Were the India company now, 1766, to purchase the renewal of their charter for 14 years, what a sum might be expected from it! Yet the value given for the grant they then obtained did not exceed 30 000_l._ because the other annuities of 3 _per cent._ were sold at that time for 97_l._ or, in the language of the funds, at 3_l._ premium for every 100_l._ subscribed; and this so early in the war as 1743. The practice of borrowing upon premiums had taken place in Queen Anne’s reign, and has of late years been very common. The credit of Great Britain is so firmly established, that in whatever way government inclines to borrow, the money’d men are willing to lend, provided the loan be made at the then rate of interest. To avoid therefore the establishment of funds at different rates, in proportion to the fluctuations of money, the bargain is made at one determinate interest. Suppose, for an example, 3 _per cent._ Then, according as it is found to rise above that rate in the market, a premium is paid out of the money subscribed; as in this case 3_l._ was paid out of the 100_l._ subscribed; that is, the subscriber retained it, and obtained his 3_l._ annuity, for the payment of 97_l._ so this remained a 3 _per cent._ loan, instead of being, as it really was, at 39⁄97 _per cent._ and was sold and transferred as every other 3 _per cent._ without occasioning any perplexity. As the war continued, interest rose, from the demand for money, when the supplies became deficient. The year following, viz. 1744, this manifested itself, by the conditions offered by government, which were: That, of two millions to be borrowed at 3 _per cent._ as before, upon the whole sum, 1 500 000_l._ should be formed into perpetual annuities, and the remaining 500 000_l._ into a lottery, consisting of 50,000 tickets, to be sold at 10_l._ each. The original subscribers to this loan subscribed therefore 10_l._ for the ticket, and 30_l._ for the annuity, in all 40_l._; for which they were to receive 3 _per cent._ But the premium consisted in this; that every subscriber for 10 tickets, that is, 400_l._ of the total fund, had an annuity for life given to him of 4_l._ 10_s._ This made five thousand annuities on lives, of 4_l._ 10_s._ each, or 22 500_l._ a year to be added to the interest of 3 _per cent._ on the two millions, that is, to 60 000_l._ a year of perpetual annuities. So that the whole loan of two millions this year cost government 82 500_l._ of interest, or 4⅛ _per cent._; 22 500_l._ of which was to extinguish with the lives of the subscribers.