[Extract* from the Proceedings of the Fourth Conference of 



Registrars, 1909.] 



ORGANISATION OF CO-OPERATIVE STORES IN INDIA. 

 DEVELOPMENT OF OTHER FORMS OF CO-OPERATION. 



These two subjects were referred to a Sub-Committee which was 

 also asked to consider the question raised by KIINWAR MAHARAJ SINGH 

 (United Provinces) as to whether societies and especially District 

 Banks might legitimately engage in other than strictly banking- 

 business. The Sub-Committee was composed of MESSRS. BUCHAN 

 (Secretary), ENGLISH, SHIRRAS and SHAMA RAO. 



MR. BUCHAN presented the report of the Sub-Committee as 

 below : 



I. Co-operative Stores. The Committee's first recommendation 

 is that the Act be amended as soon as possible so as to make the 

 registration of societies for co-operative distribution, production and 

 gale clearly permissible. 



The Committee have come unanimously to the following conclu- 



sions 



(1) That a society which deals solely in stores is not generally 

 practicable in a purely rural district owing to the absence, within 

 a workable area, of a sufficiently large and continuous demand for 

 similar articles ; that while distributive annexes to rural credit 

 societies are possible, it is highly undesirable that a credit society 

 should deal in distributive business until it has thoroughly mastered 

 its own special work; and that generally speaking, in view of the 

 different areas which a Credit Society and a store can safely, and 

 ought to, cover, and of the danger of each department damaging the 

 other'^ credit, it is desirable that the separation of credit and distribu- 

 tive functions should, except in special cases, be insisted upon. 



(2) That in small towns, such as the head-quarters of sub-divi- 

 sions, the formation of stores should not be encouraged unless prices 

 are unduly high and conditions adverse to the consumer. 



