Cooperatives in Postwar Europe

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Cooperatives in Postwar Europe Cooperatives in Postwar Europe Survey of Developments in Scandinavian Countries and Eastern, Central, and Western Europe Bulletin No. 942 UNITED STATES DEPARTMENT OF LABOR JOHN W. GIBSON, Acting Secretary BUREAU OF LABOR STATISTICS Ewan Clague, Commissioner For sale by the Superintendent o f Documents, U. S. Government Printing Office, Washington 25, D. C. - - • • Price 15 cents Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Letter of Transmittal United States D epartment of L abor, B ureau of L abor Statistics, Washington, D . C., June 18,1948. The Secretary of Labor: I have the honor to transmit herewith a report on cooperative developments in postwar Europe. This study summarizes, against a brief background of prewar and wartime events, what has happened to the cooperatives (especially the consumers, associations) since the end of the war. It thus brings up to date the material presented in a previous report—Bulletin No. 770 (European Cooperatives and Their Possibilities in Postwar Reconstruction). This re­ port was prepared by Florence E. Parker of the Bureau’s Office of Labor Eco­ nomics. Ewan Clague, Commissioner« Hon. John W . Gibson, Acting Secretary of Labor. m [Reprinted from the M o n t h l y L a b o r R e v i e w , January, April, May, and June 1948 issues] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Contents Page Part 1— Western Europe________________________________________________________________ 1 Great Britain________________________________________________________________________ 2 Postwar situation______________________________________________________________ 2 Relations with labor___________________________________________________________ 3 Nationalization_________________________________________________________________ 3 Belgium______________________________________________________________________________ 3 Postwar situation_______________________________________________________________ 4 France_______________________________________________________________________________ 5 Postwar situation______________________________________________________________ 5 Netherlands_________________________________________________________________________ 6 Postwar situation______________________________________________________________ 6 Switzerland__________________________________________________________________________ 6 Postwar situation___________________________ 7 Part 2— Scandinavia and Finland_____________________________________ ’________________ 8 Denmark_____________________________________________________________________________ 8 Finland______________________________________________________________________________ 10 Norway______________________________________________________________________________ 11 Sweden______________________________________________________________ 12 Part 3— Central Europe__________________________: ______________________________________ 14 Austria_______________________________________________________________________________ 15 Czechoslovakia______________________________________________________________________ 16 Germany_____________________________________________________________________________ 17 Italy__________________________________________________________________________________ 18 Part 4— Eastern Europe_________________________________________________________________ 19 Prewar situation_____________________________________________________________________ 19 Situation during the war___________________________________________________________ 20 Postwar developments----------------------------------------------------------------------------------------------- 20 IV Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Cooperatives in Postwar Europe Part 1.—Western Europe: Developments in Great Britain, Belgium, France, the Netherlands, and Switzerland F l o r e n c e E . P a r k e r 1 Wide variations in conditions were faced by Reports, however, indicate a worsening of the the cooperatives, both during and after World supply situation since the end of hostilities. Goods War II, in Great Britain, Belgium, France, Nether­ of all sorts are either in short supply or unobtain­ lands, and Switzerland. Nevertheless, in spite able in all five countries, and in those for which of substantial losses of manpower and plant, in all data are available (Great Britain, France, and Switzerland) continue to be under Government five countries the cooperatives survived and control. emerged in some respects in a better position than Because cooperators had more money than was the case in prewar days. Few permanent ration coupons, their unspent money poured back changes in the legal status of cooperatives occurred into the cooperative movement in the form of in these countries, notwithstanding the Nazi deposits and new capital. In Great Britain the conditions enforced during the war. consumers’ cooperatives, all during the war, had By the end of the war most of the bomb damage no difficulty in obtaining whatever amounts of to property sustained in Great Britain had been capital were needed. Large increases in capital patched up or restored, but lack of materials were also reported for the CWS Bank in Great has hampered complete restoration or much Britain and the cooperative banks in France and physical expansion. In France and the Nether­ Switzerland. An improved financial condition, as lands, the greater part of the damage to plants compared with prewar, was reported for the dis­ occurred during the liberation campaign. De­ tributive cooperatives in all these countries. The struction of premises, loss of equipment and goods Belgian cooperatives had the most difficult time, through looting by the retreating Germans, and but succeeded in maintaining financial stability, the cutting of means of communication left the with more or less regular depreciation of assets, cooperative movement in the area of hostilities maintenance of reserves, etc. almost prostrate. Elsewhere in these countries, Considering all the circumstances, cooperative as well as in Belgium and Switzerland, the problem membership held up well, registering steady in­ was mainly that of replacement of worn-out creases in Great Britain and Switzerland and a equipment. The cooperatives in Switzerland, moderate gain in Belgium. An apparent decline which had had no physical destruction, took the took place in France, but the smaller figure may lead in giving assistance to associations in the have been due to failure to include the cooperative war-torn countries. membership in Alsace-Lorraine. In the Nether­ lands the membership appears to be at about the i Of the Bureau's Labor EconomicslOffice. same level as before the war. l Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis 2 COOPERATIVES IN POSTWAR EUROPE In spite of shortages of supplies and Govern­ intervals. In the “second battle of London,” in ment controls on distribution which reduced con­ 1944-45, it was reported that at least 700 cooper­ sumption, volume of business (in terms of money) ative shops in that city were damaged by the has shown an increase in all these countries. “flying bombs.” Permanent restoration has been Taking into consideration the rises in price levels, impossible in some cases, even yet, because of it appears that tonnage handled by the retail inability to obtain materials. The same cause associations in Great Britain and Switzerland has has delayed the realization of many of the postwar also increased, but that of the wholesales fell plans for expansion. somewhat. In Belgium the index of cooperative After the first period of bombing, which resulted business—both retail and wholesale—fell consider­ in a movement away from the cities where the ably below the indexes of prices, indicating a cooperatives were strong to the rural districts sharp drop in the physical volume of goods sold. where they were relatively weak, cooperative In France the wholesale maintained its volume membership began to rise and continued to do so, until the inflation of 1946. No data are available in spite of the steady decrease of the civilian popu­ as to cooperative retail business in France in lation. Whereas, before the war, British coopera­ relation to prices, nor as to either retail or whole­ tives were serving between a fourth and a third of sale business in the Netherlands. the population, by 1945 (according to the report Controls on prices and decreased consumption of the central board of the Cooperative Union) operated to reduce the net operating surplus in they embraced about half of the families in Great some cases, as did also increased taxation, but Britain. it is known that in Great Britain and Switzerland Cooperatives shared in the general wartime cooperatives continued to pay patronage refunds decline in trade in nonfood items resulting from all through the war. Special taxation levied in shortages of supplies and control of demand Great Britain, Belgium, and Switzerland, designed through rationing. In fact, in such commodities to expropriate exceptional profits derived directly as wearing apparel and household goods, the or indirectly from the wartime conditions, did not cooperative trade showed a decrease greater than apply to patronage refunds. To some extent, the national average, indicating that in these lines however, such legislation
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