e half, by payments of L250 at a time,
and this free of expence and in exchange for States' Notes.

The above agreement to remain in force until three months notice be
given by either party to the others to annul the same.

We remain respectfully, Sir,

_Signed_ for Priaulx, Le Marchant & Co.
Thomas D. Utermarck,
Abraham J. Le Mesurier.

For the Commercial Banking Co.,
H. D. G. Agnew }
T. De Putron } Managers.'

"And asked M. Le Bailiff to reply as follows:--

'Court House, Guernsey,
9 Oct., 1836.

Gentlemen,

The Committee named by the States on the 21st September for the purpose
of conferring with the Banks which you represent, on the subject of the
one pound notes current in this island, have taken into consideration
the proposals which you have transmitted to them, under yesterday's
date, 8th Oct.

The Committee adopt those proposals as the basis of the arrangement so
desirable to be entered into, and from this day to be in force between
the States and the Banks.--They do so, because the States may at any
time, within 3 months, release themselves from the obligations which
that arrangement imposes; and above all, because the sacrifice of
pecuniary gain on the part of the States which it may deem to occasion,
will be more than compensated by the harmony and good feeling which it
will tend to promote among the inhabitants, and which constituting the
chief happiness of a well regulated community, can hardly be too highly
estimated.

With sentiments of a like friendly nature, sincerely entertained by the
Committee towards yourselves, and the rest of their fellow citizens,

I have the honour to be, Gentlemen,

Your obedient humble servant

Daniel De Lisle Brock,
President of the States' Committee.'

"In consequence of this arrangement the Committee decided that L10,000
sterling of the total one pound notes in circulation on account of
Fountain Street should be withdrawn as a Savings Bank loan at an
interest of 3 per cent. per annum. Also that five thousand of those
forming part of the old debt, called the Permanent Debt, should be
withdrawn to be converted into obligations at 3 per cent. per annum."

In the discussion at the States Meeting on a proposition to authorise
the payment of a sum spent on repairs to the coasts, there were
references by three Members of the States to the fact that the
expenditure of the States would be increased by having to pay interest
on the 15,000 L1 n