ABSTRACT
This chapter looks at the problem of resource-mobilisation from the angle of savings. The average villager is illiterate and it is difficult to convince him that to secrete his wealth or to invest it in gold and silver is risky and injurious to his and his country’s interest’. Particularly important are measures to encourage rural savings for local needs of a kind understood and approved of by the saver, rather than for general governmental projects whose immediate effect on the local economy is either negligible or extremely indirect. Only when long-term securities are readily marketable at prices quoted on the Stock Exchange can this form of investment be combined with liquidity; it is only then that a savings bank, commercial bank or insurance company dare invest, in this way, its short-term or call deposits. Similar considerations apply to the taking up of ordinary government bonds by both individuals and savings institutions.
