JB_001_009_001.xml

Title: [28 Sept 1800 3 o 136 Abstract]

Description: 28 Sept 1800 3 o 136

Abstract

Note (7) to p. 130.

Ch.

War Loan

, (7)

Example function

of the Profit on

Sale

(7.) The difference between this £26,000 000 (the amount

of Stock or Old Annuities taken into the hands

of Government, and the £15,000,000 (the amount

of Annuity Notes or New Annuities created for the

raising of the £15,000,000 wherewith the £26,000,000

is thus taken in) may serve to exemplify the profit intitled Profit on Sale: the first

in the abovementioned list of Financial advantages stated as resulting

from the increase See Ch. 5.

(7

Profit on Sale

taken by the

Land Tax Sale

( ) The interest on the above £16,046,727, affording the amount

to amount being of Stock made over to Government by the purchasers of of £481,425; that is to say more, by £43,766,

thence the amount of the Land Tax by the Sale of which

this quantity of Stock was obtained. This £43,766 a year constitutes the

direct profit taken in the transaction. by Government over and above the indirect profit which was the principal object of the measure; and corresponds to the profit

intitled Profit on Sale in the case of the Note Annuities.

That was 10 per Cent: profit, on the same score, by Annuity

Note paper sold could have been about 57 per Cent.

Note (9) to p. 130

(9) Deduct less, by rise of price, to the Sunbury

Fund money employd in buying back, as before, to the same amount of 2 per Cent £ 90,000

Remains neat profit - - - - - £320,000

Note ( 8) to p. 131.

(8) Deduct less, by rise of price, to the Sinking Fund

as before at 2 per Cent - - - - } £45,000

Remains neat profit - - - - - - £160,000

JB_003_020.xml

Title: [[Rudiments sheet] 7 July 1800]

Description: [Rudiments sheet]

7 July 1800

Annuity Notes

Ch. < > Advantages

Financial

Contents IV

 N o IV should have come before this.

Ch. Advantage

Financial V Future Wars

{ 1

The rise given by the measure to the price of Government Annuities in exchange for money is not superseded by, but stopped upon, that given by the Income Tax. p. 1 }

{ 2

Inference to the proof given in Ch. (Effects) of that part of the efficacy of the measure which consists in the preserving the rate of interest from being raised by future loans. p. 2. }

{ 3

Conclusion - that future wars will be carried on on cheaper terms than the present. p. 3.

4

Illustration, on the supposition of a fresh war, a year after the peace, p. 4. Elevative force (in regard to the price of Stocks) - = 84

Depression - = 24 }

Ch. Adv. Financ.

V. Future Wars

{ 5

Not likely that the sale should be sunk by any eventual number of years of war. p. 5

5 (a)

Miseries of war not the point in question here. p. 5

6

Allowance to be made for the depretiation of money on the assumed terms of future loans. p. 5.

7

Objection - Rival powers will encrease their national wealth & War-Efforts at the same time. - Answer - but to equal amounts. }

{ Ch. Advant. Financal

Present - War Loans.

1

Ann[?] profit or saving will result from time[?] proportioned to the defalcation from the quantity of Government Annuities kept from loading the market. p. 1

2

Calculations or Assumptions necessary to an Estimate of this profit.

1. Time by which Stocks will be at par in consequence of this measure p. 2.

3

Thence also, as a preliminary the Time at which Stock would be at par without the benefit of the measure. p 2

4

Difficulty of forming any such calculations. p. 2

5

Operation substituted to it - enumeration of the several influencing causes that appear to affect the price - viz: p. 3

6

I Causes of elevation varieties in their mode of action. p. 3. }

Ch. < > Advant. Financ.

Present War-Loans

7.

Causes of elevation

I. Diminishing Annuities.

1. First Sinking Fund

2. War d o

3. Land Tax Sale

4 Income Tax

5. Contingent Surplus Fund

6 Negative cause - the reduction in the amount of money annually to be raised, viz: by the Income Tax

II. Encreasing Money

1. Surplus of National Industry above expenditure

2. £2 & £1 Bank Notes. p. 4

{ 8

Assumed price of Stocks at the time of contracting for the Loan of 1801 - 65. p. 5.

9

Other Assumptions relative to the circumstances of the Loan of 1801

1. Office opened 1 Jan. y

2. Contract or Loan Day 26 Mar.

3. Loan £20,500,000

4. Stock price. sans[?] Issue. 65

5. Year’s issue to 1 Jan 1802 £10, +000,000

6. Stock price 26 Mar. from expectation of issue 60 /70/

7. Stock-price 1 Jan y or 26 Mar

1802 --------- 85

8 + Petty Hoarders 2,500,000

9. 2 Flying 7,500,000

10.

Result p. 6, 7.

1 Median Stock price for 1801 .... 75.

2. Stock bought in £13,333,333

3. Whereof taken out of the Market £10,000,000

4. d o Neat profit £3,333,333

5. Profit by 5 per Cent upon 20 ½ Millions being difference between 65 & 78 - £1,025,000 }

{ Ch. < > Advant Financ.

Present War Loans.

11

A o 1802

D. Assumptions. p. 7

1. Contract or Loan day 26 Mar

2. Loan £20,500,000

3. Stock price, sans[?] Issue ...... 65

4. Year’s issue to 1 Jan. y 1803. £10,000,000

5. Whereof Petty 2,500,000

6. - Flying 7,500,000

7. Stock Rise from 1 Jan y 1802 to 26 Mar. viz from 85 5

8. Loan Price 26 March. 90

9. Price 1 Jan y. 1803 - 100

II. Result. p. 7.

1 Profit by Rise in Difference on £20,500,000 between 65 & 90 being 25 per Cent £5,012,500

2. Between price of the Year 85 & 100 ...................... 52½

3. Stock bought in with £10,000,000 at 92½ 10,750,000

4. Profit by d o 750,000.

12

Assumptions A o 1803

1. Loan day 26 Mar

2. Loan price 200

3. D o sans issue 65

Results. p. 8

1. Profit on Loan price on 20,500,000 at 35 per Cent £7,175,000

D o on Stock bought in ............. 0 }

{ Ch. < > Advant. Financ.

Present War Loans -

13

Recapitulation -

Profit on Loans for and up to the five next apart of Years of War. p. 8

Profit

OF each year UP TO each Year

1801 1,025,000 1,025,000

1802 5,012,500 6,037,500

1803 7,175,000 14,212,500

1804 7,175,000 21,387,500

1805 7,175,000 28,562,500

13 (a)

These masses of profit are not in money but in Stock: but after the Loan of 1802 that makes no difference

14

Results assumed for illustration of the profit by sale of Note Annuities on the above supposition - p. 9.

1 […?] head this - Is it not deplaced or already employd? }

{ Ch. < > Advant. Financial

Present-War Loans

15

Profit by saving on the interest of Exchequer Bills issued during the War p. 10 +

+ The Reduction have […?] further than others.

16

The rise in the price of Government Annuities will not diminish /take any thing from the quantity of/ the money that would otherwise be invested in the purchase of them. p. 11

17

For, capital can not be turned into any of the other channels of employment so promptly as into this. p. 11

It can neither be made productive so soon - nor so much as applied so soon.

18

Will the rise of price so much as take any thing from the amount of Annuities purchased? p. 12, 13.

JB_003_009.xml

Title: [[Rudiments sheet] 9 Jan. 1800]

Description: [Rudiments sheet]

9 Jan. 1800

Annuity Note

Nation Debt

View

From Rise & Finance Committee

Money Borrowed to 1799 inclusive

Capital created

Before Since } the War

122, 154, 225

+ 238, 231, 248

|| 178, 177, 059

416, 408, 309

59, 413, 118

356, 995, 189

Whereof Ao 1799 4,500,000

This divided by 7 the number of years makes 17,450,003 borrowed upon an average

in each year.

+ Fin Com. I A 1

|| Whereof Ao 1799 8, 249, 250.

Stock added by Loan of 21 Feb. 1800

Consists 110 22, 550, 000

Reduced 47, 9 635, 000

To 1797 inclusive 112, 154, 225

1798 17, 000, 000

129, 154, 225

1799 15, 500, 000

144 654, 000

20 500, 000

1800 165 154, 600

Loan of 1800 by J.B.s calculation from below

£32,185 000.

448, 593, 307

59,413,118

389,180,189

Times 22 Mar.1800

Per Tierney

No of persons employd by the Bank

1- 1796 300

1800 6 or 700

viz: since the issuing the £2 & £1 Notes

Profit’s Annuitant

In War £900,000

Peace on Average 671,000

Average expenses

Bank 100,000

Excise 405,000

No of persons employd by Excise 5000

Exchequer Bills

By 9 G.I[?]. c 5. §.4

Heads only printed

Exch. Bills to bear 2d interest

- to be numbered arithmetically

- Uncancelled Bills to pass as current money to & from Collector

&c

- Bills reissuable out of the Exchequer

- New Bills to be made forth in the name of Bills filled up or defaced

Bills not exceeding £5000 may be made forth.

Per Pitt

Profit (annual) of the Bank on the Management of the Public Debt £4,000,000

Simple[?] only £200,000 per County Account.

Per Tierney

In 1797 according to the evidence of M H Thornton it was in contemplation in the

City to create a new circulating medium.

Exchequer Bills

13 G.1. c.3. §.3.

Bills to be paid off without any undue preference in ... numerical order ...

beginning with No 1.

Commee of Finance

1 Rep.[?] Append H

Usual amount of Exchequer Bills kept afloat - £5,500,000

ib. App. E 1.

[…?] Exchequer Bills

1793 Jany. 5. 2,765,000

Busied for War in year ending that day

£6,713,000

Total 9,478,000

Same Words in both Bills[?]

Redemption

Ao 1731 4 G.2. c76

Ao 1736 9. G.2. c34 §.3.

A Million of Silver Stock paid off. The Company to divide the Redemption money in

equal proportions among the Stockholder Ibid. §.4. Trustees for paid off

Annuitants what to do with the money.

Pelham’s Operation

By 23 G.2. c.1.

Amount of 4 per Cents so reduced

£59,703,475.8s.4d¼

First time for subscribing before 8 Feb. 1749

Second do

before 30th May 1750.

The 3½ was secured to the first set of Subscribers till 25 Dec 1751.

To the 2d, no longer than to 25 Decr 1755.

Notice given by Pelham’s speech in the Session that began in Novr 1748. Sinclair

II, III.

Sinking Fund

1,823,202

Sinking Fund Established Act

26 G.3. c.31

Do Amended

32 G.3. c.55.

1/100th of new Loan to be annually applied

Produce of Income Tax Ao 1799 £6,200,000

Taken from Budget of 24 Feb 1800 7,000,000

Land Tax 38 G.3 c.60

§.9. Purchase money so much 3 per Cent Consols or Reduced as will purchase the

amount + 1/10th of do. Result Rose p. 77. Redeemed as taken[?] or contracted for

between 1 May 1799 and 4 Decr do

Capital 16,046,727

Annuities 481, 425

Whereof to be extinguished 43,766

Amount of Lending Sold and Annuits kept alive 437, 659.

Irish Debt.

Times 19 Feb. 1800

Irish Debt stated by the Irish Ld Chancellor at £25,000,000. In those years, at

the present rate of encrease, it would rise to £50,000,000.

Income Tax

Times 16 May 1800

“The sum already produced by the Income Tax, is £5,601,624:19s:4d½

Quere from what day to what day?

Interest and Managemt

£6,158,478

Common Finance 2d[?] Repp[?] p. 8. Ao 1797

Receiver General pays his Ballances weekly into the Exchequer – Transmitted to

him by Bills at 30 days

Add days of Grace

a Bill[?] 3

To Receiver? 3

Total delay 36

Loyalty Loan

Amount of the addition to be made to the imported of the capital if the option

given be embraced

5,062,500

Original 5 per Ct 20,250 000

Together £25,312,500

Total Annual Charge

+ £9,325,866

£8,264,896

17,590,762

1798

Produce of Assessed Taxes an Voluntary Contributions together somewhat more than

£6,000,000

Rose p. 30 Edit. 6th

1799

Income Tax 1st Year

Taken for only £7,500,000

“Fear” it will fall as below that Sum ib. 32.

21 June 1798

Date of 1st Land Tax Redemption Act G.3. c.60

Lowest price of 3 per Cent Consols in 1798

Jan.y 1798 47¼

April 1798 48

Pric[?] of 3 per Cent Consol.

9 April 1800 64½ For May 647/8

‡ £63.14:0½

Times 25 Feby 1800 reporting Pitt’s Speech of 24th Feb.1800

Times 22 Feb. 1800

Terms of Loan of 21 Feb. 1800

Consols 110 at 62 68.4

Reduced 47/157 at ‡ 63 29: 12

Discount about 1: 16

£100: 12

Contractors

1. Roberts & Co

2. Sir F. Baring

3. Giles -

Loan contracted for

Year Amount

1800

as per Statute {18,500,000} 20,500,000

21 Feby1800 Rate of interest 4: 14: 2d ¼

Times 22 Feb. 1800.

Rate of Interest of Loans contracted for during the War –

£ £ s d

1793 - 4,500,000 - 4 .. 3 .. 4

1794 - 21,000,000 - 4 .. 10 .. 9

1795 - 18,000,000 - 4 .. 15 .. 8

1796 - 18,000,000 - 4 .. 14 .. 8

1796 - 7,500,000 - 4 .. 12 .. 2

1797 - 18,000,000 - 5 .. 14 .. 1

1797 - 14,500,000 - 6 .. 6 .. 10

1798 - 17,000,000 - 6 .. 4 .. 9

1799 - 3,000,000 - 5 .. 12 .. 5

1799 - 15,500,000 - 5 .. 5 .. 0

Average £5..s3..d11½

Total Capital Redeemed to 1799

To 1 Feb.y £37,381,771

more

To 1 Dec. £5,984,620 +

£43,366,391

Land Tax 16,046,727

59,413,118

+ Say for round numbers £6,000,000

This for 10 months of the 12.

This gives, for one Month, £0,600,000

x 12 7,200,000

Interest of this at 3 per Cent (though near £500,000 carried 4)

£ £0,216,000

But it was nearer 5 per Cent. It would be exactly 5 per Cent if the purchase had

been made at £60, whereas the average is probably 64 or 65

At 5 per Cent £360,000

Sinkg Fund for Year 1800 7,560,000

Capital redeemed by Sale of Land Tax

In course of 1799

To 4. Decr. £16,046,727

Interest on do 481,425

Rose’s 6th Ed. p. 77, 78

Times 10 Oct. 1800

Purchases to 10 Oct. 1800 More contracted for 15,587,824

1,952,379

£17,540,203

Sinking Fund Annual of 1786

£1,985,000

Voted Annually £200,000

2,185,000

1792

£2,109,043

£4,294,043.

5 per Cent

Redeemable at par, when the Commiss.r shall have purchased £25,000,000 of Stock

in 3 or 4 per Cent, Created by Acts 23, 24, 34, 35, 36, 37 G.3.

Consolidated by Acts 27, 34, 35, 36, 37 G.3.

£28,114,922

Do per Rep. 24 to 25 Apr. 1798

£28,125,582:17s 7d

4 per Cent to 1797 Inclusive per Rep. I

£42,369,293

do per Rep. 24th to 5 Apr. 1798

£45,269,859: 17s. 2d

£ per Cent Ann.1797.

Redeemable at par, at the Expiration of 3 Years, after the £5 per Cent Consols

shall have been discharged. But at 2 Years from the end of the present War, and

Ratification of the Definitive Treaty of Peace thereupon (at any time within 6

Months) the Proprietors are intitled to have their Annuities with all Dividends

due thereon, paid off in Money – or converted into £3 per Cent Consolidated

Annuities at the rate of ££133:6s 8d for every £100 contributed

£20,250,000

The loan bore a premium of 2½ per cent immediately and fluctuated between that

and 3½.

Redemption – Notice

Length of 3 per Cent Consols

One Year by the original Act 25 G.3[?]. c.27; and subsequent Acts..

Ex. gr. 39 & 40 G.3. c.22

Six Months by the Navy Bill &c Funding Act 3.G.3. c.9.

Charges of Management

Total British 212,227

Add Emperors Loan 1800 at 3,386

£450 per Mill. on 32 000 000 14,400

£230,013

Deduct Life A for years 20,764

209,249

Irish Loan

Raised £6,500,000

Capital in Stock 12,175,000

Imperial Stock crusd[?]

besides £230000. for Years 7,502,603

19,677,603

Raised for Imperial Ao 1795 35 G. 3 4,600 000

- 1797 37. G. 3 1,620,000

New Taxes

1. £5 per Cent and all Pins[?] sold at 2s.6d per lb, and upwards at the Company’s

Sales £130,000

2. 1d per Gallon on Corn Wash (equal

to 5d on the Spirit 100,000

3. 10d do on Brandy

8d do on Rum 120,000

£350,000

Budget 25 Feb. 1800 –

Ways and Means

1. Sugar, Tobacco & Malt 2,750,000

2. Exports and Imports £250,000

3. Lottery 200,000

4. 10 per Cent on Income 7,000,000

Deduct Interest on

£8,000,000 }

11,000,000 } 1,700,000

13,500,000 } 5,300,000

£32,500,000

Bank Charter 3,000,000

Loan+ 18,500,000

Vote of Credit 3,000,000

£39,500,000

+ By the Act 39 & 40 Ge 3. c.22. – it proved to be £20,500,000

Supply for Expenditure –

Navy 13,619 079

Army 11,350,079

Ordnance 1,695,956

Miscellan. Serv. 750,000

Interest due to Bank 816,650

Deficiency of Ways and Means 1799 447,039

Do Of Land & Mult.[?] 350,000

To pay off Excheq. Bills raised by 39. G.3. c. 2,506,250

Do on Aids to Contributions 1,679,730

Do Supply of 1800 1,914,000

Reduction of Debt 200,000

Subsidies 3,000,000

Unforeseen Services 1,771,215

Total Supply 39,500,000