29 Oct r 1807

L d Eldon's Bill

'.16

Simple or Compound

(2) ( Simple or Compound)

The demonstration made by the word compound added to the word interest is characteristic and instructive: in shew a mountain, in effect a mouse.

Not an atom of satisfaction where[?] the object unjustly withholden is instead of the artificial thing called a sum of money, a natural thing in any shape whatsoever, moveable or immoveable, and up to any value: where the thing withholden is a sum of money, interest merely, by which, no intimation to the contrary being given, any thing more than the legal 5 per cent would not naturally be understood - interest 5 per cent or less, at the outside power given to the wrongdoer, by a forced loan, while he himself is making, 12 or 15 per cent or any higher rate of profit; to borrow the money of the party injured at that price.

To make amends for an omission thus wide and palpable, what have we? instead of more simple interest, enlargement of the power to the extent of compound.

Now what are the views of the learned Advisor with respect the duration of this part of a Scotch cause? till six months have lapsed the difference between simple interest and compound amounts to nothing /is not worth a farthing/: for the computation of the interest I take for granted will not take place oftener than twice a year, if so often. Should the duration of the cause, i.e. reckoning from that stage from which the interest is to begin to be computed amount to 14 years by that time at compound interest the sum to be paid on the score of interest will have been doubled. But /Note/ that if instead of being thus paid at the end of 14 years this double interest had been paid at the time that the first years payment of simple interest ought to have been, the amount of the satisfaction would still fall short of that ordinary per centage in the way of profit of trade which the injured party if a trader would have made.

/the Tables that one sees not being calculated in the supposition of any more frequently recovering[?] mode of payment.