98 GBANT OF LOANS AND ADVANCES TO AGRICULTURISTS. 



spent on the employment of labour in accordance with the system of 

 "Aided Village Works," for Avhich provision has been made in the 

 revised Famine Codes. In such times a similar system may be adopted 

 as regards advances for the purchase of seed, fodder, or cattle. 



13. The Government of India agree Avith the Irrigation Commis- 

 sion that the system of loans to agriculturists would be rendered more 

 popular, both with the subordinate revenue officers and with the 

 borrowers, if the procedure and the system of accounts could be 

 simplified. The chief difficulty in effecting an improA^ement of 

 this character is the necessity of distinguishing between repayments 

 of principal and interest. Under the system of equated payments 

 mentioned aboA^e, it would be unnecessary to show, in the account 

 made over to the borro\ver, the distinction between capital and interest; 

 as all that he need be told is the number of even rupees to be paid 

 by him at each instalment, and the number of instalments he will 

 have to pay ; and the Government of India Avill consider separately 

 whether it will be possible to relieve the subordinate revenue establish- 

 ment from the necessity of keeping up for each borroAver's account 

 details of principal and interest. In any case, however, it Avill be 

 necessary to maintain these details in the Account Offices. 



14. As regards the source from Avhich funds may be obtained for 

 increasing the amount aA r ailable for advances under the two Acts, 

 the present system is that, funds are provided by the Imperial Govern- 

 ment and advanced to Local Governments under the Provincial Loan 

 Account, Av r hich includes not only advances to agriculturists, but 

 also loans to Municipalities, District Boards, and landed proprietors. 

 Interest at 3i per cent, is charged to the Local Government on the 

 mean between the outstanding balances at the commencement and at 

 the close of the years, and Provincial Revenues are credited Avith the 

 full amount of interest realised on the loans granted by the Local 

 Government, and are debited with any sums Avhich it may be neces- 

 sary to write off as irrecoverable. The sums recovered by way of 

 repayment of previous loans are available for making fresh advances, 

 and should any further sum be required by the Local GoA^ernment, 

 it is found, so far as possible, by the Imperial Government from its 

 resources for the year. The amount outstanding on the 31st March, 

 1 904, on account of advances to cultivators under the two Acts was 

 over 2j crores, and the average amount of loans made during the 

 last ten years has been 86 lakhs per annum, or, excluding the four 



