The Lithuanians, being farmers, have had little experience in the field of commerce. It is surprising, therefore, to observe the talents of our people who, having come to America, shift from farming to merchandising in a comparatively short time. The Lithuanian gets acquainted with the new living conditions and readjusts himself to them. Then, in a few years he becomes a businessman. Most often he opens a small grocery store.

The beginning is difficult but, in time, the man becomes acquainted with the duties and requirements of his new occupation, becomes used to them, and developes into an experienced businessman. Here his development ends.

Our businessmen do not have the desire to progress further, to better their businesses. Once having become grocery-store or saloon owners, they are 2fully satisfied and will not take one step forward to better their businesses, for they fear failure and also, they see no need for betterment. Yet our businessmen see the large stores around them and are surprised and jealous. They do not know how they themselves can attain just as much and develop just as large businesses. They need an explanation.

In these days both industry and commerce depend on an ample supply of capital. It is impossible to enlarge a business without capital. Therefore a single individual with only his own money very rarely conducts a large business today. Usually capital for such a business is supplied by various small concerns and the business is conducted as a corporation, whose policies are decided by a board of directors, elected by the stockholders. The business itself is usually conducted by trained experts, hired from the outside. So organized, backed by a large capital, and managed by capable leaders, the business can accomplish much.

Our people hear a garbled description of the method of organizing a large business and then try to use the method themselves. Since success depends on the degree of knowledge one has about methods of organization, there are many failures.

In almost every colony the Lithuanians have attempted to establish so-called co-operative grocery stores, but very few have been successful. A group of common laborers collect a little money--always less than is necessary--elect a manager from among themselves--usually one who has not even the smallest understanding about business--and the "business" is started. The manager furnishes the store, paying too much for the necessary fixtures, buys all kinds of stock the salesmen offer him, though there is no demand for most of the merchandise he purchases--and finally opens the door for business. It is evident immediately that, though there is much stock in the store, it does not meet the demands of the customers. People complain and the manager is forced to spend more money for necessary merchandise, until 4the treasury is almost empty.

There is another bad feature. The stockholders of the co-operative, from the very beginning, receive credit in the store to the extent of their investment. During the first several weeks, when their enthusiasm is at its height, they pay their bills well. But as soon as something does not please them, their enthusiasm cools and they stop paying their bills. In a short time the manager lacks money enough to conduct the business and things came to such a pass that the stockholders, fearing that their store will not survive, try to get as much merchandise out of it as possible. What finally happens? The store closes. The reasons are many: there was too little money invested at the very beginning; a trained and capable manager was lacking; finally, the ordinary stockholders were given too much freedom to butt into the management of the business.

The Americans conduct their stores in another manner. Just glance at such 5firms as the Acme Tea Company, the Great Atlantic and Pacific Tea Company, James Butler and Company, and many other corporations which control hundreds of stores. It is difficult for us to understand how they grew into such gigantic firms. But there is no foundation for our wonder: their beginning was the same as that of many of our Lithuanian businessmen and companies.

The organizer of the gigantic Acme Tea Company, a certain Mr. Hunter, started a small grocery store in Philadelphia about thirty years ago. Thanks to intelligent leadership, the business prospered. In a year Mr. Hunter opened a similar store in another part of town. The work was hard, but it brought him success. More capital was invested from the outside, sales on credit were stopped, and the business was run on a cash basis only. The merchandise was always carefully selected. In a few years, more and more stores were opened. Recently the Acme Tea Company, having about three hundred stores, its own gigantic warehouse, a bank, etc., 6merged with other smaller companies, thus creating a syndicate of almost a thousand stores, which will operate under the name of American Stores Company. This example shows that where there is sufficient capital, good management, and the knack of selecting suitable merchandise, a business cannot help but succeed and grow.

By heeding American principles, the Lithuanians of America have an unlimited opportunity in the grocery business.

Our present food-store merchants, knowing little about their business, do not know how to take advantage of opportunities. Because of this,they lose money at every step,and can hardly keep going from one day to the next. The food-store field, however, is very profitable and is not fully exploited.

"Buy from your own people." This slogan is alive among our people. The time has gone when the Jews or Germans could carry on a thriving business 7among the Lithuanians of America: our people like to buy from Lithuanians. Also, the popularity of the co-operative stores proves that our people are becoming more and more prepared for the corporate form of business. Our people have money and good intentions; they lack organization and good leaders. We need people who understand these matters thoroughly.

However, we cannot complain too much even on this score. We may be able to find many Lithuanians working in the large American firms who today do not have the chance to work among their own people. We do not yet have any large businesses, but we must turn our attention to that now,for we are maturing in business ability. We need an organization which will take the initiative in this matter and gather our experts who are now working for somebody else. This organization must be able to organize a large food business. Who can do this? Only the Lithuanian Development Corporation in New York.

In every one of our colonies, and especially in Chicago, there are supporters who would like to see food-store corporations. The Lithuanian Development Corporation could do much in this field by providing a good system of management, finding and putting to work suitable managers, and investing some of its capital in the business in order to have an authoritative voice in its management. Then we would have stores in every one of our colonies, controlled by separate corporations in each city. Many of our people would be provided with jobs and the opportunity to train themselves in conducting a business successfully. Many of these people, after returning to Lithuania as trained merchants, could become very beneficial citizens to the country of their birth by replacing those undesirable and harmful elements, the Jews and the Germans. That is not all. Well-organized and well-managed food stores usually make a five per cent profit on their turnover. In other words, a store with a turnover of a thousand dollars a week, or fifty thousand dollars a year, makes a clear profit, after deducting all expenses, of about twenty-five hundred dollars a year.

To organize and start such a store, one does not need a capital of more than twenty-five hundred dollars. This means that, in one year, the investment is returned and can be used to open a second store in another part of town. Thus, in a few years, it is possible to have a whole string of stores in one town, which bring a good profit to the stockholders.

It is therefore clear why the American firms grow so fast.

It should also be pointed out that having several stores in the same colony would provide the opportunity to buy merchandise in larger quantities and therefore at lower prices than one small store could get. Buying for less makes it possible to sell for less and, at the same time, to make more profit. Therefore, there is benefit not only to the stockholders of the store, but also to the customers. In time, bakeries, meat packing plants, etc., can be added to these corporations.

One must be practical in starting such a corporation. It would be best first to become well-organized in one colony and then to go on to another. After a few years of successful work, almost all of the Lithuanian colonies in America would be included. We shall thus obtain a beneficial branch of business which will be profitable to our people and will serve as a practical school of commerce.