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This chapter focuses on the change in the law known as the equity of redemption, which took form in the late seventeenth century, and made the title to mortgaged land more secure through the provision that rents could be sequestered to pay off a loan after the due date, to avoid the title to the property reverting to the lender. This legal change led to a rapid expansion of mortgaging and associated conveyancing. It also demonstrates how interest-bearing loans, based on the security of property, became a source of both income and, more importantly, stable abstract value that could be used to increase the money supply by underpinning the creation of local notes and bills. Mortgage income could also smooth credit flows by providing capital when outgoings were greater than incomings. In the past this would have triggered the need to litigate to increase income, but now money could be borrowed. This chapter will also examine savings held in the form of bonds.
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