Memoirs of a banking house

MEMOIRS OF A BANKIXG-HOUSE. 87
ment securities, however, in which Ave invested some money
Avithout scruple, from time to time, and that Avas in the fund
denominated Short Annuities. These had been granted for a tenn
of years for money borroAved by government in the year [1778],
and they expire on the 5th January 1808, till Avhich period they
are paid regularly every half-year, and this price Avas so loAv
during the Avar, that he who purchased them had an absolute
certainty of realising a very handsome profit at their termination.
Therefore, finding our money swell upon our hands beyond all
that Ave could employ in the ordinary purposes of our business,
and it being absolutely necessary to place the surplus so as to
jaeld us a fair return, as Ave Avere paying to our customers a con-
siderable interest, Ave purchased some of these short annuities
from time to time. Another public fund also presented itself,
Avhich Ave considered might be held Avith safety and adA'antage.
The Chancellor of the Exchecj[uer having resoh^ed to convert a
portion of the Navy Bills into stock bearing interest at five per cent,
under the stipulation of redeeming it at par, if the holders should
demand their money, at the end of tAvo years after the termination
of the Avar ; and, as Ave happened to hold a large sum of Navy Bills,
Ave of course became possessed of a considerable amount of this five
per cent, stock. Besides that stock, the holders of Navy Bills received
another portion of their value in four per cent, stock irredeemable,
but on such Ioav terms, that, seeing no prospect of having occasion
to sell it till the return of peace, AA^hen, in all probability, it Avould
rise considerably in value, Ave resolved to take it also, and to keep
the Avhole, as Avell as some three per cents. Avhich Ave A'entured to
purchase at a very Ioav rate. These purchases aa^c did not consider
as any departure from our resolution of avoiding speculation in
government securities, because Ave never bought to the value of a
shilling Avithout paying for it in money, nor even that, except Avhen
Ave did not knoAV hoAv otherAvise to employ our funds, after having
discounted every good bill that AA'as offered to us. And Ave had
solid ground for deeming these investments as a source of consider-
able future profit, Avhen it should please God to send us again the
blessing of peace — a profit of the certainty of AA'hich nothing could
disappoint us, except our being forced to part AAdth the stock in the
interval, and of that there Avas very little probability, so Avell
fortified Avere Ave against any demands likely to happen by the
amount of our other resources to meet them, Avithout being com-
pelled to break in upon our investment in the funds.
But there Avas another circumstance relating to these invest-
ments which noAv engaged our attention, and that AA^as the con-