5. Mr. MacCALLUM SCOTTasked what is the total amount that has been received during the last twenty years as interest on short loans and deposits made from the cash balances of the India Office?
§ Mr. H. BAKERThe interest on short loans and deposits made from the cash balances and the Gold Standard Reserve during the twenty years ending 12th November, 1912, has amounted to £2,533,899. Of this sum £2,420,584 has been earned by the general balances and £113,315 by the balance held on behalf of the Gold Standard Reserve.
§ 7. Mr. RUPERT GWYNNEasked what security was given by Messrs. Samuel Montagu and Company in respect of the sum of £1,050,000 lent to them this year out of the cash balances of India; and to what extent, if any, the security was registered or inscribed?
§ Mr. H. BAKERI will circulate the reply with the Votes. [See Written Answers this date.]
Mr. MacCALLUM SCOTTWill the hon. Gentleman also circulate information with it as to other firms to which money has been advanced?
§ Mr. H. BAKERIf the hon. Member will give me notice I will do that.
§ 9. Mr. RUPERT GWYNNEasked the Under-Secretary of State for India if his attention has been drawn to the fact that no private firm, except Messrs. Samuel Montagu and Company, has been lent so much as £1,000,000 or upwards from the Indian cash balances and Gold Standard Reserve during the years 1911 and 1912; was this exceptional amount lent to them because they paid a higher rate of interest 96 than other borrowers; what was the average rate of interest paid by them in each year; and what other financial advantage, if any, accrued to the public of India from this transaction?
§ Mr. H. BAKERThe fact is as stated. The amount lent to each firm depends on its standing, its ability to deposit security of the kind required, and its willingness to pay a rate of interest as high as or higher than can be obtained from other firms on the approved list. The interest paid by Messrs. Samuel Montagu and Company was at an average rate of £2 7s. 4d. per cent, in 1911 and £2 18s. 9d. per cent, in 1912. The financial advantage to India from the transactions was the receipt of interest amounting to £38,392.