A really sound banking development suited to the conditions prevailing in China is the co-operative movement. The co-operative movement first made its appearance in Germany, and, until recently, has remained a potent factor in the regulation of the life of the average individual and the farmer. The peculiar nature of the industrial system in England, and the large number of provincial banks and branches of the metropolitan banks, have obviated the necessity of co-operative banks in that country. In India, several banks of this nature are being started with the help of the Government. The advantages of this kind of banks are that it enables the man with a small capital to invest profitably without any risk, as also that it helps the farmer who has generally no security, in the proper sense of the word, to borrow small sums at reasonable rates of interest. Co-operative banks are specially suited for this country, where the farmers are generally impecunious and are usually imposed upon by the middlemen who buy their produce, in order to sell eventually for export. The savings of a good year are usually wiped off by a single bad harvest, the condition of the farmer as a rule being extremely pitiful. Co-operative banks are especially suitable for this class of people; and when once the farmer knows that a bad harvest does not mean absolute ruin, he would have an incentive to increase the harvest and thus help to advance the export trade. The lines on which such banks should be organized would vary with the difference in local conditions. A thorough scheme for the organization of co-operative banks in the different parts of this country would involve too much detail, and is beyond the scope of this book.