The Express.
London, England, 1867-02-25 00:00:00

BRITANNIA.

Tutu EvENDin, THE LAST LINK OF LOVE.—To conclude
ulth THE PRINCESS Or THE PEARL ISLAND ; JR, THE
THREE KINGDOMS OF PEARL, GOLD. AND SILVER.
Lane 6; Shia Jacobs.—Geens .f Melody ; Vint-rate Pantointmista.

RION WATER AT LONDON BRIDOIL
Tin DAT —Morning, a. ftm......Afternoon, Sb. me.
To.liolutow—Morning, 6b. 48m......Afternoon, 71A. Dot

LONDON, MONDAY, FEBRUARY 25.

THE distrust which has so long prevailed among
the investing public shows little signs of allevia•
tion. By some strange fatality each step towards
recovery is checked by some unexpected circum-
stance which—sometimes with reason, sometimes
without—causes a renewal of suspicion. The
latest instance has been exemplified in the case of
the new Chilian loan. It will be remembered
that this operation involved the issue of stock to
the nominal amount of 2,000,0001., but the
actual cash to be raised was little more than
1,600,0001. The terms granted were favourable,
and the investment appeared so desirable that the
subscriptions were eight times more than the sum
required. Tho scrip commanded a fair pre-
mium, when it suddenly became known that
the Chilian Government had some time
ago sanctioned the conversion of about a
million of local stock into bonds, payable
in sterling in London. The transaction was simple,
and could not possibly prejudice the value of the
security recently accepted by the English public.
Yet alarm was instantly taken ; the scrip fell from
a premium to a discount ; and although there seems
not the slightest ground for a charge of breach of
faith, the public have some lurking idea that one
has been meditated.

All this might have been easily obviated if the
Chilian Government had thought of specially com-
municating this particular operation to the con-
tractors. It was a mere oversight; but oversights
become of great importance in these days. There
is no question that if the fact had been published
of a million additional stock being about io be
converted from an internal to an external debt,
it would have made no appreciable difference in the
number of the applications for the 2,000,0001.
loan. There was, unhappily, an air of conceal-
ment about the measure which certainly was never
intended. So sensitive is the public temper
at this period, that it was at once
taken for granted that some sort of deceit had
been contemplated. No conclusion could be
more unjust, Chili having been among the most
scrupulous of Governments in maintaining good
faith towards the foreign creditor. Nevertheless,
such is the impression, and it bids fair to affect all
new foreign loans alike. Certainly the project
immediately following the Chilian operation seems
to have been damaged by a slight error of judg-
ment, which could have no possible connection
with it. The Danubian Principalities are rising
in European importance ; their commercial posi-
tion is equally advancing as one of the chief corn
exporting countries in the world, and their public
debt is very small—little more that 900,0001.
abroad. The Government, even in times of severe
financial pressure, have steadily carried out their
engagements. There does not, therefore, appear
one element to be wanting to place the national
credit on the strongest basis. They asks mode-
rate loan—about 1,300,0001. stock nominally,
or 870,0001. in actual cash—amply secured by
the State domains and the customs
duties—in the latter case subject to a
comparatively small first charge for the
loan already existing. This proposal was at
first well received, and subscriptions were sent in
for the whole amount in London alone, without
including whatever may have been applied for
abroad. Almost simultaneously with the closing
of the list public attention happened to be pro-
minently drawn to the conversion of the million
internal stock of Chili. The result was that some
persons are said to have immediately withdrawn
their applications, while it is certain that many
others on receipt of their allotments at once sold at
any price. The example of unreasonable appre-
hension thus shown in the affairs of the Chilian
and Danubian loans can scarcely be surpassed.
From these indications it appears not very pro-
bable that the other foreign Governments who
propose to appeal to our market will command
much success. It has been already pointed
out that most of them do not enjoy the
highest credit. If Chilian scrip declines
to a discount, it is almost hopeless to ex-
pect that the new issues of Spain, Portugal,
or Greece will be maintained at a premium.
Foreign loans have evidently fallen into disrepute,
although it would be unsafe to assume that the
demand for these securities may not again revive.
There is no question in the world in which the
public show greater caprice than that of invest-
ments. Prima facie it would seem certain that
the matter is one of mere pounds, shillings, and
pence, of business and calculation. Although,
practically, this view is often correct, it is nearly
as often wrong. The public frequently take a
fancy to • stock and eagerly compete for it, while
they will not look at one much lower in price, but
of equal, if not superior intrinsic value. It is, con-
sequently, not impossible that, however unfavour-