The Sun.
London, England, 1839-12-10 00:00:00

i who are in the habit of taking a leading part in such
1 matters.

The Foreign Market bore altogether a very unpro-
mising aspect. Messrs. Reid, Irving, and Co., sent
to the Stock Exchange, on the part of the state of
Venezuela, a proposition, the effect or which was to
bring down Colombian Stock from 4 to/5. per cent. on
the extreme quotation, and almost every other descrip-
tion of foreign stock was, to a certain extent, dragged
along with it, especially the South American interests.
It will be observed that this project includes in its
arrangements no condition whatever for the liquida-
tion of the long arrear of dividends due upon the
bonds. Nothing has been paid since the year 1825,
so that the accumulation of interest, while it is by
far the most sacred portion of the debt, is also equal
i❑ amount to the capital itself, taken at the contract
price, not even calculating the compound interest,
which it would be proper to do, as it arises from
half-year to half-year. A compromise at the rate of
2 per cent. on a 6 per cent. stock, leaving out of
view entirely the large amount of dividends due upon
it, is of course one which can on no account be
acceded to. It is not, however, by reason of
its insufficiency alone that we say this. On the Conti-
nent the custom has been to detach the coupons from
the bonds, and to traffic in them as quite a distinct
property ; it is therefore clear that the proposed plan
of conversion is not only unjust, but perfectly imprac-
ticable. An honest settlement of the claims of the
holders of the dividend coupons is, as we have all
along contended, the first duty of each of the States in
default with the public creditor ; and we do not hesi-
tate to say that no faith whatever can or ought to be
placed in the Government that would be guilty of throw-
ing the entire of that part of its obligations over-
board. Every fresh move that occurs in con-
nection with the foreign loans in which our
capitalists have embarked their moneys serves but
more and more to confirm us in the conviction we have
long formed as to the pernicious tendency of the sys-
tem. The distribution made of the Colombian debt
in 1834, taking the population of the three States in-
terested in it for the basis, was as follows :—New
Granada 50 parts, Venezuela 28k, and Equator 21k.
New Granada and Equator have sent Commissioners
to Europe for the purpose of arranging their portions
of the Debt, and what, we may inquire, would be the
effect on the minds of these individuals if the paltry offer
of Venezuela were accepted? The example would,
there can be no doubt, operate seriously to the preju-
dice of the bondholders.

Messrs. Reid, Irving, and Co. have transmitted their
uroposition to the Committee of Spanish bondholders,
as well as to the Stock Exchange. The committee are
to assemble to-morrow to consider the communication,
when they will probably determine to call a public
meeting of the bondholders. No communication has
been forwarded to the Committee on the part of New
Granada and Equator.

CHRONICLE.—There has been considerable hea-
viness in the English Stock Market to-day, and Consols
have receded A shade without any sales of importance,
or other ostensible reason to account for the fall,
Money continues easy, and it has been reported that
an eminent foreign banking firm had offered to lend at
5 per cent.
The State of Venezuela has made proposals through
their agents in London for a settlement of their pro-
portion of the Colombian debt, which they estimate at
28} per cent. (equal to 1,188,3901.), and for which they
offer to issue debentures, bearing interest at 2 per cent.
payable in London by half-yearly payments in advance,
the original bonds being given up to be cancelled, and the
first payment to be made on the exchange of the securites.
It appears that the Colombian debt is now 6,625,9501. be-
sides thirteen years' interest, for the whole of which
the State of Venezuela, by the original bonds which
it now proposes to cancel, is jointly liable with New
Grenada and Equador, so that the Government of Ve-
nezuela, by their purposed plan, would accomplish a very
profitable arrangement, in so fares they would thus restrict
her responsibility to their own proportion, leaving the
bondholders to make the best terms they could for the
balance with New Grenada and Equador. We understand
that the division of the debt, in the proportion stated by
Venezuela, has been agreed to by the two last-mentioned
States, although their Commissioners have not yet
given in their official report. Therefore, so far as
the debtors are concerned, there does not appear to
oe any serious difficulty existing to the proposed set-
tlement ; but we should apprehend that the bond-
holders will not so readily agree to it, and that they
will not consent to deliver up the original bonds to be
cancelled. The agents here, we understand, have anti-
cipated as much, and expressed their willingness to al-
low the differences to be written off on the back of the
original bonds, instead of delivering them up. We
really cannot say anything in favour of such a proposal,
unless it be that half a loaf is better than no bread ; but
.vhen it is considered that the whole interest is to be
sacrificed, and that the only remuneration to be given
s 2 per cent, upon the capital debt, there can be but
Line opinion as to the character of the scheme, and as
to the cruel injustice which will be suffered in conse-
Jtuence by the bondholders.