Page:Indian Journal of Economics Volume 2.djvu/499

CO. OPERA 2'IVE MO VEMEN? 481 whole credit of the movement, particularly with out- side investors, depends on the punctual repayment, of deposits. Such recoveries as societies are able to make must then be reserved for meeting their liabilities to depositors, and any deficit must be made up by loans from central banks, which must conserve their resources to meet this supreme call upon them. The position of central banks will be similar to that o! rural in the mofussil societies,--probably slightly better in the matter of recoveries, and slightly worse .in the matter of withdrawals. No 60 per cent of their capital is derived from and the depositors will be far less restraining influence of the Board village depositors, and are therefore more likely to insist on repayment on due dates. On the other hand these banks have provided themselves with considerable fluid resources on which they will be able to draw in the event of an Mercifully the emergency. position of the less than deposits, susceptible to the of Directors than Central Bombay Bank, which in this Presidency serves as Provincial Bank, will on the contrary be very strong. Not only is half. its capital permanently owned and non-withdrawable, but it commands ample fluid resources amounting to some eight lakhs o! rupees, and has no reason to expect any special It is the usual experience of big centres of trade in a famine the' shrinkage of commerce the deposits The war are and o?. Government money market the whole ef-fluence of deposits. banks situated at the year that owing to demand for money on the may from there offor at heavy on this following appears exceptionally financial re- occasion its usual no ground declines and easy terms. qui':ements prevent the course; but on for ant, ioipa?ing regard to any special fm?oiaJ stringency with deposits in the Bombay Central Bank.