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CONSOLS, Eng. law. This is an abbreviation for consolidated annuities. Formerly when a loan was made, authorized by government, a particular part of the revenue was appropriated for the payment of the interest and of the principal. This was called the fund, and every loan had its fund. In this manner the Aggregate fund originated in 1715; the South Sea fund, in 1717; the General fund, 1617 and the Sinking fund, into which the surplus of these three funds flowed, which, although destined for the diminution of the national debt, was applied to the necessities of the government. These four funds were consolidated into one in the year 1787, under the name of consolidated fund.
     2. The income arises from the receipts on account of excise, customs, stamps, and other, perpetual taxes. The charges on it are the interest on and the redemption of the public debt; the civil list; the salaries of the judges and officers of state, and the like.
     3. The annual grants on account of the army and navy, and every part of the revenue which is considered temporary, are excluded from this fund.
     4. Those persons who lent the money to the government, or their assigns, are entitled to an annuity of three per cent on the amount lent, which, however, is not to be returned, except at the option of the government so that the holders of consols are simply annuitants.

References in classic literature ?
This year Helen came of age, and exactly the same thing happened in Helen's case; she also would shift her money out of Consols, but she, too, almost without being pressed, consecrated a fraction of it to the Nottingham and Derby Railway.
She sang Handel and Haydn to the family of evenings, and engaged in a large piece of worsted work, as if she had been born to the business and as if this kind of life was to continue with her until she should sink to the grave in a polite old age, leaving regrets and a great quantity of consols behind her--as if there were not cares and duns, schemes, shifts, and poverty waiting outside the park gates, to pounce upon her when she issued into the world again.