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<p><head>Effects: Period I <hi rend="underline">ad finem</hi></head></p> | |||
<p>10<lb/> | |||
The consequence<lb/> | |||
seems to be, that no<lb/> | |||
individual <add>any longer</add> will buy<lb/> | |||
Stock Annuities, &<lb/> | |||
what Stock<lb/> | |||
Annuities come to be<lb/> | |||
sold will be bought<lb/> | |||
in by government,<lb/> | |||
which at 93 7/8 will<lb/> | |||
be more advantageous<lb/> | |||
to pay them off.</p> | |||
<p>11<lb/> | |||
In this state of things<lb/> | |||
Government will get<lb/> | |||
little <add>necessarily</add> in the way of<lb/> | |||
reduction of inerest, but<lb/> | |||
it may gain much<lb/> | |||
<hi rend="underline"><unclear>probability</unclear></hi> by forbearance<lb/> | |||
of receipt of<lb/> | |||
interest.</p> | |||
<p>12<lb/> | |||
Government in as far<lb/> | |||
as it thinks fit to tie<lb/> | |||
itself to the keeping<lb/> | |||
up a <unclear>Stock</unclear> Fund, will<lb/> | |||
put itself into a condition<lb/> | |||
similar to that<lb/> | |||
of the Bank of deposit<lb/> | |||
at Amsterdam.</p> | |||
<p>13<lb/> | |||
So long as it continues<lb/> | |||
the issue of Annuity<lb/> | |||
Notes at the original<lb/> | |||
rate of interest (3 per<lb/> | |||
cent) it will be out of<lb/> | |||
its power to reduce the<lb/> | |||
rate of interest: since<lb/> | |||
<del>before</del> in order to obrain<lb/> | |||
money, to <add><hi rend="underline">threaten</hi> to</add> pay<lb/> | |||
off Stock with, so as<lb/> | |||
to force an <gap/><lb/> | |||
of 2 1/2 per cent, it<lb/> | |||
must have issued Annuity<lb/> | |||
Notes at 3 per<lb/> | |||
cent, so that nobody<lb/> | |||
will <add>is not to</add> be paid off, but<lb/> | |||
everybody will be forselling<lb/> | |||
out to buy<lb/> | |||
Notes.</p> | |||
<pb/> | |||
<p><head>Effects: Period I ad finem</head></p> | |||
<p>14<lb/> | |||
But in the meantime<lb/> | |||
the existing<lb/> | |||
Sinking Fund will<lb/> | |||
be yielding its produce:<lb/> | |||
and with<lb/> | |||
that produce Government<lb/> | |||
will have<lb/> | |||
it in its power<lb/> | |||
to pay off 3 per<lb/> | |||
Cents without<lb/> | |||
selling Annuity<lb/> | |||
Notes.</p> | |||
<p>15<lb/> | |||
This however will<lb/> | |||
not enable Government<lb/> | |||
to effect any<lb/> | |||
such redirection of<lb/> | |||
interest: since as<lb/> | |||
fast as the Stock<lb/> | |||
Annuitants are<lb/> | |||
paid off, they will<lb/> | |||
buy Note Annuities.</p> | |||
<p>16<lb/> | |||
It will be necessary<lb/> | |||
thereof for<lb/> | |||
Government to have<lb/> | |||
it in its power to<lb/> | |||
stop the issue of<lb/> | |||
Annuity Notes<lb/> | |||
whenever Stock<lb/> | |||
Annuities have<lb/> | |||
risen to par (or<lb/> | |||
perhaps thereabouts.)<lb/> | |||
Yet <unclear>as</unclear> soever<lb/> | |||
will it have stopped<lb/> | |||
the issue of<lb/> | |||
Annuity Notes,<lb/> | |||
than the price of<lb/> | |||
Annuity Notes in<lb/> | |||
circulation will<lb/> | |||
rise.</p> | |||
<pb/> | |||
<p><del><head>Extent</head></del></p> | |||
<p>17<lb/> | |||
As soon as Stocks<lb/> | |||
are at par, and<lb/> | |||
the issue of Ann<hi rend="superscript">y</hi><lb/> | |||
Notes stopped, then<lb/> | |||
Annuity Notes will<lb/> | |||
unavoidably come<lb/> | |||
to bear a premium.</p> | |||
<p>18<lb/> | |||
If then a new<lb/> | |||
Issue is opened at<lb/> | |||
2 1/2 per Cent, nobody<lb/> | |||
will take out<lb/> | |||
the new batch at<lb/> | |||
that rate till the<lb/> | |||
old batch has risen<lb/> | |||
up to a certain<lb/> | |||
mark: because<lb/> | |||
till then<lb/> | |||
it will be more<lb/> | |||
advantageous to<lb/> | |||
<unclear>take</unclear> the old in<lb/> | |||
the way of circulation<lb/> | |||
than the<lb/> | |||
new in the way<lb/> | |||
of issue.</p> | |||
<p>19<lb/> | |||
But the price of<lb/> | |||
the old batch, having<lb/> | |||
arrived at this<lb/> | |||
mark, will <hi rend="underline">continue</hi><lb/> | |||
at this mark<lb/> | |||
and will be such<lb/> | |||
as <del><gap/></del> to be worth<lb/> | |||
to the holder exactly<lb/> | |||
or within<lb/> | |||
a trifle, of the new<lb/> | |||
i:e: to <del>every</del> <add>yield</add> 2 1/2<lb/> | |||
per cent as the<lb/> | |||
new does.</p> | |||
<p>20<lb/> | |||
By this means<lb/> | |||
those who continue<lb/> | |||
to hold their old<lb/> | |||
Note Annuities will<lb/> | |||
continue to make<lb/> | |||
3 per Cent. If they<lb/> | |||
part with them they<lb/> | |||
will <del>sell to</del> obtain<lb/> | |||
this premium: if<lb/> | |||
<add>they</add></p> | |||
<pb/> | |||
<p><head><del>Extent</del></head></p> | |||
<p>21<lb/> | |||
When Stock comes<lb/> | |||
to be bought by<lb/> | |||
Government, it<lb/> | |||
must be by <del><gap/></del> the<lb/> | |||
guineas, and not<lb/> | |||
by Annuity Notes.<lb/> | |||
When it comes to<lb/> | |||
be bought by individuals,<lb/> | |||
it may<lb/> | |||
be, and probably<lb/> | |||
always or mostly<lb/> | |||
will be by Annuity<lb/> | |||
Notes. Will<lb/> | |||
this make any difference <del>in <gap/></del> as<lb/> | |||
between the price<lb/> | |||
required of government,<lb/> | |||
and the price required of individuals?</p> | |||
<p>22<lb/> | |||
When a new<lb/> | |||
Batch of Annuity<lb/> | |||
Notes comes thus<lb/> | |||
to be <del><gap/></del> issued at<lb/> | |||
a reduced <del>price</del> <add>rate of<lb/> | |||
interest</add> it is not necessary<lb/> | |||
that <del>it should be</del><lb/> | |||
the price at which<lb/> | |||
it is issued should<lb/> | |||
be such as to tally<lb/> | |||
exactly with an even<lb/> | |||
rate of interest.<lb/> | |||
If it were<lb/> | |||
no new Batch<lb/> | |||
would be issued at<lb/> | |||
2 1/2 per cent<lb/> | |||
till the old were<lb/> | |||
at 120: and in<lb/> | |||
<add>all</add></p> | |||
<p>20<lb/> | |||
they repurchase<lb/> | |||
them, they will<lb/> | |||
have the premium<lb/> | |||
to pay again, &<lb/> | |||
will not <del>any more</del><lb/> | |||
thenceforward be<lb/> | |||
able to make more<lb/> | |||
than the 2 1/2 per<lb/> | |||
Cent.</p> | |||
<pb/> | |||
<p><head><del>Extent.</del></head></p> | |||
<p>all that time individuals<lb/> | |||
and not<lb/> | |||
Government would<lb/> | |||
be reaping the advantage<lb/> | |||
from the<lb/> | |||
reduced rate. Notes<lb/> | |||
of the New Batch<lb/> | |||
might therefore be<lb/> | |||
issued at such a<lb/> | |||
price as that for<lb/> | |||
an Annuity of<lb/> | |||
£3 a year a<lb/> | |||
man should have<lb/> | |||
to pay <del><gap/></del> instead<lb/> | |||
of the £120, £115,<lb/> | |||
£110, £105, or any<lb/> | |||
other such intermediate<lb/> | |||
sum as<lb/> | |||
should be deemed<lb/> | |||
most convenient:<lb/> | |||
i:e: <add>for</add> a Stock yielding<lb/> | |||
1/2 a farthing<lb/> | |||
a day interest the<lb/> | |||
price required might<lb/> | |||
be instead of £6-6<hi rend="superscript">s</hi>, £6:10,<lb/> | |||
6 1/2 Guineas –<lb/> | |||
£7 or 7 Guineas<lb/> | |||
&c, according to <lb/> | |||
the premium borne<lb/> | |||
and likely to be<lb/> | |||
borne in the circulation.</p> | |||
<!-- DO NOT EDIT BELOW THIS LINE --> | <!-- DO NOT EDIT BELOW THIS LINE --> | ||
{{Metadata:{{PAGENAME}}}}{{ | {{Metadata:{{PAGENAME}}}}{{Completed}} | ||
Effects: Period I ad finem
10
The consequence
seems to be, that no
individual any longer will buy
Stock Annuities, &
what Stock
Annuities come to be
sold will be bought
in by government,
which at 93 7/8 will
be more advantageous
to pay them off.
11
In this state of things
Government will get
little necessarily in the way of
reduction of inerest, but
it may gain much
probability by forbearance
of receipt of
interest.
12
Government in as far
as it thinks fit to tie
itself to the keeping
up a Stock Fund, will
put itself into a condition
similar to that
of the Bank of deposit
at Amsterdam.
13
So long as it continues
the issue of Annuity
Notes at the original
rate of interest (3 per
cent) it will be out of
its power to reduce the
rate of interest: since
before in order to obrain
money, to threaten to pay
off Stock with, so as
to force an
of 2 1/2 per cent, it
must have issued Annuity
Notes at 3 per
cent, so that nobody
will is not to be paid off, but
everybody will be forselling
out to buy
Notes.
---page break---
Effects: Period I ad finem
14
But in the meantime
the existing
Sinking Fund will
be yielding its produce:
and with
that produce Government
will have
it in its power
to pay off 3 per
Cents without
selling Annuity
Notes.
15
This however will
not enable Government
to effect any
such redirection of
interest: since as
fast as the Stock
Annuitants are
paid off, they will
buy Note Annuities.
16
It will be necessary
thereof for
Government to have
it in its power to
stop the issue of
Annuity Notes
whenever Stock
Annuities have
risen to par (or
perhaps thereabouts.)
Yet as soever
will it have stopped
the issue of
Annuity Notes,
than the price of
Annuity Notes in
circulation will
rise.
---page break---
Extent
17
As soon as Stocks
are at par, and
the issue of Anny
Notes stopped, then
Annuity Notes will
unavoidably come
to bear a premium.
18
If then a new
Issue is opened at
2 1/2 per Cent, nobody
will take out
the new batch at
that rate till the
old batch has risen
up to a certain
mark: because
till then
it will be more
advantageous to
take the old in
the way of circulation
than the
new in the way
of issue.
19
But the price of
the old batch, having
arrived at this
mark, will continue
at this mark
and will be such
as to be worth
to the holder exactly
or within
a trifle, of the new
i:e: to every yield 2 1/2
per cent as the
new does.
20
By this means
those who continue
to hold their old
Note Annuities will
continue to make
3 per Cent. If they
part with them they
will sell to obtain
this premium: if
they
---page break---
Extent
21
When Stock comes
to be bought by
Government, it
must be by the
guineas, and not
by Annuity Notes.
When it comes to
be bought by individuals,
it may
be, and probably
always or mostly
will be by Annuity
Notes. Will
this make any difference in as
between the price
required of government,
and the price required of individuals?
22
When a new
Batch of Annuity
Notes comes thus
to be issued at
a reduced price rate of
interest it is not necessary
that it should be
the price at which
it is issued should
be such as to tally
exactly with an even
rate of interest.
If it were
no new Batch
would be issued at
2 1/2 per cent
till the old were
at 120: and in
all
20
they repurchase
them, they will
have the premium
to pay again, &
will not any more
thenceforward be
able to make more
than the 2 1/2 per
Cent.
---page break---
Extent.
all that time individuals
and not
Government would
be reaping the advantage
from the
reduced rate. Notes
of the New Batch
might therefore be
issued at such a
price as that for
an Annuity of
£3 a year a
man should have
to pay instead
of the £120, £115,
£110, £105, or any
other such intermediate
sum as
should be deemed
most convenient:
i:e: for a Stock yielding
1/2 a farthing
a day interest the
price required might
be instead of £6-6s, £6:10,
6 1/2 Guineas –
£7 or 7 Guineas
&c, according to
the premium borne
and likely to be
borne in the circulation.
|
Identifier: | JB/003/037/005"JB/" can not be assigned to a declared number type with value 3. |
|||
|---|---|---|---|
|
003 |
annuity notes |
||
|
037 |
|||
|
005 |
forgery / borrowing |
||
|
rudiments sheet (brouillon) |
1 |
||
|
recto |
|||
|
jeremy bentham |
|||
|
19210008 |
|||
