Page 151 - The_story_of_the_C._W._S._The_jubilee_history_of_the_cooperative_wholesale_society,_limited._1863-1913_(IA_storyofcwsjubill00redf) (1)_Neat

Caution and Suspicion.
with the rise of the modern socialist movement.
Concerning the
immediate political issues of the time, those are faint echoes of
Bradlaugh, and Fenianism and Egyptian wars which float to us
through the atmosphere of the co-operative records.
The trade recovery of 1880 had an immediate effect upon
C.W.S. returns. For the first quarter of that year the Committee
reported an increase of 26 per cent, which up to that time was
" the largest increase in business that has ever taken place in any
quarter of the Society's existence." The increase over the whole
year was httle less, being 22 per cent. This brought the annual
sales up to three and a third millions; but the confidence of many
co-operators did not show an equal elasticity. The agitation
revived for separating the C.W.S. Bank from the federation.
Previously it had been urged that the trading departments
endangered the bank. Now it was said that the bank might ruin
the trading departments. The separatist movement invaded the
Quarterly Meetings, and a committee of five (Messrs. Crabtree,
Mitchell, Swann, Tutt, and Rule) was appointed thereat to
investigate and advise. The report, v\'hich was in favour of putting
the bank under the control of a special committee separately elected
and making other changes, was referred by the Society to the C.W.S.
General Committee on October 7th, 1882, and it ended in certain
internal financial adjustments and the enlargement of the general
governing body.
The delegates were wiUing to beheve in the ability of their
executive to control both trading and banking, yet were not inclined
to overmuch faith. By 1882 the C.W.S. Bank had accumulated a
large surplus credit balance with other bankers. In consequence
ol the low interest on this floating capital, the profits of the C.W.S.
Bank were reduced. The Committee, therefore, asked for power
to reinvest £100,000 in Government or corporation stock or other
" approved securities." The questi'^n was adjourned until the
delegates at last said "No." In 1884 the sum thus lent to the
competitive world for next to nothing had reached £200,000. This
mistaken policy, of course, was ultimately reversed.
In minor matters the members of the federation were equally
distrustful. The Society's accounts were keenly criticised during
all the three or four years following. The Lancashire and York-
shire Productive Society, which made flannels at Littleboro', had
gone into hquidation, and J. T. W. MitcheU had agreed to become
liquidator. In this capacity he obtained overdrafts from the
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