A. D. 1717. ^7^ 



gradual reduclion of the principal, for which good purpofe the reduc- 

 tion of the legal iiitereft of money from 6 to 5 per cent in 1714, had 

 indeed paved the way; as did alfo what is ufually called the natural in- 

 terefi: of money, or that rate of interefl; at which money miglit now 

 be borrowed on good private fecurity. In order that this good and great 

 end might be attained with fuccefs and fecurity, the government treated 

 with the bank and South-lea company, to whom a great part of the 

 national debt was due, and brought them to agree, not only to the re- 

 dudion of the interefl on their own rel'pedlive capitals from 6 to 5 per 

 cent, but that the bank fhould advance to the public, when wanted, 

 L2, 500,000, and the South-fea company the fum of L2, 000,000, at 5 per 

 cent interefl, to be in readinefs for paying off" fuch of the proprietors 

 of the orders of four lotteries of the reign of Queen Anne, and of other 

 redeemable annuities, as fhould demand their principal money to be 

 paid to them, rather than accept 5 per cent inflead of their prefent 

 interefl; of 6 per cent. This falutary fcheme was effected in confequence 

 of three feveral ads of Parli^iment. [3 Geo. I, cc. 7, 8, 9.] 



By the firft, intitled, an aft for redeeming the duties and revenues 

 which were fettled to pay off the principal and interefl on the orders 

 made forth on four lottery acts, 8cc. commonlv called the general fund, 

 the two companies were impowered to borrow money on their common 

 feals, or to make calls on their proprietors, for enabling them to advance 

 to the public the two fums above I'pecified : the reduction of interefl to 

 commence from michaelmas 1727, for which interefl a new annual fund 

 was hereby eftabliflied, and has ever fmce been called the general fund, 

 amounting to L724,849 : 6: 10}. Hereby meaiures were fo well con- 

 certed by the government, that all the proprietors of thole redeemable 

 duties acquiclbed in the reduction of their interefl from 6 to 5 per 

 cent, without borrowing any part of the ftipulated fums to be advanc- 

 ed by the bank and South lea company. 



For by the ad \c. 8] for redeeming feveral funds of the bank, pur- 

 fuant to former provifoes of redemption, &c. the bank's willingnefs 

 to accept 5 per cent interefl for all the debts due to that corporation 

 was declared, inflead of their then allowances, and to advance the above 

 L2, 500,000 if called for : and the bank was hereby to deliver up 

 L2, 000, 000 of exchequer-bills ; for which they were to have an annui- 

 ty of Li 00,000 redeemable on one year's notice, after cliriflmas 171 7. 

 This is called the aggregate-fund, fir ft eflablifhed by an ad [i Gio. I, c. 

 I 2] though not particularly applied to leflening the national debts till 

 now. Hereby alio the bank was to have 3 per cent jier annum and \ d. 

 per cent per diem inflead of oi -id. formerly allowed for circulating the 

 fum of 112,561,025, being the remaining exchequer-bills, till fully can- 

 celled, from chriflmas 1717 : fo that the whole capital of the bank was 

 hereby increafed to L5, 375, 027 : 17 : 10, vi/. 



