The Sun.
London, England, 1855-07-16 00:00:00

ISSUE OF THE FRENCH LOAN.

The following documents relative to the time and
mode of issuing the New French Loan are trans-
lated from yesterday's Moniteur

REPORT TO THE EMPEROR.

Sire,—Your Majesty has again addressed the country
asking the means of continuing, in a manner worthy of
France and the object she pursues, the contest so glo-
riously maintained by our valiant army.
Faithful interpreters of the national sentiment, the
senate and the legislative corps have hastened to respond
to the appeal of the Emperor by unanimously granting
the power of obtaining for the Treasury an extraordinary
resource of seven hundred and fifty millions.of francs by
the sale of rentes.

The time, the mode, and the conditions of this loan
baying been left to the free appreciation of the Govern.
ment, I wi,h to take the orders of your Majesty on
these various points.

The condition of the treasury and the resources at its
disposal would undoubtedly still enable it to meet the
public expenses of every kind for several months to come,
and in this point of view your Majesty would be able to
postpone the exercise of the power placed in your hands.
But it is the duty of a provident administration to
make provision beforehand, so as always to be ready to
meet eventualities. Besides on the first announcement
of the loan, the capitals intended for such purpose have
been everywhere made ready, and are in store. A pro-
longed delay by keeping the holders in suspense would
not be without inconvenience for affairs in general, and
might be injurious to the loan itself. For these con-
siderations I have the honour of proposing to your Ma-
jesty not to put off the issue:
It appears to me useless to discuss the numerous
systems that have of late been proposed. The national
subscription has gone through its ordeal. It is recom-
mended by its unquestionable impartiality, and the bril-
liant success it has recently obtained fully justifies the
preference your Majesty vouchsafes to it.
In the two last loans the subscribers had the choice •
between the Four-and-a-Half sand the Three per Cents.
I see no reason why the same privilege should not again
be granted.
I propose to your Majesty to decide that the Bente of
Four-and-a-Half shall he issued at 92fr. 25c., with usu-
fruct from the 22d of March last ' • and the Three per
Cents. at 65fr. 25c., with usufruct from June 22.
To decide that the subscribed capital shall be paid in
the following manner :—One-tenth at the time of sub-
scribing, and the remainder in 18 monthly equal icstal-
ments—the first of which shall fall due on the 7th of
September next.
These conditions will procure for the subscribers vari-
ous advantages, which it will be easy to estimate.
At the Bourse, this day, the last quotation of the Four-
and-a-Half per Cent. Rents was 92f. 750-,
and that of
the Three per Cent. Rente 65f. 90e.
These quotations, compared with the rates of issue
stated above, show in favour of the subscribers, a first
bonus of 50c. for the Four-and-a-Half, and of 65c. for the
Three per Cents.
But the chief advantages will, of course, result from
the delay of about twenty months granted to the sub-
scribers from the opening of the subscription for making
up the payment in full, and also from the date when the
arrears of the rentes will be paid to them. This combi
nation, which procures by anticipation the interest of
the capital sabscribed, is equivalent to a new reduction
of 2f. 79c. on the 41 per cents, and of if. 98c. on the 3
per cents. Whoever are admitted to the right of paying
up by anticipation will receive a discount which will be
as good to them as this bonus.
All these advantages united in reality reduce the price
of the 4 rente to 89f. 46c., and the 8 per cent. rente to
63f. 27c. ; and, compared with the quotation of the last
Bourse, they procure to the subscribers a bonus of 3f.
29c. on the first class of fund, and of 2f. 63c. on the
second ; a bonus that must appear still greater when we
consider that for several days past the Bourse has been
influenced by the imminence of the loan, and that in
ttd to a e
this way the lowness of the last quotations
and thathasbeen
owing merely to an accidental depreciation.
In case the amount of the subscriptions should exceed
the sum demanded, I think I ought to propose to your
Majesty to decide that the subscriptions of 50f. of rente
andall
thoseun d under sohvael
fe.
oefxreemnpt
et exempted
shallf so from
eßrn
sureduction,i
pro-
portionate reduction. This measure appears to me to be
a fair one; by assuring a part to all the subscribers, what-
ever may be the amount of the sums subscribed, it will
certainly contribute to the success of the operation.
As in the previous loan, and in order to make room
for the small capitals, the minimum of the subscriptions
shall be fixed as low as 10f. of rente.
Such, sire, are the conditions which have the honour
of submitting to the approbation of your Majesty. The
advantages which the subscribers obtain by them are
doubtless considerable, but at all times analogous advan-
tages have been recognised as being indispensable for
insuring the success of the negotiations. The old system
them
fsystem
woar wrongsa few
inidni
vd reservinguals
Tthheebon meritus
of atTeo m
publicpan y
t subscrip-
tionemi ntaouegvuerrayteodneb,yad
your Majesty
making tlie rents common,
Majesty censists offering
enlarging the bases of the national credit.
I am, with the most profound respect, Your Majesty's
most humble and most obedient servant and faithful sub-
ject, P. MAGNE.

grace of God and the national
will,
To all present and to come, greeting :
IBMyPtEheRIAL DECREE.
NAPOLEON,_
of
of July
State for
the O
dn
etphaer
trme pe on rttooff
Four
ant, Ministercon 8 i Secretarydering the
11, 1855,
We have decreed and do decree as follows :
Art. 1. Our Minister Secretary of State for the Fi-
nance is authorised to proceed by public subscription to
the assignment of the sum of rentes at 41 and 3 per
cent. necessary for producing a capital of 750 millions of
francs, and a supplementary capital, that must not ex-
ceed 30 millions, for facilitating, if required, the liquida-
tion of the subscriptions and for defraying the expenses
of discount resulting from the payments by anticipation.
' A.rt, 2. The rents et 41 per cent. Will be issued at the

rate of 92fr. 25 centimes, the usufruct to commence on
the 22d of March, 1865.
The rente of 3 per cent. will be issued at the rate of
65f. 25c. with usufruct from June 22, 1855.
Art. 3. In conformity with the regulations of the first
article in the law of July 11, 1855, the dotation of the
'sinking fund will be increased from the Ist of January,
1856, by a sum equal to the hundredth part of the no.
mina' capital of the rentes that shall be issued in virtue
of the Ist article in the present decree.
Art. 4. Our Minister Secretary of State of the Finance
is charged with the execution of the present decree.
Done at the Palace of the Tuileries, July 14, 1855.
By the Emperor. NAPOLEON.
The Minister Secretary of State of the Finance.
P. MAGNE.