Note 150 — SUPPLEMENT TO SECTION III PART II.

In this case only a FIFTH of the surplus to be at any time employed in redeeming debts could be applied to the redemption of this particular loan. The rest after nine years might be employed in redeeming the 4 per cent. stock created last year; or jointly with it, such parts of future loans bearing high interest, as, in borrowing on the same plan, might be left redeemable. And thus no obligation would arise from this mode of borrowing to prefer the redemption of 3 per cents. to the redemption of capitals bearing higher interest. In particular; had this been the plan of borrowing through the last war, all surplus monies might have been ever since employed intirely in paying off 4, 4½ and 5 per cent. capitals preferably to any others; and at the same time, no douceurs would have been granted in order to procure the loans, no artificial debt contracted, or extraordinary charge incurred.