er
special conditions the grant is to be retrospective. It is, therefore,
possible for trade unions to be subsidised so far as unemployment benefit
is concerned, to the extent of one-half their payments. But this scheme
does nothing to assist trade unions (of which there are many) which get no
unemployment benefit.]

The decrease in earnings accompanying short time, and their total stoppage
in the case of unemployment, mean amongst the workers a restriction of
purchasing power. The shrinkage in the total wages bill, especially in
Lancashire, must lead to a diminution in the income of small traders and
the co-operative societies. Where trade is very bad the societies will be
severely hit; smaller purchases will mean smaller profits, which, where
there is no large reserve to fall back upon, will in turn mean the
declaration of a smaller dividend. The "divi" received by the workers will
be less, and the purchases which the thrifty housewife of the north usually
makes with it in the way of clothing and replacement of household articles
will be less also; where the "divi" has been left in the society, it will
in a large number of cases be used to supplement the scanty wages earned on
short time, or to provide the necessaries of life where the breadwinner
is altogether unemployed. In places where times become very bad, the
co-operative societies during the war, and for some time after, will suffer
because of the conversion of the cash orders which ordinarily go to the
"co-op" into credit orders at the shop round the corner. On the whole,
however, the co-operative societies will probably come better out of the
war than many classes of small shop-keepers. The small tailors, drapers,
earthenware dealers, etc., and others who sell all but indispensable
commodities, will see a shrinkage in their sales, especially if prices
rise. The co-operative societies will also lose in this respect, but they
will lose less on the whole, owing to the fact that a good deal of their
capital is used in the sale of food-stuffs, the consumption of which will
be restricted last. But admitting this, they cannot expect to escape
unscathed, and the blow they suffer will be felt on other sides of their
activity, such as their educational work, the income for which usually
fluctuates with the prosperity of the societies.

The diminution of the purchasing power of the working people because of the
restriction of the national wages bill, however, may be min