Note 144 — SUPPLEMENT TO SECTION III PART II.

What is here said has been verified, in the particular instance of a million and a half borrowed in 1756, which was to carry 3½ per cent. interest till 1771, and then to become redeemable.—During the last war, and for about three years after the commencement of peace, there was a general expectation that the THREE per cents. would rise above par as they had done in the former peace; and while this expectation continued, this stock reckoned no better than a THREE per cent. stock with a short annuity of a half per cent. annexed; and for this reason it bore, during that period, a lower price than another stock of 4 millions and a half which was to bear the same interest till 1782, and then to become redeemable, and to sink to an interest of 3 per cent.—In the latter end of 1767 and beginning of 1768 the price of the former stock rose above that of the latter, and continued not far from par from that time to the time of its redemption in 1771. The reason must have been, that being a small stock bearing a higher interest than the other stocks, it was expected, that it would be paid off at par, and therefore with a considerable profit, as soon as it became redeemable; which accordingly happened. See Postscript, (page 177).