The Sun.
London, England, 1835-09-03 00:00:00

THE LATE LOAN.

MR. HUME'S RESOLUTIONS RESPECTING THE
LOAN of FIFTEEN MILLIONS of MONEY

CONTRACTED by the CHANCELLOR of the EXCHEQUER
ON THE THIRD OF AUGUST, 18.55.
Ist. That the Loan of 15,000,000/. has been borrowed by
the Chancellor of the Exchequer at the rate of 86/. 9s. sd.
money, for every 1001. in Consols, as follows, viz. :
He has given £7S Stock Consols, and
25 Reduced,

=_—_£loo of 3 per cent. Stock for every £lOO, money;
Also, 13s. 7d. of Long Annuities,
terminable in 1860, equal in =£ll 7 1
cash to 161. 14s. 4d. for 1/
And 3 months interest due on )
Reduced, viz., from 6th April tk•
to sth July on 25/.
Add a discount for prompt pay-)
ment of the 99/, remaining in- -
stalments

0 3 9

119 9= 13 10 7

Leaving £B6 9 5
—in money, as the price of every 100/. of Consols, which is
equal to a rate of interest of 31. 9s. sd. per cent., or
3/. 9s. 4 67-100 d.

2d. Which appears by the following statement of the amount
of stock, and the price of such stock given for every 1001.,
cash, viz.
For 75/. Console, at M. 93. sd. £64 17 0,4
For 25/. Reduced, at 871. 4s. sd.
For 133. 7d. of Long Annuity, at 16/. 14s. 4d
per 1/.
And discount for prompt payment... 1 19 9

£lOO 0 0
3d. That the following charges on the Consolidated Fund
have been incurred for the said Loan of fifteen millions of
money, as will appear on the books of the Bank of England,

viz.--

For 11,250,0001. of Consols, payable from sth
July, at 3 per cent. £337,500
For 3,750,000/. of Reduced, payable from sth
April, at ditto ...

Making a perpetual charge £450,000
And 101,8751. of Long Annuities, payable from
sth April, 1835, to January, 1860
4th. That if the whole of the Loan had been raised in one
stock, and that stock had been Three per Cent. Consols, at
the price above stated of 861. 9s. 5d., the gross amount of
Three per Cent. Capital Stock, added to the debt of the
country, would be 17,346,8901., and a perpetual annual charge
for the same of 520,406/. 14s.
sth. That if the whole had been raised in Reduced Three
per Cents. at the price of 871. 4s. fid., being the difference
of 15s. of interest added to the price of Consols, the amount
of Three per Cent. Reduced Capital Stock added to the debt
of the country, would be 17,197,726/., and a perpetual an-
nuity of 515,931/. 153. payable from sth April, 1835.
6tb. That if the whole loan had been borrowed in Long
Annuities, payable from sth of April, 1835, and terminating
in January 1860, the annuity during that period would have
been 897,3081.
7th. That if the Loan of 15 millions had been raised in the
New Three and a half per Ceot. Stock, at the price of 971.
in money for every 1001. Stock, and that the same discount
had been allowed for prompt payment as on the present Loan,
this would have given a net price, after deducting discount, of
951. Is. 7d. in money for every 1001. Stock; and, thereby the
capital added to the debt of the country would have been
15,776,327/., and the perpetual annuity 552,171/. 9.1. payable
from sth July, 1835 ; being at the rate of 3/. 13s. Bd. per
cent. for money, or 31. 13s. 7 47-100 d.
Bth. That the capital Stock, created by the present Loan
of 15,000,0001. of money, when estimated in Consols, being
equal to 17,346,8901., and the capital, if raised in a Three
and a Half per Cent. Stock, being only 15,776,337/., the
increase in the capital of the debt by the present Loan, as
compared with a Loan in the New Three and a Half per
Cent. Stock, is 1,570,563/. _ _

9th. That if the Loan had been contracted in the New
Three and a Half per Cent. Stock, at the price of 97/., with
a guarantee against the reduction of interest for 15 years; and
that at the en of that term the Three and a Half par Cent.
Stock were reduced to a Three per Cent. Stock, the compa-
rison with the present contract would be as follows :
To borrow in a per Cent. Stock
at the price of 971., reduced by x.
discount to 951. Is. 7d., is to pay '"
interest at the rate of
The present Loan is contracted for t 3 9 5
at the rate of interest of

Showing a greater rate of interest of £0 4 3 paid on the 3i
per cent. Loan.
which difference of 4s. 3d. in the rate of interest, is an an-
nuity ; and an annuity of 4s. 3d. interest being reckoned at
3i per cent. will increase in fifteen years to a sum of 41. 2e.,
which sum again, interest being reckoned at 3 per cent., is
equivalent to a perpetual annuity of 2s. sd. ; and, therefore,
supposing the 31 per cents. to be reduced to 3 per cents. after
fifteen years, the amount will stand thus :
The rate of interest at which the present Loan is
contracted for is,
The rate of interest on a 3i per Cent.
Stock, reduced to a 3 per Cent. £3 0 0
Stock, is, at the end of 15 years...
Add the perpetual annuity arising
from the loss of 41. 25., being the
0 2
accumulation of the excess of inte-
rest of 4s. 3d. paid during 15 years

£3 9 5

, 3 2 5i

Showing a difference of £0 6 111
per cent. payable, for ever after, on the whole 15 millions, as
at present contracted for, more than would have been payable
if the Loan had been raised as a 31 per cent. Loan, as stated
in Resolution 7.

10th. That the difference of 6s. 111 d. per cent. upon fif-
teen millions, constitutes a permanent annuity of 52,187/.los. ;
but this annuity, though permanent, after it has once begun,
is a reversion, the payment of which commenees at the end of
fifteen years, and the present value of which, interest being
reckoned at three and a half per cent. during fifteen years,
and at three per cent. for eves after, is 1,0381. 12s.
11th. That, besides the above loss to the public of
1,038,341/. 12s. arising from the difference of charge for the
annuity, there will be an additional loss to the public of
1,570,563/. by the increase of capital of the National Debt, as
shown in the Bth Resolution. _ _

12th. From these facts it appears, that if the Chancellor of
the Exchequer had raised the fifteen millions in a three and a
half per cent. stock at 971„ reducible in fifteen years to a three
per cent. stock, this would have been equivalent to a net price
of 921. 9s. Id. for 100/, Consols, instead of the net price of
80/. 9s. 5d., which he receives by the present contract ; being
a loss of 5/. I 9s. Bd. per cent., commencing from the present
time ; and exclusive also of the increased amount of the capi-
tal of the debt.

Tice public ale much indebted to Mr. Hume, and
Committee of the House of Commons, for bringing forward
resolutions for " the distribution of Acts of Parliament"
through the nation. These are now to be supplied and cir-
culated not only to every member of the Legislature, but to
all our distinguished literary societies ; also to all magistrates
throughout the kingdom, by whom they arc to be retained as
public records, and hike. isc to the public at the charge of six
farthing, a sheet.