Page:Indian Journal of Economics Volume 2.djvu/513

00. OPEl?ATIFE PROGRESS 495 inspecting ?he affairs o! ?he borrowing society, bu? such minute control and inspection is between the accepting house and commercial bill; and ?his is entirely absen? as ?he drawer of a a grea? poin? in favor of co-operative paper. Further a primary society has to take shares in a central bank in proportion to i?s borrowings from ?he Central Bank, and ?his naturally gives a further hold ?o ?he Cen,tral Bank on ?he borrowing society. Another impor?an? feature ?o be considered is ?he remarkable increase in ?he reserves of ?he primary societies--reserves whic, h in cases go to buy shares in central banks and many ?hese ?he loans on was no? pro-no?es the society to is ?he primary shares are a further line of defence for which the pro-note is based,. As if this enough, in some cases there is behind the the fuwther security of deposits made by the primary society in the Central Bank, while in ?very money repaid by members to their societies is once made available for repayme.hi b? the Central Bank. * Besides all this there unlimited liability of every member of the society, while such societies are inspected and their accounts are audited by Government Inspectors* whose number and vigilance is increasing.- Finally, in the epoch of consolidation which occupies the last quin- have say almos? an ideal quenium, a vast number of the weaker societies had to disappear. Looking to all these one car/ that the pro-notes of the societies are form of security on which a portion of .the reserve of our paper currency can be lent out the cause of co-operation in India. fiduciary to help But phenomenon; ss well. Co.operative l?epresentation co-operation is not only a i? has a very impor?an? great economic political aspect A few words might therefore be added on