“The next step was to organize co-operative creameries, the farmers contributing the capital and sharing the returns, as in the United States. They deliver their milk at the creameries every day and receive credit tickets for it, which are settled once a month. This has proven to be a great economy over the old plan, where each farmer made his own butter at home, because it was badly made as a rule, brought a low price, and kept down the reputation of the dairy industry in Ireland. We have now in operation three hundred and fifty co-operative creameries to which forty thousand farmers contribute. The butter is exported to England and Scotland by the managers under the supervision of a committee. The reputation of Irish butter has been restored. It commands twenty-two cents a pound, about the same as the Danish butter, whereas farm butter used to bring only fifteen or sixteen cents a pound, and it is difficult to sell it even at that price in these days in competition with the co-operative creameries.
“We have introduced the most modern methods of butter-making and machinery. Pasteurization is being generally adopted and our cooling machinery permits the ripening of cream much more accurately and the production of better butter with a lower per cent of moisture. The creameries are setting an excellent example in planting ornamental shrubs around the buildings and forest trees for shelter, while several have laid out attractive gardens. These external signs of care and taste make a favorable impression upon the public, and the creameries are being constantly visited by people from all parts of the country.
“Our next step was to organize societies among the farmers for the co-operative purchase of supplies of various kinds, for the purchase of seeds, manures, feeding stuffs, machinery, implements, carts, harness, and everything a farmer needs but his live stock. We have one central agency at Dublin acting for about two hundred local societies in different parts of Ireland, representing about seventeen thousand families, who buy everything they want in that way at much lower prices than are charged by the local dealers. They are always sure of getting wholesale prices, the best quality of articles, and there is no possibility of being swindled. Every buyer gets what he orders, which is very important, particularly if it concerns seeds. A farmer who wants a machine or a lot of seeds or a new kind of potatoes, or a cart, or anything else, fills up a blank prepared for that purpose, posts it to the secretary of the society, and the latter orders the article from the central agency, to be paid for upon shipment in cash. This co-operative movement has been a tremendous success and is entering directly into the lives of the people.
“The next step,” continued Mr. Anderson, “was to organize co-operative credit societies from which farmers who are members may borrow money at low rates and keep out of the hands of the ‘gombeen men’—the Celtic word for usurer—who bleed their clients in a merciless manner. The loans are made for productive purposes only—to buy better machinery, more cattle, sheep, swine, and horses, seeds and manures, and other things of tangible value. We do not loan money to pay debts or fines, or to get wild boys out of trouble, or to pay blackmail, or to provide dowries for marriageable daughters. All these things are prohibited, and the managers look to it that not a penny of the society’s money is invested in any speculative enterprise. There are 270 of these Agricultural Co-operative Credit Societies in Ireland under the supervision of our organization with about 20,100 members, and they handle an average of $300,000 in loans averaging not more than $25, which amount shows that they are serving the purpose for which they were intended—to help the small farmer to improve his condition.
“It is quite remarkable,” said Mr. Anderson, “that none of these societies has ever lost a penny. They are managed by committees appointed by the members, who borrow their capital from joint stock banks upon the individual and joint indorsement of the board—each individual being responsible. They get the money for four per cent and loan it for five or six per cent, thus leaving a margin which pays the expenses and leaves a surplus which is carried to a reserve that may also be lent out. These societies also receive deposits from their members and other people in the district and pay three per cent interest, the same as the savings banks. They sometimes obtain loans of £50 to £100 from the Department of Agriculture or the Congested Districts Board at three per cent, which they loan to their members in small amounts at from five to six per cent interest. Last year they got about $60,000 from those two sources.
“The great advantage of these credit societies, in addition to keeping their members out of the clutches of the gombeen men, is to teach them the proper use of credit, the difference between borrowing to make and borrowing to spend, to promote thrift by giving a fair interest upon deposits, to encourage sobriety and industry and to teach a sense of responsibility and the value of reputation, because a man’s character is the sole qualification to membership, and everybody wants to get in. To be admitted to membership is an indorsement that is very highly regarded, and when a man is in his neighbors look after him.
“There are various other co-operative societies,” continued Mr. Anderson. “Last year we organized thirty-two new co-operative credit societies, twenty-two co-operative purchasing societies, twelve co-operative creameries, five flax societies to encourage the cultivation and handling of flax, and six co-operative bacon-curing factories, where farmers can send their hogs to be slaughtered and cured in a proper manner, which enables them to get a quick sale and a higher price for their pork. We also organized a large number of co-operative poultry societies to promote the raising of hens and chickens, the shipment and sale of eggs and poultry, so that the farmers can get better prices, have reliable selling agencies, lower freight rates, and sure collections. Eggs are sold here by weight instead of by the dozen, so that people who raise large eggs have the advantage. The eggs are all tested, graded, and packed according to the continental system, which we prefer to the cardboard arrangements which you use in the United States. These co-operative poultry societies are improving the breeds of hens, are teaching the members how to raise poultry, protect it from diseases, and make the best use of the feed. This is a very important industry, and we have brought it up so that now the average revenue from twenty hens is equal to that from one cow.
“The farmers’ wives are also taught how to raise bees, although for the last few years there has been no money in them. We have had the worst years on record for honey.
“The latest attempt of the Irish Agricultural Organization Society is to introduce co-operation among the small farmers who have recently come into the ownership of their lands to assist each other in building more comfortable homes for themselves and better buildings for their cattle and the storage of their crops. This is in the line of self-help and mutual aid among neighbors and furnishes employment for many days during the winter season which otherwise would be spent in idleness. The most economical building material we have here now is cement blocks, which are easily made with a little instruction, and we are sending around instructors to show the farmers how to utilize their spare time in the winter in making a sufficient number of blocks of this artificial stone to build the walls of a house in the spring. The neighbors can then get together and help each other put them in place under the direction of the instructor of the society, just as your pioneers in America used to help each other put up their log cabins. There is a universal desire and ambition on the part of the two hundred and fifty thousand farmers who have recently become the owners of their places under the Land Act of 1903 to improve their dwellings, and the Irish Agricultural Organization Society is doing a great deal to encourage them in this way.”