448 PROVISION OF BORROWING FACILITIES. 



The lines of development have been different in different parts 

 of India, but the same general questions have arisen. It soon became 

 evident that the future of the movement depended on the successful 

 solution of the two connected problems of finance i.e., the provision 

 of funds and snpermsion. The main obstacle to expansion in the 

 earliest stages was the difficulty of attracting outside capital, and, on 

 the other hand, the limits of personal supervision by the Registrars 

 were soon reached. The importance of avoiding anything like a 

 general officialising of the co-operative movement has always been 

 kept in view, and development was intended to proceed along lines 

 which would render it possible for societies to provide supervision for 

 themselves. It was recognised that the combination of village societies 

 for the purposes of finance and control was as important as the combi- 

 nation of individuals, and that such combination was intimately con- 

 nected with the problem of giving them access to the outside money 

 market. Pending the solution of these problems, the policy generally 

 adopted by Registrars was one of consolidation rather than extension. 

 The ideal held up was the formation of societies into local and central 

 unions which would not only finance their own societies but also super- 

 vise them and encourage the further growth of the movement. So 

 far as finance is concerned, there are now in all provinces a number 

 of "central" societies, which lend to other societies only, and are estab- 

 lished for that purpose. As regards supervision, progress has been 

 made in varying degrees in the direction of the ideal above referred to. 

 "Unions" have been formed in many parts, some of which exercise 

 supervisory functions only, while others, such as the "Central Bank- 

 ing Unions" of Bengal, also finance their affiliated societies. 



In Bombay a new departure was made in 1911 in the form of j 

 central bank the Bombay Central Co-operative Bank with a Govern- 

 ment guarantee for the interest on its debentures. The bank, which 

 was founded on the initiative of leading local capitalists, lends only 

 to co-operative credit societies, subject to the approval of the Registrar, 

 and at a rate of interest which must not exceed 8 per cent. It was 

 registered in October 1911 as an urban society. 



A matter to which special attention has been directed is the (Dm- 

 bination of the efforts of the co-operative and agricultural departments 

 for the development of agriculture. Co-operative work has in many 

 places been brought into contract with that of agricultural associa- 

 tions, seed societies of a co-operative character have been started, and 



