[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.