The Economy of Permanence: A Quest for a Social Order Based on Non-violence (स्थायी अर्थतन्त्र)

Economy of Permanence
IV. CO-OPERATIVE FUNCTIONS
The Function of a Bank: The function of any bank is to lubricate the wheels of
commerce and industry and keep them moving smooth with the least friction.
In addition to this a cooperative institution has to bring about active co-
operation between the various factors in the whole economic organization.
The Western banks, based on money economy, count their progress by the
amount of deposits etc. they have received and profit made. We cannot do
that. We have to appraise the work of a bank in its relation to the well-being of
the people. It has to perform various functions in the economic activity of the
people and serve their needs even if it meant a loss financially. We cannot
ascertain the part a bank has played by any calculation based on rupees, annas
and pies.
Western banking system has been, like the needle of the Hypodermic syringe,
used by the financial exploiters to draw out the life blood of the producers, The
last famine of 1943 in which about 3 millions lost their lives in Bengal alone, is
largely attributable to such misuse of banking powers vested in the Reserve
Bank which enjoys; along with the Imperial Bank, the advantage of being the
custodian of public funds, but their work is a tragedy to the people of the land.
This is because of the misuse of money.
Money, when used as an instrument of exchange or as a means of storage of
purchasing power, functions satisfactorily.
The tokens used as money are generally imperishable as compared with
commodities and hence the money-holder is at an advantage as he has the
bargaining power. A plantain-seller has to dispose of his goods before they get
spoilt but the money-holder suffers from no such disadvantage. He can hold on
to his money for any length of time. Therefore, in this inequality there is a
factor which may be used by the money-holder to exploit the commodity-
holder. Banks as a rule are holders of money. How they use their advantageous
position will determine the part they play in commerce and industry. Where a
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