Consols (originally short for consolidated annuities, but can now be taken to mean consolidated stock) are a form of British government bond (gilt), dating originally from the 18th century. A government bond is a bond issued by a national government denominated in the country's own Currency. Gilts are bonds issued by the governments of the United Kingdom, South Africa, or Ireland. Consols are considered one of the rare examples of an actual perpetuity, although they may be redeemed by the issuer. A perpetuity is an annuity that has no definite end or a stream of cash payments that continues forever

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. Year 1752 ( MDCCLII) was a Leap year starting on Saturday (link will display the full calendar for European countries but not Great Britain) of The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all Economic and Financial This article is about the government position For other uses see Prime Minister (disambiguation. Henry Pelham ( 25 September 1694 &ndash 6 March 1754) was a British Whig Statesman, who served as Prime 5% Annuities, in order to reduce the coupon rate paid on the government debt. The coupon or coupon rate of a bond is the amount of interest paid per year expressed as a percentage of the face value of the bond

In 1757, the coupon rate on the stock was reduced to 3%, leaving the stock as Consolidated 3% Annuities. Year 1757 ( MDCCLVII) was a Common year starting on Saturday (link will display the full calendar of the Gregorian calendar (or a The coupon rate remained at 3% until 1888. Year 1888 ( MDCCCLXXXVIII) was a Leap year starting on Sunday (click on link for calendar of the Gregorian calendar (or a In 1888, the Chancellor of the Exchequer, George Joachim Goschen, converted the existing Consolidated 3% Annuities, along with Reduced 3% Annuities (issued in 1752) and New 3% Annuities (1855), into a new bond, 2¾% Consolidated Stock under the National Debt (Conversion) Act 1888 (Goschen’s Conversion). George Joachim Goschen 1st Viscount Goschen ( 10 August 1831 &ndash 7 February 1907) was a British Statesman and Year 1752 ( MDCCLII) was a Leap year starting on Saturday (link will display the full calendar for European countries but not Great Britain) of Year 1855 ( MDCCCLV) was a Common year starting on Monday (link will display the full calendar of the Gregorian Calendar (or a Common year As part of the terms of the Act, the coupon rate of the stock was reduced to 2½% 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. Events 456 - St Patrick returns to Ireland as a missionary bishop Year 1923 ( MCMXXIII) was a Common year starting on Monday (link will display the full calendar of the Gregorian calendar. Par value, in Finance and Accounting, means stated value or face value. An Act of Parliament is a Law enacted as Primary legislation by a national or sub-national Parliament.

Consols still exist today: in their current form as 2½% Consolidated Stock (1923 or after), they remain a small part of the UK Government’s debt portfolio. As the bond has a low coupon, there is little incentive for the government to redeem it. Unlike most gilts, which pay coupons semi-annually, because of its age Consols pay coupons four times a year. Also, as a result of its uncertain redemption date, they are typically treated as a perpetual bond. A perpetual bond, which is also known as a Perpetual or just a Perp, is a bond with no Maturity date.

Given their long life, references to Consols can be found in many places, including literature (such as David Copperfield by Charles Dickens, Howards End by E. M. Forster, Vanity Fair by William Makepeace Thackeray and The Forsyte Saga by John Galsworthy) and in economics. David Copperfield or The Personal History Adventures Experience and Observation of David Copperfield the Younger of Blunderstone Rookery (which he never meant to publish Howards End is a Novel by E M Forster, first published in 1910, which tells a story of class struggle in turn-of-the-century England Edward Morgan Forster OM, CH (1 January 1879–7 June 1970 was an English novelist Short story writer Essayist, and Librettist Vanity Fair A Novel without a Hero is a Novel by William Makepeace Thackeray, first published in 1847-48 that satirizes society in early William Makepeace Thackeray (ˈθækərɪ 18 July 1811 – 24 December 1863 was an English Novelist of the 19th century The Forsyte Saga is a series of three Novels and two interludes by John Galsworthy. John Galsworthy OM (ˈgɔːlzwɝːðɪ ( 14 August, 1867 — 31 January, 1933) was an English Novelist and Economics is the social science that studies the production distribution, and consumption of goods and services.