o General
| | Account.
+------------------+---------------
Total indebtedness | L207,447 | ----
------------------------------------+------------------+---------------

The circulation of these Notes in the Island to-day is, if nothing more,
an interesting relic of an interesting financial policy which certainly
was in vogue in Guernsey for over 20 years (1816-1837).

The mystery surrounding the abrupt catastrophe is yet undeciphered and
is likely to remain so, as there seems no material from which to glean
what took place during those few but momentous days between the 21st
September and 9th October. Was there treachery? was it but the
inevitable fate of the "best-laid schemes o' mice and men"? or was it a
unique and deplorable economic tragedy?

APPENDIX

We have not yet discovered anything with reference to a successful plan
at Bath to which Daniel de Lisle Brock here alludes (see page 40). We
assume the reference to Liverpool is to the fact that during a time of
financial panic the Liverpool Corporation was empowered by Statute 33,
Geo. III., c. 31 (10th May, 1793), to issue notes of L5, L10, L50 and
L100 for value received or other due security.

This Act entitled "An Act to enable the Common Council of the Town of
Liverpool in the County of Lancaster on behalf of and on account of the
Corporation of the said Town to issue negotiable notes for a limited
time and to a limited amount," was passed after the Corporation of
Liverpool had failed to obtain a loan of L100,000 from the Bank of
England.

The L50 and L100 notes bore interest not exceeding the lawful rate and
at 12 months' date. The L5 and L 10 notes were payable to bearer on
demand without interest. The total issue was at no time to exceed
L300,000. Returns had to be forwarded to the House of Commons from time
to time. From one of these returns we learn that the notes issued to
28th February, 1795, amounted to L140,390, based on security valued at
L155,907 16s. 6d. In a report forwarded 23rd April, 1794, it was stated
that L52,985 worth of notes were in circulation at that date.

Great care was taken in the issue of the notes. The Committee of the
Corporation that was responsible for the same met daily.

In order to give a wider utility to the notes, London correspondents
were appointed and a large number were made payab