The Sun.
London, England, 1830-04-06 00:00:00

THE NEW FOUR PER CENTS.

TO THE EDITOR OF THE SUN.

SlR,—When the Government bad once so far yielded to
popular clamour as to take off taxes first, and leave it to be
afterwards considered what to do with the debt, it was
not difficult to be foreseen that the debtors had determined
to be relieved of paying at all.
There is the same absolute deduction from the debt,
however the thing may be concealed from even the greater
part of the creditors, by throwing the whole burthen, in
the first instance, on but a small part of themselves, and a
part, of course, less able to resist.
Had the Four per Cents., indeed, naturally fallen in,
as the short Annuities were seen to do, then taxes might
have been fairly taken off en their account, but it is at
least highly suspicious that any stock should be forcibly
reduced, however proper the thing in itself, when it is
first otherwise wanted.

At any rate I cannot think that Government would
thank indiscreet advocates who would only add insult to
misfortone, by inuuating that the Four per Cents. had
done shy thing to bring the punishment rather on them-
sePres, by either trying to take further advantage of the
necessities of Government, or betraying extraordinary
cupidity.
Who has now to learn that the different nominal in-
tereats of Stocks were always exacted under the same
circumstances, and at the same times, being all first re-
•lt;ced to equal value? We are now offered Fives and
Three and a lialfs,for the same Fours, as calculated equiva-
lents. And is the poor victim to be afterwards told that
he dererves whatever may happen if, not knowing which
take, he may decide on the Fives.

It has never been denied that Government has every
right to repay its debts the sense as another individual, that
it, when he either has the money himself or can distinctly
'sorrow it; but when an individual cannot really borrow
of others, but contents himself with telling his creditors
that if he does, that if he will not consent to take less
than his contract, he shall be harrassed, and perhaps
eltimately get little or nothing. This is not called paying
off his debts, but compounding with his creditors.
It is nonsense for Government to talk of borrowing at
;over interest. Let it use every exertion to depress corn-
anon interest. Let it avail itself of temporary distress of
any kind, and then try if it can borrow, at what it calls
the current rate of those interests, 140 millions to pay off
the Four per Cents. It well knows it could do no such
thing, nor could any individual either.
Some may, perhaps deceive themselves, because Go-
vernment does now borrow, for short times, small sums
at two per cent. in Exchequer Bills ; but every Minister
knows that this is a very limited resource, and even within
that limit, what is called the unfunded debt is a very
dangerous one, and by no means a safe expedient.
If Government were in earnest to pay off the debt, it
would perhaps be politic to begin rather with the Three
per Cents., to prevent the others from rising inordinately.
But, perhaps, the grossest error of all is the pleading
the contract not to pay off the Fours before seven years.
This, if a contract to pay them off at all, was the origi-
nal of this very abuse, now endeavoured to be turned into
a precedent. It !shows—if it shows anything—that the
original contract meditated nothing of the kind, and this
was notoriously but an arbitrary dictate of the party in
power, when his antagonist was wholly at his mercy.
Nay, then, it professed to give hisn a greater capital for
doing so.
I am not, nor ever was, the least holder of Fours or
Fives, and am a holder of Threes ; still I must feel that
if Government can at all pay off, as they call it, the
Fours, so they might equally the Threes. They can
borrow- fer one as well as for the other, but we have to
guard against what will become a precedent for complete
bankruptcy as to all the Stocks.
I am, Sir, yours,

A. C.

BANK AND EAST INDIA HOUSE ELEC-
TIONS.-(THIS DAY.)

This morning a ballot was opened at the Bank of Eng-
land, for the election of a Governor and Deputy Governor.
As there is no opposition to the parties nominated, viz.,
John Horsley Palmer, as Governor, and Andrew H.
Thompson, u Deputy Governor, they will be chosen.
At the East India House, however, a strong contest is
going on this morning fur the election of a Director, in
the room of Mr. Babb. Mr. Forbes and Mr. Mackinnon
are standing for the office, and it is doubtful which will
be elected. To-morrow another election will take place
for a Director, in the room of Mr. Pattison, when Mr.
11. Shank and Mr. Russell Ellice have announced their
intention of standing for the office. On the 14th inst.
the General Election will take place ; and besides the house
het, Mr. G. Lyall,Mr. Thos. Baring, and Mr. W. Gowan,
are candidates.
From the great opposition of the Directors' list, the re-
sult of these elections is looked for with much curiosity in
the city. The Ballot will close at six o'clock this eve-
ning. Great influence has been used to return the house
list.