He suggests that there is a saving of as much as 25% per annum in interest during times of a normal Bank Rate. I do not myself Bee how he arrives at this figure. He had already stated that
the acceptance of the London acceptor could be discounted usually at 1% per annum below Bank Rate. The commission habitually charged by the Acceptance Houses for this business is for three months, or at the rate of 2% per annum. Assuming with a Bank rate of 5% per annum, the three months acceptance could be discounted at 4; per annum, and adding the commission of 2% per annum, the total cost comes out at 6% per annum.
I believe that the Bastern Banks' charges for advances on these documentary bills varies between 7% per annum and 6 per
annum. I have assumed for this calculation that the usual rate
at which the London acceptance could be discounted, is 1 below
Bank Rate, but I am inclined to think, however, that the Bank of England rate in recent years has approximated much more nearly to
the discount rate than this.
Percy Ashley Esq.,
Board of Trade,
Gwydyr house,
Whitehall.
Believe me,
(SIGNED)
Youre very truly,
Fredk. Huth Jackson.
DRAFT.
Mr.
Mr.
Bart...
Bort. 24728 Hory Kony. 181
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