ness however only with registered societies. These have no voice in its management, nor are they liable for any of its liabilities. The other is represented by the Madura-Ramnad Co-operative District Bank Ltd., and is a union of co-operative societies, its membership and shares being open to the societies in the area served by it. Unions of this type discharge a double function, that of obtaining obtaining for their members credit in the money-market and that of exercising a sort of administative control over them. There were five institutions of the first type with a total working capital of Rs. 36,49,598, on the 30th June 1913. Of this amount the Madras Central Urban Bank alone contributed Rs. 24,16,011. It is the oldest and the most popular among the Central Banks. Being the best managed society in the whole Presidency, its transactions are the heaviest and the most punctually discharged. As an instance of its great popularity and reputation may be mentioned the rapidity with which in 1909 the additional 1500 shares of Rs. 100 each floated by it were taken up. Its area of operations is co-extensive with the whole Presidency, while that of the other four banks is limited to their respective districts. They serve a useful purpose in attracting local capital that could under no circumstance have gone to Madras. In addition to financing the societies in the areas served by them they sometimes undertake administrative functions by inspecting them and instructing their Panchayats on sound lines of cooperation. The Madura-Ramnad Central Co-operative Bank Ltd., and the Tanjore Co-operative Central Bank Ltd., started in 1912 and 1913 respectively, are the two societies of the second type and had on the 30th June 1913 a working capital of Rs. 3,90,028. They are the realization of a new principle in Madras in co-operative finance and administration, and the Registrar expects that before long it may be possible to hand over to such societies "the administration of the societies holding shares in them, as well as the task of organising new societies in their areas, the statutory audit alone being conducted by the Government Staff." The following table shows the aggregate amount of the loans disbursed by the Central to the other societies in each of the past 8 years. (The figures do not include the loans from one Central to another Central Society). There can be but one opinion as to the magnitude and importance of the financial assistance indicated by these figures. As has been already stated, next to share capital and deposits, the loans from Central Societies form the chief sources of the sup ply of capital to the other societies. The rate of interest charged has been permanently fixed at 72 per cent., which makes it independent of the fluctuations of the moneymarket, and prevents the joint stock Central Banks from hunting after dividends. AGRICULTURAL AND NONAGRICULTURAL SOCIETIES. The difference that exists in England between an agricultural and a non-agri cultural credit society in respect of the liability principle does not generally exist in Madras, whereas on the Continental countries, both classes of societies are constituted almost constituted almost indiscriminately on limited liability basis, with or without shares in either case. In the early days of the movement all societies, no matter to what type they belonged, showed a pronounced partiality towards a limited liability basis with a paid-up share capital. and the apprehension was entertained that the people would be unwilling to incur the increased responsibility involved in the opposite principle. But with the spread and a better understanding of co-operative principles, this tendency has been abandoned, and at the present day all the agricul tural societies with very few exceptions and many non-agricultural societies are constituted on unlimited liability principles. This has not however brought any change in regard to the old preference to a paid-up share catital, which still continues as before, and to-day it is only a small percentage of the societies that has no shares of any kind. Owing to the great latitude very early owed to each society in framing its nstitution, the societies that have sprung are by no means of a uniform type. Of e agricultural societies there are no less an six varieties. Two of them, numberg between them about 6 societies, follow e limited liability principle, one of which is a heavy share capital, Re. 1 or Rs. 5 ing paid at once and the rest held as serve liability against future risks, while e other requires Rs. 5 per share to be aid on allotment with no reserve except one particular instance. The remaining our varieties are all constituted on unmited liability basis, but differ from one nother in respect of the amount and ethod of payment of the share capital. hey are (i) societies with a heavy share apital payable either in one lump sum or y easy annual instalments; (ii) those in hich the unit share value ranges from s. 5 to Rs. 10; (iii) those-and these are he most favoured form-in which the unit alue of the share is quite small, a rupee or two rupees or at the most three; and (iv) pure Raffeissen banks without any share capital. The non-agricultural societies also show an equally large number of varieties. Some of them are modelled on the Nidhies of South India in which (i) the share capital of each member is paid in definite monthly instalmens; or (ii) the whole of the share capital is regarded as reserve liability; or (iii) a sum of Rs. 5 is paid up as share capital, the rest being held up as reserve. (iv) some societies provide for the share capital being paid up by easy annual instalments; (v) in some others only a rupee is paid on allotment, the rest being reserve liability; and (vi) societies in which a share value of Rs. 5 is paid down on allotment with nothing in reserve. Compared with the agricultural the nouagricultural societies have not yet made any large progress in Madras, as is shown by the following figures: 1908-09 153 15 This is chiefly due to the facts that the ctivities of the Department have been itherto almost mainly confined to the gricultural poor and that the villages fford special facilities to co-operative rogress by reason of the corporate life of heir members and the possession by the atter of tangible security in the shape of heir land for advances made to their ocieties. It has however to be remarked hat the artisans of the towns stand in as nuch need of cheap credit as the agricul tural community and that efforts should 1ot be much further delayed in the direction of extending among them the benefits of co-operation. The average membership of each agricultural society during the last 8 years was respectively 78, 70, 61, 61, 64, 61, 57 and 64, while that of the non-agricultural was 127, 206, 223, 212, 248, 21, 266, and 298 respectively. As might be expected from the comparatively larger area of operations of a non-agricultural society, its membership is correspondingly larger than that of the agricultural society. The average working capital of a mem her during the several years compared was respectively Rs. 29, 35, 70, 84, 70, 70, 69, and 69, in the case of the agricultural societies, and 45, 71, 73, 92, 69, 63, 57 and 64 respectively in the case of the non-agricultural. The figures show a larger amount of capital to a member of a nonagricultural society than to one of an agricultural society until the co-operative year 1908-09, from which time the position has been reversed. The bulk of the capital of the non-agricultural societies is usually derived from shares and deposits from members and non-members comparatively little being obtained from the Central Banks. On the contrary, the agricultural societies almost entirely rely upon the loans from the Central and District Cooperative Banks, very little being obtained by way of deposits. It is however satisfactory to notice that local capital in the shape of loans and deposits is being attracted more and more, as is indicated by the fact that the number of agricultural societies that had a working capital of Rs. 1,000 or more raised in this way was during the last 3 years 44, 51, and 55 respectively, showing an increase of 7 and 4 respectively in the last two years. The material benefit done by the two classes of societies to their members can be seen from the statement below showing Agricultural Societies 1908-09 1909-10 1910-11 1911-12 1912-13 3417 7611 11737 15605 16302 Non-agricul tural Societies 1160 1272 1938 2443 3288 The large number of these small loans testify to the real necessity of the existence of these societies. It is impossible to obtain any sum below Rs. 100 from the outside public at the rates offered by them, which range generally between 7 and 9 per cent. As to the periods for which the loans are issued, the tendency of late has been not to issue beyond a year. In agricultural societies, the percentage of such loans was above 99 in each of the last 3 years, while in non-agricultural it was 906,914, and 89:37 respectively. In other respects too, the loans conform to co-operative principles. The percentage The percentage issued on personal securities was larger than that on other kinds of securities and is increasing in both classes of societies. It amounted to 63, 68, and 68 respectively in each of the last 3 years in agricultural societies, and to 76, 76, and 77 respectively in non-agricultural. Curiously enough the percentages are higher in the latter. The question of the use of loans is a more important one for consideration. It was at first apprehended that the placing of cheap credit at the disposal of an ignorant and improvident peasantry would only result in increasing their wasteful extravagance, instead of reclaiming them from their chronic indebtedness would only sink them deeper into it. And the Government therefore naturally insisted on the proper regulation of the purposes for which the loans might be used. This was resented by the people, who felt that they knew best how to use the money they borrowed and that it was no part of a credit society's duty to earmark the loans issued by it for certain specified purposes. But through the influence and tact wisely exercised by the Registrars. the societies were generally brought to frame rules specifying the use to which the loans might be put, and giving power to the Managing Committees to cance! and recall loans that might be misapplied. The result has on the whole been satisfactory and has dispelled the fear of wasteful expenditure originally entertained. The following statement shows the percentage of loans classified according to the purposes for which they were issued during the last five years : 1958-09 1959-10 1910-11 1911-12 1LS) 62 57 53 51 56 42 46 48 Purposes of loans Agricultural Societies For productive purposes For payment of prior debts 37 For non-productive purposes 1 Non-agricultural Societies For productive purposes For payment of prior debts 28 For non-productive purposes 5 67 4: 1 1 1 60 52 48 32 39 41 7 9 11 It will be seen that all through there has been a larger percentage for distinctly productive purposes than for the other two together, and that except in 1908-09 and 1909-10 the percentage has been greater in agricultural than in nonagricultural societies. There had been however a regular decline from 1909-10 to 1911-12 and it behoves the authorities to see that the increase shown last year is kept up in future years. The figures also show a large percentage of loans used for the payment of prior debts. This need not perhaps be con demned, as it means the substitution of a cheaper for a dearer credit, and in this lies the promise of a possible solution of the problem of agricultural indebtedness. The amount borrowed for non-productive purposes has been very small in agricultural societies, having never exceed ed 1 per cent, except in 1912-13, while in the non-agricultural societies it annually rose by 2 from 5 to 13 per cent. The bulk of non-productive expenditure was for marriage and other like social purposes. This has to be permitted, as otherwise owing to social pressure, people would be compelled to borrow from outside at considerably higher rates of interest. As Mr. Wolff says:"It effects a saving, which is as good as being productive, for a penny saved is a penny got, and it trains people to more economic expenditure." The societies have on the whole been generally well managed, the members aking an increasingly keen and active interest in their affairs. In his report for 1911-12 the Registrar remarks about the agricultural societies. "My impression now is that the movement about which, before it was actually introduced, many competent critics conceived nothing but dismal forebodings, has more than justified its existence, and has shown that in many of our villages there is material for intelligent co-operative management of credit and thrift, but it would be a mistake to suppose that there are not here and there traces of defective organization, evidences of mismanagement and even (though the remark applies to a very few cases) room to suspect fraud." And he sums up the principal abuses and dishonest practices which have been found to exist in societies under the following 9 heads :-(i) Heavy cash balances (ii) Loans to Panchayatdars (iii) Benami loans (iv) Refusal to grant Refusal to grant receipts (v) Abuse of personal security (vi) Laxity in collecting arrears (vii) Reloans to members (viii) Reloans to societies and (xix) The one-man society. It is gratifying to be told that all interested in the movement, the departmental staff and the Panchayatdars and others, are striving their best to rectify the evils. PRODUCTIVE SOCIETIES. Productive co-operation in Madras is still in its experimental stage, and on 30th June 1913 there were only three societies, of which one registered only a few months previously has not yet been reported on, other two are (i) the Big Conjeeveram Weavers' Union Ltd., and (ii) the Mambalam Co-operative Society respectively. The latter, started in the co-operative year 1912-13 for acquiring land for building purposes and for the production of gingely oil, appear to have a promising future before it. In the two years during which it has been in existence, its working capital increased from Rs. 1,49,273, to Rs. 2,63,000, while the value of its sales rose from Rs. 8,766 to Rs. 4,25,695, and its net profit Rs. 187 to Rs. 1,362. The Weavers' Union, registered as early as December 1905, is an association of weavers for productive as well as credit purposes. It supplies them with raw materials and appliances, gives them ready money advance, purchases from them the finished products at rates fixed from time to time, and sells them to the best advantage. The object is to eliminate the middle men who ordinarily supply the raw materials, and purchase the finished products for sale in the open market. By the rules of the society onehalf of the total net profits goes to the reserve fund, one eighth to the weaver Panchayatdars as honoraria, and threeeighths is divided among the members rateably to the quantity of finished products turned out by them during the year. With a special view to improve the character of the weavers, who are as a rule untrustworthy and improvident, a reward is paid for regular attendance and each one is compelled to deposit a small portion of his savings as a provident fund to which the Union adds by way of bonus. Latterly the society has been doing tolerably good work. In 1912-13 it had a membership of 198 with a working capital of Rs. 7,420 and effected sales amounting to Rs. 9,494, earning a net profit of Rs. 114. SOCIETIES FOR PURCHASE and Sale. The history of distributive co-operation has not been very encouraging in Madras. Altogether since the beginning of the movement, 12 societies had been registered, 1 in 1904-05, 1 in 1905-06, 6 in 1906-07, 1 in 1909-10, 1 in 1911-12 and 2 in 1912-13, and of these there were only 8 working at the close of the last co-operative year, one working at a loss. The common causes of failure have been defective management, heavy establishment charges and the fact that some of the societies catered only for the wants of the wealthy few who were more or less apathetic, without having attracted the much larger artisan and labouring classes. Below are given the statistics of the eight societies that worked in 1912-13. leading store in the Presidency and has nine branches in Madras and Saidapet. ADMINISTRATIVE UNIONS AND GROUPS. An Administrative Union is a central society composed of delegates from other societies for the purpose of controlling and supervising the latter without directly financing them. By its constitution, however, all the members of the membersocieties are jointly and severally liable for debts contracted by any one society with the concurrence and recommendations of the Union. It scrutinises all the loan applications from its members and recommends them to the Central Bank. The first Union started in 1910-11, and in 1912-13 there were 5 with a total membership of 92 societies. A Group of Societies consists of from 3 to 10 agricultural societies, whose affairs are inspected by an examiner, paid and maintained by them. There were in 1912 13, 45 groups of this kind comprising 265 societies. MISCELLANEOUS. Besides the various types already des cribed, others are gradually forming themselves. Two such were formed in 1912-13. One of them is that represented by the Agricultural Societies Kumbaconam and Tinnevelly Co-operative Agricultural Societies Ltd., formed for general agricultural purposes, such as helping the members in the purchase of agricul the Madras Salt Loaders' Society, consisttural requisites. The other type is that of ting of about 120 labourers, chiefly Panchamas, who have entered into a contract with the Salt and Abkari Department in the name of the Society to remove, measure and load the salt at Salt Cotaurs, Madras, on to Railway trucks or for consumption in the city of Madras. O. T. GOVINDAN NAMBIAR, M.A. I' THE SUFFICIENCY OF LOVE AS A LIFE PRINCIPLE BY WILFRED WELLOCK. N the present article we wish to show the practicability of love as a complete life principle, how it operates so as to unify all necessary activities in an ideal life. To assert that love ought to be the regulating principle of life is at once to take up a position that is diametrically opposed to that occupied by the Naturalists, of whom the nineteenth century has produced a large number. Naturalists insist that man is a unit of force in a world of similar forces, and that his relationship with those forces is determined solely by his desire to perpetuate his existence. But the spiritual idealist affirms that man is a spiritual being, a soul that craves fuller and grander realisations of life, and that seeks closer social relationships as a means to that end. By the former we are told that civilisation, not only has been but ever will be the product of strife, of vital and inevitable struggling for the means of existence, and that to give up such warfare is to give up life. To them love is foolishness, an illusion, an idol which, if it be taken too seriously, will lead to disappointment and death. Now life that is healthy must always be something of a struggle; but it need not and ought not to be a struggle for bread. In an advanced society fighting ought to be about ideas and principles, against devitalising conventions, enslaving customs, crude notions; for every new ideal must necessarily win its way to victory through fierce opposition. And it is usually the case in such warfare that the fittest survive-the fittest ideas; the men with truth on their side. When spiritual ends are in the field of contest it is rarely the case that the physically fittest survive, as Naturalists contend; who will actually survive depends chiefly upon a people's ideals, their conception of the Good. The Spartans, whose glory was their strength, concentrated on making physically strong |