The declaration of toleration gave free scope to the workingmen to form their syndical chambers. Some syndicats had been openly formed before. In 1867, the shoemakers had formed a society—the first to bear the name of syndicat—which had openly declared that it would support members on strike and would try to defend and to raise wages. But only after the declaration of the government in 1868 did these societies begin to increase in numbers.

While organizing for resistance, the workingmen during this period, however, placed their main hopes in co-operation; the co-operative society of production was to them the only means of solving the labor question. As one of the delegates to the Workingmen's Commission of 1867 put it: “Salvation is in association” (Le salut c'est l'association).[30] The main function of the syndical chamber was to promote the organization of co-operative societies.

The revival of enthusiasm for co-operative societies began in 1863. Men of different political and economic views helped the movement. It found supporters in liberal economists, like M. Say and M. Walras; it was seconded by Proudhon and his followers, while a number of communists took an active part in it. Profiting by the experience of 1848-50, the workingmen now adopted a new plan. The co-operative society of production was to be the crowning part of the work, resting upon a foundation of several other organizations. First the members of one and the same trade were to form a syndical chamber of their trade. The syndical chamber was to encourage the creation of a “society of credit and savings” which should have for its aim the collection of funds by regular dues paid by the members. Such “societies of credit and savings” began to develop after 1860, and they were considered very important; not only because they provided the funds, but also and mainly because they helped the members to become acquainted with one another and to eliminate the inefficient. With a society of credit in existence, it was deemed necessary to create a co-operative of consumption. The productive co-operative society was to complete this series of organizations which, supporting one another, were to give stability to the entire structure.

The plan was seldom carried out in full. Co-operatives of production were formed without any such elaborate preparation as outlined above. However, many “societies of credit and saving” were formed. In 1863 there were 200 of them in Paris; and in September, 1863, a central bank, La Société du Credit au Travail was organized. Similar central banks were formed in Lyons, Marseilles, Lille and other large cities.

In Paris the Credit au Travail became the center of the co-operative movement between 1863 and 1868. It subsidized successively L'Association (Nov., 1864-July, 1866) and La Co-opération (Sept., 1866-Feb., 1867)—magazines devoted to the spread of co-operative ideas. It gave advice and information for forming co-operatives. Most of the co-operative enterprises of the period were planned and first elaborated in the councils of this society. Finally it furnished the co-operatives with credit. Its business done in 1866 amounted to 10½ million francs.[31]

In 1868 the co-operative movement, after several years of development, suffered a terrible blow. On November 2nd, the Credit au Travail became bankrupt; it had immobilized its capital, and had given out loans for too long periods, while some of the other loans were not reimbursed. The bank had to suspend payment and was closed. The disaster for the co-operative movement was complete. The Credit au Travail seemed to incarnate the co-operative movement; “and its failure made many think that the co-operative institution had no future”.[32]

The failure of the co-operative movement turned the efforts of the workingmen into other channels. They now began to join the “International Association of Workingmen” in increased numbers and to change their ideas and methods.

The “International”, as is well known, was formed in 1864 by French and English workingmen. The French section, during the first years of its existence, was composed mainly of the followers of Proudhon, known as mutuellistes. The program of the mutuellistes was a peaceful change in social relations by which the idea of justice—conceived as reciprocity or mutuality of services—would be realized. The means advocated were education and the organization of mutual aid societies, of mutual insurance companies, of syndicats, of co-operative societies and the like. Much importance was attached to the organization of mutual credit societies and of popular banks. It was hoped that with the help of cheap credit the means of production would be put at the disposal of all and that co-operative societies of production could then be organized in large numbers. The Mutuellistes emphasized the idea that the social emancipation of the workingmen must be the work of the workingmen themselves. They were opposed to state intervention. Their ideal was a decentralized economic society based upon a new principle of right—the principle of mutuality—which was “the idea of the working-class”.[33] Their spokesman and master was Proudhon who formulated the ideas of mutuellisme in his work, De la Capacité Politique des Classes Ouvrières.

Between 1864 and 1868, the “International” met with little success in France. The largest number of adherents obtained by it during this period was from five to eight hundred. Persecuted by the government after 1867, it was practically dead in France in 1868.[34] But in 1869 it reappeared with renewed strength under the leadership of men of collectivist and communist ideas, which were partly a revival and survival of the ideas of 1848, partly a new development in socialist thought.

One current of communist ideas was represented by the Blanquists. Blanqui, a life-long conspirator and an ardent republican who had been the leader of the secret revolutionary societies under the Monarchy of July, took up his revolutionary activity again during the latter part of the Second Empire. A republican and revolutionary above everything else, he had, however, gradually come to formulate in a more precise way a communistic program, to be realized by his party when by a revolutionary upheaval it would be carried into power. The Blanquists denounced the “co-operators” and the “mutuellistes” and called upon the workingmen to organize into secret societies ready, at a favorable moment, to seize political power. Towards the end of the Second Empire, the Blanquists numbered about 2,500 members in Paris, mainly among the Republican youth.[35]