The Express.
London, England, 1863-10-19 00:00:00

THE NEW PORTUGUESE LOAN.

The prospectus of the expected Portugnetie
Three per Cent. Loan was issued late on
Saturday evening, through Messrs. Stern Brother*.
The amount is 2,500,0001. of stock • but Of
this 1,000,0001. is already subscribed for,
and 250,0001. is reserved for Portugal, so
that applications are now invited for only the
balance of 1,250,0001. The price of issue is 481.
per cent.; but as this 'includes nearly 1 per cent. of
aoorued interest, and as the discount on the instal-
ment is equivalent to a further allowance of per
cent., the net price is about 461. As compared with
the present quotation (491 to likewise inclusive
of interest from the Ist July last) of the existing
Portuguese stock, this is estimated to give to
the subscriber to the present loan a clear mar-
gin of about 2 per cent. Considering the
small amount of the loan, the solid nature
of the security, and the comparative freedom of
Portuguese stock from fluctuation, this margin is
doubtless sufficient It must also be borne in mind
that the price of Portuguese securities has been
kept down for some time past mainly by the anti-
cipation of the present bums, in preparation for
which Dutch capitalists have during the last few
months sold in this market large amounts of the
stock which they ordinarily hold. At 461 this loan
gives an interest of Of per cent. par annum,
which, under the circumstances, may be regarded
as a fair rate of return. At this price the cash
proceeds of the loan will be altogether too
small to produce any appreciable effect upon
our money market. It will not be necessary to
send out any gold, the bulk of the money being
due in this country on railway contracts. One
recommendation of the loan is certainly the legiti-
mate nature of the object—namely, the completion
of railways and of roads communicating with rail-
ways—for which it is raised. There is abundant
evidence that a great impulse has been given to the
prosperity of the country, as well as to the govern-
ment revenues, since the opening of the railway
system. As one proof of the utility of the rail-
ways, referenco may be made to the increasing
exports of cattle and of many kinds of produce
which have hitherto been virtually sealed up in
the interior. The future advantage to the govern-
ment will probably be very great, the present
ratio of taxation in Portugal being very light—
only about 18s. per head of the population. The
investments of the Portuguese public in their own
securities form another satisfactory feature. It is
estimated that within the last twelve months
Portuguese capitalists have taken from the English
and Dutch markets no less than 1,500,0001. of stock.
The result is that, of the last loan of 5,000,0001.
stock, introduced here in July, 1862, not more than
1,000,0001. is estimated to be now held is England,
all the rest having gone either to Portugal
or Holland. Recent advice@ show that about
2,000,0001. worth of land belonging to the convents
; has still to be sold, in addition to rent charges on
lands belonging to the communes, which are valued
at a total of 4,000,0001. The proceeds of the sales
are invested for the benefit of the religious esta-
blishments and communes in Portuguese interior
stock, with reference to which it is to be borne in
mind that a holder of Portuguese foreign bonds
may at soy time, if so disposed, convert them into
interior stock.

Annexed is the low prospectus in full. The lid
closes on Wednesday next :
roams= 3 rxs carr. iAas or 1853r-son 2,500,0004

STOCI, sone op 1001. ADD 5001. 'Ace.

Mem% Steia Brothers beg to announce that the govern.
meat of his Majesty L1'811..114; of Portugal hariog bees autho-
rised by the laws of the Cates of the sth sod Wth of May,
MO, sod the 301 et July 1383, to raise the hada minima for
the construction 'f the ail:meat railways sod public works
SUMO Iliftiil7o.4 libieb ere to be completed by the end of
Jane, 1864, sod a dettee of Ws llsiesty, dated the 2ed of
Oetehor, 1863, bred ea the above authority, bowleg tees
issued for the emotion of Z5(10,0001. of 3 per met Moak
they have soured tab • eattrect for the oegotiatioa of the
seam 21,000,81X1 of tile loss are dread y subeeribed far,
290,000 f. are marred for Portugal, mai Meows. OM
BMW'S an ass paperedmaim *Minikes Om the