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Incredibly rare £1million Treasury Bill from 2003 that was one of the last to be printed in paper form goes on sale for £7,000

Incredibly rare £1million Treasury Bill from 2003 that was one of the last to be printed in paper form goes on sale for £7,000
  • A cancelled £1,000,000 Treasury Bill is expected to fetch £7,000 at auction
  • One of the last to be produced in paper form in 2003 for security reasons
  • Was used for short term borrowing by the Government to raise funds
  • Being sold by private collector through London auctioneers Dix Noonan Webb
A cancelled £1million Treasury Bill that was one of the last ever to be produced is to go to auction for £7,000. 
The seven-figure note was printed in 2003 and was one of the last to be produced in paper form before they were computerised for security reasons.
They enabled the Government to manage its short term borrowing policy, making sure sufficient funds were available to meet any daily cash shortage. 
When the transition was made to electronic bills, all remaining paper bills such as this one were cancelled, with several given away to staff as leaving presents.
A cancelled £1million Treasury Bill that was one of the last ever to be produced is to go to auction with London-based auctioneers Dix Noonan Webb, who expect it to fetch £7,000
A cancelled £1million Treasury Bill that was one of the last ever to be produced is to go to auction with London-based auctioneers Dix Noonan Webb, who expect it to fetch £7,000
This bill, which was issued by the Debt Management Office, a Treasury agency, states: 'This Treasury Bill entitles... payment of One Million Pounds out of the Debt Management Account on 6th October 2003 on surrender of it to the Bank of England.'
It has been stamped 'cancelled'.

WHAT IS A UK TREASURY BILL? 

Treasury Bills are short term bonds issued by the Bank of England on behalf of the UK Government to raise the sufficient funds needed to prevent everyday cash shortages.
They are issued on a weekly basis through a tender process and last for any amount of time up to a year, but most commonly for three or six months.
At a tender for a £1million bill that lasts a year, a bidder could say they wish to pay £950,000 for the bill, meaning they will receive 5 per cent interest (£50,000) over the year.
The bidding price acts as a function to indicate the interest rate expectedThe bill is being sold by a private collector with London-based auctioneers Dix Noonan Webb, who expect it to fetch £7,000.
Five per cent of the buyer's premium will be donated by DNW to the NHS Charities Together Covid-19 Appeal.
Andrew Pattison, head of department for banknotes at DNW, said: 'Until over a decade ago notes such as these were issued every week in the City under a secretive system.
'This enabled the British Government to manage its short term borrowing policy and make sure that sufficient funds were always available to meet any net daily cash shortfall.
'Today the system run by the Debt Management Office, an executive agency of the Treasury, is still in place but is computerised and no longer physically prints Treasury Bills.
'The last bills were produced in September 2003, just like this example.
'When the move was made to electronic transfer methods, any remaining bills were cancelled and several were given away as leaving gifts when staff returned or left the company.
'This accounts for the few that are now on the market, although they remain very rare.'
Treasury Bills enabled the Government to manage its short term borrowing policy, making sure sufficient funds were available to meet any daily cash shortage
Treasury Bills enabled the Government to manage its short term borrowing policy, making sure sufficient funds were available to meet any daily cash shortage
The bills were collected from the Bank of England by messengers on the day specified by the financial institutions and could be cashed in by whoever was physically in possession of them.
In May 1990, John Goddard, a 58-year-old messenger with the money brokers Sheppards, was mugged at knifepoint in a City side street.
The robber got away with 301 Treasury Bills and certificates of deposit, worth a total of £292 million.
The City of London Police and the FBI infiltrated the gang involved in laundering the bills and recovered all but two of them.
One man was jailed for his part in the crime but Patrick Thomas, the south London petty criminal suspected to have carried out the mugging, was found dead from a gunshot wound to the head before he could be charged.
The sale takes place on June 24.

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