even were the shopkeepers to sell at the same prices, which they cannot do for reasons to be explained, they would not be trusted to the same extent, as it is known that in co-operative societies, properly so called, no one has any interest in wrong-doing, and that if, by any accident, there be short weight or some omission, the person in fault can derive no benefit therefrom, but, on the contrary, runs serious risk of severe punishment; and no real grievance, as a rule, is left unredressed.

The credit system, however, still possesses some advantages, because it is outside the pale of the co-operative influence, and there are very many to whom it is a convenience, who receive their incomes at distant intervals-as, for instance, the family doctor, who sends in his bill but once a year. Formerly the civil servants were paid quarterly, and a large proportion of them were glad to have quarterly accounts, but the change which was made some years ago to monthly payments has enabled them to revolutionise the whole system of credit accounts.

Another reason why shopkeepers cannot hope to contend with co-operative societies is that their trading is so insignificant in comparison that they cannot hope to buy on anything like the same favourable terms. The operations of some of the leading co-operative stores are on so gigantic a scale, enabling them almost to command the markets, that the ordinary shopkeeper is left far behind in the race. For instance, one co-operative society last season bought up within one week twenty-six tons of crystallised fruits, such as apricots, cherries, greengages, &c.

It is notorious that the larger the buyer the better terms he can get, that manufacturers have a sliding scale of discounts increasing in proportion to the magnitude of the order, that this enables the larger co-operative stores to sell retail to their members at less, in many cases, than the ordinary wholesale prices to the shopkeepers, and that retail tradesmen have themselves been attracted to the stores to make purchases, through some friend, of goods to sell again. This requires ready money, with which, it is to be observed, the co-operatives with sufficient capital get extra discounts, while without ready money the shopkeepers are in the hands of factors

Although established in London, the influence of the co-operative stores is not confined thereto, as they do a very large country trade; and one of them at least-whose present rate of business is considerably over a million and a half per annum-supplies its members largely throughout the United Kingdom as well as abroad, its demands from India especially being continually on the increase.

Allusion has been made to co-operative societies bringing producers and manufacturers face to face with consumers, but one of these societies goes further than this, for it has itself become a manufacturer on an extensive and increasing scale. A very large number of working-men are employed on the premises in tailoring,

and over one hundred women constantly at shirt-making, receiving good and even liberal wages, in favourable contrast with those exposed in Hood's famous Song of the Shirt; and it must be some satisfaction to the wearers of these garments that, though they get them at reduced prices, that reduction has not been wrung from the misery of the poor workers.

It embarks, moreover, in mantle-making, perfumes, and in the manufacture of portmanteaus, dressing bags, purses, and other leather goods, tin-work, japanned ware, cabinets, &c. in fancy woods, also in printing and die-sinking. This may be deprecated by many, but the society has in fact been forced into it by the difficulty, and almost in some instances impossibility, of procuring really sound and good articles that could be confidently warranted to its members, owing to the system of scamping and concealing defects. The results have quite kept pace with the most sanguine expectations. The prices have been reduced, the members are satisfied, and the working men, many of them the best in their respective trades, are well content. As an illustration of this it may be related that a director conversing with one of them a few days ago inquired how he liked his employment, and received the reply Very much.' Why so?' he then asked. Because, sir, I have regular work. Before I came here I made bags which I sold to a factor. He would put on a large profit and sell them to a shopkeeper, and before they reached the regular customers my price was more than doubled. And then I often had two or three idle days at a time, as I could not sell my work. But now, owing to the small profit put on by the stores, I suppose there are a hundred bags sold where there used not to be ten; and I have regular employment and no idle time.' But how do you like the rule which prevents beer being taken into the workshops?' 'Well, sir, I didn't like it at first, but now I am used to it, and it has saved me a lot of money.'

The reduction in the cost of the necessaries of life has been principally dwelt upon, but it cannot be concealed that luxuries, and in fact everything in which the stores deal, from the most costly jewellery downwards, are similarly affected; but the argument still holds good that reduced prices create a greater consumption, and the consequent increased demand benefits the workers of all classes.

It will thus be seen that co-operative societies are likely to prove friends to the working man, however they may affect the traders; and another beneficial effect, a national one, must follow. By largely reducing the selling prices of these manufactures, they compete more favourably with those of foreign production, and tend, therefore, to keep the trade in our own hands.

The society which originated this co-operative movement, and to which all honour is due, is the Civil Service Supply Association; but the one more particularly referred to herein is the Army and Navy;'

and to show how it is appreciated by its members and supporters, the following statistics from its balance sheets will not be without interest to those who are unacquainted with them.

Its sales and miscellaneous revenue, progressively, have been as

Thus in seven years the sales have considerably exceeded five millions, and the saving to its members cannot be computed at much less than a million. The question, therefore, naturally arises, How does this immense saving affect the general welfare? The reply is, Most beneficially, as it is not lost to circulation but diverted simply into other channels, possibly amusements, charities, cab fares, &c., which it would not otherwise have reached. A 110 21 11

all It is hoped that the writer will not be considered hostile to traders, as nothing could be farther from his wish or thought. The co-operative movement was not originated by hostility, but was ushered into existence by the march of events; and if the injury which it has inflicted upon traders can be remedied or lightened by any measure which would not interfere with free trade, it would meet with his most cordial sympathy and support.

THE GOVERNMENT AND ITS CRITICS.

Ir we may credit the leading statesmen of the Opposition, this country has fallen into a state for which the modern world hardly affords a parallel. Since the days of Jeremiah the complaint was never so ceaselessly reiterated as among English Liberals during the past twelve months-The prophets prophesy falsely, and the priests bear rule by their means, and the people love to have it so.' In this last melancholy confession there is a sharp sting. a sharp sting. The people love to have it so!' It is in a gloomy and fretful spirit that most of these vaticinations close with the question, addressed to the English nation: "What will you do in the end thereof?' The reply is clearly not very encouraging. Mr. Gladstone himself, in the last number of this Review, speaks in doubtful tones. On the other hand, Sir William Harcourt, in his speech at Oxford on the 14th of January, has no misgivings. But Sir William has too much of the 'cocksureness' to which Lord Melbourne objected in Macaulay. His native confidence in himself, reinforced by his forensic habit of assuming his case to be unanswerable, may subserve private complacency' in those of his hearers who thoroughly agree with him, but probably there are few if any who trust the judgment of this slashing partisan enough to accept his estimate of the political situation without making large deductions. The assumption that an appeal to the constituencies would result in the condemnation of all that ministers have done during the past twelve months and in their summary ejection from office is scarcely established by pointing to the Liberal victory at Bristol. Something more is needed to prove that the opinion of the country has changed, or is changing, than the defeat of a Conservative candidate in a Liberal city with the aid of the Home Rule vote.

To the observer looking at the recent course of English politics from the outside, the verdict expressed in the recent Parliamentary divisions may seem conclusive. The policy of the Government was vindicated-not, indeed, in every detail, but in its general scope and intent-as completely during the December session as in the preceding July and August. But Sir William Harcourt is not to be deceived by such appearances. Some men, doubtless, are masters of the social magic which penetrates to the inner thought of their

fellows, and Sir William Harcourt was able to assure his constituents at Oxford that he never saw a minority so confident in the hour of defeat or a majority so downcast in victory.' If it were possible for Sir William Harcourt to be in error, it might be suggested that what he mistakes for confidence' is the levity of irresponsible persons, and that the depression over which he triumphs is the effect of grave and responsible cares. The Opposition, being for the most part without hope of any speedy return to office, and being destitute of any fixed scheme of foreign policy to guide them either in or out of place, may be excused for indulging in demonstrations of activity which have neither purpose nor result. The Ministry, and those who support the Ministry, while holding firmly to the conviction that it was necessary to do what has been done, have not recklessly abandoned vigilance. There is still cause for anxiety, and if ministers and ministerialists were not anxious it would do little credit to their patriotism. But it does not follow that they are downcast,' as Sir William Harcourt alleges, at the prospect of political disaster. Even if the electoral facts' of the last six months showed a much greater balance of gain for the Liberal party than that on which Sir William Harcourt exultingly dwells, the inference that at a general election a Liberal majority will be returned would not be irresistible. What ground is there for the contention that on the broad issues of foreign policy the country will transfer its confidence from the party at present in power to their opponents? In spite of Sir William Harcourt's testimony to the state of feeling in the House of Commonsmost valuable, of course, as a proof of the social popularity of the witness, who knows the secrets of both parties, but less conclusive as to the drift of facts than that of one unconcerned in the strife-the Conservatives are apparently quite willing to encounter their antagonists on the ground chosen by the latter. If the followers of Lord Beaconsfield were secretly disgusted with the course pursued by the Government, they would shift their position rather to the issues on which the constituencies decided in their favour five years ago. But there is no sign that the public interest in foreign affairs is abating, none that the nation has changed its mind about those affairs since the conclusion of the Treaty of Berlin. Mr. Gladstone and other leaders of the Opposition have bewailed the glamour which the ministerial policy threw over public opinion six months ago, and the complaint may be accepted as an admission of the fact, which was indeed sufficiently evident and notorious, that the Ministry was approved and sustained by the great majority of the English people. The illusion, if it were an illusion, would have been dissipated ere now. A strong and solid conviction can endure the strain of adversity and the tests of examination.

If we look at the reasons which prevailed with the mass of the nation when the conduct of the Government was repeatedly approved during the course of last year, we can judge whether it is likely VOL. V.-No. 24.

BB