Miscellaneous, 



268 



[September, 1908. 



Act has been in operation. As Mr. 

 Gourlay stated in the paper which he 

 prepared for the Industrial Conference 

 held at Surat at the beginning of this 

 year, there are now 735 rural credit 

 societies, which have a capital of eleven 

 lakhs. And the movement is constantly 

 extending. As soon as the ryots begin 

 to understand what co-operation means, 

 they appeal to the zemindar or the 

 missionary to help them in forming a 

 society, and almost every society estab- 

 lished tends to bring others into exist- 

 ence. That difficulties would arise was 

 inevitable. Considerable skill and 

 patience are required to acclimatise in 

 India ideas made in Germany. How 

 numerous the problems are may be seen 

 by referring to the proceedings of the 

 Second Conference of the Registrars of 

 Co-operative Credit Societies. There is, 

 for instance, the question whether the 

 Societies should have the power of 

 recovering debts by summary procedure. 

 Lord Cuizion's Government deliberately 

 withheld this power on the ground that 

 a wisely conducted Society will not make 

 a bad debt calling for summary recovery. 

 Mr. Wolff applauds this decision, but 

 Mr. Campbell, the Bombay Registrar of 

 Co-operative Credit Societies, is strongly 

 in favour of summary procedure. Again, 

 there is the question of area. How far 

 shoidd a Society extend its operation ? 

 Should different castes have their own 

 Societies ? Then we have questions as to 

 the objects for which loans can be legiti- 

 mately granted. Is it right to lend for 

 marriages? Mr. Wolff holds that as 

 marriage expenditure appears to be 

 necessary in India, loans should be 

 granted, since it is well that those who 

 incur this expense should be kept out ot 

 the usurer's grip. But prudently 

 managed Societies will avoid loans of 

 the kind, and it is a moot point whether 

 they are in any case desirable. There 

 are more fundamental difficulties. Mr. 

 Wolff complains that the Act is defec- 

 tive, because it makes an arbitrary and 

 illogical distinction between urban and 

 rural banks, as if locality affected prin- 

 ciples. He insists that there are two 

 essentially different systems, one being 

 that of a bank whose share capital is 

 held by its members, and the other that 

 of a society which borrows money on the 

 strength of the unlimited liability of the 

 members. In the latter type unlimited 

 liability is an indispensable feature. 

 " You cannot blend the two systems," 

 writes Mr. Wolff ; " you cannot take a 

 little from one and a little from the 

 other and compose a mixture.' Unfot- 

 tunately a blend has been frequently 

 attempted because those who have 

 organised Co-operative Societies are 

 inadequately acquainted with their 



root principles. Happily we have as 

 Director of Credit Societies in Bengal 

 Mr. W. R. Gourlay, whom Mr. Wolff 

 eulogises as " a thoroughly competent 

 man" who has studied the Raffeisen 

 system in his own home. This being the 

 case, we hope that Mr. Gourlay will not 

 be removed from a post in which he will 

 be able to put co-operation in Bengal on 

 a thoroughly sound footing.— Indian 

 Agriculturist, June, 1908, Vol. XXX., 

 No. 6. 



CO-OPERATIVE CREDIT SOCIETIES. 



Report on the Working in the 

 Madras Presidency in the 15th 

 Month ending 30th June, 1907. 



During the period under report, thirty- 

 six new societies were registered. Of 

 these twenty-four were rural and 

 twelve were urban. All the rural 

 societies Ave re based on the principle 

 of unlimited liability. Most of the 

 new societies were started in districts in 

 which similar institutions were already 

 in existence. The aggregate number of 

 members rose from 2,733 to 6,439. Of 

 this number 31 per cent, were agricul- 

 turists, and 37 per cent, were those who 

 partly followed agriculture and partly 

 other occupations. Besides the paid-up 

 share capital of these societies, fixed 

 deposits were borrowed on interest from 

 5 to 9 per cent. More than two-thirds of 

 these deposits were contributed by the 

 members themselves. The amount lent 

 by Government was nearly as much as 

 the share-capital and fixed deposits of 

 these societies. 



Certain concessions granted by the 

 Madras Government have raised the 

 prestige of these societies in the eye of 

 the public and have created a feeling of 

 confidence and security. The annual re- 

 ports of the societies with the registrar's 

 audit reviews thereon are published in 

 the District Gazettes, and are supplied 

 free of charge to all rural societies. 

 Remittance transfer receipts are issued 

 at par, so that remittances can be sent 

 without extra charge. The societies' 

 strong boxes can be kept in Government 

 Treasuries for security. — (Editor). — Agri- 

 cultural Journal of India, Vol. III., 

 Part I., January, 1908. 



THE INTRODUCTION OP IMPROVE- 

 MENTS INTO INDIAN AGRICULTURE. 



By D. Clouston, B.Sc, 

 (Deputy Director of Agriculture, Central 

 Provinces and Berar.) 



Government has organized during the past 

 few years a strong department for the 



