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Loans might be made up to two-thirds or three-fourths of the 

 value of the property offered as security, and in the case of 

 property in which several members of a family have interest, 

 the consent of all the members of the family or those 

 representing them shquld be required. This is the rule 

 adopted by the several "funds" or "benefit societies " in 

 Madras, and no difficulty has been experienced in working it. 

 In the Mylapore Permanent Fund, for instance, which 

 has been in existence for over 20 years, the losses incurred 

 on account of defective title as regards property offered as 

 security have been very small. It is in making these enquiries 

 that the assistance of non-official members of the committee 

 is likely to be of the greatest value. The funds of the bank 

 should be lodged in the Government treasury ; and the com- 

 mittee might be allowed to search the registration books 

 without payment to ascertain whether and to what extent 

 properties offered as security for loans are encumbered. I 

 do not think that any special privileges should be conferred 

 on the bank in regard to the recovery of debts, for such 

 privileges might, as already remarked, be taken advantage of 

 by dishonest borrowers to defeat the claims of persons having 

 prior encumbrances on the properties mortgaged to the bank, 

 and the additional risks thus introduced might have the 

 effect of raising the rate of interest for loans not obtainable 

 from the bank. The necessity for such special privileges 

 arises from the fact that, owing to the imperfect record of 

 transactions connected with landed properties maintained 

 in registration offices, and the enormous labour and expense 

 involved in obtaining the necessary information, the risks 

 in granting loans on the security of immovable property 

 are now considerable. I have in my official capacity made 

 proposals ^'^^ for combining the registers kept in Eevenue 

 offices for the purpose of showing the particulars of lands held 

 by every individual assessed for the land revenue with the 



1*° It would not be proper to enter into a discussion in detail, in this place, of the 

 improvements to be carried out in the registration system for the purpose of facili- 

 tating the ascertainment of encumbrances on landed properties. The importance of this 

 question has been fully recognized by the Secretary of State for India, who, in his 

 despatch, dated 23rd October 1884, on the proposal to establish agricultural banks in 

 the Bombay Presidency, has observed : " It is possible that the adoption of an 

 " improved system of registration of titles to land might tend to give such further 

 " security and greater facility to the business of agricultural banking as would render it 

 " practicable for private capitalists to embark thereon with a fair prospect of success, 

 " on terms which should not be so onerous to the cultivating classes as those to which 

 " the latter are now compelled to submit when borrowing from the village sowkars, 

 " It is, I am informed, in reliance on effectual registry of titles that the land banks of 

 " Europe and the British colonies have been carried on, and although I am conscious of 

 " the very diff*rent conditions under which an Indian agricultural community exists, 

 " yet, I recommend this suggestion to the consideration of your Excellency's Govern- 

 " ment as possibly affording some opening in the desired direction." 



