 1913, because
the war marked the beginning of a new era and it
will always be of historical interest to have the
last pre-war figures. But we have added in the
notes the latest figures available, that is, those for
1919, wherever they have been published, and we
have further revised various chapters of the French
text, to bring them up to date.
Paris, December, 1920.
CHARLES GIDE.

CONTENTS
Chap. Page
I. THE OBJECT OF A CoNSUMERS' CO-OPERATIVE SOCIETY.. I
II. THE Co-OPERATIVE PROGRAMME: CRITICISM BY ECON!JMISTS 5
III. THE HISTORY OF DISTRIBUTIVE CO-OPERATION........ •• 13
IV. STATISTIC!; AND GEOGRAPHICAL DISTRIBUTION OF THE CO-
OPERATIVE MOVEMENT ............................ 29
V. VARIOUS SYSTEMS OF SALE ......................... '" 42
VI. THE DIVISION OF PROFITS •••••••••••••••••••••••••••• 55
VII. MEMBERS •••••••••••••••••••••••••••••••••••••• , • • • 75
VIII. CAPITAL •••••••••••••••••••••••••••••••••••••••••••• 81
IX. VARIOUS TyPES OF CONSUMERS' SOCIETIES.. • • • • • • • • • • • • 92
X. CO-QPERATIVE FEDERATIONS •••••••••••••••••••••••••• 122
XI. THE CoNFLICT BETWEEN CO-oPERATIVE SOCIETIES AND
TRADERS ........................ : .. .. .. .. .. .. .... 141
XII. CAUSES OF SUCCESS OR FAILURE OF CoNSUMERS' SOCIETIES 155
XIII. THE RELATIONS BETWEEN CO-OPERATIVE SOCIETIES AND
THE STATE ...................................... 170
XIV. PRODUCTION BY CoNSUMERS' SOCIETIES 181
XV. THE EMPLOYEES AND WORKMEN IN CO-OPERATIVE, SOCIETIES 206
XVI. CO-OPERATION AND SOCIALISM •••••••••••••••••••••••• 220
INDEX •••••••••••••••••••••••••••••••••••••••••••• 243

244 '
CONSUMERS' CO-OPERATIVE SOCIETIES.
Breweries. Co-operative. 93.
Bribery and Corruption Act. 165.
Britain. Co-operation in. 13-20. 86. 88.
109. 1I8. 143; capital of. 82. 83. 89 ;
co-operative production in. 184; 186 ;
co-operative housing in, 1I0-1I3;
law relating to. 121; statistics
relating to, 33, 35-38.
British Co-operative Union, 126, 137.
British co-operators anlt political
action, 239-241.
Brooks. Graham. cited. 6.
Brun):les, M •• quoted, 208.
Brussels. Co-operation in. 107. 239.
Buchez, M .• 233.
Budapest, Co-operation in. 40.
Buffoli, M .• cited. us.
Building societies. 3, 32. 66, lIo-u6.
Butcheries. Co-operative. 100-102 ;
municipal. 102.
c
Cafes. Co·operative, 105-107. 1I6.
California. Co·operation in, 41.
Canada, Co-operation in, 31.
Canadian estates, of British co-opera- .
tors, 186'187.
Capital, of societies, 44, 56, 75, 81-91.
171. 180. 204; employment of. 89-
91, 110, 161, 241 ; remuneration of.
86-89. 224, 229; State-provided, 86.
170; surplus. 85, 90; of British
societies, 82; of producers' associa,
tions, 199.
Carlisle, Congress at; 70.
Cash trading by societies, 47-49.
Catholic societies, 160.
Central Board, Co-operative Union, 126.
Central Union of Credit Societies. 228.
Cernesson, M., quoted, 62, 156. 158 •.
159, 209·
Ceylon, Co-operative tea plantations in.
186-187.
Chain-store system, American,' 41.
Character, a factor in co.operation.
162-165.
Charitable grants, of societies. 70.
Cheysson, M., quoted. 67. 1I3.
Choral societies, 71.
Christian Socialists and co.operation.
18. 172, 192, 215.
Civil Employees of the Seine, Society
of. 54, 152. 225.
Civil Service stores, 42, 76, 224.
Class war. Co·operation ,and. II. 24.
135, 207. 220, 230, 232, 239.
Clubs, Co.operative, II9.
Coal mines purchased by societies. 186.
187. .
Coal. Sale of. 185.
Collective piece-work, 219.
Collective purchasing from traders, 152.
Collectivists and co-operation. II. 22,
181. 198.
Collective use of profits, 231.,
GoUege de Franee. Chair of Co-OPeI8tion.
69.
College for co-operators. 70.
Comedie Fr_ise. a. co-operative
theatre, u8.
Commercial co-operation. Forms of. 91.
Committees of societies. 156. 159. 207.
212; payment of, 226.
Communal dwellings, 104.
Communism, Co-operation and. 220.
Community on land. 185.
Competition. Effect of. on co-operative
trade. 63.
Conciliation Boards. 210-2II.
Congresses. Early. 14. 19. 55. 185.
Consumers' associations, conservatism
of. 193.
Consumers' co-operation. Advantages
of. 2; limits of. 9 I; relation to
producers' co-operation, 192-205.
Consumers' leagues, 152. 195.
Contracts de AdhAsion. 190. .
Convalescent Homes. 70. 132.
Co-opeIation defined. 228; an end in
itself. u; a new economic system.
8; and Socialism. 27, 57-
Coopbaliott des FamiUes. 152.
Co-operative Holidays Association.
u8.
Co-operative Insurance Society. 34.
120.
Coo()pe,alive News. 60. 69. 72. 73. 88.
227_
Co-operative Parliamentary Representation
Committee. British. 241.
'Co-operative Party. The, 241.
Co-operative society, The true type.
233·
Co-operative Union. The British. 19.
36. 70, 123, 126, 204, 225. 241; the
French. 24; the Italian. 123; the
Swiss. 123-
Co-operative Unions. Work of. 122-127.
Co-partneIship school of co-operators,
202. 215-216. .
Cost price. Sale at, 64 •.
Covenant of Union. Adoption of. 25 ..
Creameries. Co-opeIative. 183.
Credit societies. 23. 26. 32. 121, 144;
number of. 34; in Germany. 26.
Credit trading. 47-49. 142-143·
Cremona. International congress at.
240.
Creusot. Co'operation in, 37, 76.
Criiger. Dr .. and co-operation. 27.
Czecho-Slovakia. Co-operation in, 40.

CONSUMERS' CO-OPERATIVE SOCIETIES_
Members. 30-33; equality of. 75;
expulsion of. 79; liability of. 171 ;
employee. 2lI-214; number of. 33.
Membership of societies. 75-80. 238;
oren. 80. 172, 178. 238; limitation
o. 76. 77. 2lI.
Middle classes and co-operation. 147.
148. 164. 222. 224.
Milan. Co.operation in. 39.93.107. II5.
123·
Milanino Garden City. lIS.
Military canteens. 105-107; clubs, 152.
Military societies. 76·77.
Mill. John Stuart. and co-operation. 18.
157.172.
Milling. Co-operative. 99-100. 197.
Miners. Societies of. 63. 76. 78. 227.
Minimum wage for employees. 209.
Minneafolis. Co-operation in. 41.
Mitchel. J. T .• quoted. 6.
Montceau-Ies-Mines. Societies in. 37.
Moscow Society. 40.
Miiller. Auguste. 125.
Miiller. Hans. quoted. 239.
Multiple shops. French. 151.
Municipal enterprise. A form of cooperation.
189-190; sphere of. 191.
Mutual aid societies. 4. 67. lQ7. 108.
Mutuality and co-operation compared.
4-
N
National Federation of Consumers'
Societies. French. lI9. 209. 223.
Nationalisation, Co-operators and. 191.
'230. 235.
National society proposed. 126.
Neale. E. Vansittart. quoted. 202. 215.
Negroes and co-operation. 41.
Neutrality of societies. 221 -224. 238.
239. 241.
Newmains Society. Lanark. 60.
Newspapers. Co-operative. 72-73.117.
137. 235; circulation of. 166-167.
Nlmes. Co-operation in. 23; sebool of.
23. 25. 71. 73. 222. 234.
Non-members. Sale to. 43; 49-54. 107.
144. 176-177. 192. 203·
Norton Society. Farming by. 188_
Norway. Co-operation in. 30.
o
Office Ooo(>eriUif. French. 135.
Open membership. 80. 172. 178. 238.
Overlapping by societies. 159-161. (8e.
also Amalgamation of societies.)
Owen. Robert. his work and infiuence.
13-16. 18. 55. 57. ,162. 185. 220_
p
Paepe. cesar de. 20. .
Paisley Congress. and poli tical action.
• 240.
Paisley Productive Society. 200.
Palestine. Co-operation in. 29.
Pantaleoni. M .• quoted. 12.
Paris. Congress at. 23.
Paris. Co.operation in. 23-24. 37-38.
62. 65. 71. 76.95. 102-103. 123. 135.
156. 158-159. 162. 163. 169. 175. 192.
209-210.225; credit societies in. 23 ;
workers' associations in. 201.
Parliamentary representation. British
co-operators and. 240-242.
Pascal. quoted. 236.
Pensions. Co-operative. 231.
Perth Society. 60.
Petrograd. Co-operation in. 77.
Phalansteres. (8ee Fourier.)
Pharmacies. Co-operative. 107-109.
Pictet. Edouard. cited. 215.
Plymouth. Congress at. 137.
Poisson. M .• cited. 209.
Poland. Co·operation in. 30.
Political funds. Co-operative. 64 ;
propaganda. 4.
Politics. Co-operation and. 20. 123. 160.
214. 229. 231. 233. 238-241.
Poor. Co-operation and the. 43. 46. 48.
64.73-
Population. Proportion of Co-operators.
165.
Portugal. Co-operation in. 31-
Prague. Co-operation in. 40.
Price. The fair. established by cooperation.
8; co-operation and. 107.
Prices charged by societies. 45-46. 58 ;
fixed. 9. (8ee also Sale at Cost
Price.)
Producer. Place of. in modern society.
12.
Producers and consumers. Relation of.
183-184. 192-205. 230.
Production. Societies for. 184.193.196.
197. 199. 203. 233; absorption of. by
wholesale societies. 201-202; and the
International Alliance. 140; weakness
of. 196-197-
Production. Stages on the road to. 181-
191; agricultural. by co-operative
societies. 185-188; industrial. by
co-operative societies. 182-185. 198 ;
by wholesale societies. 129. 136;
for use, 12.
Prod uctive enterprises. Capital invested
in. 89, 90.
P,oduktioH. of Hamburg. 85, 89. 181_
Professional societies. 160. 19 I_

UN WIN'S "CHATS" SERIES
LIST OF VOLUMES
Chats on English China. By ARTHUR lliYDEN. Illustrated
with reproductions of 156 marks and 89 specimens
of china. Cloth, 15s. net. Fourth Edition.
This is the standard work on the subject. The volume
will .enable the possessors of old china to determine
the factories at which their ware was produced .
• ' It gives in a few chapters just what the beginner wants to know
about the principal varieties of English ware. We can warmly
commend the book to the china collector." PaU MaU Gazette •
.. So simply yet so thoroughly written, that it is a sage guide to the
veriest tyro in china collecting." . Bookman.
Chats on Old Furniture. By ARTHUR HAYDEN. With
a coiouredfrontispiece and 104 other Illustrations. Cloth,
. 12s. 6d. net. Fourth Edition. Eleventh Impression.
"'The hints to collectors are the best and clearest we have seen; so
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.. A fully illustrated practical guide for collectors." The Timu •.
.. Mr. Hayden has worked at his subject on systematio lines, and
has made his book what it purports to be-a practical guide for the
collector." The Saturday Review.
Chats on Old Prints. How to Collect and Identify.
By ARTHUR HAYDEN. With a coloured frontispiece and
72 full-page plates. Cloth, 15s. net. Sixth Impression.
Every branch of the subject is carefully and explicitly
handled in this book, and valuable information as to
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.. If there is a better book of its kind on print collecting we have not
foet come across it." Daily Graphic.
, A very useful handbook for beginners, intended to help any reader
of artistio tastes, but very moderate means, to collect to good pur·
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Chats on Costume. By G. WOOLLISCROFT RHEAD, R.E.
With a coloured frontispiece and 117 other Illustrations.
Cloth, lOs. 6d. net. Second Impression.
A practical guide to historic dress. " Clothes" is
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"A book that is at once the work of an authority on the subject;
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Chats on Old Miniatures. By J. J. FOSTER, F.S.A.
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This book presents in a concise ap.d popular form a variety
of valuable information on the collection and preservation
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and on the specimens exhibited. in public galleries.
II Mr. Foster is truly a guide, philosopher and friend. He tells us
Dot only how to judge and how to buy miniatures, but how to take
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book is enriched adds in a great measure to ite attractiveness and
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Chats on Old Lace and Needlework. By MRs. LOWES.
With a frontispiece and 74 other Illustrations. Cloth,
lOs. 6d. net. Third Impression.
Written by an expert and enthusiast in these most
interesting branches of art. The low price at which
the work is issued is exceptional in dealing with
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technical knowledge displayed and the many photographic
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II In commendable, clear and concise style Mrs. Lowes explains the
technical features distinguishing each example. making the book the
utmost value inidsntifying sample!! of old la.ce."-Weldon'. Ladiu' Jour,.
'Chatl on Oriental China. By J. F.BuCKER. With
a coloured frontispiece and 70 other Illustrations. Cloth,
lOs. 6d. net. Fourth Impression.
Will be of the utmost service to collectors and to all who
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II A treatise that is so informing and comprehensive that it commands
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UNWIN'S II C HAT So" SERIES
Chats 00 English Eartheoware. A companion volume
to "Chats on English China." By ARTHUR HAYDEN.
With a coloured frontispiece, 150 Illustrations and tables
of over 200 illustrated marks. Cloth,
lOs. 6d. net. Third Impression.
"To the ever.increasing number of collectors who are taking
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the most delightful, as it is a practical work on a fascinating
Bubject." .' 0 Hearth and Home.
"Here we' have a handbook, written by a well·known authority,
which gives in the concisest possible form all the information that
the beginner in earthenware collecting is likely to need. Moreover,
it contains one or two features that are not usually found in the
multifarious' guides' that are produced to.day." Nation.
Chats 00 Autographs. By A. M. BROADLEY. With
180 Illustrations. Cloth, 6s. net.
"Being an expert collector, Mr. Broadley not 0 only discourses on
the kinds of autograph he owns, but gives some excellent cautionary
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" It is 8SBuredly the best work of the kind yet given to the public;
and supplies the intending collector with the various sources of infor.
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Chats 00 Old Pewter. By lJ. J. L. J.MASSE, M.A. With
152 half-tone and numerous other Illustrations. Cloth,
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" It is a remarkably thorough and well.arranged guide to the subject,
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factory book of reference." Manche8ter Guardia".
" Before setting out to collect old pewter it would be as well to read
Mr. Masse's book, which is exhaustive in its information and its
list. of p,ewterers, analytical index, and historical and technical
ohapters. ' • Spef:lator •.
Chats 00 Postage Stamps. By FRED J. MELVILLE.
With 57 half·tone and 17 line Illustrations. Cloth,
lOs. 6d. net. Second Impression.
" The whole book, with its numerous illustrations of excellent quality,
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.. There is no doubt that Mr. Melville's book fills a void. There is
nothing exactly like it. Agreeably written in a popular style and
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UNWIN'S "CHATS" S ERI ES
Chats on Old Jewellery and Trinkets. By MAcIvER
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II The book is very thorough, dealing as it does with classic. antique
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II. Chate on Old Jewellery and Trinkete' is a book which will enable
every woman to tum over her jewel.case with a fresh interest and
• new intelligence; a practical guide for the humble but anxious
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illustrations complete a valuable contribution to collector'.
lore."· Illustrated London N t-WIJ.
Chats on Cottage and Farmhouse Furniture. A companion
volume to" Chats on Old Furniture." By ARTHUR
HAYDEN. With a coloured frontispiece and. 75 other
lliustrations. Cloth, 158. net. 'Third Impression.
II One gets very much for one's money in this book. Seventy-three
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II Mr. Hayden'. book is a guide to all sorta of desirable and simple
furniture, from Stuart to Georgian. and it is a delight to read as well
as a sure help to selection." Pal, Mall Gazetee •
.. Mr. Hayden writes lucidly and is careful and accurate in his state.
mente; while the advice he gives to collectors is both sound and
reasonable." Wuemi1l8ter ·Gazette.
Chats on Old Coins. By FRED W. BURGESS. With a
coloured frontispiece and 258 other lliustrations. Cloth,
lOs. 6d. net. Second Impression.
II A most useful and instructive book • • • will prove a boon to the
intending collector of old coins and tokens, and full of interest to
every collector. As was to be expected of any volume of this series.
the illustrations are numerous and good. and greatly assist the ,reader
to grasp the essentials of the author's descriptions." Outlook •
.. The author has not only produced 'a practical guide for the collector'
but a handy book of reference for all. The volume is wonder-
. fully cheap." Notu and QUIlneB.
Chats on Old Copper and Brass. By FRED W.
BURGESS. With a coloured frontispiece and 86 other
lliustrations. Cloth, 6s. net.
II Mr. F. W. Burgess is an expert on old copper and bronze, and in his
book there is little information lacking which the 'most arden1;
collector might want.", The Ob8enler.
II Italian bronzes, Afrioan charms, Chinese and Japanese enamels,
bells, mortars, Indian idols, dials, candlesticks, and snuff boxe.,
all come in for their share of attention, and the reader who hal
mastered Mr. Burgess's pages can face his rival in the auctiouroom
or the dealer in his shop with little fear. of suffering by the
transaction," The Nation.
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UNWIN'S "CHATS" SERIES
Chats on Household Curios. By FRED W. BURGESS.
With 94 Illustrations. . Cloth, 6s. net •
.. Mr. Burgess gives much information about such attractive antiques
as old glass and enamels, old leather work, old clocks and watches,
old pipes, old seals, musical instruments, and even old samplers and
children's toys. The book is, in short, an excellent and compre.
hensive guide for what one may call the general collector, that is,
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