JB/002/153/001

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That it the proposed paper it should continue to cir culate without any
depreciation is not essential to the existence of paper
currency. Witness the ease of Exchequer Bills and other Government
paper; but though the property of circulating without
depreciation may not be essential to the circulation of this annuity
note paper it will at any rate be highly conducive to it.

Depreciation proof it must be confessed it cannot be
any further that the Government of whose premium it is the
vehicle is destructive proof; by any cause therefore that
threatens immediate danger to the Government such as
invasion for example a Civil War its value will be liable
to be diminished. — Their cases can never be urged as an
objection against specially applicable to the proposed measure.

The measure would not impair th but rather
add to the solvency of the Government by adding to it the profit
it would afford additional means would be afforded for the
reduction of the debt of Government.

To the Security of Government it would add by
the multitude of hands it would engage by the fix of interest
in the support of Government, to create and maintain an
interest of this kind sort. is a most happy property amount to to all
Government Securities. It has Of But all the Government securities yet
known in this country are confined in their circulation to the Superior and
least numerous classes. It is among the characteristic properties of the
proposed new Government Security to spread itself among the poorer
and most numerous classes and thus to engage them to give their
support to Government

.Against depreciation from their source, the proposed
paper is not only as secure as the existing Government papers had
more so. Those other papers engage to pay the principal and interest the proposed
paper, the interest only. In the end case the fund drawn upon is
the revenue of a single year or some small number of years: in the other
case the fund drawn upon is the revenue of 3.5 successive years.
DeAns