R E P O R T 1 . 3 ; -••;• v v w

v t-1, „ :", ^:£si

ON THE

WORKING OF CO-OPERATIVE SOCIETIES

IN

B I H A R A N D O R I S S A

F O R T H E Y E A R

1918-19.

'l A3 4

PATX-l.

Sb'f HUIXIf BWKT, GOVKIiHMKNT TBISIIBJ, MHAll ^ D OHI38A

1019.

[Pritf#—•Indian, £<;. i , English, 2#.]

* •

E T E P O R T

ON THE

WORKING OF CO-OPERATIVE SOCIETIES

, IN \

. B I H A R A N B 0 R I S S A

F O R T H E Y E A R

PAT,*A :

5UPERINTEBTDEKT, GOYEBNMEST PBIHTIKQ, BIIUB AKP0R1S8A

» '

1919.

[Pricfi—Indian, Me. 1 ; English, 2a.]

9-

Agents for the Sale ot Books published by ths Bihar and Orissa Government.

Agents in India,

(1) Messrs. Tiacker, Spink & Co., Calcutta.

(2) H e m . W. Sewrnun i . Co , Calcutta. •

(3) 3[esars. S. K. Lali.ri & Cft. College « * « * . Calcutta.

(4) MCBBTB. A. M. & J- EergnSoD, Ceylon.

(61 Messrs. R- Cambray & Co., 6 and 8-2, Hosting* Street, Calcutta.

(6) Messrs Tbompa™ i. Co., Madras,

f-1 Mcsa-a I) B Tarnpnreralo, Sons S, Co., 103, Meadow Street, Fort, Post Uo\ >o. 18. ttarobay.

(8) Messrs. M. C- Sircar i. Bona, 7J, IlnrtUou Koad, Calcutta.

(9) Prontietor of t!ie JJownl Eiaborc Press, Lucknow.

(10) Messrs. 31.Si. Eurman &. Co., Bnnkipnr.

(11) Bubo Bin) Dayal Agwnglo, IS*, Katra Road, AUnJiabaA.

(12) Standard Literature Co., Ltd. , 13/1, OH Court Honae Street, Calcuttti.

(13) lounger of t i e Indian School Supply Depfit, 309, Bow Bazar Street, C.Jcutta.

(14) Messrs. BnttcrwortU & Co., Ld., G, Hastings Street,

(IS) MCBBIS. Bam Krishna A Sons, AnlrVili Street, Labor a.

Agents In England.

n ) J leasts, i C o i A f t S Co, Ltd., 10, Ora l i s Street, L e i s t e r (7) Messrs. Hemy S. King & Co., G5 Comhill, London, E. C. 1 fctiuirc, London, W. C. fell u l i e

/ol Ycssra Kf"in. r M l - Tl 'en< '11. ^ rn'mT & Co., 08, Curler ( " J Lane/Lundon, E. C. (Oriental Department), mid 26,

Museum Sticet, London, \V. C.

(S) H'-Pi- Qnwitili. ' 1 , Grafton Street, Sow Bond Street, London, W. C.

Ml Messrs. P- S- K'fB * S™' 2 a n ' 1 4 ' C r e t t t S m i t ' 1 s t t s c t , Weston ustut, London, S. W.

"•) Mr. E . B . Black well, 50-51, Croud Street, Oxford.

(0) Messrs. Deiguton Bell & Co., Ltd., Tiiuity Street, Cambridge.]

(8) Messrs. GrindUy k Co., 54, Parliament Street, London, E.TV.)

(S) Mesa-a. \T. Thsclcer i. Co., 3, Creed Lane, Ladgate Hill, London, E C .

(10) Messrs. Lnznc i, Co., 40, Grout Russell Street, London, W.C.

(11) Messrs. Oliver and Boyd, Twccddale Court, Edraourgli.

(12) Messrs. E. Pcnsoufay, Ltd., llfl, Grafton Street, DuMrn.

;13) T. FieliOr Uniriu, Ltd., 1, Adclpbi Terrace, London, W. C.

Agents on the Continent.

(1) M. Err.ea'. Lorou*, 25, Rue Uonauarie, Paris, Franco. (2)' Martinis Hijlioif, The Hague Holland.

No. 13977.

EROX.

KHAN BAHADTTE JVIOHI-tJD-DIN AH HAD,

OPFG. REGISTSAR OF CO-OPERATIVE SOCIETIES,

BIHAR iND OKISSA,

THE SECRETARY T6 THE GOVERtfUEXT OF

B I I I A B A ^ D O R I S S I ,

REVENUE DEPASTME\T.

Bated JPattia, the Wi Noseaibv 1019

I HAVE the honour to enclose herewith th§ report on the •work d

Co-operative Societies in Bihar and Orissa for the period ending this 31st HA^V

1919.

I have the honour to be,

SIR,

YOUI most obedient Ser>aut,

lUOIII-UD-DIN AHMAD,

Offff Tteg,et,at

EBRA.TA.

m In page 41, li™ 9- ^ ™PnaiCea II aad IU " »«<*

(.) In s U t o ^ t Aj col -n i, » ^ t ft* g«»d total

(8)IuBW*WBrt G, column Z agwnBfc M u z ^ p u

PROVINCE OF "

BIHAR & OEISSA Scale 1 = 8 4 Milee

vDABJEELIHfi

warm: . V e ; ;•:.:! : ^ ; • ' . , | ; t \-i " i -^B- -^ ' {Tr r ! *""""•- " ' ^ \

SlRBHUM

ft)

REPF.KEWCETO (4UMSE33

KARAIKt'LA 5 T IQ1RIA

NILGIBI 6 A+HGARH

NARSINOHPUH •; KHAMOPARA

BARAMOA a RANPUW

Btnuiteiy-ui vising , ,__i

ii JHotricd

,. Bub-rtiilniou

BtBtu. . . . _ _

Bnb-iliu'dwni -stil ta-ofti*Tt Bwistiw ftoai S w 19 shown am, 1

» - . »t»H , . .K/Zffl * * „ Mto« „ ..i^Mf

- astoffiG , . DH3HH

/Jncograplteii m, Iho fl 4 O.D.O. • to!/,? £!H>3f !9

REPORT ON THB

WORKING OF CO-OPEMTIVE SOCIETIES

IN

BIHAR AND ORISSA

F O R THE Y E A R

1918-19.

IHTBODTJCTIOJT.

1. This la the 7tb Annual Report of the (Voperative Department and covers the period of 12 months from 1st June, 1918, to 31st May, 1919. I 'was in charge of the Department throughout the year excepting a brief period of sis weeks from 21st October, 1918, to 1st December, 1918, when I was on privilege lea^ e and Mr. N. K. Ray, Deputy Registrar at headquarters, acted for tne. Except for this period Mr. Ray continued in his office as Deputy Regis­trar at headquarters. Babu Hari Das Ray took over dharge as Deputy Registrar oC the Orissa Division on 5th June, 1918, and worked throughout the year. Munsht Sbanishir Jang Bahadur who succeeded Maulavi Saiyid Paza Kanm, held cbarge of the Patna D«i tion, irom 21st July, 19iR, to the close of the year. Tirhut, Bhagalpur and Chota Nagpur Divisions continued to be in charge respecthely of the Sub-Deputy Registrars, namely Muhammad Abdur Rasbid, Maulavi Saiyid Khalil-ur Rahman and Babu Dulal Hari Ghosh.

2. Toi'rs and Impeciioh.—I was on tour for 197 da\s and was able to visit all the areas where the movement has been established. Mr. Ray was on tour for 37 days as Officiating Registrar and 113 days as Deputy Registrar Babu lEari Das Ray was out for 224 days and Munslii Shamshir Jang Bahadur for 180 days These tours of inspection are of couise essential for the Co­operative Department and all the officers have ungrudgingly spent their time in moving about freely in Ihoir lespectivc areas. I t is only by personal discussion and constant preaching that the benefits of Co-operation can be brought home to the ignorant public aud local enthusiasm stimulated From this* point of view the tours by officers of this Department are invaluable and this is testified to, by the constant nquisilions to ^Ht their areas, niailo | ) T the directors of central hanks and honorary organizers of societies. These honorary vorkore have^fwvly acknowledged the great assistance and'encour­agement they ha\e derived from these visits.

2 -

I I—SuJIHAEY 0$ GENEEAL P K O G E E S S ,

3 The folio-wing table gives a general summary of progres*

Sesr. !ton-Ag[LQuHiiral Agricultural.

I n m i t i .

1917 13 1918-19

1017 18 191S-19

1017-18 1S1S-19

31

+ 10

3,511 3,742

+ 1,231

21.44,436 26,<[-3,08G

+4,97,000

Nwmbei of Societies.

64 1,616 3,044

+ 30 I +d2S

Meniherslup

13,582 13,ifl8

60,778 65,818

+ 1,887 I +5,040

Working Capital.

3,31,783 4,68,573

+ 1,33,790

29,81,629 34,27,003

+ 4,46,-27G

1,701 3,169

+ 163

74.S71 3,023

+3,153

54,60,843 64.92,261

-10,31,113

4. It will be seen that inapite of the adverse conditions prevailing during the year, the progress made is extremely satisfactory. Five hundred and ninety-one societies were registered during the year. Of these 169 did not commence work. Excluding these, the rate of increase works out to 27 per uent. Thirty non-agricultural societies, 21 guarantee unions and no less than 10 central batiks started work during the year. OI these the Cuttack and toe Kandrapara Central Banks were registered at the close of last year. Of the new banks, two were started in the Monghyr District, at Eegusarai and Sheikhpura, two in the Orissa Division, viz , at Furi Sadr, and Sambalpur Sadr, two in the Patna Division at Arrah and Buxar, one in Tirhut at Bettiah, and one at Hazari-ba°-h in Cliota Nagpnr We have also prepared the grounds for several other new banks. Societies have been newly organized in Sitamarhi and Darhhanga Sadr. Jamui and Motihari have made considerable progress and are each ripe lor a Central Bank and grounds have been meparedatSasaramin Arrah Ei&trict and at Bhadrak in Balasore District. We are sure to have in the near future a bank at each of these places, A central bank has in fact been registered at Motihari, Darbhanga and Bhadrak since the close d the year. The rapid development of Central Banks is a happy augury to* the future. 1 am now convinced that we cannot have a central bank too soon in an area, provided only the right type of men a r e

mailable to serve as director. The central bank ensures steady and sound evclopment. I t not _ only removes, the greatest obstacle experienced hv ntinfo™ nni'finizers. viz. that or prompt financial h«l

without wliu" <•< "»- - .^.^, ™UHica mviu-tauiy acTcrioralp n \~' ^ves the enlightened men ot the place a convenient opportunity nf i a ! s o

what the objects and possibilities of the movement aie It K c o " i n g who oulist as diiccrore to demote some thought on nr „,„,„ ? m P e , s those and put some Mibstaiitial woik to their credit ° ^ l a t n c problems

? H E HASH OF PBOGBBSS.

5. Ido not think Dial the rate of p r n ( « « „, .h. p „ . been unsafe Factory when the special diuWtipV * L l 1 0 / " V 1 1 ^ 19'2 has contend with are W rami ItTh"lrf L W ? e F l o v i l ^ had hoe., handi^ l l,y beir.g arched t u i \ * ™ ' » « that *Chas o, one part oi the old province oh* ° * % I J ^ f T h o d^M1Z a d tins alone ™ a .ufflowm m $ j £ t X * ^ ^

province from Bengal. The new Province had to turn its attention to development by a re-organisation in every department. Education was most backward; the agricultural population was steeped in ignorance and even the educated class who were accustomed to take their^ cue from Bengal, had not learnt to thick for themselves, while a sense of patriotism had yet to be created. Under these circumstances progress must be necessarily slow at the beginning The educated public had hardly grasped the objects and potentialities of the movement as an economic and moral factor for the country's uplift, while the masses were suspicious and slow to appreciate its benefits. The majority of the Mahajans and the landholders were at the outset either apathetic or actively hostile. The idea of banks and their methods and uses were entirely foreign to the people and they were naturally nervous to put their savings in the new co-operative banks. E Ten now, the Provin­cial Bank starves for want of deposits, though in the sister province of

money. Further, if our Bengal a similar institution is overflowing with u . a

rate of progress is compared with those o£ other provinces it will not appear in any unfavourable light. The following comparative table vt ill be fouud interesting :—

COMPARATIVE TABLE OF PROGRESS.

Nimoi ol Piorfoces.

1

1013-13.

Central.

2

Total num­ber if

6ou criei.

8

K 17-IB,

Central

4

Tots] num­ber or

Societies.

s

Increase.

Ccntrtl

6

Total B bi.ro

Sooiet

7

Madras Bombij ... Jtoigal Tihnr and Oriaaa United Provinces Punjab C cut ml Protiaoea

II 4

17 8

5) 34 3b

1,067 622

1,103 585

2,479 2,81 L 1,414

SO 10 &3 21 51 45 33

2,G9S 1,G4» 9,y.n i,7<« 3,« i ' 3, 'J '3 3,uJ4

82X 150ft 212ft Ul%

Nil 32£

DscicLee

1525E 2 U S 2 G% U'lfc

•>s%

It IS

Inc?-ease in percentage in Bihar and Orksa during 1918-1!).

NuDjher on S 1st liny

1S19

Increase over lust

year

Terceriane of wcreaso over

last year.

Central Societies ... Guarantee Unions

10

21

47 27

l i » 0

6. Tbis has not been written to exaggerate the work of the Registrar but to stimulate public interest in the movement. What I wish to emphasise is that our progress is not by any means bad, but that in order to keep up the rate and to make the movement progress on sound linei and its benefits lasting it is necessary to have larger and more enthusiastic public support. 1 feci sure it is not too much to expect from the public spirit of Bihar that leaders of public opiniou here will focus their attention on this all important subject of Co-operation and endeavour to enlist for the movement public sup­port both in the matter of men and money.

M'OILSING OF SOCIETIES.

(a) — Provincial Bank.

7. The working of the Provincial Bank has been very satisfactory The total working capital increased from Us. 6,-1:8,689 to Us. 6,^5,315 and tup aggregate hrvesknents on loan and cash credit account, amounted to Bs. 4,78,304 There way a falling oil in the Bank's im eminent hy Rs. 3,091 Thi • was due to the fart that tfce central baulcs were given the permission to take deposits from outside their jurisdiction. The poi mission was news-irv -W there wns a latao withdrawal by the Catholic Miwon Society of J&ai clii [u

pay oil'then members as they were being discharged from the labour oor«s

and returning hcrac and also because the Uireci or& thought that the societies a/id

4,

central ban t s in newer areas required preference in the matte* of loans U may be explained here for the benefit of those who do not understand the sjstem that there is a friendly arrangement between the Provincial Bank and its affiliated cential banks by which the latter am not to receive deposits from outside the area they serve, except with the leave of the Provincial Bank. The Provincial Bank exists for the central banks and the latter cannot possibly do without it. I t is only fair therefore that it should receive reasonable patronage. There is no object in taking deposits from outside when the Provincial Bank car, give all necessary financial help. The idea is to let central banks tap all the local resources within their own jurisdiction and leave the Provincial Bank to collect deposits from the whole province B u ' when the Provincial Bank thinks that it might not be able to meet all the demands made on it , i t allows the Central Banks to take deposits from outside their-area. The latter have been able hitherto to attract all the money they needed by the h ^ h e r rate of interest they are able to offer. During the j e a r the Provincial Bank 's deposits were reduced from Es. 4,54,570 to Es 3 90 342 owing to the large withdrawal by the Catholic Mission Society and as' there Mill be further withdrawal during the year, the resources of the Provincial Bank are likely to be strained to its utmost limit to meet the expanding demands made on it by the increasing numbei of societies, unless the bank receives the support it deserves from the monied class of this province The bank can of course got enough money from Bengal and other provinces but if it has to go outside for such help it *iU be a serious reflection not onlv on Hi public spirit and patriotism of the Bibar public but on their power of d isc / mcn t in their choice of investment. Quite apaifc from the philanthropic o b w " for which the Lank exists, one would have expected at least t W its security would appeal to the business instincts of the local public Th Provincial Bank does no speculation. Alt its loans are in co-operative banks ih latter finance only co-operative societies consistiug of members who a carefully selected for their honesty and industry and who are u l t i m a t 1 pledged, jointly and severally, to make good, up to their last nice a t!v loss due to the failure of anv one of their members The Bank t- if i a paid up capital of Ea. 1,14,400 a u d i t s assets are guaranteed to t h ? tune of 4 lakhs by men of such high financial position as the Maba™^ n i 7 ol Darhhanga, the Maharaja Bahadur of Hatwa, Eaja Bahndiir Aftf J * ™ n r B a b u P i i t h i C b a n d Lai of Purnea. Besides this, it has a reserv f* ! d

lately invested in Government securities of Rs. 25,000 Anv n 6 , " s e P a " stands banking bus ings ought to k n o ^ that no better securit • * e r " investors of any or her bank. As for the public good w h i c h ? ! ° I 7 *° doing a n d e a n do with proper support, there ought to be no 1 » T * i i s

ledge. The bank exists lor the economic regeneration of t> i ^ ' finance the poverty sh icken and debt-ridden agriculturists of tb p e o P i e ~ - f c o

to revive the old arts and crafts of the place by financing th*m p l ' ° T l n c e » is more, to help people to create a credit for themselves and n u , ! ? ! a t

credit by proving their honesty and capacity for producing W M I / ? ' V S l l c h

reflection or is it not on the public spirit of the men of this nrorin •* " a

an iifctitution lacks enthusiastic support ? l e t the public men of ti, p " * aiiBwer. Atter all, by our acts we shall be judged and not bv <mT

& / 0 T i n e e

Let me onlv mention two facts. The Madhipura Central B n n t ^ fU1Ds' of Ks 83.UU0, of tins the true sons of Bihar have contributed on l v V % 7 T s i t

icst are from Bengalees and Europeans! In the P m v i ' n ^ l ti i t l i 0

tolal fixed deposit ox l is 3,90,3J,2 the Eiharis have c o n t r i b S o r l tto ° f i t S

I have very reluctantly been compelled to nut X + i / y B s ' 2 u ' ° ° ° -trust tha t the tacts will appeal to the sense % „ t • ?? TVT^ I °^7 the E v i n c e . J ' ' ' S e u s e o f Patriotism that exists i£

naiiLcc unu iJJwwencesJ]aifhii/i« 11 ' " 1?™ cent fn W k ,1 , wl.ieb is It , . 3,703 i a o T t o « * P a n d hm e a r r i w I **• 6 851 to IV, iris** the re .pe ibk/SorS^^ 1 1 ' 6 ^ 1 ^ 1 1 ^™- lie rL, F a

- t e n , i o u S j i e b u m r f t ? : ° ° a ^ ^ " ^ H e ' l E T jtsgrwiuir needs audit mn hi* 1SD0W P1™*'Quite in,fi

e , l t U e

a more emmortions \,im7 sol T^' ™7 soon, e i t £ iVM(hll^ for .1 h» >Jiu«l hourly U-^ST^ *m the *£«,&»*** Md

° men which.

(5)—Central Banking InstUvhons. 9, The wortin" of the Central Societies excepting the Piovincial Bank

is summaiised in the following tahle .—

N o m e of U n i o n o r C e n t r a l

J3jmk.

1

I , Rob] h i

S r u n t I

3 K s w a d a <-

i , R a a c h i „

6, J a l i a n i i b a d . ,

6 . B U a r

7 . J l n d l i p a t a

8 . K l m i d n

0 , Harfi

1 0 . G»3» Budr

1 1 , M a u t t H p n r

12 . m i a g s l p n r .

It, T a r n e a ..

i 4 SupauJ.

15 Dua l a t p a r

IS Jn j f ra r

1 7 , A B r a n j i l i i d

IB S l w n n „

IS C a o t a

JO Batoaora

S I Gcip i lgMij , ,

n C o t l a e l t

23 K e n d r a p o r a

2 1 B e t t n

a s l ' a n S a J r

M Arral i

! 7 I t o i i r

38 Soji ibulimr

20 BtgnsflHi

JO, e l i a i k j i p i u i

3 1 l i f l i a r l j i ^ h

ToSi l

N o of afflltitoil aoc-lotlcs.

CD

CI

2

66

80

ISO

156

122

77

67

6 !

JB

»

67

28

44

12

34

48

fl»

S i

4 0

8 7

SB

•

•

•

I,ls0

5 as

a

71

Dl

19S

178

140

99

CO

78

S I

81

eo

64

4 1

07

SO

00

80

101

61

00

15

23

IB

49

m

10

10

H

0

l i

7

' ! , 013

D a l e of K e j l B t i a -

tlOn

1

C M D c c 1909

S G t h U a r 1810 .

L4t!i i l l ; 1010

1 0 t h J U D O

1910

13 tb Oct 1911.

S l h N a t 1 9 1 1 .

i o d S o p 1811

38 nil Mac 1912

80Lb S e p , 1 0 1 3 .

o t h J n n e , 1913

24th M a y I91S

lB th H a ; 1913

17tli ITnr 1914

1314

a t b J u n o 1 9 , 1

SQtUOc t .

IBlh N o v , 1911

MLh F e b IBM

5 t h D o e , 1015

M i l F e b 1910

22nd M i r [917

flth "May 1BJ.B

JS th M a s 19 IS

IS tb T u l ; 1918

Mil N o v I1I1B

0 t h USD. 10 3 .

6 i l i D e c WIS

m l i J o n Iflllt.

£6th J a i l IBID.

l o t F o b 1010

Slh I p r i l 19 i>.

\

S h p n i c a p i t a l p a i d u p

1

6

E a

11,770

21,270

10,000

7 «

17.418

10,711

S7.252

IS , 100

16,761

14,990

16,179

10,090

11,199

9,998

3B.9O0

3,051

4.009

is.aos

1 0 6 0

8,079

3,6aS

•

-

i.wjsn

C3

o

0

Ba

I S 066

21,710

19.600

8,112

2 1 3 7 3

14,300

28.130

IG.IM

•6,0*3

eo,8os

IB 370

11,091

1U«

11,120

93,190

0,119

8,197

23 051

3 0 0 0

0 ,0 'S

7,046

2 , 3 : 3

a.sio

3,433

P40BG

2,227

im

8.189

1,503

2.709

1.735

3.71 SOI

IV o r & n g c a p i t a l .

7

Bs

1 28,919

1,43,790

1,49,583

O0.SH

1,34,760

79,172

09,789

1 01,187

2 S3 OS?

08,208

m.m

72.843

76,173

64,056

2,11,739

7B,060

88,374

1 , 1 9 , 7 0

ss.zn

03 026

6 ! 493

21,11,130

rf

B

K B .

1,40,465

1,87,100

2,00,832

82,oSS

1,61,890

1,07 308

1.17 000

1JBJT1

s,'3 an

03,428

8 7 , 3 0 !

71,989

76,403

eo,ooi

S,16 009

06 .2M

1 0 0 851

1,60,938

97,680

79,071

7 1 9 3 8

20 011

10,703

iftiS

1] 020

7 0 1 2

i.ra

13 163

1 0>

i->-oo

2 as

W 1„,030

Prof i t m a d e

to

9

B s

+317i i

+ 1 , 1 4 0

- 2 , 7 6 *

f 4 3 1

—1S7

—a ooa

+ 3 0 5

4-3,110

+ 8 , 1 1 8

~ 3 t a a

+ 1,148

—1,688

- 2 3 7

+ 820

+ 7 SOB

+ 1 , ° 1 1

+ 0 6 2

+ 3 214

+ 3 3 0

- r l . 0 ' 7

+ 1.S41

-t-21,02

a

10

E o

4 0301

+ 2 , 1 9 1

+ 0 0 3

+ 2 907

+2 ,202

+ 6 , 3 8 6

+»,0B»

+ 4 800

+ 1,876

+ 1 000

+a,oi7

- 4 900

+ 1,B)0

4 2,118

+ I W 0 7

+ 2 , 1 1 '

+ 1 8 4 8

+ 4 , 7 0 8

+ 1,81E

4° ,OS3

+ 3 , 0 1 9

+ 5 0 0

+ 1 0 2

+ 2 7 a

+ 01

•^!i7

- H I T

+ 118

- 9 1

— I J I

— " 0

+ 1 3 i 6

I H t t d t n d puSu

o

11

B a .

elfe

2 5 *

70,6

•

ora »\%

« +

9-i-G

%

»%

1 8 %

8 1 %

0%

Sf +

1«%

" + S

•

' , •

D

13

I t s

B i %

••

8%

9 %

S I *

*S

91%

«X

as

eft

BX

S(+ CIS

a%

1 0 +

7 0 %

...

Roser ra F u n d

13

I t = ,

0 3 2 1

1" 00D

0 4lH

1 7 2 5

5 520

1 2 4 0

6,802

8,106

2.70B

1,610

5,000

2,081

1 911

"86-

0,898

310

1,037

1 0 0 0

201

817

57

a

i*

B B .

0,645

3 3 0 0

9,103

1.SJ*

5 ^ 0 0

1 330

0 / I W

Dj733

*.W3

1,010

nil

at

CI

1£

R s

K.a js

0.000

9.000

i,"s«>

i,B56

1,163

3,900

a ,K&

2,706

900

0,402 6,009

2,001

111

no

esBB

1 309

l ^ l E

•>,050

317

s a l

320

. 1 1

••

[*»

•

2.B54

i an

N i l

1 1 1 0

810

S10

3,(BO

281

217

M l

.

1 9 Sf 07-1 3d,2

1 1

s H

8 B .

= 038

OCOO

B.S9U

1.S31

5 ,811

1 1 8 . !

8 ,900

0 731

4,803

1,6 0

5 32ES

E O S i

1 3 1 1

100

8 .SB

n i j

1.315

2 51U

« 7

400

•'oo

: .

.

1 Po.im

6

10. The rule excluding unrealized interest from the profits of the central banks had the desired effect of making the directors put forth their best efforts to realize at least as much of the interest where no realization of the principal was possible. As the result of this all the banks except in Bihar hare been able to show a dividend. The Bihar bank has suffered from the mismanagement of an erratic bank manager who seems to have kept the directors mesmerised and did very much as bo liked. There was a big loss of Rs. 5,385 owing to a great part of the interest not being collected. But yet the directors were persuaded toldeclare a dividend and the dividend was distributed before the Registrar could intervene !_ If the directors of a central bank allow such enormities to be committed, it ie only too clear that they do not understand their responsibilities or are too weak to exercise their power. The Mnzaffarpur bank has suffered from the same cause, the incompetency of two successive managers. The Gaya bank similarly suffered on account of an unsuitable manager. But the directors have always shown a sense of responsibility and the two honorary offici­a ls Mr. Hadi Hasan and Mr. B. L. Nandkeolyar, have spared no pains to brin°-the working of the bank in order. The bank which has given me most cause for anxiety is the Bhagalpur bank. This bank is suffering from the evil effects of uneautious financing at the beginning. The present set of directors T\UO inherited a bad legacy unfortunately became unduly nervous and resorted'

calculated not only to frighten away members, but" make the members~cTreSa , in the matter of scrutinizing the purpose of the loans and forget the real test

of a good member which is character or of the proper criterion of a good loan ^ hic'h consists in the 'productive use to which it is put. It is a comfort how* over to find that the Collector, Mr. Beal, has seriously taken up the bank's work, and it is hoped that the directors will carry out the constructive su»»eg. tions of tho Kegistrar. The Banaili Raj can give considerable assistance to the bank and this may well be expected from the Hon'ble Eaja Bahadur Kirtya-urind Sing]) who has always befriended the movement and is a guarantee share holder of the Provincial Bank. With the exception oi these four central banlcs" others have worked quite satisfactorily and the directors as a body have shown' a consistent interest in their work and have exhibited a closer acciuainfan and better appreciation oi the principles of co-operation. The five bUt fcTi are Hohika, Uaulatpur, Snpaul, Barh « « Siwan and of these Itohika mat i pheed first in the order of efficiency. Siwan is unfortunately showin" 7 ei^ns of deterioration since Mr. Modan left the Subdivision. As r e ^ r l S 8

new hanks several have begun well e.g., Bettiah, Arrah and Buxw * i t would like to impress on the directors the danger from the eo-operatiVp'S^* ofiicw, of leaving the work to one or two gentlemen. They must if t U wish their Bank to be a co-operative success, all study the subject and' coSrf buio a real share in the direction and management of their bank. ""

11. Their true sphere— Since our last report was put on print, there has be a good deal of discussion over the question of the proper functions of Q c e n t r v ! bank in the ^ lumns of the Agricultural journal. All directors of central banks bboulcl study fhese papers for there aie many interesting issues raised. So far » ve are concerned our position should be clearly understood. Co-oprrators n w desire to lea\s the primary society master in its Own house and thev miiS recognize that too much centralization and domination is had TW ;*u, societies arc entirely fcft to f hemselves from the berinnii* S i f l T i body of members be masters in tLeir own hc , S e S " f i ? T ^ dominated in a *orse Tay by (he d e w andTnJJ , ^ n?* » < * « be own softies ? In this Province it is d e a l t *Tr$ml?u* Pu™bes in their leave tiiu societies entirely to their oiva resomw<ff ft U w o u U fjf3 c r u c % to

that some training is absolutely necessa.T to J r^hT" TcomraGiiCement and

re,pouibihtn'S. We arc also eonWd tint if * ^ bera f r i g h t s and (ran.ed to independence, it is the '• ,. riL n i th(i Katies are ever to ho

° UCS' i h : s cl<™gens realised

7

and constant warnings have been sounded in our Province. But the warnings would bear repetition, as some of our banks do not yet appear to hare fully realized the dangers of too much 'spoon-feeding. As examples of some of these injurious methods, may be mentioned the following :—One central bank passes an order that no loan would be granted to a* society if any one of the members defaults ; another order declares that no defaulter is entitled to a loan, a third insists on every loan being secured by a colla­teral security, a fourth embodies the dangerous theory that aitisans' societies cannot be financed because they possess no properties. The fact is that most of the actual work of instruction has had to be entrusted to paid Inspecting clerks. The methods employed by_ these Inspecting clerks are bad. They generally dictate instead of advising and getting the members themselves to decide after explaining the facts, In the matter of checking loan applications, it is not always clearly understood that the central bank has no business to assess the credit of individual members or interfere too much' with loans sanctioned for individual members. The central bank should only help the societies to fix the maximum credit of each member in thoir annual general meeting after careful consideration of his material as well as his moral asset. Again, in the matter of realization of lasts it is extremely iniu-rious to get loans realized through paid peons and other paid staff of the central bank. The members of the societies must be taught to realize the dues by their own collective efforts, otherwise they will never learn independence or self help. " If local societies are always kept in swaddling clothes ", says 3tr. Iwbank very rightly, " and guarded from every natural accident and error with too grand-motherly a care, they will never learn to stand on their own legs " . Again to quote Hr. Crosthwaitc " A central bank which does not train its societies to independence is not doing its duty and is working on lines which are not only wrong, but injurious to the country ". So to sum up, thp directors should avoid doing too much for the societies except withtho object of training them. They should concentrate their attention on tho methods of the training to be pursued—(both as regards the agency to be employed and the policy to be advocited)—the training for mutual dclibeiatiou and combined action, the training for thrift, the training for self-help and independence. Secondly, they should decentralize tho function of training, supervision and organization and make these ov^r to the guarantee unions as rapidly as they can be formed and trained.

^ 1 (<?) GUARANTEE UNIOSS.

12. The number of guarantee unions has increased from 21 to 42. The progress made is not unsatisfactory but considering the very great importance of these unions, I ean hardly feel satisfied. I am more and more cominccd &very year that if the Co-operative foundations are to be well and truly laid, ^ e must make universal the use of the cementing amalgam provided b"y the guarantee union. Experience shows that the mortar devised by the central bank cannot hold together the vast superstructure that co-operation aims at. The real bond of co-operative union is mutual knowledge, aud mutual trust. This is impossible in the case of societies affiliated to a central bank, situated as thoy are, so far apart from each other and living their own life under varying conditions. Some of our hiro-er neutral banks have 150 to 200 societies affiliated to them. I t can be readily appreciated how difficuk it must be for a central society to supervise" the working of so many societies scattered throughout the subdivision and to assess their credit properly—credit that is to say, bawd not merely on their material assets, but, w hat is more important, from the co-operative standpoint on the members' character and industry. Therefore if co-operative financing'is t« 1»D eot

necessary central purpose. In a small group of societies not far "removed from M C ^ O U U T T I L ^

members and pnnehu* Inow, or have (lie moans of knowing tho cbarwsteV-Lud assets of the members and, vhat is equally important, their actual imam is!

4. Tr, flip case of the oentral banks this intimate local knowledge reqmrements. In the ease o ^ . ^ i s a b e t t e r iDStrunieat for financ-13 impossible. * e n f ™°k= T h a t ia the chief function of the guarantee ing than the central . ^ a^ i g m u t m l ^pervision and instruction, union, the « * « ' r 1 " . u u l i m i t e d liability in a primary society is intended to Jnst as the P ™ ^ 0 * ^ m e r aberH j so the mutual liability in a group of secure mutual ™f™ £ u t u a l supervision among those societies, as indeed societies is likely to ensur j ^ ^ ^ ^ ^ ^ m ^ b e e n

it has succeeded m d o m ^ ^ I c t . o n rf ^ . ^ b y p i m c h f neighbouring understood, i.nt s_ i ^ a T a l u a b l e training ground for the punches. societies f ° ^ ? J ^ n ^ of ideas each one gains in knowledge from tbe other By a mutual_ ^ e ' c n -, rf responsibility. Co-operation also assumes and an edge is put on i n ^ ^ ^ ^ parochial village the spirit is extended a wider b L 1! l o l*.n * T n e ^ e s t in each becomes available to ail. to neighbouring villages.

( f j )_ AGRICULTURAL SOCIETIES.

13 The following comparative table summarizes the progress made during

the year:—

Tee.r.

1

1917-18 ...

1918-19.-

of Societies,

2

1,616

2,0 U

+ 4.38

Numbtr of

Members

3

60,778

65,81S

+ 5,040

Loans mode.

4

Rs.

11,74,929

13,69,998

+ 1,95,009

LoaOB rapftid.

5

Kg.

8,19,480

9,01,279

+ 81,799

Deposit

k members.

Working Capitol. Rwerve.

a r e

Re.

1,90,390

1,94,626

+ 4,236

E B .

29,81,629

34,27,906

+4,46,276

Eg.

S,7 3,641

4,43,716

+ 84,87*

•te ontirfjiptorv The number of societies actually 14. The progress is quite' S J ™ 7 | 1 3 0 f these 169 did not commence

registered before 31st M a j J J f ' 0U1, figures. i t is gratifying to note work and are therefore. txcluflea ^ o l d a r e a s but that several new area* that the progress made l B j i o t w f l ^ ^ g ^ Mmh g ^ S a m h a ] p u r S a d r > have been opened up, e-e ' ' ' t ] ] e ^ r e c t result of the increase by Government and Puri Sadr. ibis nas ^ ^ ^ ^ ^ s o u n d a n d r a p - d d e T e l o p _ of superior stall ana it m j ^ ^ increase of staff made available to the menfc will bear a aire ^ Government with a proposal for the increase Registrar. I I>r0P°fe , .£ ^ t far the Registrar's temporary establishment, of superior stan anu ui. m1- o

IB The total demand during the year was Rs. 17,22,045. Out of this •P« 9 01 279waScollected,whichworksout to 52 per cent., the sam, as last F ' r « i L i n " the abnormal agricultural conditions prevalent during year. ^ U o u s ^ ^o l]ection must be regarded as ei'Lremely satisfactory. ? r l n^^raTlv been possible on account of the very high prices obtained by

Members iu areas where the crops did not fail altogether. It is also to be noted that kists for which extensions arc granted are not excluded from the amount of overdue loans. This gives us a better idea of the' actual inability of tbe societies to pay on duo dates and leads to better scrutiny of the causes than would be the case if all overdues for which extensions are granted were excluded from the figures.

IG. The internal conditions of the societies are also showing unraistakeable signs of impiGvemeni. The number of '• A " class pecitties has increased from 8 to U, of " B " class from U\ to 307 only. The improvement bas been most marked in areas nhere the guarantee unions ha™ beea

9

•established and trained. I attach the greatest importance to the formation of .guarantee unions and I am devoting considerable attention to this line of development. The functions of the guarantee unions have been discussed elsewhere.

17. JSew areas :—Moiighyr—Begwarai and SJieifchpura—.The former owes its existence mainly through the exertions of the Subdi visional Officer Kai Bahadur Dnrga Prashad, who has always evinced a keen interest in the movement and of the Honorary Organizer, Babu Dineish Prashad. In a very short time, cine societies and 'a central bank have been registered. The Sheikh-' pura areawas.developed by the Sub-Deputy Registra--, Maulavi Saiyid Khalil-•ur-B.ahman, who has succeeded in creating considerable enthusiasm among the leading residents of the place. Maulavi Saiyid Imdad Jlusain, the Supervisor, Slaulavi Saiyid Muhammad Jafar, Honorary Organizer, Maulavi Saiyid Murtaza Khan, Honorary Secretary and Maulavi Shah Muhammad Qasim, one -

.of the directors of the hank, have rendered considerable he'p in spreading the movement in this area. In the case of Sheikbpura we have departed from the traditional practice of locating O.T central banks at the headquarters of Districts and Subdivisions. , The societies developed there rapidly and as Sheikhpura was far away from the district headquarters and as there seemed to he a dearth of co-operators at Mongliyr, I assented to the desire of the local-enthusiasts at Sheikhpura to register a central bank there, particularly when one of the leading zamindars of fhe province, Nawabzada Dildar AH' Khan of Hossara.dud agreed not only to father the bank and act as its chair­man but to give the movement his active and whole-hearted support. The societies in the Sheikhpura area are unique in another respect, as, unlike any other in the province they are based on the Punjab system of withdrawable shares. The shareholder? are not allowed to divide the profits till after the expiry often years from the date of completing the share pivments. After the expiry of this period thev not onlv begin to earn dividend but are allowed to withdraw their shares. There were two reasons for trying this experiment. The first was to anticipate the difficulty of securing deposits, that was likely to arise in the ca<e of a central bank far removed in the interior. The second was to see ho.v societies largely financed by the mcmbeV's own capital worked. The diieetorate consist of local zamindars, rnahajans and the representatives of societies. It will'be interesting to watch the two former class co-operating with the people for the hitter's uplift. The difficulty of financing and supervising societies in this area has brought into piominence tbe need, to my mind, for more subdivisions in this district. The economic development of the district is hound to be slow unless it is provided with smaller uuits of administration by the creation oL additional subdivisions.

1=.. Jamni and Simultala.—ln. Jamui and Simultala, a fa>"r amount of pro­gress has been made, thanks to the eiTorts-.of Mr. Miraa. -A central^ bank will be registered there very soon. The district has been fortunate in having as Collector, Mr. E. H. Johnston, i.c.s., an officer who is keen on co-operation. In spite of his heavy charge, Mr. Johnston has always been able to make time to inspect village societies during his four in the interior so thoroughly as to surprise local co-operators who found they had much to learn from him.

^ Mr. Johnston has also very kindly attended the general meetings of the new banks, I hate no doubt that with his encouragement Moughyr district will develop rapidly.

19. H a z a r i b a g h . — T h e area has been tapped through the efforts of Mr. N. E . Kay, who received ready and eager help from Professors P. C. Bose and D. K. Kay of St. Columba's College. Other educated gentlemen of the place also came in andthe beginning is quite promising. "Within a short space 7 societies, a co-operative store at the college and a central bank have been registered. The difficulties that are to be overcome in llazaribap'h are the same as had to he contended within Raachi. The district is entirely maha-jan-riddeu, the land is extremely unproductive and the people are sunk in the depths of poverty had ignorance. But signs are not wanting that the directors appreciat their difficulties and realize their responaibilities. I n Mr. Bertoud, i.C.s., the directors have a Collector on whom they can always

to count for arm-pathetic help and encouragement I trust they will have a con­structive programme of advance having rBgard for the special difficulties of the district.

20 Qr iSSa .—The central banks at Cuttack and Kendrapara, which were-registered during the last year mainly through the efforts of Mr. N. K. Ray durin°- his short stay at Cuttack as Deputy Registrar of Oiissa, have made small3 progress. The two banks registered this year at Puri and Sambalpnr owe their inception to the untiring energy and ceaseless hammering of Babu . Hari Das Bay, the Deputy Registrar of Orissa Division. The Puri bank also owes much to the keenness of the Honorary Organizer Babu Kshetramohan > Mahanti and the known sympathy of the Collector, Rai Bahadur Monomohan Kav with tho movement. The Sambalpur Sadr area could not have "been opened for some time but for the zealous advocacy of Babu Nand Kishor Lai the Sadr Subdivisional Officer and the active encouragement which the co-operators have received from Mr Inglis, the Deputy Com­missioner. Sambalpnr and Puri have made very ^ood progress Puri had 20 societies in 7 months and Sambalpur started 9 in i months. In Cuttack and Kendrapara which are somewhat older areas" only 7 and 5 societies were

organized respectively. , 21 A r r a h —The two banks at Arrah and Buxar owe their initiation to

Mnnshi Shanishir Jang Bahadur, the Deputy Registrar of Pataia Division, who has been able to secure and stimulate an energetic band of local workers in e ^ h m a c e Both the banks have received great encouragement from Mr. wMUic,,, T C S the Collector. In Buxar the ground was prepared by Babu Ram Chandra P r a s U the Honorary Organizer and Mr. Tbadani, x.o.S W fT T T , " ^ f heart and soul into the movement since he took over charge 2 £ T l n A ^ K L Kaghunath Praskad Smha, the Secretary of the banl,

J % . 1 „ Ttfidan Mohan Sflhay, the Honorary Organizer, have taken up • S • ^ W seriously and I have great hopes for these two areas. R a £ ? e f b k T K a ^ a n P r S Singh of Surajpura has been taking a keen interest Radhiki ttamanrra » c l o s e t u d oi t h e a u , t H j common

^ ' Z t B Z Z H A X ° Prashad Singh oi Dmnraon, have not only r ^ n o n e n t b e i i extensive estates to the movemeat but have promised active thrown open thei^c eg ^ ^ mmmil 8 l l c h M %

K m L h S S u a m i u d a r s are bound to be of great service to the movement. I I has been somewhat disappointing. In spite o^tne town being full of

f K ^ntlemen the central bank has no yet materialized. But Mr. r i b o l i s w S T Prtraring the ground and there are signs of an early ? -??;!1m 2 s labours. In Bhabua however things appear to be discouraging / W the new S u S i s i o n a l Officer will be able to create some morflife among the educated gentry of the place.

99 T i r K i i t —In Bettiah a central bank was organized through the effort o P l i v la ther Felix. The progress made is highly satisfactory. Not S l , ° H ,. number of societies increased but lather Felix has succeeded in c t r n ' o ' a H ^

1 p S i o n e r s in the central bank and iii the newly-organized Peoples' Bank. C s is very good for a new area. But I turn hat the Bettiah Raj will give more financial assistance to the bank smce_ the i,aj tenants are to be the chief beneficiaries of the bank. In Motihari Rev J Z. Hodge has oontinued his efo.ta unabated. The careiul instruction of the members is a marked feature of the movement in this area A central bauk has been registered since the close of the year. Mr. Heycoefc gave considerable assistance to Rev Hodge and now the posting ol Mr. blamraond to the district has he* rightly hailed by co-operators as an earnest of still better thines to c o , n p T hare e\ery reason to hope that with Mr. Hammond at the head oi thP ii t • 1 md Mr. Whitty as Manager of Bettiah Baj the movement will gather ^ S l in Champaran under the two new lusty banks. ID Darbban4 Sad, T . § t h

suddenly became bngfifc when with the encouragement ol Khan B • ? g 8

Aaltfaq lluaaui, officiating Collector, new ground was broken by Bab,, «, • N a r ^ n Singh, SUb-Dep„ty C c J W who° ha, been able to m a k e T n s i d e S strides m the Sadr Subdivision. Samastipur, IHjipuraad S i W M ^ e l J j

i

T l

shown mnch life hut the last named has lately made some progress after &-•visit by the Deputy Registrar a t headquarters. Saran Sadr has hi therto been entirely inactive but these fcur subdivisions mus t be properly explored d u r i n g the coming year.

23 . P a l a m a u . — T h i s 'area is espected to come into prominence soon. Mr. Killiy on his own initiative organized a meeting on 10th May 1919 and invited me to attend it. Gentlemen present were prepared to finance societies •up 'to Es- 30,0(10 till a central bank could be started there. I feel quite sure that considerable progress would have been made bu t for Mr. Kilby 's preoccu­pation with famine duties. When things return to normal conditions I h a r e no doubt the District will be fast familiarized with the movement .

21. Catholic Mission Society.—This is the largest co-operative society in India. I ts effects on the aboriginal population oJi Ranchi are very far-reaching. I n the death of Hev. Fatbei Molhant the society bas suffered an irreparable loss. I t was due to his organizing ability that the society was made such a splendid recruiting ground for the labour corps. I u this work he not only tendered a signal senice to Government but confened lasting eeonomie benefits to those \>ho joined the force. Father Molhant arranged to have only a imatl pocLefc money paid to the men in the front while he collected the balance and banked it for them till they returned. The amount saved up which was considerable, wa« then paid to them to redeem their mortgaged holdings and free them from debts, and in the case of the more fortunate, to help them to purchase more land and cattle. I t is not difficult to imagine t h e change in the outlook of life which such a new page in their life must mean t o these unfortunate people.

25 The G. B. L. Mission Societies.—Another important group of societies in Chota Nagpur are those which were started by the German missionaries in Raachi District. After the removal of the German missionaries who supervised them, these societies naturally deteriorated. But they are once more showing signs of new life owing to the efforts of the 8ub-Deputy Registrar, Babu Dulal Har i Ghosh. The Lutheran Christians are now beginning to understand that they must stand on their own legs and they are taking considerable interest in their societies. These societies are run entirely by capital provided by the members and thus thrift and self-help have been taught and practised from the very beginning. If the societies only receive moie instmction, I feei sure they will improve rapidly. The defect in these societies is the large area which each serves. Members though belonging to the same parish sometimes live 25 miles i.part. Real co-operation under theso circumstances is impossible. If the members could be persuaded to split u p their society and form smaller ones consisting of a distinct group of villages situated close to each other, there will be a better chanci' of co-operative principles being imbibed.

( e ) NQH-A.GEICUI.TT3B.A.T,—CliiSS I . — C R E D I T .

26- The table below will indicate the progress made during the year :

Yenr, Wuirbaiof Number of| Societies | Members

Walking1

Capital. Shore

Capital Dopant by

Mem be re. Hpparve

t u n ] .

1917-18

1D18-19

41

61

+ 30

3,571

4,361

+ 790

, BB.

3,SS,2*9

3,20,116

+ R1,867

Rs.

88,856

1,12 518

+ 23,832

Us.

85,835

97,088

+ 11^63

18,801

24,257

+ j,9n9

12

There has been a distinct advance 'in this t™* *r „„„• <-• indicate. There was a marked S « ' i X ^ d e m a n d ' f ^ ^ M

•stores, for societies among small traders, for Peonle* E J f *l r C 0 -°P e r a t l ve and also for societies -among Government servants Luiut t i type

27. Societies among Government Servant*' Th» L has increased from 21 to 25. A new ^ 7 • T - m b e r o f Soeietiea Btarted among the PoUce officers of Puri District Thm f *° l a S S h a s b e e a

is thus described in their report. "The desirabiliiv f "f K U G b a soci^7 that in India expenses of marriage and Srarfh « starting the society ia

bread. To meet these expenses officers are d w f f a S , , n e c e s s a i 7 as one's daily money at a very high rate of interest verv nft. f ^^jam borrowing per month. They are driven to fib^fc.^*6*0"1-0 p e r ™ P « interest charged, to make two ends meet !M ^ ? ^ t o m e e t t h e M*h Government officers who find it difficult" to f* rt8 d ° ' l b f ' t h a t =if

.robbed by mahajans by their exorbitant rat? ^ ;nf! , „exPail9M are driven to the temptation to take recourse to int^esfc t h e y - m ^ t b a operative society run on proper Httes no<- nT.?„ J 0 1 " 1 ? ' Practices. A co-this immediate danger but p i i r i d * t t ^ h ^ m i n ^ f ^ n b B M fc™ moral tone. The working of these societies i l general h 2 l i m ^ 0 v i n S their introduction of a system of compulsory quarterly S i t ^ ? C ? ^ d a f t e r ^ defects into prominence both before the work£* cornmiH^ T f / U t h e

Registrar and prompt measures are taken to remoVe T m ™ i b e f ° r e t h e

best among this class of societies is the Secretariat Oo^operativ/fi? v ^ Society which consists of assistants working in the S e T e Z X f AP*ukm5 offices of the heads of departments. The number of m e S ™ a n do l n t h e

working capital is Its. 45,169 Deposits l i t t T ! 1 S ?°W 3 9 i - * a "and the reserve f a i l d a t A, 1 | 3 9 ? * K ^ n 7 £ ^ l X t ^ S 1 ? of Joarfe are as a rule very regular aod deposits ire i J*W™ J K , i e P a y m e Q t s There is however a rift *in °the iute, owinJ tothe £ of Z t t/ ' ? m e m b e r 8 " General's office will remain in Eanchi S e all o'he off icesU^ ^ T ' ^ Patna in the cold weather The assistant ^ T A * X l , n o v e dowa to

ed to have the society split up l^^t*^?*™1'®***??* ° f f i c e W a n t ~ there should be no objection to the m X r • ° he f^901"*^ P » p o » l and Another society of f t y p e w M c h S * b e w S * m i e a b l y * r f peaceably settled

Bahu Krishna D M Nan.™ ^ d t ] , 1 ° t h e / n e i ^ t i e work of the Secretary, Mukharji, Deputy Collector l S f S ™ W o f B a b u Shailaja Pao5 fte habit of thrk , h ^ f h T een st m u S P ^ " , 5 ^ * t h » " W * society held Jfe. 10.099"inifa 8 a r i . ? S t ^ > G Clfflie ° f t h a ? e a r f c h e

Society which is the oldest s o d L f i t ! P ° T T S ? h e M o t i h » c i A m , a

positiou at one time rZttTl KT ^ s type a n f l w h l c h h d d t h e ;

r e c o D U o S v ^ w l f / f 1 U " U . S e r " C e C f J - 0 P e r ^ve Association which is a S S l S ? ? 1 S HP lS S mS TOfere,l0°- T h e ™»"**™ consist of pa,t and present members of both branches of the Provincial Civil Service and of th-Suburdmate <,lT,l Service At the Commencement, T had some diffidence ™ regard, the poas.biutv 0f the society recruiting a large membor.h J °C rny fears have proved grcmndleHH. It began with 2D meinhera and H memljemlnn ha, been s i c ^ y i n u r e a a i a i f ° a t l d s L a n d , a t p ^ *™- ««* Its pvescn workxuai capita] is KB. 10,011 Mo n i l - , a™ „ X \ ^ , (

X713-

•bprrow up to ten times the paid-up capital held and the loans hZ S * * 1 t o

retuMd Honoetitnca for want ol nrouor eccuritv Tt,,i il. a ( i to be withstanding Ks. 1 W , ^ ^ ^ „ ^ ^ \ ^ ™ ^ U « . . n o t ttiis society is a camymhavj contribution to a provident / ; ^ ^ of 1 per cent, ot the member's salary. The Providini T n , i UUtl o f a* least amounts to RB &>A5a Dcpos^ arc L t coming in t d ftS C U a t p i b ^ i o n ^ ed at, as very few officers are really able to safe anythhg ^ to b e W S J S

IV.-OTHBE POEMS O* Co-OPi:ii4Ti0H '

13

not know if the stores have succeeded in creating much enthusiasm in theie members, as the successful management of these stores is by no a iears easy. Special business experience, and an intimate knowledge of trie movements of trade are essential. An honorary worker or even a paid manager is obviously handicapped in an open competition with the mariouri or the bania with their hereditary business instinct and ingrained habits of thrift. The manoari Qr the bania knows when to buy, where to buy and when to sell. And as he is the proprietor of .bis own shop and his very existence depends on it, he will naturally exert himself to an extent which cannot possibly be expected from either an honorary worker or a paid manager. The mai-wari or the bania is also his own salesman and his cost of establishment is therefore necessarily-less. For these considerations I have been cautious in registering these stores, the more so because there is an absence in this class of societies, of the moral •element and members are apt to look too much for mateiial benefits. The case of a Co-operative Stores at a College or School is however different. There the -yovWlg mind can be trained to devote time and thought for the management of the socieiy for disinterested considerations. Such stores ia, a college would also familiarize these students with the idea of co-operaHoji and direct their thoughts towards this all-important branch of economics a n l induce them to devote some time to its study. I have accordingly encourag-eif these stores in schools and colleges. 1 he Stores however have great chance of success in places where, as in Kmnardhohi and Pusa, it is difficult to obtain the necessaries' of life and where ueople live close together. In such places it is a great relief to its members. One of our best stores now i s the Secretaiiat Co-operative Stores. When the Stores was in l tanchi very few of the clerks had joined, for the simple reason that all the necessaries of life could be easily obtained and sometimes at cheaper rates than what the Stores could supply. But since the removal of the Stores to Patna there has been a rush of membership and practically every one connected with the Secretariat bas joined. The reason for this is simply the Jact that w i t h m l , miles of. the quavers provided for the clerks, n 0 shop ot any kind had yet established itself! The Stores has been a pieat boon to the clerks and officers of the Secretariat. Thanks to the unt i . ing labour of Balm Sudlnr Chandra Sen,-Secretary, and Sardar Jasanna tk Singh, the members have been able t o obtain all their provisions and foodstuffs from the Stores I t will soon deal. i n cloths and other necessaries such as kerosene oil and coal 1 he temporary accommodation very k i n d h allov-ed by the Public Works Department Was quite insufficient, and ihe Stares is now erecting a bouse of its own ai a cost of

' B e 6UO0. When the buildin» is completed and the Government moves down to Bahia, the Stores will be working in full swing- I t is my aim tomake this a. model stores where even the licgistiar and his staff may learn practical business methods and the secrets of trade.

30. Weavers' Societies,-There are 19 societies among weavers against • H in last vear. I t is unfor tunate that the lot, of those weavers have not im­proved anil thev can hardly ever improve unless the control over them by t h s powerful middleiwn can be broken So long as the weavers are depoiuhmt on thew n.idillr.iuen tor their stock of >vvn ami so Ion? as thoy arc oumjiullwl, on account of Hie tempting advances made to them, to sell their finished pror ' tuts to tht'in, their tot will remain very much as it is now as these middlemen scarcely leave them even a living wage for (heir labour, The only tiling tha t can save them is- a proper eo-opi'Kitivu \u-avors' store which would supply them, with yarn Jtjwl buy their- finished products for sale at the most i'uvuiirahio market. Tho poor and unorganized weavers oanuot afford either to buy ap the raw material at convenient limes nor can they afford li> keep their i iniahci product. They are forced to buy in driblets and to sell oil again as souu as pus-" sible to buy a fresh supply of yar •. In this way they are double losers. Wha t they s t and to gain by a proper organisation may be. i l lustrated by one-o-E our tassar weavers' societies in Bihar. Cocoons are genei-ally placed iu the market twice m the year, once in October and again in January . The October crop is \ery important and the price ol these cocoons generally rWc 50 per. cem between October and February. This, year the cocoons worth i t s 1(5 per hhuH >c October rose in July to Rs. 50. - This will give one an idea of the enormous profit

, 14

made by the middlemen. In the several societies we have at present in Bihar the members are financed adequately to enable them to buy off for the whole year's requirements and they are able to save an enormous amount. By this means alone there has been aremarkable change in the condition of the members of the two tassar societies. Before they had their society thev used to have to go Fatwa, 20 miles away, to get their supply of cocoons and sell their cloths. Now they go to the big cocoon marts in Chaibassa and Hazaribagh and purchase for the whole year s consumption, and the traders have to oome to them and take their cloth at the weavers price. They were literally in rags before. In five years they have increased their average earnings to Re. 1-5-0 per day and some of them have begun to build brick built houses. Tbe members have been able, from their savings, to subscribe shareB to the value of Es . 800 in their own society; Bnt, as I have said, there is still room for improvement. They have not yet learnt the value of co-operation. In one society alone it is calculated the members are losing about Rs. 900 for going to these distant places individually to buy their coeooa and spending 15 to 20 days there. A proper store would moreover bring the weavers in touch with better^ markets and induce them to adapt their work and pattern to suit the demands of those who are able to give a better value for their capacity and skill. I am sure, for example, the tassar weavers could earn more, by turning out cloth for gentlemen's suits instead of Pagns for Punjabees. If only an uniform quality could be turned out, big European firms in Calcutta maybe induced to place large orders But all this requires greater combination and spirit of co-opera-

- tion The weavers have not yet learnt to trust each other even in our societies Outside, there are large colonies of weavers in Manpur, in Bihar, in Fatwa'

- " where all our efforts to break the hold of the local middlemen have hitherto failed. In Nathnagar near Bhagalpur we have been able to drive in a wedze which is slowly breaking the monopoly. "When we got our proper store started I am confident the example will prove a very successful •advertisement to others. Wow that we have a Textile Expert in the Province, I hope with his assistance, to organize such stores. I am convinced that the first necessity for the success of the weaving industry is to organize on the lines indicated and tben to introduce more time-saving looms. Handloom cloth could never compete with the products of

" power mill, if the demand for cloth were determined solely by its cheapness. The fact is that tastes and habits have much to do with Buch demand and what saves the handloom weavers from total extinction is the fact that in India people are still very conservative as regards their tastes and habits and there i« still considerable demand for handloom cloth and weavers or dealers have not the slightest difficulty in disposing of their goods. In Orissa Division practi­cally the entire female population wear saris made on the handloom and in Chota

• Kajrpur the aborigines continue to show a decisive partiality for the pvoducta of their own loom. But in the struggle for existence great disparity i n p r i c e is bound to affect prejudicially the popularity of the more expensive clotfi and it is most important for the handloom wearers to increase thejr production bv the employment of labour-saving appliances and at the same time organize themselves so as to reap all the fruits of their labour and skill. 5 * u l z e

31. Banchi Weavers Store*.—The Stores which was registered in J a n u a 1917, did considerable misiness during the year. The working capital jr,«J *% from Bs. 11,378 to Rs, 16,821 and the number of members rose from 2V> 1m A very large amount of business was done for some Calcutta arms tor t> ° of Dosuti, lae-clotb and in cloths of other description. The weavers w SUPl% paid at the rate of 1 anna per square yard of cloth woven but the r»r k* a t ^rafc

recently increased to anna 1 and pies 3 per yard. The Stores in ^ e n Its. 8,765. on the -purchase o f 1 * and 16B count yam, for the m ^ i e d a b o « t Messrs. Skipper & Co., for the Munitions Board at anrofir « P P ? y o l c l°th to Bs. 2-8toKs. 4 per lis. 100 worth of raw material sutmli^ r ^ 1 D g between about 18,095 yards of Dosuti cloth was supplied. T * V , ^ " T ^ the TOW products of the weaver members, and di s p o ed them H? i * * ^ finiSSi hawker-beavers, and made a profit ol 6 per cent T S ^ ft » ! % £ £

w e a v i * g accessories S.-K* *s^**SKKMft J* WSff-ig:

lfi

on credit and (realized the price from them by instalments. Since the Stores receiped orders from the Munitions Board, the weavers have eagerly taken to.the uses of fly-shuttle looms and if such orders are regularly received from big firms the economic condition of the weavers in the area •would materially improve. The total profit earned by the Stores during the year was Bs. 3,925. The honorary workers have worked with zeal and earnestness. The account keeping however has been very defective and too much latitude has been shown to persons who have failed to keep their terms. Such persons do not deserve the blessings of credit. The selling of cloth through hawker-weavers also appear to be objectionable. The best course is to deal directly with the tea-garden Managers or their agents in Calcutta. The selling • through hawkers keeps the capital locked up for a long time and the Stores take considerable risk in the matter. They should at least be made to deposit half the price of the cloth. I t is very necessary for the Stores to engage a competent manager with >some business experience. I have hopes that with Rai Saheb Thakur Das as Chairman the Stores will adopt better business methods.

32. People's Bank.—One society of this new type was registered during the year. The Bettiah Catholic People's Bank registered on 21st Septem­ber 1918, started with 28 members and by April it had 69 members. 318 shares of the value of Ka. 5 each were subscribed and loans ip the value of Es. 20,364 were made to members. The society succeeded in getting a deposit of Us. 18.&36 from the memberB. The management is very efficient and the

-committee are alive to a sense of responsibility. If this bank is able by a wise discrimination regarding the sanction of loans, to create that indispens­able element of credit, viz., character as displayed in the members' honesty, industry and truthfulness, it will have rendered invaluable service to the cause of co-operation.

33. Societies for the supply of milk.—The only society of this type now • existing is the Mayaganj Goala Society in Bkagalpur. The difficulties of conduct­ing a societv within Municipal limits were discussed in last year s report and unless the "Municipal Act were amended in the manner proposed m my note to Mr. Hammond (printed as an appendix in last year's report), I have no hopes of societies of this type having any effect on the problem of the milk supply. Since my note was written, my views have received practical demonstration in the hands of Dr. Harold Mann in connection with some experiments made by him on similar lines for the supply of milk from outside for loona City. The Mayagacj society employed a working capital of Bs. 3,134 and made a profit of Bs. 150. The quantity of milk supplied during

- the year amounted to 292 maunds and 12 seers.

34. Fattca Co-operative Dispensary.—The Co-operative Dispensary at Fatwa which was a source of much inspiration to co-operators in this province as well as elsewhere has met with a violent death. It will be interesting to recapitulate the salient facts of its short life. It was brought into being by Kai Sahib Eaj Prakash Karayan, the Honorary Organizer at Fatwa, which is one of the most active centres of co-operation in this Provinoe. The membership was open to members of co-operative societies in aad round Fatwa and the annual subscription was Be. 1 with an entrance fee of Re. 1, The meniben and their families were entitled to receive medicine and medical at tendant free of charge, but if the doctor was required to attend at the member's houst actual conveyance cost was charged. Non-members were also entitled ti receive medicines free hut were required to pay the usual fees of the docto: for his attendance. The societies became immediately popular and enrollei 318 members during the first year. The dispensary asked £or aid from th District Board and was able, on account of the sympathy of Mr. Gruam<? i c.s the then Chairman of the District Board, to secure a grant of Rs. 1,000 annual! and a building was also constructed for the Dispensary at the cost oi! tb Itistrict Board.. The distinct condition made at the time was that tt management should be left with the Dispensary Committee as indeed it eon] not be otherwise if it were to remain a co-operative institution. The sociei was run most efficiently and during the first year 15,578 persons were treati and during the second no less than 25,482 received medical aid. Every oi

16

was MT. Gran

satisfied -with the working of the dispensary and the District Magistrate, MT Grunin^and the two Subdivisional Officers regarded it as a model institution. I t was with°some surprise therefore that the committee learnt in the latter half' of last year that the District Board proposed to take over the control and-management of the dispensary. The Committee could not accept the proposal as it ran counter to its registered by-laww. The institution was entirely the outcome of co-operative efforts and the management -wa& as efficient as it could be desired. The oommittee pointed out that if the control were taken out of their hands the institution would ipso facto lose its co-operative character and would have toJje dissolved. The argument did not appeal to the District Board and one of the most successful co-operative institutions in the Proiinee thus came to a sad and untimely end. The society was dissolved in the month of March 1919. I t is now somewhat embarrassing for the committee to receive enquiries from different parts of India regarding this beneficent institution. Its fame had evidently got abroad.

35. Go-operative Agricultural Associations.— The working of these associa­tions bas not been very encouraging. The objects of these societies as slated in their by-laws are (a) to arrange lor the supply of seeds, manure and implements, etc for its members, (5) to undertake the sale of its members5 products in bulk, (C) enter into any other business calculated to assist its members in the cultivation of their land. As a matter of fact none of the societies have combined these specific functions. The Nawada society has canfined its attention to obtaining a rd distributing Pusa wheat and so far as the popularizing of this seed is con­cerned it has done a great deal of good, but the cultivators are able now to obtain Pusa wheat seed either m their own village or m a neighbouring village and the demand for it from the Association is fast on the ,wanc. The Bihar Society got a lar°-e supply of manure at wholesale rates when the market was low and was able to make a profit of about Es. 500 on it which will be distributed as bonus to the purchasers. But on the other band when it attempted this year to undertake the sale of its member's potatoes in Calcutta, it met with failure. This was due to a want of trade experience, ignorance of ihe Calcutta market and the conservatism of trade custom. The store arranged, on the advice of the Vice-Chairman of the Calcutta Corporation, to sell the potatoes at the new College Street Market but it was found by experience that the market failed to attract purchasers in spite of wide advertisements by the market authorities. This caused four days' unnecessary de ay when all the time the price of potatoes was coming down till at la . t i t had to be taken to the potato market at Aluposta where it was, promptly told. Ultimately the .cultiva­tors g o t E S . 3 a m a u n d for their potatoes when they could have get at least Es. 4-8 or lis, 5 if these mistaken had rot occuued Iu fact s o m e ol t h o g 3 w h did not join got Us. 3-12 and Es. 4 even m Bihar from traders who were 3J..JL ftcwrfit our Society. The store natural v Mnvht. +1^ „ , • ,

36. As for agricultural implements the Agricultural Department l ,^ * vet been able to offer one ,Inch conld be recommended m " S J M t

L i n g suitable to local conditions.^ Even wheu any „efl n,achinl , t f *? useful as in the case ot Hie Bacerji cane ciURhiny mills the wnTt t " d

arrangements for repairs make their extended use impossible Vi S ^ l t a b l e

Eajk indented for some of these mills and theywre let out ' i • ul )aul-cane grou ers at Rs. 22 for the season instead of ]i8 32 c l m i°Di totixG

agents of another firm. But when the mills went ontofwiI +Ty t , l e m i l i

arrangement for their repair and the Agricultural Denaiiml J « W a s n o

matter rt-a.srelerral expressed its mabilitv to render am 11 i w l l o m &e Society tvas voluntarily wound np at the cio-c of the VPA? / I I P "

l l i e Earh distribute some seed supplied by the Government. ' ^ ^ did was to

37. The Fatwa Stoi-e which ia a similar rn^m,,,^ , is the only one of these agricultural societies ^ h i n T . , a n d wWcli i u fact to nndrrtake the sale of the members' produce"Sti l l Z ^ * e M e £ h u*™

iggung on, thanks to

17

the labours of Rai Sahib Raj Prakash Narayan. But it has not yet been able to attract the producers for whose benefits the society is primarily intended and is still living in hopes that the producers will appreciate the advantages of the store and bring all their surplus grain to it. The report says that some members who stocked their grain in March and sold in October got 40 per cent o*er the price obtainable in March. But even here the difficulties are not negligible It is first of all not quite clear whether it would be better for the store to purchase the grain outright at harvest time and sell it at the best oiar-

. The special dilBonlti,*, ^et hiter or to act as a commission agent, giving an advance of a certain percentage

of the value of the grain stocked and allowing the members themselves to sell their grain charging only a commission for stocking and interest on the advance made. The Patw a Store has adopted the lattur course and undoubtedly this plan reduces the chance of loss ton minimum. But the procedure is not free from difficulties For example when business expands, will it be possible to ticket every member's grain and, stock it for sale at the members' convenience ? Suppose you have a requisition of one thousand maunds of grain from the store but the several members to whom the grain in stock belongs, do not all agree to part with their grain for the price offered ? T ou can't tell the traders that you would supply only 300 maunds I This will drive away all °ood clients. If on the other hand/the store purchases the grain outright tbere'ig a possibility of loss due to prices coding down. Further, a store which aims at purchasing the grain would require a very big capital. Where is the capital to come from ? In business concerns of this kind even with no limitation of dividend it is difficult to induce the monied class to invest their money. In a co-operative concern where dividend is limited by statute, it will be difficult to attract the necessary capital. As for the agriculturists themselves it would be difficult to get the capital from them before it has been demonstrated to them by some years actual working that the business will oe profitable for them­selves, " The Provincial Bank cannot be expected to extend unlimited credit to such stores unless they have raised a proportionate capital of their own and have proved the business capacity of their managers.

38. My own impression of this class of society therefore is that its first condition of success is the appointment of amauager with sufficient specialised business experience of the nature required and secondly the enlistment of a sufficient number of agriculturists who are willing to raise a substantial share capital and piovide the store with sufficient business to be able to pay a <*ood manager. Provided these two conditions are fulfilled these agricultural asso­ciations can be made a source of considerable profit to the cultivators. (Jnce the business becomes sufficiently established it can undertake the work of popularizing seed and manure of proved utility by holding regular demonstra­tion meetings on the fields. In this way it would not only be the means of increasing the income of the cultivators but would enlarge the circle of its own members. It could also in time specialize as seedsmen and undertake with the help of the cultivators the selection of the best varieties of seed to be obtained But in all those branches of activities the help of the Agricultural Department will be necessary The time has come when every Central Bank which has been well established could provide sufficient scope for the activities of a whole-time attached officer of the rank of an Inspector of Agriculture. The Co-operatiie Department can proxide the organization for propaganda and dissemination ot knowledge, but the Agricultural Department should provide the expert advice.

39 But even if these agricultural associations fulfil the best hopes that can be entertained of them, I would still not be satisfied with them as th best that can he done to help the cultivator to get the highest m>i I

[Co.^th.Mdhj tteXader^T*1 p t 0 * U 0 e ' O f o r between produce and the consumer, there is still MOthel d a w V ™ ^ a " r i c u l t u i ; a l

c a p i t a l manufacturers. The remedy is the o ^ S L o f r ^ V * " ' t h e

d constitution of which I tried *to o u S £ f Z l k ' T T ^ f ^ year'sreport I pm my faith in the suc^s of S 2 1 \ £ Z l"* taken hold of many co-operators aid earnest w o r k - i n e ral a v e ^ u S

IS

as Uarh, Muzaffarpur, Arrah and Daulatpur are now carefrll. -, . the prospects of such milk We are only waitkg forThe neu L c o ° s , d e n ^ Industry to begin its work. A9 soon as I am able t o « o u n L ? 6 P a r t m e n t . <* ance and advice in the matter of machineries I h o i t o J S , ? 5™* a f f l # " an accomplished fact. There are some who douht S L * , ^ eSe m U l s * mills competing successfully with well established mills T J ! ? ° f - S U G h

sufficient ground for fear. Because first of all there '•win T* e 1S n o

competition. The demand in India for mill p ^ ^ J " ? b e W l i t t l e

wheat, husked P^dy, manufactured sugar ^ u n l i K d n S *? 0 l1 ' g P O u n d

of raw produce and in some of these she holds a monoiwh Tf V ^ 5 6 e x P o r t e r

. ihmioremtm^wii^m'm^iinotmm, danMta the fil'h fason

duc^s as /or &e raw produce. There is room and to spare for h n i S l ? 1 ! * mills Secondly the Co-operativej Mill will have the advantage of securing

sK the raw n ^ rt»™ without the trouble and eXpe^ e f c d E S jng it toagA middlemen. The pioneer* will have a vital interest in the business Since iJesidSi- Ul& market price of their produce they are entitled to Sbff major portion o( tW ^ o f c «»& v«*xuae the nam -yfiw 0 e able to secure their ooKiOTS.-wm ^ « * ™ > J f When these advantages are understood the educated maMte etaawill freey invest money m such mills for money flows in wherever there is prospect of a sure return. IQ m v opinion these mills wifi solve a great economic problem. Better value to the agricultural producers would mean more money and labour spent on the land, and this in turn, would Jead to better outturn and so the cycle of agricultural improve­ment will go on. The large business of such a mill wilt also necessitate the appointment of a competent manager and hence the business could be inn irom the very beginning on proper ana sound lines inKtaad ot being placed m the hands of some amateurs who have neither the time, nor the t r a i ^ JQg to run a big business. I propose to devote a great deal ot alter.™ this form of co-operation during the ensuing year.

V—LIQUIDATION. .r, „ 4 . ^n r t ine from pre-pious year and

fan,* 8 i s c * - * ™ ? a s e s o f ^ " ^ " i S S a S S d u r i n g the y « * ^oceed-lorty-four more societies were put under »H|j"j~ number of societies at the ings were completed in twenty ^ f ^ f o f t nese 44 were liquidated which Commencement of the year was 1.701 atm d i n d i c a t i o a of eo-operaW gives a percentage of 26 . This is not a "» F^mve soundness.

VI—AUDIT AND INSPECTION.

lem is not without difficulties and the F e d e r a t e iS n o f f d ? . °- ±he profa. to ensure that auditors who are granted leave are quickly replaced h m e a n s

42. Too much importance cannot be attached to a Hi i. ^ ° rs° system of audit and/ on the whole, the audit work h *T?T a n d exhaustive the value of these reports is lost, if thsv are not ,i T* a t l ™ o r i l y done H,,+ tematieally. While things are « ^ ? & t \ ^ ^ W ^ w e , there .s still much room for improvement ro? d u ? Q t i o n « » n they genera lyspeakmgot an eagerness on the partoMK l ^ i s 8{i» *anthw prompt and intelligent use of the audit r e p 0 l £* - ^ D i r e c t 0 1 ' s * m S S dealing with their delinquent mernhm 1 Yu ' m 8 e e n& that ««;«« or in punishing fc own paid o f f i S * 8 ^ "^Wff len t of Be c a a P £ § ? of audit notes is a matter of g ^ T l ™ * ^ o f d * ^ C S t S T * ! training imparted to the s o c i e S ^ P ? r t a n c e > ^ ^ much of the I . ' ^ which the Punches or memhmZ ^ ?Cess9% d e S on the m f ^ ^ out in audit corrected hvthl &°Cletf ^ kueh t to h«™ H ? ^ ?* m

\

10 - -

43. Inspection.—The inspection of societies through the agency of Ins­pecting clerks has not been a very great success. Somehow or other we have failed to instil co-operative ideals into them and consequently all their work is half-hearted and at best like a soulless machine. Just at present they are a necessary evil. But I hope to replace them entirely in time, by our guarantee onions, when the latter become more numerous and have been trained pro­perly. But the Inspecting clerks can be made decisively useful, if the directors took more trouble over their training and could inspire them with some real love

for souad progress. IX.—CO-OPERATION AND AGRICULTURE.

4I4. The relation between the two departments has been most friendly. I acknowledge with gratitude the prompt help I have received from the Agri­cultural Department with its limited staff. There can be no doubt that the progress in the two departments are interdependant. Agricultural improve­ment can best be demonstrated and extended through co-operative institutions while the organization of credit shows to little advantage without a simulta­neous harnSssing of scientific improvements. I have been able to tour in. several places in Orissa with Mr. Basu, the Deputy Director of Agriculture, and in Patna Division with Mr. Robinson. In OriBsa a great impetus has been given to the cultivation of groundnut and sugarcane as a direc; result of our joint tours. The economic effect of the extension of these paying crops will be revealed in the ensuing year. In the Patna Division Pusa wheat has made great strides both in Bihar and Nawada. The Co-operative Agricultural Association at the latter place has done good work in distributing a large quantity of Pusa wheat. In Bihar the demand for castor cake is still growing but if the aid of the Agricultural Department is withdrawn in buying and testing the cake, .here will naturally be risk of buying interior quality cake. 8uch technical matter as the testing of the manurial property of oil cakes canrfot of course be performed by a co-operative society at the present stage of their development. The Kakaya Bombay jute is getting popular m Puraea and in Daulatptir Mr. Atkins has introduced it in his societies for seed purposes. Indra-sail paddy is giving good results everywhere and its cultivation is getting exteuded. Now that many of our central banks are fully developed, it is time that they should undertake in right earnest, the introduction of agricul­tural improvements. But lor this, much greater help from the Agncultural Department is necessary. All the more developed central banks have now enough to do in this direction to require the help of a whole-time officer of the rank of an Agricultural Inspector I am getting letters from several areas to move the Director of Agriculture for detailing an Agricultural Inspector to devote his whole attention to work in eo-operation with the Central Banks. I am addressing a letter to the Director of Agriculture in the matter and I hope our discussion will lead to some mature proposals to (jovernment tor increase of staff in the Agricultural Department.

X.—CO-OPERATION AND BBUCATION.

45. " Without education of the right complexion, tobegfn with, we cannot look for very perfect co-operation nor very rapid advance or extensive spread of the same. Once fairly good elementary education of a rural character is provided, co-operation may be trusted to perfect itself effectually." Thus Mi- Wolff in his latest book h Co-operation in India." Experienced co-operators in India will heartily endorse tbis view. I t has become a trite savin* that the greatest obstacle to the progress of co-operation is the general illiteracy and ignorance of the agricultural classes. Co-operators recoeniSfi Z education is necessary both for the growDh as well as the future dftbfflW <rf t E movement. Having an intimate knowledge of village srhnnU t J L also convinced that if elementary education is ever to Z ? , , i ^ T quality of the teaching imparted which h T t ^ hi P*,ead lfc, 1S t h e

than a"mere increase in thTnumbe^ of s c W s ft.TT* ^ ffl0Ce

ently paid and consequent!, h f f S S ^ j S t ^ J ^ T T J ^ K

20

the boys were indifferent and hence the attendance of the boys was most irregular. Lastly the supervision exercised by the Sub-Inspector of Schools -with his quarterly round of yisite was not calculated to incite vigilance I t was felt that a proper local committee of control was the first necessity for improving the teacher's work, but the committee must consist of men who should not only be the most interested party in the efficiency of the school but who have learnt to appreciate the advantages of education, !NOW, if our co-operative society has succeeded in doing one thing, ifc is the* remarkable effect it has had in creating a demand ior education Every­where there is the cry "give us a school." The subject received a good deal of attention in the last Provincial Conference. His Honour in his opening speech with his characteristic insight into the subject said: " The co-operative movement is intimately associated with the development of primary education. It is impossible for people with no education to take anv intelligent part in the management of co-operathe societies, or even to understand the principles on which they are worked. It i s therefore verv important that in every area win re there are societies education should Z diffused as widely as possible On the other hand the societies can e x e r c L t potent influence in improving the quality of the teaching in thp 1™! 1! i fry the supervision and control which they are able to exercise ove thl O I" am inclined to agree with Mr. Collins that the Tillage S t i e l t t u t T 8 ' much more prominent part than they have hitherto done in *!.<. „»£ • * primary education. I t is in recognition of this that the D i m ^ ^ S 0 ? , . Instruction is present to-day and will take a p a r t L y Z ril? M™, The Director of Public Instruction issued a circular letter to t k f r dlM>u»ion. of Divisions requesting them to get District Boards to .H™ hln«t m i S 8 ! 0 I u a s

to the central banks. Many of the central banks have creafcvT °?™ ^ ^ i n - a i d primary education. But their application to the DisSoVS 7 * t w i n * block grants-in-aid have met with a disappointing resnoiise ™ T> , f o r t h e s e

Board refused to' make a grant to (he Central J w L «" !i. a t n a Patriot they were "Banks" but agreed to aid "Co-operative So? r » 6 g l ' ° U n d t h a t

Board is perhaps not aware that our Central Banks are "(V • T h e D ! s t r i c t

registered under the Co-operative Societies Act In fL- ° P e r a t l T e Societies" District Board went one better. It imtvn^A +i._ ,-. 1Bat*:i.r the Ciift^lr

BUULIIU ui»u jji-yviut? SIUIB.»IB nouses, necessary furnim* . LLe societies and appoint qualified teachers and maintain them at t W ' t e a c h i n 3 appliances «ix months before applications are submitted to the Bo»5 7 ' n C ° 8 t f o r a t least Bank wanted grant-in-aid to doelope primary e d u c a S « i s f jP e n ds"! The liues" and the bovernnient approved ol s u ch . ^ l - ]argely on their own the District Board insisted on settling detail. J S r M n t B b e i»S mate w This is somewhat disconcerting after the clear i S * a P e e d t o &*rt£ J ^ Public Instruction in paragraph 2 of U%Z !'Uc *ns of the Di e S t f objections to the stipendiary system and TIZ^I ) T h e r e ^ eXpla n 2 \h. Bank committees, "whose interests ^ n l Z ^ W o c k g ^ n S o c t t S

»y. were directly L ? ^ ^ a ™ b e r 'atlon of the flxpeotp R e s t e d . The Supaul'

™ than balf t h f e S £ n t * h a d *PpEd

«7iiobu*"ti^h^^^M%^^8^ LOST au

,edi°--r of

Bank sorted five schools in ^ ^ ^ 7 ^ ^ ^ ^ ^ ^ for, but the aid was refused and m C t U n l i a S ^ f ^ T h e y £ , W funds. Nawada applied for a grant S » ° ™ e r failed f d aPPlwd Bs. 330 but they r e c e i v e d no r e p f f t f o / e 8 ? £ i ° ° ° and K h , ^ * , ° f

succeeded in getting a grant of Bs. 2 V 0 and 1 J ^ ' 1919 D ^ M ? f

management of five schools. M a d W ? > U t a l « * over t b , ' f J T h a a

Altogether the grant lrom District Boar*Taml ? ! t a k e * S e o K i ^ V ? " amount set apart by the Banks from 1 ? m ]*> &. 3 3 7 B ^ i ? - u V c b o a k

educafion amount to Ba. 4 , 8 9 3 - f i S TJ, T 1 fa*k for f n ? a e t h * **** new responsibility. Daulatpur and Balasol k s aPPear to h e i ^ 1 > r i m a r y

compelled to send the bnyS io t ] l e s c S e W ' t tl at t t n \ C t o t h e i r

that iE fhese sc-hools, the quality rf S e fraM > V « n « the H W e B a r &

the attendance of the boy8] mucn larger and ^ l m ^ ' t e d vil g h J e s t d o u b t

X I . - T H E ,EDEE4,10K A L a ; dE 7 e **•*. vlU be bet^ « *

*6. M s Federation.—The Bihar A l ^ ,\ • 0pEaji-TlVB P B „

^ 0 i * e Secretary

21

of State did not take over charge of the actual work of audit. But the methods of its procedure and the policy to be pursued 'were decided during the year •trader review. Out of 2,138 societies which were in working order daring the year, 1,767 societies were affiliated. Most of the remaining societies have been affiliated since the close of the year, and it- is expected that every registered society in the province, will come under the Federation during the comin°- year. No new society is now registered which floes not agree to being afnliated°to the Federation. The first Congress and two Council meetings were held during the year. The proceedings of these meetings are reprinted in appendices I I and I I I . Many interesting subjects were discussed and the rates of contribution to meet the cost of audit were fixed at annas 4 per cent from central and non-agricultural societies and annas 6 per cent from primary societies on their working capital as .noted in the latest audited figures. To cope with the increased work of audit it was also decided to appoint four additional Local Auditors, the total number including the Auditor for Urban societies being now 23. As the Federation will also take up the audit of non-agricultural societies the latter were invited to get affiliated to the Federation. With the exception of a few, all have responded. The Government is thus relieved of a vast recurring expenditure on account of audit. The arrangement witb Government about the cost of audit is that it would («) bear the entire cost of the audit of new societies and of societies situated in backward areas, (b) make an initial grant of E,s. 15,010 to the Federation in the first year, (c) contribute one quarter of the cost of societies of more than two years standing, (d) present each new society with a set of registers free and when the Federation undertakes its own printing, make a further grant for the purpose. In accordance with this arrangement Govern­ment have to make a grant of Es. 34,407- A further grant of lis 2,030 on account of non-agricultural societies have since been made making the total contribution by Government of Be. 36,467. These contributions, made since the close of the year, are to cover the expenditure to be incurred during the year 1919-20, and the Federation will have to levy a further contri­bution from the societies at the rates mentioned before to supplement the cost of audit and to meet the cost of a separate office. The Federation at present maintains one Secretary on 75—100 and a Typist on 80—2—50. In the last Council Meeting it was also decided to appoint two separate Boards, one for Bihar and ChotaNagpur and another for Orissa. The idea is to enable local co-operators to meet more often at convenient centres and discuss the lines of development -which they would like their representatives to press for the con-siderat'on of the annual congress meeting of the Federation, otherwise, it was thought, the delegates came ill-equipped to contribute anything substan­tial towards the formulation of the policy of development moat conducive to co-operative progress. The delegate would also under the new arrangement, really represent the views of local co-operators instead of giving his own individual opinion. The constitution of the separate Boards would be under* taken in the ensuing year.

47. The Co-operative Press.—The Co-operative Press_ is the property of the Federation. Ultimately it is expected to do all the printing works neces­sary for co-operative societies and Banks m this Province. But it has not yet been sufficiently developed to undertake all this. The hand presses with which it is equipped at present are quite unable to cope with the volume of work aad it it- impossible to do without a machine press. But owin» to the effects of the war no machine press can now be had in the market Arrangement*" are being made for the purchase of a second-hand maobin' locallv. If the transaction matures it is expected the working of the ™ which is anything but satisfactory at present, will materially irnnrnve an other formidable difficulty with which the press has to contend at mmZt\ T , and fnnifl.cidnfc accommodation. It is temporarily located at c S I ? after two troublesome ch&nges causing disorganization of work "u l K a«>agh havobronasW to help the press with a suitable V ^ ^ S Z ^ T l - ^ anditBlutmu success depends very largely on this help. aecoD>modation

XII —RESERVE FONDS.

46 The .I'lgrpjjate reserve fund of all snm'piina -••,.,„ s T.

to E , W S 3 . o> th. Bs wrnl -ISXSiXS; jjgg»

22

in shares of the central societies, lis. 1,69,573 is invested in Government l

securities and ths balance Rs. 1,.17,410 is1 used as working capital.

XIII—CONFERENCE.

49. There was no Provincial conference this year bat there was a Managers' Conference in April and several important matters regarding the management of societies and Banks were discussed.. The proceeding of the Managers' Conference arc reproduced in appendix IV. '

XIV.—GENERAL.

50. Disputes.—Two hundred and five applications were made to the Registrar award under section 43 flj against refractory members who wilfullv defaulted their Mst. The significant part about these cases is that in no sina-la case has the claim been denied. Those who havp experience of law courts ,riii tell you in what percentage oi suits of this description the claim is denied O may legitimately infer therefore that the atmosphere of a Co-ooerati™ nriJU-conducive to truth. Our only difficulty about these cases I thltZ « ? * of the decrees has to he done through the Civil Court™ A . i e X ? ? u t l 0 n

the Civil Court employe, and the p r o e ^ e S ' peons * s ^ T ™ * °l considerable embarrassment to co-operators. As mattm *taT5 * C e ° f

party can have its case conducted smoothly unless the nalrna rffw P T ? - D 0

arc greased. If these gentle considerations are refused Z ^ ^ ' l i n g * thousand and one petty harassment and delays But J n

7, a r e s u bJ e c t e ( l to a kind cannot be incurred by a co-operative body without 1™ ^Vjses of this proper , a y . On the other hand there can neeeJsarilvVe c o m i h n8 *« ** in the and hence there is a temptation to exaggerate HIP ~ D° v o u o I i e F S for these ness cannot be checked. The Auditoisunder the S t f **' ? n d t h e i r c o r rect-

-hold these items under objection. Cm » « « ? T ° , i i a v e therefore to I condone it. °m ' X ««"W)t check it n 0 r can

XV.—THE IMMEDIATE OUTLOOK.

51. Leaving the backward areas of Sanhl P , / ' pm-, we are within sight of the time when tW l ^ a m s <""* Ohota r e ­established firmly in alt the four L h i s i o V Z ^ ^ 1 W b 2 k and Orissa. In Orissa onlv Bargarh is S o n ? n ^ ' ^aga l imr Patna is already a nucleus for a Bant tte^as sIveraT " •C?*al B ^ but there In Bhagalpur division only Mong],yr S a d r K i Hm ^ e been r e l t e r e d to be developed since J a L i is now r i p e l f ^ ? d A r x a r L ^ a t Division, only Bhabua and Dinapore are vet tn U f ^ B a n k - In the Patna Sassaram several societies have been J a . E 1- t aPPed- In Parm> q i 7 has yet to learn the blessings of co-L^r * 4 ^ e a r ' In fehuTfl = ^ ha.e'cnly to be d ipped upto tav S ^ P 8 * ™ ^ ^ p t ^ ^ M in not too much to hope that the end of S ! r 1 k 0 I B a n "« i in 2 S T * well committed to co-operative pro,. e J ( T ^ *** * And t £ i 5 ' . inChotaNagPurand8a^,lPar0£?-.0ur^teSt o b s t a^£™ Pk°* ataj

system in c W « " £ e X ^ o v l * ? « ^ h *<"• backward

illiteracy and ignorance prevalent, SLnf t ? °Uh° »il and H,P 3 '"""I

t n . ;ei? o n the subject.

52. It is difficult to describe ft- „«•* i has hitherto enlisted very Utile mnL«l oi th* Trahl.v m,

of time, thought and labour d ^ n bt ly, o f ^ i H > " ^ m e n t is daily siderahle and judged from this s l a a d X i T * ^ ^ ^ " 4 8 ™ ' ^ B m o u n t

"pome, we have liitb.« s 1S vei-y con-J l l t ^ reason for complaint.

23

Aroorg the zainindars too, we are gradually enlistirsg more support. Raja Radhika Raman Prashad Singh of Surujpura ha* seriously taken up the study of co-operation since we have bioken new ground at Arrah. Another new zaimtidar recruit is Sliaikh Muhammad Yusuf Khan of Barh, who has been taking much interest in the movement as a Director of the Barh Cential Bank. Among the old friends. Maharaja Bahadur Sir Rameshwara Sm^h, G.CI.E." K.B.E., of Darbbaoga, Baja Ja«annath Prashad Singh of Deo| the Hon'ble Eaia Bahadur Kirtyanand Singh of Banatli, the Hor.'bl's Raja Rajendra Narayan Bhanja Deo, O.B.E., of Kanilia, Eabu Prithi Chand Lai of Purnea, Rai Bahadur Harihar Prashad Siogh of Dumraon, Khan Bahadur Saiyid Shah Waiid Husaia and Maharaja Bahadur Guru Mahadevasram Prashad Sahi ot Hatwa still continue to help the movement.

XVII.—OFFICIAL AND NOS-OrriCIAL HELP.

53, A list is printed as an appendix, of persons who haie rendered valuable assistance to the movement. But among these the following deserve special mention for conspicuous services :—Mr. P. T. Mansfield, i c s , Raj Bahadur Ra cilia Govmd Cbaudhuri, Reverend father Felix, Reverend J. Z. Hodge, the late Reverend Father Molhant, Bahu Bejay Kumar Roy, Balm Lai Behari Roy Chaudhuri, Deputy Chairman of Banka Central Bank, Maulavi Saghirul Haqq, Director of Siwan Central Bank, Rai Sahib Shushil Kumar Bay of Madhubani, Mr. C. G Atkins of Daulatpur, Rai Sahib Raj Prakash Narayan of Fatwa and Rai Bahadur Lokh Narayan Singh of Barh. These gentlemen are all stirred by a real faith in co-operation and each one of them has laboured unswervingly to make co-operation a living force in his respective area. Their labours cannot possibly ha lost. All the signs foe an early fruition are already present.

51. I have received much valuable assistance from Mr. N". K„ Kay, Deputy Registrar at headquarters, whose enthusiasm for co-operative work continues to grow. Babu Bari Das Ray, Deputy Registrar of Orissa Divi­sion, has maintained fall control over his heavy charge and has given proof of much initiative. Jliinshi Shamshir Jang Bahadur, Deputy Registrar of Patna Division, enjoys considerable popularity among the people which is an asset for work in this Department He is likely to be very useful when he has got a closer acquaintance with his areas and a better grasp of the work of this depart­ment.

25

APPENDIX I.

PEOVINCTAL BANK.

Babu Mihir Nath Ray, Managiug Director.

I RoHIKA U N I O H .

Mr. J. Henry.

Mahanth Shiva Narayan Das,

Rai Sahib Shuahil Kumar Ray.

Mr. P. T. Onraet.

Mr. R. S. King. 1 BANKI DOMPARA UNION

Rai Sahib Bidyadhar Panda. I Babu aashbihari Patnaik. NAWADA CENTRAL BANK.

Babu Mathura Prashad.

Babu Mahabir Prashad.

Babu Earihar Prashad,

Rai Sahib Ainareudra Nath Baoar-

Babu Tara Prasanna Ghosh.

Maulavi Ahdur Rakim.

Rai Sahib Jharkhandi Lai,

Chaudkri Gar Narayan.

BUXAE CENTRAL BANK.

Babu Ram Chandra Prashad.

1 ARKAH CENTRAL BANS:.

Babu Ragbunandan Prashad.

' RANCHT T J N I O N .

Raf Bahadur Radha Govmd Chaudhuri. i Mr. P. N. Bose.

Babu Ektauri Sen.

Babu Lai Bihari Lai.

JEHANAUAD^CENI'RAL BANK.

Khan Sahib Aziz Ahmad. [ Babu Dhamikdhari Lai.

BiHiE CENTRAL BANK. *

Babu Auandi Prashad Siuha.

M A D H I P U R A C E N T & A L BANK.

Babu Nareudra Nath Das. j Babu Nalini Mohan Bhaduri

Rai Sahib Agtuitosh Mukharji.

KHTJRDA CfiNTEiL BANK.

Babu Safcish. Chandra Chakravartti.

BAKU CENTRAL BANK.

Eai Bahadur Lekh Narayan Singh.

Babu Raja Siugh. Maulavi Abdar R a h M a n .

KM Salul, Raj Pmka&h ^ ^

26

GAYA SADR CENTRAL BANK.

Mr. I*. Maynard. Mr. Saiyid Hadi Husaia, Bar at-law.

£ a i Sahib Suriya Lai. Babu Bishuu Prashad Singh.

Mr. B. L. Ntindkeolyer, Bar-at-law.

BHAGALPITR CENTRAL BANK.

Balm Hem Chandra Mitter. 1 Babu Haren<Ira Nath Bagchi.

BEGTJSARAI CENTRAL BANK. '

Babu Dmesh Prasbad. /

PUHNEA C B N T K A I I BANK.

Babu Purga Prasanna Ghosh. | Babu Jugal Keshwar Lall.

DAULATPUR CENTEAL BANK.

Mr. G. G. Atkins. I Babu Harabans Narayan SiooJi

J A J P U E CENTRAL BANK.

Babu Krishna Prash&d -Singh. ' Babu Gobind Praahad B

PUHI CENTHAL BANK.

Babu Jagabandhu Sinha.

ATTBANGABAD CENTHAL BANK.

Bai Sahib Lakshim Narayan. __ | Babu Surja Bhan

Maulavi Saiyid Abu Muhammad

SIWAN CENTRAL BANK.

Maulavi Muhammad Ishaq.

Babu Baidyanath Praahad. '

Mauia-vi SaghiruL Haqq.

BANKA CENTRAL BANK.

Babu Lai Behari Bai Chaudhuri. I •&• 0 . . .

Babu Bamam Mohan Ghosh •

Gor ALGUNJ CENTEAL BANK.

Babu Benimadhab Barat, EX.

« « * M U z h u r H u s a . n

1 B a ^ Haj B f t U a b h S a h a y

HAZARIBAGH CENTRAL B A K K t

Professor P . C. Bos,, M.A. ( P f l j f a ^

n- ' J> B S o - (Edin.1

fa the r A Molhaut, Ranehi.

Eev. 3. Z. Hodge, Chamnaran.

27

APPENDIX I I .

i OFFICIALS.

PATNA DIVISION.

J". A. Hubbaek, E^q., i.c s., Gaya.

Snudioisioftal Officers.

Babu Suresh Chandra Chakravartti, ITawada.

Mr. Y. A. Godbole, I.C.S., Saaaram.

Alaulavi Abdua Samad, Jehanabad. -

Maulavi Shamsuddiu Haider Snpaul. *

Itai Bahadur Durga Prashad, Begu-

Mr. P. T. Mansfield, i.c &, Barh.

Babu Ear Sabay Lai, Aumngabad.

TIBIIUT DIVISION.

Mr. F- M. Luce, i.c.s., Saran.

Khan Bahadur A=hfaq Husain. Darbhanga.

Sabdivisional Officers. •

Mi. G. Chandra, Gopalganj. Kai Bahadur HemendraLai, Khast-Babu Shailaja Fada Mukharji, Darbhanga gir, Madhubani.

BEA&ALTVR DIVISION.

Mr. B. C. Sen, i.c s., Bhagalpur.

Mr. M. G. Hallett, r.o.s., Purnea.

Mr, E. H. Johnston, i.c.s, Alonghyr. v Subdivisional Offi> ers. '

Babu Narendra Natb Dutt, Madhipiira.

Khan Sahib Muhammad Sbams-uz-Zoba, Banks.

I sarai.

Mr. P. Mirza, Jamui. ,

Oi:rssA DIVISION.

Subdivisional Offi- era.

Mr. B. K. Gokhale, i .cs . Bai Salrib Dayanidhi Das, Jaipur.

CHOTA NAGPUR DIVISION.

Mr. E. H. Bertlioud, i.c.s, O.B.E., Hazaribagh.

Mr. E. G. Kilby, i c s., c.i.B., Palamau.

Stib-Registrar.

Maulavi Nazimi Mohammad, Supaul. Court of Ward's Managers

Mr. J . T. Whitty, c.r.E., i .cs . I Eai Sahib N U m a n i D e Mana«« I Sonbarn, Estate, Madbipura ^

Babu Pramatha Nath Mazunidar, Barwaii Estate, J^ha^alpur

fflwisif,

Babu Siva Priya Chaf terji, Cnttack.

Svh-Hepvty Collectors.

Babu B h a g w a n i » r a , h n d ) G o p a l g a n j _

Baba Surjya Namyan Singh, Darbhanga.

28

APPENDIX III.'

Proceedings of the Congress.

The first meeting of the Bihar and Orissa Co-operative Federation Oon -gresssatat 4 P.M. to discuss the subjects set forth in the Agenda. The following delegates and gentlemen were present :—

Delegates . 1. B . K. Gokhale, Esq, i.cs., Subdivisional Officer and delegate on

behalf of the Khurda Central Co-operative Bank, Limited.

2. S. Chandra, Esq, Subdivisional Officer and delegate on behalf of the Supaul Central Co-operative ttank, Limited, and primary Societies of the Subdivision

3. R. S. King, Esq., delegate on behalf of the Rohika Union, Limited.

i . Eai Bahadur Lekh Narayan Singh, delegate representing the Barh ijeairttl Co-operative Bank, Limited.

B. B-ai Sahib Beni Madho Prasad, representative of the Nawada Central Cooperative Bank, Limited.

, 6. Kai Bahadur Radha Govind Chaudhuri, representative of the Ranchi Cj-opa^auve Union, Limited.

7. Kai Sahib Lakshmi Narain Lai, representing primary Societies of Aurangabad Subdivision. ^

8. Khan Bahadur Khwaja Muhammad Nar, representative of the Gava •Sadr Central Oo-operative Bank, Limited, iod primary Societies of the Sadr Subdivision.

9. Babu Dhanuk Dhari Lai, representative of the Jehanabad Cental flo-ooerative Bank, Limited. wuuu

10. Babu Unrra JJaw Sondhi, representative of the Muzaffarpur Central Co-operative Bank, Limited. aLlJul a n t r a l

11. Babu Mahendra Prasad Verma, ^representative of the Siw

Co-operative Bank, Limited, and Primary Societies of the Subdivisto n

12 Babu Sukk Deo Narayan, representative of the G o n d i i - • n * • iio-ouerative Bank, Limited. QB Uopalgaoj Central

13. ilaulavi Waiih-uddin Khan, representative of thn "Rk I Oo-ouerative Bank, Limited. "tegaLpar Central

14. Babu Ramni Mohan Ghosh, representative of th*» ttfl„i™ n J. , „ operative Bank, Limited. a n l i a C e n t r a l C o "

15. Babu Rashbebari Patnaik, representative of the Banki D »Jo-operative Union, Limited. " o r a P a r a

16. Babu Mihir Nath Ray, representative o( the Bihar and Orissa Provincial Oo-operative Bank, Limited, Bankipore.

17. Babh Jadubir Prasad, lepresentative of the primary Societies in Jehanahad Subdivision.

18. Babu Ram Saran Mali ton, representative of the primarr Srwi.*h'no ; Musrfa'P"!" Sadr Subdivision. * e t l f lS m

19. Babu Narendm Nath L\i«s, representative of the primary Sad r in Madhipura Subdivision. J ' W 4 e u e *

20. Bab« Bijoy Kumar Roy, representative of t!ie prima™ Sopiot;*. -3Janka Subdii iwon. v * "series itt

Other Gentlemen.

21. P. T. Man^eld, Esq., Subdivisional Officer *n(\ nu • Omlml Co-operative Bank, Limited a d ^airman, Bai-h

i

. 29

22. Maulavi Abul Aas of Patau*.

23. Khan Bahadur Shah Wajid Husain. J

24. Manlavi Saiyid JHadi Hussain, Chairman, Gaya, Central Bant JJimited. *

i

25. Captain L. G. Miller of Digha.

26. Dr. Ali Hasan.

27. Babu S. D. Varma, Secretary, Bihar andJOrissa Provincial Co-operative. Bank, Limited. *

28. Babu Rajkishore Varma, Manager, Co-operative Press.

29. Babu Bilas Chandra Sen Gupta, Manager, Jehanabad Central Bank Ximited.

30. Babu Mathura Prasad, Manager, Supaul Central Bank, Limited.

31. Balm J. P. Bhatnagar. Government Auditor, Co-operative Societies.

i %'l. BabuAyodhya Prasad Varma, Secretary, Bihar and Orissa Co-operative ( federation, Limited. ,

33. Babu Hari Dass Ray, Deputy Registrar, Co-operativB Societies, Orissa X)i vision.

34,. Munshi Shamshir Jang Bahadur, Deputy Registiar, Co-operative ' Societies, Patna Division.

35. N. K. Bay, Esq., Deputy Registrar, Co-operative, Societies, Bihar and Orissa.

•56. Khan Bahadur Mohiuddia Ahmad, Officiating Registrar, Co-operative: Societies, and ex-officio Governor, Bihar and Orissa Co-perative Federation,. Limited. ,

1. R. 8. King, Esq , was unanimously voted to the chair.

2. The Governor then delivered the following address :—

BROTHER DELEGATES,

I do not propose to inflict another long speech on you. Li fact it is be­yond my capacity to do so, But I Ti-Hi lo place befoie you ^erv clearly the idedh tor Tihioh we as Co-operators exist autl to <mtticr_which this Federation is brought into being The Federation is only a step to link the interest of all our societies in different parts ot our Pi evince, to cement the brotherhood of Co-operators. Remember, co-operation knows no ca4c or creed. I t embraces all— Brahmin and Sudra, Musahuan, Hindu and Christians. It has one Creed only, of universal brotherhood—and by the touchstone of that one ideal it seeks to achieve the moral and economic regeneration of the people There is no room for selfishness or of parochial views. We all stand oi fall together. We cannot look on while others stiu^gle unsuccesslullv. Wc must be prepared to help the weak for they aie members ot the same body 1 have made these remarks gentlemen because there i s always the danger ot our ideals petting obscured hv the glare of selfish gam U 18 necessary to hold up our ideal constantly before us so that theie may be no back-shdinoi

ovement. He l,ves and moves and has Ins bemg in the movement Tr entire energies and bought are devoted for its furtherance. Tho c i i t i c i l l ! 8

fL T^S I • ° ° ° n M e 0 f f e , ' e d in t h 0 h ^ mte.^18 of the i novenS E i V do^ no offer ,t in any captious spirit but onlv as a liiendly * h i e " " u h £ e

30

the movement. They will then indeed have Httlo need of the Registrar's advice. A lot of public money has been invested in the movement, owing to the confi­dence inspired by the inspection and audit provided by Government through the Kegistrar, and the " Ultimate responsibility " as laid down hy the Committee on co-operation '• rests with"the Government as represented by the Registrar and

" he cannot abrogate bis- responsibility in the matter of directing and super vising the co-operative audit and supervision, and mast maintain an efficient direction and control to-ensure that the movement is kept on co-operati-ve lines." Our ajms—.yours and mine—a-ro the same Wc are all pursuing one object, and we wish to unite and co-ordinate all the forces which make for progress in the true co-operativo path. Our motto is "One for all and all for each". Our whole future rests on the realization of this ideal in practice. We express it in our root principle of joint and unlimited liability which means that we supply each others want The solvent people risk their solvency ior the credit of his fellowraea who nee 1 it I hope the Federation will in tke ua realize more fully this common bond We shall herd discuss and decide on the best means of progress and in our deliberations we shall subordinate our personal views and predilection to the will of "the majority. Your duty will be to carry out that with loyalty. I ^n not detain you more. I will only appeal to you" in the old stirring words of

i) i . ; ' '

" Let us then he up and doing

W ith a heart for any fate

Still achieving, still pursuing

Learn to labour and to vt ait."

3. The Governor explained that under By-law 3 the FPd r undertake the supply of printed forms to Co-operative Societies S ^ ?°?}d

course of business and that lie was authorized by the Council held n E ? ^ &B

a r Y 1918 to negotiate with the proprietors ol' the Rainiti Pre« J t i , • e b r u ' it over in the Federation. He had entered into negotiation ttflTn T llev t o - t a k e

.1st April 1918 in anticipation of the approval of the enn*™^ ,° .* ,0 v e r f r °m agreement made on i ith June 1918 was registered on lfith T,,i ? ^ e n t u r e o f

name of the Press was changed to " Bihar and Orissa C o l T- 8 * m l t b e

condition on which it was taken over bv the Federation p e i a t l T e Presa." The bond of agreement was laid on the table \vide Append!* Ai ^ e i J U o u e ^ in the the Congress askod for:— r r * a J a ™ the approval of

The Congress unanimously approved of the action f «. taking over the Bajnib Press on the conditions mentioned £ J ° v e r n 0 r i t t

4. The proposal of the Governor about the iSSUP Af ^ * P p e a d u A" tive Gazette by the Federation was considered and approvd 1, n u s l co-opera-

BabuMihirNath Hoy suggested trnt the GazeH ? \ 7 ^ C ° D ^ e s s -publication, hut the Governor explained that the Fed™r l d b e a monthly to undeitake such an elaborate scheme at present on 7 W O u l d llofc °e able culties and also pointed out that « Co-operative J o u m ^ 0 ^ oE financial diffi-Orissa" was being published and that the Gazette wL , 6 m r a l ' B i h ^ and news about the workings of the different Central'Bank? °?!y m t e aded to give in each area might know uhat is tying done in others &° h e °°-<>pe*atore

5. The question about the levy of contribute' then considered The Governor explained that If * n r „ a u ( l H charges was letter No. 276-872, dated the 2nd February 1 9 T ( A j L S f ^ * *» o 5 X the point on obtaining reports from Burma and Bengal h m * b u s s e d

At Burma the rates under contemplation, to be lQ v i e a

Societiea with working capital under 1U 5 ) 0 0 ( ) " ~

. . « " " P - ^ 0 t o R , 1 9 i 9 9 9 llH •• - " " * 20'1J0° - ~ . *t S

31

Whereas at Bengal a contribution of £! per cent on working capital of primary societies and £ per cent, on" the woking capital of Central Banks were proposed to be levied. After careful consideration he eame to the conclusion tha t contribution at 1 per cent be levied and he proposed that half of this should he borne by Central B-mke and half by the societies in the way that Central Bank should reduce the rate of interest charged on loam to societies by half per cent [.to 12 per cent, and all societies of two years' standing will pay x per cent on their working capital. So practically, when the Central Bank reduces the rate of interest i t wil 1 ha \ c nod to pay any contribution but the .primary societies only will pay at 1 per cent on their working capital.

The Federation bas been registered on the understanding that it will receive no financial assistance from Government and should not levy contribu­tion for audit charges oa societies until orders on the matter from the Secretary of State ai-e received. But there is no objection to t o n n n h t q proposal so as to give t'ffecfc.to it as soon as the matter is settled by Government. i

The teems of the assistance asked from Government is quoted beloff :—

" I am therefore to recommend that a non-recurring grant of Es . 15 000 should be made lo the Bihar and Orissa Audit Federation when constituted and that it should further receive E1' 15 for each society of less than two years ' standing oi siluated in aboiiginal areas and for three years f'ro.n date of t h e foundation of the Federation R&. 3-8-0 for every othei Primary Society. A set of new registers should continue to be presented to eich new society recoveries being made for all other printing done for the societies and when the Federation undertakes its on n printing it should receive a grant sufficient to cover i ts expenditure under this head."

He, therefore, proposed that :—

{a) Central Bank should seduce | per cent on the existing rate of interest on vihichthey grant loans to societies—the Provincial Bank being excluded from this operation.

(6) Pr imaiy Societies of two years' standing pay a eoutibution a t 1 per cent on iheir working capital,: and

(c) That this proportion of bearing the expense of,audit btvveen Centra l Banks and societies be approved.

A rough approximate estimate of income and expenditure was explained to the Congress calculated at 1 per cent as follows :—

Income.

Rs.

"Working capital of

Agricultural Societies (Fig. t

for 1916-17) 21,61,057

Contribution 1 % ... 21,610

Non-agricultural unlimi­

ted Societies Us. 1,91, 50

Do. at 1 % ... 16,945

E\penditure.

Salaries

T. A.

Contingencies

Stationery

Stamp, etc.

uniorseen

. . .

. . .

!

Es.

16,150

8,000

4,000

- 50O

500

2,000

Total 41,555

Note—The receipt does not include the G o v e r n i n g i -, as explained above- w * e i n m e u t subsidy a s k e d

31,150

for

approv would '

After full discussion the Congress expressed t\a ,.• L, •oved of the Federation tovying%udiuE££ " 2 ' ^ / G " B r a m e n f c Id be much relieved of its 4 c u m n g e x p a n d X ^ <*«™***t

ig expenses a u d i t may fairly be expec ted

32

•that the grant asked for would be sanctioned, and calculations should be based on the assumption that after deducting Es 15,000 from the approximate expense of Bs. 31,000 and odd, the Federation had to find its. 16,000 and odd only for its expenses I t was seen that a contribution at a reduced rate of 4 per cent would yield an income of about Rs. 20,000 and that this would cover tbe total expenses ot the Federation.

The C< ngiws, therefore, resolved that the maximum rate at which con­tribution be levied by the Federation on societies o\er two years' stau ding, be fix­ed at £% on the working capital at present, half of which was to be borne by so­cieties and the other half by Central Banks and Unions m the manner m may be decided by the Council; and that the Council he authorized to determine, subject / to the maximum limit already fixed, at what rate it should be levied from year to year

' 6. The Governor explained that under by-law I I (e) all the members of the Council retire but if the Congiess agreed there could be no objection to

' their being eligible for re-election.

The names of the members of the Council hitherto holding office were •—

1. Bai Bahadur Radha Govind Chaudhuri of Banchi.

% Bai Sahib Praphulla Chandra l'atnaik of Balasore.

3. Babu Satish Chandra Chakravartti of Khurda

4 'tai Sahib Raj Prakash Narain cl Fatwa.

5. Bai Sahib Lahshmi Narayan Lai of Auran^abad

ii. Bai Sahib MahendraTiashad of Siwan.

7 Bai Bahadur Lekb Narain Singh of J3arh.

8. Bai Sabib Ashutosh Mukbarji of Madhipura

9. Saiyid Hadi Hasan, Esq., of Gaya.

10. B. S King, Esq., of Jhangharpore.

I t was unanimously resolvpd that .—

1. BAI BAHADUR BADHA GOVIND CHAUDHUHI O P I U N

2. B A I S A H I E PRAPBULLA CHANDEA PAryAiK0F B ^ ^

3. BABU SATISH CHANDRA CHLLRAYAETTI O E K V V ^ ^ ^ '

1. BAE SiiiiB BAJPRAKASH NAUAYIN o r p 4 T W *' •

5. BAI SAHIB LAKSHMI CARAVAN LAL OP ATT, R A N&ASAD

6. B A I SAHIB MAHENDRA PEASHAD OF SiwAN

7. B A I BAHADUR LEBLH N A E \ I A H SINGH OP BAR

8. B A I SAHIB ASHUTOSH MCKHAEJI OP MADHI

9. S A I I I D HADI HASAN, E S Q , OF GAYA

10 R. S. Kiv&, ESQ., JEANJHAKPORE,

pe elected as members of the Council.

7 With the conneiit ol the delegates uresen.t t U e in], . w e r e then discussed— t U e M l c m ^ ^ ^

(a) Scheme inr Agricultural Association bv to; a i -L T J 4 d ( « a « Appendix C ) . - '3y * a i ^ l u b L a k **i Narain

TOi,oi^:se

83

one at Barh and the other at Nawada and their working was watched with interest when the question would be thrashed out in the meeting of the Council and put up before the nest Congress.

It was unanimously resolved that the progress of the two agricultural asso­ciations at Barh and Nawada be carefully watebed at pre*ont and that the ques­tion may be discussed by the Council before being put up before the Congress.

(b) Education :—

The Governor explained that the Registrar had issued a circular letter (Appendix D) desiring all Central Banks to avail themselves of the opportu­nity afforded by Government to apply for block grant-in-aid to spread primary education, in the societies. I t was illiteracy which stood in the way of the success of co-operation and he was sanguine that the Central Bank would not miss this opportunity.

' I t was resolved that all Central Banks and Unions should apply to District Boards for such grants and appoint a special committee for the purpose of employing the grants for the furtherance of education m the Subdivision.

(c) To obtain license for dealing with standardized cloth :—

After discussion it was resolved that—

" The Congress is not in favour of dealing with standardized cloths with­out knowing the rules and conditions. After the rules and conditions have been circulated each Central Bank should decide whether it should take up such an agency."

{d) To invite Urban Societies and Stores to become affiliated to the federation :—

The Governor explained that in the 3rd Co-operative conference it waa resolved that a separate uuion for urban societies be started but that he did not see any necessity for it and that if the congress be of opinion it maybe amalga­mated with the Federation and the Urban societies asked to become affiliated to it:—

It was unanimously resolved that the- idea of Urban Society and Stores-being affiliated to the Federation be approved by the Congress and they be in­vited to become affiliated to the Federation.

With a vote of thanks to the chair the Congi-ess was dissolved.

APPENDIX IV.

Proceedings of a Co-operative Conference of the Managers of Ceatral Banks held in the Secretariat Buildings a t Patna, on Tuesday, the 8th April 1919.

Present:

1. B. A. Collins, Esq., I.C.S. ... . . . ... President.

2 Khan Bahadur Mohi-ud-din Ahmad, Registrar, Co-operative Societies Bihar and Onssa. '

3. N. K. Bay, B B (J- ' D e P u t ? Registrar, Co-oporative Societies, Bihar and

Orissa.

4 Mimshi Shamshir Jang Bahadur, Deputy Begistm, Co-operative Societies, Pafena Division, l *WVL-

5. Babu Han Das Eay> Deputy Registrar, Co-operative, Societies Oi'imn

>

31

6. Saiyid Muhammad Khalilur-Bahroan, Sub-Depuiy Begistrar, Co-opera­tive Societies, Bhagalpur Division.

7. M. Abdur Bashid, Sub-Deputy Registrar, Cooperative Societies,

Tirlmt Division.

S. Bai Sahib Mahendra Frashad of Siwan.

9. M. Nazirul Haijq. of Nadaul.

10. Bai Bahadur LekhNarayan Singh cfBarh.

11. Ballu (now Bai Sahib) Kaj Prakash Narayan of Fatwa.

12. Bai Sahib Praphulla Chandra Patnaik, Secretary, Balaeore Central Bank.

13. Babu Tndrasan Bam, Special Officer, Co-operative Societies, Bihar

and Orissa.

H . Babu Mathura Prashad, Manager, Supaul Central Bank

15. ., Saroj Kumar Sen Gupta „ 16. „ Jamuna Parshad

17. „ Sital Prashad „

IS. ,, Sidbeshvar ,G hosh „

19. „ Bilas Chandra Sen Gupta „

20. M. Abdul Latrf

• 21. Babu Surendra Nath Das „

22. ' „ Jagannath Prashad „

/ 23, „ Chintamani Baotarey „

24. Iff. Shah A. T. Wasi

25. Mr. Conetantine Cornel „

26. M. H. Balkbi

1. On the a:rival of Mr. Collins Khan Bahadur Mohi-ud-flfTi A l , m , . opening the Conference spoke as felloes :— U n A h m a d - i i

" GENTLEMEN,

Before we begin our proceedings it is my duly to P v ™ 8 and on my onn our sincere gratitude to Mi-. Collins for t a l d ™ ^ y°ur ,beh&H' come here to attend Uris conference and the meeting 5 U v ? * t o

Council His advice has been of the utmost value io all^nf feneration v rote to him that all of us the co-operators oi the Proving, *B

T ,*n<i w h e i> I T v . T _ i _ •""'t,» wouiabeeztremp]v

Dauktpur „

Nawada „

Muzaffarpur,,

Madhubani „

Jahanabad ,

Barh " i:

Madhipura „

Aurangabad „ •Khurda

J!

Gava Siwan

Bihar

rats irom an aumDie mortal nice me. You J;no\v, gentlemen +1 T certifl. the real founder ot the Co-opcratne movement in this p m • M F- Collins is follow the path indicated by him it is bound to lead L f " c e a»<J if we can We all know the great interest which lie takes in fi SU( icess in the end j ow lie is in close touch with all that is going on and T t v n i o r e m e i l t . Eveij fitting way ol paying our deep debt of gratitude bv resnl!- ^ lt Wcra 'd be ft

siflbtio an interest m the movement at, be does and r e ° t a k e « enthn

35

Uai Bahadur Lekh Naraiu Singh, seconded and Babu (now Hai Sahib) Bai Prakasli Narain associated themselves with the sentiments expressed.

2 Mr. Collins in thanking the meeting''for the appreciating remarks said that he firmly believed that in the development of this movement lay India's ' best hopes The changes which he saw in 5 years was wonderful. When he first took over charge there were very few societies of this standard correspond-i n " to the present " B " Class whereas now we have quite a good proportion of such societies. I t was true that our progress was not such as to arrest attention but if it was less spectacular, our foundations were certainly laid on u sounder basis. In conclusion he said that he felt very happy that the charge was now k i t in the hands of such a competent and experienced person as Khan Bahadur Mohi-ud-diQ Ahmad and he was equally glad to see that he had so many willing and able supporters,

3. Khan Bahadur Mohi-ud-dia Ahmad, in addr.s ng the C o n f e r e e siul ; -

GHXTIEMEN,

I have asked yon to meat m3 here so that I nriy spaa* to yon on matter 1 nave asK.ec y™ responsible du'aes as Managers of Co-

concerning your duties J 0 " 1 " 1 t a u h e ^ c r y start that hitherto operative Banks. I am sorry to have to »y_ ai i encounu-I have s e n little in the method employuL • y j o u ^ & ^ inB . S o m B o f y o a h a T e i i i d M d t i ^ t o ^ B J ™ the societies from bis- • I may say and endeavoured to save the Bank a * pitfalls* So far as * » h M " " j f a m * "r t o l b e i n f satisfied with this,

-hut I am sorry I ^ v e t o aay w f *J J ^ ^ ^ b e r e d what eo-operation aims How iudeeJ can I be satisfied w h e a l t » J ^ ™ " l e f r o m" f a l l i n „ i u t o at ? Co-operation is not merely » J e v I ^ ™ t ^ " L L ^ to s u c e s s - t o moral d i t c h e s - l t is a l m n g and c r c a t i j foree t o j a c l p p m e _ t h e path of and economic victory. * O T t ™ ^ ' " ^ ^ ° „ has been charted and ni-.ioTi'ss i« not hid from our view, tlie co-opciawo «u>j S a v e o n h f to learn how to ? uide our ships and stick to the, n , h t points of be con n i s Consequently I have nothing novel to pat forward to you. . I shall on y S c r i b e to von what has so often been done, viz., what is real co-opera-ton and what is not co-operation j and I shall point out some of the common ™-c o - o w L methods found all over the province and try to explain to you the kindPof Soeiety and Bank ^h icha l l of you mast endeavour to approximate. W what is the Mnd of Society one so frequently comes across and which makesthe prospect so gloomy ? Lot me describe. There are a number of dishonest and un­scrupulous ro<mes, the chief of whom are the Punches. Tnese borrow heavily and are the worst defaulters. The Treasurer uses the cash balance ic rh is mvu private purposes. Meetings are not regular and when they arc held *ery tew <utend them The general body of members do not know what is going on m the society and care less so lon ? as thev are not both-red about paying their Kiats. Mutual control and vigilance are conspicuous only by tneir absence. This picture, you must know by your experience, i-> not by any meins over- _ drawn Now what percentage of societies in your area answer to this descrip. tion ? In somi1 area at least, I know, it is quite SO per cent. If this is so, it may well bo asked how su«h societies came into existence at all. The an­swer to that—the only answer—is Uck of real earne.tacs- and want of sustained efforts on the part of the managers. _ If the managers wevy veatlv alive to a souse of their responsibilities, it is impossible Lo behave that socie­ties of tins description can figure or rather disGirure th'i list, o{ societies affiliated to any Co-operative Bank. They mu^t oh her he improved within a reasonable time or liquidated. Now let mo mention some un-co-opcrathe and unhusiue'slik© methods employed ia m<wt areas. A very c o m m m defect is that the Banks do not follow any definite prugiamrae. Soma ni you may remember that there is a circular on this subject ami e.ich bunk is instruct­ed to h ive a programme drawn up for the y.;ar and dihlil 'mtc the work you

Raters are beiric:

36

revised iust now, whepeas the revision should bave "been completed before January This is a common example of delay and procrastination. Let me sive vou an instance of a defect of another kind which I find to be fairly common—the defect of overdoing things—of doing things for societies •which ou^ht- to be done by the societies themselves. On receipt of loan applications some Banks are in the habit of interfering too much -with the individual loans applied for, by particular members. Now pro­vided that the annual general meetings have been carefully held and the borrowing limits of individual members fixed with due regard to their character and assets there is absolutely no justification for interfering with the loans

lied for by individual members. All that is necessary for you^to see is that the borrowing limits fixed at the annual general meetings are not exceeded. Within such limits societies must be allowed to exercise their discretion. -J: exceptional cases where a loan applied for a particular member is very big

nd th" purpose an unproductive one, it may be necessary to see that the !AMPTV "had considered the point in the meeting and if not to ask the

• tv to do so. In no case should the loan be disallowed by the r w r a l Bank if the members after considering the point sanction the Wm Societies must be allowed the liberty e^en to make mistakes. An-i + w instance of overdoing things is the way in which punishments to d i v i d u a l members arc executed. Some officer of the Bank goes and gets

resolution recorded without bothering to find out whether the members at nil approve of it. In fact, the societies have all perhaps now got the idea that fhe Central Bank authorities have the power to inflict punishmeuts on individual members—an idea which must be destructive of the growth of a sense of healthy self-reliance. I have known instances where the members have sympathized with a delinquent punished in this manner by the Central Bank. The Central Bank should try to educate the opinion of members and should not in any case force any decision on them. My experience is that the members are quick to respond when it is properly explained to them that a particular course will be for their benefit or that a cer­tain member ought to be punished for the sake of the discipline of the society. If members are unwilling to punish wrong-doers it simply means that they do not understand the principle of joint liability and mutual control and that the members require thorough instruction as regards this. N0fc infrequently you come across cases where the Treasurer had disappropriated the cash balance but the members instead of handing him over to the Central' Back authorities deliberately try to shield the culprit. What do you think is the reason for this? The only reason is that the members had not been taught that the money belonged to them and that the attempt to defraud was directed against their interests. Once they understood this, they would not require to be told that the Treasurer who misappropriated the society's cash balance deserves to be severely dealt with. The principle then, as has been repeated so often before, should be " Give all possible guidauce but do not dominate. Do not do things for the society, but teach the members them­selves to perform them. " Your object is to train these societies to indepen­dence. You must watch and correct their mistakes, not by writing orders in their minute hooks but discussing with them and arguing with them and making them think.

I should like, while I am on this subject, to point out the unbusinesslike methocla adopted by most of the Banks. The strict observance of the by-law and rules is a matter of primary importance. I pointed this out in the pamphlet " How to improve a society" and J explained that the Central Banks can cLo a great deal by way of training the societies if only it would insist on the strict obseivauce on the part of the societies of their bye-laws and resolutions. The Central Bank should not only teach the societies to do this hut set an example to them in their own relationship with them. For example, there is at present no systematic effort to enforce punctuality ot repaymeut and societies are allowed +,Q default year alter year without being required to obtain a formal extension of their "Kists, and the Kists are ultimately reduced to little moic than nominal

dates. I n Co-operative Banking, concerned as it is with financing agricul­turists, some latitude has of course to be allowed in view of the uncertainties concerned with all agricultural operations but it is one thing to allow exten­sions for good reasons and quite another to regard the Kk t s as mere crnaments for the Loan Register ! "When we compare this attitude with the ordinary practice of other banking institutions where the drawer of a pronote is ad­judged to he a bankrupt if a pronote is not honoured on the due dale and hour, we can appreciate what an object of ridicule your Banks are ant to become if so little regard for punctuality is shown, as is the case at pret>ent_ Punctuality must he enforced unless the societies are able to satisfy you fully that they could not keep to their terms for reasons beyond [heir control. The societies must he made to consider in a general meeting eaeh individual case of default by a member, granting extensions in deserving cases and taking coercive measures in the case of others. If the societies can be properly trained to do this a great step will have been taken not only towards that mutual control which is so essential a condition of success but towards a proper appreciation of the societies' obligations to the Central Bank. There is again that most effective method of traiuiug which most of you have not taken up with the eagerness, I should have expected to see. I refer to the formation of Guarantee Unions. I have no 'doub t that a Guarantee Union, wheu carefully trained, is the best agency for supervising the affairs of

. the affiliated societies—much better than any Central B-j.uk, with the ' cleverest manager, can hope to be. I am all the more surprised to find so little effort made in this direction because of the immense relief " which the formation of such Unions would bring to the managers, apart from the great security which they would add to the Central Bank's invest­ment . The Unions arc also an excellent agjncy for fresh organization., In Supaul some very good societies have been started by the Unions. Th« Punches with their local knowledge regarding the character and credit of the prospective members are able to begin with desirable and honest members only. Of course the good results at Supaul is due to the careful training the Guarantee Unions have received.' As everything depends on this training the Central Bank cannot be too careful about it or devote too much time on this

, work. The Central Bank should endeavour, from the very beginning to make the Uninon realize its responsiblity as regards the internal working oE i( s

affiliated societies. Everything should be done through the Union and there should be no interference fiifch its authority. I t is not necessary to ha re a monthly meeting of. the Union. Two general meetings as laid down in the bye-laws should however be carefully held. Before these meetings the niembeia of the Union should make a thorough inspection of all the affiliated societies so that their condition may be familiar to all. In the initial stages oi the working of the Union it is necessary for the manager to attend the meetings and. discuss all the various questions affecting the interests of their societies and teach them to think out the best plan to serve those interests. The appoint­ment of an Inspecting Clerk by the Union, as I hear has been done in otie casn is just the kind of thing which destroys the spirit we wish to create! The Inspecting Clerk maintained by a Guarantee Union cannot be vei-y well qualified because the Guarantee Union cannot afford to pay a salary big enough to attract a properly" qualified man, and since the Central Bank maintains an Inspecting Clerk there appears to be no ohi'ect in substituting a less qualified man in the plate of a better qualified one. Ba t the most objectionable part of this business is the fact 'that it tends t o ' lessen

the sense of responsibilities in the officer of the Guarantee Union who would he inclined to throw the whole weight of responsibility on the shoulders of nn incompetent clerk who cannot have any personal interest in the woflS™ r the so-ieties. e o l

To sum up then you must have the standard—the co-operative s W I i v i always before jou . You should not be satisfied with a n y t h i n - U s H i n H h l absolute standard. The Central Bank and the G u a m n f f Union i o v the a g e n c y for improving the tffieiency of the societies and t h e ' n r o , ^ ?t improvement must be kept on by sustained efforts t i l l the standard £ h ™ attained. What is then the real Manflwd ? v011 have h^n 4 l fi t S

40

to the innate faults of the members. I was set to thinking of devising m m P

means for reducing this ignorance as far as possible 4 e n the idea T» coaching class suggested to me I consulted the Secretary who hfehlv approved of it A definite proposal was then placed before t\d TV L g 7

13th February 1918 and '.hey were pleased to a p p * » e o f i t l r f Jf0*0* °a 6 annas as daily allowance tor the persons who would attend th ? 8 a n e S ° n

the scheme took shap^e and started working in Noi ember 1918 C

El ery Sunday a class is held at my house from 1 9 . , , * o Wri ters and Punches are selected from the bad and a T e £ * M * M t l s t * the cbss . A frpsh batch is taken in as the old batch is S ^ f to loin

imined (not all at once but gradually a s each student V™ T*^**1 b e i n S the points his place is filled in by another). "Pilars to have learnt

The following subjects arc mainly taught :—

(1) The Twelve Main Points in question aQ<] a n B w e r formg_

(2) Dye-Saws.

(ft) The method of keeping the Society's boob.

(4) The questions which Local Auditors require them t the lust audit uote of so™ of o u r had Moieties. l n 8 W a i t a k i u= *« example

To ensure regular attendance they are paid al attendance, i.e., on Sunday, 26th January 19iy t | T

f f a y s &r their previous on Sunday, 19th January 1919. The amount to'b* w 7 C T ? ? a i d f t ' r at tending aud the balance due to the absentees on the n Z £ , ^ d r a W f l o n Saturdays adjusted at the time of passing the nest bill if £ ™ * ^ d a y is invariably m time from the absentees. The candidates attend S i e X C U s e i s received and regularly, One batch of 8studentehas abenrlv L. , s s Vev7 punctually They have been told to teach all they ban, fit T ^ ^ ^ ^ S g S members wtmse knowledgewill be examined at the H ™ / W n 1 > u n c h e y a n c l

- remuneration from the societies. And they hare « ? ° f l a d d e r i n g their themselves for an examination before some s H n n ^ V V J e e u to^ to prepare I t is hoped that j f e w o f a e o M d M a t B s X S t u t ? ' ^ ^ ° f t h e S will be a o a m m o d ^ t h ° « * ™ t i o i i

o l societies it tflc iaea >8 approved of by the Registrar ^ r e s P e c " ™ groups

Submitted. The 12th February 1919.

SIDHESVAE GHOSH,

~ , Manage?:

OFFICE O F T H E REGISTRAR, C O - O P p R A m r r

B I H A R AND 0 R I S 8 ! A T 1 V E S O 0 I E T I E S ,

M E M O . N O .

Circulated to ^ ^ P o / f t o ' ^ 3fflJ.cA 1 9 l g _

for opinion and for suggesting the best means for i m n r m l „ education amongst the Punches and members of Co-operative S ? VD"°Porative

M U H I - U D - D I N AHMAD,

Registrar.

A N O T E ON C 0 - 0 P E 1 U H T B M £ D r 8ALB SOCIETIES P 0 B 0 S I S S ,

Aimo8tpveryhou6cholc l r rm O r i ^ a Slows paddy and « i™ i tiott sell thei r surplus alter keeping sufiick'ut for their consul iirfi g C p r o l , c r "

consumption,

41

Landowners, mabajans and otlicr substantial people hold over their stock unt i l , say, June or July when price of paddy is very high and get substantial returns for their prudence in holding over.

People of small means have to begin to sell in January and Pebruarv as they h a \ c to j ay rent, interest on debts and purchase cloth and other necessaries of life. These people have to sell when the price is lowest and cannot afford to •wait till May or June to cam a little extra profit. The extra profits in their case go to the middlemen generally, tiie Marwari or the Maiman merchant.

Hers is a simple scheme for helping these small producers to get for themsehes the profit which middlemen get under present circumstances. They can do so by combining among themselves and stait ing Co-operative Paddy Sale Societies.

Let Co-operative Societies be formed in villages with moderate capital. Le t these be registered under the Act. Let the societies borrow some money if necessary.

Let members bring all their surplus produce to the society in, say, Feb­ruary and March and let the society puiehase the same at the c u n e n t market Tate.

Then let the society store the paddy for, say, 5 months and sell their stocks in June or July when prices are pretty hio.li.

The profits after making allowances J or a i c - e n e fund, interest or. borrowed capital and incidental charges can then be distributed among the inembeis in the shape of bonus, thus enablir.g them to enjoy the benefits of selling their produce almost at rates at which their monied biothren usually sell.

I append below a few rough calculations to explain my meaning" Suppose 10 house-holders start a society with a capital of lis. 200. Let them borrow, say, lis. SOU in February and begin their transaction.

Suppose paddy sells in February at the rate of 25 seers- a rupee. Suppese these members have among themsehes surplus paddy worLh I.OOO rupees -which t luy must disposo of in i eb rua ry and March. Let tlie society puicliase 2o,000 seers oi paddy from its members with its, capital of Es . 1,000. Then let it store tlie paddy up till June and sell it early in July w ben paddy is selling, sny, at 15 seers per rupee. They will get Es. 1,666 for their stock. "What will be their profit ?

BeueiotB. . Eipenditiire.

Sale price rf 25^00 seers oi paddy at 15 seers per rupee ... 1,666

^ , Be. Purchase piles o£ ^5,1)00 seera

of paddy at 25 Eeer3 per rupee ... 1 000

Interest on Es. bOft for 6 mouths at 1-2J pei cent, per annum ,. Kft

Incidental ehaige such as cost oT storing, allowances for dryaye, etc.

Profits

50

T o t l 1 - 1,886 Out of this gross profit of E s . 5 0 6 ; 125 percen t . , i. c , about R* U* ' •„

have to be taken to the reserve fund. This will leave E s \ l H f i ' -,- - ?xl1

a t 12 per cen t .>e given on tlie paid-up capital of Es . 200 Thi«, " 3 i U v i t t e n d

lor another Es. *4. The balance Es . 100 is available C d » W ) 1 1 ^ ° U n t

bonus. u-'-iiKJiuion as

Now take the cabe of a member who had to sell i nn i-m, inEebruary and March. Under ordinar y c i w u * X t Z , ™T V 1 ***** Hs-lUOonly. This he gets now also m W X o l \uLWOuld l l ! i r e S * b r ing , his M to the society. In addition in % X £ £ £ * ? £

42

completed, he gets another Es. 40 which is nracHrnTiv * • « » Trhith ™il help in mating hfe e a s y to ^ ^ ^ ^ ^ ^ a.d

Will every householder in Orissa think o 4 r thia '. i a e n or fflmm l ie same tillage are satisfied that t 7 l ? e . ^ h e i e 10 ™ i l benefit them, let them form themselves into a SOeie£ ? ]S «oniid and provided on . Honors y Organizer for e a c h SnbdiviS. * ^ r n m e n t has wUI help them m obtaimn^ l e g a t i o n of their S y J - ? ^ * C n

ihe borrowed portion of their capital. lJ a n d wiU arrange ^

H A E I D A S EAT

The 2Atk March 1919. 0 , W « Division

No, nciaoIL T.

GOVERNMENT 01? BIHAE AND OEIS8A.

REVENUE DEPARTMENT.

R E S O L U T I O N .

Dated Banohi, the 21 st November 1919.

- THE Report covers the period from 1st June 1918 to 31st May 1919 Khan Bahadur Mobi-ud-din Ahmad was in charge during practically the whole period. - . .

2. That ten new central banks have been started and 458 new societies of which 30 are non-agricultural, fafave been formed during the year is a matter for congratulation, the more so as the energies of District and Subdrmional Officers were necessarily diverted to war activities in the earlier part of the year and later to meeting the difficulties of the economic situation. The organization of 21 new guarantee unions whose function and importance have been described in previous resolutions, is also satisfactory. The Lieu­tenant-Governor in Council however agrees with the Registrar that still more rapid progress in the organization of these, unioas is needed to secure a more intimate control over the primary societies than the central banks can exercise and to afford the best rural co-operators more opportunity for learning to manage their owu affairs.

3. The growth of non-agricultural societies must necessarily be slow, as such societies require a higher degree of intelligence in their members, and a more intricate organization than mere money-lending societies. The Lieutenant-Governor in Council is therefore pleased to observe the lead given by Govern, ment servants in starting four new societies, the increase of Co-operative stores from BIS to twelve, and the rapid development of the Secretariat Co-operative Stores. He also notes with interest the increase in the number of weaving societies', of which the Eanehi Weavers' Store forms an excellent example. On the other hand the failure of the Bihar Co-operative Agricultural Association to sell the potatoes grown by its members at a fair profit illustrates the danger of attempting difficult business transactions without an adequate knowledge oi busine-s methods. It Mould seem that success in such transactions can only he assured wlicn societies ha\e lai-ed a much larger capital than at present and a

in a position t i employ business managers. The suggestion of the B.eeiRfri.n* ii.**, ... .; i -r. _.. J 1 .111 _ _- J....1 c J. . . . Bir,|jiar tn.ft.1 an A thai gncnlmral InspuUur should be appointed foi evtiy central bank must W-till the proposals for the reor^aniz-ition of the Agricultural Departmp' + 1 *' been approi ed by the Secrotary ol State. The close co-operation of Hi * cultural Miib tlie Co-opeiathe Department is a matter of supreme i ^S r i ' and thu Vdlue ol the central banks, the guarantee uaions and J

t?P01'''?UGe

societies as nn agency lor propaganda ot tiled irnurowm«mf«. • P r o l a n fully reabzed. •* rements m agriculture i

4. The progress of the Provincial Bank has been f • But in view oi it- impoitaiice to the stability of coow» *• y aatisfaGtom Lieutenant-Governor in Council hopes that W t f n J , e fln&n0e, rk public, particularly from Bihaifc, will .how a l a r g e I S ™ i a X ^ 0 u * 5

STATEMENT A.

Operations of Central J3an7cs

CJaaarflcut on

a) Froranelfll I*a> &~ Bihar au(L Ou*si Pro­

vincial C f-opcrat«u

Total for 19L? 13 {bj Central 1H iks—

Bibur Central Co-opera-tivo Panfc •J

Barb CentrnJ C > opera­tive Bank

Guya fendi k u teal Co* o p e r a n d Uanh.

JTaw aria Central operative hank

jabaiidbail Ccn lu l C o opert t i re 3ia ik

Aarai ™abiiil CuuUnl Co-

Ainih Cti t u l Co upern ][fv UuLkk

Bnia i h<-i irai Cu-opera live Ifci It

MuzaHu?iitir OkfDtjij Co-op^ntlivc JJuuk,

floruit ^ blftQU LuLiUbl Cu*GiGin

t i r e JJaulf

(ktpalgaiij Control Co-opexui^Tc Ufctik

OAtrajiora"— l±n turn ^untnil Co-

&ibib,i CL iiral Co-op LIB t TL U» 4ll

LjiiuljiEpur Cuttr.il <_• u o ^ r u m Unik£

•gaipur Lenin.) Cu

^kkdlJtpurj Leiktcal Cu OlJufSlIi'll i l i l l t

Suji»ul CLIUIUI CO-OJM: a -tWi Itauk

i^ujthJ Cfjm uL C > Ej[tbia tiVu IlLI L

ji EfusJir i intra! Cu opui' * ^ lUi J

u t al/v Jl-uik £ HFIK

i 'ur _ ^ L [ml Co Oicrc Uf£ lUI k

JJilLiIll C OpetBthC

Un- ri

H u m ibngli U i tml t j

iliii M UompAri Go ripcifltnL UUJDJI

LLLlUtk CLIL I IL I CO-

AptrjtiT!. Rink

Per i LciitraJ C o - n y " ' U\Q Un IJE

JTIjunJj Cou t ml

o ^ r u t ^ a Uairk

JtontaJpt f-

lotol (tpr COM .at Co

IDIS-IU, Tot-Ll Tor Ccnirnl C^

oHrailvo Uankfi, m? lb.

Giant' Total Jjjulutl

OuVfJ TOT^L, E'it7 JB

sail

KllurdO

iljlarfiv-*

ft;ll)r .,.

Elimiisk .~

5nH'nJp"> —

haidlioiliui S:idr

/ lare i i l i ...

1

,.

Toluf, Uo tson

—

Tolni S=ii:!)-.!iiu)

Wiial, Or jus

Tnial, tiiiiiinita;

(Jural 7'nlal, iaie-jir

CiscfJ Vctal 151MB

Lame doe bj—

He.

2,336

80£54

CB.lEl

17,18.131

63.101

2,920

Es .

S,''W

135

1,31"

SM37

6,33,621

23,W2

933

13.4IS

5,313

i*,nti

W a i

3, Ml

7.1H

VSC

W,ote

1.70.730

63, WO

28,564

J.oo.asr

17,000

1,BM

1S.6H

M.7M

KG

4,117

101

",iso

/3.22B

33,070

(20

1,07,226

Ea.

a.f:

30,:a

10,5B

so.ss

STATEMENT B—concld.

• STATEMENT D.

Operations of Unions.

ClntrloE,

Bihar and Qrissa. Co-operatira federation, limited.

Guarantee Unions—

Patna District

... G»J» ' »

Mozaffarpur district

Parbhanga „

Saran » ..

i

1 "CdttEot „ t

Balaeore ,

Total for Gaarautca Unions, 1918-19-

Total tor Gnarsntes Unions, 1917-lS'

ToEftl including Co-operative Federation, Limited, Bihar and Oases, 1918-19-

ffotnl including Co-operatm Jsderation, Limited, Bihar pad Ori^ss, 191M5.

I

STATEMENT H.

Central Banks—Balance Sheet.

CI a l loca t ion .

UkliQT aivl Oris?! PrOTJnciaLDank

t o t a l tor 1017-13

(1) Centra' Banks— /

BiLoc Central Sank ..

U J I ] ] „ „

Gaja Sa i l Central Bank

MnwndB „ t>

Jelianiibnil „ .»

Aurangabart n „

Sin i „ I ml— ftrrali Csffltrul Eank ••

Tlniar „ „ 'M -

SwoffnrpnT Conttal Sank

Satan— S n a i l Csn tu l Bank

GunnlL'nnj „ *,

nattlfrli Central Dank

liar1 Mi -mpa— liolifka Central UOIOII

lianlutpnr Central Bulk

"bltuiratpnr Central Bans

Madhiiram „ „

Surianl „ , ,

Ban Ira ,. „

llec-ianrai Central Bunk

Sliaifcpiua „ ,,

/'urn!,!—

1'n.nea Crnlra\ Back

.HunrH-

RMH-III Co-n[itrnt;vE>Union

H a i nbagh CcutiaL Bank . . ;

nauki Dora]mrjCcti1ral Banl

Jnifiur ,, , t

L'it rack „ „

KinJraimrn „ „

I V r i -

J ' j ' i Cnitral liauk

IJnr i la ,, f )

POIIIEOIBCB n i n ] Bant

Mniii l j iot LVaitnf Ban!.

To ' i ! lor Central JuntH, LOIS 19

i ,< .1 'vjrtirU Bruits, 1017-ts ,,,

Orar'f Tfi ia l ladodl i i f ProtinoialDanlt, Ifflfl-li)

fiiarr; Total inoiKaing Fwriatil*] 1MB*, 181MP

Cash iri h ind and bant .

1,33,943

91.(123

4.E33

01,80?

7,017

G i l

19,0W

2,ssa

3,034

15, S!1)

23,4 >8

0,051

5,34'

6rU3B

oi,?ei

7,11*.

11,403

]

301>

Mvkrt ^alue of UHP&l-inputs.

3

a t .

1,00,0:9

1 00.016

1,193

O.OJb

2,513

ojon

0,3'5

1,4]0

5,325

2,310

a»

e,Ko

sn.tse

7.T5

3,000

i"o

400

Loans

mrjnbcrs

(IQAIB).

i

KB.

...

717

..,

HO

\

so

79

I,(iinsdneb> banks and BOcidifB.

Intorest accr aed

to tlie l i a n t .

4,78,301

431,30!

(H.6M

1,57,143

70,230

1,8'.SIS

I.ia,!Ti

98,374

B.PSG

1,400

71, ?i

1JB.7SJ

00,031

S9.S13

1,3!, 744

1,03,193

62,160

1,00,068

07,366

00,593

1,10!

GOJ

IDS

4,309

4,535

1,05?

CD!

3?

19

1.7IIC

2,7<W

1,3-W

2,ia>

751

F-WMlt value of ElMkln

band.

631

EOS

881

*,»?[

1,024

0,053

1 !

10

is

2M

l,!5o

115

5S3

3, Ha

38

31

SM

700

Other JtEras,

Re.

1,483

1873

3,100

3.S01

B.SJB

17,6SD

5,793

3,591

USD

101

1,30!

1,1110

913

(123

3,051

11,370

T?

7o7

ISO

1,123

"on

U3

3

100

a 20!

2i>0

»^a

"Una

^ . 1B.S3B

4,089

»,014

10

f,6B(,

1-0

80,331)

3a,MB

81,093

-—_. 84,01*

Total.

Eg.

7,1B,001

e,09,H58

1,Of ,871

2, S 0^50

07,018

i,14,7M

l,0i,W7

1,07,110

7 « «

l,&)t

05.339

1,53, Oil 1

sl.efia

48,079

1,47,003

2,35.070

71,000

1,22,631

70,201

63,00

1,600

12,009

63,103

91,(123 f

1,173

1,6(1,317

1)6,302

! 1 M

i; , i 0

11,19;

1,37,781

SS.7.8

13,351

27,77,1!S

Loans and i^fjosits [rom non mcinlierB

nrnl from mem-bP19 LQ on In-

diTldml tapa-c i t j .

34,«,*ae

ae^o.oi r>

B E .

1,92,081

1,BB,417

1,93.416

66,807

B7,S18

1,20,851

63.105

4,313

«i,834

1,22,291

55,460

14,332

1,17,011

1,'3,111

00,618

78,091

55,211

40,9U

D.aco

67,010

61,311

400

1,0 7,2 ES

67.806

1E.0V0

h.000

Ol.BflB

58.017

18,00,5113

ia,ai,ooa

10,G2,648

IBMHO

Loiiia and tl*-poslcs from

provincial and central

ban td. 2 3 o I A .

11

E B .

1,41,050

61,074

14,007

i,SQ

79,652

37,031

i"

10.000

. 22,830

8^00

12,451

13,020

8,340

13,000

15,303

3,510

11,362

3 3 , 3 "

in.iifo

2,00,310

a,SJ,»'i>

4,8^,178

Laane ILDC dc^crslti

from Eoeictics. 12 of A-

12

Ks.

2,21.480

2,73,751

163

1,615

113

933

• 833

...

224

040

...

1,7*9

100

51

1,010

0

12,121

1,821

033

...

«

37

01,93-1

25.515

•2,40,214

4.W11S :i,Ul,2"

LlabiiltieF.

Loans from

Qfficm-

13

I ts .

Sla te ci^lUl paid upi

11

1-0&W

18,6*

if,"**

lute*** due * S ' " *

tanfc.

KS-

3,505

1&S>

3,8C9

0 *

s.eie

3,100

1,100

44?

njcnt ilu°.

El,

101

33 0

111

231

!25

433

103

119

2SD

303

Otlltr itetDB,

Begem? land Liirier|

OJ Act II of 1812.

Othot [nTids.i nrliPlrl-

J.600

14.55S

S,035

700

1,011

a.ooi

i,:n.i

£57

IDS

1H

ESI

674

as

1,151

1G.2IO

!11

1.017

ir,ur 0,810

4,310

4, JO 3

l nlu

o io;

5,310

1,31b

6,403

2, (EC

M9

0,642

8,258

2,061

0/J33

C10

117

^ , l>utlS-

in~E lands, C1C.

lis.

6.200

G,G44

a, wo

10 107

llQtCfl profilG Partli'd lorwartl.

Vs.

110

S.904

473

1,M«

!,10C

f,M8

5.300

3,000

4,378

SSn

820

190

PrOlit 4- ami llJSfl —

ToUt. ' (fulnin-n 14, I Prclic and Lias

gialcraum )

Us.

0,57,773

6,03 "22

Rs

+20 29=1

+0 ?3C

1,11,339

2 28,175

0G.W0

!,14,131

1,50,911

1,05,717

7.169

1/M

SJ.743

1,31,sue

7?,nir)

—3,315

+ 1,373

+i ,cec

+08S

+ ',2.08

+ 1.11S

+1?

+11 !

+ °,ni!

+ 4,7 9

1,040

Rp mar ts

1,41 TO

32.WJ

T5ft>5

1,16,50}

a7,Bj5

07,5811

+fl.tii5

+ '.,107

—4,9 nn

-1/S3

t B,4«

* 1,215

42

completed, he gets another Bs. 40 which u practical^ a ri^r H *

*h1 Ch will help in ma]dng Iife eaay to L £ nJSJS'S; ^ "Will eTery householder in Orissa think 0v\ i this ' ^ * L

men or more in the same Tillage me satisfied that t K ? 6 . ? W h e r e 10 m U benefit them, let them form themselves into a SOcie ' P " *0 t t l l d a ^ provided on . Honorary prganizer for each Subdivision a i l f f ^ e r n m e n t *** will help them m obtaining regulation of their society J J n B ^ntleman

ihe borrowed portion of their capital. y u a Wl1* arrange for

HARIDAS EAT,

' ^Putv Ze9istrar, ^ ^

ZXc 24M March 1919. 0 n M a L^ion.

JN O, no.iaj B.. T.

GOVERNMENT OF BIHAR AND 0RI8SA.

REVENUE DEPABTMENT.

R E S O L U T I O N .

Dated RancM, the 21st November 1919.

' • THE Report covers the period from 1st Jane 1918 to 31st May 1919 Khan Bahadur Muhi-ud-din Ahmad was in charge daring practically the •whole period. , ,

2. That ten new central banks have been started and 458 new societies of which 30 are non-agricultural, have been formed during the year is a matter" for congratulation, the more so as the energies of District and Subdivision Officers were necessarily diverted to war activities in the earlier part of the year and later to meeting the difficulties of the economic situation. The organization of 21 new guaiantee unions, whose function and importance have been descubed in previous resolutions, is also satisfactory. The Lieu. ten ant-Governor in Council however agrees with the.Registrar that still more rapid progress in the organization of these umoas is needed to secure a more intimate control over the primary societies than thecentralbanks can exercise and to afford the best rural co-operators more opportunity for learning to manage their own affairs.

3, The growth of non-agricultural societies must necessarily be slow, ^ such societies require a higher degree of intelligence in their members, and a lore intricate organization than mere money-lending societies. The Lieutenant-

Jtarauor in Council is therefore pleased to observe the lead given by Govern-menTSBsyants in starting four new societies, the increase of Co-operatii e stores from six to twelve, amUl e rapid development of the Secretariat Co-operative Stores. He also notes with interest the increase m the number of weaving societies, of which the Ratichi "Weavers' Store forms an excellent example. On the othi r hand the iaitare of the Bihar Co-operative Agricultural Association to sell the potatoes gjowu by its members at a fair profit illustrates the danger of attempting difficult business transactions without an adequate knowledge of busmen methods. It would seem that success m such tiansactions can only h assured when societies haie raided a much largercapital than at present and a 6

in a position to employ business managers The suggestion of the Registrar th an Agi K—Kual Tiispuitur should be appointed lor eveiy central bank mu^t TJ** till tin' pi oposals for the reorganization ot the Agricultural Department 1 ^ been approi cd by the Secretary ot State. The close co-operation of rh -a

cultural valh the Co-opeiatiie Department is a matter of supreme im , ^-?r*-and tht Value ol the central banks, the guarantee unions, and flT ? n c e '* societies tit an agency lor piopaganda ot tried improvement* i« - P ^ ^ a r y full; rt'tiUed r ULa m afiiiculture 4

4 The progress of the Provincial Ban]; has been *y i But in view of its impoitance to the stability ot co one t ^ 8atisfactory Lieutenant-Governor in Council hopes t int ' i u v e s l m ^ f ^ fi

tuanoe, the

public, -pmticularly iiom Miliaria, will show alaiee iaow»w ,• T i e 0Ltt8tie b UUieaae m the near future.

•}

STATEMENT B.

Operations of Agricultural Societies

CJatBlBBrtloo.

OLASS L-CSED1T. (a) LlMHED,

fitartri Jjr^dBaff

TutH

Ftirsiam,—PuralasB sod aalo AcrfotflhirS] Oroflit. (a) Limited

*ofw

faftw—

B i t or

I'arb,

Pa tns Suit

NasrOiia

Jchanabml

Aiininaabiui

MuAoSail-Sodr Bnaar

SaemrBui „

Vliabhun ..

-

Sudr

Mitsui i t III ...

Fnjipur

Gopatgiuj

Simla

( i j TTBUICCTID,

M -

Tola], FilDa

Total, Goya

Total, aiianabm

/

Tottj, HmaHkrpnr

To l l ! , Sa»n

titofljTarjifi'— Sfldr

B a l u a l

2orMgiMo~ Swlr

HiJhobani

Bamiwlipur

J|*ir- ... Mi/J t l j^ in

Bo|i«al

t*aki>

-W ,,W P * I

Total, CEi&mpimi

i

TotH, D»(bi»ag»

• * ' ' < '

...

Tolnl, flbasil/iur

ft a •c '3 c

^ ^ P.

3

I 17

Hs.

Jidan

i a -

18

BB.

*

STATEMENT C.

Operation of Non-agricttltural Societies.

L o i » ( and depos i t s Held i t tUfl MA "t tl.o yea r i r o n . -

L-

s

19

I t ! .

4,2311 533

SB 1,11)5

14,317 J O.SIS lfi,fi05 D.17S

37,703 SI 2

I 191"

'sis J . I ?

2.GS5

0 i , 0 M

art 30

2 > 5 9 £70

3,031

07,093

B6,335

f-'7

7,031 341

9 ,70i

111

337

s i

616

S,972

2hCl<>

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12

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19

l.W

119 14,790 ] ,09i

405 1-1,107 3,410

,.-'"sis

I|BW

3d,nii>

i'i.fi63

11,053

•18,61)3

30.SG6

1,15"

392

4,032

'

a:s

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7,35"

U,n: i2

7,110

26

23

17

tofts

40,57*

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45

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l i s .

3,651

a.fllH

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G.315

1.3SB

i s , rat 10,317

32,305

37,1150

14,602

0 170

" 2 0 0

17,006

D.157

1,130

2,s:n

1,20*

10,319

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1,11-1 4(C

09 4011 4 j n

3,713

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407 741 419 677

10,01 B

r,

102 1,\11 5,1 W 2

4,0110

M , W

13,301

mi l TfiO

06

::;

1,521

092

505

11

205

1,046

2,403

a.o^s

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157

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3 §•

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1 »s

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1,013 7,177 S.IS0

• +1.0BL 23,1KB 2^.311 £/.!ln7 Gfi.tiffi

2.00-7.17(1 7,1*3 B.172

12,SRS

!r,s Si

2,05,730

070 1.H13

411 37,-;=a 13.370

54.220

3,-10,11C

2,39,249

1R.07S Eti.fiO 13 3 ! t l , l ? 7 1,«M

020 316

1,22,153

0,103

2,020

2,873

1,177

0,12!)

aa.sro

1,40,333

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a,i;i . i

a

JJ

s

-3 a

23

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+ S S + 314 +30ll + 0611

+ 1,1*7 + f . 5 t n

+ 4 1 1 + 3,135

+ nr.7 + 031 + ? 5 . + 2*0

+ S,450 I + S5

+ 3

+\4,o»e

+ 1SS + 1 5 + 20

+ 630 + 1,(71

+ 2,300

+ 17.333

+ 13,231

+ 1.217 - S , ; i l + ! , 3 ! ' l

i-'.f.l + SSS

+ 2 —31

1 + » 1

—1,730

+1C3

+ 53

+ 3 3

+ 0 3 3

—814

—548

+ M 7 3

+ 150

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l s i " ; .

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== 5

23

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isiS J ? I %

1.1 >,

o:-J i ' J i

915

1 3 1 %

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IS ' I 1 S ( A

—

1 2 1 %

l.*>'^

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S i l i o l 5 ^ 3

1 ' I

i

i

l t a n a x k s .

20

1

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i

c l i l s B l t * » * 1 0 0 1

=-a % % X -s

* * B3. Es

tin" Usui .

TDlll f" 101J-1B -

( i ) Ctotcal T3nuhs-

Barh i> "

0< ,*S»™ Bait C ^ t ' a l

S i m H i l i Cent™' Bant

jcHmalrad Centre! Bank.'

Aurni.«fll>ail C e i l " 1

ISanl.

BoiBt Central Bnnfc

* * * •pur-- . , .

GMIBICHOJ Csulrnl

JSimV C i i r " ' ! " ' " ' - Cto t r t l

BouE

»Sgf« **-i

E , | f Sft-r. i--»,l.rtl

J j in t

" " " R U D C M O o p n u t m

B i n t -

Ceotrul IWnlt

Jnjimr Central Hon*

Cuttack Ccnltnl

P , " " P U I I C e " " " 1 B i H l 1

KJ J u n Ia M t r a l

* a ' i & CMirf Jiojifc.

Bunk

Tola) f ' ' ' c l l t m l

T l , i n l for Contwl Bank".

1017-1B-

KIH-JB,

r I t 0 n , l l"t aM, ( C]J.1 l l 'JK l',n>J,iGin> »»o*>

Rs

3TB

60S

1,0 H

10,310

18,936

8,333

a,us

103

MO

15,7 a

B.OW

S,1M

I

Ea

- « • Sife

M M

6,967

B,0M 1

so,!oa

+0.VM

166

110

901

1.TSS

10 6SB

10.120

B.,13.1

8,141

£S,6t?

6,010

10,271

* , S 7 !

13JI14

S.36S

514

31

20,103

» « S 1

8.2SJ

S,81B

18,313

Ba.

29.013

«. 6,385

+1,376

1+1,8011 I

+Gfi3 I

B.B44

sa.sso1

10,315 |

10,396

8,000

+J.6HT1

+«,70B 1

+ 3.MB I

+J78 1

s.soa

18,1** I »,oW I

J » » Moo

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0,813

120

136

36

7,019

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8,230

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3,33,907

3,31) 8t»

a,7»,!«G

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87

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0,807

L.flHC Ml

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0.110

0,608

a.taa

S,Di,0O7

i,w,7ia

i i 861

fl.isa

3,50.»]7

MI.BPS

i.eoa

i i

73.9J3 E,891

K,0tf

1.BWB1

a.W.MC

JJ.131

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U.03,007

+80,10)

STATEMENT I.

Central Banks—Profit and Zoss Statement.

—

Clawi Station.

1

(a) FiorinclalBank—

Blbo-snilOriEBiProrln oin! Utlik.

Total for 1917-18 .-

11] Conlrll BantlB—

Blliac Centwl Birat ...

Barh „ „

3*Gaya Sadr Centra

Ba.ja.tal] CciitTt I) auk

Jchanabad Ccuiia B u n t /

Auranealiaa Centra BaTlk.

ArrnlL Central Jlitnfc

R a t a : Centra] Han!

flfuaanarpux Coutm Bank,

&BW8D Central Gal ill

(id Mil n"" J Control UnnV.

C i n B F n " " 1 - ,, , , Bpttiari Central

Hauk narHri i iJ"— _ , ,

Boiihci Contra] Union.

Daulotpur Control l imit .

WiOf^lpiit CcitiroJ flunk

Hndhipma Central Bank.

Sup311! Cuatral Hank

Bnnka Coulrj lBoni

JfOtJoAvf —

sefruearii OeiMrai

Bliaitnnum Con [ml Bank. purlieu— _ , .

Purniia Central Bank.

Rnnolu CD-ope rat ITI. On lull.

.Honor riuj*— fiaTai'Jbag" Ceil [Ml

Honk. CoWarit—

Ban 11 Dompara Cent ra 1 Hank

Jajpni'CoofraHlnnk

Cutlack Central Ujntt.

jten.lrnpiTa Conttal Ban t .

p u n Central Bank

Eliiirdc Coulral Hank.

Balaim — Ita[a*oio Central

Hunk.

Saala^or— Snuitmljiur Cent ml

Jlnnli.

Tota l f*r Coniml Bflnl.il, IDlfl-JB.

TolnHnr Csnlrsl Bmitf .

1PI7-JS-

Rraorl Tfl!«l iHOJUJIIJir P r o i l n d n l V*"*' 161 MB. —

Droll'! TdKI Ji icf» '""C I ' .wJucfal l ^ ' i " ' Jcir-JH . _ _ _

B. & o. a. P. (

P

£ • a

t-.

P 3

B E .

SEO

11

3,004

118

... 870

603

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100

we l .OBi

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103

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150

...

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•

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7,910

e,2So

12.80)

C.C. &-;

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3

2 s .

65, MB

15,743

B.Bi4

36,074

8372

£1,063

IB, 85"

13.0BI

87

13

10,3«

18,936

B.S30

3,103

10,891

26,110

s,m

11,103

e,7i a

72

IS,IBS

8,136

SB

17,016

10,!0!

'.130

153

3S5

11,1)56

0,813

120

ifilfiU

2,83,607

3.30,BBO

t.n.w

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a

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It

i

flu.

103

40

10

11

s

m

33-1

...

18

...

1,036

87

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110

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492

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10

113

101

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03

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91

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no

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70

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17

105

83

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24

61

11,6*7

1,116

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8,133

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03,230

«,7S3

3,013

33,300

15,272

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19,371

13,071

160

117

10.8G2.

10,130

8,131

3,10?

18.8M

3,S30

11,113

s.eio

133

13,338

s.eaa

S3

3',823

10,300

1,871

310

Wi

'1.848

0,867

177

3.0i,«7

s,SD,tia

3.M.S17

i •J

1 8

Es.

28,101

33,817

6,887

17,103

1,382

IB.Mj

10,MS

0,510

IE

6,519

10,?71

1^00

3,372

8.B0B

13,011

*,07B

1.83C

S.771

s.eoo

10

1,370

3,093

1

8,130

f.oei

906

270

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fl.333

6,MB

IS

'.64,7-17

1,11,MS

i.ae.on

\<Sl,M

lou.

1 IS

fl

Ha.

3,730

3,135

1,1203

4,£39

3,613

3,103

^383

S.S21

8,333

3,71*

337

311

3,133

4,060

1,033

3,41;

1.066

1,000

133

SOB

1,371

2.0W

132

1,398

2,136

175

137

3D

1,807

1,903

11

73,303

63,017

70.1B

K,V3

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1,371

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8S

n

Ba,

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03

717

295

183

29S

48

31

33

2

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103

7

. 23

26

1

33

•

250

10

J,

.„

87

IS

2,472

2,191

2,730

S.13B

|

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S

13 '

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3,100

2 .771

-.. 1,533

S3

t.itt

1 , " *

776

73

to

813

613

aw

601

1,1*

971

mi

1,793

, • •

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6,778

21

a ,67a

as

S.lSl

176

S 7 , S "

ao.s»s

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•3

is

E S .

S6J81

39,018

30,138

» J 9 1

» 3 7

M,81B

16,3,13

lions

98

8.B08

11,303

1,573

3,1)20

13,033

B.BOS

9,731

B.103

B.B12

136

V 7 4

133

15,013

6 ,3 B 2

108

221

'0 ,183

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^ ( . T B ,

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50^89

+6,738

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+ 1 ^ 7 6

1+11TOB

+303

+3,268'

+1.31B

+67

+117

+3^817

+V8 +3^019

+ 278

+8i306

+8^07

—1,880.

+S,B83

+2.116

+1,216

T - M

1.1S1

+1,800

+3,867

- 7 0

+2,191

+3,177

+680

+KM

+ 0 1

+1,380

+2,083

+ U 9

f13,36*

+M,0M

+8S,0H

+30,757

f

3

1! 15

Es ,

E9.B70

ll.SSfl

B.&M

22,630

10,316

10,306

16.B1B'

13,141

ISO

11,195

16,333

6,996

1B,1«

21,043

3,330

10,906

8,123

1,348

87

T.70S

»3K1

£6

13,939

0,196

650

610

36*

fl,B73

7,818

247,13?

1,80,610

8,03.007

8,80,927

' & s §

s

1

-P1

18

3.3.

» , 8 I 3

10,011}

11,373

9,639

^2,588

14.707

13,013.

»i

8,609

11,3«

1S.0M

17 ,3«

8,980

7,380

i,0St

3,937

it*

6,991

6,737

16

7,631

1,083

103

120

8,674

1,71*

1)

1,01,106

],8l,08*

— i — '

1,01.»6

_ — - r — m

1,01.**?

— •

42

mmmm0mm the bozxowed portion o f a e \ . ^ S . t l 0 n °Uh^ ^ t y aui J$^«^«J

HABIDAS RAT

The 2Uh Ma, ch 1919. ° * division.

™°* nc-iao -"• *•

GOVERNMENT OF B I H A E AND OEISSA.

KEVENUE DEPARTMENT.

R E S O L U T I O N .

Dated Ranchi, the ,21s?! November 1919.

T H E tteport covers the period from 1st J une 1918 to 3lBt May 1919 Khan Bahadur Muhi-ud-din Ahmad was in charge during practically the whole period.

2. Thai ten new central banks have been started and 458 new societies of which SO are non-agricultural, h&ve been formed during the year is a mat te r for congratulation, the more so as the energies of District and Subdiviaionai Officers were necessarily diverted to war activities in the earlier part of the year and later to meeting the difficulties of the economic situation. The organization of 21 new guarantee unions, whose function and importance have heen described in previous resolutions, is also satisfactory. The Lieu , tenant-Governor in ^Council however agrees with the.Registrar that still more rapid progress in the organization of these, unions is needed to secure a more intimate control over the primary societies than thecen t ra lbanks can exercise and to afford the best rural co-operators more opportunity for learning to manage their own affairs.

3. The growth of non-agricultural societies must necessarily be slow, as such societies require a higher degree of intelligence in their members, and a more intricate organization than mere money-lending societies. The l i eu t enan t -Governor in Council is therefore pleased to observe the lead given by Govern- " ment servants in starting four new societies, the increase of Oo-operative stores from six to twelve, amULe rapid development of the Secretariat Co-operative Stores. l i e also notes with interest the increase m the number of weaving-societies, of which the Ranchi "U'eavers' Store forms an excellent example On the other hand the failure of the Bihar Co-operative Agricultural Association to sell tho potatoes grown by its members at a fair profit illustrates the danger of attempting' difficult business transactions without an adequate knowledge of busine-s methods. I t would seem that success in such transactions can only K assured wlien societies have raised a much larger capital than at present and G

in a pciHim ii employ business managers. The suggestion of the Registrar th""9

an Agvicn.hmal Iuspixiur bbould be appointed for every central bank rrjust ' •' till tin- proposals for tin; reurganiaation of the Agricultural Departmpnf- i ^ 1 ' been approved by the Secretary ol State. The close co-operation of th .6

cultural u i ih the Co-operative Department is a matter of supreme imn , AS1 - i-ancl the value of the central banks, the guarantee Uuious, and r h " . a n e e » societies as an agency for propaganda of tried inimovements i„ • P ^ a r y fully reabzed. , - U t S m agnoul tura i

4 The progress of the Provincial Bank has been fa-Bat in view of its importance to the stability of C o o t . „ , y ^ f a c t o r y Lieutenant-Governor in Council hopes that " i n v e s t m e n t , F finance> the public, part icularly from Biharia, will show a large i ao i^ae i n X ° a t 8 i d e

and he trusts that special attention will be de-voted to the advertisement of the soundness and value of such investments among the wealthier classes in Bihar.

5. The initiation of the Co-operative Federation for audit and other purposes marks an important stage in the growth of the Co-operative movement. Societies, by means of the Federation to which they eonfcributp will hear the major part of the costs of audit, and will no longer dftnenfl primarily on grants from Government. s ™ n a

6. The Lieutenant-Governor in Council hopes that local bodies will co-operate with more ^enthusiasm to give effect to the poliey of maV grants-in-aid for primary schools to co-operative central banks 3 societies. I t is the policy of Government to substitute the grant-in-aid f the stipendiary system wherever possible. Local bodies should seize en*Z opportunity to encourage co-operative institutions desirous of maintJmn schools. mi8

7. The thanks of the Lieutenant-Governor iD Council are dm ** «. Eegistrar and his staff for their successful efforts in a year of emsmip i

.economic stress when progress might have been reasonably e x u S ? u slower instead of more rapid than in previous years. He notes w i t * T r t tion the increasing number of private persons whose namas are ™ 7 ? o in the report for their good services, and he would emphasize the f j i i«? I * . on the efforts of such gentlemen that the eventual success of t h ? tot rt.a ' depends. , * toe movement

O B M B . — Ordered that the foregoing resolution be publisher! tn +i. „ and Orissa Gazette and that a copy of it, together with a conv rrf +k Sihar

be submitted to the Government o± India in the Deuartm«nf * TJ report, Agriculture. t l o t Revenue and

By order of the Lieutenant-Governor i n Council

J - A- HUBBAOS.

****»•» to Govermte^

MEMO. NO. S I L T .

Dated Bmchi, the 2Xst ^ooember 1 9 i g _

( ja-ctt. COPY (with a copy of the report) forwarded to (he a**««.io*™M

g j t a j j t ^ ^ for information (with specjal reference to p S l ^ f foregoing resolution). " ° °-¥a ' of the

By order of the Lieutenant-Governor in Council

1 > G. E, OWEN,

0 % . Under-Secret^ t0 Government,

Bp & 0- G- p- W No. 6M6J8 + 4-«i .U.18l9-M. if. G,