Page 96 - The_story_of_the_C._W._S._The_jubilee_history_of_the_cooperative_wholesale_society,_limited._1863-1913_(IA_storyofcwsjubill00redf) (1)_Neat

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The Story of the C.W.S.
During the Parliamentary session of 1871 a few more pages were
added to the Statute Book in favour of Industrial and Provident
Societies. The new legislation facilitated the buying and selling of
land, and also permitted the advancing of money to members by
societies on the security of real or personal property. This made the
need for a bank still more urgent. When the Co-operative Congress
of 1872 met during Easter, at Bolton, the Central Board reported
in favour of bringmg " all possible pressure " to bear on the
Wholesale Society, and to do this " rather than seek to establish a
separate institution." Nevertheless, the Congress resolution simply
asked the Central Board to appoint a special committee from its
members to arrive at " a speedy practical issue." Mr. Crabtree,
indeed, did not prophesy immediate action by the C.W.S. " The
Wholesale," he demurred, " was to be a great manufacturer of flour
and soap, and were asked to become the great farmers of the
country, and now they were asked to become great bankers. He
thought it was asking too much of the Wholesale."
Yet the Wholesale moved. On May 18th, 1872, the Committee
came before the Quarterly Meeting with a resolution which secured
full support:
That, as a means to commence and gradually develop a banking business,
authority be given to the Committee to receive loans from the members with-
drawable at call, and subject to 1 per cent below the minimum Bank of
England rate of interest, the same to be used in our own business, or lent out
on approved security.
And three months later the Committee could report to the Quarterly
Meeting of August 17th, 1872, that nearly £29,000 had already been
received in loans, while the advances amounted to £11,200. The
question of banking, indeed, had occupied the Committee during the
whole of the quarter. There had been deputations to London and
Newcastle. The London and County Bank (Hughes, Neale, and
others, with Mr. Wilkins, aiding the negotiations) had been appointed
agents ; and altogether the Committee expected to afford to societies
" safer, simpler, and more economical methods of transmitting
cash."
But more than this was demanded. Led by WiUiam Nuttall
and Dr. Rutherford, this same August meeting passed a resolution
" authorising " the extension of the C.W.S. banking business to
non-members, " whether joint-stock companies, corn mill societies,
or retail stores," and " authorising." also, the granting of current
accounts to the same parties. This, in aU essentials, meant banking,
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