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.


TERMINABLE ANNUITIES.