BANKING TRADE AND COMMERCE

INTRODUCTION

ALTHOUGH THE INSTITUTIONAL FRAMEWORK OF THE ECONOMIC SYSTEM IS UNIFORM ALL OVER THE STATE, there prevails a wide range of diversity in the development of the credit institutions amongst the district. This uneven development of the institutions is the result of a large number of factors, such as, location, the system of communications, availability of resources and the economic condition of the masses. It is on account of these multifarious conditions that Wardha district reveals the peculiarities of its own financial structure.

Here, one comes across the same set of credit institutions viz., the money-lenders, the banking organisation, the co-operative societies, the joint-stock companies and the other agencies extending financial assistance to the people in the district. Of these, the money-lender is the oldest institution which has survived through centuries with its pristine pattern. Although it still holds a paramount influence over the agricultural masses, it has been gradually undermined with the expanding business of the banking organisation. At Wardha proper these organisations flourish with favourable trade conditions and facilities obtained on the establishment of a branch of the State Bank of India at Wardha. The co-operative movement, too, has spread its wings all over the district and has given the people a new hope for better production, better marketing and above all, better financial returns to its members. Side by side with the agricultural credit societies, which mostly influence the activities of the rural people, there is also a growth of many non-agricultural and production societies in this district. Much, however, is still expected of the co-operative movement suffering, as it is, from drawbacks such as improper linking of credit with marketing, poor recovery of loans financed by the societies and at some places a habitual preference for the money-lender by the agriculturists over their own organisations.

With the attainment of Independence, the old set-up of the economic institutions underwent a remarkable change. It led to the expansion of the public sector. It restricted the private interests and reduced their profit margin. It also competed favourably with private organisations in catering to the needs of people in the district and cutting across the chain of middlemen. Especially, in the field of Trade and Commerce, it supplied a fresh incentive to producers through higher economic gains.

But that is not all. With the passing of the Central Provinces and Berar Cotton Markets Act of 1932, and the Central Provinces and Berar Agricultural Produce Markets Act of 1935, trade in many of the agricultural commodities was controlled. With the establishment of the Market Committees, trade was further regulated and regularised throughout the district. Such developments were essential for the district. It was not, however, by a negative approach through rules and regulations as by its active participation in the various economic activities that the State's role is gaining importance. State Trading is an illustration in point. The establishment of fair price shops to check the rising trend of prices and relaxing the strain of higher cost of living needs special mention in this context. The growing participation of the State in the economic affairs of the district thus constitutes an important landmark in the history of the various economic and commercial organisations in the district which the following pages unfold.

The present chapter consists of two parts.—(1) Banking and Finance and (2) Trade and Commerce. Of these, the first part describes the various financial and credit institutions in the district in their historical, structural and functional aspects. These institutions include the money-lender, the co-operative societies, the joint-stock banks, the joint-stock companies and the like which finance the multifarious economic activities. Trade and Commerce may be mentioned as important among these activities and form the subject-matter of the second part. This part dealing with Trade and Commerce thus describes the different forms which represent trade transactions such as the wholesale trade, the retail trade, the import and export trade in the district and also details in brief the machinery through which it is conducted, controlled and regulated.

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