The Treasury was authorized by the 1 & 2 Wm. IV, c. 33, passed in 1831, to lend money to private individuals for the improvement of their estates, provided the value of the estate was increased 10 per cent. and repayment was made in three years; and by the first Act of the Session of 1846 the period of repayment was extended to twenty years. This power was however very sparingly acted on. Grave objections existed to the State becoming a general creditor throughout the country, and the operations of private capitalists were likely to be deranged and suspended by the interference of such a competitor. A rate of interest (5 per cent.) higher than the market rate for money lent on mortgage, was therefore charged, and the result was, that only three persons took out loans under this arrangement, one of whom was the late Lord Bessborough. At the close of the Session of 1846, the Act 9 & 10 Vic. c. 101, was passed, by which 1,000,000ℓ. was authorized to be lent for drainage in Ireland, and repayment was to be made in equal half-yearly instalments, spread over twenty-two years, including interest at 3½ per cent.; but this Act could not be worked, so far as Ireland was concerned, partly owing to a legal opinion that tenants for life were not eligible for loans under it, and partly because the works must be executed to a certain extent before the money could be advanced. Upon this the Treasury issued a Minute dated the 1st, and a letter dated the 15th December, 1846[60], offering to lend money for the general improvement of estates, including drainage, on a footing which combined the advantages of the previous Acts with the indulgent mode of repayment introduced by the last; and in the following session the Act 10 & 11 Vic. c. 32 was passed, by which all the existing legislation on the subject was consolidated, and loans[61] were authorized to be made in Ireland to the extent of 1,500,000ℓ., on the principle that the improvements on each estate are to be executed by the proprietor, and that the interference of the officers of the Government is to be confined to ascertaining, in the first instance, that the proposed improvements are likely to be of such a permanent and productive character as would justify the cost of them being made a charge upon the estate, with priority over other incumbrances, and, afterwards, to inspecting the works from time to time, so as to secure the proper application of the sums advanced to the purposes for which they were intended. No advance can be made under this Act unless the increased annual value to be given to the land by the proposed improvement shall equal the amount to be charged on it; and a difficulty having arisen from the circumstance that the full benefit to be derived from draining is attained in different soils at different periods after the completion of the drains, it was declared by a Treasury Minute dated the 15th June, 1847, that it is not necessary that each portion of land improved should yield, in the first and in every subsequent year, an additional rent equal to 6½ per cent. per annum on the outlay beyond the present rent; but that the general result of the improvement of the lands on which the rent-charge is to be secured, will, one year with another, from the period when the full benefit of the improvement may be supposed to have accrued, be such as to produce an increased annual value to the above extent; taking care, of course, that the rent-charge is fixed upon lands amply sufficient to secure the repayment to the Government of the sums so charged. These directions had particular reference to the circumstances of the poverty-stricken districts in the West of Ireland, where it is peculiarly desirable to increase the food grown on the spot, and to provide the means of employment for the people in the productive avocations of agriculture; and every practicable facility and preference is therefore given to the landed proprietors in those districts, which is not inconsistent with justice to other parties. It was determined by the same Minute, in pursuance of the course taken by Parliament with respect to the loans for drainage in England and Scotland, that the loans to be made to any one landed proprietor should not, under ordinary circumstances, exceed, in the aggregate, the sum of 12,000ℓ.; but if, in any particular case, owing to the extent of the property to be improved, or other causes, it should be advisable to enlarge this limit, the Lords of the Treasury will be prepared to authorize such additional sum as may appear to be proper, not exceeding, however, an aggregate amount to the same proprietor, of 20,000ℓ.