203 



\j. The functions of the State in connection with Indian 

 credit societies. 



18. British Colonies and Dependencies broadly divisible into 

 countries in which people of European descent can do field 

 work efficiently, and countries in which farm labour must be 

 done by indigenous or imported coloured people. Tropical 

 countries and a considerable area north and south of the tropics 

 fall into the latter category. The difference is reflected in the 

 form of administration. In the one class we have the self- 

 governing Colonies, in the other the Crown Colonies, and our 

 great Indian dependency, where " popular " government is 

 impossible. 



19. So far as agricultural credit banks are concerned atten- 

 tion may at present be confined to the coloured population 

 indigenous or imported. 



20. While co-operative credit in Europe is not confined to 

 small farmers, it is not likely to be adopted under present 

 circumstances to any large extent by farmers of European 

 descent in our Colonies or European landowners in the West 

 Indies. Apart from the ordinary credit to be got from joint- 

 stock banks, they will rely on agricultural State loans granted 

 at moderate rates of interest and secured by mortgage of real 

 property. Such loans should bear such a rate of interest as 

 to make it perfectly certain that they are not being made at the 

 expense of one class in the community for the benefit of 

 another class. Dangers surrounding the system in democratic- 

 ally governed countries. Agricultural loans in the West 

 Indies, Australia, New Zealand, Rhodesia, South Africa. 



21. The indigenous coloured populations and the imported 

 labourers Ceylon, West Indies, Fiji, Africa. 



22. Rural credit societies in Ceylon. 



23. Land settlement in West Indies. Land-holding by East 

 Indians in Africa and Fiji. 



24. Land settlement should be supplemented by the organi- 

 zation of agricultural credit societies. Discussion of the 

 question in the West Indies. 



25. Case of St. Vincent. Action taken and result. 



26. Case of British Guiana. Action taken. 



27. Scope for further action. 



28. Organization of societies should conform mainly to the 

 Raiffeisen type. The people have to be trained to 



(a) Exclude unworthy members. 



(b) Save and deposit savings, 

 (r) Make only safe loans. 



(d) Spend loans honestly on objects stated. 



(e) Pay punctually. 



(/) Postpone individual profit to the necessity of building up 

 a reserve. 



