Some Socialists were indiscreet enough to confess that they opposed providence, thrift, and temperance among the workers, as practised especially by the members of trade unions, co-operative societies, and friendly societies, because these are likely to elevate the masses and rob the Socialist leaders of supporters. We read, for instance: "The so-called thrift and temperance movements are essentially antagonistic to Socialism."[841] "The trade co-operator canonises the bourgeois virtues, but Socialist vices, of 'over-work' and 'thrift.'"[842] "Co-operation, though regarded by the individual trader as an enemy, does not necessarily enter into conflict with the capitalist at all. Indeed, so far as it transforms workmen into shareholders, it forms a bulwark for capitalism, the same as the creation of small landholders or any other class of small proprietors would do."[843] "Co-operation, as carried on in England, is an obstacle and a danger to the Socialist cause. Being capitalist concerns pure and simple, co-operative societies are subjected to the same influences as all other capitalistic ventures."[844] "The friendly societies are the least promising of any of the democratic movements from the political point of view. The doctrine of 'thrift' also has been preached very vigorously to them. There is at present little prospect of the friendly societies identifying themselves with the general political labour movement of the country."[845] The Anarchist Congress of 1869 at Marseilles stated very truly: "La coopération démoralise les ouvriers en faisant des bourgeois."[846]
Now let us take note of the "scientific" arguments with which British Socialists oppose providence, thrift, and sobriety among the workers.
"Under present circumstances, the more frugal, thrifty, and abstemious working people as a class become, the more cheaply they have to live, the more cheaply they have to sell their labour power to the capitalist class, wages being determined by the cost of subsistence."[847] "Temperance, thrift, industry only serve to make labour an easier or more valuable prey to capital. If they reduce the cost of living in any particular, they but reduce the cost of labour to the capitalist."[848] "If all the workers were very thrifty, sober, industrious, and abstemious they would be worse off in the matter of wages than they are now."[849] "The mere cheapening of the cost of living only tends to reduce wages, and thus cannot advantage the worker."[850] "If all workers were to become teetotalers and vegetarians, wages would inevitably fall to the wretched level, perchance, of Oriental countries like India and China, where thrift in every form is carried to incredible lengths."[851] "Is it not proved that the Hindoos and the Chinese, who are the most temperate and the most thrifty people in the world, are always the worst paid? And don't you see that if the Lancashire workers would live upon rice and water, the masters would soon have their wages down to rice and water point?"[852]
The foregoing arguments, which are based on the "Iron Law of Wages," of which a refutation has been given in Chapter IV.,[853] may sound plausible to the unthinking workman. They may infuriate him and therefore serve the ends of the Socialist agitator, but they are utterly false and dishonest, as all Socialist leaders know. Wages depend partly on the supply and demand for labour, partly on the productiveness of labour. In machineless countries, such as China and India, the average worker produces very little, and the supply of workers is unlimited. Hence their wages are low. If the Socialistic arguments were right, Chinese and Hindoos could double or treble their wages by becoming drunkards, and English navvies could earn 5l. a week by agreeing among themselves to drink champagne instead of beer. If the cost of subsistence determined the rate of wages, the wages for all workers in London ought to be approximately the same. In reality, however, we find that wages range in London from 3l. 10s. to 18s. per week. The most skilled workers receive the highest, the least skilled the lowest, wages. It is therefore evident that wages are determined by the cost of subsistence only in the case of the least skilled workers, provided an unlimited supply of such workers and unrestricted competition among them for work drive down their wages to the bare existence level.
Providence, thrift, and temperance are habitually attacked by Socialists not only on "scientific" but also on moral and philosophical grounds. For instance, Mr. Keir Hardie tells us: "As for thrift, much which passes for such at present is little different from soul-destroying parsimony. Men and women starve their years of healthy activity that they may have enough to keep alive an attenuated old age scarcely worth preserving."[854] In other words, he advises the workers to spend all they earn and to become paupers in their old age. A very influential Socialist writer says: "A man by starving his mind and his body is able to save money. He borrows books instead of buying them. He starves his emotional nature by neglecting to go to the theatre, because to go to the theatre costs money. He doesn't go to concerts because concerts cost money. He is a teetotaler, not so much because he wishes to keep his stomach clean and his head clear, but because his ideal men are teetotalers, grad-grinds, who mortify the flesh in order to save. And the money is saved with a bad intention. The aim is either to start independently in business, or else to secure shares in the undertaking paying the highest dividends compatible with security. The object of this man is to leave his class behind him, and to live upon labour rather than by it"[855]—According to this authority it would be immoral for the rural labourer to save in order to be able to till his own field and to live in his own cottage; it would be immoral for the artisan to endeavour to have a workshop and a house of his own; it would be immoral for the worker to put his savings into a savings-bank or a friendly society, or some limited company, and to live upon his savings during his old age. It would almost seem as if from the Socialist point of view the only moral way of obtaining property was by plundering the rich. "Waste all you earn and die in the workhouse" is at present their advice to the worker, and the worker who follows that advice and who lives from hand to mouth easily becomes a pauper. For him a short spell of unemployment means starvation and despair. This is evidently a state of affairs which Socialist agitators favour because it will increase their following.—Another prominent Socialist writer says: "Among the many quack remedies for poverty, the most venerable and the most illusive is thrift or saving. The habit of saving is always represented by the rich as the highest of social virtues; but it is one they are careful rarely to practise themselves"[856]—If the rich are so wasteful, how is it then that the national capital, held by the rich, as the Socialists tell us, has increased from 4,000,000,000l. to 12,000,000,000l. during the last sixty years, notwithstanding huge capital losses caused by suffering industries? The decay of agriculture alone has caused a capital loss which approximates 2,000,000,000l.
The great co-operative movement in England was created by the celebrated Rochdale Pioneers, the name given to the weavers of Rochdale who started it. On a rainy night in November 1843, twelve men met in the back room of a mean inn and commenced the co-operative movement by organising themselves as "The Rochdale Society of Equitable Pioneers." They agreed to pay twenty pence a week into a common fund, but only a few of these twelve men were able to pay their pence that evening. They began by buying a little tea and sugar at wholesale prices, which they sold to their members at little more than cost. In a year their number had grown to twenty-eight, and they had collected 28l., with which they rented a little store and stocked it with 15l. worth of flour. During the first year they made no profit. In its second year the society had seventy-four members, 181l. in funds, 710l. of business, and made 22l. profit, 2-1/2 per cent. of which was used as a fund for education.[857]
Gradually but constantly growing, this movement has branched out in every direction, and the result is that there are now in Great Britain 1,685 co-operative societies with 2,263,562 members. These co-operative societies are manufacturers, ship owners, bankers, brokers, factors, merchants, millers, printers, bookbinders, and shopkeepers of every kind on the largest scale. The rapidly growing assets of the various undertakings represent a value of about 50,000,000l., the combined nominal capital comes to 42,813,348l., and the yearly net profits amount to about 11,000,000l., or to more than 35 per cent. per annum on the subscribed capital. In 1905 the net profits amounted to 37.4 per cent., in 1906 to 36.4 per cent. on the share capital.
Capitalised at 4 per cent, the co-operative societies represent an investment value of about 300,000,000l., or about 100l. per co-operator. The societies maintain an army of 107,727 employees. Their progress during the last decade may be seen at a glance from the following figures:
| Total Trade of British Co-operative Societies. | |
| 1896 | £58,729,643 |
| 1901 | 88,394,304 |
| 1906 | 110,085,826[858] |
Already the income of the co-operative societies is twice as large as the interest paid on the whole of the deposits in the British savings-banks. There is no reason why the co-operative movement should not further grow and increase, and it is to be hoped that it will further extend in every direction to the benefit of the industrious and thrifty workers. There ought to be no propertyless workers in Great Britain.