§ Mr. John Abel Smith
said, that the parties interested in this bill had consented to abandon the principle of fines, and in consideration of this he was willing to raise the rate of interest on loans, from 12½ to 15 per cent. He was sure that this would meet the views of the hon. Member for Lambeth, and he would therefore move amendments, to the effect that the interest be so raised, and that it would not be lawful for the societies to impose any fines at all.
§ Mr. Hawes
As the hon. Gentleman had consented to raise the rate of interest from 12½ to 15 per cent., one great objection which he had to the bill was removed; but he did not altogether approve of the amendment, which went to abolish fines: for although the hon. Member had increased the rate of interest by 2½ per cent., he was afraid it would not cover the loss occasioned by the abolition of fines.
§ Mr. J. A. Smith
said that in regard to the rate of interest, he had taken great pains to calculate the expences of the different societies, and he was fully convinced that 15 per cent was amply sufficient to meet them. In regard to fines, he was also convinced from experience of 903 their inefficiency and uselessness. Indeed, they were actually injurious, by encouraging a carelessness on the part of those interested. In the society to which he belonged, he found that out of a sum of 15,000l. lent out in small sums, there were only 12l. of arrears.
§ Report received.