Page:Indian Journal of Economics Volume 2.djvu/498

 480 It. B. E WBAIiK risks to some extent and may reasonsMy expect some small recoveries. But in their case of their capital s invested in loans conjectured that in and it may be will have to advances forward Simultaneously carry at least unrecovered with the too eight-ninths to rural societies, most dases they three-quarters of these to the next season. drying up of recoveries, over in practically all good lying money which intention of withdrawing. cases the the They deposits depositors are local consist of have no and can to influence of the before pressing their own societies, fail to realize that, if they insist on repayment, the money to meet their claims must be squeezed out of the pockets of their neighbors and friends. However, too much should not be made of these safeguards, since people who have saved up some small depoaits by the practice of thrift and self-denial are certainly entitled to fall back on them in a famine year said would be discouraged from making further future if they found that their ho_pes of their money on the due date were frusated. efforts in enjoying The any demand while a large extent be controlled by the Committee. Members hesitate in origin local long which my embarrass non-members can scarcely a demand is likely to arise among depositors for the refund of their deposits. The capital of agricultural societies consists of: deposits from members 2 per cent and from non-members 17 per cent; as against 50 per cent loans from central banks. How can the demand of depositors possibly be met in view of the fact that the capital of societies is locked up in u urealiz- able loans? Fortunately the position is not so black as it appears. Rural societies may not accept current deposits and rarely accept deposits fixed for a shorter period than 'one year. They are therefore absolutely protected from any sudden rush of depositors. More-