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5 Notes 59
Annuity Notes
Plan
II. Individual Extension
The paper bearing
a premium upon
the closing of the
issue is a necessary
Art. 19 21
result
Reference in
words
Art. 19 21 p.7. [ 1] [ ... Come to bear a premium]
A necessary result of encreasing opulence, the inescapable
accompaniment of a state of security and peace
So fa For the probability of such a result, see farther
§§. The supply is shut up, while
The demand is encreasing every day. See farther §§
Interest what rate
best to be allowed
on a second issue
The principal
required is a
farthing a day
may be raised
from the £12:16
to £16. This
would give even
sums —
and be about
£2.8. per Cent
Art. 19 21 p.7 [2 3] [Reduced rate of interest] The
next rate next below 3 per Cent, in number of
according to the customary rate of gradation, is
2 1/2: this is just the half of 5 per cent, the highest
legal rate (5 per Cent) and is the rate allowed by
some of the Country Banks, to those who deposit money
with them for a time. But no rate very near
to that would afford a series of notes in sums even
enough for currency. The nearest Stock capable of fulfilling
that condition to advantage wants a trifle
of being equal to 2 2/3 2 2/5 per Cent. Taking this for
the rate of reduction, for the Interest, the it follows that as the quantum of
interest allowed
must for the sake of simplicity of computation, as above observed, as
remaining <add> unaltered the principal or price of
the standard note would require to be raised; and thus from
£12:16s to £16: The series afforded by this
price would be commodious enough £8: — £4: — £2: — £1: —
10s: — 5s —: 2s:6d — 1s:3d — 7 1/2d. — The requisite
Meantime the degree of refund necessary to
be paid to the evenness of the sums with a view to
public convenience will not be a matter of conjecture,
since the opportunity facility of making
a fresh issue to advantage depends upon a rise
in the price of the original issue, and whatever rise
may have taken place, universal consent regulated
by universal convenience will have fixed that rise
amount and proportions of that rise.|