IJ 
does it incur unnecessary interest have specialized management and it is 
charges, but it gives the impression of impossible to attain this end if a large 
being unsoundly financed, which, is diversity of products be handled in the 
certainly true. It is one of the fun- same organization. Different products 
damental principles underlying co- require different trade connections and 
operative organization that an organ- are marketed in widely differing man- 
ization be soundly financed and one ners. To include in the same organiza- 
of the most important steps in the tion, distinctly differing crops, means 
financing is the building up of ade- that both the field and marketing pro- 
quate cash reserves. With a new or- blems of the organization are greatly 
ganization which has yet to prove increased. All of the producers of one 
its stability, this is of the utmost im- crop are interested in the same things, 
portance, but as opposed to this we the improvement of production and 
see many new associations paying out marketing methods. When several 
the last penny to members in order to crops are handled hy the same organi- 
show them the highest possible re- zation the interest and aims of the 
turns on their shipments. This is a members are too scattered. Each in- 
totally unsound procedure, and every dustry has its own particular pro- 
association should retain a definite blems to solve and for this reason, as 
sum per unit of shipment to be placed well as those given above, it is most 
in a reserve fund for emergency use unwise to include in the same organiza- 
or future development. A sum of 1d. tion, producers of more than one crop. 
per box, for instance, is not great in It is essential to the success of any 
itself, but when deductetd from many organization that there be within 1t 
boxes over a long period of time it unity of membership and common in- 
means the creation of a large cash terest and aims and this can only be 
reserve. obtained through an organization 
COMMODITY ORGANISATION. being based on a single industry. 
During the latter part of the nine- FEDERATION GF SMALL UNITS. 
teenth century many co-operative or- Co-operative organizations of the 
ganizations of farmers were formed in world, can in one sense, be divided into 
the United States but nearly all of three distinct groups, one group being 
them failed completely. Most of these represented by the small, independent, 
were merely local associations, hut two local association, another represented 
large organizations, having a member- by the large, centralized organizations, 
ship of 500,000 each, also failed to ac- such as the Sun-Maid Raisin Growers 
complish their desired ends. The chief of California, and the third being the 
reason for failure we now know to lie large federation of many small units 
in the fact that these associations were or local associations, in this latter 
simply combinations of farmers of class falling the California Fruit Grow- 
many interests; in other words they ers Exchange and the Fruitgrowers 
were divided internally as their mem- Exchange of South Africa. 
bership was not confined to farmers of It is obvious that the first type, the 
similar interests: In the same group independent, local unit, is not desir- 
were combined fruit growers, dairy able; it is better than nothing but a 
farmers, poultrymen, etc. One of the makeshift is not desired if anything 
soundest principles we have received else is possible. As before stated, many 
from Danish agriculture has heen that co-operative associations failed in 
of organizing on a commodity basis. America during the latter part of the 
The first large, successful organization nineteenth century and many have 
formed in America was the California failed since. Aside from the fact that 
Fruit Growers Exchange, formed in they were not organized, in many 
1893. It was the first large organiza- cases, on commodity lines, their failure 
tion grouped around a single industry. was due in large measure to their lack 
One of the chief factors leading to of power and efficiency. When many 
success i: that an organization should small units act independently of one