Part 17 (2/2)
We borrow that amount from the insurance fund, the sum being part of the acc.u.mulated profits on sales at the store and restaurant. We then replace this sum by scrip of the same face value. This scrip, to the pensioner or beneficiaries, is the same as cash. When they have drawn and spent it, the debt is cancelled. No interest is paid. The store and restaurant become the clearing house, through which these drafts against the resources of the farm are liquidated. In the same way, temporary loans can be made from other funds, whenever it is for the benefit of the united interests of the co-operators to do so.
”How is it possible, you ask, to keep perfect control of such a large issue of scrip, with a certainty that all in use is genuine?
”That is a matter which is easily regulated by our simple system of issue. In the first place, we print the scrip here at Solaris, from plates which, when not in use, are kept in the safe, in the custody of the treasurer. The five denominations issued, are as follows: five, two, and one dollar bills; which, together with the fifty and twenty-five-cent, fractional-currency scrip, make up the list. Every denomination has a numbered series, of ten thousand. Each series, with the stubs attached to the bills, is bound in book form. When issued, each stub remaining in the book, will show the date of issue, serial number, and amount of the issued bill. When cancelled, the bills are returned to the book, and again attached to the stub to which they belong. At any time, an examination of the books of issued and unissued scrip in the hands of the treasurer, will give the amount outstanding.
The co-operators are requested to keep a record of the serial numbers of the scrip they hold or handle, and to report the loss or destruction of such as may happen. A history of the loss is attached to the stub, and the amount of the bill carried to the profit and loss account of the company.
”If the genuineness of any piece of scrip should be questioned, a comparison with the stub should show the same date, number, amount and serrated edges, made by the peculiar pattern of the perforator belonging to that series. If so, the bill must be genuine. As time pa.s.ses, we are more than ever convinced of the wonderful advantage gained by the use of this scrip. Our people find it much lighter and more desirable to carry and use, than the same amount of gold or silver coin; therefore they frequently request to be allowed to exchange coin for scrip. In summing up my replies to your questions: it seems probable, from the constantly increasing volume of business, that the company will soon be obliged to take a charter that will authorize it to do a complete banking business.”
CHAPTER x.x.xIV.
THE INSURANCE OFFERED BY CO-OPERATIVE FARMING.
”I notice, Fillmore, that you mention the borrowing of ten thousand dollars from the insurance fund; the same being a part of the acc.u.mulated profits on the business of the store and restaurant. Tell me; how is it possible for so large a sum to be saved in such a short time?”
”A complete answer to your question, will bring up the whole subject of insurance; which presents some interesting problems. I will first try to give you the basis for such an amount of savings. The net per-diem pay of $2.50 for each adult member of the company, will give an annual income of a little more than $900. If we include an added pro rata for the children, each one will spend annually at least $450 with the store for goods; and $350 with the restaurant for food. Our statistics show much larger sums; but these will do for an estimate. Taking these figures for a basis, we find that the annual sales made to our own people by the store and restaurant combined, reach the startling sum of $400,000. A net profit of five per cent on this amount, gives $20,000 each year to the insurance fund. At this rate, the profits for thirty months, reach the goodly sum of $50,000. To which we may add $2,500 more, as profits on sales to the amount of $50,000, made during that period by the store and restaurant, to people from surrounding communities. Altogether, we have a grand up-to-date total for the insurance fund of $52,500. These profits will continue to increase with larger sales to outside people; also with the increased wages or incomes of the co-operators, as the products and profits of the farm continue to grow.
”Such favorable statistics are very encouraging. They demonstrate that only a five per cent profit will be needed, to meet all future demands against the insurance fund, even when the colony has its maximum number of children and superannuated co-operators. The remaining profits, which in some departments of the store are large, may wisely be devoted to educational and missionary work.
”From another point of view, this eloquent array of figures, has an additional value. They show conclusively, that the restaurant alone furnishes a home market annually for $175,000 worth of farm produce: beef, mutton, pork, lard, honey, syrup, milk, b.u.t.ter, cheese, eggs, poultry, vegetables, fruits and grains.
”If we consider the sales made by the store, we find after deducting the cost of raw material, that at least fifty per cent of the goods purchased by our people, are really the products of the skilled labor of the farm: such as crockery, furniture, willow ware, picture frames, brushes, clothing, underwear, bed furnis.h.i.+ngs, and goods from the tailoring, dress-making and millinery departments. From this showing it will appear, that the store becomes a home market each year, for farm products to the amount of $112,500. To this, let us add the sums of sales through the restaurant, and those made through the markets of the outside world. Altogether, we have a grand total of $787,500 for the market value of farm products last year.
”Does this exhibit appeal to you as a reasonable basis for the acc.u.mulated savings named in your questions?”
”I am sure the exhibit has astonished me greatly! Your figures and statements are both fascinating and convincing. They are all, most excellent arguments in favor of co-operative methods. I now perceive that even on the basis of present conditions, a five per cent profit turned into the insurance fund, at the end of the first ten years, will amount to the extraordinary sum of $200,000. With this magnificent fund, you can afford to extend the scope of your original plan! How will you dispose of it? At what age do you propose to retire the active workers?”
”Yes, our original plans have been changed, and very much enlarged. The insurance fund has grown so rapidly, that it was deemed wise to expend a portion of it, in building a hospital for the accommodation of our farm people, and perhaps a few outside patients. Last year, a two-story and bas.e.m.e.nt brick building, was erected just in the heart of our finest shrubbery dotted lawn, some distance from the public square. It is large enough for about one hundred patients. Viewed from any point, it presents a charming appearance. It is conceded by all to be the handsomest structure on the farm. Inside, with its polished floors, magnificent windows, large rooms, high, beautifully frescoed walls and ceilings, dainty couches, cozy chairs, and wide, breezy halls, with picture-laden walls; every condition is present to satisfy the highest ideal of sick-room comfort. Brighter, sunnier, more health-inspiring rooms never soothed, charmed or healed a nerve shattered patient!
”Under the supervision of the sanitary committee, the hospital at present, is in charge of a young surgeon employed by the company. His services are utilized in teaching and preparing a cla.s.s of trained nurses. He also teaches the members of the chemistry and physiology clubs, in their new study rooms at the hospital. At a later period this surgeon will be superseded by two of our own people. A young woman and a young man, both with some previous knowledge of pharmacy, who have been in charge of the drug department at the store; have recently developed a strong desire to take a thorough course of medicine and surgery at some leading school. Upon the recommendation of the general manager, approved by a unanimous vote of the co-operators, the expense of this schooling is to be taken from the insurance fund, with the understanding however, that after graduating, they are to relieve the company of the expense of a hired surgeon, by taking permanent charge of the hospital, or as our people have christened it, the 'Temple of health.'
”Relative to the question of retiring members of the company; much thought and discussion on the part of our officers and co-operators, has been required, to properly and wisely fix the age at which such retirement shall take place.
”Many important questions have been considered. Our present colony, as you know, is composed of young people, as a rule not yet thirty years of age. Individually they possess strong, disease-resisting, vital organizations, which have been reinforced by harmonious, mental and physical development. This immunity from disease to such a large extent, has been still further strengthened and fortified, by the beneficial effects of our organized sanitary, social and industrial methods. These methods have lifted the weary burden of toil from our people, and subst.i.tuted therefor, a light exhilarating labor, simply healthful exercise. Under such favorable conditions, our workers ought to reach the age of fifty, with health and vigor still unimpaired. For the reasons named, very few of our co-operators, outside the ranks of the mother's club, are at present ent.i.tled on account of either illness or accident, to draw their wages from the insurance fund. Fortunately, so far, not one has become permanently disabled! All things considered, it was not unexpected, when a final vote on the question was taken, that a majority was found to be in favor of fixing the age of retirement at fifty years.
”This decision will give the farm company, twenty years in which to prepare for the event. In the light of our past experience, no one doubts our ability to acc.u.mulate an adequate fund, with which to meet the additional drain upon it. This drain will prove a heavy one, as the retired pay of the co-operators, who have reached the age of fifty, has been fixed at two-thirds of their present pay, that is, fifty dollars per month or $600 per annum. Premising that the maximum number on the retired list at any one time will not exceed fifty; the total annual retired pay will then amount to $30,000.
”The following plan has been devised to meet this additional expenditure. It has been demonstrated conclusively, that five years hence, the income of the farm, will warrant the increase of the wages of each member of the company, to $1,500 per year. At least $1,200 of this amount, will be spent at the store or restaurant. We shall then have a new basis for calculating the five per cent profit for the insurance fund; that is, $600,000 annually, which will give $30,000 each year for the fund. Allowing that savings at the present rate, $20,000 per annum, for seven and one-half years, aggregating $150,000; will prove ample for incidental needs, until the time for the retirement of the first co-operator! We calculate that fifteen years of savings on the new basis, will give us twenty years hence, a fund of $450,000 to commence with.
”If practical experience should prove that larger savings are necessary; an additional two and one-half per cent profit, may be set aside for this fund, without seriously curtailing the sums devoted to educational and missionary purposes. This will surely cover all possible contingencies. More especially, as seven and one-half per cent of all retired pay, will come back to the fund as profits on purchases--active workers having taken the place of the retired members. Considering the generous annuity provided by this insurance, together with the fact that the wants of the pensioners will become fewer as age increases; doubtless, at the end of each year, many of them will turn back into the fund, considerable sums of unused pay.
”As another important factor, connected with the question of this kind of insurance, it should be well understood, that after reaching the age of retirement, our members do not cease to be valuable productive workers, either for the financial gain of the colony, or for the general welfare of the movement, which the colony represents. On the contrary, in many cases, their services are liable to become more valuable than ever before. Between the ages of fifty and sixty, they remain subject to a.s.signments to serve on committees, to act as traveling agents for the company, to represent the company as lecturers and organizers, for the spread of the movement; to act as aids to the teachers in the schools and the numerous clubs. They are also eligible to election as town, county, state or United States officials. In committee work, connected with the store and the various factories, their riper judgment, based on many years of experience, would prove especially valuable: often by timely advice, they would be able to save for the company in one transaction, an amount in money more than equal to their entire wages for the year.
”In another way their services would prove equally advantageous. With such an increase of leisure, there would come to these retired co-operators, a desire, and the opportunity, to enter more actively into the practical work of the scientific clubs. If inclined, they could take up all kinds of scientific research; making themselves especially useful in the practical, productive and profitable work of the educational, microscopical, chemical and photographic clubs. Those who had a talent for invention, could then devote as much time, energy and thought to it, as they chose. To aid them, they would have the advantage of an acquired skill in the use of tools, and of all kinds of complicated machinery, which would be a part of the outfit belonging to the thoroughly equipped machine shop at their disposal. In the laboratory, they could find the books, maps, and drawings, necessary to bring them up to date in any line of invention which they might choose to enter.
”Taking these important factors into consideration, we discover that our co-operative inventor, would be armed to conquer his subject by a magnificent equipment, such as an ordinary inventor could not hope to command.
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