Post #306

The chancellor of the exchequer actually arranged a loan of 8,000,000 through Rothschild and Baring, a loan which later became famous under the name of the Irish Famine Loan. The loan was contracted for at 89½, but the stock was repurchased at an average of 97 per cent. Thus, during six years the public had to pay 9 per cent more than they had received, or about 1½ per cent per annum. Adding this to the exact rate of interest paid—£3 7s., it appeared that this money was raised at not much under 5 per cent.