FABIAN TRACT No. zo6 

The Co-opera~or 


•

ID Politics 


BY 

ALFRED BARNES, M.P. 

PuBLISHED AND SoLD BY 

THE FABIAN SOCIETY 

By arrangement with the Trustees of the Sara 
Hall Trust, in commemordtion of the life and 
work of Robert Owen 

PRICE TWOPENCE 

LONDO)l' : 

THE FABIAN SOCIETY, 25, TOTHILL STREET, WESTMINSTER, S.W. I . 

MARCH, 1923. 


The Co-operator in Politics. 

BY A. BARNES, M.P. 

T
T
HE entrance of the Co-operative Movement into politics in 
1917, during the war period, and at a time when the Movement 
was suffering in an aggravated form from the influence 
of private vested interests entrenched in the Houses of Parliament 
and the various government departments, has obscured the deeperand more fundament<;~.! reasons for the development of a politicalaspect of co-operation. War effects pitched co-operators into the 
political arena under abnormal conditions. Consequently, it is 
not until the affairs of the nation commence to flow once more 
through the normal chaP.nels prevalent in peace times that the 
advantages or disadvantages of political action by co-operators 
can be made apparent. Co-operators have now to justify their 
entrance into politics, define their attitude to the political systemof the country, and determine their relations to the other parties. 

Co-operation and Trade Unionism. 

No movement of democracy has accomplished so much, and 
yet is so little known, as the Co-operative Movement. The sister 
movement to trade unionism, co-operation has progressed in 
relative obscurity compared to the trade union movement. This 
may be accounted for by the fact that whereas trade unionism 
is in constant and open conflict with capitalism in its struggle to 
maintain the standard of living of the workers, and in the use of 
the strike weapon brings itself prominently before the notice of the 
public on account of the inconvenience it causes, the Co-operativeMovement is engaged in the comparatively passive process of trade 
penetration, thereby meeting capitalism on its own ground, with 
its own weapon and according to its own practices. 

The struggle between co-operation and capitalism is in the 
open market and across the shop counter, and as the British public 
is soaked in the theory enunciated by capitalist economists and 
served up daily by the " millionaires' press " that the rivalry of 
commercial groups is to their advantage as consumers, this form 
of conflict is accepted as a matter of course ; and, in addition, 
having no dramatic setting, it is not generally appreciated that the 
" trade " battle between co-operation and capitalism is one of 
elimination and substitution, the outcome of which will revolutionize 
the economic, political, and social basis of society itself. 

An industrial dispute can be seen, felt, and experienced by all. 
Therefore, it brings into play all the primitive passions which a 
B 


4 

fight produces in men. The desire to win is transformed into a 
class struggle, the incentive on both sides being deep rooted in the 
past. The bitter resistance often offered by the men to any loweringof their standard of living arises from the age-long " struggle for 
existence," for there is little doubt that if there had been no trade 
unions, capitali m would have crushed the workers back into 
slavery long before now. Evidence of this may be seen to-day in 
the slum areas of our industrial cities, where a section of the community 
live under such awful and hopeless conditions that they 
have lost hope in the future, and con equently have not the spirit 
to organize. 

The extent to which the " possessing class" will go to hold 
what they have, is the outcome of the desire to own, dominate, 
and control, which has characterized leadership hitherto in the 
development of human society. Thus it is, that the industrial 
struggle of democracy ha attracted a good deal of attention, and 
trade unionism and the Labour Party, its political aspect, have been 
talked, thought, and theorizeu about to such an extent that to-day 
there is in the minds of trade unionists and the workers generally 
a fairly clear idea of the purpo e of these two movements. 

Co-operation is a newer movement than trade unionism, not 
only in history, but in instincts. It rests less upon the primary 
motive of self-preservation and more upon the direction of intelligence 
for its succes . It is constructive and not destructive in its 
methods. In trade, it accepts the commercial test of capitalism, 
viz., price, quality, and service, an l has held its own especially in 
the first two. In the" trade" battle, it is the consumer who determines 
the is u . The spender buys to-day where is obtained the 
greates~ value in price, quality, and service, and the trader who 
cannot hold his own in any, or in all three of these, passes out of 
existence. 

Because the conflict between co-operation and capitalism is 
obscured in ordinary day-by-clay commercial transactions, cooperation 
has not attracted the notice of publicists to the same 
extent as the Trade Union Movement and the Labour Party, with 
the result that there is less general kT).owledge abroad of co-operation 
than there is of industrial and political labour, in consequence of 
which th social importance of the Co-operative Movement, its 
reactions on the political sy tC'm of the country, and its effect on 
the economic life of the worker' are not arpreciatcd to any degree, 
either by its own member or the general public. 

The object of this pamphlet i to ndeavour to explain the 
d velopment of the political aspect of co-operation and to deal 
with the problems it involv s, both to co-operator themselves and 
the existing political parties. 


5 


The Early Pioneers. 

The Rochdale Pioneers were social reformers of the Chartist 
and Christian Socialist type. They commenced co-operative 
trading with the definite and avowed object of creating a new 
system of society, viz., The Co-operative Commonwealth. Theysought to accomplish their ideal through a voluntary association 
of consumers for trade purposes, realizing that everything else 
follows sales. Get the trade, and the ownership of land, capital, 
and the machines of production is but the natural sequence. 

The devic~ of the dividend enabled them to abolish profit as 
we know it under capitalism and gave them the opportunity of 
returning to the purchaser the difference between the cost of production 
and the sale price, and in such a way that it was transformed 
into an inducement for greater loyalty on the part of the housewife 
to the stores. 

The pioneers desired not only the establishment of an industrial 
democracy, but they wished for an educated, political and social 
democracy as well. In the objects of their society, after detailing 
plans for the establishment of a store for the sale of provisions and 
clothing, they proceeded to express their determination to providehouses for their members, to commence manufacturing .their own 
goods as soon as possible, to acquire estates of land upon which 
to settle those of their members who might be badly remunerated 
or unemployed and to promote sobriety, by opening a temperance 
hotel. They conclude by stating-" That as soon as practicable 
this society shall proceed to arrange the powers of production, 
distribution, education and government." This latter clause leaves 
no doubt of the vision in the minds of the pioneers and foreshadowed, 
if their spirit and intentions lived, a subsequent political development 
in the Co-operative Movement, in the event of the tradingoperations of co-operators being successful. 

Trade Growth. 

This new commonwealth vision of the pioneers has persisted 
and is avowedly the objective of the Movement to-clay, and, in 
addition, the trading operations of co-operators have spread to 
such an extent that its ramifications are now entwined with everyindustry of importance in the country. 

Co-operators have their retail stores in almost all the towns 
and villages in Great Britain. They touch the lives of four million 
families by providing them with commodities or service in some 
shape or form. Besides being distributors of practically everydescription of food, fuel> furnishing and clothing through their 
retail societies, co-operators, through their federal institution, the 


6 


Co-operative Wholesale Society, have b~come their own merchants, 
wholesalers, manufacturers, and producers of a vast range of 
commodities. They grow their own tea on their own estates; 
blend and pack it in their own warehouses. They are probably the 
largest millers in the country. They own and control the onlyeffective soap production, apart from the Lever Combine. Theyhave huge works wherein they produce their own jams, preserve 
condiments, biscuits, margarine, and other food products, sold 
exclusively in their own shops. They have great garment and boot 
factories, textile mills and other works manufacturing a large range 
of goods. They own their own coal mine and far'ms, and have 
depots and buying agencies in all parts of the world for the importation 
of foodstuffs from abroad. In addition, they are shippers,
bankers, and have their insurance and agricultural departments. 

Co-operators own and control about roo millions of pounds of 
capital ; their trade turnover i roughly 300 million poundsannually; they return to their members in interest on share 
capital and in dividend on purchases a sum approximating to 
17 million pounds a year, which, but for the Co-operative Movement, 
would have gone to swell the incomes of the idle shareholders 
of capitalist companies. 

The 4~ million co-operators to-day, despite the fact that th~ 
majority of them are unconscious of their purpose and power,
have nevertheless succeeded in building up a vast commercial 
organization on a collective basis, democratically controlled, and 
retaining the fundamental principle and ideals upon which the 
pioneers founded the Movement. 

Politics and Trade. 

It is impossible to separate business from politics. Before the 
war the influence of commercial interests on political issues was 
somewhat obscured by the manipulations of the professionalpoliticians of the Liberal and Tory parties, aided and abetted byan enslaved press. The war has changed this somewhat. It has 
burned down the painted transformation scenery of the pre-warpolitical stage which was forever br-ing shifted by wily capitalist 
governments to distract the attention of the people from fundamental 
things. 

War conditions were such that " the hidden hand of business 
in politics" was forced into the open. The control of the mines, 
railways, food, agriculture, transport, munitions, production, &c., 
entailed agreements and guarantees, which had to be sanctioned 
by Parliament. In the arrangements made one could easily discern 
that the government's policy favoured the owner as against the 
workman, the manufacturer, wholesaler, and shopkeeper, as against 
the consumer. So apparent has this become that it has led to the 


7 

phenomenal rise of the Labour Party in power and influence to such an 
extent that it has emerged from the recent General Election 142 strong,
and is now His Majesty's Official Opposition, and therefore the onlyalternative administration to the present Conservative Government. 

The great issue of war and peace itself during the past eight 
years has turned the commerce of the world upside down. The 
politicians at Versailles, instead of making a peace calculated to 
restore confidence in the world's markets, thus stimulating trade, 
made a peace which has brought commercial chaos and financial 
ruin to this country with the concomitant evils of unemployment,
destitution, low wages, and restriction in social reform. In consequence, 
the trading interests of Britain and France are in opposition 
and we. can see the reaction of this on the international, political, 
and economic conditions of Europe.

Federations of employers, trusts, banking and other tradingcorporations have their political director or directors, either in the 
House of Commons dr Lords. These federations of employers, 
trusts, multiple firms and trading corporatwns are further linked 
together in the Federation of British Industries and constitute the 
most powerful and conscious economic and political force in the 
country. The Federation of British Tndustries not only interests 
itself in politics, it largely dominates the Government. 

The following analysis of the commercial and professionalconnections of members in Parliament reveals the secret trade 
influences behind Party Government to-day. 

House of Commons, 1923. 

No. of Co.'s 

No. of 

whose Capital 

Total Capital.

Comparties. 

is known. 

Amusements 
Banking 
.. .. .. 
.. .. 7 
19 
Brewing, Distiillng, &c. .. 16 
Buildmg, Timber .. 
Chemicals .. .. 
.. 
.. 11 
18 
Coal, Iron, Steel .. .. 34 
Distribution .. 2-! 

£ 
12 

6 

1,270,90;)
21 

18 

162,791.54927 

22 

44,260,01610 

1,255,88426 15 
~ 

43.978,046 
63 H 

100,474,861 
35 

9 

5,23!,97754 

32 

59,457,91372 

50 

33,111,790 

·a

17 

8,596,10439 

35 

28,09i!,35911 

8 

11,420,135 
48 

38 

213,489,202 

io 

4,iiH,279 
11 
17 

13 

:; 

2,640,575 
33 

30 

89,792,666 
17 

10 

4,316,541 
33 

839,433,834 
68 

33 

188,801,597 
16 

29 

4,228,394 
36 

14 

7,613.380 
17 

13 

39,045,992 
16 

3 

37,676,19515 

------,-


No. of 
Members 
concerned. 

I~DUSTRY. 

Engineering, Shipbuilding & Met~ls 

52 

Financ~. Land and Investment .. 

53 

Farming .. .. .. 

18 

Food .. .. .. 

18 

Gas, Water, Electric .. .. 

19 

Hotels, Catering .. .. 

6 

Insurance .. .. .. 

41 

Landowners .. 

29

Mirting (other than coal·)· .. 

9 

M.isrellaneous . . . . .. 

9

Newspapers .. .. . . 

18

Petroleum · .. .. 

14

Printing, Pape~· .. .. 

12 

Railways .. .. .. 

24

Shipping .. .. .. 

30 

Tea, Coffee, Rubber .. .. 

9

Textiles, Clothing .. .. 

28 

Tobacco .. 

1 

Transport (other than rail or ship) 

7 

Total .. .. 

"255 

I 
£1,930,968,19-i 
"These total8 allow for the duplication in directorates in more than one group. 

713 

451 


House of Lords, 1923. 


I NOUSTHY. 

Amusement.• 

Bt>nklnp:. . . . 

g~~~~i~~lsDi•hllit.'~ 

Coal, Iron and Steel 
Distribution . . . . 
1-:np:incering ami Shipbuildinp:
l' luaoco, Land, and Investment .. 
l•'ood . . . . . . 


Uns, \Vnter, n.nd Rlect 1·irity

Hotels, Catoa·inp: .. 
Jnsumnce 

Lnnuowners . . . . 
Minanp: (other Llmn coni) .. 
:Newspapers


l'e(,roleum .. 
l'rlntlng, P!Lpor .. 
.RI\IIwnys 
Shipplnp:.. . . 
Tea, Coll'co, H ullb01· 
TeleJ;Craph .. 
Textiles. Clothlnl( . . . . 
Trnn•port (other tlmn mll aud ships) 


~o. of Membersronccrned. 

1:! 

66 
12 
15 
27 
1()
49 
70 
0 
13 
10 
106 
242 
20 
6 
15 
6 
64 
26 
14 
8 
16 
14 

414 

' No. of 
Companies. 

13 
42 
10 
22 
51 
18 
70 
114 
7 
17 
12 
69 

56 
11 
32 
6 
78 
54 
20 
11 
18 
15 
748 

.:-IO'l' L·:.-Till' lLbove tables are tuken from "L11bour and Capital in Parliament." 

Even the small shopkeeper in a back street, through his local 
chamber of commerce and rat payers' a sociation, is active in 
local politics and xerts his influence on the side of reduced rates. 
v rsus everything else, and strives to crowd the local council chambet· 
with tracl sm n, j rry builders, estate agents, publicans, auctioneers 
ancl others whose administration will not be too severe in the 
application of bye-laws and other regulations passed to control 
traders in the public interests. Trade Unioni ts, in their struggles 
with the 'mploycrs, have di covered this connection between 
politics ancl busin s and have, therefore, created the Labour Party.

All thi · demonstrates the obvious fact of the interdependenceand interaction of trade and politic , and the Co-op rative Movement 
can no more ignor this an llive, than it could exist by sellinggoods at a higher price than, and of inf rior quality to, those of its 
comp titors. If the private trader from the " trust " down to the 
small shopk eper has di cover cl the vital connection between 
business and politics, surely th Co-op rative Movement, which 
trad s for th ideal object of creating an inclu trial, political, and 
social l mocracy, annot afford to ignore it. 

Political Influences. 

Because the decision of the Co-operative Movement to establish 
it..; own political party wa mad in 1917 during the most difficult 
peri<Kl of the war, and at. a tim when th Co-operative Movement 
wa , s ething with discontent owing to the treatment it was receiving 
in matt rs of food control, military tribunals, representation on 
govemm nt committee and taxation, it i g n rally assumed that 
co-op<'rative politics ar a war-time clev lopment and represent a 


9 


revolt against forces from without during an abnormal period in 
co-operative history rather than the consummation of a natural 
growth ftom within. 

This view is erroneous. The war only precipitated the birth 
of the Co-operative Party. For many years before the war, the 
knowledge that co-operative trading alone would not realize the 
Co-operative Commonwealth without the help of trade unionism 
and supplemented by political action was steadily gaining ground 
in the minds of leading co-operators. This may be accounted for 
by the fact that co-operation is a social reform movement. It has 
attracted to itself on its representative side voluntary workers who, 
whilst forwarding co-operative trading, have also been intensely 
interested in the political issues of their day. This has reacted in 
a variety of ways on the Movement, for individuals, if they ·are 
political enthusiasts, cannot prevent their politics influencing their 
other activities. Although this does not apply with equal force to 
the permanent officials of the Co-operative Movement, nevertheless, 
there are a number of these, who, through working for a democratic 
institution, have been brought into more intimate contact with the 
inequalities of our social system than they otherwise would and, 
consequently, have become more receptive to the aspirations of 
democracy than the average business man. 

The Rochdale Pioneers themselves, whilst excluding politics 
from their midst, proceeded to emphasize to their members the 
importance of such questions as housing, temperance reform, 
education, the land, and government. They may have thought the 
reforms they desired on these matters could be obtained throughvoluntary trading, but after 78 years of practical experience, we 
find that, although the objective is the same, the methods must be 
different. There is no co-operator of any standing to-day who 
does not recognize that housing, temperance reform, education, 
land nationalization, and administrative government are politicalproblems, to be settled on the floor of the House of Commons, and 
if co-operators desire to influence legislation on these and other 
matters, then they cannot exclude politics from their deliberations. 

A survey of the history of co-operation shows clearly that 

the Movement has always been influenced and affected by political

issues and administration, and the creation of the Co-operative

Party and the disturbance which it has caused are not because it 

represents a sudden and complete departure from principle and 

practice, but, on the contrary, indicate that the growth of the political

aspect of co-operation has now reached such dimensions that adjust


ments are necessary in the political system of the country to meet it. 

Political Developments. 

. The Pioneer Co-operators were to all intents and purposes ~ 
1llegal combination when they first commenced to trade, and 1t 
took many years of political agitation and dogged courage to extract 


10 

from Parliament the legislation embodied in the Friendly Societies 
Acts, which gave them the necessary legal status and safeguards to 
enable them .to live and develop. 

Each stage of growth has necessitated fresh legislation and in 
the nature of political things, although co-operation has found 
friends in all parties in the Houses of Parliament, these friends 
have been few in numbers, and small in influence, c.ompared to the 
opponents of co-operation. Consequently, delays and bitter disappointments 
have been experienced, which could not fail to react 
in time upon co-operative thought, especially in view of the fact 
that co-operative leaders are more often than not students of 
industrial and political history. 

The legal position in which the early Co-operators found 
themselves may be judged from the following extract from George 
Jacob Holyoake's book on the" History of the Rochdale Pioneers": 

" When the Rochdale Society began and for many 

years subsequently such associations were not recognized

by law. The members had no defined rights, and were under 

unlimited responsibility: yet they were incompetent to deal 

with outsiders or even with themselves. Indeed, the cash 

box might disappear with impunity. The Society could not 

hold land above a small quantity: members could only hold 

a very limited sum in the funds even after the law did begin 

to befriend them : nor could they devote their savings to 

self education. Indeed, it would take pages to explain all 

the legal disabilities then existing." 

With the growth of the movement, representations to Parliament 
became so frequent that in 1892 it was found necessary to 
establish a Parliamentary Committee, whose sole function was to 
watch and promote legislation according to co-operative interests 
and ideals. It is not generally appreciated that in each session of 
Parliament a mass of legislation, affecting industry, commerce, and 
trade in a variety of ways, is dealt with. It is not noticed bythe public because these matters, as a rule, are not deemed to be 
of sufficient importance to be reported in the press. Therefore, 
a great democratic trading movement, like co-operation, would 
suffer irreparable harm if it did not maintain a specialized vigilance 
in this direction. 

Any legislation affecting foodstuffs, whether it be free trade, 
tariff reform, taxes, prices, or regulations governing the export or 
importation of food supplies, adulteration, preparation of foods, 
or conditions controlling sales, &c., cannot be enacted without 
co-operators being vitally interested, both from the social and 
financial aspect. 

Trades board rates, factory and shop legislation, railway rates, 
road transport, shipping freights, conditions governing British 


II 

traders abroad, colonial and foreign concessions, coal, electricity, 
gas, water, and petrol supplies, canal and port administration, and 
many other important aspects of commerce and industry, are continually 
before Parliament for adjustments, and in all these questions 
co-operators usually have their own distinct point of view 
and interest as organized consumers, apart from the general private 
traders. 

The range of subjects which the Parliamentary Committee of 
the Co-operative Union have to deal with may be judged from a 
review of some of the items reported by the Committee to the 
Annual Congress of Co-operators from rgo3 onwards. They cover 
a vast range of subjects, such as : The Com Tax ; Sugar Duties : 
Importation of Canadian Cattle ; Education ; Corruption in Trade ; 
Municipal Corporations Amendment Bill; Truck Acts; Land 
Registration; Medicated Wines; Old Age Pensions; Free Trade; 
Coal Tax; Patent Medicines; Stamp Duties; Sale of Poisons ; 
Sale of Butter Bills ; Trade Marks ; Canal Traffic ; Easement of 
Lights and False Statement Bills ; The Income Tax Menace ; 
various Amendments to the Industrial and Provident Societies Acts; 
Sale of Margarine and the Pharmacy Bills ; Sweated Industries ; 
The Companies and Societies Bills ; Employers Liability Insurance ; 
Small Holdings; Women's Sufirage; Home Work Regulation; 
Hours of Work in Bakehouses; Miners' Eight-Hour Day; LicencingBill; Argentine Cattle ; Professional Accountants Bill; ShopActs ; Report of Poor Law Commission ; Milk and Dairies Bill ; 
Health Insurance; Short Weight; Food and Drugs Acts; and 
so on. 

As early as 1897 at the Perth Congress, Mr. William Maxwell, 
in his presidential address, lifted the question of co-operativepolitical action into public discussion among co-operators, byboldly declaring that he could not see the attainment of the Cooperative 
Commonwealth unless their trading activities were 
supplemented by representation in Parliament. At the time, Mr. 
1\Iaxwell was a director of the Scottish Co-operative Wholesale 
Society and Chairman of the Joint Parliamentary Committee ot 
the Co-operative Union. Therefore, his opinion carried some 
weight. He had that somewhat rare quality of retaining a vigorous 
and progress1ve outlook on democratic affairs, whilst holding the 
most responsible positions the Movement would offer on its tradingside. Therefore it is not surprising that under the intellectual 
stimulus of his forceful personality the Perth Congress passed 
unanimously a resolution in favour of the principle of direct representation 
of co-operators in Parliament. 

From then onwards the question of political action has been 
continually before the Co-operative Movement and it has been 
frequently discussed at fts National Congress and at Sectional 


IZ 

and District Conferences, sometimes on the question of the direct 
representation of co-operators in Parliament and on other occasions 
upon the desirability of affiliation or joint action with the Trade 
Union Movement and The Labour Party; interest in the matter 
ebbing and flowing according to the circumstances prevailing at 
the time. By I9I3-Lt the growth of the idea witbin the Movement 
had reached snch dimensions that the more progressive societies 

•vere beginning to take individual action in their localities, in conjunction 
with the local Labour Parties and Trade:: Councils. Other 
societies, probably representing about one-thircl of the Movemrnt, 
were quite ripe for some further development of co-operative 
political activities. 
Bnt, whilst thP opinion in favour of organizin~?; the politicalinfluPnrr-of Co-o; :eration on rnon~ definite line-, was gaining ground, 
there wa>' cons:derable diwr"itv of •:iew" a~. to the nwth0.-Cls to b·· 
pursur;>r1. Some f<l vonrefl <lffiliation with the Labow· Partv, others 
the direct representation of c:o-opc-ratnrs indepmd.mt of tlte. existingvartie">, 
whilc;t a ~:na.ll section advocated the financing of ro-oprrative 
r;andiclates !:hrough illl political parties. The experirncewhich co-operators gained during the war not oniy C\~nvinced 
the majority of the doubtful and waverers as to the necessity of 
some form of representation in Parliament, but it quickly settled 
the controversy as to the methods to be adopted. To understand 
clearly the present position of co-operative politics and intelligently 
to anticipate the lines of its future development, a careful analysis 
of the effect of the past eight years of >var and post-war conditions 
on the Movement is necessary.* 

State Control. 

The War marked the passing of rgth century thought. It has 
smashed up the traditions and beliefs of the present generation and 
has left nations, and movements within nations, floundering without 
any clear ideas of their relations to post-war conditions. The 
Co-operative Movement has suffered severely with the rest of the 
democratic movements in this country. During the War it was 
repeatedly out-manreuvred by capitalist interests and buffeted 
about by the ignorance and prejudice which existed towards it in 
government circles. It was helpless to defend itself, for, unlike 
the trade unions, it could neither compel public attention to its 
grievances through the threat of. a strike, nor voice them throughrepresentatives on the floor of the House of Commons. 

The War necessitated changes of a far-reaching character in 
the trading practices of the country. Largely owing to the submarine 
menace the Government was compelled to set up a vast 

*"The Political Aspect of Co-operation." Alfred Barnes. 


13 


buying and administrative machinery, to secure adequate suppliesfor the community. Despite all its efforts, supplies, especially in 
ioodstuffs, became so limited that to prevent social disorder an 
elaborate and expensive system of control and rationing was introduced 
to ensure some measure of equitable distribution to the 
consumers. Manufacturers, wholesalers and retailers became mere 
producing, factoring, distributing and recording agencies of the 
various Government Departments. Property was commandeered, 
supplies allocated, quality of production determined, and prices 
were fixed by Government regulations. It was one of those rare 
-occasions in history when the ordered development of economic 
affairs was rudely interrupted, and in the stress of an overwhelming 
<:risis, the mind of the nation was freed for great chang s, either 
for good or ill. 

If this new machinery of the state had been created, directed, 
or even influenced to any extent by a Government imbued with 
democratic ideals, an immense step forward by this generationtowards the Co-operative Commonwealth could have been made. 
Instead, it was used to bolster up capitalism and prepare the wayfor the further economic enslavement and exploitation of the people.
Government commissions became the preserves of vested i..nterests, 
and state departments the instruments of the profiteer. The policy 
of the Government was to maintain the structure of private trade 
and, to ensure this, the new buying and control departments were 
staffed in the key positions by nominees of the big trading corporations 
and interests in the country. 

Despite all this, some really magnificent achievements were 
accomplished, and valuable experiments made from a collective 
standpoint, this emanating largely from the Civil Service Section 
of the staff, and from the service of that type of individual that 
rises above personal and class motives in times of communal crises. 
But capitalism in the main frustrates the natural desire for service 
in the individual, with the result that eventually the settled policyof the Government triumphed, making State Control a huge, cumbersome, 
costly bureaucracy, revolting in its incidence the inherent 
independence of British character, which has a rooted objection to 
undue interference from the authorities. Thus decontrol was 
obtained with little protest, its discontinuance to the workers and 
-consumers being as disastrous a· its operations were immoral. 

Co-operation in War Time. 

Democracy follows its pioneers less from conviction than 
through necessity. Seventy years of co-operative trading had onlypartially convinced co-operators of the inevitability of co-operative 
political action, whilst in less than three years of war it became 
an accomplished fact. 


At the outbreak of hostilities in rgr4, " Big Business," takingadvantage of the panic prevailing among the purchasing public, 
reaped a rich harvest by advancing in price their pre-war stock, 
whereas the Co-operative Movement maintained pre-war pricesuntil its pre-war stocks were exhausted. Because of this public-
spirited action of the Co-operative Movement, there was a boom 
in co-operative membership and trade. When control was in-
stituted-prior to complete rationing-the Government introduced 
what was known as the " datum period " for the allocation of 
supplies to traders. This meant that supplies were based on a 
previous period of sales, which ignored the increase of members 
in the Co-operative Movement. This method of allocation caused 
a more acute shortage in co-operative shops than generally prevailed. 
Consequently, considerable dissatisfaction arose among co-operators, 
many of whom were compelled to go elsewhere for their supplies. 

The average co-operator, not being versed in what was going 
on behind the scenes of State control, was not in the position to 
place the blame upon the right shoulders. Therefore the effect of 
these conditions was to weaken their faith and loyalty in their 
stores. This doubt in their minds has remained, and providesfruitful soil for stunts and panics of all descriptions as to the stabilityof co-operative finance during these difficult times of trade slump. 

In addition to the unequal incidence of food control, the 
Government brought co-operative societies within the scope of the 
Excess Profits Tax, thus applying a principle of taxation to cooperators 
contrary to that which they applied to other citizens, and, 
by so doing, destroyed a position that co-operators had maintainecl 
from their pioneer days. 

When the Military Tribunals were established, co-operators 
more often than not fow1d them packed with their trading competitors 
and many biased decisions were given against co-operative 
employees' claims. It is no exaggeration to say that representation 
upon, or in, all these Commissions, Departments, and Tribunals, 
whose authority emanated from the Government or Local Authorities, 
became of vital importance to the whole of the Co-operativeMovement, with the result that, at the Swansea Congress in rgr7,
there was an overwhelming opinion: in favour of taking direct 
political action to safeguard co-operative interests and to presentthe Movement's point of view on public administrative bodies. 

The Swansea Congress. 

The Resolution upon which Co-operators made their momentous 
decision to form their own political party was sent in from no less 
than 104 retail societies and received the support of the Joint Parliamentary 
Committee. 


I5 

RESOLUTION. 

(r) " That in view of the persistent attacks and misrepresentations 
made by the opponents of the Co-operativeMovement in Parliament, and on local administrative bodies, 
this Congress is of opinion that the time has arrived when 
co-operators should secure direct representation in Parliament 
and on all local administrative bodies. 
(2) " It therefor~ calls upon the Central Boarcl of the 
Co-operative Union to take such steps as may be necessary 
to put into operation the terms of the above resolution." 
It was carried by the overwhelming majority of nearly ro to I, 
the actual voting being--1,979 for; zor against. The absence of 
any real effective opposition may be gauged from the fact that an 
amendment, aiming at delay, moved by the C.W.S. received very · 
little support, and the resolution was carried by Congress with the 
full knowledge that steps would be taken immediately by the 
Co-operative Union to create a political party for co-operators.
At a Special Emergency Conference, held in October, 1917, and at 
subsequent Annual Congresses, the constitution and policy of the 
Co-operative Party have been adjusted from time to time, and it 
may now be stated that co-operators have a National Party and/
political machinery in being, capable of securing the return of 
co-operative representatives to Parliament and Local Authorities. 

The decision of the Swansea Congress is indicative of a new 
phase in the development of co-operation. Previously, co-operators, 
whilst professing the Co-operative Commonwealth, and all that it 
implied, to be their ideal, had nevertheless limited themselves to 
the specialized function of organizing the consumers' democracy 
upon a trading basis only. Their attitude towards the democracyof producers (trade unions) and the political democracy (theLabour Party) had been friendly but neutral. Obviously this could 
not continue indefinitely, for neither the Co-operative Movement, 
the Trade Union Movement, nor the Labour Party is in the position 
to achieve the Co-operative or Sotialist Commonwealth singly. 
~1\.ny undue preponderance of power exercised by any one of these 
1s likely to lead to conflict. Therefore, the decision of co-operators 
for independent political action in 1917, represented, not only the 
revolt against political oppression during the war, but it marked 
the_ transition of co-operative thought from its previous circumscnbed 
sphere on to a plane of universal application, therebybringing it more into line with the growing power of trade unionism 
as expressed through the Labour Party. 

Problems of a New Party. . 
Having decided for independent political action, co-operators 
were immediately faced with the difficulties all new parties have to 


r6 


<:onfront in Great Britain where conditions do not favour a number 
of political groups. They have had to translate the principles of 
their movement into a political programme. They have or will 
have to think out the co-operative attitude to all political issues, 
and determine their relations with other political parties, for there 
is either room for a new party or they must become part of, or all:-,: 
themselves with, one or other of the existing parties. Fortunatelyco-operators haYe the experience of the Labour Party to guide them 
to a decision on many of these matters, for the Labour Party is 
the outcome of a development from causes within and without 
the Trade Union Movement, very similar in character to that which 
has led to the formation of the Co-operative Party. 

Finally, only experience can prove what form the political 
appeal of co-operation should take to gain sufficient support from 
the electorate to return co-operative representatives in any appreciable 
number to our legislative bodies. It is too early yet to state 
with certainty the future path of the Co-operative Party, but there 
is nevertheless much evidence of tendencies already in existence 
to provide reasonable ground for deduction. 

Political Policy. 

Co-operators have had little difficulty in drafting a political 
programme to conform to the principles of co-operation. The acid 
test of politics to-day is the individual versus the co-operativeownership of land and the processes of production, distribution, 
and exchange. 

On the main political issues, e.g., the ownership and control of 
mines, railways, waterways, transport services and similar matters, 
the Co-operative Party supports national or local ownership and 
control according to whether the service is national or local in 
character. 

In international affairs it stands for a real and effective League 
of Nations to prevent wars. 

It stands for equality of opportunity in education and the 
democratization of state services, civil, commercial, and diplomatic. 

It is against tariff barriers and favours the abolition of indirect 
taxation on foodstuffs. 

It recognizes the right of the individual to live and therefore 
supports the principle of " work or maintenance " for the unemployed. 


Co-operators could do no other than thus define their politicalpolicy for their movement is an association of consnmers whosr 
motto i "Each for All and All for Each," and who own in common 
farms, mines, ships, warehouses, factories, mills, shops, plant, 


I"'

I 

machinery, rolling stock, &c., and state and municipal ownership 
and control are but an extension of what co-operators alreadypractise. 

Cornparisons. 

But whilst the programme of the Co-operative Party conforms 
to the principles of co-operation, all co-operators do not supportthe Co-operative Party. The Co-operative Party is to-day where 
the Labour Party was 20 years ago. Then men as producers had felt 
the need for association and had joined trade unions with the 
limited desire to improve the wages and working conditions of their 
trade. Beyond this desire to increase wages and reduce hours the 
average trade unionist was only vaguely ~onscious of the reactions 
-on society at large which these growing combinations of producers 
were having. But not so a majority of the leaders and delegatesof the Trade Union Movement; hence the formation of the Labour 
Party. Yet whilst it was possible in 1900 to create the Labour 
Party, it has taken 20 years of steady and continuous propaganda 
to educate and widen the outlook of the rank and file of trade 
unionists to vote "for it and to see the desirability, if any permanentimprovement is to take place in their conditions, of organizing 
their political a well as their industrial power, and even to-day,
although sufficient support is given to make it one of the great-parties of the State, trade w1ionists do not vote as solidly as theystrike, or the Labour Party would have formed the Government 
<Jf the country ere now. 

The same may be said of the Co-operative Party. Sufficient 
knowledge and opinion exist in the Co-operative Movement to-day 
to create and maintain the Co-operative Party, but much education 
and propaganda will be necessary before the great mass of co-operators 
realize the necessity of advancing their interests, as organized 
£onsumers, through political as well as through trading association. 
In the meantime, although the Co-operative Party has made considerable 
progress, there is a good deal of confusion of thought and 
opposition to its existence among co-operators. Whilst this is 
natural, it causes difficulties and accounts for the variety of policy 
among co-operative societies at this initial stage of development. 

The majority of societies are affiliated to the Co-operativeParty. About so have directly affiliated with the Labour Party, 
some of these also retaining membership with the Co-operativeParty. The rest have refrained from taking any political action. 

Local Autonomy. 

To understand the reason for the divergence in policy among 
societies, it should be kept in mind that each Co-operative Society 
is autonomous. Therefore, its action is determined more by opinion 


18 


among its members, which varies according to the locality in which 
the society operates, than by national considerations. Decisions 
of the Co-operative Congress are not binding on a retail societyuntil they are confirmed by the membership of that society. Therefore, 
whilst the decision of the Swansea Congress was a correct 
indit.:ation of national experience in 1917, in its reference back for 
individual endorsement, all kinds of local influences have operated 
to create difficulties and retard progress. Co-operators, prior to 
the war, had divided their support mainly between the Liberal 
and Conservative Parties, with the exception of a district here 
and there which had already become converted to Labour. Liberal 
opinion undoubtedly predominated and many prominent and 
earnest co-operators were actively associated with that party.
It is not easy for individuals to throw over their political beliefs, 
and it is not possible for movements to stand still in deference to 
their wishes. Conflict, therefore, is bound to arise and the questionwhich the Movement now has to answer is whether the desire 
among co-operators for the Co-operative Party to live is greater 
than the desire for its destruction. 

The Aim of a New Party. 

The outcome of this struggle will profoundly affect the future, 
for it will determine the lines upon which the Commonwealth will 
evolve and the ftmctions of the Co-operative Movement within it. 
There is no doubt about this because the political power of democracy 
is rapidly increasing, and the Labour Party is certain to have 
an opportunity before long of putting its programme into operation.
Therefore, a decision on this issue is not only of the utmost importance 
to co-operators, it is equally so to the wider democracy. For 
co-operators to decide against political action is tantamount to 
acknowledging that the consumer ' democracy is not as distinctive 
a factor in political democracy as is the democracy of producers. 
To come to such a decision would be contrary to the history of the 
working-class movements of this country, of which the Co-operative:\1ovement is one of the outstanding successes, for experience pro,-
ides the valuable lesson that, when the complex interests of the 

onsumers are subordinated to the particular interests of the producer, 
the economic aspect of democracy tends to stagnate and 
~uffer. 

But as a matter of fact 'there is not much evidence that the 
opposition to the Co-operative Party vvill be successful. No doubt 
adjustments will have t0 be made, for it is not to be expected that 
the first step into politics made by co-operators will be on infallible 
or unalterable lines. When experience proves any of its methods 
to be wrong, common sense will adjust them, for it should be the 
aim of a new party to recognize that political attachments cannot 
ca<;ily be broken, and the adherence of sincere people can never be 


compelled by force, but may be won over by consideration, reason, 
and the logic of events. In time, those co-operators in whom cooperation 
is stro)1ger than party attachment will recognize the need 
of their party for their support and eventually will give it their 
adherence, whilst the opposition with ulterior motives will cease 
to inconvenience, because it will then be ineffective. 

The Economic Test. 

Its relations with existing political parties is always the most 
serious difficulty which confronts a new party, and is the first issue 
it must fight out. There are many gradations of political thought 
and this tends to obscure the more fundamental things which 
divide people into political parties. For instance, Temperance 
Reform has its advocates in all parties, although they vary in number 
and the methods of the reform. The Labour, Liberal and Cooperative 
Parties all agree upon the practice of Free Trade, whilst 
Liberals and Conservatives unite against Labour on indushial 
problems, and it is possible that trade union thought might differ 
from co-operative thought on the degree of workers' control to be 
instituted in the earlier stages of common ownership. 

But these points in which parties merge are usually the less 
distinctive features of the party programme and more often than 
not concern palliatives rather than fundamentals. The most 
important division between parties to-day is an economic one 
involving the owm.!rship, control, and administration of the sources 
of material wealth, this entailing in its turn the recasting of the 
social and ethical values in society. On this basis, the Co-operativePartv must determine its relations to the Conservative, Liberal , 
and Labour Parties. 

The Objective of Parties. 

Both the Conservative and Liberal Parties support the presenteconomic structure of Society, with its numerous class distinctions. 
The difference between them is one of degree, the Liberals favouring 
a more radical patching up of some of the abuses of capitalism 
than do the Tories. 

The Labour Party, whilst considering it expedient temporarily 
to support legislative measures of social reform, is opposed to the 
present capitalist system of society and seeks to replace it by a 
socialist or co-operative commonwealth. The Co-operative Movement 
does not support the present economic structure of society: 
On the contrary, it exists to replace capitalism by a Co-operative 
Commonwealth:


Wherein, the incentive in industry will be production for use 
and not for profit. 


20 

The economic basis of society to be the common ownershipof the essentials of life, with such modifications as may be necessary-
to keep functioning the desire for change. 

Government to be based upon democratic principles, the will 
and interests of the citizens as consumers to be the dominant 
factor whilst enabling the producers to function in the administration 
of their respective industries. 

The Co-operative Party of necessity stands for the above 
object of the Co-operative Movement, and so does the Labour 
Party. Therefore, the two are fundamentally in agreement and 
begin to build their political programmes from a common foundation. 

The Reason for Early Success. 

The Co-operative Party . quickly made itself felt in politics. 
About half the retail societies almost immediately affiliated to it 
and the contributions from these, together with the annual grantfrom the C.W.S. and the S.C.W.S., provided the funds for 
local and national candidates to be put forward. In addition, 
a sufficient number of enthusiasts from the men's and women's 
guilds and from those holding representative positions upon 
management and education committees were forthcoming to 
enable the framework of an organization to be established. 

Therefore, the two things necessary for starting a political 
party, funds and voluntary workers, were found at hand by-
co-operators and a number of candidates were _~?Ut forward at the 
Local Elections in 1918, and, in addition, IO candidates went to 
the poll at the General Election in November, 1918. Considerable 
success was achieved by co-operative candidates at the Local 
Elections, and one candidate-Mr. Waterson, M.P., for Kettering-
was returned to Parliament. In the recent General Election II cooperative 
candidates went to the polls, and· 4 emerged successful, 
viz., Messrs. Alexander (Sheffield), Barnes (East Ham), Henderson 
(Glasgow), and Morrison (Tottenham). But this success was not obtained 
by co-operative candidates running entirely on the strength of 
their own organization. Much of it is due to the friendly co-operation 
of the Labour Party, national and local, which enabled co-operative 
candidates to .go to the poll without Labour opposition. In 
effect, it meant that the same causes which compelled trade unionists 
through the Labour Party and co-operators through the Co-operative 
Party to formulate the same ideals, based upon similar principles, 
and to be obtained through a political programme framed 
in almost identical terms, also made it inevitable that, in face of 
the same electorate, they had the alternative of agreement or the 
dissipation of their respective energies. 

The principle of autonomy for each Co-operative Society is here 
seen to advantage, enabling the more progressive societies to 
adapt their policy to practical politics without committing the 


2I 

Movement officially. This working with the Labour Party has been 
an important factor in enabling the Co-operative Party to secure 
the return of something like soo Co-operative Councillors to Locai 
Authorities in the short space of 5 years. In addition, in all the 
constituencies where Co-operative candidates stood at the General 
Election, they were assured of the support of the Labour Party, thus 
enabling them to rally all the forces of democracy in their favour. 
This development, although helping materially the growth and 
influence of the Co-operative Party, has naturally aggravated partyfeeling and caused the question of the relations of the Co-operativeParty to the Labour Party to become a controversial issue within 
the Movement. 

Opposition to Labour. 

The opposition to an understanding with the Labour Party 
may be divided broadly under two heads :.


I. 
That form of opposition which is opposed to political action 
and which mainly arises from attachment to the older 
political parties, and therefore becomes aggravated when 
an alliance with Labour is suggested. 
2. 
The fear that it may react adversely upon the trading side 
of the Movement. 
The first form of opposition is unavoidal;lle in the early stagesof independent working-class political parties. The members of 
trade unions and co-operative societies did not join either movement 
in the first instance with conscious political motives. They joinedwith the object of obtaining the limited but direct advantagesaccruing from " industrial" and " mutual trading" association. 
But one form of association becomes in its \.urn the seed for further· 
growth and in practice trade unionism and co-operation have 
discovered to the workers the power that resides for them in collective 
effort as against their helplessness as individuals. The same 
conditions apply to the worker as a citizen and as a producer or 
as a consumer. Politics, like almost everything else to-day, are 
crganized on a large scale ! The individual cannot function exceptthrough a political party. National Headquarters, County and 
Local Organizations, Agents in every constituency, national, provincial 
and local daily and weekly newspapers, and a continuous 
propaganda are indispensable to any party aspiring to the government 
of the country. The expensive machinery of politics can onlybe obtained and maintained .by an annual revenue of considerable 
dimensions. The Liberal and Conservative Parties depend for 
their party funds mainly upon secret subscriptions from wealthycapitalists and landowners, and according to the honours debate 
in the Houses of Parliament in July, 1922, they no not hesitate to 
swell their funds by a traffic in honours. Those who pay the 


22 

piper call the tune : consequently, both the Conservative 
Liberal Parties exist to maintain the present 
of society. 

The worker has therefore no alternative but to accept 
politics of parties financed by rich men or to create and Ju'a.'"-" 
party of his own. He can only do this through his trade 
and co-operative society. There is no other way because the worke 
are too poor. By this method the pence of millions becomes 
new instrument of power and enables democracy to be political!) 
independent of the cheque books of the rich. It is an open way ; 
it is honest ; it is democratically enforced and it certainly will mak 
for greater purity in politics than the secret subsidies to the party 
funds of the older parties. 

At the start of the Co-operative Party, all co-operators were 
not prepared to sever their connection with the older parties any 
more than trade unionists were 20 years ago. It is not in the 
nature of things. Our working-class movements have developed 
step by step, each stage of growth being tested by the natural 
resistance to change, the determining factor being the rising generation, 
who can more surely discern the utility of the new development 
because their outlook is less clouded by custom and tradition : 
therefore, the first form of opposition will be eliminated in time 
provided the Co-operative Party remains steadfast to its ideals, 
displays virility in its policy and sagacity in its methods, for thes 
three things are the essentials for a successful people's party. 

Methods. 

The second form of opposition arises from that body of opinion 
within the Movement which, whilst recognizing that some fom1 
of political action is de irable, is uncertain as to the method to be 
adopted and fears that any alliance with the Labour Party is likely 
to react adver ely upon the trading side of co-operation. Thi~ 
raises the question as to the method which is most suitable to advance 
Co-operation in the realms of politics. When creating their party,
co-operators were wise enough to establish a special political section. 
The National Committee of the Co-operative Party consists of z8 
member elected as follows :


Nine members elected from and by the Retail Societies affiliated 

to the Party. 

Nine members elected by the Co-operative Union. 

Two r presentatives from the English Co-operatiYe Wholesale 

ociety. 

One repr sentative from the cotti h Co-operative Wholesale 

ociety. 

One r presentative from the Productive Federation. 

Two repr sentativ . from the Joint Parliamentary Committee. 


23 


One each from the Men's Co-operative Guild, the Scottish 

Women's Co-operative Guild, the Women's Co-operative Guild, 

and the Education Committee of the Co-operative Union. 

Thus all the constituent elements of the Co-operative Movement 
are represented on the National Committee of the Party, therebyavoiding that possibility of political activities unduly occupyingthe attention or interfering with the other aspects of Co-operation. 

The work of the National Committee is primarily to obtain 
representation in Parliament, encourage the formation of Local 
Co-operative Parties and to educate co-operative and public opinion 
in the need for consumers' representation on public bodies. The 
Local Co-operative Parties have complete autonomy for local purposes 
and, in addition, have the right of choice in the selection of a 
parliamentary candidate, subject to the approval of and certain 
other conditions laid down by the National Committee. This 
enables the local Co-operative Party to adjust its policy to local 
conditions within reasonable constitutional limits. In practicelocal Co-operative Parties have found it expedient to adopt broadly 
one or other of the following methods :


(a) The Local Co-operative Party and the Local Labour Party 
meet and agree to an allocation of seats. 
(b) 
The Local Co-operative Party has affiliated with, and submitted 
its nominations to, the Local Labour Party, and if 
endorsed, they have run under the auspices of the Labour 
Party.
(c) 
Auxiliary co-operative bodies, like the Men's and Women's 
Co-operative Guilds, have affiliated to the Local Labour 
Parties, and have submitted nominations to the Labour 
Party, which, if endorsed, have then been supported by 
the Local Co-operative Party. 
Whilst these various methods have met the initial difficulties 
of co-operative political growth, they will not suffice indefinitely. 
Both the Labour Party and the Co-operative Party in the near 
future will increase their membership and funds and improve their 
organization, and will then be in the position to put forward a greaternumber of candidates. Therefore, the time is approaching when 
the margin of seats which both are now unable to contest will 
disappear, and then agreement will become more diff1cult. It is, 
therefore, advisable that the relations between the Labour Partyand the Co-operative Party should have the considered attention 
of all those who believe in the unity of democracy and, as the main 
obstacle to a satisfactory solution is a co-operative one, we maynow examine a way out of the difficulty. 

Affiliation. 

Co-operative opinion is not yet ripe for affiliation with the 
Labour Party. The National Committee of the Co-operative Party 


does not advocate it and the Co-operative Union and the Co-operative 
Wholesale Society are opposed to it. To force affiliation 
would not help the Labour Party, because a decision of the Cooperative 
Congress, as previously explained, is not binding on 
either the C.W.S. or a single retail society, unless it is confirmed 
by their respective members. 

On the other hand, those societies that wish to affiliate are 
free to do so now, and many have. The Co-operative Party at 
present is a Committee of the Central Board, which is representative 
of the whole of the Co-operative Movement, and, if affiliation were 
carried under present conditions, it would raise serious constitutional 
difficulties both for the Labour Party and the Co-operativeMovement, and would more likely than not retard for a periodrather than help the development of the idea of co-operative political 
association. The Labour Party at present requires a solid membership 
behind it and affiliation of the Co-operative Party, under the 
conditions indicated, would constitute a source of weakness. 
It is therefore obvious that greater political growth within the 
Co-operative Movement is first necessary before complete unitycan be accomplished. 

An Unworkable Constitution. 

The position of the Co-operative Party at present is that about 
one half of the Co-operative Movement is affiliated to it. Its policyand work is subject to the veto of the Central Board of the Co-operative 
Union and Congress. The weakness of this arrangement is 
that through the Central Board and Congress those societies who 
are not members of tile Co-operative Party retain the power to 
influence and vote upon its policy and proposals. This is obviously 
wrong. Either those societies not yet affiliated must become 
members of the Co-operative Party or else the Co-operative Movement 
should seriously consider whether it is not only advisable 
but fair to give the Co-operative Party the same status and freedom 
which the trade unions have given to the Labour Party. The 
Trade Union Congress realized that only those trade unions which 
were members of the Labour Party. had the right to exercise anyinfluence in its affairs. Consequently, the Labour Party was given 
the necessary freedom and the conditions which compelled it to 
make progress on its merits, and this constitutes a big factor in 
vigorous growth. Thus the Labour Party has grown up with its 
own National Congress and with a constitution and machineryto fit in with its needs. This has not weakened the bonds which 
lin.k the Trade Union Movement and the Labour Party together.
On the contrary, it has strengthened them, for it is not subjectionwhich binds the many sections of democracy together, but a community 
of interests and ideals. 


25 


A Special Sphere for Co-operative Politics. 


If the Co-operative Movement could see its way to follow a 
similar line of political growth, many of its present difficulties would 
disappear. Now the position is neither satisfactory to those who 
favour political action, nor to those who are opposed to it. The 
Co-operative Party has to submit the policy it is working out from 
practical experience to a Congress composed of delegates, manyof whom have no knowledge of its problems, and, what is more, 
very little desire to understand them. Consequently, the maximum 
of irritation is engendered with the minimum of results. 

The fact that co-operative politics has its own special sphere, 
apart from Co-operative trading, should be recognized. Now the 
Central Board and Congress are trying to fit the Co-operative Partyinto a place in the Co-operative Movement, whereas their endeavour 
should be to create for it a place in the political system of the nation. 
The Central Board contributes towards the maintenance of the 
Co-operative Party, and this contribution constitutes the right of 
those societies not members of the Party to vote upon Co-operative 
Party policy at Congress. The Co-operative Party should 
depend for its funds upon its affiliated societies and members, 
or upon National grants given without conditions which undulylimit its freedom of action. It should have its own Party Conference 
at which only those affiliated to it should be represented 
and be empowered to decide policy. This would leave every Society-Retail, Wholesale and Productive-free to decide the part it 
wished to play in the representation of the consumer in politics. 

If this independence were given to the Party, it would preventthose societies not yet ripe for political action from hamperingthose who are, and it would prevent the responsibility of any action 
of the Party resting upon those who do not desire it. Contact 
could be maintained with the trading side on lines adopted by the 
Trade Union Movement and the Labour Party, viz., the establishment 
of Joint Committees. There is not the slightest possibility 
of the Co-operative Party under such conditions losing touch with 
the main movement, because, if it did, it would soon cease to exist. 

Unification of Forces. 

In a political democracy it is desirable for the consumers, as 
well as the producers, to be represented in a specialized form, and the 
Co-operative Party has been created for this purpose. Independencefor the Co-operative Party would solve the main obstacle which 
stands in the way of an alliance or union with the ·Labour Party,
for it would remove the constitutional difficulty which affects the 
National and Federal bodies within the Co-operative Movement. 
If the Co-operative Party were a free association of those societies 
favourable to 'consumers' representation, it could decidl! ;or union 


26 


with the Labour Party without involving the Central Board of 
the Co-operative Union, which contains within it the English and 
Scottish Wholesale Societies, the Productive Federation, and a 
number of societies whose local conditions may not favour 
political action, and in particular may be opposed to an alliance 
with Labour. 

The present machinery existing between the Labour Party,
the Parliamentary Labour Party, and the General Council of the 
Trade Union Congress could be extended to the Co-operative 
Union in time, enabling that body on all matters, to expressthe views of the Co-operative Movement. Towards some such 
unification of the forces of democracy the mind of the people is 
steadily feeling its way. The war plunged co-operators into 
politics under exceptional conditions, but experience is now pointing 
out the path to be taken. Co-operators and trade unionists 
who favour an independent working-class political party to free 
themselves from political subservience to the rich do not desire two 
political parties with the same ideal and programme to competefor their votes. 

What they do require is a comprehensive party, combiningthe experience and specialized knowledge of all sections of the 
democracy, which will develop a community of interests and a higher 
level of citizenship in a Co-operative or Socialist Commonwealth. 


THE FABIAN SOCIETY. 

25, TOTHILL STREET, WESTMINSTER, LONDON, S.W.l. 

Those willing to join the Labour Party, or desirous of obtaining information 
about its Programme and Principles, are invited to communicate with the Secretaryof the Fabian Society.

The Fabian Society ha!> been, from the outset, a constituent body of the Labour 
Party; and membership of the Society carries with it full membership of the Labour 
Party; eligibility for nomination to all Conferences and Offices, and qualificationfor Labour Party, candidatures for Parliament and Local Authorities, without 
obligation to belong to any other organisation.

The Society welcomes as members any persons, men or women, wherever 
resident, who subscribe to its Basis (set forth below). and who will co-operate in its 
work according to their opportunities. 

BASIS OF THE FABIAN SOCIETY. 

To BE SIGNED BY ALL MEMBERS. Adopted May 23rd, 1919. 

The Fabian Society consists of Socialists. 

It therefore aims at the reorganisation of Society by the emancipation of Land 
and Industrial Capital from individual ownership, and the vesting of them in the 
community for the general benefit. In this way only can the natural and acquiredadvantages of the country be equitably shared by the whole people. 

The Society accordingly works for the extinction of private property in land, 
with equitable consideration of established expectations, and due provision as to the 
tenure of the home and the homestead; for the transfer to the community, by constitutional 
methods, of all such industries as can be conducted socially ; and for the 
establishment, as the governing consideration in the regulation of production, distribution 
and service, of the common good instead of private profit.

The Society is a constituent of the Labour Party and of the International Socialist 
Congress ; but it takes part freely in all constitutional movements, social, economic 
and political, which can be guided towards its own objects. Its direct business is 

(a) the propaganda of Socialism in its application to current problems; (b) investiga·
tion and discovery in social, industrial, political and economic relations; (c) the 
working out of Socialist principles in legislation and administrative reconstruction ; 
(d) the publication of the results of its investigations and their practical lessons. 
The Society, believing in equal citizenship of men and women in the fullest 
sense, is open to persons irrespective of sex, race or creed, who commit themselves 
to its aims and purposes as stated above, and undertake to promote its work. 

The 
Society includes :


1. 
Members, who must sign the Basis and be elected by the Committee. Their Subscriptions are 
not Hxed : each Is expected to subscribe annually according to his means. They control 
the Society through the Executive Committee (elected annually by ballot through a 
postal vote), and at Its annual and other business meetings. 
II. 
Associates, who sign a form expressing only general sympathy with the objects of the Societyand pay not less than !Os. a year. They can attend all except the exclusively members' 
meetlmls, but have no control over the Society and Its policy. 
Ill. Subscribers, who must pay at least Ss. a year, and who can attend the Society's OrdinaryLectures. 
. The monthly paper, Fabian News, and the Tracts from time to time published 
10 the well-known Fabian Series, are posted to all these classes. There are con


venient Common Rooms, where light refreshments can be obtained, with an extensive 
library for the free use of members only. 

Among the Society's activities (in which it places its services unreservedly at 

the disposal of the Labour Party and the Local Labour Parties all over the country,
the Trade Unions and Trades Councils, and all other Labour and Socialist organisations), 
may be mentioned : 

(1.) Free lectures by Its members and omcers;

(11.) The well-known Fabian Book-boxes, each containing about three dozen of the best books on 

Economics, Politics and Social Problems, which can be obtained by any organisation of 

men or women for 15s. per annum, covering an exchange of books every three months ;

(lll.) Ar.swers to Questions from 1\Iembers of Local Authorities and others on legal, technical or 

political matters of Local Government, &c. ; 

(lv.) 
peclal kubscrlptlon courses of lectures on new developments In thought:

(v.) Economic and social Investigation and research, and publication of the results. 

Llata of Publications, Annual Report, Form of AppllcatJon as Member or Associate, and 
any otber Information can be obtained on appllcatJon personally or by letter to tbe Secretal")'
at tbe above addreu. 


FABIAN PUBLICATIONS. 

THE DECAY OF CAPITALIST CIVILISATION. By SIDNl~Y & BEATRIOIC Wllllll. 
Cloth, 4s. 6d.; paper, 2s. 6d.; postage, 4d. 
FABIAN ESSAYS. (1920 Edition.) 2s. 6d.; postage 3d. 
THE COMMON SENSE OF MUNICIPAL TRADING. By BERNAHD SHAw ls. 6d. net. 
KARL MARX. By HAROLD J. LASKI. ls.; post free, 1s. ltd• 
FROM PATRONAGE TO PROFICIENCY IN THE PUBLIC SERVICE. By WILLIAM 

A. RODSON. ls. ; post free, 1s. 1id. 
SOCIALISM AND CHARACTER. By HENRY STURT. 7s. 6d. ; postage, 5d. 
THE WHITLEY SYSTEM IN THE CIVIL SERVICE. By J. H. MAORAE-GrBSON. 
Is.; post free, 1s. 1 !:d. 
WHAT TO READ on Social and Economic Subjects. 2s. n. 
TOWARDS SOCIAL DEMOCRACY ? By SIDNEY WEDB. Is. n., postage, Id. 
THIS MISERY OF BOOTS. By H . Cl . WELLS. 6d., post free 7d. 

FABIAN TRACTS and LEAFLETS. 

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The Set of74, 7s. 6d.; post free Ss. 6d. Bound In buckram,12s. 6d.; post free 13s. 6d. 

I.-General Socialism in its various aspects. 

TRAOTS.-192. Guild Socialism. By G. D . COLE, llf.A. 180. The Philosophyof Socialism. By A. CLCTTON BROOK . 159. The Necessary Basis of Society. BySIDNEY WEDD. 151. The Point of Honour. By :RUTH C. BENTINOK. 147. Capitaland Compensation. By E. R . PEASE. 146. Socialism and Superior Brains. ByBERNARD SHAW. 2d. 142. Rent and Value. 138. Municipal Tradln!a. 121. 
Public Service''· Private Expenditure. By Sm OLIVER Loom1. ~cl. 107. Socialism 
for Millionaires. By BEJ:NARD SHAW. 2d. 139. Socialism and the Churches. 
By RE\'. JOITN C'LIFFORD. D.D. 133. Socialism and Christianity. By :REV. PEROY 
DEAHMER . 2cl . 78. Socialism and the Teachin~ of Christ. lly DR. J. CLIFFORD. 

42. Christian Socialism. By REV. S. D. HRADI..\M. 79. A Word of Remembrance 
and Caution to the Rich. ByJOITN Wooi.MAN. 72. TheMoralAspectsofSoclallsm.
By SmNEY BALL. 69. Difficulties of Individualism. J3y S. WEHD. 51. Socialism 
True and False. Ry S. WEnD. 2cl . 45. The Imposslblllties of Anarchism. By
n. B. SHAW. 2cl . 7. Capital and Land. 5. Facts for Socialists. Scl. 41. The 
Fabian Society: Its Early History. By BEHNAllD SJTAW. 
H.-Applications of Socialism to Particular Problems. 

TllAOTS.-198. Some Problems of Education. By BARDARA DRAKE. 6d. 197. 
International Labour Organisation of the League of Nations. By WM. S. SANDEHS. 

196. The Root of Labour Unrest. By SmNEY WEDTI. 2d. 195. The Scandal of 
the Poor Law. B)• C. M. LLOYD. ~cl . 194. Taxes, Rates and Local Income Tax. 
By RODllllT JONES, D.So. 2d. 188. National Finance and a Levy on Capital. BySIUNEY WEnD. ~<1 . 187. Tbe Teacher In Politics. By SIDNEY WEBB. 2d. 186. 
Central Africa and the Lea!aue of Nations. By R. C. HAWKJN. 2d. 183. The 
Reform of the House of Lords. By SmNEY WEBB. 181. When Peace Comes-
the Way of Industrial Reconstruction. By SIDNilY WEDB. 2d. 177. Socialism 
and the Arts of Use. By. A. CJ,UT'l'()N BROOK. 175. The Economic Foundations 
of the Women's Movement. 2cl. 173. Public 1>. Private Electricity Supply. 170. 
Prollt-Sharln~ and Co-partnership: a Fraud and Failure? 164. Gold and 
State Banking. 161. Afforestation and Unemployment. 155. The Case a~alnst 
the Referendum. 152. Our Taxes as they are and as they ought to be. 2d. 145. 
The Case for School Nurseries. 140. Child Labour under Capitalism. 136. 
The Vlllatle and the Landlord. By Enw. CARl'E~TFJR. 144. Machinery: Its 
Masters and Servants. 122. Municipal Milk and Public Health. 124. State 
Control of Trusts. 158. The Case a~ains't the C.O.S. By MRS. TOWNSH!lND. 
JII...,Local Government Powers: How to use them. 

TR:\<'T~.-190. Metropolitan Borough Councils. By C R. ATTLER, M.A. 2d. 191. 
Borou!ah Councils. B)• C. U. ATTLBE, M.A. 2d. 193. Housin~. By C. 111. LLOYll. 
111..1 .. :hi. 189. Urban District Councils. Bv C. i\J . LLOYl). ~l.A . ~rl. 62. Parish 
and District Councils. (Hevlsrd 1021.) ~d. 148. Whnt a Health Committee con 
do. 211. 137. Parish Councils and Village Life. 211. 

IV.-Biographical Series. In portrait covers, 2d. and 3d. 

199. Wllllnm Lovett. 1800-1877. By BAilll.\R.\ J •. TI \MMOND. 3rl. 182. Roberl 
Owen, Idealist. By C. 1•:. M. JOAD. 179. John Ruskin and Social Ethics. ByrROF. EDITil llfORI.EY. 165. Francls Place. By ST. JOJlN f: . EI\VINE. 166. Robert 
Owen, Social Reformer. By MISS B. L. HUTOITrNOS. 167. Williorn Morris and 
the Communist Ideal. By \IR~. TOWNSJIEND. 168. John Stuart Mill. By JULJUS 
WEST. 174. Charles Klngsley and Christian Socialism. 13y C. E . YULLIAMY. 
Prlntrcl by Leicester Co-opemtlve Printing Society Limited, 99, Church Gate, Leicester.