PilO VISION OF BORROWING FACILITIES. 267 



One thing, however, soon became apparent that no real 

 advance was possible without legislation. The Companies' Act at 

 present in force (Act 6 of 1882) contains 256 sections, and its 

 elaborate provisions, however necessary in the case of combinations 

 of capital on a large scale, are wholly unsuited to societies of the 

 kind which we desire to encourage. The first thing to be done, 

 therefore, was to take such societies out of the operation of the 

 general law on the subject, and to substitute provisions specially 

 adapted to their constitution and objects. In the second place, 

 it was desirable to confer upon them special privileges and facilities, 

 in order to encourage their formation and assist their operations. 

 And, thirdly, since they were to enjoy exemption from the general 

 law and facilities of a very special nature, it was very necessary to 

 take such precautions as might be needed in order to prevent 

 speculators and capitalists from availing themselves, under colourable 

 pretexts, of privileges which were not intended for them. These 

 three ends were the objects which we kept in view in framing the 

 legislation that I am about to propose. 



When we came to consider the details of our Bill, we found 

 that we had before us an extraordinary diversity of opinion, which 

 extended in many cases to matters of principle, and which reflected, 

 not only the individual convictions and experiences of the authorities 

 consulted, but also the infinite variety that characterises the 

 conditions with which we have to deal and the material with which 

 we have to work. But such diversity of opinion was only to be 

 expected. The fact is that the whole business is of the nature 

 of an experiment, upon which we are entering with very scanty 

 knowledge and very little local experience, and in which we 

 shall have to feel our way cautiously, and to gain our experience as 

 we advance. We have, it is true, European results to guide us, and 

 European models to imitate. But it by no means follows that what 

 succeeds in Europe will succeed also in India. Nor indeed is it 

 probable 'pat what is best suited to one part of this great country 

 will always be best suited to another. The conditions and the 

 character and habits of the people vary infinitely; and we shall 

 probably find that the institutions which we desire to promote will 

 take widely differing forms among such widely different classes, as, 

 'for instance, the yeomen of the Punjab, the ryots of Southern 

 India, and the tenants of Bengal. If an institution of this sort, 

 which depends upon the people themselves combining for their mutual 



