JB_003_008.xml

Title: [[Rudiments sheet] nd [wm 1794]]

Description: [Rudiments sheet]

nd [wm 1794]

No headings

Particularly advantageous in War

1. Rate of profit per cent on each Note the greater

2. No of Notes issued before arrival at par the greater. No 1 x No 2

3. Addition to the currency the greater

1. Profit by laying up the price of Stock by taking out so much - this is

confined to War

2. then[?] lays no credit for the Surplus Sinking Fund

3. – nor for reduction of interest

{ Advantages

Financial

Period I

From the opening of the first issue to the arrival at 3 per Cents at par. }

{ No 1 Profit by difference between selling price of Notes (100) and buying price

of Stocks

No 5 do by difference between yearly and half-yearly interest?

No 2 do by interest forborne on Notes in the hands of Flying Annuitants

4 /5/ Profit by Notes lost and uncompensated. }

{ The circulation buy[?] established Receivers of public money might be obliged

to change their cash into Notes instanter. 6[?] Exchequer Bills interest

lowered. }

{ Period II

From the arrival of 3 per Cent Stock at par to the extinction of the last portion

of redeemable Stock Annuities by its conversion into Note Annuities.

No 1 ceases

No 2 is stationary; or rather diminishes.

No 3 is stationary; or rather diminishes.

No 4 encreases.

5 Approach of the profits of Period III is accelerated.

5(a) Note India Bonds interest lowered Period III From the conversion of the last

portion of Stock into Notes to the last mass of Paper of the first issue into

Paper of the 2d Issue.

8. Profit by difference between the price of the 1st issue and that of the second

= 1/5 of the whole amount

Nos 3, 2 4 5 6 7 continue but at a different rate. }

Period I

No 1. Profit by difference between selling price of Notes and buying price of

Stock.

No 2. Do by interest forborne, viz:

1. In the hands of Flying Annuitants constantly

2. In do Standing Annuitants accidentally and temporarily.

No 3 Do by Interest of Notes while kept in the hands of Government.

No 4 Do by Notes lost or /Interest on those/ mislaid for a time. and

uncompensated.

No 6. Do (if taken) by difference between Half Yearly and Yearly Interest.

No 5. Do by lowering interest on annual Exchequer Bills - Quere Navy Bills

&tc?

No 7. Do by saving on expence of management

No 8. Do by fractional difference of interest.

No 9. Reduction of 5 & 4 per Cent.

Period III

No 7. Saving of a great part of the expence of Management now paid to the Bank.

Now refuse to issue large Notes, such as it is convenient to Hoard: issue only

small ones, such as will not satisfy to will the demand of Hoarders. }

{ Note at the commencement /close/ of Period III /II/, there being no Stock to

buy up, what Annuities the Sinking Funds bring up must be in Annuity Notes. }

{ Advantages to Individuals

P + 1 1. Dividends at home.

F P + 3 2 Selling without loss

F + 2 3. Interest for […?]

F P + 5 4. Brokerage saved

F P + 4 5. Begging never[?] be done

P + 6. Settlement more commodious[?]

P 7. Compound interest feasible }

Effects – Even[?]

The Office of Notes would be indefinite but only because the creation[?] of them

would be indefinite. It would convert the […?] part of the Annuities i:e: of the

Public debt into circulating money – and thereby though it would not enable

wealth (by the […?] of possible[?] labour) it would debase the […?] […?] by the

[…?] which […?] […?] […?] […?]

1

* It may be almost instantaneous, if the redemption be made without warning, on

payment of principal and with interest up to the day: which may be done without

hardship as the expelled Stock holders will have the Sub[?] Annuities to resort

to at the same price.

The smallest sums may be redeemed first because to them the change will be most

advantageous.

The mode of paying off must be as summary[?] as of buying in.

Ch. Miscell. Effects continued

Period II

1

{The conversion in question being expected to be} /It will depend upon Government

to render the conversion in question/ indiforcibly[?] rapid, this /and thence

this/ period {will be} proportionably short. p. 1

2.

Stocks being got up to par, the addition to the quantum of currency in

circulation will cease. p. 1

3

A diminution will then take place of the addition. p. 2.

3(a)

Of The remaining influx of Note-Annuity Note paper, though equal to the whole

remaining mass of Redeemable Stock Annuities, no part can now go to make any

permanent addition to the quantum of money in actual circulation. p. 2.

4.

During the whole of this period, Stock Annuities will not be susceptible either

of rise or fall. p. 3

5.

- Nor will Note Annuities be susceptible of rise. p. 3.

Ch. Miscell. Effects continued. Period II.

6

But (the cessation of the issue, and the consequent risk being in prospect) the

effect will be that at the close of the period the rapidity of the issue will

encrease. p. 4.

7.

Stock-jobbing will cease – p. 4.

8

The quantum of business and profit of the Stock Broker, may come to be diminished

or encreased as it may happen.

p. 4.

8(a[?])

In the case of Trusts, the only real use of the Broker is to serve as a witness

of the identity of the person. p. 4.

9

Throughout this period, property will be convertible , at a moments ‘warning’,

from the shape of ready money into that of a source of income, and vice versa,

without profit or loss. p. 5.

10

[…?] paper growing scarce, Bank and Bankers will re-appear.

Miscell. Effects continued

Period III.

{ Period II

At the commencement of this period, Notes would take an immediate and rapid rise.

p. 1.

Not a rise: but that price will be kept down by the apprehension of being paid

off or reduced. See No 11. The premium could not possibly rise quite so high as

the amount of the interest for the time yet to run.

2

- partly from real scarcity – partly from speculation p. 1 }

3.

While the demand is on the encrease the supply will be on the decrease. p. 1.

4

Continuation. p. 2

5.

In time of peace, the casual part /branch/ of the Sinking Fund viz. the surplus

of taxes will soon outstrip the certain. p. 2

4(a)

The encrease of opulence contributes to the scarcity in both ways at once. p. 2.

6 or 9

Particular causes of scarcity applying to particular portions of this paper –

viz:

1. Demand from the Hoarders in the way of compound interest. p. 3

7

Hoarders at simple interest, though they want no more paper, will not now part

with what they have. p. 3.

Miscell. Effects continued

Period III.

8. {9}

Flying Annuitants do not so much as hoard what they have got themselves, p. 4.

9. or 8*.

10. Yet will give occasion to hoarding on the part of Government. p. 5

viz: to the amount of the interest on the whole mass of Flying Annuities.

7(a)

A Hoarder at simple interest, to take advantage of the premium, must pass on

paper to the amount of the year’s interest. p. 4.

9(a)

Profit by such hoarding calculated. p. 6.

10

While the prospect of rise continues, there will be a general tendency to avoid

parting with this paper – even on the part of the Flying Annuitants – and

therefore to employ cash only to pay debts. p. 7. }

10(a)

Cases of debt particularized.

Miscell. Effects continued

Period III

{ 11

Government will accordingly pay its Debts with cash rather than paper. p. 7.

12

Formation of a Bank of deposit at this period – a probable event. p. 8

12(a)

This will add nothing to wealth as Bankers paper does – but will save carriage,

counting. p. 9 &c

12(a)

Reference for advantages of paper.

12(b)

Use of paper instead of cash is matter of convenience only not necessity –

Witness the Silver of /in/ France Copper in Russia & Sweden. p. 8.

12(c)

One such Bank sufficient – but in the hands of Government . p. 9.

10

{ The amount of the premium might be added to 8 per Cent interest, stock of the

Usury Laws. p. 10 }

11

{ The extra price put upon a second emission might be higher than the premium. p.

11. }

Though the price would not be much raised, there would be a general disposition

to take more at a higher price, the continuance being assured.

JB_003_003.xml

Title: [[Rudiments sheet] 22 Novr 1799]

Description: [Rudiments sheet]

22 Novr 1799

Annuity Notes

Brouillon III

Extent

1

What will be the case where 3 per Cent Stock is raised at par? People will not

then take Note Annuities at 2 per Cent although the issue of the 3 per Cent Note

Annuities should be stopped. The 2 per Cents will if taken out at par would be

at a proportionable discount. Therefore they would not be taken out. But the 3

per Cent Note Annuities if the issue were stopped would bear a premium

continually rising. At such a time government would be able to pay off these 3

per Cent Note Annuities: and by threatening so to do might force them to yield

them up and accept of a lower rate of interest -

Ought it so to do? }

Extent

War & Peace

2

Better to be adopted now in War, than in Peace because in Peace it will

exaggerate the inconvenience to certain classes in War it will alleviate the

inconveniences of War

Extent 3

There is a point beyond which any addition to the circulating cash or to bullion

the material of circulating cash would cease to be an addition to the mass of

national wealth; because it would take away from other commodities as much value

as it added in the shape of plate Plate would be cheaper, but all other

commodities would be as much dearer as Plate was cheaper.

{ The influx of money produced by the Annuity Note paper will have the same

effect, as if it were in as much cash. } +

Objections

Extent[?] Cash

Borrowing Fund

Succedaneum to the Bank.

It is only in War time that any such need for sudden borrowing can exist.

In addition to the Treasure, power to stop /take out/ the Sinking Fund: i: - to

apply to this purpose the produce of […?] that Sale.

But, for home payments Annuity Note paper will serve - and for foreign payments

there can be no sudden demand to such an amount above the Treasure without

consent of Parliament.

{ Extent

5

It would bring up 3 per Cent to par sooner than would be supposed - and by that

means not only retard the operation of the Buying up plan but change it into a

Paying-off plan - and so reduce the rate of interest. }

3 continued

+ At that point staking[?] a Treasure would be no national loss since the money

if circulated would only raise the price of butter[?] &c without adding

to national wealth. Yes it would - it would augment the mass of national wealth

by the amount of the bullion introduced - there would be so much more bullion -

and though not so much the more of other commodities, yet not so much the less.

Extent - Effects -

6

In 9 Years time Peace alone almost doubled the price of Stocks: in 1783 they were

at 53; in 1792, at 96. As they have been recently up so high as 68, with Peace

alone, were Peace to be made soon, they would presently be up at par: much more

with the help of the proposed plan.

{ Plan Addend.

1

That out of the Stock bought up with the produce of the money received for

Annuity Notes, so much as is equal to the mass of Annuities granted /created/ by

the Annuity Notes be extinguished: and the remainder kept on foot for the

purpose of buying up fresh Annuities according to the Plan at present pursued by

the Commissioners. }

{ Plan Addend.

1

That when the division of Notes have been carried as far as it is thought capable

of being carried without a preponderating inconvenience, Notes be received in

lieu of Taxes, and reissued from the Exchequer in the way of circulation.

2

That then, for the raising of the trouble of working on large payments, multiples

of the original Annuity Note be issued to those who choose to purchase them

either with cash or with smaller Annuity Notes.

3 2 7

That when 3 per Cent Stock Annuities are by this means raised to par or above

par, upon which the buying in plan will cease of course, and the paying off plan

take its place, Stock Annuities be paid off in preference to Note Annuities.

4

That when, by the threat of being paid off the faculty of compelling the

acceptance of a lower rate of interest is acquired by Government, it be exerted

upon the Stock Annuities in preference to the Note Annuities. }

Effects. No Paradox

1

Gain to the Holder of each Annuity

- 3 per Cent during the time of his holding it.

2

Gain to all Holders collectively

3 per Cent per annum on the total amount of Anny. Notes in circulation

3

Gain to the Stockholder on selling out - the amount of the rise of price thus

produced.

4

Gain to government

5

Gain to labourers at present out of employ - Employ

6

Gain to Labourers at present not in full employ

Full employ

Effects. No Paradox

Loss

{ Plan Addend

5

That the progress of the issue be published periodically quarterly, monthly or

weekly Gazette, with permission to publish it in the other papers, as is done in

regard to Bankruptcies.

5(a)

Reason. They can never be refused in the way of circulation when they are known

to be taken out in the way of issue.

6

To what degree of detail should the designation of the respective place in which

the respective amounts have been issued, be carried?

7 […?] D[?]

That it may be made known ab initio, that Note Annuities will not be paid off

till after the Stock Annuities.

8

That it be a fundamental regulation and condition, that Loans shall never be made

in these Note Annuities, but only in Stock Annuities as at present.

9

Fees on issue higher at first than afterwards.

9(a) Reasons. 1. To favour circulation.

2. To afford the better recompence[?] when there is least custom. }

{ Plan continued

9

All above £1 to be on yellow paper, to denote Gold: all below, on white paper.

10

Price of Annuity Notes of the different amounts for each day (by encrease of

interest) to be announced in the Newspapers of the day - and in Almanacs. }

JB_003_018.xml

Title: [[Rudiments sheet] 29 June 1800]

Description: [Rudiments sheet]

29 June 1800

Annuity Note

Ordo

Effects

Trade of 1 […?]

2 Exchange

Conduct or Title

 Separate this part from the rest, under the titled of

National Prospects. in the Field of Polit. Economy - Picture or History of Futurity.

Add?

In Appendix or Notes

Practical Inferences

Ex. gr.

1. No encouragement.

2. Pacific Resolutions

3. International […?]

Prefix?

Manual of Political Economy

I Modes of encrease

II. Tendency of encrease setting aside Wars & Taxes

II. Tendency under Wars and Taxes without Funding Systems

III. Tendency under Funding System, without Redemption System

IV. Tendency under Redemption System

V. Obstacles to Encrease War &c with its Losses Destruction Capture, & Taxation

V. Helps to Encrease real or Supposed.

1. Encouragements to particular branches of production.

2. Colonies - taxable and untaxable.

1

State of things in respect of encrease of wealth and population, independently of the encrease

2

i:e:

Stock and productive capital in all its branches has a a natural tendency to encrease - and is all along upon the encrease

3

Effects of this encrease upon

1. The absolute quantum of national wealth

2. The relative d o? Quere

3. The profits of Stock

4. The rate of interest

5. The income of moneyd persons not in trade

4

The tendency of a Sinking Fund is to encrease the accumulation of Stock

5

- and thence to encrease the amount of the several effects abovementioned

6

Every penny of capital redeemed by Government, why this in the way of buying in or paying is so much added to the amount of productive capital.

7

Actual distinction apart - supposing that the debt of a War to /will/ be paid off; the effect of the War, upon the whole as confined to mere[?] expenditure to and taking together the expenditure of the war which is the cause of the borrowing, and the saving accumulation by reason of the war which is the effect of the paying-off, as the making the quantity of productive capital /[…?]/ accumulated - and thence the quantum of National Wealth greater than if there had been no war

8

- And even in a territory circumstanced as that of Great Britain (not having been the seat of War) after allowance made for the distinction.

9

The amount of the Year’s destruction and loss by capture may be shewn by

1. The quantum of foreign trade

2. The rate of insurance

3. The rate of profit on insurance, which must be deducted from […?]

4. Deduct[?] from[?] the above the captures from the enemy.

10

On the return of peace, the effects of the redemption in the encrease of productive capital will be very rapid and sensible.

11

- So are they likewise, even during the war, by reason of the abatement in the quantity borrowed.

12

Addition to the quantum of wealth adds to the amount of population

13

- which addition[?] is pro tanto a defalcation from the amount /degree/ of relative wealth /opulence/.

14

But notwithstanding this the addition to the mass of absolute wealth is accompanied by an addition to the mass /degree/ of relative wealth /opulence/, because the addition to the wealth goes on at a faster rate than that to the population.

15

The proposed measure by adding so much to the currency, will add so much to the amount of productive capital - and thence of national wealth

16

Efficient /Proximate/ courses by which, or Mode in which an addition is made to the mass of general wealth.

Classes prejudicial

1. Stock Annuitants unwilling to sell out or to be paid off.

2. D o

unable by reason of Settlement &c.

3. Unincreasable Incomists of all descriptions; including persons having no interest[?]. (a)

4. Bankers Country Quere.

5. Bank of England.

6 + Stock-Brokers (after Conversion) i:e after Period II.

7. Particular Classes incapable of raising the price of their labour or goods in proportion to the general rise.

8. Creditors in general for money payable at distant periods.

9. Borrowers of Country Bankers.

10. Borrowers of Bank of England - Quere?

+ No Brokerage for the Circulating part of the closed issue

(a) It would be scarce possible for all unincreasable incomists to save themselves by frugality from the depretiation: because every penny thus raised would augment the depretiation. A hoarder could not reap the benefit of his hoard, without non-hoarders.

Classes benefited.

1. Stock Annuitants desirous of selling out.

2. Landholders desirous of selling or Mortgaging to improve the rest of their Estates, or go into other businesses.

3. Landholders obliged to sell, to pay fortune of younger Brother &c, or debts incurred through extravagance.

4. Landholders charged with Annuities: if not burthened with long Leases.

5. Debtors in general, in respect of money payable at distant periods.

6. Labouring classes in general in case of a general rise of the wages of labour, the result of the encrease of productive Stock, & of competition among Employers. - viz: supposing in the instance of Labourers in Husbandry, the obstacles to the proportionable-rate in their instance to be surmounted.

Public benefited in respect of.

1. Encrease of National wealth (absolute) and thence of security against hostilities.

2. Encrease of national population and thence d o

3. Reduction of Gov. /Public/ debt annually payable by Government to Annuitants out of the produce of Taxes: thence augmentation of the amount capable of being levied by taxes for current sources[?], or interest of fresh Loans - thence further encrease of national Security as against hostility.

4. N.B. Security is more encreased by accession to relative wealth than by d o to absolute wealth.

Quantities encreased

1. Stock or productive capital in goods.

2. D o in cash &c. metallic money.

3. D o in Paper money

4. Quantity of Labour yielded by already employd hands.

5. D o by till-now unemployd hands.

6. D o by nondum - or non-amplius employ’d hands.

7. Absolute mass /amount/ of National Wealth.

8. Mass of Population

9. Relative amount of National Wealth.

Quantities diminished

1. Government Annuities purchasable.

2. D o unpurchasable in which[?] Annuities bought in have been extinguished

3. Money levied in Taxes - as taxes are abolished.

4. Rate of Refuse[?] on Stock.

5. Rate of interest of money lend out

1. In purchase of land

2. In Canal & other Joint-Stock Way[?]-improving Companies

3. In Trading Companies

4. Lent on Mortgage

5. D o to persons in trade by discount of Rates &c

6. D o to d o in Bond

7. D o to d o in Simple Contract.

Annuity Not […?] in […?]

36000

12.6

72000

6.3

Heading of […?]