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