charged with rigid punctuality they came to be considered
and accepted substantially at par, with a resultant large
saving to the Government.

Of the navy bills outstanding when he assumed office Pitt
funded into 5% stock £6,400,000 in 1785 and £9,800,000 in
1786, giving for each £100 debt £107 10s 6d in the first in-
stance and £111 8s in the second. Pitt was desirous of com-
pleting the entire transaction in 1785, but in deference to the
views of the bankers spread the operation over two years.
In view of his later change of policy in that respect it is of
interest to note his statement to Parliament, "that a fund at
a high rate of interest is better to the country than those at
low rates; that a four per cent. is preferable to a three per
cent. and a five per cent. better than a four." He explains--
"the reason is that in all operations of finance we should al-
ways have in view a plan of redemption. Gradually to redeem
and to extinguish our debt ought ever to be the wise pursuit
of government. Every scheme and operation of finance
should be directed to that end and managed with that view."

Former ministers had made the placing of loans a source
of patronage. Pitt resolved to consult the public interest
only. He gave notice through the Governor and the Deputy-
Governor of the Bank that he was ready to contract for the
loan with those who would offer the lowest terms. Sealed
tenders were required. He thus established a salutary prece-
dent which has been followed in connection with all sub-
sequent loans not offered at fixed prices. It may be noted in
passing that the purchasing of army supplies was placed by
him on a similar competitive basis, thus ending scandalous
practices of long standing.

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