April 1907.] 



251 



[Miscellaneous, 



CO-OPERATIVE CREDIT SOCIETIES ACT. 

 According to the United Provinces Report on the working of the Co-operative 

 Credit Societies Act for the year 1905-Oti, the number of these Societies has increased at 

 a remarkable pace. In the previous year there were only 223 Societies, many of which 

 were said to be in a moribund condition. This year's returns, however, show that 

 before the end of March, 1903, 358 societies had been registered, and the assets dealt 

 with amounted to Rs, 201,073, as against Rs. 75,603 in the preceding year. With 

 regard to the total amount of the reserve we are left in the dark ; but it is stated in 

 the Report that during the year amounts aggregating Rs. 2,307 were transferred to 

 the reserve fund. The steady growth of this fund is, as the Chief Secretary to the 

 Government of the United Provinces points out, of the greatest importance, and 

 the natural inclination of the management to include profits in their working capital 

 instead of transferring them to the reserve must be resisted. Meanwhile, it is 

 satisfactory to note that the excess of assets over the liabilities has reached the 

 figure of Rs. 15,429 ; and, although this does not all represent profit on working — for 

 it includes the entrance fees to the amount of over Rs. 4000— it is a substantial sum 

 considering how short a time many of the societies have been in existence. Another 

 encouraging sign is that central or district banks have now been started in thirteen 

 districts, and that there are village banks in nineteen other districts. The experience 

 of the past year suggests that development in the future will be mainly on the lines 

 of the central or district banks, with affiliated societies gradually spreading as 

 branches or agencies throughout the locality served by the central bank. Compared 

 with other forms of societies, the central attracts more capital, as it affords greater 

 security. It also offers a solution of the difficulty of keeping proper accounts, which 

 has been experienced by so many village bauks, and its operations can be more 

 easily supervised by the Registrar and his inspectors. It is, further, very satis- 

 factory that in the case of several societies— the Report mentions five central 

 banks with 151 affiliated societies— the members have agreed as a condition of 

 their membership, to compulsory deposits depending either ou the rent they pay 

 to the landholder or on the number of ploughs they own, payable at harvest time. 

 This will not only in time add largely to the capital available, but will give each 

 member a personal interest in the prosperity of the bank and will induce him to keep 

 a watch over its operations. So far, the most important institution, from the 

 p^intof view of the extensions of its transactions, is the Moradabad district bank. 

 Temporary and limited though it is, the guarantee offered by the Government has 

 given confidence to the people, and there seems little prospect of any call being 

 made on Government for assistance in paying the annual dividend. It already has 

 a reserve fund of nearly Rs. 600, and shows a balance of assets over liabilities of 

 Rs. 1,550. More capital will be required, but it seems probable that there will be no 

 difficulty in obtaining this locally. The Benares society of silk-weavers is also a 

 very promising institution, but it will have far greater difficulties to contend with 

 than an ordinary agricultural society. Of the smaller institutions the Bargarh 

 central bank in the Banda district is especially worthy of note. Altogether, the 

 Report shows that considerable progress has been made during the year, that the 

 value of joint responsibility and co-operation is appreciated, and that the security 

 thereby afforded will attract capital at moderate rates of interest- When the 

 system has attained a higher degree of development, then it may reasonably be 

 hoped that the lot of the peasant will receive permanent improvement. — The Indian 

 Agriculturist, Oct- 1, 1906, 



33 



