date

27? July 1801 Eden Interest
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
Similar Items
  • 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 }
  • 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?