RELIEF OF INDEBTED AGRICULTURISTS. 163 



their bonds are mostly no correct representation of actual transac- 

 tions. In close connection with this difficulty about bonds is 

 that of usurious and of compound interest, whether only levied 

 in the account, or also provided for in the bond. That the money- 

 lenders do obtain bonds on false pretences ; enter in them sums 

 larger than agreed upon ; deduct extortionate premiums ; give no 

 receipts for payments and then deny them ; credit produce at 

 fraudulent prices ; retain liquidated bonds and sue on them ; use 

 threats and warrants of imprisonment to extort fresh bonds for sums 

 not advanced ; charge interest unstipulated for, over-calculated, 

 or in contravention of Hindu law, and commit a score of other 

 rogueries these are facts proved by evidence so overwhelming 

 that I scarcely know whose to quote out of the five volumes compo- 

 sing the Report of the Commission. Hence arises the question 

 whether, as the Secretary of State expresses it, 'the Courts should 

 be obliged to enter into the merits of every money-cK*im, whether 

 for principal or interest, as they deemed just, and should in no case 

 give compound interest, or a larger amount of interest than the 

 principal sum.' 



The answer in the affirmative has been maintained, in 

 various quarters of not inconsiderable authority, to be in accor- 

 dance with sound general principles of equity. SIR ARTHUR HOBHOUSE, 

 in a note on the execution-sale of land dated April 28th, 

 1874, when alluding to some remarks by f a man like SIR JOHN 

 STRACHEY, who treats the subject with equal sobriety and ability,' 

 continues : 



'From my point of view, I say that, if what he has said, or the major part of it, 

 be now true, it can oiily be met by a large increase of correctional power over 

 contracts to be vested in judicial tribunals and strengthened by a usury law. In 

 our own country the Courts of Equity invented laws for the protection, not only of 

 persons of weak character and immature age, but of expectant heirs, of rever- 

 sioners in fact, of all persons placed under temptation to make improvident 

 bargains. When they came across the usury laws they made them subject to the 

 more sweeping law created by themselves, and moulded them so as to produce 

 fairly reasonable, though not very legal, results. They laid hold of mortgages under 

 which the mortgagee became absolute owner if the debt were not paid by a certain 

 day, and declared that the parties did not mean what they had said, but that, 

 notwithstanding the absolute forfeiture, there remained an equity of redemption 

 in the mortgagor. * * * I do believe that sensible Judges, armed with a large 

 power of moulding improvident bargains, and strengthened by a usury law in the 

 back-ground, may administer more than a trifling palliative/ 



