CHAPTER VI 



REMEDIES FOR AGRICULTURAL INDEBTEDNESS: THE 

 PEASANT AND THE MONEY-LENDER— Continued. 



The indebtedness of the peasantry has long engaged 

 the serious attention of public men in Europe, and 

 various suggestions have been put forth from time to 

 time to solve this grave social problem. Two of these 

 deserve consideration here because they have com- 

 mended themselves to the Government of India, and 

 are actually being tried in this province. 



The first of these remedial measures consists in 

 reducing the peasant's capacity to borrow. It has 

 been observed in Europe, as well as in India, that the 

 peasant's power to borrow depends chiefly upon his 

 being able to pledge his land as security for debt ; the 

 amount which he could raise upon the security of 

 his cattle or household utensils is trifling, for the 

 security is not very attractive ; but the value of land 

 has been steadily rising, and it is a security which 

 bank or money-lender will accept with gladness. A 

 cause, then, of the peasant's indebtedness is the 

 dangerous privilege which has been conferred upon 

 him of mortgaging his land — a privilege, it must be 

 remembered, which was suddenly conferred upon him 

 a comparatively short time ago. This is as true of 

 Europe as of India. 



1 Take Prussia, for example. Before the well-known 

 legislation associated with the name of Von Stein the 

 peasants had no mortgageable interest in the land : 



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