ACCOUNTING: During the past two years the C.I.C. staff has tackled the question of modern accounting wholeheartedly in every depot, and training classes in cost accounting have been given for cooperative accountants who only know old style Chinese bookkeeping. C.I.C. trained accountants have been allocated to cooperatives--for big cooperatives one accountant is employed by each society, for small, one accountant serves two or three. Emphasis has been placed on the presentation of monthly balance sheets and yearly closing of accounts with profit sharing. Profits are divided among the members once--or in rare cases twice--a year. The usual method of division, all claims including interest on loans and shares having first been paid, is as follows: Reserves 20 per cent Emergency Fund 10 per cent Bonus to Officers of Society 10 per cent Common Good Fund 10 per cent Divided among Members 50 per cent */ The division accords with Chinese Law. The bonus to officers is usually made to include gifts to apprentices and hired workers such as cooks, and the Common Good Fund is used for education, medical welfare, and other social service. The division among members is made in strict proportion to wage and time worked. Local conditions and various industries differ so much that no wage-policy has at present been applied. In general it may be said that wages in cooperatives--fixed by the members themselves--are about the same as those in private factories of the district. The products in general sell at prevailing rates, though in some cases the prices have been lowered and profiteering prevented by the action of the cooperatives. COOPERATIVE FEDERATIONS: Wherever the societies have passed the first short period of infantile dependence on the C.I.C. they have been associated into federations, sometimes according to trade, but more often and more wholesomely, according to districts. The most important immediate function of the federation is to open a supply and marketing agency, which by its centralization, specialization, and greater supply of circulating capital is able to relieve the cooperatives of most of their problems of buying and selling.... TRAINING: Training of organizers is of vital importance, for it is they who will succeed or fail in giving to the workers true conceptions of cooperation, industry, and business, and in inculcating efficient methods and habits. Classes for organizers have consequently been held in every region.