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(7) Extract from a report on the indebtedness of the agricultural classes 

 furnished hy the Acting Registrar, South Arcot District. 



1 . Rjots (or those that are engaged in agriculture) are divisible into 

 three classes ; farm servants, farmers and proprietors. The first class have 

 no credit except wdth their emploj-ers to a very limited extent. They 

 tUl the soil for the landlords either for monthly grain wages, for kalam 

 (that which is left in the threshing ground, after it is imperfectly 

 swept), partly for kalam and partly for grain wages, or for kalam and 

 a small share (of grain harvested). They can get advances from their 

 employers to the extent of the wages they are likely to earn in the 

 course of the year, or an advance for marriage of about Es. 20. This 

 latter sum is not repaid, nor is interest charged upon it, when the 

 servant leaves his masters' service. It is difficult to dismiss him with- 

 out forfeiting the advance unless the servant transfers his services to 

 another master in the same village, when, by mutual understanding 

 among the villagers, he is required and enabled to refund the sum 

 advanced. 



The credit of the farmers is nearly co-extensive with their annual 

 profits and that of the proprietors with nearly 70 per cent, of the value 

 of their property. The so-called farmers are persons of very little 

 means, possessing only a paii' of cattle, a plough and a hut. Their extra- 

 ordinary expenses are generally defrayed from their savings. The 

 large borrowing class are all proprietors of land and their credit has 

 considerably improved during the last twenty years omng to the rise 

 of prices. In the sub-district of Panruti, and, I believe, also in the 

 whole district, the last class only are numerous. ..... 



2. In the neighbourhood of Panruti, cumboo, paddy and ground- 

 nut are raised, the first two for home consumption, and the last almost 

 wholly for export. The money-lenders chiefly live at Pam'uti. They 

 make advances from time, to time, but, specially before the Kartiga 

 festival of Tiruvanndmalai, for buying cattle. The advances are in 

 small sums by account-current, but when they reach a respectable 

 figui'e, a stamped bond or mortgage-deed is obtained. The conditions 

 are that the advances should be repaid within a year or two ; that the 

 price should be the lowest prevailing at the commencement of the 

 harvest season ; and a highly penal rate of interest from 2 to 6 j per cent, 

 per mensum be paid for default. No interest is charged for repayments 

 in time. It is said that the penal interest is not always exacted, except 

 when the claim has to be enforced in a Court. This is the practice of 

 the petty, though numerous, class of money-lenders. Comparatively 

 large but temporary loans are also granted upon jewels, indigo, paddy, 

 &c. The rate of interest in these cases is between 6 and 12 per cent. 

 Loans on personal credit are allowed only to traders and to customers 

 of goods. No interest is charged on such loans so long as they remain 

 account debts. Larger proprietors make loans of grain to petty farmers 

 about July or so, repayable at the harvest time with profit or interest 

 at one-fourth of the principal. Allusion to this custom is found in the 

 reports of the Sub-Eegistrars of Chidambaram and Tindivanam, and 

 I also find it prevalent in the Chingleput district. Monej^ loans are 

 also granted upon, what is called, paddy interest, i,e.y at so many kalams 



