PROVISION OF BORROWING FACILITIES. 261 



306. The above is only a brief stretch of the principles, organisa- 

 tion and object of village banks founded on the RAIFFEISEN system. 

 It appears to us that there is in every province, which we have visited, 

 a wide scope for the establishment of such banks : some have been 

 already established in the North- Western Provinces and Oudh. In 

 some provinces the hope of successful working is better than in others ; 

 but everywhere there is justification for an effort. No doubt such 

 banks may, in the commencement, meet with opposition from the 

 money-lender, who already occupies the field, and they may also meet 

 with suspicion and half-hearted support from those who do not under- 

 stand their principles. But Indian native life presents us with 

 instances of co-operation for mutual benefit and the principle which 

 underlies the RAIFFEISEN system is not really foreign to the thoughts 

 of the people. 



307. The system cannot succeed unless the people themselves 

 aid freely in working it. But, if the experimental banks initiated 

 by the Organization Society take root in any district, the future 

 growth of the movement will be in proportion to the desire of the 

 people to free themselves of their present burden of indebtedness. 

 The system separates the working bees from the drones, and gives 

 the former an opportunity of escape from the disqualifications which 

 now press so heavily on both classes of cultivators alike. 



308. The preceding remarks apply to Mutual Credit Associa- 

 tions in their agricultural aspects ; the same needs exist and a similar 

 remedy applies in connection with the promotion of rural industries 

 and the relief of artisans. It may, indeed, be possible for one associa- 

 tion to combine both forms of relief. But in any case it will be 

 necessary to legislate concerning the privileges which all such associa- 

 tions should enjoy ; this matter is, we understand, already under 

 the consideration of the Government of India. 



309. There remains the larger question of encouraging land and 

 mortgage banks and private individuals to apply capital to the perma- 

 nent improvement of the soil. This was considered in connection 

 with Act 19 of 1883, and we desire to mention with approval of 

 its general object. 



