258

Encouragement to the productive use of loans : An-
other equally important service it has rendered to them is
to direct them from the unproductive to the productive
use of capita] as far as possible. This is demonstrated by
the following table showing the purposes for which loans
were advanced to the people during the last ten years of
its existence :

Purpose of the Loans
Percentage of each to the total loans advanced during the decade

I PRODUCTIVE'
1 Purchase of land ..... ,•
5-3

2. Payment of land revenue . . . 3 Purchase of cattle .....
2-5 10-1

4 » *. crass .....
2-8

5. «. «% seeds ......
8-7

6. ,, and repairs of carts 7. Financing local trade .....
1-7
5-7

8. Expenses on cultivation . . . . 9. Redemption of old debts and land 10. Building and repairing of houses .
9-3 28*1 10-4

Total 11 UN-PRODUCTIVE i
1 1 . Domestic expenditure .....
• 4*5
84*6

12. Celebration of marriage * ... 18. Performance of death ceremonies
10-2
•7

Total

15-4

Grand
Total
100

i The classification of purposes into productive* and Unproductive' is
somewhat arbitrary. The only two items which we have included under
•productive', and which may be objected to, are 'redemption of old debts
and land' and Building and repairing of houses*. The reason for classi-
fying the first as 'productive' is that the burden of indebtedness acts as
a powerful deterrent to agricultural production; that for the second is
that the cultivator cannot do without a house to live in and to store his
implements and keep his cattle—the main capital goods used in his
wealth^production activities.