Note 108 — PART II. CONTAINING Remarks on some Particulars in a Speech at opening the Budget in April 1776.

The life-annuity granted in this case could not have been worth so little as 16l. or 14 years purchase; and, therefore, a capital of 100l. in the 3 per cents was sold for 84l; or a capital of three millions, for 2.520,000l.—A premium, therefore, was granted of 480,000l; and this was done without the least reason. For the 3 per cents being at that time at 87 and 88, 2.520,000l. would undoubtedly have been lent at 3½ per cent. interest; and the remaining 480,000l. necessary to make up three millions, would have been given for the life annuities; in which case, the annual charge occasioned by the new capital would have been somewhat less; and 480,000l. would have been saved, together with the additional expence occasioned by the longer time which a given surplus would require to discharge a debt bearing 3 per cent. interest, as explained in the note, p. 94.