JB_003_407.xml

Title: [27? July 1801 Eden Interest]

Description: 27? July 1801

Eden

Interest Notes

4

44

money lent to Bankers at much less than a real 3 per Cent or £2: 19s. per Cent,

and without the convenience of a security susceptible of circulation – of the

security afforded by an instrument promising payment to Bearer is still more in

use. In Suffolk (I have it from Mr Arthur Young) the terms are these. For any

sum under a £100, no interest allowed: if, after £500 deposited, a single

sixpence is drawn out, the interest of one of the hundreds is struck off by that

single sixpence. I rather think too – but am not sure – that, even in this case,

certain conditions are added – convenient to the Banker inconvenient to the

depositing Customer, and rendering the rate of interest less than what it seems:

such as that of interests not commencing till after a certain time; or

obligation of giving a certain length of notice before principal is drawn out.

The case of the Bankers, as referred to in that part of my plan, was referred to

only as an example: - an example of the demand already existing for this rate of

interest, among the customers for temporary interest alone, in the present state

of things, on terms of so much less advantage in comparison with mine. For a

measure of the possible amount of such demand, on the part of that class of

customers, under the proposed state of things, I took a much more extensive

standard.

In the very next page+ commences, under the different heads, a list of masses of

money capable of being employ’d in the purchase of interest as afforded by the

proposed Annuity Notes, supposing the holders to find their account in it: the

example of these Bankers Notes is brought to shew (and does it not shew?) that

people do find their account in purchasing interest-bearing paper, and do

accordingly purchase and hold it, and pass it on from hand to hand, at terms of

much less advantage. The true amplitude of the grounds of expectation with

regard to the proposed paper is the amplitude not of the existing mass of

Bankers’ interest-bearing paper – but of the aggregate of the the[?] masses of

money there encountered.

+ Plan p.43

JB_003_404.xml

Title: [27th. July 1801 II + Eden]

Description: 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?

JB_003_405.xml

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