cclxxiv 



Tamil month the forty Chetties meet in their temple and resolvfe as to 

 what rate should be adopted for the month. This is generally done by 

 a reference to the rates that prevailed in the same month in the previous 

 year. The actual rates charged during the last three years are given 

 below : — 



Rate of interest charged. 



Chittirai (April and May) 

 Vaiyasi (May and June) 

 Ani (June and July) ... 

 Adi (July and August) 

 Avani (August and September) 

 Purattasi (September and October) . , 

 Arpisi (October and November) 

 Kartigai (November and December) 

 Margali (December and January) .. 

 Tai (January and February) ... 

 Masi (February and March) ... 

 Panguni (March and April) ... 



The balances outstanding to the credit of the Madras firms bear 

 interest month by month according to the rates then prevailing and not 

 according to any fixed rate. The average interest" for a year under 

 these calculations will be about 8 per cent. Every seven months the 

 interest is added to the balance and compound interest according to 

 rates as above stated is calculated. The mofussil Chetties take care, 

 therefore, to keep no account unpaid for more than seven months. This 

 is the main reason for the terms of repayment in their stipulations with 

 ryots being always short. One of the Chetties here gets money from 

 liangoon occasionally, but the rate of interest being higher there it is 

 not preferred to Madras. Remittances are made by currency notes, and 

 hundis where possible. 



The establishment of each banker consists only of an agent or 

 kanakapillai (accountant) who does much of his business. Most of the 

 Chetties remain in Karur for about eight months in a year and transact 

 their business in person. During their absence the kanakapillais are 

 empowered to make loans and recover debts subject to conditions dilBEer- 

 ing according to the character and experience of the men. The richest 

 bankers have agents of their own class and do not stay in Kar6r long, 

 the agents doing all their business. No securities are taken from them. 



who is the richest pays his agents Es. 500 a year each besides 



undergoing their boarding expenses. Kanakapillais get from Es. 10 to 

 Es. 20 a month and keep their accounts in cadjan leaves. Their services 

 are availed of in writing documents, and they have also to go about the 

 villages collecting interest due. Debtors do not pay interest every 

 month, though in the documents they agree to do so ; generally once 

 in every three months or so it is collected. The profit and loss are 

 determined once every three years with some ; with others the periods 

 vary. 



There is no particular season in which debts are recovered. During 

 the harvest seasons the ryots are pressed for payment, but they prefer 

 to keep what is harvested and sell the produce during the dearest season 

 to obtain a larger price. The payments are made throughout the year 

 according to individual convenience. 



