PROVISION OF BORROWING FACILITIES. 369 



have recently been required to make or cause to be made an annual 

 inspection of the offices of the companies within their jurisdictions and 

 a report on the same : the matters for inspection are simply those of 

 sections 63, 65, and 69 of the Act relating to the establishment of a 

 registered office, the affixing of a signboard, the use of a proper seal 

 and designation on all documents, and the placing in public view of a 

 certain statement in the Fund office ; they should also, in districts 

 where Nidlris are numerous make widely known, probably through their 

 District Gazette, the provisions of sections 82-85 of the Act, relative 

 to the appointment by Government of special inspectors for particular 

 companies on good cause shown by a certain proportion of 

 the members. 



The only other Government intervention is that of the receipt 

 of direct taxes under the Intome-tax Act and Municipal Act (if in 

 Municipalities), of fees at the registration of a society or of ^subsequent 

 documents, &c., and of indirect taxes in the form of the usual stamp 

 duties and fees for the registration of documents. 



Use made of the Loans. A very large number have been used 

 in house-building, showing that the Nidhis fill a position similar to 

 that of English and American Building societies. The payment of 

 old debts is very frequent, marriage expenses are a considerable item, 

 as also land purchase, land improvement and well-digging are very 

 rare. It is stated by most Nidhis that the grant of cheap loans has 

 done much for the help of the members, but the want of funds is 

 frequently mentioned as a reason for not doing much more. Several 

 Nidhis, especially in the Ceded Districts, state expressly that many 

 of their members have, by joining the Nidhi, "been relieved from 

 the clutches of the money-lender," and personal enquiry on the spot 

 amply confirms this. 



Results upon members. It is asserted that habits of thrift, 

 foresight, business, punctuality, public spirit have been aroused and 

 strengthened : this is probable. On the other hand, very experienced 

 men consider that cheap money has often begotten unthrift and 

 extravagance, and they consider that to attain their full measure of 

 usefulness, the Nidhis should control, in some measure, the purposes 

 to which credit is put. This corresponds with the opinion and 

 practice of the best European authorities and may be taken as 

 axiomatic ; it is not merely cheap credit, but controlled credit that 

 Nidhis should supply. Of what benefit is it to a man that he can 

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