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11
Case of Exchequer Bills
All these circumstances operating together [+],
[+] magnitude of the sum
variability of the market
price, uncertainty of
the time of payment
magnitude of the paper
embarrassment attending
the calculation of the
interest the
consequence is that Exchequer Bills are not considered
as forming entering a part of the general currency of the
Kingdom: the demand for them is confined to the customers
of for Stock: they stand as it were upon a par footing with
Stock — instead of being an object of manual transfer like
cash and Bank paper, they are an object of negotiation,
purchase, sale and Brokerage.
What the ex
In a general point of view, the market price
of this species of paper is evidently regulated by that of Stock:
but what the exact ratio of the price of this paper is to
that of Stock Annuities considered under their several
distinctions of 3 per Cents 4 per cents and 5 per
Cents — and to what circumstances it is owing that
that ratio is neither less nor greater than it is found
to be are questions the description of which how curious soever in themselves itself
is not necessary to the present purpose. The customers market
for this paper and for the proposed paper being
so perfectly distinct the quantity of money capable which while
of being involved in Annuity note paper, is essentially
incapable of finding its way into the Exchequer Bill
market upon any terms, is so great — so much
greater than that which is capable of being employd
in the purchase of Exchequer Bills — that it seems
evident enough no conclusion can be drawn from
the superior inferior price actually borne by Exchequer Bills
to the prejudice of the superior price proposed to be put
upon the proposed Annuity Notes.