Royal Commission on Labour in India: Report(1929)||
The two main considerations are the use which is likely to be made of the money and the question of administration. Experience in other countries generally tends to the conclusion that recurring payments are more beneficial to workmen and their dependants, as a large sum disbursed to them is apt to be squandered. And some of the witnesses who appeared before us (including some employers) thought that the lump sums now paid were generally squandered. But we received on the whole more evidence to the contrary effect. That the sums are dissipated in a number of cases is probable; but the ordinary Indian workman and his dependants in the village have a very acute realisation of the value of money, and are in most cases in a position to derive substantial advantage from a capital sum. Many are enabled to liquidate debts on which they are paying, as interest, charges far exceeding any recurring payments that could be regarded as equivalent to the capital sum involved. The purchase of a plot of land is a method commonly adopted in other cases, with beneficial results, and we have come across other sound methods of investment. And while substantial sums are doubtless spent on marriages, expenditure of this kind is usually undertaken out of no love of extravagance, but because of the pressure of social customs; some such expenditure is obligatory even upon the man who has no capital, and the possession of ready money saves ruinous charges on account of interest. While the evidence is hardly sufficient to justify an emphatic view, we are inclined to the conclusion that the benefit generally derived from the sums received is greater than that which would accrue from recurring payments on an equivalent scale.