The Express.
London, England, 1867-04-22 00:00:00

NIGH WATIR LONDON WDOL

ITO 2441—.—"Attarnoos7 46 190.
TO-MOlLlOW—Moihtms, 46 3404......Aften500n, Ott :uq

LONDON, MoNDAY, APRIL 22.

TRIG past week has been marked by a further
general disturbance in the stuck markets of
Europe. Warlike rumours, apparently put forth
to be contradicted on the morrow, and then con-
firmed the day after, have caused an incessant
series of violent fluctuations, in which the specu-
lators on foreign bourses especially delight, and
by which they make their profit. It would be
impossible to prevent the movement from extend-
ing to this country, and since the result abroad
has been to occasion a general fall, so also have
some of our best securities been sympathetically
depreciated. It is nevertheless satisfactory to
know that, however much public confidence may
be shaken in the merits of the miscellaneous
class of investments, whether railways, foreign
bonds or shares, the Government funds are in
steady favour. The universal distrust has at all
events caused Consols to be in increased demand.
Every now and then the depression on the Conti-
nental exchanges causes a fall here, but it is
entirely due to speculative operations. Bond
fide investors are not thereby deterred, but rather
take advantage of the decline to effect their
purchases on the best terms, and thus the
price for immediate delivery is equal to,
if not higher than, that for the next
account. Although this may betoken a com-
mendable degree of prudence on the part of the
public generally, still it possesses drawbacks. In
times like the present, just caution is apt to de-
generate into unreasoning timidity, and there ap-
pears too much ground for believing that the
latter sentiment is fur the moment uppermost.
It cannot be disputed, however, that the critical
position of European politics would warrant almost
any amount of uneasiness.

As regards ourselves, the effect will chiefly be
seen in the heavy reduction in all kinds of foreign
stocks. It would, of course, be only natural to
suppose that securities of such doubtful value as
Spanish Passive and Certificates, Greek, or Vene-
zuela Bonds should lose the comparatively small
valuein which they werepreviouslyheld. Asregarda
Spain, it was indeed pretty well understood already
that the Passive and Certificate holders had little
or no chance of getting their claims recognised
except upon " the basis of a readjustment of
" the National Debt," or, in other words, of
raising by hook or by crook a new loan. Under
the best circumstances this would prove by no
means a practicable operation, and may be now
considered out of the question when we are threat-
ened with a continental war, and Spain herself is
engaged in a serious and, since the case of the
Tornado is not yet adjusted, but half-terminated
dispute with England. Though Greece makes no
advance towards the payment of her debt, it may be
admitted that from time to time we are promised a
reorganization of the national finances, with of course
the indispensable preliminary of a fresh loan.
Venezuela we may dismiss from our minds at once,
although it must be owned that the rulers of that
Republic have shown a financial capacity far higher
than displayed by any other Spanish-American
State. Venezuela has gone upon the straightfor-
ward principle of getting the very utmost out of
the foreigner at the least possible cost, and she has
succeeded admirably. First one loan is raised,
securities are pledged, and all goes on well for a
time ; then little difficulties occur, the revenues are
required for urgent purposes, and dividends fall
in arroar. Tho Government makes the best
offer it can to its creditors, and the debt is
readjusted upon an equitable basis, which means
that the public creditors are cajoled into taking
deferred bonds for part of the money owing to
them, and abandoning the rest altogether. Of
course a new loan comes out immediately after-
wards, specially secured, it need not be said,
upon which the dividends are punctually paid,
more so than on the original stock. A year or so
more witnesses the advent of another fresh loan,
also specially secured, and as far as official
signatures and seals, and diplomatic and notarial
testanmrs can go, a perfect model of solidity. The
guarantees are, indeed, almost too perfect. Some-
how or other the dividends on the previous stocks
fall, from unavoidable necessity, in arrear ; yet
those on the last loan are rigidly met. The
Finance Minister probably wants to make a fresh
issue of bonds on the European markets ; but
the times are &decree, and it is evident there is
nothing in that way to be done. Venezuela takes
the best course available ; she does not repudiate
her liability openly, but she pays nobody, which
comes to practically the same thing. At the same
time she takes care to maintain a character for
integrity by vaguely acknowledging her liabilities
—on paper. In this respect Venezuela has pro-
fited from the contrary example of Spain.
But if these countries should incur the dis-
credit which they certainly richly deserve, it is