Page:Indian Journal of Economics Volume 2.djvu/384

 8TO NNzLLL O. AfEJTA' sibility of. theirs, which is not infrequently the there loan8 is very little difference in the character o! from central banks and taqav advances from the 61vernment, except that in the former the sureties are not entirely society fulfils its eognissnt of their liability. If s obligations regularly and honorably, it is but meet its requirements to the and not pursue the good old wise that the central bank should try to utmost,degree possible, tactics of the market- place of offering half the amount asked for. Xt is not business but folly, and has the effect of reducing all the societies to the level indifferent. India is a land of traditions, tradition 0ollny. for whioh of officialdom more The official looms he exists. of the ba or the and nowhere is the rampant than in this larger than the object C-operative .institutions have to guard against the growth of superfluous multipliestiou of low-paid subordinates. The applications of societies for advances should alway5 be dealt with directly by .the management on their merits, and never on the recommendations of secretaries or supervisors. The relations between the bank and always remain warm and intimate, {nto official formality. to lintit the sphere of its clients must and never lapse For this purpose it is better influence of a central bank o! eental banks. In to persuade the directorate India it is extremely to exercise any difilet influence than allow it to extend its operations everywhere within the extended boundaries of a diskriot, even in corners where supervision is difficult or impracticable. Oentrsl banks often forget that the loans to be utilized to the best advantate need to be advanced at the proper time; and I think the practice of banks falls in this respect very far shor of their professions. A word about the working of executive committees