Government relief had failed to stop the evils of the barter system. In the opinion of thinking men it only made matters worse. We were therefore from every point of view encouraged to start the cooperative plan which had proved so successful in England. I still believe that the people are honest, and that the laziness of indolence, from the stigma of which it is often impossible to clear them, is due to despair and inability to work properly owing to imperfect nourishment. Things went from bad to worse as the years went by. The fact of the sealing steamers killing the young seals before they could swim greatly impoverished the Labrador inshore seal fishery. The prices of fish were so low that a man could scarcely catch enough to pay for his summer expenses out of it. With us the matter came to a head in a little fishing village called Red Bay, on the north side of the Straits of Belle Isle. When we ran in there on our last visit one fall, we found some of our good friends packed up and waiting on their stages to see if we would remove them from the coast. A meeting was called that night to consider the problem, and it was decided that the people must try to be their own merchants, accepting the risks and sharing the profits. The fisherman's and trapper's life is a gamble, and naturally, therefore, they like credit advances, for it makes the other man carry the risks. We then and there decided, however, to venture a cooperative store, hiring a schooner to bring our freight and carry our produce straight to market; and if necessary eat grass for a year or so. Alas, after a year's saving the seventeen families could raise only eighty-five dollars among them for capital, and we had to loan them sufficient to obtain the first cargo. A young fisherman was chosen as secretary, and the store worked well from the beginning. That was in 1905. He is still secretary, and to-day in 1918 the five-dollar shares are worth one hundred and four dollars each, by the simple process of accumulation of profits. The loan has been repaid years ago. Not a barrow load of fish leaves the harbour except through the cooperative store. Due to it, the people have been able to tide over a series of bad fisheries; and every family is free of debt. [Illustration: THE FIRST COOPERATIVE STORE] At the time of the formation one most significant fact was that every shareholder insisted that his name must not be registered, for fear some one might find out that he owned cash. They were even opposed to a label on the building to signify that it was a store. However, I chalked all over its face "Red Bay Cooperative Store."