PROVISION OF BORROWING FACILITIES. 281 



present Act, but the stringency of the provisions has been much 

 .relaxed. It will, I think, generally be recognised that the inclusion 

 of provisions for the division of profits to the members of unlimited 

 co-operative- societies tends to bring in influences dangerous to the 

 true co-operative spirit. We must, however, accept facts, and not 

 insist on pushing too far our co-operative idealism. Especially in the 

 Punjab and .in Burma it has been found that the possibility of 

 obtaining shares in a society with the prospect of ultimately 

 participating in the profits has induced many who would not otherwise 

 have done so to join the movement. 



The last change in the law I propose to notice and it is one 

 of very great importance is that which provides for the possibility 

 of grouping all societies into Unions. I will very briefly indicate the 

 : great importance of this matter. It is not at all unlikely that it may 

 appear to many who are not acquainted with the subject that it is for 

 the Government to provide for the inspection of societies, and that 

 Government might well be more liberal in its assistance in the shape 

 of loans. In my view it is of the utmost importance to the healthy 

 and successful development of the movement that Government 

 interference and help should be reduced to a minimum. We have, on 

 the whole, been very fortunate so far in securing for the development 

 of the movement officers who have thoroughly sympathised with, and 

 who have a thorough grasp of, the principles of the whole movement. 

 But if co-operative societies develop in the future as fast as they have 

 done in the past, and if Government control continues to be as close 

 as it is at present, sooner or later the whole business of inspection 

 must become departmentalised. In dealing with co-operative societies 

 a mere knowledge of rules is useless. Mere mechanical inspection 

 and control would destroy, and not build up, the co-operative spirit. 

 It is possible to get a few officers with the necessary gifts and 

 knowledge, but if the number of officers to be appointed were large, 

 such special selection would ultimately become impossible ; and 

 anything MI the nature of Government control by officers appointed 

 ex-officioj and not specially selected, is almost bound in the long run 

 to be injurious. On the other hand, if co-operative societies join 

 together to form unions, each of these unions should be able to provide 

 from among their members some men with the necessary knowledge 

 and enthusiasm to guide those who require help. The business of 

 the unions will be not merely to obtain funds to finance the societies 



38 



