INFORaiATlON RELATING TO CO-OPERATION AND ASSOCIATION 35 



by eight members. They got the same prices and discounts that the richest 

 man of the biggest plantation in the State could get ". 



Neighbouring city banks and deposits of members are the sources of 

 revenue of the rural banks. The union is empowered to borrow money 

 from any source, provided such indebtedness do not exceed the capital, 

 surplus and reserve fund. 



Essentially the plan is as follows : members of the society in need of 

 financial aid make application to the finance committee, composed of 

 farmer members. I^oans are - pledged at six per cent, interest, without 

 commission, on property as security. Tenant farmers obtain loans on 

 securing the indorsement of their landlords. The farmer buys his supplies 

 for cash according to the plan of the co-operative society. 



