operation, obtain as good incomes as they would have done if the old system had continued.

The change will benefit shopkeepers by freeing them in a great measure from their dependence on small bodies of customers whose humours they have to consult; they will have the sound position that comes of doing business in a business-like way. But the change will of course diminish the number of shopkeepers whose work is required1; and the process of thinning out must be painful; the suffering need not however be great if shopkeepers adapt themselves quickly to the requirements of the new age, and urge all young men who have not special reasons for becoming shopkeepers to choose some other occupation. The general prosperity of the country will be much increased when the capital and labour that are now wastefully employed in the retail trade, are set free for other work.

II. The third work of co-operators is to diminish the discords between retail and wholesale dealers and producers. For this purpose they have started a Wholesale Co-operative Society, which aims at doing for the retail stores what the retail stores aim at doing for the individual consumer. It buys directly from the producer, or importer; it imports some things itself, and it has its own works for making biscuits, shoes, and soap. The retail stores who deal with it share in its profits; and however little they buy, however little they understand the business of buying, they can, it is asserted, buy from it on the most favourable terms.

There is a plan for making this society the centre of a grand Federation of Co-operators. It is proposed that co-operative consumers should guarantee to co-operative producers a steady market for their wares 2. Having uninterrupted employment, the co-operative producers would, it is argued, be free from anxiety, and be able to get high wages for themselves, while they produced at a low price on the average; and the co-operative purchasers would gain by buying their goods cheaply in the first instance, and also by receiving a share of the net profits of the co-operative workshops. For it is assumed that the net profits of the co-operative workshops would be divided between the labour employed in it and the customers. The total demand of co-operative consumers is of course not constant from year to

1 It has been calculated by Mr Neale (Economics of Co-operation) that there are 41,735 separate establishments for 22 of the principal retail trades in London. If for each of these trades there were 648 shops, that is 9 to the square mile, no one would have to go more than a quarter of a mile to the nearest shop; there would be 14,256 shops in all. Assuming that this supply would be sufficient, there are in London 251 shops for every 100 that are really wanted.

2 See Book III. ch. i. § 4.

year; and therefore perfectly uninterrupted employment could not be guaranteed to the workshops if their annual produce exceeded the amount which the Stores were willing to purchase in the most unfavourable years. And the prices and wages in the workshops would have to fall whenever they fell in the outside markets: for otherwise the trust of co-operators would be put to too great a strain.

The plan will require much exercise of the Co-operative Faith; but it will be a gain to the world if many wish for it, and a great gain if they achieve it.

INDEX.

CAMBRIDGE: PRINTED BY C. J. CLAY, M.A. AT THE UNIVERSITY PRESS.