**** 



# /l'fl V": ?*** "* ^ 



102 



AGRICULTURAL CREDIT BANKS 



subscribed by instalments extending over ten years. In 

 old banks, after ten years, members can withdraw fully 

 paid-up shares, but they cannot withdraw their quota of 

 the profit earned, which is allotted to them in fresh 

 shares. No dividends are payable for ten years, and it 

 will be necessary to fix a maximum that may be given 

 thereafter if grave risk is to be avoided. In new 

 societies the shares are not withdrawable, and it is to 

 be hoped that the older societies will agree to modify 

 their by-laws as regards this matter. It may be interest- 

 ing to note the objects for which loans were granted in 

 the Punjab in 1912-13: 



Purchase of cattle ... 



Payment of old debts 



Payment of Government revenue 



Household expenses ... 



Fodder for cattle ... 



Marriage expenses 



Seed 



Redemption of mortgages 



Sinking of wells 



Other purposes 



Per cent. 

 26J 



1 8 



12 

 II 

 1O 



7 

 5 

 i 

 i 



The figures refer to number of loans granted. Nearly 

 half the money advanced was for paying off old debts 

 and redeeming mortgages. There are some signs in the 

 Punjab that unpunctuality in repayment of loans by 

 members may cause trouble. The Registrar has noted 

 that " more care must be taken in admitting members 

 and in making loans, and better security must be 

 required." In the last resort it is always possible to 

 order the winding up of a society that will not reform. 

 Another danger, or rather, the same danger in another 

 form, is the too ready renewal of loans or the grant of a 

 new loan immediately after an old one has been nominally 

 paid off. The village banks have been largely grouped in 

 unions, and a number of central banks have also been 

 formed. These societies are on the basis of limited 

 liability. Most unions in India undertake not only the 

 duty of promoting common action and providing .in- 

 spection, but also that of financing the affiliated banks. 

 The ordinary joint stock banks have begun to show their 

 confidence in the co-operative central banks and unions 

 and to supply them with funds when required. The most 



