enjoys, or they will be forced to content themselves with the poorer and less profitable class of trade. I have seen no studies of the matter, but it would be interesting to know how large an amount of farmer trade is now enjoyed by the chain groceries in our larger towns. My own impression is that they are a much more serious competitor of the small country merchant than is the mail-order house. These are but a few of the forces which will bring better service from the village merchant. There are also ways in which farmers may secure better service without attempting to operate a cooperative store of their own or deserting the local merchants. Farm Bureau associations have in numerous cases made arrangements with a local dealer whereby he would handle their seeds, fertilizers, or spraying materials at a specified rate of profit, upon condition that they give him all their trade in these articles and place their orders in advance. This principle of collective buying through an established merchant at an agreed rate of profit has much to commend it, and is being utilized by the Grange-League-Federation Exchange in New York state to take care of its local business as far as possible. The fact is that the profits of a strictly cooperative store, after paying the salary of a competent manager and other costs of operation, which would make a very attractive income for a single merchant, do not make a dividend to each of its many patrons much more than a good rate of interest on the total cost of purchases. It may as well be recognized that unless there be a strong loyalty to the cooperative principle by a considerable group of patrons and unless there be peculiar need of a cooperative store that it is not a mechanism which will automatically secure much lower prices or superior service, for the success of the enterprise depends primarily on the manager and if he be competent, he must be paid sufficient to command not only his services but his loyalty and initiative. The cooperative store will find it good business to have a profit-sharing arrangement with its manager and employees, if it expects to secure the same service from them that may be secured from the better merchants. On the other hand, if by pooling their buying power a group of farmers can throw their business to one merchant in consideration of his selling at a specified profit, even if only for a particular line of goods, they get the advantage of their collective purchasing power and have none of the responsibility for maintaining the business. Although it is my belief that the cooperative principle is essentially sound and must ultimately dominate our business life, yet it will need to find means of giving larger incentive to its managers if it is to compete with the best individual business men. After all, what is wanted is to get business on a functional basis, and if this can be accomplished by means of collective buying through an established