BANKING TRADE AND COMMERCE

INTRODUCTION

THE PRESENT CHAPTER IS DIVIDED INTO TWO PARTS—(1) Banking and finance, and (2) Trade and Commerce. The first part, viz., Banking and finance describes the modern joint-stock banks in the district along with a number of other institutions, such as, money-lenders, co-operative societies and Life Insurance that play a prominent role in catering to the credit requirements of the district economy. Of these, the money-lender had till recently been the most important institution. He still continues to be an important source of credit supply to the people in the district whether as an indigenous banker in the town or as a shop-keeper supplying credit to the village folk or even as a petty pawn-broker. But the excessive rates of interest charged by him and the malpractices he adopted to exact money from the poor proved detrimental to the economic well-being of the people in the past. It was with a view to putting a stop to this evil that the Central Provinces and Berar Money-lenders Act of 1934 was passed and applied to the whole of the district. This subsequently removed the malpractices of money-lenders and sought to extend protection to the debtors. Another significant trend that helped to restrain the money-lenders' influence was the growth of the modern banking in the district following World War I. Especially after the establishment of the State Bank of India the banking business received further stimulus.

Development in the field of banking was accompanied by a still greater development in the field of co-operation. A large net-work of co-operative societies covering, as it does, not only the agricultural primaries of the early years but also the modern industrial and service co-operatives of to-day is an important feature which is described in the pages to follow.

Besides purveying credit to the economy, these institutions also collect the savings of the people and invest them in the interest-yielding securities. The insurance and the joint-stock companies need in this context a specific mention. The post-war period found a remarkable progress in case of both these institutions.

The take over of insurance business by the State and the legislation enacted by it to reduce the profit-margin of the companies thus explains the role played by the State in this regard to secure economy, efficiency and equality of its services. The State also floats loans and raises the funds required for financing its plans and other Governmental outlays. It further extends financial and other aid to industry and agriculture by advancing to them loans and subsidies. This active participation of the State in the economic activities is very well marked especially in the small-savings movement. An account of these manifold activities on the part of the State has also been discussed elaborately in this part of the chapter.

The financial set-up in the district has significant bearings on the pattern of its trade and commercial activities. The growth of banking and other financial institutions and increasing facilities made available to the public help the movement of goods and increase the volume of trade. Price policies adopted from time to time by the State also affect the market trend and determine ultimately the composition of trade. In the second part of this chapter are. therefore, discussed the factors that have contributed to the development of trade and commerce in the district against its historical background. If also gives detailed information about regulated markets, export trade. State trading and retail trade

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