PROVISION OF BORROWING FACILITIES. 439 



Banks have, almost without exception, adopted a simple rule under 

 which each individual member of every society pays an annual Union 

 subscription of Re. 1. This is an absolutely inclusive charge and, in 

 return, a trained and efficient staff is maintained for the special 

 purpose of writing up the accounts of the societies, while all stationery, 

 is also supplied. Under this scheme in our advanced banks, 

 to every circle of 100 societies is appointed a Union Auditor. Union 

 Auditors are under the sole direction, control, and discipline of 

 the Governor of the Union ; by him they are appointed and by him 

 dismissed ; they work under the Government Auditors, and no man 

 can be employed to audit unless he is recognized by the Registrar 

 under Section 17 (i) of Act 2 of 1912. For every circle of fifty 

 societies a Union Mohurir is employed. Union auditors are in a 

 class alone, but they as well as Mohurirs are paid by the societies and 

 in this important respect they are distinct from Hank staff 

 (which is, of course, also Union staff). No pains are spared to make 

 societies understand that the men they pay are their servants and 

 not their masters. Societies are learning this very readily ; and they 

 are quick to detect and to complain of any shortcomings on the part of 

 their servants. It has already been pointed out that societies have 

 votes in the Bank which they belong to ; and it is this control which 

 societies possess over a Bank's affairs which renders it safe to employ 

 Union staff. Were societies merely the customers of a Bank and 

 not its proprietors I believe that this paid staff would speedily become 

 a colourable imitation of the subordinate Government staff, the 

 Patwari, the Irrigation Amin, and the rest. Education in co- 

 operation is revealing many things to the humble peasant, and the 

 revelation connot fail to have a stimulating and purifying influence on 

 rural politics and environment. 



The formation of the Union, itself a product of education in co- 

 operation, has had and is having a very satisfactory and remarkable 

 influence on the quality of the work done by co-operative banks. 

 Regularity and strict attention to essential banking detail is replacing 

 spasmodic effort and unpunctuality. Our banks have got far to 

 travel before they are perfect but if they ever develop into model 

 institutions, as I hope they will, it is to the Union that they will owe 

 far more than they at present dream. Thanks to the Union an annual 

 increase in share capital is now assured. And to the Union is 

 due the establishment of a Famine Insurance Fund which will 



