Sketch of the Loan Fund System in Ireland, and instructions for the formation of a new Society; with the Loan Fund Acts and an index

hold property, and to open branches throughout the country. Legacies have been left to the Society, but its funds are now greatly diminished, many of its branches are extinct, and such as remain have no connexion whatever with the Parent Musical Society in Dublin.

A shadow of its former self is still carried on in the vestry of St. Anne's Church, Dublin, but its operations are miserably limited as compared with what might be done with more energetic manage

ment.

During the last thirty years, various Associations have been formed in London, with the view of improving the condition of the Irish peasantry. Some of these Associations bestowed pecuniary grants to encourage the Straw Hat Manufacture; and others to improve the Fisheries, or the state of Agriculture, either by small loans of money, or by grants of fishing-tackle, or of farming or manufacturing implements. These transactions were carried on through the medium of Local Committees, who corresponded with the Parent Associations in London.

The beneficial effects of all these Institutions being generally acknowledged, it was deemed advisable to introduce a new Bill for their further encouragement, as the Musical Society Act of 1778 had substantially fallen into desuetude. This new Bill (which passed in May 1823) enacted, that any number of persons, desirous of forming a

Charitable Loan Society, either by lending small sums of money, or implements of industry, should lodge with the Clerk of the Peace a copy of their rules; that loans not exceeding £10 in any one year might be made to any person upon notes of hand, which would be free of stamp duty; that these loans would be recoverable by the Treasurer of the Society; that legal interest only should be chargeable; that none of the Trustees or Managers were to receive any remunerations, but clerks were to be paid such salaries, or other necessary expenses, as the rules of each Society sanctioned. Any looms, wheels, or other implements, lent out by a Society, were, before delivery, to be stamped, and were to be saved from distress for rent, or debt.

A few years' additional experience demonstrated that many abuses were creeping in under the Act of 1823, and that the beneficial principles of the Loan Fund System could not be worked out, without an alteration in the Law. For although the Trustees and Directors of Loan Societies were personally excluded from all remuneration, yet by the sweeping language " of all necessary expenses" to be paid to clerks, without any limit, members of the families of Directors were in some instances largely remunerated, and little or no profit was realized. Some of the London Associations issued their grants also to the Local Committees free of interest; and as many of these Committees charged the borrowers six per cent., a large profit arose,

which was, however, swallowed up by expensive and irresponsible management.

To meet these circumstances, an Act passed in 1836,* authorizing the Lord Lieutenant of Ireland to appoint a Central Board of Commissioners, with power to them to inspect the books of all Loan Societies established under the Act. The rules also were to be examined and certified by a Revising Barrister, before being lodged with the Clerk of the Peace; and any Society violating the rules was liable to suspension by the Board. The loans were to be repayable by instalments, and interest, not exceeding the rate of 6d. in the pound for twenty weeks, was chargeable to the borrower; while all profits over and above the limited expense of management, were to be appropriated to local charitable purposes, such as maintaining an hospital or school, or aiding in the establishment of some permanent and useful Institution. Each Society was also to send up to the Board a yearly account of its proceedings. In 1838, another Act (1 and 2 Vic. c. 78) passed, making it imperative on all Loan Funds in Ireland to enroll under the Central Board, under pain of non-recovery of any money or goods they might advance. A clause was, however, tacked to the end of it exempting from this provision the Societies in connexion with the "Irish Reproductive," or London Association. Of this hereafter.

• 6 and 7 Wm. IV. c. 55.

This Act also gave the Board power to reduce salaries and expenses, to wind up any Loan Funds not adhering to their rules; to call for the requisite security from every Treasurer; and to advance any sum they might deem requisite to a Local Society, from the funds placed to their credit in the Bank of Ireland. This latter power has never been exercised, for the very satisfactory reason, that no funds have been placed to their credit by the Government for this purpose. This Act, however, in common with those which preceded it, is now found to be exceedingly defective, and ill calculated to achieve the objects intended. More efficient support may, it is supposed, be given the Gentlemen really working these Institutions for the benefit of their poorer neighbours, and a more effectual check put in the hands of the Board for the prevention of those who would turn them into instruments for private gain.

This last Act made it imperative on the Central Board to report annually to Parliament, and enacted that they might sue and be sued in the name of their Secretary.

In compliance with this direction three Reports have been delivered: the first having been printed by order of the House of Commons (No. 578), on the 27th of August, 1839, and the two latter having been presented to both Houses by command of Her Majesty.

It appears by the last Report that the increase of the Loan Fund System has been in the following ratio:

COMPARATIVE STATEMENT showing the progress of the Loan Fund System in Ireland, as exhibited in the Reports of the Central Board to Parliament.

Years. transmitting Annual Amount circulated. No. of Borrowers.

No. of Societies

Accts. to the Board.