Agricultural Finance <fc Co-operation. 324 



[October, 1911. 



the unabated rigidity of caste prejudices, 

 require rapid extension of co-operative 

 credit principles and practice, not only 

 for the benefit of the agricultural popu- 

 lations, but the sociological advance of 

 all classes, not excepting the depressed 

 classes of Hindus. Each village, if suffi- 

 ciently large, and each group of small 

 villages throughout the length and 

 breadth of India should have a People's 

 Credit Society with a Central People's 

 Bank for each group of such societies. 



Credit Societies and National 

 Advancement. 

 Who, however, are to take active 

 interest in the formation of other Co- 

 operative Credit Societies ? The masses 

 in all parts of the country are ignorant 

 and illiterate, and sufficient efforts ai e not 

 being made to spread education among 

 them. The index of national progress 

 and national prosperity is improved 

 agriculture and industry, and a thriving 

 peasantry is an essential element of 

 progress. The general public, especially 

 the higher and literate classes, are 

 deeply interested in national advance- 

 ment. Philanthropists and public-spirit- 

 ed men should, with all earnestness, 

 come forward to reform the agricultural 

 and labouring classes, to elevate their 

 social and moral status and lead them in 

 the ways of improvement. Thus only 

 will they effectually minister to the solid 

 and permanent wellare of India. The 

 present situation is highly depressing ; 

 and although the extension of Co-oper- 

 ative Credit Societies may be the 

 panacea for all evils, it must be admitted 

 to be one of the most powerful agents 

 for national improvement. The progress 

 aheady made in the establishment of 

 People's Banks and Co-operative Societies 

 is mainly due to volunteer work, but 

 the educated classes must more largely 

 interest themselves in the extension of 

 the principles of co-operation and self- 

 help. Much has been done by the Regis- 

 trars of Co-operative Societies and their 

 able assistants. Our hearty thanks are 

 due to my friends, Messrs. Gourlay, 

 Buchan and J. Mitra in Bengal, and Mr. 

 K. C De in Easterh Bengal and Assam, 

 and we expect greater as well as conti- 

 nuous help from them and their succes- 

 sors (changes are so constant in the ser- 

 vice). The chief executive officers of the 

 districts also deserve our warmest t hanks 

 for the interest they have always 

 evinced, but more volunteer work from 

 Indians themselves is absolutely needed. 

 In the operation of principles of self- 

 help, the less of official assistance and 

 intervention, the better. The desire 

 and active step for national improve- 

 ment must come from within to be most 



effective. I earnestly request my edu- 

 cated Indian brothers to come forward 

 as a " salvation army " for forming more 

 associations for co-operative credit and 

 self-help. "It is self-help," said the 

 great William Gladstone, " which makes 

 the man, and man making is the aim 

 which the Almighty has everywhere 

 impressed upon creation." We must 

 train the people to trust each other and 

 train them to be thrifty. "It is thrift 

 by which self-help for the masses depend- 

 ent upon labour is principally made 

 effective. In them thrift is the symbol 

 and the instrument of independence and 

 liberty, indispensable conditions of per- 

 manent good." The educated classes 

 must work to create habits of self-help 

 and thrift in them and feelings of 

 mutual confidence and trust and mutual 

 help. 



Credit Societies, however, should be 

 cautiously extended- The present Act 

 of the India Council of 1904 is restrictive, 

 but it has borne abundant fruit. The 

 Act now requires amendment, as the 

 time has come tor rapid expansion of 

 Co-operative Banks ; but the people 

 require preliminary education, and they 

 should be made to understand their use 

 before they became a society. I am 

 always afraid of beginning with a flash, 

 because a flash generally ends in smoke. 

 I wish to be sure. 1 wish to have 

 solid foundtion, notwithstanding that 

 we may be slow. Volunteer workers 

 should always be careful, and the princi- 

 ples of co-operative credit as enunciated 

 by great masters of this department of 

 political economy, Schulze, Delittzsch, 

 Raiffeisen, and Wolff, should always be 

 kept in view. Small beginnings in each 

 district will serve as sufficient lessons. 



The Incubus op Usurious Interest. 



The initial difficulty in the formation 

 of associations is the almost inextricable 

 indebtedness of those very persons to 

 relieve whom should be its first endea- 

 vour. The incubus of debt, consisting 

 mainly of usurious interest and com- 

 pound interest which swell the burden in 

 geometrical progression, is not unfrequ- 

 ently too heavy to remove, and persons 

 with such burdens on them are generally 

 the most troublesome members. The 

 greatest caution is necessary in dealing 

 with persons who are practically the 

 slaves of mahajans. The money-lender 

 is generally a Shylock, and mercy is a 

 rare element in his mental constitution. 

 The present India Act for the relief of 

 insolvent debtors is not available to 

 those whose debts are less than Rs.500, 

 and very few of the ryots or labourers 

 can obtain protection under the Act. 



