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Annuity Notes
Abstract

Ch. XVI. Reduction of Interest — proposed mode compared Ch.XV. Pelham's Reduction
Ch. Pelham's Plan compared with the proposed Plan with M<hi rend="superscript">r Pelham's</hi> —
in respect of the Reduction of Interest

Reduction of Interest is a declared object with 1 Heads under
the two plans of
reduction are composed.-
1. Expence
2. Dispatch
3. Previous assurance
of success
4. Gentleness of
operation
58
8
—
4
Parliament +: - the only question is as to the mode. + New Sinking Fund Act
32 G.3.ch55.SS.

To exhibit the advantages possessed by the proposed plancomparative eligibility as between the two plans —
(the one Mr here proposed for the future, and the one pursued in time past
by M<hi rend="superscript">r Pelham</hi>) I will consider them bothtogether under the several heads of
gross profit — expence — dispatchcelerity of operation — — previous assurance
of success — and gentleness of operation: - and
that the contrast may be the more conspicuous it will
be proper, afterin exhibiting under the above heads the features of Mr Pelhams
plan, under the those above heads, as it was actually
carried into executive at that time, in regard to the comparatively
small mass of the existing debt, to conceive
it applied, as for as may be to the circumstances
of the prodigiously superior mass of debt existing at present.
not forgetting, on the occasion of Mr Pelham's, its hypothetical
application that may be made of it to the present times, with their almost eight fold
mass of debt.

I. Expen As to Expense:- viz: as compared with profit. 2
1. Expence -
in Pelham's Plan
1. First -
plan next 4
years
of the interest
struck off
i:e: ratio of expence to profit.

In MrPelham's time, the The profit consisted in reducing to 3 per Cents the whole amount
of the existing quantity of 4 per Cents: On thethat is reducing
the quantum of interest paid on the nominal capital of
about £57,703,475 from about £2,308,136 to about £1,731,102
When the question was first mentioned by him in Parliament, it is a
sign that three at least the times state of the money market
was ripe for it: [+] how much longer it might already may have been [+] otherwise he could
not have obtained the
requisite assurance of
the money for paying
off in case of refractiveness:
—
ripe, for it it would not be in vain to attempt to calculate.
This being assumed, whatever respite he allowed — whether
as to the whole, or as to a part of the interest proposed to be
struck off — is to may be considered as a p or bonus<add>and </add> which it under
his planthe plan proposed, it was looked upon as in <add>advisable</add>in print to produce to allow necessary to give to the
Stockholder, in order to purchase their acquiescence and
the plan against the hazard of failure For, I say

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