28 INDEBTEDNESS OX THE LAND-HOLDING CLASSES. 



houses or buildings) not required for the support of the insolvent and 

 his family, for a period not exceeding seven years, and the proceeds to 

 be divided among the creditors. It is understood, though the case is 

 not directly provided for in the law, that it is the intention that the 

 agriculturist should, whenever possible, be retained as cultivator of the 

 managed property paying a reasonable rack-rent under suitable 

 precautions. While any property is in the collector's hands the insol- 

 vent is not allowed to encumber or alienate it. 



15. Experience will show whether, after the mass of existing 

 debt is disposed of under these provisions, the money-lenders will 

 withdraw their capital beyond the reach of the Act. Some uncertainty 

 is felt on this subject, but there seems no reason to doubt the assertion 

 of many native witnesses, including village bankers, that the 

 creditors are prepared to make large sacrifices in return for the inter- 

 position of Government to effect prompt recovery of their money, and 

 the measure will at any rate have the effect of clearing off the 

 existing burthen of debt. 



16. The Deccan Riots Act has been passed so recently that we 

 have no information as to how it is found to work in practice, and 

 such experience can be the only safe guide in this subject ; but if this 

 proves satisfactory, the principles embodied in it might, with advantage, 

 be applied to other parts of India. Two of the principles contained 

 in the Act may perhaps be singled out for especial reference. The 

 multiplication of small village Courts, presided over by the village 

 headmen, and of village registrars, before whom all bonds for debt 

 must be executed,*would probably be of good effect in all parts of the 

 country. Considering that of the 1,400,000 suits annually disposed 

 of by the Courts of British India, 1,200,000, or 85 per cent., are for 

 sums under Us. 100, and 630,000, or 44 per cent., for sums under 

 Rs. 20, a strong prima facie case appears to be made out for tribunals 

 which shall dispose quickly, easily, and cheaply, and by a procedure 

 suitable to the wants of a humble order of litigants, of a vast mass 

 of petty litigation. Village tribunals of this description already exist 

 in the Madras Presidency, and we are glad to know that the Govern- 

 ment of India has invited the various local administrations to consider 

 how far it may be possible or desirable to extend the Madras system 

 to other provinces. 



17. The second is the creation of special courts with a procedure 

 specially devised to take up and dispose effectually of cases of this 



