46 GRANT OF LOANS AND ADVANCES TO AGRICULTURIST'S. 



under the Bill would be made, of course, from the cash balances, 

 and the cash balances consisted partly of the results of Imperial 

 taxation, and partly of sums raised by loan. Now, how was it 

 possible to spend such balances more properly than in stimulat- 

 ing and assisting agriculture the only reliable field for 

 taxation ? The security for these advances was the best possible 

 the very land that was to be improved. He agreed that it was 

 highly desirable that similar security should be provided in 

 the case of canals ; any such proposal would certainly have his 

 (SiR R. TEMPLE'S) support. As to the rate of interest, it would 

 always be such as to fully recoup the Government for all expenses 

 connected with the loan ; no fraction of any such expenses would 

 fall on the general tax-payer. In former times some small advances 

 might have been made without interest, on the principle, he 

 supposed, that land revenue not expended might, with propriety, 

 be spent on the landowner from whom it was derived. But the prin- 

 ciple was one that obviously could not be generally carried out. 

 Those who borrowed should, as a rule, pay interest ; and this being 

 so, there was no need for the short periods in which, under the 

 old system, these loans were repayable. These short periods had 

 to a great extent, neutralized the value of the advance, because 

 an agriculturist found himself obliged to repay the loan before 

 he began to reap any advantage from the improvement effected. 

 Now that a man would pay fair interest, there would be no need 

 for any such hurry. It was far better that the people should 

 borrow of Government than from their own countrymen on what, in 

 any civilized country, would be regarded as exorbitant rates. It 

 was a great duty to encourage saving, and to lead tenants, as 

 well as landlords, instead of hoarding their savings, hiding them 

 in a napkin, melting them down into ornaments, or burying them 

 in the ground, to apply them as capital to reproductive purposes 

 in compliance with the sound principles of political economy. 



His EXCELLENCY THE PRESIDENT said I cannot allow the Bill 

 to pass without expressing my satisfaction at the prospect of its 

 immediately becoming law. 



Ever since I have been in India I have been most anxious that 

 the system under which takavi advances have for years been made, 

 should be systematized and rendered more beneficial. 



