Europe. There are several reasons for this. For one thing, American workmen move about to a greater extent than do European workmen, whereas coöperation succeeds best where the coöperators have a fixed residence and develop a strong sense of group solidarity. The fact that our population is made up of diverse racial types likewise checks the growth of the feeling of solidarity.

An important reason for the backwardness of the coöperative movement in this country is that American workmen "make, rather than save money," whereas coöperation requires thrift, and a willingness to practice small economies. Again, the efficiency and progressiveness of our industrial system renders coöperative ventures less necessary in this country than in some parts of Europe. It is particularly true that retail stores in the United States are more efficient than similar shops in England and on the Continent.

Altogether, the most successful coöperators in this country are not native-born Americans, but groups of Finns, Russians, Slovaks, and other peoples of immediately foreign derivation. It is among these groups that the thrift and group solidarity demanded by coöperation are best found.

119. LIMITS OF COÖPERATION.--Consumers' coöperation, coöperation in credit, and coöperation in marketing all seek to improve the capitalistic system by eliminating some of the unnecessary middlemen from our industrial life. In so far as this is true, these forms of coöperation are desirable developments, and deserve to succeed. Though the movement is limited by the considerations set forth in the preceding section, it is to be hoped that these three forms of coöperation will in the future show a considerable development in this country.

Producers' coöperation is a different affair. Rather than attempting to decrease the number of unnecessary middlemen, it attempts to supersede the entrepreneur or managing employer where he is most needed. For this reason producers' coöperation will probably continue a failure. To run a modern business of any size at all requires a degree of intelligence, imagination, judgment, courage, and administrative ability which is altogether too rare to be found among casual groups of laborers. Varied experience, high ability, the determination to accept the risks of the enterprise, and a consistent singleness of purpose are necessary in modern production. Even though coöperators are able to secure an amount of capital sufficient to initiate production, they rarely have the requisite ability or experience; too often they object to accepting the risks of the enterprise; practically never can they administer the business with that unity of control which characterizes the most successful business enterprises.

120. BENEFITS OF COÖPERATION.--While no longer considered a far- reaching industrial reform, the coöperative movement brings with it many benefits. Coöperation in retail trade, credit, and marketing cuts down the waste between consumer and producer, and thus helps substantially to reduce the cost of living. Coöperation in production, though it fails to reach its chief objective, has the virtue of demonstrating to groups of workmen that the entrepreneur is of far more value in our industrial life than they might otherwise have realized. Aside from these advantages, coöperation in any form is an important educative force. It fosters the spirit of solidarity and mutual helpfulness among members of a group or community. It teaches thrift. It trains the coöperating individuals to exercise foresight and self-control. Altogether the training which it affords is productive of good citizenship.

QUESTIONS ON THE TEXT

1. Explain clearly the nature of profit sharing.

2. What is the attitude of the trade unions toward profit sharing?

3. What is the attitude of the employer toward profit sharing?

4. Does profit sharing result in increased efficiency on the part of the workmen? Explain.