40 AGRICULTURAL ORGANISATION 



affiliated societies ; and (2) central unions, which are 

 federations for the purpose of inspection, control and mutual 

 guarantee. In some instances, the functions of a central 

 bank and a central union are combined in a single body, 

 known as a central banking union. The central and urban 

 societies are based on limited liability. Rural societies 

 work with unlimited liability, " a principle," we are told, 

 " which has no terror for the ryot, who has long been accus- 

 tomed to it in his family relations/' The chief purposes for 

 which loans are obtained from the rural banks are purchase 

 of cattle, payment of land revenue, and repayment of loans 

 from money-lenders. Smaller sums are also advanced for 

 non-productive purposes, such as expenditure on marriage 

 and other ceremonies. 



Of the 730,000 working capital of the rural societies, 

 466,000 represents loans from non-members and other 

 societies, 96,000 share capital, 105,000 members' deposits, 

 23,000 reserve, and 40,000 loans from Government. The 

 financial support of the State is, however, being gradually 

 withdrawn. In several provinces State loans have been 

 altogether discontinued. " The movement has almost 

 everywhere passed out of the experimental stage ; many of 

 the societies are self-supporting and are winning more and 

 more the appreciation and confidence of the people." 



While agricultural organisation has thus far developed in 

 India mainly on the lines of co-operative credit, the " state- 

 ment " further says : 



Co-operative societies for pro ductive and distributive purposes 

 exist, but not as yet in any numbers. Some of the rural credit 

 societies, however, have extended their activities in these direc- 

 tions ; they market the produce of their members, purchase 

 agricultural machinery for their use, etc. The Provincial 

 Agricultural Department finds these societies admirable inter- 

 mediaries for the propagation of improved methods of cultiva- 

 tion. 



JAPAN. 



The example of Japan is especially interesting as that of a 

 nation which, having resolved to adopt " all modern 



