PROVISION OF BORROWING FACILITIES. 355 



70 per cent ; even in the twelve mofassil Nidhis they are 3,288 out 

 of 4,669, or slightly over 70 per cent. ; agriculturists proper are 

 only 723, or 9'4- per cent. It is clear, then, that the Nidhis of this 

 presidency have so far reached only the official, professional, and 

 trading classes of the towns with a few agriculturists, most of whom 

 also live in the towns. However well adapted their general 

 principles may be to the conditions of this presidency, or 

 however capable of development, the Nidhis have not, during 

 their forty years of existence and twenty years of extension, 

 been able to provide the Madras ryot with any appreciable 

 help. 



As a rule there is no condition as to admission except 

 nationality ; most admit only caste Hindus ; some (Madras town) 

 only Europeans or Eurasians. There is but a single, and that 

 a very small, Mahomedan Nidhi in the whole presidency, Madras 

 city included, and the ordinary Hindu Nidhis do not admit 

 Mahomedans, because of the difficulties arising out the 

 Mahomedan law of inheritance. Directors generally have power to 

 refuse admission a very necessary faculty so as to keep out 

 objectionable characters. There is no general condition, however, 

 as to character, status, &c. ; any man who is willing to abide by the 

 rules, and pay his monthly quota regularly, is an eligible member. 

 The responsibility of members is "limited" to the maximum value 

 of their shares ; in most Nidhis no single shareholder can hold 

 more than a certain number usually twenty, twenty-five or 

 fifty of shares, only in one a ' Commercial bank' is there no 

 limit, and the maximum held in that society by any one member is 

 165 ; in one society 100, and in two others 300, is the maximum 

 allowable. This rule may be evaded by taking shares in the names 

 of relatives. As however the Nidhis as in Europe, proceed on 

 the democratic principle of "one man, one vote/' irrespective 

 of the shares held, they avoid pro tauto any plutocratic preponder- 

 ance in the governing power. 



As a rule Nidhis have but one office, only a very few have 

 branches or agencies ; the Hospet Jaya Lakshmi Bhandara has a 

 sub-agency and three branches ; the sub-agency is an agricultural 

 Nidhi, practically independent of the original, but the branches work 

 'under the control of the latter. Here again, they resemble the general 

 run of the German and Italian Credit Societies. 



