of arrangement of supply are still experienced, this work promises to be advantageous to the Department.

Proposals for the revision of the Forest Settlements of Kanara and extension of the Minor forests on the coast, received Government sanction. The proposals, when given full effect to will go a long way to meet the wishes of the people. The formation of village forests on the coast under the management of village panchayats with a view to associating the people actively in the responsibility of protecting and managing the forests will be watched with interest. It is proposed to constitute the coast minor forests into a Minor Division under the control of the Collector.

CO-OPERATIVE MOVEMENT

The Agricultural and Co-operative Departments deal with different aspects of the same problem, namely, the improvement of the economic condition of the rayat, and Government have emphasized the necessity for a close and intimate connection between the two. On the passing of the Co-operative Societies Act of 1904 an independent officer was appointed as Registrar, but from 1907 to 1919 he was subordinated to the head of the Agricultural Department. In the latter year, the two Departments were again separated. Progress in the cooperative movement was at first slow and the Registrar aimed at a gradual education of the agricultural and industrial classes of the Presidency in the co-operative idea and the moral lessons which it implies; but the large increase in the number of Societies and Honorary Organisers, and the interest taken by the public in the divisional and provincial conferences tend to show that the co-operative movement has taken a strong hold in the Presidency. The establishment of the Co-operative Central Bank with the aid of a Government guarantee, and the passing of the Co-operative Act, of 1912, which admits of forms of co-operation other than credit have been of great help in furthering the movement.

The Co-operative Movement in 1922-23 was again faced by an adverse season and by the ill effects of financial stringency. Retrenchment enforced by the Council also inevitably led to a

certain loss of efficiency, while in the opinion of co-operators as well as of the officials concerned it was more necessary to consolidate existing societies than to extend the movement rapidly. Inspite of these facts the working capital rose from Rs. 435 lakhs on 31st March 1922 to Rs. 533 lakhs. Of the total Rs. 169 lakhs were contributed by Central Banks, Rs. 176 lakhs by agricultural societies, and Rs. 188 lakhs by nonagricultural societies.

The relative growth of the agricultural movement in the various districts of the Presidency requires careful attention. The progress to be achieved and the progress actually obtained cannot be set forth without a detailed study and analysis of the economic conditions of the different regions of the Presidency. Where a cultivator is in any case unable under actual circumstances to make his business profitable and where in reality he maintains himself and his family not by cultivation but by outside labour done at other times or seasons, it is not possible by the mere loan of money to turn his loss into a profit or to save him from the inevitable end.

The economic scene of the Deccan is extremely confused, but it seems to be certain that even in a normal year this is the case with a large percentage of the cultivating population. In Sind also the rural population appears to be declining and the annually cropped area to be going down. On the other hand the garden and rice lands of the Konkan and most of the Karnatak appear with their cultivators to be in a stable condition; while it is unquestionable that the Districts of East and West Khandesh, and of the Panch Mahals are on an upward wave of prosperity. These facts have to be borne in mind when undertaking the organization of co-operative societies.

In Dharwar the number of cultivators who are members of co-operative societies is now well over one-quarter of the whole. Both in Broach and Kanara 19 per cent. of the total number of agriculturists are now members of societies. In East and West Khandesh, however, the percentages are still only 13 per cent. and 10 per cent., figures much too small for such rich and progressive districts. In the Panch Mahals on the other hand, a district which is on the upward path but in which the population

is illiterate, backward and for a long time inured to the servitude to the money-lender, the percentage of members to the total number of agriculturists has now reached the gratifying figure of 14 per cent. It is worth noticing also that among the Bhils of the Panch Mahals a considerable number of women are members of societies and 44 are at present elected members of managing committees. This is in accordance with the salutary custom of those tribes and it is hoped that more women will be represented in future both as members of societies and of their managing committees.

Progress in Sind has continued to be very satisfactory and in the Hyderabad District 16.8 per cent. of the cultivators are members of co-operative societies, while in the District of Nawabshah the percentage is 11. In Sind as a whole, however, out of 175,125 cultivators only 13,377 or less than 8 per cent. are so far members of societies. It will therefore be seen that quick as has been the progress of the Co-operative Movement in Sind in the last five years, there is still ample room left for expansion. It is to be hoped that now that the Sukkur Barrage Scheme has been sanctioned and that much new land will be made available for cultivation under that scheme, agriculturists will combine in co-operative societies for the purpose of taking up considerable portions of this land and for cultivating it on improved co-operative methods.

The Bombay Provincial Co-operative Bank sustained an almost irreparable loss in the course of this year by the sad and unexpected death of one of its two founders and at the time its Chairman, Sir Vithaldas Thackersey. The working capital of the Bank now amounts to Rs. 85 lakhs, as compared to Rs. 65 lakhs last year. Sanction has now been given by a General Meeting to increase the share capital by another Rs. 3 lakhs which will at once serve further to stabilise the long-term capital available and admit of the Bank assuming further liabilities. Owing to the progress of the District Central Banks the money directly required from the Provincial Bank by primary societies has considerably decreased and as District Banks themselves were owing to the circumstances of the agricultural movement in many cases in possession of surplus funds, they also did not

require to draw upon the Provincial Bank to any large extent. In consequence it had at one time as much as Rs. 35 lakhs lying in its possession which could not be used within the co-operative movement, and the reinvestment of this sum on more or less profitable terms was a matter of no little difficulty. The possession of such large surplus funds, however, is a source of enhanced credit and will be of value to the co-operative movement in future years when co-operative marketing has developed further and when the agricultural societies have been consolidated and again extended in number and membership. The net profit for the year amounted to Rs. 1,02,000 on which a dividend of 7 per cent. was paid.

The Consumers' Movement continues to be disappointing in this Presidency as elsewhere in India. A co-operative hostel opened last year by some Madrasi students in Bombay has, however, continued to be extremely successful with a turnover of Rs. 14,000 and a profit of Rs. 446 on a share capital of Rs. 780. Another students' society at the Sydenham College also worked with success not merely in the financial aspect but also from the point of view of character building. Of the larger societies a few have been quite successful, as, for instance, the Shri Mahalaxmi Sahakari Bhandar in Bombay. It appears to be clear that given suitable conditions and satisfactory working, stores societies have their place in Bombay City and can succeed, but careful business management and auditing is required.

Housing Societies have on the whole done very well. There are 37 societies registered in Bombay Presidency including Sind. An interesting society is that of the St. Joseph's Guild Housing Society at Ahmednagar which has constructed 23 good tenements held on the co-partnership tenancy system by men of the working classes. This is noteworthy as so far being the only society which caters for a poor community and which provides houses suitable for labourers and poor men at extremely cheap rents. One of the best laidout of the societies is the Kanara Goud Saraswat Co-operative Society at Andheri, a suburb of Bombay, which though on a small scale appears to compare quite favourably with any co-operative garden city in England. At

the close of the year the working capital of housing societies in the Presidency has risen to nearly Rs. 43 lakhs, and it is also hoped to make a beginning soon with the question of rural housing.

There has been a further slow but sound progress in societies for industrial production. The total number registered now stands at 23, of whom 13 may be said to be really working.

The weavers' societies unfortunately are more or less at a standstill, and it is difficult to discover exactly what the next step should be. The total membership is only 2,717, a figure which probably represents about 1 in 25 of the total number of handloom weavers when female workers are excluded and 1 in 45 when the female workers are included. The working capital of the societies was over Rs. 3 lakhs and their sales amounted to a little over Rs. 31⁄2 lakhs. As on a very moderate computation at least a crore per year is required adequately to finance weavers in the centres where co-operative societies now exist, it is apparent that only the fringe of the matter has so far been touched and that there is a great way to go before co-operation can be said to have had any material effect on the conditions of the handloom industry. "The industry," says the Registrar of Co-operative Societies, "is one for which many are prepared to express lip-sympathy but for which few appear to be prepared to work.'

The Co-operative Department was kept unusually busy during the year with duties of a legislative or quasi-legislative type. The most important matter was the drafting of a new co-operative Bill which was submitted to Government in September but which it has not yet been possible to put before the Council owing to the need for the sanction of the Government of India. Provisions of importance affecting the co-operative movement were also introduced into the new Local Boards Act, and Co-operative Banks approved by Government have now been empowered to act as Bankers to Local Boards, while Assistant Registrars have also been included among officials entitled and obliged to attend meetings of Local Boards and of their standing committees. When the Council extended the provisions of the Rent Act, the special position of co-operative

H 559-14