INDEBTEDNESS OF THE LAND-HOLDING CLASSES. 31 



instalments should be fixed, and when fixed they might be collected 

 with the land revenue and paid over to the creditor, who would 

 thus be freed from all trouble in executing his decree, and from 

 almost all risk. 



21. The risk being thus lowered, it is but reasonable that the 

 rate of interest should be reduced ; and this is an essential part of 

 any scheme for paying off large amounts of debt. It may not be 

 wise to fix by law the limits of rates of interest which the Court shall 

 decree, but it would seem desirable that the local Government should 

 be authorised to indicate to the Courts the maxim nm and minimum 

 rates that should, with a general reference to the value of money, 

 ordinarily be paid. At present 24 and 36 per cent, are commonly 

 paid by agriculturists, rates which would be fatal to successful agricul- 

 tural enterprise in any country. Six per cent, is the rate now usually 

 paid by Native merchants when they borrow from each other as a 

 temporary convenience, and something above this may be necessary 

 in India in the case of profits dependent on the land and the weather, 

 but the object should be not to recognise any rate in excess of 

 that which would be reasonable, having in view the character of 

 the security offered. 



22. The same principle adopted for dealing with existing debt might 

 also be applied in the cases of new loans raised by owners of unen- 

 cumbered estates. A mortgage need not be an agreement entered into 

 privately, and on very onerous terms, between the money-lender, 

 taking all risks, and the landowner, assenting to terms he does not 

 understand, but might, with advantage to both parties, rather be an 

 agreement openly made between them before the Collector, and on 

 terms sanctioned and to be enforced by him. Any mortgage not so 

 made would rank only as a simple unsecured debt, and no cognizance of 

 it would be taken by the Court which alone would have jurisdiction 

 in respect of landed debts. Personal and unsecured debts would not 

 be put beyond the pale of the law, but decress for them would not be 

 liable to be executed against the land. In special tracts it might be 

 thought advisable that the Collector should be empowered to refuse his 

 sanction to a loan incurred for an extrvagant or merely ceremonial pur- 

 pose, or for any cause but one of agricultural improvement or necessity. 



23. The landholder would in such case execute an agreement before 



O 



the Collector, or the Court which deals with agricultural debts, to repay 

 the loan, principal and interest, in an appointed number of instalments, 



