CHAPTER V.
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