Abstract: The article comments on the statement made by Glenn W. Miller, which reported that about one-half of one percent of the retail trade in the U.S., is handled by cooperatives. The cooperatives under consideration are engaged in buying farm and home supplies for their members. Marketing cooperatives maintained by farmers primarily for the sale of their products are not included. The principal difference in the economic effect of these two types of cooperatives results from the fact that distributed net receipts go to the buyers from purchasing cooperatives, while the net income of marketing cooperatives goes to the sellers. Thus the aim of marketing cooperatives is to maximize monetary net receipts, while purchasing cooperatives seek to maximize the amount of goods and services distributed. This condition obtains because the distribution of the net receipts of a purchasing cooperative on the basis of patronage amounts to a deferred price reduction. Over the long run, therefore, operations tend to be conducted at cost.

　　Subjects: COOPERATIVE societies; MARKETING cooperatives; RETAIL trade; UNITED States; Farm Supplies Merchant Wholesalers; Nursery, Garden Center, and Farm Supply Stores; All Other Miscellaneous Store Retailers (except Tobacco Stores); FARM supplies; HOUSEHOLD supplies