13 365 These figures cannot; be called altogether satisfactory, and they would seem to indicate that some portion of the advances has been expended unwisely or used for unproductive purposes. The loans now outstanding amount to a sum of £E. 8,136,000, distributed over 238,000 debtors, and the j>ractical difficulty of discriminating between the demands put forward is very great; Nevertheless, measures have been taken to ensure that in future there shall be more careful investigation into the situation of prospective borrowers and the purposes for which loans are required than has occasionally been the case heretofore. It is also hoped that it may be feasible to introduce a •system of- collective guarantors and to form co-operative village organizations with which the Bank could deal directly. The collective guarantee would, on the one hand, ensure the punctuall repayment of the loans, and on the other, secure that no advances were made except for remunerative objects. - , .

The accumulation’ of arrears may also be in part attributed to the difficulties in the way of instituting proceedings against recalcitrant debtors, both on account of the large number of defaulters (40,000 at the end of January 1910) and also owing to the 'delay and expense involved in having recourse to the law. The clients of the Bank have begun to realize the obstacles in the way of enforcing prompt payment, and I fear that they are sometimes inclined to take advantage of theni to postpone the fulfilment of their obligations even when they are in a position to pay. Last year jbhe number of actions brought in the courts by the Bank for the recovery of debts was the subject of criticism which was, in my opinion, very unreasonable. It is the Bank’s duty to the shareholders to maintain amongst its debtors a sense of respect for their obligations, and however i-eluctant it may be to have recourse to legal proceedings, 'there are many cases in which no other argument is able to convince. As a matter of fact, in the first eleven months of 1909, judgments were obtained against only 328 defaulters, and the amount of land sold up was under 800 feddans—a clear proof that the Bank has used its legal powers with great moderation. Nevertheless, in spite of all these difficulties, it is satisfactory to find that in 1909 the Bank succeeded in recovering two-thirds of the arreai’S over.due at_ the end of the preceding year. As for the legal impediments which I have just pointed out, a series of proposals for remedying them by expediting the procedure in the courts, facilitating the sales of land, and reducing the cost of legal proceedings, are at this moment under the consideration of the Government.

It must not be hurriedly assumed, because the results of the last two years have been less favourable than heretofore, that the facilities accorded for borrowing cheaply have not effected a general improvement in the financial position of the fellah, and have merely encouraged him to increase his indebtedness. The period in question has been abnormal, and several unfavourable circumstances have occurred simultaneously 'to aftect agricultural prosperity and to lay bare the weak spots in the present system.

The right policy for the Government and the Bank is, therefore, not to abandon or ■restrict a business which has, I am convinced, done much to relieve the condition of the peasantry, but to set to work to remedy the defects which the experience of recent years has shown to exist in its practical working.

9. Trade and Customs. In 1909 the Customs receipts amounted to XE. 3,455,000> Imports . .. Exports Other receipts .. Tobacco • • 4 • 4 * • 4 • • *4 • • «e 4 4 • « 4 * 4 4 • • 4 4 II • • • • *4 • 4 *4 made up as follows:— £E. .. l,oM,000 ,. 251,000 .. 84-,000 .. 1,656,000 JTotUl ~4* •• 44 44 *4 This figure is less than that of 1908 hy £E. 215,000.

[384] *■, 3,455,000 C 2 House of Commons Parliamentary Papers Online. Copyright (c) 2006 ProQuest Information and Learning Company. All rights reserved.