The Rochdale Pioneers
Thirteen of the twenty-eight Rochdale Pioneers who established the first Co-operative store on Toad Lane, Rochdale, in 1844, a year after the meeting described here by Isa Nicholson. Charles Howarth, who proposed the fundamental idea behind the shop, is show in the front row, sitting directly behind the desk.
Part 1 of 3
AT this time (1843) a Sunday afternoon debate used regularly to be held in the Rochdale Temperance or Chartist Reading-room. Here a small company of workers brought their anxieties and grievances, the chief subject of discussion being the problem of “How best to improve the condition of the people.”*
One Sunday a very earnest, well-informed man, called Charles Howarth, came to the meeting with a beaming face, and told them he had thought of a way of improving their condition. They were all eagerness to hear it, but when he suggested opening a shop, and buying goods wholesale and selling them retail to each other, they shook their heads. Cooperative shops had been tried several times, but had always come to grief. “My plan has never been tried,” said Charles Howarth. “Just listen, mates, while I explain; but tell me first what you think was the reason all those union shops failed?”
* The cost of living crisis was extreme. The Corn Laws, designed to protect the interests of Britain’s agricultural industry from overseas competition, were pushing up the price of basic commodities so high that some families in industrial towns were close to starvation. See The Repeal of the Corn Laws. Rochdale’s MP at the time was William Sharman Crawford (1780–1861), a Radical committed to Parliamentary reform who had signed the People’s Charter in 1838. Crawford was a close associate of Richard Cobden (1804-1865), leader of the campaign against the Corn Laws and MP for Rochdale from 1859 to 1865.
Précis
In 1843, a group of working men met in Rochdale to discuss the challenges posed by the cost of living. Many ideas were shared, including a proposal from Charles Howarth to establish a co-operative store. Howarth admitted that earlier ventures of this sort had not fared well, but he assured the others that his vision was different. (56 / 60 words)
Part Two
The Toad Lane co-operative store in Rochdale.
A view of one of the two bay windows of the country’s first co-operative store, opened in 1844 in Toad Lane, Rochdale. The shop is now a museum. When it opened, the store stocked just four lines: flour, butter, sugar, and oatmeal; and not much of them, because they had only £14 left to spend, which would be equivalent to about £1500 today.
“Folks getting things on ‘strap’ (credit), and never paying for them,” said one.
“The members buying their stuff at other shops, and not supporting their own,” said another.
“Just so,” said Howarth, “and my plan will do away with these difficulties. We will have no ‘strap’ at our shop; every customer must put his ‘brass’ down when he takes his goods away, then there will be no bad debts.”
“But that won’t prevent members from going to a cheaper shop whenever they can,” said another objector, “and women like big, smart shops, which we can’t have.”
“Not at first, but we will have, some day,” replied this hopeful pioneer; “and I am going to tell you of a plan I have in mind to help us all. You, John, have a big family, and at the end of six months will have spent, say, £10 at the Store, while I have no children, and will have probably spent only £5. Who has made most of the profit, you or I?”*
“I have, to be sure,” said John.
* That is, which of us has contributed most to the store’s profits?
Précis
Howarth invited the other members to identify the reasons why other such ventures had failed. Some blamed generous credit, and he promised no credit would be allowed. Others reminded him that all too frequently, subscribers did not do their shopping at the stores they set up. Howarth promised an answer to that objection too. (54 / 60 words)
Part Three
A co-op counter at Beamish Museum.
A view behind the counter in the replica co-operative store in Beamish Museum, County Durham, as it might have looked in 1913. Charles Howarth was proved right: very quickly the co-op acquired enough economic power to challenge the big smart shops. Indeed, they not only stocked products made by well-known brands but made their own food, clothing and household goods in busy factories. The co-op also offered home delivery in large horse-drawn vans.
“Yes. Well, now, my plan is this: As soon as the shop gets on its feet, in a manner of speaking, we’ll fix on a moderate interest — say 2½ per cent, per year — and then, after laying a bit aside for a dull season, and paying all expenses, divide the rest of the profits among the members according to the money they have spent in the shop. That’s the idea, mates. Just you think about it.”
The men looked at each other, some nodded, some shook their heads, some scratched them, in their efforts to take in this novel idea.
One man suddenly slapped his thigh, and gave a delighted chuckle. “Well,” he said, “that beats all. Why, the more we spend the more we’ll get. Our Mollie will like that.”
There was a general laugh at this brilliant idea, and then the debate began; and that night when closing time came there were more debates with the “Missis” at the fireside of many humble cottages in Rochdale.
Précis
Howarth’s idea was that subscribers would receive a share of the store’s profits in proportion to the amount of custom they brought during the year, thus rewarding loyalty with hard cash. Once the idea had sunk in, the other members rose enthusiastically to approve it, and the first co-operative store came a step nearer to reality. (56 / 60 words)
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