Page 100 - The_story_of_the_C._W._S._The_jubilee_history_of_the_cooperative_wholesale_society,_limited._1863-1913_(IA_storyofcwsjubill00redf) (1)_Neat

The Story of the CW.S.
With the consoHdated and amended Act of 1876 all question of a
proscription of C.W.S. banking ceased, and the " Loan and Deposit
Department " came out of hiding. The Committee announced that
they were now enabled to assume the name of bankers, and societies
previously timorous might now, through their federation, freely
become their owti bankers. The business, which in 1874 had already
assumed in the eyes of Congress " a truly important character," now
rapidly increased. A branch was established under the Newcastle
Committee, and even the memory of the Industrial Bank could not
prevent it from obtaining a fair amount of business. Altogether the
turnover for 1876 only just fell short of ten milhons. Profits to the
extent of about three thousand five hundred pounds were divided
among the society-customers. Appearing as 25 per cent upon
interest, or commission and interest, the rate seems huge against the
present 1 per cent. But the dividend is now declared, of course., on
the daily balances. Another and an important detail in which
early practices differed from the present day was the payiag of a less
dividend upon debit than credit balances, although it is the greater
interest upon money lent which provides a banker's profit. Thrift
being so essentially a co-operative virtue, evidently it was not
considered right to encourage debtors !

A point has been reached at last where this chapter might very
well end. But no ! Under a new form another movement toward
separation was begun, and another battle remains to be described.
While the C.W.S. department had been criticised continually
" unsafe,"
because the trading operations of the Wholesale rendered it
no whisper had been heard against the Industrial Bank. There was
an irony in this which might have been appreciated, but apparently
it was lost. Instead of the failiire silencing the critics it inspired
them anew. The Industrial, it was now pointed out, had failed
because of being " linked " with the Ouseburn Works. Equally the
Wholesale Bank was linked with the C.W.S. trading departments.
Therefore, would it not fail also ? At the Leicester Congress of 1878
Mr. Greening trembled for its future. But (folloAving a paper by
]\Ir. Hughes which had recommended taking advantage of the
amended law to convert the C.W.S. Bank into a separate society) he
contented himseK with moving for a committee to consult with the
C.W.S. Committee concerning the supposed danger. And a proposal
that the rules of the C.W.S. should provide for a banking committee
separately elected shortly afterwards was carried into the C.W.S.
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