50. Handicrafts.- Punjab is justly pound of its rich and remarkable heritage if industrial arts and crafts. The Land of Five Rivers is rightly renowned for its notable contribution to the art of embroidery, especially the unique phulkari work, which until recently used to be common in rural areas. fine and soft embroidered shawls and artistic multi-design and colourful bed-spreads and kheses are some of the well known handicrafts of the distict. Traditional pottery wares, dolls, toys, bastetry and artistic bamboo articles are also characteristic crafts of this area.

These cottage industries not only provide gainful primary or subsidiary occupation to a large number of people in the rural and urban areas, but also serve as medium of self-expression. Long period of foreign rule and the impact of the western mode of life and import of cheap foreign good were largely responsible for the progressive deterioration of most of the traditional handicrafts.

The partition dealt a severe blow to the large numbers of skilled craftsmen who had to leave the district and also gave a severe set-back to the mixed economy. The mass migration of Muslims adversely affected industrial arts and crafts. The people and the Government had thus to grapple with a very difficult situation. The innate fortitude and mettle of the people and the willing help by the Government arrested the decadence in economy.

The placing of our handicrafts on a sound and stable economic footing is a very difficult problem. Their diversity and wide diffusion through the countryside complicated the organisational problem. In a country like India, with a very low per capita income, the economy of handicrafts is bound to have weak foundations. In the present day economic set-up, whatever the degree of skill and competence, it is difficult for an individual craftsman to stand in isolation and survive in the face of strong competitive pressures. The remedy lies in creating a proper association or organisation of craftsman.

The best organisation in which lay hope of survival for this loosely organised sector is the co-operative pattern. This pattern has already proved its worth in handloom co-operatives. Industrial co-operative in other fields are also gaining ground. The co-operative idea has come to stay and it is hoped that the organisational weakness from which handicrafts suffer will be largely met as co-operatives in this field gain in strength and stability. The policy of the State Government has been to encourage the formation of the co-operatives of artisans and craftsman. Upto June 30, 1966, 25 handicrafts co-operative societies for women and 4 for men with a membership of 267 and 43 workers, respectively, were organised in the district.

The inadequacy of finances for day-to-day working is another serious hurdle. The credit institution for the supply of capital requirements of this sector are ill-developed. As far as possible, requirements are being met under the provisions of the State Aid to Industries Act, 1935.

The State Government is also channelising its fund for credit to industrial co-operatives, including handicrafts co-operatives, through co-operative financing institutions. Separate industrial co-operative banks have been set up for this purpose. These banks provide credit facilities to handicrafts workers in the co-operative field on easy terms.

(j) Role of Industrial Co-operatives

The role of co-operatives in the sphere of industrial development has been recognised. An average industrial worker, particularly in rural areas, does not possess sufficient capital for installing improved type of machinery. Apart from this, he requires raw material and working capital for running his unit. After production of goods, their sale at such prices as can bring adequate return to the worker, is equally essential. In short, credit, raw material and marketing of finished gods are three important requirements of an industrial worker. The best solution of these difficulties seems to be organisation of co-operatives of industrial workers. It provides two distinct advantages : requisite facilities by the Government and the pooling of capital and skill.

The industrial co-operative movement has made considerable progress in the district. The industrial co-operatives governing hosiery goods are the most organised and 90 per cent of the production of hosiery co-operatives in the country is from Ludhiana. The other co-operative of note cover cycle-parts, sewing-machine parts, etc. The following table indicates the industrial co-operative societies working in the district up to June, 1966 :-

Serial No.	Name of Industry		No. of Societies
1.	Handloom Weaving	..	97
2	Small-scale Industries-
	(a) Leather goods	..	26
	(b) Engineering Industries	..	89
	(c) Wood work		14
	(d) Miscellaneous (brick kilns, hosiery, etc.)	..	111
3	Khadi and Village Industries -
	(a) Non-edible Oils and Soap Industries	..	12
	(b) Pottery	..	1
	© Gur and Khandsari	..	6
	(d) Ghani oil	..	13
	(e) Cobblers	..	102
	(f) Leather tanning and flaying of skins	..	19
	(g) Others		3
	(h) Handicrafts	..	4

The value of the goods produced by these societies, during the years ending June, 1965 and 1966, is given below :

	Industrial Co-operatives		Year ending June, 1965	Year ending June, 1966
			Rs.	Rs.
I.	Handloom Weaving	..	1,34,630	79,018
II.	Khadi and Village Industries	..	1,08,420	56,820
III.	Small-scale Industries (including handicrafts)		2,72,215	18,36,550

The District Co-operatives Industrial Union, which looks after the sale of manufactures goods and supply of raw materials to various co-operative societies in the district, was registered on October 5, 1950. It has its sale depot at Ludhiana. The affairs of the Union are looked after by a Board of Directors of ten members. It has a membership of 152 societies including 18 individuals.

The administrative control of the industrial co-operative was transferred to the Industries Department in September, 1963, prior to which these co-operatives were under the Co-operative Department. The Deputy Registrar, Industrial Co-operatives, Ludhiana, attends to the field work throughout the State. He has under him Industrial Assistant Registrars, Co-operative Societies, Jullundur, Ludhiana, Amritsar and at the State headquarters.

The development of industrial co-operatives in the district is looked after by the Industrial Assistant Registrar, Co-operative Societies, Ludhiana, who is assisted by 5 Inspectors, 16 Sub-Inspectors (including 2 Handloom Sub-Inspectors), Statistical Assistant, and other miscellaneous staff.

Details regarding the loans and subsidies advanced to the co-operative societies, during the years 1964-65 and 1965-66, are given below :

Particulars		1964-65		1965-66
		Loans	Subsidy	Loan	Subsidy
		Rs.	Rs.	Rs.	Rs.
Weaver’s society	..	53,814	2,282	51,660	900
Small-scale Industries Societies	..	2,99,543	36,540	2,38,957	22,095
Khadi Societies	..	48,778	-	86,516	-
Handicrafts Societies	..	-	-	-	-

A weavers colony is under construction near the Model Town, Ludhiana.

(k) Manufactures Association

The registered manufactures associations functioning in the district in 1965 were s under:

Serial No.	Name of Association		Date of Registration
1	Home Hosiery Manufactures Union, Ludhiana	..	September 4, 1941
2	Northern India Hosiery Manufacturing Corporation, Ludhiana	..	July 28, 1950
3	Bharat Hosiery Manufacturing Corporation, Ludhiana	..	May 24, 1951
4	Shawl Manufacturing Association, Ludhiana	..	July 20, 1961
5	Hosiery Industry Welfare Board, Ludhiana	..	September 18, 1961
6	Ludhiana Machine Tools Makers Guild, Ludhiana	..	October 24, 1961
7	Cottage Hosiery Manufacturing Corporation Ludhiana	..	July 2, 1962
8	Ludhiana Foundry and Engineers Association, Ludhiana	..	July 18, 1962
9	Ludhiana Knitting Wool Processor’s Merchants Society, Ludhiana	..	August 21, 1962
10	Ludhiana Hosiery Small-scale Union Ludhiana	..	October 16, 1962
11	Hand Knitting Wool Processers Welfare Society, Ludhiana	..	October 19, 1962
12	Hosiery Industry Federation, Ludhiana	..	November 14, 1962
13	Interlock Cloth and Banyan Manufacturing Association, Ludhiana	..	January 28, 1963
14	Ludhiana Cycle Parts Suppliers Association, Ludhiana	..	April 1, 1963
15	Ludhiana Electroplaters’ Association, Ludhiana	..	July 30, 1963
16	Banyan Manufactures Association, Ludhiana	..	August,161963

(I) Industrial Labour

The industrial labour in the district is mostly drawn from the local population or from the neighbouring villages. They live in all localities including slum areas and industrial colonies. Besides, a good number return to the neighbouring villages. The industrial expansion in the district has provided an incentive to the agricultural labor to switch labour to switch over to industry.

The industrial Training Institute, Institute of Textile Chemistry and Knitting Technology, and Industrial Schools now increasingly meet the demand for skilled labour and thereby greatly help the development of industries in the district.

Labour and Employees Organisations.- The following is the list of registered industrial workers unions as it stood in 1965:-

Serial No	Name of Union		Date of Registration
1	Hosiery Workers Union, Ludhiana	..	February 21,1952
2	District Textile Workers Union, Ludhiana	..	June 10,1955
3	Hosiery Workmen Association, Ludhiana	..	February 6, 1959
4	Ludhiana Iron and Steel Workers Union, Ludhiana	..	September 29,1959
5	District Iron and Steel Workers Union, Ludhiana	..	November 10, 1959
6	General Labour Union, Ludhiana	..	May 28,1960
7	Hosiery Mazdoor Union, Ludhiana	..	July 27, 1962
8	Pearl Woollen Mills Workers Union, Ludhiana	..	August 21, 1962
9	Chakki Mazdoor Union, Ludhiana	..	November 3, 1962
10	Cycle Mazdoor Union, Ludhiana	..	April 11, 1963
11	Metal Mazdoor Snagh Union, Ludhiana	..	June 1, 1933
12	Dyeing and Finishing Workers Union, Ludhiana	..	June 12, 1963
13	Ludhiana Texitle Mazdoor Union, Ludhiana	..	October 5, 1963
14	Woollen Mills Workers Association, Ludhiana	..	November 4,1963
15	Supreme Karamchari Union, Ludhiana	..	November 8, 1963
16	National Saw Mills Mazdoor Union, Ludhiana	..	December 26, 1963
17	District Engineering Workers Union, Ludhiana	..	January 20, 1964
18	Hosiery Mazdoor Sangh Union, Ludhiana	..	February 12, 1964
19	Press Workers Union, Ludhiana	..	August 12, 1964
20	Krishna Roller and Flour Mills Workers Union, Ludhiana	..	May 13, 1964

(Source :- Labour Commissioner, Punjab, Chandigarh)

APPENDIX

Particulars of industries in Ludhiana District

Serial no	Name of Industry	Year	No if units	Production		Average employment
				Quality	Value
					(Rs. In Lakhs)
	Industries in Large-scale Sector
1	Woolen textile	1961-62	15		296.15	1,533
		1962-63	15		403.82	1,887
		1963-64	17		469.76	2,417
		1964-65	19		461.65	3,152
		1965-66	19		424.27	3,160
		1966-67	..		-	..
2	Bicycles	1961-62	2	Nos 78640	-	277
		1962-63	2	Nos 105507	134.58	377
		1963-64	2	Nos 139024	177.04	397
		1964-65	2	Nos 168146	212.41	413
		1965-66	2	Nos 191826	229.03	428
		1966-67	2		295.00	496
3	Sewing Machines and sewing Machine Parts	1961-62	3	Nos 35469	-	300
		1962-63	3	Nos 40881	-	325
		1963-64	3	Nos 50332	62.90	402
		1964-65	4	Nos 61559	89.15	652
		1965-66	4	Nos 47793	51.38	587
		1966-67	4		73.88	650
4	Machine tools	1961-62	3		31.21	454
		1962-63	3		50.52	527
		1963-64	3		52.54	760
		1964-65	3		75.32	779
		1965-66	3		63.10	686
		1966-67	3		67.55	636
5	Automobiles	1961-62	-		-.	-
		1962-63	1		9.82	107
		1963-64	1		15.34	149
		1964-65	1		13.50	202
		1965-66	1		19.08	236
		1966-67	1		34.89	298
6	Card Clothing	1961-62	-		-	-
		1962-63	1		4.00	94
		1963-64	1		4.50	105
		1964-65	1		18.27	175
		1965-66	1		16.90	40
		1966-67	1		1500	45
7	Stapple spinning	1961-62	-		-	-
		1962-63	1		-	..
		1963-64	1		11.45	312
		1964-65	1		11.50	200
		1965-66	1		10.79	200
		1966-67	1		30.11	225
8	Gas (oxygen)	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	1	Cylinders 6287	0.72	25
		1964-65	2	Cylinders 49579	4.43	56
		1965-66	2	Cylinders 52914	4.63	58
		1966-67	2		9.30	60
9	Nylon	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	-		-	-
		1964-65	1		4	25
		1965-66	1		5.50	30
		1966-67	1		7.50	24
10	Nuts	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	-		-	-
		1964-65	1		27.84	152
		1965-66	1		27.15	176
11	Measuring tapes	1961-62	1		.-	-
		1962-63	-		14.67	100
		1963-64	1		15.66	105
		1964-65	1		1.50	118
		1965-66	1		16.50	120
		1966-67	1		-	-
12	Steel Re-rolling	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	-		-	-
		1964-65	-		-	-
		1965-66	1	1909 Metric tonnes	13.84	50
		1966-67	1		-	-
13	Flour Mills	1961-62	2	6197.55 Metric tonnes	-	125
		1962-63	2	13970.61 Metric tonnes	-	139
		1963-64	2	51750 Metric tonnes	-	158
		1964-65	2	2984.4 Metric tonnes	134.31	140
		1965-66	2	1804.54 Metric tonnes	93.52	108
		1966-67	2		67.87	104
	Industries in small-scale Sector
14	Agricultural Implements	1961-62	57		25.20	200
		1962-63	62		23.12	210
		1963-64	64		23.13	215
		1964-65	67		23.25	221
		1965-66	67		23.00	215
		1966-67	68		23.06	217
15	Machine Tools	1961-62	152		132.00	2,700
		1962-63	155		142.00	2,720
		1963-64	157		144.00	2,750
		1964-65	204		15.00	2,760
		1965-66	244		175.00	3,123
		1966-67	255		225.00	3,150
16	Bicycles and Bicycle Parts Bicycles	1961-62 1961-62	21 500	Nos. 36913 ..	... 970.00	5,950
		1962-63 1962-63	9 503	Nos. 43772 ..	.. 650.00	2,050
		1963-64 1963-64	9 510	Nos. 44100 ..	.. 660.00	5,775
		1964-65 1964-65	9 512	Nos.44176 ..	.. 670.00	5,800
		1965-66 1965-66	9 554	Nos. 42000 ..	.. 667.00	5,715
		1966-67 1966-67	9 558	.. Nos.42500	.. 666.00	5,720
17	Sewing Machines and Parts Sewing Machines, Sewing Machine Parts	1961-62 1961-62	10 190	Nos 16090 ..	.. . 120.00	2,000
		1962-63 1962-63	17 194	Nos 16456 ..	.. 180.90	2,040
		1963-64 1963-64	18 194	Nos 16540 ..	.. 182.00	2,,50
		1964-65 1964-65	18 194	Nos 16550 ..	.. 182.00	2,225
		1965-66 1965-66	18 194	Nos 14000 ..	.. 165.00	2,050
		1966-67 1966-67	18 194	Nos 14500 ..	165.00 ..	2,050
18	Steel Re-rolling	1961-62	3	4933 Metric Tonnes	3.70	62
		1962-63	3	4900 Metric Tonnes	3.73	92
		1963-64	3	4910 Metric Tonnes	3.78	95
		1964-65	3	4920 Metric Tonnes	3.78	97
		1965-66	12	9840 Metric Tonnes	7.58	185
		1966-67	12	9872 Metric Tonnes	..	185
19	Water Pipe Fittings	1961-62	2		1.01	20
		1962-63	3		3.00	34
		1963-64	3		3.00	36
		1964-65	4		3.09	37
		1965-66	4		2.50	30
		1966-67	4		2.60	30
20	Bolts and Nuts	1961-62	15		21.50	130
		1962-63	20		24.90	152
		1963-64	22		25.00	160
		1964-65	61		41.00	816
		1965-66	107		67.00	1,100
		1966-67	107		67.05	1,100
21	Electrical Goods	1961-62	21		8.50	237
		1962-63	28		16.90	210
		1963-64	33		16.95	215
		1964-65	40		17.97	225
		1965-66	40		20.00	250
		1966-67	40		20.05	255
22	Surgical Instruments	1961-62	2		2.10	25
		1962-63	2		2.10	24
		1963-64	2		2.12	25
		1964-65	2		2.13	27
		1965-66	2		2.00	24
		1966-67	2		2.05	25
23	Power Loom	1961-62	320		.-	3,070
		1962-63	320		-	4,560
		1963-64	320		-	4,540
		1964-65	320		722.60	5,957
		1965-66	569		507.00	5,500
		1966-67	570		502.25	5,200
24	Hosiery	1961-62	950		450.00	--
		1962-63	1363		715.00	25,630
		1963-64	1420		750.00	28,000
		1964-65	1709		760.00	28,800
		1965-66	1887		700.00	28,000
		1966-67	2000		8000.00	13,500
25	Cotton Ginning and Pressing	1961-62	21	50,000 Bales	-	710
		1962-63	12	25,600 Bales	-	650
		1963-64	12	25,500 Bales	-	680
		1964-65	12	25,600 Bales	-	700
		1965-66	12	25,000 Bales	-	675
		1966-67	12	25,500 Bales	-	680
26	Conduit Pipes	1961-62	6		6.00	60
		1962-63	6		6.50	60
		1963-64	6		6.60	65
		1964-65	6		6.65	70
		1965-66	6		5.50	55
		1966-67	6		5.02	55
27	Automobile Parts	1961-62	..		-	..
		1962-63	..		-	..
		1963-64	87		65.20	110
		1964-65	123		90.00	1,500
		1965-66	148		112.00	1,590
		1966-67	148		112.05	1,595
28	Plastic Goods	1961-62	-		.-	-
		1962-63	9		4.05	60
		1963-64	10		5.00	65
		1964-65	11		8.50	70
		1965-66	14		9.83	80
		1966-67	15		9.75	80
29	Paints and Varnishes	1961-62	-		-	-
		1962-63	1		.95	6
		1963-64	1		.98	8
		1964-65	1		2.00	13
		1965-66	1		2.84	10
		1966-67	1		3.15	8
30	Umbrella Ribs	1961-62	2		7.5	150
		1962-63	2		7.5	151
		1963-64	2		7.5	151
		1964-65	2		10.00	344
		1965-66	1		14.00	175
		1966-67	1		15.05	175
31	Radio Assembling	1961-62	20	2,500 Sets	3.75	80
		1962-63	27	3,250 Sets	4.50	90
		1963-64	30	3,600 Sets	4.51	100
		1964-65	30	3,800 Sets	4.81	102
		1965-66	44	4,300 Sets	5.46	104
		1966-67	44	4,500 Sets	5.70	106
32	Rubber Goods	1961-62	4		2.5	60
		1962-63	4		2.4	40
		1963-64	4		2.4	42
		1964-65	7		3.50	50
		1965-66	9		3.35	55
		1966-67	9		3.45	55
33	Stationery Articles	1961-62	5		3.05	48
		1962-63	5		3.25	45
		1963-64	5		3.25	46
		1964-65	5		4.00	48
		1965-66	5		3.75	48
		1966-67	5		4.75	30
34	Measuring Tapes	1961-62	5		5.00	90
		1962-63	4		4.05	70
		1963-64	4		4.06	75
		1964-65	4		4.70	77
		1965-66	4		7.09	44
		1966-67	4		7.12	44
35	Snap Button	1961-62	1		3.50	22
		1962-63	3		4.25	25
		1963-64	3		4.25	25
		1964-65	3		4.26	27
		1965-66	3		4.65	24
		1966-67	3		4.75	24
36	Spray Pumps	1961-62	1		14.31	50
		1962-63	1		14.78	55
		1963-64	1		14.78	57
		1964-65	1		14.80	65
		1965-66	1		25.00	55
		1966-67	1		4.12	80
37	Steel Furniture	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	-		-	-
		1964-65	-		-	-
		1965-66	3		6.50	78
		1966-67	3		6.10	80
38	Washing Soap	1961-62	33		22.00	132
		1962-63	50		25.00	161
		1963-64	50		26.00	180
		1964-65	80		27.00	260
		1965-66	94		28.05	280
		1966-67	94		29.00	280
39	Zip fastener	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	1		-	-
		1964-65	1		0.5	25
		1965-66	1		1.92	35
		1966-67	1		2.05	40
40	Diesel Engine	1961-62	-		.-	-
		1962-63	-		-	-
		1963-64	7		14.44	116
		1964-65	9		18.00	136
		1965-66	10		-16.00	132
		1966-67	10		17.25	140
41	Casting/Forging	1961-62	-		-	-
		1962-63	-		-	-
		1964-65	119		26.00	1,174
		1965-66	140		38.00	1,200
		1966-67	140		39.25	1,225
42	Chemicals	1961-62	2		2.00	18
		1962-63	3		1.01	18
		1963-64	3		1.02	20
		1964-65	3		1.20	19
		1965-66	3		1.20	21
		1966-67	3		2.03	20
43	Scooters	1961-62	-		-	-
		1962-63	-		-	-
		1963-64	1		0.89	35
		1964-65	1		5.65	51
		1965-66	1		33.62	155
		1966-67	1		9.00	170
44	Hosiery Needle	1961-62	1		2.38	130
		1962-63	1		2.85	130
		1963-64	1		2.86	132
		1964-65	1		2.82	100
		1965-66	1		10.00	40
		1966-67	1		2.10	44
			Village Industries
45	Handloom Weaving	1961-62	1220		69.10	2,200
		1962-63	1220		60.00	2,200
		1963-64	1260		62.00	2,500
		1964-65	1265		62.02	2,506
		1965-66	1274		59.05	2,450
		1966-67	1275		60.05	2,460
46	Leather and hides Tanning	1961-62	440		-	1,050
		1962-63	460		54.20	900
		1963-64	455		41.65	870
		1964-65	450		41.10	872
		1965-66	450		35.60	872
47	Shoes and Leather Goods	1961-62	1100		13.05	3,100
		1962-63	1100		9.00	3,100
		1963-64	1120		9.15	3,128
		1964-65	1125		9.16	3,129
		1965-66	1130		9.20	3,135
		1966-67	1135		1.30	3,145
48	Kohla-(village Oil Presses)	1961-62	12		1.20	150
		1962-63	12		1.20	150
		1963-64	10		1.00	126
		1964-65	10		1.01	128
		1965-66	10		1.05	120
		1966-67	10		1.15	121
49	Ban and rope making	1961-62	70		0.85	160
		1962-63	71		0.90	165
		1963-64	75		1.00	170
		1964-65	76		0.97	172
		1965-66	70		1.00	170
		1966-67	70		1.05	175
50	Gur and Khandsari	1961-62	4		4.73	75
		1962-63	17		4.25	100
		1963-64	25		4.50	120
		1964-65	26		4.52	123
		1965-66	26		4.75	125
		1966-67	26		4.80	128
51	Handicrafts	1961-62	-		-	-
		1962-63	4		3.00	50
		1963-64	4		2.90	45
		1964-65	4		2.92	46
		1965-66	4		3.00	48
		1966-67	4		3.05	50

CHAPTER VI

BANKING, TRADING AND COMMERCE

v Banking and finance

v Trade and Commerce

v Co-operation in Trade

(a) Banking and Finance

History of Indigenous Banking:- Banking has been practiced in India since ancient times. There are innumerable references in ancient literature to the very system of banking in India, which financed trade and commerce. This system continues working to the present day in sprite of the opening of large number of number of banks run on modern lines. It is difficult to trace the history of indigenous banking in the area now comprising Ludhiana district. Since very early times the people were accustomed to the use of credit instruments like hundis, etc. Muslim historians of the 12^th century also refer to the existence of Multanis and Shroffs who financed internal trade and commerce and were also the bankers to the ruling dynasties. It is also believed that the foreign trade was chiefly financed by the indigenous bankers. Apart from money-leading function that these bankers were performing, even more important was the business of money changing ,so necessary in those days when a large number of mints issued metallic currency of various denominations causing great embarrassment to the general public. They also acted as revenue collectors, bankers and money changers to the Government. Judged from their power and influence, the Jaget Seths or World Bankers of the 17 th and 18 th. Centuries, indeed, seem to have fulfilled many of the functions of a Central Bank-essentially a modern institution. The existence of this system is corroborated by the accounts of travelers and Ain-I-Akhari. Beside, people forced by vagaries of weather resulting in the frequent failure of crops, were compelled to knock at the door of the Sahukar to borrow money to meet their urgent domestic needs. The Sankar was at liberty to change any rate of interest . Apart from higher rates of interest ,the borrower was under personal obligation to the money-lender till he was able to clear his debt. There were numerous instances where the interest increased many times the principal, and the borrower ,being unable to discharge the debt, had to get his belongings, including land, attached. Before the advent of the British , this problem of rural indebtedness was not very acute. The types of cases were handled by the village panchayats . These panchayats watched the interest both of the borrower and the money-lender and they newer allowed the money-lender to resort to extreme measures, viz. attachment of land and property. These panchayats prevailed upon the money-lender to be considerate. Being a shopkeeper as well as a money-lender, the Sankar generally preferred to get the produce, on which ,without much effort he could reap a double profit, one from the producer to whom he lent money and the other from the consumer to whom he sold the produce. He was, therefore, content with the crop and stared with State the whole of the cultivator’s surplus. This continued to be the case for the first twenty years of British rule. After 1870, circumstances changed ; land became a first rate investment which was always rising in value. As soon as he realised this, the money-lender began to use it as an outlet for his rapidly accumulating capital, and finding the investment more and more profitable, sought with increasing ingenuity to get the cultivators into clutches and oust him from his land; and it was always the batter land he coveted ; the inferior he avoided. He imposed such hard terms in his mortgages nearly always ended in sale. Land was thus becoming the property of the sahukars or money-lenders. The British realised this serious problem of rural indebtedness and felt that unless some antidote was given the evil might alienate the rights of the tillers of the soil and pass on the land money lenders. It was this phenomenon, more than any other factor, which led to the passing of the Punjab Alienation of Land Act, 1990 (XIII of 1990). Since then the money-lender had to be content with the produce; and a new class of agriculture money-lender cam to the fore. The bulk of the usufructuary mortgage debt passes\d into their hands and they rapidly increased their operations during the period of prosperity which followed the World War I (1914-48).

The passage of the Punjab Alienation of Land Act 1900(X111 of 1990), however, did not better the lot of the tillers. The sahukar, deprived by the Act of the security of the land ,could only lend up to the limit of what could be repaid from the produce. But the agriculturist money lender, to whom the Act did not apply could afford to the value of the land . He was at liberty to offer commanding terms to the tillers. It might be supposed that the Jat would be the more merciful of the two , as he was dealing with his own kith and kin. This ,however, was not the opinion of the countryside:”He often charges less at the start and is certainly less cunning in his devices, but most agree that he is avaricious and exacting and that, being---in a stronger position than the sahukar, he recovers a large proportion of his charges” . There is a truth in the old saying, “The cock and the crow nourish their families ; the Jat and the crocodile destroy them”. The sahukar will occasionally forgo part of his interest, but as a villager in Ludhiana remarked, ‘a Jat forgoes nothing not even a pebble (giti) ;’¹ Thus, if the Punjab Alitenation of Land Act, 1900 (XIII of 1900) rescued the sheep from the wolf, it had only been to hand them over to the butcher. The Act thus aggravated the difficulties of the borrowers instead of lessening them. The agriculturist money-lenders were more cruel than the rural maney-lenders (sahukars) and were always on the look out for the misfortune of the borrows.

1. Malcolm Darling, The Punjab Peasant in Prosperity and Debt, 1947, p. 199.

This class of villages money-lenders along with the Bania was adversely affected with the passing of the Punjab Regulation of Accounts Act, 1930, the Punjab Relief of Indebtedness Act, 1934, the Punjab Debtors’ Protection Act, 1936, and the Punjab Registration of Money-lenders Act, 1938. The agriculturist money-lender explored other channels to invest his surplus funds and finally he was effectively checked when the Punjab Alienation of Land Act, 1900 (XIII of 1900) was repealed with the enforcement of the Constitution on January 26,1950.

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