In this example the number of decimal places in both the multiplier and multiplicand is 9; but the product confifts of only 8 figures, therefore I muft prefix one cypher on the left hand thereof, which makes the true product.

2.03271 .0056

1219626

1016355 011383176

2.20434
.43970

154 30380
1983 906
661302
88173 6

.96924 82980

Thus it appears that in multiplication of decimal fractions there is no neceffity for placing those figures of the fame value under each other, as in the two foregoing rules *.

SECT. V.

OF DIVISION OF DECIMALS.

THIS rule is alfo performed as divifion of whole numbers, but from the quotient point off as many figures for decimals as the decimal places in the dividend exceed thofe in the divifor. But if the places in the quotient be not fo many as should be pointed off for decimals, as many cyphers must be placed on the left hand as neceffary.

There is a contracted method of working both this and the following rule given by many writers on arithmetic. They are, however, not very fimple, and may very well be fuperfeded, by omitting fome of the decimals in both numbers, and working according to the general rule.

If at any time there be a remainder, and if it be required to have an answer to a greater degree of exactnefs, as many cyphers may be affixed to the right hand of the dividend as is thought proper.

Example 1. Divide 1836.88305 by 23. 15.

In the fecond example there are 4 decimal places in the dividend, and none in the divifor, therefore there must be 4 places of decimals in the quotient.

And in the third example as the number of decimal places in the divifor and dividend are equal, being 4 in each, there must be no decimals in the quotient.

Every other rule in arithmetic may be performed by decimal fractions as well as by whole numbers, as the fame rule ferves for both; thus in the rule of three direct in decimals, the fecond and third numbers are multiplied together for a dividend, and the first number is the divifor as in whole numbers; and the like may be observed of every other rule.

CHAP.

CHAP. V.

OF STOCK-HOLDING.

SECT. I.

THE NATURE OF THE PUBLIC STOCKS.

THE public ftocks of Great Britain is an invention in imi

tation of the ftate of Florence, which, in the year 1344, owing 60,000l. and being unable to pay the principal, converted the debt into a public ftock, transferable from one individual to another, with intereft at 5 per cent.: these public ftocks were called a bank or mount, and the prices varied according to the ftate of public affairs.

In imitation of this, foon after the revolution in Great Britain, the expenfes of fettling the new eftablishment, carrying on long wars on the Continent for reducing the French monarchy, fecuring the Dutch barrier, fettling the Spanish fucceffion, &c. increased to such a degree, that it was thought advisable to draw upon pofterity, rather than reduce the state by an immediate payment.

It was therefore the policy of minifters of that day to raise a public stock with transferable flares, thus converting the debt into a new species of property, for the security of which Parliament pledged their faith; and this example has been clofely followed ever fince,

This fyftem laid the foundation of what is called the national debt, to which every ftock-holder is a creditor.

Thus

Thus the property in the kingdom in idea has been greatly increased, compared to that of former times; but if we inquire into the nature of this property, we shall find it exists only in name, in paper, and public faith; but that is fuffi cient for the public creditor to rely upon, for the pledge is nothing less than the land, the trade, and perfonal industry of the fubject, from which fources the money must arife to pay the intereft; in thefe, therefore, the property of the public creditors does really exift, confequently the value of the land, the trade, and industry of the subject, are dimi. nished in-proportion as the debt increases.

To demonftrate this, if a debtor owes 100%. the creditor has a demand upon him to that amount, and though he may not call upon him for the principal, yet fo much of the debtor's eftate is always transferable to the creditor; and the fame principle holds good with regard to the public creditor.

Therefore the property of every stockholder confists in a certain portion of the national debt.

To pay the intereft, and, if required, the principal of this debt, certain taxes are appropriated: these taxes were originally feparate and diftinct funds, and each of them was a fecurity for a certain fum advanced; they were afterwards united together in three capital funds, which are the principal funds of any account, called the general fund, the aggregate fund, and South Sea fund; and the funds thus united together are become mutual fecurities for each other, and the whole 'produce of them liable to pay the intereft charged upon each.

The furpluffes of these three funds, over and above the intereft charged upon them, are directed to be at the dif pofal of the Parliament, and are ufually called the finking fund, becaufe originally defigned to reduce the national debt: to this have lately been added feveral other duties granted in later years.

This finking fund, with the other duties added thereto, is the last resort of the nation, on which muft depend all our

hopes

hopes of discharging our incumbrances. But by a ftatute paffed in the 26th year of Geo. III. Parliament vested one million annually in commiffioners for the reduction of the debt: in which act several provifions are made to prevent this fund from being appropriated to any other purpose at any future time. In confequence of this act 8,200,000l. had been redeemed in February 1792.

Since which period impofts have been applied to the fame purpose, particularly the redemption of the land-tax; and feveral new loans have been opened on different conditions.

SECT. II.

SIMPLE AND COMPOUND INTEREST.

SIMPLE intereft is the allowance made by the borrower of any sum of money to the lender, according to a certain rate per cent. per annum, which is limited by law to 5 per cent. per annum, that is, 54. for the use of 100l. for one year, and 10%. for the use of it for two years, or 10l. for the use of 2001. for one year.

Principal is the fum of money lent.

Intereft or rate is the fum agreed upon for the use of the principal.

Amount is the principal and intereft added together *.

In the courts of law intereft for money lent is computed for years, quarters of years, and fingle days. But for the intereft on public bonds belonging to the South Sea and India Companies, and the fecurities of the Bank of England, the time is generally computed in calendar months and days, and on Exchequer bills in quarters of a year and days.