Most Viewed Automatic Re-investment Of Dividends
Canals And Docks
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Bonuses
British Government Funds
Banks
Foreign Government Stocks
Borrowers
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Least Viewed
Surrenders
Insurance Companies
The Stock Exchange
Loans - The Interest On Which Is Guaran-teed By The British Government
Mortgages
Loans To Corporations And Counties Of The United Kingdom
Terminable Annuities
Table Of Interest On Investments Sample
Railways
Government Annuities
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British Government Funds
THE safest of all investments are those repre-
sented by the National Debt of this country, but
the rate of interest or annual income derivable
therefrom is small. The debt is nominally
divided into three parts:- The Funded Debt, the
Unfunded Debt, Terminable Annuities.
The Funded Debt (1) is permanent; it is repre-
sented by Consols yielding interest at the rate
of 2 1/2 per cent. per annum, or £2 10s. a year for
every £100 of stock. The Government is not
under obligation to redeem the principal at any
fixed time, but power is reserved to pay off the
loan at par (that is at the rate of £100 for every
£100 stock, irrespective of its then selling value)
in the year 1905. Another debt of compara-
tively small amount, bearing interest at 2 3/4 per
cent. per annum, may also be paid off at par
in 1905.
The great bulk of the National Debt, amount-
ing to over five hundred millions sterling, is,
represented by what, in Stock Exchange par-
lance, is known as Goschen's Consols, so called
from the Chancellor of the Exchequer of that
name, to whom is due the conversion of the old
"three per cents.," in the year 1888.
This stock bears interest at the rate of 2 3/4
per cent. per annum until the year 1903; from
that date it is to be reduced to 2 1/2 per cent. until
1923, when the principal may be paid off at par.
There is yet another fixed debt of about forty
millions sterling called "Local Loans Stock,"
being money borrowed by the Government for the
purpose of making advances to Corporations for
local works. This stock may be redeemed at
par in 1912.
The Unfunded Debt (2) consists of loans to
the Government for temporary purposes. These
loans are for various periods varying from seven
days to as many years. They are represented
by Exchequer Bills, Exchequer Bonds and Trea-
sury Bills, which bear interest, according to the
value of money at the time they are issued, from
day to day. Due notice is given when a loan is
to be paid off or renewed, and interest ceases on
the day named for redemption.
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