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Bank of England
London, 5 June 1793, London Certificatie for inscribed shares / annuities, 3 per cent for £ 500 (literaly „... voor een Somme van
500 Ponden Actien in het voorschreeve geconsolideerde Capitaal van Drie per Cent Bank Annuityten“), #17217, 36.6 x 22.1 cm,
black, white, folds, condition VF, paper seal (paperseal separate), embossed seal, text in Dutch,
signed by Pieter Hendrik Hoogenbergh,
absolute Rarity!
The central idea of the British Financial Revolution was the completely separation of the public debt from the (personal) credit of a per-
son, namely the ruling monarch who had always shortage of money. The goal of this step was to mobilise the total financial resources of
the whole economy. Therefore a group of rich London businessmen were authorised by an act of parliament to establish an organisation
with special privileges, the Bank of England. In compensation for the give privileges the Bank of England bought from the government
their liabilities. The amount of the liabilities was 1.2 million pounds, correlated with the share capital of the Bank of England and was
securitised in interest bearing Annuities. The system got its credibility by the invention on the sinking fund. This fund was a reserve
fund fed by particular taxes and should be used to repay the annuities. The Bank of England started to buy and sell annuities at the Lon-
don Stock Exchange at the same time. That created a permanent existing, workable market. The most important result of this step was,
that the public – especially the essential British businessmen – were convinced step-by-step, that the interest bearing government bonds
could be exchanged into cash (gold and silver coins) at any time. In opposite to this system the other European monarchs were well
known for their bad payment practices. Because of the solidity of the British system the merchants started to accept the government
bonds as security for private lending. The Bank of England came into the possession to issue notes (today banknotes) which were accep-
ted as means of exchange in the same was as gold after a short period of time. This happened although it was not strategically planned
by the Bank of England. Not only the gold deposits, but also the annuities in the treasure of the Bank of England were accepted as secu-
rity. Banknotes and Annuities supported each other in their function. The English government debt was monetised for the benefit of a
growing economy. Against this background it was not lucrative to pay back the government debt, because this would reduce the money
supply and the potential credit volume available for turnover in the economy. Furthermore this would mean a reduction in prosperity.
Source: Prof. Dr. Udo Hielscher, DIE FLORENTINISCHEN MONTI.
Minimum bid: € 1,700
Bank van Engeland
London, 05.06.1793, London Certificatie über Aktien
im Nominalwert von £ 500 (wörtlich: „... voor een
Somme van 500 Ponden Actien in het voorschreeve geconso-
lideerde Capitaal van Drie per Cent Bank Annuityten“),
#17217, 36,6 x 22,1 cm, schwarz, weiß, Knickfalten, Erhal-
tung VF, papiergedecktes Siegel (Papier hat sich abgelöst),
Blindprägesiegel, Text in Holländisch,
Original-Signatur von
Pieter Hendrik Hoogenbergh, absolute Rarität!
Mindestgebot: 1.700 €
