Cooperative organizations in the United States have their roots in the Industrial Revolution in England. Small, home-based businesses were replaced by large factories, and workers were forced to move to cities, where they endured harsh working conditions and low wages. The earliest cooperatives in North America were formed when the states were still colonies. The first recognized cooperative in the colonies was the Philadelphia Contributionship, a fire insurance company founded by Benjamin Franklin in 1752.
Cooperatives developed as a way for people to work together toward a common goal. Mutual aid societies emerged to address the challenges of the times. The Boston Mechanics' and Laborers' Mutual Benefit Association was established in 1845 to address the “numerous evils resulting from the absence of an efficient lien law for the protection of mechanics and laborers from the rapacity of unprincipled contractors.”
The westward expansion, spurred by the 1862 Homestead Act, led to a surplus of agricultural production. Farmers in Dakota Territory faced low prices, high shipping rates, and high interest rates. To combat these adverse conditions, farmers began to form cooperatives like the Grange.
On this date in 1918, an ad in the Nonpartisan Leader was titled “Workers Wanted.” Placed by the American Rochdale Union, the ad announced that, in response to strong interest in growing a successful cooperative, the Union had established a school to train people to work in cooperatives. The Union was seeking individuals who wanted to learn how to be store managers and salesmen to sell stock. The ad assured readers that those who attended the school and worked for the cooperative would “receive compensation equal to or better than you have ever received before.”
The Rochdale Union in North Dakota was based on the Rochdale Society, founded in England in 1844. The Society became the prototype for cooperatives in other countries. Cooperatives today still function on principles developed by the Rochdale Pioneers, including voluntary membership, economic participation by members, and concern for community. Cooperatives include agricultural co-ops, grocery co-ops, electric co-ops, and credit unions. A study by the University of Wisconsin estimates that there are more than forty thousand cooperatives in the United States with more than three hundred fifty thousand members.
Dakota Datebook by Carole Butcher
Sources:
- Nonpartisan Leader. “Workers Wanted.” Fargo ND. 1/7/1918. Page 20.
- National Humanities Center. “The Boston Mechanics’ and Laborers’ Mutual Benefit Association.” https://nationalhumanitiescenter.org/pds/triumphnationalism/cman/text4/bosmechanics.pdfhttps://nationalhumanitiescenter.org/pds/triumphnationalism/cman/text4/bosmechanics.pdf Accessed 12/1/2024.
- University of Wisconsin Center for Cooperatives. “History of Cooperatives in the United States.” https://resources.uwcc.wisc.edu/History_of_Cooperatives.pdf Accessed 12/1/2024.
- America’s Electric Cooperatives. “Understanding the Seven Cooperative Principles.” https://www.electric.coop/seven-cooperative-principles%E2%80%8B Accessed 12/1/2024.
- Farm Progress. “How Many Cooperatives Are There in the US?” https://www.farmprogress.com/business/how-many-cooperatives-are-there-in-u-s- Accessed 12/1/2-24.
