GIPE-PUNE-OIIOI2 - DSpace@GIPE

2'58 RATIONALIZATION IN INDIAN BUSINESS ENTERPRISE
The second ~rganization is known as the East India
.cotton Association, and was brought into existence by a,
Government chartet in t922. The functions of this
Association are less co~prehenslve than those of the
Committee. Indeed, the Association looks exclusively to, .
the cemmercial asPects of cotton. A large number of
independent and often conflicting organizations used to.
take interest in the cotton trade of Bombay previous to
and during the first stages 01 the War. The estahlish.
ment of the East India Cotton Association has led to th~
dissolution or merging of those units into pne centralized:
body. Under the auspices of this Association a regular
Cotton Exchange has been functioning at Bombay and
steps have been taken to standardize the difJerent cottons.
according te quality. for the first time the marketing of
Indian cotton has been placed on a theroughly systematic.
and uniform basis.
Rationalization is catching. The success of cotton,
rationalizatiOn has evokd a parallel attempt in the jute.
trade of Bengal. And since 1929 the suhject has been.
demanding the'serious attention of the Govemment.
In India as in EUl-America and Japan the W'ar has;
been a great teacher of rationalizations. And as in othereconomic
enterprises, in hanking also India owes attempts.
at I'ationalization to t'le .experiences of the War. The
. three Presidency Banks of Bengal, Madras and Bombay,.
as constituted by the Act of 1876, were independent of
one another and also, to a very considerable extent, of the
Government. The W ar c~ml?elled not only a greater
and greater interdepeildel).ce am.ong' theJ;Ilselves but also
a more intimate assO(;i.ation o~ each with the Covenunent
finance. The pressure of the money market and general