Transcript: Sir Francis Baring (1738-1810) to PC Labouchère, 21 April 1803
21 April 1803
Enclosed you will receive copy of what we write to Mr A and our friend will forward the few preceding lines which have passed, and which will assist you in rendering the whole intelligible. As I consider the means of communication to you, and to Mr A perfectly safe, I write without reserve. I view the plan in the first instance upon this principle, that it cannot be bad, to the extent of our powers, to keep or retain without sales.
The P.O. reduced by our comm to 85 produces 5%. This object suppose it costs 77½ also produces 5%. Ergo (although both are good) yet the last is the best with regard to security, you prefer the first; I prefer the last. These opinions will facilitate an arrangement between us at the conclusion, for I shall be ready to keep as much of the last as my powers are equal to; and at all events to exchange whatever I may have in the P.O. against the other, and so vice versa, as it regards yourselves.
We shall have two securities of different descriptions to offer for sale and it is incumbent for us to drive the nail that will go, and as far as it will go; for whatever funds are released will strengthen the powers of our united houses. As we are embarked on a common cause, and I must get through as well, and particularly as fast as we can. For I am satisfied if we manage this business well, we shall have frequent occurrence to us on circumstances or events which must arise, and keep the ball at our feet for many years to come.
If we conclude with Mr Bingham, it is probable that Mr A may follow the business, cross the ocean once more for the following reasons:
1st - To compleat the agreement in a regular manner
2nd -To be on the spot in case Mr Bingham is disposed to repurchase
any part of our engagement because he is averse to foreign debt and
as they engage to pay the interest in Europe at their risk it
thereby constitutes in reality a foreign debt.
3rd -To act in case some arrangement can be made similar to that of
Pichon or to deliver provisions etc at St Domingo
The first is of extreme importance, the two last may become so, and if it doth not enable us to make considerable progress, at least it may furnish the means of facilitating the business.
Whilst we contemplate an agreement of this magnitude we also look forward to the means of realising our views in every respect. For this purpose you need not embarrass yourselves by the 2nd or 3rd points above mentioned which will be attended to by Mr A, nor to what relates to this place, which has been already fully considered, but I think you may look forward to your own, and for that purpose two objects occur to me:
1st - That you should sell the real certificates, and you must
have opportunities at periods when the instalments of the old Loan
are discharged, a circumstance which must create confidence and
consequently a demand.
2nd - You may consolidate a certain amount of those certificates; I
found thereon a subordinate loan in the Dutch manner.
You will perceive that we can stipulate for the interest to be paid at your place or this, as we think proper, and which will enable you to execute one or both of those plans in a regular way.
The Baring Archive Reference: NP1.A4.0