JB/002/188/001

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10.5 Profit in respect of by reduction of interest on Exchequer Bills. This
source of profit will be continued from the former probably have begun to manifest itself
period, and with : for the quantity of amount of in the course of the former period; not till now that
it can be considered as having certain
the existing Exchequer Bills in circulation being may be supposed
the same in both periods, and during the whole the moment can be easily submitted to calculation.—
During the whole of Of this second period, it will the rate of interest
will be that reduced rate towards which it will
have been moving in during the first period.

The rate of interest on these temporary loans
is at present has been for some years past 3d½, a day, making by the year
£5.6'.5d½ per Cent: this at a time when bearing <add>at present a premium of about 6':</add>
from 1' to 6', at a time when 3 per Cent perpetual Annuities are about 64 or 65.

During the whole of this second period, the
i.e., while such 3 per Cents being at 100 and £2:19." per Cent Note Annuities at the same price, the rate of interest on Exchequer Bills may be
expected to be no higher than 2d a day, making
£3:0:10 d a year; or at the highest furthest2d day making £3.7'.7d ½ a year. 2d½ a
day making £3.18'.2d½ a year. For in 1730 (by Stat. 3. G 2. a. 16)they the interest on them was not to exceed "3 per Cent:— in 1730 by 1724, it
Stat of G 2 was but 2d a day: and 3 per Cent proportional
Annuities could scarcely have scarcely have been much
above par below <add>above par </add> : at that time, (so as to yield a less interest), if they were at rather
below it: for above below it: for in 1731, the highest lowest price was 97, 95,
and the lowest but 95 highest, 97.|| || Sinclairs II Appendix Table of prices of Stocks. 97 # #. Under these circumstances
it seems the % difference between the superior rate of interest made
in Exchequer Bills and the inferior rate afforded by Stock Annuities,
and commission (which difference constitutes all
the profit to be made by dealing in taking Exchequer Bills in
preference) must have been very inconsiderable and
it appears that the reduction of the rate of interest
on Stock Annuities must was followed by a reduction of the
rate of interest on Exchequer Bills to an amount a level verylittle above that from of Stocks if any thing above that of Stock.(a) (a) note in p. 91

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Identifier: | JB/002/188/001 "JB/" can not be assigned to a declared number type with value 2.
Date_1	1800-08-23	Marginal Summary Numbering	6
Box	002	Main Headings	annuity notes
Folio number	188	Info in main headings field
Image	001	Titles
Category	text sheet	Number of Pages	1
Recto/Verso	recto	Page Numbering	d6 / f90
Penner	jeremy bentham	Watermarks	tw 1794
Marginals	jeremy bentham	Paper Producer	francis hall
Corrections	jeremy bentham	Paper Produced in Year	1794
Notes public		ID Number	927
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