§ Order for Second Reading read.
§ SIR GEORGE CAMPBELLsaid, that the object of this Bill was to allow money to be raised for purposes of the Indian Government. He had been startled to find that the money to be raised under this Bill was to be made into a per- 581 manent loan upon the Consolidated Fund. He hoped, that the Government would give them some assurance that the loan was not to be made a permanent charge upon England. The great object was that money should not be raised in such a manner that the obligation was to rest upon England rather than upon India. Lord Lytton would not concern himself very much to see to the repayment of the money. Hewouldsay—"We need not trouble ourselves about it, and when it becomes due we will appeal to the Government in respect of it." Lord Lytton would, year after year, allege that circumstances were unfavourable, and beg the Government not to press for the repayment of the money. He wanted to know what would be the effect of that Bill placing the money on the Consolidated Fund? Would the effect be that if the Indian Government did not pay it would not be necessary to bring the matter before the House, and that the money would remain a charge upon the Consolidated Fund?
§ MR. COURTNEYwished to ask a question before the right hon. Gentleman the Chancellor of Exchequer rose to reply. He entirely assented to the necessity of permitting £2,000,000 to be raised by an addition to the permanent Debt; but how was it to be raised? The Commissioners of the National Debt were buying and cancelling stock almost weekly; and if they now raised this sum in the open market, they would create debt with one hand, while redeeming it with the other.
§ THE CHANCELLOR OF THE EXCHEQUERsaid, that it was assumed that India would pay what she contracted to pay, and that they looked for certain sums to be paid off every year. It was proposed by the Bill that the repayments should be made, in every case, to a sinking fund. If in any year India did not make the proper payment, then the fact would be brought before the notice of the House. As to the mode of raising the sum, he would make inquiries; but he believed the National Debt Commissioners would advance it out of monies in their hands, without going to the money market.
§ Bill read a second time, and committed for To-morrow.