Consol (bond)
Consols was a name given to certain government debt issues in the form of perpetual bonds, redeemable at the option of the government. They were issued by the Bank of England and the U.S. Government. The first British Consols were issued in 1751. They have now been fully redeemed. The first U.S. Government Consols were issued in the 1870s.
History
In 1752 the Chancellor of the Exchequer and Prime Minister Sir Henry Pelham converted all outstanding issues of redeemable government stock into one bond, Consolidated 3.5% Annuities, in order to reduce the coupon paid on the government debt.In 1757, the annual interest rate on the stock was reduced to 3%, leaving the stock as Consolidated 3% Annuities. The coupon rate remained at 3% until 1888. In 1888, the Chancellor of the Exchequer, George Joachim Goschen, converted the Consolidated 3% Annuities, along with Reduced 3% Annuities and New 3% Annuities, into a new bond, 2% Consolidated Stock, under the National Debt Act 1888. Under the Act, the interest rate of the stock was reduced to 2% in 1903, and the stock given a first redemption date of 5 April 1923, after which point the stock could be redeemed at par value by Act of Parliament.
In 1927 Chancellor Winston Churchill issued a new government stock, 4% Consols, as a partial refinancing of the National War Bonds issued in 1917 during World War One.
Timeline of 2.5% Consolidated Stock
| Year/Date | Description |
| 1751 | Consols first issued |
| 1752 | Consolidated 3.5% Annuities |
| 1752 | Reduced 3% Annuities |
| 1757 | Consolidated 3% Annuities |
| 1855 | New 3% Annuities |
| 1888 | National Debt Act 1888 |
| 1888 | 2% Consolidated Stock |
| 1903 | 2% Consolidated Stock |
| 5 April 1923 | first redemption date |
| 1923 | 2% Consolidated Stock |