$72 PROVISION OF BORROWING FACILITIES. 



Compound interst is a devilish engine in the hands of a creditor whose 

 whole object is to involve his debtor in his meshes. But fairly used, 

 it is just enough ; and prompt recovery of debt is essential to the 

 working of these societies. There is a danger that they may be too 

 slack in dealing with their friends and neighbours, and compound 

 interest will provide a useful stimulus to the debtor. 



In the fourth place, we have been asked, with the object of giving 

 special encouragement to thrift, to extend to mere deposits made by 

 members with their societies, the same exemption from attachment 

 for debt for which we have provided in the case of contributions that 

 have merged in the capital funds of the society ; and the precedent 

 of Provident Funds has been quoted in support of the proposal. 

 We do not admit the analogy. Provident Funds are protected, not 

 for the benefit of the subscriber, but because they form a provision 

 for the widow and the orphan ; and we do not think that thrift should 

 be encouraged wholesale at the expense of the legitimate creditor. 

 The exemption for which we have provided is confined within definite 

 limits, and we do not propose to extend it. 



Such, my LORD, are the outlines of the legislation which I am about 

 to propose to Council. But legislation is useful only as the basis 

 of subsequent action ; and the subject is of such great and general 

 interest and importance that I think I shall be justified in asking the 

 Council to bear with me a little longer, while I briefly sketch in outline 

 the action which we propose to take if our Bill becomes Law. I have 

 said that the whole matter is an experiment, and that we shall have to 

 gain our experience as we go. Under these circumstances it is essential 

 to proceed gradually and with the greatest caution. We cannot hope 

 to escape failures, which will involve loss to individuals ; and many 

 failures would set back the cause which we have at heart, while a few 

 successful societies will speedily find spontaneous imitators. If by a 

 stroke of the pen I could cover the country to-morrow with a network 



of these societies, I should decline to do so until we know mpre about 







the forms which will best suit the conditions with which ^ e have to 

 deal. And that knowledge only experience can teach us. 



On the other hand, it is abundantly clear that no real advance 

 will be made without the active encouragement and assistance of 

 Government. We propose therefore to ask Local Governments to 

 select a few places in each province in which to try the initial experi- 

 ments. They should present some variety of conditions, so as to 



