[Itesohtfion of tJie Government of India, No. 6-204-16, dated the 



30th November, 1905.] 



PRINCIPLES ON WHICH THE SYSTEM OP ADVANCES, UNDER THE LAND 

 IMPROVEMENT AND AGRICULTURISTS' LOANS ACTS, 



SHOULD BE WORKED. 



The Government of India have had under consideration the system 

 in force for the advance of loans from State funds to assist in the 

 development of agriculture, whether under the Land Improvement 

 Loans Act, 1883, or under the Agriculturists' Loans Act, 3884. 

 The recommendations made on the subject by the Famine Commission 

 of 1901 were referred for opinion to Local Governments, and after 

 consideration of their replies, and of the recommendations made on 

 the same subject in the report of the Irrigation Commission of 1903, 

 the Governor General in Council is now in a position to lay down 

 the principles on which he considers that such loans should be made, 

 and to offer certain suggestions with the view of making their 

 operation more effective. He agrees with both Commissions that the 

 system is a very valuable one, both in ordinary times and in times 

 of drought; that it should be the policy of the State, as supreme 

 landlord and as the guardian of the people against famine, to promote 

 with reasonable liberality, the execution by private persons of works 

 which will add to agricultural efficiency and increase the total produce 

 of husbandry; and, that loans for i^ie purpose of purchasing seed 

 and cattle and for other agricultural /ojects, not covered by the Land 

 Improvement Loans Act, should iot be limited to times of special 

 stress, but should, like those made for the improvement of the land, 

 form a part of the ordinary revenue administration. The consideration 

 which has now been given to the subject has led him to the conclusion 

 that in most Provinces the existing rules might safely and properly 

 be revised, so as to secure greater simplicity, liberality and elasticity 

 in the working of the system, and thus increase its popularity and 

 the advantages derived from it by the agricultural population. 



2. This Resolution will first deal with loans made under the Land 

 Improvement Loans Act on ordinary conditions, and then with loans 

 on special terms and advances made under the Agriculturists' Loans 



