The movement for the reorganisation of Irish agricultural and industrial life, to which I have already frequently referred, must now be described in practical operation. Before I do this, however, there are two lines of criticism which the very mention of a new movement may suggest, and which I must anticipate. Every year has its tale of new movements, launched by estimable persons whose philanthropic zeal is not balanced by the judgment required to discriminate between schemes which possess the elements of permanence, and those which depend upon the enthusiasm or financial support of their promoters, and are in their nature ephemeral. There is, consequently, a widespread and well justified mistrust of novel schemes for the industrial regeneration of Ireland. I confess to having had my ingenuity severely taxed on some occasions to find a sympathetic circumlocution wherewith to show cause for declining to join a new movement, my real reason being an inward conviction that nothing except resolutions would be moved. In the complex problem of building up the economic and social life of a people
The other criticism which I think it necessary to anticipate would, if ignored, leave room for a wrong impression
The story of the new movement, which must now be told, begins in the year 1889, when a few Irishmen, the writer of these pages among them, set themselves the task of bringing home to the rural population of Ireland the fact that their prosperity was in their own hands much more than they were generally led to believe. I have already pointed out that in order to direct the Irish mind towards practical affairs and in order effectively to arouse and apply the latent capacities of the Irish people to their chief industry, agriculture, we must rely upon associative, as distinct from individual effort; or, in other words, we must get the people to do their
While the opening up of what the economists call the world market, has necessitated, as a condition of successful competition, improved methods of production for, and carriage to, the market a third and less obvious force has effected an important change in the method of distribution in the market. The swarming populations, which the factory system has brought together in industrial centres, have to be supplied with food by a system of distribution which must above all things be expeditious. This requirement can only be met by the regular consignment of food in large quantities, of such uniform quality that the sample can be relied upon to be truly indicative of the quality of the bulk. Thus the rapid distribution of produce in the markets becomes as important a factor in agricultural economy as improved methods of production or cheap and expeditious carriage.
Now, this new market condition is being met in two ways. In the United States, and, in a less marked degree, at home, an army of middlemen between the producer and the consumer attends to this business for a share of the profits accruing from it, whilst in many parts of the Continent the farmers themselves attend, partially at any rate, to the business side of their industry instead of paying others to do it all for them. I say all, for middlemen are necessary at the distributive end: but it is absolutely essential, in a
Here, then, was a definite practical problem to the solution of which the promoters of the new movement could apply their principle of co-operative effort. The more we studied the question the more apparent it became that the enormous advantage which the Continental farmers had over the Irish farmers, both in production and in distribution, was due to superior organisation combined with better education. State-aid had no doubt done a great deal abroad, but in every case it was manifest that it had been preceded, or at least accompanied, by the organised voluntary effort without which the interference of the Government with the business of the people is simply demoralising.
Generally speaking, the task before us in Ireland was the adaptation to the special circumstances of our country of methods successfully pursued by communities similarly situated in foreign countries. We had to urge upon farmers that combination was just as necessary to their economic salvation as it was recognised to be by their own class, and by those engaged in other industries, elsewhere. They must combine, so we urged on them,
This brief statement of our general aims will furnish a rough idea of the economic propaganda which we initiated, and if I give a few illustrations of the practical application of the new principle to the farming industry, I
When we arrived at the conclusion that the introduction of the principle of agricultural co-operation was a vital necessity, the first practical question which had to be decided was how the industrial army, which was to do battle for Ireland's position in the world market, should be organised and disciplined for the task. It is evident that before a body of men who have never worked together can form a successful commercial combination, they must be provided with a constitution and set of rules and regulations for the conduct of their business. These must be so skilfully contrived that they will harmonise all the interests involved. And when an arrangement has been come to which is, not only in fact but also obviously, equitable, it remains as part of the process of organisation to teach the participants in the new project the meaning, and to imbue them with the spirit, of the
So Lord Monteagle and Mr. R. A. Anderson, my first two associates in the New Movement, joined me as regular attendants at the annual Co-operative congresses. We were assiduous seekers after information at the head-quarters of the Co-operative Union in Manchester. We had the good fortune to fall in with Vansittart Neale, and Tom Hughes, both of whom have passed away, and with Mr. Holyoake, who, with the exception of Mr. Ludlow, is now the sole survivor of that noble group of practical philanthropists, the Christian Socialists. Mr. J. C. Gray, who succeeded Mr. Vansittart Neale as the General Secretary of the Co-operative Union, gave us invaluable help and continues to do so to this day. The leaders of the English movement[Footnote: The story of the conversion of some of the tenants on the Vandeleur estate into a co-operative community in 1831 by Mr. E. T. Craig, a Scotchman who took up the agency of the property, told in the History of Ralahine (London, Trübner & Co., 1893) is worth reading. The experiment, most hopeful as far as it went, was only two years in existence when the landlord gambled away his property at cards in a Dublin club and the Utopia was sold up. But in the co-operative world Mr. Craig, who died as recently as 1894, is revered as the author of the most advanced experiment in the realisation of co-operative ideals. The economic significance of the narrative is obviously not important, and I doubt whether joint ownership of land, except for the purpose of common grazing, is a practical ideal. The ready response, however, of the Irish peasants to Mr. Craig's enthusiasm and the way in which they took up the idea form an interesting study of the Irish character.]
It must be admitted that the outlook was not altogether rosy. Agricultural co-operation had never succeeded in England, where it seemed to be accepted as one of the disappointing limitations of the co-operative movement that it did not apply to rural communities in these islands. There were also in Ireland the peculiar difficulties arising from ceaseless political and agrarian agitation. It was naturally askeddid Irish farmers possess the qualities out of which co-operators are made? Had they commercial experience or business education? Had they business capacity? Would they display that confidence in each other which is essential to successful association, or indeed that confidence in themselves without which there can be no business enterprise? Could they ever be induced to form themselves into societies, and to adopt, and loyally adhere to those rules and regulations by which alone equitable distribution of the responsibility and profit among the participants in the joint undertaking can be assured, and harmony and
On the other hand there were some favouring conditions, the importance of which our studies of the human problems already discussed will have made my readers realise. Isolated, the Irish farmer is conservative, sceptical of innovations, a believer in routine and tradition. In union with his fellows, he is progressive, open to ideas, and wonderfully keen at grasping the essential features of any new proposal for his advancement. He was, then, himself eminently a subject for co operative treatment, and his circumstances were equally so. The smallness of his holding, the lack of capital, and the backwardness of his methods made him helpless in competition with his rivals abroad. The process of organisation was also, to some extent, facilitated by the insight the people had been given by the Land League into the power of combination, and by the education they had
Though the economic conditions of the Irish farmer clearly indicated a need for the application of co-operative effort to all branches of his industry, it was necessary at the beginning to embrace a more limited aim. It happened at the time we commenced our Irish work that one branch of farming, the dairying industry, presented features admirably adapted to our methods. This industry was, so to speak, ripe for its industrial development, for its change from a home to a factory industry. New machinery, costly but highly efficient, had enabled the factory product, notably that of Denmark and Sweden, to compete successfully with the home-made article, both in quality and cost of production. Here, it will be observed, was an opportunity for an experiment in co-operative production, under modern industrial conditions, which would put the associative qualities of the Irish farmer to a test which the British artisan had not stood quite as well as the founders of the co-operative movement had anticipated. To add to the interest of the situation, capitalists had seized upon
The economic position was ideal for our purpose, and we had no difficulty in explaining it to the farmers themselves. The social problem was the real difficulty. To all suggestions of co-operative action they at first opposed a hopeless non possumus. Their objections may be summed up thus:They had never combined for any business purpose. How could they trust the Committee they were asked to elect from amongst themselves to expend their money and conduct their business? It was all very well for the proprietor with his ample capital, free hand, and business experience, to work with complicated machinery and to consign his butter out of the reach of the local butter buyer, and to save
[Footnote: The late Canon Bagot had done good service in explaining the value of the new machinery; but unhappily the vital importance of co-operative organisation was not then understood. He formed some joint stock companies with the result that, having no co-operative spirit to offset their commercial inexperience, they all proved, instead of co-operative successes, competitive failures. This fact added to our early difficulties.]
There was nothing in this attitude of mind which we had not fully anticipated. We were confident that, as we were on sound economic ground, no matter what difficulties might confront us it was only a question of time for the attainment of our ends. All that was required was that we should keep pegging away. My own experience was not encouraging at first. I was, and am, a poor speaker, and in Ireland a man who cannot express his thoughts with facility, whether he has got them or not, accentuates the difficulties under which a prophet labours in his own country. I made up for my deficiencies in the first essential of Irish public life by engaging a very eloquent political speaker, the late Mr. Mulhallen Marum, M.P., to stump the country. He gave to the propaganda a relish which my prosaic economics altogether lacked. The nationalist band sometimes came out to meet him. We all know the efficiency of the drum in politics and religion, but it seemed to me a little out of place in economics. However, he created an excellent impression, but unhappily
Mr. Anderson, who sometimes accompanied me and sometimes went his rounds alone, had similar experiences. I may quote a passage from some of his reminiscences, recently published in the Irish Homestead, the organ of the co-operative movement in Ireland.
It was hard and thankless work. There was the apathy of the people and the active opposition of the Press and the politicians. It would be hard to say now whether the abuse of the Conservative Cork Constitution or that of the Nationalist Eagle, of Skibbereen, was the louder. We were killing the calves, we were forcing the young women to emigrate, we were destroying the industry. Mr. Plunkett was described as a monster in human shape, and was adjured to cease his hellish work. I was described as his Man Friday and as Roughrider Anderson. Once, when I thought I had planted a Creamery within the precincts of the town of Rathkeale, my co-operative apple-cart was upset by a local solicitor
On another occasion a similar project was abandoned because the flow of water to the disused mill which it was proposed to convert into a creamery, passed through a conduit lined with cement originally purchased from a man who now occupied a farm from which another had been evicted. To some minds these little complications would have spelled failure. To my associates they but accentuated the need for the movement which they had so laboriously thought out, and the very nature of the difficulties confirmed them in their belief that the economic doctrine they were preaching was adapted to meet the requirements of the case. And so the event proved.
In the year 1894 the movement had gathered volume to such an extentalthough the societies then numbered but one for every twenty that are in existence to-daythat it became beyond the power of a few individuals to direct its further progress. In April of that year a meeting was held in Dublin to inaugurate the Irish Agricultural Organisation Society, Ltd. (now commonly known as the I.A.O.S.), which was to be the analogue
The growth of the movement in the last nine years under the fostering care of the I.A.O.S. is highly satisfactory. By the autumn of this year (1903) considerably over eight hundred societies had been established, and the number is ever growing; of these 360 were dairy, and 140 agricultural societies, nearly 200 agricultural banks, 50 home industries societies, 40 poultry societies, while there were 40 others with miscellaneous objects. The membership may be estimatedI am writing towards the end of the Society's statistical yearat about 80,000, representing some 400,000 persons. The combined trade turnover of these societies during the present year will reach approximately £2,000,000, a figure the
These societies consist, as has been explained, of groups of farmers who have been taught by organisers that certain branches of their business can be more profitably conducted in association than by individuals acting separately. The principle of agricultural cooperation with its economic advantages will, as time goes on, be further extended by the combined action of societies. With this end in view federations are constantly being formed with a constitution similar to that of the societies, the only difference being that the members of the federation are not individuals but societies, the government of the central body being carried on by delegates from its constituent associations. The two largest of these federations, one for the sale of butter, and another for the combined purchase by societies of their agricultural requirements, have been working successfully for several years. Federations, too, are being formed, as societies find that their business can be conducted more economically, for example, in dairying by centralising the manufacture of butter, or in the egg export trade by the alliance of many districts to enable large contracts to be undertaken. In the near future a further development of federation will be required to complete a scheme now under consideration for the mutual insurance of live stock. Such a scheme
In all such enterprises and economic changes the Organisation Society is either the initiator, or is called in for advice, and its continued existence in a purely advisory capacity as a link between the societies where concerted action is required, will be necessary even when the organisation of farmers into societies is completed. The economic life of rural communities is in continual need of adjustment. Now it is an invention like a steam separator which revolutionises an industry. At another time the crisis created by a change in the tariff of a foreign country forces the producer either to find a new outlet for his wares, or to abandon a hitherto profitable employment. A striking instance of the value of organisation and connection with a central advisory body occurred in 1887, when swine fever broke out in Denmark, and the exports of live swine fell from 230,000 in one year to 16,000 in the next. The organisation of the farmers, however, enabled them easily to consult together how best to meet the emergency, and their decision to start co-operative bacon-curing factories was the foundation of their present great export trade in manufactured bacon.
I must not overburden with details a narrative intended for readers to whom I merely wish to give a deeper and wider understanding of Irish life than most of them probably possess. But there is just one form of
The exact purpose of these organisations is to create credit as a means of introducing capital into the agricultural industry. They perform the apparent miracle of giving solvency to a community composed almost entirely of insolvent individuals. The constitution of these bodies, which can, of course, be described only in broad outline here, is somewhat startling. They have no subscribed capital, but every member is liable for the entire debts of the association. Consequently the association takes good care to admit men of approved character and capacity only. It starts by borrowing a sum of money on the joint and several security of its members. A member wishing to borrow from the association is not required to give tangible
Raiffeisen held, and our experience in Ireland has fully confirmed his opinion, that in the poorest communities there is a perfectly safe basis of security in the honesty and industry of its members. This security is not valuable to the ordinary commercial lender, such as the local joint stock bank. Even if such lenders had the intimate knowledge possessed by the committee of one of these associations as to the character and capacity of the borrower, they would not be able to satisfy themselves that the loan was required for a really productive purpose, nor would they be able to see that it was properly applied to the stipulated object. One of the rules of the co-operative banks provides for the expulsion of a member who does not apply the money to the agreed productive purpose. But although these Banks are almost invariably situated in very poor districts, there has been no necessity to put this rule in force in a single instance. Social influences seem to be quite sufficient to secure obedience to the association's laws.
Another advantage conferred by the association is that the term for which money is advanced is a matter of agreement between the borrower and the bank. The hard and fast term of three months which prevails in Ireland for small loans is unsuited to the requirements of the agricultural industryas for instance, when a man borrows money to sow a crop, and has to repay it before harvest. The society borrows at four or five per cent. and lends at five or six per cent. In some cases the Congested Districts Board or the Department of Agriculture have made loans to these banks at three per cent. This enables the societies to lend at the popular rate of one penny for the use of one pound for a month. The expenses of administration are very small. As the credit of these associations develops, they will become a depository for the savings of the community, to the great advantage of both lender and borrower. The latter generally makes an enormous profit out of these loans, which have accordingly gained the name of the lucky money, and we find, in practice, that he always repays the association and almost invariably with punctuality.
The sketch I have given of the agricultural banks will, perhaps, be sufficient to show what an immense educational and economic benefit they are likely to confer when they are widely extended throughout Ireland, as I hope they will be in the near future. Under this system, which, to quote the report of the Indian Famine Commission, 1901, separates the working bees from the
[Footnote: It should be noted that this form of association for credit purposes, owing to its peculiar constitution, applies only to a grade of the community whose members all live on about the same scale and that a fairly low one. It is obvious that unlimited liability would lose its efficacy in developing the sense of responsibility if some members of the association were so substantial that its creditors would make them primarily responsible in the event of failure. The fact, however, that the scheme has worked with unvarying success among the poorest of the poor and the most Irish of the Irish, renders it as good an illustration as can be found of what may be done by sympathetic and intelligent treatment of Irish economic problems. Mr. Henry W. Wolff, the foremost authority on People's Banks in these islands, and Mr. R. A. Yerburgh, M. P., a generous subscriber to the Irish Agricultural Organisation Society, have taken great interest in this part of the movement and have rendered much assistance.]
One other sphere of activity worked by the cooperative associations needs a passing notice. The desire that, together with material amelioration, there should be a corresponding intellectual advancement and a greater beauty in life has prompted many of the farmers' societies to use their organisation for higher ends. A considerable number of them have started Village Libraries, and by an admirable selection of books have brought to their members, not only the means of educating themselves in the more difficult technical problems of their industry, but also a means of access to that enchanted world of Irish thought which inspires the Gaelic Revival to which I have already referred. Social gatherings of every kind, dances, lectures, concerts, and such like entertainments, which have the two-fold effect of brightening rural life and increasing the attachment of the members to their society, are becoming a common feature in the movement, and this more human aspect has attracted to it the attention of many who do not understand its economic side. We have gratifying evidence from many of the clergy that the movement thus developed has kept at home young people who would otherwise have fled from the continued hardship and intellectual emptiness of rural life at home.
These results are in no small measure due to the zeal and devotion of the governing body and staff of the I.A.O.S. The general policy of the society is guided by a committee of twenty-four members, one-half of whom are elected by the individual subscribers and the other half by the afilliated societies. It is representative in the best sense and influential accordingly. The success of the Committee is no doubt mainly due to the wisdom which they have displayed in the selection of the staff. In the most important post, that of Secretary, they have kept on my chief fellow-worker in the early struggle, Mr. R. A. Anderson, who has devoted himself to the cause with all the energy of a nature at once enthusiastic, unselfish, and practical, and who has succeeded in inspiring his staff of organisers and experts with his own spirit. Among these, two deserve special mention, Mr. George W. Russell, one of the Assistant Secretaries, who has under the nom de plume A. E., attained fame for a poetry of rare distinction of thought and diction, and Mr. P. J. Hannon, the other Assistant Secretary, who has proved himself a splendid propagandist. Each of these gentlemen has brought to the movement a zeal and ability which could only come of a devotion to high ideals of patriotism, curiously combined with a shrewd practical instinct for carrying on varied and responsible business undertakings.
With the growing work the staff has been repeatedly augmented to enable the central society to keep pace with the demand made by groups of farmers to be
[Footnote: Those who wish to go more fully into the details of the co-operative agricultural movement in Ireland should write to the Secretary Irish Agricultural Organisation Society, 22 Lincoln-place, Dublin. The publications of the Society are somewhat voluminous, and the inquirer should intimate any particular branches of the subject in which he is especially interested. Those wishing to keep au courant with the further development of the movement would do well to take in the Irish Homestead, post free 6s. 6d. per annum.]
One of the difficulties incidental to a movement of this kind, which, for the reasons already set forth, had to be rapidly and widely extended, was the enormous cost to its supporters. It is needless to say that such a staff as I have described could not be kept continuously travelling by rail and road for so many years without the provision of a large fund. These officers must obviously be men with exceptional qualifications, if they are not only to impress the thought of their agricultural
It is not to be wondered at that the greater part of the necessary funds should have been drawn from a very limited circle of public-spirited men capable of grasping
The difficulty of a successful appeal to a wider public has been the impossibility of giving in brief form an adequate explanation, such as that which it is hoped these pages will afford, of the part the movement was to play in Irish life. We were asked whether our scheme was business or philanthropy. If philanthropy, it would probably do more harm than good. If business, why was it not self-supporting? I remember hearing the movement ridiculed in the House of Commons by a prominent Irish member on the ground that the accounts of the I.A.O.S. showed that £20,000 (£40,000 would be nearer the mark now) had been put into the business, and that this large capital had been entirely lost! When we proved that agricultural co-operation brought a large profit to the members of the societies we formed, it was suggested that a small part of this profit would give us all we required for our organising work. So it will in time, but if instead of merely refusing financial assistance to our converts, we were, on the other hand, to demand it from them, we certainly should not lessen the difficulty of launching our movement among the farmers of Ireland. Some of our critics denounced the expenditure of so much money for which, in their opinion, there was nothing to[Footnote: The chief donors belong to the class of philanthropists who do not care to advertise their beneficence. I, therefore, respect their wishes and withhold their names.]
The movement has survived all these criticisms. The lack of moral and of financial support which retarded its progress in the early years, has been so far surmounted. The movement may now, I think, appeal for further help as one that has justified its existence. The opinion that it has done so is not held only by those who are engaged in promoting it, nor by Irish observers alone. The efforts of the Irish farmers so to reorganise their industry that they may hopefully approach the solution of the problems of rural life are being watched by economists and administrators abroad. Enquirers have come to Ireland during the last two years from Germany, France, Canada, the United States, India, South Africa, Cyprus and the West Indies, having been drawn here by the desire to understand the combination of economic and human reform. It was not alone the economic advantages of the movement which interested them, but the way in which the organisation at the same time acted upon the character and awoke those forces of self-help and comradeship in which lies the surety of any enduring national prosperity. A native governor from a famine district in the Madras Presidency, who, perhaps, better
It is not surprising that the facts which I have cited should be interesting to the honest inquirer. A summary of actual achievement will show that this movement has spread all over Ireland, that its principle of organised self-help has been universally accepted, and that nothing but time and the necessary funds are required by its promoters to give it, within the range of its applicability, general effect. It is no exaggeration to say that there
I would further give it as my opinion, whatever it may
[Footnote: I recall an occasion when the Vice-President of the I.A.O.S. (a Nationalist in politics and a Jesuit priest), who has been ever ready to lend a hand as volunteer organiser when the prior claims of his religious and educational duties allowed, found himself before an audience which he was informed, when he came to the meeting, consisted mainly of Orangemen. He began his address by referring to the new and somewhat strange environment into which he had drifted. He did not, however, see why this circumstance should lead to any misunderstanding between himself and his audience. He had never been able to understand what a battle fought upon a famous Irish river two centuries ago had got to do with the practical issues of to-day which he had come to discuss. The dispute in question was, after all, between a Scotchman and a Dutchman, and if it had not yet been decided, they might be left to settle it themselvesthat is if too great a gulf did not separate them !]
I cannot conclude the story of this movement without paying a brief tribute of respect and gratitude to those true patriots who have borne the daily burden of the