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THE NECESSITY OF A LAND MORTGAGE BANK
Finally, in this connection, there is an important fact to
be noted. It is that the members who are at present
dealing with the Society were found, in May 1927 when
we took the census of indebtedness, to have an external
debt of Rs. 36,419. Though some of it is of a temporary
character, the major portion is permanent. This fact
often clogs the rapid progress of the Society and serves as
the cause of delay in the recovery of its dues. We have
seen that the Society has already redeemed old debts to
the extent of Rs. 19,423, and we think that looking to its
present position, it can hardly spare as much money as is
necessary to liquidate this l&rge external debt. Thus the
necessity of a Land Mortgage Bank for removing the
burden of outside debt is obvious.
CONCLUSIONS
The following are the main conclusions from this
chapter :
(1) The problem of indebtedness for the village as a
whole is quite serious.
(2) Though the successful working of the Co-operative
Credit Society has modified the situation to some extent,
the problem of external debt of its members, which is in-
curred obviously at high rates of interest, demands an
urgent solution.
(3) In view of this, the necessity of establishing a Land
Mortgage Bank (for the Taluka or District in which this
typical village is situated) is obvious.