The Economy of Permanence: A Quest for a Social Order Based on Non-violence (स्थायी अर्थतन्त्र)
The Economy of Permanence: A Quest for a Social Order Based on Non-violence
डॉ. जे. सी. कुमारप्पा (Dr. J. C. Kumarappa) द्वारा
Economy of Permanence
on collecting the profits together first and then set about distributing, are
going counter to their bountiful nature, which rewards directly. This socialist
method also will spell violence in the long run.
Planning : Though this is not the place to consider in detail a proper scheme of
Planned Economy, yet it may not be out of place to point out at this stage that
no plan centering its consideration solely on products and wages will be in
alignment with nature. Any plan to answer our purpose and to lead to the
achievement of the Economy of Permanence will have to be centered on the
function of work, and be founded on the capacity and the nature of the human
being for whom the work is intended.
A farmer had his grains harvested and stored in his barns, rats made inroads on
his stock. Then he considered the problem and planned his household based on
the ways of nature. To keep the rats away he obtained a cat: the very nature of
a cat being to hunt down the rats, his method was in accordance with the
natural order. Then to feed the cat he bought a cow and, finally, to look after
the cow and the household he married a wife! Such functional planning will
lead to success.
Unfortunately, most of the plans that are brought out at present are product-
centered with a certain amount of attention paid to wages. As in Germany and
Russia, such plans will no doubt produce quick results, but they will not be
lasting and in time will generate violence, as they do not follow the way of
Permanence.
[ In Part II of this book, while dealing with the question arising out of 'Man in
Gregation', we shall have occasion to consider our approach to a planned
economy as well as discuss such subjects as Democracy, Government or State,
Trade Exchange, Communication, Natural resources, Education, etc. ]
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PART TWO
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INTRODUCTION
In the first part of this book we considered man as an individual and saw how
he acts as a single creation. We noticed the way. Nature works and we
observed that science is our study of Nature and its working, and the object of
science is to enable man to work along the lines on which the universe moves.
Any deviation from this leads us into violence and disorder. Most creatures work
in alignment with Nature merely by instinct, but man, with his gift of freewill
and intelligence, co-operates with Nature consciously, this being the main
difference between the lower orders and man. We noted the various standards
of values that man, in this conscious existence, Utilizes to gauge his action and
the part work plays in developing and improving his faculties.
When man works in this way he is able to bring about an economy of
permanence which will do away with the need for periodic upheavals in the
form of global wars.
In this second part of the book we shall study how man lives in Gregation.
Among animals also there are to be observed forces which bring like creatures
together for certain purposes. In the case of animals of prey, such as the wolf,
they hunt in packs, their motive is self-centered and their life is parasitic.
On the other hand, we have animals which get together, for motives other than
aggression, and very often purely for defence, such as herds of cattle and
elephants. Here though taken individually each has a selfish motive in its own
safety, yet in the aggregate each has a duty in defending the whole.
The social and economic order of the West as we had observed in the first part,
being parasitic, can be placed in the pack type of gregation, depending for its
welfare on the harm it can do to other groups. From the parasitic stage we
advance on through predatory and enterprising stages to the gregarious stage.
In the gregarious stage, as we have seen, there can be two kinds, the pack-type
which represents the right-centred economy and the herd-type which repesents
the duty-centred economy.
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As man evolves, his consciousness of duties enlarges and he becomes more and
more aware, not of the benefits he gets by being a member of society, but of
the duties he is to perform towards the well-being of that society. In the final
stage he reaches the service economy in which he realizes himself in the
service of others.
In this part of the book we shall consider not the gragation of the pack-type but
man working together for the common good of mankind.
What the world needs today is the knowledge of how people can work together
and bring about general welfare of mankind without involving the destruction
of others. It may be that in this economy the apparent well being may not be
flashy but if would certainly be lasting.
The Western pack-type gregation economy is today an example of what would
be the result of following those methods. Those who have eyes to see need only
behold and note in what stare Europe is today to study the end of the pack-
type gregation. Nearly 150 years of large scale production at a feverish heat has
resulted in starvation and nakedness and lack of consumers of goods, not to
mention the millions of lives that have been lost and the untold material
wealth that has been either blown up into the air or sunk in the sea, leaving
man tearing his hair not knowing what to do next. The pack-type gregation,
therefore, is one of which we should beware, as we are interested only in
bringing about an economy of permanence. The economy of pack-type
gregation ultimately leads to conflict and destruction. Though it may seem to
flourish for a while it ends up in a conflagration and therefore it is in the long
run a transient economy. Hence we need not spend our time and effort in
studying the working of this type of economy in India.
For our part, as we are interested in an economy of permanence, we have to
study how man should act in a group and as a group to be able to work towards
an economy of permanence.
In the first part of this book we saw man's action individually in the group. We
studied the values that should govern his consumption.
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In this second part we shall see how man should act as a group in production as
well as in distribution. Here there are three forms in which man may be said to
work as a group. (1) In production he works individually, though in certain
processes he may have to combine with others similarly placed. This part of
man's work along with his neighbours, considers not only his interest, but also
theirs and in the long run his larger interests. (2) Then man works jointly, in a
group of similar interests, this we call co-operative effort, which is the second
type of work in gregation. (3) Then comes the third type where the short range
work having been assigned to individuals and co-operative bodies, the purely
long range work is taken up by a body of selfless individuals who perform their
duties purely with a view to benefit society at large. Such a group we call the
State. At the present time it is difficult to point out anywhere in the world
where the State is composed of the type of individuals who would be qualified
to undertake this responsibility. The present forms of States are largely failing
in their duty towards the common man.
We shall first take up planning for the group, then we shall consider how
economic activity is carried on by individuals in conjunction with their fellow-
being. Then we shall look at the various functions that can be done by co-
operative effort, and finally we shall study how the State can work and what
the State can do to accomplish the ends for which the people are striving. In all
of these we have to keep before us the various principles we have studied in
the first part, as these will also govern the actions of men when they act in
gregation.
The scheme put forward in part I and part II, if worked out thoroughly, ought to
lead us ultimately to social order based on non-violence which should provide
the people with plenty as far as their primary needs are concerned and would
bring about peace amongst nations.
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THE NEED AND NATURE OF PLANNING
What is it that we plan for? Many people think that national planning is a very
intricate matter to be understood only by technicians and experts. Planning will
have no life if the man in the street does not understand what we are planning
for. We cannot call it national planning if the farmers do not comprehend the
purpose of it and lend their whole-hearted support to the carrying out of the
plan. Unless we are able to get that intellectual understanding we shall not be
able to carry through our plan, except by tremendous violence as has been
done in Russia. We do not want bloodshed to carry out our plan. The people
should understand whether or not what is laid before them is to their interest.
If they approve of it we shall have their willing co-operation.
Our object is to organise the villages for a happier, more prosperous and fuller
life in which the individual villager will have the opportunity to develop both as
an individual and as a unit of a well integrated society. This has to be done by
using local initiative and local resources to the utmost extent possible in the
economic, political, and social fields, building these on cooperative lines. Self-
reliant and properly organised life in the villages will thus be the aim of our
planning. Whatever schemes of activity are taken up locally should not merely
be good for the locality, but should fit in harmoniously with the general plan.
Such work should ultimately lead to the establishment of a just and democratic
social order.
WHAT IS PLANNING
Planning means the getting together of certain factors to serve an end. What
are the factors in India that we have got to get together? There may be factors
today in our plans that do not exist in other countries. Therefore, the plan that
Russia has taken or the plan that England or America has followed need not
necessarily be the same that will lead us to the goal.
When the plan of Great Britain is mentioned it will cause astonishment. People
have never heard of it. The British do not plan but they work to plan. That is
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their genius. They get every man to work to a certain plan. Were there no plans
there would have been no British Empire and there would be no British trade.
So the whole of their financial schemings and imperial preferences, the fleet,
and the shipping policy-all these make the plan. It may not be a national plan;
it may be a London centred plan, or may be a Bank of England centred plan;
but it is a plan all the same.
Therefore all these plan whether it is the Soviet Plan, or the American Plan, or
the British Plan-they all have certain factors for their background. If these
factors do not exist in our country and those circumstances do not hold good
here at present, and yet if we plan on the same lines as they had done, then
we shall surely fail.
PLAN OF ACTIVITY
In India, afflicted with poverty, dirt, disease and ignorance, our plan should
cover the following main centres of activity.
- Agriculture
- Village Industries.
- Sanitation, Health and Housing.
- Village Education.
- Village Organisation.
- Village Culture.
THE AIM
When the Russians planned, Russia was under the Czarist regime. The
aristocrats were rolling in wealth and the peasants were extremely oppressed.
Naturally, the peasants said: "When we come into power, we must be rolling in
wealth." Rolling in wealth means satisfying a multiplicity of wants-palatial
houses, plenty of material goods, pleasures and the rest of it-and they made
that their goal and they worked towards that. Their plans took root in that soil.
It has been repeatedly stated that we want to remove poverty. Poverty again is
a term which requires definition. Poverty, somebody said, is inability to meet
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your wants. But what is your want? Is a Rolls-Royce car a want? If you cannot
meet that want, are you poor? If a lady wants a lipstick and has not got enough
cash to purchase it, is she poor? There are wants which are primary needs, and
there are also wants which are artificially created. There are wants without
satisfying which a human being cannot live; they are needed for the expressing
of his personality and for the existence of his physical body. These are the
natural wants we shall endeavour to supply, not the artificially created wants.
What is the greatest of primary needs? First comes food. We may go without
clothing, but we cannot go without food. In our country we are having not
occasional famines, but repeated famines, and, therefore, the primary factor in
our plan must be the attempt to meet that situation. Food and the prevention
of famines; how are we going to achieve that? Is it by application of Capital?
Many people come out and say: "You apply capital and then your results will be
so much more". Learned economists have worked out the amount of capital to
be applied and the percentages of increased production that will result from it,
as if we have only to pour capital into the fields before they come up in crops!
That cannot be the case.
In our country, the tremendous factor for production is human labour. If we
wish to meet our needs we have got to utilise this enormous factor producing
commodities to satisfy hunger.
As regards the method of production, there is general feeling abroad that we
can build up the economic condition of the people by introducing large
centralised units of production with modern machinery. This is a conception
that requires to be examined carefully before we yield to it. Organising
economic production means bringing together various factors in the proper
manner. The chief of such factors are natural resources, capital equipment and
labour. Under varying conditions varying combinations of these may be called
for. In Britain, at the time of the Industrial Revolution, capital was plentiful
and so in their method of production capital equipment looms large. In the U.
S. A. labour was scarce while natural resources were almost inexhaustible,
hence they took to labour-saving devices leading to the advent of machinery.
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Expansion of such an economic organisation will naturally lead to "saving of
labour¹¹ or, in other words, creation of unemployment. Hence, in our county,
where capital is scarce and labour is plentiful, the methods followed in Great
Britain and the U.S.A. will naturally be out of place.
Man himself is a machine of a fine type with this difference that, unlike a
mechanical contrivance, he has to be kept alive by feeding whether he works or
not. Hence, even if we produce materials for consumption by mechanical aids
the people will have to be fed. Therefore, the efficient utilization of the
factors available will indicate extensive use of man-power as the normal
method of production in our country. If we fail to adopt this mode we shall be
guilty of throwing away the great labour wealth of our country. Such a course
can never lead us to prosperity.
The well-being of a nation does not consist merely in the output of material
production. This production is important only in so far as it enables the people
to meet their wants. In the first instance, therefore we must proceed to
organize the people to produce goods to satisfy their own needs, in regard to
food materials to afford them an adequate diet, clothing to protect them
against the weather and proper shelter; then we should arrange for their
physical, mental and moral welfare by making available medical aid, education
and other social amenities. Before these elementary, needs are fully met. It
would be folly to aim at producing goods for the export market. Money in itself
satisfies nothing except the miser's pleasure of counting it. Money is not an end
in itself. If our organization is such as to put much money in the hands of the
people and yet let them starve for lack of food materials, it would stand
condemned. Hence, our first care is to see that the people are satisfactorily
fed, clothed and housed, and only after these necessities have been adequately
provided for can they be allowed to indulge in other production. To direct
economic activity into this course is the first duty of any government worth the
name.
Apart from the mere satisfaction of the physical needs of the people we should
aim at inculcating the spirit of self-help, mutual aid, and a consciousness of
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social solidarity. When we achieve this and we shall have travelled a long way
on the road to Swaraj through self-sufficiency.
Here again we have to bear in mind that our plan concerns not merely a few
people but every citizen in this country. The plan that we propose, if it is to be
a satisfactory plan, must touch every living person in India. A broad-based plan
like that, in a poverty-stricken country as ours, where finance is not available,
cannot be based on the presumption that capital is available. Hence, any plan
based on the availability of capital is out of court in India, and any plan that
leaves out the primary need of supplying food is also out of court, and any plan
that omits to take note of the factor of Indian labour wealth cannot be a proper
plan for India. The Western plans are material centred. That is to say, they
want to exploit all resources. To what end? That they were not sure of. Tables
and chairs do not satisfy our primary needs.
If it is to be a plan for India, the plan must centre round the farmer first and
then grow out of it for the whole country. It may be that ultimately we may not
bt as rich as England or America but we will have sufficient food. England was
on the brink of starvation five years ago.
Therefore, self-sufficiency in food and clothing should be one of the prime
features in any plan for India. If every village cannot be self-sufficient in food
and clothing, it is no use having Swaraj. We want to assure to everybody
enough food and clothing. And unless we do that, it is no plan for our country.
The Tata-Birla Plan and others of its ilk require thousands, and thousands of
crores of rupees to get them going. For this plan we do not require much money
because we are not working on a thing which we have not got. We are only
rechannelling the people's activity, we are only showing them the right way, we
are only regulating their natural activities, and thereby we control the
activities of millions of people into desirable lines.
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II. AGRICULTURE
Our first care must be food and clothing. To this end we must concentrate on
Agriculture and Village Industries. Agriculture production should be regulated
and controlled keeping in mind two main considerations :
- The locality must try to produce all its own food requirements and raw
materials for primary necessities of life. - It must aim to supply raw materials suitable for village industries rather than
for factories : for example, instead of growing thick rind sugarcane of long
staple cotton, as demanded by the factories, soft rind sugarcane as can be
crushed by the village 'kolhus' for gur making and short staple cotton as
required for hand spinning should be grown. The surplus land can be utilized to
supplement crops needed by surrounding districts. Land utilized for sugarcane
for the factory, tobacco, jute and other money crops should be reduced to the
minimum, and, if need be, even eliminated altogether. In order to make the
farmers adopt this policy, utilization of land should be regulated by issuing
licenses by the government authorising the farmer to grow certain crops only
according to the plans for the province and heavy dues and extra land revenue
should be levied on land used to raise money crops. This will restrain the
farmer's incentive to go in for money crops in preference to food crops. On the
whole, prices of agricultural products should be made to compare favourable
with those of industrial products by suitable control.
Commercial crops such as tobacco, jute, sugarcane etc. are doubly wasteful.
They reduce the food production for man as well as for animals which would
otherwise have got their fodder from food crops.
Primary products like cereals and milk should not be allowed to be used for
commercial purposes for obtaining starch and casien. The supply of gur which
may fall, due to the decline in the cultivation of factory varieties of sugarcane,
can be made good by the production of gur from palm trees now tapped for
toddy or from those which are found or can be grown in waste lands in
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sufficient numbers as to fully meet our demand in this respect and the best of
land, which is under sugarcane today, can be utilized for the production of
cereals, fruits and vegetables that the country needs so badly.
The first thing is to start with a balanced diet. In India we have people living on
cereals only, and cereals do not provide all that is necessary for the body in a
compact form. If we can arrange our cultivation, so that every village cultivates
what is necessary for a balanced diet, w can easily secure a balanced diet. In
that way we can work out the acreage that is necessary for a particular type of
food.
It is ordinarily presumed that an acre of land provides more calories through
the production of grains than through any other food. But, apart from the
question of calories, the grains are very poor suppliers of protective food
factors. Therefore if we aim at getting these factors from cereals only huge
quantities of grains will be required. On the other hand, if the grains are
substituted and supplemented by foods like fruits and vegetables, milk and its
products, gur, nuts and oilseeds, etc., the protective food factors required to
make up a balanced diet may be obtained through lesser quantities of these
types of food than through grains alone. Even the supply of calories per acre is
greater in the case of gur and of the root vegetables like potato than in the
case of cereal grains. Thus, a balanced diet may be a double blessing and may
offer the solution to our problem. It reduces the per capita requirement of land
and at the same time, it supplies the body with all its requirements in their
correct proportions so as to keep it fit and healthy. It is calculated that the per
capita land available in India at present for food cultivation comes to about 0.7
acres. This very land which is found to be too inadequate to meet our
requirements in food according to the present distribution of cultivation
becomes sufficient in the re-ordered system of agriculture. In this manner the
land of the locality should be so distributed for the purpose of growing crops as
to provide its population with all the needed materials for a balanced diet,
clothing and all primary necessities. This aspect of the question when
thoroughly investigated and a definite plan chalked out should be enforced by
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licensing farmers to grow only certain crops on their lands. The table on the
next page shows land distribution for balanced cultivation for a population of
one lakh. This table provides far a balanced vegetarian diet yielding 2,860
calories per day for the average person and allows for the growing of cotton for
25 yards of cloth per annum per head. For non-vagetarian diet 6 ozs. of milk
may be substituted by 4 ozs. of meat or fish and one egg.
Rough calculations based on all-India statistics, which of course will differ from
place to place, have been given. If we allow 16 ozs. of cereals per individual, it
means that 65.2 per cent of our land will have to be under cereals. Similarly, if
we provide 2 ozs. of pulses per head, it means 8 per cent of our land will have
to be under that cultivation.
This table is worked out on a basis of a lakh of people. If a village or contiguous
area can grow these things in this proportion, then the people will have their
primary wants satisfied. Hence, we must aim at growing these things. The land
is a social asset, and it has got to be utilized exactly as it is needed for the
community. If a man says, "I have got so many acres of land, I am going to grow
tobacco," he has no right to grow tobacco simply because it may bring him
more money. In a society there are many j things which we cannot do as we
individually would wish. You • cannot, for instance, drive on the right side of
the road. The ownership in land is yours no doubt, but you have got to have the
use of your land marshalled in such a way that it benefits everybody.
Therefore, it is suggested that a man must take out licenses for cultivating
certain products. The man who has been licensed to cultivate linseed cannot
grow tobacco even if it paid him ten times as mush.
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DISTRIBUTION OF CULTIVATION PER LAKH OF POPULATION
| | | | | Per lakh of population | | | |
| Ozs. per day | Calories | Lbs per annum | Land required (in acres) | For seed and waste 15% extra | Total | Percentage and distribution | |
|---|---|---|---|---|---|---|---|
| I.DIET | |||||||
| Cereals | 16 | 1600 | 365.00 | 43,400 | 6,510 | 49,910 | 65.2 |
| Pulses | 2 | 200 | 45.60 | 5,400 | 810 | 6,210 | 8.0 |
| Gur | 2 | 200 | 45.60 | 1,200 | 180 | 1,380 | 1.8 |
| Nuts | 1 | 145 | 22.80 | 2,600 | 290 | 2,990 | \Bigg} 8.4 |
| Oil | ½ | 255 | 11.40 | 3,000 | 450 | 3,450 | |
| Ghee | ½ | --- | 11.40 | ..... | ..... | ..... | ..... |
| Milk | 12 | 240 | 273.75 | ..... | ..... | ..... | ..... |
| Vegetables | 8 | 48 | 182.50 | 1,600 | 240 | 1,840 | 2.4 |
| Potatoes, Tubers | 4 | 100 | 91.25 | 1,000 | 150 | 1,150 | 1.5 |
| Fruits | 4 | 52 | 91.25 | 900 | 135 | 1,035 | 1.4 |
| I CLO-THING | |||||||
| Cotton | 12.50 | 7,500 | 1,125 | 8,625 | 11.3 | ||
| Total | 2860 | 66,600 | 9,990 | 76,590 | 1000 | ||
| Our object is to keep the production of the villages in the villages as far as | |||||||
| people require it; only the surplus will be exchanged with other regions for the | |||||||
| stuff that we require. For instance, if cotton is grown in a particular village, it | |||||||
| cannot go to the textile-mill and come back as cloth, for the simple reason that | |||||||
| for the process of the change we have got to pay something in the form of | |||||||
| export of commodities. If we do not want to part with our food products, we | |||||||
| have to convert our cotton into cloths in spare time. When we do that, we | |||||||
| retain the whole production of food, and we also get our clothing. Therefore, | |||||||
| we are doubly benefitted. Incidentally the textile-mill-owners suffer. We are | |||||||
| sorry for them but we have got to safeguard the poor villager. Our plan is for | |||||||
| the betterment of the villager. And when we start with that thing and work in | |||||||
| that way, then only we shall find that the villagers are self-sufficient in food | |||||||
| and clothing. | |||||||
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Thus, having before us the ingredients of a balanced diet, we proceed to secure
these through the proper laying out of the cultivable land to produce the
required materials to feed the population. Then only, where there happens to
be a surplus after the full needs of the local population have been satisfied,
should any efforts at sending such products outside be countenanced. The
marketing department would be a traitor to the land if it helped or aided in the
export of materials which are in deficit even to meet the needs of the people.
Similarly steps should be taken to procure all materials needed to put the
people gainfully to work.
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III. EXCHANGE
Multi-purpose Co-operative Societies:
Co-operative Societies are ideally suited organizations not only for developing
village industries, but also for promoting group effort by the villagers. A multi-
purpose village society can make itself very effective in a variety of ways such
us :
- Stocking of raw materials for industries and food grains needed by the
village people. - Marketing of surplus village products and distributing the requirements of
the people. - Supplying and distributing seeds, improved implements and tools, manures,
such as bonemeal, flesh and fish manure, seeds etc. - Maintaining a common studbull for the area.
- Standing between the government and the people in the matter of
collection and payment of taxes, etc.
Much of the wastage caused to food grains in transport and handling and the
expenses of bringing food grains to a central place and redistributing them
again to the village can be eliminated through the agency of a co-operative
society which can be a very reliable medium both from the government as well
as from the public point of view.
The farmer retains the necessary amount of wheat for his family requirements
and the surplus he deposits in the Co-operative Society and in return he gets
the things he requires on the strength of credit he has thus created with the
society. Government revenue could also be paid in kind in the same way and
not necessarily in cash. Today revenue collections in cash from villagers cause a
great hardship. If stock of grain are held by cooperatives societies in villages,
the remuneration also of local officials can be conveniently paid partly in kind.
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Money economy does not report true values. The values are changed as money
passes from one individual to another. There is a great difference in value
between the rupee in the hands of a poor man and a rupee in the hands of a
rich man. Such transfers either increase the national wealth or impoverish the
nation. Superficially a rupee appears to be a rupee, but in practice it is not so.
A rupee in the hands of a poor man may mean 4 or 5 day's food provisions,
whereas in the hands of a millionaire it may represent the value of a cigar.
Thus, when a rupee passes from the hands of a poor man into the hands of a
millionaire it loses its value considerably; conversely, money when it goes from
the rich to the poor enhances in value. Hence we have got to see that in our
economy we prevent money going into the hands where it will lose its value and
this is what the multi-purpose co-operative society should attempt to do. It will
collect the produce from the villager and will pay the government revenue in
wheat or other commodities. It will pay government officials on government
account in articles of food which will provide a balanced diet and when all this
is carried out, ultimately, there will be only a very small adjustment to be
made between government and the multi-purpose societies and that also can
be done by transfer of surplus between different regions. If that can be
managed we shall neutralise, though not eliminate, the evils of money economy
and retain the true value as dictated by commodity value as distinct from
money value.
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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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bank uses its power for strengthening its own position as an institution, and if
the position of its customers deteriorates as a consequence, such a bank cannot
be said to fulfill its purpose in the economic organization. This is as regards
money as a medium of exchange.
Money as Storage of Purchasing Power:
Again, as regards its comparative imperishability, the right use of this quality in
money is to afford storage of purchasing power to the people. A farmer
cultivates his fields and disposes of his produce after harvest. He realises a
certain amount in money. This money has to last him till the next harvest. That
is, he should be able to exchange it for other commodities of like value over a
period of twelve months. If in this period the purchasing power is altered, the
position of the farmer also fluctuates in the same way. Therefore, an
unalterable storage of purchasing power is a prime necessity in an agricultural
country like ours. In this function, multi-purpose co-operative societies can
help by restricting the spread of money economy, thus limiting the chances of
fluctuation and speculation and by rendering reasonable banking services based
on the security of commodities as will prevent the farmer having to dispose of
his whole stock at a time.
Co-operation: This brings us to the second function of co-operation. Co-
operation implies the elimination of competition and working in a kind of
partnership resulting in advantages to all. Its basic requirement is an identity of
interest of parties to the enterprise. There can be no exploitation in co-
operation. Therefore there can be no co-operation with an exploiter at one end
and his victim at the other end. Foreigners come to sell their goods to us. That
is their only interest in us. It is for that, they hold others in political bondage.
If co-operative societies help hand- loom weavers to obtain American yarn they
are linking up in- compatibles and therefore are not functioning in the true
spirit of co-operation. Their legitimate sphere would be to bring local village
spinners and weavers into a living touch with one another. They have to bring
about co-operation all along the line-raw material produced with artisan and
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then with the consumer. The co-operative societies should be the link binding
all parties together-like a silver wire that holds the pearls together.
A co-operative bank can protect the unsophisticated villagers from being duped
by the government minions. Such institutions can collect the produce, store it,
pay on behalf of their constituents, dues, taxes, revenue, etc., sell the goods
at proper market rates, right through the year, without dumping the whole
stock at a time on the market and thus causing extreme fluctuations in the
price of commodities. They can function like the watertight compartments of
the ocean liner and be the shock absorber in the economic organization:
The test of the proper functioning of co-operative institutions can be seen not
in their financial balance sheets but in the bazars around. If these shops are
stocked with mill produced goods or foreign imported articles it signifies that
there has been no cooperative effort to bring the various factors of production
to supply all our needs. If the co-operative institutions function properly it will
promote self-sufficiency in all our primary needs such as food, clothing, and
shelter. When this happens there will be nothing to attract the cupidity of the
foreign manufacturer. Hence there will be no international jealousies leading
to global wars. Thus the development of co-operative institutions on right lines
can lead to national independence and through that to international peace.
Manure: Much of the waste of the village, including sweepings, bones, human
excreta, etc., that endanger the sanitation of the village at present, could be
utilized by making compost manure. This is very easily done and it is as good a
manure as cow dung. Bones and oil cakes, which are usually exported out of the
country, should not be allowed to leave the villages. The bones should be
crushed locally with the help of the chunam chakkis, after being charred a
little in the chunam bhattis and the manure distributed amongst the farmers.
Manure making in villages may be given out on subsidised contracts. This will
ensure the cleanliness of the village while raising the status of the sweepers
engaged in making compost and manure to the level of traders.
Oil mills, which take away oil seeds from the villagers and give only oil in
return, sending the cake abroad, are depriving the land of the valuable form of
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