HC Deb 28 June 1881 vol 262 c1487

asked the Secretary of State for India, Whether, in order to obtain the highest subscription price for the proposed Indian Loan of three crores of Rupees, such arrangements can be made as will enable intending applicants to tender in England in sterling as well as in India in rupees?


Sir, in all Acts of Parliament which have been granted since 1858 to enable the Secretary of State in Council to raise money in the United Kingdom on the credit of the Revenus of India, the whole amount to be charged on the Revenues of India has been limited. The point involved in the question is whether the Secretary of State, acting as the Agent of the Governor General in Council, can, without the previous concurrence of Parliament, receive money in London for an Indian Rupee Loan. In 1858 a Bill was introduced into Parliament, containing a clause empowering the East India Company to receive subscriptions in the United Kingdom for loans opened by the Governor General in Council, the precise object suggested in the Question; but, after considerable discussion, the clause was withdrawn. In 1859 the then Secretary of State (Lord Stanley) was asked whether it were necessary for him to apply to Parliament every time he required a loan of money; and he replied that the Secretary of State might raise what money he required, without the sanction of Parliament, but only by a circuitous process. The Government of India might, by its Agents here, raise the money; but he added that such a course, although within the letter of the law, would be contrary to its spirit. I do not think that under these circumstances it would be desirable to make such arrangements as are suggested in the Question.