date

27th. July 1801 II + Eden
27th. July 1801

II +

Eden

Interest Note

1

{3}41

20. p.3

Observations continued.

II. “As to the new currency – The grounds of expectation (p.42) appear to be very

narrow. The circulation of Banker’s paper, bearing interest, is mentioned as the

principal one” (No such thing.) “Country Bankers indeed allow interest on

deposits at their Banks; and some few may issue notes bearing interest. But in

what part of England do such notes circulate to any considerable extent?”

Counter-Observations.

I know not, and I do not care – this question may be best answered by a string of

other questions. – 1 In what part of England lives there a Banker whose security

/is/ all over England is looked upon as being as good as /upon a par with/ that

of Government? 2 In how many parts of England are there Bankers, that give,

secured in the shape of interest-bearing notes, an interest which amounts in

reality to so much as 3 per Cent? 3. In how many instances do these

interest-bearing notes afford, like Exchequer Bills, even sums, or aliquot parts

of even sums, for daily interest? 4. In how many instances are they adapted, by

diversity of magnitude, to every diversity in the amount of the capacity for

taking them on the part of individuals borrowing them or taking them in

payment?
Similar Items
  • Title: [27th. July 1801 II + Eden]
    Description: 27th. July 1801

    II +

    Eden

    Interest Note

    2

    {3}42

    5. In what interest is the glance of inspection substituted to the toil of

    calculation? What Banker is there that could or would undertake that the

    continuance of the interest thus allowed should be coeval with that of the

    national debt? – 7. and – what is more – how many Bankers are there that can

    find their account on borrowing their money in driblets in this way, when they

    can get it in larger sums, or in sums of equal size secured by engagements not

    transferable to Bearer; - taking their profit by passing for value[?] notes that

    cost them nothing – that rise in even sums of convenient size – that – in regard

    to interest require neither calculation nor so much as inspection – that subject

    them, in a word, to no interest, and the amount of which is neither limited by

    the amount of the sums deposited with them on condition of paying interest – nor

    in short by any thing else, but their own prudence, and the facility of those

    who take this paper off their hands? – Where has the learned Baronet found – by

    what logic will he prove – that the circulation of Banker’s paper bearing

    interest is mentioned in my plan as the “principal” ground of expectation I rely

    on in respect of the circulation of the proposed Government Annuity Notes? – in

    this sense, at least, (which is the only apposite one) viz: that the amount of

    that private paper at present circulated constitutes the principal part of the

    amount of that mass of Annuity Note

    paper
  • Title: [27th July 1801 Eden Interest]
    Description: 27th July 1801

    Eden

    Interest Notes

    3

    43[?]

    paper which I should expect to see in circulation? So many points of distinction

    as you have seen – (and I know not that they are all that might be seen) are

    they not all together enough to constitute a difference? Is there any one of

    them that does not constitute an advantage? Some of these advantages – the

    principal ones – those which respect security – duration – rate of interest

    facility of calculation are in the very page and sentence he referrs to,+

    staring him in the face: but he fancies he annihilates them, when he shuts his

    eyes.

    In mentioning the rate of interest allowed by some of the Country Bankers, on

    interest-bearing notes issued by them, I mentioned it for the principal if not

    sole purpose, of shewing that an interest so much inferior – not only to the 5

    per Cent more or less, afforded by the existing Government securities, but even

    to the almost 3 per Cent proposed to be allowed by Government on the proposed

    new Securities – actually met with individuals to accept it. I might have gone

    further: for, to judge by what I have since heard, the example of

    many

    + p.42.
  • Title: [[Copyist’s hand] nd [wm CM 1799]]
    Description: [Copyist’s hand]

    nd [wm CM 1799]

    Annuity Notes

    Eden contin

    [marginal heading:] §.12. p.53. 79

    Complication

    subsidies and imposts, would be puzzled if he were to attempt to give change, for a £100 Bank Note, from a mass of Annuity Notes (part bearing nearly 3 per cent and part 23/8 per cent interest p.33) consisting of Standard Notes, Halves, and Quarters with a few odd years, months, and days, interest due on each, even with the assistance of small change: i:e: notes of 5d/34 bearing an interest of 1/512 part of a farthing per diem. }

    [marginal heading:] §.13. p.62. 91

    No Silver Paper

    { Paper money, never can answer as a substitute for copper money, till copper is as valuable as gold. }

    [marginal heading:] §.14. p.63. 92

    No Silver Paper

    { The wear and tear would ruin the paper money mint. A months circulation, among market women, turnpike-keepers, and publicans, would obliterate every clause of these portable contracts, every receipt for interest every table of computation. }

    [marginal heading:] §.15 p.65. 95

    Circulating medium

    (Note) Alarm Contents

    { Of £400,000,000 of Annuity Notes

    Supposing them all as good as Bankers Notes

    how much would be wanted as a circulating medium? }

    Would the remainder be any thing more than a mere security for an Annuity?

    Its imperfections, in this office, I have already noticed.

    [marginal heading:] §.16. p.74. 104

    Bank & Bankers

    { If hoarders should prefer Annuity Notes to Bankers paper & Bankers bills, will not the 4 or 500 Bankers in G. Britain be injured and intitled to compensation?

    If circulators should prefer Annuity Notes to B of England Paper will not that public body be a sufferer? }

    { Till, however, the stocks are near par, there seems little probability

    that }