418 PROVISION OF BORROWING FACILITIES. 



methods fully understood, societies of all kinds should be discouraged 

 from dealing 1 in other than strictly co-operative business. 



MR. WHEELER (Bengal) invited attention to the finding of the 

 Sub-Committee that a society which deals solely in stores was im- 

 practicable in a purely rural area. So far as his experience went, he 

 doubted if the remark was entirely true, and in any case he ventured 

 to suggest that it required modification. The experience gained hard- 

 ly justified sweeping generalisations at this stage, and the remark if 

 it received the imprimatur of the Conference might tend to discourage 

 experiments which might lead to useful results. The President moved 

 that the words "not generally practicable" should be substituted for 

 "impracticable". MR. BUCHAN said that he had no objection, and the 

 report was amended accordingly. 



MR. GOURLAY (Bengal) drew attention to paragraph 1 (e) of the 

 Report and said that the question whether Co-operative Stores 

 Societies should sell to non-members deserved consideration. The 

 first principle of Co-operative Credit Societies with which the move- 

 ment had hitherto mainly been concerned, was that non-members 

 should be rigidly excluded from the benefits of the society. In the 

 case of Store Societies with cash transactions there was less danger, 

 but he was inclined to think that Store should deal only with mem- 

 bers and prospective members. He would explain what he understood 

 to be the usual practice at home. The Store dealt with any one 

 who wished to buy at current market prices. At the end of the year 

 net profits after payment of interest on shares were divided up rate- 

 ably among purchasers who had purchased goods in excess of a fixed 

 minimum value. A member could claim his rebate in cash or invest 

 it in the business. But as regards non-members, he believed that 

 the rabate could not, as a rule, be claimed in cash, but must be devo- 

 ted to the acquisition of a member's share. He was inclined to think 

 that the same principle should be followed in India. At the end of two 

 years unclaimed rebates would be credited, as in England, to the reserve. 

 MR. RAMACIIANDRA RAO (Madras) was of opinion that dealings with 

 non-members should be prohibited. This was the principle followed 

 in all Co-operative Store Societies in Madras, even in the Triplicane 

 Society in the Presidency town. The societies sold only to share- 

 holders, but the shares were payable in small instalments. The essence 

 of a Co-operative Society of any kind was that its dealings should be 

 only with members. If this principle were departed from it would 



