It is by the execution of such works that the village would prosper and the village fund grow. Loans should be granted for these purposes by Government, to be repaid out of the profits. Before our annexation all works were executed by the villages, and the considerable irrigation works in many places are evidence of their ability. All this initiative has now been killed. Yet it is a most valuable asset, not only materially, but morally. As regards this fund, it will, I know, be objected by many people that it will be simply an excuse for peculation. "Orientals," they say, "cannot be honest, and the funds would be misappropriated right and left." Exactly this same charge was made when the Co-operative Credit Banks were started. Their history will sufficiently refute such an absurdity. Orientals are just as honest as any other people, and, given a good system, village funds will no more be stolen in India or Burma than municipal funds are in England. In organising these villages there is another point to be borne in mind. In that desperate struggle after rigid uniformity which distinguishes the Indian Government, every separate hamlet in Burma was put under a separate headman, and thus made a separate organism. Now it may be that occasionally the village was too large, and a division was needed, but in many other cases the disintegration of long-established units was severely felt. Several hamlets may have one interest in common. They may be grouped round a small irrigation work, or along a stream, or have a fishery in common, or be in other matters of great use to each other. If run as separate organisms there is bound to be strife, each trying for his own benefit. If allowed to remain one organism they will be not only more peaceful, but stronger, and better able to manage their affairs. Thus the rigid formulæ of Government in this matter as in others should give place to common sense. Further: in future, villages should be allowed to coalesce if mutual interests attract them. Two or three villages if allowed to combine would carry out works that one could not do.