References

Agricultural "loans under Act XII of 1884 granted through socktla.-There has been considerable
discussion from time to time as to the relation of societies towarda the agricultural loans made by
Government under Act XII of 1884 to owners and occupiers of agricultural land for agricultural
purposes such as the purchase of seed and cattle. As· the class of men who borrow from co-operative
societies and the objects for which they borrow are practically the same as those contemplated by the
Act of 1884, it has naturally been asked whether use could not be made of the societies in the
distribution of these loans.

A.gricultural/oans under A.ct XIX of 1883.-We have dealt above exclusively with the loans given
under the Agriculturists Loans Act for seed, cattle and so forth. What we have said will, however, to a
large extent apply also to loans under the Land Improvement Loans Act of 1883. These advances are
in larger sums and for longer terms than those made under the Agriculturists Loans Act, and in the
case of individual applications it is perhaps simpler for the loans to be given to members of societies
direct by the Government treasuries. But there is a class of cases in which the loan can more suitably
be given to a society, as for instance when an improvement has to be made by the joint exertions of a
number of peasants and in land belonging to a number of persons. The society through its committee
is able to exert a control which is often most useful over the disposal of funds in such cases and over
the management of the work when completed. We would permit societies at any time to make
applications for loans to carry out large improvements of this character, the law being if necessary,
altered to allow of this being done. The society in such cases would be allowed to fix its own rates for
recovery from members but in view of the security it would hold it would be expected to charge
something lower than its ordinary rates of interest. The loans would be made irrespective of the
presence of funds in the society itself and though they would ordinarily be for long terms such as 10
or 20 years, which are considerably in excess of the terms for which societies normally grant loans,
the society would not be expected to provide corresponding fluid resource as cover for the loans
received but would keep the transactions regarding these separate from the rest of its business.
PG. no.

THE IMPACT OF AGRICULTURE IN BRITISH INDIA