§ Mr. RUPERT GWYNNEasked the Under-Secretary for India whether he will circulate a statement showing, in parallel columns, the average rate of interest on loans granted by the India Office to approved borrowers in each month in 1910 and 1911, and the bank rate during the corresponding periods?
§ Mr. HAROLD BAKERThe statement is as follows:—
1720W
Month. Average Rate on Loans to Approved Borrowers. Bank Rate Fixed each Thursday in the Month. 1910. per cent. January *2.54 4 4 3½ 3½ — February 1.79 3½ 3 3 3 — March 2.85 3 3 4 4 4 April 3.62 4 4 4 4 — May 3.3 4 4 4 4 — June †2.81 3½ 3 3 3 3 July 1.49 3 3 3 3 — August 1.91 3 3 3 3 — September 2.14 3 3 3 3 4 October 3.42 4 4 5 5 — November 4.74 5 5 5 5 — December 3.43 4½ 4½ 4½ 4½ 4½ 1911. | January 3.35 4½ 4½ 4½ 4 — February 2.97 4 4 3½ 3½ — March 2.83 3½ 3 3 3 3 April 2.34 3 3 3 3 — May 1.81 3 3 3 3 — June 1.76 3 3 3 3 3 July 1.36 3 3 3 3 — August 1.61 3 3 3 3 3 September 2.29 3 3 4 4 — October 2.7 4 4 4 4 — November 2.78 4 4 4 4 4 December 3.68 4 4 4 4 — * 1st January to 5th, 4½ per cent. † 1st June, 4 per cent. It should be observed that India Office loans are granted under the following conditions: (1) Each loan must be to one of the borrowers on the Approved List, which at present includes sixty-one names; (2) The securities accepted are restricted to certain Government and similar securities of the highest class; (3) The period of each lean is at most six weeks and usually less, and the date of maturity is necessarily fixed with reference to the convenience of the India Office, not of the borrower. These conditions necessarily keep the rate of interest below the bank rate, which applies mainly to transactions of a quite different nature.