Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1813-09-30

ohh AuAAhNis 10 W INCelNt AT Tue emu OF
! thirteen years, S 100, which being twelve
more than he has paid, those twelve dol
! lars being divided among the thirteen years,
make the actual interest S "A. Ii doe,
not seem to be fecdlec,ed that twelve dol
lars paid thirteen yfsrs hApce is worth but
% oil the Interest," .of&!t ch being added
to s 81. as above, makes g. Is nor doe
seem TO be recolected~,ifai government do
not promise payment ofthe principal at the
end OF thirteen years--their promise is nor
90 hay before that time. And if it should so
happen that the principal shall not he paid
Sefore the end IT SO years, those welve dolls.
Cannot be called more than S go, at The
time OF subscribing Therefore this mode
of Calculation, wanting certainty. as To the
duration ot the loan, IS liable to error.
mere is, however, no occasion to make the
calculation on any uncertainty.
i he loan .wNs subscribed for at the rate
Of SIS speed dpllars for S lo0 IN six per cent.
stock, payahee at the pleasure of the go~
yefnnent, after the end of thirteen years.
heretore the subscriber, upon payment OF
. 90 in specie, received certificate of
per cent. stock for 113 63 because
SIS sS-in specie,
is to S 100---in per cent. stock,
$40 is S 10O--in specie,
But, in order to shew the utmost the 90
vernmenJ pay, twill be remembered that
per cent: w allowed to the persons Who coli
'ected the snpscrlption-which will make
some small diasrA &c. because
AS S SO % sSnhpaid, deductiug the
Is to Sis amount of the capital
fe&Ne&
So is s 1oO{ Fin, spa
TO S ll3 r-the sum of per cent.
peceisd for subscription
Therefore, the loan coA the subscribers,
not exactly S SO, but SNs7 rs only, be
| cause
ASS lis i63-the amount ofthe certificate
received
! Is TO S % 75--the actual specie paid
SO is S 1905 per csbA stock
To S 81 7S--the actuA sum is specie paid
! for S 1906 ISertSent. stock.
| Hence il follows that the interest paid by
the public is 6 per cent, on s IFS 92-which
is S 6 IS.
! AS there is no stipulation on the part of
| government when the principal is to be paid,
| whether IN thirteen any other number of
years, the true calculation is, that the lend
er receives an annuity of s 6 IS forever. BE
| cause whenever the principal shall be paid,
HE government parts with just so much mo-
ney as will (tnoney at per cent? procure
| that sum annually forever.
| If JOhn is Indebted TO Richard S 100 and
! pays him, John, by the payment, parts with
| 5 per ear forever. So the government,
upon payment of the pricipal, be it when il
may, viii part with S 80 per cent. per
| annum toIeyer-of consequence s 6 So is he
true cost OF The loan.
I The agpourt nj tho hcl loom Ia c 16 oGn mn
| Deduct Tor per cent. paid for
commissions 10000
The sum received by govern
ment is S15, $50, 600
The sum Of per cent. stock is
sued for this S Is 100000 is 1871 BY &c
Che interest of which is 1000 999 o5
! Then,
| AS Is IS $780, 000-the sum received by the
government in specie.
Is to S /, 090,909 05-lhe annual interest tC
he paid on the whole
amount of the 6 pei
cent stock issued,
So is S i0o-specie
To S S3 the interest, per cent. rer an.
mum as before.
Until this principal sum shall he paid, the
above interest will be paid-when the prin
cipal is paid, the interest ofcowse will cease
but The goyernmenf having parted with SC
much principal, thereby virtually Continue:
the payment of tha4 iiseHestA
No notice is here AN eIief he interest be
ing payable quarter yeNrly-1this is some adj
dltional advantage to the rtteiver, but is nc
disadvantage to the public, as it is not to be
doubted but that If it were not paid the mo
ney would lay idle in the bank. p.