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Reading #34 Co-op History Reading/Discussion Club August 26, 2012
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[When reading the history of our cooperatives we often see that the
Amalgamated Housing Cooperative can trace its roots to the experiment in
cooperative organization started in 1844 by the Rochdale Society of
Equitable Pioneers. The following article is the first part of an essay
looking back in history to trace how the Rochdale cooperative got started
and perhaps why a cooperative movement today of over one billion people
worldwide bases itself on this 168 year old experiment in cooperation. The
essay was written in 1994 for the 150th anniversary of the founding of the
Rochdale Cooperative.]
The Meaning of Rochdale
The Rochdale Pioneers and the Co-operative Principles
by Brett Fairbairn, 1994
Rochdale, England, is known by millions for one reason: a handful of
labourers established a co-operative there in 1844 known as the Rochdale
Society of Equitable Pioneers. That co-operative was adopted as the
inspiration and model for a movement that now includes nearly 700 million
people around the world. As this paper is being written, co-operators
around the world are preparing to celebrate the 150th anniversary of its
birth. But what did Rochdale mean? Why is it considered so important?
Symbols and Reality
Rochdale is part myth. There was also a concrete historical reality,
accessible to us through documents and first-hand accounts and modern
books that interpret those old sources. But entirely apart from the
historical reality, Rochdale is a living, active symbol that influences
understanding of co-operatives in countries around the world today. The
myth of Rochdale has to do with twenty-eight impoverished weavers who
started a shop in Toad Lane in 1844; a shop that became the first
successful co-operative in the world; a co-operative that defined the
principles for all later co-operatives to follow. Each of those three
contentions, by the way, is largely false: that Rochdale was opened by
starving weavers, that it was the worlds first successful co-operative,
that one need look only at its statutes to find the true co-operative
principles. But no matter, the myth has its own kind of truth, and such
myths and such truths are to be respected. This myth is a good and
constructive one and contains elements that are true by anyone's
definition. Rochdale is a historical reality, and it is an icon or totem
for the world cooperative movement, an object of belief and inspiration
for millions. What does it mean? The important thing to remember is that
the meaning of Rochdale is constructed by each generation to meet its own
needs.
The problems of 1844 in some ways resemble those in developing countries
and less developed communities today. The solutions in Rochdale look
something like the modern idea of socially sustainable development: in the
most general terms, Rochdale stands for development in the long-term
interests of people and communities' development controlled by the people
it affects. Rochdale is a vision of participation in social change. This
is a good reason to look closely at the meaning of Rochdale. But what one
finds may not be simple. . . .
Part One:
The Historical Reality of Rochdale
The labourers who organized the Rochdale Pioneers, 150 years ago, were
people suffering from the social dislocations of the industrial
revolution. They struggled to survive periodic unemployment, low pay,
unhealthy cities, and dangerous workplaces. They had no social benefits no
insurance or health care or pensions from their employers or from the
state. They were dependent on merchants who were sometimes unscrupulous,
who exploited the helplessness of the poor by selling at high prices, by
adulterating goods, or by trapping them with offers of credit. And the
Rochdale labourers faced these challenges in a time and place when they
had no vote, no democratically elected government to represent them, no
interventionist state to protect them. Their answer to daunting social
problems was a special kind of self-help: mutual self-help, in which they
would help themselves by helping each other. It was a small start to a
large international movement.
The Social and Political Context
Rochdale was a textile-based manufacturing town whose chief industry was
in decline due to the industrial revolution. For centuries Rochdale had
been a centre for the manufacture of flannel; but in the early decades of
the nineteenth century, handloom weavers faced competition from the power
loom and lost markets due to American tariff policies. Discontent in
Rochdale centered among the weavers. There was repeated labour unrest,
including violent strikes in 1808 and 1829. After the first of these
incidents, troops were stationed near Rochdale until 1846. The town was
also an important centre of working-class, radical politics. Workers from
Rochdale played important roles in the trade-union movement, in the
massive but unsuccessful campaign of Chartism to obtain the vote for
ordinary people, and in the Factory Act movements for regulation of
industry and protection of workers. In 1819 some thirteen thousand people
attended a reform meeting in Rochdale, where one of the speakers was Tom
Collier, uncle of the later Rochdale Pioneer John Collier. Famous
reform-oriented, liberal politicians were also associated with Rochdale:
John Bright was from there, and Richard Cobden was for a time Rochdale's
member of parliament.
Crucial to the later success of the Rochdale Pioneers was the fact that
Rochdale had for years been a centre of co-operative activity. The Rochale
Friendly Co-operative Society had been formed in 1830 by about sixty
flannel weavers. It had a retail store from 1833-35 at No.15 Toad Lane,
just down the street from the premises used after 1844 by the Pioneers.
Several later Pioneers were associated with this early venture: Charles
Howarth, James Standring, and John Aspden. In other words, even the
Rochdale Pioneers, whose success in retrospect seems almost magical, were
the result of decades of hard work, failures, and disappointments.
The Owenite movement was also strong in Rochdale and made a lasting
impression on many of the founders of the Pioneers. Owenism, named after
maverick industrialist and reformer Robert Owen, was a philosophy that lay
at the origins of socialism, trade unionism, social reform, and
co-operation, in a day when these ideas were not distinct from one
another. Perhaps Owens key social criticism of his age was that workers
were denied the full value of their labour, toiling in poverty for the
profit of others. Owen had no high opinion of the moral and cultural
values of the poor, but saw economic and educational improvement as
essential for creating a better population. In order to capture more of
the value of their labour, Owenite workers banded together to form
associations for mutual aid and education. They aimed to increase wages by
collective action and by starting their own worker-owned enterprises; they
aimed to raise the standard of practical education and by practical they
meant especially knowledge of politics and economics through libraries and
courses; and they aimed to extend workers purchasing power through
co-operative buying. Owenites were active in Rochdale in the 1830s, and in
1838 an Owenite branch was formed which took over a pub, The Weavers Arms,
and set it up as The New Social Institution, a centre of Owenite activity.
Owenite speakers gave lectures every week. One visitor noted that Rochdale
stood out in its Owenite zeal: Almost every night in the week is devoted
to the cultivation of the mental and moral faculties. Moreover, at the
time the Rochdale Pioneers were founded, the last great Owenite community
project at Queenwood was underway, and the struggles and debates related
to Queenwood probably energized the Rochdale Owenites in their efforts to
bring about the creation of a new co-operative association. Briefly, one
of the issues at Queenwood was the ability of the Owenites to pursue their
ideals regardless of Owen. The reaction of activists against Owens
meddling did not save Queenwood, but it energized a number of experiments
like Rochdale that Owen would not have sanctioned. The Owenite movement
had struggled to find its own dynamism independent of Owens grandiose and
poorly guided projects. Rochdale was one result.
But Owenites were identified as socialists a newly coined word and
persecuted. Their posters and building were vandalized. Perhaps because
the Owenites were controversial and marginalized, it was not the Owenite
movement as such that created Rochdale, but a core of Owenite activists
working in conjunction with other groups. Charles Howarth, who had been
the local leader of the Owenite branch, was a leading figure in the
Pioneers, and James Daly, one of the Owenite branch secretaries, became
the first secretary of the new co-operative.
The Founding of the Rochdale Pioneers
William Cooper, another Owenite among the original Pioneers, said in 1866
that the failure of a weavers strike early in 1844, and the subsequent
attempt to form a flannel weavers production society, were part of what
precipitated the formation of the Pioneers. The 1840s were a bitter decade
in Rochdale and many other parts of Europe, associated with poverty,
hunger, and unemployment. No group was more desperate than weavers.
However, the role of weavers in setting up the Rochdale Pioneers has been
exaggerated by many casual writers. A close reading of the founding
documents shows that weavers made up a large proportion of the first list
of subscribers who supported the creation of the Pioneers. However, by the
time of the founding meeting on 15 August 1844, many of the weavers had
dropped out perhaps because they were too desperate or too destitute to
invest time or money in a co-operative venture. The creation of the
Pioneers is better seen as a kind of partnership between a group of
Owenites, the weavers, some ex-Chartists, and some temperance campaigners.
Of thirty names of identifiable founding members, fifteen were Owenite
socialists, including many of the leading activists in Rochdale. Only ten
were weavers. Arnold Bonner suggests that most of the founding members
were not starving and desperate, but were comparatively well-paid skilled
artisans... Idealism, the vision of a better social order, not hunger,
inspired these men... There is sometimes a tendency, perhaps an
inclination, to forget that the Pioneers commenced business with the
purpose of pioneering the way to a new and better social order.... Without
an ideal there would have been no Co-operative Movement.
The founders of Rochdale were of course poor compared to their social
superiors. They lacked real economic or political power, or high social
status. And the poverty and misery surrounding them in Rochdale were
undoubtedly a large part of their motivation for creating a co-operative.
It is, therefore, reasonable to say that the forces of poverty and need
inspired the formation of the Rochdale co-operative. But they did so
somewhat indirectly, mediated by the agency of idealism and critical
social thought, and by the activists of Owenism, Chartism, and other
social movements. The Rochdale Pioneers did not rise spontaneously from
need, but were organized consciously by thinkers, activists, and leaders
who functioned within a network of ideas and institutions. The same can
probably be said of all successful co-operatives in all times and places:
they arise from need when some activists, institutions, or agencies
consciously promote and organize them. Also, while co-operatives have
frequently been tools for the relatively poor or marginalized, there is
evidence that (just as in Rochdale) they are rarely led by the very
poorest.
The founders in 1844 were looking for a mutual self-help organization that
would advance their cause and serve their social objectives through
concrete economic action. They called their new association the Rochdale
Society of Equitable Pioneers, a name that rang with overtones of Owenism.
Equitable had been one of Robert Owens favourite words as in his plan for
Equitable Labour Exchanges that would allow workers to exchange goods and
services directly with each other, bypassing employers and middlemen. To
Owenites, Equitable signified a society that would eliminate
capitalist-style exploitation, and that would exchange goods and reward
labour fairly according to Owens ideas. The word Pioneers might have been
inspired by the newspaper The Pioneer, which had been the organ first of
the Operative Builders Union, an early trade union, and later of Owens
Grand National Consolidated Trades Union. To choose a name like Equitable
Pioneers in 1844 was a social and even political statement, and implied
that the Pioneers were consciously taking a place in the movement for
social reform and the advancement of the working class and its interests.
The new Rochdale society had pragmatic economic purposes, but within the
context of an activist working-class culture and a visionary ideological
outlook. The connection between ideology and pragmatic action is apparent
from the first article of their statutes, in which the Pioneers laid out
the objects of their society.
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Objects of the Rochdale Pioneers
From the Statutes of 1844
Law the First
The objects and plans of this Society are to form arrangements for the
pecuniary benefit, and improvement of the social and domestic condition of
its members, by raising a sufficient amount of capital in shares of one
pound each, to bring into operation the following plans and arrangements.
The establishment of a store for the sale of provisions and clothing, etc.
The building, purchasing or erecting of a number of houses, in which those
members, desiring to assist each other in improving their domestic and
social condition, may reside.
To commence the manufacture of such articles as the Society may determine
upon, for the employment of such members as may be without employment, or
who may be suffering in consequence of repeated reductions in their wages.
As a further benefit and security to the members of this Society, the
Society shall purchase or rent and estate or estates of land, which shall
be cultivated by the members who may be out of employment, or whose labour
may be badly remunerated.
That as soon as practicable, this Society shall proceed to arrange the
powers of production, distribution, education, and government, or in other
words to establish a self-supporting home-colony of united interests, or
assist other Societies in establishing such colonies.
That, for the promotion of sobriety, a temperance hotel be opened in one
of the Society's houses as soon as convenient.
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Some observations come to mind. First, the Rochdale Pioneers existed for
the financial benefit of their members, but also for the improvement of
their social and household condition. The Pioneers combined economic and
social purposes and evidently saw no conflict between them. Second, the
Rochdale Pioneers were conceived as what we might now call a multipurpose
co-operative that would undertake a variety of different kinds of economic
activities on behalf of their members. The founders did not intend that
the Pioneers would operate stores only. And there was a sequence to these
economic activities. First the Pioneers would open a store; it would
mobilize the purchasing power of members, and begin the accumulation of
capital. Then, using the accumulated share capital and surpluses from
store operations, co-operative housing would be undertaken, and
co-operative production in which the society would provide employment to
its members. Products from employment of members could be marketed through
the society's stores. Finally, they would create a utopian community
(self-supporting home-colony) in which nonexploitive social and economic
relationships would be achieved.
Co-operative housing, worker co-operatives, even collective agricultural
co-operatives, can all look back to the original Rochdale plan for
inspiration, for they were all pieces of the Pioneers vision. In 1844
these pieces were not separate, for consumer co-operation had not yet
become split from producer co-operation, nor one sector from another, to
the degree that has become common in the twentieth century. The Rochdale
Pioneers conceived in one association of what would now make a
multicultural co-operative movement. The complementary half of this
multicultural vision is that it was a localized vision: integrated
co-operation within a geographically compact community. The Pioneers
imagined their association growing in terms of diversification and
integration what we might in the twentieth century call horizontal and
vertical integration. In aiming at integrated community-scale
co-operation, the Pioneers were undoubtedly reflecting the culture and
practical experience of working-class organization in Britain.
-----------------------to be continued--------------------------
The History Club began reading this essay in August, 2012. You can see the
whole article at:
http://usaskstudies.coop/pdf-files/Rochdale.pdf
or on the History Club webpage at:
http://www.columbia.edu/~hauben/amalgamated/history/34/Meaning_of_Rochedale.pdf
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