HC Deb 16 July 1867 vol 188 cc1653-4

Bill considered in Committee.

(In the Committee.)

Clause 1 agreed to.

Clause 2 negatived.

MR. KARSLAKE

moved the insertion of a new clause empowering Trustees to invest Trust Funds in any Securities guaranteed by Parliament.

MR. WALPOLE

said, that the clause would enable trust investments to be made, not only upon securities now guaranteed, but hereafter to be guaranteed by Parliament, and some of these might possibly not be fit subjects for such investments.

SIR ROUNDELL PALMER

said, that the guarantee of Parliament really made any security a Parliamentary security. Of course it was the home Parliament which was referred to in the clause, not any colonial legislature. He could not conceive how such a security would be inferior to any of the public stocks or funds. He believed it would be quite safe to agree to the clause. It was not likely that the Imperial guarantee would be given to any loan bearing a high rate of interest. He did not see either that the interests of the remainderman would be injured, or those of the tenant for life unduly promoted.

Clause agreed to and added to the Bill.

MR. NORWOOD

said, he moved a clause to enable Trustees to invest any Trust fund on the Mortgage of County, City, or Borough Rotes, assessed pursuant to Act of Parliament, in any case where such an investment was not forbidden by the instruments creating the trust. County, City, or Borough Rates levied pursuant to Act of Parliament formed a safe and ample security for the advancement of money, and the purposes for which such rates were raised being of a beneficial character, he thought that every assistance and facility should be afforded to communities to raise money in that way.

MR. SHERIDAN

said, the Bill, as he had introduced it, was intended to be simply declaratory, and not enacting, and the clause just proposed would travel beyond that intention.

SIR ROUNDELL PALMER

said, that such securities as these were liable to deterioration. Some corporations had become insolvent, others had assumed a power to raise money on charges or rates, winch power had been held by Courts of Equity to be invalid. It would not therefore, be safe to allow these investments.

MR. HADFIELD

said, he cordially approved of the proposed clause, which would have the effect of lessening the great difficulty frequently felt by trustees in finding good security at good interest for the funds which they wished to invest.

Clause negatived.

Bill reported; as amended, to be considered upon Thursday, and to be printed. [Bill 259.]