If one had bought British bonds in the 1670s (yes im really talking abt 300 yrs ago),
he really had to be careful. In 1672, King Charles II issued
a royal proclamation which was known as the Stop of Exchequer.
This suspended all payments (interest and principal) on all bonds
for the space of one year.
As with all political expediences, much effort was made to contort
the issuing statements into one of political correctness.
"[His Majesty] was was necessitated (contrary to his inclinations),
upon these emergencies and for the public safety at the present,
to cause a stop to be made for a payment of moneys... for the space
of one whole year ending the last day of December
And his Majesty was further graciously pleased to declare that nothing
could have urged his Majesty to an act of this nature but such a conjecture
of affairs when all the neighbouring princes and states were making such
threatening preparations that his government cld not be safe without
in the same posture"
This was all the more ironic when Charles II had himself declared the loans
to be super-safe in 1667 :
"We will not... permit or suffer any... Interruption to be made of our Subject's
Securities, but that they shall from time to time receive the Money's so secured
upon them".
Such language reminds me of tt which the US uses today to urge the world's investors
(China in particular) to continue buying its bonds.
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