Vol. XV. No. 383. 



THE AGRICULTURAL NEWS. 



429 



CO-OPERATIVE CREDIT IN CEYLON. 



The Monthly Bulletin of Economic and Social Intelli- 

 gence, for September 1916, contains an article on the 

 subject of cooperative credit in Ceylon, which should be 

 of interest in the West Indies, where eo operative credit 

 societies have now for some lime been in successful operatioii. 

 From this we abstract the following information, which 

 should receive due appreciation \>y readers of the Agricultural 

 Weios resident in those colonies where cooperative credit 

 societies at present exist, especially in regard to the variations 

 in the working of the Ceylon societies, which should be 

 noted. 



Conditions of ruial life in Ceylon diifer in several 

 respects from those in the European countries in which 

 co-operative credit has developed. The peasant in Ceylon 

 is generally a freeholder. His holding is indeed very limited 

 in extent, but nlne-lenths of the population can call them- 

 selves landowners. The usurer is for the most part non- 

 existent, although certain districts are not entirely free from 

 him, and although the evil he represents is one which seems 

 to grow with years. The pea.sant's indebtedness to the 

 capitalist landlord increases daily, and the latter, desiring 

 eventually to acquire his holding, advances money to^him at 

 a high rate of interest. 



The history of the organization, and the working of 

 co-operative credit societies in Ceylon, may briefly be 

 summarized as follows- In 1909 the Government nominated 

 a commission which had the duty of making an enquiry into 

 land and credit banks. Its report, published in 1910, was 

 followed by Ordinance No. 7 of 1911 'for the constitution 

 and contiol of co-operative credit societies for the encour- 

 agement of thrift and self-help, and of co-operation among 

 agriculturists, artizins, and persons of limited means.' 



On April 28, 19U, thanks to the propaganda of the 

 Ceylon Agricultural Society, whose secretary published 

 a popular pamphlet in the vernacular, thirty- five local 

 societies were in full working order, and twenty-one 

 others were in course of formation. Each of these 

 societies except one has a capital composed of very small 

 shares, which can be bought by the poor as well as by 

 the rich. Each member may possess several shares, but the 

 number of his shares is limited. The subscribed capital of 

 the thirty- five societies in full working order reaches a total 

 of 101, -500 rupees-— an average of 2,900 rupees for each 

 society. The total paid-up capital at the end of 191.3 was 

 8,202 rupees— an average of 342 rupees to each society in 

 full working order. 



Persons of either sex can belong to a co-operative 

 society so long as they are domiciled within the territory 

 reserved by it as its sphere. Nothing is required of them 

 saving that they be of gord character. At the end of 1913 

 the total membership of the societies was 1,820: The maxi- 

 mum membership of any one society was 176, the minimum 

 .52. Nine societies have adopted ihe rule of limited 

 liability of their members; the rule of unlimited liability 

 has been adopted in the twenty-six others. 



Loans are made especially, but not exclusively, with 

 a view to agriculture. They are made also for the encouiatfe- 

 ment of small industries — carpentry, pottery, basket-making 

 and so forth — and, finally, to help to free the members of 

 the societies from debts incurred to those not members. 

 The loans are all for short periods: none has been 

 made for more than a year. Up to April 28, 1914, they 

 numbered seventy, and reached the total sum of 3,816 ruiiees. 

 The amount of each varies from o to 2.50 rupees, the latter 



*Under the Act of 1899, the pound sterling is legal tender 

 for 15 rupees. 



sum constituting, so far, the maximum. The security 

 for these loans, fixed by the rules, varies with the societies: 

 some take into account the borrower's contribution to the 

 society's capital; others leave the directing committee to 

 decide each case on its merits. One or two societies have 

 established the principle th.at members of committee cannot 

 obtain loans while they are in office. This rule is in force in 

 all the societies as regard.s the president. 



The rate of interest, which is always fixed by the rules, 

 varies with local conditions.' - The lowest rate is 6 per cent.'; 

 the highest 12 per cent.: in other words, 1 rupee a month for 

 a^loan of 100 rupees. These figures may seem very high to 

 European and also West Indian readers, but it is important 

 to compare them with the rates at present demanded by 

 private individuals in Cyelon. Such rates are never less than 

 36 per cent., and often surpass this figure considerably. 



As touching the disposal of funds, a society cannot dispose 

 of its reserve fund, which, according to the rules of all the 

 societies, must be deposited in the Ceylon Savings Bank, 

 whence it cannot be withdrawn without government authori- 

 zation. The relations of the societies to the Post Oflice 

 Savings Bank are the subject of a special Ordinance. The 

 Savings Bank opens with all the societies e.specially privileged 

 accounts. Needless to say, the treasurer of each society can 

 keep in his safe a certain sum for immediate needs. At the 

 end of 1913, a sum of 3,940-.50 rupees wa.s lying to the 

 credit of the societies in the Post Office Savings Bank. 



Finally, the (iovernment contemplates the granting of 

 loans to the cooperative credit societies, and has awarded 

 a sum of 600,000 rupees to be allocated in loans to native 

 agriculturists. To obtain a loan societies must: 



(1) be registered: 



(2) obtain the consent of the Government to their 

 choice of a President. 



Hitherto only one society, that of Walapane, has 

 obtained a loan. This society, which his 112 members, and 

 a subscribed capital of 1 000 rupees, has borrowed 660 rupees 

 from the Government. 



CONCENTRATING LIME JUICE BY 

 FREEZING. 



With reference to the note which appeared in the 

 Ayricidtural Ntivsfot November 18, 1916, on pige 379, under 

 the above heading, describing the results of expenments with 

 lime juice in Dominica, the Hon. .J. Spencer-Hollings, of Nevis, * 

 has furnished this Ofiice with an account of an interesting 

 experiment made by him in connexion with the same idea 

 many years ago. 



The apparatus employed in this experiment was one of 

 Carres' ice machines. This proved a much more rapid and 

 eff'ective means of concentrating than by freezing only. The 

 liquid to be concentrated in this machine is kept in vacuo 

 by aij air pump, and is also in direct communication with 

 a chamber of sulphuric acid, which absorbs the vapour as 

 soon as it is produced; and not only does it do this, butowin^ 

 to the vacuum that is produced by the air pump, the 

 liquid as it approaches freezing point assumes a condition 

 of ebulition, which greatly accelerates the concentration. 

 The resulting concentrated juice, not having been warmed, 

 still retained the colour and appearance of freshly squeezed 

 lime juice, and as thick as the dark-brown product now made. 

 When diluted with water, it had all the flavour of the fresh 

 lime, and made an excellent beverage. Mr. Rollings states 

 that after a lapse of at least two years he re-examined the 

 cordial and found it ,still retainer! its characteristics. 



