METHODS OF ECONOMY.
"It was with profound wisdom that the Romans called by the same name courage and virtue. There is in fact no virtue, properly so called, without victory over ourselves; and what cost us nothing, is worth nothing."--_De Maistre_.
"Almost all the advantages which man possesses above the inferior animals, arise from his power of acting in combination with his fellows; and of accomplishing by the united efforts of numbers what could not be accomplished by the detached efforts of indivduals."--_J.S. Mill_.
"For the future, our main security will be in the wider diffusion of Property, and in all such measures as will facilitate this result. With the possession of property will come Conservative instincts, and disinclination for rash and reckless schemes.... We trust much, therefore, to the rural population becoming Proprietors, and to the urban population becoming Capitalists."--_W.R. Greg_.
The methods of practising economy are very simple. Spend less than you earn. That is the first rule. A portion should always be set apart for the future. The person who spends more than he earns, is a fool. The civil law regards the spendthrift as akin to the lunatic, and frequently takes from him the management of his own affairs.
The next rule is to pay ready money, and never, on any account, to run into debt. The person who runs into debt is apt to get cheated; and if he runs into debt to any extent, he will himself be apt to get dishonest. "Who pays what he owes, enriches himself."
The next is, never to anticipate uncertain profits by expending them before they are secured. The profits may never come, and in that case you will have taken upon yourself a load of debt which you may never get rid of. It will sit upon your shoulders like the old man in Sinbad.
Another method of economy is, to keep a regular account of all that you earn, and of all that you expend. An orderly man will know beforehand what he requires, and will be provided with the necessary means for obtaining it. Thus his domestic budget will be balanced; and his expenditure kept within his income.
John Wesley regularly adopted this course. Although he possessed a small income, he always kept his eyes upon the state of his affairs. A year before his death, he wrote with a trembling hand, in his Journal of Expenses; "For more than eighty-six years I have kept my accounts exactly. I do not care to continue to do so any longer, having the conviction that I economize all that I obtain, and give all that I can,--that is to say, all that I have."[1]
[Footnote 1: Southey's _Life of Wesley_, vol. ii., p. 560.]
Besides these methods of economy, the eye of the master or the mistress is always necessary to see that nothing is lost, that everything is put to its proper use and kept in its proper place, and that all things are done decently and in order. It does no dishonour to even the highest individuals to take a personal interest in their own affairs. And with persons of moderate means, the necessity for the eye of the master overlooking everything, is absolutely necessary for the proper conduct of business.
It is difficult to fix the precise limits of economy. Bacon says that if a man would live well within his income, he ought not to expend more than one-half, and save the rest. This is perhaps too exacting; and Bacon himself did not follow his own advice. What proportion of one's income should be expended on rent? That depends upon circumstances. In the country about one-tenth; in London about one-sixth. It is at all events better to save too much, than spend too much. One may remedy the first defect, but not so easily the latter. Wherever there is a large family, the more money that is put to one side and saved, the better.
Economy is necessary to the moderately rich, as well as to the comparatively poor man. Without economy, a man cannot be generous. He cannot take part in the charitable work of the world. If he spends all that he earns, he can help nobody. He cannot properly educate his children, nor put them in the way of starting fairly in the business of life. Even the example of Bacon shows that the loftiest intelligence cannot neglect thrift without peril. But thousands of witnesses daily testify, that men even of the most moderate intelligence, can practise the virtue with success.
Although Englishmen are a diligent, hard-working, and generally self-reliant race, trusting to themselves and their own efforts for their sustenance and advancement in the world, they are yet liable to overlook and neglect some of the best practical methods of improving their position, and securing their social well-being. They are not yet sufficiently educated to be temperate, provident, and foreseeing. They live for the present, and are too regardless of the coming time. Men who are husbands and parents, generally think they do their duty if they provide for the hour that is, neglectful of the hour that is to come. Though industrious, they are improvident; though money-making, they are spendthrift. They do not exercise forethought enough, and are defective in the virtue of prudent economy.
Men of all classes are, as yet, too little influenced by these considerations. They are apt to live beyond their incomes,--at all events, to live up to them, The upper classes live too much for display; they must keep up their "position in society;" they must have fine houses, horses, and carriages; give good dinners, and drink rich wines, their ladies must wear costly and gay dresses. Thus the march of improvidence goes on over broken hearts, ruined hopes, and wasted ambitions.
The vice descends in society,--the middle classes strive to ape the patrician orders; they flourish crests, liveries, and hammercloths; their daughters must learn "accomplishments"--see "society"--ride and drive--frequent operas and theatres. Display is the rage, ambition rivalling ambition; and thus the vicious folly rolls on like a tide. The vice again descends. The working classes, too, live up to their means--much smaller means, it is true; but even when they are able, they are not sufficiently careful to provide against the evil day; and then only the poorhouse offers its scanty aid to protect them against want.
To save money for avaricious purposes is altogether different from saving it for economical purposes. The saving may be accomplished in the same manner--by wasting nothing, and saving everything. But here the comparison ends. The miser's only pleasure is in saving. The prudent economist spends what he can afford for comfort and enjoyment, and saves a surplus for some future time. The avaricious person makes gold his idol: it is his molten calf, before which he constantly bows down; whereas the thrifty person regards it as a useful instrument, and as a means of promoting his own happiness and the happiness of those who are dependent upon him. The miser is never satisfied. He amasses wealth that he can never consume, but leaves it to be squandered by others, probably by spendthrifts; whereas the economist aims at securing a fair share of the world's wealth and comfort, without any thought of amassing a fortune.
It is the duty of all persons to economize their means,--of the young as well as of the old. The Duke of Sully mentions, in his Memoirs, that nothing contributed more to his fortune than the prudent economy which he practised, even in his youth, of always preserving some ready money in hand for the purpose of meeting circumstances of emergency. Is a man married? Then the duty of economy is still more binding. His wife and children plead to him most eloquently. Are they, in the event of his early death, to be left to buffet with the world unaided? The hand of charity is cold, the gifts of charity are valueless, compared with the gains of industry, and the honest savings of frugal labour, which carry with them blessings and comforts, without inflicting any wound upon the feelings of the helpless and bereaved. Let every man, therefore, who can, endeavour to economize and to save; not to hoard, but to nurse his little savings, for the sake of promoting the welfare and happiness of himself while here, and of others when he has departed.
There is a dignity in the very effort to save with a worthy purpose, even though the attempt should not be crowned with eventual success. It produces a well-regulated mind; it gives prudence a triumph over extravagance; it gives virtue the mastery over vice; it puts the passions under control; it drives away care; it secures comfort. Saved money, however little, will serve to dry up many a tear--will ward off many sorrows and heartburnings, which otherwise might prey upon us. Possessed of a little store of capital, a man walks with a lighter step--his heart beats more cheerily. When interruption of work or adversity happens, he can meet them; he can recline on his capital, which will either break his fall, or prevent it altogether. By prudential economy, we can realize the dignity of man; life will be a blessing, and old age an honour. We can ultimately, under a kind Providence, surrender life, conscious that we have been no burden upon society, but rather, perhaps, an acquisition and ornament to it; conscious, also, that as we have been independent, our children after us, by following our example, and availing themselves of the means we have left behind us, will walk in like manner through the world in happiness and independence.
Every man's first duty is, to improve, to educate, and elevate himself--helping forward his brethren at the same time by all reasonable methods. Each has within himself the capability of free will and free action to a large extent; and the fact is proved by the multitude of men who have successfully battled with and overcome the adverse circumstances of life in which they have been placed; and who have risen from the lowest depths of poverty and social debasement, as if to prove what energetic man, resolute of purpose, can do for his own elevation, progress, and advancement in the world. Is it not a fact that the greatness of humanity, the glory of communities, the power of nations, are the result of trials and difficulties encountered and overcome?
Let a man resolve and determine that he will advance, and the first step of advancement is already made. The first step is half the battle. In the very fact of advancing himself, he is in the most effectual possible way advancing others. He is giving them the most eloquent of all lessons--that of example; which teaches far more emphatically than words can teach. He is doing, what others are by imitation incited to do. Beginning with himself, he is in the most emphatic manner teaching the duty of self-reform and of self-improvement; and if the majority of men acted as he did, how much wiser, how much happier, how much more prosperous as a whole, would society become. For, society being made up of units, will be happy and prosperous, or the reverse, exactly in the same degree as the respective individuals who compose it.
Complaints about the inequality of conditions are as old as the world. In the "Economy" of Xenophon, Socrates asks, "How is it that some men live in abundance, and have something to spare, whilst others can scarcely obtain the necessaries of life, and at the same time run into debt?" "The reason is," replied Isomachus, "because the former occupy themselves with their business, whilst the latter neglect it."
The difference between men consists for the most part in intelligence, conduct, and energy. The best character never works by chance, but is under the influence of virtue, prudence, and forethought.
There are, of course, many failures in the world. The man who looks to others for help, instead of relying on himself, will fail. The man who is undergoing the process of perpetual waste, will fail. The miser, the scrub, the extravagant, the thriftless, will necessarily fail. Indeed, most people fail because they do not deserve to succeed. They set about their work in the wrong way, and no amount of experience seems to improve them. There is not so much in luck as some people profess to believe. Luck is only another word for good management in practical affairs. Richelieu used to say that he would not continue to employ an unlucky man,--in other words, a man wanting in practical qualities, and unable to profit by experience; for failures in the past are very often the auguries of failures in the future.
Some of the best and ablest of men are wanting in tact. They will neither make allowance for circumstances, nor adapt themselves to circumstances: they will insist on trying to drive their wedge the broad end foremost. They raise walls only to run their own heads against. They make such great preparations, and use such great precautions, that they defeat their own object,--like the Dutchman mentioned by Washington Irving, who, having to leap a ditch, went so far back to have a good run at it, that when he came up he was completely winded, and had to sit down on the wrong side to recover his breath.
In actual life, we want things done, not preparations for doing them; and we naturally prefer the man who has definite aims and purposes, and proceeds in the straightest and shortest way to accomplish his object, to the one who describes the thing to be done, and spins fine phrases about doing it. Without action, words are mere maundering.
The desire for success in the world, and even for the accumulation of money, is not without its uses. It has doubtless been implanted in the human heart for good rather than for evil purposes. Indeed the desire to accumulate, forms one of the most powerful instruments for the regeneration of society. It provides the basis for individual energy and activity. It is the beginning of maritime and commercial enterprise. It is the foundation of industry, as well as of independence. It impels men to labour, to invent, and to excel.
No idle nor thriftless man ever became great. It is amongst those who never lost a moment, that we find the men who have moved and advanced the world,--by their learning, their science, or their inventions. Labour of some sort is one of the conditions of existence. The thought has come down to us from pagan times, that "Labour is the price which the gods have set upon all that is excellent." The thought is also worthy of Christian times.
Everything depends, as we shall afterwards find, upon the uses to which accumulations of wealth are applied. On the tombstone of John Donough, of New Orleans, the following maxims are engraved as the merchant's guide to young men on their way through life:--
"Remember always that labour is one of the conditions of our existence.
"Time is gold; throw not one minute away, but place each one to account.
"Do unto all men as you would be done by.
"Never put off till to-morrow what can be done to-day.
"Never bid another do what you can do yourself.
"Never covet what is not your own.
"Never think any matter so trifling as not to deserve notice.
"Never give out what does not come in.
"Do not spend, but produce.
"Let the greatest order regulate the actions of your life.
"Study in your course of life to do the greatest amount of good.
"Deprive yourself of nothing that is necessary to your comfort, but live in honourable simplicity and frugality.
"Labour then to the last moment of your existence."
Most men have it in their power, by prudent arrangements, to defend themselves against adversity, and to throw up a barrier against destitution. They can do this by their own individual efforts, or by acting on the principle of co-operation, which is capable of an almost indefinite extension. People of the most humble condition, by combining their means and associating together, are enabled in many ways to defend themselves against the pressure of poverty, to promote their physical well-being, and even to advance the progress of the nation.
A solitary individual may be able to do very little to advance and improve society; but when he combines with his fellows for the purpose, he can do a very great deal. Civilization itself is but the effect of combining. Mr. Mill has said that "almost all the advantages which man possesses over the inferior animals, arise from his power of acting in combination with his fellows, and of accomplishing, by the united efforts of numbers, what could not be accomplished by the detached efforts of individuals."
The secret of social development is to be found in co-operation; and the great question of improved economical and social life can only receive a satisfactory solution through its means. To effect good on a large scale, men must combine their efforts; and the best social system is that in which the organization for the common good is rendered the most complete in all respects.
The middle classes have largely employed the principle of association. No class has risen so rapidly, or done more by their energy and industry to advance the power and progress of England. And why? Because the most active have always been the most ready to associate, to co-operate, and to combine. They have combined when they were attacked, combined when they had an abuse to destroy, or a great object to accomplish. They have associated together to manufacture articles of commerce, to make canals, to construct railways, to form gas companies, to institute insurance and banking companies, and to do an immense amount of industrial work. By combining their small capitals together, they have been able to accumulate an enormous aggregate capital, and to execute the most gigantic undertakings.
The middle classes have accomplished more by the principle of co-operation than the classes who have so much greater need of it. All the joint stock companies are the result of association. The railways, the telegraphs, the banks, the mines, the manufactories, have for the most part been established and are carried on by means of the savings of the middle classes.
The working classes have only begun to employ the same principle. Yet how much might they accomplish by its means! They might co-operate in saving as well as in producing. They might, by putting their saved earnings together, become, by combination, their own masters. Within a few years past, many millions sterling have been expended in strikes for wages. A hundred millions a year are thrown away upon drink and other unnecessary articles. Here is an enormous capital. Men who expend or waste such an amount can easily become capitalists. It requires only will, energy, and self-denial. So much money spent on buildings, plant, and steam-engines, would enable them to manufacture for themselves, instead of for the benefit of individual capitalists. The steam-engine is impartial in its services. It is no respecter of persons; it will work for the benefit of the labourer as well as for the benefit of the millionaire. It will work for those who make the best use of it, and who have the greatest knowledge of its powers.
The greater number of workmen possess little capital save their labour; and, as we have already seen, many of them uselessly and wastefully spend most of their earnings, instead of saving them and becoming capitalists. By combining in large numbers for the purposes of economical working, they might easily become capitalists, and operate upon a large scale. As society is now constituted, every man is not only justified but bound in duty as a citizen, to accumulate his earnings by all fair and honourable methods, with the view of securing a position of ultimate competence and independence.
We do not say that men should save and hoard their gains for the mere sake of saving and hoarding; this would be parsimony and avarice. But we do say that all men ought to aim at accumulating a sufficiency--enough to maintain them in comfort during the helpless years that are to come--to maintain them in times of sickness and of sorrow, and in old age, which, if it does come, ought to find them with a little store of capital in hand, sufficient to secure them from dependence upon the charity of others.
Workmen are for the most part disposed to associate; but the association is not always of a healthy kind. It sometimes takes the form of Unions against masters; and displays itself in the Strikes that are so common, and usually so unfortunate. Workmen also strike against men of their own class, for the purpose of excluding them from their special calling. One of the principal objects of trades-unions is to keep up wages at the expense of the lower paid and unassociated working people. They endeavour to prevent poorer men learning their trade, and thus keep the supply of labour below the demand.[1] This system may last for a time, but it becomes ruinous in the end.
[Footnote 1: On the 31st January, 1875, a labourer in the employment of Messrs. Vickers, Sheffield, who had not served an apprenticeship, was put on to turn one of the lathes. This being contrary to the rules of the union, the men in the shop struck work. It is a usual course for men of the union to "strike" in this manner against persons of their own condition, and to exercise a force not resting in law or natural right, but merely on the will of a majority, and directly subversive of the freedom of the individual.]
It is not the want of money that prevents skilled workmen from becoming capitalists, and opening the door for the employment of labouring men who are poorer and less skilled than themselves. The work-people threw away half a million sterling during the Preston strike, after which they went back to work at the old terms. The London building trades threw away over three hundred thousand pounds during their strike; and even had they obtained the terms for which they struck, it would have taken six years to recoup them for their loss. The colliers in the Forest of Dean went back to work at the old terms after eleven weeks' play, at the loss of fifty thousand pounds. The iron-workers of Northumberland and Durham, after spending a third of the year in idleness, and losing two hundred thousand pounds in wages, went back to work at a reduction of ten per cent. The colliers and iron-workers of South Wales, during the recent strike or lock-out, were idle for four months, and, according to Lord Aberdare, lost, in wages alone, not less than three millions sterling!
Here, then, is abundance of money within the power of working-men,--money which they might utilize, but do not. Think only of a solitary million, out of the three millions sterling which they threw away during the coal strike, being devoted to the starting of collieries, or iron-mills, or manufactories, to be worked by co-operative production for the benefit of the operatives themselves. With frugal habits, says Mr. Greg, the well-conditioned workman might in ten years easily have five hundred pounds in the bank; and, combining his savings with twenty other men similarly disposed, they might have ten thousand pounds for the purpose of starting any manufacture in which they are adepts.[1]
[Footnote 1: "The annual expenditure of the working classes alone, on drink and tobacco, is not less than £60,000,000. Every year, therefore, the working classes have it in their power to become capitalists (_simply by saving wasteful and pernicious expenditure_) to an extent which would enable them to start at least 500 cotton mills, or coal mines, or iron works, _on their own account_, or to purchase at least 500,000 acres, and so set up 50,000 families each with a nice little estate of their own of ten acres, on fee simple. No one can dispute the facts. No one can deny the inference."--_Quarterly Review,_ No. 263.]
That this is not an impracticable scheme, is capable of being easily proved. The practice of co-operation has long been adopted by workpeople throughout England. A large proportion of the fishery industry has been conducted on that principle for hundreds of years. Fishermen join in building, rigging, and manning a boat; the proceeds of the fish they catch at sea is divided amongst them--so much to the boat, so much to the fishermen. The company of oyster-dredgers of Whitstable "has existed time out of mind,"[2] though it was only in 1793 that they were incorporated by Act of Parliament. The tin-miners of Cornwall have also acted on the same principle. They have mined, washed, and sold the tin, dividing the proceeds among themselves in certain proportions,--most probably from the time that the Phoenicians carried away the produce to their ports in the Mediterranean.
[Footnote 2: Reports on the Paris Universal Exhibition, 1867, vol. vi., p. 252.]
In our own time, co-operation has been practised to a considerable extent. In 1795, the Hull Anti-Mill Industrial Society was founded. The reasons for its association are explained in the petition addressed to the Mayor and Aldermen of Hull by the first members of the society. The petition begins thus: "We, the poor inhabitants of the said town, have lately experienced much trouble and sorrow in ourselves and families, on the occasion of the exorbitant price of flour; and though the price is much reduced at present, yet we judge it needful to take every precaution to preserve ourselves from the invasions of covetous and merciless men in future." They accordingly entered into a subscription to build a mill, in order to supply themselves with flour. The corporation granted their petition, and supported them by liberal donations. The mill was built, and exists to this day. It now consists of more than four thousand members, each holding a share of twenty-five shillings. The members belong principally to the labouring classes. The millers endeavoured by action at law to put down the society, but the attempt was successfully resisted. The society manufactures flour, and sells it to the members at market price, dividing the profits annually amongst the shareholders, according to the quantity consumed in each member's family. The society has proved eminently remunerative.
Many years passed before the example of the "poor inhabitants" of Hull was followed. It was only in 1847 that the co-operators of Leeds purchased a flour-mill, and in 1850 that those of Rochdale did the same; since which time they have manufactured flour for the benefit of their members. The corn-millers of Leeds attempted to undersell the Leeds Industrial Society. They soon failed, and the price of flour was permanently reduced. The Leeds mill does business amounting to more than a hundred thousand pounds yearly; its capital amounts to twenty-two thousand pounds; and it paid more than eight thousand pounds of profits and bonuses to its three thousand six hundred members in 1866, besides supplying them with flour of the best quality. The Rochdale District Co-operative Corn-mill Society has also been eminently successful. It supplies flour to consumers residing within a radius of about fifteen miles round Rochdale[1]. It also supplies flour to sixty-two co-operative societies, numbering over twelve thousand members. Its business in 1866 amounted to two hundred and twenty-four thousand pounds, and its profits to over eighteen thousand pounds.
[Footnote 1: Its history is given in the Reports above referred to, p. 269.]
The Rochdale Corn-mill grew out of the Rochdale Equitable Pioneers Society, which formed an epoch in the history of industrial co-operative institutions. The Equitable Pioneers Society was established in the year 1844, at a time when trade was in a very bad condition, and working people generally were heartless and hopeless as to their future state. Some twenty-eight or thirty men, mostly flannel weavers, met and formed themselves into a society for the purpose of economizing their hard-won earnings. It is pretty well known that working-men generally pay at least ten per cent. more for the articles they consume, than they need to do under a sounder system. Professor Fawcett estimates their loss at nearer twenty per cent. than ten per cent. At all events, these working-men wished to save this amount of profit, which before went into the pockets of the distributers of the necessaries,--in other words, into the pockets of the shopkeepers.
The weekly subscription was twopence each; and when about fifty-two calls of twopence each had been made, they found that they were able to buy a sack of oatmeal, which they distributed at cost-price amongst the members of the society. The number of members grew, and the subscriptions so increased, that the society was enabled to buy tea, sugar, and other articles, and distribute them amongst the members at cost-price. They superseded the shopkeepers, and became their own tradesmen. They insisted from the first on payments in cash. No credit was given.
The society grew. It established a store for the sale of food, firing, clothes, and other necessaries. In a few years the members set on foot the Co-operative Corn-mill. They increased the capital by the issue of one-pound shares, and began to make and sell clothes and shoes. They also sold drapery. But the principal trade consisted in the purchase and sale of provisions--butchers' meat, groceries, flour, and such-like. Notwithstanding the great distress during the period of the cotton famine, the society continued to prosper. From the first, it set apart a portion of its funds for educational purposes, and established a news-room, and a library, which now contains over six thousand volumes.
The society continued to increase until it possessed eleven branches for the sale of goods and stores in or near Rochdale, besides the original office in Toad Lane. At the end of 1866, it had 6,246 members, and a capital of £99,908. Its income for goods sold and cash received during the year was £249,122; and the gross profit £31,931.
But this was not all. Two and a half per cent. was appropriated from the net profits to support the news-rooms and library; and there are now eleven news and reading rooms at different places in or near the town where the society carries on its business; the sum devoted to this object amounting to over seven hundred pounds per annum. The members play at chess and draughts, and use the stereoscopic views, microscopes, and telescopes placed in the libraries. No special arrangements have been made to promote temperance; but the news-rooms and library exercise a powerful and beneficial influence in promoting sobriety. It has been said that the society has done more to remove drunkenness from Rochdale than all that the advocates of temperance have been able to effect.
The example of the Rochdale Pioneers has exercised a powerful influence on working-men throughout the northern counties of England. There is scarcely a town or village but has a co-operative institution of one kind or another. These societies have promoted habits of saving, of thrift, and of temperance. They have given the people an interest in money matters, and enabled them to lay out their earnings to the best advantage. They have also given the working people some knowledge of business; for the whole of their concerns are managed by committees selected at the general meetings of the members.
One of the most flourishing co-operative societies is that established at Over Darwen. The society has erected a row of handsome buildings in the centre of the town. The shops for the sale of provisions, groceries, clothing, and other necessaries, occupy the lower story. Over the shops are the library, reading rooms, and class rooms, which are open to the members and their families. The third story consists of a large public hall, which is used for lectures, concerts, and dances. There are six branches of the society established in different parts of the town. A large amount of business is done, and the profits are very considerable. These are divided amongst the members, in proportion to the purchases made by them. The profits are for the most part re-invested in joint-stock paper-mills, cotton-mills, and collieries, in the neighbourhood of Darwen. One of the most praiseworthy features of the society is the provision made for the free education of the members and their families. Two and a half per cent. of the profits are appropriated for the purpose. While inspecting the institution a few months ago, we were informed that the Science classes were so efficiently conducted, that one of the pupils had just obtained a Government Scholarship of fifty pounds a year, for three years, including free instruction at the School of Mines, Jermyn Street, London, with a free use of the laboratories during that period. There are also two other co-operative institutions in the same place; and we were informed that the working people of Darwen are, for the most part, hard-working, sober, and thrifty.
The example has also spread into Scotland and the south of England. At Northampton, a co-operative society exists for the purpose of buying and selling leather, and also for the manufacture of boots and shoes. At Padiham and other places in Lancashire, co-operative cotton-mills have been established. The Manchester and Salford Equitable Co-operative Society "combine the securities and facilities of a bank with the profits of a trade." But the business by which they mostly thrive, is by the purchase and sale of food, provisions, groceries, draperies, and other articles, with the exception of intoxicating liquors.
The sole secret of their success consists in "ready money." They give no credit. Everything is done for cash; the profit of the trade being divided amongst the members. Every business man knows that cash payment is the soundest method of conducting business. The Rochdale Pioneers having discovered the secret, have spread it amongst their class. In their "advice to members of this and other societies," they say: "Look well after money matters. Buy your goods as much as possible in the first markets; or if you have the produce of your industry to sell, contrive, if possible, to sell it in the last. Never depart from the principle of buying and selling for ready money. Beware of long reckonings." In short, the co-operative societies became tradesmen on a large scale; and, besides the pureness of the food sold, their profit consisted in the discount for cash payments, which was divided amongst the members.
Land and Building Societies constitute another form of co-operation. These are chiefly supported by the minor middle-class men, but also to a considerable extent by the skilled and thrifty working-class men. By their means portions of land are bought, and dwelling-houses are built. By means of a building society, a person who desires to possess a house enters the society as a member, and instead of paying his rent to the landlord, pays his subscriptions and interest to a committee of his friends; and in course of time, when his subscriptions are paid up, the house is purchased, and conveyed to him by the society. The building-society is thus a savings bank, where money accumulates for a certain purpose. But even those who do not purchase a house, receive a dividend and bonus on their shares, which sometimes amounts to a considerable sum.
The accumulation of property has the effect which it always has upon thrifty men; it makes them steady, sober, and diligent. It weans them from revolutionary notions, and makes them conservative. When workmen, by their industry and frugality, have secured their own independence, they will cease to regard the sight of others' well-being as a wrong inflicted on themselves; and it will no longer be possible to make political capital out of their imaginary woes.
It has been said that Freehold Land Societies, which were established for political objects, had the effect of weaning men from political reform. They were first started in Birmingham, for the purpose of enabling men to buy land, and divide it into forty-shilling freeholds, so that the owners might become electors and vote against the corn-laws. The corn-laws have been done away with; but the holders of freehold land still exist, though many of them have ceased to be politicians. "Mr. Arthur Ryland informs me," said Mr. Holyoake, in a recent paper on Building Societies, "that in Birmingham, numbers of persons under the influence of these societies have forsaken patriotism for profits. And I know both co-operators and Chartists who were loud-mouthed for social and political reform, who now care no more for it than a Whig government; and decline to attend a public meeting on a fine night, while they would crawl like the serpent in Eden, through a gutter in a storm, after a good security. They have tasted land, and the gravel has got into their souls."
"Yet to many others," he adds, "these societies have taught a healthy frugality they never else would have known; and enabled many an industrious son to take to his home his poor old father--who expected and dreaded to die in the workhouse--and set him down to smoke his pipe in the sunshine in the garden, of which the land and the house belonged to his child."[1]
[Footnote 1: Paper read at York Meeting of the National Society for Promoting Social Science, 26th Sept. 1864.]
The Leeds Permanent Building Society, which has furnished healthy tenements for about two hundred families, sets forth the following recommendations of the influence which it has exercised amongst the working classes of that town: "It is truly cheering to hear the members themselves, at occasional meetings tell how, from small savings hitherto deemed too little for active application, they began to invest in the society: then to build or buy; then to advance in life, and come to competence, from extending their savings in this manner.... The provident habits and knowledge thus induced are most beneficial to the members. And the result is, that the careless become thoughtful, and, on saving, become orderly, respectable, propertied, and in every way better citizens, neighbours, and more worthy and comfortable. The employment of money in this useful direction encourages trade, advances prices and wages, comforts the working classes, and at the same time provides the means of home enjoyments, without which such advances would be comparatively useless, and certainly uncertain."[1]
[Footnote 1: Letter of Mr. John Holmes, in Reports of Paris Universal Exhibition, 1867 vol. vi., p. 240.]
There are also exceptional towns and villages in Lancashire where large sums of money have been saved by the operatives for buying or building comfortable cottage dwellings. Last year Padiham saved about fifteen thousand pounds for this purpose, although its population is only about 8,000. Burnley has also been very successful. The Building Society there has 6,600 investors, who saved last year £160,000 or an average of twenty-four pounds for each investor. The members consist principally of mill operatives, miners, mechanics, engineers, carpenters, stonemasons, and labourers. They also include women, both married and unmarried. Our informant states that "great numbers of the working classes have purchased houses in which to live. They have likewise bought houses as a means of investment. The building society has assisted in hundreds of these cases, by advancing money on mortgage,--such mortgages being repaid by easy instalments."
Building Societies are, on the whole, among the most excellent methods of illustrating the advantages of Thrift. They induce men to save money for the purpose of buying their own homes; in which, so long as they live, they possess the best of all securities.