The Express.
London, England, 1851-07-22 00:00:00

111

141 * ez Lt

I have now to transmit to the committee matter that will
I am sure both surprise and astonish them it is contained
in the note of the Finance Minister, dated the Ath inst., of
which enclosed is a copy. All the previous solemn acts of
the executive, all the fair promises of the minister, are set
at nought. The minister tells us the funds ordered to be
set apart for the foreign creditors have been made use of for
other purposes. Ile refers all to the miscuing financial year;
proposes to capitalise the armee interest ; to apply the sum
in London as a partial payment, so as to begin what he calls
"a new account " with the new financial year; his :mim-
ing being, incredible as it must appear to the committee,
that interest shall henceforward he computed from the Ist
of July next,so th tt the half-yearly payments may be made
on the Ist of January and Ist of July of each year. My
reply to this note, dated the 20th, was put into the hands
of Senor Gellintau on the morning of the 21st. I beg to
enclose a copy, and to refer the committee to it, to avoid a
repetition of what I therein point oat as the real cause of
this state of things in the financial department. Although
I would fain believe that the :100,000 dollars assigned by
Congress, and based upon the extraordinary contribution to
go into operation (as respects creditors) on the let proximo,
will be duly appli.d to the payment of the bondholders (us I
have been assured it will), I dare not venture to say that
implicit confidence may be placed in it. Nothing short of
solid proofs eau now satisfy. Considering that the capita-
lisation of the arrear interest has Income a matter of neces-
sity, and that the 500,000 dollars are sufficient for that
object in the approaching financial year to cover the cur-
rent interest of 3: per cent. 1 have, after mature delibera-
tion, determined to meet the minister's offer to capitalise,
deeming the opportunity a fitting one for bringing him into
reasonable terms; and I trust the committee will agree in
the propriety of my so doing
Supposing a continuance of order and tranquillity, the
next three or four months will furnish evidence of the in-
tentions of the administration towards the bondholders.
Should the result be unsatisfactory, it will then be for the
committee to determine the steps to be pursued
(Signed) 11. J. Loan.
Here follows the translation of the letter addressed by the
Minister of Finance to Mr. Lord

Caracas, Bth June, 1831.
Sir,—We have received in our department your letter of
21st ult., inclosing the documents marked Noe. 1 and 2,
containing dates and observations about the foreign debt of
the republic, both active and deferred, by which it appears
that there is owing to your constituents 1,200,913 dollars,
for interest upon the active debt up to April last—a sum
which should not have reached this magnitude, if it had not
been for the political convulsions of 1818 and 1849, whereby
government was obliged to make use of almost the entire
fourth part of the ordinary duties which had been destined
for the public credit. This bit uation unfortunately conti-
nuce, and it has not been possible, up to the present time,
to cover the most urgent expenses of the state. In OMAN.-
quence of this penury of the national treasury it will only
be possible, during the ensuing financial year, to dispose of
the fund, raised by the extraordinary contribution, in order
to satisfy the current interest of the foreign and domestic
debt, as also to any payment that may be made on account
of interest owing at present to the foreign bondholders.
His Excellency the President of the Republic wishing,
however, to satisfy the national creditors, and to establish
their confidence in this administration, will be ready to'
enter into some arrangement to facilitate the gradual liqui-
dation of the above bum, so as to yield, in the meanwhile, a
moderate interest to be paid punctually, along will, the
current interest, remitting the whole to Loudon as you
indicate. With regard to the 12,4001. now in the Bank of
England, they shall be placed at your disposal to liquidate
wherewith the interest due from Ist of April to the 30th
instant, in order that we may begin on the Ist of July a
new account relatively to the past and the future. And in
order that there may be no delay iu this business, I am
ready to confer with you on the subject as often as you me.y
wish, until the final settlement of the matter.
I am, &c. (Signed) Peterto C. GELLINEAC.
[Mr. Lord's reply to the foregoing letter will appear to-
morrow.]

The half-yearly dividend on Netherlands Two-
and-a-Half per et nts. is payable to-day. By the
financial statement just published it appears that the
revenue for the six months just Ended shows a con-
siderable increase.

The New Granada papers contain a statement
that the government is about to raise a temporary
loan of 400,000 dollars, and that, if the loan be lint
effected within a short time, it will be made a forced
loan.

It is noticed in the Valparaiso papers that such is
the effect of the increasing credit of the government
of Chili, from its financial measures towards the
foreign bondholders, that it is now able to raise, on
low terms, from the native capitalists, the 100,litith..
loan for the customs stores, and the loan fur the
and Valparaiso Railway.
The proposals of the Mexican government are—
I. To appropriate to the rest: of the government the
amount of the American indemnity money destined
to the home creditors, and the wh.ole of which it is
confidently asserted the government has already used
up. 2. 7o establish a constnuption duty to be paid
at once for the whole federation. 3. To impose a
direct tax on cotton goods manufactured in the
country. 4. To increase the amount of circulation
and export duty on coin. The impolicy of these
several measures is admitted by the most competent
authorities, and their inadequacy to afford the requi-
site resources is strongly questioned. No one
imagines the consune, project will work well ; an
excise on cotton manufactures must produce the I
greatest dissatisfaction., and as to increasing the ex-
port tax on coin, it is fo be observed the present tax
is high enough to encourage smuggling, as the
Mexican committee have lately borne witness. I
.

At the meeting of the Union Bank of Au%tralia,
likewise held yesterday, a very satisfactory report was
presented, and a dividend declared of G per cent. per
annum, besides a bonus of 10s. per share. The
reserve fund is now 81,86.1/., or very nearly 10 per
cent. on the paid-up capital.
While the Gresham Committee throw cold water
on Mr. Paxton's plan for covering the uncomfortable
area of the Royal Exchange, it is worthy of remark
that the committee of the model Bourse of Antwerp
have decided on glazing that area, the covering
being decorated with a map of the world.
The subjoined calculations show the rate per cent.
per annum yielded by the various securities cited at
the average of the prices which ruled yesterday.