The Credit System In Financing Production
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The analysis of capital in the fishing industry has brought us to a point where it is now necessary to examine in more detail the whole question of the organization of credit in the community.
From the details given it is clear that these Kelantan fishermen have not only a developed cash economy, but also operate a credit system of some complexity. There are three main spheres in which the credit system is important in the fishing economy : in financing the poorer workers, especially during seasons of unemployment or low yield ; in facilitating the purchase of capital equipment; and in facilitating the marketing of the product. A problem of economic and sociological interest which arises therein is the taking of interest on loans. The study of this brings out the difficulty of applying Western economic ideas directly to peasant institutions.