Consols

English Law: Consols in the Past

This is an abbreviation for consolidated annuities. Formerly when a loan was made, authorized by government (see more about this popular legal topic in the U.K. encyclopedia), a particular part of the revenue was appropriated for the payment of the interest and of the main. This was called the fund and every loan had its fund. In this way the Aggregate fund originated in 1715; the South Sea fund, in 1717; the General fund, 1617 and the Sinking fund, into which the surplus of these three funds flowed, which, although destined for the diminution of the national debt, was applied to the necessities of the government. These four funds were consolidated into one in the year 1787, under the name of consolidated fund.

Developments

The income arises from the receipts on account of excise, customs, stamps and other, perpetual taxes (see more about this popular legal topic in the U.K. encyclopedia). The charges on it are the interest on and the redemption of the public debt; the civil list; the salaries of the judges and officers of state and the like.

Details

The annual grants on account of the army and navy and every part of the revenue which is considered temporary, are excluded from this fund.

Other Aspects

Those people who lent the money to the government (see more about this popular legal topic in the U.K. encyclopedia) or their assigns, are entitled to an annuity of three per cent on the amount lent, which, however, is not to be returned, except at the choice of the government (see more about this popular legal topic in the U.K. encyclopedia) so that the holders of consols are simply annuitants. [1][rtbs name=”history-of-english-law”]

Resources

Notes and References

1. Partialy, this information about consols is based on the Bouvier´s Law Dictionary, 1848 edition. There is a list of terms of the Bouvier´s Law Dictionary, including consols.

See Also