20 BRITISH INDIA - CO-OPERATION AND ASSOCIATION 



there were 41 co-operative societies in existence ; in 191 2 there were 8,177. 

 In the former year the total working capital was only £3,608 ; in the latter 

 year it was £ 2,238,000, and there were more than 403,000 members in 

 co-operative credit societies. Even so, to quote the words of the official 

 report, "the movement has touched onh^ the fringe of the vast population 

 concerned. " 



The real progress of the movement cannot be represented adequately 

 by figures alone, since progress has to be estimated qualititively as well 

 as quantitativel}', but there is every reason to believe that it has been 

 sound as well as rapid. The Provincial Registrars appointed under the 

 1904 Act were instructed to act cautiously and progress gradually. They 

 have concentrated their efforts on consolidating the movement and have 

 consistently opposed the tendency towards undue expansion. The Act laid 

 down broad general principles and left to the L,ocal Governments and the 

 Registrars the task of drawing up rules adapted to local conditions. The 

 Act itself was framed on lines already tried and proved sound in European 

 systems of co-operative credit, and the persons responsible for guiding the 

 movement in India have welcomed criticism and been very willing to accept 

 advice from specially competent persons in other countries. 



The Registrars hold Annual Conferences to discuss questions affect- 

 ing the welfare of the societies, and the resolutions passed by the various 

 Conferences have served, to a very appreciable extent, to direct the whole 

 movement on sound lines. 



Whenever possible the Registrars seek the co-operation of non-offi- 

 cial persons. Voluntary workers often posses a knowledge of local condi- 

 tions which makes their advice and assistance of inestimable value, and their 

 connection with the movement should safeguard it against the danger of 

 becoming officialized. The Registrars look to voluntary helpers to accom- 

 plish much of the work of propaganda and instruction, and, what is still 

 more important, to exercise a general supervision over the transactions of 

 the local societies. 



The Act of T904 laid down that a society- should consist of persons re- 

 siding in the same town or village, or the same group of villages, or, subject 

 to the approval, of the Registrar, of members of the same tribe, class or caste. 

 In "Rural " societies it was required that four-fifths of the members should 

 be agriculttirists, and in "Urban " societies that the same proportion should 

 be non-agriculturists. Except with the consent of the Local Government, 

 liability in the case of Rural societies was to be unlimited; in Urban societies, 

 liability might be limited or unlimited. Loans were to be made to members 

 only, or, with the approval of the Registrar, to Rural societies. 



Societies of both kinds were required to provide for building up a re- 

 serve fund. Limitations were placed on the interest which might be held 

 in a society by any member and on the transfer of shares, and provision 

 was made for compulsory audit and inspection by the Registrar. 



As was anticipated, the development of co-operative credit has proced- 

 ed on somewhat different lines in different parts of India, but in general 

 two main problems have presented themselves, relating to the difficulty 



