Prior to the establishment of the colonies, many farmers in the Punjab were in debt to money-lenders. However, with the increased incomes in the colonies, the proportion of debt owed to traditional money-lenders was considerably less than in other non-colony areas. Furthermore, by obtaining the grants at nominal prices, the settlers were able to enjoy the vast capital appreciation of their land as it grew increasingly productive. By the 1920s, thirty years after the establishment of the Chenab Colony, the average land price in Lyallpur was Rs. 1200 providing a capital gain of 9,900 percent.Darling, M.L., The Punjab Peasant in Prosperity and Debt, London: Oxford University Press, 1925.
