PROVISION OF BORROWING FACILITIES. 43a 



In 1910 the movement commenced to grow rapidly. At 

 the close of the year there were 280 rural societies with 7,022 

 members, 8 urban societies with 1,247 members, and 12 central banks 

 with 804 members. Capital reached the sum of Us 5,02,080. But 

 this growth brought new difficulties with it. When I became 

 Registrar, in 1911, the movement stood in danger of starvation 

 for want of capital. Deposits were not forthcoming ; stagnation 

 threatened. Un-official workers were asking how they could be expected 

 to make bricks without straw, and Deputy Commissioners wanted to 

 know what was to be done. The Allahabad Bank was willing enough 

 to advance money, but the Directors of that institution very reason- 

 ably asked, "How is a Joint Stock Bank to judge the solvency of 

 remote central banks which are strangers to it ?" The case of the Sihora 

 Bank was exceptional; for Sihora is close to Jubbulpore and to the 

 local agent of the branch of the Allahabad Bank. I had long cherished 

 the idea of a Provincial Bank as the final link between the Central 

 Banks and the money market. But, in 1907, I thought that we 

 might, perhaps, be advanced enough for a Provincial Bank by 1927 ', 

 for when the Sihora Central Bank started we scraped together with 

 the greatest difficulty, the enormous initial capital of Rs. 2,000. And 

 most of the subscribers were sure that their money was lost to them 

 for ever from the moment they paid for their shares. I had already 

 tried to organize two central banks elsewhere and had failed. Un- 

 official workers were, in those days, very few and absolutely new to the 

 work; and when, in 1909, I spoke to the HON'BLE MR. MUDHOLKAR 

 about my scheme for a Provincial Bank he told me that I would never 

 succeed in floating it unless Government would furnish substantial 

 guarantees. "Give us a Government guarantee", he said, "and Berar 

 will give you as much money as you require". Much the same attitude 

 prevailed in the Central Provinces. However, by 1911 the position 

 had changed. Something had been done to show that these new-fangled 

 co-operative ideas had sense in them and central banks had steadily 

 earned and paid moderate dividends. For the Provincial Co-operative 

 Bank a capital of Rs 5,00,000 was asked for and was speedily over- 

 subscribed, Most of the capital came from Jubbulpore, in which 

 district co-operation was firmly established. A great deal came from 

 Nagpur, thanks to the cordial assistance of SIR Gr, M. CHITNAVIS; and 



the rest came from other districts in the Central Provinces. Nothin<>- 



t? 



could be obtained from Berai\ The Directors of the Allahabad Bank 



