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Front Page arrow Titles (by Subject) arrow MILITARY AND NAVAL PENSIONS BILL 18 April 1823 - The Works and Correspondence of David Ricardo, Vol. 5 Speeches and Evidence

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MILITARY AND NAVAL PENSIONS BILL 18 April 1823 - David Ricardo, The Works and Correspondence of David Ricardo, Vol. 5 Speeches and Evidence [1819]

Edition used:

The Works and Correspondence of David Ricardo, ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 5 Speeches and Evidence 1815-1823.

Part of: The Works and Correspondence of David Ricardo, 11 vols (Sraffa ed.)

About Liberty Fund:

Liberty Fund, Inc. is a private, educational foundation established to encourage the study of the ideal of a society of free and responsible individuals.


MILITARY AND NAVAL PENSIONS BILL
18 April 1823

On 24 March 1823 the Chancellor of the Exchequer introduced a bill to amend the act of the previous session [see above, p. 191] so as to allow the trustees to sell their annuity for a term of years and not merely from year to year, the Bank of England having now agreed to receive part of the fixed annuity and to pay the pensions for five and a quarter years.

On the third reading of this bill, on 18 April, Sir J. Newport contended, ‘that this bargain with the Bank was a direct violation of the statute of William and Mary which prevented the Bank from becoming a dealer and jobber in public securities.’

Mr. Ricardo did not blame the Bank directors for making as advantageous a bargain as possible for their constituents. It was, however, an extremely improvident one for the country. He thought that there was also a constitutional objection to the contract, founded on the nature of the charter of the Bank, and the manner in which the capital was made available to the public. It seemed to him highly impolitic, that the Bank should be allowed to make speculations in the funds. At all events, ministers ought to have delayed the conclusion of the bargain, until they had laid the papers regarding the late negotiations upon the table: had they so waited, the bargain might have been more favourable to the public. He wished to know whether the Bank was to be allowed to charge for the management of this transaction, as well as for the management of the public debt.

Mr. Huskisson answered, ‘that the Bank was to be allowed nothing beyond the terms of the contract which were before the House. He contended, that the bargain was advantageous for the public, and that the Bank were permitted to deal in public securities.’

The bill was then passed.