822 
THS TROPICAL AGRICULTURIST. [May 2, 1892. 
THE QUESTION OF AGRICULTURAL 
BANKS. 
A year Las elapaed since we publishes the last of a 
series of articles on " Popular Banks for India." In 
those articles it was our object to show that in all 
countries farming must be assisted by credit, especially 
for all permanent improvements. Even in England 
and Scotland (where the landlord's capital finds the 
land, buildings and improvements loans from the 
Treasury, fiom private Banks and other sources are 
neoessary for the development of agriculture ; while 
in Prance, Germany, Italy, Austria and Enasia the 
peasant-farmers, whether from the vicistitudes of 
climate, from the laws of inheritance, from the weight 
of taxation and rentals, from the smallness of the 
farms, from misfortunes such as disease of cattle 
and crops, or from other causes, are generally de- 
pendent on borrowed capital even for current 
operations, and are seldom able to make per- 
manent improvements by means of their own capital. 
To this common lot of peasant farmers the Indian 
ryot is no exception. We showed in those articles 
that wherever a proper system of banking has not 
been introduced, the peasant farmers are universally 
fleeced by the money-lender, or " exposed to the ex- 
cesses of the most unbridled usury," as in Italy, and 
that the progrees of agriculture is checked. We ex- 
plained that wherever Popular Banks have been intro- 
duced they have cut down usurious interest, bridled 
the money-lender, created and strengthened habits 
of saving of business, of co-operation, and of 
mutual confidence, and are distributing hoarded and 
barren capital in immense sums — probably above 
£IOO,000;000 per annum in Germany, £50,000,000 
in Italy, where they are of very recent origin — 
to those who have need of it, but to whom it 
was hitherto inaccessible. We showed how these 
Banks were invented and started, both ia Germany 
and Italy, by the efforts of individuals, who saw what 
was needed, insiead of by the people themselves, who 
could BOt start them for lack of enterprise, know- 
ledge, and confidence. We proved that the efforts of 
the promoters were justified by the results, thus 
showing that a popular reform, however nectsary 
and however possible by the conditiors of society, 
is not invariably indicated beforehand by any popular 
movement or expression, but may be brought about 
by extraneous action, Further, we showed that these 
Banks can be originated by half-a-dozen men, with 
but very small personal capitalj provided they are 
men of integrity and prudence. Wo pointed out 
that the principles of the Banks are self-help wilh 
mntn»l guarantees; that that security provided by the 
moral and material guarantees of the Associa- 
tion enables capital to be obtained cn rea- 
Eonable terms ; and that this capital lent 
prudently on short terms, and in small loans to mem- 
bers of the Association, yields reasonable profit to the 
Associaiion, and inestimable benefit to the individual 
borrowers. Finally, we contended that the Banks of 
this description are suited to all classes of industrial 
employment in which capital is required for short 
terms, and that agriculturists needing short loans are 
on even hotter terms than other borrowers, since they 
have material security to offer, but that when loans 
are need for long terms, as forpermanentimprovementa 
special arrangements are necessary such as the huoni 
di Tesoro dell'' Jrjricoltura of Italy. 
Although we can point to no substantial marks of 
progress towards the attainment of the object specifldd 
in the articles to which wo have been referring we are 
satisfied that some advance has been n)ade. Mr, F. 
A. Nicholson duiing the ten months' sick leave from 
which he has just returned has been investigating the 
systems of Agricultural and Popular Bauks in vogue in 
Europe. He has collected a mass of facta and HgureB, and 
has made himself acquainted with the latest develop- 
ments in the systems of tlioso two countries ; and 
we now understand that Lord Wenlock's Govern- 
ment has decided to place him on special duty with 
a view to his making a digest of tho stores of in- 
formation, that he has accumulated and reporting 
bow far the Contiuontal systems would be applicable 
to this country. Of course Popular Banks by them- 
selves are not capable of dealing with all the de- 
mands of landed proprietors. They can deal only with 
loans required for daily and seasonal wants and 
with those which are repayable within two or three 
years at most; they cannot fully Sft'isfy those wants 
which concern the permanent improvement of lani. 
These require cot only a large amount of capita), 
but a very long period for gradual repayment. In 
fact the whole question Las to be dealt with in a 
larger way and on broader lines than those indi- 
cated in the articles published in these columns, 
in which that side of credit commonly called 
" personal " credit was chiefly handled. Mr. 
Nicholson in studying the subject has been brought 
into contact wiih the Laud Banks, the Credit 
Fonder of France and the Landscliajten of Germany, 
and has been to some extent able to asoertiin bow far 
thej are able to deal with the demands for capital of 
the agriculturists of Europe. His special work will 
involve not merely a consideration of what is being 
done in this direction in other countries but a larger 
knowhdge of the conditions of this country end a very 
careful application of whiit has been found possible in 
Europe to the conditions as found in India, withj at 
the same time, a comparative study of tlie laws of 
other countries with a view to such legislation as may 
hereafter be found necessary for adapting such Banks 
to the Wants of rural India. The question of legisla- 
tion is of course a vtry diflBcult one. Even on the 
Continent, where these Banks have been cot only 
under discussion but in working order for over 40 
or 50 years, continual legislation is found ne- 
cessary, legislation to improve and assist the new 
forms of Association and legislation to correct 
the previous faulty enactments. Probably, however 
it is in the social conditions of this country that the 
greatest difBculties will be found. However perfect a 
scheme it cannot but fail if the men who must work 
it are found wanting, while, on the other hand, even 
an imperfect system will meet with eventual success 
by the gradual elimination of errors and imperfec- 
tions, if only there be found in India business-like 
eocial reformers such as have made credit on reason- 
able terms a pcssibility and a fact in Europe even 
for the smallest farmer, and the most usury-ridden 
community ; men of action as well as men of speech; 
men in whom a beneficent philanthropy was added to 
the most successful business capacity. If these men 
are found in India — and why should they not he ? — 
then it will be easy for credit to become really "po- 
pular," upon the basis of a true banking system, and 
to relegate tbe old-fashioced money lender with his 
elementary methods of rural finance to his proper 
position. — M. Hail. 
■ ♦ 
NEW NITRATE FIELDS. 
Nitrate of soda, besides being a most important 
factor in chemistry — it is converted into saltpetre, 
and is extensively used in the manufacture of ammu- 
nition, &e.— is one of the most highly concentrated 
of nitrogenous fertilizers, and is the more vahiable 
for the reason that the nitrogen is not dissipated by 
exposure to the atmosphere. The remarkable deve- 
lopment during the past few years of the nitrate in 
dubtry of Ohih, where the hitherto only known depo- 
sits of caliche (the crude material) exist, has directed 
attention to the possibility of finding the mineral in 
other quarters of the globe- The origin of nitrate 
has given rise to various conjectures but most geo- 
logists seem to favour the theory of its formation by 
a peculiar deposit, partly organic, partly inorganic, loft 
by the sea on receding from the land in prehistoric 
times, Nitrate, being readily soluble in water, tbe area 
where it may be sought with any degree ot success 
is necessarily circumscribf d ; the principal rainless 
regions, in addition to tho Pacific slopes of the Andes 
in South Anaerica, comprising vast arid territoriea 
in Northern India under the shadow of the Hima- 
layas, and the desert plains of Central Africa. It 
has been stated that the caliohe-forming process ia 
DOW proceeding oa the Western Ooast pf tbe Africaa 
