70 GRANT OF LOANS AND ADVANCES TO AGRICULTURISTS. 



a lakh ; and ME. ALLEN, of Bengal, without stating any specific sum, 

 considers that the advances might be very largely increased in that 

 province. 



187. Advances by the Opium Department. A strong proof , if proof 

 be required, that much more can be done in ordinary times 

 by means of State advances than many are inclined to suppose, is to 

 be found in the operations of the Opium Department, which every 

 year advances very large sums to cultivators of poppy, on condition 

 that certain areas are put under that crop, and, in addition, a certain 

 amount for wells, which, however, are used for other crops as well as 

 for poppy. We do not suggest that it would be possible for 

 Collectors to advance on the same scale. But the work of the Opium 

 Department shows that there is no insuperable difficulty, or reluctance 

 on the part of the cultivator, to prevent him from taking State 

 advances from Government for agricultural purposes, when the 

 advantages to be gained have been properly impressed upon him. 



188. Stimulating means required. Although, then, there are 

 defects in the takavi system to which we shall advert below, and 

 improvements to be made, yet the first and perhaps the principal 

 measure required is to quicken the interest of all classes of revenue 

 officers in takavi work, to place liberal allotments at their disposal, and 

 to inquire strictly into the causes of failure to spend up to them. 



189. Rate of interest. We have inquired carefully into the extent 

 to which the free use of takavi is hindered by defects in the law, rules, 

 and administration. In the first place, we have no hesitation in 

 saying that the rate of interest charged is not in itself excessive. 

 That rate is 6j per cent, (one anna in the rupee) for all classes of 

 improvements, except in Madras and Bombay where the charge now 

 is only 5 per cent. These rates are so far below the market rate of 

 interest that the people regard them as extremely liberal. Some 

 witnesses have recommended lower rates with a view of popularising 

 the system ; but no one has been found to assert that the existing 

 rates were too high. The Opium Department, however, make all 

 their advances, including those for wells, without interest. It would 

 also appear, from calculations made by MR. WILSON and COLONEL 

 GREY, that the Punjab Government, with interest at 6j per cent., 

 gains substantially by the present system. The Imperial Government 

 which advances money for these loans to the Provincial Government 

 at 4 per cent., while itself able to borrow at little over 3i, also 



