or PUBLIC FUNDS in England. By the word stock was originally meant a particular sum of money contributed to the establishing of a fund to enable a company to carry on a certain trade, by means of which the person became a partner in that trade, and received a share of the profit made thereby, in proportion to the money employed. But this term has been extended farther, though improperly, to signify any sum of money which has been lent to the government, on condition of receiving a certain interest till the money is repaid, and which makes a part of the national debt. As the security both of the government and of the public companies is esteemed preferable to that of any private person, as the stocks are negotiable and may be sold at any time, and as the interest is always punctually paid when due; so they are thereby enabled to borrow money on a lower interest than what could be obtained from lending it to private persons, where there must be always some danger of losing both principal and interest.
But as every capital stock or fund of a company is raised for a particular purpose, and limited by parliament to a certain sum, it necessarily follows, that when that fund is completed, no stock can be bought of the company; though shares already purchased may be transferred from one person to another. This being the case, there is frequently a great disproportion between the original value of the shares and what is given for them when transferred: for if there are more buyers than sellers, a person who is indifferent about selling will not part with his share without a considerable profit to himself; and on the contrary, if many are disposed to sell, and few inclined to buy, the value of such shares will naturally fall in proportion to the impatience of those who want to turn their stock into specie.
A stock may likewise be affected by the court of chancery; for if that court should order the money, which is under their direction, to be laid out in any particular stock, that stock, by having more purchasers, will be raised to a higher price than any other of the like value.
By what has been said, the reader will perceive how much the credit and interest of the nation depends on the support of the public funds. While the annuities and interest for money advanced is there regularly paid, and the principal insured by both prince and people (a security not to be had in other nations), foreigners will lend us their property, and all Europe be interested in our welfare; the paper of the companies will be converted into money and merchandise, and Great Britain can never want cash to carry her schemes into execution. See the article FUND.
frame erected on the shore of a river or harbour, whereon to build shipping. It generally consists of a number of wooden blocks, ranged parallel to each other, at convenient distances, and with a gradual declivity towards the water.
wooden machine to put the legs of offenders in, for securing disorderly persons, and by way of punishment in divers cases, ordained by statute, &c.