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VICTORIA  UNIVERSITY  LIBRARY 


SHELF  NUMBER 


jACKMAN 


\   STUDIA 


SOURCE:    The  Friendly  Gift 

of  ' 

Professor  W.  T.  Jackman 

Department  of  Political  Economy 

University  of  Toronto 

1915-1941 


RURAL  RECONSTRUCTION 
IN  IRELAND 


RURA. 


RECONS'  RUC     ION 


N    RELAN D 


A  RECORD  OF 
CO-OPERATIVE  ORGANIZATION 

BY 
LIONEL  SMITH-GORDON,  M.A.  (OxoN.) 

LIBRARIAN,    CO-OPERATIVE    REFERENCE    LIBRARY; 

ASSISTANT  SECRETARY,    IRISH  AGRICULTURAL 

ORGANIZATION    SOCIETY 

AND 

LAURENCE  C.  STAPLES,  A.M. 

SOMETIME    PARKER    TRAVELING    FELLOW, 
HARVARD    UNIVERSITY 

WITH  PREFACE  BY 

GEORGE  W.  RUSSELL  ("A.E.") 


LONDON: 

P.  S.  KING  &  SON,  LTD. 

UNITED  STATES:  YALE  UNIVERSITY  PRESS,  NEW  HAVEN 
MDCCCCXIX 


V 


PREFACE 

THIS  volume  contains  the  most  complete  and  accurate  history  of 
a  movement  which  has  come  to  be  of  the  highest  importance  to 
Ireland.  It  has  in  it  the  promise  of  a  more  real  unity  among 
Irish  people  than  has  before  seemed  possible.  The  unity  of  a  people 
may  be  brought  about  by  acceptance  of  common  religious,  cul- 
tural, or  political  ideals,  but  it  is  doubtful  whether  that  unity  can 
be  made  real  by  any  of  these  unless  at  the  same  time  there  is  an 
identity  of  economic  interest  among  the  majority  of  the  citizens. 
Without  this  identity  of  economic  interest  made  obvious  to  the 
average  man  the  unity  is  without  depth.  The  forces  of  the  material 
world  are  more  powerful  on  their  own  plane  than  the  forces  of 
light,  and  are  continually  thrusting  into  a  kind  of  powerless  pre- 
eminence the  religious,  cultural,  and  political  ideals  ostensibly 
ruling  the  minds  of  men.  The  material  forces  are  stronger  on  their 
own  plane,  but  are  not  by  their  nature  antagonistic  to  spiritual 
forces.  The  need  of  the  body  to  be  fed,  clothed  and  housed  is  a 
need  which  for  the  vast  majority  pushes  aside  all  cultural  ideals 
until  it  is  first  satisfied.  The  satisfaction  of  that  need  is  the  motive 
prompting  all  economic  organization,  and  by  virtue  of  that  neces- 
sity which  brings  them  into  being  they  war  successfully  with 
religion  and  culture  where  these  do  not  afford  practical  solutions 
of  the  economic  problems  of  the  ordinary  man.  The  body  of  man 
is  the  most  egoistic  of  all  things,  and  in  winning  satisfaction  for 
its  desires  its  first  natural  manifestation  is  by  way  of  economic 
individualism,  and  every  man  is  for  himself  and  his  family.  Society 
so  constituted  becomes  full  of  petty  antagonisms  and  is  the  very 
antithesis  in  practice  of  those  high  spiritual  principles  which  are 
everywhere  theoretically  accepted  and  which  aim  at  the  subordi- 

5 


6  PREFACE 

nation  of  the  personal  to  the  natural  and  an  orchestration  of 
human  activity  for  the  common  good.  These  ideals  so  thrust  aside 
come  at  last  to  be  regarded  cynically  as  fitting  for  Paradise,  but 
very  unsuitable  for  Earth.  Nothing  could  be  more  hopeful  for  the 
triumph  over  the  minds  of  men  of  spiritual  ideals  than  a  move- 
ment which  aims  at  superseding  individualism  in  the  economic 
sphere  by  co-operation.  It  may  seem  at  first  thought  incongruous 
to  associate  the  material  activities  described  in  this  volume  with 
anything  spiritual,  but  if  we  reflect  a  little  we  will  find  it  is  not  so. 
The  great  religions  had  their  origin  in  a  descent  from  Heaven  to 
Earth  and  the  incarnation  in  bodily  form  of  a  ray  from  the  Divine 
mind,  and  spiritual  and  cultural  ideas,  if  they  are  to  exist  as  real 
power,  must  in  like  manner  descend  and  clothe  themselves  in  a 
material  form  and  distribute  the  loaves  and  fishes  to  the  multi- 
tude. The  idea  of  nationality  is  a  cultural  idea,  but  a  man  very 
soon  becomes  cynical  about  nationality  in  practice  if  his  neighbor 
or  his  employer  accepting  the  same  national  ideals  do  in  fact 
relegate  him  to  poverty  in  the  pursuit  of  their  own  interests.  The 
co-operative  movement  in  large  measure  binds  together  the 
economic  interests  of  Irishmen,  so  that  purchase,  manufacture 
and  sale  become  less  and  less  personal  enterprises  and  more  and 
more  communal  or  national  activities.  It  illustrates  in  a  practical 
way  the  truth  that  the  personal  and  economic  interests  of  the 
majority  are  served  best  by  their  incorporation  in  communal  enter- 
prises. So  the  mind  of  the  citizen  is  predisposed  to  subordinate 
his  own  interests  and  to  identify  them  with  the  interests  of  the 
nation.  I  believe  that  whatever  may  be  the  temporary  strength  of 
other  movements  in  Ireland,  the  co-operative  movement,  dealing 
as  it  does  with  the  daily  lives  of  men,  must  finally  have  an 
influence  greater  than  any  other  in  its  effect  upon  the  character 
of  the  Irish  nation.  It  occupies  itself  with  things  men  must  do 
under  whatever  government  they  exist,  whatever  religion  they 
profess,  whatever  cultural  interests  they  may  have;  and  because 
it  deals  with  the  permanent  human  occupations  the  principles 


PREFACE  7 

accepted  in  its  organizations  must  affect  national  character  in  the 
long  run  most  powerfully.  I  emphasize  these  things  more  than  the 
very  great  economic  advantages  conferred  on  farmers  and  towns- 
men by  co-operative  effort  because  that  has  been  done  admirably 
by  the  authors  of  this  book.  Ireland  to-day  is  in  a  very  disturbed 
condition  when  many  people  despair  of  its  future  under  any  form 
of  government  which  may  be  established,  and  it  may  cheer  those 
who  are  despairing  and  increase  the  hopes  of  those  who  have  faith 
to  have  their  attention  called  to  a  movement  so  practical,  so  con- 
ciliatory in  its  effects,  and  which  is  growing  so  rapidly  that  no 
county  in  Ireland  is  without  its  thousands  of  adherents.  Before 
another  generation  has  arisen  I  believe  this  movement  will  have 
made  a  complete  conquest  of  the  Irish  mind.  Membership  of 
co-operative  societies  is  a  practical  education  in  economics  fitting 
men  for  public  service,  and  by  its  principles  it  fosters  the  spirit  of 
citizenship.  When  the  fierce  passions  of  the  hour  have  foamed 
themselves  away  I  am  convinced  that  this  movement  will  come  to 
its  own,  and  its  principles  of  toleration  and  comradeship  in  work 
will  become  the  dominant  factors  in  national  life. 

"A.  E." 


AUTHORS'  NOTE  AND  DEDICATION 

THIS  book  was  of  necessity  written  under  conditions  of  unusual 
difficulty  consequent  on  a  state  of  war.  We  are  fully  aware  that 
it  has  suffered  thereby,  and  aware  also  that  the  same  conditions 
are  most  unfavorable  to  its  introduction  to  the  public.  We  know 
that  people  are  naturally  averse  at  the  present  time  from  the 
consideration  of  any  subject  not  actually  and  directly  connected 
with  war,  and  that  those  who  realize  that  the  subject  of  this  book 
is  so  connected  are  few  and  far  between. 

Yet  we  venture  to  hope  that  a  realization  of  the  penalties  for 
the  neglect  of  agriculture  and  an  understanding  that  organization 
lies  at  the  basis  of  all  successful  agricultural  effort  are  now  spring- 
ing up.  If  that  be  the  case  we  believe  that,  whatever  the  literary 
defects  of  our  work,  it  will  introduce  readers  to  an  accurate  study 
of  a  movement  which  has  been  based  for  twenty-five  years  upon 
this  realization  and  understanding.  We  are  assured  that  if  the 
public  once  grasps  the  underlying  principle  of  agricultural 
co-operation  we  shall  have  moved  a  very  long  way  forward 
towards  seeing  at  least  one  of  our  industries  likely  to  be  improved 
by  the  process  of  reconstruction.  At  present  British  governmental 
policy — unlike  that  of  practically  every  other  nation — is  either 
thoroughly  ignorant  of,  or  actively  hostile  towards,  the  associa- 
tive principle  which  forms  the  keynote  of  the  successful  work  we 
describe.  Until  this  is  altered  the  agriculture  of  these  islands,  no 
matter  how  much  be  done  towards  either  persuasion  or  compul- 
sion, will  remain  a  mockery  for  the  nations. 

If  we  may  permit  ourselves  a  brief  personal  note  we  would  say 
that  our  collaboration — between  an  Irishman  and  an  American, 
each  of  whom  has  enjoyed  a  considerable  period  in  the  country 

9 


io      AUTHOR'S  NOTE  AND  DEDICATION 

of  the  other — was  undertaken  solely  because  we  had  each  made 
up  our  minds  to  write  this  book  before  we  ever  met,  and  we 
thought  it  the  part  of  discretion  to  contribute,  the  one  his  first- 
hand knowledge  and  experience,  the  other  his  fresh  observation 
and  impartiality,  to  a  common  effort,  rather  than  to  enter  upon 
a  competition  which  could  be  useful  neither  to  ourselves  nor  to 
our  readers.  One  of  us  has  accepted  official  position  with  the 
I.A.O.S.  since  the  bulk  of  this  book  was  written,  and  he  is  con- 
scious that  there  are  parts  which  could  not  have  been  written  so 
freely  had  this  appointment  preceded  their  writing;  we  wish  it 
to  be  clearly  understood  that  the  chapters  dealing  with  that  body 
have  no  pretensions  to  official  authority. 

Finally,  we  would  say  that  we  have  deliberately  resisted  the 
temptation  to  strive  at  any  improvement  upon  the  straightforward 
record  of  mere  fact.  The  co-operative  movement  in  Ireland  admits 
of  a  glowing  treatment  in  which  its  real  romance  and  its  spiritual 
appeal  may  be  made  to  shine  out.  We  are  too  conscious  of  our 
limitations  as  craftsmen  on  the  one  hand,  and  of  the  crying  need 
for  a  more  prosaic  record  on  the  other,  to  attempt  this  task. 

The  book  must  stand  or  fall,  not  by  the  merits  or  defects  of  its 
authorship,  but  by  the  value  of  the  work  it  records,  and  of  this 
we  have  little  doubt. 

We  dedicate  it  to  those  Irishmen,  "not  followers  of  tradition," 
who  are  content  in  times  of  earthquake  to  lay  the  foundations 
on  which  they  themselves  may  never  build — who  neither  heed 
the  danger  of  the  falling  edifice  nor  seek  to  add  to  it  of  their  own 
fancy  nor  stay  to  mock  at  those  who  built  it,  but  go  on  silently, 
patiently,  with  pity  and  with  hope,  at  their  own  appointed  task. 
We  find  these  men's  work  recorded  in  this  book,  and  chief  among 
them  we  read  the  names  of  Sir  Horace  Plunkett,  the  inspiration, 
and  Mr.  Anderson,  the  mainspring,  of  the  co-operative  movement. 

LIONEL  SMITH-GORDON 
Dublin,  1917.  LAURENCE  C.  STAPLES 


CONTENTS 

PAGE 

CHAPTER  I:  ECONOMIC  AND  SOCIAL  CONDITIONS  15 

Outlines  of  Irish  history  :  Occupational  statistics  :  Natural 
resources  :  Land  system  :  Ignorance  of  agriculture  :  Emigra- 
tion :  Home  life  :  Obstacles  to  community  life  :  Political 
troubles  :  Education. 

CHAPTER  II:  LAND  LEGISLATION  IN  IRELAND  34 

Deasy  Act  :  Act  of  1870  :  Bessborough  Commission  :  The 
three  F's  :  Tenant  proprietorship,  1869  and  1885  :  Acts  of 
1891  and  1896  :  Dunraven  Treaty  :  Acts  of  1903  and  1909  : 
Results  :  The  Congested  Districts  Board  and  its  work. 

CHAPTER  III:  EARLY  HISTORY  OF  THE  IRISH  CO- 
OPERATIVE MOVEMENT  50 
Previous  experiments  :  The  Co-operative  Union  :  Mr.  Gray 
and  Sir  Horace  Plunkett  :  Doneraile  :  Creameries  :  Mr. 
Anderson  appointed  :  Formation  of  the  I.A.O.S.  :  Obstacles 
to  the  movement  :  Sir  Horace's  personality. 

CHAPTER  IV:  PRINCIPLES  AND  IDEALS  OF  THE  IRISH 

CO-OPERATIVE  MOVEMENT  66 

A  definite  practical  scheme  :  The  Rochdale  principle  :  Irish 
farmers  need  combination  :  Methods  of  combination  :  Defini- 
tion of  co-operative  society  :  Its  structure  :  Its  aims  :  Impor- 
tance of  the  local  unit  :  Community  organization. 

CHAPTER  V:  THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS     77 

The  first  years  :  Aims  of  the  society  :  Its  methods  of  work  : 
The  organizers  :  Audit  department  :  Relations  with  the 
State  :  Democratic  machinery  :  Decentralization  :  The  Irish 
Homestead  :  The  United  Irishwomen  :  The  Co-operative 
Reference  Library. 

II 


12  CONTENTS 

PAGE 

CHAPTER  VI:  THE  I.A.O.S.:  ITS  FINANCES  95 

Financial  struggles  :  The  D. A.T.I.  :  The  Development  Com- 
mission grant  :  Affiliation  fees  and  subscriptions  :  Reasons  for 
weakness  :  Possible  remedies. 

CHAPTER  VII:  THE  CREAMERIES  106 

Revolution  in  butter-making  :  Causes  and  effects  :  The 
Danish  example  :  Form  of  co-operative  creameries  :  The  bind- 
ing rule  :  Auxiliaries  :  Control  :  Method  of  payment  : 
"Profits"  :  Capital  :  Subsidiary  business,  milling,  etc.  :  Suc- 
cess of  the  system  :  The  Agency  Society,  history,  criticism  and 
suggestions  :  The  Butter  Control  brand  :  Winter  dairying  : 
Continuous  cropping  :  Cow-testing  :  Services  of  the  I.A.O.S. 

CHAPTER  VIII:  AGRICULTURAL  SOCIETIES  130 

Early  conditions  :  The  "gombeen-man"  :  Advantages  of  co- 
operation :  Form,  finance,  methods  :  Possibilities  of  develop- 
ment :  Collective  sale  :  General  purpose  societies  :  Implement 
societies  :  Economic  results  :  The  Wholesale  Society,  history 
and  success  :  Relations  with  industrial  societies  :  The  credit 
difficulty. 

CHAPTER  IX:  THE  CREDIT  SOCIETIES  148 

Early  conditions  :  Credit  facilities  :  The  "gombeen-man"  and 
the  money-lender  :  The  trust  auction  :  The  Loan  Fund 
Board  :  The  Raiffeisen  model  :  Sources  of  capital  :  State 
loans  :  The  loans  withdrawn  :  Unlimited  liability  :  Its  draw- 
backs :  History  of  the  societies  :  Their  rapid  growth  :  The 
appearance  of  defects  :  Suggestions  for  improvements  :  The 
Central  Co-operative  Credit  Society  :  The  Departmental  Com- 
mittee on  Credit. 

CHAPTER  X:  MISCELLANEOUS  SOCIETIES  173 

Their  importance  :  Eggs  and  poultry  :  Flax  :  Beekeeping  : 
Live  stock  :  Bacon  factories  :  Wexford  Meat  Society  :  Co- 
operative wheat-growing  :  Fishing  :  Insurance  :  Lime- 
burning. 


CONTENTS  13 

PAGE 

CHAPTER  XI:  HOME  INDUSTRIES  192 

Argument  for  home  industries  :  The  market  problem  :  The 
Irish  Lace  Depot  :  The  C.D.B.  and  lace  :  The  I.A.O.S.  : 
Decline  of  the  lace  industry  :  The  Dalkey  Co-operative  Em- 
broidery Society  :  Sweating  in  the  linen  industry  :  Hand- 
knitting  :  Homespuns  :  Gweedore  :  Miscellaneous  :  Co- 
operation and  home  industries  :  Obstacles  to  development. 

CHAPTER  XII:  THE  DEPARTMENT  OF  AGRICULTURE 

AND  TECHNICAL  INSTRUCTION  210 

Technical  education  :  The  Recess  Committee  :  The  Depart- 
ment established  :  Its  constitution  :  Democratic  control  : 
Funds  :  Activities  :  Co-ordinated  work  with  the  I.A.O.S.  : 
The  principle  vindicated  :  The  change  of  policy  :  Attitude  of 
the  Nationalist  Party  :  Cleavage  with  the  I.A.O.S.  :  Prosperity 
retarded. 

CHAPTER  XIII:  INDUSTRIAL  CO-OPERATION  AND  ITS 

RELATION  TO  THE  AGRICULTURAL  MOVEMENT  224 
The  controversy  with  the  C.W.S.  :  Industrial  co-operation  in 
Ireland,  history  and  results  :  Unsuitability  to  conditions  :  The 
Irish  Co-operative  Conference  Association  :  Suggestions  for 
joint  working  :  Intertrading  through  the  wholesale  societies  : 
A  joint  committee  needed. 

CHAPTER  XIV:  THE  ECONOMIC  RESULT  OF  THE  CO- 
OPERATIVE MOVEMENT  243 
Improvement  of  conditions  :  Emigration  checked  :  Statistics 
of  importance  :  Businesslike  organization  :  Duffusion  of 
wealth  :  Position  of  the  laborer  :  Honest  trading  encouraged  : 
New  industries  and  employment  :  Latent  business  capacity  : 
Position  of  employees. 

CHAPTER  XV:  THE  SOCIAL  AND  EDUCATIONAL  RE- 
SULTS OF  THE  CO-OPERATIVE  MOVEMENT  259 
Business  education  of  farmers  :  Sense  of  citizenship  :  Differ- 
ences of  religion  and  politics  bridged  over  :  Community  life  : 
Co-operators  look  to  the  future  :  The  Templecrone  Society  : 
History  and  results. 


14  CONTENTS 

PAGE 

CHAPTER  XVI:  THE  FUTURE  DEVELOPMENT  OF  THE 

MOVEMENT  274 

Success  spiritual  more  than  material  :  Theory  and  practice  : 
Detailed  suggestions  :  The  I.A.O.S.  as  a  democratic  body  : 
Necessity  for  freedom  :  Difficulties  of  State  aid  :  The  trade- 
union  policy  for  farmers  :  Political  action  :  Educational  work 
needed  :  Difficulties  in  the  way  :  The  call  to  young  Irishmen. 


RURAL  RECONSTRUCTION 
IN  IRELAND 

CHAPTER  I 
ECONOMIC  AND  SOCIAL  CONDITIONS 

THE  co-operative  movement  in  Ireland,  which  has  attracted 
attention  throughout  the  world,  is  a  practical  attempt  to  deal 
with  some  of  the  more  fundamental  Irish  problems.  It  is  con- 
cerned primarily  with  the  economic  welfare  of  the  country,  and 
its  anticipated  social  and  moral  effects  are  dependent  upon  an 
improvement  in  material  conditions.  In  comparison,  "THE  IRISH 
PROBLEM,"  capitalized  and  italicized  by  the  strenuous  efforts  of 
the  professional  politicians,  sinks  into  a  secondary  position.  The 
real  problem  is  one  of  poverty;  not  only  economic  poverty,  but 
also  a  poverty  of  industrial  character  and  of  social  life.  It  is  not 
peculiar  to  Ireland,  for  other  countries  have  faced  similar  condi- 
tions. The  combination  of  unfortunate  circumstances  may  be 
different  and  extreme,  but  the  underlying  elements  are  the  same. 
On  the  truth  of  this  statement  depends  the  value  of  the  co- 
operative movement  as  a  general  method  of  improving  economic 
conditions,  not  in  Ireland  alone,  but  in  other  countries  where 
similar  problems  occur  in  different  surroundings.  That  it  has  such 
a  value  is  suggested  by  the  number  of  inquirers  who  find  their 
way  to  its  headquarters  at  the  Plunkett  House.  A  movement 
which  has  been  carried  on  without  ostentation  for  the  benefit  of 
one  country  alone  has  attracted  attention,  which  it  did  not  seek 
and  which  seems  out  of  proportion  to  its  practical  results,  from 

15 


1 6         RURAL  RECONSTRUCTION  IN  IRELAND 

social  reformers  in  other  countries  simply  because  they  realized 
that  the  difficulties  and  handicaps  which  it  had  to  overcome 
embraced  almost  all  those  which  could  arise  in  any  country.  It 
is  our  task  to  show  what  these  difficulties  have  been,  and  to  do 
this  we  must  consider  briefly  the  economic  and  social  environment 
into  which  this  constructive  programme  was  introduced.  Only 
by  such  a  preliminary  study  can  we  emphasize  the  significance 
of  the  work  as  a  comprehensive  measure  of  rural  reconstruction. 

From  a  past  which  embodies  many  glorious  records,  Ireland 
has  received  a  heritage  of  wrongs  and  evils  which  largely  explains 
the  depressed  and  backward  conditions  of  the  late  nineteenth 
century.  It  is  not  our  purpose  to  dwell  upon  history,  for  the 
co-operative  movement  looks  to  the  future,  constructing  anew 
instead  of  reveling  in  the  deeds  and  injuries  of  bygone  genera- 
tions. And  yet  it  would  be  impossible  to  understand  the  economic 
and  social  situation  in  Ireland,  and  so  the  true  significance  of  the 
co-operative  movement,  without  a  glance  at  the  past. 

The  general  outlines  of  Irish  history  are  well  known.  Owing 
to  its  isolated  geographical  position,  Ireland  was  left  undisturbed 
by  the  Roman  conquests,  and  achieved  independently  a  com- 
paratively high  stage  of  civilization.  Wars  between  the  various 
kingdoms  were  its  curse,  however,  and  ultimately  led  to  the 
destruction  of  its  independence.  For  in  1169,  at  the  invitation  of 
Dermot  MacMurrough,  King  of  Leinster,  the  English  adventurer, 
Richard,  Earl  of  Pembroke,  came  to  Ireland  to  assist  in  a  war 
against  the  Ard-Righ,  or  High  King  of  Ireland.  Richard  was 
shortly  followed  by  King  Henry  II,  who  secured  recognition  as 
overlord,  and  although  he  departed  again  forthwith,  this  event 
determined  the  direction  of  later  Irish  history.  The  invasions 
continued,  and  became  more  and  more  comprehensive,  though 
never  complete.  As  the  various  Irish  chieftains  were  defeated, 
their  lands  were  confiscated  and  distributed  among  English  ad- 
venturers. For  more  than  five  centuries  the  history  of  the  country 
is  a  long  and  distressful  story  of  revolt  and  conquest  and  revolt. 


ECONOMIC  AND  SOCIAL  CONDITIONS  17 

In  order  to  strengthen  their  position,  the  English  brought  in  a 
considerable  number  of  settlers,  but  only  in  Ulster  were  these 
sufficient  to  dominate.  There  are  three  distinct  ways  of  govern- 
ing a  tributary  State:  first,  by  the  extermination  of  the  original 
inhabitants;  second,  by  their  complete  subjugation;  and,  third, 
by  recognizing  their  independence  under  the  mother  country. 
None  of  these  policies  was  completely  carried  out  in  respect  to 
Ireland,  although  all  of  them  were  to  a  certain  extent  applied. 
The  result  has  been  a  long  series  of  injuries  and  recriminations, 
which  have  done  much  to  prevent  the  development  of  a  sound 
economic  and  social  life. 

Among  the  injuries  which  Ireland  suffered  at  the  hands  of  her 
alien  ruler,  the  most  apparent  was  that  which  so  long  and  seriously 
crippled  her  manufacturing  industry  and  commerce.  During  the 
latter  half  of  the  seventeenth  century,  the  English,  in  accordance 
with  the  Mercantilist  theories  then  current  throughout  Europe, 
enacted  a  series  of  restrictive  laws  which  nipped  in  the  bud  a 
promising  and  well-balanced  industrial  development.  The  rapid 
expansion  of  Irish  industry  in  the  comparatively  settled  condi- 
tions after  the  Cromwellian  disturbances  roused  the  jealousy  of 
English  manufacturers.  Their  antagonism  was  embittered  by  all 
the  prevailing  religious  and  political  differences.  They  demanded 
protection  against  the  pauper  labor  of  Ireland.  The  early  efforts 
at  such  protection  in  the  Navigation  Act  of  1663,  and  in  an  Act 
(humorously  entitled  "for  the  encouragement  of  trade")  dealing 
with  the  flourishing  cattle  export,  had  proved  a  boomerang.  But 
in  regard  to  the  woolen  industry  which  the  Act  of  1663  had  en- 
couraged by  increasing  the  production  of  Irish  wool,  this  policy 
was  more  successful.  Woolen  manufacture  had  progressed  so 
rapidly  that  by  the  end  of  the  seventeenth  century  over  fifty 
thousand  families  throughout  Ireland  were  engaged  in  it.  But 
the  Acts  of  the  English-dominated  Irish  Parliament  in  1698,  im- 
posing a  prohibitive  duty  on  exports  of  cloth,  and  more  especially 
of  the  English  Parliament  the  year  following,  "prohibiting  per- 


1 8         RURAL  RECONSTRUCTION  IN  IRELAND 

petually  the  exportation  from  Ireland  of  all  goods  made  or  mixed 
with  wool,"  had  an  immediately  deadening  effect.  Though  a 
smuggling  trade  continued  for  a  time — and  there  persists  to  this 
day  a  cottage  industry  in  the  North  and  West  of  Ireland  which 
is  the  surviving  remnant  of  an  erstwhile  prosperity — a  virtual 
deathblow  had  been  given.  Other  industries  suffered  similar  re- 
strictions. Nor  did  the  withdrawal  of  this  meddling  legislation 
toward  the  end  of  the  eighteenth  century  promote  more  than 
temporary  developments.  The  paralyzing  Act  of  Union  in  1800, 
closely  followed  by  the  Industrial  Revolution,  proved  an  equally 
effective  if  not  so  openly  malicious  hindrance  to  development. 
Since  1824,  when  complete  free  trade  between  England  and  Ire- 
land was  attained,  there  has  been  a  slow  but  steady  growth  of 
manufacturing  industry.  But  even  though  these  industries  now 
play  an  important  part  in  the  economic  life  of  the  country,  their 
tardy  development,  for  which  the  activities  of  a  hostile  legislature 
were  almost  wholly  responsible,  reacted  seriously  on  agricultural 
development. 

The  occupational  statistics  of  the  country,  inexact  as  they  may 
be,  throw  an  interesting  light  on  these  conditions.  While  there 
has  been  since  the  Famine  of  1846  a  slow  but  steady  decrease 
in  the  proportion  of  the  population  employed  on  the  land,  a 
phenomenon  not  limited  to  Ireland,  there  remained  in  1891,  the 
census  year  which  we  shall  take  as  closest  to  the  inauguration 
of  the  co-operative  movement,  936,759  persons  who  were  reported 
as  directly  employed  in  agriculture,  out  of  a  total  population  of 
4,704,750.  To  these  must  be  added  118,980  general  laborers,  the 
greater  part  of  whom  were  on  the  land.  Manufacturing  industry 
claimed  537,430;  commercial  pursuits,  83,173;  domestic  service, 
255,144;  and  the  professions,  214,243.  Thus  the  proportion  in 
agriculture  of  the  definitely  employed  population  amounted  to 
about  50  per  cent.,  in  comparison  with  19  per  cent,  in  England, 
33  per  cent,  in  the  United  States,  and  41  per  cent  in  Germany. 
Manufacturing  industry  employed  only  half  that  proportion. 


ECONOMIC  AND  SOCIAL  CONDITIONS  19 

Yet  agriculture,  the  basis  of  the  economic  life  of  the  nation,  was 
so  unorganized,  so  undeveloped,  that  it  failed  to  meet  this  situa- 
tion. In  the  failure  of  her  basic  industry  lies  the  fundamental 
cause  of  the  poverty  and  backwardness  of  Ireland. 

As  far  as  natural  resources  are  concerned,  Ireland  might  easily 
have  become  a  prosperous  agricultural  country.  The  fifteen  and 
a  half  million  acres  of  arable  land  are  of  more  than  ordinary 
fertility.  Competent  agricultural  observers  from  Arthur  Young 
to  those  of  our  own  day  have  agreed  that  its  potential  produc- 
tivity is  hardly  equaled  on  the  Continent  of  Europe.  Sir  Robert 
Kane  wrote  that  from  the  produce  of  the  soil  a  population  of 
eighteen  million  might  easily  be  supported.  The  broad  green 
stretches  of  Meath  and  Kildare,  the  Golden  Vale  of  Tipperary, 
and  even  the  more  rocky  but  carefully  cultivated  soil  of  Ulster, 
against  which  it  is  only  necessary  to  put  the  rock  and  bog  of  the 
ragged  western  seaboard,  indicate  a  bounty  of  Nature  of  which 
few  other  countries  can  boast.  A  mild  climate  and  an  abundance 
of  rainfall  produce  a  luxuriant  foliage. 

Yet  these  splendid  natural  resources  have  never  been  properly 
utilized.  The  necessary  human  elements  of  the  situation  have  been 
lacking,  and  in  place  of  a  promised  prosperity  there  has  been  the 
greatest  poverty  and  distress.  Here,  also,  historical  events  have 
been  of  primary  importance.  Following  the  various  English  con- 
quests and  confiscations,  the  original  Celtic  land  system  of 
communal  ownership  with  individual  occupation  was  set  aside. 
For  it  was  substituted  a  system  which  had  nothing  to  recommend 
it  except  its  success  under  wholly  different  conditions  in  England. 
The  adjustments  to  local  needs  which  might  have  made  it  equally 
successful  in  Ireland  were  never  applied.  The  land,  divided  among 
the  conquerors  as  the  spoil  of  victory,  became  the  property  of 
a  comparatively  small  number  of  landlords.  The  original  Irish 
owners,  except  so  far  as  they  were  exterminated  or  driven  from 
their  homes  altogether,  remained  as  occupiers  under  a  system  of 
yearly  rents  or  leases.  Since  no  manufacturing  industry  existed, 


20         RURAL  RECONSTRUCTION  IN  IRELAND 

there  was  no  alternative  to  the  land  as  a  source  of  livelihood. 
The  natural  increase  of  the  population  flooded  back  upon  the 
fields.  In  this  situation,  the  alien  landlords,  and  indeed  those  of 
Irish  race  who  were  able  to  secure  holdings,  were  not  slow  to  take 
advantage  of  their  monopoly  position.  Rents  rose  continuously, 
depending,  not  on  the  quality  of  the  soil,  but  on  the  quantity  of 
the  population  and  the  rapacity  of  the  landlord.  Wherever  the 
efforts  of  the  tenant  exacted  a  greater  productivity  from  the  soil, 
wherever  subsidiary  industries  existed,  the  increased  income  was 
at  once  absorbed  by  the  increase  in  rent.  All  above  the  very 
lowest  minimum  for  existence — and  the  low  standards  of  living 
in  Ireland  were  both  a  cause  and  a  result — was  claimed  by  the 
landlord  or  his  agents.  The  nefarious  class  of  middlemen  rent- 
collectors  prospered  quite  as  much  as  the  actual  owners.  In  a 
situation  in  which  governmental  interference  might  have  received 
considerable  justification,  a  complete  policy  of  laissez-faire, 
entailing  many  forms  of  abuse,  prevailed. 

This  rack-renting  was  rendered  more  serious  by  the  tendency 
to  use  a  large  proportion  of  the  land  for  grazing  purposes.  The 
Irish  climate  makes  the  production  of  grass  and  the  raising  of 
cattle  a  particularly  easy  and  remunerative  occupation.  Moreover, 
not  only  did  market  conditions  favor  this  use  of  the  land,  but 
also  the  exemption  of  pasture  from  ecclesiastical  tithes,  one  of 
the  nefarious  penal  laws  of  1735,  gave  artificial  encouragement 
to  the  tendency.  During  the  Napoleonic  wars,  the  high  prices  of 
corn  and  the  extension  of  the  franchise  to  405.  freeholders  brought 
much  land  back  into  cultivation.  But  the  movement  was  soon 
reversed  with  the  higher  prices  for  beef  and  the  drop  in  corn. 
As  a  result,  vast  stretches  of  deserted  prairie,  populated  only  by 
lazy  bullocks,  and  comprising  much  of  the  best  land  of  Ireland, 
covered  in  1891  more  than  two-thirds  of  the  arable  land  of  the 
country.  This  proportion  is  not  even  approached  in  any  other 
long-settled  country. 


ECONOMIC  AND  SOCIAL  CONDITIONS  21 

Obviously,  such  a  system  of  agriculture  was  most  unadapted 
for  the  support  of  a  large  population.  And,  moreover,  the  fact 
that  the  cattle  produced  were  shipped  on  the  hoof  for  fattening 
in  England  deprived  the  country,  not  only  of  the  most  remunera- 
tive stage  of  beef  production,  but  also  of  the  many  industries 
which  depend  on  the  by-products  of  beef.  Only  the  high  prices 
of  another  great  European  war,  and  indeed  the  compulsion  of 
governmental  authority,  have  succeeded  in  checking  the  tendency 
to  devote  an  even  greater  percentage  of  the  land  to  grazing. 

From  these  facts — the  absence  of  alternative  occupations, 
rack-rents,  and  the  devotion  of  a  large  proportion  of  the  land 
to  grazing — developed  an  extreme  subdivision  of  holdings.  As 
the  population  grew  and  the  increase  of  grazing  reduced  the  area 
available  for  cultivation,  the  obvious  solution  was  a  decrease  in 
the  size  of  the  individual  farm.  The  ancient  Brehon  custom  of 
gavelkind,  by  which  regular  redistributions  of  the  land  took  place, 
acted  as  a  precedent.  In  1845,  the  year  previous  to  the  Great 
Famine,  the  situation  was  at  its  worst.  The  population  had 
reached  a  maximum,  estimated  at  eight  and  a  half  millions,  for 
the  birth-rate  had  been  greatly  accelerated  by  the  prosperity  of 
the  Napoleonic  era.  On  the  other  hand,  the  fall  in  the  price  of 
corn  following  the  declaration  of  peace  in  1815  and  the  with- 
drawal of  the  405.  franchise  in  1829  had  inaugurated  a  period  of 
clearances  which  continually  reduced  the  amount  of  land  avail- 
able. But  even  after  the  tremendous  reduction  in  population 
which  occurred  before  the  end  of  the  century,  there  remained 
in  1891  many  uneconomic  holdings  or  deficit  farms.  It  is  impos- 
sible, of  course,  to  fix  accurately  the  size  of  the  economic  holding. 
Variations  in  quality  as  well  as  size  govern  the  amount  of  land 
which  is  necessary  for  the  support  of  the  ordinary  family  without 
employing  outside  labor.  Probably  valuation  is  a  better  test  than 
size.  But  fixing  fifteen  acres  as  the  dividing-point,  about  43  per 
cent,  of  Irish  farms  in  1891  did  not  exceed  that  size.  Of  these 


22          RURAL  RECONSTRUCTION  IN  IRELAND 

small  holdings  practically  a  half  were  of  five  acres  or  less.  Under 
such  conditions  no  profitable  form  of  agriculture  could  be 
practised. 

The  system  of  rack-rents,  with  coexisting  evils  of  grazing 
deserts  and  uneconomic  holdings,  was  not  the  only  handicap 
from  which  Irish  agriculture  suffered.  The  lack  of  security  of 
tenure  was  an  equally  important  reason  for  backward  conditions. 
A  large  proportion  of  the  tenants  held  their  land  on  a  yearly 
lease  and  might  be  summarily  dispossessed.  Longer  leases  existed, 
but  under  the  penal  laws  could  not  extend,  in  the  case  of  Catholics, 
beyond  thirty  years.  Rack-rents,  moreover,  kept  most  of  the 
tenants  perpetually  in  arrears.  At  any  time  the  owner  might  press 
for  the  rent,  and  when,  as  was  often  the  case,  it  was  not  forth- 
coming, could  proceed  to  eviction.  These  evictions,  which  took 
place  in  particularly  large  numbers  following  the  Great  Famine, 
were  a  most  important  factor  in  embittering  the  peasantry  against 
the  landlords.  An  increase  in  their  number,  such  as  occurred 
about  1880,  was  immediately  followed  by  an  increase  in  agrarian 
crime.  These  excesses,  many  of  which  were  carried  out  with 
frightful  brutality,  were  a  direct  result  of  this,  "the  greatest 
legalized  crime  which  humanity  has  ever  accomplished  against 
humanity." 

Since  the  tenant  enjoyed  no  security  of  tenure,  and  therefore 
had  no  permanent  interest  in  his  land,  his  only  aim  was  to  exploit 
its  resources  as  much  as  possible.  Irish  landlords  had  never 
accepted  the  obligation,  acknowledged  in  England,  of  financing 
permanent  improvements.  The  tenant  himself  did  not  have  the 
capital  to  invest;  the  uncertainty  of  his  tenure  did  not  encourage 
him  to  make  the  necessary  exertions;  he  could  claim  no  compen- 
sation for  improvements  which  he  did  make;  and  the  increased 
product  which  was  his  only  incentive  for  such  a  step  would  merely 
invite  an  increase  of  the  rent.  As  a  result,  no  permanent  improve- 
ments were  undertaken,  and  the  productivity  of  the  soil  pro- 
gressively deteriorated. 


ECONOMIC  AND  SOCIAL  CONDITIONS  23 

In  Ulster,  owing  to  the  recognition  of  a  custom  of  "tenant 
right/'  somewhat  better  conditions  prevailed.  The  holder  enjoyed 
a  comparative  fixity  of  tenure;  he  was  to  be  compensated  for 
any  improvements  which  he  undertook;  and  the  rents,  though 
periodically  revised,  were  never  pushed  to  a  competition  level. 
With  the  consent  of  the  landlord,  the  tenant  might  sell  his 
"right" — that  is,  his  interest  in  his  holding — to  another  farmer. 
While  this  system  undoubtedly  encouraged  more  careful  and 
scientific  cultivation,  the  evils  of  competition  were  only  trans- 
ferred to  the  sale  of  the  "right."  Its  great  superiority  over  the 
rack-rent  system,  however,  accounts  for  the  more  advanced 
position  of  agriculture  in  the  northern  counties. 

Under  conditions  in  which  sufficient  product  to  pay  the  rent 
and  to  maintain  the  family  at  a  minimum  standard  was  all  that 
was  required,  no  scientific  or  even  efficient  system  of  agriculture 
was  likely  to  develop.  Little  was  known  about  the  rotation  of 
crops,  and  few  farmers  understood  the  use  of  fertilizers,  particu- 
larly farmyard  manure.  Agencies  for  agricultural  education  were, 
as  we  shall  see,  almost  completely  lacking.  Thus  the  natural 
resources  of  the  soil  were  gradually  exhausted  by  wasteful 
methods.  The  extreme  productivity  of  the  potato,  cultivated  in 
"lazy  beds,"  encouraged  its  general  introduction  and  made  pos- 
sible a  rapid  increase  of  the  population.  The  failure  of  this  single 
crop  in  1846  and  succeeding  years  was  the  disastrous  culmination 
of  a  long-extended  policy  of  soil  exhaustion.  This  blackest  period 
of  a  dark  and  dismal  history,  when  in  five  years  the  population 
of  Ireland  shrank  from  almost  8,500,000  to  6,552,385,  losing 
1,240,737  by  emigration,  and  an  appalling  number  by  starvation 
and  famine  fever,  still  spreads  its  melancholy  shadow  over  the 
land.  In  the  terrible  years  of  the  Great  Famine,  Ireland  saw  a 
climax  of  the  evils  of  landlordism. 

If  confirmation  of  the  backward  conditions  of  agriculture  in 
Ireland  were  necessary,  the  figures  disclosed  by  the  Census  of 
Production  in  1908,  over  a  score  of  years  after  the  inauguration 


24         RURAL  RECONSTRUCTION  IN  IRELAND 

of  the  period  of  ameliorative  legislation,  and  hardly  less  of  co- 
operative history,  would  be  conclusive.  According  to  that  inquiry, 
the  total  value  of  the  agricultural  product  of  Ireland,  in  the 
creation  of  which  roughly  a  million  persons  were  employed, 
amounted  to  £45,570,000.  This  gives  an  average  per  capita 
product  of  £46,  in  comparison  with  £113  for  the  agriculturists  of 
England  and  Wales,  and  £109  in  Scotland.  Such  figures  admit  of 
only  one  conclusion.  Irish  agriculture,  on  which  the  livelihood  of 
the  great  mass  of  the  people  depended,  did  not  form  a  sound 
economic  basis  for  the  national  existence.  And  until  this  was 
changed,  no  other  efforts  for  the  reconstruction  of  the  country 
could  be  really  effective.  The  revival  of  manufacturing  industry 
might  prove  of  advantage,  but  few  would  wish  to  see  another 
Lancashire  reproduced  in  Ireland.  Agriculture,  first  and  foremost, 
must  be  the  concern  of  those  who  had  a  vision  of  the  Ireland 
that  might  be. 

The  economic  situation  we  have  outlined  has  been  largely 
responsible  for  the  disastrous  emigration  which  has  so  profoundly 
affected  the  recent  history  of  Ireland.  Beginning  in  a  small  way 
as  the  natural  outcome  of  the  opening  up  of  the  New  World,  and 
as  a  protest,  particularly  among  the  Protestants  of  Ulster,  against 
England's  economic  policy,  it  became  a  real  menace  at  the  time 
of  the  Great  Famine,  when  flight  to  America,  even  by  the  medium 
of  the  hideous  coffin-ships,  offered  the  only  alternative  to  lingering 
starvation  at  home.  Two  feelings  which  were  strong  in  the  minds 
of  the  original  emigrants — hatred  of  the  conditions  which  had 
driven  them  out,  and  loyalty  to  their  own  kin — led  them  to  seek 
every  opportunity  of  encouraging  and  helping  their  relations  and 
neighbors  to  follow  them  and  to  share  the  comparative  prosperity 
which  they  often  attained.  Thus  the  exodus,  begun  in  tragedy,  has 
continued  to  this  day  with  varying  degrees  of  intensity,  till  many 
an  Irish  boy  or  girl,  who  would  hesitate  about  changing  his  home 
from  one  county  of  Ireland  to  another,  has  come  to  look  upon 
the  journey  to  America  as  a  normal  incident  of  life,  or  even  as 


ECONOMIC  AND  SOCIAL  CONDITIONS  25 

that  voyage  of  which  all  peoples  have  dreamed,  to  the  "land 
beyond  the  sunset,"  the  "El  Dorado  of  the  West."  Boston,  Massa- 
chusetts, to  which  so  many  of  his  comrades  have  already  gone,  is 
much  more  real  to  the  Aran  islander  than  Galway,  hardly  twenty 
miles  away  at  the  head  of  the  Bay.  Thus  in  the  course  of  the 
period  from  May  i,  1851,  to  December  31,  1913,  there  had 
emigrated,  largely  to  the  United  States,  a  total  of  4,278,327  per- 
sons at  a  yearly  rate  varying  from  30.0  per  thousand  in  1852  to 
6.7  per  thousand  in  1912.  As  a  direct  result  the  population  of 
Ireland  has  decreased  from  over  eight  millions  in  1841  to  about 
four  and  half  millions  in  1911. 

The  loss  of  such  a  tremendous  number  of  people  is  in  itself 
a  great  injury  to  a  country,  though  in  the  case  of  Ireland,  as  we 
have  seen,  emigration  was  for  some  years  the  only  alternative 
to  starvation.  But  only  when  the  constitution  of  this  group  is 
considered  does  the  full  significance  of  the  exodus  become  clear. 
The  emigration  from  Ireland  was  not  a  movement  of  families, 
but  of  individuals.  Herein  lies  the  explanation  for  its  particularly 
harmful  effects.  Instead  of  merely  subtracting  a  certain  number 
of  units  of  average  value  to  the  community,  the  movement  meant 
the  loss  of  a  group  containing  an  abnormally  large  proportion  in 
the  productive  years  of  life.  Young  men  and  young  women  just 
at  the  age  when  they  were  most  capable  of  adding  to  the  pro- 
ductive capacity  of  the  country  were  chosen  as  the  representatives 
of  their  families  in  the  great  struggle  to  acquire  a  share  of  the 
fabled  riches  of  the  New  World.  Thus  the  population  remaining 
in  Ireland  includes  an  unnaturally  large  proportion  of  unpro- 
ductive units  imposing  an  extra  burden  on  the  economic  wealth 
of  the  country. 

Another  peculiar  characteristic  of  this  emigration  was  the  large 
proportion  of  females.  An  agricultural  community  such  as  Ire- 
land, where  even  the  men  often  found  an  insufficiency  of  work 
to  occupy  them,  can  seldom  employ  its  women  effectively.  Thus, 
whereas  in  most  emigrations  males  preponderate  heavily,  in  this 


26         RURAL  RECONSTRUCTION  IN  IRELAND 

case  almost  50  per  cent,  were  women.  In  certain  sections,  outside 
the  linen  manufacturing  districts  of  Ulster,  and  particularly  in 
Connacht,  the  proportion  is  even  larger.  Combined  with  the 
general  poverty,  this  fact  has  had  serious  effects  on  the  future  of 
the  race.  The  desire  to  seek  a  fortune  in  the  New  World  has 
outweighed  all  other  ambitions.  Thus  even  those  who  do  not  go 
away  postpone  marriage  until  late  in  life.  The  marriage-rate  in 
Ireland,  as  compared  with  15.8  in  England,  15.1  in  France,  is 
only  10.0.  As  a  natural  result,  the  birth-rate,  which  previous  to 
the  Famine  had  been  exceedingly  large,  has  progressively  de- 
creased throughout  the  latter  half  of  the  nineteenth  century. 
This  birth-rate,  the  lowest  in  Europe  with  the  exception  of  that 
of  France,  is  accompanied  by  a  rather  high  death-rate,  to  be 
explained  partly  by  the  large  proportion  of  elderly  persons  in 
the  population,  partly  by  the  ignorance  and  absence  of  public 
health  work  throughout  the  country.  For  this  reason  emigration, 
though  now  little  above  a  normal  movement,  still  results  in  an 
actual  diminution  of  the  population.  The  slight  excess  of  births 
over  deaths  is  more  than  balanced  by  the  present  rate  of  emi- 
gration. Even  if  this  movement  were  to  cease  altogether,  there- 
fore, no  rapid  or  large  increase  of  population  would  for  some  time 
be  possible. 

The  record  of  many  Irish  emigrants  in  countries  beyond  the 
seas  raises  further  questions  as  to  the  composition  of  the  group. 
Can  it  be  that  conditions  of  environment  have  so  completely 
changed  men  of  Irish  blood  as  to  make  them  active  and  energetic 
in  the  New  World  while  at  home  they  remain  lethargic  and  poor? 
Undoubtedly  the  new  start  has  meant  much.  But  in  addition  it 
must  be  realized  that  emigration,  involving  as  it  does  a  certain 
amount  of  energy,  initiative  and  courage,  has  selected  the  more 
efficient  and  enterprising  persons  in  the  country.  Many  of  the 
natural  leaders  who  might  have  been  a  potent  force  in  the  recon- 
struction of  the  nation  have  forsaken  the  home  country  and  gone 
to  create  the  life  of  the  New  World. 


ECONOMIC  AND  SOCIAL  CONDITIONS  27 

This  vicious  circle  of  economic  depression  and  emigration 
seriously  reacted  upon  the  social  life  and  character  of  the  people. 
A  deadening  melancholy  settled  upon  all  forms  of  community 
life,  created  by  poverty,  perpetuated  by  the  lack  of  leadership, 
and  aggravated  by  an  attempted  Anglicization.  No  longer  did  one 
hear  the  harp  or  the  pipes  or  the  fiddle  in  the  cottages,  or  see  the 
people  gathering  for  the  evening  ceilidhe.  The  various  customs 
which  had  brought  them  together  for  social  enjoyment  passed 
into  disuse.  The  color  and  the  spirit  which  dances  and  festivals 
and  story- tellings  had  brought  into  the  lives  of  the  young  people 
faded  away.  Instead,  the  healthy  spirit  of  abundant  life  turned 
to  less  innocent  pursuits.  In  many  a  small  Irish  town  the  public- 
house  became  by  lack  of  competition  the  centre  of  social  life  and 
inevitably  brought  in  its  train  a  squalid  atmosphere  which  con- 
cealed from  the  casual  visitor  and  too  often  even  from  the  people 
themselves  the  true  spirit  of  the  country.  Combined  as  it  usually 
was  with  a  general  business,  it  was  the  one  place  at  which  the 
people  met  frequently,  and  the  change,  after  the  purchase  of 
tea  or  sugar,  if  indeed  there  be  any  cash  at  all,  was  as  often 
returned  from  the  keg  as  from  the  till. 

The  dull  social  life  in  the  community  at  large  reflected  an 
equally  uninteresting  home  life.  As  the  towns  did  not  possess 
facilities  for  community  enjoyments,  so  many  Irish  cottages  did 
not  form  the  proper  environment  for  a  pleasant  home  life.  What 
decencies,  not  to  say  comforts,  were  possible  in  the  miserable 
huts,  built  of  mud  or  other  perishable  material,  containing  one 
room  with  possibly  a  single  window,  a  hole  in  the  straw  roof  in 
lieu  of  a  chimney,  and  no  floor  but  the  bare  earth?  Happily,  the 
number  of  cabins  of  this  class,  which  in  1841  had  reached  nearly 
500,000,  has  been  greatly  reduced,  by  1891  to  hardly  20,000. 
There  remained  in  that  year,  however,  over  300,000  of  the  next 
or  third  class,  which  still  represents  a  very  low  standard  of  living. 
In  such  surroundings,  a  happy  family  life  was  almost  impossible. 
The  husband  found  his  enjoyments  outside  the  home,  the  wife 


28         RURAL  RECONSTRUCTION  IN  IRELAND 

was  confined  to  its  dreary  and  narrow  walls.  The  woman  was 
thrown  into  the  background.  She  brought  the  husband  who  had 
been  chosen  for  her  a  dowry,  and  thereafter  settled  down  to  her 
normal  function  in  life.  But  because  she  had  only  a  very  meagre 
education,  and  because  the  decent  facilities  for  a  home  did  not 
exist,  even  in  her  own  sphere  she  did  her  work  very  badly.  Only 
by  the  regeneration  of  the  economic  life  of  the  country  could  the 
Irish  home  be  raised  to  the  position  to  which  the  fine  natural 
feelings  of  the  people  have  entitled  it. 

A  further  obstacle  to  the  development  of  a  complete  community 
life  lay  in  the  social  distinctions  which,  developed  as  they  largely 
were  from  the  economic  situation,  afterwards  did  much  to 
aggravate  its  seriousness.  Wherever  one  class  of  the  population 
is  exploited  in  the  interests  of  another,  there  inevitably  arises  an 
ever-menacing  antagonism.  The  alien  landlords,  who  in  many 
cases  looked  upon  their  estates  only  as  sources  of  revenue,  and 
who  spent  little  time  in  the  country,  never  enjoyed  the  sympathy 
and  respect  of  their  tenants.  Many  turned  over  their  estates  to 
middlemen,  whose  exploitations  were  even  more  severe.  The  few 
who  were  aware  of  their  obligations  suffered  for  the  abuses  of 
the  less  thoughtful  members  of  the  class.  At  the  other  extreme 
of  the  economic  order  were  the  original  Irish  holders,  having 
nothing  in  common  with  the  landlords  but  their  differences.  In 
this  class,  but  not  of  it,  were  the  shopkeepers  and  gombeen-men 
of  the  villages,  who  were  for  this  reason  more  inimical  than  the 
landlords  themselves.  In  their  pretended  sympathy  with  the 
peasantry,  they  had  acquired  the  leadership  of  the  class,  and 
were  thus  able  to  exploit  it  in  their  own  way.  The  people  were 
bound  to  them  in  a  virtual  slavery,  ever  in  debt  for  necessities 
supplied  or  credit  given.  Landlords  who  saw  their  holdings 
threatened  by  the  land  legislation  of  the  late  nineteenth  century 
declared  that  it  would  be  perfectly  easy  for  them  to  set  them- 
selves up  as  shopkeepers  in  the  villages,  and  that  within  a  genera- 
tion they  would  be  in  possession  of  their  lands  again.  Still  another 


ECONOMIC  AND  SOCIAL  CONDITIONS  29 

group,  the  agricultural  laborers,  occupied  an  even  lower  position 
in  the  economic  scale.  They  received  a  miserable  pittance  for 
their  labor,  and  were  correspondingly  inefficient  and  unskilled. 
Many  of  them  emigrated  to  England  and  Scotland  each  year  for 
the  harvests.  Economic  interests  thus  divided  the  Irish  popula- 
tion into  several  classes,  particularly  along  the  line  of  the  owner- 
ship or  non-ownership  of  land. 

This  division  was  accentuated  by  coincident  racial,  political 
and  religious  differences.  The  landlords  were  of  an  alien  race  and 
owed  their  position  to  the  forcible  dispossession  of  the  Irish 
holders.  Thrice  over  the  soil  of  Ireland  had  been  confiscated,  and 
the  latest  Cromwellian  landlords  were  the  most  hated  of  all. 
Moreover,  Ireland  has  always  remained  faithful  to  the  Catholic 
Church.  When  the  supremacy  of  the  Pope  was  denied  by  the 
English  king,  his  subjects  in  Ireland  refused  to  follow.  And 
despite  many  efforts  to  overcome  this  "perversity,"  their  loyalty 
has  been  unbending.  The  penal  laws  which  discouraged  the  pro- 
fession of  Catholicism  in  every  possible  manner,  which  made 
priests  of  that  Church  criminals,  and  hindered  the  activities  of 
its  professors  in  every  direction,  which  put  premiums  on  family 
disloyalty,  and  made  every  man  suspicious  of  his  neighbor,  only 
strengthened  their  devotion.  In  Ulster  the  Scottish  planters,  who 
formed  over  50  per  cent,  of  the  population,  held  as  strongly  to 
their  established  religion.  The  approximate  equality  of  the  num- 
bers professing  the  two  religions  aggravated  the  antagonism.  The 
ir religion  of  religious  bigotry  has  been  nowhere  more  clearly 
displayed.  Finally,  the  political  problem,  the  eternal  demand  for 
Home  Rule,  bitterly  opposed  for  the  most  part  by  the  landlords 
and  the  Ulster  Scots,  was  a  never-ending  source  of  difficulty.  The 
economic  antagonism  was  aggravated  by  racial,  political,  and 
religious  differences,  all  combining  to  enforce  each  other. 

These  antagonisms  have  always  tended  sharply  to  divide  the 
Irish  people  and,  particularly  in  Ulster,  to  limit  the  possibility  of 
common  effort.  There  has  been  in  Ireland  no  sense  of  social 


30         RURAL  RECONSTRUCTION  IN  IRELAND 

solidarity.  Class  solidarity  for  class  antagonism  has  prevailed. 
In  the  South,  where  the  Catholic  Home  Rulers  were  preponderant, 
the  Unionist,  so  long  as  he  did  not  introduce  his  political  opinions, 
was  not  altogether  shunned;  in  the  North  the  feeling  on  both 
sides  was  strong.  In  these  circumstances  a  real  community  life, 
uniting  all  classes  together  on  the  basis  of  common  interests, 
seemed  impossible. 

The  real  importance  of  these  facts  concerning  the  economic 
basis  of  the  life  of  the  country  and  the  social  conditions  lay,  how- 
ever, in  their  effect  on  the  character  of  Irish  men  and  Irish  women. 
The  wealth  of  a  nation  lies,  not  in  the  material  resources  at  its 
command,  but  in  the  energy  and  initiative  and  moral  fibre  of  its 
people.  Without  these  attributes  no  country  can  become  perma- 
nently prosperous;  with  them  no  unfavorable  circumstance  can 
long  prove  an  insuperable  obstacle.  But  character  is  largely 
molded  by  material  conditions.  To  attribute  to  racial  perversity 
the  lack  in  Irish  character  of  those  particular  qualities  which 
make  for  economic  success  in  the  modern  business  world  is  unfair 
to  their  equally  undoubted  mental  and  moral  endowments.  Some 
explain  the  situation  by  the  climate;  which  does  not  possess  the 
"electricity  in  the  air"  which  is  popularly  believed  to  stimulate 
their  greater  exertions  in  America.  One  notable  English  statesman 
satisfied  himself  that  the  real  cause  of  Irish  distress  lay  in  the 
contiguity  of  a  restlessly  moaning  ocean.  But  while  these 
explanations  contain  elements  of  truth  which  cannot  be  ignored, 
the  more  immediate  and  important  causes  have  already  been 
indicated. 

The  excessive  importance  attached  to  the  political  question 
which  has  been  so  great  a  factor  in  weakening  the  character  of 
the  Irish  farmer  as  a  producer  of  economic  wealth  was  both  a 
cause  and  an  effect.  The  lack  of  application  to  the  more  material 
needs  rendered  the  Irish  mind  receptive  to  more  shadowy  appeals, 
while  the  interest  of  the  people  in  this  single  problem  turned  their 


ECONOMIC  AND  SOCIAL  CONDITIONS  31 

minds  away  from  more  practical  questions.  No  one  would  deny 
the  importance  of  the  political  problem  in  regard  to  Ireland,  but 
there  is  every  reason  to  claim  that  its  place  in  recent  Irish  history 
has  been  out  of  all  proportion  to  that  importance.  The  Nationalist 
Party  had  one  aim  and  one  aim  only.  It  found  in  self-government 
the  panacea  for  the  ills  of  Ireland.  The  economic  difficulties 
which  we  have  been  considering  were,  according  to  this  point 
of  view,  entirely  the  result  of  political  causes  and  could  not  be 
corrected  without  an  enactment  of  Home  Rule.  Efforts  in  other 
directions  were  not  only  wasted,  but  were  dangerous  as  post- 
poning the  day  of  real  comprehensive  reform.  Thus  the  programme 
of  the  Party  has  been  altogether  lacking  in  constructive  pro- 
posals. Everything  was  subordinated  and  sacrificed  to  the  single 
claim.  This  policy  had  two  unfortunate  results.  It  created  the 
belief  that  the  only  hope  of  prosperity  lay  in  political  changes, 
and  it  absorbed  all  the  energy  of  the  people.  Few  movements 
have  enjoyed  a  greater  loyalty  or  enthusiasm  on  the  part  of  their 
followers  than  that  with  which  the  Irish  have  always  supported 
their  demand  for  self-government.  Could  but  a  portion  of  this 
loyalty  and  enthusiasm  have  been  devoted  to  the  practical  prob- 
lems of  economic  regeneration,  the  situation  would  have  been  far 
different.  But  this  disproportionate  interest  in  politics  created  a 
disproportionate  belief  in  political  remedies.  Sir  Horace  Plunkett 
tells  the  story  of  a  peasant  in  the  West  of  Ireland  who  ceased 
planting  potatoes  on  hearing  that  the  Home  Rule  Bill  of  1893 
had  become  law.  Spontaneous  generation  was  but  one  of  the  many 
improvements  in  the  natural  arrangement  of  affairs  to  be  secured 
through  this  panacea.  What  use  was  there  in  practical  efforts 
when  at  any  moment  the  enactment  of  Home  Rule  might 
inaugurate  a  new  Utopia  ? 

Only  one  other  factor  in  the  situation — namely,  the  absence  of 
a  satisfactory  and  effective  educational  system — need  be  men- 
tioned. In  few  countries,  indeed,  has  such  a  system  been  devised 


32          RURAL  RECONSTRUCTION  IN  IRELAND 

for  the  rural  districts.  But  in  Ireland  the  existing  facilities  from 
top  to  bottom  were  such  as  to  aggravate  rather  than  cure  the 
process  of  economic  and  social  decay  which  was  occurring.  The 
ordinary  primary  education,  which  was  not  compulsory  at  all 
until  the  passage  of  the  permissive  Act  of  1892,  did  not  form  the 
necessary  foundation.  Secc  dary  schools  were  independent  of 
central  authority  and  frequently  unsatisfactory,  while  technical 
education  in  agriculture  was  practically  unknown.  Finally,  Trinity 
College,  Dublin,  had  never  taken  a  real  part  in  the  life  of  the 
country,  and  the  other  institutions  of  higher  learning  were  of 
comparatively  little  importance.  The  individual  received  no  ade- 
quate general  or  special  training  for  his  life  as  a  wealth-producer 
and  as  a  citizen.  In  the  latter  connection,  the  autocratic  system 
of  local  government  which  prevailed  up  to  1898  was  of  very  little 
use  for  the  development  of  a  civic  consciousness.  The  mass  of  the 
people  had  no  voice,  and  so  no  intelligent  interest  in  the  manner 
in  which  they  were  governed.  The  complete  inadequacy  of  educa- 
tional agencies,  formal  and  informal,  was  a  constant  and  serious 
handicap  to  the  spread  of  the  co-operative  movement. 

We  have  considered  in  this  chapter  some  of  the  more  important 
economic  and  social  facts  which  confronted  the  pioneers  of  the 
co-operative  movement.  It  has  been  impossible  to  cover  every 
element  in  the  problem  or  to  give  each  the  attention  which  it  has 
deserved.  In  later  chapters  some  points  will  receive  further  con- 
sideration. However,  this  brief  summary  should  have  sufficed  to 
indicate  that  at  bottom  the  Irish  question  is  an  economic  question, 
demanding  primarily  an  economic  remedy.  Up  to  the  last  few 
decades  of  the  nineteenth  century  it  had  grown  steadily  worse, 
reaching  a  crisis,  as  we  shall  see,  in  the  eighties,  when  foreign 
competition  became  very  severe.  For  many  this  extreme  case  of 
social  and  economic  pathology  was  disheartening,  and  led  them 
to  seek  a  panacea  in  political  change.  But  happily,  for  a  few 
poverty  and  distress  were  a  challenge  to  practical  effort.  For  them 
the  real  solution  seemed  to  lie  in  the  reawakening  of  the  Irish 


ECONOMIC  AND  SOCIAL  CONDITIONS  33 

people.  Their  potentialities,  as  well  as  those  of  the  country  itself, 
promised  rapid  developments  once  the  burdens  of  an  unhappy 
past  could  be  loosened  and  a  constructive  programme  put  into 
operation.  With  such  a  programme,  as  found  particularly  in  the 
co-operative  movement,  we  are  concerned  in  the  subsequent  pages. 


CHAPTER  II 
LAND  LEGISLATION  IN  IRELAND 

No  Government,  however  unsympathetic,  could  altogether  ignore 
the  many  evils  of  the  Irish  situation.  We  have  seen  how  at  one 
period  the  legislation  of  the  English  Parliament  was  directly 
hostile  to  the  best  interests  of  Ireland.  But  this  policy  was  tem- 
porary and  prompted  by  ideas  prevalent  throughout  Europe  at 
the  period.  The  same  narrow  attitude  toward  possessions  which 
lost  Great  Britain  a  large  part  of  the  American  continent  was 
equally  responsible  for  the  course  of  English  legislation  in  regard 
to  Ireland.  There  followed  a  period  during  which  Irish  interests 
were  not  so  much  maliciously  treated  as  blundered  about  or 
ignored.  The  legislation  to  meet  the  distress  of  the  Great  Famine 
was  an  instance  of  the  former,  Free  Trade  of  the  latter.  But 
since  the  latter  half  of  the  nineteenth  century,  the  effort  has  on 
the  whole  been  better  directed.  Mistakes  have  been  made  and 
many  important  matters  too  long  ignored.  But  considering  the 
many  difficulties  and  misunderstandings  which  it  must  be  ad- 
mitted the  Irish  themselves  have  tended  rather  to  aggravate  than 
to  remove,  the  activities  of  the  English  Government  deserve  more 
credit  than  they  generally  receive.  We  shall  now  deal  with  certain 
of  these  activities,  which  have  had  a  considerable  effect  upon  the 
co-operative  movement  and  which  have  combined  with  it  for  the 
economic  regeneration  of  the  country. 

State  action  in  Ireland  has  been  concerned  largely  with  the 
problem  of  land  tenure,  a  fundamental  cause  of  the  distress  of 
the  country.  Energetic  as  the  Irish  farmer  might  become,  scien- 
tifically as  he  might  learn  to  apply  his  labor,  completely  as  he 
might  organize  for  the  conduct  of  his  business,  without  a  reform 

34 


LAND  LEGISLATION  IN  IRELAND  35 

in  the  land  system  no  real  improvement  in  his  situation  could  be 
assured.  Tenancy  under  alien  landlords  who  had  never  recognized 
the  obligations  of  their  position,  and  among  a  peasantry  who  had 
preserved  a  feeling  of  ownership  in  the  land  which  they  had  so 
long  occupied,  could  not  succeed.  It  had  either  to  be  reformed  by 
the  addition  of  the  indispensable  conditions  of  a  fair  rent,  free 
sale,  and  fixity  of  tenure,  or  to  give  place  to  an  entirely  new 
system.  The  course  of  land  legislation  in  Ireland  includes  a  trial 
of  both  methods;  for  an  effort  to  correct  the  evils  in  the  existing 
system  led  gradually  but  inevitably  to  the  introduction  of  a  new 
system  of  peasant  proprietorship. 

After  many  years  of  legislation  in  favor  of  the  landlords  and 
an  attempt  in  the  Deasy  Act  of  1860  to  give  the  tenant  the  full 
but  illusory  advantages  of  free  contract,  a  real  start  in  corrective 
efforts  was  made  by  the  Land  Act  of  1870.  The  most  evident 
agrarian  abuse  since  the  Great  Famine  had  been  the  ruthless 
process  of  eviction  by  which  the  landlords  cleared  their  estates 
of  tenantry.  These  evictions  had  become  more  serious  following 
the  Encumbered  Estates  Act  of  1849,  which,  despite  its  advan- 
tages, created  a  new  class  of  proprietors  even  less  interested  in 
the  welfare  of  the  tenants  than  their  predecessors.  The  revolu- 
tionary outbreak  of  the  Fenians  and  the  rapid  growth  of  secret 
societies  throughout  the  country  were  the  more  apparent  symp- 
toms of  a  general  discontent  and  disaffection.  Only  in  Ulster, 
where  the  inherited  claim  of  a  certain  measure  of  ownership  by 
the  peasant  was  recognized,  were  conditions  somewhat  better. 
Yet  elsewhere  a  very  strong  reason  for  the  acknowledgment  of 
this  claim  lay  in  the  fact  that  any  improvements  which  were  made 
were  the  work  of  tenants.  The  English  system  under  which  the 
landlord  provided  all  the  buildings  and  permanent  investments 
seldom  applied.  Nevertheless,  the  tenant  had  no  legal  protection 
against  eviction  and  the  confiscation  of  the  results  of  his  work. 

The  Act  of  1870  attempted  to  meet  this  situation.  It  applied 
particularly  to  yearly  tenancies  up  to  the  value  of  £100,  the  most 


36         RURAL  RECONSTRUCTION  IN  IRELAND 

abused  class  of  holding.  By  giving  legal  recognition  to  the  cus- 
tomary right  which  prevailed  in  Ulster,  the  tenant  became,  as 
it  were,  co-owner  with  the  landlord.  In  case  of  arbitrary  eviction, 
he  was  entitled  to  compensation  for  his  disturbance.  Also  he  might 
claim  payment  for  the  improvements  which  he  had  carried  out. 
Thus  the  tenant  was  guaranteed  a  certain  fixity  of  tenure  and 
might  expect  to  realize  something  for  his  share  in  the  holding. 
The  Land  Commission  provided  a  judicial  machinery  for  the 
purpose  of  determining  such  claims  in  cases  where  no  voluntary 
agreement  could  be  reached.  The  Act  did  not  interfere  with  the 
sacred  rights  of  property.  It  only  protected  the  tenants  against 
some  of  the  more  obvious  disadvantages  of  their  position. 

But  half-way  measures  dealing  with  such  a  complex  problem 
neither  deserve  nor  in  fact  often  attain  much  success.  Although 
a  certain  measure  of  fixity  of  tenure  and  freedom  of  sale  was 
assured,  and  the  arbitrary  action  of  landlords  thus  received  some 
check,  eviction  for  reason  was  still  legally  justified,  and  reasons 
were  not  difficult  to  supply.  The  prosperity  of  agriculture  during 
the  years  following  the  enactment  of  the  law  made  possible  a 
rapid  increase  in  rents.  But  with  the  failure  of  the  crops  in  1878 
and  the  consequent  inability  of  the  tenants  to  meet  their  obliga- 
tions, evictions  again  grew  in  number.  Yet  of  the  6163  appli- 
cations for  compensation  before  the  Commission  during  the  period 
1871-1880,  only  1808  were  successful.  Moreover,  while  eviction, 
though  made  more  expensive,  was  not  prevented,  it  was  always 
possible  for  the  landlord  to  claim  competitive  prices  for  the  tenant 
right,  and  thus  the  seeming  privilege  became  really  an  additional 
handicap.  The  importance  of  the  Act  of  1870  as  a  step  in  Irish 
land  reform  lay,  not  in  the  results  achieved,  for  they  were  negli- 
gible, but  in  the  recognition  that  the  tenant  had  a  claim  upon  his 
holding. 

The  renewed  agrarian  agitation  under  the  leadership  of  the 
Land  League,  with  the  boycott  as  its  effective  weapon,  and  the 
report  of  the  Bessborough  Commission  in  1880,  which  pointed 


LAND  LEGISLATION  IN  IRELAND  37 

out  the  above  facts,  convinced  Gladstone  of  the  necessity  of 
further  legislation.  "It  is  essential,"  declared  the  Report,  "to 
recognize  the  state  of  things  existing  in  Ireland  and  to  acknowl- 
edge the  co-ownership  of  the  tenant  with  the  landlord  in  a  more 
complete  manner  than  did  the  law  of  1870."  The  Act  of  1881, 
which  has  been  called  the  Magna  Charta  of  the  Irish  peasant, 
carried  out  this  recommendation.  To  free  sale  and  fixity  of  tenure 
was  added  the  indispensable  guarantee  of  a  fair  rent.  The  tenant 
retained  the  right  in  his  holding  recognized  by  the  preceding  Act, 
and  at  the  same  time  might  demand  from  the  proper  authority 
the  determination  of  a  fair  rent.  The  authorities  in  this  matter 
were  the  county  courts  and  the  reconstituted  Land  Commission. 
Or  the  proprietor  and  tenant  might  arrange  matters  themselves, 
and  their  agreement  became  valid  and  binding.  This  determina- 
tion was  to  continue  for  a  period  of  fifteen  years,  after  which  a 
revision  might  take  place.  Thus  the  rent  became  a  regular  charge. 
The  tenant  enjoyed  complete  security  so  long  as  he  kept  the 
conditions  of  his  contract;  and  whereas,  hitherto,  the  power  of 
the  landlord  to  raise  the  rent  had  virtually  deprived  the  holder 
of  the  power  of  free  sale,  under  the  new  conditions  there  was  no 
such  check.  This  was,  in  fact,  the  logical  completion  of  the  law 
of  1870.  The  interdependence  of  the  "Three  F's"-  —  fair  rent, 
fixity  of  tenure,  and  free  sale — was  recognized,  and  with  these 
assured  a  satisfactory  form  of  tenure  was  apparently  achieved. 

Yet  despite  the  liberality  of  the  law  of  1881  and  the  enthusiasm 
of  the  Irish  people  for  the  reform,  its  success  was  far  from  realiz- 
ing the  hopes  which  were  based  on  it.  Agitation,  punctuated  by 
agrarian  crimes  of  every  description,  continued.  In  1886,  the 
publication  of  the  Plan  of  Campaign  intimated  that  the  tenants 
were  bent  on  having  things  even  more  completely  their  own  way. 
In  case  rents  were  considered  unfair,  there  was  to  be  a  general 
no-rent  strike  on  the  estate  in  question,  and  the  amounts  withheld 
were  to  furnish  the  means  for  obtaining  further  concessions.  Nor 
did  attempted  improvements  of  the  law  in  1887,  1891,  and  1896 


38         RURAL  RECONSTRUCTION  IN  IRELAND 

have  appreciable  results.  Nevertheless,  up  to  March  31,  1914, 
determinations  had  been  made  by  the  civil  courts  and  the  Land 
Commission  in  respect  of  410,150  cases.  Of  these,  295,673  were 
for  the  first  period  of  fifteen  years,  111,794  for  the  second,  and 
2683  for  the  third.  These  represent  a  very  considerable  propor- 
tion of  the  total  land  holdings  in  Ireland.  And  the  fact  that  already 
a  very  considerable  number  of  third-term  determinations  have 
been  made  indicates  that  this  legislation  is  still  of  importance. 
Evidently  a  certain  number  of  Irish  occupiers  prefer  tenancy 
to  ownership,  or  believe  that  the  present  purchase  prices  are  too 
high.  Still,  on  the  whole,  the  attempt  to  create  a  system  of  dual 
ownership  has  not  been  successful  in  solving  the  agrarian  prob- 
lem. In  principle  it  seemed  a  good  scheme.  But  writers  of  all 
parties  and  the  Fry  Commission  of  1897  have  pointed  out  its 
inadequacy.  Laissez-faire  had  produced  in  rack-rents  an  intoler- 
able situation;  governmental  control  under  a  system  of  judicial 
rents  had  a  hardly  more  satisfactory  outcome. 

The  reasons  for  this  failure  are  not  difficult  to  discover.  In  the 
first  place,  the  landlords  had  a  grievance.  The  judicial  rents 
represented  decreases  over  the  previous  payments  averaging  20, 
19,  and  9  per  cent,  for  the  three  determinations.  It  seemed  a  legal 
confiscation  of  property,  for  in  many  cases  the  income  of  the 
owner  was  all  but  completely  absorbed.  Nevertheless,  no  measure 
of  Irish  reform  could  be  withheld  on  that  account.  Irish  conditions 
were  so  serious  as  to  merit  unusual  treatment.  Vested  interests 
can  never  continue  indefinitely  to  prey  on  any  community;  they 
must  sooner  or  later  suffer  a  reaction  proportionate  to  their  privi- 
leges. So  long  as  the  judicial  represented  a  decrease  over  the 
competitive  rents,  this  legislation  was  naturally  popular  with  the 
tenant  class.  But  it  was  not  clear  what  the  attitude  of  the  tenants 
would  be  in  the  event  of  a  market  of  rising  prices.  The  measure 
of  success  attained  by  the  rent-fixing  legislation  was  the  outcome 
of  its  incidental  or  particular  results  rather  than  a  justification 
of  its  principles. 


LAND  LEGISLATION  IN  IRELAND  39 

On  this  account,  rather  than  because  of  any  paucity  of  results, 
the  law  of  1881  must  be  looked  upon  as  a  failure.  The  rents  were 
not  fixed  upon  any  particular  or  just  principle.  The  decreases 
bore  no  real  relation  to  the  fluctuations  in  prices.  What  was  deter- 
mined was  not  so  much  a  judicial  as  a  popular  rent.  Out  of  this 
lack  of  a  sound  basis  for  the  determination  developed  a  dangerous 
abuse,  calculated  not  to  strengthen  Irish  industrial  character  as 
was  necessary,  but  in  fact  to  weaken  it  further.  A  most  important 
factor  in  the  determination  of  the  rent  came  to  be  the  evident 
prosperity  of  the  tenant.  One  of  the  chief  abuses  of  the  rack-rent 
system  reappeared  in  a  new  form.  Thus  of  two  brothers  on  similar 
holdings,  the  more  lazy  and  inefficient  paid  a  lower  rent  than  the 
more  enterprising.  Not  productivity,  but  production,  and  more 
especially  the  evidences  of  production  at  the  fifteenth  year,  were 
the  determining  factors.  The  decrease  in  agricultural  prices  during 
the  eighties  was  a  great  spur  to  increased  efficiency  of  production 
in  other  countries,  hastening  the  introduction  of  scientific  agri- 
culture, up-to-date  machinery,  and  better  methods  of  business 
organization.  But  in  Ireland  this  quickening  impulse  was  not  felt 
for  the  reason  that  the  depression  was  met  largely  through  the 
decrease  in  rents.  The  attempt  to  put  the  landlord-tenant  system 
on  a  fair  basis  by  artificial  means  evidently  did  not  meet  the 
situation.  A  more  comprehensive  and  revolutionary  form  of 
legislation  was  demanded. 

The  creation  of  a  system  of  tenant  proprietors  as  an  alternative 
to  the  landlord  system  had  early  engaged  the  attention  of  reform- 
ers in  Ireland.  John  Bright's  land  purchase  scheme  of  1866  did 
not  materialize,  but  his  propaganda  bore  fruit  soon  afterwards. 
The  disestablishment  of  the  Irish  Church  and  the  consequent 
sale  of  ecclesiastical  holdings  provided  an  opportunity  for  inau- 
gurating the  new  system.  An  arrangement  by  which  the  State  was 
to  advance  three- fourths  of  the  purchase  money  to  tenants  on 
the  Church  estates  who  wished  to  purchase  their  farms  was  put 
into  operation  in  1869.  Under  these  provisions  over  six  thousand 


40         RURAL  RECONSTRUCTION  IN  IRELAND 

holders  came  forward  and  were  created  peasant  proprietors.  The 
Land  Act  of  1870  likewise  contained  a  clause  providing  for  land 
purchase,  as  did  the  Act  of  1881.  But  none  of  these  Acts  was 
largely  successful.  Even  where  the  tenant  was  provided  with  all 
but  a  quarter  of  the  purchase  cost,  this  capital  outlay  was  an 
insuperable  obstacle.  Further,  the  lack  of  land  registration  in 
Ireland  involved  heavy  expenses  for  transfer,  which  the  tenant 
could  not  meet.  The  total  number  of  proprietors  created  by  these 
early  experiments  was  only  7665.  Evidently  a  much  more  liberal 
measure  was  necessary  if  land  reform  was  to  be  carried  far  in 
this  direction. 

With  the  Ashbourne  Act  of  1885  the  purchase  system  became 
of  real  importance,  and  immediately  proved  that  the  more  con- 
servative measures  would  not  suffice.  A  Committee  of  the  House 
of  Lords  had  proposed  a  comprehensive  programme  in  1882, 
suggesting  the  loan  of  the  entire  purchase  money  in  order  to 
create  a  peasantry  of  small  holders.  Though  there  was  much 
opposition  to  this  revolutionary  step,  the  only  alternative,  that 
of  land  nationalization  (for  which  Henry  George  had  found  an 
ardent  disciple  in  Michael  Davitt),  secured  little  encouragement 
from  any  quarter.  The  Ashbourne  Act  provided  a  fund  of 
£5,000,000,  from  which  loans  were  to  be  made  to  such  tenants 
as  might  secure  the  sanction  of  the  Land  Commission  for  the 
purchase  of  their  holdings.  The  yearly  annuity  paid  by  the  pur- 
chasers for  this  loan  was  fixed  at  4  per  cent.  Three  per  cent,  of 
this  was  allocated  to  interest  charges;  the  remainder  was  to 
accumulate  as  a  sinking  fund  to  pay  off  the  principal.  This 
arrangement  secured  complete  ownership  for  the  occupier  after 
payments  of  the  annuity  for  forty-nine  years.  Such  immediate 
success  attended  the  promulgation  of  this  Act  that  a  further 
grant  of  £5,000,000  was  made  early  in  1888. 

This  vindication  of  the  policy  of  tenant  purchase  led  to  an 
even  more  comprehensive  measure  in  1891.  An  issue  of  land  stock 
up  to  the  value  of  £33,000,000,  to  be  paid  over  to  the  landlords 


41 

in  this  form  rather  than  in  cash  as  provided  in  the  previous  Acts, 
was  authorized.  The  allocation  of  die  4  per  cent,  yearly  annuity 
differed  somewhat  from  that  under  the  previous  Acts.  The  money 
was  secured  at  a  lower  rate  of  interest  (2^4  per  cent.),  and  the 
J4  per  cent,  surplus  was  placed  in  a  fund  for  the  construction  of 
laborers'  cottages.  This  excellent  provision  was  abandoned  after 
the  amending  Act  of  1896,  by  which  the  J4  per  cent,  was  added 
to  the  sinking  fund.  In  this  way  the  period  of  payment  was  re- 
duced to  forty- two  years.  Another  change  introduced  by  the 
amending  Act  provided  for  decadal  reductions  in  the  annuity,  a 
wise  foresight  in  case  of  a  further  drop  in  the  prices  of  agricul- 
tural produce.  Under  this  arrangement,  the  possible  period  of 
purchase  was  extended  to  seventy  years.  Yet  despite  their  various 
advantages  and  the  large  resources  available,  these  Acts  were 
comparatively  unsuccessful.  Over  the  period  to  1903,  only  38,251 
tenants  had  been  converted  into  proprietors,  in  the  aggregate  a 
large,  but  relatively  a  rather  meagre  result. 

The  chief  reason  for  the  ineffectiveness  of  the  Acts  of  1891 
and  1896  was  the  fact  that  the  sale  was  not  made  sufficiently 
enticing  for  the  landlord.  While  the  land  stock  in  which  the  pur- 
chase price  was  paid  was  at  par  or  a  premium,  the  transaction 
was  profitable  enough.  But  the  heavy  issues  of  Consols  at  the 
time  of  the  war  in  the  Transvaal  seriously  depreciated  these 
kindred  securities.  Whereas  in  1895  Irish  land  stock  stood  at  a 
premium  (it  went  as  high  as  114),  it  had  fallen  by  1900  to  a 
position  permanently  below  par.  This  fact  quickly  clogged  the 
machinery  of  purchase,  and  by  1902  the  new  sales  were  reduced 
to  an  almost  negligible  number.  Besides,  there  were  many  legal 
difficulties  which  were  a  constant  hindrance.  The  purchases  pro- 
ceeded at  such  a  slow  rate  that  the  completion  of  the  change 
which  had  been  considered  a  matter  of  a  few  years  was  relegated 
into  the  dim,  distant  future. 

But  the  principle  had  been  enthusiastically  accepted  by  the 
Irish  peasantry,  and  once  started  there  was  no  turning  back.  The 


42          RURAL  RECONSTRUCTION  IN  IRELAND 

annuities  paid  by  the  purchasers  had  been  considerably  lower 
than  the  judicial  rents  of  their  non-purchasing  neighbors.  This 
fact  alone  insured  a  continued  agitation  for  further  measures. 
There  was  even  a  considerable  clamor  for  compulsory  sale,  which 
was  demanded  by  the  reunited  Irish  Party  in  1900  under  the 
influence  of  the  United  Irish  League.  The  agitation  began  to 
assume  the  proportions  of  a  land  war.  On  their  side  the  landlords 
organized  and  seemed  determined  to  stand  by  their  convictions 
to  the  last.  Happily,  however,  the  moderate  people  on  both  sides 
prevailed.  It  was  proposed  by  Captain  Shaw-Taylor  to  form  a 
voluntary  conference  to  consider  this  difficult  problem,  and  his 
suggestion  was  immediately  adopted.  Representatives  of  land- 
lords and  tenants  assembled  under  the  chairmanship  of  Lord 
Dunraven,  and  eventually  agreed  upon  a  series  of  recommenda- 
tions. This  reconciliation,  known  as  the  Dunraven  Treaty,  marks 
a  new  epoch  in  Irish  land  legislation.  It  indicated  the  recognition 
of  the  common  interest  of  landlords  and  tenants  in  the  welfare 
of  the  country,  and  showed  that  the  bitter  antagonisms  between 
the  two  groups  of  the  population  were  gradually  softening.  Both 
sides  conceded  various  points,  and  the  compromise  finally  effected 
was  embodied  in  the  comprehensive  Land  Act  of  1903. 

The  Wyndham  Act,  which  took  its  name  from  the  Chief 
Secretary  for  Ireland  by  whom  it  was  introduced  into  Parliament, 
did  not  depart  from  the  voluntary  principle.  It  attempted  rather 
to  hasten  the  completion  of  land  purchase  which  the  Nationalists 
demanded,  by  gilding  the  transaction  for  the  landlord  as  the  low 
annuities  had  gilded  it  for  the  tenants.  The  sum  of  £100,000,000 
which  was  considered  necessary  to  complete  the  change  was  voted. 
This  money  was  to  be  raised  by  an  issue  of  stock  at  2  J4  per  cent., 
and  in  case  of  its  falling  below  par  the  deficit  in  the  amount 
realized  was  to  be  made  up  by  a  grant  from  the  Irish  Develop- 
ment Fund.  The  annuity  paid  by  the  purchaser  was  considerably 
below  that  provided  in  previous  legislation — namely,  3^4  per 
cent. — and  extended  the  period  of  payment,  without  decadal 


LAND  LEGISLATION  IN  IRELAND  43 

reductions,  to  68  J^  years.  A  new  body,  the  Estates  Commission- 
ers, was  created  to  administer  the  Act.  It  was  authorized  to  pur- 
chase whole  estates,  which  were  then  to  be  sold  to  the  occupiers. 
Various  provisions  were  introduced  to  stimulate  sale  by  the  land- 
lords. It  was  stipulated  that  all  payments  were  to  be  in  cash,  thus 
obviating  the  danger  of  fluctuating  stock  values  which  had  so 
seriously  interfered  with  operations  under  the  Act  of  1891. 
Further,  the  landlord  was  to  be  paid  a  bonus  on  his  sale  out  of 
a  special  Treasury  grant  of  £12,000,000,  which  amounted,  there- 
fore, to  12  per  cent.  Also,  he  was  entitled  to  include  his  own 
demesne  in  the  sale  of  his  estate,  buying  it  back  from  the  Com- 
missioners on  the  usual  terms  of  a  3%  Per  cent,  annuity.  In 
cases  where  the  demesne  had  been  mortgaged  at  a  high  rate  of 
interest,  this  was  a  considerable  additional  advantage.  The  Act 
of  1903  marks  the  culminating  point  of  Irish  land  legislation, 
and  is,  perhaps,  the  most  important  and  suggestive  enactment 
of  its  kind  which  has  been  passed  in  any  country. 

But  the  slowness  of  the  transfer,  caused  by  a  provision  of  the 
law  of  1903  which  limited  the  issue  of  stock  to  £5,000,000  yearly, 
was  a  source  of  considerable  criticism.  The  Estates  Commissioners 
fell  more  and  more  behind  in  dealing  with  the  applications  made 
to  them.  For  the  tenants,  the  arrangements  did  not  seem  as  satis- 
factory as  in  previous  Acts.  The  zone  system,  which  fixed  the 
purchase  price  according  to  the  existing  judicial  rents  and  in- 
volved a  considerable  increase  over  existing  standards,  was  not 
popular.  Meanwhile,  the  financial  arrangements  broke  down  com- 
pletely. The  stock  issued  at  2^  per  cent,  fell  in  the  markets  to 
a  very  considerable  discount,  requiring  large  inroads  upon  the 
Irish  Development  Fund  to  make  up  the  deficit.  Moreover,  the 
law  did  not  deal  adequately  with  the  problem  of  congested  dis- 
tricts, many  of  which  were  found  to  exist  outside  the  areas 
officially  known  by  that  name. 

The  law  of  1909  grappled  with  several  of  these  shortcomings. 
The  interest  rate  on  the  stock  issued  was  increased  to  3  per  cent., 


44         RURAL  RECONSTRUCTION  IN  IRELAND 

and  the  annuities  were  raised  correspondingly  to  3^  per  cent. 
The  heavy  deficit  already  existing  was  to  be  settled  by  the  inter- 
vention of  the  Treasury.  In  place  of  a  fixed  bonus  of  12  per  cent., 
this  additional  payment  to  the  landlord  was  now  graded  accord- 
ing to  the  price  paid.  The  problem  of  congestion  and  the  unwill- 
ingness of  certain  landlords  to  sell  was  partially  solved  by  the 
extension  of  the  area  under  the  jurisdiction  of  the  Congested 
Districts  Board  and  the  investiture  of  that  body  with  compulsory 
powers.  The  Estates  Commissioners  were  given  the  same  powers 
in  respect  to  "congested  districts"  outside  the  jurisdiction  of  the 
Board.  These  modifications  and  additions  have  brought  the 
programme  laid  down  in  1903  much  nearer  completion. 

The  actual  result  of  the  land  purchase  Acts  in  Ireland  has  been 
to  create  a  country  of  peasant  proprietors.  By  March  31,  1915, 
nearly  300,000  holdings  had  passed  into  the  hands  of  their  occu- 
piers. These  represented  nearly  ten  million  acres  of  land.  At  the 
same  time,  an  additional  100,000  holdings  of  over  three  million 
acres  were  in  process  of  negotiation.  Together  these  comprised 
more  than  three-quarters  of  the  soil  of  the  country.  A  sum  of 
nearly  £100,000,000  had  been  advanced  by  the  Government  in 
order  to  achieve  this  remarkable  result.  Ireland  has,  it  is  true, 
not  yet  seen  the  end  of  agrarian  legislation.  There  have  already 
been  several  efforts  to  amend  further  the  Act  of  1903.  Of  the 
proposals  made,  the  most  important  seems  to  be  the  extension 
of  compulsory  sale  throughout  the  country.  Such  a  measure, 
however,  would  be  a  last  resort  against  a  small  and  recalcitrant 
minority.  The  effects  of  the  present  heavy  issues  of  Government 
securities  at  a  high  rate  of  interest  is  another  matter  which  will 
inevitably  require  adjustment  after  the  war.  On  the  whole,  how- 
ever, the  problem  of  agrarian  tenures  in  Ireland  has  been  solved. 
The  Irish  problem  is  now  chiefly  a  problem  of  small  peasant 
proprietors. 

Several  details  in  connection  with  Irish  land  purchase  legisla- 
tion merit  passing  attention.  There  was  a  very  considerable 


LAND  LEGISLATION  IN  IRELAND  45 

danger  that  the  newly  created  proprietors  would  be  induced  to 
mortgage  their  holdings,  and  thus  fall  into  the  clutches  of  the 
money-lenders.  Likewise  the  practice  of  subdivision,  which  had 
already  brought  baleful  results  on  the  country,  might  as  well 
occur  in  cases  of  ownership  as  of  tenancy.  These  very  real  dangers 
were  guarded  against  by  provisions  of  the  various  purchase  Acts. 
Mortgage  for  any  considerable  amount  and  subdivision  of  holding 
were  forbidden  without  the  consent  of  the  authorities  concerned 
in  the  sale.  Another  matter  in  which  difficulty  was  anticipated 
was  the  payment  of  the  annuities.  It  was  pointed  out  that  "No 
annuities"  was  as  practical,  if  not  as  euphonious,  a  cry  as  "No 
rents."  The  possibility  of  a  general  strike  against  the  payment  of 
the  yearly  instalments  was  not  remote.  And  yet  the  purchasers 
have  shown  exemplary  promptitude  and  regularity.  The  out- 
standing payments  in  arrears  have  never  reached  a  large  figure. 
Thus  in  1914  there  was  due  under  this  head  only  £12,500,  of 
which  the  greater  part  was  only  temporarily  in  arrear.  The  atti- 
tude of  the  Irish  people  in  regard  to  their  purchases  has  been 
of  a  very  encouraging  nature. 

Closely  connected  with  this  legislation  concerning  the  system 
of  land  tenure,  and  in  fact  enacted  in  the  same  statutes,  have 
been  the  efforts  to  deal  with  the  problem  of  the  "congested  dis- 
tricts." Along  the  western  seaboard  the  poverty  and  wretched- 
ness of  the  people  were  particularly  acute.  Generously  as  Ireland 
has  been  endowed  by  nature,  the  variations  in  the  productive 
power  of  the  land  are  great.  In  the  west  the  arable  soil  which  finds 
lodgment  among  the  islands  of  rock  and  the  seas  of  bog  is  both 
scant  and  poor.  Thus  the  evils  which  affected  Ireland  generally 
appeared  there  in  an  aggravated  form.  Competition  for  the  miser- 
able holdings  was  intensified  by  the  clearances,  which  as  else- 
where turned  over  the  better  lands  to  grazing.  Even  the  best 
holdings  in  Ulster  commanded  no  higher  rents.  A  birth-rate  above 
that  in  any  other  section  of  the  country  increased  the  hopelessness 
of  the  situation.  The  economic  holding  was  almost  unknown,  so 


46         RURAL  RECONSTRUCTION  IN  IRELAND 

repeated  had  been  the  subdivisions.  Only  the  returns  from 
subsidiary  occupations,  such  as  kelp-burning,  fishing,  and  home 
industries,  kept  many  from  starvation.  Others  depended  on 
remittances  from  America,  whither  large  numbers  from  this 
section  of  the  country  had  been  forced  to  emigrate.  Another  group 
traveled  regularly  to  England  and  Scotland  as  laborers  for  the 
harvests,  returning  with  sometimes  as  much  as  £10  which  they 
had  saved  to  live  in  luxurious  idleness  in  the  rude  cottages  which 
served  as  their  winter  homes.  Only  very  comprehensive  measures, 
entailing  a  complete  reconstruction  of  their  social  and  economic 
life,  could  free  these  people  of  the  congested  districts  from  their 
hopeless  situation. 

The  first  legislation  dealing  particularly  with  this  problem 
formed  a  section  of  the  Land  Act  of  1891,  and  provided  for  the 
establishment  of  the  Congested  Districts  Board.  All  electoral 
divisions  where  the  average  valuation  did  not  exceed  £i  los.  per 
head,  provided  that  more  than  20  per  cent,  of  the  population  of 
the  county  lived  under  these  conditions,  were  constituted  as 
special  districts  under  the  jurisdiction  of  the  Board.  Other  areas 
might  be  added  by  the  Lord-Lieutenant  at  his  discretion,  and  in 
fact  the  changes  made  following  upon  the  Report  of  the  Royal 
Commission  appointed  to  inquire  into  the  work  of  the  Board  in 

1908  increased  the  scope  of  its  activity  until  at  present  it  embraces 
practically  a  third  of  the  country.  The  population  of  these  dis- 
tricts, more  than  doubled  by  the  provisions  of  the  Act  of  1909, 
was  in  that  year  considerably  over  a  million.  The  Board,  under 
whose  jurisdiction  these  people  were  placed,  was  composed  of  ten 
members  (later  fourteen)  selected  irrespective  of  party  consider- 
ations, and  was  made  quite  independent  of  outside  control.  Their 
annual  income  has  varied  from  £41,250  to  £231,000,  and  since 

1909  has  been  increased  to  £250,000.  The  powers  granted  were 
commensurate  with  the  problem  faced.  The  Board  might  aid  in 
emigration  or  in  migration  to  more  fertile  holdings;  it  was  to 
develop  agriculture,  forestry,  fishing,  weaving;  was,  in  fact,  t 


LAND  LEGISLATION  IN  IRELAND  47 

concern  itself  in  every  possible  way  with  the  welfare  of  these 
peoples.  The  aim  was  not  the  immediate  relief  of  exceptional  dis- 
tress— a  policy  whose  worthlessness  had  been  indicated  by  various 
activities  of  the  Board  of  Works — but  rather  the  employment  of 
constructive  measures  for  the  development  and  lasting  improve- 
ment of  backward  districts. 

Under  the  provisions  of  this  Act,  the  Board  now  deals  with  a 
total  of  429  electoral  divisions,  practically  confined  to  the  West 
of  Ireland.  So  constituted  as  to  secure  the  confidence  of  the  people, 
it  has  succeeded  in  carrying  out  its  programme  of  amelioration  in 
a  generally  successful  manner.  Its  largest  work  has  been  the  pur- 
chase and  resettlement  of  many  large  estates  in  the  congested 
districts.  The  problem  was  very  largely  one  of  the  redistribution 
of  the  land,  of  which  the  better  portions  had  been  devoted  to 
grazing.  By  the  Act  of  1909  compulsory  powers  for  the  purchase 
of  land  were  given,  which  added  considerably  to  the  effectiveness 
of  this  work.  For  the  entire  period  during  which  the  Board  has 
been  in  operation,  a  total  of  13,048  holdings  aggregating  351,479 
acres  has  been  sold  to  tenants,  in  many  cases  after  considerable 
permanent  improvements  had  been  made.  The  distribution  of  the 
"Congests"  into  economic  holdings  has  been  of  primary  impor- 
tance in  preparing  these  districts  for  work  of  a  more  educational 
nature. 

The  educational  work  of  the  Board  has,  since  the  Act  of  1909, 
been  very  largely  transferred  to  the  Department  of  Agriculture 
and  Technical  Instruction,  with  which  we  shall  deal  in  a  later 
chapter.  In  the  early  days,  however,  this  activity  formed  one  of 
the  most  important  features  of  its  work.  The  maintenance  of 
"example  plots,"  the  popularizing  of  potato  spraying,  the  improve- 
ment of  live  stock  and  poultry,  the  provision  of  good  seeds,  the 
introduction  of  new  methods  of  cultivation  to  replace  the  primitive 
methods  in  use,  and  many  other  measures  calculated  to  develop 
a  more  scientific  and  successful  agriculture  were  undertaken. 

The  third  general  form  of  the  activities  of  the  Congested  Dis- 


48         RURAL  RECONSTRUCTION  IN  IRELAND 

tricts  Board  has  been  the  development  of  subsidiary  industries. 
The  backward  state  of  the  sea  fisheries  off  the  West  coast  of 
Ireland  was  early  recognized,  and  an  attempt  made  to  secure  for 
Irish  fishermen  some  of  the  natural  wealth  which  has  always 
attracted  fishermen  from  other  countries  to  that  district.  Both  in 
the  provision  of  nets  and  boats,  and  in  developing  markets  the 
Board  has  done  a  considerable  work.  Likewise  an  attempt  has 
been  made  to  reach  the  women  by  the  development  of  various 
home  industries,  such  as  lace-  and  crochet-making,  knitting, 
embroidery,  and  the  weaving  of  tweeds.  Some  effort  has  also  been 
made  to  restore  the  kelp  industry,  but  unfavorable  market  con- 
ditions have  steadily  diminished  its  importance  as  a  source  of 
subsidiary  income. 

The  work  of  the  Congested  Districts  Board  has  undoubtedly 
been  of  great  value  in  these  specially  distressed  districts  of  the 
West.  The  improvement  in  dwellings,  the  extirpation  of  disease, 
a  higher  standard  of  living — all  these  indicate  a  real  success.  The 
tendency  toward  paternalism,  with  the  corresponding  discourage- 
ment of  self-reliance  and  independence  among  the  people  them- 
selves, has  been  the  greatest  danger.  But  the  Board  has  recognized 
this,  and  has  endeavored  to  do  its  work  in  a  way  which  would 
encourage  individual  initiative.  It  justifies  its  paternalistic 
methods  by  the  extreme  conditions  among  the  people  with  whom 
it  deals.  It  recognizes  the  necessity  of  educational  and  organizing 
work.  Still,  the  fact  that  the  Board  is  a  State  agency,  financed  by 
a  Government  grant,  and  not  an  activity  by  and  of  the  people 
themselves,  is  ever  a  possible  danger  which  must  be  neutralized 
by  other  forces  if  the  really  great  potentialities  of  the  people  of 
these  districts  are  to  be  developed. 

Land  legislation  and  the  activities  of  the  Congested  Districts 
Board  have  thus  effectively  met  some  of  the  fundamental  causes 
of  Irish  distress.  The  application  of  a  reasonable  system  of  land 
tenure  was  undoubtedly  essential  to  the  development  of  agricul- 
ture. Likewise,  only  a  certain  amount  of  paternalism  could  meet 


LAND  LEGISLATION  IN  IRELAND  49 

the  extreme  conditions  of  the  Congested  Districts.  But  successful 
as  this  legislation  has  been,  it  was  not  without  limitations,  nor 
without  features  which,  unless  balanced  by  other  efforts,  would 
have  eventually  led  to  still  greater  economic  depression.  The 
establishment  of  a  system  of  peasant  proprietorships  taken  by 
itself  was  quite  incapable  of  solving  the  problem.  In  fact,  the  set- 
tlement of  the  question  of  land  tenure  only  increased  the  urgency 
of  other  steps.  The  real  criterion  of  the  land  legislation  must  be 
found  in  its  effect  on  the  character  of  Irish  farmers.  This,  as  we 
have  seen,  was  the  fundamental  problem.  From  such  a  point  of 
view,  all  forms  of  legislative  action  in  Ireland  were  to  be  looked 
upon  with  suspicion.  The  Acts  which  we  have  discussed  seemed 
particularly  dangerous.  In  order  to  secure  the  ready  acceptance 
by  the  peasantry  of  the  land  purchase  scheme,  the  annuities 
required  were  reduced  considerably  below  even  the  judicial  rents. 
Thus  the  new  lords  of  the  soil  owed  their  position,  not  to  long- 
continued  and  earnest  efforts,  but  rather  to  forced  legislation 
which  made  them,  almost  in  spite  of  themselves,  the  debtors  of  the 
State  for  a  reduced  yearly  charge.  For  many  of  them  the  annuity 
remains  a  "rent,"  and  they  have  little  real  understanding  of  their 
true  position.  The  tenants  bought  largely  because  it  was  to  their 
immediate  advantage  in  yearly  expenditure  to  do  so.  To  the 
additional  advantages  of  ownership  over  tenancy  they  paid  little 
attention.  Thus  the  danger  of  a  drop  in  productivity,  commensu- 
rate with  the  decrease  in  payments,  was  very  great.  For  these 
reasons  it  may  be  said  that  alone  the  Irish  Land  Acts  would  have 
had  little  advantageous  effect  on  the  economic  situation;  that 
only  because  other  measures  were  contemporaneously  taken  has 
this  activity  of  the  State  been  successful.  The  most  striking  and 
most  successful  of  these  measures  was  that  movement  to  whose 
history  and  principles  and  achievements  the  remainder  of  this 
book  is  devoted. 


CHAPTER  III 

EARLY  HISTORY  OF  THE  IRISH  CO-OPERATIVE 

MOVEMENT 

IN  the  crisis  into  which  Ireland  had  fallen  by  the  last  quarter  of 
the  nineteenth  century,  and  for  which  the  land  legislation  was  only 
a  partial  remedy,  there  fortunately  appeared  a  man  with  a  con- 
structive policy  and  with  the  energy  and  courage  to  put  it  into 
effect.  Sir  Horace  Plunkett  will  be  known  among  the  great  states- 
men of  Ireland  because  the  co-operative  system  which  he  inaugu- 
rated and  so  largely  carried  out  is  the  basis  of  the  new  economic 
and  social  structure  of  the  country.  This  policy  was  built  to  meet 
the  peculiar  difficulties  under  which,  as  we  have  seen,  Ireland  was 
laboring.  It  knew,  consciously  at  least,  no  European  model.  It 
gained  much  in  principle  and  encouragement,  but  little  in  practical 
direction  from  the  co-operative  movement  in  England.  It  was  an 
Irish  movement,  created  by  Irishmen  to  meet  Irish  conditions. 
Nevertheless,  its  success  has  already  won  for  it  the  recognition  of 
social  reformers  everywhere,  and  the  programme  of  rural  recon- 
struction for  which  it  stands  has  found  acceptance,  not  alone  in 
England  and  Scotland,  but  in  countries  as  remote  as  Finland  and 
India.  To  meet  the  manifold  problems  of  economic  distress  and 
social  instability  upon  which  the  activities  of  the  State  alone  could 
have  but  a  slight  effect,  Sir  Horace  Plunkett  proposed  a  new 
agency,  entirely  voluntary,  and  based  upon  the  principle  of  co- 
operation. 

The  principle  may  be  defined  in  more  general  terms  as  organi- 
zation for  common  effort  on  a  basis  of  equality.  In  Ireland,  as 
elsewhere,  it  had  been  of  primary  importance  under  earlier  and 

50 


HISTORY  OF  CO-OPERATIVE  MOVEMENT        51 

more  primitive  conditions.  Anthropologists  have  yet  to  discover 
a  race  which  has  not  depended  on  mutual  aid  in  its  early  struggles 
for  survival.  The  long  persistence  of  primitive  conditions  in  Ire- 
land, which  some  one  has  said  seemed  to  have  emerged  late  from 
the  hands  of  the  Creator,  was  accompanied  by  the  late  contin- 
uance of  institutions  and  customs  founded  on  co-operative  effort. 
The  land  system  in  vogue,  by  which  ownership  was  vested  in  the 
tribe  or  sept,  has  already  been  noted.  Likewise,  the  social  life  of 
the  people  was  organized  on  a  community  basis.  Though  modern 
co-operation  in  the  more  specialized  sense  has  very  little  resem- 
blance to  this  tribal  organization,  it  does  depend  on  the  same 
fundamental  qualities  of  human  nature.  The  heritage  of  associ- 
ative faculties  which  had  been  developed  was  of  the  greatest 
value  in  the  new  movement. 

Already  in  the  early  part  of  the  nineteenth  century,  the  persist- 
ence of  this  trait  in  Irish  character  had  been  proved.  The  success 
and  tragic  failure  of  the  Ralahine  community  is  among  the 
romances  of  co-operative  history.  Strangely  enough,  that  experi- 
ment, which  was  connected  with  the  early  pre-Rochdale  move- 
ment, took  place  in  the  country  districts  of  Ireland,  not  far  from 
the  site  of  the  first  co-operative  creamery.  It  developed  out  of  a 
visit  to  Dublin  in  1823  by  Robert  Owen,  who,  if  not  the  father 
of  the  Rochdale  movement,  was  certainly  its  forerunner.*  Seldom 
does  the  missionary  of  a  new  gospel  secure  a  more  enthusiastic 
follower.  The  meeting  in  the  Rotunda  at  which  Owen  exposed  the 
theory  of  a  co-operative  commonwealth  was  attended  by  John 
Scott  Vandeleur,  a  large  landowner  in  County  Clare.  Aroused 
to  enthusiasm  by  the  Utopian  dream  which  was  set  forth,  and 
convinced,  after  some  years  of  deliberation,  of  its  practicability, 

*  Previous  to  1844,  the  date  of  the  foundation  of  the  Rochdale  Society,  which 
is  generally  looked  upon  as  the  beginning  of  the  co-operative  movement  as  we 
know  it  to-day,  there  were  many  co-operative  societies  in  England.  These  largely 
followed  the  teachings  of  Robert  Owen,  and  were  far  more  Utopian  than  the 
present  co-operative  movement.  They  were  to  lead  very  shortly  to  the  Co-operative 
Commonwealth . 


52          RURAL  RECONSTRUCTION  IN  IRELAND 

he  determined  to  put  the  scheme  into  operation.  In  1831  J.  C. 
Craig,  a  disciple  of  Owen,  was  brought  over  from  England  to  take 
charge  of  the  experiment.  He  was  confronted  by  a  situation  which 
would  have  daunted  a  less  resolute  champion.  The  whole  country- 
side was  in  a  state  of  unrest  bordering  upon  revolution.  Now  and 
again,  as  their  abject  condition  became  unbearable,  the  peasantry 
burst  forth  into  all  forms  of  excess  and  outrage.  Craig  himself 
first  succeeded  to  a  position  as  overseer  left  vacant  through  the 
murder  of  his  predecessor,  and  on  more  than  one  occasion  his  own 
life  was  threatened.  However,  an  association  was  formed  which 
took  over  a  large  section  of  Vandeleur's  estate  and  proceeded  to 
conduct  it  on  a  communistic  basis.  The  land  was  tilled  in  common 
and,  while  family  life  was  not  destroyed,  its  interests  were  subor- 
dinated to  those  of  the  group.  A  system  of  labor  cheques  such  as 
Owen  had  devised  for  his  so-called  labor  exchanges  formed  the 
currency  of  the  community.  "Under  this  regime  the  landlord  was 
relieved  of  anxiety  and  care  for  his  property  and  person;  the 
laborer  was  industrious,  cheerful,  and  contented;  machinery  was 
hailed  as  a  blessing  instead  of  being  denounced  and  destroyed 
as  a  curse;  the  land  already  under  cultivation  was  improved,  and 
a  large  tract  of  that  which  had  hitherto  been  waste  was  brought 
into  a  state  of  high  tilth  by  spade  labor.  The  people  were  in- 
structed and  amused;  idleness,  drunkenness,  quarreling,  men- 
dicity, and  a  host  of  kindred  evils  were  utterly  banished,  whilst 
the  effect  upon  the  surrounding  population  was  of  the  best  pos- 
sible kind,  repressing  revenge  and  raising  hope  in  moody  and 
discontented  breasts,  from  which  the  former  had  never  been 
absent  and  the  latter  had  never  dawned."* 

This  amazing  success  of  the  co-operative  principle,  though 
applied  in  a  form  quite  different  from  that  taken  by  the  modern 
movement,  indicated  the  natural  aptitude  of  the  Irish  peasantry 
for  combined  action.  And  though,  through  no  fault  of  its  own, 
this  little  co-operative  commonwealth  on  the  Shannon  finally 

*  William  Pare,  "Co-operative  Agriculture"  (Longmans,  1870),  p.  xviii. 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         53 

failed,  after  two  years  of  most  encouraging  development,  its  short 
life  had  illumined  for  a  moment  the  future  of  Irish  co-operation. 

In  1888,  after  a  long  absence  in  America,  Sir  Horace  Plunkett 
returned  to  his  home  in  Ireland.  The  situation  was  critical.  To 
all  manner  of  evils  within  the  country  itself  was  now  added  the 
competition  of  the  foreigner.  Ireland  no  longer  enjoyed  extraordi- 
nary advantages  on  account  of  her  close  proximity  to  the  markets 
of  England.  The  adoption  of  Free  Trade  in  the  interests  of  the 
English  manufacturing  classes  in  1846  had  put  an  end  to  artificial 
barriers  against  foreign  competition;  science  and  inventive  genius 
had  now  reduced  the  natural  barriers  until  they  were  negligible. 
Grain  freights  from  Chicago  to  Liverpool  were  more  than  halved 
between  1871  and  1884;  the  price  of  wheat  dropped  41  per  cent. 
At  the  same  time  Irish  transport  facilities  did  not  keep  pace  with 
these  improvements.  The  rates  for  carriage  from  many  points  in 
Ireland  to  the  English  markets  exceeded  those  from  the  more 
distant  parts  of  America.*  In  this  way,  not  only  were  the  virgin 
resources  of  new  lands  arrayed  against  the  Irish  farmer,  but  also 
the  more  efficient  and  scientific  production  of  old  countries  which 
had  already  met  the  problem  of  a  declining  agriculture.  Beef  from 
the  Americas  and  butter  from  Denmark  were  rapidly  displacing 
Irish  products.  The  latter  country,  after  a  period  of  depression 
and  poverty  quite  as  serious  as  that  from  which  Ireland  was 
suffering,  was  now  rapidly  rebuilding  its  economic  structure  by 
means  of  co-operative  organization  and  agricultural  education. 
Quite  independently,  Sir  Horace  came  to  the  conclusion  that  in 
these  two  agencies — and  primarily  the  former — lay  the  salvation 
of  his  own  country. 

The  Co-operative  Union,  the  propagandist  body  of  the  English 
industrial  movement,  had  already  recognized  the  possibility  of 

*The  Vice-Regal  Commission  on  Irish  Railways  in  1910  declared  that  a  reduc- 
tion hi  rates  was  urgently  needed.  But  it  also  pointed  out  that  this  was  impossible 
without  Government  purchase  and  so  Government  subsidy,  and  that  the  most 
immediately  practicable  step  was  to  improve  the  methods  by  which  Irish  produce 
was  prepared  for  shipment,  and  the  regularity  with  which  consignments  were  sent. 


54         RURAL  RECONSTRUCTION  IN  IRELAND 

co-operation  in  Ireland.  In  1888,  at  a  meeting  held  at  the  Irish 
Exhibition  in  London,  much  interest  had  been  aroused  by  a  paper 
read  by  Benjamin  Jones,  a  leading  English  co-operator,  on  "The 
Possibility  of  Developing  the  Resources  of  Ireland  by  a  Scheme 
of  Co-operative  Production,"  and  a  committee,  known  as  the 
"Irish  Co-operative  Aid  Association,"  was  formed  to  give  practi- 
cal effect  to  his  suggestions.  This  body  was  almost  immediately 
dissolved,  however,  when  it  was  found  that  the  Co-operative 
Union  was  ready  and  willing  to  undertake  the  proposed  work. 
In  pursuance  of  this  undertaking,  its  secretary,  J.  C.  Gray,  made 
two  visits  to  Ireland,  and  his  report  on  the  number  and  condition 
of  the  existing  societies  at  the  Congress  of  1889  was  followed  by 
a  grant  to  the  North- Western  Section,  of  which  Ireland  was  con- 
sidered a  part,  of  £50  for  a  vigorous  propaganda. 

Mr.  Gray  found  that  there  were  thirteen  co-operative  stores 
already  at  work  in  Ireland;  some  of  these  had  achieved  a  measure 
of  success;  others,  like  the  Dublin  Society,  were  on  the  verge  of 
failure.  "The  miserable  poverty  of  most  of  the  people  makes  it 
almost  impossible,"  he  stated,  "that  they  should  commence  co- 
operation on  their  own  initiative;  and  were  even  that  possible, 
they  lack  the  confidence  in  each  other  necessary  to  success." 

Nevertheless,  his  outlook  was  not  hopeless.  "That  the  time  is 
ripe  for  co-operative  work  in  Ireland  I  am  fully  convinced.  The 
Traders'  Defence  Association  of  Scotland  has  already  been  on 
the  ground  before  us,  and  is  giving  us  gratuitous  advertisements 
in  the  Irish  newspapers,  as  will  be  seen  by  the  following  example 
which  has  been  cut  from  the  General  Advertiser: 

^CO-OPERATION  v.  PRIVATE  ENTERPRISE 
'To  the  Editor,  General  Advertiser. 

'Traders'  Defence  Association  of  Scotland, 
C3  West  Campbell  Street,  Glasgow, 
'2  3rd  August,  1888. 

'SiR, — Allow  me  to  draw  the  attention  of  your  readers  to  the 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         55 

following:  On  Wednesday,  ist  August,  at  a  meeting  of  co-opera- 
tors held  at  the  Irish  Exhibition,  London,  a  committee  was 
appointed  "To  endeavor  to  carry  the  system  of  co-operation  into 
practical  operation  among  the  Irish  agricultural  and  industrial 
classes."  Speakers  at  the  meeting  said  they  wished  to  see  co-opera- 
tion worked  out  in  Ireland  the  same  as  in  England  and  Scotland, 
so  the  traders  in  Ireland  may  know  what  will  be  the  result  should 
the  scheme  be  carried  out. 

'I  draw  your  readers'  attention  to  this  that  the  manufacturers 
and  wholesale  and  retail  traders  in  Ireland  may  be  warned  in 
time,  and  that  they  may  not  make  the  mistake  made  by 
their  brethren  in  Scotland  and  England,  in  allowing  this  delusive 
system  of  trade  to  take  hold  and  increase;  but  take  action  in  time, 
and  prevent  it  gaining  a  foothold  at  all. 

'The  above  association  has  been  formed  by  the  Scottish  traders 
to  do  all  that  legitimately  can  be  done  to  free  our  trade  from  the 
unfair  competition  of  co-operative  stores  as  at  present  conducted, 
and  we  will  be  glad  to  communicate  with  any  similar  association 
that  may  be  formed  in  Ireland. 

'I  am,  etc., 

'ROBERT  WALKER, 

'Organizing  Agent.' 

"On  behalf  of  the  co-operative  movement  generally,  I  should 
like  to  thank  the  Traders'  Association  for  this  splendid  testimony 
to  the  efficacy  of  the  co-operative  system." 

During  his  visit  to  Ireland  Mr.  Gray  had  come  in  contact  with 
a  number  of  sympathizers  in  the  co-operative  movement,  including 
Sir  Horace  Plunkett.  An  article  by  the  latter  had  recently 
appeared  in  the  Nineteenth  Century  on  Co-operative  Stores  in 
Ireland,  in  which  he  showed  the  particular  value  of  the  movement 
for  that  country,  and  the  necessity  of  a  strong  propagandist  effort. 
He  referred  to  the  success  of  the  experiment  at  Dunsany  which  he 
had  started  before  going  out  to  America.  Again  we  quote  Mr. 


56         RURAL  RECONSTRUCTION  IN  IRELAND 

Gray's  report:  "This  store  has  been  established  eleven  years.  It 
owes  its  origin  to  the  efforts  of  Mr.  Plunkett,  who,  by  reading  an 
account  of  the  co-operative  system  in  some  work  on  political 
economy,  endeavored  to  put  these  principles  into  practice  by  start- 
ing a  store.  The  difficulties  at  starting  were  great.  The  light  of 
the  Central  Board  had  not  penetrated  thus  far,  consequently  the 
promoters  knew  not  where  to  turn  for  advice  as  to  the  best  method 
of  constituting  a  society.  It  thus  came  about  that  the  store  was 
registered  as  a  company  under  the  Joint-Stock  Act,  instead  of 
taking  advantage  of  the  Industrial  and  Provident  Societies  Act. 
When  I  state  that  capital  has  enjoyed  a  dividend  of  10  per  cent, 
under  this  constitution,  and  although  a  dividend  has  been  made 
for  the  customers,  the  members  have  been  compelled  to  take  it 
out  either  in  cash  or  goods,  you  will  understand  what  I  mean  when 
I  say  that  the  advantages  of  thorough  co-operation  have  not  been 
enjoyed  by  the  members  of  this  store.  Since  my  visit,  the  directors 
have  decided  to  adopt  the  suggestion  then  made  that  the  company 
should  be  converted  into  a  society  on  our  model,  giving  capital  5 
per  cent,  and  letting  the  members  share  the  full  benefits  of  their 
purchases  and  accumulate  their  profits.  They  have  also  paid  the 
full  subscription  to  the  Co-operative  Union,  and  promised  to 
co-operate  with  us  in  any  work  of  organization." 

The  first  efforts  in  Ireland  were,  therefore,  modeled  upon  the 
English  pattern  almost  exactly,  and  for  a  time  Sir  Horace  Plunkett 
shared  the  view  that  co-operation  by  consumers  was  the  first  step; 
yet  little  success  attended  the  efforts  which  were  now  made  in 
this  direction.  Even  in  England,  where  co-operation  was  thriving, 
the  rural  districts  were  barren  of  societies.  The  country  trader 
was  not  to  be  displaced  so  easily,  especially  since  a  large  part  of 
the  community  was  in  his  power.  On  the  whole,  for  such  districts 
general  stores  seem  to  be  a  later  step,  a  development  out  of  other 
co-operative  undertakings. 

In  this  connection,  the  history  of  the  Doneraile  Society,  one  of 
the  two  new  stores  established  as  the  result  of  this  new  propa- 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         57 

ganda,  is  illuminating.  Only  the  strategy  of  the  committee  upset 
the  plans  of  the  traders  to  wreck  the  society  at  the  start.  Then 
difficulty  was  experienced  in  the  matter  of  supplies.  The  Irish 
wholesale  houses — no  doubt  under  pressure — boycotted  the  new 
store,  so  that  goods  had  to  be  brought  from  England.  Likewise, 
the  local  bakers  refused  to  sell  bread  to  the  society,  which  was 
equal  to  the  emergency  and  proceeded  to  build  its  own  ovens.  The 
masons  employed  on  this  work  received  many  intimidating  letters. 
Against  such  bitter  opposition,  coupled  with  the  inertia  of  the 
farmers,  there  was  apparently  little  hope  of  progress. 

Fortunately,  greater  success  seemed  possible  in  another  direc- 
tion. At  this  time,  among  the  industries  of  the  Irish  countryside, 
which  were  in  imminent  danger  of  ruin  on  account  of  the  competi- 
tion of  more  advanced  and  better  organized  neighbors,  was  that 
of  butter-making.  Irish  butter,  which  at  one  time  enjoyed  an 
unchallenged  supremacy  in  the  English  markets,  had  already  lost 
that  position.  The  home-made  article,  fine  as  it  sometimes  was, 
could  not  compete  with  the  standardized  product  of  the  cream- 
eries of  Denmark  and  Normandy.  Beside  the  uniform  unvarying 
product  of  the  centrifugal  separator  and  the  mechanical  churn, 
the  household  product  seemed  unsightly  and  unpleasant.  At  its 
best,  it  hardly  surpassed  the  creamery  product;  at  its  worst,  it 
was  unfit  to  adulterate  margarine.  Yet  Irish  farmers  showed  no 
inclination  to  make  use  of  the  new  methods.  Canon  Bagot,  who 
zealously  devoted  an  active  life  to  an  effort  to  arouse  them,  met 
with  very  slight  success.  His  enlightened  proposal  to  establish 
co-operative — or,  more  properly,  joint-stock — dairies,  together 
with  a  central  executive  council  to  be  elected  by  the  local  associa- 
tions for  the  purpose  of  superintendence,  advice,  and  assistance  in 
marketing,  was  a  close  anticipation  of  the  developments  soon  to  be 
realized.  But,  despite  the  fact  that  his  propaganda  extended 
through  the  country,  it  was  found  impossible  to  overcome  the 
general  inertia.  The  conservative  agricultural  class  preferred  to 
await  the  capitalist  entrepreneur  who  would  lead  the  way — and 


58         RURAL  RECONSTRUCTION  IN  IRELAND 

absorb  the  profits.  And,  indeed,  by  1889  private  enterprise  was 
already  entering  the  field,  and  the  proprietary  creamery  seemed 
destined  to  become  the  chosen,  though  inefficient,  instrument  for 
the  rehabilitation  of  the  Irish  butter  industry. 

In  this  situation  Sir  Horace  Plunkett  perceived  an  opportunity 
for  a  more  successful  application  of  the  co-operative  principle. 
While  societies  of  consumers  for  the  purchase  of  general  necessi- 
ties might  be  difficult  to  establish  in  the  country  districts  of  Ire- 
land as  elsewhere,  organization  on  the  productive  side  of  the 
farmers7  business  was  an  alternative  worth  consideration.  In  this 
modification  of  his  original  co-operative  programme,  Sir  Horace 
was  following — although  unconsciously — experience  already 
gained  on  the  Continent.  In  dairying,  a  new  method  of  business 
organization  could  be  combined  with  an  equally  novel  and  more 
efficient  method  of  production.  And,  though  the  application  of 
co-operation  along  this  line  was  bound  to  encounter  the  additional 
obstacle  of  a  general  aversion  toward  new  methods,  the  arguments 
for  the  proposed  system  were  thereby  strengthened.  Moreover, 
while  the  Irish  butter  trade  was  undoubtedly  in  the  hands  of 
vested  interests,  these  were  not  so  seriously  or  immediately 
affected  as  in  the  case  of  the  country  traders.  The  challenge  was 
greater,  but  the  potential  advantage  to  Irish  farmers,  and  so  to 
Ireland  generally,  was  increased  to  an  even  greater  extent. 

For  these  reasons,  the  propaganda  of  the  new  Irish  Section  of 
the  Co-operative  Union  was  not  confined  to  the  formation  of 
co-operative  stores,  but  was  directed  as  well  to  the  organization 
of  societies  for  the  construction  of  creameries.  Sir  Horace  read  a 
paper  at  the  Congress  of  1890  on  "The  Best  Means  of  Promoting 
both  Distributive  and  Productive  Co-operation  in  Ireland,"  in 
which  he  indicated  the  possibilities  in  both  directions.  The  dis- 
cussion which  followed  showed  the  deep  interest  taken  by  the 
English  co-operators  in  this  new  effort.  While  two  stores  had  been 
established  during  1889,  the  more  significant  and  important 
achievement  was  the  Drumcollogher  Co-operative  Creamery 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         59 

Society.  It  represented  the  firstfruit  of  an  arduous  and  at  times 
discouraging  campaign.  The  persistence  and  patience  of  Sir 
Horace  Plunkett  and  his  loyal  band  of  supporters  was  tried  and 
tested  in  every  way  by  the  ignorance  and  suspiciousness  of  the 
Irish  farmers.  The  first  meeting  in  Lord  Monteagle's  dining- 
room  at  Foynes,  Co.  Limerick,  was  followed  by  fifty  more,  with- 
out visible  results.  At  cross-roads,  in  cottages,  in  the  houses, 
wherever  an  audience  could  be  gathered,  the  strange  "foreigner" 
preached  his  gospel.  On  one  occasion  the  agricultural  community 
was  represented  by  the  dispensary  doctor,  the  schoolmaster  and 
the  head  constable.  Sometimes  the  seemingly  enthusiastic  recep- 
tion proved  to  be  the  work  of  scoffers,  and  proceedings  had  to 
be  adjourned  to  more  quiet  quarters.  Still,  the  workers  perse- 
vered, gaining  a  few  new  sympathizers  here  and  there;  and 
though  the  year's  achievement  was  not  remarkable,  it  was  the 
beginning.  The  Drumcollogher  Creamery  Society,  to  whose 
organization  we  shall  return  in  a  later  chapter,  was  immediately 
successful,  paying  the  highest  price  for  milk  in  its  neighborhood, 
and  emerging  at  the  end  of  the  year  with  a  profit  of  £417  on  a 
turnover  of  £9660.  Convinced  of  the  value  of  the  new  Irish  move- 
ment, the  Co-operative  Union  made  a  grant  of  £150  for  two  years, 
which,  with  £250  from  Sir  Horace  Plunkett,  made  possible  a 
more  vigorous  propaganda  in  1890. 

In  that  year  the  workers  devoted  all  their  energies  to  the  cream- 
eries, and  definitely  abandoned  organization  of  farmers  as  con- 
sumers. The  difficulties  were  great,  however,  and  no  new  creamery 
was  actually  established,  though  eleven  were  reported  in  the 
course  of  formation.  Drumcollogher  continued  successfully,  mak- 
ing a  good  profit.  The  Co-operative  Union  indicated  its  confidence 
by  an  additional  grant  of  £200  to  the  Irish  Section  for  1891.  This 
made  possible  the  employment  of  a  paid  organizer,  and  Mr.  R.  A. 
Anderson,  who  was  selected  for  the  position,  was  a  most  fortunate 
choice.  He  set  to  work  with  characteristic  energy,  holding  over 
two  hundred  meetings,  and,  in  addition,  he  paid  a  visit  to  Sweden, 


6o         RURAL  RECONSTRUCTION  IN  IRELAND 

then  far  in  advance  of  other  countries  in  machinery,  skill  and 
organization.  At  the  Co-operative  Congress  of  1892  he  was  able 
to  report  a  total  of  seventeen  creameries  in  operation.  When  he 
had  begun  his  work  in  1891  there  were  only  two.  The  progress 
was  continued  in  the  following  years,  and  the  Irish  Section 
reported  at  succeeding  Congresses  the  steady  spread  of  co-opera- 
tive principle.  Mr.  Anderson,  in  his  report  for  1892,  declared  that 
the  country  was  showing  "a  far  greater  interest  in  the  co-operative 
movement  than  hitherto."  In  1893  special  investigation  revealed 
the  fact  that  there  were  twenty-five  creameries  in  operation,  and 
that  this  success  had  been  achieved  despite  the  greatest  difficulties. 
On  account  of  Mr.  Anderson's  illness,  the  advance  reported  in 
1894  was  less  rapid,  but  sustained.  At  the  end  of  that  year  there 
were  registered  fifty-six  dairy  societies,  with  eight  branches.  In 
the  meantime  a  federation,  the  Irish  Co-operative  Agency  Society, 
had  been  established,  and  had,  after  a  disastrous  beginning, 
re-established  itself  on  a  firm  basis.  Ten  co-operative  agricultural 
societies,  for  the  supply  of  agricultural  necessities,  had  been 
formed,  largely  with  the  help  of  the  Rev.  T.  A.  Finlay,  S  J.,  who 
had  joined  the  movement  at  this  time,  and  one  agricultural  bank. 
We  shall  return  to  these  developments  in  later  chapters.  This  total 
of  sixty-seven  societies  with  about  four  thousand  members  repre- 
sented a  movement  far  beyond  the  powers  of  individuals  or 
a  comparatively  informal  group  to  direct  and  supervise.  Moreover, 
the  Co-operative  Union,  largely  an  association  of  industrial  socie- 
ties, became  involved  in  the  struggle  between  the  Co-operative 
Wholesale  Society  and  the  Irish  creameries — a  chapter  of  consid- 
erable importance  in  co-operative  history  to  which  we  shall  recur 
later.  This  was  the  more  immediate  cause  for  the  decision  of  the 
leaders  of  the  Irish  Section  to  withdraw  and  assume  a  more 
independent  position.  Further,  it  was  clear  that  if  the  new  move- 
ment was  to  play  a  real  part  in  the  life  of  the  country,  it  must  be 
more  thoroughly  self-directed  and  more  completely  organized.  Up 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         61 

to  this  time  it  had  been  too  much  a  philanthropy,  too  little  an 
activity  of  Irish  farmers  themselves.  Home  rule  and  democratic 
rule  were  essential  for  further  development.  The  result  of  this 
necessity  was  the  formation  in  1894  of  the  Irish  Agricultural 
Organization  Society,  which  from  that  time  has  directed  the  devel- 
opment of  the  movement. 

The  forces  with  which  the  co-operative  movement  in  Ireland 
has  contended  were  such  as  would  have  effectively  discouraged 
less  resolute  pioneers.  It  was  a  perpetual  struggle,  not  only  against 
the  natural  enemies  of  a  new  form  of  economic  organization,  but 
also  against  those  who  might  have  been  expected  to  give  it  their 
support.  In  the  first  category  were  the  traders,  whose  position  as 
the  middlemen  of  the  agricultural  community  was  threatened. 
Co-operative  creameries,  only  slightly  less  than  co-operative 
stores,  constituted  a  menace  to  their  established  interests.  The 
principle  that  men  should  unite  to  carry  on  business,  which  might 
be  conducted  for  them  on  an  individualistic  basis,  was  bound 
sooner  or  later  to  interfere  in  a  more  serious  manner.  Thus  the 
societies  for  the  supply  of  the  requisites  of  production,  which 
followed  the  creameries  very  shortly,  were  a  direct  attack  upon 
their  position.  They  used  every  means — not  always  fair — to  com- 
bat and  discredit  the  co-operative  system.  The  Press  formed  the 
medium  for  constant  and  bitter  attacks.  Even  to  this  day  the 
Skibbereen  Eagle  screams  occasionally,  and  the  Mid-Ulster  Mail 
brings  alarming  reports  of  the  iniquities  of  co-operation.  But  this 
opposition,  serious  as  it  was  in  the  early  days,  was  overcome,  and 
is  now  an  asset  rather  than  a  hindrance  to  the  movement.  Co-oper- 
ation attacks  the  individualistic  system,  and  the  opposition  of  the 
representatives  of  that  system  is  inevitable.  No  co-operative  move- 
ment can  be  established  without  it,  and  since  it  is  more  easy  to 
understand,  it  is  not  so  difficult  to  combat. 

It  is  not  so  easy  to  explain  the  position  of  the  Nationalist  Party, 
which  has — with  a  few  honorable  exceptions — stood  in  frank 


62          RURAL  RECONSTRUCTION  IN  IRELAND 

opposition.  This  attitude  indicated  a  lack  of  faith  in  their  own 
appeal.  From  their  point  of  view,  co-operation,  like  all  other 
agencies  for  the  improvement  of  the  economic  and  social  condi- 
tions of  the  country,  was  a  menace  to  Home  Rule.  No  other  re- 
form which  might  bring  prosperity  could  precede  this.  To  attempt 
such  was  to  draw  a  red  herring  across  the  path.  There  must  be 
poverty  and  distress  in  the  country  in  order  to  maintain  the 
unrest  which  seemed  to  be  regarded  as  necessary  for  the  Nation- 
alist propaganda.  The  status  quo  was  their  vested  interest.  It  had 
been  enough  to  see  the  powerful  lever  of  the  land  agitations 
weakened  by  agrarian  legislation.  To  improve  the  position  of  the 
people  further  was  to  destroy  Home  Rule  utterly.  This  political 
antagonism  to  what  has  always  aimed  to  be  a  non-political  move- 
ment has  been  very  serious,  as  will  become  apparent  in  later 
chapters.  The  power  of  the  Nationalist  Press  has  been  ranged 
against  co-operation,  and  when  the  movement  has  been  in  a 
position  to  be  affected  for  good  or  ill  by  legislative  action,  the 
Party  has  always  been  consistent  in  its  attitude.  It  was  often 
claimed  that  co-operation  was  a  work  of  the  Unionists,  a  plot  to 
undermine  the  true  principles  of  nationality.  On  the  other  hand, 
some  Unionists,  with  equal  vehemence  and  perhaps  greater  fore- 
sight, have  asserted  that  it  was  a  new  form  of  Nationalism.  At 
an  early  meeting  in  County  Tipperary  a  promising  project  for 
a  co-operative  creamery  was  wrecked  by  the  declaration  of  an 
excited  listener  that  "Butter  must  be  made  on  Nationalist  lines, 
or  not  at  all."  But  while  the  official  Party  point  of  view  was  no 
doubt  sincerely  held  by  many,  this  opposition  was  fundamentally 
a  trade  opposition.  Since  farmers  were  pacified  by  success  in  the 
land  war,  the  traders  have  dominated  the  political  life  of  the 
country.  In  its  conflict  with  the  Party,  therefore,  the  co-operative 
movement  has  been  fighting  for  more  than  its  own  existence.  It 
has  been  working  for  the  recognition  in  political  matters  of  a 
certain  large  class  of  the  population,  whose  interests  in  the  hands 
of  another  group  had  not  been  properly  protected.  As  a  demo- 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         63 

cratic  movement  co-operation  has  been  opposed  by  the  opponents 
of  the  true  democracy.* 

But  the  most  serious  obstacle  to  the  co-operative  movement 
was  and  remains  the  conservatism  of  the  Irish  farmer.  Many 
projects  which  would  have  brought  great  benefit  to  the  country 
have  been  abandoned  because  the  lords  of  the  soil  were  suspicious, 
or  did  not  understand.  Every  sign  pointed  to  a  similar  fate  for 
co-operation.  In  the  early  days  it  was  usual  for  Sir  Horace 
Plunkett  and  Mr.  Anderson  to  be  asked  to  come  along  and  build 
creameries  of  their  own  at  which  the  farmers  might  sell  their 
produce.  The  failure  of  a  creamery  in  one  place  poisoned  the 
ground  for  miles  around;  success  was  as  often  incomprehensible. 
Those  who  see  to-day  the  movement  which  has  been  created,  and 
who  find  even  in  non-co-operative  districts  the  vague  belief  that 
it  has  proved  of  great  benefit  to  the  country,  little  realize  the 
discouraging  reception  of  the  new  gospel  in  the  early  days.  Then 
it  was  often  almost  forcible  persuasion.  The  priest  and  the  school- 
master, and  perhaps  the  gentry,  were  convinced;  the  others  fol- 
lowed their  lead  because  it  was  their  custom  to  do  so.  It  is  a  great 
tribute  to  the  perseverance  of  the  pioneers  that  despite  this  inertia 
on  the  part  of  the  people  whom  they  aimed  to  benefit  such  a  large 
measure  of  success  has  been  attained. 

The  credit  belongs  largely  to  Sir  Horace  Plunkett.  It  has  been 
his  untiring  zeal  and  the  inspiration  of  his  leadership  which  has 
brought,  despite  every  form  of  opposition,  the  gradual  accept- 
ance of  the  co-operative  principle,  and  its  practical  application 
throughout  the  country.  His  own  personality  and  connections 
seemed  very  much  against  him.  Avowed  convictions  on  other 
questions  which  were  not  in  line  with  those  of  the  mass  of  his 
countrymen,  in  a  country  in  which  nothing  was  deemed  extraneous 
to  the  matter  in  hand,  apparently  precluded  the  success  of  his 

*In  support  of  this  view  it  is  interesting  to  note  that  the  modern  Sinn  Fein 
movement,  which  represents  to  a  large  extent  a  democratic  revolt  against  the  Party 
machine,  reckons  many  staunch  advocates  of  co-operation  among  its  leaders. 


64         RURAL  RECONSTRUCTION  IN  IRELAND 

activities.  He  was  of  the  Ascendancy,  a  Protestant,  a  Unionist, 
and  of  a  family  which  held  large  domains  in  County  Meath.  No 
more  damning  qualifications  for  the  leadership  of  a  movement 
among  the  Irish  peasantry  could  have  been  combined.  Parnell, 
Protestant  and  landowner  though  he  was,  shared  the  political 
convictions  of  the  mass  of  the  people.  The  echoes  of  the  Land 
War  still  reverberated  throughout  the  country,  and  many  would 
not  believe  that  co-operation  was  not  a  deep-laid  scheme  to  make 
possible  an  increase  in  rents.  Others  were  rendered  suspicious 
by  Sir  Horace's  avowed  Unionism.  How  a  person  of  his  politics 
and  religion  and  class  could  be  unselfishly  interested  in  the  wel- 
fare of  Ireland  and  the  Irish  peasantry  was  beyond  comprehen- 
sion. And  withal,  he  was  a  quiet  man,  not  given  to  the  boisterous 
geniality  which  was  an  essential  of  popularity  among  many  of  the 
farmers.  Yet  notwithstanding,  Sir  Horace  Plunkett  successfully 
attacked  as  difficult  a  problem  as  any  reformer  ever  faced — the 
awakening  of  a  people  from  their  lethargy  to  an  active  and  reso- 
lute effort  in  their  own  behalf. 

This  accomplishment  is  to  be  attributed  to  two  reasons:  the 
correctness  and  appeal  of  the  co-operative  principle  as  Sir  Horace 
adapted  it  for  Ireland,  and  the  magnetism  of  his  own  personality. 
Few  movements  which  have  depended  so  much  on  voluntary  sup- 
port have  enjoyed  greater  loyalty  on  the  part  of  all  connected 
with  it.  And  this  has  largely  been  due  to  the  honesty  and  straight- 
forwardness of  its  leader.  "Why,  you  ask,  am  I  content  to  leave 
a  pleasant  home  in  the  city  and  to  travel  about  among  these  hills 
in  this  weather,  with  so  little  to  show  for  my  work  when  the  night 
has  come?  I  often  ask  myself  that  question.  It  is  that  I  see  back 
there  in  Merrion  Square  a  man  who  is  still  working  at  his  desk. 
He  has  even  less  incentive  for  his  work  than  I.  With  perfect  truth 
I  can  say  that  it  is  he  who  has  led  me  to  spend  my  life  in  this 
way.  And  it  is  a  good  way."  That  is  the  way  one  of  the  foremost 
enthusiasts  of  the  movement  put  it;  a  man  who  has  given  his  best 
services  for  twenty  years,  without  payment,  to  practical  work  in 


HISTORY  OF  CO-OPERATIVE  MOVEMENT         65 

the  field.  Likewise,  Sir  Horace  Plunkett  has  been  able  to  enlist 
the  sympathy  and  active  support  of  many  of  his  own  class  in  the 
co-operative  movement.  The  Irish  aristocracy  had  been  forced 
into  a  position  in  which  its  undoubted  capacities  could  not  be 
employed  for  the  benefit  of  the  country.  Their  every  activity  was 
looked  upon  with  suspicion.  But,  with  the  enactment  of  the  land 
legislation,  the  fundamental  cause  of  antagonism  was  settled.  The 
gentry  were  now  released  to  take  a  real  part  in  the  life  of  the 
country.  Of  course,  this  could  only  be  in  connection  with  some 
form  of  non-political  activity,  such  as  was  offered  in  the  co- 
operative movement.  "New  duties — or  I  would  rather  call  them 
opportunities — are  emerging  from  the  present  social  revolution, 
which  far  exceed  in  interest  and  importance  those  appertaining 
to  the  former  relation  of  landlord  and  tenant."*  The  Irish  aris- 
tocracy has  answered  this  challenge  by  Sir  Horace,  and  is  proving 
its  capacity  and  power  in  the  support  and  active  interest  which 
it  has  displayed  in  the  co-operative  movement.  Other  groups  have 
been  equally  responsive  to  the  call.  The  clergy,  Catholic  and 
Protestant  alike,  have  been  among  the  strongest  and  surest  sup- 
porters. They  have  displayed  an  interest  in  the  material  as  well 
as  the  spiritual  welfare  of  the  people,  recognizing  the  intimate 
relation  between  the  two  and  the  ideal  aims  of  the  movement.  In 
many  cases  their  leadership  has  kept  the  people  together.  Like- 
wise, the  National  schoolmasters  have  been  of  much  assistance. 
In  fact,  men  of  every  class  and  of  every  political  and  religious 
persuasion  have  been  enlisted  in  the  co-operative  cause.  Under 
the  leadership  of  Sir  Horace  Plunkett  they  have  taken  up  willingly 
and  enthusiastically  the  burden  of  the  work  which  he  inaugurated. 
Irish  co-operation  has  been  rich  in  their  loyalty  and  patriotism. 

*  "Noblesse  Oblige." 


CHAPTER  IV 

PRINCIPLES  AND  IDEALS  OF  THE  IRISH 
CO-OPERATIVE  MOVEMENT 

IN  the  previous  chapter  we  have  described  the  early  history 
co-operation  in  Ireland,  and  have  enumerated  the  practical  re- 
sults of  the  preliminary  propaganda.  We  now  propose  to  consider 
the  theory  upon  which  the  societies  were  formed — their  under- 
lying principles,  their  practical  structure,  and  their  ultimate 
ideals.  The  word  "co-operation"  is  so  frequently  used  in  the  broad 
sense  of  "working  together"  that  it  is  important  to  define  clearly 
its  more  exact  meaning  as  a  method  of  social  reconstruction.  The 
programme  which  Sir  Horace  Plunkett  and  his  friends  proposed 
was  not  a  broad  principle  without  an  immediate  application;  it 
was  a  definite  practical  scheme  which  in  one  form  had  already 
been  proved  of  great  advantage  to  English  working  men.  Its 
application  in  Ireland,  although  it  involved  no  new  principle  and 
little  change  in  structural  detail,  did  represent  a  development  in 
the  theory  and  in  the  application  of  the  more  ideal  aims  of  the 
co-operative  movement. 

The  flannel  weavers  of  Rochdale,  to  whom  modern  co-operation 
everywhere  largely  owes  its  practical  success,  if  not  its  inspira- 
tion, were  gifted  with  rare  discernment  and  good  common  sense. 
They  had  learned  in  the  failure  of  Chartism  the  impotence  of 
political  agitation  to  improve  their  economic  situation.  Benevolent 
persons,  however  good  their  intentions,  for  the  most  part  aggra- 
vated rather  than  helped  their  distressful  condition.  As  individ- 
uals they  had  been  completely  worsted  in  the  competitive  struggle. 
From  such  a  situation  there  was  only  one  avenue  of  escape. 
Where  the  individual  was  weak,  many  organized  for  practical 

66 


IDEALS  OF  CO-OPERATIVE  MOVEMENT          67 

effort  might  prove  strong.  And  so,  without  memorials  to  a  com- 
placent Government,  without  an  appeal  to  disregarding  employers 
or  well-intentioned  philanthropists,  they  formed  an  association 
"for  the  pecuniary  benefit  and  the  improvement  of  the  social  and 
domestic  condition  of  its  members."  Relying  on  nothing  but  their 
own  united  exertions,  they  set  up — with  many  misgivings,  but  an 
earnest  purpose — their  little  shop  in  Toad  Lane;  an  insignificant 
beginning,  but  containing  in  the  principle  of  "self-help  through 
mutual  help"  the  foundation  of  the  now  world- wide  co-operative 
movement. 

The  position  of  the  Irish  farmer  in  1888  was,  in  many  respects, 
analogous  to  that  of  the  Lancashire  weaver  nearly  half  a  century 
earlier;  his  industry  seemed  no  longer  capable  of  providing  him 
with  the  necessaries  of  life.  Efforts  to  improve  his  situation 
through  legislative  action  had  done  little  more  than  prepare  the 
way  for  constructive  reforms;  for  the  chief  requirements  of  prog- 
ress among  Irish  farmers  were  individual  energy  and  initiative. 
Their  greatest  hope  lay  in  themselves.  Indeed,  owing  to  a  long- 
cultivated  belief  in  the  omnipotence  of  political  change,  their  own 
responsibility  in  the  matter  had  been  almost  completely  ignored. 
Dissatisfied  as  they  were  with  the  Government  under  which  they 
lived,  its  aid  was  invoked  in  every  contingency.  No  meeting  for 
dealing  with  distress  in  the  country  was  ever  held  without  the 
ubiquitous  question:  "What  is  the  Government  going  to  do  about 
it?"  Or,  if  the  appeal  to  Government  failed,  the  "great  heart  of 
America"  might  be  aroused  in  their  behalf.  As  long  as  the  devel- 
opment of  Ireland  was  considered  to  be  entirely  within  the  keep- 
ing of  others,  there  could  be  no  real  progress.  It  was  only  when 
the  responsibility  of  Irish  men  and  women  for  the  conditions  of 
their  country  was  realized  and  accepted  that  a  brighter  day  could 
be  said  to  be  dawning. 

But  this  individual  energy  and  initiative  only  became  effective, 
as  the  Rochdale  Pioneers  had  found,  through  combined  action 
with  other  individuals.  It  is  a  truth  which  is  applicable  in  every 


68         RURAL  RECONSTRUCTION  IN  IRELAND 

age  that  a  person,  or  many  unorganized  people  working  inde- 
pendently, can  seldom  secure  any  large  result.  Just  as  mutual 
aid  has  been  an  equally  important  factor  with  the  struggle  for 
survival  in  the  development  of  civilization,  so  in  the  modern 
world  association  and  organization  are  necessary  for  continued 
progress.  Not  alone  in  the  conduct  of  war,  but  in  the  arts  of  peace 
as  well,  the  principle  of  "self-help  through  mutual  help"  is  of 
primary  importance. 

Valuable  as  this  principle  was  for  the  Lancashire  weavers,  and 
the  thousands  of  English  working  men  who  have  since  accepted 
it  in  practice,  it  was  of  an  even  greater  advantage  for  the  Irish 
farmer.  From  the  nature  of  his  occupation,  his  life  was  an  isolated 
one.  A  large  portion  of  his  day  was  inevitably  spent  in  the  fields 
alone.  He  had  little  opportunity  to  discuss  matters  affecting  his 
industrial  life  with  his  fellows.  Farm  labor  at  its  best  offered  very 
little  time  for  association,  and  the  leisure  which  was  at  times 
possible  was  employed  in  more  relaxing  pursuits. 

Furthermore,  the  Irish  farmer  was  not  a  wage-earner,  but  a 
business  man — an  entrepreneur.  Co-operation,  as  conceived  in 
England,  was  a  method  of  improving  the  position  of  the  con- 
sumer; the  same  principle  of  organization  might  also  be  useful 
as  a  means  of  raising  wages,  but  a  special  form  of  association 
along  occupational  lines  was  necessary  for  this  purpose.  On  the 
other  hand,  the  whole  economic  life  of  the  farmer  depended  on 
the  efficient  conduct  of  his  varied  business  interests.  A  purchaser 
of  raw  materials,  and  a  producer  of  other  raw  materials  or  of  food- 
stuffs as  well  as  a  purchaser  of  the  necessities  of  life,  as  a  con- 
sumer, he  was  necessarily  involved  in  relations  with  various 
middlemen.  If  in  any  one  of  these  directions  he  failed  to  bargain 
effectively,  no  amount  of  zeal  in  other  directions  could  make  up 
for  the  loss.  Yet  the  group  with  whom  he  dealt  was  more  com- 
pletely organized  and  more  experienced  in  its  own  particular 
field  than  he,  in  the  isolated  life  which  he  lived,  could  ever  be. 
Occupied  in  an  industry  which  required  the  greatest  amount  of 


IDEALS  OF  CO-OPERATIVE  MOVEMENT          69 

business  as  well  as  technical  education,  the  agriculturist  was 
handicapped  by  a  complete  lack  of  knowledge  and  individual 
impotence.  No  matter  how  carefully  he  might  conduct  his  affairs 
as  an  individual,  alone  he  could  not  deal  with  the  forces  con- 
fronting him.  The  land  legislation,  which  we  have  examined,  had 
gradually  created  in  Ireland  a  great  number  of  small  peasant 
proprietors.  The  scale  of  operations  of  each  of  these  men  was 
comparatively  small;  the  artificial  manures  which  the  individual 
bought,  the  amount  of  product  which  he  had  for  sale,  were  rela- 
tively insignificant.  But  he  depended  on  this  sale  for  his  very 
livelihood,  and  his  position  as  a  bargainer  was  therefore  as  weak 
as  that  of  the  ordinary  wage-earner.  The  only  way  he  could 
protect  himself  was  by  adopting  the  same  method  of  combination, 
finding  in  this  union  the  strength  which,  as  an  individual,  he 
lacked. 

Such  a  combination  for  business  purposes  may  be  achieved 
in  several  ways.  We  have  alluded  to  the  efforts  of  Canon  Bagot 
to  establish  an  Irish  creamery  system  upon  joint-stock  lines,  and 
to  the  failure  of  his  scheme.  The  joint-stock  company  is  a  method 
of  combining  many  small  capitals  to  achieve  a  common  end. 
Through  its  agency  the  farmers  might  succeed  in  carrying  on 
their  business  in  many  directions  in  a  way  which  would  measur- 
ably improve  their  situation.  And  yet,  despite  its  advantages  and 
its  proven  usefulness  in  the  development  of  industry,  it  was 
inferior — as  we  shall  see — to  the  alternative  scheme  of  co- 
operative organization  adopted  in  1844  by  the  English  working 
men,  and  adapted  to  the  needs  of  Irish  farmers  by  Sir  Horace 
Plunkettin  1889. 

A  co-operative  society  may  be  defined  as  a  voluntary  associa- 
tion of  individuals,  combining  to  achieve  an  improvement  in  their 
social  and  economic  condition,  through  the  common  ownership 
and  democratic  management  of  the  instruments  of  wealth.  It  is 
outwardly  similar  to  the  joint-stock  company.  In  both  schemes 
membership  is  voluntary,  a  feature  which  strengthens  individual 


70         RURAL  RECONSTRUCTION  IN  IRELAND 

responsibility.  This  fact  differentiates  them  from  any  schemes  of 
social  reform  such  as  State  socialism,  where  the  individual  be- 
comes, whether  he  will  or  not,  a  partner  in  a  great  State  enter- 
prise. The  danger  in  such  a  system  is  the  fact  that  the  individual 
will  fail  to  realize  his  personal  responsibilities,  notwithstanding 
the  fact  that  this  is  essential.  Co-operation  and  the  joint-stock 
company  as  well,  by  preserving  the  voluntary  feature,  encourage 
individual  activity  and  self-reliance,  without  which  no  people 
can  become  prosperous  and  no  scheme  for  the  reconstruction  of 
society  successful. 

But  membership  in  a  co-operative  society  is  a  far  different 
matter  from  the  ownership  of  one  or  more  snares  in  a  company. 
In  the  one  case,  the  important  factor  is  the  individual;  in  the 
other  case,  the  share  capital.  Thus,  in  order  to  join  a  co-operative 
society,  it  is  necessary  to  receive  the  approval  of  the  committee, 
who  judge,  not  by  the  capital  contribution,  but  by  the  individual 
character,  business  reputation  and  civic  standing  of  the  applicant. 
No  test  of  race,  religion  or  politics  is  imposed,  but  only  those 
who  are  deemed  worthy  partners  in  a  common  enterprise  are 
admitted.  While  many  agricultural  societies  trade  on  character, 
the  ideal  of  the  industrial  societies  is  to  trade  for  cash  only. 
Agricultural  necessities,  such  as  fertilizers  and  seeds,  from  which 
the  returns  are  secured  only  after  a  period,  must  frequently  be 
sold  on  credit.  The  ordinary  trader  protects  himself  from  the 
losses  which  are  likely  to  occur  from  this  business  by  charging 
higher  prices.  The  co-operative  society,  by  choosing  its  members 
and  by  continuing  an  oversight  as  to  the  relations  between  them 
and  the  society,  ensures  that  no  losses  will  occur,  and  can  reduce 
its  prices  accordingly. 

Capital,  in  the  joint-stock  company  and  the  co-operative  society 
alike,  is  secured  on  the  basis  of  limited  liability.*  In  both  cases 

*This  applies  by  law  to  all  trading  societies  (in  Great  Britain  and  Ireland) 
but  not  to  credit  societies,  which,  as  will  be  seen  later,  may  be  organized  with 
unlimited  liability. 


IDEALS  OF  CO-OPERATIVE  MOVEMENT          71 

the  holders  of  shares  are  not  responsible  beyond  the  investment 
which  they  have  nominally — if  not  actually — made,  and  in  case 
of  liquidation  cannot  be  assessed.  But  while  this  capital  is  in  the 
joint-stock  company  the  chief  reason  for  which  the  society  is 
formed,  and  the  amount  which  may  be  subscribed  is  unlimited, 
in  the  co-operative  society,  where  membership  is  the  important 
consideration,  not  only  is  the  holding  of  a  member  limited  to 
£200,  but,  in  fact,  it  seldom  approaches  anywhere  near  that 
figure.  The  joint-stock  company  may,  and  the  co-operative  society 
must,  be  a  union  of  small  capitals,  and  in  practice  the  capital  of 
the  latter  is  usually  composed  of  very  small  amounts.  In  most 
cases  only  a  small  portion  of  the  actual  shares  is  called  up. 

The  essential  difference  between  the  two  methods  of  business 
organization  which  we  have  been  considering  is  even  more  clearly 
shown  in  the  treatment  of  the  share  capital.  In  the  one  case,  where 
it  is  the  primary  consideration,  the  interest  is  practically  unlim- 
ited. Profits  are  divided  entirely  on  the  basis  of  the  capital  sup- 
plied. But  in  the  co-operative  society  this  payment  is  strictly 
limited,  usually  to  5  per  cent.  It  is  felt  that  this  is  a  fair  return, 
compensating  the  holder  for  his  abstinence,  and  that  any  addi- 
tional profit  should  be  for  the  benefit  of  the  group.  The  profits 
over  and  above  this  amount  are  to  be  divided  among  the  members 
and  the  employees  on  the  basis,  in  the  one  case,  of  the  trade  done 
with  the  society,  and  in  the  other,  of  the  wage  received.  In  prac- 
tice, few  of  the  Irish  societies  have  allocated  their  profits  in  this 
way,  preferring  to  retain  any  surplus  as  a  reserve  fund,  for  which 
a  ready  use  is  found  in  the  natural  expansion  of  the  business. 
These  reserves  are  in  effect  community  property,  and  while  they 
raise  problems  which  we  shall  discuss  elsewhere,  their  existence 
gives  strength  to  the  sense  of  a  common  enterprise. 

So  also,  in  the  management  of  a  co-operative  society,  the  indi- 
vidual rather  than  the  capital  is  the  important  point.  The  voting 
unit  is  not  the  share,  as  in  the  joint-stock  company,  but  the  mem- 
ber. The  committee,  which  is  the  managing  authority,  and  exer- 


72          RURAL  RECONSTRUCTION  IN  IRELAND 

cises  general  control  over  the  affairs  of  the  society,  is  elected  on 
the  democratic  principle  of  one  man,  one  vote.  Each  individual — 
be  he  the  holder  of  two  hundred  shares  or  of  one — occupies  the 
same  position  so  far  as  determining  the  conduct  of  the  society 
is  concerned.  Where,  as  in  Ireland,  there  has  been  a  deep  chasm 
between  the  interests  and  activities  of  two  groups  in  the  popu- 
lation, and  where  the  distribution  of  wealth  was  quite  unequal, 
the  existence  of  an  organization  in  which  all  men  could  meet  on 
equal  terms  was  of  great  importance  in  developing  community 
consciousness. 

These  various  differences  of  structural  detail  indicate  some 
of  the  advantages  of  the  co-operative  society  over  the  joint-stock 
company  as  a  method  of  organizing  Irish  farmers.  Membership 
based  on  character  and  without  any  other  restrictions,  a  fixed  rate 
of  interest  on  shares,  democratic  management,  and  division  of 
profits  on  a  novel  basis  give  a  distinct  character  and  spirit  to  a 
co-operative  society,  which  is  absent  in  other  schemes  of  organi- 
zation. The  loyalty  of  the  members  must  extend  beyond  their 
investment  in  the  enterprise;  it  is  their  undertaking,  requires 
their  constant  support  and  interest,  and  its  return  to  them  will 
depend  on  the  measure  in  which  they  accept  these  obligations. 

But  it  is  rather  in  the  fact — on  which  we  have  already  in- 
sisted— that  a  co-operative  society  is  an  organization  of  indi- 
viduals that  its  great  superiority  over  the  joint-stock  company 
lies.  Its  greatest  social  and  educational  results  are  achieved 
through  this  particular  feature. 

The  decay  of  rural  life  which  has  spread  throughout  the  world, 
and  which  in  many  respects  is  more  serious  and  more  inimical 
in  new  countries  than  in  the  older  lands  of  Europe,  has  occurred 
through  the  weakening  of  community  institutions  and  community 
life.  We  have  already  pointed  out  the  comprehensive  nature  of 
the  Irish  rural  problem,  that  it  was  not  merely  a  question  of 
economic  decay.  In  Ireland,  as  A.  E.  has  put  it,  "we  have  not  had 
a  social  organization  since  the  time  of  the  clans."  The  landlord 


IDEALS  OF  CO-OPERATIVE  MOVEMENT          73 

system  never  provided  a  complete  or  stable  substitute  for  the 
tribal  organization;  and,  with  the  establishment  of  many  peasant 
proprietors,  even  its  pretensions  in  that  direction  came  to  an  end. 
Yet  such  community  organization  is  necessary,  not  only  for  the 
more  effective  conduct  of  its  business  interests,  but  also  for  edu- 
cating the  people  in  their  industry  and  their  duties  and  respon- 
sibilities as  members  of  a  social  order. 

The  formula  which  Sir  Horace  Plunkett  found  to  express  his 
idea  for  agricultural  reconstruction  in  Ireland,  "Better  farming, 
better  business,  better  living,"  covers  a  wide  field.  The  first  neces- 
sity, he  declared,  was  "Better  business."  No  improvement  in  the 
technical  methods  of  farmers  would  avail  until  they  carried  on 
their  own  business  for  themselves.  Only  in  this  way  would  they 
be  protected  from  the  abuses  to  which  their  business  ignorance 
and  individual  helplessness  laid  them  open.  Organization  alone 
would  solve  this  difficulty;  and  we  have  already  explained  the 
method  by  which  this  was  to  be  done. 

Organization  was  also  important,  however,  for  carrying  out 
the  first  portion  of  Sir  Horace's  aim,  "better  farming" — and  was 
essential  to  increase  the  product  of  the  farmer,  as  well  as  the 
share  in  the  ultimate  return  which  he  might  secure  through  his 
co-operative  society.  The  organizations  in  Ireland — unlike  the 
urban  industrial  societies  in  England — are  almost  wholly  com- 
posed of  persons  engaged  in  the  same  occupation.  Their  technical 
interests  are  therefore  very  much  the  same.  As  workers  on  the 
land,  they  are  all  concerned  with  new  methods  of  agricultural 
production,  the  more  scientific  application  of  their  labor,  the  use 
of  spraying  materials  and  artificial  manures,  improvements  in 
live  stock,  and  the  like.  Their  association  forms  an  excellent 
medium  for  the  distribution  of  information  of  this  kind.  More- 
over, the  farmer,  very  properly,  will  not  change  his  methods 
without  being  assured  that  these  changes  will  yield  him  a  com- 
mensurate return.  As  a  member  of  a  co-operative  society  he  knows 
that  any  increase  in  production  will  accrue  to  his  own  advantage. 


74         RURAL  RECONSTRUCTION  IN  IRELAND 

More  efficient  methods  of  production  will  not  be  neutralized  by 
increased  levies  from  middlemen.  Such  information  makes  a  far 
greater  appeal  to  the  farmer  (who  is  by  nature  conservative) 
when  it  has  been  tried  under  local  conditions.  The  readiest  agency 
for  such  an  experiment  is  to  be  found  in  the  co-operative  society. 
And  the  opportunity  for  common  discussion  and  mutual  obser- 
vation which  is  thus  given  brings  the  most  ignorant  member  up 
to  the  level  of  those  who  have  shown  themselves  more  receptive 
of  the  new  ideas. 

The  ultimate  aim  of  all  these  co-operative  activities  and  of 
community  organization  generally  is  the  development  of  a  sound 
individual  and  social  life.  If  Better  Business  only  was  to  be  at- 
tained, efficiency  experts  might  find  considerable  interest  in  the 
Irish  societies;  if  Better  Farming  was  the  ultimate  goal,  agricul- 
tural experts  and  teachers  might  gain  valuable  hints  from  Irish 
experience.  But  the  Irish  co-operative  movement  is  of  real  interest 
to  rural  reformers  everywhere,  and  to  all  who  look  forward  to 
a  better  civilization,  because  its  ultimate  concern  is  Better  Life. 
Unless  the  more  efficient  business  organization  and  the  improve- 
ment in  agricultural  technique  can  do  more  than  change  the 
material  returns  to  the  farmers,  it  falls  short  of  its  ideal.  It  must 
attain  that  complete  community  organization,  which  is  the  under- 
lying necessity  of  a  new  rural  civilization,  and  upon  which  the 
development  of  a  sound  individual  and  social  life  depends. 

The  modern  world  generally  has  ignored  the  importance  of  the 
local  unit  in  every  direction.  Its  business  is  run  on  the  individual- 
ist principle.  Its  educational  effort  is  largely  in  the  hands  of  cen- 
tral authorities,  and  local  needs  are  too  often  set  aside.  Its  social 
life  is  on  a  class  basis,  dividing  and  weakening  the  social  unit. 
Its  political  organization  does  not  truly  represent  the  community 
which  it  governs.  "We  often  hear  the  expression  'the  rural  com- 
munity/ "  writes  A.  E.,  "but  where  do  we  find  such  rural  com- 
munities? There  are  rural  populations,  but  that  is  altogether  a 
different  thing.  The  word  'community'  implies  an  association  of 


IDEALS  OF  CO-OPERATIVE  MOVEMENT          75 

people  having  common  interests  and  common  possessions,  bound 
together  by  laws  and  regulations  which  express  these  common 
interests  and  ideals,  and  define  the  relation  of  the  individual 
to  the  community.  Our  rural  populations  are  no  more  closely 
connected,  for  the  most  part,  than  the  shifting  sands  of  the  sea- 
shore. Their  life  is  almost  entirely  individualistic.  There  are  per- 
sonal friendships,  of  course,  but  few  economic  or  social  partner- 
ships. Everybody  pursues  his  own  occupation  without  regard  to 
the  occupations  of  his  neighbors."* 

And  yet  the  most  effective  action  in  every  direction  may  be 
taken  by  the  local  unit. 

Co-operation  stands  between  the  two  extremes.  On  the  one 
hand  is  a  crude  individualism  which  has  proved  in  every  way 
ineffective  and  inefficient.  On  the  other  is  socialism,  which,  in 
constructing  a  State  organization,  endangers  individual  expres- 
sion and  destroys  individual  responsibility.  The  via  media  is 
co-operation  or  community  organization.  Such  organization  gives 
scope  for  a  finer  individualism,  made  possible  by  association  with 
one's  fellows.  Through  common  effort  greater  self-expression  is 
to  be  attained.  Likewise,  the  more  perfect  social  organization  will 
be  created  by  giving  the  local  unit  its  proper  place.  In  the 
neighborhood  the  individual  must  realize  his  own  responsibilities 
towards  the  group,  and  so  his  obligations  in  the  larger  unit  of 
which  the  community  forms  a  part.  In  its  combination  of  the 
finer  individualism  and  the  more  practical  socialism,  the  co- 
operative ideal  as  worked  out  in  Ireland  forms  a  complete  pro- 
gramme of  rural  and,  in  fact,  social  reconstruction. 

The  community  organization  of  the  co-operative  society  is 
comprehensive  and  practical.  It  starts  with  the  fundamental 
economic  problems  which  are  common  to  all.  On  this  basis  it 
builds  the  complete  edifice.  It  secures  the  greatest  facilities  for 
individual  self-expression  and  development,  and  at  the  same  time 
the  true  social  structure  which  is  necessary  for  the  new  rural 

*  A.  E.,  "The  Rural  Community,"  p.  5. 


76         RURAL  RECONSTRUCTION  IN  IRELAND 

civilization.  In  the  consideration  of  the  actual  co-operative 
societies  to  which  we  now  turn,  these  ideals  may  often  seem 
remote  and  hidden.  And  yet  it  is  this  vision  of  the  yet  unrealized 
aims,  this  dream  of  the  future  which  carries  far  beyond  the  walls 
of  the  creamery  and  outside  the  portals  of  the  store,  which  has 
won  for  the  Irish  co-operative  movement  the  constant  loyalty  and 
unflagging  zeal  of  its  supporters.  In  the  practical  work  of  the 
actual  societies  which  have  been  formed  are  to  be  found  the  first 
steps  toward  that  finer  rural  civilization  for  which  they  are 
striving  and  which  yet  will  be. 


CHAPTER  V 
THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS 

WITH  the  foundation  in  1894  of  the  Irish  Agricultural  Organi- 
zation Society,  the  birth-pangs  of  the  movement  were  at  an  end, 
and  its  theory,  as  we  have  outlined  it  in  the  previous  chapter, 
was  sufficiently  well  determined  to  admit  of  continuous  prac- 
tical development.  Although  the  IA.O.S.  has  had  to  fight  un- 
ceasingly against  every  form  of  opposition — some  of  it  ignorant, 
more  of  it  based  on  the  hostility  of  vested  interests — its  leaders 
and  officials  and  most  of  its  supporters  have  known  exactly  what 
they  were  fighting  for,  and  there  has  never  been  any  likelihood 
of  their  being  permanently  defeated.  We  may  compare  the 
struggles  which  took  place  before  1894  to  the  effort  involved  in 
clearing  woodland  to  make  way  for  crops,  and  those  which  have 
gone  on  since,  to  the  labor  of  tending  the  crops  as  they  grow, 
and  protecting  them  against  every  form  of  depredation. 

In  this  and  the  following  chapters,  accordingly,  we  shall  take 
a  survey  of  the  co-operative  movement  from  the  point  of  view 
of  the  work  accomplished  by  the  various  types  of  society.  It  will 
be  found  that  in  the  essentials  of  organization  and  conduct  the 
local  societies  have  undergone  little  change.  It  is  only  in  number, 
efficiency,  and  technical  methods  that  great  changes  have  taken 
place.  This  applies  even  to  the  I.A.O.S.,  though  necessarily  to  a 
somewhat  less  degree. 

After  the  first  five  years  of  co-operative  propaganda  several 
points  upon  which  we  have  already  commented  became  clear. 
In  the  first  place,  co-operation  of  the  kind  contemplated  by  Sir 
Horace  Plunkett  and  his  followers,  as  especially  adapted  to  the 

77 


78         RURAL  RECONSTRUCTION  IN  IRELAND 

interests  of  the  Irish  producer,  developed  necessarily  along  dif- 
ferent lines  from  those  followed  in  England  by  the  artisans  of 
the  large  industrial  centres.  The  movement  was  not  at  that  time 
sufficiently  strong  to  overcome  the  instinctive  jealousy  which 
exists  between  the  producer  and  the  consumer,  and  a  separate 
form  of  organization  seemed  to  be  necessary  for  each.  Thus  it 
was  not  possible  to  expect  the  Co-operative  Union  to  continue 
to  take  the  responsibility  for  an  Irish  Section  which  was  following 
a  different  programme,  and  was  openly  discouraging  the  forma- 
tion of  co-operative  stores  on  the  English  model.  On  the  other 
hand,  so  much  progress  had  already  been  made  with  the  work 
that  it  was  beyond  the  powers  of  a  few  individual  workers  to 
carry  it  on  for  themselves,  or  to  provide  the  funds  necessary  to 
employ  trained  officials  for  the  purpose.  The  only  alternatives 
which  remained  were  the  creation  either  of  a  philanthropic  society 
or  of  a  federation  of  existing  societies.  The  former  alternative  was 
naturally  distasteful  to  advocates  of  "self-help  through  mutual 
help/'  but  the  latter  appeared  to  be  practically  impossible.  The 
outlook  of  the  movement  was  most  promising,  but  the  forty 
creameries  existing  in  1894-95  were  not  as  yet  in  a  sufficiently 
strong  financial  position  to  support  a  central  federation  with  any- 
thing more  than  a  minute  income.  The  expenses  to  be  borne  in  this 
year  can  be  measured  by  the  fact  that  three  hundred  and  fifteen 
meetings  were  held,  as  a  result  of  which  thirty-four  societies  were 
brought  into  existence,  and  fifteen  more  were  in  contemplation. 
The  plan  actually  adopted  was  one  of  the  most  striking  in- 
stances of  Sir  Horace  Plunkett's  genius  for  dealing  with  what 
most  people  would  consider  very  discouraging  circumstances. 
The  public  was  appealed  to  to  provide  a  fund  to  maintain  a 
central  organizing  federation  for  a  period  of  five  years  at  the 
rate  of  £2000  a  year,  by  means  of  shares,  subscriptions  and  dona- 
tions, payable  in  instalments.  The  societies  brought  into  exist- 
ence during  these  five  years  were  to  be  affiliated  to  the  central 
body  and  contribute  to  it  an  amount  proportioned  to  their 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        79 

resources.  Arrangements  were  to  be  made  by  which  they  would 
gradually  receive  representation  and  take  over  the  control,  so 
that  the  I.A.O.S.  would  in  time  become  a  true  federation. 

The  response  to  this  appeal  must  have  surprised  even  the 
enthusiastic.  The  fears  of  vested  interests  had  not  yet  been  ex- 
cited, the  scarecrow  of  political  and  religious  difference  had  not 
yet  been  erected  in  this  new  field  of  labor.  The  inaugural  meeting 
was  attended  by  men  of  all  classes  and  opinions,  but  there  was 
no  dissenting  note.  The  explanation  of  the  aims  of  the  Society 
given  by  the  founder  may  stand  to  this  day  as  a  comprehensive 
creed  for  all  agricultural  co-operators. 

"The  keynote  of  our  proposals,"  wrote  Sir  Horace  Plunkett, 
"is  the  proposition  that  the  Irish  farmers  must  work  out  their 
own  salvation,  and  further,  that  this  can  only  be  done  by  com- 
bination among  themselves.  I  am  quite  aware  of  the  difficulty 
which  at  once  suggests  itself.  It  will  be  pointed  out  that  effective 
combination  for  productive  or  commercial  purposes  is  not  to  be 
accomplished  simply  by  the  recognition  of  the  fact  that  it  is 
necessary  to  combine.  An  association  which  is  not  to  be  a  mere 
debating  society,  but  which  is  to  be  capable  of  joint  action,  must 
be  organized  on  certain  well-known  but  rather  complicated  lines 
in  order  to  be  permanent.  The  farmers,  from  the  nature  of  their 
occupation,  are  incapable  of  evolving  for  themselves  the  prin- 
ciples which  must  be  observed  in  framing  such  rules  as  will  do 
justice  between  man  and  man,  and  harmonize  the  interests  of  all 
concerned.  Even  when  a  farmer  grasps  the  idea  that  he  ought 
to  combine  with  his  neighbors,  he  cannot  put  before  them  an 
intelligible  and  workable  scheme.  Now  here  is  the  point  at  which 
without  any  interference  with  his  business,  without  weakening 
his  spirit  of  independence,  without  any  departure  from  the  prin- 
ciples of  political  economy,  we  can  do  the  Irish  farmer  a  great 
service.  To  bring  to  the  help  of  those  whose  life  is  passed  in  the 
quiet  of  the  field  the  experience  which  belongs  to  wider  oppor- 


8o         RURAL  RECONSTRUCTION  IN  IRELAND 

tunities  of  observation  and  a  larger  acquaintance  with  commercial 
and  industrial  affairs — that,  gentlemen,  is  the  object  and  aim  of 
this  Society.  Patriotism  and  philanthropy  alone  will  not  avail, 
or  the  work  would  have  been  done  long  ago.  I  admit  that  this 
is  no  easy  task.  We  have  got  to  turn  the  current  of  national 
thought  on  these  subjects  into  new  channels.  It  will  take  the  best 
men  in  Ireland  to  fulfil  such  a  mission,  but  the  best  men  in 
Ireland  are  with  us,  and  the  task  will  be  performed." 

Such  was  the  spirit  of  the  inaugural  meeting.  The  £10,000 
which  the  founders  believed  would  suffice  for  five  years  was 
guaranteed  at  once.  But  long  before  the  end  of  the  experimental 
period  the  expenses  of  the  I.A.O.S.  were  largely  in  excess  of 
£2000  a  year.  Meanwhile,  though  the  number  of  societies  was 
rapidly  increasing,  their  contributions  were  in  no  way  propor- 
tioned to  this  outlay — nor  was  there  any  likelihood  that  a  better 
position  could  be  reached  for  some  years.  Thus  from  the  very 
beginning  the  I.A.O.S.,  which  owed  its  existence  to  the  need  for 
a  self-supporting  democratic  federation  of  farmers,  assumed  the 
financial  aspect  of  a  charitable  society.  As  a  result  it  has  since 
spent  much  valuable  energy  in  the  attempt  to  find  sources  of 
income  to  meet  its  expenditure.  This  handicap  has,  in  fact,  per- 
sisted up  to  the  present  day,  in  spite  of  determined  efforts  to  give 
practical  effect  to  the  idea  that  local  societies,  which  were  formed 
and  helped  by  the  I.A.O.S.,  should  in  turn  render  it  self- 
supporting.  The  whole  question  of  finances  is  of  such  vital  im- 
portance to  those  who  wish  to  understand  the  structure  of  the 
co-operative  movement  that  we  have  thought  best  to  deal  with 
it  in  detail  in  the  following  chapter.  The  reader  to  whom  such 
technicalities  are  distasteful  may  omit  that  chapter  without 
breaking  the  sequence  of  thought  if  he  will  remember  that  local 
societies  formed  by  the  I.A.O.S.  are  bound  by  their  rules  to  pay 
an  annual  affiliation  fee  in  accordance  with  the  scale  laid  down 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        81 

from  time  to  time  by  the  annual  general  meeting  of  the  central 
body. 

Primarily  the  I.A.O.S.  was,  and  still  is,  a  propagandist  body. 
Its  work  in  this  direction  is  carried  out  by  the  free  distribution 
of  literature,  by  the  addressing  of  meetings,  and  by  all  such 
forms  of  publicity  as  the  funds  will  allow.  Emphasis  is  laid 
throughout  on  the  necessity  of  organizing  farmers  for  business 
purposes  in  order  to  supplement  the  help  given  by  the  State 
in  the  provision  of  land  and  of  technical  education.  The  slogan 
of  the  movement  is  the  formula  "Better  farming,  better  business, 
better  living."  The  first  is  believed  to  be  the  function  of  the  State, 
the  second  of  the  I.A.O.S.,  while  the  third  should  result  from  a 
proper  combination  of  the  other  two.  It  is  further  pointed  out 
that  the  co-operative  method  is  the  only  one  properly  applicable 
to  the  farmer's  business,  and  a  careful  exposition  of  the  advan- 
tages derived  from  joining  the  movement  is  given.  This  work, 
except  for  the  negligible  amount  derived  from  the  sale  of  publi- 
cations, brings  no  financial  return. 

The  next  function,  arising  directly  out  of  this,  is  the  organi- 
zation of  new  societies.  As  soon  as  a  demand  for  a  society  arises 
from  any  district,  the  organizer  who  is  responsible  for  that  dis- 
trict will  proceed  to  the  spot,  interview  leading  farmers,  and 
arrange  a  preliminary  meeting,  which  he  will  attend  and  address. 
If  possible,  a  provisional  committee  is  then  formed,  and  the 
organizer  will  help  this  committee  in  every  way,  by  providing  the 
necessary  forms,  rules,  and  so  on,  and  by  instructing  them  in 
the  best  methods  of  getting  the  society  started.  It  may  be  several 
months  or  even  a  year  from  the  time  when  the  project  was  first 
mooted  to  the  day  when  a  society  can  begin  to  work  under  local 
management,  and  during  this  period  the  organizer  must  always 
be  prepared  to  cope  with  any  emergencies  which  may  arise,  to 
repair  mistakes  due  to  lack  of  business  experience,  and  to  ward 
off  the  open  or  insidious  attacks  of  enemies.  The  amount  of  time, 
skill,  tact  and  patience  involved  in  this  task  can  only  be  dimly 


82          RURAL  RECONSTRUCTION  IN  IRELAND 

imagined  by  those  who  have  not  seen  the  process  at  first  hand. 
This  work  also  brings  no  return,  being  a  service  provided  free 
by  the  I.A.O.S.  When  the  society  is  actually  registered,  however, 
it  binds  itself  by  its  rules  to  affiliate  with  the  central  body.  The 
rules  are  provided  by  the  I.A.O.S.,  and  registration  is  effected 
through  it  at  a  less  cost  than  by  applying  directly  to  the  Registrar 
of  Friendly  Societies.* 

The  chief  work  of  the  central  body  at  the  present  time  lies  in 
the  inspection  and  general  supervision  of  existing  societies. 
Whenever  the  affiliated  societies  find  themselves  in  any  trouble, 
whether  through  lack  of  knowledge,  unexpected  emergencies, 
breakdown  of  machinery,  or  any  other  cause,  they  bring  their 
troubles  to  the  I.A.O.S.,  which  at  once  sends  the  proper  person 
to  visit  and  help  them  if,  as  is  usually  the  case,  it  is  not  possible 
to  remove  the  difficulties  by  correspondence.  In  addition  to  these 
special  visits,  the  organizer  in  charge  of  any  district  will  as  often 
as  time  will  permit  and  as  the  circumstances  of  the  society  seem 
to  demand  make  regular  rounds  and  pay  a  call  on  every  society 
in  his  charge.  It  will  be  his  business  to  have  all  kinds  of  local 
information  at  his  fingers'  ends — to  know  where  the  priest  is 
friendly  and  where  he  is  not,  where  the  schoolmaster  is  compe- 
tent, and  where  the  "gombeen-man"  is  threatening.  He  must  also 
know  the  weak  points  of  the  societies,  and  so  be  able  to  locate 
trouble  without  waste  of  time.  Above  all,  he  must  know  how  to 
adjust  his  methods  to  the  peculiarities  of  temper  of  the  manager 
or  secretary  in  each  case.  To  go  out  on  his  rounds  with  one  of 
these  men  is  a  liberal  education  for  any  one  interested  in  human 
nature. 

Generally  speaking,  the  organizers  have  had  an  all-round 
training  in  co-operative  methods,  and  the  limitation  of  their 
spheres  is  geographical  and  not  technical.  Special  men  have, 

*The  actual  cost  is  £2,  £i  registration  fee  and  £i  preliminary  affiliation  fee  to 
the  I.A.O.S.  Unaffiliated  societies  pay  £5  registration  fee  as  their  rules  are  not 
standardized  and  must  therefore  be  examined  in  detail. 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        83 

however,  been  assigned  from  time  to  time  for  certain  types  of 
work;  in  the  earlier  days  of  the  movement  there  were  special 
organizers  for  banks,  and  also  for  poultry  and  home  industry 
societies.  At  present  the  I.A.O.S.  has  a  creamery  expert  with 
three  assistants  who  supplement  by  technical  advice  the  work  of 
the  regular  organizers  in  connection  with  dairy  machinery  and 
scientific  butter-making.  There  are  also  specialists  in  the  use 
of  agricultural  machinery  by  co-operative  societies.  But  the  most 
highly  specialized  department  is  naturally  that  of  accounting  and 
auditing.  It  is  probably  in  the  keeping  of  accounts  that  the  local 
societies  meet  with  the  greater  part  of  their  difficulties,  and  it 
is  certainly  in  this  way  that  the  central  body  is  most  plainly  able 
to  help  them.  The  work  of  the  Audit  Office  at  the  Plunkett  House 
is  kept  quite  separate  from  the  other  activities  of  the  I.A.O.S., 
except  that  the  staff  is  under  the  general  direction  of  the  com- 
mittee acting  through  the  secretary.  The  department  charges 
reasonable  fees  for  work  done  and  is  practically  self-supporting. 
There  is  no  compulsion  on  affiliated  societies  to  have  their  audit- 
ing done  by  the  I.A.O.S.,  but  all  societies  are  bound  by  law  to 
have  their  accounts  audited  at  least  once  a  year  by  a  duly  quali- 
fied public  auditor,  and  most  of  them  are  able  to  see  the  advantage 
of  employing  an  auditor  who  possesses  a  sympathetic  under- 
standing of  co-operative  principles  as  well  as  a  knowledge  of 
accounting. 

Audits  are  conducted  in  two  ways:  either  the  books  are  sent 
up  to  the  Plunkett  House  and  there  examined  and  dealt  with,  or 
in  cases  where  more  detailed  attention  is  required  the  auditor 
visits  the  society  in  person  and  spends  as  much  time  on  the  spot 
as  may  be  required.  The  latter  is  evidently  the  more  satisfactory 
method,  as  the  society  gets  much  useful  advice  and  help  in  addi- 
tion to  the  actual  audit;  but  the  demands  which  it  makes  on  time 
and  money  render  it  prohibitive  except  in  cases  where  it  is  most 
obviously  needed.  However,  during  the  period  when  the  work 
in  the  office  is  not  so  heavy,  two  or  three  of  the  staff  are  employed 


84         RURAL  RECONSTRUCTION  IN  IRELAND 

by  the  I.A.O.S.  as  traveling  inspectors  and  visit  the  societies  with 
particular  attention  to  book-keeping  and  financial  details.  There 
is  no  doubt  that  the  help  thus  given  is  extremely  beneficial  and 
is  appreciated  by  the  societies. 

In  addition  to  these  activities,  the  I.A.O.S.  in  its  earlier  stages, 
as  we  have  seen,  bore  the  burden  of  practically  all  the  technical 
education  in  agricultural  matters  which  was  done  in  Ireland; 
instructors  were  sent  out  to  deal  with  butter-making,  poultry- 
keeping,  egg-production,  bee-keeping,  lace-making,  and  many 
other  such  subjects.  Questions  relating  to  live  stock  and  kindred 
matters  were  earnestly  discussed  at  general  meetings,  and  while 
this  work  was  a  heavy  tax  on  the  society  both  financially  and 
otherwise,  there  is  no  doubt  that  it  made  its  position  very  strong 
in  the  country.  These  functions  were  actually  handed  over  to 
the  Department  of  Agriculture  and  Technical  Instruction  after 
1900,  and  the  I.A.O.S.  was  thus  left  free  to  devote  more  time 
and  energy  to  the  single  purpose  of  co-operative  organization. 
The  expense  was  somewhat  reduced,  but  probably  the  revenue 
also  decreased,  as  farmers,  finding  that  they  had  to  look  to  the 
Department  for  these  services,  began  to  believe  that  the  State 
would  take  up  the  much  desired  role  of  universal  provider,  and 
thus  render  the  I.A.O.S.  (and  its  affiliation  fees)  an  unnecessary 
luxury.  However,  those  who  did  not  take  this  view  soon  came 
to  the  conclusion  that  in  many  ways  State  assistance  was  un- 
satisfactory, and  began  to  clamor  for  the  I.A.O.S.  to  resume  some 
of  its  original  functions.  This  tendency  was  very  much  increased 
after  the  change  of  policy  on  Sir  Horace's  retirement,  when  it 
became  apparent  that  the  Department  was  not  sympathetically 
inclined  towards  co-operative  societies.  As  a  result,  the  voluntary 
body  shortly  returned  to  the  practice  of  giving  technical  advice 
and  inspection  to  creameries  in  addition  to  that  given  by  the 
State,  and  has  also  employed  experts  to  advise  on  the  use  of 
agricultural  machinery  and  the  tillage  problems  connected  there- 
with. The  charge  has  been  made  from  time  to  time  by  the  Depart- 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        85 

ment  that  in  these  ways  the  I.A.O.S.  overlaps  with  its  work,  or 
tries  to  supersede  it.  On  the  other  hand,  co-operators  assert  that 
the  officials  of  the  Department  are  not  encouraged  to  give  the 
same  help  to  co-operative  societies  as  to  individual  farmers,  and 
that  their  teaching  is  anti-co-operative.  A  certain  amount  of 
technical  teaching  is  inseparable  from  the  work  of  organizing 
co-operative  societies,  and  as  long  as  the  two  bodies  are  not  in 
harmony  friction  is  bound  to  arise  on  this  point.  The  I.A.O.S., 
however,  tries  as  far  as  possible  to  avoid  overlapping  and  to  work 
in  conjunction  with  the  county  agents;  the  measure  of  success 
depends  largely  on  the  personality  of  the  men  employed  in  the 
various  districts. 

The  final  and  by  no  means  the  least  important  function  of  the 
I.A.O.S.  is  to  act  as  the  legal  and  political  representative  of  the 
organized  farmer.  Such  questions  as  the  disposal  of  creamery 
sewage  and  the  validity  of  certain  rules  are  frequently  brought 
to  the  courts,  and  in  these  cases  the  co-operative  societies  can 
look  to  the  central  body  for  expert  assistance.  The  levying  of 
the  excess  profits  tax  recently  has  afforded  a  good  example  of 
the  necessity  of  such  help  from  a  strong  and  competent  federa- 
tion. In  the  same  way  the  I.A.O.S.  is  able  to  advise  farmers  as 
to  the  progress  of  Bills  in  Parliament  which  affect  their  interests, 
and  to  voice  their  protests  or  approval.  Irish  farmers  have  not 
yet  sufficiently  recognized  the  necessity  of  this  kind  of  self- 
expression  and  have  suffered  severely  by  the  neglect  of  their 
interests  on  the  part  of  their  parliamentary  representatives.  No 
doubt,  however,  the  time  will  come  when  they  will  seek  to  follow 
the  example  of  the  agrarians  of  Germany,  or  of  organized  labor 
in  England,  and  to  make  themselves  articulate  by  combined 
pressure.  When  that  time  comes  it  is  to  the  I.A.O.S.  they  must 
look  for  the  proper  medium  of  expression,  and  it  will  then  become 
what  it  should  be  and  is  quite  competent  to  be — the  official  mouth- 
piece of  a  strong  farmers'  party,  political,  not  in  the  sense  of 
adhering  to  an  established  political  party,  but  as  representing  in 


86         RURAL  RECONSTRUCTION  IN  IRELAND 

a  political  sphere  the  interests  of  a  large  and  important  section 
of  the  community. 

We  come  now  to  consider  the  internal  organization  of  the 
I.A.O.S.  In  this  connection  it  is  worth  while  to  repeat  one  state- 
ment which  has  figured  largely  in  recent  controversies.  The 
I.A.O.S.  is  not  and  never  has  been  a  trading  body.  The  funds 
entrusted  to  it  are  devoted  solely  to  propagandist,  educational  and 
supervisory  work,  and  in  no  case  have  they  been  either  expended 
for  trade  purposes,  or  lent  or  given  to  any  local  society  for  the 
purpose  of  strengthening  its  capital  or  helping  it  in  a  financial 
way.  It  is  worth  while  emphasizing  this  point,  as  ignorant  or 
disingenuous  persons  have  repeatedly  made  the  statement  that 
the  State  subsidized  the  I.A.O.S.  to  engage  in  trade  at  the  expense 
of  other  ratepayers.  Confusion  has  always  existed  in  the  minds 
of  the  public  between  the  I.A.O.S.  and  the  Wholesale  Society 
(known  as  the  I.A.W.S.),  which  is,  of  course,  a  purely  trading 
federation,  but  in  no  case  have  funds  of  the  I.A.O.S.  been  used 
in  support  of  this  body. 

Since  the  reconstruction  which  was  completed  in  1904  the 
I.A.O.S  has  been  a  purely  democratic  body.  Its  general  com- 
mittee is  simply  a  federal  council  of  the  delegates  of  local 
societies,  just  as  the  Federal  Government  of  the  United  States 
is  a  council  of  the  delegates  of  the  separate  States.  The  elected 
members  of  the  committee  are  twenty  in  number ;  four  are  elected 
by  the  societies  of  each  of  the  four  provinces,  and  four  by  the 
individual  subscribers.  There  are  also  four  members  co-opted  by 
the  whole  committee,  and  the  Development  Commissioners  have 
a  right  to  propose  not  more  than  eleven  persons  for  co-option. 
They  have  at  present  six  representatives,  of  whom  three  are 
members  of  their  own  body.  The  president  and  vice-president 
are  additional  to  the  committee  (of  which  they  are  ex-officio 
members) :  they  retire  annually,  and  are  elected  by  the  affiliated 
societies.  This  is  an  important  point  to  observe,  as  by  reason  of 
the  fact  that  these  officers  have  been  unchanged  for  many  years 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        87 

the  fact  that  they  are  democratically  elected  each  year  is  apt  to 
be  overlooked.  Of  the  provincial  members,  eight  retire  each  year 
in  order  of  seniority,  and  are  eligible  for  re-election,  and  the  same 
applies  to  two  of  the  subscribers'  representatives. 

Nomination  papers  are  sent  to  all  affiliated  societies,  with  a 
list  of  the  existing  committee  and  officers,  and  an  indication  of 
those  who  retire,  at  least  two  months  before  the  date  of  the  annual 
general  meeting.  These  papers  must  be  returned  within  a  fort- 
night, and  from  them  voting  papers  are  prepared  for  each 
province  and  sent  to  the  affiliated  societies.  The  committee 
scrutinizes  the  votes  and  declares  the  result  in  the  Irish  Home- 
stead. Subscribers'  representatives  are  similarly  elected  after  the 
other  elections  have  taken  place.  Any  person  is  considered  to  be 
an  individual  member  of  the  I.A.O.S.  who  has  paid  a  subscription 
of  not  less  than  £i  for  the  current  year,  the  first  pound  being 
taken  as  a  non-interest-bearing  share. 

The  committee  thus  elected  "shall  have  control  of  all  business 
carried  on  by  or  on  account  of  the  I.A.O.S.,  subject  to  the  pro- 
visions herein  contained.  It  shall  arrange  the  hours  and  place  of 
meeting,  and  shall  meet  as  often  as  it  is  found  necessary  for  the 
transaction  of  the  business  of  the  I.A.O.S.,  provided  that  it  shall 
meet  at  least  once  a  quarter."  It  "shall  present  an  annual  report 
to  the  annual  meeting,"  and  may  appoint  sub-committees. 

There  are  several  sub-committees,  of  which  the  most  important 
is  the  office  and  finance  committee,  which  carries  on  all  the 
routine  business  from  month  to  month.  It  includes  one  repre- 
sentative of  each  province,  and  four  co-opted  members.  There 
is  also  a  creameries  sub-committee  made  up  in  the  same  way, 
and  a  smaller  one  to  deal  with  the  credit  societies.  The  members 
of  the  committee  and  all  officers  except  the  secretary  and  his 
assistants  are  unpaid.  The  secretary  and  assistant  secretaries  are 
appointed  and  removable  by  the  committee. 

The  chief  objection  which  appears  to  this  constitution  is  that 
it  tends  to  overmuch  centralization.  All  the  executive  work  is 


88         RURAL  RECONSTRUCTION  IN  IRELAND 

done  from  Dublin,  and  it  is  a  very  long  journey  from  most  of 
the  societies.  Consequently  the  members  of  the  office  and  finance 
committee  must  be  chosen  from  the  very  small  number  of  those 
who  have  opportunity  to  attend  it;  and  as  it  is  not  practical  for 
the  general  committee  to  meet  very  frequently,  power  tends  to 
concentrate  in  the  hands  of  two  or  three  members  and  officials. 

To  meet  this  tendency  of  democracy  to  develop  into  bureau- 
cracy, various  efforts  at  decentralization  have  been  made.  The 
final  scheme  was  worked  out  by  the  committee  and  put  into  effect 
in  the  early  part  of  1914,  and  was  somewhat  overshadowed  by 
the  subsequent  outbreak  of  war.  Four  provincial  sub-committees 
were  organized,  each  consisting  of  the  representatives  of  the 
several  provinces  on  the  central  committee,  and  having  an  office 
in  the  centre  of  the  province,  with  the  senior  organizer  as  secre- 
tary. These  bodies  discuss  local  questions,  and  all  proposals  for 
new  societies,  organizers7  reports  and  so  forth  come  before  them 
in  the  first  place.  A  system  of  devolution  while  retaining  central 
control  is  thus  provided.  In  order  to  give  further  local  repre- 
sentation, each  province  is  split  up  into  "conference  districts" 
covering  a  certain  number  of  societies.  Each  society  sends  a 
delegate  to  the  conference  held  in  the  centre  of  this  district; 
each  conference  elects  a  representative  to  the  advisory  committee 
for  the  province.  The  advisory  committee  sits  jointly  with  the 
provincial  sub-committee,  and  its  members,  though  they  have 
no  votes,  have  a  strong  consultative  and  advisory  power.  The 
method  by  which  this  scheme  should  work  is  described  as  follows 
in  a  leading  article  in  the  Irish  Homestead  (June  27,  1914): 

"It  is  one  of  the  chief  arguments  against  this  kind  of  meet- 
ings .  .  .  that  the  resolutions  passed  by  them  are  carried  no 
further.  This  is  unfortunately  only  too  true;  but  now  at  least 
there  is  no  shadow  of  excuse  for  such  a  state  of  things.  A  confer- 
ence is  called  at  which,  say,  twenty-five  to  thirty  societies  are 
represented,  each  by  a  delegate.  These  people  will  mostly  be 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        89 

known  to  one  another — they  are  in  their  own  country  on  their  own 
business;  we  may  expect  they  will  pass  such  resolutions  as  are 
important  for  them;  we  saw  that  at  various  recent  conferences 
resolutions  were  passed  requiring  figures  of  milk  receipts  and 
butter  returns  to  be  incorporated  into  the  auditor's  return  for 
creameries.  Very  good.  The  resolution  must  be  presented  to  the 
provincial  sub-committee  at  its  next  meeting;  meanwhile  the 
same  conference  has  chosen  an  advisory  representative  to  assist 
this  sub-committee.  It  is  his  business,  from  which  he  should  allow 
nothing  to  turn  him  aside,  to  see  that  the  resolution  of  his  con- 
ference receives  thorough  attention  from  the  sub-committee.  If 
it  is  of  local  importance,  it  should  be  put  into  operation  at  once. 
If  it  affects  the  whole  country  it  is  the  business  and  duty  of  the 
sub-committee  to  see  that  it  is  brought  before  the  central  com- 
mittee at  its  next  meeting;  members  of  the  sub-committee  should 
be  there  and  should  behave  towards  the  resolution  as  if  it  was 
a  Bill  they  were  introducing  into  Parliament.  The  committee 
must  consider  it,  and  if  it  is  approved  it  becomes  the  business  of 
the  executive  to  act  upon  it.  Then  when  the  general  meeting  comes 
along,  if  nothing  has  been  done,  we  may  confidently  expect  that 
our  advisory  representative  will  have  something  to  say.  ..." 

The  constitution  as  outlined  is  apparently  a  model  attempt  to 
solve  the  problem  of  providing  democratic  and  decentralized 
government  without  abolishing  co-ordination  and  central  control. 
Its  working  in  practice  must  depend  upon  the  ability,  goodwill 
and  enthusiasm  with  which  the  local  bodies  take  it  up,  and  as  to 
this  it  is  at  present  too  early  to  pass  judgment. 

In  addition  to  the  I.A.O.S.  and  to  the  trading  bodies  of  the 
movement,  three  further  agencies  of  rural  reconstruction  in  Ire- 
land call  for  notice,  all  of  them  being,  as  it  were,  offshoots  from 
the  parent  stock.  We  may  mention  first  the  Irish  Homestead,  the 
agricultural  and  co-operative  paper  which  was  founded  in  1895 
as  the  organ  of  the  new  movement,  and  has  appeared  weekly 


go         RURAL  RECONSTRUCTION  IN  IRELAND 

ever  since  at  the  modest  price  of  a  penny.  It  has  had  many  vicis- 
situdes, alike  in  its  editorship,  ownership  and  finances,  but  finally 
settled  down  in  1905  as  an  independent  co-operatively  owned 
paper  with  Mr.  George  Russell  (A.  E.)*  as  editor.  This  versatile 
man  has  had  experience  as  bank  organizer,  assistant  secretary  of 
the  I.A.O.S.,  and  many  other  things,  and  has  earned  fame  as 
painter,  poet  and  mystical  writer  in  addition  to  his  reputation 
as  a  brilliant  yet  practical  journalist.  As  a  result  of  his  work  in 
its  columns  the  Homestead  has  become  known  and  widely  quoted 
in  many  countries,  and  is  acknowledged  by  all  who  study  the 
subject  to  be  one  of  the  most  inspiring  papers  of  its  kind  in  the 
world.  Unfortunately  the  state  of  co-operative  education  is  not 
yet  sufficiently  advanced  to  ensure  a  large  paid  circulation  among 
Irish  farmers,  and  with  the  natural  difficulty  in  getting  advertise- 
ments experienced  by  every  propagandist  paper,  the  Irish  Home- 
stead has  never  been  in  a  particularly  prosperous  condition  from 
the  financial  point  of  view.  As  an  educational  and  propagandist 
medium  it  has,  however,  rendered  incalculable  service.  The  rela- 
tions between  the  I.A.O.S.  and  the  Irish  Homestead  have  been 
various  and  complicated,  but  since  Mr.  Russell  became  the  editor, 
the  I.A.O.S.  has  exercised  no  control  and  has  taken  no  respon- 
sibility for  its  views,  nor  has  it  given  the  paper  any  subsidy.  The 
Homestead  has  thus  been  able,  while  continuing  to  act  as  the 
organ  of  the  movement  and  to  work  in  close  harmony  with  the 
I.A.O.S.,  to  speak  as  an  independent  observer.  To  this  fact  the 
movement  has  been  indebted  for  some  candid  and  useful  criti- 
cism of  its  own  work,  and  also  for  some  outspoken  comments  on 
other  matters  which  could  not  have  been  uttered  by  officials  or 
by  the  I.A.O.S.  as  a  whole.  The  editorial  office  is  found  in  the 
Plunkett  House,  and  is  made  the  goal  of  frequent  pilgrimage 
by  inquirers  from  far  and  near  who  have  heard  of  Mr.  Russell's 

*  We  beg  the  reader  to  avoid  confusing  the  identities  of  Mr.  George  Russell  and 
Sir  Thomas  Russell,  Vice-President  of  the  Department  of  Agriculture,  who,  as  will 
appear  in  later  chapters,  are  in  all  but  name  as  widely  sundered  as  the  poles. 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        91 

fame,  or  know  by  personal  experience  the  inspiration  which  he 
can  impart.  The  walls  with  their  hand-painted  mysteries  are  an 
added  attraction,  and  the  range  of  subjects  discussed  in  this 
room  is  no  narrow  one. 

Mr.  Russell's  influence  was  largely  effective  in  the  founding 
of  the  society  known  as  the  United  Irishwomen,  which  first  began 
work  in  the  Plunkett  House  in  November,  1911.  This  society,  as 
its  name  indicates,  constitutes  the  women's  branch  of  the  co- 
operative movement,  and  its  object  is  to  complete  Sir  Horace 
Plunkett's  formula  by  the  achievement  of  "better  living."  In 
pursuit  of  this  object,  the  United  Irishwomen  have  organized 
between  forty  and  fifty  local  societies  or  branches  throughout 
Ireland.  The  branches  are  composed  of  farmers'  wives  and 
daughters  and  the  women  of  the  smaller  country  towns,  who 
receive  lectures  and  instruction  from  organizers  of  the  central 
body  in  such  useful  subjects  as  home-brightening,  poultry- 
keeping  and  egg-production,  gardening,  village  industries,  and 
so  forth.  Important  work  has  also  been  done  in  the  organization 
of  milk  depots  where  fresh  milk  can  be  obtained  for  poor  children 
who  have  hitherto  lacked  it  owing  to  scarcity  or  ignorance.  Cocoa 
is  also  supplied  to  school  children,  and  village  nurses  have  been 
installed  in  co-operation  with  existing  agencies.  In  one  or  two 
places,  co-operative  egg  societies  have  been  started,  and  there  is 
one  successful  store  which  owes  its  origin  to  the  United  Irish- 
women. The  I.A.O.S.  has  also  recently  handed  over  its  home 
industries  societies  to  the  care  of  this  body. 

The  work  has  been  of  an  uphill  nature  owing  to  the  apathy  of 
the  country  women,  whose  position  in  Ireland  is  a  very  hopeless 
one,  to  the  difficulty  of  obtaining  suitable  workers,  and,  above 
all,  to  the  lack  of  funds.  The  greatest  success  has  been  attained 
in  those  places  where  it  has  been  possible  to  have  an  organizer 
living  for  some  time  among  the  people  in  a  small  cottage  and 
showing  them  how  to  make  the  most  of  their  circumstances.  A 
notable  example  of  this  was  seen  in  the  home-brightening  experi- 


92          RURAL  RECONSTRUCTION  IN  IRELAND 

ment  carried  on  at  Dromore  in  Ulster.  This  work  was  done  under 
a  special  fund  before  the  formation  of  the  United  Irishwomen, 
and  the  latter  body  having  to  cover  the  whole  of  Ireland  has  had 
a  greater  problem  to  face.  The  response  to  appeals  for  subscrip- 
tions (the  only  method  of  supporting  such  work)  has  not  been 
very  great,  and  the  work  has  been  kept  going  mainly  by  the 
Pembroke  Charities  Fund  and  other  special  grants.  In  1915, 
however,  a  grant  was  received  from  the  Carnegie  United  Kingdom 
Trustees,  which  it  is  hoped  will  give  the  society  new  life  and 
enable  it  to  realize  its  admirable  ideals.  The  United  Irishwomen 
moved  into  new  quarters  in  1914  to  allow  more  room  for  expan- 
sion, and  their  place  in  the  Plunkett  House  was  taken  by  the 
Co-operative  Reference  Library. 

This  newest  foundation  of  the  Irish  co-operative  movement 
suffers  to  some  extent  from  a  misleading  name.  It  is,  in  fact, 
rather  an  economic  institute  than  a  mere  library,  its  object  being 
to  collect  information  from  all  countries  as  to  the  progress  and 
development  of  co-operation.  The  material  is  then  treated  in  such 
a  way  as  to  make  it  serviceable  to  practical  workers  in  the  British 
Isles  and  to  inquirers  and  students  of  the  subject  coming  from 
other  countries.  The  library  has  had  to  fight  against  adverse 
conditions  since  its  foundation,  owing  to  the  outbreak  of  the 
European  War,  which  has  rendered  correspondence  and  exchange 
of  information  exceedingly  difficult.  Nevertheless  it  has  had  a 
rapid  development  and  is  beginning  to  be  well  known  outside  the 
boundaries  of  the  Irish  movement.  Some  thousands  of  books  and 
pamphlets  have  been  collected  and  scientifically  classified  so  as 
to  be  available  for  ready  reference,  and  the  staff  has  done  a  con- 
siderable amount  of  research  work  in  response  to  inquiries  of  the 
co-operative  societies,  individual  members,  and  even  Government 
Departments  and  Commissions.  Thus  a  report  was  made  at  the 
request  of  the  I.A.O.S.  and  the  I.A.W.S.  and  the  Irish  Co- 
operative Conference  Association  on  the  capitalization  of  trade 
federations,  and  a  Commission  appointed  by  the  Government  of 


THE  I.A.O.S.:  ITS  FORM  AND  FUNCTIONS        93 

Canada  has  employed  the  services  of  the  librarian  to  report  upon 
agricultural  co-operation  in  Europe  and  its  possibilities  in  Canada. 
During  the  first  year  a  monthly  bulletin  was  published  dealing 
with  special  subjects  of  interest  to  co-operators,  and  in  1915  this 
was  replaced  by  a  quarterly  magazine  called  Better  Business, 
which,  though  it  has  not  yet  had  time  to  build  up  a  large  circu- 
lation, has  been  very  well  received  by  students,  and  has  contained 
articles  covering  a  wide  range  of  economic  subjects  allied  to 
co-operation. 

The  library  does  not  confine  itself  to  the  agricultural  side  of 
the  movement,  but  is  also  closely  in  touch  with  the  industrial  co- 
operators,  and  endeavors  to  act  as  a  connecting  link  between  the 
two.  It  deals  in  addition  with  various  technical  questions  which 
are  vital  to  co-operators.  Thus  the  dairying  experts  of  the  I.A.O.S. 
are  supplied  with  technical  information  from  other  countries,  and 
the  questions  of  production,  distribution  and  trade  which  have 
arisen  during  the  war  have  received  considerable  attention. 
Inquirers  from  abroad — notably  America  and  India — have  visited 
the  library  in  considerable  numbers,  and  several  students  have 
spent  periods  varying  from  a  few  days  to  six  months  or  more  in 
research  work  with  this  as  their  headquarters.  Being  situated 
in  the  Plunkett  House,  in  close  touch  with  the  practical  work  of 
the  I.A.O.S.,  the  library  is  able  to  offer  exceptional  opportunities 
to  those  who  wish  for  a  general  co-operative  training,  and  it  is 
interesting  to  note  that  the  newly  formed  National  Agricultural 
Organization  Society  of  America  availed  itself  of  these  oppor- 
tunities by  sending  over  two  men  to  be  instructed  in  European 
methods  before  taking  up  work  as  organizers  in  the  United  States. 

The  financial  resources  of  this  institution  have  been  almost 
wholly  derived  up  to  the  present  from  the  Carnegie  United  King- 
dom Trustees,  who  have  seen  its  potentialities  for  economic 
education.  The  number  of  subscribing  members  is  necessarily 
small,  but  it  is  increasing  and  may  be  expected  to  reach  a  respect- 
able total  in  times  of  peace.  It  is  unfortunate  that  at  present  the 


94 


RURAL  RECONSTRUCTION  IN  IRELAND 


central  co-operative  bodies  of  the  United  Kingdom  have  not  been 
able  to  render  it  independent  of  outside  aid,  but  this  will  no  doubt 
follow  on  an  improvement  of  their  own  financial  position,  and  a 
fuller  realization  of  the  usefulness  of  an  institution  which  is  still 
in  its  infancy. 


CHAPTER  VI 
THE  I.A.O.S.:  ITS  FINANCES 

REFERENCE  has  been  made  in  the  previous  chapter  to  the  diffi- 
culty experienced  by  the  I  A.O.S.  in  making  itself  financially  self- 
supporting.  Those  who  have  had  experience  of  the  same  problem 
in  other  countries  will  realize  the  necessity  of  the  detailed  analysis 
which  we  shall  now  attempt  and  will  not  condemn  the  Irish  move- 
ment because  it  is  here  revealed  in  its  least  successful  aspect. 

In  the  first  year  after  the  foundation  of  the  I. A.O.S.  the  avail- 
able income  was  only  £1427,  which  represented  a  fifth  part  of 
the  paid-up  subscriptions.  The  next  year's  income  was  anticipated 
slightly,  and  £1579  was  spent.  The  same  thing  took  place  to  a 
greater  extent  the  year  following,  and  an  appeal  was  made  for 
voluntary  organizers.  At  the  same  time  the  leaders  of  the  move- 
ment insisted  that  societies  must  affiliate  if  they  were  to  receive 
benefits.  Payment  of  a  fee  of  £3  admitted  a  society  to  member- 
ship in  the  LA.O.S.,  and  an  annual  conference  of  co-operative 
societies  was  held  to  which  each  affiliated  society  was  entitled  to 
send  one  delegate  for  every  hundred  members. 

In  1897  the  number  of  affiliated  societies  was  sixty-one,  the 
expenses  were  about  £5500,  and  the  central  body  was  only  saved 
from  bankruptcy  by  the  timely  generosity  of  Sir  Henry  Cochrane, 
a  Dublin  manufacturer,  who  made  a  special  donation  of  £5000. 
But  by  the  time  of  the  annual  general  meeting  of  the  next  year 
the  funds  were  again  practically  exhausted.  Yet  all  the  leaders 
of  the  movement  were  determined  that  the  work  must  go  on,  and 
there  was  an  ever-increasing  demand  for  organization  coming 
from  the  country  districts.  It  was  decided  to  issue  a  further 
appeal  for  subscriptions  for  another  period  of  five  years,  begin- 

95 


96         RURAL  RECONSTRUCTION  IN  IRELAND 

ning  on  January  i,  1899.  I*1  moving  the  report,  Sir  Horace  said 
he  did  so  under  peculiar  circumstances: 

"On  the  one  hand  I  shall  be  able  to  show  you  that  our  Society 
has,  so  far,  fulfilled  its  purpose  with  astonishing  success,  and  that 
its  power  for  good  in  the  future  is  apparently  unbounded.  On 
the  other  hand,  the  main  question  which  will  be  before  us  to-day 
is  whether  the  existence  of  the  Society  can  be  continued.  For, 
long  before  another  annual  meeting  can  be  held,  the  last  of  the 
guaranteed  subscriptions  will  have  been  paid,  and  our  movement 
will  be  arrested  for  having  no  visible  means  of  support." 

In  the  end,  Sir  Horace  himself  guaranteed  f  1000,  an  anony- 
mous donor  promised  an  equal  amount,  and  with  aid  from  other 
persons  who  responded  to  the  appeal  the  crisis  was  overcome. 
One  cannot  help  being  struck  by  the  fact  that  the  turnover  of  the 
societies  which  owed  everything  to  the  I.A.O.S.  was  at  this  time 
£400,000,  and  a  contribution  of  i  per  cent.,  or  about  2^d.  in  the 
pound,  would  have  made  the  central  body  almost  self-supporting. 
No  such  suggestion,  however,  was  made  during  the  discussion, 
and  we  find  in  the  next  year  that  £500  was  considered  a  most 
encouraging  total  for  the  affiliation  fees.  As  a  natural  conse- 
quence, the  original  scheme  for  converting  the  I.A.O.S.  into  a 
body  controlled  by  the  local  societies  was  postponed  for  a  further 
five  years. 

In  1899  the  whole  question  of  finance  was  discussed.  It  was 
decided  that  no  help  whatever  should  be  given  to  unaffiliated 
societies,  and  a  definite  rate  of  affiliation  fees  was  fixed.  Cream- 
eries and  agricultural  societies  were  assessed  los.  per  £1000 
turnover,  with  a  minimum  of  £3  and  £i  respectively,  while  credit 
societies  paid  a  minimum  of  55.,  increasing  by  25.  6d.  to  £i.  It  is 
noticeable  that  even  this  moderate  proposal  brought  out  a  number 
of  societies  which  absolutely  refused  to  affiliate. 

With  the  inauguration  of  the  Department  of  Agriculture  in 
1900,  and  the  appointment  of  Sir  Horace  Plunkett  as  its  Vice- 


THE  I.A.O.S.:  ITS  FINANCES  97 

President,  the  position  of  the  I.A.O.S.  underwent  a  material 
change.  Up  to  this  period  the  Society  had  taken  upon  itself  a 
large  share  of  the  burden  of  technical  education  in  agriculture, 
in  addition  to  the  work  of  organizing  co-operative  societies,  and 
a  great  deal  of  its  energies  had  been  devoted  to  this  tremendous 
and  expensive  task.  It  was  apparent  that  the  work  should  prop- 
erly be  undertaken  by  the  State  Department,  and,  in  fact,  this 
was  one  of  the  fundamentals  of  the  programme  laid  down  for  it. 
But  it  was  also  apparent  that  in  the  period  of  organization  it 
would  not  be  possible  for  the  new  body  to  assume  all  these  func- 
tions, and  accordingly  a  grant  was  made  to  the  I.A.O.S.  to  pay 
for  the  cost  of  this  work  until  such  time  as  it  could  be  handed 
over.  At  the  same  time  an  anonymous  gift  of  £1350  a  year  was 
made,  and  it  is  now  an  open  secret  that  this  represented  Sir 
Horace's  official  salary  as  well  as  his  ordinary  subscription.  With 
a  further  gift  of  £1000  from  Lord  Dunsany,  and  Mr.  Carnegie's 
£500,  the  finances  of  the  I.A.O.S.  were  vastly  improved. 

In  1901  some  slight  alterations  in  the  scale  of  affiliation  fees 
were  made,  and  the  principle  of  non-assistance  to  unaffiliated 
societies  reaffirmed,  but  in  the  next  year  the  income  from  this 
source  was  only  £623,  although  the  turnover  of  the  societies  had 
reached  nearly  a  million  and  a  quarter.  In  this  year  (1902)  the 
Society  was  again  faced  with  increasing  expenditure,  and  the 
grants  from  Lord  Dunsany  and  Mr.  Carnegie  were  to  cease.  A 
special  circular  was  sent  out  to  about  25,000  people,  offering  them 
membership  in  the  I.A.O.S.  and  free  copies  of  its  publications 
(including  the  Irish  Homestead)  for  £i  a  year.  The  experiment 
cost  £463,  and  the  return  was  only  £336,  but  some  of  the  sub- 
scriptions continued  in  after  years.  A  more  profitable  appeal  was 
made  by  a  deputation  which  collected  £1500  from  America. 

The  long-promised  reorganization  of  the  I.A.O.S.  was  carried 
out  in  the  beginning  of  the  year  1904,  when  the  election  of  the 
committee  was  practically  handed  over  to  the  affiliated  societies. 
The  discussion  which  took  place  at  the  annual  general  meeting 


98         RURAL  RECONSTRUCTION  IN  IRELAND 

revealed  the  fact  that  some  of  the  larger  and  more  flourishing 
societies  were  dissatisfied  and  unwilling  to  pay  affiliation  fees 
even  on  the  modest  scale  in  force  at  the  time,  claiming  apparently 
that  they  did  not  need  assistance  and  that  the  I.A.O.S.  was  not 
sufficiently  representative.  An  attempt  was  made  to  limit  the 
affiliation  fee  payable  by  any  one  society  to  a  maximum  of  £5. 
This  was  defeated,  but  it  was  apparent  that  the  committee  was 
unwilling  to  put  any  further  pressure  on  societies  to  support  the 
movement.  A  significant  feature  was  the  reading  of  two  papers 
advocating  on  slightly  different  lines  the  extension  of  the  co- 
operative credit  societies  in  such  a  way  that  they  might  provide 
capital  for  the  movement  and  work  in  closer  connection  with  the 
trade  federations.  This  idea,  which  has  proved  most  successful 
in  Germany,  was  not,  however,  followed  up.  During  the  next  two 
years  the  I.A.O.S.  was  in  better  circumstances,  owing  partly  to 
the  formulation  of  a  definite  scheme  by  which  the  Department 
provided  funds  for  organizing  co-operative  credit  and  home  in- 
dustry societies,  and  more  to  the  efforts  of  a  special  committee 
under  Mr.  W.  E.  Holmes,  who  collected  donations  to  the  amount 
of  £7750  in  one  year.  At  the  same  time  it  began  to  be  realized 
that  the  I.A.O.S.  must  soon  expect  to  stand  independently  of 
State  aid,  and  efforts  were  made  to  increase  the  affiliation  fees 
and  to  supplement  them  by  special  subscriptions  to  be  collected 
from  individual  members  of  societies  in  proportion  to  their  turn- 
over. The  break  with  the  Department,  which  took  place  on  Sir 
Horace's  retirement,  and  which  is  discussed  elsewhere,  brought 
this  matter  to  a  head.  By  1908  this  break  was  complete  and  the 
I.A.O.S.,  which  had  been  in  receipt  of  about  £3700  a  year  or 
£18,000  in  all,  from  this  source,  was  left  to  stand  alone.  At  the 
same  time  it  was  able  to  discard  most  of  the  work  of  technical 
instruction,  and  the  arousing  of  a  new  spirit  of  independence 
among  farmers  who  had  been  inclined  to  rely  upon  Government 
aid  was  a  valuable  asset.  Considerable  progress  was  made  on  a 
smaller  income,  and  the  scheme  of  special  subscriptions  took 


THE  I.A.O.S.:  ITS  FINANCES  99 

practical  shape.  However,  by  1909  we  find  things  again  growing 
desperate,  and  the  Society  was  only  saved  by  the  interposition 
of  the  Pembroke  Charities  Trust  with  a  grant  of  £2000.  Further 
help  was  given  by  Mr.  Samuel  Figgis,  a  London  merchant,  and 
by  a  voluntary  committee  in  Ulster. 

Meanwhile  the  British  Government  had  set  up  a  body  known 
as  the  Developing  Commissioners,  which  was  empowered  to  spend 
a  certain  sum  of  money  each  year  for  the  purpose  of  aiding  and 
developing  agriculture  in  the  United  Kingdom.  One  of  the 
methods  expressly  suggested  was  that  of  the  "organization  of 
co-operation,"  and  it  was  felt  that  this  could  best  be  accomplished 
by  making  grants  in  aid  of  the  bodies  which  were  already  under- 
taking that  work.  Accordingly  in  1910,  the  committee  of  the 
I.A.O.S.  submitted  a  case  for  such  a  grant  to  the  Develop- 
ment Commissioners.  The  report  announces  this  decision  in  the 
following  words: 

"Affiliation  fees  and  special  subscriptions  from  societies,  while 
showing  a  satisfactory  increase  over  the  previous  year,  still  fall 
short  of  the  figure  which  should  represent  the  contribution  of  the 
beneficiaries  of  the  movement.  [They  were,  as  a  matter  of  fact, 
£1200  on  a  turnover  of  £2,395,000.]  It  is  scarcely  to  be  expected 
that  existing  societies  should  find  all  the  funds  required  to  extend 
co-operative  organization  to  new  districts,  but  it  is  disappointing 
to  find  that  the  funds  contributed  from  this  source  still  fall  short 
of  what  is  needed  to  provide  efficient  and  regular  supervision  over 
the  existing  societies,  or  even  to  furnish  such  advice  and  help  as 
the  affiliated  societies  demand.  The  situation  calls  for  a  better 
system  of  levying  contributions  from  societies.  Some — and  those 
by  no  means  the  most  prosperous — contribute  liberally  and  un- 
grudgingly, while  others  either  give  nothing  at  all  or  at  most 
pay  affiliation  fees  on  the  scale  laid  down  without  making  any 
attempt  to  levy  subscriptions  from  their  members.  The  move- 
ment does  not  yet  realize  that,  if  it  is  to  be  held  together,  to  say 


ioo        RURAL  RECONSTRUCTION  IN  IRELAND 

nothing  of  giving  expression  to  its  views  and  making  its  wants 
known,  it  is  necessary  to  maintain  in  a  state  of  active  efficiency 
a  central  body,  through  which  it  can  speak  and  act,  which  will 
safeguard  its  interests  and  perform  all  the  functions  of  a  farmers7 
trade  union.  .  .  ." 

The  application  for  £6612  went  forward  to  the  Treasury  in 
January,  1911,  was  referred  to  the  Department  of  Agriculture 
for  Ireland,  and  was  promptly  held  up.  The  kindred  societies  in 
England  and  Scotland  received  grants  immediately;  the  I.A.O.S. 
waited  some  two  years  while  Mr.  T.  W.  Russell  (now  Sir 
Thomas),  the  new  Vice-President,  exploited  every  means  which 
the  trading  interests  who  dictated  his  policy  were  able  to  devise 
to  block  the  whole  grant.  His  efforts  included  the  putting  forward 
of  a  scheme  of  "non-controversial  co-operation"  which  was  of  so 
ridiculous  a  nature  that  it  received  consideration  from  no  one, 
least  of  all  the  Development  Commissioners.  The  application  was 
passed,  with  certain  conditions,  by  this  body  in  1912,  and  the 
Treasury  then  instituted  a  further  period  of  delay.  Fortunately 
the  American  Commission  appointed  to  investigate  agricultural 
co-operation  in  Europe  visited  Ireland  in  June,  1913,  and  when 
the  authorities  realized  that  the  programme  would  include  a 
public  discussion  of  the  relations  between  governmental  and 
voluntary  agencies  in  promoting  co-operation,  they  decided  to 
adopt  a  safer  policy. 

The  first  instalment  of  the  grant  reached  Ireland  in  the  same 
week  as  the  Commission  of  Inquiry.  The  history  of  the  two  years 
of  delay  was  one  of  constant  begging  from  philanthropic  sup- 
porters, payment  of  debts  by  Sir  Horace  Plunkett,  perpetual 
excess  of  expenditure  over  income,  and  appeals  to  the  societies 
to  increase  their  contributions.  The  whole  movement  suffered 
considerably  as  a  result  of  this  period  of  suspense  and  tension. 

The  first  grant  made  was  for  £2000  arrears  in  respect  of  the 
period  ending  July  i,  1912,  and  £1500  for  the  nine  months  ending 


THE  I.A.O.S.:  ITS  FINANCES  101 

March  31,  1913.  A  further  grant  not  exceeding  £4000  was  sanc- 
tioned for  the  year  1913-1914  on  the  basis  of  £i  for  every  £i 
received  in  affiliation  fees,  subscriptions  and  donations.  The 
amount  actually  earned  was  £3822;  the  Development  Commis- 
sioners approved  of  the  expenditure,  and  the  grant  was  renewed 
for  the  years  1915  and  1916.  The  original  terms  were  found  to 
be  unsatisfactory  in  two  respects:  in  the  first  place,  it  was  felt 
that  the  amount  of  the  grant  should  be  made  to  depend  on  the 
contributions  of  the  societies  themselves  rather  than  on  those 
of  philanthropists;  and,  in  the  second  place,  it  was  discovered 
that  there  was  no  provision  made  for  the  paying  off  of  any 
arrears,  as  the  Treasury  would  only  allow  for  the  actual  excess 
of  expenditure  over  income  within  the  financial  year,  so  that 
the  Society  was  constantly  liable  to  increase,  and  could  never 
diminish,  its  accumulated  debt.  These  difficulties  have  now  been 
got  over  by  modifications  in  the  terms  of  the  grant. 

The  conditions  attached  to  this  grant  were  more  strict  than 
those  imposed  in  the  case  of  either  the  English  or  the  Scottish 
societies.  The  I.A.O.S.  was  called  upon  "to  eschew  party  politics 
and  to  restrict  its  operations  to  purely  agricultural  business," 
but  a  demand  that  it  should  expel  societies  which  without  its 
"suggestion,  advice  or  assistance"  embarked  upon  other  kinds 
of  co-operation  was  withdrawn.  It  was  prohibited  from  giving 
any  assistance  whatever  to  affiliated  societies,  and  new  societies 
must  embody  in  their  rules  an  undertaking  to  affiliate.  The 
Development  Commissioners  are  entitled  to  a  representation  on 
the  I.A.O.S.  committee  of  not  more  than  eleven  nominees,  and 
are  empowered  "by  audit  and  inspection  (to)  satisfy  all  who 
may  have  any  doubt  upon  the  matter  that  the  work  of  the  office 
and  organizing  staff  is  strictly  limited  to  aiding  and  developing 
agriculture." 

In  two  respects  these  conditions  hamper  the  work  of  the 
I.A.O.S.  First,  they  render  it  unable  to  meet  the  great  demand 
for  general  co-operative  stores  which  undoubtedly  exists  in  the 


102        RURAL  RECONSTRUCTION  IN  IRELAND 

country.  Secondly,  the  presence  of  nominees  on  the  committee 
obviously  implies  a  danger  to  free  development.  These  consid- 
erations, taken  together  with  the  natural  feeling  that  the  I.A.O.S. 
should  now  be  independent  of  any  outside  help,  have  caused 
the  leaders  to  persevere  in  the  attempt  to  make  the  farmers 
support  their  own  movement.  Furthermore,  the  past  debts  of 
the  Society  remain  to  be  paid  off  (notably  large  obligations  to 
the  President)  while  the  expenditure  continues  to  increase  and 
the  contributions  from  individuals  have  naturally  fallen  off  under 
the  pressure  of  war  conditions.  In  any  case,  it  is  doubtful 
whether  the  Treasury,  although  somewhat  reluctantly  consenting 
to  an  emergency  grant  to  meet  the  effects  of  the  war,  will  con- 
tinue to  subsidize  the  I.A.O.S.  on  the  present  scale  in  face  of 
the  growing  demand  for  economy  of  public  moneys. 

The  task  of  arousing  societies  to  a  realization  of  these  facts 
has  fallen  largely  upon  the  secretary  of  the  I.A.O.S.  Mr.  Anderson 
has  used  both  the  report  and  the  annual  meeting,  as  well  as 
many  committee  meetings,  as  media  for  an  attempt  to  stir  up 
an  enthusiasm  on  the  point.  The  result  is  not  altogether  satis- 
factory. A  full  analysis  is  given  in  the  report  for  the  year  ending 
June  30,  1914,  from  which  the  following  table  is  taken: 


Average 


Classification 

Creameries 

Agricultural 

Credit 

Poultry 

Industries 

Pig  and  cattle 

Flax 

Federations 

Miscellaneous 


No. 


Members 


430 

46,106 

193 

19,970 

235 

2O,2  1  1 

18 

5,294 

18 

1,212 

52 

1,730 

10 

470 

2 

28l 

27 

9,492 

Contri- 

per                    F 

bution 

Society           Men 

£ 

£     s.    d.              < 

1425 

363        7} 

184 

O    19    O            2* 

85 

072             I 

f! 

i  14  5        i/ 

2 

009       3 

6 

ffi 

O    12    O           3j 

d. 


985       104,766       £1791 


THE  I.A.O.S.:  ITS  FINANCES  103 

The  following  comment  is  made: 

"Had  all  the  societies  making  returns  (exclusive  of  the  federa- 
tions) paid  their  proper  quota  in  affiliation  fees,  the  income  from 
this  source  alone  would  have  amounted  to  £1475,  whereas  the 
total  sum  received  under  this  head  was  but  £918.  .  .  .  A  sub- 
scription of  even  is.  per  head  from  the  46,106  members  of  the 
dairy  societies  would  have  produced  £2305,  while  6d.  per  head 
from  the  members  of  all  the  other  societies  would  have  repre- 
sented no  less  than  £1457,  or  a  total  individual  subscription  from 
the  movement  of  £3762,  whereas  the  total  special  subscription 
from  societies'  members  amounted  to  £873." 

The  suggestion  to  levy  a  shilling  from  individuals,  and  a 
further  attempt  by  means  of  a  special  "debt  of  honor  fund"  to 
collect  sufficient  from  the  societies  to  pay  off  the  obligations  to 
the  President  were  unsuccessful,  and  a  new  scheme  is  now  in 
operation  by  which  societies  are  urged  to  collect  one  halfpenny 
in  the  pound  from  each  individual  on  his  transactions.  That  the 
affiliation  fees  and  subscriptions  are  gradually  increasing  is  shown 
by  the  following  statement: 

Average 

Contri-  per  per 

Year  Societies  butions  Society  Member 

£  £    s.       d.  d. 

1912  947  1587  i  13     6  3.74 

1913  985  1791  i  16     3  4.10 

1914  .          .       1023  1970  i   18     6  4.45 

1915  .         .         991  2595  2  12     4  6.07 

But  this  increased  support  has  coincided  with  a  greater  in- 
crease in  expenditure,  which  was  £6000  in  1912,  £8500  in  1913, 
£10,000  in  1914,  and  £11,000  in  1915.  The  turnover  in  1915, 
exclusive  of  the  federations,  was  £4,100,000. 

Naturally  the  facts  which  we  have  set  down  have  given  an 
opportunity  to  enemies  as  well  as  to  friendly  critics  to  point  out 
that  the  "self-help"  feature  is  not  prominent  in  the  finances  of 


104        RURAL  RECONSTRUCTION  IN  IRELAND 

the  movement.  The  question  may  always  be  asked:  If  this  move- 
ment has  done  so  much  for  the  farmers,  why  do  they  not  support 
it  themselves?  Several  answers  may  be  suggested.  In  the  first 
place,  there  has  evidently  been  a  certain  lack  of  discipline  in  the 
Irish  co-operative  movement,  as  compared  with  that  of  other 
countries.  Farmers  have  been  allowed  to  enjoy  the  privileges  of 
membership  without  being  brought  to  recognize  their  source  and 
without  sufficient  insistence  upon  the  attendant  responsibilities, 
and  like  all  people  who  have  had  the  opportunity  of  getting  some- 
thing for  nothing  they  are  now  unwilling  to  pay  full  value.  This 
state  of  things  arose  out  of  the  enthusiasm  of  the  earlier  workers, 
who  were  determined  that  the  movement  should  go  ahead,  and 
found  it  impossible  to  move  the  farmers  by  any  except  the  most 
gentle  and  persuasive  methods.  In  other  countries,  where  the  idea 
of  discipline  was  far  more  acceptable,  the  process  has  been  easier. 

Secondly,  the  State  has  done  infinite  harm  by  its  rapid  alter- 
nations between  subsidizing  and  violent  opposition.  The  former 
attitude,  which  is  only  too  readily  accepted  in  Ireland,  tended  to 
weaken  the  spirit  of  self-reliance  and  hamper  the  free  develop- 
ment of  policy.  The  latter  has  prevented  the  movement  from 
attaining  its  full  usefulness  and  has  confused  the  minds  of  the 
farmers  and  the  people  generally. 

In  the  third  place,  the  failure  of  the  credit  societies  to  expand 
and  to  become  the  centres  of  deposit  for  the  people's  savings  has 
prevented  the  establishment  of  a  strong  central  credit  society. 
At  the  same  time,  the  creameries  have  never  achieved  a  real 
marketing  agency,  so  that  it  may  be  said  that  federation  is  weak 
in  the  movement.  In  most  countries  the  central  credit  societies 
are  able  to  provide  capital  for  trading  federations,  and  these  in 
their  turn  can  support  the  propagandist  work.  The  complete 
separation  of  function  and  finances  of  the  I.A.O.S.  and  the 
I.A.W.S.  is  another  cause  of  weakness.  These  questions  will  be 
further  discussed  in  subsequent  chapters. 

Finally,  it  should  be  noted  that  there  exists  a  very  clear  dis- 


THE  I.A.O.S.:  ITS  FINANCES  105 

tinction,  which  has  frequently  been  alluded  to  in  the  reports  of 
recent  years,  between  the  two  functions  of  the  I.A.O.S.,  that  of 
supporting  and  advising  existing  societies  and  that  of  organizing 
new  ones.  It  is  probable  that  if  a  clear  division  could  be  made 
between  the  moneys  appropriated  to  these  two  functions  the 
existing  societies  could  be  persuaded  to  contribute  sufficient  to 
pay  for  the  services  rendered  to  them  (as,  for  instance,  they  now 
make  the  Auditing  Department  of  the  I.A.O.S.  practically 
self-supporting),  and  the  work  of  breaking  new  ground  would 
then  become  a  proper  object  for  State  aid  and  philanthropic 
contribution. 


CHAPTER  VII 
THE  CREAMERIES 

No  greater  silent  revolution  has  been  effected  in  Ireland  than 
that  which  has  transformed  the  butter-making  industry  during 
the  last  twenty-five  years  from  an  unorganized,  slovenly  and 
unprofitable  process,  which  went  far  to  strengthen  the  English 
suspicion  of  the  "dirtiness"  of  all  that  came  out  of  Ireland,  into 
a  thoroughly  organized  and  profitable  one,  which  bids  fair  to 
give  Irish  butter  a  leading  position  on  the  British  market.  The 
chief  credit  for  this  revolution  must  undoubtedly  be  given  to  the 
co-operative  movement,  which  is  here  seen  in  its  most  successful 
aspect. 

In  the  early  part  of  the  nineteenth  century,  when  the  making 
of  butter  in  all  countries  was  carried  out  by  the  individual  farmer 
without  the  aid  of  machinery,  and  when  the  facilities  of  cold 
storage  and  quick  transport  were  undeveloped,  the  Irish  farmer 
enjoyed  an  enormous  advantage  by  reason  of  his  close  proximity 
to  the  great  markets  of  England  and  Scotland.  In  those  days 
successful  and  profitable  dairy  farming  could  be  carried  on  in 
the  rich  valleys  of  Tipperary  and  Limerick  without  the  necessity 
of  any  undue  exertion  or  the  application  of  modern  methods 
of  tillage  or  manufacture.  The  consumer  had  not  yet  come  to 
demand  uniformity  of  quality,  flavor  or  output,  and  consequently, 
if  the  farmer  was  able  to  make  a  large  amount  in  the  summer 
season,  he  could  afford  to  remain  idle  during  the  winter,  con- 
fident in  the  fact  that  he  would  be  equally  well  off  next  year,  as 
soon  as  the  milk  began  to  flow  again.  "Shop  butter"  was  con- 
demned by  all  discriminating  persons,  who  bought  direct  from 

106 


THE  CREAMERIES  107 

farmers  wherever  possible,  and  worried  very  little  about  occa- 
sional variations  in  flavor,  which  were  always  ascribed  to  inju- 
dicious experiments  in  pastures  new  on  the  part  of  the  cows. 

This  happy  state  of  things  began  to  be  rudely  disturbed  from 
about  1860  onwards.  The  war  between  Prussia  and  Denmark, 
coming  at  a  time  when  agriculture  was  already  beginning  to 
change  its  character  under  pressure  from  distant  countries,  was 
just  what  was  needed  to  show  the  businesslike  Dane  that  his 
methods  required  complete  overhauling.  Denmark,  once  a  coun- 
try of  extensive  cultivation  of  wheat  and  other  cereals,  began 
with  startling  rapidity  to  devote  her  attention  to  the  production 
of  breakfast-table  requirements,  and  was  soon  covered  with  a 
network  of  creameries  equipped  with  the  most  modern  and 
scientific  appliances. 

At  the  same  time  various  broad  changes  in  agricultural  methods 
began  to  take  place.  Improvements,  both  in  the  speed  of  trans- 
port and  in  the  facilities  for  cold  storage  during  long  voyages, 
brought  other  hemispheres  close  to  the  English  markets — the 
greatest  centre  of  consumption  in  the  world.  Thus,  on  the  one 
hand,  the  farmer  found  that  the  market  for  some  of  his  produce 
was  destroyed,  and  that  he  must  specialize  in  certain  things,  and, 
on  the  other  hand,  the  possibility  of  importing  food-stuffs  and 
artificial  fertilizers  (and,  later,  machinery)  at  reasonable  prices 
made  the  old  methods  of  farming  cumbrous  and  uneconomic. 
Most  European  nations  profited  very  quickly  by  these  lessons, 
but  the  majority  of  Irish  farmers,  who  had  no  one  to  instruct  or 
help  them,  and  comparatively  little  contact  with  the  outside 
world,  and  who  were  still  more  or  less  crushed  by  the  effects  of 
the  Great  Famine,  paid  little  or  no  heed  to  the  changes.  While 
the  Danes  and  the  French  learnt  to  feed  their  cows  on  imported 
food  and  on  crops  grown  on  their  tilled  and  fertilized  land,  and 
to  standardize  and  ensure  both  the  quality  and  quantity  of  their 
butter,  the  Irish  went  on  opening  and  shutting  gates,  trusting 
to  Providence  to  send  good  green  grass,  and  to  the  public  to  keep 


io8        RURAL  RECONSTRUCTION  IN  IRELAND 

on  buying  the  butter  they  had  been  accustomed  to  buy.  When 
they  found  that  the  public  would  not  pay  the  old  prices  for  this 
butter,  they  laid  the  blame  on  the  tariffs,  the  railway  companies, 
the  landlords — anything  but  their  own  methods.  And  the  Govern- 
ment, as  is  usual  with  a  British  Government  where  agriculture 
is  in  question,  did  nothing  to  enlighten  them. 

Meanwhile  the  butter  from  Denmark  and  France,  and  later, 
as  transport  facilities  improved,  that  from  Canada  and  New 
Zealand,  began  to  make  itself  favorably  known  on  the  English 
markets.  The  consumer  soon  got  a  new  idea  of  what  butter 
should  be,  and  began  to  demand  a  uniform  product  which  could 
always  be  bought  all  the  year  round,  and  would  always  taste  the 
same.  A  few  countrybred  people  remained,  and  still  remain,  con- 
stant to  the  idea  that  good  "farmer's"  or  "home-made"  butter 
was  the  only  kind  that  had  "a  real  taste  of  butter";  but  the  vast 
majority,  once  introduced  to  modern  creamery  butter,  refused 
to  tolerate  anything  else.  This  fact  was  soon  reflected  in  the  price, 
and  by  about  1885  Irish  butter  was  the  cheapest  on  the  market, 
and  universally  condemned — having  to  be  sold  surreptitiously 
under  some  other  name.  As  a  natural  consequence  the  making 
of  it — having  become  unprofitable  and,  therefore,  unpopular — was 
abandoned  by  the  better  farmers,  and  it  rapidly  deteriorated. 
So  it  is  that  in  the  eighties  we  find  a  Member  of  Parliament 
stating  that  Irish  butter  was  chiefly  used  for  the  adulteration  of 
oleomargarine;  and  this  remark,  which  was  quit§  seriously 
intended,  was  almost  literally  true. 

By  the  year  1889,  when  the  pioneers  of  the  co-operative  move- 
ment first  came  upon  the  scene,  the  Irish  dairying  industry  was 
threatened  with  ruin.  Sir  Horace  Plunkett  and  his  followers  were 
not  slow  to  realize  what  this  would  mean  to  Ireland;  they  saw 
that  it  could  only  be  averted  by  a  complete  change  in  two  direc- 
tions: first,  technique;  and,  secondly,  marketing.  The  co-opera- 
tive idea  was  already  in  their  minds,  but  only  as  associated  with 


THE  CREAMERIES  109 

distribution  after  the  English  model.*  They  saw,  however,  that 
the  same  principles  could  probably  be  applied  to  dairying,  and 
would  be  specially  effective  in  dealing  with  both  these  points; 
and  they  felt  that  if  this  were  so,  it  would  be  the  most  important 
use  to  which  co-operation  could  be  turned  in  Ireland.  An  investi- 
gation of  dairying  conditions  in  Scandinavia  carried  out  by  Mr. 
Anderson  thoroughly  confirmed  this  impression,  and  the  effort 
at  organization  was  immediately  begun. 

At  this  point  it  is  worth  while  to  make  a  brief  digression  to 
consider  exactly  what  Denmark  had  done  and  has  done  in  respect 
to  these  two  points  of  technique  and  marketing. 

Up  to  about  1850  Danish  butter,  whose  pungent  nature  earned 
it  the  title  of  "forty-rod  butter,"  was  so  bad  that  the  best  of  it 
was  sold  at  about  6d.  a  pound  to  German  merchants;  but  the 
practice  was  brought  to  an  end  by  the  war  of  1848.  Thereafter 
a  certain  amount  of  butter  from  large  estates  was  exported 
direct  to  England  in  sailing  ships,  but  the  average  farmer's 
product  remained  very  indifferent.  At  the  same  time  a  host  of 
middlemen  flourished  on  the  trade.  After  the  second  war  of  1865, 
however,  in  which  Schleswig-Holstein  was  lost  to  Denmark,  and 
the  German  market  practically  closed,  Danish  agriculture  rapidly 
changed  its  character,  and  the  production  of  butter  became  one 
of  the  most  important  sources  of  income. 

"Individual  Danish  wholesale  butter  merchants  specialized 
their  trade,  and  arranged  with  the  estate  dairies  for  the  weekly 
delivery  of  their  butter  production;  others  started  export  butter- 
packing  factories.  On  certain  days  the  farmers  delivered  their 
butter  to  these  factories,  where  it  was  sorted,  remade,  and  packed 
in  small  wooden  casks  for  immediate  shipment  to  England.  These 
wholesale  butter  exporters  quickly  realized  the  advantage  of 
selling  direct  to  the  English  wholesale  and  retail  butter  merchants, 
and  avoiding  the  expense  of  English  commission  agents.  They 

*  See  pages  53  ff . 


no       RURAL  RECONSTRUCTION  IN  IRELAND 

traveled  to  England,  interviewed  the  English  wholesale  and 
retail  butter  merchants,  and  henceforward  they  did  their  business 
direct,  at  first  with  the  English  wholesale  merchants,  later  with 
the  English  retail  merchants.  The  English  buyers  arranged  to 
wire  every  Wednesday  the  quantity  of  butter  that  should  be 
shipped  to  them  next  day  f.o.b.  Copenhagen.  The  English  buyers 
paid  the  freight,  and  the  price  was  to  be  that  current  on  the 
Copenhagen  butter  market  on  the  day  of  shipment."  * 

In  1879  the  introduction  of  the  separator  made  it  desirable 
to  set  up  creameries  that  would  buy  raw  milk  from  small  farmers 
and  manufacture  butter  from  it.  This  work  was  undertaken  at 
first  by  capitalists,  who  met  with  little  success  because  the  interest 
of  the  farmers  did  not  extend  beyond  the  milk,  and  "because 
these  private  dairies  were  unable  to  turn  the  dairy  offal,  skim- 
milk,  etc.,  to  profitable  account."  These  points  were  met  by  the 
co-operative  dairies  which  sprang  up  between  1880  and  1890.  At 
first  their  standard  was  low,  but  by  1895,  by  their  speedy  adop- 
tion of  the  new  methods  of  refrigeration,  pasteurization  and 
"starters,"  they  advanced  beyond  the  estate  dairies.  The  holding 
of  butter  shows  under  State  supervision,  together  with  the  enforce- 
ment of  loyalty  among  suppliers,  paved  the  way  to  the  present 
complete  system  of  co-operative  marketing  of  a  standardized 
product. 

It  is  not  surprising  that  on  Mr.  Anderson's  return  from  observ- 
ing the  beginnings  of  these  developments,  the  Irish  reformers 
should  have  been  stirred  to  emulation.  We  have  seen  how  during 
the  years  1889  and  1890  fifty  fruitless  meetings  were  held  in  the 
attempt  to  organize  a  creamery.  The  first  success  came  in  1890; 
there  were  seventeen  in  1891,  and  no  less  than  sixty-seven  (sell- 
ing £185,000  worth  of  butter)  by  1895. 

The  form  of  organization  of  a  co-operative  creamery  in  Ireland 

*  J.  J.  Dunne,  "Dairying  in  Denmark,"  Better  Business,  vol.  ii,  No.  2,  February, 
1917- 


THE  CREAMERIES  in 

has  changed  very  little  since  that  date.  The  Rochdale  principles, 
which  we  have  described  already,  were  adopted,  and  have  been 
preserved.  Shares  were  fixed  in  proportion  to  the  number  of  cows 
owned  by  the  intending  shareholder.  The  original  number  pre- 
scribed was  one  £i  share  for  every  cow,  and  although  the  amount 
seems  to  have  become  less  adequate  in  the  face  of  the  increased 
expense  required  by  a  modern  creamery,  it  has  remained  un- 
altered. 

The  most  obvious  requirement  for  the  success  of  a  co-operative 
creamery  is  that  it  should  be  assured  of  a  steady  supply  of  milk 
adequate  to  its  equipment.  A  creamery  built  and  equipped  to 
cope  with  the  supply  from  1000  cows  must  almost  certainly  be 
wrecked  if  it  ceases  to  obtain  the  milk  of  more  than  500.  For 
this  reason  it  is  essential  that  farmers  who  take  part  in  the  promo- 
tion of  a  creamery  should  continue  to  support  it.  Unfortunately 
it  was  found  that  neither  the  business  sense  nor  the  loyalty  of 
co-operators  was  always  proof  against  the  temptations  offered 
by  rival  buyers,  or  even  against  the  mere  capricious  desire  to  try 
a  new  market.  Consequently  it  became  necessary  to  learn  another 
lesson  from  Denmark,  and  to  enforce  the  loyalty  of  members 
by  a  rule  binding  them  to  supply  to  their  creamery  all  the  milk 
not  required  for  domestic  consumption.  In  1900  we  find  the  fol- 
lowing passage  in  the  I.A.O.S.  report: 

"A  very  important  and  significant  step  has  been  taken  by  some 
of  the  new  societies.  Their  members  have  given  an  undertaking 
to  supply  milk  to  their  creamery  for  a  term  of  years  sufficiently 
long  to  ensure  its  success.  The  committee  of  a  society  which  holds 
such  a  guarantee  from  its  members  can,  with  perfect  safety, 
pledge  their  credit  to  obtain  a  sufficient  overdraft  from  their 
bankers." 

By  the  next  year  a  considerable  advance  had  been  made,  the 
new  societies  having  voluntarily  adopted  the  following  rule : 


ii2        RURAL  RECONSTRUCTION  IN  IRELAND 

"Any  member  who  shall  without  the  consent  in  writing  of  the 
committee  supply  milk  to  any  creamery  other  than  that  owned 
by  the  society,  for  the  space  of  three  years  from  the  date  of  his 
admission  to  membership,  shall  forfeit  his  shares,  together  with 
all  money  credited  thereon." 

Considerable  legal  controversy  took  place  as  to  the  validity  of 
this  "binding  rule,"  and  the  I.A.O.S.  was  advised  that  the  enforce- 
ment of  the  penalty  was  ultra  vires.  After  taking  the  best  advice, 
it  was  decided  to  incorporate  in  all  the  new  creamery  rules  a  form 
of  contract.  Every  member  who  agrees  to  be  bound  by  the  rules 
automatically  accepts  this  contract.  The  society  is  bound,  on  the 
one  hand,  to  accept  all  the  milk  of  its  members,  provided  it  is 
delivered  fresh  and  in  good  condition,  and  to  pay  for  it  at  the 
rate  fixed  by  the  committee.  The  individual  member,  on  the  other 
hand,  is  bound  not  to  sell  milk  to  any  other  "creamery  company, 
person,  or  persons  who  sell  milk  or  manufacture  butter  for  sale." 
Any  breach  entails  a  payment  "as  and  for  liquidated  damages 
and  not  by  way  of  penalty"  of  one  shilling  per  cow  per  day  in 
respect  of  all  cows  involved.  Exceptions  are  provided  in  case  of 
accident,  labor  or  trade  dispute,  or  infectious  disease,  and  the 
committee  has  the  power  to  refuse  further  purchases  instead  of 
levying  the  damages.  Action  has  been  taken  from  time  to  time 
under  this  rule,  and  has  been  frequently  challenged  in  the  law 
courts,  with  varying  results;  but  recent  decisions  in  the  Court 
of  Appeal  seem  to  have  established  its  validity  beyond  further 
dispute.  The  rule  is  undoubtedly  of  the  greatest  value  in  ensuring 
the  safety  of  a  creamery,  but  so  long  as  non-members — who,  of 
course,  are  not  bound  by  the  rules — are  allowed  to  supply  milk, 
there  will  always  be  a  number  of  farmers  who,  from  unwillingness 
to  bind  themselves,  will  refuse  to  take  shares.  This  practice  intro- 
duces a  distinctly  unco-operative  and  even  unbusinesslike  element 
into  the  working  of  the  creameries.  Unfortunately,  in  spite  of  the 


THE  CREAMERIES  113 

exhortations  of  the  I.A.O.S.  and  the  provisions  of  the  Act,*  there 
are  many  creameries  in  which  the  number  of  members  remains 
stationary  while  the  number  of  suppliers  increases. 

The  same  rule  contains  a  clause  dealing  with  overlapping, 
which  lays  down  the  principle  that  no  society  shall  receive  sup- 
plies from  an  area  already  covered  by  a  similar  creamery.  No 
hard-and-fast  rule  can  be  enforced  as  to  the  area  to  be  covered, 
but  the  organizers  of  the  I.A.O.S.  usually  demand  a  guaranteed 
supply  from  800  to  1200  cows  within  a  radius  of  from  five  to  six 
miles  before  starting  a  central  creamery.  In  large  areas  with  a 
scattered  population  it  has  been  found  desirable  to  build  auxiliary 
creameries  which  merely  separate  the  member's  milk  and  forward 
the  cream  to  a  central  society  within  easy  hauling  distance.  These 
are  of  two  kinds,  either  separately  managed  and  registered 
societies,  working  in  conjunction  with  a  central,  or  mere  branch 
establishments  entirely  owned  by  the  members  of  the  central 
society.  The  latter  are  known  as  "part  and  parcel  auxiliaries," 
and  are,  of  course,  not  separately  registered. 

There  has  been  very  considerable  difference  of  opinion  as  to 
the  relative  merits  of  the  two  forms  of  auxiliary;  but  on  the  whole 
the  arguments  in  favor  of  the  separately  registered  type  have 
gained  the  day.  Separate  registration  enables  members  of  the 
auxiliary  to  carry  on  other  business,  such  as  collective  purchase, 
and  also  to  obtain  credit.  It  ensures  a  better  supervision  owing 
to  keener  local  interest,  and  also  enables  the  auxiliary  to  effect 
a  new  affiliation  should  its  central  give  up  the  business,  or  fail 
to  give  satisfaction.  The  "part  and  parcel"  system  is  apt  to  lead 
to  that  spreading  of  control  over  an  area  too  large  for  personal 
intercourse  which  co-operative  societies  should  always  seek  to 
avoid.  On  the  other  hand,  there  is  some  difficulty  in  arranging 
the  relations  between  a  central  and  a  separately  registered  aux- 

*  Under  the  provisions  of  the  Industrial  and  Provident  Societies  Act  a  society 
is  liable  to  income  tax  if  it  limits  the  number  of  its  members  and  at  the  same  time 
does  business  with  non-members. 


ii4        RURAL  RECONSTRUCTION  IN  IRELAND 

iliary  in  such  a  way  as  to  avoid  disputes,  and  in  spite  of  a  very 
carefully  drawn  model  form  of  agreement,  the  I.A.O.S.  is  fre- 
quently called  in  to  arbitrate.  The  testing  of  the  amount  of  the 
butter-fat  in  the  cream  sent  to  the  central,  which  is  the  basis  of 
payment,  requires  delicate  handling,  and  originally  caused  so 
much  difficulty  as  to  make  the  system  seem  somewhat  unwork- 
able; but  with  increased  experience  this  difficulty  has  been 
largely  overcome.  The  reports  of  the  I.A.O.S.  for  1900-1902  show 
considerable  enthusiasm  for  the  auxiliary  system,  and  it  seems 
to  have  been  felt  that  the  future  of  co-operative  dairying  lay 
largely  in  this  direction.  There  has,  however,  been  a  gradual 
revulsion,  caused  by  the  failure  of  some  auxiliaries  which  were 
started  with  insufficient  reason,  where  cartage  would  have  solved 
the  problem,  and  by  the  feeling  that  all  co-operative  societies 
should,  if  possible,  be  locally  controlled  and  independent.  Unless 
500  gallons  a  day  can  be  ensured,  it  is  probable  that  cart- 
ing— which  can  be  done  for  id.  to  3d.  a  gallon — is  more  economi- 
cal for  any  distance  up  to  eight  miles.  Shipping  cream  by  rail  is 
rendered  almost  prohibitive  by  the  rates  charged,  and  this 
method  is  only  employed  in  one  or  two  cases  in  the  whole  country. 
For  a  successful  auxiliary  it  is  estimated  that  the  supply  from 
500  to  600  cows  should  be  available,  and  the  cost  of  erection  and 
equipment  will  be  about  £1000,  as  compared  with  £2000  to  £2500 
for  a  central.*  These  considerations  seem  to  suggest  that  the 
development  of  the  auxiliary  system  in  future  will  be  strictly 
limited. 

The  control  of  a  co-operative  creamery  is  in  the  hands  of  a 
committee  of  management  elected  by  the  members  at  a  general 
meeting.  The  committee  appoints  its  chairman,  and  also  the  man- 
ager, secretary,  and  other  employees  of  the  society.  A  general 
meeting  of  the  members  is  held  yearly,  and  one-fourth  of  the 
committee  retire  by  rote  at  each  such  meeting,  and  are  eligible 

*  Under  present  conditions,  which  we  may  hope  are  abnormal,  these  figures  are 
well  below  the  mark. 


THE  CREAMERIES  115 

for  re-election.  The  powers  of  the  committee  are  very  wide, 
including  that  of  entering  into  all  engagements  and  making  loans 
or  borrowing  money  on  behalf  of  the  society.  The  general  meet- 
ing is  bound  to  elect  a  public  auditor  who  will  submit  a  certified 
statement  to  each  annual  general  meeting. 

The  price  of  milk  is  fixed  from  time  to  time  by  the  committee 
at  so  much  per  gallon,  according  to  the  percentage  of  butter-fat 
contained  in  it.  The  price  should  be  based  on  the  amount  received 
for  butter,  with  a  reasonable  margin  for  all  standing  charges, 
working  expenses,  reserves,  etc.  A  sample  of  each  member's  milk 
is  taken  on  delivery,  and  tested  for  butter-fat,  and  at  the  end  of 
each  month  (or  in  some  cases  each  fortnight)  payment  is  made 
on  the  basis  of  this  test  for  the  amount  of  butter-fat  actually 
received  by  the  society,  according  to  the  price  fixed.  The  skim- 
milk  is  returned  to  the  supplier,  and  is  used  for  the  feeding  of 
pigs,  calves,  etc.  In  spite  of  an  idea  which  is  still  held  by  some  old- 
fashioned  people  that  skim-milk  is  bad  for  calves,  this  privilege 
is  very  greatly  appreciated,  and  has  the  effect  of  drawing  many 
suppliers  to  the  co-operative  creamery.* 

Any  surplus  accumulated  during  the  year  as  a  result  of  paying 
a  lower  price  than  the  milk  actually  earned  is  appropriated  in 
accordance  with  Rule  72,  which  reads: 

"The  net  profits  of  the  society,  after  payment  of  interest  on 
loan  capital,  shall  be  applied  as  follows: 

"(a)  To  the  payment  of  interest,  which  shall  not  be  cumula- 
tive, on  paid-up  share  capital,  not  exceeding  5  per  cent. 

"(£)  To  reserve  fund,  at  the  rate  of  not  less  than  10  per  cent, 
of  the  total  net  profit,  until  such  reserve  fund  shall  at  least  equal 
the  nominal  share  capital  of  the  society. 

"(c)  To  a  dividend  to  persons  employed  by  the  society  and 
to  members  at  an  equal  rate  in  the  pound,  calculated  on  the 

*It  may  be  mentioned  that  in  Danish  creameries  a  good  deal  of  the  working 
capital  is  derived  by  charging  a  small  price  for  this  separated  milk. 


n6        RURAL  RECONSTRUCTION  IN  IRELAND 

amount  of  their  wages  and  their  trade  respectively,  during 
period  to  which  the  division  relates. 

"(d)  To  the  creation  of  a  fund  for  promoting  co-operative 
organization." 

There  are  two  unfortunate  features  connected  with  this  rule. 
In  the  first  place,  by  the  use  of  the  word  "profits"  it  lends  the 
authority  of  the  co-operative  movement  itself  to  the  prevalent 
theory  that  co-operative  societies  make  profits.  As  a  natural 
corollary,  these  societies  have  now  been  brought  within  the  scope 
of  the  excess  profits  duty,  and  the  old  agitation  conducted  by 
interested  parties  against  the  exemption  from  income  tax  has 
been  renewed  with  great  vigor.  Properly  speaking,  there  is  no 
such  thing  as  profit  in  a  co-operative  society;  the  apparent  sur- 
plus represents  an  amount  held  back  from  the  price  due  for  milk, 
which  is  kept  as  a  reserve  against  risks,  and,  if  not  required  for 
this  purpose,  must  be  returned  to  the  persons  to  whom  it  be- 
longs— namely,  the  suppliers.  The  idea  of  profit  involves  an 
absurdity,  as  it  suggests  that  the  members  in  their  corporate 
capacity  are  trying  to  get  the  better  of  themselves  in  their 
individual  capacity. 

In  the  second  place,  the  term  "reserve  fund"  has  never  been 
defined,  and  as  a  consequence  the  vast  majority  of  Irish  cream- 
eries do  not  comply  with  the  spirit  of  the  rules  at  all,  but  simply 
carry  forward  their  accumulated  surplus  year  by  year  as  "balance 
disposable,"  and  the  I.A.O.S.  has  tacitly  encouraged  this  practice 
by  including  these  sums  in  its  statistics  under  the  heading 
"reserve  funds."  This  gives  a  misleading  idea  of  the  financial 
position  of  the  societies,  and  the  members  frequently  think  that 
the  whole  amount  under  this  head  is  available  for  division  in 
cash,  and  should  be  so  used,  whereas  it  is  usually  locked  up  in 
buildings  and  equipment  and  offset  by  a  bank  overdraft.  An 
energetic  effort  is  now  being  made  for  reform  in  this  direction, 


THE  CREAMERIES  117 

and  several  progressive  societies  have  written  off  the  whole  value 
of  their  buildings  and  plant. 

This  brings  us  naturally  to  a  consideration  of  the  financial 
methods  of  a  co-operative  creamery.  The  problem  of  capital  has 
always  been  a  difficult  one,  and  it  is  held  by  many  that  the 
present  methods  are  inadequate.  Shares,  as  we  have  remarked, 
are  of  the  value  of  £i,  and  are  usually  held  in  the  proportion  of 
one  share  per  cow.  But  of  this  amount  only  2s.  6d.  is  payable  on 
allotment,  and  further  calls  are  at  the  discretion  of  the  com- 
mittee, and  are  seldom  made.  It  follows  that  the  money  required 
for  equipment  must  be  largely  borrowed.  By  an  arrangement 
made  between  the  I.A.O.S.  and  the  joint-stock  banks,  the  latter 
agree  to  lend  money  at  a  flat  rate  of  4  per  cent,  to  all  affiliated 
co-operative  societies,  and  practically  all  the  creameries  avail 
themselves  of  these  favorable  terms.  Unfortunately,  however,  the 
banks  do  not  recognize  the  societies  as  such,  but  insist  upon  a 
collective  note  from  the  members  of  the  committee,  so  that  in 
case  of  necessity  they  will  be  able  to  proceed  against  one  or  two 
prominent  persons  for  the  whole  amount  of  the  loan.  The  com- 
mittee members  in  turn  must  protect  themselves,  and  this  they 
do  as  a  rule  by  the  issue  of  loan  guarantee  shares.  Every 
member  may  be  obliged  to  take  one  of  these  shares  with  every 
ordinary  share  he  holds.  The  nominal  value  is  £i,  but  only  is. 
is  paid,  and  the  rest  is  payable  only  on  liquidation,  when  the 
amount  so  raised  is  applied  to  paying  off  the  debts  of  the  society. 
Another  method  is  for  the  members  to  sign  a  collective  letter  of 
indemnity  to  the  committee,  but  the  process  of  collection  would 
probably  be  slow.  The  unsatisfactory  feature  of  this  arrange- 
ment, apart  from  the  fact  that  the  stability  of  the  creameries  is 
made  dependent  on  the  goodwill  of  the  banks,  lies  in  the  fact 
that  no  committee  man  can  be  removed  from  office  as  long  as 
he  is  a  guarantor,  and  thus  the  feature  of  democratic  control 
tends  to  be  weakened.  As  a  working  arrangement,  however,  it 
has  so  far  proved  to  be  satisfactory. 


n8        RURAL  RECONSTRUCTION  IN  IRELAND 

Figures  are  given  in  Appendix  I  showing  the  proportion  of 
owned  capital  to  loan  capital  and  turnover  respectively  in  the 
four  provinces.  While  they  reveal  the  fact  that  the  capital  of 
the  societies  is  small,  it  will  be  found  to  compare  favorably  with 
that  obtained  in  other  countries,  and  it  must  be  remembered  that 
the  creameries  have  a  great  advantage  over  supply  societies  or 
stores,  in  that  they  usually  get  paid  for  their  butter  before  they 
pay  for  the  milk  from  which  it  is  made.  They  are,  however, 
frequently  slow  in  paying  off  overdrafts,  writing  down  their 
equipment,  and  paying  for  goods  purchased,  and  it  seems  as  if 
for  this  and  other  reasons  there  would  be  a  great  deal  to  be  said 
for  adopting  the  practice  usual  in  other  countries  of  having  shares 
fully  paid  up  in  the  course  of  three  or  four  years  by  means  of 
instalments  withheld  from  the  price  paid  for  milk.  The  figures 
show  that  the  capital  per  member  at  present  is  very  small  when 
we  consider  that  dairy  farmers  are  a  comparatively  prosperous 
class,  and  are  deriving  great  material  benefit  from  the  creameries. 
The  actual  amount  of  benefit  accruing  to  farmers  is  hard  to 
estimate  definitely.  But  the  decrease  in  the  number  of  proprietary 
factories  and  creameries,  and  the  diminished  production  of 
"farmers'  butter,"  taken  in  conjunction  with  the  greatly  increased 
output,  both  in  quantity  and  value,  of  Irish  butter,  shows  that  to 
this  form  of  organization  more  than  to  any  other  credit  is  due 
for  the  improvement  which  has  taken  place  in  the  last  twenty 
years.  The  official  statistics  of  exports  and  imports,  from  which 
extracts  are  given  in  Appendix  VII,  illustrate  the  increase 
referred  to,  and  the  rise  of  butter  in  importance,  as  compared 
with  other  Irish  products.  Meanwhile  the  number  of  creamery 
societies  has  increased  steadily,  and  though  the  end  is  not  yet, 
there  are  no  large  dairying  sections  in  the  country  where  the 
co-operative  seed  has  not  been  planted.  The  details  of  this  growth, 
as  well  as  a  table  showing  the  geographical  distribution  of  the 
existing  societies,  will  be  found  in  Appendix  I.  In  number, 
membership  and  value  of  business  the  creameries  are  the  most 


THE  CREAMERIES  119 

important  group  of  co-operative  societies  in  Ireland,  and  their 
success  alone  would  justify  the  policy  inaugurated  by  Sir  Horace 
Plunkett. 

In  addition  to  the  actual  production  of  butter,  many  of  these 
creameries  carry  on  various  subsidiary  enterprises  for  the  benefit 
of  their  members.  Of  these  the  most  common  is  the  collective 
purchase  of  agricultural  requirements  of  all  kinds,  in  districts 
where  no  special  society  has  been  formed  for  that  purpose.  The 
creameries  also  do  a  large  trade  in  eggs  and  poultry,  which  they 
collect  from  their  members  and  sell  either  through  the  Irish 
Agricultural  Wholesale  Society  or  direct.  An  important  develop- 
ment, which  has  received  a  new  impetus  under  war  conditions, 
is  that  of  setting  up  mills  to  be  worked  by  the  power  which  is 
already  available  at  the  creamery.  There  is  no  doubt  that  wheat- 
growing  could  be  largely  stimulated  in  many  parts  of  the  country 
if  facilities  were  provided  for  converting  the  crop  into  flour  for 
home  consumption.  At  present  it  is  frequently  forty  miles  or 
more  to  the  nearest  mill,  and  after  the  wheat  reaches  the  mill 
the  producer  is  entirely  in  the  hands  of  the  miller.  Irish  wheat 
is  not  well  adapted  for  making  modern  white  bread,  unless  mixed 
with  foreign  varieties;  but  it  is  excellent  for  home-made  whole- 
meal bread,  which  is  much  more  nourishing  and  wholesome. 
Every  encouragement  is  therefore  being  given  by  the  I.A.O.S. 
to  creameries  to  undertake  this  business,  as  they  can  do  it  in  a 
safer  and  more  economical  way  than  a  new  society  which  would 
have  to  erect  a  special  plant.  Even  in  districts  where  there  is 
little  prospect  of  wheat-growing  there  is  usually  an  opportunity 
for  a  simpler  form  of  crushing-mill  for  converting  home-grown 
oats  into  fodder,  making  maize  meal,  and  for  similar  purposes, 
and  there  are  already  many  creameries  deriving  great  advantages 
from  an  inexpensive  equipment  of  this  kind. 

One  further  activity  of  the  creameries  is  the  lending  of  money 
to  suppliers  at  some  periods  of  the  year,  against  the  security  of 
their  milk.  This  practice  might  be  a  very  useful  one  if  it  were 


120       RURAL  RECONSTRUCTION  IN  IRELAND 

regularized  by  the  addition  of  a  proper  banking  branch  to  the 
society;  but  as  it  stands  at  present  it  is  discouraged  by  the 
I.A.O.S.,  as  abuses — among  others,  those  of  lending  for  unpro- 
ductive purposes,  and  to  suppliers  who  are  not  members — are 
liable  to  spring  up. 

The  success  of  the  co-operative  movement  is  shown  very 
clearly  by  the  gradual  elimination  of  its  competitors.  The  output 
of  factories  and  proprietary  creameries  is  on  the  decline,  al- 
though, unfortunately,  no  figures  on  the  subject  are  available. 
The  word  "creamery"  has  come  to  be  synonymous  with  co- 
operative society  throughout  the  country.  But,  in  spite  of  this, 
the  creameries  are  scarcely  more  free  from  competition  in  sale 
than  they  were  at  the  beginning  of  the  movement,  for  the  unfor- 
tunate reason  that  they  have  not  yet  been  convinced  of  the  neces- 
sity of  not  competing  with  one  another.  In  other  words,  although 
the  process  of  manufacture  has  been  organized  and  the  technique 
improved  to  a  degree  which  rivals  the  progress  of  Denmark,  the 
problem  of  marketing  the  product  remains  almost  untouched. 
Yet  the  importance  of  this  problem  was  understood  from  the  very 
beginning,  and  several  attempts  were  made  to  deal  with  it. 

As  early  as  the  year  1892  a  federation  was  established  under 
the  name  of  the  Irish  Co-operative  Agency  Society,  Ltd.,  with 
headquarters  at  Limerick,  and  offices  and  stores  at  Manchester, 
whose  main  purpose  was  to  market  the  butter  of  co-operative 
creameries,  and  incidentally  to  purchase  the  requirements  of 
affiliated  societies.  During  the  first  year  of  its  existence  it  was 
involved  in  one  of  the  perennial  lawsuits  which  have  always 
afflicted  co-operative  pioneers,  and  was  also  crippled  by  bad 
debts.  Between  these  two  causes  all  of  its  capital  disappeared 
before  the  end  of  the  year.  Its  leaders,  however,  persevered,  and 
were  able  to  act  as  a  purchasing  agency  for  the  first  agricultural 
societies  which  bought  guaranteed  and  tested  manures.  With  this 
help  the  Agency  finally  recovered  and  worked  up  a  turnover  of 
£77,000  by  the  year  1895.  The  membership  in  this  year  increased 


THE  CREAMERIES  121 

from  sixteen  to  forty- two  societies,  each  of  which  took  twenty  £i 
shares,  on  which  55.  od.  a  share  was  payable  on  application,  the 
remainder  being  made  up  out  of  profits  due  the  societies.  A  dis- 
cussion on  the  subject  of  the  federation  at  the  annual  conference 
of  co-operative  societies  in  this  year  revealed  a  feeling  among 
some  delegates  that  they  ought  not  to  be  bound  to  the  Agency 
in  any  way,  and  unfortunately  this  point  was  conceded  without 
argument.  The  natural  result  was  that  all  societies,  except  those 
of  strong  co-operative  faith,  sold  through  the  Agency  only  when 
the  market  was  bad,  and  at  other  times  cheerfully  accepted  high 
prices  from  other  quarters.  Consequently,  the  Agency  was  unable 
to  do  its  business  in  the  most  effective  way,  and  soon  got  a  bad 
name  for  its  prices.  Several  delegates,  however,  generously 
acknowledged  the  great  services  which  the  Agency  had  already 
rendered  to  farmers,  and  it  was  stated  that  it  had  made  the  keep- 
ing of  a  cow  25  per  cent,  more  profitable.  A  sub-committee  of 
inquiry  was  appointed  to  investigate  the  prospects,  and  reported 
in  1897.  Its  conclusions  were  that  the  work  of  the  Agency  was 
being  well  done,  but  that  the  support  accorded  to  it  in  the  matter 
both  of  trade  and  of  capital  was  inadequate.  The  creameries 
were  said  to  show  indifference  to  it,  and  a  tendency  to  dump  bad 
butter  on  it.  The  recommendations  made  to  meet  this  state  of 
things  were:  First,  more  trade  should  be  done  with  retailers,  and 
more  advertisement  should  be  indulged  in.  As  a  preliminary  to 
these  developments  a  strenuous  effort  was  to  be  made  to  increase 
the  capital.  Secondly,  a  commission  of  2^2  per  cent,  should  be 
charged  on  regular  consignments  from  members,  while  irregular 
ones  should  be  dealt  with  according  to  circumstances.  Thirdly, 
headquarters  should  be  moved  to  Dublin  and  augmented  by  a 
retail  department.  Fourthly,  provincial  representation  on  the 
committee  was  to  be  accorded  in  proportion  as  dairying  increased 
in  the  various  districts.  The  establishment  of  an  ice-making 
company,  and  the  issuing  of  a  prospectus  were  also  urged.  Mean- 
while, in  1896  an  attempt  on  the  part  of  the  Agency  to  market 


122        RURAL  RECONSTRUCTION  IN  IRELAND 

barley  for  its  members  had  ended  disastrously,  and  other  agri- 
cultural trade  had  led  to  losses.  It  was  decided  that  this  trade 
could  be  better  handled  by  a  separate  organization,  and  a  new 
federation  was  accordingly  formed.  The  new  body  was  first 
known  as  the  Irish  Co-operative  Agricultural  Agency,  and  after 
a  year  became  the  Irish  Agricultural  Wholesale  Society. 

Most  of  the  recommendations  of  the  sub-committee  seem  to 
have  remained  inoperative.  The  headquarters  of  the  Agency 
remained  at  Limerick,  and  the  lack  of  capital  and  other  difficulties 
continued  from  year  to  year  in  greater  or  less  degree.  Satisfactory 
progress  was  made,  however,  by  dint  of  careful  and  persevering 
effort  on  the  part  of  the  management,  and  in  1899  the  Agency 
bought  a  creamery  to  stabilize  its  supplies. 

The  subsequent  history  of  the  society  has  been  one  of  mod- 
erate progress.  In  the  direction  of  selling  to  retailers  it  has 
carried  out  to  a  very  large  extent  the  recommendations  of  the 
sub-committee  of  1895,  but  until  the  support  which  the  cream- 
eries give  to  it  both  in  regard  to  capital  and  trade  is  greatly 
improved  the  Agency  cannot  be  considered  to  fulfil  the  functions 
of  a  proper  marketing  federation.  In  the  1914  report  of  the 
I.A.O.S.  the  committee  says:  "The  question  of  marketing  still 
remains  unsolved,  but  it  must  be  dealt  with  thoroughly  in  the  near 
future  if  the  control  of  that  part  of  the  business  is  not  to  pass 
into  the  hands  of  others  than  the  representatives  of  the  cream- 
eries." The  point  is  thoroughly  illustrated  by  the  statistics  of 
1915,  which  show  the  total  sales  of  the  Agency  as  £177,531, 
compared  with  butter  sales  to  the  amount  of  £3,167,686  made 
by  the  300  creameries  affiliated  to  the  I.A.O.S.  The  vast  majority 
of  the  creameries,  to  quote  the  report  again,  "have  done  little  or 
nothing  to  remedy  the  evils  of  the  system  of  marketing  which 
still  admits  of  every  creamery  competing  with  the  rest  in  'cutting' 
prices." 

Creamery  managers  are  inclined  to  lay  the  blame  for  this  state 
of  things  at  the  door  of  the  Agency  itself,  on  the  ground  that  it 


THE  CREAMERIES  123 

does  not  get  satisfactory  prices  on  the  commission  system,  and 
that  they  can  do  much  better  by  selling  direct.  But  the  officers 
of  the  federation  deserve  every  praise  for  the  way  in  which  they 
have  built  up  a  paying  business  in  spite  of  every  difficulty.  The 
fault  must  be  looked  for  in  the  attitude  of  the  creameries,  whose 
committees  persist  in  regarding  the  Agency  as  an  outside  trading 
body  rather  than  as  their  own  federation,  and  whose  managers 
are  unable  to  resist  the  temptation  of  sheaves  of  telegrams  from 
English  and  Scottish  houses  which  greet  them  in  a  time  of 
scarcity.  In  times  of  glutted  markets  they  fall  back  upon  the 
Agency. 

The  main  difficulty  seems  to  have  arisen  from  the  fact  that  the 
Agency  was  started  too  early  in  the  development  of  the  movement, 
when  there  were  not  enough  creameries  to  give  it  adequate  sup- 
port. It  was  consequently  driven  into  a  weak  position  from  the 
beginning,  and  has  never  been  able  to  assert  itself  as  a  real  fed- 
eration with  disciplinary  powers.  Of  late  years  the  Irish  Agri- 
cultural Wholesale  Society  has  entered  into  competition  with  it 
to  some  extent,  by  marketing  butter  on  a  commission  basis 
through  its  agricultural  produce  department.  But  here  again  it 
is  obvious  that  managers  who  are  making  first-class  butter  and 
selling  direct  at  high  prices  are  not  at  all  likely  to  wish  to  sell 
on  commission.  Consequently,  the  Wholesale  cannot  look  forward 
to  anything  but  the  produce  of  less  energetic  or  capable  societies, 
and  perhaps  the  surplus  of  others  when  the  market  is  bad. 

Nothing  short  of  a  complete  reorganization  will  suffice  to  meet 
these  difficulties,  and  in  carrying  out  such  a  change  it  would  be 
well  to  take  a  lesson  from  the  large  co-operative  selling  associa- 
tions which  have  been  successfully  established  in  California  and 
some  other  parts  of  the  United  States.  In  these  the  federation 
never  actually  handles  the  goods  sold,  and  does  not,  as  a  rule, 
fix  the  price ;  it  simply  acts  as  a  clearing  house  for  offers  on  either 
side.  On  the  other  hand,  its  officers  are  directly  elected  by  the 
organized  producers,  and  no  produce  is  sold  except  through  its 


124        RURAL  RECONSTRUCTION  IN  IRELAND 

medium.  Expenses  are  met  by  a  definite  assessment,  fixed  each 
year  by  the  directors,  on  every  unit  sold.  Thus  there  is  no  pos- 
sibility of  "dumping,"  and  no  questions  can  arise  as  to  the  price 
obtained  by  the  federation. 

In  the  case  of  a  strong  federation  of  this  kind,  the  produce  is 
invariably  sold  under  a  brand.  As  it  is  essential  to  success  that 
such  a  brand  should  inspire  confidence  as  implying  a  certain 
standard,  a  staff  of  inspectors  is  employed  to  see  that  this  standard 
is  maintained.  This  question  of  standardization  is  inseparably 
bound  up  with  marketing,  and  here  again  Ireland  has  been 
behindhand.  The  I.A.O.S.  has  long  recognized  that  Irish  butter 
would  gain  a  far  higher  position  on  the  market  if  it  were  sold 
under  a  well-recognized  brand  which  was  a  guarantee  of  high 
and  uniform  quality.  It  was  hoped  that  any  federation  which 
took  charge  of  the  marketing  would  rapidly  establish  such  a 
brand,  and  the  question  was  frequently  discussed  at  general 
meetings  and  conferences.  Failing  this  development  it  was 
decided,  as  the  result  of  an  excellent  paper  read  by  Mr.  Anderson 
in  1910,  that  the  Organization  Society  should  take  up  standard- 
ization as  an  educational  matter,  and  accordingly  regulations 
were  drawn  up  for  a  "butter  control"  scheme  on  the  lines  of  that 
in  operation  in  Denmark  and  Holland,  but,  of  course,  without 
any  support,  or  even  approval,  from  the  State. 

Creameries  which  adhere  to  the  Control  must  pay  their  affilia- 
tion fees  and  the  special  subscription  fixed  for  the  year  by  the 
I.A.O.S.  They  are  bound  to  produce  their  butter  in  conformity 
with  certain  strict  regulations,  designed  to  ensure,  not  only  first- 
class  flavor  and  purity,  but  also  keeping  quality  without  the  use 
of  preservatives  other  than  salt  and  not  more  than  *^  per  cent, 
of  borax.  Samples  are  sent  to  the  central  office  once  a  month,  and 
are  examined  by  an  expert  bacteriologist.  Surprise  examinations 
and  inspections  may  also  be  made.  One  pound  of  butter  of  each 
day's  churning,  free  from  preservatives,  must  be  kept  by  the 
creamery  manager  for  fourteen  days  (not  in  cold  storage)  in 


THE  CREAMERIES  125 

order  to  check  its  keeping  qualities  in  case  of  complaint.  Labels, 
bearing  the  Butter  Control  brand,  are  issued  by  the  I.A.O.S., 
and  remain  their  property.  They  must  be  affixed  to  all  butter 
made  under  Control  conditions,  and  not  to  any  other.  The  samples 
sent  in  are  reported  upon  in  due  course.  Any  faults  must  be 
looked  into  at  once,  and  in  case  of  butter  which  fails  to  come  up 
to  the  required  standard,  the  use  of  the  label  is  withdrawn  from 
the  offending  creamery  until  the  deficiency  is  made  good.  Samples 
of  water,  salt  and  parchment  are  also  analyzed,  and  in  some 
cases  special  investigation  is  made  of  the  milk  or  cream  in  order 
to  trace  any  failings.  A  weekly  report  is  sent  out  to  all  participat- 
ing creameries,  giving  the  results  obtained  in  respect  of  output, 
average  price,  and  so  on,  each  creamery  being  designated  by  a 
number  varying  each  week.  The  report  also  contains  brief 
observations  by  the  officials  in  charge. 

A  system  of  this  kind  should  go  a  long  way  towards  standard- 
izing Irish  butter,  improving  its  quality,  and  giving  it  an  assured 
position  on  the  British  market.  Up  to  the  present  it  has  been 
surprisingly  difficult  to  induce  creameries  to  conform  to  the  con- 
ditions of  the  Control.  The  price  of  butter  has  been  high,  and 
it  has  been  easy  to  sell.  Managers  who  have  participated  in  the 
Control  system,  while  acknowledging  its  benefits  in  improving 
butter  and  giving  the  clue  to  difficulties,  have  not  found  that  it 
brought  them  an  increased  price.  Other  managers,  failing  to 
realize  that  it  cannot  do  this  until  a  larger  number  join,  have 
stayed  outside  in  order  to  save  themselves  what  they  regard  as 
unrewarded  trouble.  The  number,  however,  is  gradually  increas- 
ing, and  the  Control  brand  is  beginning  to  be  known.  A  good  sign 
of  progress  is  that  somewhat  apprehensive  references  to  the 
system  have  appeared  in  Danish  papers.  The  quality  of  the  butter 
produced  under  the  Control  is  illustrated  by  the  fact  that  con- 
signments have  been  successfully  sent  to  Cape  Town  and  to  the 
internment  camp  at  Ruhleben,  while  some  which  went  to  Spain 
and  was  returned  failing  delivery  was  afterwards  sold  over  the 


126        RURAL  RECONSTRUCTION  IN  IRELAND 

counter  without  complaint.  Butter  to  the  value  of  about  £2  50,0 
was  made  under  the  Control  system  in  1915  by  thirty 
creameries;  283  analyses  were  made,  175  visits  paid  by  organ- 
izers, and  65  supplies  of  pure  culture  for  ripening  were  forwarded 
to  participants. 

The  chief  difficulty  of  a  technical  nature  which  obstructs  the 
progress  of  Irish  creameries  is  the  falling  off  of  the  milk  supply 
during  the  months  from  October  to  April.  During  a  large  part  of 
this  period  the  whole  of  the  creameries  are  working  no  more  than 
half-time,  and  many  of  them  are  closed  altogether  for  a  month 
or  two.  This,  of  course,  means  that  they  lose  their  position  on 
the  British  market,  and  have  to  buy  it  back  each  spring.  As  a 
result  of  this  system  it  also  comes  about  that  suppliers  get  less 
for  their  milk  at  the  very  time  when  butter  is  highest,  and  there 
is  little  inducement  for  them  to  go  in  for  winter  dairying.  It  has 
been  suggested  that  some  of  the  summer  prices  should  be  with- 
held to  meet  this,  but  few  committee  men  would  consent  to  such 
a  scheme.  Meanwhile  the  difficulty  is  met  either  by  cold  storage, 
or  by  the  importation  of  foreign  butter.  The  reason  for  the 
shortage  of  milk  lies  in  the  system  of  grass-feeding,  which  is 
practically  universal,  and  a  remedy  must  be  sought  in  the  intro- 
duction of  tillage  under  a  system  suited  to  small  dairy  farms. 
This  need  has  been  accentuated  by  war  conditions,  with  the 
increased  price  of  imported  feeding-stuffs,  and  the  authoritative 
demand  for  more  home-grown  production.  The  I.A.O.S.  has 
sought  to  stimulate  tillage  by  recommending  the  system  of 
"continuous  cropping,"  a  development  of  catch-cropping  evolved 
by  Mr.  T.  Wibberley,  who  was  for  some  time  the  Society's 
agricultural  expert.  It  is  beyond  our  province  to  go  into  the  tech- 
nicalities of  this  system,  but  it  may  be  said  that  experiment  seems 
to  show  that  it  is  well  suited  to  the  conditions  of  Irish  soil, 
climate  and  holdings,  and  would  go  far  to  increase  the  production 
of  winter  milk.  It  has  a  special  value  in  that  it  will  meet  the 
existing  shortage  of  labor,  by  enabling  the  work  to  be  done  with 


THE  CREAMERIES  127 

simple  modern  machines,  and  the  provision  of  these  machines 
is  essentially  a  matter  which  can  best  be  dealt  with  by  co- 
operative organization.  The  societies  formed  for  this  purpose  will 
be  considered  later.  The  question  of  winter  dairying  is  one  which 
we  should  naturally  expect  would  receive  vigorous  attention  from 
the  Department  of  Agriculture,  but  although  officials  universally 
admit  its  vital  importance,  the  result  of  their  efforts  has  not  been 
striking. 

In  the  same  way  the  average  yield  of  the  cow  is  a  point  of  the 
greatest  possible  importance  in  a  dairying  country,  and  in  this 
respect  Ireland  has  still  much  to  learn.  A  cow-testing  association 
or  milk  record  society  is  an  inseparable  adjunct  of  a  creamery  in 
Denmark  and  other  progressive  countries.  It  enables  farmers 
to  discover  year  by  year  exactly  how  much  the  various  cows  in 
their  herds  are  worth  to  them  as  producers  of  milk,  and  whether 
they  are  returning  a  profit  or  not.  In  this  way  the  unprofitable 
ones  are  weeded  out  and  the  strain  constantly  improved  in  respect 
both  of  quantity  and  fat  content  of  the  milk.  Many  Irish  farmers 
are  still  under  the  impression  that  one  milch  cow  is  as  good  as 
another,  and  take  little  or  no  trouble  to  keep  their  herds  up  to 
a  high  standard.  Both  the  I.A.O.S.  and  the  Department  have 
tried  to  organize  cow-testing  associations  in  connection  with 
creameries,  and  the  latter  body  is  prepared  to  give  them  a  small 
grant  in  aid.  The  advantages  of  cow-testing  are  well  illustrated 
by  a  passage  in  the  I.A.O.S.  report,  which  recounts  how  two 
farmers  who  joined  an  association  in  absolute  ignorance  as  to 
the  yield  of  their  cows  discovered,  in  one  case,  that  the  best  cow 
gave  milk  valued  at  £19  and  the  worst  only  £9  worth,  while  in 
the  other  case  the  figures  were  £12  and  £5  respectively.  About 
250,000  cows  provide  the  milk  for  the  co-operative  creameries 
alone,  and  the  average  yield  is  probably  not  more  than  400 
gallons  per  cow,  as  against  about  700  in  Denmark.  The  difference, 
which  represents  an  enormous  sum  in  actual  money,  could  prob- 
ably be  made  up  by  a  judicious  application  of  the  testing  process. 


128        RURAL  RECONSTRUCTION  IN  IRELAND 

In  spite  of  these  impressive  facts,  there  are  probably  not  more 
than  six  or  seven  successful  cow-testing  associations  in  Ireland 
at  present,  and  there  is  very  little  sign  of  enthusiasm.  The  reason 
may  probably  be  found  in  the  fact  that  the  managers  of  cream- 
eries, especially  the  more  able  ones,  are  already  overworked,  and 
they  are  almost  the  only  people  who  could  be  expected  to  organize 
such  associations.  The  difficulty  will  only  be  got  over  by  deter- 
mined action  on  the  part  of  the  State,  working  in  close  harmony 
with  the  I.A.O.S. 

We  may  bring  this  chapter  to  a  close  by  a  brief  summary  of 
the  services  which  the  I.A.O.S.  is  in  a  position  to  render  to  the 
creameries.  In  addition  to  the  work  of  organization  and  super- 
vision in  the  early  stages,  the  central  body  provides  them  with 
expert  technical  advice  as  to  machinery  and  equipment,  and  also 
provides  plans  and  specifications  for  the  buildings  themselves.  For 
these  purposes  the  services  of  an  expert  in  dairy  engineering,  and 
an  architect  specially  familiar  with  the  problems,  are  retained. 
Inspections  are  carried  out  from  time  to  time,  both  with  regard 
to  the  production  of  butter  and  also  the  keeping  of  the  books. 
Questions  affecting  the  organization  of  auxiliaries,  agreements 
between  auxiliaries  and  centrals,  and  arbitrations  in  case  of  dis- 
pute of  any  kind,  are  taken  care  of.  Creameries  are  kept  informed 
of  their  responsibilities  in  respect  of  such  matters  as  insurance 
of  workmen,  etc.,  and  are  advised  as  to  the  insurance  of  their 
produce.  In  legal  and  parliamentary  matters  particularly,  the 
I.A.O.S.  is  helpful  by  bearing  the  expenses  of  test  cases,  or  by 
representing  the  creameries  in  respect  to  Bills  affecting  their  wel- 
fare. In  this  way  the  "binding  rule"  has  been  established,  and 
amendments  have  been  secured  to  several  Bills,  such  as  the 
Dairies  and  Cowsheds  Act.  One  matter  in  which  the  creameries 
have  suffered  greatly  is  the  disposal  of  their  sewage.  It  is  believed 
that  the  effluent,  which  is  certainly  unpleasant,  is  harmful  to 
cattle,  and  many  creameries  have  been  prosecuted  and  forced 


THE  CREAMERIES  129 

to  pay  heavy  damages  on  this  account,  usually  at  the  instigation 
of  interested  persons.  The  I.A.O.S.  has  made,  and  is  making, 
determined  efforts  to  find  a  solution  for  this  problem,  and  has 
also  been  of  assistance  in  defending  the  creameries  in  the  courts. 


CHAPTER  VIII 
AGRICULTURAL  SOCIETIES 

THE  "co-operative  agricultural  society"  of  Ireland  is  similar  in 
general  aspect  to  the  "supply  society"  of  Germany,  and,  to  a  less 
extent,  to  the  syndicat  agricole  of  France  and  the  Italian  consorzio 
agrario.  The  purpose  of  these  societies  is  the  collective  purchase 
of  the  agricultural  requirements  of  their  members  at  reasonable 
rates,  and  with  a  guarantee  of  quality.  The  chief  articles  dealt 
with  in  this  way  have  been  fertilizers,  feeding-stuffs,  seeds,  and 
a  certain  amount  of  machinery. 

The  conditions  which  gave  rise  to  the  development  of  these 
societies  were  quite  as  deplorable  as  those  which  affected  the 
production  of  Irish  butter.  The  farmer,  as  has  been  pointed  out 
by  A.  E.,  is  essentially  a  manufacturer  who  is  creating  a  finished 
or  partially  finished  article  of  consumption  from  raw  materials. 
He  is  consequently  entitled  to  the  privilege  enjoyed  by  any  other 
manufacturer,  of  buying  his  requirements  at  the  lowest  prices. 
In  spite  of  this  fact,  it  has  been  customary  for  him  to  buy  habit- 
ually in  the  dearest  market  in  retail  quantities,  and  to  sell  his 
produce  in  the  cheapest  market.  In  the  early  days  of  the  co- 
operative movement  all  small  farmers  bought  everything  they 
required  from  the  village  store,  which  was  usually  an  adjunct 
to  the  public-house.  The  owner  of  the  store,  in  many  cases,  com- 
bined the  function  of  a  general  provider  with  those  of  purchaser 
of  produce  and  money-lender  to  the  community.  Under  this  last 
aspect  he  was  known  as  the  "gombeen-man,"  and  was  a  familiar 
and  disastrous  feature  of  Irish  life.  The  gradual  elimination  of 
the  "gombeen-man,"  who  is  now,  though  still  prevalent,  far  less 

130 


AGRICULTURAL  SOCIETIES  131 

powerful,  may  be  largely  ascribed  to  co-operative  activities.  The 
actual  function  of  money-lending,  which  earned  him  his  name, 
was  attacked  by  means  of  the  credit  societies  which  will  be  dis- 
cussed in  the  next  chapter,  but  in  his  capacity  as  storekeeper  he 
was  able  to  do  a  great  deal  of  harm,  which  was  countered  to  some 
extent  by  the  agricultural  societies. 

Practically  no  transaction  at  the  village  store,  or  even  at  the 
large  trader's  shop  in  the  country  town,  was  accompanied  by  any 
transfer  of  cash.  All  that  the  customer  bought,  including  liquid 
refreshment,  was  entered  on  the  ledger — at  the  price  fixed  by  the 
seller.  The  opposite  page  contained  entries  of  credits  for  a  certain 
amount  of  produce — the  price  on  this  occasion  being  dictated  by 
the  buyer.  In  the  more  poverty-stricken  districts  work  done  for 
the  storekeeper  was  also  entered  on  the  credit  side  of  the  ledger. 
From  time  to  time  a  balance  was  struck,  and  it  was  no  uncommon 
thing  for  interest,  calculated  at  an  arbitrary  rate,  to  be  added 
to  the  sums  outstanding.  When  it  is  realized  that  the  victims  of 
this  system  had  no  knowledge  of  accounting  whatever,  and  were 
many  of  them  scarcely  proficient  in  reading  and  writing,  it  is 
easy  to  see  that  they  were  entirely  at  the  mercy  of  the  trader. 
In  some  instances,  no  doubt,  the  local  storekeeper  proved  a  shelter 
to  the  poorer  people  in  times  of  distress,  and  carried  them  over 
periods  when  they  could  not  otherwise  have  survived;  but  he 
was,  as  a  rule,  well  paid  for  his  services  in  the  long  run,  and  such 
cases  must  have  been  few  in  comparison  with  cases  of  extortion. 
In  any  event,  the  existence  of  such  a  tyranny,  even  if  beneficently 
exercised  in  some  districts,  could  not  be  good  for  the  character 
or  business  capacity  of  the  people,  and  certainly  the  large  for- 
tunes accumulated  by  traders  in  out-of-the-way  and  impoverished 
communities  show  that  something  has  been  seriously  wrong  with 
the  system  of  distribution.  Even  the  larger  farmer,  who,  by  virtue 
of  superior  education  and  greater  purchasing  power,  was  able  to 
pass  by  the  local  trader  or  to  meet  him  on  a  more  equal  footing, 


132        RURAL  RECONSTRUCTION  IN  IRELAND 

had  no  real  means  of  obtaining  his  requirements  on  reasonable 
terms.  The  rings  of  wholesalers  and  manufacturers  dictated  the 
prices  without  opposition.  But  this  was  not  the  most  serious 
difficulty.  In  no  case  were  either  seeds  or  manures  accompanied 
by  any  sort  of  guarantee,  so  that  the  farmer  who  purchased 
them  was  not  in  the  least  certain  of  getting  any  good  results. 
Most  of  the  seeds  sold  were  thoroughly  worthless  as  regards 
both  purity  and  germination,  while  the  fertilizers  were  almost 
invariably  deficient  in  the  most  valuable  elements.  It  is  true 
that  an  Act  of  Parliament  was  in  existence  under  which  the  pur- 
chaser was  entitled  to  have  an  analysis  made  of  the  materials, 
but  it  is  safe  to  say  that  nine-tenths  of  the  Irish  farmers  were 
totally  unaware  of  this  fact,  and  in  any  case  it  was  most  im- 
probable that  an  individual  small  farmer  would  be  sufficiently 
bold  or  energetic  to  undertake  the  trouble  and  expense  of  such 
a  process. 

The  organization  of  co-operative  societies  for  joint  purchase 
of  such  requirements  offered,  therefore,  the  following  advantages: 
First,  wholesale  purchase  on  contract  at  low  rates;  secondly,  a 
possibility  of  insisting  upon  a  guarantee  with  the  goods,  and  of 
getting  samples  analyzed  from  the  bulk  consignment  at  very 
small  cost  to  the  individual;  and,  thirdly,  reductions  in  costs  of 
freight  and  expenses  of  handling.  The  idea  of  starting  societies 
for  this  purpose,  as  distinct  from  creameries,  seems  to  have 
originated  after  the  meeting  between  Sir  Horace  Plunkett  and 
Father  Finlay,  to  which  reference  has  been  made.  The  latter, 
with  the  idea  of  German  supply  societies  fresh  in  his  mind,  at 
once  urged  the  organization  of  similar  associations  in  Ireland. 
A  group  of  five  of  these  societies  was  founded  about  October, 
1894,  on  the  border  of  Tipperary  and  Kilkenny,  and  met  with 
immediate  success.  A  table  in  the  first  report  of  the  I.A.O.S.  shows 
the  remarkable  savings  per  ton  on  various  kinds  of  fertilizers 
made  in  the  first  purchases,  and  at  a  joint  meeting  of  the  societies 


AGRICULTURAL  SOCIETIES  133 

held  on  April  27,  1895,  ft  was  stated  that  a  saving  of  £5000  had 
been  effected  in  six  months  by  joint  purchasing.* 

The  form  of  organization  of  these  societies  was  similar  in 
practically  all  respects  to  that  of  the  creameries.  The  same  fea- 
tures of  democratic  control,  limited  shareholdings  and  interest 
and  management  by  an  elective  committee  held  good.  In  fact,  the 
rules  for  a  co-operative  creamery  will  serve  for  an  agricultural 
society,  with  very  slight  modifications.  The  method  of  financing 
the  societies  is  also  the  same  in  theory,  but  a  certain  added  diffi- 
culty is  found  in  practice.  There  is  no  obvious  basis  for  the  taking 
of  shares,  such  as  is  provided  by  the  number  of  cows  in  the  case 
of  a  creamery.  Efforts  have  been  made  to  fix  the  holdings  in  pro- 
portion to  some  standard,  such  as  poor  law  valuation  or  acreage 
farmed,  but  there  is  no  universal  practice,  and  in  most  societies 
the  number  of  shares  taken  seems  to  be  left  to  the  free  will  of 
members.  As  a  consequence  of  this,  the  amount  of  capital  sub- 
scribed in  these  societies  varies  very  largely,  even  when  they 
are  in  the  same  neighborhood  and  organized  within  a  short  time 
of  one  another.  The  point  is  well  illustrated  by  the  following 
table,  which  deals  with  ten  agricultural  societies,  all  organized  by 
the  same  person,  with  the  same  objects: 

Date  of  r  No.  of  No.  of 

Registration  Members         Shares  Taken 

27.10.14  Kildare  93  171 

14.12.14  Wicklow  116  131 

n.  1.15  Wicklow  66  642 

ii.  1.15  Meath.  63  67 

13.  1.15  Louth  44  70 

17.  2.15  Wicklow  94  199 

19.  2.15  Meath  100  158 

20.  2.15  Kildare  72  242 
6.  3.15  Louth  61  323 
i.  3.15  Westmeath  37  57 

*  See  Irish  Homestead  of  that  date. 


134        RURAL  RECONSTRUCTION  IN  IRELAND 

In  all  cases  the  shares  are  of  the  nominal  value  of  fi;  a  first 
call  of  2s.  6d.  is  made,  and  it  is  very  unusual  for  more  than  this 
amount  to  be  paid  up.  Consequently  a  society  with  200  shares, 
which  will  not  be  much  below  the  average,  has  a  paid-up  capital 
of  only  £25.  This  was,  in  fact,  the  average  amount  in  the  case  of 
sixty-three  societies  of  this  kind  in  Connacht  in  1914.  Evidently, 
such  a  capital  does  not  suffice  to  carry  on  the  society's  business, 
even  with  very  low  working  expenses.  The  difficulty  is  got  over, 
as  in  the  case  of  creameries,  by  borrowing  from  the  bank  on  the 
joint  and  several  guarantee  of  the  members  of  the  committee. 
Practically  every  society  in  Ireland  has  an  overdraft  of  this  kind, 
on  which  as  a  rule  4  per  cent,  interest  is  paid.  The  average  over- 
draft in  Connacht  amounts  to  about  £200,  and  in  Leinster,  where 
the  turnover  is  larger,  to  £350.  The  other  provinces  lie  between 
these  limits.  The  defects  of  this  system  of  financing  societies  have 
already  been  touched  on  in  the  chapter  on  creameries,  and  the 
argument  need  not  be  repeated  here. 

Even  with  the  overdraft  system,  however,  the  agricultural 
societies  are  not  as  well  off  in  respect  to  capital  as  they  should 
be.  They  are  obliged  to  give  a  considerable  amount  of  credit  to 
their  members,  and  consequently  are  frequently  behindhand  in 
payments  to  their  wholesalers.  The  member  who  purchases  goods 
from  such  a  society  does  not  expect  to  have  to  pay  for  them  until 
he  has  had  some  benefit  from  their  use.  This  may  be  conceded  to 
be  a  reasonable  point  of  view  on  the  part  of  the  small  farmer;  in 
any  case,  there  is  no  likelihood  of  its  being  altered.  It  follows, 
therefore,  that  as  long  as  the  society  deals  in  fertilizers,  seeds  and 
feeding-stuffs,  the  members  will  require  considerable  credit.  In 
the  case  of  basic  slag,  which  forms  a  large  part  of  the  turnover 
of  many  societies,  at  least  six  months'  credit  must  be  given,  and 
it  may  be  taken  as  the  usual  practice  that  members  of  agricultural 
societies  get,  on  the  average,  at  least  three  or  four  months'  credit 
for  all  the  goods  they  buy  from  them.  Unfortunately,  in  practice 
this  period  is  often  extended  and  sometimes  stretches  to  a  year 


AGRICULTURAL  SOCIETIES  135 

or  more.  The  society  which  gets  such  treatment  for  its  members 
must  necessarily  lose  many  of  the  benefits  of  cash  payment,  as 
well  as  weakening  the  position  of  its  federation,  unless  it  has  a 
considerable  reserve  capital,  and  in  very  few  societies  is  this 
forthcoming.  The  fact  that  as  a  rule  no  buildings  or  equipment 
are  required,  and  that  the  members  of  the  society  take  little 
interest  in  its  existence  except  at  the  particular  season  of  the  year 
when  their  requirements  are  bought,  tends  to  make  the  raising 
of  more  capital  particularly  difficult. 

Two  ways  of  getting  over  this  difficulty  suggest  themselves; 
either  the  functions  of  an  agricultural  society  might  be  largely 
delegated  to  creameries,  or  their  scope  might  be  enlarged  by  the 
addition  of  some  other  activity  which  would  evoke  continuous 
interest.  The  former  plan  has  been  adopted  steadily  and  with 
great  success  since  the  beginning  of  the  movement.  Immediately 
after  the  foundation  of  the  first  agricultural  societies  many 
creameries  took  up  collective  purchase,  and  the  I.C.A.S.  acted 
as  the  wholesale  body.  At  the  present  time  practically  all  the 
creameries  do  a  good  deal  of  this  business,  and  are  consequently 
known  as  co-operative  agricultural  and  dairy  societies.  But  there 
are  naturally  many  districts  where  local  conditions  do  not  admit 
of  the  establishment  of  a  creamery,  and  it  is  in  these  places  that 
an  agricultural  society  proper  will  be  found.  As  we  have  said, 
unless  something  is  added  to  the  function  of  buying  fertilizers, 
seeds  and  manures,  such  a  society  will  be  comatose  most  of  the 
year,  thus  losing  the  real  spirit  of  co-operative  endeavor  and 
becoming  a  somewhat  fortuitous  combination  for  a  limited 
business  purpose. 

The  first  intention  was  that  agricultural  societies  should  act 
to  some  extent  as  centres  of  technical  improvement,  and  also  as 
channels  for  the  sale  of  their  members'  produce.  A  good  deal  was 
done  by  the  pioneer  societies  in  the  direction  of  buying  good  bulls 
and  other  breeding  stock  for  the  improvement  of  local  strains, 
and  one  or  two  miniature  experiment  stations  were  also  carried 


136        RURAL  RECONSTRUCTION  IN  IRELAND 

on.  The  foundation  of  the  Department  of  Agriculture,  however, 
with  the  special  purpose  of  dealing  with  such  matters,  naturally 
put  an  end  to  these  undertakings,  which  were  only  begun  by  the 
societies  in  the  absence  of  a  better  medium.  The  collective  sale 
of  produce  proved  in  Ireland,  as  in  all  other  countries,  a  far  more 
difficult  matter  than  any  other  form  of  co-operation.  Difficulties 
of  grading  and  standardization,  jealousies  between  members,  need 
of  capital  and  of  finding  a  ready  market  for  perishable  commodi- 
ties make  this  an  enterprise  only  to  be  attempted  where  the  co- 
operative spirit  is  thoroughly  awakened  and  the  standard  of 
professional  education  is  high.  In  Ireland  there  is  little  to  be  sold 
with  the  exception  of  butter  (which  was  already  dealt  with  by 
the  creameries),  live  stock,  barley,  and  a  certain  amount  of 
potatoes.*  An  experiment  in  the  selling  of  barley  by  the  I.C.A.S. 
ended  in  disaster,  owing  to  the  uncertainty  of  the  market,  and 
the  few  efforts  which  were  made  to  form  live-stock-selling  asso- 
ciations did  not  attain  any  permanent  success.  The  loyalty  of 
members  was  not  proof  against  competitive  bidding,  and  they  had 
no  facilities  for  finding  any  market  for  themselves  independently 
of  the  Dublin  buyers.  One  or  two  attempts  have  been  made  to 
promote  collective  sale  of  fresh  milk  in  the  neighborhood  of  cities, 
but  this  is  a  proverbially  hazardous  enterprise,  and  so  far  has  not 
succeeded.  A  certain  amount  of  sale  of  potatoes  and  eggs  can, 
no  doubt,  be  effected  through  a  society,  just  as  it  used  to  be 
through  the  village  shop,  but  this  cannot  be  done  unless  the 
society  has  headquarters  always  open,  and  it  will  not  be  enough 
in  itself  to  create  the  need  for  such  headquarters. 

Two  further  methods  of  widening  the  scope  of  an  agricultural 
society  are  developing  rapidly  in  Ireland.  The  first  is  to  increase 
the  range  of  articles  which  the  society  will  buy  for  its  members; 
the  second,  to  combine  it  with  what  is  called  an  implement  society. 

The  question  whether  or  not  farmers'  co-operative  societies 

*  War  conditions  have  caused  the  oat  crop  to  assume  abnormal  importance  and 
the  co-operative  marketing  of  grain  is  now  a  possibility  of  the  near  future. 


AGRICULTURAL  SOCIETIES  137 

should  concern  themselves  with  the  purchase  of  other  than  pro- 
fessional requirements  has  been  hotly  debated,  both  from  the 
ethical  and  from  the  practical  standpoint.  There  are  those  who 
hold  that  it  is  not  fair  to  what  is  known  with  unconscious  irony 
as  the  "legitimate  trade,"  and  these  are  many  in  Ireland;  there 
are  others  who  believe  that  it  is  not  good  business  that  the  farmer 
should  indulge  in  speculations  outside  his  own  profession — ne 
sutor  ultra  crepidam.  In  Germany  every  co-operative  society 
(including  the  Raiffeisen  banks)  holds  this  power  in  reserve,  as 
a  weapon  of  defence  against  bad  behavior  on  the  part  of  traders; 
but  it  is  not  largely  exercised  except  in  one  or  two  provinces, 
partly  for  business  reasons  and  partly  because  the  State,  which 
has  done  much  to  foster  co-operation,  looks  askance  upon  this 
form.  In  France  and  Belgium,  and  to  a  less  extent  in  Italy,  the 
tradition  of  the  "professional  union"  is  strong  enough  to  make 
excursion  into  general  trading  still  somewhat  heterodox.  But  in 
Denmark,  which  is  the  nearest  model  for  Ireland,  the  supply 
societies  which  cover  the  country  districts,  with  a  membership 
80  per  cent,  of  which  is  agricultural,  make  the  supply  of  domestic 
requirements  a  leading  feature  of  their  trade.  The  example  seems 
to  be  worth  following  in  any  country  of  small-holders.  Their 
various  economic  needs  cannot  be  separated  into  watertight 
compartments,  and  in  the  case  of  laborers,  the  general  store  is 
almost  the  only  way  of  bringing  them  in  touch  with  the  movement. 
In  Ireland,  although  the  first  society  Sir  Horace  Plunkett  ever 
organized  was  a  general  store,  the  policy  of  the  I.A.O.S.  was  to 
discourage  this  form  of  association,  or  at  least  to  leave  it  to  the 
Co-operative  Union,  and  confine  its  own  activities  to  agricultural 
business.  This  policy  worked  well  enough  so  long  as  the  cream- 
eries held  the  field,  but  with  the  appearance  of  the  supply 
societies  the  question  at  once  arose  whether  they  should  not 
purchase  all  their  members  needed.  The  development  was 
hastened  in  many  cases  by  the  action  of  local  traders  who,  when 
they  found  that  the  members  of  the  society  went  elsewhere  for 


138        RURAL  RECONSTRUCTION  IN  IRELAND 

their  fertilizers,  attempted  to  boycott  them,  and  refused  to  sell 
them  tea  and  sugar.  The  obvious  method  of  retaliation  was  for 
the  society  to  go  in  for  general  storekeeping,  and  this  was  fre- 
quently done.  The  advantages  obtained  in  attracting  more 
membership,  ensuring  continuous  activity,  bringing  in  increased 
support  to  the  federation,  and  reaching  a  poorer  class  of  people, 
appealed  strongly  to  the  I.A.O.S.,  and  such  societies  were  freely 
admitted  to  affiliation.  They  provoked  violent  opposition,  how- 
ever, on  the  part  of  the  "legitimate  trader,"  and  it  was  round 
them  that  the  most  bitter  controversy  raged.  With  the  coming 
of  the  grant  from  the  Development  Commissioners,  the  vested 
interests  were  sufficiently  powerful  to  have  it  made  a  condition 
that  societies  for  other  than  agricultural  purposes  should  not  be 
promoted  or  admitted  to  recognition.  There  is  no  bar,  however, 
on  agricultural  societies,  once  organized,  voluntarily  adding  a 
general  department,  and  this  is  frequently  done  with  most 
satisfactory  results.  Among  other  advantages  it  enables  the 
secretary  or  manager,  who  in  a  purely  agricultural  society  must 
be  content  with  a  very  small  percentage  on  sales,  to  be  compara- 
tively well  paid.  The  whole  question  of  these  stores  will  be  dealt 
with  in  subsequent  chapters. 

The  second  method  of  widening  the  scope  of  an  agricultural 
society  is  that  of  combining  it  with  an  implement  society,  which 
will  buy  collectively  the  machinery  and  implements  which  its 
members  require  for  the  improvement  of  their  tillage,  and  which 
they  are  unable  to  purchase  individually.  Under  this  system  the 
society  obtains  an  overdraft  from  the  bank  and  buys,  say,  a 
tractor  worth  £300.  This  machine  would  be  quite  beyond  the 
reach  of  an  individual  member,  but  is  of  very  great  value  to  all 
of  them.  It  is  hired  out  to  them  in  turn  for  a  certain  time  at  a 
rate  fixed  by  the  committee,  so  as  to  allow  a  margin  over  and 
above  working  expenses.  This  margin  is  accumulated  and  applied 
to  paying  off  the  overdraft.  Several  societies  have  paid  for  the 
less  expensive  machines  in  this  way  during  the  course  of  one  year, 


AGRICULTURAL  SOCIETIES  139 

after  doing  their  members'  work  at  reasonable  rates.  The  most 
obvious  difficulty  is  that  there  may  be  a  number  of  members 
wishing  to  use  the  machine  at  the  same  time;  but  in  practice  this 
has  never  yet  been  a  source  of  trouble.  The  procedure  has  been, 
when  two  people  applied  simultaneously,  to  give  precedence  to 
the  man  with  the  smaller  acreage,  or,  failing  this,  to  draw  lots 
for  the  privilege.  Societies  of  this  kind  for  the  common  ownership 
of  threshing  machines,  either  in  combination  with  agricultural 
societies  or  creameries,  or  as  separate  bodies,  have  existed  for 
many  years,  particularly  in  County  Wexford.  They  have  been 
fairly  successful,  but  there  is  always  difficulty  in  getting  the 
members'  corn  threshed  before  the  market  weakens.  The  actual 
implement  societies  are  a  very  recent  development,  brought 
about  largely  by  Mr.  Wibberley's  campaign  for  "continuous 
cropping,"  to  which  we  referred  in  a  previous  chapter  in  dis- 
cussing winter  dairying.  This  system  of  tillage  in  a  district  of 
poor  small-holders  such  as  is  found  in  the  West  of  Ireland  makes 
a  co-operative  implement  society  a  most  desirable  form  of  organ- 
ization. The  recent  demand  for  a  great  increase  in  the  area  under 
tillage  has  stimulated  the  formation  of  such  societies,  which  in 
many  cases  can  be  shown  to  have  caused  an  improvement  of  as 
much  as  100  per  cent,  in  the  tilled  area  within  the  sphere  of  their 
operations.  The  chief  difficulty  which  has  to  be  faced  is  that  of 
providing  persons  with  expert  knowledge  of  machines,  not  only 
to  organize  the  societies,  but  to  keep  in  touch  with  them  after- 
wards, in  order  to  see  that  the  implements  are  properly  treated. 
This  latter  function  should  be  performed  by  the  field  workers 
of  the  Department  of  Agriculture;  but  in  Ireland  no  special 
training  in  such  matters  has  been  available,  and  the  lack  of 
harmony  between  the  Department  and  the  I.A.O.S.  has  been  a 
stumbling-block  to  progress. 

It  will  be  seen  that  an  agricultural  supply  society  is  not  in  itself 
a  very  definite  form  of  association.  The  business  of  buying  agri- 
cultural requirements  may  easily  be  taken  up  by  a  creamery,  or 


i4o       RURAL  RECONSTRUCTION  IN  IRELAND 

if  the  law  permits,  as  in  Germany,  by  a  credit  society.  On  the 
other  hand,  a  society  started  for  this  purpose  may  expand  into 
other  occupations,  or  it  may  sink  into  the  position  of  only  taking 
on  corporate  shape  once  or  twice  a  year,  in  which  case  an  informal 
association  which  would  automatically  dissolve  when  the  trans- 
action was  completed  would  be  equally  satisfactory  but  for  the 
problem  of  credit. 

The  economic  results  achieved  by  agricultural  societies  in  Ire- 
land are  not  very  easily  distinguished.  We  can  only  point  to  a 
continuous  improvement  in  the  conditions  of  sale  of  the  principal 
articles  in  which  these  societies  deal.  Prices  have  been  lowered, 
rings  have  been  broken,  and,  what  is  perhaps  more  important, 
guarantees  of  quality  have  been  made  a  sine  qua  non. 

These  things  have  been  accomplished,  not  so  much  perhaps 
by  the  individual  action  of  local  societies,  as  by  their  joint  action 
through  the  medium  of  their  trade  federation.  We  have  already 
stated  that  ten  agricultural  societies  were  organized  during  the 
first  year  in  which  this  idea  was  introduced,  and  that  of  these 
five  were  situated  close  together,  and  did  their  buying  in  common 
on  most  advantageous  terms.  From  this  venture  arose  the  first 
pitched  battle  with  the  organized  middlemen,  and  also  the  first 
effort  at  federation  for  trade  purposes.  It  is  interesting  to  turn 
to  the  early  numbers  of  the  Irish  Homestead  and  see  the  progress 
of  the  battle.  In  March,  1895,  we  nnd  a  report  of  the  meeting  of 
the  Mercantile  Traders'  Association,  Thurles  Branch  (the  dis- 
trict in  which  the  five  societies  lay),  at  which  the  following 
resolutions  were  passed: 

"(i)  That  the  traders  at  this  meeting  assembled  form  them- 
selves into  an  association  to  be  called  the  'Mercantile  Traders' 
Association.' 

"(2)  That  we  call  upon  the  mercantile  traders  throughout 
Ireland  to  form  branches  of  this  association  in  all  the  principal 
towns. 


AGRICULTURAL  SOCIETIES  141 

"(3)  That  we  invite  the  co-operation  of  all  traders  in  towns 
and  country  districts  to  support  us,  and  that  every  trader  in  this 
association  do  withdraw  orders  and  close  accounts  with  any 
manufacturer  or  producer  who  tenders  in  future  or  supplies, 
directly  or  indirectly,  co-operative  societies." 

The  immediate  answer  was  the  formation  of  another  society 
near  Thurles  in  the  course  of  the  following  week.  At  the  same 
time  the  Irish  Co-operative  Agency  Society  took  up  the  work  of 
acting  as  a  wholesale  agency  for  the  societies,  and  some  of  the 
manure  manufacturers  proved  quite  ready  to  tender  for  contracts, 
in  spite  of  pious  resolutions.  The  result  was  that  in  1896  the 
Manure  Manufacturers7  Association,  unable  to  hold  its  members 
together,  collapsed  entirely,  and  prices  were  reduced  fully  25 
per  cent.,  not  only  to  co-operative  societies,  but  to  all  the  farmers 
in  the  country. 

In  1897  the  disastrous  attempt  to  sell  barley,  combined  with 
inadequate  organization  of  the  agricultural  supply  business, 
brought  serious  losses  to  the  I.C.A.S.,  and  it  was  decided  to  give 
over  the  agricultural  business  to  a  new  federation  known  as  the 
Irish  Co-operative  Agricultural  Agency.  After  a  year's  work  as 
a  mere  agency  on  a  cash  basis,  this  body  developed  in  1898  into 
the  Irish  Agricultural  Wholesale  Society,  Ltd.,  and  became  a 
true  co-operative  trade  federation. 

Its  constitution  is  similar  to  that  of  local  societies  organized 
under  the  Industrial  and  Provident  Societies  Act,  but  it  has  the 
exceptional  feature  of  issuing  preference  shares.  These  shares 
are  of  the  value  of  £5  each,  and  are  issued  to  individuals  only; 
no  person  is  allowed  to  take  less  than  ten,  and  they  must  be  fully 
paid  up  on  allotment.  The  ordinary  shares  are  tenable  only  by 
registered  co-operative  societies,  which  must  take  one  share  for 
each  member.  The  value  of  the  shares  is  f  i,  of  which  is.  is  pay- 
able on  allotment,  and  the  remainder  can  only  be  called  if  the 


i42        RURAL  RECONSTRUCTION  IN  IRELAND 

society  goes  into  liquidation.  Shares  are  transferable  only,  and 
bear  the  usual  5  per  cent,  maximum  interest. 

The  directors  are  elected  in  part  by  the  affiliated  societies,  and 
in  part  by  the  preference  shareholders,  on  a  democratic  basis. 
Each  society  has  one  vote  for  every  100  members,  and  six  out 
of  the  ten  directors  must  be  representatives  of  the  ordinary 
shareholders,  and  nominated  by  them.  The  preference  share- 
holders nominate  four  of  their  own  number  to  fill  the  other  four 
places.  The  chairman  is  elected  by  the  directors,  but  must  be  a 
representative  of  the  ordinary  shareholders.  In  order  further  to 
guard  the  rights  of  the  ordinary  shareholders,  it  is  provided  that 
"the  votes  of  both  preference  and  ordinary  shareholders  shall  be 
recorded  collectively  in  the  election  of  the  four  directors  repre- 
senting preference  shareholders,"  while  "the  election  of  the  six 
directors  representing  ordinary  shareholders  shall  be  decided  by 
the  votes  of  the  ordinary  shareholders  alone."  There  is  obviously 
no  danger  that  individuals  will  invade  the  society  in  such  a  way 
as  to  obtain  harmful  control  of  it — in  fact,  the  restriction  of 
allotment  to  those  who  are  willing  to  take  up  ten  fully  paid 
shares,  together  with  the  limitation  of  voting  privileges,  ensures 
that  only  persons  who  genuinely  wish  to  help  the  movement  by 
investing  capital  in  it  are  likely  to  seek  admission. 

The  history  of  the  I.A.W.S.  has  been  one  of  continuous 
progress,  in  the  face  of  very  severe  difficulties  imposed  upon  it 
almost  as  much  from  within  the  movement  itself  as  from  outside. 
Its  objects  are  those  common  to  all  co-operative  trade  federa- 
tions— to  supply  the  affiliated  societies  with  goods  of  guaranteed 
quality  for  re-sale  to  their  members  at  as  low  rates  as  possible, 
and  also  to  market  the  produce  of  agricultural  societies.  At  the 
very  beginning  of  its  career  the  Wholesale  found  itself  face  to 
face  with  powerful  and  extremely  hostile  rings  of  manufacturers, 
particularly  in  the  fertilizer  and  machinery  trades,  so  that  certain 
supplies  had  to  be  imported  even  from  America.  By  persistent 
effort  these  rings  were  broken,  and  the  I.A.W.S.  is  now  able  to 


AGRICULTURAL  SOCIETIES  143 

make  the  proud  boast  that  it  has  been  successful  in  ensuring  to 
the  farmer  a  reduction  of  no  less  than  50  per  cent,  in  the  price 
of  guaranteed  manures.  Something  like  a  revolution  has  been 
caused  in  the  seed  trade  of  the  country  by  the  same  agency. 
Before  the  advent  of  this  society,  seeds  were  universally  sold 
without  any  guarantee  either  of  purity  or  of  germinating  quality, 
and  as  a  consequence  the  farmer  was  continually  subjected  to 
severe  disappointments.  The  I.A.W.S.  made  arrangements  with 
a  seed-testing  station  in  Switzerland,  which  enabled  it  to  have 
all  seeds  sold  tested  and  certified,  and  thus  compelled  other 
merchants  to  adopt  the  same  practice. 

The  main  trade  of  the  society  is  in  these  directions  of  fertilizers, 
seeds  and  machinery,  as  is  natural  in  what  is  primarily  a  federa- 
tion of  agricultural  societies.  It  has,  however,  assumed  a  position 
which  gives  it  a  far  greater  interest  for  those  who  look  at  it  from 
the  standpoint  of  general  co-operative  organization.  It  has  become 
the  only  apparent  link  between  the  two  classes  of  co-operative 
societies;  those  whose  members  are  producers,  co-operating  to 
get  good  prices  for  their  produce,  and  those  which  combine  con- 
sumers for  the  purpose  of  effecting  a  saving  in  purchase.  The 
reconciliation  of  these  two  apparently  conflicting  interests  has 
always  been  one  of  the  difficulties  of  the  co-operative  movement. 
It  has  been  especially  difficult  in  Ireland,  owing  to  the  restrictions 
put  upon  the  I.A.O.S.  by  the  Development  Commissioners,  which 
prevent  that  body  from  organizing  anything  except  the  producing 
classes.  These  restrictions,  however,  do  not  apply  to  the  I.A.W.S., 
which  is  purely  a  trading  body,  and  receives  no  subsidy  from  the 
Government. 

So  long  as  the  I.A.O.S.  is  debarred  from  acting  as  an  advisory 
body  both  for  producers  and  consumers,  their  interests  will  con- 
tinue to  be  divergent,  with  the  harmful  effects  already  seen  in 
England,  unless  some  material  bond  can  be  found.  This  bond  can 
only  be  provided  by  the  existence  of  a  joint  wholesale  society, 
owned  by  co-operative  societies  of  both  kinds,  buying  from  one 


144        RURAL  RECONSTRUCTION  IN  IRELAND 

and  selling  to  the  other.  If  properly  handled,  such  a  body  would 
go  far  to  remove  friction  and  to  benefit  both  parties,  and  success- 
ful results  in  this  direction  have  been  accomplished  both  in  Den- 
mark and  in  Hungary.  In  Ireland,  as  we  have  seen,  the  wholesale 
agency  arose  in  the  first  place  as  a  federation  of  agricultural 
societies,  and  this  fact  is  reflected  in  its  name.  It  was  not  long, 
however,  before  these  societies  began  to  be  attracted  or  compelled 
to  take  up  a  general  store  policy  in  certain  districts,  and  they 
naturally  looked  to  the  federation  to  supply  their  requirements. 
Thus  a  grocery  and  a  hardware  department  came  to  be  added  to 
the  activities  of  the  I.A.W.S.  Meanwhile,  a  certain  number  of  dis- 
tributive societies  after  the  English  model  had  been  organized, 
particularly  in  the  industrial  centres  of  Ulster.  These  societies 
would  naturally  depend  to  a  great  extent  on  the  Co-operative 
Wholesale  Societies  of  Manchester  and  Glasgow,  but  they  were 
not  sufficiently  numerous  to  lead  to  a  branch  of  either  of  these 
federations  being  established  in  Ireland.  The  Irish  movement 
owes  it  to  the  foresight  of  the  directors  of  the  I.A.W.S.,  and  more 
particularly  to  Mr.  Barbour,  the  present  chairman,  that  steps 
were  quickly  taken  to  attract  these  societies  into  the  federation. 
If  this  object  is  fully  achieved,  Ireland  will  be  able  to  claim  that 
she  has  advanced  further  towards  solving  the  problem  of  conflict 
within  the  movement  than  almost  any  other  country.  Some  of 
the  difficulties  in  the  way  of  such  a  conclusion  will  be  discussed 
in  another  chapter. 

One  of  them  merits  brief  consideration  here.  There  is  always 
a  great  temptation  for  agricultural  societies  to  sell  direct  to  the 
highest  bidder,  and  if  they  are  favorably  situated  to  the  market 
they  will  regard  any  federation  as  being  an  unnecessary  middle- 
man. Thus,  an  agricultural  society  near  Belfast  with  potatoes  to 
sell  would  be  more  likely  to  sell  them  to  the  Belfast  society  of 
consumers  than  to  the  I.A.W.S.,  which  must  take  some  profit  out 
of  the  transaction.  This  particularly  applies  to  the  creameries, 
which,  as  we  pointed  out,  are  accustomed  to  sell  their  butter 


AGRICULTURAL  SOCIETIES  145 

without  reference  to  any  other  body,  and  in  many  cases  choose 
their  managers  mainly  on  account  of  their  capacities  as  salesmen. 
The  I.A.W.S.  has  tried  the  experiment  of  acting  as  a  commission 
agent  for  these  creameries,  just  as  the  Agency  did.  Theoretically, 
this  was  the  proper  course  for  it  to  pursue,  but  in  practice  it  has 
been  found  that  it  led  to  the  usual  dumping  of  bad  butter,  or 
to  the  custom  only  of  creameries  whose  managers  were  not  suffi- 
ciently trained  as  salesmen.  This  was  bad  for  the  I.A.W.S.,  and 
was  further  aggravated  by  the  fact  that  the  more  successful 
creamery  managers  are  hostile  to  this  department,  because  they 
believe  that  it  spoils  their  market  and  bolsters  up  inefficient 
creameries. 

The  recent  demand  of  the  troops  in  Ireland  for  large  quantities 
of  supplies  has,  however,  given  the  federation  an  opportunity  of 
disposing  of  a  considerable  amount  of  agricultural  produce  on 
behalf  of  the  societies,  and  also  of  individual  members  thereof, 
and  the  directors  have  been  quick  to  make  use  of  the  occasion. 
The  military  authorities  find  this  a  cheap  and  efficient  source  of 
supply,  and  the  farmers  and  the  societies  also  have  profited,  so 
this  may  be  claimed  as  a  good  example  of  the  services  which  a 
co-operative  federation  is  able  to  render  both  to  its  members  and 
to  the  nation.  It  may  be  hoped  that  the  precedent  will  make  the 
federated  societies  and  also  the  authorities  appreciate  more  fully 
the  advantages  of  such  a  body  as  the  I.A.W.S. 

The  main  difficulty  by  which  this  federation,  like  most  others 
of  the  same  kind,  has  been  beset,  is  the  lack  of  sufficient  capital 
to  carry  on  the  business  effectively.  The  trade  turnover  has 
increased  with  remarkable  rapidity,  but  the  paid-up  capital, 
always  inadequate,  has  not  by  any  means  kept  pace  with  this 
increase,  nor  has  it  been  found  possible  to  induce  the  societies 
to  do  business  on  anything  like  a  cash  basis. 

In  1915,  with  a  turnover  of  £375,000,  the  I.A.W.S.  was  only 
able  to  show  a  paid-up  share  capital  of  £12,000,  of  which  £7000 
was  derived  from  preference  shares,  and  only  £5000  from  the 


i46        RURAL  RECONSTRUCTION  IN  IRELAND 

societies.  The  remainder  of  the  capital  was  derived  from  a  guar- 
antee given  by  individual  well-wishers,  and  from  the  accumulated 
reserve  fund  of  £5000,  in  addition  to  the  £25,000  or  so  held  as 
deposits  in  the  banking  department,  which  is  able  to  offer  attrac- 
tive terms  to  societies  and  individuals.  Even  by  calling  upon  all 
these  resources,  the  society  is  always  in  a  difficulty  for  sufficient 
liquid  capital  to  handle  its  business  on  the  most  economical  lines, 
and  there  is  obviously  little  or  no  room  for  fresh  developments. 
When  it  is  further  realized  that  the  outstanding  debts  run  as  high 
as  £35,000,  a  large  part  of  which  represents  accounts  several 
months  in  arrears,  it  may  be  seen  that  the  federated  societies 
are  making  a  very  heavy  demand  on  the  wholesale  body,  and 
hardly  treating  it  in  a  true  co-operative  spirit. 

As  we  have  said,  the  societies  which  are  ordinary  shareholders 
in  the  federation  are  only  obliged  to  pay  up  is.  per  share  on 
allotment,  and  the  remainder  cannot  be  called  unless  the  I.A.W.S. 
goes  into  liquidation.  Taken  in  conjunction  with  the  fact  that 
the  shares  are  transferable  only,  this  rule  makes  societies  regard 
the  payments  which  they  make  on  their  shares  simply  as  a  sub- 
scription to  the  Wholesale,  enabling  them  to  trade  with  it.  They 
frequently  neglect  to  increase  their  payments  voluntarily  year 
by  year,  as  they  know  that  they  cannot  be  compelled  to  do  so,  and 
they  regard  the  money  so  locked  up  as  being  practically  lost  to 
them.  The  position  would  not  bear  so  hardly  on  the  I.A.W.S.  if 
these  societies  could  be  induced  to  pay  their  accounts  quickly; 
but,  as  we  have  pointed  out,  the  members  expect  long  credit 
from  their  societies,  and  the  burden  is,  of  course,  transferred  to 
the  federation,  thus  greatly  aggravating  the  shortage  of  capital. 
Meanwhile,  the  societies,  to  a  large  extent,  continue  to  look  upon 
their  own  federation  as  if  it  were  an  outside  trading  body,  and 
frequently  do  a  considerable  amount  of  their  trade  elsewhere, 
sometimes  even  using  the  I.A.W.S.  quotations  as  a  lever,  while 
they  are  quick  to  protest  at  any  mistake  which  may  be  made. 

If  we  dwell  rather  on  the  gloomy  side  of  the  picture,  it  is 


AGRICULTURAL  SOCIETIES  147 

chiefly  in  order  to  throw  into  sharper  relief  the  splendid  work 
which  the  Wholesale  Society  has  accomplished  in  the  face  of  all 
its  difficulties.  Its  trade  is  constantly  expanding,  and  new  depart- 
ments being  undertaken,  and  even  societies  which  grumble  most 
must  realize,  if  they  face  the  facts,  that  they  would  have  been 
very  badly  .off  without  the  efforts  of  the  federation.  These  diffi- 
culties can  and  will  be  met  by  a  sustained  educational  campaign 
in  which  the  societies  must  be  shown  their  duties  to  the  Whole- 
sale, and  the  advantages  they  derive  from  it.  A  great  step  in  this 
direction  has  already  been  taken  by  the  directors  in  arranging 
for  monthly  meetings  of  managers  and  secretaries  of  co-operative 
societies  on  the  central  premises,  when  they  are  able  to  see  and 
hear  about  all  the  developments  and  difficulties  of  the  work.* 

*  See  App.  IV.  for  statistics  illustrating  the  development  of  the  IA.W.S. 


CHAPTER  IX 
THE  CREDIT  SOCIETIES 

IN  the  previous  chapter  some  account  was  given  of  the  activities 
of  the  "gombeen-man"  in  rural  Ireland,  and  the  impetus  thus 
afforded  to  the  formation  of  agricultural  societies.  Plainly,  it 
was  not  sufficient — at  any  rate  in  the  more  backward  districts — 
to  set  up  such  societies.  One  of  the  chief  reasons  which  drove  the 
people  into  the  hands  of  the  "gombeen-man"  was  that  he  alone 
provided  them  with  a  source  of  credit,  either  by  actually  lending 
them  money,  or  more  frequently  by  charging  the  goods  against 
them  for  an  indefinite  period.  The  agricultural  society  would 
afford  little  relief  for  such  a  state  of  things,  and  a  large  number 
of  the  people  it  was  intended  to  benefit  would  have  to  continue 
dealing  with  the  local  "gombeen-man"  on  account  of  their  past 
indebtedness  to  him  and  the  necessity  of  borrowing  further  in 
the  future. 

The  joint-stock  banks  had  branches  at  infrequent  intervals 
throughout  the  country,  usually  in  the  market  towns,  and  open 
perhaps  only  one  or  two  days  in  the  week.  The  borrower  had 
to  take  with  him  two  sureties  if  he  wished  to  get  money  from  this 
source,  and  the  expense  involved,  as  well  as  the  necessity  of  dis- 
cussing his  affairs  with  the  bank  manager,  made  the  undertaking 
practically  impossible.  Nor  is  it  likely  that  the  banks  on  their 
side  would  show  any  eagerness  to  attract  such  business;  the 
amounts  involved  would,  as  a  rule,  be  too  small  even  to  repay 
the  book-keeping  of  the  transaction,  much  less  the  tedious  and 
very  difficult  task  of  making  researches  into  the  credit-worthiness 
of  each  borrower.  Moreover,  it  is  no  reflection  on  the  banks  to 

148 


THE  CREDIT  SOCIETIES  149 

say  that  their  best  friends  were  in  most  cases  the  traders  and 
publicans  of  the  towns  and  the  large  depositing  farmers.  The 
former  class  would,  as  a  rule,  be  hostile,  and  the  latter  more  or 
less  indifferent  to  the  needs  of  the  poorer  people,  and  where  com- 
petition between  one  bank  and  another  was  keen,  and  the  town 
hardly  sufficed  to  support  more  than  one,  almost  any  bank 
manager  would  be  bound  to  be  swayed  by  such  considerations. 
It  must  also  be  remembered  that  the  present  extension  of  the 
banking  system  throughout  the  country  is  comparatively  recent. 
In  1890  there  were  only  569  branches  in  Ireland,  as  against  819 
in  1910.  Even  now  we  find  that:  "There  are  in  all  Ireland  only 
242  centres  where  a  permanent  branch  bank  is  established. 
There  is,  therefore,  only  one  such  centre  to  every  18,000  persons. 
If  the  sub-branches,  which  are  open  only  on  certain  days,  be 
also  included,  there  is  one  such  banking  centre  for  every  9000 
persons."*  And  again:  "We  have  had  brought  before  us  instances 
where  persons,  in  order  to  reach  the  nearest  branch  bank,  would 
have  to  travel  forty  miles.  This  is  doubtless  an  extreme  case,  but 
it  is  not  at  all  unusual  for  farmers  to  have  to  make  a  journey  of 
ten  or  fifteen  miles  to  the  nearest  bank." 

Other  methods  of  obtaining  loans  were  by  resorting  to  money- 
lenders, to  "trust  auctions,"  and  to  the  Loan  Fund  Board  Socie- 
ties. All  of  these  are  dealt  with  at  length  in  the  Report  already 
quoted,  but  the  facts  about  them  may  be  summarized  here. 

The  money-lender  is  distinguished  from  the  "gombeen-man" 
by  the  fact  that  he  does  not  combine  shopkeeping,  or  any  similar 
occupation,  with  the  practice  of  usury.  His  advertisements  fill  the 
columns  of  the  newspapers  and  astonish  the  reader  by  their 
dazzling  visions  of  philanthropy  and  their  careless  indifference 
as  to  the  amount  of  money  to  be  lent,  or  the  rate  of  interest  to 
be  charged.  His  great  power  of  attraction  lies  in  the  fact  of  the 
secrecy  offered.  The  rural  population  of  Ireland  have  a  very 

*  "Report  of  Departmental  Committee  on  Agricultural  Credit  in  Ireland,  1914," 
C.D.  7375,  p.  19. 


150       RURAL  RECONSTRUCTION  IN  IRELAND 

strong  objection  to  allowing  their  neighbors  to  know  that  they 
are  borrowing  money,  and  this  can  be  avoided  best  by  dealing 
with  the  money-lender.  The  type  is  a  familiar  one  in  all  countries, 
but  the  conditions  of  Irish  life  are  particularly  favorable  to  its 
growth  and,  while  the  "gombeen-man"  is  gradually  disappearing, 
the  money-lenders  tend  to  multiply. 

The  "trust  auction"  system,  which  prevails  mainly  in  the 
northern  counties  (having  apparently  first  appeared  in  Co. 
Donegal  in  1898),  represents  one  of  the  most  ingenious  and  also 
most  ruinous  methods  of  obtaining  cash  ever  practised.  The  worst 
type,  in  which  the  sale  is  entirely  fictitious,  is  thus  described: 

"A  farmer  in  need  of,  say,  £10  ready  cash,  with  little  prospect 
of  obtaining  the  same  from  a  bank  or  a  friendly  neighbor,  brings 
in  one  of  his  cows  to  the  auction.  The  animal  is  put  up  for  sale, 
and  is  bought  by  a  friend  (often  by  a  son  or  brother)  of  the 
seller.  In  many  cases  friends  of  the  latter,  by  their  bidding,  run 
the  price  up  to  a  much  higher  figure  than  the  animal  is  worth. 
A  bill  at  three,  four,  or  six  months,  signed  by  one  or  two  sureties, 
is  given  by  the  purchaser  to  the  auctioneer,  who  usually  dis- 
counts it  in  a  joint-stock  bank,  and  pays  cash,  less  the  discount, 
to  the  seller,  charging  the  usual  5  per  cent,  auction  fees.  The 
seller  of  the  cow  then  brings  home  the  money,  the  obtaining  of 
which  was  his  sole  object  in  going  to  the  auction,  while  the  nomi- 
nal purchaser  drives  the  cow  back  to  the  field  or  byre  from  which 
she  came.  The  proceeds  of  the  transaction  are,  in  some  cases, 
divided  between  the  parties.  One  witness  told  us  of  a  case  where 
a  farmer  raised  £10  on  a  cow  by  thus  selling  her  to  his  son  at  an 
auction.  Next  day  the  same  cow  was  sold  by  the  son  and  bought 
by  the  father,  so  that  £20  was  raised  on  the  one  animal  in  two 
days.  But  other  animals  have,  we  are  informed,  superseded  this 
record  by  bringing  in  £70  or  £80  to  the  owner  in  a  short  space  of 
time,  through  peregrinations  from  one  auction  to  another." 


THE  CREDIT  SOCIETIES  151 

The  results  of  such  a  system,  both  to  the  farmer  and  the 
auctioneer,  must  necessarily  be  disastrous  in  the  long  run.  The 
above  is  a  somewhat  exaggerated  form  of  trust  auction;  in  the 
majority  of  cases  the  animal  really  changes  hands,  but  it  is  sold 
by  the  purchaser  at  the  next  fair  for  a  sum  considerably  less 
than  he  gave  for  it.  He  gives  his  note  for  the  purchase,  and  it  is 
discounted  by  the  auctioneer,  while  the  purchaser  gets  his  cash 
out  of  the  sale,  paying  5  per  cent,  to  the  auctioneer,  losing  about 
10  per  cent,  on  the  price,  and  probably  having  to  renew  the  bill 
subsequently.  One  of  the  many  undesirable  features  about  this 
method  is  that  the  man  in  need  of  money  is  determined  to  buy 
at  all  costs,  so  that  the  auctions  afford  an  opportunity  to  cattle 
dealers  to  dispose  of  inferior  beasts  at  inflated  prices.  The 
practice  also  makes  it  possible  for  the  less  reputable  firms  of 
auctioneers  to  carry  on  every  form  of  usury  and  extortion  under 
the  guise  of  their  profession.  Evidence  was  given  that  even  honest 
and  industrious  farmers  were  frequently  to  be  found  at  these 
auctions,  and  the  system  is  occasionally  extended  to  land  and 
crops  as  well  as  cattle,  with  almost  equally  injurious  results. 

The  Loan  Fund  Board  system,  the  only  remaining  source  of 
rural  credit  besides  the  co-operative  credit  societies,  represents 
the  moribund  survival  of  some  very  early  charitable  efforts.  Dean 
Swift  seems  to  have  inaugurated  it  by  handing  over  £500  to  be 
loaned  by  trustees  to  Dublin  artisans.  Various  benevolent  persons, 
and  notably  the  Musical  Society  of  Ireland,  followed  this  example, 
and  the  societies  thus  formed  were  partially  protected  by  the 
Irish  Parliament.  At  the  beginning  of  the  nineteenth  century  the 
moneys  available  were  increased  by  the  establishment  of  asso- 
ciations in  London  to  improve  the  condition  of  the  Irish  peas- 
antry, known  as  the  "Irish  Reproductive  Loan  Funds."  Laxity 
and  dishonesty  soon  crept  in,  and  with  the  dissolution  of  the 
Musical  Society,  Parliament  found  it  necessary  to  interfere.  A 
series  of  Acts  resulted  in  the  establishment  in  1836  of  an  Irish 


152        RURAL  RECONSTRUCTION  IN  IRELAND 

Loan  Fund  Board  to  supervise  the  system,  the  members  being 
appointed  by  the  Lord-Lieutenant. 

No  loans  of  over  £10  were  permitted,  and  interest  at  the  rate 
of  12  per  cent,  was  legalized.  A  further  Act  was  necessary  in  1843, 
in  which  the  rate  was  lowered,  but  no  effective  check  seems  to 
have  been  found  on  irregularities  and  abuses.  Since  that  time  the 
system  has  been  the  subject  of  various  commissions  and  inquiries, 
the  universal  testimony  being  that  the  central  board,  owing  to  its 
lack  of  continuity  and  effective  powers,  was  quite  unable  to  con- 
trol the  system,  and  that  the  local  societies  were  badly  and  often 
dishonestly  managed.  The  income  of  the  Board,  which  was  mainly 
derived  from  the  sale  of  forms  and  documents,  diminished 
rapidly,  and  investments  had  to  be  sacrificed,  while  the  spread 
of  branch  banks  did  away  with  the  usefulness  of  many  of  the 
societies. 

The  history  of  the  system  since  the  inquiry  of  1896  has  been 
very  fully  set  forth  in  the  Report  alluded  to,  and  need  not  be 
reproduced  here.  The  conclusions  reached  are  that  in  practi- 
cally every  respect  the  societies  are  unsatisfactory,  particularly 
because  of  a  widespread  delusion  to  the  effect  that  Government 
stands  behind  them.  There  is  in  fact  "a  total  lack  of  security  for 
debenture-holders  and  depositors  save  in  so  far  as  this  is  supplied 
by  the  good  management  of  a  society,  by  any  accumulated 
reserve,  and  by  any  guarantee  furnished  by  the  treasurer  and 
clerk.  .  .  .  The  imagined  Government  security  was  a  main  in- 
fluence in  attracting  depositors  in  former  years,  until  disillusion- 
ment came."  This  in  itself  is  sufficient  condemnation  of  a  system 
which  in  any  case  was  never  intended  to  be  spread  throughout 
the  rural  districts,  but  simply  to  afford  temporary  relief  to 
workers  in  the  great  industrial  centres.  The  final  recommendation 
of  the  Departmental  Committee  on  the  subject  of  these  societies 
is  as  follows: 

"Seeing  that  in  every  respect  co-operative  credit  societies  are 


THE  CREDIT  SOCIETIES  153 

more  suitable  agencies  of  rural  credit  than  Loan  Fund  societies 
.  .  .  legislation  should  .  .  .  provide  for  the  utilization  of  the 
funds  of  the  latter  in  the  establishment  of  credit  societies  in  the 
same  district  or  county.  Debenture-holders  should,  as  far  as 
possible,  be  paid  off." 

Such  were  the  available  sources  of  credit  for  small  farmers  in 
the  early  days  of  the  co-operative  movement.  It  is  not  surprising 
that  the  pioneers  soon  began  to  look  for  a  remedy.  A  model  was 
found  in  the  systems  of  popular  credit  which  had  already  been 
established  in  Germany  with  striking  success.  Nothing  was 
actually  done  until  after  the  establishment  of  the  I.A.O.S.  in 
1894.  By  this  time  a  good  number  of  creameries  and  agricultural 
societies  were  already  in  existence,  and  the  need  for  credit 
facilities  could  be  easily  seen.  The  committee  therefore  decided 
to  call  in  expert  assistance,  and  was  fortunate  enough  to  obtain 
that  of  Mr.  H.  W.  Wolff,  then  (and  still)  acknowledged  as  the 
leading  authority  on  the  subject.  He  visited  Dublin  in  1894  and 
gave  a  full  explanation  of  the  various  systems  of  co-operative 
credit  practised  on  the  Continent.  Later  in  the  same  year  a  visit 
was  paid  by  Mr.  R.  A.  Yerburgh,  M.P.,  and  Mr.  Thomas 
Farrow,  president  and  secretary  respectively  of  the  English 
Agricultural  Banks  Association,  and  the  former  delivered  a 
lecture  on  the  subject  before  the  Royal  Dublin  Society.  As  a 
result  of  these  visits  it  was  decided  to  make  an  experiment  at 
Doneraile,  Co.  Cork,  and  after  considerable  delays,  caused  by 
difficulties  in  drafting  rules,  a  co-operative  credit  society  started 
operations  there  early  in  the  year  1895. 

This  society  was  modeled  upon  the  German  Raiffeisen  system. 
That  system  is  the  basis  of  rural  organization  in  Germany,  and 
the  type  has  remained  more  or  less  fixed.  The  members  under- 
take an  unlimited  liability,  jointly  and  severally,  for  the  obliga- 
tions of  the  society;  there  is  no  share  capital,  and  only  a  small 
entrance  fee.  The  essential  features  are  that  membership  shall 


154        RURAL  RECONSTRUCTION  IN  IRELAND 

be  limited  to  so  small  an  area  that  it  is  possible  for  the  committee 
to  judge  the  character  of  the  applicants,  and  that  the  granting 
of  loans  shall  be  largely  conditioned  by  this  judgment.  Loans 
are  made  only  for  reproductive  purposes,  such  as  the  holding 
over  of  stock,  the  purchase  of  breeding  animals,  etc.,  and  not 
for  anything  of  a  wasteful  nature.  The  sums  lent  are  very  small 
as  a  rule,  ranging  from  £i  to  £50,  and  the  period  of  the  loan  is 
from  three  months  to  a  year,  only  exceeding  this  time  in  very 
exceptional  cases.  The  rate  of  interest  charged  varies  between 
5  per  cent,  and  7  per  cent.  There  is  a  tendency  to  try  to  keep 
it  down  to  the  lowest  figure,  which  too  often  brings  a  loss  on 
the  year's  working.  The  I.A.O.S.  recommends  6%  per  cent.,  or 
i  J^d.  on  a  pound  per  month,  assuming  that  the  capital  is  obtained 
at  4  per  cent. 

The  sources  of  capital  are  three  in  all,  namely,  members' 
deposits,  loans  from  Government  Departments,  and  other  loans, 
mainly  bank  overdrafts.  The  ideal  method  of  capitalizing  the 
societies  is,  of  course,  by  means  of  members'  deposits,  thus 
ensuring  that  the  savings  of  the  district  should  be  reinvested  in 
that  district.  The  Raiffeisen  banks  in  Germany  are  called  thrift 
and  credit  banks  (Spar-und  Darlehenskassen) ,  and  the  emphasis 
is  distinctly  on  the  thrift.  In  fact,  these  societies  attract  almost 
more  deposits  than  they  can  safely  use,  and  during  the  war  they 
have  been  able  to  make  very  large  contributions  to  the  war  loans. 
In  Ireland,  thrift  has  been  omitted,  not  only  from  the  name,  but 
in  too  many  cases  from  the  practice  of  these  societies.  It  is  true 
that  the  total  amount  of  deposits  has  increased  from  year  to  year, 
but  this  increase  has  been  almost  entirely  achieved  by  a  few 
successful  societies.  The  Irish  agriculturist  is  abnormally  cautious 
as  to  the  security  behind  any  institution  with  which  he  leaves 
money,  and  he  only  recognizes  two  chief  forms  of  security, 
namely,  Government  backing,  or  the  presence  of  a  president  or 
secretary  in  whom  he  has  complete  confidence.  Societies  which 
are  fortunate  enough  to  possess  such  an  official  are  able  to  com- 


THE  CREDIT  SOCIETIES  155 

mand  a  considerable  amount  of  local  deposits,  the  others  suffer 
by  comparison  with  the  Post  Office  Savings  Banks,  with  their 
Government  guarantee,  and  with  the  joint-stock  banks  which, 
like  the  Loan  Fund  Board  societies,  are  often  vaguely  supposed 
to  have  the  Government  behind  them.  There  need  not  neces- 
sarily be  any  reason  for  supposing  that  the  secretaries  of  the 
societies  which  do  not  get  deposits  are  in  any  way  less  responsible 
than  those  of  the  successful  ones.  They  simply  lack  the  valuable 
capacity  for  inspiring  the  same  confidence  in  the  people.  The 
figures  for  1911  show  that  out  of  a  total  capital  of  £55,000  the 
deposits  totaled  £27,290.  This  amount  was  divided  among  ninety- 
eight  societies,  and  of  these  fourteen  held  between  them  no  less 
than  £14,154,  one  having  over  £2000.  For  purposes  of  compari- 
son, it  may  be  remarked  that  in  1910  deposits  in  German  rural 
credit  societies  averaged  £6375  per  society,  and  £64  per  member. 
We  shall  return  to  this  point  in  further  detail;  meanwhile,  we  may 
consider  the  other  sources  from  which  the  banks  get  their  capital. 
In  the  early  days  of  the  movement  it  was  generally  held  that 
co-operative  credit  societies,  as  distinct  from  those  engaged  in 
any  form  of  trade,  might  reasonably  receive  a  certain  amount 
of  direct  aid  from  the  State.  This  principle  was  recognized  before 
the  foundation  of  the  Department  of  Agriculture  by  the  Con- 
gested Districts  Board,  which  saw  in  these  societies  a  very  proper 
method  of  alleviating  distress  in  the  districts  under  its  charge. 
The  Board  was  aware  of  the  necessarily  unremunerative  nature 
of  the  work  done  in  these  backward  parts  of  the  country,  and 
of  the  difficulties  of  obtaining  capital.  Accordingly  it  contributed 
to  the  expenses  of  organization,  and  in  1898  agreed  to  furnish 
loans  not  exceeding  £100  each  at  the  low  rate  of  3  per  cent,  to 
form  the  nucleus  of  capital  for  societies  within  its  jurisdiction. 
This  example  was  found  worthy  of  imitation  by  the  Department 
of  Agriculture  in  the  first  year  of  its  work,  and  in  1901  the  loans 
outstanding  from  it  were  £1350,  divided  among  eighteen  societies. 
In  the  same  year,  the  Congested  Districts  Board  had  lent  £2980 


1 56        RURAL  RECONSTRUCTION  IN  IRELAND 

to  thirty-six  societies.  The  Department's  report  for  1904-05  con- 
tains the  following  passage: 

"The  Department  advance  loans  varying  in  amount  from  £25 
to  £100  to  approved  banks,  on  which  interest  is  charged  at  the 
rate  of  3  per  cent,  per  annum.  The  advances  are  made  under  a 
bond  given  by  the  bank  for  the  due  payment  of  the  loan,  and 
this  bond  forms  a  continuing  security  until  the  loan  is  paid  off. 
Loans  are  granted  for  eighteen  months,  and  may  be  called  in  at 
the  expiration  of  that  period;  but  as  the  security  holds  good  until 
the  principal  is  fully  repaid,  it  has  not  been  deemed  advisable 
to  call  in  loans  until  they  are  no  longer  required,  and  sufficient 
deposits  for  the  working  of  the  bank  have  been  subscribed  locally. 
When  a  loan  is  repaid  by  a  bank  the  amount  is  issued  to  another 
approved  applicant  so  that  the  loan  capital  is  kept  in  circulation. 

"For  the  work  of  organizing  agricultural  banks,  the  Depart- 
ment make  use  of  the  services  of  the  bank  organizers  employed 
by  the  Irish  Agricultural  Organization  Society,  and  the  receipt 
in  each  case  of  a  certificate  from  these  officers,  endorsed  by  the 
secretary  of  the  society,  to  the  effect  that  a  satisfactory  committee 
has  been  appointed,  and  that  the  bank  has  been  properly  organ- 
ized and  shows  promise  of  being  worked  with  success,  is  a  con- 
dition precedent  to  the  granting  of  a  loan." 

The  maximum  of  these  loans  was  reached  in  1907  when  the 
Department  had  £12,913  and  the  Board  £5872  outstanding.  The 
number  of  societies  benefiting  was  181,  or  96  per  cent,  of  all 
which  furnished  returns.  The  total  capital  of  all  the  societies  was 
£48,700,  so  that  the  proportion  of  State  loans  to  other  capital 
was  considerably  less  than  one-half,  whereas  in  1905  it  had  been 
as  high  as  four-sevenths. 

The  I.A.O.S.  fully  recognized  that  it  was  undesirable  to  in- 
crease the  amount  of  these  loans.  A  number  of  societies  existed 
merely  for  the  purpose  of  administering  the  distribution  of  a 
certain  amount  of  Government  money  which  they  regarded  more 


THE  CREDIT  SOCIETIES  157 

as  a  windfall  from  a  mysterious  providence  than  as  a  loan  given 
to  encourage  self-help  and  repayable  within  a  comparatively 
short  time.  The  following  passage  from  the  Departmental  Com- 
mittee's Report  gives  a  fair  picture  of  the  attitude  adopted: 

"[There  is]  a  widespread  feeling  that  the  loan  is  in  reality  a 
permanent  gift,  owing  to  its  being  made  from  the  State's  assumed 
limitless  resources.  In  some  circumstances  the  borrowing  societies 
seem  to  have  considered  that  they  had  a  right  to  the  use  of  the 
capital  of  the  loan  so  long  as  they  paid  the  interest  regularly; 
and  to  have  felt  rather  aggrieved  that  a  Government  Department 
should  expect  to  receive  its  money  back  again  from  the  borrower. 
One  suggestive  phrase  used  in  this  connection  was  the  charge 
made  against  the  Department  of  'evicting'  a  society  out  of  its 
loan!" 

It  was  evidently  desirable  that  the  State  should  cease  to  sup- 
port societies  which  had  no  intention  of  doing  anything  for 
themselves  and  were  leading  a  purely  parasitic  existence;  while 
in  the  case  of  the  progressive  societies  the  point  should  quickly 
be  reached  where  they  could  depend  on  their  own  capital.  The 
fact,  therefore,  that  from  1908  onward  the  policy  of  loans  was 
discontinued,  and  the  Department  set  about  to  reduce  the 
amounts  outstanding,  calls  for  no  criticism,  nor  in  fact  did  the 
I.A.O.S.  take  exception  to  these  proceedings.  What  is  unfortunate 
is  that  the  Department  was  unable  to  carry  out  this  change 
without  creating  friction  and  controversy,  with  which  we  shall 
deal  later.  The  amount  of  the  loans  was  reduced  by  1913  to 
£6500  from  the  Department  and  £5000  from  the  Congested  Dis- 
tricts Board,  which  had  pursued  a  more  negative  policy.  With  the 
outbreak  of  the  war  both  these  bodies,  faced  by  the  need  for 
strict  economy,  decided  to  withdraw  all  their  loans  as  far  as 
possible.  The  time  was  obviously  inopportune,  and  considerable 
apprehension  was  felt  by  the  Department  that  the  money  would 


158        RURAL  RECONSTRUCTION  IN  IRELAND 

not  be  recoverable,  and  by  the  I.A.O.S.  that  many  societies  would 
collapse.* 

In  spite  of  these  forebodings  the  process  has  been  wonderfully 
successful.  The  whole  of  the  sums  outstanding,  with  the  excep- 
tion of  a  few  small  loans,  has  been  already  repaid.  The  net  loss 
to  the  Department  on  the  fifteen  years'  experiment  was  £91,  or 
less  than  one  year's  interest.  The  C.D.B.  has  been  even  more 
fortunate,  having  lost  practically  nothing.  These  facts  form  a 
remarkable  testimony  to  the  honesty  of  the  much-abused  small 
farmer. 

The  third  source  of  capital  available  lies  in  overdrafts  from 
the  joint-stock  banks.  At  the  beginning  of  the  movement  there 
was  very  naturally  some  hesitation  on  the  part  of  these  agencies 
to  welcome  societies  which  seemed  likely  to  interfere  with  their 
own  functions.  It  is  to  the  credit  of  the  banks  that  they  soon 
realized  that  there  was  little  or  no  competition  threatened,  and 
that  the  credit  societies  would  actually  help  them  by  borrowing 
money  in  comparatively  large  sums  and  taking  charge  of  the 
dangerous  and  tedious  task  of  distributing  it  in  very  small  loans. 
These  considerations  caused  them  to  agree  to  grant  overdrafts 
on  favorable  terms.  A  joint  and  several  guarantee  is  provided 
by  the  committee,  and  interest  is  charged  at  4  per  cent.  The 
advice  of  the  I.A.O.S.  is  usually  sought,  and  where  it  is  favorable 
there  are  very  few  cases  where  societies  are  unable  to  obtain  all 
the  accommodation  they  require.  This  fact  has,  of  course,  mili- 
tated against  the  formation  of  a  central  credit  society,  and  has 
perhaps  had  an  indirect  influence  in  discouraging  deposits,  but 
on  the  whole  it  may  be  said  that  the  movement  owes  a  good  deal 
to  the  friendly  attitude  of  the  joint-stock  banks. 

In  organization  the  credit  societies  differ  from  other  Irish 

*The  need  of  economy  in  war  time  has  been  made  an  excuse  for  many  very 
uneconomical  proceedings.  It  is  interesting  to  compare  the  example  of  France, 
where  the  Government  has  increased  the  State  loans  to  credit  societies  in  order  to 
stimulate  them  to  renewed  helpfulness  in  a  time  of  crisis. 


THE  CREDIT  SOCIETIES  159 

co-operative  societies  in  that  they  are  registered  under  the 
Friendly  Societies  Act  instead  of  under  that  governing  industrial 
and  provident  societies.  They  are  thus  confined  to  the  particular 
business  of  taking  deposits  and  making  loans,  and  have  no  trad- 
ing powers,  while  the  liability  of  their  members  is  unlimited. 
They  are  not  actually  friendly  societies,  but  are  "specially 
authorized  societies"  under  a  clause  which  provides  for  the  regis- 
tration of  "Societies  for  any  purpose  which  the  Treasury  may 
authorize  as  a  purpose  to  which  the  provisions  of  the  Act,  or 
such  of  them  as  are  specified  in  the  authority,  ought  to  be  ex- 
tended." Certain  sections  of  the  Act  only  are  extended  to  them 
and  they  do  not  enjoy  some  exemptions  allowed  to  other  friendly 
societies.* 

The  original  reason  for  registering  under  this  Act  lay  in  the 
fact  that  unlimited  liability  was  considered  necessary.  The  mem- 
bers of  the  first  societies  were  in  the  main  very  poor  men,  and  the 
only  security  they  could  offer  which  would  warrant  loans  from 
any  outside  source  was  that  of  unlimited  and  collective  liability. 
At  the  same  time,  the  knowledge  that  there  was  no  limit  to  their 
liability  stimulated  members  to  feel  a  real  responsibility  for  the 
affairs  of  the  society.  Moreover,  the  influence  of  Raiffeisen's 
example  was  very  great;  dealing  with  much  the  same  problems 
he  had  achieved  marked  success  by  means  of  societies  with  un- 
limited liability,  so  that  it  seemed  reasonable  to  argue  that  the 
same  pattern  should  be  adopted  in  Ireland. 

Undoubtedly  this  form  of  society  was  well  adapted  to  deal  with 
conditions  as  they  were  in  1894.  But  as  time  went  on  and  the 
pioneer  societies  had  almost  done  their  work  it  began  to  be 
apparent  that  there  were  some  serious  defects  in  the  method. 
In  the  first  place,  when  societies  began  to  spread  into  districts 
where  comparatively  well-to-do  farmers  might  have  joined  them 

*  A  remarkable  instance  of  the  methods  of  the  law  is  to  be  seen  in  the  fact  that 
these  societies  are  held  liable  to  the  income  tax  from  which  industrial  and  provident 
societies  on  the  one  hand  and  friendly  societies  on  the  other  are  exempt. 


160       RURAL  RECONSTRUCTION  IN  IRELAND 

these  men  were  frightened  away  by  the  prospect  of  being  respon- 
sible to  an  unlimited  extent  for  their  neighbors.  Serious  doubts 
also  arose  as  to  whether  it  would  be  possible  to  liquidate  one  of 
these  societies  if  there  were  reason  for  doing  so  to  recover  money, 
without  a  long  and  tedious  legal  process.  Moreover,  the  impos- 
sibility of  paying  a  secretary  properly  militated  against  the 
success  of  the  societies,  and  they  tended  to  become  dormant. 
These  difficulties  might  have  been  met  by  adding  trading  powers; 
but  under  the  Friendly  Societies  Act  this  was  impossible,  and  the 
Thrift  and  Credit  Banks  Bill  promoted  by  Lord  Shaftesbury  to 
legalize  the  combination  broke  down  under  official  distrust  and 
opposition.  Consequently  the  leaders  of  the  I.A.O.S.  have  for 
some  time  been  contemplating  the  possibility  of  registering  credit 
societies  under  the  Industrial  and  Provident  Societies  Act  with 
limited  liability  and  trading  powers.  As  a  preliminary  step  a 
clause  has  been  incorporated  in  the  rules  of  agricultural  societies 
giving  them  power  to  do  a  banking  business.  Meanwhile  the 
organization  of  societies  of  the  old  type  has  been  suspended  for 
two  or  three  years  past.  This  does  not  by  any  means  imply  that 
the  credit  societies  have  been  a  failure.  In  many  districts  they 
served  their  purpose  and  are  no  longer  so  urgently  required, 
while  a  considerable  number  are  still  thoroughly  successful.  A 
brief  sketch  of  their  history  will  illustrate  the  point. 

The  first  bank,  as  we  have  seen,  was  organized  in  1895  at 
Doneraile.  In  the  following  year  a  special  bank  organizer  was 
appointed  in  the  person  of  Mr.  D.  L.  Roche,  who  succeeded  in 
forming  societies  at  Kyle  and  Belmullet,  the  latter  forty  miles 
from  a  railway  station.  Nothing  was  done  in  1897  owing  to  Mr. 
Roche's  promotion  to  the  position  of  manager  of  the  I.C.A.S.  At 
the  close  of  this  year,  however,  the  I.A.O.S.  approached  the 
Congested  Districts  Board  with  a  request  for  help  in  establishing 
these  societies  throughout  the  poorest  parts  of  the  West,  where 
"extreme  poverty  forbade  any  scheme  of  self-help  involving  any 
large  preliminary  outlay  of  capital."  The  success  of  the  society 


THE  CREDIT  SOCIETIES  161 

already  started  at  Belmullet  was  good  evidence  both  of  the 
material  benefits  and  the  educational  value  of  this  work  in  a 
backward  district,  and  the  Board  readily  assented  to  the  scheme 
and  granted  £100  towards  organization  expenses.  With  this  help 
societies  were  formed  in  six  villages  in  Mayo  and  three  in  Galway. 

In  many  cases  it  was  not  possible  to  raise  the  necessary  capital 
for  loans  locally,  and  it  was  at  this  point  that  the  practice  of 
granting  State  loans  for  the  purpose  began.  The  Board  had  power 
to  grant  loans  for  the  advancement  of  agriculture,  and  decided 
to  make  such  grants  to  credit  societies  on  the  same  terms  as  they 
had  been  accustomed  to  make  in  the  case  of  fishery  loans.  Here, 
however,  an  unexpected  difficulty  arose,  for  it  was  discovered 
that  under  the  Act  the  funds  of  the  societies  must  be  raised  by 
contributions  from  members  only,  and  there  were  no  borrowing 
powers.  Consequently  it  was  necessary  that  loans  should  be  made 
to  individual  members  of  committees,  and  by  them  deposited 
with  societies  in  their  own  names.  Such  a  system  put  an  undue 
share  of  responsibility  upon  individuals  while  relaxing  the  sense 
of  joint  liability  of  the  members,  and  to  meet  it  Sir  Horace 
Plunkett  (then  a  Member  of  Parliament)  introduced  a  short  Bill 
which  passed  into  law  under  the  name  of  the  Societies  Borrowing 
Powers  Act.  Under  this  Act  societies  which  declared  no  dividend 
and  lent  only  for  approved  purposes  were  enabled  to  borrow  from 
non-members,  whether  individuals  or  corporate  bodies. 

In  their  report  for  this  year,  the  I.A.O.S.  stated:  "We  attach 
very  great  importance  to  the  introduction  of  the  Raiffeisen  system 
into  Ireland  and  are  inclined  to  put  it  in  the  forefront  of  our 
propaganda."  They  were  influenced  chiefly  by  the  great  educa- 
tional value  of  the  system,  the  necessity  for  combating  the 
increasing  power  of  usury,  and  the  desirability  of  introducing  a 
principle  of  responsibility  and  a  better  understanding  of  business 
methods  into  the  agricultural  slums  of  Ireland.  "Only  those  who 
know  the  amazing  economics  of  the  small  Irish  farmer  in  the 
West  can  realize  to  what  an  extent  the  sharpening  of  his  business 


1 62        RURAL  RECONSTRUCTION  IN  IRELAND 

wits  will  benefit  him  and  prepare  him  for  further  organization. 
This  sharpening  is  brought  about,  not  only  by  the  unlimited 
liability,  but  also  by  the  method  of  lending." 

As  a  result  of  this  attitude  a  rapid  advance  was  made,  and  the 
report  for  1899  records  the  formation  of  thirty-three  new  socie- 
ties, making  a  total  of  forty-eight.  "The  audited  accounts  of  the 
new  banks  are  very  satisfactory,  and  the  reports  furnished  on 
their  working  by  the  organizers,  together  with  the  enthusiasm  of 
the  members,  lead  us  to  believe  that  though  the  transactions  of 
other  societies  may  be  larger,  no  form  of  co-operation  which  we 
have  advocated  is  so  suited  to  the  character  of  Irish  rural  life  or 
so  productive  of  moral  and  material  good."  And  again:  "No  bad 
debts  have  been  incurred.  Punctuality  in  payment  has  been  the 
rule,  many  members  paying  up  before  the  loans  became  due." 

Some  typical  instances  are  given  of  the  benefits  achieved  by 
membership  in  one  of  these  societies.  We  may  quote  one  which 
is  characteristic.  A  member  writes:  "The  loan  of  £3  which  I 
borrowed  from  the  Kilcommon  Bank  on  August  22,  1898,  I 
applied  as  follows:  On  August  27  I  purchased  three  young  pigs 
for  £i  155.;  on  February  15  following  I  sold  two  pigs  at  £3  153. 
I  have  kept  one,  a  sow,  for  breeding.  She  is  now  within  three 
weeks  of  young  ones,  and  is  valued  at  £4.  The  balance  of  the  loan, 
£i  53.,  enabled  me  to  hold  over  sale  of  a  calf  which  at  the  time 
would  only  have  fetched  £i  los.  This  is  still  in  my  possession  and 
is  well  worth  £3.  The  feeding  for  pigs  would  have  been  worthless 
to  me  without  them,  the  potatoes  being  small  and  black."  This 
is  surely  testimony  which  might  make  a  powerful  appeal  even 
to  a  prince  of  finance;  it  shows  so  clearly  what  a  vast  difference 
the  possibility  of  obtaining  the  smallest  loan  may  make  to  a 
farmer  in  some  districts.  Several  other  such  letters  are  quoted. 

In  this  year  an  Irish-speaking  organizer  was  appointed,  as 
many  of  these  banks  were  formed  in  districts  where  English  was 
little  spoken.  A  leaflet  was  also  printed  in  Gaelic.  About  the  same 
time  a  complete  revision  of  the  rules  was  carried  out,  bringing 


THE  CREDIT  SOCIETIES  163 

them  into  their  present  shape.  An  interesting  experiment  was 
attempted  in  Wexford,  where  the  large  Enniscorthy  Agricultural 
Society  registered  three  credit  societies  with  limited  liability  under 
the  Industrial  and  Provident  Societies  Act.  These  societies  were 
intended  to  finance  the  trade  of  branch  agricultural  societies, 
but  only  one  of  them,  that  at  Ballindaggin,  actually  began  work. 
It  is  still  in  existence  and  remains  the  unique  example  of  its  type 
in  Ireland,  but  for  several  years  it  has  had  only  ten  or  twelve 
members,  and  seems,  though  perfectly  solvent,  to  have  outlived 
its  usefulness. 

The  enthusiasm  of  the  I.A.O.S.  for  credit  societies  resulted  in 
a  steady  and  perhaps  over-rapid  increase  for  the  next  few  years. 
This  was  helped  by  the  increased  facilities  for  obtaining  capital. 
The  Department  began  to  contribute  loans  in  1901,  and  the  Con- 
gested Districts  Board  continued  to  do  so  in  increasing  amounts, 
while  by  1902  the  joint-stock  banks,  which  at  first  had  held  aloof, 
became  fully  reconciled  to  the  societies  and  willing  to  advance 
money  to  them.  At  the  same  time  one  or  two  county  councils 
contributed  toward  the  expenses  of  organization. 

By  1904  the  total  capital  of  the  societies  amounted  to  over 
£28,000,  but  of  this  amount  over  half  was  furnished  by  State 
loans.  In  their  report  for  this  year  the  I.A.O.S.  wrote:  "Local 
money  is  coming  to  be  more  relied  on,  and  whenever  possible, 
the  I.A.O.S.  organizers  deprecate  applications  to  the  Department 
if  capital  is  otherwise  procurable.  .  .  .  The  Congested  Districts 
Board  and  the  Department  still  continue  their  aid  to  credit  socie- 
ties in  districts  where  local  capital  is  not  at  first  available,  and 
it  almost  always  follows  that  confidence  is  established,  and 
depositors  appear  after  some  months  or  a  year  has  elapsed." 

In  these  circumstances  it  was  comparatively  easy  to  organize 
credit  societies  which  would  give  promise  of  being  useful  and 
effective.  It  was  far  more  difficult  to  ensure  that  this  promise 
should  be  realized.  The  ease  with  which  capital  could  be  obtained 
and  the  lack  of  funds  to  pay  an  efficient  secretary  tended  to 


1 64        RURAL  RECONSTRUCTION  IN  IRELAND 

slackness,  while  the  fact  that  these  banks  had  not  funds  to  enable 
them  to  pay  the  cost  of  inspection  and  audit  made  it  impossible 
for  the  I.A.O.S.  to  keep  up  a  proper  supervision  of  all  of  them 
except  with  the  aid  of  State  subsidies.  Consequently  it  is  not  sur- 
prising that  during  the  period  from  1904  to  1908,  when  their 
number  reached  its  maximum,  defects  began  to  appear,  and 
that  subsequently  to  this  time  when  the  Department  cut  off  the 
subsidy  of  the  I.A.O.S.  and  reduced  the  loans  to  the  banks,  as 
well  as  assuming  a  critical  attitude  towards  them,  the  societies 
began  to  decrease. 

The  chief  defects  were  renewals  of  loans,  failure  to  attract 
deposits,  the  making  of  losses  on  the  year's  work,  failure  to 
furnish  returns  either  to  the  Registrar  or  to  the  I.A.O.S.,  and 
general  apathy  or  inefficiency. 

Protests  against  the  policy  of  renewing  loans  begin  to  appear 
in  the  reports  of  the  I.A.O.S.  in  the  year  1905,  and  since  that  time 
vigorous  attempts  have  been  made  to  discountenance  this  prac- 
tice. By  a  renewal  is  meant  the  reissuing  or  extension  of  a  loan 
beyond  the  period  for  which  it  was  originally  granted,  without 
proof  that  the  money  will  be  applied  to  any  new  purpose  or  that 
any  additional  profits  will  follow  from  its  repayment  being  with- 
held. In  some  cases  actual  renewal  is  avoided  by  the  money  being 
repaid  formally  on  the  due  date  and  borrowed  again  almost 
immediately  for  the  same  purpose.  This  practice  strikes  directly 
at  the  fundamental  principle  by  which  loans  are  granted  under 
the  Raiffeisen  system,  namely,  that  the  purposes  to  which  they 
are  applied  should  be  purely  reproductive.  Furthermore  by  with- 
drawing capital  from  free  circulation  it  diminishes  the  usefulness 
of  the  society  and  inflicts  an  injustice  on  new  members  or  on 
those  who  have  not  needed  loans  previously.  Finally,  the  small 
credit  society  can  only  succeed  when  it  is  based  upon  principles 
of  punctuality  and  discipline.  The  borrower  who  finds  he  can 
renew  a  loan  indefinitely  is  not  benefited  ethically,  and  the 


THE  CREDIT  SOCIETIES  165 

authority  of  the  committee  falls  into  contempt,  with  a  probable 
decrease  in  its  efficiency. 

The  temptation  to  connive  at  renewals  arises  naturally  wher- 
ever the  people  entrusted  with  the  management  of  the  society 
have  an  insufficient  appreciation  of  their  responsibilities  or  are 
not  competent  to  discharge  them.  In  small  country  districts  it 
is  inevitable  that  the  tone  of  the  committee  will  be  mainly  in- 
fluenced by  the  attitude  of  the  secretary.  Practically  all  the  other 
defects  which  we  have  noted  may  be  traced  to  the  same  point. 
The  failure  to  furnish  any  proper  returns  is  obviously  a  sign  of 
apathy  or  incompetence  in  the  secretary,  and  the  same  cause 
usually  leads  to  losses,  to  failure  to  attract  deposits,  and  to 
general  stagnation. 

It  would  not  be  reasonable  to  blame  individual  secretaries  for 
these  failures;  in  the  majority  of  cases  they  are  doing  their  best, 
and  where  they  are  not,  it  is  probably  because  they  have  received 
no  support  from  the  members  or  have  been  forced  into  a  task  for 
which  they  had  no  inclination.  Nor  should  the  members  be  criti- 
cized for  inefficiency  in  carrying  on  what  seems  to  them  a  com- 
plicated business,  or  losing  interest  in  the  society  when  they  no 
longer  have  need  of  it.  The  two  chief  reasons  for  the  backward- 
ness of  a  number  of  the  societies  are  the  lack  of  possibilities  of 
expansion  and  the  absence  of  a  sufficiently  close  supervision  from 
some  authoritative  body.  To  a  great  extent  the  policy  of  the  State 
Department  must  bear  the  primary  responsibility  for  both  these 
defects.  They  go  together  almost  entirely. 

As  we  have  seen,  the  expansion  of  the  societies  was  at  one  time 
extremely  rapid;  Government  capital  and  subsidies  to  the 
I.A.O.S.  made  such  expansion  easy,  and  a  number  of  such  socie- 
ties was  needed  to  deal  with  the  circumstances  of  the  time.  But 
small  societies  in  backward  districts,  based  on  unlimited  liability 
and  relying  largely  on  Government  loans,  with  no  trading  powers, 
could  not  continue  indefinitely  active.  A  time  was  bound  to  come 
when  either  the  members  would  have  been  relieved  of  their  dis- 


1 66        RURAL  RECONSTRUCTION  IN  IRELAND 

tress  and  the  work  of  the  bank  done,  or  the  secretary  would 
require  payment  which  the  funds  could  not  provide,  or  possibly 
an  energetic  official  would  leave  the  neighborhood  and  give  place 
to  an  apathetic  or  unsuitable  one.  To  meet  these  probabilities, 
provision  should  have  been  made  either  for  liquidating  a  society 
when  it  seemed  to  have  fulfilled  its  purpose  or  reached  a  point 
of  stagnation,  or  for  giving  it  such  increased  functions  as  would 
stimulate  renewed  interest  in  it.  The  former  policy  obviously 
involves  frequent  inspection  and  strict  control  by  the  central 
authority,  while  the  latter  involves  a  considerable  structural 
change  in  the  societies. 

Credit  societies  of  the  Raiffeisen  type  throughout  Europe  have 
a  more  active  existence  than  those  in  Ireland  for  one  or  both  of 
two  reasons.  In  the  first  place,  they  are  the  great  centres  of  thrift 
for  the  rural  population,  and  the  funds  so  accumulated  enable 
them  either  locally  (as  in  Italy)  or  through  a  federation  (as  in 
Austria)  to  capitalize  and  finance  the  trading  side  of  the  move- 
ment. In  the  second  place,  they  have  trading  powers  and  act 
(as  in  Germany)  as  important  agencies  for  the  collective  pur- 
chase of  farmers'  requirements  in  the  way  of  fertilizers,  feeding- 
stuffs,  and  so  forth. 

We  have  seen  that  there  are  legal  reasons  which  prevent  Irish 
credit  societies  so  long  as  they  are  organized  with  unlimited 
liability  from  enjoying  trading  powers,  and  that  the  attempt  to 
remove  this  disability  was  unsuccessful  largely  owing  to  official 
opposition.  We  have  also  seen  that  there  are  various  obstacles 
to  the  accumulation  of  large  funds  by  the  credit  societies.  Every- 
thing points  to  the  fact  that  far  greater  supervision  and  control 
of  these  societies  are  required.  The  controlling  authority  might  be 
expected  either  to  reorganize  them  on  a  basis  of  limited  liability, 
or  to  strengthen  their  financial  methods  in  such  a  way  that  they 
could  command  and  dispose  of  larger  deposits.  This  work  cannot 
be  undertaken  by  the  I.A.O.S.  as  at  present  constituted,  for  two 
reasons:  in  the  first  place,  it  would  require  a  great  increase  in 


THE  CREDIT  SOCIETIES  167 

the  staff  for  which  the  credit  societies  are  certainly  not  in  a  posi- 
tion to  pay,  while  no  other  funds  are  available;  in  the  second 
place,  if  the  central  authority  is  to  encourage  the  accumulation 
of  surplus  deposits,  it  must  be  prepared  to  act  as  a  clearing  house 
for  them  in  order  to  ensure  that  they  are  profitably  used  and  at 
the  same  time  it  must  provide  some  sort  of  a  guarantee  for  their 
safety.  These  functions  are  outside  the  scope  of  the  I.A.O.S.  as 
an  educational  body.  They  are  performed  in  Germany  and  Austria 
by  central  credit  societies,  and  there  is  a  great  deal  to  be  said 
for  following  this  example  in  Ireland. 

The  chief  arguments  against  it  are  the  probability  of  antag- 
onizing the  joint-stock  banks,  and  the  dangers  which  have  been 
found  to  beset  co-operative  central  banks  with  large  funds  in 
other  countries.  The  Departmental  Committee  opposed  the 
scheme  for  these  reasons  and  maintained  that  there  was  no  neces- 
sity for  such  a  central  body,  as  it  would  not  be  able  to  give  the 
credit  societies  more  advantageous  terms  than  they  already 
enjoyed  from  the  joint-stock  banks.  In  saying  this  the  Committee 
were  undoubtedly  considering  the  credit  societies  purely  as 
making  loans,  and  from  this  point  of  view  they  were  no  doubt 
right.  But  they  had  no  conception  of  the  possibilities  of  the  credit 
societies  as  sources  for  the  collection  of  funds  to  finance  the  whole 
movement,  which  is  really  the  most  important  development  to 
be  expected  from  them.  The  Central  Credit  Society  of  the  prov- 
ince of  Lower  Austria  has  collected  deposits  from  affiliated 
societies  to  the  extent  of  £2,000,000,  and  practically  all  of  this 
is  reinvested  in  the  interests  of  agricultural  co-operators.  In 
Ireland  the  Post  Office  Savings  Banks  hold  deposits  to  the  amount 
of  £18,000,000,  and  the  long  term  deposits  in  the  joint-stock 
banks  amount  to  £65,000,000.  A  great  proportion  of  this  money 
is  derived  from  agricultural  sources,  but  most  of  it  leaves  the 
country  altogether.  If  a  central  co-operative  bank  existed  which 
was  able  to  attract  even  i  per  cent,  of  this  money,  the  lack 
of  capital  from  which  the  movement  suffers  could  be  remedied 


1 68        RURAL  RECONSTRUCTION  IN  IRELAND 

at  once,  even  if  the  joint-stock  banks  were  to  some  extent 
alienated. 

Meanwhile  a  Central  Co-operative  Credit  Society  has  been 
established  under  the  auspices  of  the  I.A.O.S.,  apparently  with 
a  view  to  keeping  open  the  possibility  of  development  in  the 
future.  This  society  is  inadequate,  however,  for  the  reason  that 
it  is  not  in  any  sense  a  federation  of  the  local  societies,  and  there- 
fore has  no  control  over  them.  Its  operations  at  present  are 
almost  negligible,  and  there  is  little  reason  to  suppose  that  in  its 
present  form  it  can  cope  with  the  needs  of  the  movement  even 
if  it  succeeded  in  getting  more  closely  into  touch  with  the 
societies. 

Frequent  references  have  been  made  throughout  this  chapter 
to  the  Departmental  Committee's  Report  and  its  effect  upon  the 
movement.  It  is  necessary  now  to  deal  with  this  matter  in  more 
detail. 

On  his  accession  to  the  Vice-Presidency  of  the  Department  of 
Agriculture,  Mr.  T.  W.  Russell  set  himself  to  break  the  links 
between  that  body  and  the  I.A.O.S.  which  his  predecessor  had 
created.  The  subsidy  to  the  I.A.O.S.  for  organizing  purposes  was 
soon  disposed  of,  but  there  remained  the  £13,000  or  so  of  loans 
which  the  Department  had  outstanding  with  the  credit  societies. 
It  was  agreed  between  the  I.A.O.S.  and  the  Department  that 
these  loans  should  be  withdrawn,  but  it  was  quite  apparent  that 
the  process  must  be  a  gradual  one.  Meanwhile  the  existence  of 
the  loans  gave  the  Department  the  right  to  inspect  these  societies 
and  to  claim  some  sort  of  authority  over  them.  As  friction  in- 
creased, Mr.  Russell  seems  to  have  felt  that  this  connection 
afforded  him  an  opportunity  of  attacking  the  co-operative  move- 
ment at  its  weakest  point.  The  credit  societies  were  admittedly 
a  weak  point,  for  the  withdrawal  of  the  Government  subsidy 
had  made  it  difficult  to  continue  the  unremunerative  work  of 
inspecting  them. 

In  1910,  at  a  meeting  of  the  Congested  Districts  Board,  Mr. 


THE  CREDIT  SOCIETIES  169 

Russell  announced  that  the  system  was  "rotten  and  indefensible" 
and  that  the  societies,  if  wound  up,  would  not  realize  2s.  6d.  in 
the  pound.  Sir  Horace  Plunkett,  who  was  present  at  the  meeting, 
naturally  felt  that  a  serious  attack  was  made  upon  him  as  the 
person  chiefly  responsible  both  for  the  foundation  of  these 
societies  and  for  the  State  loans  to  them.  In  a  correspondence 
which  was  subsequently  published  both  in  the  public  Press  and 
the  I.A.O.S.  Report,  he  sought  unsuccessfully  to  obtain  some 
justification  or  explanation  of  the  statement.  The  corrrespond- 
ence  is  worth  reading  as  an  authentic  example  of  the  contemptu- 
ous flippancy  with  which  highly  placed  Government  officials 
occasionally  treat  their  responsibilities.  In  1910  the  Department 
sent  out  one  of  their  officers  to  inspect  the  credit  societies  to  which 
they  had  granted  loans.  He  reported  that  twenty- two  of  them 
were  satisfactory,  thirty-six  fair,  and  forty-five  unsatisfactory. 
There  is  no  means  of  knowing  by  what  methods  this  classification 
was  arrived  at,  and  the  vague  terms  used  are  not  rendered  much 
more  definite  by  the  explanations  given  in  the  Report,  which  tells 
us  that  "satisfactory"  means  that  the  bank  was  well  managed, 
"unsatisfactory"  that  it  was  badly  managed,  while  "fair"  includes 
everything  between  these  two. 

For  two  years  Mr.  Russell  continued  to  bemoan  the  difficulties 
of  recovering  the  loans  and  to  make  dark  announcements  as  to 
the  amount  of  bad  debts  incurred  and  the  necessity  of  frequent 
legal  proceedings.  In  recovering  these  debts  he  was  supposed  to 
act,  as  would  be  only  reasonable,  on  the  advice  of  the  I.A.O.S., 
but  he  steadily  refused  to  take  that  body  into  his  confidence,  and 
it  is  still  in  the  dark  as  to  the  identity  of  many  of  the  societies 
which  caused  him  so  much  difficulty. 

In  January,  1912,  Mr.  Russell  decided  that  a  formal  inquiry 
might  be  held  into  the  position  of  the  credit  societies  which  he 
had  already  so  unsparingly  condemned.  The  Departmental  Com- 
mittee on  Agricultural  Credit  was  accordingly  appointed.  It 
included  one  representative  from  the  I.A.O.S.,  namely,  the 


i;o       RURAL  RECONSTRUCTION  IN  IRELAND 

Reverend  T.  A.  Finlay,  two  officers  of  the  Department,  and 
several  gentlemen  whose  eminence  was  due  to  quite  other  causes 
than  their  knowledge  of  the  principles  of  either  co-operation  or 
agricultural  credit.  Its  report  was  finally  published  in  1914  after 
a  period  of  two  years,  during  which  the  credit  movement  remained 
in  abeyance.  Its  findings  contained  a  most  excellent  and  pains- 
taking summary  of  the  general  history  of  the  movement  with 
many  useful  facts  and  figures,  and,  from  this  point  of  view,  it 
deserves  to  take  rank  as  a  standard  work  of  reference.  It  also 
showed  clearly  that  the  work  of  the  credit  societies  as  organized 
by  the  I.A.O.S.  had  been  of  great  benefit  to  the  country,  and  that 
the  defects  which  existed  were  as  freely  admitted  by  the  I.A.O.S. 
as  by  its  critics.  A  sympathetic  student  of  the  subject  reading 
the  main  body  of  this  report  would  conclude  that  with  harmony 
between  the  State  and  the  voluntary  body,  and  the  devotion  of 
a  reasonable  subsidy  to  the  organization  of  these  societies  a  great 
future  lay  before  them.  The  Committee,  however,  drew  no  such 
conclusions.  Ignoring  the  evidence  of  such  experts  as  Messrs. 
Wolff  and  Cahill,  to  say  nothing  of  the  officials  of  the  I.A.O.S., 
they  decided  that  the  I.A.O.S.  had  failed  in  its  duties,  and  that 
the  credit  societies  could  only  be  restored  to  life  by  Government 
control.  They  therefore  proposed  to  set  up  a  branch  of  the 
Department  of  Agriculture  to  organize  credit  societies  in  com- 
petition with  the  I.A.O.S.,  and  threw  out  as  a  bribe  free  audit  at 
the  expense  of  the  Treasury.  What  was  thought  of  these  proposals 
by  those  who  had  heard  the  Vice-President's  frenzied  protests 
against  overlapping  wherever  the  I.A.O.S.  showed  signs  of 
encouraging  farmers  to  farm,  or  his  indignation  at  the  idea  of 
any  State  assistance  to  the  co-operative  movement,  remains 
untold.  Nor  have  the  Lords  of  the  Treasury  expressed  their 
opinion  of  this  ingenuous  attempt  to  make  them  support  two  rival 
forms  of  co-operative  credit  in  the  same  country.  But  the  Minor- 
ity Report,  signed  by  Father  Finlay,  expresses  the  views  of  the 


THE  CREDIT  SOCIETIES  171 

experts  of  all  countries  on  the  matter  and  has  obtained  wider 
recognition  than  the  suggestions  of  the  Majority. 

It  is  a  question  whether  Mr.  Russell  really  intended  to  put  the 
scheme  into  operation.  If  he  did  he  was  delayed,  probably  by 
unforeseen  technical  difficulties,  until  the  outbreak  of  war,  since 
when  it  has  been  the  consistent  policy  of  most  officials  connected 
with  agriculture  to  act  only  under  the  pressure  of  enforced 
economy  or  of  enraged  public  opinion.  Thus  a  deadlock  exists 
for  the  present  and  the  credit  societies  have  become  the  neglected 
orphans  of  the  movement.  A  certain  number  of  them  are  still 
extremely  prosperous,  and  the  majority  of  them  have  served  a 
useful  purpose,  so  that  the  I.A.O.S.  has  no  need  to  feel  any 
remorse  on  this  head.  But  with  the  withdrawal  of  Government 
loans  and  the  gradual  creeping  in  of  defects  due  to  unbusinesslike 
habits  and  insufficient  supervision,  many  of  them  are  in  such  a 
position  that  they  must  either  be  reorganized  or  liquidated  if 
they  are  not  to  become  dead  branches  on  an  otherwise  healthy 
tree.  The  I.A.O.S.  fully  admits  this,  but  its  leaders  feel  that  when 
the  threat  of  State  interference  is  still  held  over  them,  it  would 
be  unwise  to  spend  on  these  societies  time  and  money  which  are 
urgently  needed  in  other  directions.  The  whole  staff  of  the 
I.A.O.S.  is  fully  occupied,  and  the  financial  position  forbids  any 
additions  to  it.  In  these  circumstances,  so  long  as  the  I.A.O.S. 
stands  prepared  to  audit  the  accounts  of  the  credit  societies,  to 
send  inspectors  to  them  in  cases  of  urgent  necessity,  to  carry  out 
the  liquidation  of  the  most  hopeless,  and  to  safeguard  as  far  as 
possible  the  interests  of  depositors  and  creditors  where  they  exist, 
it  must  be  held  to  be  doing  all  that  can  be  expected  of  it.  No  new 
credit  societies  on  the  Raiffeisen  basis  have  been  organized  for 
the  last  four  years,  and  beyond  inserting  a  clause  providing  for 
banking  operations  in  the  rules  of  the  agricultural  societies,  no 
steps  have  been  taken  towards  the  creation  of  a  new  type,  al- 
though the  matter  has  often  been  discussed  by  the  Committee 
and  the  organizers. 


172        RURAL  RECONSTRUCTION  IN  IRELAND 

If,  when  normal  conditions  are  restored,  the  recommendations 
of  the  Departmental  Committee  can  be  conveniently  forgotten 
and  the  facts  made  the  basis  of  reconstruction  by  a  committee 
of  people  who  both  understand  and  sympathize  with  the  move- 
ment, the  credit  societies  may  yet  become  the  keystone  of  Irish 
co-operation.  But  even  if  this  is  not  done,  and  many  of  them 
have  to  be  allowed  to  pass  away,  the  testimony  of  thousands  of 
small  farmers,  reciting  such  plain  facts  as  we  have  quoted  on 
a  previous  page,  will  suffice  to  show  that  the  efforts  spent  in 
creating  these  societies  and  maintaining  them  during  the  times 
of  economic  stress  were  by  no  means  spent  in  vain. 


CHAPTER  X 
MISCELLANEOUS  SOCIETIES 

THE  three  types  of  co-operative  societies  which  we  have  con- 
sidered in  detail  in  the  previous  chapters — the  creameries,  the 
agricultural  societies,  and  the  credit  banks — comprise  the  major 
portion  of  the  Irish  co-operative  movement.  In  the  remaining 
group  is  to  be  found  a  very  considerable  variety  of  enterprises, 
but  in  none  of  them  is  there  any  important  modification  or  novel 
application  of  the  co-operative  principle.  Some  of  these  miscel- 
laneous societies  may  become  of  great  importance  in  the  later 
development  of  the  co-operative  movement,  while  others,  con- 
cerned with  subsidiary  occupations,  must  remain  in  a  secondary 
position.  All  of  them,  however,  are  associations  for  the  general 
purposes  of  manufacture  or  purchase  and  sale  which  we  have 
already  considered.  Thus  while  this  chapter  will  indicate  the 
facility  with  which  the  co-operative  system  is  applied  over  a  wide 
field,  and  will  lead  us  to  conclude,  perhaps,  that  no  new  enterprise 
is  likely  to  engage  the  attention  of  the  farming  community  in 
which  the  local  organization  afforded  by  the  societies  is  not  of 
the  greatest  value  and  importance,  it  will  reveal  little  in  the 
practice  of  co-operative  organization  which  is  not  already  clear. 
The  success  of  the  various  societies  here  considered,  including 
those  of  a  more  experimental  nature,  will  serve  as  additional 
evidence  of  the  value  of  this  principle,  which  has  already  been 
so  completely  justified. 

On  practically  every  farm,  be  it  the  large  holding  of  a  thou- 
sand acres  or  the  corner  of  one  which  the  agricultural  laborer 
has  been  able  to  secure,  is  to  be  found  a  stock  of  poultry.  No 

173 


174        RURAL  RECONSTRUCTION  IN  IRELAND 

form  of  farm  production  is  capable  of  wider  expansion;  no  form 
is  so  often  neglected.  The  position  of  Ireland  in  close  proximity 
to  the  English  markets  would  seem  to  have  offered  a  particular 
advantage  and  incentive  to  this  industry.  Nevertheless  it  had 
never  assumed  its  proper  position  in  the  industrial  life  of  the 
country.  The  reputation  of  Irish  eggs  in  England  was  no  more 
savory  than  that  of  Irish  butter.  Time  and  again  the  Glasgow 
and  Liverpool  merchants  were  forced  to  announce  that  they  found 
it  impossible  to  deal  in  Irish  eggs  as  supplied  to  them.  Likewise 
Irish  poultry,  which  was  later  taken  to  England  and  fattened 
as  Surrey  fowl,  was  in  such  poor  condition  that  it  brought  very 
low  prices.  The  yearly  loss  to  Irish  farmers,  distributed  among 
all  classes  of  the  population,  and  most  serious  for  the  poorest, 
reached  into  thousands  of  pounds. 

Complete  ignorance  of  the  technical  details  of  the  industry, 
and  a  lack  of  proper  arrangements  for  marketing,  the  two 
ubiquitous  evils  of  Irish  agriculture,  largely  accounted  for  this 
situation.  The  women,  into  whose  hands  this  part  of  the  farming 
operations  naturally  fell,  were  even  less  in  touch  with  modern 
developments  than  the  men.  The  hens  roamed  at  large  over  the 
estate  or  picked  up  their  living  along  the  "long  pasture."  Winter 
egg  production  was  as  unusual  as  winter  dairying.  An  expert 
would  have  found  great  difficulty  in  identifying  the  constituent 
breeds  of  the  ordinary  Irish  fowl;  its  chief  characteristic  was  a 
ripe  and  unprofitable  old  age.  The  marketing  arrangements  were 
crude  and  inefficient.  Eggs  were  collected  from  the  fields  and 
hedges  as  the  necessities  of  the  moment,  the  visits  of  the  egg 
collector,  and  the  energies  of  the  owner  directed.  No  attempt 
was  made  to  keep  them  clean  or  sizeable,  no  attempt  to  ensure 
a  really  fresh  product.  The  egg  collector  was  among  the  most 
virulent  of  the  middleman  class.  He  traveled  about  die  country 
with  his  miscellaneous  stock  of  household  necessaries  and  un- 
necessaries,  and  for  these  received  in  payment  the  collected  eggs 
of  the  period  intervening  between  his  visits.  His  profit  was  thus 


MISCELLANEOUS  SOCIETIES  175 

doubled.  If  there  were  no  egg  collector,  the  shopkeeper  at  the 
crossroads  played  his  role  with  equal  distinction.  Eventually  the 
eggs  found  their  way  to  the  markets;  dirty,  ungraded,  and  badly 
packed.  This  last  fact  accounted,  partially  at  least,  for  the  large 
percentage  of  breakages  en  route  of  which  Irish  shippers  were 
ever  complaining.  Both  producers  and  middlemen  paid  little 
attention  to  the  freshness  of  the  eggs.  In  times  of  a  rising  market 
they  were  held  outrageously  by  both  parties.  As  long  as  this 
system  of  organization  and  technique  continued,  the  Irish  egg 
and  poultry  trade  was  destined  to  maintain  its  insignificant  and 
backward  position. 

The  situation  was  one  in  which  the  application  of  the  co- 
operative principle  seemed  likely  to  prove  particularly  advan- 
tageous. Through  common  effort  the  twofold  problem  of  technique 
and  marketing  might  be  solved.  Thus  in  the  early  years  of  the 
movement  the  addition  of  eggs  and  poultry  to  the  business  of 
the  existing  creamery  societies  was  recommended,  and  in  1897 
the  formation  of  independent  societies  for  this  purpose  proposed. 
Later  a  poultry  expert  was  added  to  the  staff  of  the  I.A.O.S.,  and 
a  Dane,  M.  Viggo  Schwarz,  was  brought  over  to  introduce  the 
methods  of  grading  and  packing  which  had  established  the 
Danish  egg  at  the  head  of  the  English  market.  The  societies 
collect,  grade,  pack  and  market  the  eggs  for  their  members,  and 
in  many  cases  have  engaged  in  the  dressing  of  poultry.  They 
perform  these  services  so  far  as  possible  along  the  most  modern 
and  scientific  lines.  The  eggs  are  collected  regularly  by  the  vans 
of  the  society,  are  then  graded  according  to  size  or  weight,  and 
in  some  cases  paid  for  on  that  basis.  Dirty  eggs  are  discounte- 
nanced and  often  refused  altogether.  The  packing  is  in  dry  wood 
wool  and  in  non-returnable  crates  of  standard  pattern.  They  are 
marketed  either  direct  to  the  retailer  or  through  the  I.A.W.S. 
Where  societies  have  embarked  on  the  dressing  of  poultry,  the 
proper  methods  for  high-class  trade  are  followed.  Attempts  to 
add  the  business  of  poultry  fattening,  saving  for  Ireland  and 


176        RURAL  RECONSTRUCTION  IN  IRELAND 

Irish  farmers  the  large  profits  usually  surrendered  to  England, 
have  met  with  a  certain  measure  of  success  in  a  few  societies. 

Co-operative  organization  seemed,  therefore,  to  form  a  com- 
prehensive and  useful  agency  for  the  establishment  of  the  egg 
and  poultry  business  on  a  proper  basis.  Though  the  I.A.O.S.  has 
never  been  in  a  position  to  devote  the  attention  to  this  industry 
which  it  has  deserved,  its  efforts  have  not  been  without  fruit.  In 
1915  there  were  eleven  active  societies,  with  a  membership  of 
4000,  and  a  turnover  for  the  year  of  £85,000.*  Reserves  had  been 
accumulated  totaling  £6669,  and  the  net  profits  were  £1806  as 
against  a  loss  in  a  single  society  of  £20.  These  statistics  indicate 
that  existing  societies  have  succeeded  to  a  considerable  degree 
and  are  doing  a  large  and  useful  business. 

Though  in  the  beginning  it  was  proposed  to  establish  small 
societies  on  a  parish  basis,  success  has  more  often  come  with  a 
large  unit,  covering  a  considerable  area  and  embracing  a  large 
membership.  This  type  of  society  provides  a  turnover  which 
makes  possible  the  employment  of  an  expert  manager.  The  North 
Kilkenny  Society  at  Ballyragget,  for  instance,  has  a  membership 
of  390,  and  draws  its  eggs  and  poultry  from  a  wide  district.  It 
has  been  able  through  the  skill  of  its  manager  to  take  up  the 
business  of  table  poultry  and  fattening  on  a  large  scale.  But  even 
with  this  advantage  the  large  society  has  drawbacks.  The  members 
are  not  bound  together  with  the  same  community  loyalties,  and 
there  may  be  friction  between  the  various  localities.  Moreover, 
even  with  addition  of  poultry  the  large  egg  society  is  not  immune 
from  the  danger  of  starvation — the  lack,  that  is,  of  sufficient 
produce  to  keep  the  society  on  a  paying  basis.  For  these  reasons, 
co-operative  egg  and  poultry  societies  of  this  description,  though 
they  have  proved  quite  successful,  do  not  seem  likely  to  become 
numerous. 

There  are  two  alternative  schemes  for  the  co-operative  organ- 

*  These  figures  actually  represent  only  seven  of  the  societies,  no  returns  except  as 
to  number  of  members  being  available  from  the  others. 


MISCELLANEOUS  SOCIETIES  177 

ization  of  this  industry  which  obviate  some  of  the  difficulties 
mentioned.  The  small  parochial  society  may  be  rehabilitated  in 
a  different  form.  As  the  more  frequent  concern  of  the  womenfolk, 
this  problem  has  been  turned  over  to  the  United  Irishwomen. 
Their  modest  efforts  have  met  with  some  success  and  seem  to 
indicate  considerable  possibilities.  Once  or  twice  a  week  the 
members  take  in  their  eggs  to  a  central  point  where  under  the 
direction  of  a  member  they  are  packed  for  shipment.  The  running 
expenses  are  small,  therefore,  and  the  product  suitable  for  a  very 
high  class  of  trade.  These  egg  circles  suffer  from  their  neces- 
sarily limited  size,  but  for  the  particular  demands  of  a  certain 
class  of  trade  they  may  prove  most  useful.  Much  depends  on 
the  executive  ability  of  the  members,  which  may  be  stimulated 
by  careful  guidance.  But  an  even  more  promising  solution  of  the 
problem  is  to  be  found  by  returning  to  the  original  plan  of  making 
the  egg  and  poultry  business  one  feature  of  a  more  general 
society. 

The  manager  of  a  creamery  has  all  the  necessary  facilities  at 
hand  to  deal  with  this  additional  business.  It  can  usually  be 
undertaken  without  any  increase  in  standing  plant  or  the  number 
of  workers.  No  system  of  collectors  is  necessary,  since  the  milk 
suppliers  call  regularly  at  the  creamery.  A  market  is  usually  at 
hand  in  the  business  connections  already  established.  This  ex- 
ceedingly economical  and  satisfactory  way  of  dealing  with  the 
problem  has  already  been  successful  in  many  of  the  creameries 
and  general  societies  throughout  Ireland.  It  is  chiefly  in  this 
direction  that  future  developments  are  to  be  expected. 

The  organization  of  the  egg  and  poultry  business  involves 
many  other  difficulties,  however,  in  addition  to  those  of  particular 
co-operative  procedure.  The  fact  that  this  industry  is  largely  in 
the  hands  of  the  women  has  endowed  it  with  particular  problems 
of  its  own.  They  have  considered  it  their  perquisite  and  resented 
the  introduction  of  the  societies,  whose  members  are  usually 
men,  thus  putting  an  end  to  a  source  of  "pin"  money. 


1 78        RURAL  RECONSTRUCTION  IN  IRELAND 

Thus  far  experience  would  indicate  that  Irishwomen  are  far 
less  co-operative  than  Irishmen.  The  sex,  largely  on  account  of 
the  nature  of  its  life  hitherto,  has  generally  shown  a  lack  of  asso- 
ciative qualities.  Trade-unionism  makes  slow  progress  among 
them,  for  the  same  reasons  which  make  them  poor  co-operators. 
The  allurement  of  the  glittering  pan  of  the  pedlar  or  of  the  half- 
penny more  per  dozen  he  willingly  offers  for  a  time  in  order  to 
put  an  end  to  the  co-operative  society  is  often  too  much.  The 
bargain  is  made  with  the  result  that  the  society  starves  and  dis- 
appears. A  binding  rule  such  as  exists  in  the  creameries  would, 
if  it  were  practicable,  meet  this  danger.  The  necessity  of  a  co- 
operative spirit  among  the  members  is  nowhere  better  illustrated. 
A  further  difficulty  exists  in  the  continued  lack  of  technical 
knowledge  which  has  here,  as  in  other  directions,  hampered  the 
development  of  co-operation.  Not  only  are  properly  qualified 
managers  uncommon,  but  also  the  members  have  been  slow  to 
grasp  the  importance  of  more  careful  production.  Advances  have 
no  doubt  been  made.  The  eggs  are  cleaner  and  are  packed  better; 
the  breed  of  poultry  has  been  improved.  Some  societies  succeed 
in  getting  as  good  prices  as  do  their  Danish  competitors.  It  is 
reported  that  an  English  buyer  on  one  occasion  telegraphed  to 
his  supplier,  the  Mallow  society,  "Asked  for  Irish  eggs.  Why  did 
you  send  Danish?" 

Purchase  of  eggs  on  the  basis  of  weight  rather  than  count  en- 
courages a  better  quality,  but  at  present,  unfortunately,  the 
practice  has  been  pretty  generally  abandoned.  It  has  proved 
impossible  to  introduce  date  stamping  on  the  eggs,  the  system 
which  has  revolutionized  Danish  egg  production.  Nothing  seems 
to  convince  the  Irish  farmer  that  it  is  not  good  business  to  hold 
over  eggs  in  the  autumn  for  the  inevitable  rise.  Energetic  and 
long-continued  efforts  will  be  necessary  to  overcome  these 
obstacles.  Much  may  be  accomplished  by  the  improvement  of 
marketing  facilities.  While  many  societies  sell  direct  to  the 
retailers,  some  form  of  central  organization  is  necessary.  For  a 


MISCELLANEOUS  SOCIETIES  179 

time  a  special  agency  for  this  purpose  existed,  but  it  was  later 
absorbed  by  the  I.A.W.S.  Unfortunately  the  tendency  is  for  the 
farmers  to  unload  only  surplus  or  inferior  stocks  on  this  body, 
which  on  its  side  has  been  remiss  in  not  insisting  on  standards. 
The  brand  which  the  I.A.W.S.  established  and  advertised  has 
scarcely  acquired  that  reputation  for  good  grading,  dry  packing 
and  freshness  at  which  its  promoters  aimed.  A  system  of  control 
such  as  has  already  been  introduced  for  the  marketing  of  butter 
is  a  possible  development.  The  consumption  of  eggs,  unlike  other 
products  for  which  substitutes  are  available,  seems  likely  to 
increase.  If  Irish  farmers  and  agricultural  laborers,  and  espe- 
cially Irishwomen,  are  to  profit  from  this  increased  demand,  the 
great  potentialities  of  the  industry  must  be  developed  by  a  wider 
application  of  the  co-operative  principle,  combined  with  a  better 
understanding  of  the  technical  details. 

Co-operative  organization  has  also  proved  its  value  in  the  flax 
industry.  When  the  English  put  an  end  through  Mercantilist 
legislation  to  the  manufacturing  of  woolens,  the  success  of  the 
venture  in  linen  brought  much  prosperity  to  the  north-east  of 
the  country.  Not  only  was  the  industry  itself  beneficial,  but  the 
cultivation  of  its  raw  material,  flax,  was  of  great  advantage  in 
the  country  districts.  However,  this  valuable  crop  declined 
seriously  during  the  latter  half  of  the  nineteenth  century. 
Whereas  in  1869,  229,178  acres  of  flax  were  under  cultivation, 
in  1887  there  were  only  130,284  acres;  1893,  67,487,  and  in  1899, 
34,989.  On  the  other  hand,  the  importation  of  foreign  flax  and 
yarn  had  increased  in  an  equal  ratio,  while  the  manufacture  of 
yarn  in  Ireland  had  decreased.  The  decline  in  the  cultivation  of 
flax  threatened  the  existence  of  the  linen  trade,  which  was  of  the 
greatest  importance  to  the  country. 

Many  explanations  for  the  situation  were  offered.  Most  im- 
portant, perhaps,  was  the  competition  of  Continental  countries, 
where  technical  education,  both  in  the  manufacture  of  linen  and 
in  the  cultivation  of  flax,  was  constantly  improving  the  methods 


i8o        RURAL  RECONSTRUCTION  IN  IRELAND 

of  production.  Without  a  good  supply  of  Irish  flax  the  Ulster 
linen  trade  was  doomed,  but  the  best  qualities  of  flax  came  from 
Belgium.  Some  growers  claimed  scarcity  of  labor  as  the  essential 
cause,  while  others  were  of  the  opinion  that  the  seeds  supplied, 
practically  all  of  which  were  imported  from  Russia  and  Holland, 
were  of  an  inferior  quality.  The  system  of  marketing  was  crude 
and  dangerous,  giving  opportunity  for  all  sorts  of  abuses  to  the 
great  detriment  of  the  producers.  No  doubt  all  these  factors  con- 
tributed to  the  result.  The  cultivation  of  flax  requires  not  only 
a  great  deal  of  labor,  but  also  a  very  skilled  form  of  labor.  Tech- 
nical education  and  a  better  organization  of  the  trade  were 
essential. 

The  attention  of  the  I.A.O.S.  was  called  to  the  flax  industry 
by  Mr.  Frank  B arbour,  who  presented  a  report  at  the  conference 
of  1900  on  "Co-operation  and  Flax  Cultivation  in  Ireland," 
pointing  out  the  serious  situation  existing  and  the  unfortunate 
effects  on  the  leading  manufacture  of  the  country.  As  the  way  out, 
he  suggested  the  co-operative  method.  This  report,  followed  in 
the  same  year  by  a  conference  between  growers  and  manufac- 
turers, led  to  the  devotion  of  considerable  attention  to  this  in- 
dustry and  to  the  employment  for  a  time  of  a  special  organizer 
for  co-operative  flax  societies. 

These  flax  societies,  five  of  which  were  started  in  1900,  were 
concerned  with  four  points:  the  purchase  of  seed,  the  production 
of  best  quality  flax,  proper  scutching,  and  the  sale  of  the  product. 
Instead  of  buying  seed  from  the  local  traders,  one  of  whom  had 
admitted  at  a  conference  mentioned  above  that  he  knew  or  cared 
nothing  about  its  quality,  these  societies  purchased  direct  from 
either  Holland  or  Russia.  The  actual  money  saving  for  farmers 
in  an  industry  where  seed  was  a  large  item  of  expense  was  a  step 
toward  greater  efficiency. 

More  important,  however,  were  the  efforts  to  improve  the 
methods  of  production.  Mr.  Barbour  had  proposed  the  employ- 
ment by  groups  of  co-operative  societies  of  traveling  instructors. 


MISCELLANEOUS  SOCIETIES  181 

This  was,  in  effect,  done  through  the  agency  of  the  I.A.W.S. 
And  this  industry,  now  becoming  through  the  co-operative  socie- 
ties more  articulate,  was  able  to  secure  assistance  from  the  newly 
established  Department  of  Agriculture  and  Technical  Instruction. 
Expert  advice  was  valuable,  not  only  in  the  production  of  the 
flax,  but  also  in  the  after-treatment  known  as  retting  and 
scutching.  In  the  latter  direction,  too,  co-operation  was  of  con- 
siderable advantage.  Many  of  the  societies  purchased  or  built, 
while  others  rented,  a  scutch  mill  and  were  able  to  carry  out  that 
rather  expensive  process  at  a  greatly  reduced  rate.  There  re- 
mained the  problem  of  marketing.  Under  the  existing  system  it 
was  claimed  that  the  buyers  formed  a  ring,  and  that  the  growers 
were  at  their  mercy.  Cases  where  only  one  buyer  attended  the 
market  were  not  unusual,  especially  in  districts  remote  from 
Belfast.  Therefore,  the  new  societies,  without  forming  a  market- 
ing federation,  did  for  some  time  combine  to  maintain  an  agent 
in  Belfast.  They  also  did  away  with  private  buying  on  the  mill 
premises  in  favor  of  an  open  market. 

The  number  of  flax  societies  has  not  grown  in  any  degree,  and 
the  flax  industry,  despite  considerable  efforts,  has  not  advanced 
far  out  of  the  depression  into  which  it  had  fallen.  The  area  under 
flax  has  shown  a  tendency  to  increase  slightly,  and  a  Committee 
of  the  Department  of  Agriculture  in  1910  reported  good  pros- 
pects. It  was  stated  in  this  report  that  while  organizations  of 
farmers  were  of  great  advantage  as  media  for  technical  education, 
they  "should  not,  unless  in  exceptional  circumstances,  undertake 
the  owning  or  renting  of  mills  for  the  scutching  of  their  members' 
flax."  Since  co-operative  societies  had  already  proved  of  value 
for  this  very  purpose,  the  influence  of  the  Department  has  been 
arrayed  here  as  in  other  cases  in  direct  opposition  to  the 
movement. 

The  statistics  for  1914  name  ten  co-operative  flax  societies, 
only  seven  of  which  furnished  any  returns.  The  most  successful, 
at  Castlefinn,  Co.  Donegal,  had  a  plant  valued  at  over  £2000, 


1 82        RURAL  RECONSTRUCTION  IN  IRELAND 

and  made  a  net  profit  for  the  season  of  about  10  per  cent,  of  that 
amount.  Several  societies  have  reserve  funds,  though  none  have 
accumulated  large  amounts.  Perhaps  the  most  interesting  recent 
development  is  the  formation  of  a  society  at  Avoca,  in  Co.  Wick- 
low.  At  one  time  there  was  considerable  flax  production  in  the 
southern  counties,  but  it  had  long  since  disappeared.  By  the 
formation  of  a  co-operative  society,  a  considerable  number  of 
farmers  have  taken  up  the  production  of  flax,  and  after  a  year's 
experience  are  enthusiastic  over  the  results.  Flax-growing  as  a 
field  for  co-operative  organization  undoubtedly  possesses  large 
but  unrealized  possibilities. 

Just  as  many  industrial  processes  have  succeeded  largely 
through  the  value  of  certain  by-products,  so  there  are  certain 
subsidiary  industries  connected  with  agriculture  which  may  be 
advantageously  developed.  In  addition  to  poultry,  which  has 
already  been  considered,  the  keeping  of  bees  offers  an  oppor- 
tunity for  a  considerable  profit  with  very  little  trouble.  At  present 
much  honey  goes  to  waste,  or,  rather,  is  not  produced  at  all.  And 
yet  the  demand  is  good  and  capable  of  great  expansion.  Aside 
from  the  fact  that  the  ordinary  layman  approaches  the  subject 
rather  cautiously,  the  causes  of  the  lack  of  the  development  have 
been  prohibitive  prices  of  the  few  requisites  and  the  low  returns 
for  honey  as  sold  in  the  usual  way. 

Beekeepers'  co-operative  societies  are  easily  formed,  since  they 
require  practically  no  capital.  Their  work  is  largely  done  through 
the  central  federation,  of  which  they  are  the  constituent  local 
units.  In  1902  the  Irish  Beekeepers'  Federation,  Ltd.,  was  created 
with  a  depot  in  Dublin.  It  dealt  with  the  requisites  of  the  industry, 
and  sold  the  product,  carefully  graded.  It  reported  that  prices 
obtained  were  from  70  to  100  per  cent,  higher,  and  that  the  cost 
of  appliances  was  reduced  from  2  5  to  50  per  cent.  Unfortunately, 
however,  interest  in  this  industry  was  allowed  to  lapse,  and  the 
few  societies  which  were  formed  have  now  disappeared.  The 
I.B.K.F.  has  been  superseded  by  a  honey  depot  of  the  I.A.W.S., 


MISCELLANEOUS  SOCIETIES  183 

and  a  special  society  for  the  encouragement  of  beekeeping  and  the 
proper  grading  of  the  honey  produced  has  been  formed.  The 
history  of  co-operation  in  this  industry  indicates  that  separate 
societies  for  comparatively  subsidiary  industries  do  not  succeed. 
Such  undertakings  are  to  be  provided  for  in  the  development  of 
the  more  general  type  of  society. 

It  is  surprising  to  find  that  the  largest  industry  in  agricultural 
Ireland  has  been  of  practically  no  importance  from  the  co-opera- 
tive point  of  view.  Cattle  forms  the  largest  item  among  the  agri- 
cultural produce  exported  from  the  country,  while  the  value  of 
the  sheep  and  pigs  sent  alive  across  the  Irish  Channel  is  of  but 
slightly  less  importance.  Some  of  the  more  undesirable  features 
of  this  trade  have  already  been  pointed  out.  Not  only  is  the  pro- 
duction of  beef  an  accompaniment  of  the  sparsely  populated 
districts  of  Central  Ireland,  where  the  few  inhabitants  have  no 
more  stimulating  occupation  than  to  watch  their  cattle,  but  also 
export  on  the  hoof  is  a  great  loss  to  the  country.  The  more  profit- 
able stages  of  beef  production  are  resigned  to  the  cross-Channel 
traders.  In  transit  to  England  they  lose  in  value  on  an  average 
£i  to  £i  i  os.  And  the  many  industries  which  centre  around  cattle- 
slaughtering  establishments,  the  making  of  fertilizers,  tanning, 
the  use  of  hides,  and  so  on,  are  lost  to  the  country. 

The  lamentable  facts  concerning  the  Irish  cattle  trade  do  not 
end  here.  An  extremely  costly  and  inefficient  system  of  marketing 
prevails.  The  numbers  of  middlemen  connected  with  the  trade  are 
very  numerous  and  powerful.  An  attempt  of  the  Midland  Great 
Western  Railway  to  start  an  abattoir  at  Dromod  in  1883  failed 
on  account  of  their  opposition. 

In  Waterford  in  1896  it  is  stated  that  there  were  three  hundred 
pig  buyers,  and  a  large  proportion  of  them  not  bona  fide.  In  the 
markets  the  producer  came  off  very  badly.  Not  only  were  there 
often  combinations  against  him,  but  also  the  accepted  practices 
were  all  to  his  disadvantage.  Purchase  was  not  by  the  weight, 
which  would  have  given  the  seller  some  assurance  of  a  fair  return, 


1 84        RURAL  RECONSTRUCTION  IN  IRELAND 

but  by  the  beast.  Inasmuch  as  the  buyers  were  interested  in 
nothing  else,  their  estimate  was  much  more  likely  to  be  exact 
than  that  of  the  producer,  who  in  this  matter  was  a  comparative 
amateur.  Furthermore,  the  custom  had  been  established  that  as 
long  as  a  buyer  was  attempting  to  make  a  deal  no  other  buyer 
should  intervene.  Thus  there  appeared  the  class  known  as 
blockers,  who  stood  by  a  seller  throughout  the  market,  and, 
finally,  when  no  other  alternative  save  the  expensive  process  of 
taking  the  beast  home  again  was  left,  bought  him  at  their  own 
price.  In  the  pig  trade  there  were  no  less  than  three  interme- 
diaries: jobber,  broker  and  buyer,  all  of  whom  exacted  a  tribute. 
The  live-stock  trade  may  be  of  the  greatest  importance  in  Ire- 
land, but  it  is  not  conducted  in  such  a  way  as  to  give  the  pro- 
ducers on  the  land  a  fair  share  of  the  ultimate  return. 

The  importance  of  these  industries  secured  much  attention 
as  to  the  manner  in  which  they  might  be  organized  on  a  co- 
operative basis,  while  the  extent  and  value  of  the  business  made 
the  problem  exceedingly  difficult.  At  first  some  attention  was 
given  to  co-operation  for  breeding  purposes,  but  that  work  was 
later  taken  over  by  the  Department  and  the  County  Committees 
of  Agriculture.  The  real  place  for  co-operation  was  in  the 
slaughter  of  this  live  stock  for  the  markets.  Obviously  the  capital 
needs  of  this  industry,  and  the  necessity  of  organization  on  a  large 
scale,  constituted  a  problem  quite  distinct  from  any  hitherto 
discussed.  An  investigator  who  had  visited  Denmark  in  1895  to 
study  the  organization  of  the  co-operative  bacon  factories  there, 
reported  against  any  rapid  developments  in  Ireland.  It  was  not 
until  1909,  by  the  formation  of  the  Roscrea  Co-operative  Bacon 
Factory,  that  the  experiment  was  made.  The  capital  supplied  by 
the  members  was  not  sufficient,  but  friends  of  the  movement 
made  up  the  deficit.  Though  very  severe  competition  was  faced, 
Roscrea  bacon  immediately  found  a  ready  market.  The  farmers 
realized  the  new  scheme  was  of  advantage,  and  have  supported 
it  with  enthusiasm.  In  1914  the  total  membership  was  nearly 


MISCELLANEOUS  SOCIETIES  185 

4000,  the  share  capital  invested  by  members  £13,000,  and  the 
turnover  on  which  a  profit  of  £1600  was  made  reached  the 
impressive  figure  of  £58,500.* 

The  chief  problem  in  connection  with  societies  of  this  nature, 
once  the  initial  difficulty  of  capital  has  been  overcome,  is  the 
maintenance  of  the  supply  of  raw  materials.  For  this  purpose  the 
binding  rule,  which,  as  we  have  seen,  is  of  great  value  in  connec- 
tion with  other  types  of  societies,  has  been  employed.  The  society 
has  the  right  of  pre-emption  on  all  pigs  of  a  certain  weight  which 
members  may  have  for  sale,  and  for  each  infringement  of  this 
rule  a  penalty  of  IDS.  may  be  imposed.  Another  important  con- 
sideration is  the  method  of  payment  for  pigs  supplied.  In  the 
ordinary  markets  the  producer  received  cash  on  the  spot,  and 
so  naturally  demanded  the  same  treatment  from  his  own  society. 
This  practice  has  several  disadvantages  from  the  point  of  view 
of  the  society,  since  it  ties  up  a  considerable  amount  of  capital, 
and,  moreover,  requires  an  assessment  of  costs  before  the  actual 
results  from  the  purchase  are  attained.  By  buying  at  the  market 
price  the  society  runs  a  danger  from  fluctuations  in  prices,  which 
in  this  industry  are  very  great.  A  more  satisfactory  procedure 
would  be  the  withholding  of  at  least  a  portion  of  the  price  until 
the  product  has  been  sold  on  the  market.  But  as  far  as  Roscrea 
is  concerned  this  must  be  a  later  development. 

The  dressed  meat  trade  offered  even  more  serious  problems 
commensurate  with  the  larger  scale  of  the  operations. 

Various  efforts  have  been  made,  including  an  effort  to  set  up 
a  large  abattoir  in  Dublin  on  semi-co-operative  lines,  but  of  these 
only  one  has  been  successful.  The  Wexford  Meat  Society,  Ltd., 
was  founded  in  1909,  soon  after  Roscrea.  A  large  number  of 
so-called  pig  and  cattle  societies  were  first  formed  throughout 
the  country  as  an  expedient  to  raise  the  necessary  capital  and  to 
organize  tie  supply.  Though  such  local  organization  seems  to 

*The  success  of  Roscrea  Bacon  Factory  has  recently  been  demonstrated  by  its 
undertaking  the  supply  of  electric  light  to  the  town. 


1 86        RURAL  RECONSTRUCTION  IN  IRELAND 

have  been  of  value  in  the  early  stages,  these  societies  are  now 
quiescent.  The  Wexford  Meat  Supply,  Ltd.,  deals  with  cattle, 
sheep  and  pigs.  In  addition  to  fresh  meat,  it  produces  sausages, 
pork-pies,  brawn,  etc.  The  by-products  department  is  of  increas- 
ing importance,  already  making  fertilizers,  refined  beef  suet,  oleo 
oil,  stearine  and  soap.  The  report  for  1914  showed  a  turnover  of 
£116,000,  of  which  £1600  was  clear  profit.  Payment  for  live  stock 
supplied  is,  unlike  Roscrea,  by  result.  In  addition  to  insuring  fair 
payments,  this  society  as  well  as  Roscrea  has  had  several  inci- 
dental results.  As  this  type  of  business  is  done  by  large  farmers, 
they  have  been  brought  into  the  movement,  proving  that  co- 
operation is  not  only  a  poor  man's  remedy.  The  payment  by 
weight  and  results  has  encouraged  an  improvement  in  the  class 
of  stock  kept.  It  is  said  that  the  apparently  better  prices  paid 
at  Roscrea  are  largely  from  this  cause.  Since  fattening  for 
slaughter  may  now  take  place  in  Ireland,  tillage,  which  is  neces- 
sary for  stall-feeding  in  the  last  stages,  has  been  encouraged. 

And,  moreover,  the  Irish  farmers  are  protected  from  the 
danger  of  restrictions  on  export  such  as  occurred  during  the  out- 
break of  the  foot-and-mouth  disease  in  1912.  Wexford  farmers, 
on  account  of  their  society,  were  unaffected  by  the  general  dis- 
location of  the  live-stock  trade  which  took  place  throughout  the 
country. 

While  extreme  centralization  has  been  carried  out  in  these  two 
important  instances,  co-operation  may  be  effectively  applied  to 
the  live-stock  trade  on  a  local  basis  with  considerable  success. 
Bacon  curing  and  slaughtering  on  a  small  scale  by  more  general 
societies  and  for  local  consumption  have  already  been  taken  up 
in  some  places,  and  this  seems  a  step  in  that  local  organization 
which  is  the  ideal  aim  of  the  co-operative  movement.  It  is  a 
remarkable  fact  that  Ireland,  an  agricultural  country,  imports  a 
very  large  variety  and  value  of  agricultural  produce.  This  is 
particularly  surprising  in  view  of  the  fact  that  these  imports  are 
largely  of  the  same  nature  as  her  exports.  One  is  not  surprised 


MISCELLANEOUS  SOCIETIES  187 

to  see  rice  and  bananas  on  the  unloading  ways  at  Irish  ports,  but 
to  see  one  ship  loading  with  Irish  bacon,  while  another  discharges 
a  cargo  of  American  bacon,  which  eventually  finds  its  way  into 
the  very  communities  from  which  export  was  made,  is  more  diffi- 
cult to  explain.  By  local  curing,  the  superior  Irish  product  may 
be  secured  for  the  Irish  farmer  at  no  increased  price  over  that 
demanded  for  the  inferior  product  of  the  Chicago  packing  house. 
To  add  this  activity  to  the  work  of  a  creamery  or  an  agricultural 
store  does  not  involve  large  outlays  or  new  machinery  of  organ- 
ization. The  co-operative  society  of  whatever  form  must  event- 
ually organize  all  the  business  interests  of  the  community,  and 
by  engaging  in  bacon  curing  and  slaughtering  on  a  small  scale 
for  its  local  business,  as  is  done  already  at  Athenry,  Lombards- 
town,  Belleek,  and  other  places,  a  step  in  that  direction  is  effected. 

This  same  principle  of  local  food  production  for  local  needs  is 
applied  in  the  business  of  milling  their  members'  grain,  which 
several  societies  are  now  taking  up.  In  fact,  one  society  has  been 
formed  for  this  single  purpose.  As  a  commercial  undertaking  on 
a  large  scale  this  innovation  would  hardly  succeed  under  normal 
conditions  of  world  competition;  but  the  grinding  of  wheat  and 
oats  for  local  consumption  does  not  seem  to  involve  any  question. 
In  our  haste  to  establish  industry  on  a  large  scale,  we  have  too 
often  overlooked  the  possibility  of  the  small  local  unit.  Milling 
of  this  sort  may  best  be  carried  on  as  subsidiary  to  societies 
already  in  existence,  utilizing  effectively  their  machinery  and 
staff. 

An  interesting  experiment  in  co-operative  wheat  growing, 
another  development  which  may  be  attributed  to  war  conditions, 
is  now  being  carried  on  at  Foynes,  County  Limerick. 

Although  in  other  countries,  such  as  Italy,  Rumania  and  Hun- 
gary, co-operative  farming  has  been  carried  on  with  great  success, 
in  Ireland  there  has  been  nothing  along  this  line,  since  the  ill- 
fated  experiment  at  Ralahine,  except  for  several  attempts  in  the 
early  years  of  the  movement  to  form  co-operative  grazing  socie- 


1 88        RURAL  RECONSTRUCTION  IN  IRELAND 

ties.  In  the  societies  which  we  have  already  discussed,  the  organ- 
ization has  been  for  carrying  out  some  particular  business  in 
connection  with  agriculture,  not  for  carrying  on  agriculture  itself. 
The  Foynes  Society  is,  therefore,  a  new  departure.  Started  with 
the  help  of  Lord  Monteagle,  who  has  been  one  of  the  most  con- 
stant and  enthusiastic  of  the  co-operative  leaders,  and  whose 
particular  interest  in  the  problem  of  the  agricultural  laborer  was 
the  chief  reason  for  undertaking  this  experiment,  it  has  now  com- 
pleted a  successful  year.  Twenty-eight  men — a  number  already 
significant  in  co-operative  history — most  of  them  laborers,  with- 
out land  for  wheat  growing,  were  carefully  chosen.  The  land  was 
hired,  manures  and  seeds  secured,  and  the  ground  prepared  by 
the  society,  and  the  members  shared  the  good  crop  which  was 
made  into  flour  and  used  by  them  in  their  own  homes.  Combined 
with  the  general  store  which  has  been  started  in  the  same  district, 
this  society  seems  to  promise  much  for  the  agricultural  laborer. 

Co-operative  agriculture  is,  some  people  have  claimed,  the 
logical  step  after  agricultural  co-operation.  As  the  Rochdale 
pioneers  proposed  that  eventually  their  society  should  attack  the 
question  of  production  directly,  so  it  is  said  agricultural  co- 
operators  will  find  that  they  can  best  carry  on  their  production 
in  common.  But  the  facts  of  the  situation  in  Ireland  do  not  seem 
likely  to  encourage  a  large  development  in  this  direction.  For  the 
landless  laborers,  no  doubt,  enterprises  like  the  Co-operative 
Wheat-growing  Society  at  Foynes  have  a  great  value,  and  this 
organization  may  well  be  copied  in  other  parts  of  the  country. 
But  for  the  rest,  the  existence  of  a  system  of  peasant  proprietors 
is  an  effective  bar.  Co-operation  for  them  is  a  method  which  will 
help  to  conduct  certain  of  their  business  interests  more  success- 
fully; they  will  not,  however,  surrender  their  land  or  their 
primary  occupation  as  farmers  to  any  kind  of  community 
organization. 

Among  the  industries  along  the  West  coast  of  Ireland,  to  which 
the  unfavorable  conditions  for  agriculture  have  given  a  consider- 


MISCELLANEOUS  SOCIETIES  189 

able  importance,  is  sea-fishing.  The  Congested  Districts  Board 
has  always  devoted  attention  to  this  activity  and  has  striven  to 
aid  in  the  provision  of  boats,  nets,  landing-stages,  and  marketing 
facilities.  But  recognizing  the  necessity  of  stimulating  individual 
effort  if  permanent  improvements  were  to  be  attained,  and  dis- 
countenancing its  own  position  as  a  trading  body  in  this  matter, 
the  Board  in  1916  assisted  in  the  formation  of  a  co-operative 
society  of  fishermen  in  the  Aran  Isles.  This  society,  which  is 
mainly  for  carrying  out  marketing  arrangements,  has  already 
proved  of  considerable  advantage  to  fishermen. 

The  prices  paid  have  been  from  50  to  100  per  cent,  larger  than 
before  the  society  came  into  existence,  and  this  does  not  include 
the  profit  on  the  first  year's  trade.  The  middleman  buyer  has 
been  eliminated,  and  the  closer  organization  and  relationship  to 
distant  markets — even  Boston,  Massachusetts,  offering  a  good 
market  for  the  salt  mackerel  and  herring  of  the  new  "Shamrock" 
brand — have  enabled  a  longer  season  and  more  advantageous 
sales.  This  society  has  bound  its  members  to  sell  their  catch  to 
it  on  penalty  of  a  severe  fine,  as  in  the  case  of  the  dairy  societies. 
This  position  has  been  most  successful,  and  has  insured  the 
loyalty  of  all  members  at  all  times.  It  is  now  proposed  to  take 
up  the  manufacture  of  the  barrels  which  are  used — a  form  of 
rural  industry  which  will  serve  to  fill  the  gaps  between  the  fishing 
seasons.  The  success  of  the  Aran  Islands  Fishing  Society  indicates 
large  possibilities  in  the  organization  of  this  industry  along  the 
western  coast  of  the  country. 

One  of  the  more  obvious  applications  of  the  co-operative  prin- 
ciple lies  in  the  field  of  insurance.  Many,  in  fact,  of  the  existing 
companies  are  co-operative  or  mutual,  and  the  holders  of  the 
policies  share  to  an  extent  in  the  profits.  The  necessity  of  various 
forms  of  insurance  in  connection  with  agriculture  in  Ireland  is 
clear. 

There  are  certain  contingencies  in  this,  as  in  other  businesses, 
for  which  the  individual  alone  cannot  make  adequate  allowance. 


RURAL  RECONSTRUCTION  IN  IRELAND 

Inasmuch  as  the  farmer's  business  is  in  most  cases  on  a  small 
scale,  insurance  is  for  him  of  special  importance.  It  may  cover 
various  fields,  such  as  workmen's  compensation,  live  stock,  fire 
and  fidelity  guarantees.  The  machinery  for  this  insurance  is  not 
an  Irish  creation,  but  is  carried  out  through  the  Co-operative 
Insurance  Company  of  England,  now  a  branch  of  the  C.W.S.  Its 
particular  mode  of  working  is  not  important.  Suffice  it  to  say  that 
in  insurance  schemes  large  numbers  are  essential.  The  scheme 
must,  therefore,  in  most  cases  be  worked  by  a  large  central  body, 
and  is  a  development  of  co-operation  which  can  come  only  when 
the  movement  as  a  whole  has  acquired  some  strength. 

While  co-operative  insurance  is  on  the  whole  a  matter  for  the 
central  organization  rather  than  local  co-operative  societies, 
under  some  conditions  the  local  unit  may  be  very  effectively  em- 
ployed. Live-stock  insurance  has  always  proved  a  serious  prob- 
lem for  large  insurance  companies.  So  many  facts  must  be  taken 
into  consideration  that  the  outsider  may  be  very  badly  taken  in. 
Yet  this  form  of  insurance  is  of  extreme  importance,  especially 
for  small  farmers  who  have  invested  a  comparatively  large  capital 
in  live  stock.  Many  efforts  have  been  made  to  introduce  such 
insurance  into  Ireland,  and  of  these,  the  so-called  Whitecross 
system  seems  most  successful.  This  system  has  now  been  in 
operation  in  the  Whitecross  Dairy  Society  for  the  past  six  years. 

The  contributions  are  fixed  annually,  and  are  deducted  from 
each  monthly  milk  payment  on  the  basis  of  the  value  of  the  milk 
supplied  by  each  individual.  For  the  first  year  of  membership  in 
the  scheme  no  compensation  will  be  paid,  but  thereafter,  on  cer- 
tain conditions,  payment  based  on  the  average  value  per  cow  of 
the  milk  supplied  by  the  member  in  the  preceding  year  is  made. 
Thus  far  no  other  societies  have  adopted  the  scheme,  and  rein- 
surance in  a  central  society,  which  would  strengthen  the  system, 
has,  therefore,  been  impossible. 

This  chapter  would  hardly  be  complete  without  mention  of 
the  important  lime-burning  societies.  Their  importance  does  not 


MISCELLANEOUS  SOCIETIES  191 

lie  in  the  fact  that  they  are  particularly  numerous,  or  particularly 
successful,  or  that  their  work  has  been  of  extraordinary  value 
in  the  economic  regeneration  of  the  country.  There  were  two  such 
societies  reported  in  1915  having  a  membership  of  about  800,  and 
a  turnover  for  the  year  of  about  £600.  But  these  societies  possess 
the  unique  distinction  of  having  received  the  official  commenda- 
tion and  encouragement  of  the  Department  of  Agriculture  under 
its  present  regime.  They  embrace  the  familiar  group  of  non- 
controversial  co-operative  societies.  The  burning  of  limestone  had 
practically  disappeared  from  Ireland,  and  new  societies  formed 
for  this  purpose  would  be  an  injury  to  none.  No  doubt  previous 
owners  of  lime-kilns  turned  in  their  graves,  but  progress  could 
safely  ignore  them. 

The  achievements  of  co-operation  in  Ireland  have  been  meas- 
urably increased  by  this  dangerously  revolutionary  and  highly 
successful  excursion  of  the  Department. 

From  time  to  time  various  experiments  in  co-operative  organ- 
ization, such  as  those  in  connection  with  tobacco-growing  and 
fruit  culture,  have  been  made.  Their  importance  consists  rather 
in  indicating  the  further  potentialities  of  the  movement  than  in 
their  practical  achievements.  All  of  the  industries  which  we  have 
considered,  and  many  others,  may  profit  from  some  form  of 
co-operative  organization,  and  in  the  few  cases  in  which  societies 
have  been  formed  have  so  profited.  But  the  I.A.O.S.  has  never 
been  in  a  position  to  devote  much  attention  to  them,  and  has 
directed  its  efforts  along  lines  of  proven  utility.  The  business  of 
the  agriculturist  offers  a  wide  field  for  the  application  of  the 
co-operative  ideal.  As  the  co-operative  principle  comes  to  be 
understood  and  accepted  throughout  the  country,  this  experi- 
mental work  in  a  large  number  of  directions  will  come  to  fruition. 


CHAPTER  XI 
HOME  INDUSTRIES 

IN  every  country  where  the  greater  part  of  the  population  is 
engaged  in  agriculture  on  a  small  scale  the  need  is  felt  for  the 
preservation  of  certain  more  or  less  primitive  industries.  It  is 
true  that  in  such  countries  as  Belgium  and  Denmark  where  agri- 
culture is  fully  developed,  these  industries  are  practically  extinct. 
Their  place  is  taken  in  Belgium  by  the  large  number  of  indus- 
trial centres  which  exist  in  the  midst  of  the  agricultural  popu- 
lation, while  in  Denmark  the  system  of  popular  education  and 
the  intensive  business  organization  of  agriculture  have  taken  the 
place  of  everything  else. 

In  Ireland,  however,  we  have  great  expanses  of  country  un- 
redeemed by  any  outlet  for  the  energies  of  the  people  beyond 
the  somewhat  wearisome  work  of  an  unremunerative  small 
holding,  and  in  these  districts  it  is  most  natural  to  expect  that 
cottage  industries  will  be  found.  These  industries  are  of  two 
main  types;  those  which  have  survived  and  carried  on  an  un- 
broken tradition  since  the  days  when  they  were  a  part  of  the 
economic  life  of  the  community,  and  those  which  may  or  may 
not  have  been  traditional  at  one  time  but  which  would  not  exist 
under  modern  conditions  were  it  not  for  the  determined  efforts 
by  which  philanthropic  or  aesthetic  enthusiasts  have  either  revived 
or  created  them. 

Ireland  is  a  country  in  which  both  these  types  are  certain  to 
be  found.  The  first  type,  that  is  to  say  the  survival  of  the  primi- 
tive, is  natural  in  districts  which  have  not  been  swept  by  a  gener- 
ation of  strangers  seeking  some  easy  road  to  prosperity,  and  the 

192 


HOME  INDUSTRIES  193 

West  coast  of  Ireland  fulfils  this  condition  as  well  as  almost  any 
district  in  Europe.  Here  there  are  no  minerals,  or  at  any  rate 
none  have  so  far  been  thought  worth  exploiting,  no  great  facto- 
ries, and  no  great  commercial  centres.  Even  tourist  traffic  is  in 
its  infancy,  and  no  people  pass  through  this  part  of  the  country 
on  their  way  to  anywhere  else  for  the  simple  reason  that  the  next 
place  is  3000  miles  away  and  no  communications  have  been 
established  except  by  wireless  telegraphy.  For  a  population  which 
has  been  less  disturbed  by  the  advantages  and  also  the  disad- 
vantages of  civilization  we  should  have  to  go  to  Quebec  or  parts 
of  the  Russian  Empire. 

The  second  type  of  home  industry,  that  which  owes  its  origin 
to  sentimental  or  aesthetic  considerations,  has  also  a  favorable 
field  in  Ireland.  There  are  a  very  large  number  of  people  who 
wish  above  all  things  to  revive  anything  which  they  consider 
traditionally  Irish,  and  to  these  people  the  idea  of  the  peasant 
art  must  necessarily  appeal.  Since  industry  on  a  large  scale  has 
for  many  years  been  practically  a  monopoly  of  the  predominant 
partner  in  the  United  Kingdom,  those  who  seek  for  a  genuinely 
Irish  manifestation  must  go  to  some  form  of  art  or  industry 
which  by  its  nature  is  adapted  only  to  operations  on  a  small  scale. 

Quite  apart  from  these  academic  arguments  there  are  various 
practical  reasons  why  we  might  expect  that  home  industries 
would  be  particularly  valuable  in  Ireland.  In  the  first  place,  the 
majority  of  the  holdings  which  exist  in  the  more  backward  parts 
of  the  Congested  Districts — among  the  mountains  and  along  the 
sea  coast  of  Donegal,  Mayo,  Clare,  and  Kerry — are  uneconomic 
holdings  which  do  not  produce  sufficient  to  maintain  the  occupier 
and  his  family  above  the  level  of  primary  poverty.  In  these  cir- 
cumstances a  source  of  income  beyond  that  derived  from  farming 
is  necessary,  and  such  subsidiary  income  might  well  be  earned 
by  the  women  of  the  family  practising  some  form  of  cottage 
industry.  Secondly,  in  those  districts  where  farming  is  in  a  more 
advanced  stage,  it  is  often  urged  that  the  introduction  of  such 


194        RURAL  RECONSTRUCTION  IN  IRELAND 

innovations  as  creamery  butter-making  in  the  place  of  the  old- 
fashioned  churning  process  has  robbed  the  women  of  the  family 
of  their  chief  occupation  and  left  them  in  a  state  of  undesirable 
idleness.  It  is  certainly  true  that  the  whole  economic  control  of 
life  tends  more  and  more  to  become  concentrated  in  the  man  of 
the  family  on  the  average  Irish  farm,  and  it  is  arguable  that  a 
remedy  for  this  may  be  found  in  the  organization  of  the  women. 

These  are  the  premises  which  would  lead  us  to  expect  a  con- 
siderable development  of  home  industries  in  Ireland.  The  advo- 
cate of  such  a  development  will  have  many  strong  arguments  to 
put  forward.  It  is  widely  realized  that  one  of  the  chief  reasons 
which  drives  the  most  enterprising  of  the  young  men  and,  even 
more  noticeably  of  late  years,  the  young  women  of  Ireland  to 
emigrate  to  the  United  States  or  Canada  is  the  low  standard 
of  comfort  in  the  home  life  of  the  average  farmer,  which  is 
accompanied  by  a  monotony  of  work  and  a  lack  of  any  outlet 
for  superfluous  energies.  These  conditions  weigh  more  heavily 
on  the  women  than  on  the  men,  for  the  latter  may  be  rendered 
less  sensitive  by  the  very  hardness  of  their  daily  work,  or  in  too 
many  cases  they  may  find  a  refuge  in  that  never-failing  meeting- 
place,  the  village  public-house.  To  meet  this  depressing  state  of 
things  for  the  women  and  to  counteract  the  tendency  to  emi- 
grate, the  organization  of  home  industries  is  claimed  to  be  essen- 
tial. Further  arguments  based  upon  the  necessity  of  supplement- 
ing the  income  of  the  family,  of  improving  the  standard  of 
women's  intelligence  and  energy  and  thereby  raising  the  con- 
sideration (now  lamentably  small)  in  which  they  are  held  by  the 
men  of  the  country,  of  reviving  artistic  tradition  and  the  appre- 
ciation of  cleanliness  and  neatness,  and  so  bringing  about  the 
brightness  of  the  home  and  of  the  social  atmosphere  generally, 
can  easily  be  supplied. 

The  only  home  industries  existing  in  Ireland  on  a  scale  suffi- 
ciently large  to  command  attention  are  those  of  the  manufacture 
of  homespuns,  hand-knitting,  lace-making,  embroidery  and 


HOME  INDUSTRIES  195 

carpet-making.  Of  these  only  the  first  two,  and  more  particularly 
the  manufacture  of  homespun,  locally  known  as  frieze,  are 
genuine  home  industries  in  the  sense  of  being  survivals  of  a  craft 
designed  to  meet  the  needs  of  the  people  themselves.  The  others 
depend  entirely,  and  even  the  first  two  depend  largely,  upon  the 
possibility  of  finding  a  suitable  market.  Those  who  practise  these 
industries  are  producing  not  for  use  but  for  exchange.  It  is  argu- 
able that  in  this  fact  lies  the  secret  of  the  difficulties  which  have 
beset  the  development  of  these  industries  of  late  years.  When  a 
group  of  people  are  producing  for  exchange  they  are  brought 
sharply  into  competition  with  commercial  bodies  which  are  thor- 
oughly organized  and  in  touch  with  the  markets  of  the  world. 
If  the  unskilled  peasantry  who  develop  these  home  industries 
are  to  meet  this  competition  they  must  have  some  form  of  assist- 
ance. This  assistance  may  take  the  form  of  Government  aid, 
philanthropic  support,  or  co-operative  organization.  On  the  other 
hand,  it  may  be  possible  for  a  limited  number  of  producers  to 
rely  upon  the  aesthetic  appeal  of  their  products  to  bring  them  into 
touch  with  a  special  class  of  purchasers.  Such  a  system,  however, 
must  necessarily  be  very  limited  in  its  application  under  modern 
conditions.  The  number  of  people  who  really  appreciate  the 
difference  between  the  hand-made  and  the  machine-made  article 
in  the  case  of  either  tweed  or  lace  is  comparatively  speaking 
small;  the  number  of  those  who  are  prepared  to  back  up  their 
appreciation  to  the  extent  of  paying  the  higher  price  of  the  home 
product  is  much  smaller.  Industries  based  on  this  personal  appeal 
frequently  spring  up  as  a  result  of  some  local  patronage  and 
flourish  exceedingly  for  a  few  years,  only  to  decay  when  fashions 
change  or  the  particular  circle  of  people  who  supported  them  is 
dispersed. 

But  those  cottagers  who  produce  by  their  own  labors  an  article 
which  is  seen  to  have  some  commercial  value,  and  who  do  not 
enjoy  any  of  the  forms  of  assistance  we  have  named,  are  inevi- 
tably threatened  with  the  evils  of  sweating  and  with  the  tempta- 


1 96        RURAL  RECONSTRUCTION  IN  IRELAND 

tion  to  turn  out  quicker  and  more  remunerative  but  less  genuine 
and  artistic  work.  Very  frequently  both  these  evils  overtake  them 
simultaneously. 

All  the  forms  of  development,  both  good  and  bad,  which  we 
have  described,  are  illustrated  in  the  history  of  Irish  home  in- 
dustries. Without  going  into  them  in  detail  we  may  sketch  briefly 
what  has  taken  place  of  recent  years  in  regard  to  the  more 
important  of  the  industries. 

Irish  hand-made  lace  has  enjoyed  for  many  years  a  consider- 
able reputation  both  in  England  and  in  America,  and  some 
varieties  have  always  commanded  a  ready  sale  in  Paris.  The 
greater  part  of  this  lace  is  made  by  young  girls  under  the  instruc- 
tion either  of  the  Congested  Districts  Board,  the  Department, 
or  the  various  religious  orders.  Before  the  days  of  the  Congested 
Districts  Board  lace-making  was  encouraged  by  a  committee 
formed  in  London  by  Mr.  A.  S.  Cole,  which  awarded  prizes  for 
good  designs.  This  committee  arose  out  of  a  visit  paid  to  the 
Cork  Exhibition  in  1888,  where  a  large  amount  of  lace  was 
exhibited  by  the  Convents  in  the  South  of  Ireland.  Mr.  James 
Brennan,  R.H.A.,  accompanied  Mr.  Cole  on  this  occasion,  and 
they  noticed  that  though  the  needlework  was  excellent  the  design 
and  drawing  were  very  bad.  As  a  result  Mr.  Cole  formed  the 
committee  alluded  to,  while  Mr.  Brennan  persuaded  the  South 
Kensington  Department  of  Science  and  Art  to  form  classes  in 
connection  with  the  Convents  in  which  the  art  of  design  should 
be  taught.  These  classes  were  the  genesis  of  the  modern  system 
of  instruction  under  the  Congested  Districts  Board. 

Meanwhile  the  work  of  encouragement  begun  by  Mr.  Cole 
was  carried  on  by  the  Irish  Lace  Depot  which  was  established 
in  Dublin  by  Mr.  Lindsay.  After  the  latter's  death  it  was  taken 
over  by  Lady  Aberdeen,  who  made  it  into  a  limited  liability  com- 
pany with  a  provision  in  the  constitution  that  no  dividend  should 
be  paid  on  the  shares.  This  Depot  supplied  designs  to  lace- 
workers'  organizations,  paid  market  prices  for  their  lace,  and 


HOME  INDUSTRIES  197 

sold  it  as  well  as  possible.  After  expenses  were  paid  the  surplus 
was  returned  to  the  workers  in  proportion  to  the  amount  of  lace 
supplied,  on  the  true  co-operative  principle.  The  Depot  also 
provided  teachers  free  for  organizations  which  were  too  poor  to 
pay  for  such  service.  The  sales  of  lace  from  this  Depot  in  1900 
amounted  to  £23,000  and  the  grants  to  workers  £400.  Work  of 
a  similar  nature  was  done  in  London  by  the  Irish  Industries 
Association  for  which  Lady  Cadogan  was  largely  responsible, 
and  prizes  have  been  given  each  year  by  the  Royal  Dublin 
Society.  It  may  be  seen,  therefore,  that  Irish  lace-workers  were 
provided  with  every  stimulus  to  increase  production. 

Nor  was  the  co-operative  movement  behindhand  in  playing  its 
part.  The  anonymous  writer  of  an  article  on  the  marketing  of 
Irish  lace,  written  in  1901,*  to  whom  we  are  indebted  for  many 
of  these  facts,  has  this  to  say:  "At  the  same  time  that  Lady 
Aberdeen  was  carrying  out  this  scheme  (i.e.  the  reorganization 
of  the  Lace  Depot)  Mr.  Horace  Plunkett  and  his  associates  were 
spreading  the  knowledge  of  co-operative  methods  and  organizing 
co-operative  societies  in  the  rural  districts  of  Ireland.  Co- 
operative associations  of  lace-workers  were  formed  early  in  the 
movement  and  these  increased  in  number  and  efficiency  as  the 
movement  spread  and  took  firmer  and  firmer  hold  of  the  country. 
In  the  co-operative  societies  the  directors  of  the  Lace  Depot 
found  steady  sources  of  supply.  Instruction  could  be  readily  given 
to  societies  thus  organized,  the  execution  of  large  orders  could 
be  counted  on,  and  the  development  of  a  trade  constantly  increas- 
ing in  volume  and  value  became  possible.  The  organization  intro- 
duced by  the  Congested  Districts  Board  coincided  with  the 
growth  of  co-operation  and  helped  to  the  same  end."  The  same 
writer  concludes  his  article  with  the  following  sentence:  "With 
twenty-three  co-operative  societies  of  lace-workers,  sixteen  suc- 
cessful schools  under  the  Congested  Districts  Board,  and  a  large 

*  "The  Marketing  of  Irish  Lace"  ("Ireland,  Industrial  and  Agricultural") ,  Dublin, 
1902,  p.  434. 


i  g8        RURAL  RECONSTRUCTION  IN  IRELAND 

number  of  unorganized  workers  furnishing  an  abundant  supply, 
and  the  Lace  Depot  and  other  agencies  opening  the  way  to  the 
market,  the  prospects  of  the  lace  industries  in  Ireland  are 
distinctly  hopeful."* 

Unfortunately  these  bright  hopes  have  not  been  fully  realized 
owing  to  the  difficulties  connected  with  the  marketing  of  the 
lace.  The  classes  of  the  Congested  Districts  Board  increased  with 
great  rapidity,  and  their  turnover  reached  as  high  a  figure  as 
£30,000  in  a  year.  But  the  Board  had  to  complain  year  by  year 
of  the  difficulty  of  inducing  workers  either  to  adopt  new  patterns 
in  obedience  to  the  demands  of  the  market,  or  to  observe  those 
habits  of  punctuality  and  accuracy  which  were  necessary  for  suc- 
cess in  dealing  with  large  commercial  buyers.  As  fashions  changed 
and  the  competition  of  machine-made  lace  grew  keener,  these 
factors  told  seriously  against  the  Irish  producer,  and  there  were 
soon  ominous  signs  that  the  market  was  being  glutted.  The 
I.A.O.S.  realized  this  at  an  early  stage,  and  after  vainly  trying  to 
bring  about  some  trade  federation  which  would  enable  the  socie- 
ties to  find  favorable  markets,  it  decided  to  discontinue  this  form 
of  organization.  Before  very  long  the  existing  societies  began  to 
fade  away,  and  there  are  now  apparently  none  left.  The  Con- 
gested Districts  Board  began  to  feel  the  danger  of  the  situation 
rather  later,  and  we  find  a  serious  decline  taking  place  from  the 
year  1913.  In  this  year  the  earnings  were  over  £29,000,  but  in 
1913-14  they  fell  as  low  as  £17,500.  The  Board's  Report  contains 
the  following  observations:  "The  falling  off  in  the  receipts  of 
lace  and  crochet  must  be  attributed  to  the  quantity  of  Austrian 
hand-made  lace  or  crochet  and  of  machine-made  English  lace 
which  has  been  put  on  the  market  in  competition  with  Irish 
hand-made  lace.  So  far  no  attempts  have  been  made  by  lace- 
workers  in  Ireland  to  produce  machine-made  lace,  but  it  may 
become  desirable  to  consider  the  question  of  doing  so.  Expert 
makers  of  the  best  kind  of  Irish  lace  will  always,  it  is  thought, 

*  id.,  p.  435. 


HOME  INDUSTRIES  199 

be  able  to  sell  their  work  at  a  fair  price,  but  change  of  fashion 
and  machine  competition  tell  most  severely  against  coarse  work 
and  workers  of  inferior  quality." 

How  serious  the  situation  was  is  illustrated  by  the  fact  that 
the  earnings  at  one  of  the  best  centres  fell  in  one  year  from 
£1160  to  £147.  To  meet  this  state  of  things  the  Board  reduced 
their  lace  classes  as  rapidly  as  possible  and  substituted  classes 
for  embroidery  and  hand-knitting.  It  need  hardly  be  said  that 
war  conditions  have  completed  the  destruction  of  the  market  for 
lace,  while  they  have  given  a  considerable  stimulus  to  the  demand 
for  knitted  goods.  There  is  still  a  limited  market  for  really  good 
lace  and,  as  is  suggested  in  the  remarks  quoted,  this  demand  will 
probably  be  permanent,  but  there  is  little  reason  to  suppose  that 
anything  but  the  best  will  be  able  to  compete  with  the  machine- 
made  article  in  the  future.  The  moral  seems  to  be  that  such  a 
body  as  the  Irish  Lace  Depot,  keeping  a  high  standard  and 
appealing  on  aesthetic  and  perhaps  sentimental  grounds  to  a 
limited  class  of  customers,  can  sustain  a  flourishing  industry  on 
a  rather  small  scale,  but  any  attempt  to  go  beyond  the  limits 
of  such  a  depot  means  commercializing  the  industry,  and  thus 
bringing  it  face  to  face  with  a  competition  which  it  cannot  over- 
come. There  is  a  constant  risk  of  overproduction  and  deterioration 
in  quality  which  with  any  change  of  conditions  may  lead  to 
sudden  disaster. 

The  making  of  lace  has  been  to  some  extent  replaced  by  fancy 
needlework  and  embroidery.  This  industry  has  been  carried  on 
in  much  the  same  way,  and  with  about  the  same  results,  as  the 
manufacture  of  lace.  Most  of  the  Home  Industries  Societies 
started  by  the  I.A.O.S.  carried  out  a  good  deal  of  work  of  this 
kind  in  addition  to  the  production  of  lace,  and  there  was  also  a 
considerable  output  from  the  classes  controlled  by  the  religious 
orders  and  those  held  under  the  Congested  Districts  Board  and 
the  Department  of  Agriculture.  Much  the  same  conditions 
obtain  in  this  industry  as  we  have  already  described  in  dealing 


200        RURAL  RECONSTRUCTION  IN  IRELAND 

with  lace.  We  may  mention,  however,  as  an  example  of  organi- 
zation which  was  successfully  carried  out  over  a  number  of  years, 
the  Dalkey  Co-operative  Embroidery  Society.  This  Society  was 
one  of  the  first  two  home  industries  associations  started  by  the 
I.A.O.S.  It  attracted  the  attention  of  Lady  Betty  Balfour,  who 
gives  a  description  of  its  work,  from  which  we  take  the  following 
quotation: 

"A  number  of  girls  who  in  school  and  afterwards  had  shown 
themselves  capable  of  doing  very  highly  finished  needlework, 
whose  skill  should  have  been  to  them  a  source  of  income,  yet 
found  themselves  without  the  means  of  exercising  their  talents 
to  profitable  purpose.  Manufacturers  and  other  employers  could 
not  help  them.  It  remained  for  them  to  help  themselves.  The 
friends  of  the  co-operative  movement,  which  was  spreading  so 
rapidly  among  the  farmers  of  the  country,  came  to  their  rescue. 
A  meeting  was  held  at  the  convent  of  Dalkey,  and  a  society 
formed  to  develop  and  improve  the  general  needlework  and  art- 
embroidery  in  Ireland,  to  improve  the  moral  and  social  status  of 
the  workers  engaged  in  such  occupations  by  imparting  to  them 
technical  education  in  all  branches  of  their  business,  and  obtain- 
ing a  market  for  their  work,  and  saving  for  them  the  profits 
derived  from  the  sale. 

"The  Loretto  Nuns  of  Dalkey  gave  the  workers  the  use  of  a 
building  in  the  convent  grounds,  which  was  fitted  up  as  a  work- 
room. One  of  the  nuns  undertook  the  management,  competent 
teachers  were  secured,  and  the  society  started  in  October,  1895. 

"A  small  capital  was  subscribed  to  start  the  society,  and  it  is 
now  self-supporting.  Workers  are  not  required  on  entering  the 
society  to  pay  anything,  but  they  are  all  obliged  to  become  share- 
holders. This  they  can  do  by  allowing  their  share  of  profits  to 
be  devoted  to  the  purchase  of  shares  till  they  are  fully  paid  up. 
This  does  not,  however,  diminish  in  any  way  their  ordinary 
wages.  The  workers  are  paid  according  to  the  amount  and 


HOME  INDUSTRIES  201 

quality  of  their  work.  The  profits  of  the  society  as  ascertained 
when  the  accounts  are  made  up  at  the  end  of  each  half-year  are 
divided  among  the  workers  in  proportion  to  the  wages  that  each 
has  earned  during  the  time. 

"A  committee  is  elected  by  the  members  of  the  society,  and 
the  rules  for  hours  of  labor  and  the  general  conduct  of  business 
are  made  by  the  committee.  A  member  cannot  be  dismissed  for 
any  cause  whatsoever  except  by  a  vote  of  the  whole  society. 
Before  a  worker  is  admitted  a  member  of  the  society  she  must 
first  enter  the  workroom  as  an  apprentice  or  as  a  paid  hand.  If 
she  does  not  prove  herself  capable  and  industrious  she  will  not 
be  admitted  into  the  society."* 

This  society  undoubtedly  furnishes  a  model  form  of  organiza- 
tion, and  it  gained  great  practical  success,  employing  as  many 
as  fifty  to  sixty  workers  with  an  output  of  over  £1000  a  year.  It 
was  largely  helped  in  this  by  the  influential  patronage  which  its 
origin  and  its  situation  near  Dublin  enabled  it  to  command.  After 
figuring  for  twelve  years  in  the  I.A.O.S.  returns  it  ceased  to  exist 
as  a  co-operative  society,  having  no  doubt  passed  entirely  into 
the  hands  of  the  nuns. 

Throughout  the  North  of  Ireland  a  large  amount  of  white 
embroidery  or  "sprigging"  is  done,  chiefly  to  the  order  of  the 
Belfast  linen  firms,  which  send  out  the  materials  and  designs 
to  the  cottagers.  Writing  on  this  subject  Mr.  Rolleston  says: 
"Hand  embroidery  in  its  more  artistic  developments  is  still  fortu- 
nately incapable  of  satisfactory  imitation  by  machinery,  and 
must  rank  in  Ireland  as  a  very  considerable  and  by  no  means 
decaying  industry.  The  white  embroidery  and  drawn-work  pro- 
duced for  the  large  Belfast  firms,  as  well  as  at  various  independent 
centres  throughout  the  country,  is  of  admirable  quality  in  design 
and  execution.  In  this  whole  department  of  Irish  art-work  it 

*  See  "Art  and  Cottage  Industries"  ("Ireland,  Industrial  and  Agricultural") ,  p. 
440. 


202        RURAL  RECONSTRUCTION  IN  IRELAND 

may  safely  be  said  that  nothing  approaching  it  for  excellence  is 
to  be  found  anywhere  else  in  the  United  Kingdom,  and  not  very 
much  even  in  France  or  Belgium."* 

Unfortunately,  however,  the  conditions  under  which  this  work 
has  been  done  for  various  large  firms  have  been  anything  but 
satisfactory.  The  Royal  Commission  appointed  in  1912  to  inquire 
into  the  linen  industry  revealed  the  fact  that  these  outworkers 
earned  the  terrible  wages  of  a  penny  to  a  penny  farthing  an  hour 
for  work  which  had  to  be  done  indoors  in  stuffy  cabins  and  in- 
volved a  serious  danger  to  the  eyesight  of  the  workers.  Moreover, 
they  were  never  fully  convinced  of  the  necessity  of  punctuality, 
and  frequently  failed  for  this  reason  to  get  paid  for  their  work. 
A  certain  improvement  has  been  effected  in  some  districts,  notably 
in  parts  of  Donegal  where  co-operative  stores  and  agricultural 
societies  have  made  themselves  responsible  for  the  distribution 
of  this  work. 

The  hand-knitting  industry  is  also  of  long  standing  in  Ireland, 
particularly  in  the  counties  Donegal  and  Mayo.  The  demands 
of  war  have  given  a  great  stimulus  to  it,  and  the  Congested  Dis- 
tricts Board  have  been  rapidly  replacing  their  lace-making 
classes  by  classes  in  hand-knitting.  The  most  successful  of  Irish 
co-operative  experiments  in  home  industries  has  been  carried  out 
at  Dungloe  in  County  Donegal.  Here,  through  the  energy  and  en- 
thusiasm of  several  small  farmers,  of  whom  Mr.  "Paddy"  Gal- 
lagher has  made  himself  famous  throughout  Ireland,  a  large  and 
flourishing  agricultural  society  and  a  general  store,  in  addition 
to  two  credit  societies,  have  been  established  in  a  most  poverty- 
stricken  and  gombeen-ridden  district.  Within  the  last  two  or 
three  years  Mr.  Gallagher  has  added  to  these  enterprises  a  model 
factory  for  hand-knitted  goods,  which  is  now  filling  large  con- 
tracts for  gloves,  socks,  etc.,  for  both  the  British  and  Belgian  War 
Departments.  A  hundred  girls  are  employed  in  a  clean,  airy  and 
comfortable  workshop  which  was  originally  a  village  hall,  built 

*  Op.  dt.,  p.  438. 


HOME  INDUSTRIES  203 

by  the  co-operative  society.  They  work  eight  hours  a  day  with 
an  hour  for  lunch,  and  earn  on  an  average  one  pound  a  week, 
where  before  the  society  intervened  they  worked  ten  or  twelve 
hours  a  day  for  five  or  six  shillings  a  week.  In  addition  to  these 
a  large  number  of  home  workers  are  employed.  The  excellent 
quality  and  moderate  price  of  the  goods  are  testified  to  by  the 
keen  competition  among  buyers  to  secure  contracts  with  the 
society  for  its  output,  which  is  replacing  a  corresponding  amount 
of  German  manufactures. 

We  come  now  to  the  homespun  industry,  which  is  the  most 
important  and  most  characteristic  of  all.  Throughout  the  western 
counties  of  Ireland,  the  spinning,  weaving  and  dyeing  of  tweeds 
are  universal.  The  fishermen  and  laborers  of  these  counties  are 
clothed  in  frieze  made  in  their  own  homes,  and  the  fishing  tourist 
in  Connemara  or  Donegal  is  sure  to  be  accosted  sooner  or  later 
by  an  old  lady  who  seems  to  have  sprung  mysteriously  from  the 
bog  with  a  large  roll  of  tweed  under  her  arm,  on  the  sale  of  which, 
she  asserts,  the  payment  of  her  rent  or  the  purchase  of  a  pig  must 
depend.  The  demand  thus  created — for  the  suits  made  from  this 
material  are  attractive  enough  to  excite  envy  in  the  minds  of 
fellow-tourists — has  led  to  a  considerable  industry  on  the  part 
of  small  hotel-keepers  and  other  middlemen,  and  it  is  to  be 
feared  that  a  good  deal  of  sweating  and  profiteering  goes  on  under 
the  guise  of  philanthropic  support  of  home  industry.  The  Con- 
gested Districts  Board  has  given  considerable  help  in  providing 
looms,  instruction  and  markets  for  the  tweed,  and  a  very  large 
amount  is  sold  to  English  buyers  every  year  in  two  large  markets 
in  South  Donegal,  where  sheds  and  inspectors  are  now  provided 
by  the  Board.  The  commercialization  of  the  industry  has  led  to 
a  deterioration  in  the  originality  and  artistic  merit  of  the  product, 
and  there  has  been  a  certain  amount  of  machine  spinning  intro- 
duced in  the  attempt  to  produce  the  cloth  more  rapidly. 

An  interesting  experiment  has  been  tried  in  the  more  northern 
part  of  Donegal  under  the  influence  of  Mrs.  Kennedy,  whose  son 


204        RURAL  RECONSTRUCTION  IN  IRELAND 

owns  a  property  in  the  neighborhood  of  Gweedore.*  Here  the 
workers  were  first  formed  into  an  association  which  secured  a 
contract  with  Messrs.  Burberry  for  a  considerable  quantity  of 
the  highest  quality  of  hand-made  tweed.  The  results  were  so 
satisfactory  that  many  more  workers  applied  for  membership 
than  could  be  employed  under  this  contract.  In  1914,  therefore, 
a  co-operative  society  was  formed,  which  has  been  turning  out 
most  artistic  and  well-made  tweed.  The  chief  difficulty  encoun- 
tered by  the  society  was  naturally  that  of  finding  a  market,  and 
this  difficulty  is  accentuated  by  the  attitude  of  the  tailors,  who 
persistently  refuse  to  encourage  the  production  of  homespun 
cloth.  No  tailor  will  buy  from  an  association  which  sends  out 
patterns  to  individual  clients;  but  if  the  whole  output  is  sold 
at  wholesale,  it  is  found  that  the  demand  for  originality  and  good 
workmanship  ceases,  and  the  price,  failing  the  stimulus  of  com- 
petition, becomes  unremunerative.  It  seems  to  be  necessary, 
therefore,  that  the  society  should  depend  for  its  market  upon 
the  goodwill  of  those  individuals  who  really  appreciate  good  and 
original  workmanship,  and  are  prepared  to  brave  their  tailors 
and  pay  almost  as  much  for  having  a  suit  made  out  of  their  own 
material  as  for  one  in  which  the  material  is  provided  by  the  tailor. 
As  in  the  case  of  lace,  this  market  is  limited  and  capricious. 
During  the  war  it  has  practically  ceased  to  exist,  but  has  been 
replaced  by  the  demands  of  the  army.  If  the  industry  is  to  be 
carried  on  successfully  after  the  war  it  will  probably  be  neces- 
sary to  reorganize  it  by  creating  some  such  body  as  that  curious 
but  eminently  successful  council  of  philanthropists  and  merchants 
which  is  responsible  for  the  excellent  market  commanded  by 
Harris  tweeds. 

The  remaining  home  industries  of  Ireland  are  easily  disposed 
of.  Most  important  is  that  of  hand-made  carpets,  for  which 

*The  work  has  been  well  described  in  two  articles  by  Mrs.  Kennedy  and  her 
son  in  the  Bulletin  of  the  Co-operative  Reference  Library  for  December,  1914,  to 
which  the  reader  should  refer  for  detailed  information. 


HOME  INDUSTRIES  205 

Donegal  has  achieved  a  certain  fame.  These  carpets  are  made 
in  three  factories  established  by  a  Scottish  firm  about  the  year 
1895  w^h  a  certain  amount  of  assistance  from  the  Congested 
Districts  Board.  The  work  shows  considerable  artistic  merit  and 
durability,  but  the  wages  earned  are  by  no  means  ideal.  Mention 
must  also  be  made  of  the  carpets,  rugs,  tapestries,  etc.,  made  by 
hand  by  the  Dun  Emer  Guild  in  Dublin,  whose  products  have 
been  largely  bought  by  the  Canadian  Pacific  Railway. 

In  the  neighborhood  of  Belfast  and  Dublin  a  certain  amount 
of  work  is  carried  on  in  stained  glass,  wood-carving,  leather- 
working,  and  bookbinding.  A  considerable  industry  in  repousse 
brass-  and  copper-work  has  been  developed  under  the  patronage 
of  Mr.  and  Mrs.  Montgomery  at  Five  Mile  Town  in  County 
Tyrone.  Basket-work  is  carried  on  in  some  parts  of  the  South 
and  West,  though  difficulties  are  found  with  the  supply  of  suitable 
osiers  for  the  purpose.  Belleek  has  established  a  certain  reputa- 
tion for  pottery,  and  the  traditional  Irish  industries  of  cabinet- 
making,  silver-  and  gold-smith's  work,  and  illuminating  and  en- 
graving are  still  practised  to  some  extent,  although  there  is  a 
notable  absence  of  any  native  originality  of  design.  The  making 
of  dolls  and  toys  has  also  been  undertaken  from  time  to  time, 
and  the  effect  of  the  war  in  weakening  competition  has  resulted 
in  a  revival  of  this  industry. 

It  remains  only  to  summarize  briefly  the  efforts  made  by  the 
I.A.O.S.  to  include  the  organization  of  home  industries  in  its 
programme,  and  to  suggest  the  reasons  which  have  led  to  the 
comparative  failure  of  this  scheme.  The  first  two  societies  were 
organized  in  the  years  1895-96,  one  being  the  Embroidery  Society 
at  Dalkey  which  we  have  described,  and  the  other,  more  general 
in  its  scope,  at  Ballinagleragh.  During  the  next  few  years  con- 
siderable importance  was  attached  to  this  form  of  organization. 
As  we  have  noted,  the  criticism  was  frequently  made  that  the 
I.A.O.S.  by  organizing  creameries  was  depriving  the  women  of 
the  country  of  their  natural  occupation,  namely,  the  making  of 


206        RURAL  RECONSTRUCTION  IN  IRELAND 

butter,  and  so  driving  them  into  enforced  idleness  or  emigration. 
It  was  thought  that  the  formation  of  home  industry  societies 
would  meet  this  criticism  while  at  the  same  time  helping  to  stem 
the  flood  of  emigration,  to  supplement  the  incomes  of  the  poorest 
families,  and  to  raise  the  standard  of  neatness  in  home  life.  In 
1898  an  arrangement  was  come  to  by  which  the  Irish  Industries 
Association,  of  which  Lady  Cadogan  was  president  and  Sir 
Horace  Plunkett  a  member,  should  work  in  close  conjunction 
with  the  I.A.O.S.  and  attempt  to  market  the  produce  of  the 
co-operative  societies  organized  by  the  latter  body.  By  1900  the 
number  of  these  societies  had  increased  so  much  that  it  was  found 
desirable  to  appoint  a  special  organizer  to  supervise  them.  As 
a  result  there  were  within  a  year  or  two  from  fifty  to  fifty-five 
societies  in  existence.  How  large  their  turnover  was  it  is  impos- 
sible to  say,  owing  to  the  failure  of  most  of  them  to  send  in  any- 
thing like  complete  statistical  returns.  In  1902  there  were  fifty 
societies  on  the  list  with  a  membership  of  almost  3000.  Thirty- 
two  of  them  stated  the  amount  of  their  trade,  which  totaled 
£12,000,  the  largest  turnover  being  that  of  Carrickmacross  with 
£1429.  By  1904,  though  the  number  of  societies  had  increased 
to  fifty-five,  returns  of  trade  were  only  secured  from  twenty  of 
them,  totaling  in  all  £4147.  This  year  is  the  high-water  mark 
of  the  societies  as  far  as  numbers  are  concerned,  but  the  decline 
in  efficiency  had  already  set  in,  and  the  remaining  history  is  one 
of  decay.  By  1909-10  the  societies  had  practically  ceased  to  play 
any  part  in  the  programme  of  the  I.A.O.S.  The  organizer  passed 
into  the  service  of  the  United  Irishwomen  on  the  foundation  of 
that  body,  and  the  I.A.O.S.  has  several  times  recommended  that 
the  United  Irishwomen  should  take  control  of  the  societies  also. 
The  suggestion  certainly  seems  appropriate,  but  so  far  no  re- 
sponse has  been  forthcoming.  The  United  Irishwomen  have  been 
either  too  busy  with  other  tilings  or  too  deeply  convinced  of  the 
hopelessness  of  the  situation,  and  the  home  industries  societies 
appear  to  be  condemned  to  a  gradual  death.  In  1914  there  were 


HOME  INDUSTRIES  207 

sixteen  still  in  existence  with  a  membership  of  910  and  a  turnover 
given  as  £2234.  Of  this  sum,  however,  £1500  was  due  to  the  Cuala 
Press  and  the  Dun  Emer  Guild,  which  are  really  philanthropic 
associations  more  than  co-operative  societies.  Only  two  other 
societies  stated  their  trade  at  all,  and  it  is  doubtful  whether  more 
than  half  of  them  are  really  working. 

The  reasons  which  have  led  to  the  collapse  of  what  seemed  at 
one  time  a  promising  programme  are  fairly  simple,  and  are  mostly 
foreshadowed  in  the  I.A.O.S.  report  for  1904,  from  which  we 
quote:  "The  fall  in  the  demand  and  prices  for  Irish  lace  made  it 
undesirable  to  push  the  formation  of  societies.  The  securing  of 
markets  for  societies  is  not  really  a  work  which  the  I.A.O.S.  or 
its  officials  should  undertake,  but  in  the  absence  of  a  federation 
of  home  industry  societies  it  has  been  found  absolutely  necessary 
in  some  cases  if  societies  were  to  continue  in  existence  that  an 
effort  should  be  made  to  find  an  outlet  for  their  work.  It  is  worse 
than  useless  to  instruct  workers  if  there  is  no  visible  prospect  of 
a  market  being  found  for  their  work.  The  work  of  bodies  like 
the  Irish  Industries  Association,  while  valuable,  is  too  spasmodic 
in  its  character  really  to  solve  the  problem.  The  great  sales  organ- 
ized with  so  much  enthusiasm,  while  they  undoubtedly  lead  to  a 
great  deal  of  money  being  returned  to  workers,  are  not  in  the 
long  run  the  most  reliable  way  to  assist  industries.  Among  the 
defects  in  the  societies  which  can  and  ought  to  be  remedied  from 
within  are  indifference  to  a  high  standard  of  workmanship  and 
disregard  of  time.  Inferior  lace  is  often  turned  out  and  naturally 
the  demand  and  price  fall.  Orders  given  by  business  houses  to 
be  executed  within  certain  dates  are  disregarded  and  the  workers 
suit  their  own  convenience,  and  consequently  the  customers 
instead  of  pressing  the  sale  of  Irish  work  are  forced  to  press 
foreign,  as  they  cannot  count  on  getting  the  Irish,  while  the 
foreign  can  be  relied  on.  To  compete  with  the  people  versed  in 
such  work  and  trained  to  it  from  infancy  is  no  small  undertaking, 
and  the  teachers  are  often  discouraged  not  only  by  the  deficiencies 


208        RURAL  RECONSTRUCTION  IN  IRELAND 

of  their  pupils  but  by  the  fact  that  their  own  remuneration  is 
often  arranged  on  a  most  unsatisfactory  basis." 

All  this  when  summarized  simply  amounts  to  restating  what 
has  become  apparent  in  our  consideration  of  the  particular  in- 
dustries, namely,  that  although  a  certain  amount  of  work  may 
be  produced  which  is  of  such  excellence  that  it  commands  a  sure 
market,  when  the  industry  is  more  widespread  the  standard  falls 
and  it  is  necessary  to  adopt  a  commercial  method  of  marketing. 
This  was  an  undertaking  which  the  I.A.O.S.  could  not  face  in 
addition  to  all  the  work  it  was  called  upon  to  do  for  creameries 
and  agricultural  societies.  The  efforts  made  by  the  Irish  Indus- 
tries Association  and  the  Lace  Depot  began  with  philanthropy  and 
degenerated  into  shopkeeping.  A  federation  of  home  industries 
societies  might  have  solved  the  problem,  but  such  a  federation 
would  always  have  been  on  the  horns  of  a  dilemma.  If  the  socie- 
ties affiliated  to  it  had  all  produced  lace  and  embroidery  (and  in 
the  case  of  those  organized  by  the  I.A.O.S.  90  per  cent,  of  their 
turnover  was  of  this  nature)  any  fall  such  as  frequently  occurred 
in  the  market  would  have  ruined  it,  while  if  their  output  had 
been  diversified,  bulk  would  have  been  so  small  that  the  federa- 
tion would  have  had  difficulty  in  finding  a  market  at  all. 

There  were  also  serious  difficulties  with  the  local  societies.  In 
practically  all  cases,  especially  the  more  successful  ones,  these 
societies  were  the  outcome  of  the  energy  and  enthusiasm  of  some 
one  or  two  ladies  or  of  a  religious  order.  The  bulk  of  the  workers 
were  young  girls  who  could  not  be  expected  to  have  any  under- 
standing of  co-operative  principles  or  to  do  anything  except 
follow  the  instructions  of  those  who  provided  them  with  work. 
Under  these  circumstances,  the  whole  essence  of  co-operation, 
which  lies  in  equality  and  mutual  help,  was  lacking.  The  results 
are  seen  in  the  columns  of  blank  spaces  which  adorn  the  I.A.O.S. 
reports  in  the  place  where  the  statistics  of  the  home  industries 
societies  ought  to  be.  It  is  to  be  feared  that  many  of  the  pa- 
tronesses, after  getting  registered  under  the  Industrial  and  Provi- 


HOME  INDUSTRIES  209 

dent  Societies  Act  at  the  advice  of  the  I.A.O.S.,  thought  very 
little  more  of  their  duties  as  co-operators.  Certainly  the  contribu- 
tions from  these  societies  to  the  I.A.O.S.  would  not  in  most  years 
have  supported  an  organizer  for  a  month,  and  this  in  itself  was 
sufficient  to  make  it  impossible  to  keep  them  going.  In  any  case, 
they  were  less  relevant  to  the  general  programme  of  the  I.A.O.S. 
than  any  other  form  of  society,  and  a  separate  body  like  the 
United  Irishwomen  might  well  have  been  formed  to  look  after 
them.  It  is  natural  that  various  experiments  should  attend  the 
early  years  of  a  movement  of  this  kind  and  should  subsequently 
have  to  give  way  to  a  more  restricted  but  more  businesslike 
programme. 

Nevertheless  this  chapter  has  not  been  wasted  in  giving  the 
history  of  a  failure.  The  home  industries  societies  played  their 
part  in  a  general  and  continued  revival  of  energy  in  Ireland. 
They  were  undoubtedly  successful  in  adding  to  the  earnings  of 
many  thousands  of  girls  and  in  checking  emigration.  And  it  does 
not  follow  because  their  names  have  disappeared  from  the  list 
of  co-operative  societies  that  the  industry  has  died.  In  almost  all 
cases  they  have  passed  into  the  hands  of  philanthropic  persons 
or  religious  bodies  and  the  work  goes  on.  The  method  was  perhaps 
unsuccessful,  but  if  the  effort  had  not  been  made  the  country  in 
general  would  have  suffered  a  considerable  loss. 


CHAPTER  XII 

THE  DEPARTMENT  OF  AGRICULTURE  AND 
TECHNICAL  INSTRUCTION 

ATTENTION  has  been  drawn  at  various  points  in  the  preceding 
chapters  to  the  backwardness  of  the  Irish  farmer  concerning  the 
technical  details  of  his  industry,  and  to  the  handicap  thus  im- 
posed upon  the  co-operative  movement.  For  reasons  already 
given,  he  was  content  with  the  traditional  crops,  the  traditional 
tools,  the  traditional  methods.  He  did  not  understand  the  use  of 
artificial  fertilizers,  and  spraying  potatoes  was  a  practice  which 
he  considered  not  only  unnecessary  but  undesirable.  Of  the  agri- 
cultural revolution  which  was  effecting  as  great  a  change  in  the 
productivity  of  the  soil  as  the  harnessing  of  steam  and  the  works 
of  inventive  genius  had  done  in  the  industrial  sphere,  he  was 
sublimely  ignorant.  Whereas  on  the  Continent  the  yield  of 
potatoes  per  acre  reached  15  tons,  in  Ireland  the  average  was  2.6 
tons.  This  single  fact  was  characteristic  of  the  general  situation. 
Whatever  else  might  be  done  to  improve  the  condition  of  Irish 
agriculture,  no  great  prosperity  could  be  attained  without  a  large 
improvement  in  agricultural  methods,  and  for  this  purpose  a 
comprehensive  measure  of  agricultural  education  was  necessary. 
The  efforts  which  had  already  been  made  in  this  direction  had 
proved  quite  inadequate.  A  certain  amount  of  useful  work  was 
done  by  the  Royal  Dublin  Society,  which  from  1731  had  admin- 
istered various  State  funds  for  the  improvement  of  agriculture. 
Its  activity  consisted  largely  in  efforts  to  improve  the  stock  of 
the  country,  particularly  the  horses,  though  some  attempts  were 
made  to  increase  and  develop  tillage  operations.  To  this  society 

210 


THE  DEPARTMENT  OF  AGRICULTURE         211 

may  be  attributed  the  establishment  of  the  Royal  College  of 
Science,  which  has  now  assumed  an  important  place  in  the  general 
educational  scheme.  Likewise,  the  National  Board  of  Education 
inaugurated  in  1838  a  comprehensive  system  of  agricultural 
education,  with  a  large  number  of  model  farms.  But  these  were 
abandoned  largely  on  account  of  the  hostility  of  the  Manchester 
school  of  economists,  who  stigmatized  this  action  as  subversive 
to  the  well-established  principles  of  political  economy.  The  net 
result  was  only  a  very  slight  impression  upon  this  important 
problem. 

In  the  beginning,  and  indeed  at  the  present  time,  the  co- 
operative movement  itself  has  been  forced  to  devote  much  effort 
in  this  direction.  Technical  instruction  was  so  essential  that  the 
I.A.O.S.  found  it  necessary  to  combine  this  with  its  proper  work 
of  organization.  Only  by  such  a  combination  was  it  possible  to 
achieve  any  results  at  all.  The  first  co-operative  societies,  the 
creameries,  were  created  largely  by  convincing  the  farmers  of 
the  technical  advantages  of  this  method  of  butter-making,  and 
have  been  made  successful  by  the  constant  assistance  given  them 
by  the  creamery  staff  of  the  I.A.O.S.  Likewise  the  agricultural 
experts  of  the  society  have  done  a  splendid  work  in  introducing 
new  methods  of  crop  rotation,  and  various  forms  of  agricultural 
machinery.  This  extraneous  but  inevitable  and  necessary  activity 
was  a  serious  drain  on  a  movement  which  was  never  overburdened 
with  resources.  In  the  more  restricted  field  of  co-operative  organ- 
ization the  I.A.O.S.  found  ample  room  for  its  activities.  Never- 
theless the  combination  and  co-ordination  of  education  and 
organizing  work  seemed  essential.  If  State  aid  was  to  be  intro- 
duced— and  only  the  Government  with  its  large  resources  and 
ample  powers  seemed  competent  to  deal  with  the  problem — it 
must  be  applied  in  a  way  to  encourage  the  spirit  of  self-reliance 
and  individual  capacity,  and  must  be  used  in  connection  with  the 
agencies  of  self-help  already  existing. 

This  was  the  broad  conclusion  of  the  "Recess  Committee  on 


212        RURAL  RECONSTRUCTION  IN  IRELAND 

the  establishment  of  a  Department  of  Agriculture  and  Technical 
Instruction  for  Ireland,"  a  body  unique  in  the  history  of  the 
country.  It  had  been  gathered  together  during  the  parliamentary 
recess  of  1895-96 — hence  the  name — by  Sir  Horace  Plunkett, 
whose  activities  in  the  co-operative  movement  had  already  won 
for  him  considerable  influence.  His  experiences  in  starting  socie- 
ties had  convinced  him  of  the  necessity  of  governmental  action. 
The  terms  under  which  this  committee  was  assembled  were 
significant.  In  his  letter  to  the  Irish  Press  proposing  the  confer- 
ence, Sir  Horace  Plunkett  declared: 

"The  time  has  arrived  when  we  Unionists,  without  abating  one 
jot  of  our  Unionism,  and  Nationalists,  without  abating  one  jot 
of  their  Nationalism,  can  each  show  our  faith  in  the  cause  for 
which  we  have  fought  so  bitterly  and  so  long  by  sinking  our  party 
differences  for  our  country's  good,  and  leaving  our  respective 
policies  for  the  justification  of  Time.  ...  If  it  be  agreed  that  it 
will  be  good  patriotism  and  good  policy  alike  to  work  for  the 
material  and  social  advancement  of  our  country,  what  is  to  make 
us  hesitate  to  enter  at  once  upon  that  united  action  between  Irish- 
men of  both  parties  which  alone  can  produce  the  desired  result?" 

The  response  to  this  appeal  was  exceedingly  encouraging. 
Practically  all  shades  of  political  opinion  and  all  interests  in  the 
country  were  represented  in  the  committee  which  was  formed. 
Nationalists  and  Unionists,  Ulstermen  and  Southerners,  agri- 
culturists and  manufacturers,  joined  in  its  deliberations.  A 
special  committee  in  Ulster  studied  particularly  the  question  of 
industrial  development.  Only  those  groups  in  the  Nationalist  and 
Unionist  parties  led  respectively  by  Justin  McCarthy  and  Colonel 
Saunderson  refused  to  participate.  That  these  men  should  have 
come  together  at  all  to  discuss  and  formulate  a  constructive  policy 
for  Ireland  was  in  itself  remarkable;  that  they  should  have 
presented  a  unanimous  report  would  seem  little  short  of  miracu- 


THE  DEPARTMENT  OF  AGRICULTURE         213 

lous,  had  not  the  subject  of  their  deliberations  been  a  fundamental 
matter  to  all  classes. 

Two  problems  which  Sir  Horace  had  suggested  for  the  delib- 
erations of  the  committee  were  considered — the  establishment  of 
a  State  Department  of  Agriculture  and  the  facilities  for  technical 
education.  Their  report,  both  from  the  point  of  view  of  the 
material  gathered  and  the  policy  recommended,  is  of  the  greatest 
importance.  After  describing  the  economic  conditions  and  the 
available  resources  of  Ireland,  it  goes  on  to  formulate  a  policy 
of  State  aid  for  agriculture.  This  policy  was  based  on  careful 
inquiries  into  the  experience  of  various  European  countries. 
Investigators  were  sent  out,  and  their  reports,  indicating  the 
causes  of  industrial  revival  elsewhere,  were  carefully  considered. 
It  was  shown  that  the  development  of  agriculture  had  depended 
on  three  factors:  organization,  representation  and  education.  In 
Ireland  the  first  principle  had  been  recognized  in  the  formation 
of  co-operative  societies,  but  as  for  the  others,  the  country  was 
altogether  backward.  If  Irish  agriculture  was  to  assume  its  proper 
position  in  the  economic  life  of  the  country,  it  was  clear  that  an 
advance  must  be  made  in  these  directions. 

It  was  proposed,  therefore,  to  establish  a  new  Government 
Department,  dealing  with  the  two  problems  of  agricultural  and 
technical  education,  advised  by  a  body  representative  of  the 
farmers,  and  sufficiently  endowed  to  perform  the  educational  and 
experimental  work  essential  for  the  development  of  the  country. 
In  view  of  the  ridiculous  number  of  Government  agencies  already 
existing,  this  proposition  seemed  only  to  complicate  the  problem. 
And,  indeed,  had  the  new  Department  been  of  the  usual  sort, 
misgivings  would  have  been  justified.  To  endow  Castle  govern- 
ment, out  of  touch  as  it  was  with  the  interests  of  the  people  and 
enjoying  so  little  of  their  sympathy  and  support,  would  have 
proved  an  irritant  and  not  a  remedy.  As  a  matter  of  fact,  no  little 
difficulty  was  experienced  in  the  early  activities  of  the  Depart- 
ment because  the  people  did  not  understand  its  independent 


214        RURAL  RECONSTRUCTION  IN  IRELAND 

position.  For,  happily,  the  new  Department,  through  the  wisdom 
of  the  Recess  Committee,  and  particularly  of  Sir  Horace 
Plunkett,  was  constituted  in  a  way  quite  different  from  those 
already  existing.  The  scheme  was  enthusiastically  received  by  all 
classes  of  the  people,  and  the  demand  for  the  necessary  legislation 
was  practically  unanimous.  After  a  delay  of  some  years,  occa- 
sioned by  the  prior  claims  of  the  Local  Government  Bill,  the 
recommendations  of  the  Recess  Committee  were  realized  by  the 
establishment  in  1899  of  the  Department  of  Agriculture  and 
Technical  Instruction  for  Ireland. 

The  constitution  and  organization  of  this  new  body  are  remark- 
able in  many  respects,  differentiating  it  from  all  other  State 
agencies  in  Ireland,  and  giving  it  considerable  importance  from 
the  point  of  view  of  political  organization  generally.  At  its  head 
is  a  Vice-President,*  who  represents  the  Department  in  Parlia- 
ment, and  is  regarded  as  a  member  of  the  Government.  All  other 
State  bodies  in  Ireland  are  represented  only  by  the  Chief  Secre- 
tary. But  the  feature  of  the  Act  which  merits  special  attention  is 
the  provision  to  make  its  control  representative  of  the  people 
whose  interests  are  concerned.  A  Department  of  Agriculture  run 
by  a  predominantly  non-agricultural  group  may  or  may  not  con- 
tribute to  the  welfare  of  the  class  for  whom  it  was  intended.  But 
control  by  the  class  concerned  will  at  any  rate  reflect  their  own 
opinions  and  desires.  For  this  reason  the  Act  of  1899  provided 
for  a  number  of  representative  bodies,  who  enjoy  considerable 
control  over  the  activities  of  the  Department.  The  first  of  these, 
known  as  the  Council  of  Agriculture,  has  104  members,  two- 
thirds  of  whom  are  elected  by  the  county  councils,  established 
under  the  Local  Government  Act  of  1898.  The  remainder  are 
nominated  by  the  Department.  This  body  is  largely  advisory. 
It  holds  at  least  one  general  meeting  each  year  at  which  the  policy 
of  the  Department  and  various  matters  of  importance  to  the 

*The  President  of  the  Department  is  the  Chief  Secretary  for  Ireland,  but  the 
post  is  a  nominal  one,  and  he  exercises  practically  no  control. 


THE  DEPARTMENT  OF  AGRICULTURE         215 

farming  community  are  considered.  But  through  two  smaller 
boards,  a  majority  of  whose  members  are  chosen  by  the  council, 
it  exerts  much  direct  power.  The  Board  of  Agriculture  and  the 
Board  of  Technical  Instruction  have  an  immediate  control  over 
the  activities  of  the  Department,  not  only  as  active  advisory 
bodies,  but  also  as  the  final  authorities  in  determining  the  dis- 
position of  the  annual  revenue.  The  Department  would  thus  seem 
to  enjoy  a  large  measure  of  popular  control. 

This  control  is  further  secured  through  the  arrangements  made 
for  the  application  of  the  funds.  Except  in  extraordinary  circum- 
stances, no  aid  was  to  be  applied  locally  unless  the  local  authori- 
ties themselves  contributed  to  the  expense.  Since  such  a  contribu- 
tion involved  additional  taxation,  authorized  by  the  Act  up  to 
a  penny  on  the  pound,  together  with  the  penny  already  authorized 
for  technical  education,  the  farmers  had  a  real  incentive  to 
demand  a  voice  in  determining  the  employment  of  their  money. 
To  ensure  this  result,  committees  named  by  the  county  councils 
were  to  arrange,  in  consultation  with  the  officials  of  the  Depart- 
ment, the  apportionment  of  the  funds  and  to  administer  the 
various  projects.  The  danger  of  a  large  number  of  independent 
and  amateurish  local  schemes  was  thus  obviated,  while  local,  and 
so  individual,  initiative  and  energy  were  in  every  way  encouraged 
and  demanded. 

The  ordinary  Government  Board  or  Department,  especially 
when  it  is  an  organ  of  the  national  unit,  enjoys  very  little  loyalty 
or  support  from  the  individuals  with  whom  it  deals.  As  a  part  of 
a  huge  machine,  it  works  independently,  while  the  people  who 
enjoy  its  assistance  look  upon  these  services  as  their  prerogative. 
By  nature  governmental  activity,  in  performing  for  individuals 
services  which  otherwise  they  would  find  it  necessary  to  do  for 
themselves,  apparently  releases  them  from  responsibility.  For  this 
reason  the  greatest  problem  in  connection  with  all  forms  of  State 
activity  and  State  socialism  is  the  preservation  of  individual 
initiative  and  self-reliance.  The  founders  of  the  Department 


2i6        RURAL  RECONSTRUCTION  IN  IRELAND 

realized  this  inherent  danger  of  governmental  activity,  as  the 
following  quotation  from  the  first  Annual  Report  will  indicate: 
"It  is  a  chief  aim  of  the  Department  to  stimulate  rather  than  to 
weaken  the  spirit  of  industrial  self-help,  and  its  action  will  be 
governed  by  this  idea.  Its  endeavors  will  be  mainly  confined  to 
removing  the  obstacles  which  at  present  hinder  in  Ireland  the  due 
exercise  of  initiative  in  industrial  matters,  and  to  creating  a  state 
of  things  in  which  private  enterprise  can  act  with  confidence  and 
freedom."  The  provisions  for  popular  control  and  administration 
which  we  have  examined  were  in  accordance  with  that  far-seeing 
policy. 

In  carrying  out  its  important  work,  the  Department  has  en- 
joyed very  liberal  support  from  the  Government.  In  addition  to 
an  endowment  fund  of  about  £200,000,  annual  Parliamentary 
grants  of  from  £166,000  to  £400,000  have  been  made.  These 
funds  have  been  increased  by  contributions  from  the  local  rates 
in  the  manner  we  have  described,  which  amount  to  over  £100,000. 
The  disposition  of  the  grants  is  largely  in  the  hands  of  the  Boards 
of  Agriculture  and  of  Technical  Instruction,  though  certain 
assignments  within  broad  limits,  such  as  £55,000  for  technical 
instruction,  and  £10,000  for  sea  fisheries,  are  made  by  law.  The 
remainder,  a  very  considerable  amount,  is  for  the  general  purpose 
of  the  development  of  agriculture.  Until  the  law  of  1903  no  por- 
tion of  this  money  was  to  be  spent  in  the  Congested  Districts, 
but  in  view  of  the  complications  and  inequalities  which  this 
limitation  had  introduced,  it  was  then  withdrawn. 

The  activities  of  the  Department  cover  a  wide  field,  embracing 
many  forms  of  educational  and  experimental  work.  Wherever  its 
operations  can  be  carried  out  more  advantageously  on  a  local 
basis,  the  details  are  arranged  and  the  schemes  administered  by 
the  county  agricultural  committees.  Of  this  nature  are  the  various 
schemes  of  instruction  in  agriculture,  horticulture  (including  bee- 
keeping), poultry-keeping,  and  so  on.  A  large  number  of  itinerant 
instructors  are  employed  who  give  practical  assistance  wherever 


THE  DEPARTMENT  OF  AGRICULTURE         217 

it  is  required.  As  a  feature  of  this  work,  many  field  experiments 
are  conducted  in  the  various  districts.  Special  demonstration 
plots  to  give  practical  effect  to  the  recommended  purchase  of  good 
seeds  and  artificial  manures  are  arranged.  Potato  spraying  is  most 
assiduously  taught  throughout  the  country,  in  order  to  prevent 
further  disastrous  failures  of  this  important  crop.  Likewise  the 
improvement  of  live  stock,  by  the  introduction  of  high-grade 
stallions,  bulls,  etc.,  has  been  carried  on  in  connection  with  the 
county  committees.  On  the  other  hand  are  the  activities  of  less 
immediate  significance  and  of  national  rather  than  local  impor- 
tance. Here  the  Department  works  more  independently,  subject 
always,  however,  to  the  advice  and  criticism  of  the  representative 
bodies.  The  higher  and  more  specialized  branches  of  agricultural 
education,  experiments  and  investigations  into  new  crops  and 
new  methods,  the  administration  of  various  laws  relating  to 
agriculture,  loans  for  special  agricultural  purposes,  the  encourage- 
ment of  forestry,  information  as  to  markets  and  methods  of 
transit  are  provided  in  this  way.  A  fisheries  branch  of  the 
Department  has  done  much  to  improve  the  sea-  and  fresh- water 
fisheries  of  the  country.  In  the  sphere  of  technical  education  there 
are  large  grants  to  both  primary  and  secondary  schools.  Finally, 
the  Department  maintains  a  statistics  and  intelligence  branch 
which  collects  and  disseminates  information  by  means  of  reports 
and  leaflets.  The  combined  action  between  the  Department  of 
Agriculture  and  the  co-operative  movement,  recommended  by 
the  Recess  Committee,  was  facilitated  by  the  close  similarity  in 
the  principles  upon  which  both  were  founded.  While  the  two 
fields  were  quite  distinct,  each  agency  having  its  own  proper 
function,  it  was  clear  that  only  by  a  proper  co-ordination  and 
cordial  sympathy  could  the  best  results  be  obtained.  The  two 
were  complementary  and  supplementary.  In  order  to  ensure  to 
the  farmers  the  full  advantages  of  new  methods  and  ideas,  co- 
operative organization  was  necessary.  Otherwise  the  increased 
product  would  be  in  large  measure  absorbed  by  the  middlemen. 


2i8        RURAL  RECONSTRUCTION  IN  IRELAND 

. 
Moreover,  in  the  co-operative  society  was  to  be  found  the  local 

organization  necessary  to  make  many  schemes  successful.  It  was 
impossible  to  obtain  any  very  large  results  while  working  through 
individuals.  Only  when  a  number  of  farmers  were  gathered 
together  and  could  compare  results  could  this  be  done.  Much  of 
the  work  of  the  Department  was  made  effective  only  through  the 
existence  and  assistance  of  the  co-operative  societies. 

The  value  of  this  co-ordinated  effort  between  these  two  agencies 
was  indicated  by  the  early  history  of  the  Department.  Sir  Horace 
Plunkett,  who  had  been  appointed  to  the  vice-presidency,  the 
chief  executive  office,  carried  out  with  faithfulness  and  energy 
the  recommendations  for  which  he  had  been  so  largely  respon- 
sible. On  the  one  hand,  the  Department  at  once  took  over  the 
agents  of  the  I.A.O.S.  who  had  been  engaged  chiefly  in  the  work 
of  technical  education.  Since  this  change  could  not  be  accom- 
plished at  once,  a  direct  subsidy  was  given,  in  order  to  relieve 
the  Organization  Society  from  this  heavy  expense.  We  have 
already  examined  in  detail  this  policy  of  the  Department.  On  the 
other  hand,  a  great  part  of  the  work  of  the  new  educational  body 
was  carried  out  through  the  local  co-operative  societies.  "As  it 
was  on  the  basis  of  the  work  of  those  societies  that  the  new  De- 
partment was  erected,"  runs  the  first  Annual  Report,  "so  also 
it  was  through  their  co-operation  that  the  early  phases  of  the 
work,  by  no  means  easy  work,  were  rendered  in  any  degree  fruit- 
ful; in  some  cases  indeed  one  might  say  rendered  effectively 
possible."  The  lecturers  sent  out  through  the  country  testified 
that  only  where  local  organization  existed  were  the  audiences 
large  and  the  discussion  intelligent.  Likewise  the  medium  of  the 
societies  was  used  for  various  forms  of  experimental  work.  Local 
conditions  vary  very  markedly,  and  in  recommending  the  use  of 
artificial  fertilizers  and  the  like,  it  was  particularly  important  to 
take  them  into  consideration.  Of  about  two  thousand  potato  tests 
made  throughout  the  country,  practically  90  per  cent,  were 
arranged  through  co-operative  societies.  Voluntary  local  organi- 


THE  DEPARTMENT  OF  AGRICULTURE         219 

zation  immediately  proved  itself  a  most  important  if  not  essential 
accompaniment  of  the  work  of  the  new  Department. 

These  early  years  of  its  history  were  altogether  successful  as 
a  vindication  of  the  principles  and  ideals  on  which  it  had  been 
founded.  The  Report  of  the  Departmental  Committee  of  Inquiry 
in  1907  was  generally  favorable.  It  was  shown  that  the  repre- 
sentative boards  and  council,  even  though  possessing  advisory 
powers  only,  had  been  a  most  valuable  feature  of  the  scheme, 
and  that  the  combination  of  elective  and  nominated  elements  had 
been  of  general  advantage.  The  demands  from  some  quarters  for 
complete  popular  representation  and  for  increased  powers  were 
not  upheld.  Much  had  been  accomplished  in  the  education  of 
experts,  in  the  provision  of  itinerant  instructors,  and  along  many 
of  the  other  lines  which  we  have  described.  Only  in  respect  to 
the  work  in  the  Congested  Districts,  which  had  been  taken  over 
from  the  Congested  Districts  Board  in  1904,  was  the  achievement 
considered  unsatisfactory.  "We  believe,"  stated  the  report,  athe 
Department  has  been  successful  in  stimulating  throughout  Ire- 
land a  sense  that  in  various  directions  improved  conditions  of 
agriculture  are  within  reach  of  the  farmer,  and  a  desire  to  take 
advantage  of  the  methods  by  which  that  improvement  may  be 
in  some  measure  obtained.  ...  In  this  work  the  Department  has 
been  aided  by  the  cordial  co-operation  of  the  local  authorities 
throughout  Ireland  with  very  few  exceptions." 

Unfortunately  the  happy  and  mutually  advantageous  relations 
between  the  Department  and  the  co-operative  movement  were 
not  continued,  and  the  cleavage  which  has  existed  between  the 
two  agencies  has  been  the  greatest  obvious  obstacle  to  the 
development  of  Irish  agriculture  during  the  last  few  years.  Soon 
after  his  appointment,  Sir  Horace  Plunkett  lost  his  seat  in  Parlia- 
ment, but  though  it  had  been  intended  that  the  vice-presidency 
should  be  filled  by  a  Member,  by  general  consent  he  continued 
at  the  post.  In  commenting  upon  this  practical  modification  of 
the  original  Act,  the  Majority  Report  of  the  Committee  of 


220        RURAL  RECONSTRUCTION  IN  IRELAND 

Inquiry,  1907,  stated  that  the  fact  that  the  Vice-President  had 
not  been  a  Member  of  Parliament  had  proved  an  advantage 
rather  than  otherwise.  To  his  independence  from  party  politics 
was  in  large  measure  to  be  attributed  "the  absence  of  friction 
arising  from  political  and  religious  differences."  At  any  rate,  the 
retirement  of  Sir  Horace  Plunkett  in  1907,  a  step  which  he  felt 
it  necessary  to  take  in  view  of  many  attacks  by  the  Nationalists, 
and  the  restoration  of  this  provision  in  the  appointment  of  Mr. 
T.  W.  Russell,  M.P.,  to  the  vacancy,  has  been  accompanied  by  far 
less  happy  results.  Mr.  Russell  inaugurated  a  complete  change 
of  policy.  Upon  an  unfounded  charge  of  political  action  against 
Sir  Horace  Plunkett,  who  had  resumed  the  presidency  of  the 
I.A.O.S.,  the  subsidy  to  that  organization  from  the  Department 
was  withdrawn.  Co-operation  was  anathema,  and  thereafter  the 
two  agencies,  which  were  originally  conceived  as  co-workers  in 
the  economic  regeneration  of  Ireland,  have  struggled  along  dif- 
ferent paths  and  often  been  directly  opposed  to  each  other.  The 
work  of  both  has  suffered  immeasurably  in  consequence. 

For  this  situation,  Irishmen,  and  particularly  the  chosen  repre- 
sentatives of  the  Irish  people,  are  responsible.  The  Nationalist 
Party,  though  it  had  never  given  whole-hearted  support  to  the 
co-operative  movement,  had  concurred  in  the  programme  of  the 
Recess  Committee.  Home  Rule  was,  for  the  moment,  impossible, 
and  all  parties  might  reasonably  unite  to  formulate  a  practical 
measure  of  reform.  But  by  1904  the  attitude  toward  the  co- 
operative movement  had  changed.  John  Redmond,  leader  of  the 
reunited  Irish  Party,  who  had  been  a  member  of  the  Recess  Com- 
mittee, had  then  declared  that  "the  real  object  of  the  [co- 
operative] movement  ...  is  to  undermine  the  National  Party 
and  divert  the  minds  of  our  people  from  Home  Rule,  which  is 
the  only  thing  which  can  ever  lead  to  a  real  revival  of  Irish  indus- 
tries." Perpetually  and  everlastingly,  in  the  face  of  facts  again 
and  again  reiterated,  they  have  raised  this  empty  spectre  of 
co-operation  as  a  political  movement,  intended  to  wean  Ireland 


THE  DEPARTMENT  OF  AGRICULTURE         221 

from  her  just  demand  for  Home  Rule.  The  testimony  of  nearly 
three  hundred  societies  in  an  investigation  made  in  1901  did  not 
convince  them,  though  every  answer  to  the  circular  sent  out 
denied  that  the  I.A.O.S.  had  ever  interfered  in  politics,  and  stated, 
on  the  other  hand,  that  it  had  been  a  thoroughly  beneficial  agency. 
No  amount  of  evidence  from  those  directly  concerned  has  been 
sufficient,  no  argument  has  availed  until  quite  recently  to  modify 
this  unfair  and  damaging  attitude  of  hostility  which  the  Party 
has  assumed. 

Many  indications  of  this  hostility  have  been  and  continue  to 
be  given.  We  have  already  traversed  the  thorny  ground  of  the 
controversy  between  the  Department  and  the  I.A.O.S.  on  the 
question  of  financial  support,  and  have  shown  in  the  restrictions 
imposed  upon  the  grant  from  the  Development  Commissioners 
through  the  activities  of  the  Department  the  way  in  which  the 
Irish  movement,  in  contrast  with  its  English  and  Scottish  imita- 
tors, has  been  hampered.  Likewise  the  attack  upon  the  co- 
operative credit  societies,  culminating  in  the  recommendations  of 
the  Departmental  Committee  on  Agricultural  Credit,  has  already 
received  sufficient  attention.  One  or  two  additional  incidents  may 
be  narrated  here. 

In  1909,  as  the  result  of  an  inquiry  into  the  position  of  the 
Irish  butter  trade  by  a  Departmental  Committee,  a  Bill  was 
drawn  up  and  submitted  to  Parliament.  The  I.A.O.S.,  which 
represented  creameries  making  more  than  half  the  butter  ex- 
ported from  the  country,  was  not  consulted  in  this  matter,  and 
even  though  the  Bill  proposed  received  little  sympathy  among 
the  farmers,  its  carefully  formulated  recommendations  were  com- 
pletely ignored.  The  same  unwillingness  to  recognize  the  co- 
operative movement  was  displayed  soon  after  the  outbreak  of 
war.  It  was  to  be  hoped  that  in  such  a  time  of  national  crisis 
petty  differences  would  be  set  aside,  and  the  co-ordinated  action 
which  alone  would  ensure  the  most  effective  activity  on  the  part 
of  Irish  farmers  would  be  realized.  Yet  despite  every  effort  on 


222        RURAL  RECONSTRUCTION  IN  IRELAND 

the  part  of  the  I.A.O.S.  the  Department  refused  to  modify  its 
attitude.  The  great  need  in  Ireland  has  always  been  increased 
tillage,  and  this  was  rendered  many  times  more  necessary  by  the 
war  conditions.  The  Organization  Society  constructed  a  pro- 
gramme to  attain  this  end,  which  required  for  its  thorough  appli- 
cation the  assistance  of  the  Department.  Mr.  Wibberley's  scheme 
for  continuous  cropping  was  to  be  taught  throughout  the  country, 
and  was  to  be  made  possible  for  the  small-holders  by  the  co- 
operative purchase  of  the  necessary  machines.  But  the  Depart- 
ment refused  to  connect  itself  with  anything  of  this  nature,  and 
the  result  was  the  comparative  failure  of  the  campaign  for 
increased  tillage. 

This  constant  and  continued  opposition  of  the  Department  is 
to  be  explained  only  in  one  way.  The  claim  of  political  action  on 
the  part  of  the  I.A.O.S.  is  the  pretext  and  not  the  real  cause.  The 
fact  is  that  the  Department,  and  indeed  the  Nationalist  Party 
itself,  is  in  the  hands  of  the  traders.  Defeated  in  the  economic 
field,  the  vested  interests  have  maintained  their  hold  on  the 
political  life  of  the  people,  and  have  from  this  side  been  able  to 
attack  the  co-operative  movement  with  much  greater  effect.  The 
Council  of  Agriculture,  which  was  intended  to  represent  the 
farmers,  is  now  in  their  hands,  and  they  have  thus  been  able  to 
direct  the  policy  of  the  Department  in  accordance  with  their  own 
interests. 

As  long  as  this  situation  continues,  the  rapid  reconstruction 
of  Irish  agriculture,  in  such  a  way  as  to  bring  prosperity  to  the 
country,  is  rendered  practically  impossible.  Only  by  the  accept- 
ance of  the  principle  of  combined  action,  laid  down  in  the  Report 
of  the  Recess  Committee,  can  the  end  for  which  both  agencies 
were  created  be  attained.  The  Department  has  the  resources  and 
the  powers,  and  is  constituted  in  such  a  way  as  to  act  as  a  most 
effective  educational  medium.  But  its  efficiency  may  be  many 
times  increased  if  its  antagonism  to  co-operative  organization, 
which  is  subversive  in  every  way  to  progress  and  prosperity,  and 


THE  DEPARTMENT  OF  AGRICULTURE         223 

it  may  be  the  favorable  outcome  of  the  world  struggle,  can  be 
set  aside.  After  two  and  a  half  years  of  war,  some  steps  seem 
to  have  been  taken  in  that  direction.  May  this  new  policy  be 
continued,  for  only  by  the  restoration  of  co-ordinated  effort  can 
Irish  agriculture  become  the  sound  basis  of  the  economic  life  of 
a  prosperous  and  happy  nation! 


CHAPTER  XIII 

INDUSTRIAL  CO-OPERATION  AND  ITS  RELATION  TO 
THE  AGRICULTURAL  MOVEMENT 

WE  have  seen  in  a  previous  chapter  how  the  co-operative  move- 
ment in  Ireland  owed  its  first  development  to  a  happy  combina- 
tion between  Sir  Horace  Plunkett  and  the  Co-operative  Union; 
we  have  traced  the  natural  process  by  which  the  agricultural 
co-operators  of  Ireland  gradually  withdrew  from  the  English 
industrial  movement,  and  have  followed  in  detail  their  history  and 
progress.  In  order  to  complete  the  picture  it  remains  to  sketch 
the  development  of  industrial  co-operation  in  Ireland,  the  differ- 
ences of  opinion  which  have  arisen,  and  the  possibilities  of  closer 
relationship  which  the  future  has  to  offer. 

The  separation  of  the  I.A.O.S.  from  the  Co-operative  Union 
was  rendered  almost  inevitable  by  the  circumstances.  The  old 
controversy  between  the  individualists,  who  believe  in  the  organi- 
zation of  man  in  his  productive  capacity,  and  the  federalists,  who 
refer  everything  to  the  standpoint  of  the  consumer,  arose  here  in 
its  most  acute  form.  The  question  might  have  been  definitely 
settled  had  the  whole  of  the  work  lain  either  in  England  or  in 
Ireland,  or  had  England  been  less  predominantly  industrial,  or 
Ireland  less  absolutely  agricultural.  As  it  was,  the  difference 
between  the  two  schools  of  thought  was  accentuated  by  geographi- 
cal barriers,  by  racial,  temperamental  and  political  difficulties, 
and  even  by  a  certain  degree  of  class  feeling — for  the  organization 
of  poverty-stricken  agriculturists  in  Ireland  could  not  proceed 
upon  the  democratic  basis  of  the  English  movement,  and  the 
motive  of  "landlordism"  was  freely  imputed. 

224 


INDUSTRIAL  CO-OPERATION  225 

Yet  the  two  bodies  might  have  worked  side  by  side,  each  in 
its  own  sphere,  with  mutual  benefit,  had  it  not  been  for  an  unfor- 
tunate conflict  which  arose.  Before  the  pioneers  of  agricultural 
co-operation  began  their  work  in  Ireland  the  Co-operative  Whole- 
sale Society  of  Manchester  had  seen  the  possibility  of  that 
country  as  a  source  of  agricultural  produce,  and  had  established 
an  agency  there  for  the  buying  of  supplies,  notably  butter.  During 
the  first  four  or  five  years  of  the  work  preliminary  to  the  founda- 
tion of  the  I.A.O.S.,  the  attitude  of  the  C.W.S.  was  friendly,  and 
its  chief  agent  in  Ireland,  recognizing  the  value  of  creameries  in 
improving  the  output  of  butter,  gave  considerable  assistance  in 
organizing  them.  But  the  C.W.S.  had  to  consider  primarily  the 
interests  of  the  consumers  for  whom  it  existed,  and  only  con- 
cerned itself  in  a  less  degree  with  the  welfare  of  the  producer. 
Thus  while  the  Co-operative  Union  was  genuinely  desirous  of 
spreading  the  doctrine  of  co-operation  in  Ireland,  the  C.W.S., 
as  its  buyer,  Mr.  Stokes,  frankly  stated  in  a  speech  to  Congress, 
was  only  anxious  as  a  matter  of  business  for  the  establishment 
of  creameries,  "co-operative  or  otherwise,"  from  which  it  might 
draw  supplies. 

In  these  circumstances  friction  was  certain  to  arise.  The  forma- 
tion in  the  early  days  of  1895  of  the  Irish  Co-operative  Agency 
Society,  with  a  depot  in  Manchester,  must  have  presented  itself 
to  the  agents  of  the  C.W.S.  as  a  direct  challenge  to  their  prospects 
of  unfettered  buying  in  Ireland,  and  caused  them  to  feel  the  new 
movement  as  a  competitive  menace  rather  than  an  addition  to 
the  co-operative  ranks.  Co-operators  are  only  human,  and  they 
value  their  business  perquisites  as  highly  as  other  men.  The 
C.W.S.  was  almost  committed  to  a  policy  of  self-defence.  Unfor- 
tunately, in  the  same  year,  a  creamery  at  Castlemahon,  which  had 
been  organized  by  the  I.A.O.S.  and  had  been  supplying  the 
C.W.S.  with  butter,  fell  into  a  condition  of  absolute  collapse.  The 
reason  seems  to  have  been  the  inefficiency  of  the  committee,  who, 
according  to  Mr.  Anderson,  spent  their  time  squabbling  over 


226        RURAL  RECONSTRUCTION  IN  IRELAND 

political  matters  instead  of  attending  to  the  manufacture  of 
butter.*  When  it  was  seen  that  there  was  no  hope  of  the  creamery 
being  revived,  and  that  it  would  probably  be  sold,  the  C.W.S. 
stepped  in  and  leased  it  for  a  year,  after  which,  having  given  the 
farmers  an  opportunity  to  resume  control,  and  having  found  them 
unwilling  to  do  so,  it  bought  the  creamery  outright,  and  pro- 
ceeded to  run  it  on  ordinary  proprietary  lines.  Having  taken  this 
step,  the  English  co-operators  saw  no  reason  why  the  practice 
should  not  be  extended.  The  C.W.S.  announced  its  intention  of 
establishing  three  or  four  more  creameries  in  various  parts  of 
Ireland.  To  the  leaders  of  the  I.A.O.S.  this  seemed  a  flagrant 
attack  upon  the  agricultural  movement.  A  creamery  owned  by  the 
C.W.S.  did  not  provide  Irish  farmers  with  any  opportunity  for 
practising  improved  business  methods,  or  for  learning  the  great 
lesson  of  mutual  help  and  democratic  control.  In  fact,  a  farmer 
dealing  with  such  a  creamery  was  no  more  co-operating  than 
when  he  dealt  with  an  ordinary  merchant,  and  was  not  in  a  posi- 
tion to  get  any  better  terms  except  in  so  far  as  the  spirit  of  the 
C.W.S.  might  be  better  than  that  of  the  average  trading  company. 
The  Irish  section  of  the  Co-operative  Union,  which  was  then 
dominated  by  agricultural  co-operators,  protested  vigorously,  and 
a  pitched  battle  was  waged  in  the  Congress  of  1895.  Irish  co- 
operators  found  many  supporters  in  the  English  movement. 
Those  members,  in  particular,  whose  interest  in  co-operation 
proceeded  rather  from  idealism  than  from  practical  necessity 
tended  to  identify  themselves  with  the  individualist  policy,  and 
looked  with  apprehension  on  the  all-embracing  ambitions  of  the 
C.W.S.  Prominent  among  these  were  such  men  as  Mr.  Greening, 
Mr.  Wolff,  and  the  celebrated  Judge  Hughes.  But  the  speech  of 
Mr.  Stokes  carried  great  authority  with  the  rank  and  file,  and 
after  a  heated  discussion  the  C.W.S.  came  out  victorious.  As  a 
natural  result  the  same  policy  was  continued,  and  a  source  of 

*  This  appears  to  be  the  only  case  in  the  history  of  the  I.A.O.S.  in  which  political 
dissensions  have  been  fatal  to  a  society. 


INDUSTRIAL  CO-OPERATION  227 

friction  created  which  led  to  the  speedy  separation  of  the  I.A.O.S. 
from  the  Irish  section  of  the  Co-operative  Union,  although  the 
latter  body  remained  on  friendly  terms  with  the  agricultural  co- 
operators  long  after  the  breach  with  the  C.W.S. 

These  happenings  were  disastrous  enough,  but  the  terms  in 
which  the  controversy  was  conducted  were  even  more  unfortu- 
nate. As  these  events  are  well  within  the  memory  of  a  large 
number  of  persons  who  are  still  leaders  in  the  movement,  and 
the  scars  seem  now  to  be  happily  healing,  it  would  be  highly 
inexpedient  to  revive  bitter  memories  by  quoting  the  heated 
speeches  made  at  Congress,  or  the  violent  letters  and  leading 
articles  which  appeared  in  the  columns  of  the  Irish  Homestead 
on  the  one  side  and  the  Co-operative  News  on  the  other.  Many 
motives  were  imputed  to  either  party  which  certainly  never 
existed  in  the  minds  of  the  great  mass  of  co-operators.  The  facts 
also  were  variously  represented,  probably  not  from  any  desire 
to  deceive,  but  because  they  were  not  thoroughly  known. 

There  is  no  need  to  dwell  on  the  history  of  these  creameries. 
For  two  or  three  years  their  number  increased  until  there  were 
altogether  about  twenty.  Many  were  undoubtedly  established 
in  places  where  co-operative  creameries  might  have  been  organ- 
ized, while  others  overlapped  the  territory  of  existing  societies 
and  competed  with  them  for  supplies  of  milk.  At  first  the  C.W.S. 
had  no  difficulty  in  establishing  them.  In  fact,  it  was  one  of  the 
arguments  used  at  Congress  that  the  farmers  actually  invited  it 
to  do  so — to  which  Sir  Horace  Plunkett  and  Mr.  Anderson 
retorted  that  in  the  beginning  Irish  farmers  were  so  unused  to 
combination  that  they  themselves  on  going  into  a  district  had 
often  been  implored  to  start  a  creamery  of  their  own  instead  of 
organizing  a  co-operative  society.  But  as  the  propaganda  of  the 
I.A.O.S.  began  to  gain  ground,  and  the  co-operative  creameries 
became  really  successful,  the  pressure  on  the  C.W.S.  concerns 
increased  tremendously,  and  their  owners  began  to  realize  the 
serious  difficulties  of  doing  business  with  Irish  farmers  from  a 


228        RURAL  RECONSTRUCTION  IN  IRELAND 

distance  in  competition  with  organized  bodies  which  enjoyed  all 
the  advantages  of  co-operative  association  and  of  the  supervision 
of  the  I.A.O.S.  The  balance-sheets  showed  increasing  losses  year 
by  year,  the  consumers  began  to  get  restless  and  to  suggest  that 
this  was  an  expensive  method  of  acquiring  butter,  and  finally  the 
C.W.S.  decided  to  retire  from  the  contest.  Negotiations  went  on 
for  some  years  with  the  I.A.O.S.,  and  although  there  were  many 
misunderstandings,  a  transfer  of  all  the  C.W.S.  creameries  to 
co-operative  societies  is  gradually  being  effected.*  The  selling 
price  is  arrived  at  by  agreement  between  the  society  and  the 
C.W.S.  through  the  mediation  of  the  I.A.O.S.  The  Scottish  Co- 
operative Wholesale  Society  has  been  less  willing  to  retire,  and 
still  owns  a  group  of  creameries  in  the  North  of  Ireland  which 
are  a  thorn  in  the  flesh  to  the  local  co-operative  societies. 

We  have  stated  the  reasons  which  led  the  I.A.O.S.  to  regard 
the  establishment  of  the  creameries  as  an  undesirable  intrusion  on 
their  territory.  The  supporters  of  the  C.W.S.  claim  that  they 
went  into  the  business  with  the  object  of  helping  the  Irish  farmer 
to  raise  his  standard  of  production,  and  to  obtain  better  prices, 
and  many  of  them  still  believe  that  the  Wholesale  Society  spent 
£100,000  (the  amount  which  is  alleged  to  have  been  lost  in  this 
venture)  in  a  laudable  attempt  to  bring  the  benefits  of  co- 
operation to  Ireland,  and  received  scant  gratitude  in  return.  To 
agricultural  co-operators  this  view  seems  distorted,  but  there  is 
no  reason  to  doubt  that  it  is  perfectly  genuine.  It  is  satisfactory 
to  note  that  the  bitterness  which  existed  so  long  has  been  rapidly 
dying  since  the  outward  and  visible  sign  was  removed.  It  prob- 
ably received  its  final  death-blow  when  the  Co-operative  Congress 
was  held  in  Dublin  in  1914  for  the  first  time.  This  Congress  was 
attended  by  all  the  leaders  of  the  agricultural  movement  in  Ire- 
land, and  a  good  deal  of  its  time  was  devoted  to  the  question  of 

*  There  remains  now  only  the  Central  Creamery  at  Tralee,  with  three  auxiliaries. 
These  are  retained  by  the  C.W.S.,  as  they  can  be  conveniently  worked  in  connec- 
tion with  the  bacon-curing  establishment  which  that  body  owns  in  Tralee. 


INDUSTRIAL  CO-OPERATION  229 

interworking  between  urban  and  rural  co-operators.  This  scheme 
has  been  earnestly  taken  up  on  all  hands  within  the  last  two  or 
three  years,  and  the  moment  seems  to  be  at  hand  when  the  two 
branches  of  the  movement  may  join  forces  in  some  matters  to 
their  great  mutual  advantage. 

The  history  of  the  development  of  industrial  co-operation  in 
Ireland  which  has  taken  place  independently  of  the  I.A.O.S. 
need  not  detain  us  very  long.  We  have  already  described  the 
manner  in  which  Mr.  Gray  of  the  Co-operative  Union  was  sent 
to  Ireland  in  1888  and  there  came  into  touch  with  Sir  Horace 
Plunkett  and  helped  to  give  the  first  stimulus  to  all  the  subsequent 
work.  In  his  report  to  Congress,  Mr.  Gray  described  some 
thirteen  societies  as  comprising  the  whole  field  of  co-operation 
in  Ireland.  Of  these  hardly  one  was  in  a  condition  which  inspired 
confidence.  Some,  like  Sir  Horace's  pioneer  society  at  Dunsany, 
were  organized  under  the  Companies  Act  and  paid  their  dividends 
on  capital;  others,  like  Belfast  and  Lisburn,  were  in  earliest  in- 
fancy and  somewhat  doubtful  of  the  future,  and  yet  others, 
notably  the  Dublin  society,  which  owed  its  foundation  to  the 
enthusiasm  of  Dr.  Knox  Denham,  were  constantly  in  trouble 
caused  by  the  ignorance  or  irresponsibility  of  their  committees. 
The  combined  turnover  was  almost  negligible.  Worse  still,  there 
was  no  sort  of  cohesion;  the  societies  were  scattered  units  owing 
their  existence,  as  a  rule,  to  the  presence  in  the  locality  of  some 
migratory  co-operator  or  some  economic  experimentalist,  and 
barely  conscious  of  the  existence  of  one  another.  Co-operative 
principles  were  differently  interpreted  in  different  societies,  and 
as  a  whole  there  was  little  faith  or  enthusiasm  and  no  nucleus  for 
propagandist  effort. 

On  the  recommendation  of  Mr.  Gray,  the  North-Western 
Section  of  the  Co-operative  Union,  in  whose  district  Ireland  was 
supposed  to  lie,  undertook  the  task  of  bringing  more  life  into  the 
movement,  and  the  various  existing  societies  were  approached 
with  this  end.  Only  one  or  two,  among  which  was  Sir  Horace's, 


230        RURAL  RECONSTRUCTION  IN  IRELAND 

seem  to  have  responded.  But  the  enthusiasm  shown  by  Sir 
Horace,  Mr.  Anderson  and  one  or  two  others  led  to  the  formation 
of  a  distinct  Irish  section.  We  have  seen  how  this  section  speedily 
decided  to  abandon  the  programme  of  founding  stores  and  to 
confine  its  activities  to  agricultural  co-operation.  It  was  gradually 
merged  into  the  I.A.O.S.,  and  automatically  dissolved  when  the 
break  with  the  C.W.S.  and  the  divergence  of  policy  made  it 
necessary  for  the  Co-operative  Union  and  the  I.A.O.S.  to  separate 
their  forces. 

Since  that  time  the  organization  of  co-operative  stores  of  the 
Rochdale  type  in  the  urban  areas  of  Ireland  has  been  in  the  hands 
of  the  Co-operative  Union,  acting  either  through  the  North- 
Western  Section  or  through  an  Irish  Sectional  Board  which  has 
been  constituted  under  the  name  of  the  Irish  Co-operative  Con- 
ference Association.  The  I.A.O.S.,  however,  recognized  after  a 
few  years  that  in  certain  country  districts  it  was  desirable  to 
have  this  type  of  organization,  and  a  good  many  small  general 
stores  were  added  to  the  creameries  and  agricultural  societies. 
The  need  of  such  stores  is  increasingly  felt  throughout  the  rural 
areas,  but  there  is  little  chance  for  the  officials  of  the  Co- 
operative Union  to  cover  ground  which  is  at  once  so  extensive 
and  so  unfamiliar  to  them,  and  now  that  the  I.A.O.S.  is  debarred 
by  the  restrictions  which  we  have  already  discussed  the  want 
seems  likely  to  go  unfulfilled.  Fortunately,  however,  no  Govern- 
ment grant  can  prevent  a  society  started  by  the  I.A.O.S.  from 
branching  out  subsequently  into  the  purchase  of  tea,  sugar  and 
other  groceries,  and  this  development  is  taking  place  to  a  very 
large  extent.  Furthermore,  the  I.A.W.S.,  not  being  affiliated  to 
the  I.A.O.S.,  and  thus  subject  to  the  restrictions,  is  in  a  position 
to  give  help  and  encouragement  to  such  bodies  in  addition  to 
supplying  their  necessary  stock  in  trade. 

To  return  to  the  more  purely  "industrial"  societies,  no  one  will 
envy  the  officials  of  the  Irish  Co-operative  Conference  Association 
the  task  of  promoting  this  movement  in  Ireland  during  the  last 


INDUSTRIAL  CO-OPERATION  231 

thirty  years.  Mr.  Gray,  as  we  have  noted,  reported  thirteen 
societies  in  1888.  The  statistics  of  the  Co-operative  Union  for 
1916  show  thirty-eight  societies  with  a  combined  turnover  of  over 
£700,000.  Of  this  turnover,  however,  the  Belfast  society  alone 
is  responsible  for  £420,000.  The  next  largest  is  Lisburn  with 
£52,000,  and  there  are  only  four  others  whose  annual  trade  runs 
into  five  figures.  Excluding  Belfast  and  Lisburn  the  profits  avail- 
able for  distribution  were  not  more  than  £7500.  Of  the  thirty- 
eight  societies  it  is  safe  to  say  that  not  more  than  half  are  really 
prospering,  and  of  these  at  least  two  arose  out  of  the  agricultural 
movement.  The  record  is  hardly  an  encouraging  one,  but  there 
is  no  reason  to  blame  either  the  Union  or  the  principles  of  the 
movement.  Circumstances  in  Ireland  are  not  in  any  way  suitable 
to  a  great  development  of  co-operative  stores  unless  they  are 
scattered  throughout  the  rural  districts  as  they  are  in  Denmark. 
Almost  all  of  the  thirteen  hundred  centres  in  England  and  Scot- 
land where  the  distributive  movement  flourishes  offered  a  better 
field  for  organization  than  any  place  in  Ireland,  with  the  excep- 
tion of  ten  or  twelve  towns  in  the  north-eastern  counties.  Not 
only  is  a  large  town  required,  but  one  in  which  there  is  some 
manufacture  or  staple  industry  maintaining  a  population  which 
is  more  or  less  free  to  do  as  it  likes  outside  working  hours.  Ireland 
has  practically  no  large  towns,  and  all  the  towns  there  are,  with 
one  or  two  exceptions,  are  centres  of  distribution  for  the  surround- 
ing farmers ;  thus  their  population  is  all  either  employed  by  shop- 
keepers and  publicans,  or  belongs  to  the  minor  professional  ranks, 
and  out  of  such  a  population  it  is  patently  impossible  to  form  a 
co-operative  store.  The  only  way  it  can  be  done  is  for  the  farmers, 
who  have  the  money  and  the  independence,  to  take  the  first  step, 
and  let  the  townsfolk  follow. 

A  glance  at  the  list  of  the  existing  societies  and  the  figures 
of  their  trade  will  bear  out  this  contention.  Belfast,  where  condi- 
tions are  far  more  similar  to  those  of  Great  Britain  than  any 
other  place  in  Ireland,  has  nearly  15,000  members,  and  its  turn- 


232        RURAL  RECONSTRUCTION  IN  IRELAND 

over  seems  likely  soon  to  reach  £500,000,  and  to  keep  on  increas- 
ing. Lisburn,  a  much  smaller  place,  but  subject  to  the  same 
conditions,  has  done  equally  well,  or  perhaps  better  in  proportion. 
Co-operation  seems  well  rooted  on  a  small  scale  at  Portadown, 
Armagh,  Dundalk,  Enniskillen,  and  one  or  two  other  northern 
towns.  For  the  rest,  Enniscorthy  and  Templecrone  are  primarily 
agricultural  societies,  while  Greenore,  Rosslare  and  Inchicore 
owe  their  stability  to  the  railway  workers,  who  compose  almost 
the  whole  of  their  membership.  In  Dublin  the  vicissitudes  of  co- 
operation have  been  many,  but  it  seems  at  last  as  if  a  strong 
development  might  take  place.  Here,  as  in  many  other  parts  of 
Ireland,  extreme  poverty,  which  Mr.  Gray  reported  in  1888  as 
being  a  prime  obstacle  to  the  growth  of  co-operation,  is  still  a 
deterrent. 

War  conditions  have  increased  the  appeal  of  the  co-operative 
store  very  greatly,  and  the  movement  is  exciting  interest  in 
quarters  where  it  has  been  accustomed  to  meet  with  indifference 
or  contempt.  This  tendency  has  been  particularly  noticeable  in 
Ireland,  and  appeals  for  the  starting  of  stores  continually  reach 
both  the  I.A.O.S.  and  the  I.C.C.A.  from  all  parts  of  the  country. 
The  circumstances  in  most  of  these  places  being  such  as  we  have 
described,  the  opportunity  cannot  be  turned  to  really  profitable 
account  except  by  joint  working  between  the  two  organizing 
bodies. 

The  most  casual  consideration  of  the  facts  as  recorded  will 
inevitably  suggest  that  the  harmonious  growth  of  the  co-operative 
movement  in  Ireland  has  been  very  much  retarded  by  the  separa- 
tion of  agricultural  and  industrial  interests.  The  clash  between 
the  C.W.S.  and  the  I.A.O.S.  must  be  held  responsible  as  the  first 
cause,  and  the  acceptance  by  the  latter  of  the  Government  grant, 
with  its  restrictive  conditions,  as  the  second. 

The  first  difficulty  has  died  out  almost  entirely;  the  second 
will  be  automatically  removed  as  soon  as  the  societies  affiliated 


INDUSTRIAL  CO-OPERATION  233 

to  the  I.A.O.S.  grasp  the  advantages  which  they  will  gain  by 
fulfilling  their  obvious  duty  of  making  this  body  self-supporting. 

There  are  two  directions  in  which  improvement  is  urgently 
required — first,  in  the  matter  of  organization;  and,  secondly,  in 
the  matter  of  intertrading.  The  first  is  comparatively  a  minor 
problem  and  can  be  easily  disposed  of.  We  have  already  described 
the  difficulties  which  beset  the  I.C.C.A.,  and  shown  that  co- 
operation can  only  be  successfully  introduced  into  small  Irish 
towns  by  starting  with  a  farmers'  society.  An  unsuccessful  attempt 
to  start  a  store  among  the  townspeople  results  in  a  reaction 
against  co-operation  which  affects  the  agricultural  population 
as  well.  Evidently  there  is  great  need  here  for  consultation 
between  the  I.A.O.S.  and  the  I.C.C.A.  before  fresh  ground  is 
broken  in  any  such  district.  If  the  I.A.O.S.  were  free  to  organize 
stores  it  would  no  doubt  be  considered  the  proper  body  to  do  so 
in  the* real  country  places  where  it  has  started  them  in  the  past; 
but  it  would  never  aspire  to  take  out  of  the  hands  of  the  Co- 
operative Union  the  supervision  of  such  purely  industrial  socie- 
ties as  Belfast  and  Lisburn.  There  would  seem,  therefore,  to  be 
room  for  a  common  council  in  Ireland  to  deal  with  questions  of 
organization  where  there  was  a  possibility  of  overlapping.  With 
greater  freedom  for  the  I.A.O.S.,  the  I.C.C.A.  might  easily 
become  such  a  council.  Already,  Mr.  Harold  Barbour,  who  is 
thoroughly  sympathetic  with  both  sides  of  the  movement,  has 
done  much  to  bring  about  this  result,  and  it  is  satisfactory  to 
note  as  a  sign  of  progress  that  one  of  the  organizers  of  the  I.A.O.S. 
has  been  elected  to  membership  of  the  I.C.C.A. 

A  far  greater  problem  is  presented  by  the  need  of  creating  a 
satisfactory  system  of  intertrading;  in  fact,  it  may  be  argued 
that  the  future  strength  of  the  co-operative  movement  in  the 
United  Kingdom  will  be  largely  affected  by  what  is  done  in  this 
direction. 

The  disinterested  observer  will  certainly  arrive  at  the  conclu- 
sion that  the  weakest  point  in  agricultural  co-operative  policy  lies 


234        RURAL  RECONSTRUCTION  IN  IRELAND 

in  the  failure  to  trace  its  products  right  through  to  their  ultimate 
destination.  The  claim  is  made  that  co-operation  not  only  effects 
economies  of  production  and  handling  for  the  producer,  but  also, 
by  the  elimination  of  the  middleman,  eases  the  burdens  of  the 
consumer.  If  this  claim  is  to  be  substantiated,  it  must  be  possible 
to  show  that  a  pound  of  butter  made  in  a  co-operative  creamery 
is  likely  to  reach  the  consumer  at  a  more  reasonable  price  than 
one  made  in  the  ordinary  butter-merchant's  factory.  No  such 
state  of  things  exists  at  present,  except  perhaps  in  a  limited 
number  of  cases  where  agricultural  societies  sell  direct  to  indus- 
trial societies.  Obviously  it  will  not  exist  so  long  as  creameries 
dispose  of  their  produce  to  the  ordinary  wholesale  or  retail  trade. 
In  the  first  place  there  is  every  inducement  to  the  producers  to 
take  full  advantage  of  the  highest  prevailing  market  price,  and, 
secondly,  there  is  no  reason  why  the  provision  merchant,  if  he 
were  so  fortunate  as  to  obtain  butter  from  co-operative  sources 
at  a  low  price,  should  give  the  advantage  of  this  to  his  customers. 
Even  if  from  a  motive  of  competition  or  forbearance  he  were  to 
do  so,  he  would  certainly  not  advertise  the  fact  that  he  was  en- 
abled to  make  the  reduction  because  of  the  development  of  the 
co-operative  movement. 

Direct  dealings  between  co-operators  would  seem  to  be  the 
only  way  to  meet  this  difficulty.  Theoretically  those  who  practise 
the  same  faith  ought  to  be  able  to  do  business  together  in  a  spirit 
of  compromise  which  would  be  mutually  beneficial,  and  to  halve 
the  surplus  which  they  are  saving  by  dispensing  with  the  middle- 
man. But  in  practice  the  manager  of  a  creamery  is  bound  to  do 
all  that  he  can  to  get  the  maximum  price  for  his  butter  in  order 
to  give  satisfactory  returns  to  the  milk-suppliers  who  employ 
him,  while  the  committee  of  a  distributive  society  are  equally 
bound  to  buy  as  well  as  they  can  in  the  interests  of  the  consumers 
who  have  elected  them  with  the  distinct  understanding  that  they 
will  bring  about  an  economy  in  the  cost  of  food.  The  problem  is 
further  complicated  by  the  deep-rooted  suspicion  which  so  often 


INDUSTRIAL  CO-OPERATION  235 

exists  on  either  side:  the  farmer  dreads  the  supposed  trickery  of 
the  townsman,  the  townsman  complains  of  the  extortionate 
practices  of  the  farmer.  This  human  element  is  the  hardest  factor 
to  overcome;  it  is  not  removed,  in  fact  it  seems  almost  strength- 
ened, by  organization  on  either  side,  for  people  are  apt  to  act 
more  forcibly  under  the  protection  of  corporate  existence  than 
they  would  as  individuals.  It  is  unfortunate  and  perhaps  disap- 
pointing, but  nevertheless  true,  that  the  co-operative  producer 
and  the  co-operative  consumer  comparatively  seldom  do  business 
with  one  another  on  co-operative  lines,  as  things  are  constituted 
at  present. 

When  we  look  for  a  solution  we  are  brought  once  more  face 
to  face  with  the  old  conflict  of  individualism  and  federalism, 
which  we  have  already  referred  to  as  being  the  underlying  cause 
of  the  trouble  between  the  C.W.S.  and  the  I.A.O.S.  It  is  a  burning 
question  at  present  in  England  whether  the  independent  co- 
operative factories,  mills  and  workshops  should  continue  to  exist 
and  sell  their  products  to  co-operative  societies  or  any  other 
customers,  or  whether  all  these  functions  should  be  taken  over 
by  the  C.W.S.  There  is  a  great  pressure  on  the  leaders  of  the 
movement  to  extend  the  control  of  the  sources  of  supply.  It  is 
universally  recognized  that  co-operation  will  not  have  realized 
its  full  strength  until  it  has  this  control,  and  the  question  has 
been  made  more  urgent  by  the  conditions  of  war.  Any  attempt 
to  control  sources  of  supply  must  include  the  acquisition  of  land, 
and  in  consequence  we  find  that  the  English  and  Scottish  Whole- 
sales, and  a  certain  number  of  the  larger  individual  societies,  are 
buying  or  renting  farms  and  producing  their  own  milk  and  butter 
and  other  agricultural  requirements.  The  total  acreage  thus 
farmed  in  1915  was  14,000  acres,  and  a  rapid  increase  is  taking 
place.  This  development  is,  of  course,  directly  in  opposition  to 
the  interests  of  agricultural  co-operative  societies.  It  represents 
a  triumph  for  the  federalist  school — a  decided  step  in  the  direction 
of  carrying  out  all  organization  from  the  point  of  view  of  the 


236        RURAL  RECONSTRUCTION  IN  IRELAND 

consumers '  interests.  However  much  idealistic  considerations  may 
make  for  adherence  to  the  views  of  the  individualist  school,  the 
hard  facts  must  be  faced.  Co-operation  will  not  grow  into  an 
ordered  system,  able  to  influence  the  whole  economic  life  of  the 
country,  until  it  has  eliminated  conflicting  interests.  If  it  is  ad- 
mitted that  the  interests  of  the  producer  and  the  consumer  con- 
flict, and  that  one  or  the  other  must  give  way,  it  is  surely  evident 
that  one  must  be  the  producer.  Every  man  is  a  consumer,  and, 
therefore,  a  form  of  organization  which  leads  to  all  consumers 
being  fairly  treated  would  be  an  ideal  one.  The  co-operative 
commonwealth,  when  it  comes,  must  be  a  State  of  this  kind,  in 
which  justice  is  done  to  every  consumer,  and  production  is  under- 
taken under  the  control  of  and  in  proportion  to  the  needs  of  the 
community.  So  much  was  foreseen  by  Robert  Owen  and  his  col- 
leagues in  the  earliest  days  of  labor  organization.  But  complete 
justice  cannot  be  done  in  this  way  until  the  co-operative  com- 
munity includes  every  one.  That  state  appears  to  be  as  far  off 
as  the  millennium,  and  meanwhile,  although  it  is  useless  to  try 
and  stop  the  acquisition  of  land  by  distributive  societies,  some 
practical  steps  should  be  taken  to  promote  better  relations 
between  producers  and  consumers.  Even  if  the  federalist  idea 
prevails,  the  two  different  types  of  society  will  continue  to  exist 
side  by  side  for  many  years  to  come,  and  from  considerations 
of  business  as  well  as  of  goodwill  every  effort  should  be  made 
to  bring  them  together. 

There  is  a  practical  manner  in  which  this  can  be  done,  and  the 
machinery  for  giving  effect  to  it  is  being  used  in  Ireland  already. 
If  the  local  agricultural  and  industrial  societies  cannot  sufficiently 
adjust  their  points  of  view  to  do  business  with  one  another,  the 
balance  can  be  adjusted  by  a  wholesale  society  to  which  both 
are  federated.  Education  will  no  doubt  result  in  the  course  of 
time  in  convincing  the  co-operator  that  the  interests  of  the  con- 
sumer and  the  producer  are  identical;  for  if  the  consumer  of 
butter  is  made  to  pay  too  much  for  it  the  reflex  action  will  be 


INDUSTRIAL  CO-OPERATION  237 

for  the  demand  to  fall  off,  and  ultimately  the  farmer  will  find 
himself  unable  to  buy  as  much  tea  and  sugar  as  he  requires.  But 
before  the  masses  are  educated  up  to  the  point  of  perceiving  this 
perpetual  process  of  exchange,  their  business  guides  ought  to  be 
able  to  make  use  of  it.  A  co-operative  wholesale  society,  in  fact, 
should  regulate  the  exchange  of  commodities  between  the  two 
parties. 

The  Irish  Agricultural  Wholesale  Society,  largely  owing  to  the 
insight  of  its  present  chairman,  Mr.  Barbour,  who  has  had  long 
experience  of  both  branches  of  the  movement,  has  grasped  this 
opportunity.  The  societies  of  which  it  is  the  trade  federation  in- 
clude industrial  stores  as  well  as  creameries  and  agricultural 
societies;  thus  it  is  in  a  unique  position  for  keeping  the  balance 
between  them.  An  agreement  has  been  arrived  at  by  which  the 
English  and  Scottish  wholesale  societies  undertake  not  to  overlap 
with  the  I.A.W.S.,  and  to  refer  all  newly  formed  societies  in  Ire- 
land wishing  to  trade  with  them  to  that  body.  As  the  I.A.W.S.  is 
managed  by  directors  appointed  by  the  federated  societies,  these 
directors  are  in  a  position  to  represent  both  the  interests.  Theo- 
retically, therefore,  the  difficulty  is  solved,  but  in  practice  there 
is  a  great  deal  more  to  be  done.  Three  obstacles  stand  in  the  way. 
In  the  first  place,  the  balance  in  numbers  and  trade  of  the  Irish 
societies  is  overwhelmingly  in  favor  of  agricultural  co-operation, 
and  the  I.A.W.S.  must,  therefore,  be  largely  dominated  by  these 
societies.  Secondly,  the  federation  is  not  sufficiently  capitalized 
even  for  its  agricultural  business,  still  less  to  deal  with  the  grocery 
trade  of  large  industrial  societies.  Thirdly,  it  is  not  at  present  in 
a  sufficiently  strong  position  to  be  able  either  to  offer  the  most 
attractive  market  to  the  agricultural  societies  or  to  bind  them  to 
sell  through  it. 

These  three  difficulties  are  largely  interconnected,  and  it  would 
seem  as  if  the  solution  of  them  lies  in  a  closer  connection  with 
the  English  and  Scottish  movements.  The  turnover  of  the  dis- 
tributive societies  in  Ireland,  urban  and  rural  together,  exclusive 


238        RURAL  RECONSTRUCTION  IN  IRELAND 

of  the  trade  in  agricultural  requirements,  will  soon  total  fully 
£1,000,000,  while  the  creameries  alone  are  disposing  of  butter 
and  eggs  valued  at  £3,500,000.  The  English  and  Scottish  societies 
ought  to  be  able  very  easily  to  dispose  of  this  amount  of  butter 
and  eggs,  not  to  speak  of  the  bacon,  meat,  potatoes,  honey,  poultry 
and  other  agricultural  produce  which  they  might  get  from  Ireland. 
And  the  English  and  Scottish  wholesale  societies  might  use  the 
I.A.W.S.  as  source  for  these  supplies.  In  return  they  ought  to  be 
in  a  position  to  enable  it  to  cater  for  the  £1,000,000  of  distributive 
trade  and  any  increase  which  may  take  place.  As  it  is,  however, 
the  trade  of  the  I.A.W.S.,  although  it  has  been  increasing  in  the 
most  satisfactory  way  year  by  year,  has  barely  reached  half  a 
million,  and  of  this  the  greater  part  is  made  up  of  the  sale  of 
fertilizers,  feeding-stuffs  and  machinery.  The  sales  both  of  the 
grocery  department,  on  the  one  hand,  and  of  the  agricultural 
produce  department,  on  the  other,  are  comparatively  speaking 
very  small.  It  is  thus  evident  that  several  million  pounds'  worth 
of  trade  which  should  pass  entirely  through  co-operative  channels 
is  now  passing  outside  the  control  of  the  movement.  This  situation 
can  hardly  be  remedied  until  the  leaders  of  co-operation  in  Eng- 
land give  their  attention  to  it,  and  recognize  the  proper  value  of 
Irish  agricultural  co-operators  and,  above  all,  of  their  trade 
federation. 

As  we  have  pointed  out  above,  circumstances  in  Ireland  are 
not  favorable  to  the  development  of  industrial  co-operation  on 
a  large  scale.  The  balance  of  power  on  the  directorate  of  the 
I.A.W.S.  is  not  likely  to  be  equalized  in  this  way,  although  with 
the  lapse  of  time  and  greater  freedom  for  the  I.A.O.S.  the  growth 
of  rural  stores  may  lead  to  a  greater  keenness  among  agriculturists 
for  the  distributive  side  of  co-operation.  But  without  waiting  for 
this  to  happen,  the  position  would  be  considerably  improved  if 
the  C.W.S.  and  the  S.C.W.S.  so  extended  their  policy  with  regard 
to  overlapping  as  to  cause  all  existing  societies  in  Ireland  to  do 
their  business  through  the  I.A.W.S.  The  trade  of  the  Belfast 


INDUSTRIAL  CO-OPERATION  239 

society  is  at  present  greater  than  that  of  the  federation;  its  capi- 
tal is  considerably  greater.  The  I.A.W.S.  could  not  handle  at 
once  all  its  trade,  but  it  seems  a  pity  that  such  a  development 
is  not  aimed  at,  so  that  the  full  forces  of  the  Irish  movement 
could  be  combined.  At  the  same  time  the  question  of  capital,  in 
which  the  I.A.W.S.,  primarily  an  agricultural  federation,  is  weak 
for  reasons  we  have  discussed  in  another  chapter,  can  only  be 
settled  when  such  societies  as  Belfast  are  able  to  join  in  support- 
ing it.  A  vicious  circle  seems  to  arise — these  large  societies  cannot 
support  the  federation  until  it  is  able  to  do  their  trade,  and  it 
cannot  do  their  trade  until  it  has  the  capital  which  they  alone 
can  supply.  The  question  then  arises  whether  the  C.W.S.  cannot 
be  helpful  here  also. 

At  first  sight  it  may  seem  an  extraordinary  suggestion  that  the 
great  English  federation  should  not  only  voluntarily  surrender 
part  of  its  trade,  but  also  proceed  to  finance  the  competitor  to 
whom  it  has  made  the  surrender.  But,  aside  from  the  fact  that 
to  act  for  the  greatest  good  to  the  greatest  number  is  the  essence 
of  co-operation,  the  C.W.S.  should  have  a  great  deal  to  gain  by 
thus  strengthening  the  hands  of  the  I.A.W.S.  For  in  this  way  it 
will  put  the  latter  body  into  a  position  to  act  as  its  agent  in  the 
collection  of  the  large  quantities  of  good,  reasonably  priced,  home- 
grown produce  which  Irish  co-operators  have  to  offer  and  which 
the  members  of  English  co-operative  societies  must  be  anxious 
to  obtain.  At  present,  as  we  have  seen,  creameries  in  Ireland  are 
too  often  competing  with  one  another  in  the  sale  of  their  produce 
to  merchants  in  London  or  Glasgow.  The  managers  are  frequently 
chosen  for  their  skill  in  salesmanship,  and  are  jealous  of  their 
prowess  in  that  direction.  As  a  consequence  both  the  agency  and 
the  butter  department  of  the  I.A.W.S.  suffer  from  receiving  a 
good  deal  of  inferior  butter,  and  from  being  regarded  with  an 
unfriendly  eye  by  those  creamery  managers  who  are  accustomed 
to  force  the  price.  Something  of  the  same  state  of  things,  to  a 
rather  less  degree,  obtains  in  regard  to  eggs.  Meanwhile,  with  the 


240        RURAL  RECONSTRUCTION  IN  IRELAND 

exception  of  two  or  three  bacon  factories,  and  the  meat  supplied 
from  Wexford,  co-operative  sale  has  never  taken  root  in  Ireland 
for  any  form  of  produce  except  butter  and  eggs  and  a  small 
amount  of  poultry.  All  this  might  be  altered  if  an  honest,  con- 
tinuous and  attractive  market  were  provided.  This  market  exists 
already  in  the  thousand-odd  English  and  Scottish  artisans' 
societies,  but  it  is  almost  entirely  unexploited.  The  C.W.S.  and 
the  S.C.W.S.  as  the  federations  of  these  societies  ought  to  search 
out  the  producer  who  combines  readiness  and  capacity  to  supply 
their  market  with  the  advantage  of  adherence  to  the  same  co- 
operative faith.  They  have  tried  to  do  this,  as  we  have  seen,  by 
absorbing  this  producer  into  their  own  mechanism.  The  results 
have  been,  and  always  will  be,  in  the  near  future  at  any  rate, 
disastrous.  The  difficulties  which  that  policy  caused  were  a  very 
obvious  reason  for  reluctance  to  attempt  intertrading  during  a 
period  of  several  years.  But  now  that  the  bitterness  has  died 
down,  and  the  two  movements  understand  one  another  better, 
the  time  is  ripe  to  make  a  new  attempt  to  gain  the  same  ends  by 
a  different  policy.  That  policy  must  be  based  on  a  dual  recog- 
nition— the  recognition  of  the  independence  of  the  organized 
producer,  and  the  recognition  that  Ireland,  apart  from  all  political 
considerations,  is  economically  a  unit  in  herself.  Both  these  are 
summed  up  in  generous  recognition  and  support  of  the  I.A.W.S. 
The  support  must  be  generous  and  must  not  be  regarded  as  a 
preliminary  to  annexation,  or  further  disaster  will  follow. 

We  have  permitted  ourselves  to  stray  perhaps  overfar  into 
visions  of  the  future.  A  great  deal  of  hard  detailed  work  will  be 
required  before  anything  of  this  kind  can  be  accomplished,  and 
it  seems  the  most  important  task  which  lies  before  co-operators 
of  the  United  Kingdom  as  a  whole  if  their  larger  ideals  are  to 
be  accomplished.  The  stress  of  war  has  both  revealed  a  need  and 
provided  an  opportunity  for  a  great  reconstruction;  the  various 
branches  of  the  movement  show  unmistakable  signs  of  respond- 
ing. It  will  be  a  pity  if  they  all  carry  out  their  reconstruction 


INDUSTRIAL  CO-OPERATION  241 

separately,  for  the  most  pressing  need  is  that  for  a  common 
council  which  should  act  as  a  permanent  consultative  and  arbi- 
trating body,  with  representatives  from  the  Co-operative  Union 
and  the  three  Wholesale  Societies,  the  three  Organization  Socie- 
ties, the  Labor  Co-partnership  Association,  and  the  Co-operative 
Productive  Federation.  Perhaps  other  bodies  of  organized  labor 
and  industry,  less  directly  co-operative,  might  in  time  seek  repre- 
sentation on  it.  Such  a  council  would  have  plenty  of  large  prob- 
lems concerning  the  position  of  producer  and  consumer,  of 
employer  and  employee,  within  the  movement,  to  tackle,  but  it 
should  not  be  beyond  its  power  to  find  a  solution  for  them. 

As  a  first  step  we  would  hope  that  it  would  recommend  the 
establishment  of  a  small  and  practical  intertrading  committee  to 
bring  about  the  exchange  of  goods  on  a  large  scale  between  the 
English  and  Irish  societies  through  the  medium  of  their  federa- 
tions, and  that  it  would  allow  this  committee  the  control  of  suffi- 
cient capital  to  put  this  exchange  upon  a  businesslike  basis.  We 
feel  sure  that  the  interest  on  such  capital  would  be  well  and 
speedily  earned,  while  the  educational  and  social  benefits  would 
be  incalculable.  No  doubt  there  would  have  to  be  a  good  deal 
of  patience  and  tolerance  shown  for  a  few  years;  the  most  opti- 
mistic person  could  not  claim  that  the  Irish  producer  is  at  present 
as  well  versed  as  he  might  be  in  modern  business  method.  But 
that  is  largely  because  he  has  never  been  well  enough  treated 
to  allow  him  to  see  the  advantages  of  the  better  way.  He  has 
an  ample  measure  of  intelligence  to  respond  if  the  right  stimulus 
were  applied.  If  the  co-operative  movement  cannot  manifest  the 
patience  and  tolerance  required  in  order  to  bring  about  a  practical 
extension  of  its  own  principles,  it  must  be  admitted  to  have  fallen 
from  its  high  estate.  The  menace  of  materialism  is  always  upon 
a  successful  movement  where  business  and  ideals  have  to  be 
blended;  there  are  some  who  claim  that  it  has  already  triumphed 
over  the  original  aspirations  of  Owen's  pioneers,  or  of  the  Chris- 
tian Socialists.  The  skilful  handling  of  this  great  problem  will 


242        RURAL  RECONSTRUCTION  IN  IRELAND 

provide  an  opportunity  of  proving  them  false  prophets,  and  no 
better  time  for  grasping  the  opportunity  is  likely  to  present  itself 
than  the  period  of  labor  and  re-creation  which  must  follow  in  the 
train  of  the  world's  stupendous  conflict. 


CHAPTER  XIV 

THE  ECONOMIC  RESULT  OF  THE  CO-OPERATIVE 

MOVEMENT 

SINCE  the  beginning  of  the  co-operative  movement  in  Ireland  the 
economic  and  social  conditions  of  the  country  have  measurably 
improved.  It  has  not  been  easy  to  change  in  this  short  period  the 
tendencies  which  previously  prevailed.  Ireland  remains,  even  in 
1917,  a  country  comparatively  poor  and  comparatively  backward. 
Indeed,  when  we  remember  the  many  evils  which  had  existed, 
the  achievements  of  the  past  quarter-century  may  seem  to  lie 
more  in  the  checking  of  retrogression  than  in  actual  progress. 
The  application  of  brakes  on  the  down  grade  was  a  necessary 
preliminary  to  the  climb  toward  the  ever-retreating  goal.  Never- 
theless, there  are  a  number  of  evidences  that  the  crisis  of  the 
'eighties  has  been  successfully  averted,  and  that  Ireland  in  the 
new  century  is  traveling  forward  with  an  accelerating  pace  to 
that  more  happy  and  prosperous  condition  which  the  potentiali- 
ties of  the  country  and  of  its  people  have  ever  held  in  store. 
Before  inquiring  into  the  particular  economic  and  social  benefits 
which  the  co-operative  movement  has  conferred  upon  the  country, 
it  may  be  of  advantage  to  indicate  some  of  the  more  patent 
evidences  of  this  change. 

The  outstanding  fact  of  Irish  economic  life  during  this  period 
has  been  the  revolution  in  the  system  of  land  tenure,  which  we 
have  already  considered.  In  place  of  a  few  comparatively  large 
landowners  with  many  tenant  farmers  there  are  now  thousands 
upon  thousands  of  peasant  proprietors  into  whose  hands  nearly 
three-quarters  of  the  soil  of  the  country  has  passed.  While  this 

243 


244        RURAL  RECONSTRUCTION  IN  IRELAND 

diffusion  of  wealth  and  property  was  of  the  greatest  importance 
from  an  economic  as  well  as  a  social  point  of  view,  the  returning 
prosperity  in  agriculture  which  it  betokened  and  encouraged  was 
even  more  significant.  Setting  aside  for  the  moment  the  improve- 
ments in  the  organization  of  production  and  distribution  with 
which  the  co-operative  movement  has  been  primarily  concerned, 
there  has  apparently  been  a  significant  increase  in  the  aggregate 
agricultural  product  of  the  country.  This  has  occurred  despite 
the  constant  emigration  from  the  rural  districts  and  a  continued 
diminution  in  the  agricultural  population.  The  figures  for  exports 
and  imports,  which  are,  of  course,  only  a  single  indication  of  the 
situation,  show  a  large  increase  during  the  short  period  for  which 
they  are  available.  In  addition,  the  movement  for  the  use  of  Irish 
goods  in  Ireland  has  added  to  the  home  consumption,  even  of 
agricultural  produce. 

To  these  facts  of  an  increasing  production  and  a  more  equitable 
distribution  of  property  are  to  be  added  the  evidence  of  greater 
material  comfort  within  the  country.  The  deposits  in  Irish  banks, 
which  have  always  been  much  larger  than  the  condition  of  the 
country  seemed  to  warrant,  have  grown  with  astonishing  rapidity 
during  the  last  few  decades.  This  increase  has  been  most  marked 
in  the  Post  Office  Savings  Banks,  which  collect,  not  from  the 
wealthier  classes,  but  from  the  poorest.  Also,  the  co-operative 
credit  societies,  as  we  have  stated,  have  found  some  of  their 
capital  in  the  districts  which  they  serve.  The  existence  of  this 
large  amount  of  capital  in  Ireland  which  should  be  available  first 
and  foremost  for  the  development  of  Irish  industries,  is  of  great 
importance.  As  the  country  becomes  prosperous  it  will  more  and 
more  be  invested  at  home.  Meanwhile  the  housing  conditions  in 
the  country  have  markedly  improved.  Whereas  in  1891  60  per 
cent,  of  the  dwellings  were  classified  in  the  third  and  fourth 
groups,  in  1911  this  figure  had  been  reduced  to  28  per  cent.  The 
change  has  been  largely  due  to  a  number  of  Acts  from  1883  to 
1911  providing  for  allotments  of  land  and  dwellings  for  agricul- 


RESULT  OF  CO-OPERATIVE  MOVEMENT        245 

tural  laborers.  The  rural  district  councils  were  given  powers  to 
borrow,  with  the  consent  of  the  Local  Government  Board,  from 
the  Commissioners  of  Public  Works,  and  later  from  the  Land 
Commission,  for  these  purposes.  Various  subventions  for  the  dis- 
charge of  these  indebtednesses  were  provided.  Under  these 
provisions  over  40,000  cottages  have  been  built.  The  contrast 
is  remarkable.  In  place  of  miserable  hovels  are  to  be  seen  rows 
of  pleasant  cottages,  each  with  its  own  plot  of  land.  But  while 
legislation  has  accomplished  much  in  this  direction,  it  is  clear 
that  such  a  complete  change  could  not  have  occurred  without  the 
co-operation  of  the  people,  and  a  greater  prosperity  alone  could 
enable  them  to  make  effective  use  of  the  facilities  thus  provided. 

Finally,  emigration  from  Ireland  has  now  reached  a  point  at 
which  it  can  no  longer  be  considered  a  symptom  of  pathological 
conditions.  At  the  present  time,  or  rather  just  before  the  out- 
break of  war,  the  rate  of  emigration  from  Ireland  was  hardly 
more  than  that  from  Great  Britain  itself,  and  even  this  diminished 
stream  continued,  not  on  account  of  conditions  at  home,  but 
rather  through  the  encouragement  of  those  who  had  already  gone. 
For  the  moment  the  country  has  reached  in  the  matter  of 
population  an  unstable  equilibrium,  soon,  no  doubt,  to  be  fol- 
lowed by  the  healthy  sign  of  increasing,  numbers.  The  various 
constructive  measures  of  the  last  half-century  have  definitely 
checked  the  downward  tendency  to  which  long  years  of  unfortu- 
nate government  and  an  inefficient  economic  organization  had 
given  such  momentum. 

Legislation  has  undoubtedly  played  a  large  part  in  these 
results.  The  Land  Acts,  the  Congested  Districts  Board,  the  Agri- 
cultural Laborers  Acts,  the  Department  of  Agriculture  and  Tech- 
nical Instruction  have  been  potent  influences  in  this  reconstruc- 
tion. To  them  are  to  be  attributed  in  large  measure  these  more 
apparent  changes.  But  legislative  measures  can  never  form  more 
than  a  part  of  any  comprehensive  programme  of  social  reform. 
They  may  remove  the  more  obvious  hindrances  to  progress,  but 


246        RURAL  RECONSTRUCTION  IN  IRELAND 

from  their  very  nature  they  cannot — and  this  applies  particularly 
in  Ireland — effectively  encourage  individual  self-development. 
The  Land  Acts  might  create  a  system  of  peasant  proprietors; 
they  could  not  ensure  that  this  would  mean  greater  prosperity 
and  happiness.  The  formation  of  the  D.A.T.I.  might  introduce 
a  much-needed  system  of  agricultural  education;  it  could  not 
make  that  education  effective  or  ensure  that  from  the  increased 
product  the  farmer  would  obtain  an  increased  return.  These 
matters  depended  rather  on  the  co-operative  movement,  which 
so  organized  the  interests  of  the  community  on  a  voluntary  basis 
as  to  secure  the  greatest  individual  development  and  self- 
expression,  forming  in  this  way  the  keystone  in  the  rural  recon- 
struction of  Ireland.  Legislation  has  been  rendered  really  effective 
and  has  succeeded  in  improving  social  and  economic  conditions 
through  the  co-existence  of  co-operative  societies.  Community 
organization,  primarily  for  trade  and  industry,  but  eventually  for 
widening  and  enriching  individual  life,  has  been  a  fundamental 
necessity.  Even  as  the  co-operative  movement  was  handicapped 
by  the  absence  of  certain  governmental  activities,  so  those  activi- 
ties could  not  have  been  carried  on  successfully  without  the  co- 
operative movement.  The  element  which  was  essential  for  a 
permanent  and  complete  development  in  Ireland,  namely,  the 
encouragement  of  individual  energy,  independence  and  self- 
reliance,  was  to  be  found  chiefly  in  that  movement. 

The  more  detailed  consideration  of  these  social  and  ethical 
results  is,  however,  reserved  to  the  following  chapter;  here  it 
is  necessary  to  describe  the  material  gains  which  have  been 
brought  about  by  the  existing  co-operative  societies.  A  summary 
of  the  facts  concerning  them  will  indicate  some  of  the  solid 
economic  advantages  upon  which  the  success  of  the  movement 
so  completely  depends.  The  statistics  for  1915  show  a  total  of 
991  societies,  with  a  membership  of  102,591.  While  in  some  cases 
a  person  belongs  to  more  than  one  society,  this  figure  roughly 
represents  the  extent  of  the  co-operative  movement  in  Ireland. 


RESULT  OF  CO-OPERATIVE  MOVEMENT        247 

No  section  of  the  country  has  ignored  the  value  of  the  movement, 
and  although  the  achievements  have  been  greater  in  certain 
districts  than  in  others,  this  has  been  due  more  largely  to  acci- 
dental circumstances  than  to  any  failure  of  the  co-operative 
principle.  Leinster,  with  its  large  grazing  deserts  and  thin  popu- 
lation, has  been  the  most  difficult  problem,  but  progress,  though 
delayed,  is  now  rapid.  The  rich  valleys  of  Munster  have  always 
been  fertile  ground  for  co-operative  creameries,  but  in  Connaught 
and  Ulster  success  has  been  equally  great.  The  most  obvious 
indication  of  the  value  of  the  movement  in  Ireland  is  to  be  found 
in  this  general  acceptance  of  its  principle  and  method  throughout 
the  country. 

These  thousand  societies  have  altogether  a  paid-up  capital  of 
nearly  £225,000,  and  their  business  is  to  this  extent  the  property 
of  the  Irish  farming  community.  While  the  investment  has  been 
made  by  individuals,  it  is  really  social  wealth;  for  the  activities 
of  a  co-operative  society  benefit  the  entire  community.  On  the 
other  hand,  the  amount  of  loan  capital  is  even  larger,  and  as  we 
have  pointed  out,  one  of  the  ways  in  which  the  movement  can 
be  strengthened  is  by  the  provision  of  a  larger  proportion  of  its 
capital  from  within.  Only  when  the  co-operative  societies  are 
entirely  independent  of  this  form  of  assistance  can  their  highest 
ideals  be  realized. 

The  total  turnover  of  all  the  societies  for  1915  was  £4,657,000, 
and  for  the  entire  period  from  1889,  £39,524,705.  These  figures 
indicate  that  the  co-operative  movement  plays  no  small  part  in 
the  economic  life  of  the  country,  and,  moreover,  that  its  impor- 
tance has  steadily  increased.  In  no  year  has  there  been  a  real 
decrease  either  in  the  number  of  the  societies  or  the  amount  of 
business  which  they  have  done.  The  net  profit  for  1915  amounted 
to  £83,000,  while  losses,  incurred  by  a  small  number  of  societies, 
reached  £800.  The  total  net  profits  from  the  beginning  of  the 
movement  have  continuously  grown,  although  they  never  reached 
a  high  figure,  owing  to  the  non-profit-making  objects  of  the 


248        RURAL  RECONSTRUCTION  IN  IRELAND 

societies.  Out  of  them,  £290,000  has  been  set  aside  as  reserves, 
indicating  that  there  has  been  very  little  distribution,  except  for 
the  payments  on  share  capital.  Most  societies,  in  fact,  allocate 
their  entire  profit  to  reserve,  a  practice  which  has  involved  the 
movement  in  considerable  difficulties,  though  at  the  same  time 
it  has  much  to  recommend  it.  Had  the  industry  of  Irish  farmers 
not  been  arranged  upon  a  co-operative  basis,  these  profits  would 
undoubtedly  have  been  absorbed  by  the  capitalist  entrepreneur. 
Yet  these  statistics,  however  accurate — and  it  must  be  admitted 
that  they  are  not  as  complete  or  exact  as  might  be  desired— 
furnish  only  a  partial  indication  of  the  material  achievements  of 
co-operation  in  Ireland.  For  a  better  basis  for  judgment  it  is 
necessary  to  consider  the  features  of  this  method  of  organization 
which  promote  economic  gains.  The  co-operative  society  ensures 
to  its  members,  and  indeed,  through  the  effective  competition 
which  it  offers,  to  the  community  as  a  whole,  the  full  product  of 
their  labor.  The  chaotic  nature  of  business  organization  in  the 
rural  districts  of  Ireland  has  already  been  indicated.  The  exist- 
ence of  a  parasitic  middleman  class  was  a  constant  drain  upon 
the  producing  elements  in  the  population.  Charles  Booth  pointed 
out  in  an  analysis  of  the  occupational  statistics  of  Ireland  (1891) 
that  an  unusually  large  proportion  was  engaged  in  trade  or  com- 
mercial pursuits.  It  was  said  that  Irishmen  were  tending  more 
and  more  to  live  "by  taking  in  each  other's  washing."  The  co- 
operative system  reduces  this  class  in  two  ways:  it  facilitates 
more  direct  trading,  and  it  eliminates  the  wastes  of  competition. 
Thus  the  farmer  has  been  assured  of  securing  his  necessities  as 
a  producer,  the  raw  materials  of  his  industry,  on  the  cheapest 
possible  terms.  In  his  agricultural  society  he  procures  the  ferti- 
lizers, seeds  and  feeding-stuffs,  formerly  supplied  by  the  country 
shopkeepers  at  their  own  prices,  at  wholesale  rates.  It  was  not 
so  much,  perhaps,  that  these  middlemen  were  exacting  exorbitant 
prices  which  gave  them  an  extremely  large  return  for  the  service 
rendered.  The  temptations  of  a  monopoly  position,  and  the  igno- 


RESULT  OF  CO-OPERATIVE  MOVEMENT        249 

ranee  of  their  clients,  encouraged  some  in  that  direction.  But  in 
the  co-operative  society  the  trade  for  these  requirements  was 
organized,  and  so  could  be  carried  on  more  efficiently.  In  the 
first  years,  many  societies  were  able  to  report  a  diminution  of 
50  per  cent,  in  the  cost  of  their  manures.  Seeds  and  feeding- 
stuffs,  likewise,  could  be  secured  at  much  lower  rates;  and  what 
was  perhaps  even  more  important,  quality  was  guaranteed. 
Furthermore,  as  a  producer  of  raw  materials  or  food-stuffs,  the 
farmer  is  protected  by  his  society  from  the  excessive  levies  of 
the  middleman.  The  co-operative  creamery  pays  him  for  his  milk 
on  the  basis  of  the  payment  secured  for  the  butter  and  cream 
produced;  the  proprietary  concern  only  enough  to  encourage  him 
to  maintain  his  supply;  and  this  usually  means  a  considerable 
advantage  in  favor  of  the  former.  So  in  meat-dressing  societies, 
in  egg  societies,  the  farmer  is  more  likely  to  receive  the  full 
product  of  his  labor;  that  is,  others  do  not  have  an  opportunity 
to  exact  unearned  profits  on  the  way.  He  may  not  get  all  to  which 
he  is  entitled — there  are  many  gaps  in  the  co-operative  struc- 
ture— but  he  gets  more  than  he  would  otherwise.  If  he  wishes  a 
loan  for  a  productive  purpose,  his  co-operative  credit  society  can 
supply  it  at  a  reasonable  rate,  saving  him  from  falling  into  the 
clutches  of  the  ordinary  loan  shark,  and  capitalizing  his  reputa- 
tion for  honesty  in  the  community.  Finally,  when  the  society 
conducts  a  general  store,  the  member  is  protected  as  a  consumer. 
He  will  get  full  value  for  his  money,  and  since  this  last  step  may 
bridge  the  worst  pitfall  of  all,  he  will  not  be  safe  until  he  has 
taken  it.  With  complete  co-operative  organization  as  the  leaders 
have  pictured  it,  the  individual  farmer  will  be  protected  from  all 
outside  levies.  The  accomplishment  of  the  movement  in  this 
direction  is  its  most  powerful  claim  for  the  support  of  the  Irish 
people. 

These  advantages  have  been  shared  by  practically  all  classes. 
Unlike    industrial    co-operation   in    England,    the    co-operative 


250        RURAL  RECONSTRUCTION  IN  IRELAND 

movement  in  Ireland  has  not  been  confined  to  a  special  group. 
Large  farmers  as  well  as  small  have  profited  from  the  operations 
of  the  societies.  Even  in  the  credit  societies  which  are  formed 
primarily  for  small-holders,  the  more  wealthy  have  joined  in  an 
effort  to  help  their  fellows.  More  than  the  English  movement  has 
ever  been,  or  ever  seems  likely  to  be,  co-operation  in  Ireland  has 
been  on  community  or  neighborhood  lines.  It  is  not  a  class  affair. 
This  is  due  in  large  measure,  no  doubt,  to  the  industrial  homo- 
geneity of  rural  districts.  The  greater  proportion  of  country 
dwellers  are  farmers,  or  depend  on  the  prosperity  of  farmers. 
For  this  reason  they  have  all  given  their  support  to  the  co- 
operative movement.  In  cities,  on  the  other  hand,  there  are  many 
different  occupational  groups,  and  class  divisions  cover  a  wider 
range  of  activities.  Industrial  co-operative  societies  have,  there- 
fore, been  class  associations.  The  well-to-do  or  upper  middle 
class,  and  those  on  the  poverty  line,  have  never  joined.  Even  in 
attempts  which  have  been  made  under  the  pressure  of  war  condi- 
tions to  form  societies  in  the  upper  middle  class,  other  groups 
of  the  population  have  shown  no  disposition  to  join.  The  co- 
operative movement  in  cities  has  never  overcome  class  lines;  in 
the  country  it  is  a  true  democracy. 

This  democracy  is  encouraged  by  the  diffusion  of  wealth  which 
is  stimulated  by  co-operative  organization.  There  is  no  more 
unjust  fact  in  the  present  organization  of  society  than  that  "to 
those  who  have  shall  be  given,  and  from  those  who  have  not  shall 
be  taken  away  even  that  which  they  have."  "The  curse  of  the 
poor  is  their  poverty,"  while  the  wealthy  man  derives  additional 
wealth  from  the  very  position  which  he  occupies.  By  co-operation 
the  poor  farmer  shares  equally  with  the  large  the  advantages  of 
large-scale  buying;  he  is  not  penalized  for  his  poverty  by  having 
to  pay  excessive  prices;  he  is  not  prohibited  from  taking  advan- 
tage of  the  more  efficient  methods  of  production  which  are 
possible  with  the  use  of  expensive  agricultural  machinery.  The 


RESULT  OF  CO-OPERATIVE  MOVEMENT        251 

co-operative  democracy  at  least  checks  the  tendency  to  penalize 
poverty.  That  it  does  more  we  hope  to  prove  later. 

It  must  be  admitted  that  one  class  of  the  agricultural  popu- 
lation in  Ireland,  and  that  the  most  poverty-stricken  and  de- 
pressed class,  has  gained  little  from  the  co-operative  movement. 
The  Irish  agricultural  laborer,  like  his  prototype  in  all  countries, 
has  been  left  in  a  back-eddy  out  of  the  current  of  social  reform. 
He  has  been  inarticulate  and  unorganized,  and  for  the  most  part 
has  gained  little  from  the  forces  which  have  measurably  improved 
the  conditions  of  his  fellow-creatures.  It  is  perhaps  one  of  the 
greatest  weaknesses  of  the  Irish  co-operative  movement  that  it 
has  done  so  little  in  this  direction.  Not  that  the  amelioration  of 
any  one  class  does  not  react  to  some  extent  on  the  rest  of  the 
community.  The  increased  prosperity  of  the  farmers  which  has 
been  secured  through  the  activities  of  co-operative  societies  has 
to  a  slight  extent  been  shared  by  the  agricultural  laborers.  The 
average  wage  of  this  class,  which  in  1910  had  been  us.  per  week, 
rose  by  1916  to  155.  Yet  this  advance,  which  has  hardly  kept 
pace  with  the  increase  in  food  prices,  indicates  how  little  has 
been  really  accomplished. 

Nevertheless,  co-operation  would  seem  to  be  among  the  most 
helpful  agencies  for  the  improvement  of  this  class.  In  the  first 
place,  the  tendency  to  create  rural  industries — a  matter  to  which 
we  shall  return — will  offer  an  alternative  employment  to  agri- 
culture. In  England,  on  account  of  this  possibility  of  other  work, 
the  position  of  the  laborer  is  somewhat  better.  When,  therefore, 
through  the  more  comprehensive  application  of  the  co-operative 
principle,  the  Irish  countryside  contains  pleasant  industrial  vil- 
lages, as  unlike  the  nightmares  of  Lancashire  as  the  present 
plague-spots  in  Ireland,  he  will  not  be  in  the  same  helpless  situa- 
tion. In  order  to  keep  him  on  the  land  at  all,  he  will  demand  a 
decent  wage.  Likewise,  the  introduction  of  labor-saving  machinery 
by  co-operative  societies  will  eventually  improve  the  situation  of 
labor.  There  will  inevitably  be  hardship  for  the  displaced  indi- 


252        RURAL  RECONSTRUCTION  IN  IRELAND 

viduals,  though  owing  to  the  fact  that  this  development  is  like! 
to  be  coincident  with  an  increase  in  tillage,  the  dislocation  will 
not  be  serious.  In  the  manipulation  of  agricultural  machinery  a 
comparatively  skilled  workman  is  necessary,  and  in  place  of  the 
ignorant  worker,  who  is  worth  no  more  than  his  present  hire,  will 
be  found  the  well-paid  machinist.  But  an  even  more  effective  way 
for  the  co-operative  movement  to  attack  this  problem  is  by  the 
formation  of  co-operative  stores  for  general  necessities.  In  one 
respect  the  agricultural  laborer  has  a  bond  in  common  with  the 
other  members  of  the  farming  community;  he  is  a  consumer. 
Organization  on  this  basis  will  help  him,  and  will,  moreover, 
teach  him  the  value  of  combination,  which  is  his  real  need. 

It  is  both  a  strength  and  a  weakness  of  the  co-operative  move- 
ment that  its  advantages  are  in  many  directions  shared  by  the 
whole  community,  members  and  non-members  alike.  The  society 
enforces  honest  trading  and  honest  prices  upon  all.  Its  compe- 
tition, or  effective  threat  of  competition,  has  destroyed  the 
monopoly  of  the  Irish  trading  community.  The  fall  in  the  price 
of  manures  and  feeding-stuffs,  of  which  we  have  spoken,  was 
general.  As  legislation  forced  fair  rents  on  a  rack-rented  people, 
so  co-operation  has  forced  fair  prices  upon  a  community  in  the 
hands  of  gombeen-men.  This  has  put  an  end  to  the  inefficient 
trader  who  depended  on  excessive  profits,  an  advantage  which 
all  have  shared. 

On  the  other  hand,  the  efficient  and  honest  trader  has  fre- 
quently been  helped  rather  than  injured  by  the  co-operative 
movement.  The  increased  return  to  the  farming  community  has 
meant  an  increased  purchasing  power.  Only  where  societies  have 
set  up  a  general  store — and  this  has  occurred  more  often  where 
the  traders  have  abused  their  position — has  the  movement 
seriously  injured  them.  Doubtless,  individuals  have  suffered 
severely,  but  lamentable  as  this  is  in  cases,  it  is  an  inevitable 
concomitant  of  progress,  to  be  weighed,  like  the  displacement  of 


RESULT  OF  CO-OPERATIVE  MOVEMENT        253 

labor  by  machinery,  against  the  larger  interests  of  the  community 
as  a  whole.* 

Among  the  more  fundamental  changes  in  the  economic  struc- 
ture of  the  country  which  may  be  attributed  to  the  co-operative 
movement  has  been  the  creation  of  certain  industries  in  the  Irish 
country  districts.  In  particular  sections  various  home  industries 
already  existed,  and  these,  as  we  have  seen,  have  been  developed 
through  the  application  of  the  co-operative  principle.  But  in 
addition  there  are  a  number  of  industries,  more  directly  con- 
nected with  agriculture,  which  may  be  conducted  most  efficiently 
in  close  proximity  to  the  source  of  raw  materials.  These  either 
did  not  exist  in  Ireland  or  were  confined  to  the  larger  centres. 
The  direct  financial  loss  to  rural  communities  was  large,  and 
constituted  a  constant  hindrance  to  the  development  of  a  well- 
rounded  economic  life.  Wages  which  might  have  been  earned  in 
the  country  were  paid  in  the  towns,  and  there  was  no  alternative 
occupation  for  agricultural  laborers,  an  inevitable  cause  of  low 
wages. 

The  industries  which  have  been  created  in  rural  Ireland  by 
the  organization  of  co-operative  societies  are  not  yet  large  in 
number,  but  the  present  accomplishment  is  indicative  of  many 
possible  developments  in  the  future.  The  creameries  have  prac- 
tically replaced  the  home  industry  of  butter-making,  and  are 
gradually  putting  an  end  to  the  so-called  butter  factories  where 
the  home-made  product  was  blended.  Each  creamery  employs  a 
staff  of  five  or  more  persons,  whose  wages  are  for  the  most  part 
spent  locally.  The  poultry  societies  give  a  good  deal  of  employ- 
ment at  certain  seasons,  while  in  the  large  meat  society  at  Wex- 
ford  fifty-eight  are  employed,  and  at  Roscrea  thirty-six  persons. 

*The  argument  is  often  used  by  opponents  of  co-operation  that  the  spread  of 
this  movement  will  destroy  the  country  towns  and -ruin  traders  in  general.  The 
facts  are  quite  otherwise — during  the  last  twenty-five  years  the  greater  number  of 
country  towns  have  increased  in  population  and  prosperity,  nor  is  there  any  sign 
of  decay  in  the  ranks  of  the  great  army  of  distributive  agents  existing  in  Ireland. 


254        RURAL  RECONSTRUCTION  IN  IRELAND 

Before  these  societies  were  established,  this  work  was  done  in 
one  or  two  urban  centres  entirely,  if  not  in  England. 

Another  development  in  industrial  decentralization  or  rural 
industry  is  found  in  the  saddlery  department  of  the  Enniscorthy 
Co-operative  Society.  This  flourishing  body,  which  conducts  not 
only  a  large  store  for  agricultural  requirements,  but  also  a  general 
store  and  a  garage,  has  recently  taken  up  the  production  of 
saddles  and  harness  as  a  commercial  enterprise.  About  thirty 
men  have  been  regularly  employed,  the  work  turned  out  has  been 
of  excellent  quality,  and  the  venture  has  proved  profitable  for 
the  society.  This  innovation,  more  strikingly  illustrated  perhaps 
in  the  remarkably  successful  enterprise  at  Dungloe,  elsewhere 
described,  carries  the  germ  of  an  interesting  and  extremely  im- 
portant development.  Complete  community  organization  must 
include  the  employment  of  the  members  not  otherwise  engaged. 
Such  enterprises,  whose  success  should  assure  them  many  imita- 
tors, are  important  not  only  from  the  point  of  view  of  co- 
operation, but  also  from  that  of  the  urban  reformer.  Many  of 
the  more  serious  problems  of  the  modern  city  are  to  be  solved 
by  the  decentralization  of  industry,  and  this  may  be  encouraged, 
as  well  as  protected  from  the  obvious  abuses  which  might  accom- 
pany the  change,  by  the  activities  of  co-operative  societies. 

An  advantage  which  is  frequently  claimed  for  the  capitalist 
system  is  the  facility  with  which  it  develops  new  industries  and 
opens  up  avenues  of  economic  activity  otherwise  untraveled.  It 
is  said  that  capitalism  is  essential  for  progress,  that  without  the 
spur  of  an  increased  profit  no  one  will  undertake  experiments  in 
economic  activity.  Likewise  the  Socialist  State  has  been  depre- 
cated because  it  is  declared  that  without  a  strong  personal  incen- 
tive there  will  be  no  tendency  to  improve  the  processes  of 
production.  It  is  interesting,  therefore,  to  find  the  Irish  co- 
operative societies  in  the  forefront  of  progress,  always  on  the 
look-out  for  new  and  more  advantageous  methods.  The  success 
of  the  movement  in  its  early  days  was  due  largely  to  the  intro- 


RESULT  OF  CO-OPERATIVE  MOVEMENT        255 

duction  in  the  creameries  of  a  new  and  more  efficient  productive 
process,  and  to  these  co-operative  creameries  the  present  position 
of  the  Irish  butter  industry  is  admittedly  due.  In  the  mills  which 
are  now  being  started  in  connection  with  many  co-operative 
societies  is  found  another  instance  of  a  new  development  arising 
entirely  out  of  the  movement.  For,  as  a  matter  of  fact,  the  co- 
operative system  does  preserve  the  powerful  incentive  of  personal 
profit,  not,  however,  at  the  expense  of  others,  but  to  the  advan- 
tage of  all.  The  achievements  of  the  Irish  movement  in  this 
direction  indicate  a  stimulating  rather  than  a  deadening  effect 
upon  industrial  innovations. 

The  co-operative  organization  in  Ireland  has  been  of  large 
importance  in  the  development  of  latent  business  capacity  among 
the  people.  Alfred  Marshall  declared  at  the  Co-operative  Con- 
gress of  1889  that  the  waste  product  of  our  present  industrial 
order  was  the  unrevealed  capacity  of  men  in  the  ranks  who  had 
never  enjoyed  an  opportunity  to  unfold  their  powers.  The  greatest 
need  of  every  country  is  men  of  efficiency  and  energy,  and  in 
Ireland,  whose  population  has  been  drained  of  some  of  its  best 
elements  by  emigration,  this  need  is  peculiarly  acute.  Orthodox 
economists  have  claimed  that  the  laissez-faire  system  was  most 
likely  to  draw  out  these  capacities,  and  have  opposed  many 
schemes  of  social  reform  on  this  account.  The  annals  of  the  co- 
operative movement  in  Ireland  prove  that  they  are  wrong  in  this 
contention.  Successful  societies  have  frequently  been  led  by  men 
who  had  had  no  previous  business  experience.  Priests  and  school- 
masters, as  well  as  ordinary  farmers,  have  formed  and  largely 
managed  all  types  of  societies.  One  of  the  most  successful  ex- 
amples of  co-operation  in  the  country  has  been  developed  through 
the  efforts  of  a  man  who  had  worked  in  an  English  coal-mine. 
In  such  a  discovery  is  found  a  hidden  spring  of  wealth  which  will 
help  much  to  restore  prosperity  to  the  country. 

In  this  connection  it  is  interesting  to  inquire  into  the  place 
of  the  employee  in  the  Irish  co-operative  movement,  for  while 


256        RURAL  RECONSTRUCTION  IN  IRELAND 

at  present  this  problem  does  not  loom  very  large  on  account  of 
the  nature  of  the  societies  in  existence,  it  will  undoubtedly  grow 
in  importance  with  later  developments.  At  the  present  time  the 
total  number  of  employees  of  societies  affiliated  to  the  I.A.O.S. 
would  not  exceed  five  thousand.  In  the  staff  of  the  ordinary 
creamery  there  are  a  manager,  a  mechanic,  a  carter,  and  perhaps 
two  dairy-maids.  The  agricultural  society  may  get  along  with 
the  part-time  services  of  the  village  schoolmaster,  though  if  it 
runs  a  store,  a  small  full-time  staff  is  necessary.  The  credit  society 
almost  invariably  depends  entirely  on  voluntary  service.  The 
poultry  society  has  an  expert  manager,  and  at  times  employs  a 
number  of  local  people.  There  is,  therefore,  much  unpaid  work, 
prompted  entirely  by  the  high  ideals  of  social  service,  and  in 
addition  a  large  group  of  paid  employees. 

The  wages  differ,  of  course,  with  the  nature  of  the  work,  but 
on  the  whole  the  scale  remains  low.  It  has  been  difficult  to  con- 
vince the  farmer  that  his  employee  should  live  on  as  good,  if  not 
a  better  scale  than  he  himself  does.  He  expects  the  manager  of 
a  proprietary  creamery  to  do  so,  but  where  a  large  salary  means 
smaller  payments  for  milk,  he  hesitates.  The  organizers  of  the 
I.A.O.S.  are  not  always  able  to  convince  him  that  the  more  expen- 
sive man  is  worthy  of  his  hire.  The  fact  that  some  men  have 
almost  given  their  services  out  of  their  strong  belief  in  the  co- 
operative ideal  has  increased  this  tendency  toward  sweating  labor. 

Yet  it  must  be  admitted  that  some  societies  have  adopted  a 
far-seeing  policy  in  this  direction,  and  that  they  are  learning 
more  and  more  to  appreciate  the  value  of  well-paid  services.  In 
a  number  of  cases  houses  have  been  built  for  managers  of  cream- 
eries and  stores,  a  need  which  has  already  been  made  clear.  The 
difficulty  in  finding  a  competent  staff  which  was  most  marked 
in  the  early  history  of  the  movement  continues,  and  the  wages 
are  gradually  rising  as  a  result.  But  the  situation  indicates  the 
necessity  of  trade-union  organization,  even  among  the  employees 
of  co-operative  societies.  In  England  such  an  association  has  been 


RESULT  OF  CO-OPERATIVE  MOVEMENT        257 

extremely  powerful,  and  has  been  the  instrument  for  raising  wages 
to  a  high  level.  In  Ireland  there  is  as  yet  no  such  comprehensive 
union.  The  Irish  Creamery  Managers'  Association,  which  is  a 
body  for  the  protection  of  the  interests  of  a  single  class,  and  which 
attempts  to  aid  generally  by  the  weekly  issue  of  market  reports, 
has  fixed  a  scale  for  payment,  but  it  is  not  strong  enough  as  yet 
to  enforce  its  demands. 

There  are  some  idealists,  however,  for  whom  the  fair  wage  is 
only  a  start.  They  demand  that  the  workers  shall  have  a  share, 
not  only  in  the  profits,  but  also  in  the  administration  of  the  busi- 
ness. They  declare  that  the  only  way  to  solve  the  problem  of 
the  relations  between  the  employer  and  the  employee  is  to  make 
the  latter  a  partner  in  the  enterprise.  From  the  beginning  of  the 
co-operative  movement,  this  question  has  been  actively  discussed. 
According  to  the  rules  of  the  societies  in  Ireland,  as  in  England, 
the  net  profits  after  the  payment  of  a  fixed  interest  on  capital 
are  to  be  divided  among  the  members  and  the  employees  in  pro- 
portion, in  the  one  case  to  the  business  done  with  the  society,  and 
in  the  other  to  the  total  wage  paid.  Unfortunately,  however, 
owing  to  the  fact  that  such  a  division  of  the  profits  has  seldom 
been  made  in  Ireland,  employees  have  received  little  or  nothing 
under  this  provision.  As  for  a  share  in  the  administration  of  the 
society,  the  situation  of  the  co-operative  employee  is  slightly 
better  than  that  of  the  ordinary  worker.  For  by  joining  the  society 
by  which  he  is  employed — a  procedure  not  infrequently  encour- 
aged— he  may  enjoy  all  the  privileges  of  membership,  and  may 
present  any  grievance  which  he  may  have  for  consideration  by 
the  committee  or  the  annual  general  meeting  of  the  society. 

The  economic  results  of  the  co-operative  movement  in  Ireland, 
and  the  changes  in  economic  organization  which  are  occurring 
in  many  directions  through  the  agency  of  the  societies,  herald 
a  day  of  returning  prosperity  for  the  Irish  farmer.  Already  the 
achievements  are  great,  and  the  potentialities,  which  through  the 
co-operative  movement  are  being  revealed,  are  even  more  im- 


258        RURAL  RECONSTRUCTION  IN  IRELAND 

portant.  The  sound  basis  of  material  prosperity  on  which  the 
movement  depends  is  necessary  for  the  accomplishments  of  a 
more  ideal  character  which  will  follow.  The  hopelessness  of  abject 
poverty  no  longer  prevails  throughout  the  Irish  farming  commu- 
nity. Co-operation  has  helped  to  change  that,  and  furthermore 
it  has  cleared  the  way  for  the  hope  and  the  accomplishment  of 
a  new  rural  civilization. 


CHAPTER  XV 

THE  SOCIAL  AND  EDUCATIONAL  RESULTS  OF  THE 
CO-OPERATIVE  MOVEMENT 

THE  best  test  of  any  agency  of  social  reconstruction  is  its  educa- 
tional value.  Unless  something  more  can  be  claimed  for  it  than 
the  improvement  of  material  conditions,  unless  it  develops  the 
potentialities  of  human  character,  it  is  of  little  real  significance 
in  the  permanent  reconstruction  of  society.  Its  value  depends 
upon  its  effects  on  the  human  material  with  which  it  deals.  Im- 
provements which  develop  the  capacities  of  the  individual  for 
self-expression  are  steps  toward  the  realization  of  a  better  State; 
improvements,  no  matter  how  great,  which  do  not  accomplish 
this  are  comparatively  sterile.  Having  seen  in  the  previous  chap- 
ter, therefore,  some  of  the  ways  in  which  the  environment  of  the 
Irish  farmer  has  been  improved  by  the  activities  centring  in  the 
co-operative  movement,  it  now  remains  to  consider  how  far  this 
change  has  produced  modifications  in  character  and  social  out- 
look, how  far  the  individual  has  developed  in  intelligence  and 
efficiency  through  the  activities  of  the  movement  in  which  he 
shares. 

We  have  already  considered  the  value  of  co-operative  organiza- 
tion for  educating  Irish  farmers  in  the  technique  of  their  industry. 
The  actual  experience  of  the  Department  of  Agriculture  justified 
the  conclusion  of  the  Recess  Committee,  that  "the  assistance  of 
the  State  can  only  be  truly  effective  when  there  exists  a  system 
of  local  representative  organizations  of  the  industrial  classes  to 
co-operate  in  its  administration."  Wherever  the  two  agencies 
worked  together  the  results  were  good,  but  since  the  machinations 

259 


26o       RURAL  RECONSTRUCTION  IN  IRELAND 

of  the  traders  have  put  an  end  to  this  combination  of  forces, 
progress  has  been  measurably  retarded.  The  campaign  of  the 
Department  to  increase  tillage  in  Ireland  during  the  first  two 
years  of  the  European  War  produced  very  meagre,  if  not  negli- 
gible, results.  But  in  places  in  the  West,  where  the  I.A.O.S.  was 
able  to  furnish  instruction  in  connection  with  a  number  of  co- 
operative implement  societies,  the  land  under  cultivation  was 
more  than  doubled.  This  is  not  an  isolated  instance.  In  the  co- 
operative creameries  has  been  found  the  only  satisfactory  agency 
for  encouraging  the  increase  of  winter  milk  production,  though 
in  this  matter,  it  must  be  admitted,  the  achievement  is  small  in 
comparison  with  the  possibilities.  While  Danish  creameries 
produce  the  larger  part  of  their  output  during  the  winter  when 
prices  are  high,  in  Ireland  almost  the  entire  product  is  during 
the  months  from  May  to  November.  The  same  might  be  said 
concerning  the  desirable  improvement  in  the  average  milk  yield 
of  Irish  cows.  The  agricultural  societies,  by  cheapening  manures 
and  guaranteeing  their  analysis,  have  increased  their  intelligent 
use.  Without  such  organization,  the  individual  farmer  is  often 
not  only  helpless,  but  immovable.  Instruction  proceeds  in  a 
dilatory  fashion  only  for  those  who  show  an  interest  in  it.  The 
Irish  small-holder,  on  account  of  his  inferior  education,  was  often 
content  to  remain  where  he  was ;  he  had  neither  the  initiative  nor 
the  self-confidence  to  demand  instruction  on  his  own  account. 
Only  in  a  society,  in  combination  with  his  fellows,  did  he  acquire 
the  confidence  which  is  essential  for  any  step  toward  a  better 
technical  knowledge. 

As  a  business  organization  the  co-operative  society  has  intro- 
duced its  members  to  a  field  in  which  they  had  little  practical 
knowledge.  For  the  most  part,  the  vision  of  the  Irish  farmer  did 
not  extend  beyond  the  community  in  which  he  lived.  If  he  sold 
his  produce,  it  was  to  the  gombeen-man  or  to  the  buyer  at  the 
fair,  who  was  his  only  connection  with  the  outside  economic 
world.  Nowhere  did  farmers  carry  on  their  farming  on  a  business 


SOCIAL  AND  EDUCATIONAL  RESULTS          261 

basis.  For  them  it  was  an  occupation  which  in  good  years  brought 
good  living,  and  in  lean  years  made  it  hard  to  get  along.  Cost 
accounting  systems,  insurance,  productive  loans — these  were 
matters  beyond  their  ken.  The  co-operative  society,  which  made 
necessary  considerable  business  knowledge,  developed  capacities 
which  were  of  advantage  in  individual  business  relations.  In  the 
beginning  the  organizers  were  compelled  to  do  almost  everything 
up  to  running  the  business  themselves.  On  their  shoulders  fell 
the  burden  of  teaching  the  secretary  how  to  keep  the  books;  they 
found  it  necessary  to  explain  the  method  by  which  an  overdraft 
could  be  secured  from  the  bank;  frequently  even  to  indicate 
where  supplies  might  be  obtained.  But  they  have  taught  well. 
To-day  Irish  farmers  conduct  their  co-operative  societies  for 
themselves.  In  their  more  individual  relations  they  understand 
the  nature  of  a  productive  loan;  if  necessary  they  are  able  to 
establish  individual  business  connections  with  buyers  in  England 
and  Scotland.  They  have  learned  to  demand  a  guarantee  with 
their  artificial  manures,  and  are  gradually  understanding  that  the 
quality  as  well  as  quantity  of  their  products  counts.  They  are 
undertaking,  often  on  their  own  account,  experiments  in  co- 
operative enterprise,  are  buying  tractors,  and  installing  mills. 
They  are  asking  why  the  co-operative  method  cannot  be  extended 
for  the  purchase  of  household  necessities.  In  fact,  the  farmer  has 
come  to  realize  that  he  is  as  much  a  business  man  as  an  agricul- 
turist; that  his  return  depends  as  thoroughly  on  this  side  of 
farming  as  on  the  effective  methods  of  production.  This  develop- 
ment of  business  capacities  has  been  important,  not  only  from 
the  individual,  but  also  from  the  social  point  of  view.  Inasmuch 
as  they  have  occurred  largely  through  co-operative  activities, 
they  have  often  been  used  to  the  advantage  of  the  society  and 
of  the  members  of  the  social  community. 

Not  only  has  the  co-operative  method  aided  Irish  farmers  in 
the  development  of  greater  individual  powers  as  wealth  producers 
and  as  business  men,  but  also  it  has  taught  them  their  respon- 


262        RURAL  RECONSTRUCTION  IN  IRELAND 

sibilities  and  place  as  members  of  a  social  community  and  an 
organized  State.  Citizenship  involves  far  more  than  membership 
in  a  political  party,  and  the  community  obligations  of  each  indi- 
vidual are  not  discharged  by  enthusiastic  demonstrations  for  or 
against  a  particular  policy.  The  true  citizen  must  try  to  make 
his  own  contribution  to  the  social  order  as  great  as  possible;  his 
obligation  to  himself  and  to  the  State  is  not  fulfilled  until  he  has 
found  the  full  significance  of  community  organization  and  has 
contributed  to  its  development. 

The  co-operative  society  is  of  importance  for  this  purpose 
because  it  develops  in  the  individual  those  characteristics  and 
capacities  which  are  necessary  for  social  progress.  The  present 
individualist  system  which  takes  care  of  the  business  interests 
of  the  farmers  is  a  dividing  and  disintegrating  force.  It  tends  to 
destroy  the  natural  associative  character  and  to  set  each  man 
against  his  neighbor.  The  conflict  of  interest  engendered  by  the 
competitive  regime  has  been  wasteful  not  only  economically,  but 
also  from  the  more  important  point  of  view  of  individual  char- 
acter. The  wastes  of  competitive  industry  are  not  confined  to 
advertising  costs,  lack  of  understanding  between  purchaser  and 
buyer,  and  the  necessary  protecting  devices  against  monopoly. 
That  system  creates  fraud  and  dishonesty,  indifference  and  sus- 
picion. It  conceals  the  fact  that  the  interests  of  each  individual 
are  best  served  in  his  associated  capacity  as  a  member  of  a  social 
community.  But  as  a  member  of  a  society  with  interests  in 
common  with  others  the  individual,  consciously  and  uncon- 
sciously, develops  the  social  virtues.  Honesty  becomes  imperative 
and  is  enforced  by  the  whole  group  on  the  individual;  loyalty 
to  the  community  is  made  an  essential  for  the  better  development 
of  individual  powers.  To  cheat  the  society  is  to  injure  a  neighbor; 
to  sell  milk  outside  is  to  endanger  the  success  of  a  venture  in 
which  friends  and  relatives  are  interested.  These  virtues  have 
not  been  developed  immediately  or  rapidly.  Changes  in  character 
are  even  more  difficult  than  changes  in  an  economic  system.  The 


SOCIAL  AND  EDUCATIONAL  RESULTS          263 

Irish  creameries  have  been  forced  to  adopt  a  binding  rule  to 
ensure  the  loyalty  of  all  the  members.  But  the  fact  that  this 
provision  has  seldom  to  be  used  is  an  indication  that  the  social 
virtues  make  their  own  appeal.  The  farmers  are  learning  that 
individual  action  without  consideration  for  the  feelings  or  desires 
of  others  does  not  pay.  The  society  is  in  miniature  a  community, 
and  the  community  is  but  a  part  of  the  larger  social  group. 

Through  the  co-operative  movement  has  come  a  growing  social 
consciousness  and  a  recognition  of  the  common  interests  of  people 
living  in  the  same  neighborhood.  Concerning  itself  with  matters 
in  which  all  have  a  common  interest,  it  has  proved  that  the 
factors  of  dissension  so  prevalent  in  Ireland  need  not  prevent  the 
development  of  a  real  community  life.  Race,  religion  and  politics 
have  so  dominated  the  minds  of  Irishmen  that  the  possibility  of 
uniting  in  any  direction  for  any  purpose  has  seemed  to  them  very 
remote.  The  granting  of  Home  Rule,  many  said,  would  merely 
raise  other  issues.  The  Irishman  would  never  be  happy  unless 
he  was  disagreeing  with  some  one.  And,  indeed,  the  danger  to  the 
co-operative  movement  from  these  causes  was  very  serious.  Meet- 
ings were  often  held  in  an  atmosphere  of  considerable  tension. 
A  case  is  reported  in  which  only  a  strict  censorship  of  the  musical 
programme  saved  the  situation.  Nevertheless,  the  dangers  were 
averted  in  a  remarkable  fashion.  Only  one  case  is  recorded  where 
a  society  was  wrecked  by  sectarianism.  To-day  no  lesson  is  more 
firmly  fixed  in  the  minds  of  co-operators  than  that  neither  race, 
nor  religion,  nor  politics  interferes  with  a  man's  co-operative 
capacities.  On  the  committee  of  the  I.A.O.S.  and  of  the  individual 
societies  north  and  south  alike,  Catholics  and  Protestants  sit  in 
friendly  discussion.  Sinn-Feiners  and  Constitutionalists,  Unionists 
and  Home-Rulers  forget  for  the  moment  their  embittered  differ- 
ences. In  the  rising  of  Easter  week,  1916,  it  was  a  noticeable  fact 
that  the  co-operative  societies  were  in  no  way  involved,  but  con- 
tinued their  work  undisturbed.  The  principle  wisely  adopted  in 
the  early  Co-operative  Congress  of  1832,  that  extraneous  matters 


264        RURAL  RECONSTRUCTION  IN  IRELAND 

should  not  be  brought  up  for  discussion,  has  been  rigidly  adhered 
to.  In  fact,  it  is  reported  that  a  secretary  of  an  Ulster  society, 
when  asked  whether  the  intense  religious  antagonisms  of  the 
community  had  grown  less  bitter  replied:  "We  have  no  religious 
feelings  now:  we  are  all  co-operators."  The  co-operative  move- 
ment has  shown  that  community  life  is  not  an  impossibility  in 
Ireland.  And  where  men  unite  to  run  a  creamery  or  an  agricul- 
tural store  without  allowing  their  differences  on  other  questions 
to  interfere,  they  cannot  long  continue  to  feel  bitterly  toward 
each  other  in  the  streets  outside.  The  dividing  facts  of  life  are 
being  relegated  to  their  true  position  by  the  realization  of 
community  of  interest  in  the  economic  sphere. 

This  new  spirit  of  community  interest  has  been  of  great  value 
in  developing  the  social  life  of  the  people.  One  of  the  most  im- 
portant causes  of  the  general  rural  exodus  has  been  the  dullness 
of  life  in  the  country  districts.  In  the  Irish  towns  there  are  few 
facilities  for  wholesome  enjoyments.  The  co-operative  societies 
have  helped  to  remedy  this  situation.  Their  buildings  have 
sometimes  been  used  for  dances  or  as  the  headquarters  of  a 
library.  Through  the  evidence  of  community  consciousness  which 
they  gave  the  demands  from  the  Pembroke  Trustees  for  village 
halls  have  been  made  effective.  Libraries  have  been  provided  by 
grants  from  the  Carnegie  United  Kingdom  Trust,  and  though 
the  name  has  come  to  mean  a  recreation  hall  rather  than  a  library 
in  many  cases,  this  is  not  all  loss.  In  this  work  of  revivifying 
country  life,  the  activities  of  the  Gaelic  League  have  been  of 
great  importance.  This  association,  founded  shortly  after  the 
inauguration  of  the  co-operative  movement,  aims  directly  at  the 
preservation  of  Irish  as  the  national  language,  the  study  of 
ancient  Irish  literature,  and  the  cultivation  of  a  modern  literature 
in  the  Irish  language;  but  in  practice  the  aim  is  much  wider,  and 
is  in  reality  the  reconstitution  of  the  national  social  system,  on 
the  basis  of  the  Gaelic  civilization  of  many  centuries  ago.  Among 
its  more  practical  efforts  is  the  revival  of  some  of  the  social 


SOCIAL  AND  EDUCATIONAL  RESULTS          265 

enjoyments  which  brightened  the  lives  of  the  Irish  peasantry  in 
former  times;  an  undertaking  in  which  the  community  organiza- 
tion afforded  by  co-operative  societies  has  been  very  useful. 

In  the  political  sphere  the  organization  of  Irish  farmers  is  as 
yet  ineffective,  and  the  State  has  not  been  responsive  to  their 
desires.  This  has  been  in  part  due  to  the  nature  of  existing 
government  in  Ireland,  and  partly  to  the  fact  that  the  trading 
community  is  strongly  entrenched  in  the  dominant  political 
Party.  Since  that  Party  has  been  concerned  with  the  single  ques- 
tion of  Home  Rule,  there  has  been  little  opportunity  for  the 
consideration  of  more  fundamental  economic  issues.  The  Local 
Government  Act  of  1898  represented  a  considerable  advance  in 
a  restricted  field,  marking  the  final  collapse  of  the  de  facto  social 
order,  dominated  by  the  landlords.  In  place  of  the  Grand  Juries, 
who  had  administered  government  locally,  were  created  elective 
County  Councils  and  Urban  and  Rural  District  Councils.  These 
authorities  were  employed,  as  we  have  seen,  in  the  machinery  of 
the  Department  of  Agriculture,  and  altogether  in  spite  of  much 
chatter  over  countless  resolutions  have  done  their  work  well. 
They  do  not,  however,  truly  represent  the  agricultural  population 
and,  particularly  in  connection  with  the  Department,  have  not 
always  worked  in  its  interest.  Some  co-operative  societies  have 
gone  so  far  as  to  present  a  co-operative  candidate,  and  have  suc- 
ceeded'in  electing  him.  The  need  in  this  direction  is  great,  and 
with  the  settlement  of  the  Home  Rule  issue,  and  the  development 
of  a  sound  political  life  within  the  country,  there  is  reason  to 
hope  for  developments. 

The  new  Irish  State,  whatever  its  exact  constitution,  will  face 
many  serious  problems.  Most  important  of  these  is  the  provision 
of  practical  leaders,  a  position  for  which  the  present  representa- 
tives at  Westminster  are,  it  is  no  discredit  to  them  to  say,  for 
the  most  part  unfitted.  They  have  been  concerned  with  a  single 
problem — Home  Rule — and  whenever  its  solution  is  assured, 


266        RURAL  RECONSTRUCTION  IN  IRELAND 

their  work  is  done.  But  the  problem  of  the  construction  of  this 
new  Irish  State  remains,  and  other  leaders  must  appear  to  direct 
its  course. 

In  this  field  the  co-operative  movement  has  been,  and  will  be, 
of  the  greatest  practical  importance.  Of  late  years  in  Ireland 
there  have  been  many  dreamers  of  the  new  State  which  was  to 
be.  Men  have  been  filled  with  the  idea  which  found  its  chief 
expression  in  the  co-operative  movement,  and  like  the  Sinn  Fein 
(we  ourselves)  movement  insisted  that  the  regeneration  of  Ire- 
land must  come  from  within.  The  Gaelic  League  has  striven  for 
the  revival  of  the  old  Irish  civilization — its  language  and  its 
artistic  expressions.  The  Industrial  Development  Associations 
have  taken  a  real  part  in  the  growth  of  a  sound  urban  life.  But 
along  with  the  practical  expressions  of  this  policy  there  has  been 
a  vast  deal  of  wasted  effort.  In  dreaming  of  the  new  Ireland, 
dreams  have  too  often  become  the  master.  Thus  the  new  formulae 
run  the  danger  of  becoming  no  more  than  the  well-sounding 
shibboleths  of  old.  The  Irish  people  would  seem  on  the  point  of 
being  carried  away  again  by  new  names. 

The  danger  is  very  serious;  but  the  forces  ranged  against  it 
are  stronger  than  at  any  previous  time.  In  the  co-operative  move- 
ment, and  its  hundred  thousand  farmers  scattered  throughout 
the  land,  is  to  be  found  the  practical  antidote  for  this  new  peril. 
In  the  thousand  co-operative  societies  they  are  working  con- 
structively; are  building  the  secure  material  foundations  of  the 
new  Ireland.  Not  from  words  and  phrases,  but  from  these  earnest 
and  energetic  efforts  is  the  new  Irish  State  to  rise.  In  these 
splendid  lines  A.  E.  has  well  expressed  their  aim: 

We  would  no  Irish  sign  efface, 
But  yet  our  lips  would  gladlier  hail 

The  first  born  of  the  Coming  Race 
Than  the  last  splendor  of  the  Gael. 


SOCIAL  AND  EDUCATIONAL  RESULTS          267 

No  blazoned  banner  we  unfold — 
One  charge  alone  we  give  to  youth, 

Against  the  sceptred  myth  to  hold 
The  golden  heresy  of  truth. 

There  are,  of  course,  many  variations  in  the  extent  to  which 
the  Irish  societies  have  been  truly  co-operative  and  have  ap- 
proached the  ideal  which  is  their  ultimate  goal.  In  some  cases 
the  individual  has  used  the  society  not  for  general  advancement, 
which  would  in  the  end  have  proved  to  his  advantage,  but  for 
personal  gains.  It  has  furnished  a  convenient  threat  in  order  to 
secure  better  terms  from  middlemen.  Likewise  there  has  been  a 
tendency  to  maintain  the  local  point  of  view  and  to  forget  the 
larger  claims  of  the  central  bodies  to  which  the  movement  owes 
so  much.  In  connection  with  both  the  I.A.O.S.  and  the  I.A.W.S 
we  have  pointed  out  this  failing.  Still  more  serious  is  the  tendency 
to  capitalism  which  occasionally  results  in  the  membership  of 
a  society  being  virtually  closed,  and  its  being  carried  on  for  the 
benefit  of  a  few  only  while  making  profits  out  of  many.  These 
dangers  beset  all  co-operative  movements  and  are  found  in  Ire- 
land as  elsewhere.  But  such  societies  are  not  typical.  And  in 
some  cases  there  has  been  a  very  complete  application  of  the 
co-operative  principles.  It  is  worth  while  closing  this  chapter 
with  the  history  and  achievements  of  one  society,  perhaps  also 
not  typical  of  the  movement,  but  nevertheless  indicative  of  what 
the  co-operative  principle  and  ideals  may  mean  for  rural  Ireland. 

One  of  the  lessons  which  the  history  of  the  movement  impresses 
is  the  way  in  which  the  very  poorest  people  have  profited  most 
from  the  co-operative  system.  Poverty  breeds  many  vices;  it  also, 
where  the  stock  is  strong,  develops  many  virtues,  which  under 
happier  circumstances  emerge  to  great  advantage.  It  is  not  sur- 
prising, therefore,  to  find  co-operation  most  successful  in  Ireland 
in  those  districts  in  the  West  and  North  which  have  suffered  most 
severely  from  the  economic  difficulties  of  the  country.  Leinster, 


268        RURAL  RECONSTRUCTION  IN  IRELAND 

in  which  the  agriculturists  are  on  the  whole  better  off  than  in 
other  sections,  has  been,  and  still  remains,  most  barren  of  co- 
operative enterprise.  But  in  the  congested  districts,  where  all  are 
very  poor,  not  only  have  the  economic  results  been  greatest,  but 
also  the  social  and  educational  effect  have  been  more  real  and 
lasting. 

If,  therefore,  one  were  to  pick  out  the  locality  in  Ireland  in 
which  co-operation  had  proved  of  the  greatest  value,  he  would 
choose  the  country  of  the  Rosses  in  North- West  Donegal.  There, 
among  a  people  who  have  preserved,  amidst  many  trials  and 
tribulations,  the  finest  fundamental  human  qualities,  is  to  be 
found  the  real  co-operative  community  which  is  the  ideal  of  the 
movement.  Dungloe  is  in  the  midst  of  a  wild  and  dreary  country, 
where  nature  has  been  most  unkind,  where  rock  and  bog  and 
cloud-cast  sky  color  life  itself  with  sombre  hue.  On  land  which 
is  dark  with  bog  are  scattered  the  whitewashed  cottages  of  a 
comparatively  large  population,  who  eke  out  a  miserable  exist- 
ence from  the  soil,  adding  to  their  small  earnings  the  returns 
from  fishing,  cottage  industries,  and  the  annual  excursion  to  the 
fields  of  Scotland  and  England.  The  generosity  of  the  soil,  which 
with  infinite  pains  and  labor  these  people  cultivate,  is  indicated 
by  the  fact  that  the  valuation  of  one  holding  of  600  acres  was 
£2  2S.;  of  another  of  400  acres,  145.  6d.  The  struggle  for  life 
under  these  conditions  was  very  severe.  It  was  aggravated  by 
the  prevalence  and  the  power  of  the  gombeen-men.  Many  of  the 
people  were  bound  hand  and  foot  to  them  in  a  virtual  slavery. 

And  yet  in  the  character  of  the  people,  in  the  determination 
which  poverty  could  not  quench,  in  the  energy  which  their  hard- 
ships had  developed,  and  in  the  hopelessness  which  was  not  help- 
lessness, were  factors  which  with  co-operative  organization  were 
to  revolutionize  their  condition.  At  first  this  revolution  was 
altogether  peaceable.  In  1903  an  agricultural  bank  was  estab- 
lished, a  form  of  co-operation  in  which  some  of  the  shopkeepers 
even  found  it  advantageous  to  join.  The  increased  spending  power 


SOCIAL  AND  EDUCATIONAL  RESULTS          269 

and  production  which  resulted  were  of  general  advantage  to  the 
trading  community.  But  once  the  co-operative  idea  had  been  tried 
these  people  recognized  its  advantages  in  other  directions. 
"Paddy"  Gallagher,  who  had  after  some  years  in  an  English  coal- 
mine returned  to  his  native  community,  was  interested  in  the 
problem  of  artificial  manures.  He  wanted  a  guaranteed  analysis. 
But  the  shopkeeper  had  never  heard  of  that  new-fangled  notion 
and  would  have  none  of  it.  Mr.  Gallagher  was  not  satisfied.  He 
found  that  the  I.A.W.S.  in  Dublin  could  alone  meet  his  require- 
ments. But  that  concern  only  dealt  with  co-operative  societies, 
and  the  agricultural  bank,  without  trading  powers  and  in  the 
hands  of  the  traders,  was  useless  for  the  purpose.  Only  a  new 
society  would  meet  the  situation.  First,  however,  an  order  was 
placed  through  the  Donegal  Co-operative  Society  for  20  tons  of 
manures.  The  saving  on  this  transaction  was  £40,  in  addition  to 
the  guarantee  of  quality,  and  closed  every  possibility  of  retreat 
or  failure.  The  I.A.O.S.  was  summoned  to  advise  and  help  in  the 
formation  of  the  new  society. 

With  the  accomplishment  of  this  step  the  enemies  became 
active.  The  Traders'  Association  at  once  declared  the  activities 
of  the  society  "illegitimate  trading."  It  threatened  their  position 
as  the  general  arbiters  of  the  community.  But  against  them  was 
a  loyal  group  of  enthusiasts,  confident  of  their  position,  assured 
of  the  wisdom  of  their  stand,  and  ready  to  fight  for  their  con- 
victions to  the  last.  The  small  cottage  which  served  as  their  store 
was  on  the  bleak  hillside,  far  from  the  people  who  traded  with  it, 
and  open  only  two  nights  a  week,  but  it  was  their  own  enterprise 
and  they  had  confidence  in  it.  For  the  first  few  months  business 
was  confined  to  seeds  and  manures;  then  so  successful  was  this 
venture  that  a  small  order  of  meal,  flour  and  bran  was  added. 
The  men  who  took  charge  of  the  shop  were  new  to  business.  Book- 
keeping was  for  them  an  unknown  science,  and  egg-packing  a 
mysterious  art.  Still,  their  spirit  was  right;  the  members  had 
confidence  in  them;  and  they  were  quick  to  learn.  The  success 


270       RURAL  RECONSTRUCTION  IN  IRELAND 


of  the  Dungloe  society  has  in  large  measure  depended  on  this 
leadership  which  responded  to  the  demand  so  willingly  and 
earnestly  and  intelligently. 

As  the  society  expanded — a  change  was  made  to  a  small  store 
about  12  ft.  square — the  opposition  became  more  active.  Whole- 
sale houses,  under  the  threats  of  the  Traders'  Association,  refused 
to  supply  the  new  competitor,  and  recourse  was  had  to  the  Scot- 
tish Co-operative  Wholesale  Society.  For  a  time  some  of  the 
surrounding  traders  were  subsidized  and  cut  prices  on  every 
commodity.  The  society  countered  this  move  by  fitting  up  a  goods 
van  and  sending  it  about  the  countryside.  But  mainly  through 
the  loyalty  of  its  members  the  society  survived  these  early  attacks. 

It  was  found  necessary  to  take  up  the  egg  business,  for  in  the 
country  of  the  Rosses  that  commodity  formed  the  usual  medium 
for  exchange.  Whereas  most  of  the  trade  up  to  this  time  had  been 
on  a  cash  basis,  eggs  must  be  accepted  if  the  business  was  to 
expand.  So  "Paddy  the  Cope,"  at  the  direction  of  the  Depart- 
ment of  Agriculture,  spent  a  term  at  the  school  of  the  Dunboe 
Co-operative  Poultry  and  Egg  Society  and  learned  how  to  pack 
and  grade.  He  learned  other  things  about  business  and  book- 
keeping. Thereafter  the  eggs  were  marketed  through  the  Irish 
Producers'  Society,  and  later  through  the  I.A.W.S.  Immediately 
the  price  paid  throughout  the  district  was  much  increased.  In 
the  single  year  1906  a  gain  of  something  like  £3000  for  the 
farmers  of  the  district  in  this  single  direction  is  recorded.  But 
more  than  this,  it  had  indicated  the  value  of  improved  strains 
of  poultry,  and  cleaner  and  fresher  eggs.  Later  the  system  of 
paying  for  eggs  on  the  basis  of  weight  was  adopted.  A  poultry 
station  for  improved  breeding  was  set  up  in  the  community  under 
the  direction  of  the  co-operative  leaders.  No  longer  was  the  hen 
looked  upon  with  disdain  by  the  menfolk  of  the  community. 
"When  we  meet  a  good  laying  hen,"  one  wag  declared,  "we  put 
our  hand  to  our  hat!" 

Progress  was  rapid.  By  another  change  the  proportions  of  the 


SOCIAL  AND  EDUCATIONAL  RESULTS          271 

shop  were  increased  by  one  foot  each  way,  and  a  room  overhead. 
The  miscellaneous  stock  of  boots,  groceries  and  hams  so  com- 
pletely filled  the  available  space  that  the  tall  member  found  him- 
self in  a  wilderness  of  hams,  and  for  two  of  the  more  sturdily 
built  members,  passage  in  the  aisle  became  a  matter  of  nice 
adjustment!  But  nevertheless  the  society  grew  with  rapidity. 
The  turnover  doubled,  membership  increased,  and  non-members 
found  it  advantageous  to  trade.  The  pig  business  was  taken  up 
on  a  small  scale  for  the  benefit  of  the  members.  This  was  of 
advantage  both  from  the  point  of  view  of  the  member  who  was 
a  producer  and  had  given  up  the  business  as  unprofitable,  and 
the  member  who  was  a  consumer.  Likewise  the  society  purchased 
spraying  materials  and  spraying  machines,  which  they  rented  to 
members.  Weeks  later  the  Department  and  the  Donegal  Agricul- 
tural Committee  sent  out  the  same  materials,  but  these  came  too 
late  to  deal  effectively  with  the  potato  blight  which  had  already 
appeared.  The  value  of  the  local  organization  over  the  outside 
agency  was  indicated  in  this  practical  way.  Also  a  small  threshing- 
machine  was  purchased  by  the  society  and  rented  to  members. 

The  society  was  not  satisfied  with  going  on  its  own  way  with- 
out making  use  of  the  State  agencies  existing.  Much  might  be 
accomplished  if  the  District  and  County  Councils  were  favorable 
to  co-operative  principles.  Hitherto  the  farmers  had  not  been 
fairly  represented.  So  Mr.  Gallagher  and  other  co-operative 
leaders  stood  for  the  various  County  and  District  Councils.  Their 
campaign  was  fought  on  the  issue  of  gombeenism  versus  co- 
operation, and  it  is  hardly  necessary  to  state  the  result.  The  com- 
parison introduced  by  Mr.  Gallagher  in  his  election  address  was 
sufficiently  odious.  In  April  1906,  eggs  were  5d.  per  dozen;  in 
April  1911,  they  were  9d.;  flour  dropped  from  143.  to  ios., 
despite  a  rise  in  the  wholesale  price;  20  per  cent,  superphosphate 
cost  i2S.  per  bag  at  the  shopkeepers';  30  per  cent,  superphosphate 
cost  ys.  6d.  at  the  co-operative  store.  The  co-operators  were 


272        RURAL  RECONSTRUCTION  IN  IRELAND 

elected.  In  this  instance  at  least  economic  freedom  was  not  to  be 
nullified  by  political  subjection. 

In  1909  another  step  was  taken  by  the  grant  of  a  village  hall 
from  the  Pembroke  Irish  Charities  Fund,  six  of  which  had  been 
offered  to  the  most  deserving  societies  in  Ireland.  This  has  offered 
an  opportunity  for  young  and  old  to  meet  for  recreation,  and  new 
color  and  gaiety  has  thus  been  introduced  into  the  life  of  the 
countryside. 

The  latest  annual  report  of  the  society  (1915)  indicates  the 
importance  of  the  achievement.  The  total  turnover  amounted 
to  over  £21,500*  compared  with  about  £15,500  in  the  previous 
year.  The  net  profit  disposable  was  £572,  from  which  a  dividend 
of  is.  6d.  on  the  pound,  or  7^  per  cent,  on  members'  purchases, 
was  paid.  The  remainder  was  allocated  to  reserve.  The  latest 
development  of  the  society,  the  knitting  industry  described  else- 
where, brought  into  the  community  nearly  £100  a  week  in  wages 
alone.  In  the  meantime,  other  societies  have  been  started  through- 
out the  district,  inspired  by  this  success  in  Dungloe.  Of  these, 
the  Porteous  Agricultural  Bank  is  an  interesting  development. 
This  society  was  formed  in  1914,  and  unlike  the  original  Dungloe 
Bank,  which  still  continues  its  valuable  work,  it  is  not  on  the 
Raiffeisen  plan.  Its  members  are  men  already  in  debt,  and  the 
purpose  of  the  society  is  to  improve  their  position,  not  by  in- 
creasing their  borrowing,  but  by  bettering  the  conditions  of  their 
present  loans.  Full  repayment  is  to  be  made  in  fifteen  years.  The 
capital  for  this  experiment  has  been  obtained  from  private 
sources,  and  the  society  thus  assumes  to  some  extent  the  aspect 
of  a  philanthropic  agency.  But  it  is  protected  from  the  dangers 
which  might  follow  such  an  enterprise  by  the  admirable  spirit 
of  these  people  whose  success  at  Dungloe  has  been  so  significant. 

Their  achievement  is  far  in  the  direction  of  the  co-operative 
community  which  has  been  in  the  minds  of  dreamers  and  enthu- 
siasts of  the  Plunkett  House.  The  domination  of  the  gombeen- 

*  Increased  in  1916  to  £35,000. 


SOCIAL  AND  EDUCATIONAL  RESULTS          273 

men  is  over.  The  society  now  conducts  the  business  of  its  members 
in  almost  every  direction.  From  it  they  buy  their  manures  and 
seeds;  in  its  workshop  they  find  employment  for  their  daughters; 
through  its  assistance  they  sell  their  eggs  and  poultry;  and  in 
its  store  they  purchase  their  necessities  both  as  producers  and 
consumers.  If  credit  facilities  are  necessary,  they  are  able  to 
secure  a  loan  from  their  co-operative  credit  society.  These 
arrangements  have  made  a  vast  difference  in  the  material  back- 
ground of  the  lives  of  these  people.  The  local  slaughtering  of 
sheep  and  cattle  has  placed  the  hitherto  unknown  luxuries  of  beef 
and  mutton  within  the  reach  of  the  poorest.  But  more,  this  com- 
munity effort  has  brightened  the  lives  of  the  people  and  put  an 
end  to  the  emigration  which  was  yearly  sapping  their  vitality. 
In  the  village  hall  has  been  found  the  necessary  centre  for  the 
community  gatherings  in  which  the  wholesome  spirit  of  recreation 
finds  an  outlet.  These  plain  people  of  Dungloe  by  their  loyalty 
to  one  another,  their  steadfast  allegiance  to  co-operative  prin- 
ciples, and  by  the  leadership  which  they  have  found  latent  among 
themselves,  have  given  an  example  of  the  potentialities  of  the 
co-operative  movement,  not  only  for  Ireland,  but  for  rural 
districts  everywhere. 


CHAPTER  XVI 

THE  FUTURE  DEVELOPMENT  OF  THE 
MOVEMENT 

IN  the  earlier  chapters  of  this  book  we  have  confined  ourselves 
almost  entirely  to  matters  of  history,  but  in  discussing  the  rela- 
tionship between  industrial  and  agricultural  co-operative  societies 
we  have  been  brought  face  to  face  with  the  fact  that  great 
developments  both  of  policy  and  of  practice  lie  ahead  of  the 
movement,  if  it  is  to  attain  its  highest  ideals.  The  nature  of  co- 
operation— its  combination  of  business  practice  with  idealism- 
is  such  that  its  exponents  can  never  afford  to  rest;  if  the  constant 
pursuit  of  the  ideal  side  is  abandoned  even  for  a  short  time,  the 
success  of  the  business  side  will  probably  lead  to  a  relapse  into 
materialism.  We  must  then  attempt  the  task  of  suggesting  or 
forecasting  some  possible  lines  of  future  development. 

The  leaders  of  the  I.A.O.S.  waged  for  twenty  years  or  more 
a  practically  unceasing  war,  not  only  against  every  form  of 
vested  interest,  but  against  a  far  more  dangerous  enemy — the 
combined  inertia  and  mistrust  of  the  Irish  agriculturist.  It  was 
absolutely  necessary  that  they  should  prove  themselves  capable 
not  only  of  establishing — on  a  sound  basis — societies  which 
would  add  to  the  material  prosperity  of  the  country,  but  of 
carrying  through  their  programme  of  social  reform  without 
thought  of  political  capital  or  personal  advantage.  If  it  has  not 
been  made  clear  that  in  these  things  they  have  succeeded,  this 
book  will  have  largely  missed  its  purpose. 

But,  while  the  accomplishment  of  these  things  in  the  face  of 
constant  financial  difficulties  has  been  a  great  task  in  itself,  there 

274 


FUTURE  DEVELOPMENT  OF  MOVEMENT       275 

is  admittedly  much  more  to  be  done  before  Ireland  can  realize 
the  whole  ideal  as  it  existed  in  the  minds  of  the  pioneers.  Inquirers 
into  various  forms  of  social  and  agricultural  development  come 
to  the  Plunkett  House  from  the  farthest  countries  of  the  world — 
many  from  India,  some  from  Japan,  and  a  great  number  from 
the  United  States.  Most  of  them  find  in  Ireland  what  they  seek, 
and  some  of  them  put  into  practice  in  their  own  countries  what 
they  have  learned  in  this  way.  Just  as  the  Rochdale  pioneers  are 
pioneers  of  industrial  co-operation  in  many  countries  as  well  as 
in  England,  so  the  I.A.O.S.,  in  spite  of  its  comparative  youth  as 
against  the  movement  in  Germany  or  Denmark,  has  found 
acknowledged  imitators,  not  only  in  England  and  Scotland,  but 
in  Finland,  Serbia,  India  and  the  United  States,  while  the  pages 
of  co-operative  papers  and  the  speeches  of  co-operative  leaders 
in  many  other  countries  show  the  respect  with  which  it  is 
regarded. 

The  record  of  progress  is,  indeed,  a  great  one  in  comparison 
with  the  records  of  most  other  agencies  which  have  tried  to  do 
something  for  the  betterment  of  Ireland;  yet  it  is  not  particularly 
impressive  from  the  point  of  view  of  the  student  of  agricultural 
co-operation  in  general.  Nor  can  the  inquirers  find,  in  visiting  the 
country  districts,  more  than  a  comparatively  small  number  of 
societies  which  are  in  any  way  qualified  to  serve  as  patterns 
either  of  business  methods  or  of  co-operative  faith. 

Irishmen  may  feel  a  proper  pride  in  this  movement  as  a  rare 
piece  of  Irish  constructive  work;  but  they  must  admit  that  more 
striking  material  success  has  been  achieved  in  other  countries. 

Why,  then,  has  Ireland  become  the  centre  of  pilgrimage  for 
agricultural  co-operators?  The  men  at  the  head  of  this  movement 
are  able  to  inspire  others  because  they  themselves  have  a  clear 
vision  of  what  co-operation  should  be.  The  Co-operative  Common- 
wealth of  which  A.  E.  writes  is  for  these  people  a  real  objective. 
The  fact  that  the  outward  and  visible  signs  of  the  movement  are 
not  proportioned  to  this  spirit  causes  but  little  disappointment 


276        RURAL  RECONSTRUCTION  IN  IRELAND 

to  those  who  have  any  conception — and  no  man  can  be  long  in 
Ireland  without  forming  such  a  conception — of  the  peculiar  diffi- 
culties which  have  had  to  be  faced  and  overcome.  They  realize 
that  these  men  have  been  sensible  enough  to  see  that  business 
success  must  be  established  before  higher  results  can  be  looked 
for,  and  that  their  patient  work  in  this  direction  is  gradually 
meeting  with  its  reward. 

But  the  time  has  come  when  further  developments  must  be 
undertaken  and  strenuous  efforts  made  to  bring  the  practice  of 
the  movement  into  harmony  with  the  theory  of  its  leaders.  The 
I.A.O.S.  attained  its  majority  in  1915,  in  the  midst  of  war.  It 
had  by  that  time  established  throughout  the  country  a  sufficient 
number  of  societies  to  meet  the  needs  of  practically  the  whole 
agricultural  population,  if  each  society  were  doing  its  work  in 
the  most  effective  manner.  It  was  able  to  show  figures  of  turnover 
by  the  local  societies  and  their  trade  federations  which  entitled  it 
to  laugh  at  those  who  persist  in  describing  it  as  a  theoretical 
experiment  or  a  plaything  of  faddists.  These  facts  justify  our 
assumption  that  the  groundwork  may  be  considered  complete, 
and  that  the  time  is  ripe  for  new  experiments.  The  circum- 
stances of  the  day  lend  fresh  weight  to  this  claim.  This  war  must 
be  succeeded  by  a  period  of  social  reconstruction,  and  by  sweeping 
changes  in  industrial  values  and  in  business  methods.  Agriculture 
can  never  again  be  the  neglected  poor  relation  of  industry  which 
it  has  been  in  the  United  Kingdom  for  many  years,  nor  can  the 
co-operative  form  of  organization  continue  to  be  regarded  with 
contempt  or  indifference  in  the  face  of  what  it  has  accomplished 
in  other  belligerent  countries.  Further,  it  seems  to  be  true  that 
the  energies  of  a  people  are  quickened  by  war,  and  history  shows 
that  times  of  hardship  have  always  afforded  a  great  stimulus  to 
the  co-operative  movement.  Irish  co-operators  are,  therefore, 
justified  in  looking  forward  to  the  next  few  years  as  a  time  of 
development. 

We  have  already  indicated — in  the  chapters  dealing  with  the 


FUTURE  DEVELOPMENT  OF  MOVEMENT       277 

various  types  of  societies — some  of  the  improvements  which  may 
be  expected  in  the  future.  Thus  the  creameries  have  before  them 
the  task  of  so  arranging  their  marketing,  and  of  establishing  such 
a  standard  for  Irish  butter,  that  the  brand  of  the  control  will  be 
as  good  a  guarantee  of  quality  as  it  is  in  the  case  of  Holland  or 
Denmark.  The  agricultural  societies  must  bring  about  such  an 
expansion  in  their  business  as  will  ensure  their  continuous  activity 
throughout  the  year;  while  the  credit  societies  cannot  command 
success  in  the  future  if  they  do  not  imitate  the  example  of  their 
continental  predecessors,  and  become  collecting  centres  for  the 
savings  of  the  people,  and  possibly  trading  centres  as  well. 
We  have  dealt  also  with  the  importance  of  rural  stores,  and  the 
difficulties  under  which  the  I.A.O.S.  labors.  It  is  finally  apparent 
that  there  is  room  for  a  very  considerable  increase  in  the  number 
and  variety  of  societies  for  purposes  other  than  the  making  of 
butter  or  the  purchase  of  requirements.  The  reader  who  is 
familiar  with  the  conditions  of  the  movement  in  other  countries 
will  have  noticed  particularly  that  Ireland  has  done  little  or 
nothing  in  the  direction  of  the  collective  sale  of  crops  and  live 
stock.  In  this  respect,  indeed,  the  co-operators  of  all  European 
countries  have  much  to  learn  from  America,  where  the  circum- 
stances and  business  intelligence  of  the  farmers  have  led  them 
to  develop  from  the  beginning  this  most  difficult  form  of  co- 
operation. 

But  all  these  suggestions  for  the  future  are,  when  analyzed, 
matters  of  improvement  in  detail — an  improvement  which  will 
inevitably  be  brought  about  by  a  gradual  process  of  closer 
organization.  Underlying  them  are  far  more  vital  questions 
affecting  the  whole  economic  progress  of  the  country.  All  of 
these  questions  depend  upon  the  future  of  the  I.A.O.S.  The  posi- 
tion of  this  body  is  in  several  respects  peculiar.  It  has  long  been 
in  theory  a  federation  for  advisory  purposes  of  a  number  of  co- 
operative societies  whose  turnover  is  amply  sufficient  to  enable 
them  to  support  such  a  federation  in  a  state  of  efficiency  without 


278        RURAL  RECONSTRUCTION  IN  IRELAND 

any  outside  help.  In  practice,  it  has  remained  almost  what  it  was 
twenty  years  ago,  so  far  as  the  relations  with  the  societies  are 
concerned.  It  was,  then,  frankly  a  more  or  less  philanthropic 
society,  seeking  the  betterment  of  Irish  economic  conditions 
through  the  education  of  farmers,  supported  by  all  who  were 
sufficiently  interested  in  this  object  to  open  their  purses  to  it, 
and  administered  by  a  small  body  of  enthusiasts,  of  whom  many 
were  unpaid,  and  some  merely  badly  paid.  The  intention  was 
to  let  it  develop  to  a  point  where  it  could  be  handed  over  to  the 
societies  and  become  their  own  federation — supported,  controlled 
and  administered  by  them.  So  far  as  the  leaders  of  the  movement 
are  concerned,  every  effort  has  been  made  to  carry  out  this  inten- 
tion. Constitutionally,  the  societies  which  pay  the  very  modest 
affiliation  fees  required  of  them  have  absolute  control  of  the 
policy  and  conduct  of  the  I.A.O.S.;  the  election  of  the  committee 
is  on  the  most  democratic  basis,  and  the  committee  administers 
the  whole  affairs  of  the  I.A.O.S.,  subject  to  the  orders  of  the 
annual  general  meeting,  at  which  the  representatives  of  the 
affiliated  societies  have  the  right  both  to  speak  and  to  vote.  In 
spite  of  all,  the  I.A.O.S.  still  wears,  to  the  eye  of  the  unprejudiced 
observer,  the  appearance  of  a  philanthropic  body  directing  from 
the  centre  the  affairs  of  its  offspring.  A  large  part  of  its  funds 
still  comes  from  other  sources  than  the  societies  which  benefit  by 
its  work.  The  affairs  of  the  society  are  still,  in  a  large  measure, 
directed  by  a  small  band  of  enthusiasts,  and  not  by  the  affiliated 
societies.  It  may  seem  strange  that  the  repeated  attempts  of  the 
leaders  of  the  movement  to  abdicate  their  position  have  not  been 
taken  advantage  of  by  the  societies.  It  is  not  so  strange  to  those 
who  understand  the  mentality  of  the  Irish  farmer.  Stated  bluntly, 
the  fact  is  that  farmers,  while  enjoying  the  benefits  they  derive 
from  co-operation,  and  being,  no  doubt,  in  some  measure  grateful 
for  them,  have  neither  accepted  the  responsibilities  nor  claimed 
the  privileges  which  membership  in  the  I.A.O.S.  should  imply; 
they  have  just  gone  on  farming,  and  hoped  the  co-operative 


FUTURE  DEVELOPMENT  OF  MOVEMENT       279 

society  would  go  on  being  useful.  This  is  an  attitude  for  which 
it  is  no  use  blaming  them.  It  would  be  more  reasonable  to  blame 
the  Providence  which  put  the  farmer  under  so  many  disabilities, 
or  the  authorities  who  created  the  Irish  educational  system.  But, 
wherever  the  blame  lies,  the  majority  of  the  societies  affiliated 
with  the  I.A.O.S.  do  not  see  the  necessity  for  making  a  real  effort 
to  render  the  federation  self-supporting,  while,  on  the  other  hand, 
they  willingly  renounce  their  claims  to  exercise  more  than  a 
nominal  control  over  it,  and  are  usually  satisfied  to  re-elect 
committeemen,  whether  they  know  anything  about  them  or  not. 
Perhaps  the  most  concrete  evidence  of  this  abnegation  of  respon- 
sibility is  to  be  seen  in  the  scant  attendance  at  the  district  con- 
ferences, which  were  created  by  the  I.A.O.S.  for  the  distinct 
purpose  of  providing  an  organ  for  the  easy  expression  of  local 
opinion. 

This  state  of  things  has  two  particularly  bad  consequences — 
it  hampers  the  I.A.O.S.  in  its  policy  of  expansion,  and,  on  the 
other  hand,  it  prevents  it  from  becoming  a  really  effective  organ 
for  the  expression  of  agricultural  opinion  on  the  public  affairs 
of  Ireland.  The  first  of  these  disadvantages  has  been  touched 
upon  more  than  once  in  this  book,  when  we  have  had  occasion 
to  deal  with  the  question  of  co-operative  stores  for  general  pur- 
poses. The  failure  of  the  affiliated  societies  to  make  the  I.A.O.S. 
self-supporting  has  rendered  it  necessary  to  fall  back  upon 
Government  aid.  We  have  described  the  difficulties  with  which 
this  Government  aid  was  obtained,  and  the  restrictions  with 
which  it  is  attended,  and  it  is  not  necessary  to  go  over  this  thorny 
ground  again.  Present  conditions  have  accentuated  more  than 
ever  the  fact  that  in  Ireland  what  is  usually  called  "industrial 
co-operation"  must  be  combined  with  agricultural  co-operation, 
if  either  is  to  reach  its  full  power,  and  the  central  body  must  be 
able  to  deal  with  both  aspects  of  the  matter.  Two  illustrations — 
one  of  which  has  held  good  for  many  years,  while  the  other  arises 
specifically  out  of  war  conditions — will  suffice  to  put  the  matter 


28o        RURAL  RECONSTRUCTION  IN  IRELAND 

beyond  doubt.  The  first  is  the  fact  that  the  movement  as  it  exists 
at  present  is  able  to  do  little  or  nothing  for  agricultural  laborers, 
who  are  yet  more  deserving  of  help  than  almost  any  class  in 
Ireland.  These  men  have  no  interest  in  creameries,  agricultural 
societies,  and  the  like,  since  they  have  no  land.  Their  earning 
power  is  deplorably  low,  and  while  they  may  obtain  a  certain 
measure  of  relief  by  being  members  of  credit  societies,  this  will 
not  by  any  means  solve  the  problem  of  their  perpetual  struggle 
with  poverty.  At  best  it  will  only  present  them  with  another 
problem — that  of  repayments  of  loans  which  they  are  not,  as  a 
rule,  able  to  put  to  a  productive  purpose.  Nor  is  it  easy  for  an 
agricultural  laborer  to  find  sureties.  Irish  conditions  do  not  seem 
adapted  to  the  formation  of  co-operative  societies  for  the  under- 
taking of  labor  by  contract,  such  as  exist  in  Italy.  Isolated  experi- 
ments in  this  direction  may  succeed  occasionally,  but  the  adop- 
tion of  such  a  policy  by  the  I.A.O.S.  would  be  more  likely  to 
lead  to  friction  than  to  an  improvement  in  conditions.  The  only 
remaining  expedient  is  to  provide  the  laborer — either  through  a 
credit  society  or  independently — with  a  co-operative  store,  where 
his  small  wages  can  be  exchanged  for  the  necessaries  of  life  on 
the  best  possible  terms,  thus  increasing  his  purchasing  power. 
This  policy  the  I.A.O.S.  is  debarred  from  following;  and  to  those 
who  criticize  it  for  neglecting  laborers'  interests  it  can  only  reply 
that  by  bringing  prosperity  to  the  farmer  it  is  enabling  him  to 
pay  higher  wages — an  argument  which,  while  undoubtedly  true, 
is  somewhat  remote  in  its  application  to  the  needs  of  the  moment. 
Our  second  illustration  is  a  matter  of  detail,  arising  out  of 
peculiar  conditions.  There  has  been  since  the  beginning  of  the 
war  a  great  demand  for  the  introduction  of  the  principle  of  co- 
operative purchase  in  districts  where  it  had  not  previously 
excited  attention.  Many  of  these  newly  formed  societies  have 
found  that  in  present  conditions  the  margin  of  profit  available 
on  agricultural  requirements  is  so  small,  and  the  difficulty  of 
obtaining  them  so  great  that,  in  order  to  prosper,  they  must  add 


FUTURE  DEVELOPMENT  OF  MOVEMENT       281 

other  lines  of  business.  This  fact — coupled  with  the  high  price 
of  all  necessaries — has  led  them  to  go  into  the  general  grocery 
trade.  They  have  immediately  come  into  contact  with  the  irk- 
some restrictions  of  the  Sugar  Commissioners,  and  have  been 
threatened  with  catastrophe.  Such  societies,  on  appealing  to  the 
I.A.O.S.,  which  originally  brought  them  into  existence,  find  that 
in  matters  of  this  kind  that  body  can  do  nothing  for  them.  Thus 
the  I.A.O.S.  may  have  to  watch  helplessly  the  collapse  of  a 
successful  business  in  agricultural  requirements,  because  a  tech- 
nical restriction  forbids  it  from  dealing  with  a  shortage  of  sugar 
supplies.  We  may  hope  that  this  particular  instance  is  a  passing 
one;  but  it  serves  to  illustrate  the  dangerous  futility  of  red  tape. 
Nor  is  it  only  in  respect  to  the  formation  of  stores  that  the 
acceptance  of  Government  aid  hampers  the  independence  of  the 
movement.  In  order  to  qualify  for  the  grant  the  I.A.O.S.  must 
submit  detailed  estimates  to  the  Treasury  at  the  beginning  of 
each  financial  year,  which  means  that  no  change  of  policy  in- 
volving expenditure  can  be  inaugurated  without  delay — no 
matter  how  much  it  may  be  called  for  by  changing  conditions. 
Any  one  who  has  had  experience  of  administrative  work  carried 
on  through  a  committee  will  easily  be  able  to  imagine  the  hundred 
little  ways  in  which  the  Development  Commissioners  with  their 
representation  on  the  I.A.O.S.  committee  might  either  deliberately 
or  unintentionally  impede  its  efficiency.  Up  to  the  present  the 
Development  Commission  and  its  representatives  on  the  I.A.O.S. 
committee  have  always  behaved  in  an  extraordinarily  sympathetic 
and  helpful  manner;  unfortunately,  however,  the  final  power  is 
not  in  their  hands,  but  in  those  of  the  Treasury;  and,  further- 
more, their  helpfulness  has  been  due  to  their  personalities,  and 
we  have  no  guarantee  against  change.  In  any  case,  it  is  against 
the  principle  of  Government  aid  with  its  corollary  of  Government 
interference  that  we  are  arguing;  and  with  this  argument  we 
believe  that  the  Development  Commissioners  as  at  present  con- 
stituted would  be  among  the  first  to  agree.  It  may  be  remarked 


282        RURAL  RECONSTRUCTION  IN  IRELAND 

that  even  the  obtaining  of  money  from  private  sources  is  no 
altogether  free  from  similar  objections.  A  man  engaged  in  some 
form  of  business  may  be  persuaded  to  give  money  to  help  the 
education  of  farmers,  but  he  may  feel  himself  entitled  to  express 
righteous  indignation  if  this  education  results  in  farmers  entering 
into  competition  with  him  in  his  own  province. 

Such  are  the  weaknesses  to  which  Irish  farmers  have  exposed 
their  central  body  by  their  failure  to  realize  their  responsibility 
of  making  it  financially  independent.  Closely  allied  to  these  are 
the  more  negative  defects  which  have  been  caused  by  their  reluc- 
tance to  claim  their  privilege  by  making  their  voices  clearly  heard 
in  its  councils. 

Under  modern  conditions  of  industrial  organization  practically 
every  trade  and  profession  has  found  it  desirable  to  create  an 
association  which  will  represent  and  further  its  interests.  This 
applies  almost  equally  at  the  present  time  to  the  employer  and 
the  employee,  to  the  capitalist  and  the  artisan.  We  know  to  our 
cost  the  influence  which  organizations  of  the  captains  of  industry 
are  able  to  exercise  upon  Government,  and  we  have  seen  more 
recently  the  tremendous  strength  which  the  trade  unions  are  able 
to  put  forth.  The  co-operative  movement  has  long  been  behind- 
hand in  this  respect,  and  has  suffered  in  consequence;  in  its  very 
proper  desire  to  hold  aloof  from  the  disastrous  complications  of 
party  politics  it  has  tended  to  cut  itself  off  from  political  repre- 
sentation in  the  wider  sense.  In  the  last  few  years,  however,  as 
the  movement  has  achieved  national  importance,  and  the  forces 
arrayed  against  it  have  become  more  and  more  vigorous,  the 
industrial  co-operators  of  Great  Britain  have  realized  that  they 
must  be  prepared  to  defend  themselves  by  the  same  methods. 
The  Parliamentary  Committee  of  the  Co-operative  Union  is  now 
a  permanent  body  of  considerable  importance,  charged  with  the 
duty  of  watching  co-operative  interests  at  Westminster.  The 
increase  in  the  number  and  importance  of  Labor  representa- 


FUTURE  DEVELOPMENT  OF  MOVEMENT       283 

tives — most  of  whom  are  favorable  to  co-operation — enables  it 
to  find  a  medium  of  expression  for  its  opinions. 

No  class  stands  so  much  in  need  of  this  form  of  organization 
as  does  that  which  derives  its  living  from  farming.  The  nature  of 
the  farmer's  business,  while  it  precludes  him  from  devoting  any 
time  to  talking  or  writing,  or  even  to  acquiring  the  kind  of  edu- 
cation which  would  make  him  effective  in  these  directions,  at  the 
same  time  often  lays  him  open  to  attacks  and  injustice  against 
which  he  sorely  needs  to  defend  himself.  Since  the  farmer  owns, 
or  at  least  occupies,  the  land  which  is  the  source  of  everything  we 
need,  he  has  to  bear  a  large  share  of  the  blame  for  every  scarcity 
or  rise  in  price  which  takes  place.  Furthermore,  most  people  seem 
to  have  a  vague  idea  that  they  could  farm  successfully  if  they 
got  the  opportunity;  one  seldom  hears  a  layman  undertaking  to 
show  a  manufacturer  of  boots  or  soaps  how  to  use  his  plant  to 
better  advantage,  but  the  number  of  people  who  are  prepared 
to  teach  a  farmer  how  to  farm  seems  to  be  inexhaustible,  and 
unfortunately  quite  a  large  number  of  them  find  their  way  into 
positions  of  importance,  including  Government  Departments 
entrusted  with  the  administration  of  agriculture.  The  farmer  is 
strongly  of  opinion  that  he  is  beset  by  foolish,  ill-natured  and 
greedy  persons;  too  often  he  seeks  to  counteract  his  misfortune 
by  practising  himself  the  vices  he  imputes  to  his  antagonists,  and 
thus  the  old  proverb  which  says,  "Give  a  dog  a  bad  name  and 
hang  him,"  receives  a  practical  illustration.  A  far  better  plan  for 
the  farmer  is  to  seek  organization  for  the  protection  of  his  pro- 
fessional interests  on  the  same  lines  as  have  been  followed  by 
the  townsman.  Until  comparatively  recent  years  this  would  have 
been  an  empty  dream.  The  isolation  of  the  farmer,  his  backward 
education,  and  often  his  insecurity  of  tenure  and  dependence 
upon  other  persons,  rendered  it  impossible  for  him  to  combine 
with  his  fellows ;  and  in  this  fact  probably  we  have  the  root-cause 
of  that  constant  movement  to  the  towns  which  sociologists  so 
frequently  and  so  vainly  deplore.  The  improvement  in  communi- 


284        RURAL  RECONSTRUCTION  IN  IRELAND 

cations,  the  development  of  the  newspaper  and  of  a  slightly 
higher  standard  of  popular  education,  and  the  sweeping  reforms 
in  the  laws  relating  to  the  occupation  of  land  opened  the  way 
to  an  improvement  in  this  direction,  and  the  co-operative  move- 
ment sprang  up  as  the  first  step  towards  combination  among 
farmers  for  their  mutual  advantage.  The  logical  development 
of  this  movement  is  to  give  the  farmer  not  only  a  possibility  of 
doing  business  on  a  large  scale  by  combination,  but  also  a  means 
of  making  his  needs  known  in  high  quarters  and  protecting  him- 
self against  abuse  and  injustice.  What  can  be  done  in  this  direc- 
tion is  shown  by  the  strength  of  the  farmers'  party  in  Germany, 
although  it  must  be  admitted  that  the  leaders  of  this  party  are 
hardly  representative  of  the  small-holder  who  produces  most  of 
the  food  of  the  nation.  In  Denmark  farmers  practically  control 
the  Government,  and  in  many  European  countries  they  are  able 
to  make  their  voices  heard — usually  through  co-operative  chan- 
nels— with  great  effect.  Perhaps  the  most  striking  of  all  has  been 
their  progress  in  this  direction  in  the  United  States.  In  that 
country  the  farmer's  vote,  represented  by  the  Granges  and  other 
large  organizations,  has  become  a  real  power  to  which  America 
owes  the  parcel  post  and  many  other  innovations.* 

One  would  not  expect  that  the  English  farmer  could  attain  to 
this  position,  but  in  Ireland,  where  a  majority  of  the  population 
make  their  living  by  agricultural  pursuits,  it  would  seem  reason- 
able to  assume  that  they  would  exercise  some  authority  in  public 
affairs.  Furthermore,  when  the  I.A.O.S.  has  succeeded  in  organ- 
izing 100,000  of  them  for  business  purposes,  we  would  suppose 
that  it  would  be  the  proper  vehicle  for  this  exercise  of  authority, 
that  it  would  be,  in  fact,  a  true  farmers'  trade-union,  and  would 
be  in  a  strong  enough  position  to  protect  its  .own  interests  and 

*A  further  demonstration  was  given  in  1915  by  the  Farmers'  Non-Partisan 
Political  League,  which  was  founded  as  a  protest  against  the  corrupt  administration 
of  the  State  of  North  Dakota,  and  gave  practical  effect  to  this  protest  on  polling 
day  by  returning  candidates  of  its  own  to  practically  all  the  important  offices  in 
the  State. 


FUTURE  DEVELOPMENT  OF  MOVEMENT       285 

those  of  its  members  against  all  comers.  We  find,  on  the  contrary, 
that  after  twenty  years  Ireland  is  still  administered  in  the  interest 
of  any  class  rather  than  the  farmers.  For  twenty  years  the 
I.A.O.S.  has  been  subject  to  attack  and  misrepresentation  in  the 
Press,  in  Parliament,  and  throughout  the  country;  gross  false- 
hoods, such  as  that  it  is  a  trading  body,  a  political  conspiracy, 
or  a  malignant  trust,  can  still  be  uttered  even  at  Westminster  by 
men  who  know  them  to  be  untrue — and  hardly  a  dissenting  voice 
is  raised.  Irish  farmers  allow  laws  and  regulations  to  be  made 
which  inflict  upon  them  hardships  and  hindrance;  they  allow 
their  economic  welfare  to  be  treated  with  contempt,  and  the 
Department  which  is  supposed  to  represent  them  to  be  dominated 
by  the  representatives  of  middlemen  and  publicans;  and  they 
raise  at  best  a  feeble  protest.  For  years  bad  seeds  have  been  sold 
in  contravention  of  the  Weeds  and  Seeds  Act,  which  has  been 
used  against  the  farmers  when  the  weeds  came  up.  For  years 
they  have  had  no  representative  in  Parliament  to  protest  against 
such  things;  they  have  gone  on  voting  on  the  old  party  lines, 
without  reference  to  their  own  professional  interests.  So  long  as 
these  conditions  endure,  Ireland,  whose  strength  lies  in  the  land, 
will  continue  to  be  the  unhappiest  member  of  the  family  of 
nations. 

By  asserting  their  privileges  as  members  of  a  co-operative 
society  the  farmers  have  it  in  their  power  to  bring  about  a  change. 
It  is  true  that  the  leaders  of  the  I.A.O.S.  have  been  careful — 
strictly  and  rightly  careful — to  avoid  an  entanglement  in  party 
politics  which  would  have  brought  certain  disaster.  How  success- 
ful they  have  been,  in  spite  of  calumny  and  provocation,  we  have 
already  shown  in  stating  the  manner  in  which  representatives  of 
all  parties  are  able  to  meet  amicably  upon  co-operative  com- 
mittees. But  this  does  not  mean  that  they  must  for  ever  refrain 
from  giving  effect  to  the  views  of  the  farmers  in  the  sphere  of 
Government. 

They  have  nothing  to  gain  and  everything  to  lose  by  identify- 


286        RURAL  RECONSTRUCTION  IN  IRELAND 

ing  themselves  with  Unionists  or  Nationalists;  but  it  is  their 
manifest  duty  to  create  a  true  farmers'  party.  This  they  would 
do  if  the  farmers  gave  practical  proof  of  their  willingness  to 
support  it. 

But  all  these  aspirations  depend,  like  the  majority  of  demo- 
cratic ambitions,  upon  one  condition  precedent,  which  is  yet  far 
from  being  realized.  The  farmers  of  Ireland  cannot  be  expected 
to  respond  to  the  call  even  of  their  own  movement  until  they 
have  been  thoroughly  educated.  And  the  education  of  an  Irish 
farmer,  so  far  from  being,  as  it  is  now  apparently  thought  by 
many  to  be,  a  rather  unimportant  side-issue,  is,  on  the  contrary, 
a  problem  of  the  greatest  possible  gravity.  Whatever  system  of 
government  may  be  devised  for  Ireland  the  farmer  must  for 
many  years  play  a  large  part  in  its  direction.  Without  education 
in  citizenship,  without  that  technical  education  which  will  give 
him  stability,  without  that  cultural  education  which  will  give  him 
the  power  to  appreciate  ideals,  he  will  not  be  able  to  carry  out 
properly  the  duties  so  entrusted  to  him. 

It  would  surely  seem  that  the  farmers  have  had  a  considerable 
amount  of  time,  money  and  thought  lavished  upon  them;  yet 
they  have  always  been  treated  as  a  means  to  an  end  and  scarcely 
ever  as  human  beings.  It  has  been  thought  well  to  give  them  an 
opportunity  of  producing  more  wealth  for  the  nation,  but  the 
idea  of  giving  them  cultural  education  per  se  has  been  considered 
ridiculous.  There  are  many  people  who  go  so  far  as  to  suppose 
that  it  is  impossible  for  farmers  to  take  successfully  a  predomi- 
nating place  in  government.  As  a  direct  disproof  of  this  theory 
we  have  the  example  of  Denmark,  which  is  practically  governed 
by  farmers  for  farmers.  Yet  we  hear  no  complaints  of  oppression 
from  the  people  of  Copenhagen,  a  large  and  flourishing  indus- 
trial city.  And  it  is  precisely  in  Denmark  that  this  idea  of  the 
higher  education  of  farmers  has  actually  been  put  into  effect — 
most  strikingly  through  the  agency  of  the  famous  folk  schools. 

The  I.A.O.S.  has  fulfilled  to  a  great  extent,  so  far  as  any  limited 


FUTURE  DEVELOPMENT  OF  MOVEMENT       287 

agency  can  fulfil,  the  material  part  of  the  aims  and  objects  with 
which  its  founders  set  out.  The  formula,  "Better  farming,  better 
business,  better  living,"  has  ceased  to  be  a  formula  only  and  has 
become  so  far  as  its  first  two  branches  are  concerned  an  accom- 
plished fact.  The  Department  of  Agriculture  is  the  child  of  the 
co-operative  movement,  and  it  is  at  least  as  well  equipped  and 
circumstanced  as  an  official  body  could  be  for  the  teaching  of 
"Better  Farming."  Undoubtedly  whatever  may  be  the  defects  of 
its  present  methods,  or  the  mistakes  made  in  the  past,  its  exist- 
ence has  enormously  raised  the  standard  of  farming  in  Ireland, 
and  in  the  near  future  it  may  be  expected  to  do  far  more  in  this 
direction.  As  regards  "Better  Business,"  the  organizers  of  the 
I.A.O.S.  have  never  let  the  grass  grow  under  their  feet.  There 
are  sufficient  co-operative  societies  in  Ireland  at  present  to  meet 
the  needs  of  the  whole  farming  population  if  all  were  working  in 
full  efficiency.  The  success  which  has  attended  the  efforts  of  the 
majority  of  them  has  proved  to  the  most  sceptical  that  the  co- 
operative method  does  really  represent  "Better  Business."  There 
is  no  excuse  now  for  any  Irish  farmer  to  be  ignorant  of  the  fact 
that  he  can  improve  his  position  by  co-operation,  nor  is  there 
any  reason  why,  if  he  can  find  a  few  like-minded  neighbors,  his 
desire  to  do  this  should  remain  many  weeks  unsatisfied. 

Here  is  a  substantial  achievement  and  one  of  which  our  leaders 
may  be  proud.  But  there  are  always  fresh  worlds  to  conquer,  and 
when  we  come  to  the  question  of  "Better  Living,"  it  is  not  quite 
so  easy  to  claim  a  triumph.  It  is  true  that  the  standard  of  Irish 
life  has  enormously  improved  of  recent  years  and  is  still  improv- 
ing, and  some  part  of  this  improvement  is  no  doubt  due  directly 
or  indirectly  to  the  increased  prosperity  and  the  higher  standard 
of  education  brought  about  by  co-operative  societies.  But  the 
improvement  is  largely  of  a  material  nature.  We  look  almost  in 
vain  for  any  educational  advance  throughout  the  country  dis- 
tricts, or  for  any  greatly  increased  appreciation  of  the  respon- 


288        RURAL  RECONSTRUCTION  IN  IRELAND 

sibilities  of  citizenship.  And  these  are  the  foundation  of  a  real 
better  living. 

The  question  then  for  the  I.A.O.S.  is  whether  it  will  continue 
its  material  advance  and  do  as  much  educational  work  in  addition 
as  time  and  funds  allow — which  means  an  absolute  minimum— 
or  whether  it  will  boldly  claim  that  the  time  has  come  merely 
to  supervise  and  represent  the  existing  societies  and  to  devote 
the  bulk  of  new  energies  and  new  funds  to  a  real  educational 
campaign.  We  believe  that  the  latter  point  of  view  is  rapidly 
gaining  ground,  and  that  the  next  effort  of  the  I.A.O.S.  must  not 
be  to  organize  new  co-operative  societies,  but  to  teach  true  co- 
operation to  the  existing  ones.  This  is  a  task  in  which  the  Govern- 
ment, if  it  has  learned  any  lesson  during  the  war,  ought  surely 
to  be  willing  to  assist  to  the  full — by  so  doing  it  will  lighten  for 
itself  one  of  the  greatest  burdens  it  has  to  take  up,  the  burden 
of  the  real  popular  education. 

The  method  by  which  the  I.A.O.S.  will  carry  out  such  work 
presents  a  considerable  difficulty.  The  existing  staff  are  fully 
employed  if  not  overemployed  in  meeting  the  technical  demands 
of  the  existing  societies,  and  as  the  business  of  these  societies 
expands  the  work  of  the  organizers  must  continually  increase. 
In  these  circumstances  it  is  impossible  to  expect  them  to  devote 
time  to  a  form  of  work  which  must  necessarily  be  slow  and 
laborious,  and  which  will  at  first  at  least  probably  be  met  with 
indifference  if  not  with  scepticism.  At  the  same  time  their  exist- 
ing work  would  be  greatly  lightened  if  such  a  campaign  met  with 
any  marked  success.  The  principles  brilliantly  advocated  by  the 
leaders  of  the  movement,  efficiently  and  energetically  put  into 
practice  by  the  organizers,  have  still  not  penetrated  into  the 
minds  of  more  than  a  small  percentage  of  the  members  of  co- 
operative societies;  still  less  have  been  appreciated  by  the  public 
at  large,  whether  friendly  or  hostile.  In  many  countries  such  a 
difficulty  might  be  overcome  by  paper  and  ink,  but  not  in  Ireland. 
Reading  is  at  a  decided  discount  amongst  most  of  the  people 


FUTURE  DEVELOPMENT  OF  MOVEMENT       289 

whom  the  I.A.O.S.  hopes  to  reach,  and  even  where  they  do  read 
this  form  of  propaganda  has  comparatively  little  effect.  It  is  true 
that  the  Irish  Homestead  has  inspired,  and  continues  to  inspire, 
the  best  co-operators  in  Ireland,  but  these  are  the  men  who  were 
open  to  inspiration  from  the  beginning;  "the  deaf  adder  stoppeth 
her  ears,"  and  in  too  many  places  the  Homestead  goes  unopened 
to  oblivion. 

Ireland  is,  in  fact,  pre-eminently  a  country  where  leadership, 
personal  affection  and  personal  example  count  for  almost  every- 
thing. In  the  early  days  of  the  movement  this  personal  example 
was  ever  before  the  eyes  of  the  pioneer  co-operators.  But  in  these 
times  control  is  more  remote,  everything  is  on  a  larger  scale,  and 
the  personal  element  must  largely  decline.  Nothing  is  more  re- 
markable than  the  stimulus  which  is  given  to  true  co-operation 
in  any  district  when  a  leader  of  the  movement,  recognized  and 
trusted,  is  able  to  visit  and  get  into  close  touch  with  the  local 
co-operators.  But  such  visits  must  necessarily  be  few  and  far 
between.  The  solution  then  would  seem  to  be  that  the  I.A.O.S. 
must  add  to  its  staff  educational  agents  who  will  be  able  to  devote 
their  whole  time  to  this  personal  work.  Two  things  are  lacking — 
the  money  and  the  men.  The  first  one  feels  can  be  but  a  temporary 
difficulty.  Work  as  valuable  as  this  is  never  permanently  starved 
for  lack  of  funds.  But  the  question  of  men  to  fill  these  positions 
is  one  of  the  most  difficult.  We  have  already  described  the  tasks 
which  fall  to  the  lot  of  an  organizer,  and  the  qualifications  which 
he  must  possess.  They  are  hard  to  find,  and  the  handful  of  picked 
men  whom  Mr.  Anderson's  genius  as  a  staff  leader  has  kept 
together  will  not  be  easily  replaced.  The  educational  agent  will 
need  to  possess  perhaps  more  qualifications — not  than  the  men 
who  did  the  pioneer  work,  but  than  those  who  now  take  up  organ- 
izing when  the  business  practice  has  been  more  or  less  standard- 
ized. They  will  have  to  blaze  their  own  trail,  and  they  will  have 
to  have  the  patience  and  the  optimism  to  wait  perhaps  for  years 


2QO       RURAL  RECONSTRUCTION  IN  IRELAND 

until  their  personal  position  is  sufficiently  established  to  give 
their  words  effect  and  to  make  their  teaching  acceptable. 

The  question  is  whether  men  will  be  found  both  able  and  willing 
to  undertake  this  work.  That,  in  its  turn,  is  part  of  a  larger  ques- 
tion on  the  answer  to  which  the  future  of  Ireland  greatly  de- 
pends— the  question  whether  the  young  men  of  the  country  are 
prepared  to  work  in  it,  to  love  it,  and  to  live  for  it.  Old  feuds 
and  old  defeats,  a  present  restriction  of  opportunity  and  of  pay- 
ment, have  laid  Ireland  barren  in  this  respect.  With  the  rise  of 
new  parties,  new  ideas  on  economics,  new  forms  perhaps  of 
government,  the  country  stands  at  the  cross-roads,  waiting  for 
leadership.  Now  is  the  time  for  her  young  men  to  determine 
whether  or  no  they  will  play  their  part  in  this  leadership,  or 
whether  they  will  still  go  out  over  the  world  as  adventurers.  There 
are  signs,  for  which  every  patriotic  Irishman  must  be  profoundly 
thankful,  that  they  will  choose  the  former  course.  If  they  do  so 
the  co-operative  movement  must  of  necessity  benefit. 

We  have  not  dwelt  on  the  side  of  the  movement  which  appeals 
to  the  patriotic  nature  of  Irishmen,  because  we  believe  that  a 
plain  narrative  of  the  facts  is  the  most  convincing  plea.  Yet  we 
are  assured  that  in  some  such  constructive  movement  as  this  lies 
the  ultimate  hope  of  sanity,  unity  and  peace,  and  that  when  Irish- 
men appreciate  this  fact,  as  they  are  now  beginning  to  do,  they 
will  rally  to  the  call  and  will  bring  us  with  wondrous  speed  well 
upon  the  road  to  the  Co-operative  Commonwealth.  It  behooves  us, 
therefore,  to  be  prepared,  that  all  may  be  ready  for  the  great 
advance,  and  that  we  may  not  at  the  end  be  found  wanting 
through  ignorance  or  haste. 


STATISTICAL  APPENDICES 

PAGE 

I.  CREAMERIES 292 

II.  AGRICULTURAL  SOCIETIES         ...  295 

III.  CREDIT  SOCIETIES 296 

IV.  IA.W.S 298 

V.  POSITION  IN  1915 299 

VI.  DEVELOPMENT 300 

VII.  EXPORTS  301 


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APPENDIX  I 


293 


TABLE  II.  SUMMARY  OF  PROGRESS  FROM  1894  TO  1915 


Year 

Number 

Members 

Paid-up 
share  capital 

Loan  capital 

Turnover 

£ 

£ 

£ 

1894 

30 

1641 

15468 

6061 

151852 

1899 

171 

26577 

74223 

46262 

728000 

1904 

217 

42432 

112296 

112070 

1089620 

1909 

301 

44213 

138254 

111365 

1841400 

1914 

350 

47086 

149755 

133210 

2731628 

1915 

344 

45385 

154574 

121676 

3499264 

TABLE  III.  POSITION  IN  1915 


Province 

No.  of 
socie- 
ties 

No.  of 
share- 
holders on 
Dec.  31, 
1915 

Amount 
of  share 
capital 
paid  up 

Loan 

capital 
(including 
bank 
overdraft) 

Turnover 

Butter 

Other 
sales 

Cream 
and 
milk 

Ulster  

143 
144 
31 
26 

21161 
9671 
3958 
10595 

£ 

61858 
55506 
16835 
20375 

£ 
15715 
86576 
16360 
3025 

£ 

1064964 
1597222 
307173 
198327 

£ 
52971 
114960 
76178 
40717 

^     1 

14011 

31729 
989 
23 

For  continuation  of 
table  see  below 

Mtmster  
Leinster  
Connaught  . 

344 

45385 

154574 

121676 

3167686 

284826 

46752 

Net 
profit 

Loss 

Reserve 
fund 

Gallons  of 
milk 
received 

Lb.  of 

butter 
made 

Affiliation 
fees 

Subscriptions 

£ 

25505 
25347 
6676 
6256 

£ 

92 
97 

35 

£ 

88299 
97537 
30200 
29371 

25052589 
50837344 
9651087 
7199478 

9808977 
20769966 
4041514 
2986482 

£     s.  d. 
268    6    6 
453  17    0 
135     5    0 
55    0    0 

£      s.     d. 
540      5      11 
452    10        8 
160    10        5 
48    12        6 

63784 

224 

245407 

92740498 

37606939 

912    8    6 

1201     19        6 

294  APPENDIX  I 

TABLE  IV.  DEVELOPMENT  OF  THE  IRISH  CO-OPERATIVE 
AGENCY  SOCIETY,  LTD. 

Year  Turnover 

1893 £  45,574 

1898 ^133,010 

1903 .£186,103 

1908 ^160,573 

1913 ^"163,813 

1916 ,£219,179 

1917 ^322,532  (to  Augus 


APPENDIX  II 

THE  AGRICULTURAL  SOCIETIES 
TABLE  I.  SUMMARY  OF  PROGRESS 


Paid-up 

Number 

Members 

share 
capital 

L/Oail 

capital 

Turnover 

£ 

£ 

£ 

1896 

38 

3000 

1639 

1124 

39741 

1901 

112 

11695 

3053 

11285 

71704 

1906 

159 

13063 

5553 

29812 

72175 

1911 

171 

18271 

6836 

40672 

129199 

1915 

219 

23450 

31734 

52187 

310341 

TABLE  II.  POSITION  IN  1915 


Province 

No.  of 

societies 

Number  of 
shareholders 
on  Dec.  31, 
1915 

Amount  of 
share  capital 
paid  up 

Loan  capital 
(including 
bank  overdraft) 

Ulster  

51 
41 
53 
74 

6571 
3531 
4632 
8716 

£ 

22734 
1473 
5611 
1916 

*          1 

14527 

6552 
18698 
12410 

For  continuation  of 
table  see  below 

Minister  

Leinster  

Connaught  

219 

23450 

31734 

52187 

Total 

sales 

Net 
profit 

Loss 

Reserve 
fund 

Affiliation 
fees 

Subscriptions 

£ 

£ 

£ 

£ 

£       s.       d. 

£       s.      d. 

158038 

5420 

162 

3588 

62        5        0 

24      12        0 

33595 

1149 

89 

4161 

15      15        6 

16        5        4 

83004 

2263 

72 

8200 

44        2        0 

33      12        0 

35704 

1014 

74 

5634 

35      12        6 

49        3        0 

310341 

9846 

397 

21583 

157      15        0 

123      12        4 

295 


X 

HH 

Q 
W 


w 
W 

H 

3 

U 
O 
in 


Q 
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U 

W 
W 
H 


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§ 

PH 


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PQ 
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00   ON   ON 
rH    rH    rH 

rH 
ON 

rH 

rH 
ON 

rH 

296 


APPENDIX  III 


297 


I 

CO 

O 


PQ 


No.  of  loans 
granted 

M.opq  aas  aiqe} 
jo  uopBtiupuoo  jo.ii 

Subscriptions 

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t*.  »O  O  CM 

CM 

CO 

rH 

rH 

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Affiliation 
fees 

rg*  O  O  VO  O 

VO 
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Total  capital 

ri  CM  00  CM  O 

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rH 

CM 
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Reserve 
fund 

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Deposits 

TJ  O  ON  O  CM 

CO         rH  rH 
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rH         rH 

ON 

CO 

CM 

CO 
rH 

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ON  CM  vO  rH 

73  ON  t»  CM  t*» 

rH  rH 

t  -  rH  O  00  00 
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VO 
VO 

Loan  capital 

rg  CM  00  CO  CO 

•  t^  rH  Tl-  rH 

CO  rH 

CM  CM  t^  O 
^-  Tf  rH  O 
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CM 

O 
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rH 

Net  profit 
for  year 

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rH  ON  t^  00 
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CM 
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Agricultural  credit 
societies 

M 

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ID  S  J  o 

Loans 
outstanding 

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societi 

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298 

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299 


APPENDIX  VI 
DEVELOPMENT  OF  THE  MOVEMENT 


Year 

Number  of  societies 

Butter 
sales 

Banks. 
Total 
loans 
granted 

General 
Turnover 

Total 
Turnover 

1889 

1  

£ 

4363 

1 

£ 

£ 

4363 

1890 

1  

8500 



8500 

1891 

17  

50382 



50382 

1892 

25  

98969 



98969 

1893 

30  

140780 



140780 

1894 

33  

151852 

151852 

1895 

76  

184947 

. 

184947 

1896 

104  (Includes  Agency 
Society)  

377695 

388 

57822 

435905 

1897 
1898 

148  (No  figures  for 
Agency  Society) 
243  

322344 
401771 

475 
3306 

76134 
270346 

398953 
675423 

1899 

424  

572963 

5550 

331874 

910387 

1900 

477  

703826 

7270 

327781 

1038877 

1901 

564  

809144 

10357 

363079 

1182580 

1902 

706  

885892 

16480 

340175 

1242547 

1903 

840  

964066 

20435 

406546 

1391047 

1904 

778  

1089620 

31742 

410958 

1532320 

1905 
1906 
1907 
1908 

835  (No  figures  for 
Agency  Society) 
873  (No  figures  for 
Agency  Society) 
913  (No  figures  for 
Agency  Society) 
881  

1195486 
1457040 

1574083 
1666596 

43641 
50264 

53112 

56004 

238411 
307145 

390428 
529780 

1477538 
1814449 

2017623 
2252380 

1909 

835  

1757969 

57640 

578860 

2394469 

1910 

880  

1903334 

55855 

630370 

2589559 

1911 

934  

1908314 

56055 

702114 

2666483 

1912 

947  

2268902 

58244 

878043 

3205189 

1913 

985  

2323441 

55492 

954256 

3333189 

1914 

1023  

2502545 

52926 

1113487 

3668958 

1915 

991  

3167686 

48196 

1441154 

4657039 

28492510 

683432 

10348763 

39514708 

300 


APPENDIX  VII 


TABLE   SHOWING   THE   COMPARATIVE   VALUE   OF   AGRI- 
CULTURAL EXPORTS  FROM  IRELAND,  AS  AGAINST 
THE  LEADING  INDUSTRIES 


Eggs 

Stout 

Year 

Quantity 

Value 

Quantity 

Value 

Gt.  hdrds. 

£ 

Hhds. 

£ 

1904 

5470260 

2188104 

514557 

1646582 

1906 

6417435 

2727410 

571395 

1828464 

1909 

6362714 

2863221 

625784 

1653113 

1911 

6488776 

2940227 

729298 

1926562 

1914 

6824612 

3383870 

889696 

2446664 

Cattle 

Linen 

Year 

Quantity 

Value 

Quantity 

Value 

No. 

£ 

Cwts. 

£ 

1904 

710229 

8985302 

1151709 

5597983 

1906 

720744 

8869230 

1281592 

10456713 

1909 

785784 

10425361 

1409623 

13230129 

1911 

669049 

9433993  * 

1328222 

14214743 

1914 

910978 

14173001 

1382693 

15833456 

Butter 

Ships 

Year 

Quantity 

Value 

Quantity 

Value 

Cwts. 

£ 

Tons 

£ 

1904 

687100 

3195015 

76114 

1500000 

1906 

715344 

3576720 

148716 

2900000 

1909 

719625 

3625111 

120468 

2175000 

1911 

688362 

3671264 

183390 

4450000 

1914 

855608 

4641673 

244367 

6703250  f 

*  Loss  caused  by  foot-and-mouth  disease, 
t  Inflation  due  to  outbreak  of  war. 

301 


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