The Sun.
London, England, 1847-03-02 00:00:00

WAYS AND MEANS.

LOAN OF EIGHT MILLIONS. Of
The House then resolved itself into a Committee
Ways and Means.
The CHANCELLOR of the EXCHEQUER then r#
and said, in deference of my friends behind me, and in ace(/'
dance with my own feelings, I rise to make a statement in In
ference to the subject of finance which I brought before the
House the other evening. And here I must express how °en;
sibly I felt the kindness which the whole of the House did and
that evening. —( Hear, hear.) Sir, on that occasion I stalsite
that in order to meet the existing exigencies, I must make a
extraordinary demand on the Treasury of this kingdom, one
that I must have recourse to a loan of 8,000,100/. It gayer,
great pleasure that the House had confirmed that proceed
with their sanction. I have now to announce that an arrangent,erit
has been entered into whereby I shall be able to obtain 04
loan, and I will move the House to pass set:
tain resolutions confirmatory of that arrangetnen r
It has not been the practice of the House that the Chancelle
of the Exchequer mentioned his intention of contracting a lose:
It would be recollected that when the last loan was contracts!
for, an Act of Parliament had been passed authorising the loan:
generally. I thought it best, however, to mention it to.t:ti
House, and I have since felt that the course which vi
adopted was the best—it was certainly the most respectful t 0
this Howe. After considering it, lam sensible that the course„
I have taken has been the most advantageous that could h 0,!:
been adopted. I had made every necessary inquiry about
possibility of raising the money, and everybody
me that I should have no difficulty in obtaining the %,,,uf,",ing
have found this to be the case, by deter
d stock.
to grant interest at three per cent., consolidataeinn,
and
universallY tclai
This course we have adopted on the present lid %Ile the
accordingly I announced to those gentlemen, who
honour of waiting upon me, that I would give
stock, and that parties bidding for the loan were to bid
much money for each 1001. stock. Two offers have been mane
which were identical, and the result of previous arrengernenti
between the parties. The offer made was of 891. 10s. for each
100/. stock. According to the best considerations which 1
have been able to give the subject, and also as the result t,
consolideado
dat
communications with various parties, and considering the present
state of the money market, I thought the offer was an adva"'
tageous one, and I came to the resolution of accepting it
With respect to the rate of interest at which the 11-
has been contracted, it will be necessary that I should Ins
some observations upon the statements which I made upon
.o
former occasion. What I had in view when I made that
an-
nouncement to the House was that I expected to raise the a_
ti
at a rate of interest of between three and four per cent'
thought that probably I might be able to raise it at three.an4
a-half per cent. It was necessary to debit myself with Ile%
amount as chargeable upon the revenue of the country, it war
necessary that I should in part know what amount of intere
would fall upon the country as chargeable upon the revenue;
That sum, I am happy to say, does not quite equal three-and 'of
half per cent. Upon the occasion of the last loan, the rate
interest was not so high as the present. rate 0"/
interest. The West Indian loan was one •
20,000,000/., the loan which I have now contracted is
one of a considerably less amount. The price of Consols vr.si_
then considerably higher than at present; it is not therefore I;
be supposed that, with a smaller amount of loan to be raise °'
ar.d with the price of Consols considerably less, that the Pre;
sent loan could be contracted upon the same advantagel,
terms as the former one. The interest that will be pallwt.
upon the present loan is as near as may be 31. 7s. 6d. per ef.Pcb
A calculatien has been made in the Treasury offices, tvn,l„
brings the rate of interest to 3/. 7.. per cent., and if you ".4,
duct the amount of the dividend from January to March,
will make it 3!. 7s, 6.1. per cent. The annual amount of ill:,
terest upon the loan will be 268,156/. Bs., to which, if you au„
the amount of the Bank charges of management of the 1017
it will make the total amount chargeable upon the le%
270,800/. Bs., or a charge upon the whole of something I'2:
than 31. 7s. 6.1. per cent. I have therefore contracted Oh
loan 2s. 6d. per cent. less than the 3i per cent. which I 'lir;
nose I should have had to pay for the loan. I have allowed 0,
discount, and I have also adopted the practice usually et/violet'
in loans in France of giving stock, if required, for every insls:
ment as they are paid, except the first. This will cause n`'
extra charge upon the country, and will, at the same rifle
afford to Government an increased facility for raising the luarr.
The Right Hon. Member concluded by moving resolution°
confirmatory of the loan:—
" 1. That towards raising the supply granted to her Majesty
the sum of 8,000,0001. be raised be annuities.
coOl.
" 2. That every contributor to the said sum of 8,000,v he
shall, for every sum of 891. 103. contributed and paid,
entitled to the principal sum of 100/. in annities, after the ea'
of 3/. per cent., to commence from the sth day of Jantiaff:
1847, and to be added to, and made one joint stock with, the
existing Three per Cent. Consolidated Annuities, and be per
able and transferable at the Bank of England at the same tilne
and in the same manner, and subject to the same redemptie°
as the said annuities.
" That the several annuities shall be charged on and Pidt
out of the Consolidated Fund of the United Kingdom of Gres
Britain and Ireland.
" That every contributor shall, on the sth day of Mareb;
1817, make a deposit of 12/. per cent., in mach sum as he e
she shall choose to subscribe towards raising the said 500 °f
8,000,000/., with the chief cashier or cashiers of the GovereeR.••
and Company of the Bank of England, as a security for Mak-
ing the future payment on or before the days or terms hereip'.
after mentioned ; that is to say—
O,
" Payment of 12 per cent. on or before the 9th day ,
April next.
" Payment of 12 ditto ditto ditto 7th of May.
" Payment of 12 ditto ditto ditto 11th of June.
" Payment of 12 ditto ditto ditto 9th of July.
" Payment of 12 ditto ditto ditto 6th of August'
" Payment of 12 ditto ditto ditto 3d of Sept.
" Payment of 16 ditto ditto ditto 15th of Oct.
100
tt That all the monies so to be received by the said Whit'
or cashiers of the said Governor and Company of the 13°/
of England, shall be paid into the account of the receipt of
her Majesty's Exchequer ;at the Bank of England, in aid ;
the monies belonging to the Consolidated Fund, and sh:t.
be applied from time to time for any of the purposes .
which money might be advanced or granted from the CA2,I;
sulidated Fund of Great Britain, under the Act of the
and 10th Victoria, cap. 107, or for such services u may d
voted by this House, or as may be authorised to be Pate
thereout by any Act passed, or that may be passed in r
present session of Parliament."
Mr. HUME wished to know whether the interest on the
whale loan would commence in January or with each portie
paid ?
that
The CHANCELLOR of the EXCHEQUER sail The
he could only repeat what he had already stated.
the
whole interest would commence from January, hut
ny
whole would not be necessarily paid until July. If ab.,
contributor paid up the whole of his instalments on or, Tit
fore the 2d of July, be would have a half-year's dividend
til
July and a half in January, but if he did not pay until
after July, he would not have any dividend at all units
January, when lie would receive the year's dividend. l
w ;frtin
the case of any stock given in exchange for money pa,
in April, May, and June, the half-yearly dividend walla
paid in July. —( Hear, hear.)
Mr. HUME had only to express his regret that the Rig°
Hen. Gentleman had resorted to this mode of obtaining, the
iO'
loan. They were now to pay 8,938,5471. stock for it, aorylic,
terest for that. amount to the 31st January, though they
not received it. He must say that they had made a bad Da'
or
3
gain, and he had no doubt that the loan would now bring
rs
4 per cent. stock in the market. By accepting such low t.e,lf ot
a great loss would be sustained by the ecuntry. He would 0,
have left it open to the chances of combination, but have putiiii.
in the power of every one to compete for it in the market. to
was informed that these were now at a premium of from,
e"
s
1 per cent. It was the principle, however, that he objec t
to, and he regretted that such a course had been adopted.
Chettc_ allellee
'Mr. WILLIAMS exp
ressed his sorrow that the
of the Exchequer had proceeded in the beaten track of
Chancellors of the Exchequer for the last forty years.
.n*
et
7,
proceeding in this way, an additional sum of 175 millions nn
been added to the debt of this country. He objected to I
inciple altogether, for he maintained that they ought tog e-
-11. 1/. sterling for every 1/. of stock. He thought that if her
the
jesty's GoTernment had pursued a different course that