252 PROVISION OF BORROWING FACILITIES. 



its operations are to extend. If so, the business of the bank will 

 apparently be of a much more speculative and hazardous character than 

 is contemplated by the Government of your Excellency or by the 

 Bombay Government. If not, it is not obvious where the ryots will 

 find their market. Again, it appears to be anticipated by the promoters 

 that the bank will make advances in comparatively large sums 

 at a time, and for special objects, such as agricultural improvements 

 or domestic ceremonies, which are not of constant recurrence. 

 But loans of this character, I learn from good authority, do not 

 form the mass of the transactions of the Deccan ryot with his 

 village banker. He wants, and at present has a running account, 

 on which he draws from time to time for small sums of money, or 

 for the petty articles of his simple needs, and at harvest- time he clears, 

 or tries to clear, by the produce of his fields, the debts thus incurred. 

 It does not seem to me possible that the bank should undertake 

 this petty but necessary kind of business, and, if it dees not, the 

 peasant will, in all probability, still deal with the village sow /car, but 

 with this consequence, that, as the bank's claims will take precedence 

 over other claims, the sowkar will have to protect himself by still 

 higher interest and more oppressive dealings. 



9. I observe that the example of land banks in'France, the colonies, 

 and other countries has been cited to prove the advantage and the 

 practicability of the proposed scheme. I must, however, remark 

 that the success of banks dealing with farmers and planters, who 

 cultivate for a profit upon invested capital, affords no sure indication 

 of the probable results of a similar institution dealing with ryots 

 cultivating for subsistence, while there is great doubt whether the Credit 

 Foncier of Egypt, which is said to be in many respects an establish- 

 ment analogous to that which is proposed for the Deccan, has proved, 

 on the whole, beneficial to the fellahs of Egypt. 



10. As regards the condition that debts to the bank shall be 

 recovered by the agency of the revenue courts, I attach great weight to 

 the criticisms of the Bombay Settlement Commissioner, to the effect 

 that, should this be done, Government will incur all the unpopularity 

 and odium of collecting debts which, though private obligations, 

 are treated as public demands. It would be out of the question that 

 the revenue officers should undertake this function without satisfying ^ 

 themselves of the justice of the bank's demand, and that they 

 should put in force the summary process of the revenue law upon 



