The Sun.
London, England, 1855-02-14 00:00:00

SPANISH BONDHOLDERS.

In reference to the continued highly unsatisfac-
tory state of the Buenos Ayres foreign debt, the
committee of Spanish American bondholders ad-
dressed, by the last packet, a representation to the
head of the Executive Government of that State,
of which the following is a copy :
" Committee of Spanish American Bondholder 3,
1, St. Swithin's-lane, London, Feb. 8, 1855.

" Excellent Sir,—The committee of Spanish Ameri-
can bondholders are under the necessity of addressing
themselves to your Excellency as the head of the Exe-
cutive Government of the State of Buenos Ayres, in
referenc6 to the foreign debt of the republic.
"Your Excellency must be aware that the position of
that debt cannot but be one of great and increasing dh-
'appointment to the parties interested therein in this
country. . .

"T6e committee request permission to recall your
Excellency's etention to the circumstances attending
this debt.

"This loan was created in the year 1824. At that
time the Republic of Buenos Ayres had just succeeded
in establishing its political independence, and was natu-
rally in want of that pecuniary assistance which a young
State, just about to take its position in the community
of nations, might be expected to require.
"This assistance was afforded by the British public,
who, confiding no less in the honour and good faith than
in the well-known resources of the republic, did not hesi-
tate to become subscribers to the loan for its use, which
was introduced to them under the sanction of the emi-
nent house of Baring Brothers and Co.
"The confidence with which the British public em-
barked in this transaction was, in fact, sufficiently mani-
fested by the very high price at which the loan was
issued.

" Such was the commencement of the transaction.
What has been its results ?

"At this moment there remain no less than 25 years
of interest on this debt unpaid.
" Is this, excellent sir, a state of things that ought to
be snffered to remain ?

"The bondholders having, at various times, made re-
presentations to the Government of Buenos Ayres on
this matter, have been compelled to postpone pressing
the same in consequence of the political disquiet which
has so often agitated the country—having, under several
Administrations, received the assurance that, whenever
a return of tranquillity should enable the Government
of Buenos Ayres to discharge its public obligations, it
would not fail to do so.

"The committee of bondholders, watching anxiously
the course of political events at Buenos Ayres, perceived
at length, with great satisfaction, in the year 1854, that
the tranquillity so much desired by all the friends of that
State had been restored, and political order re-established.
"They thereupon despatched a special commissioner
to represent their claims—Mr. James Giro—who left
this country in December of that year.
"This gentleman arrived i❑ Buenos Ayres in the
month of January, 1454. From that time to the present
he has been incessantly engaged in pressing on the at-
tention of the Government of Buenos Ayres the adjust-
ment of this debt. Ha has emphatically urged the
claims of the suffering bondholders. He has proposed
terms of adjustment calculated to meet the convenience
of the Government of Buenos Ayres, and such as were
adopted in the adjustment of the debt of Chili, but
hitherto without any result.

" In the meanwhile the finances of Buenos Ayres
have so improved that the Congress has considered its
self justified, on the recommendation of his excellency
the Finance Minister, in passing votes during its last
session for the appropriation of very large sums for the
erection of a new customhouse and other public works,
while, for meeting the interest on the foreign debt, no
provision whatever has been made.
"On the contrary, these arrears are continually in-
creasing, inasmuch as the insignificant sum which is
periodically appropriated by the Treasury of Buenos
Ayres to the payment of a portion of the interest of that
debt amounts only to one-fifth part of the said interest,
leaving four-fifths thereof to be continually augmenting,
the amount of the previous arrears.

" Can it be a matter of surprise to your excellency
that the committee are compelled to announce to you,
that this treatment of the British creditors produces the
deepest db-alvointment here—a disappointment in no
small degree aggravated by the fact that, while the
foreign debt of the republic is thus dealt with, the inte-
rest on the domestic debt of the State is punctually dis-
charged ?
" Can your excellency wonder that the bondholders
appeal from this indifference of the Legislative body is
you, as the political head of the State, and through you
to the nation at large.
" By the tenour of the bonds issued for this debt,
under the authority of the Congress of Buenos Ayres,
all the revenues, lands, goods, and territories, of the
State' were solemnly hypothecated for the payment of
this debt and the interest thereon. The committee
would respectfully ask, by what rule of justice and good
faith it is that these revenues are applied to other pur-
poses, and that this special obligation is neglected ?
" The republics immediately adjoining Buenos Ayres
—Chili and Peru—have both, come years since, made a
satisfactory adjustment of their respective foreign debts.
The consequence is, their enjoyment of high credit in
Europe, whereby they are enabled to command re-
sources for the internal improvement of their countries
to any reasonable extent. Already a railway has been
in operation in Chili for two years, of upwards of 50
miles in length, and another, of greater extent, is in
course of construction.

" Capital in Europe is always ready to employ itself
in developing the resources of countries where the obli-
gations of good faith are respected. Buenos Ayres
affords large opportunities of the same class, but capital
and credit go together. Where public credit is no; up-
held, capital will not follow.

. .
" The committee desire respectfully but earnestly to
press the foregoing statement of facts upon the attention
of your excellency. They trust that your excellency
will take such measures in this matter that it shall no
longer be a reproach to the State of Buenos Ayres, that
she is the only one of the American States, formerly un-
der Spanish dominion, that has not made an adjustment
of its foreign debt. Her trade is increasing--her revenud
is increasing—he is in the enjoyment of political tran-
quillity. Can it be, then, that, when Jibe is called upon
to discharge those obligations which are recognised by
every State admitted into the family of nations, she will
be found wanting ?

" The committee trust that the answer to this appeal
will be an immediate adjustment of this long-pending
matter with the authorised representative of the bond-
holders, now resident in Buenos Ayres, in a manner
creditable to the honour and the dignity of the State of
Buenos Ayres, in conformity with the just claims of the
bondholders.
"We have the honour to be, excellent sir, your ex-
cellency's obedient servants,

Chairman of the
Committee of
Spanish American
Bondholders.

(Signed) "J. D. PowLEs,

"JOSEPH TASKER,
" SAM. HELBERT ELLIS,
" ROBERT FRED. GOWER,
" SIMON SAMUEL,
" RICHARD DAVIS HEATER;
" EDWARD HASLEWOOD,
" JOHN FIELD,
" WILLIAM HARRISON,

Members
of the
Committee.

"To hia Exueileney the Govunor of the
state of 33uonos Ayres."