[Footnote 1:  Speaking generally, it cannot be said that the trade unions faced the crisis with either wisdom or courage.  Their attitude, on the whole, was one of utter bewilderment.  The lack of the power of adaptability to new circumstances, together with the fact that sufficient pressure was not brought to bear upon the Government in the first weeks of the war, accounts for the unfortunate position in which the trade unions found themselves.]

[Footnote 2:  The scheme applies only to unions suffering from abnormal unemployment.  There are also conditions that they “should not pay unemployment benefit above a maximum rate of 17s. per week, including any sum paid by way of State unemployment benefit,” and that they “should agree while in receipt of the emergency grant to impose levies over and above the ordinary contributions upon those members who remain fully employed.”  The amount of the emergency grant in addition to the refund of one-sixth already payable will be either one-third or one-sixth of the expenditure on out-of-work pay, depending on the amount of the trade union levy.  Under 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.