822 
THE TROPICAL AGRICULTURIST. 
[May 2, 1892, 
THE QUESTION OF AGRICULTUKAL 
BANKS. 
A year bss elapsed sioce we published the last of a 
series of articles on *' Popular Banks for India.” In 
those nrtiolas 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, from private Banks and other sources are 
necessary for the development of agriculture ; while 
in Franee, Qermany, Italy, Austria and Bussia the 
peasant-farmers, whether from the vicissitudes of 
olimate, 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 onuses, are generally de- 
pendent on borrowed capital even for current 
operations, and are seldom able to make per- 
manent improvements by moans 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 progress of agricultnre is checked. We ex- 
plained that wherever Popular Banks have been intro- 
duced they have out down usurions 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 
d6100,000;01)0 per annum in Germany, jEISO, 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 in Germany 
and Italy, by the efi'urts of individuals, who saw what 
was need^, insiead of by tbo people tbemselves, «ho 
oould cot start them for lack of enterprise, know- 
ledge, and confidence. We iiroved that the efforts of 
the promoters were jualiflerl by the results, thus 
showing that a popular reform, however ncotssry 
and however possible by the oondiliors of society, 
is not invariably indicated beforeband by any popular 
movement or expression, but may bo brought about 
by extraneona action. Further, ws showed that these 
Banks can bo originated by half-a-dozen men, with 
but very small personal capital, provided they are 
men of integrity and prudence. We pointed ont 
that the principles of the Banks are self-help with 
mntnal gnsranteesk that that seenrity provided by ihe 
moral and material guaroulces of the Associa- 
tion enables capital to be obtained en rca- 
tonable terms ; and that this capital lent 
prudently on abort terms, and in small loans to mem- 
bers of the Association, yields reasonable profit to the 
Association, and inestimable benefit to tbo individual 
borrowers. Finally, we contended that the Banks of 
this dusoription are suited to all classes of indnstrial 
employment in which capital is required fur short 
terms, and that agrioulturists needing short loans are 
on even better terms than other borrowers, since they 
have material aecurity to offer, but that when loans 
are need for long terms, as ferpormauentimprovemonts 
special arrangements are necessary such as the huoni 
tli Tisoro dell' Agiico/Hira of Italy. 
Although we can point to no substantial marks of 
progress towards the attainment of the object speoilied 
in the articles to which we have been referring we are 
satisfied that aomo advance 1ms been made. Mr. F. 
A. Nicholson duiing the ten months’ sick leave from 
which ho hsB just returned has been investigating tbo 
systems ofAgricuitnraland Popular Bunks in vogue in 
Europe. Ue has colleolod a mass of facts and figures, aud 
has made himself acquainted with the latest devolop- 
menta in the systems of tbose two countries ; and 
we now understand that Lord Wenlook’s Govern- 
ment has decided to place him on special dnty willi 
a view to his making a digest of tbo stores of in- 
formation, that be has aocumnlated and reporting 
bow fat the Coutiuuutal systems would bo applicable 
to this country. Of course Popular Banks by them- 
selves are not capable of dealing with nil the de- 
mands of landed proprietors, 'i'hoy can deal only with 
loans required for daily aud seasonal wants and 
with those which arc repayable within two or three 
years at moat ; they cannot fully satisfy those wants 
which concern the permanent improvement of land; 
These require not only a large amount of capital, 
but a very long period for gradual repayment. In 
fact the whole question baa to be dealt with in a 
larger way aud 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 
irito contact with the Lsud Banks, the Credit 
Vender of France and the Landscha/ten of Germany, 
and has been to some extent able to ascertain how far 
the) are able to deal with the demands for capital of 
the agricnlturists of Europe. Bis special work will 
involve not merely a consideration of what is being 
done in this direction in other countries, but a larger 
knowl- dge of the conditions of this country and a very 
careful application of whst has been found possible in 
Europe to the conditions as found iu India, with, at 
tbo same time, a comparative study of the laws of 
other conntries with a view to such legislation as may 
hereafter be found necessary for adapting snob Banks 
to the wants of rural India. The question of legisla- 
tion is ot course a very difficult one. Even 00 the 
Oontinent, where these Banks have been not 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 
forma of Association and legislation to correct 
the previous faulty enactments. Probably, however 
it is iu the social conditioiia of this country that the 
greatest difficulties will bo found* However perfect a 
scheme it cannot but fail if the men who must work 
it are found wanting, wliile, on the other hand, even 
au imperfect system will meet with evcntusl success 
by the gradual elimination of errors nud imperfec- 
tions, if only there he fonnd in India business-like 
fooial reformers snob as have made credit on reason- 
able terms a pcasibility and a fact in Europe even 
for the smallest farmer, and the most usnry-ridden 
community ; men of action as well as men ot speech j 
men in whom a beneficent philanthropy was added to 
the most Buooeeslul business espaoity. If these men 
are foui d in India — and why rhould they not be f— 
then it will be easy for credit to become really ‘'po- 
pular,” upon the basis of a true banking system, and 
to relegate the old-fashioned money lender with his 
elnraeutary methods of rural finance to his proper 
position. — M. Mail. 
■— » 
NEW NITRATE El ELDS. 
Nitrate of soda, besides being a most important 
factor in chemi.stry — it is converted into saltpp.tre, 
aud is extensively used iu the roamifsclure of ammu- 
nition, he . — is one of the most highly roncentratud 
of nitrogenous fiitilizirs, an.l is tbo more valuable 
for the rca*'Oii that the nitrogcu is not dissipated by 
exposure to the atmosphere. The remarkable deve- 
lopment during the past few years ot the nitrate in 
dll-try of Chill, 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 tho globe- The origin of nitrate 
has given rise to various coi.jootures hut most gco- 
logi.sts seem to favour tho theory of its formation by 
a peculiar deposit, partly organic, partly inorganic, loft 
by the sea on recoding from the land iu prehistoric 
times. Nitrate, being readily soluble iu water, the area 
where it may be sought with any degree of success 
ia ^necessarily circumscribed ; the principal rainless 
regions, in addition to tlm Paoifio slopes of the Andos 
ill .South America, comprising vast arid territories 
iu Noithoru India under tho shadow of tho Hima- 
loyas, and the desert plains of Central Africa. It 
has been stated that the calioho. forming process ia 
now prooeodiug ou the VVestoru Coast gf tho AfncAh 
