The daily morning journal and courier., 1901-12-16
COOPERATIVE BANKING IN IN
 TJA

The report issued by the committee
 which sat for six weeks at Simla to
 consider the question of the establish
 ment of agricultural banks says that the title of "co- operative credit socie-
 ties" is preferable to that of blanks" :" and the committee are of opinion that
 the efforts of the government should
 not be limited to encouraging the estab- 1 lishment of purely agricultural socie ties. The Italian cooperative banks were first started in towns, and, taking into consideration the result achieved
 by them, endeavors should be made to
 encourage the formation in India of
 urban societies working on co-opera-
 tive lines. The object is twofold. They
 would meet an existing want in provid-
 ing medium somewhat more profita-
 ble than the post-office savings bank
 for the accumulation of the savings of
 clerks and artisans, thus serving use-
 ful and much needed incentive to thrift.
 The Madras funds indicate what may
 be achieved in this direction. One of
 the main functions of such banks in
 Italy is the loaning of capital to rural
 banks. There is no reason why urban societies in India should not similarly provide funds for village societies. If this result could be attained the neces-
 sity of government aid to rural socie-
 ties would be diminished, while the vil- lage societies on their side would play the part of agents of the urban society and so meet the difficulty of acquiring local knowledge, which is at present the ain nhct tn bo Df banking, and would furnish a secure and profitable investment for the sur plus funds of urban societies. The committee considers, therefore, that the establishment of urban cooperative as- sociations for the collection and loan ing of capital either to their members or to village associations within the district in which they are situated is desirable and should be encouraged.
 Hard and fast rules for the institu- tion of cooperative credit societies throughout India cannot be laid down, since due regard must be paid to the local conditions and circumstances of the various provinces, which differ widely both among themselves and from the conditions which prevail in Europe. The committee has not there fore, found it advisable to attempt to follow too closely the lines of any of the various systems successfully estab- lshed in Italy and Germany.
 On the question of limited against un- limited liability it is impossible to for mulate any recommendation of a uni versal character. Limited liability might in some circumstances prove more attractive than unlimited. The enters into considerable de- tail and advocates the formation of so- ability, for urban needs, while favor ing institutions with unlimited liability without shares for rural districts. in both cases should be by election, limited to residents of the same town or village or group of vil- | lages. Government aid in the shape of | loans on securities of the societies l should be limited to two thousand ru- pees, or half the amount actually sub | scribed for share capital or deposits. | When the liability is limited these 1 loans would be repayable with interest | after two years, but suspension of re- payment would be permissible for spec al reasons, such as famine. Tn the | ,ase of societies with unlimited liabii- .y, advances would be made under ta- lavi rules. With view to encourage | thrift the shares and deposits of mem- oers of registered society should up | 70 d certain small amount be free from lttachmnt of any description, whether 1y a court of law or by a revenue off ,er. But as a check upon fraud and to prevent the deposit of funds or d sub for shares merely with the ob- ect of avoiding attachment, exemption should be only up to one hundred ru- bees, such money having been with the i society not less than twelvemonth.-- Correspondence of the London Times.
 SETTLED BY TWINS