CO-OPERATIVE CREDIT IN INDIA 21 



of securing funds, and to the even greater difficulty of providing for the 

 adequate supervision of all societies. It cannot be said yet that either prob- 

 lem has been solved, and it is for this reason that the Registrars have fol- 

 lowed a policy of consolidation rather than extension, but there is at least 

 general agreement as to the lines iipon which they must be solved. Cent- 

 ral societies have been created in every Province for the purpose of lejiding 

 to other societies, and have already proved their ability to attract outside 

 capital. 



The question of finances is now largely one of regulating the relations 

 between local societies and central banking institutions. The solution 

 of the problem of supervision is being sought in the formation of societies 

 into Unions which will assume much of the work of examination, audit 

 and inspection. Already in the United Provinces and the Central Provinces 

 the Government staff is outnumbered by the staff of inspectors, auditors 

 and clerks entertained by the societies themselves. At the same time there 

 is no intention of relaxing official supervision and control. vSome of the 

 Unions act also as central banks: they serve, that is to say the double pur- 

 pose of supervising affiliated societies and financing them. 



The majority of the co-operative credit societies in India are agricultural 

 societies. In 191 2, out of a total of 8,177 societies, no less than 7,562 are 

 classed as Rural. A few societies have been formed among the members 

 of a single trade or profession. 



There is a general desire to associate the co-operative movement with 

 the technical and economic development of agriculture, and this has led 

 to the formation of a small number of societies for co-operative purchase 

 and sale. The necessity of providing for the development of all forms of 

 co-operation led to the passing of a new Act which came into force on July 

 ist, igi2. Before examining the provisions of the new Act, however, it 

 will be convenient to give some figures showing the general progress of the 

 co-operative societies in British India under the Act of 1904. The fol- 

 lowing table is reproduced from the Fifth Decennial Report on the Moral 

 and Material Progress and Condition of India. The figures include, in years 

 previous to 1911-12, those for the native state of M3^sore, in which 

 (as also in Baroda) co-operative credit societies have developed under 

 an enactment similar to that in force in British India. 



