Page 140 - 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 C.W.S.

of the movement, rumours got abroad of shameful unfriendHness
towards productive societies. However, the serious trouble was
that more than two dozen businesses, more or less co-operative or
profit sharing, had obtained substantial overdrafts from the Society,
and few of the debtors could promptly reduce the loans when now
called upon. Under this stress the Society had to temporise with its
London bankers, and Mr. Mitchell journeyed to the capital to
arrange the carrying over of a £50,000 debit balance. It was of this
period that Mitchell spoke on June 18th, 1881, when he confided to
the delegates that " the Wholesale Society, at one period of its
history not very long ago, was in very great straits." The chairman
further told of £10,000 being needed to pay accounts, of nothing
more to be had from the bankers, and of an urgent personal
application for the amount being immediately met by the Rochdale
Pioneers' Society, Heckmondwike helping additionally. That the
C.W.S. was in real danger must not be supposed ; but it was certainly
and for tlie moment crippled in its proper work. Special instructions
were given to the C.W.S. buyers in all departments " for the present
to purchase only from hand to mouth," and " under no circumstances
to make large purchases without the consent of the General Com-
mittee." Retail societies desiring overdrafts to build new premises
and extend the regular store movement had to be told that " we have
ceased allowing overdrafts, but rather are calling them in."
This was in 1876-7, and with two or three more years of trouble
ahead it was fortunate for the stores federation that its constitution,
rules, and methods secured to it such great reserves of strength.
With retrenchment and a cautious attitude the situation quickly
became easier. We have seen that late in 1877 the Society was able
to relieve its drapery department to the extent of £4,700; and the
subsequent colliery and other losses, £32,000 of which was written
off in one quarter of 1881, were thorns in the flesh, but not daggers
in the body. And, as soon as the position improved, the first and most
legitimate functions of the C.W.S. and its bank were immediately
resumed. Thus the Leicester Society, whose application had been
declined in January, 1877, subsequently were allowed a £5,000
overdi'aft. In April of the same year this was increased to £10.000,
which enabled the Leicester co-operators confidently to face a
threatened run. An overdraft reaching to £5,500 was allowed to
at least one Northern society, while in the hard times of these years
a very considerable leniency became possible towards the societies
of the Newcastle district generally. Their overdue accounts with the
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