withdrawal from the Society, and others who were dissatisfied beyond reconciliation did the same. The Society had now funds at the bank, and could be neither intimidated nor distressed. The directors made known that all notice givers would be paid at once, rightly concluding that those who were needy ought to be relieved without delay, and those who withdrew from ill-will ought to be released. Dead branches add no vigour to the tree. The leal members were numerous enough to maintain the vitality of the Society. The trade was better than it had been for years, and loans of money were offered to assist the directors if needed. Happily they were not needed. Time was when members were not so ready to assist the directors, and had no money to do it with if they were willing. Now many members had money which the Society had made for them, and it was honourable in the new capitalists to be ready to place funds at the service of the directors. The number of members paid out was 161, and the amount was £520.

Next it was resolved to reduce the amount of shares from £5 to £2, the reason being that they had more money in hand than the directors knew how to use. If they held money at 5 per cent without employing it, it diminished the general dividend, and if they paid 5 per cent when they could borrow at 4 per cent the dividend suffered in proportion.

Here a new wonder came to sight, which has since been seen in other societies-working men, who were told they never could possess capital, and believed it themselves, had acquired more than they knew what to do with.

The old pioneers at Rochdale never had difficulty in employment of accumulated funds. They set up a profitsharing spinning mill. It was the promise to establish profitsharing workshops that first made co-operation popular. Their successors in Rochdale lost sight of this noble intention. Leeds had not taken this step, that was why the Society did not know what to do with its money.

Yet the directors had the wholesome principle of profitsharing in their minds, and on discussion further decided to give the head storekeeper 10 per cent upon the whole profits when they reached £15 and upwards, and recommended the storekeepers to let their shares remain until they reached the amount of their individual bonds.

The successive details the reader has seen of the intelligent devices of administration the Leeds Society have invented, or adopted, will be instructive reading in many young stores and interesting to co-operative students.

This year the disconsolate clothing department, which had been subject to many misgivings, showed a profit of £105, and declared a dividend on purchases of 1s. 3d. in the pound. Thus the judgment of the members was justified in keeping that vessel in the navy of the stores.

1865.

BENEFICIAL ABSENTEES-NEW NAME FOR A FEROCIOUS DEPARTMENT PROF. F. W. NEWMAN'S ARGUMENT AN INCREDIBLE CLASS OF PURCHASERS-A FORMER DEVICE RETRIED.

A

had

FTER getting rid of the "old losses" item and the disturbing elements considerately withdrawn themselves, peace and prosperity set in. The profits on flour were £1,850, on groceries £568, clothing £91, on meat £64.

In Scotland meat sellers are called " fleshers," an uncomfortable term. In England meat sellers are called "butchers," which is worse, and conveys a brutal idea to the mind. Repugnance to the fact does not, however, do away with necessity. There is slaughter all over nature; but that is no reason for parading the unpleasant fact over our doors and in our balance sheets, spoiling the daily meal by obtruding associations all the more painful, since they are now mostly needless. Long ago I published a letter from Prof. F. W. Newman explaining that the death of animals for food might be rendered quite painless, and the meat made of greater value by increase in weight and intrinsically more nutritious, since loss of blood diminishes weight and wastes the richest element of animal food. Prof. Newman thought co-operators the most likely persons to care for profit and humanity. Anyhow, the horrors of terms may be avoided. Therefore, in

this narrative the "butchering department" is described under the head of meat selling.

It was not until 1865 that purchasers not members of the Society were accorded half the dividend given to members. It seems incredible that it should have required years to take so wise a step. Why outside purchasers should be refused permission to increase the profits of members, by making purchases equal to their own, no human being can tell. It is not less incredible that there should exist a class of people anxious to get all they can in a bargain, yet persist in taking only half a share of profits when they might have a full share. Yet this marvellous class of people are found in the neighbourhood of every store. There are those who believe that cupidity is wide eyed, but there are clearly numerous persons who have their acquisitive eyes only half open.

Again, a device was acted upon which was tried without result when the first shop in Briggate was opened the device of employing a traveller to call upon the public and non-purchasing members and canvass for new members, and increase the purchasing tendencies of non-buying or half-buying members. But again the plan did not succeed.

1866.

QUEEN ELIZABETH'S SAGACITY- THOUGHT FOR SERVANTS-THE FIRST FLOOD-BENEFIT OF A RESERVE FUND.

W

HEN Queen Elizabeth had a new plan of procedure she wished tried, she told her officers of State that " they might find new instructions restrictions, but, like new clothes which are a little stiff at first, they would become easy by wear." By this time the Society found the truth of the shrewd queen's saying. The new store system which after ample inquiry had been engrafted on the flour mill organisation, and which for a time produced explosions and conspiracy, now worked easily. This year there is little but confirmed prosperity to recount.

The year was marked by a handsome piece of consideration to all persons employed. The time of store servants was shortened, by closing one hour earlier in the evening. Thus the co-operators were from the first on the side of the early closing movement, and the Society was considered to have had, by its example, an influence upon shopkeepers in the town, and benefited their assistants.

In fact, as far as can be ascertained, they were the precursors of the movement in Leeds. Besides, the Society made another concession of similar inportance, namely, closing the stores half a day each week. The directors were the first in Leeds to give the half-holiday per week to their store employés, an act of kindly consideration, by which employés elsewhere in Leeds came afterwards to benefit.

In November the floods came, causing a heavy loss in the grocery department, the wholesale warehouse being flooded to a great depth. The loss amounted to about £300; but this did not affect the share of profit given to members, who found the advantage of having a reserve fund from which the directors took an amount sufficient to equalise the dividend by raising it to its expected amount, 1s. 6d. Had it not been for the reserve fund, the dividend would have been only 10d.

1867.

DISCONTENT DIVINE AND

DIFFERENT-COAL

TRADE BEGUNFLOUR THE STAPLE OF THE SOCIETY'S LIFE-TEST ORDEREDDISEMBODIED AGENTS WALK ABROAD-WHY STORES LAGGED BEHIND THE MILL.

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THICAL politicians recognise that there is a "divine discontent," but the Society now and then encountered a discontent which was neither divine nor reasonable, not being founded on fact. This species of dissatisfaction recurred at times. Notwithstanding, the Society progressed step by step and prospered on the whole as it went.

This year (1867) a unanimous resolution was passed, authorising the directors to enter into the coal business.

Probably that business warmed the heart of the Society, for from year to year the coal department always made a good profit. The Society had now advanced to a position of confidence, and members were prepared to hand over to the directors any amount of capital; but for reasons the reader has seen they declined any more loans. The flour department continued, in all vicissitudes of time, trade, and contention, to make substantial profits. This year it made a profit of £1,708 upon a turnover of £30,341, and a dividend of 3s. per bag was declared. Complaints prevailed of the quality and price of the groceries. The directors, therefore, had all their goods tested, which were found equal, and in many instances superior, to the goods selected from respectable private traders. But many of those who had complained so eloquently without knowledge, now had a complaint against the knowledge which showed their complaints to be groundless. But more sensible members were glad of the information.

The meat department still showed that there was no flesh of profit on its bones, and the members at last agreed that meat selling should be ended. It was a perennial puzzle to the directors why the flour society should continue prosperous and robust, while all the other departments were pale in the face, visibly thin, and some losing flesh But there appeared no explanation save that defunct vested interests, disturbed by being superseded, had risen from their graves and were walking the earth again. Disembodied agents were certainly about. A good deal of discontent was owing to the unfamiliarity of members generally with co-operative action in their own interests, joined to ignorance of its principles. The pinch of dear flour and bad flour all the town had felt, but there was no corresponding experience which they could understand with respect to commodities in general. Dearness and adulteration were everywhere, but there had not been sufficient intelligence to detect it and resent it so effectually as in the case of flour.

Many of the flour agencies had certainly been done away with as new branches were opened but not all of them. Thirty years later (1897), the reader, if he inquires, will learn that seven shopkeepers in various parts of the town are agents for the sale of the Society's flour.