cclxxiii 



(4) The following account of the methods of business adopted by firms 

 of Nattukottai Chetties established in Kariir (Coimhat ore District) in 

 lending money to ryots has been furnished by the Sub-Registrar 

 of Kariir. 



There are twelve firms of Nattukottai Chetties established at Kariir 

 for lending money. Of these firms, four are wealthy and have dealings 

 to the extent of a lakh of rupees each. The investments of others vary 

 from about Es. 10,000 to Es. 50,000. The richest of them has banks 

 in Rangoon, Madm'a and Madras^ and it is from one of his agents that 

 the information given below was obtained. 



When a ryot applies to the Chetties for a loan, which is not done in 

 writing, his name is noted down, and careful inquiries are made as to 

 whether the property owned by him will be sufficient security for the 

 loan. Villagers known to be respectable, and having transactions with 

 them, supply the Chetties with the necessary information on the point. 

 Village officers are consulted in cases of doubt, and all deeds relating to 

 the property upon which his claims rest are demanded and examined. 

 The Chetties are more ready to advance money on the secmity of lands 

 in the actual possession and enjojTiient of the ryot by right of purchase 

 or mortgage, than on the security of inherited property, as there are 

 chances of claims being disputed in the latter case. Encumbrance 

 certificates from registration offices are very rarely, if ever, required. 

 (There has not been a single application for general search in this year 

 on this account.) The Chetties and their agents have made themselves 

 thoroughly acquainted with the condition of the ryots living in the 

 viciDity of Karur. The help of the village officer is sought only where 

 reliable information cannot be had from other available sources. As a 

 rule, a ryot who has already had transactions with the bankers intro- 

 duces the applicant, and, if necessary, becomes his surety. The applicant 

 has not to wait for more than a week unless the amount is large, say 

 Es. 1,000. Promissory notes and simple bonds are accepted only when 

 the applicant is a well known and respectable man. Mortgage deeds 

 with personal security are the rule. 



The Chetties do not keep any treasury in their banks, and there is 

 never more than a thousand rupees in reserve in the richest firm. They 

 are supplied with money according to requirements by their brethren in 

 Madras, with whom they keep accounts current. When a loan is 

 applied for, clients already owing are pressed hard and the advance is 

 made from recoveries ; when this is not possible, or when there is a like- 

 lihood of a longer delay than a week, money is obtained from Madras. 



There are forty Nattukottai Chetties in Madras who supply their 

 brethren in the mofussil with sums of money whenever required, bearing 

 rates of interest which vary every month. These sums the mofussil 

 Chetties are at liberty to return without any restrictions as to time of 

 repayment. But, as a rule, all debts recovered are remitted at once to 

 Madras, vmless there is demand for fresh loans. The Madras Chetties 

 belong to one and the same sect and place as those in the mofussil, and 

 are therefore acquainted with the character and solvency of the latter 

 to enable them to judge as to how much can be safely advanced. The 

 rates of interest charged by the Madras firms on their mofussil bankers 

 vary according to demand every month. About the first of every 



