§ MR. MALLOCK (Devon, Torquay)I beg to ask the Chancellor of the Exchequer whether, having regard to the terms on which loans may be advanced for the purchase of land in Ireland under the Act of last Session, and to the terms on which it is proposed that loans may be advanced to County Councils under the Small Agricultural Holdings Bill now before Parliament, he will consider the advisability of modifying the Treasury Minute, dated 4th May, 1887, on Harbour Loans so that loans may be advanced to fishery harbours on more favourable terms than are authorised by that Minute?
§ *MR. GOSCHENThe rate at which loans can be advanced for various purposes by the State depends not only upon the rate at which the State can borrow, but on the security which can be afforded. Where there is experience that bad debts are incurred, it is necessary to fix the loans with some reference to the ultimate result to the State. The case of harbours, to which the Minute in question applied, shows generally that the rates at which money has been advanced have not been more than sufficient to insure the State against loss, even if it should ultimately be proved that they have been sufficient, which is extremely doubtful.
§ MR. MALLOCKDoes that apply to loans advanced on collateral security?
§ *MR. GOSCHENTaking all the loans together—and no loans have been advanced without some kind of security—it seems extremely doubtful whether it will not be necessary to write off something as bad debts.