The Sun.
London, England, 1839-12-23 00:00:00

TRANSLATIIti.

" Illustrious Sir,—Having received the honour of being
called to the counsels of her most Faithful Majesty, who,
by a decree of the 26th of November last, was graciously
pleased to appoint me Minister and Secretary of State
for the Department of Finance, I consider it my
duty, in making this communication to you, to as-
sure you that the new Ministry, of which I form
a part, will not omit employing every means possi-
ble towards upholding the national credit, and to maintain
with the strictest integrity and faith all their engagements,
and to attain which they are prepared to make every pos-
sible sacrifice compatible with their difficult circumstances
and the preservation of public order, without which all
their efforts would be in vain.
" The claims of the foreign creditors in London and else-
where will, undoubtedly, deserve, in strict justice, the most
serious consideration of the present Government of her
Most Faithful Majesty the Queen ; and, as regards
yourself . . . . to whom this country
is so muchindebted, I trust you will continue to con-
fide in the honour and good faith of the Portuguese
nation, which, be assured, will not fail to satisfy and dis-
charge all her obligations honourably, if a little time be
allowed, and which is indispensible for the development
and the rendering productive the ample resources which
she has at her disposal.—God preserve you, &c. &c.
" Public Treasury, Dec. 2, 1839.
(Signed) "FLORIDA ROEZ PEREIRA FERRAZ.
" Rich. Thornton, Esq., &c. &c."
We alluded a few days since to a proposition vet out
to the United States for the consideration of the Legis-
lature at Washington, the object being to consolidate
the numerous States' debts under one general national
arrangment. The proposition in question has been sub-
mitted in the annexed form by the eminent house of
Baring Brothers and Co., of this city :
The late loan made by the United States Bank for
about two years, and for 800,0001 , on deposit of Pennsyl-
vania and other States' stock, at a price which gives ten
per cent. annual interest to the subscribers, shows what
rate of interest must be paid to obtain any amount of
money on the best American securities, and serves, there..
tore, as a guide to capitalists here for their purchase of
State stocks. We quote the last prices of the principal
securities at which business has been done, but must
add that, even at these rates, only small and occasional
sales are practicable. The continued fall in their
value destroys speculation, whilst many years will be
required for real investments to absorb all that is at
present in our market. We do not doubt but that
such gradual purchases will continue of the stocks of well..
known States which do not ever-issue, and which faith-
fully meet their engagements to their creditors, as
the confidence in the resources of national honour of the
United States remains undiminished in this country, as
well as the conviction that by such investments England
England employs her annual surplus of capital both
safely and profitably, encourages her best customer, and
binds more closely the ties of mutual interest between
the two countries. But if the old scheme of internal im-
provements in the Union is to be carried into effect on the
vast scale, and with the rapidity lately projected, and by
the means of foreign capital, a more comprehensive gua-
rantee than than that of individual States will be re-
quired to raise so large an amount in a short time. A
national pledge would undoubtedly collect capital together
from all parts of Europe ; but the forced sales of loans made
separately by all the individual States in reckless competition
through a number of channels, render the terms more and
more onerous for all, lower the reputation of American
credit, and (as reliance is almost exclusively placed en the
London market) produce temporary mischief here, by ab-
sorbing the floating capital, diverting money from regular
business, deranging banking operations, and producing an
unnatural balance of trade against this country. It would
seem, therefore, as if moat of the States must either pause
in the execution of their works of improvement, or some
general system of combination must be adopted.
" All corporation stocks are neglected, nor do we hear
of any transaction in Bank shares, excepting those of the
United States Bank.—We have the honour to be, your
obedient servants,
(Signed) BARING, BROTHERS and CO.

This letter appears to us to define in a concise man-
ner the relative state of mometary affairs between
Great Britain and the United States with great accu-
racy, and, although it may not have the effect contem-
plated by the writers and other leading houses in this
metropolis, it is one that is nevertheless in all respects
entitled to the most serious attention.—Morning Post.

MONEY M4RKET and CITY NE

(SATURDAY EVENING.)
TIMES.—It is understood among the monied inte-
rest, that though loans on a deposit of Exchequer bills
are not sanctioned, strictly speaking, under the late no-
tice for temporary accommodations at the Bank, some
special applications for that purpose have latterly been
made and have been successful. This will be a Season..
able aid to the larger holders of such securities, who
have been for months under an absolute interdict in
that quarter. This looks, besides, as if the Bank Di-
rectors felt rather more at their ease, and were desirous
of getting a little more paper into circulation.
Few persons are aware probably, except the lead-
ing merchants connected with the Continent and the
Bank Directors themselves, how much the recent pro-
ceedings of the latter have damaged the credit of the
country. The advance in the rate of interest began
the mischief, and the application for assistance to the
Bank of France completed it. Most of the Continental
merchants at once straitened their transactions with
England, and brought them to a close as soon as it
could conveniently be accomplished. We have seen
letters from Paris adverting to this state of things, in
which a sort of calculation is made that within one
month to the application to the Bank of France, which
went to establish a credit of 2,000,000/., foreign
capital to the amount of at least 3,000,0001. was with-
drawn from this country. No more instructive fact
could possibly be adduced.
It has been allowed to go forth to the city, and
may be received as certain, that some of the more
active and intelligent Bank Directors are not indisposed
to the establishment of a national bank with an exclu-
sive issue of paper under the control of Parliament.
Theso gentlemen, if really conscientious and not afraid
of speakinc, out, would (a few of them) be the first to
deplore and seek an escape from the difficulties of their
situation.

The letttr (Messrs. Baring's) which appears in a pre-
ceding article, is exceedingly gratifying, proceeding from
such a source, in the confirmation it gives of the spirit
at least of the recent remarks on the multiplication of
American State loans, and the mad career the greater
part of the States have been running under the specious
pretext of internal improvements. No date is affixed
to this letter, but from the tenour of it it maybe presumed
to be a circular addressed to various correspond-
ents and houses of business in the United States,
and intended unquestionably as a guide to them
in the future course of their transactions with
this country. In that respect no advice can be
more judicious, and to the separate States a distinct
warning is conveyed, however circumspect the lan-
guage may be, " if the old scheme of internal im-
provements is to be carried into effect on the vast
scale and with the rapidity lately projected,” that then
" a more comprehensive guarantee than that of indi-
vidual States will be required ;" or, in other words, they
will break down under the weight of debt. Our warn-
in;; was a little more explicitly conveyed, being to the
effect, that if trusted further without inquiry, this
would infallibly come to pass ; and we especially recom-
mended that no more new loans should be encouraged
into.
It the true state of the case had been examined
It was shown also that this would be equally good
policy towards the States themselves and their credi-
tors, which opinion is manifestly declared by Messrs.
Baring, though they do not use the precise words.
But the motive given for the publication of this
letter
and
is wholly different from an elucidation of this
point
of a most extraordinary nature, being that
of making it appear to the world that the house of
thrings have submitted a proposition to the Legisla-
ture at S t ;
Tas.l,ngton to consolidate the numerous
State debts under one general national arrangement,
which meaning is not at all borne out by the letter itself.
The . a " more comprehensive guarantee,"
to be
necessitybesure,s ofpointed out, and an assertion made, which
is nothing more than a truism, that " a national pledge

would undoubtedly collect capital together from all
parts of Europe ;" but not a word is to be found in the
letter which can be construed into a proposition to the
Legislature of the nature described. As such a step
would be a most improper one on the part of any mer-
cantile house, so is the, inference upon such materials
that they have actually taken it most ridiculous. What-
ever those gentlemen may think of the policy of such
a measure ou the part of Congress, they are the last
persons in the world to take upon themselves to propose
it, and especially to do so under the cover of a mer-
cantile circular.

CHRONICLE.—The depressed and stagnant state
of trade throughout the country is now so general, and at-
tended with such serious evils,as not only fully to corrobo-
rate what we stated on Wednesday—that the derange-
ment of our monetary system was now only being felt in
its entire vigour--but also to demand the serious atten-
tion of the Legislature and the Government, with the
view of alleviating, in the first instance, the wide-spread
distress ; and, in the second, of investigating the causes
which have led, in a country abounding with wealth and
enterprise, and in profound peace, to a state of things
attended with such deplorable consequences.
In Leeds and the woollen districts failures of magni-
tude have taken place, which must be soon followed by
further bankruptcies, destroy ing confidence, and li-
miting still further the power of the country banks to
afford relief.

We stated on a former occasion that the period for
which the Bank of England had contracted with certain
country banks for the issue of their paper had expired,
and was not to be renewed. We find, however, that
notice merely to that effect has been given from the
Bank parlour, which has produced the same result as if
the period had actually elapsed, aggravating the pressura
for money in the provinces, by compelling these esta-
blishments to curtail their accommodation, preparatory
to such an important change in their financial position.
The terms on which these banks were supplied with
Bank of England paper held out such temptations to
employ it largely, during the present high value of
money, that they no doubt availed themselves of it to
the fullest extent, and thus fostered speculations of a
hazardous character, and burdened themselves with
securities which cannot be realised without serious loss
to all concerned.

It will be seen that by this system the Bank of
England has given a forced stimulus to credit, and
produced a rivalry in granting accommodation with other
banks throughout the country, without being able to
exercise the smallest check or controul.

The reaction will be now shown by the proceeding's
of the other bank!, who will contract their issues in a
corresponding manner for their own protection, and thus
make money scarcer in the provinces than it has ever
yet been.

We trust that the ordeal which banking institutions
are now subjected to will show them the necessity of
confining their business to bona fide transactions as
dealers in money, and to avoid all that spurious ac•
commodation which we fear many of them have got
heavily entangled with.
It seems to be a fault in English banking, that the
parties engaged in it, instead of being satisfied with the
legitimate profits, avail themselves of the credit of the
Bank to sustain extravagant speculations, in the hopes
of obtaining higher profits thaw regular banking would
afford.

It has been reported that a bank in North Wales has
failed. We believe this is not substantially the case, as
they have made arrangements with another establish-
ment to withdraw their notes, and it is hoped that they
will be able to settle with the depositors themselves.
Their business, however, is suspended ; but steps have
been taken by other establishments to supply the dis-
trict, which is one of considerable importance as regards
mines and manufactures.

The iron trade forms a striking exception to the ge-
neral stagnation affecting all other branches of our pro-
ductive industry. Through the whole of the mining
districts the furnaces are in full blast ; new ones are in
course of being erected ; the hands are fully employed ;
labour is in great demand ; wages high ; and everything
denotes great activity and success. This satisfactory
state of the iron trade is to be attributed to the demand
occasioned by these stupendous national works, our
great lines of railway communication, which reflect so
much credit on the skill and enterprise of the present
day.

IVe observe by the Liverpool papers that the cotton
market there during the past week has been in an un-
settled state. Some of the holders in the early part be-
trayed great anxiety to realize, particularly those of the
new crop of American, which in many instances was
not accomplished without a sacrifice of from id. to id.
on the closing prices of last week for good fair to fine
qualities, the ordinary being less depressed. Since the
report of Tuesday's Manchester market there has not
been the same eagerness to sell, and prices recovered
themselves to within about ,-Id. to id. of previous rates.
The sales amounted to 24,000 bales of all descriptions,
speculators and exporters taking about 3,700 bales.
The Congo! Market has been quiet throughout the
day, with little doing.

HERALD.—A short time since we adverted to the
announcement that a scheme was afloat amongst a cer-
tain portion of the holdcrs of the State Stocks of Ame-
rica, having for its object their total consolidation, and
that an application was about to be made to Congress for
its sanction.

That the attempt will be made there is no doubt.
We subjoin Messrs. Baring Brothers and Co.'s circular
on the subject, and although it has appeared exclusively
in the columns of a Morning Contemporary, there is a
peculiarity in the language with which this circular is
invested that could not have been avoided, seeing that
the project will most probably have as many enemies
as advocates in the United States, whilst, on the other
hand, were it to succeed, British interests would be se-
riously affected.
This circular has naturally called forth mach atten-
tion, but as a feeler it will have almost as little effect
here as it is pretty sure of meeting on the other side of
the Atlantic ; but we do not see, because the United
States Bank have obtained a small loan, for two years,
on the deposit of Pennsylvania and other States' stock, at
a price which gives 10 per cent. annual interest to the
subscribers, that the transaction will per se afford any
real criterion of the value of American State Stocks in
this or any other market, since that bargain was effected
under peculiar circumstances, attended with very power-
ful guarantees. As to any hope that a national pledge
would be given by Congress for this consolidation, can
this be expected so long as the federal union maintains
its integrity, or the separate States do the same ? Would
the southern States undertake to amalgamate their State
Stocks and Bank Stocks with the northern, or vice
versa ? Prejudices will have to be overcome that
money cannot buy, and a certain nationality must be
created before so wild a scheme can ever be brought to
bear in the United States.

THE LATE COUNTESS or DEVON.-We re-
gret to say that the Countess of Devon died at Pow-
derham Castle, on Monday last. Her Ladyship had
been in a declining state of health for some years past,
never appearing in society beyond the connections of
the family. The deceased lady, who was a daughter
of Sir Lucas Pepys, Bart., and Jane Elizabeth Countess
of Rothes, was born on the Ist of June, 1777, and
was, consequently, in her 63d year. Her Ladyship
was married to the Earl of Devon, then Mr. Courtenay,
on the 29th of November, 1804, by whom her Lady-
ship had a family of five thildren, three of whom are
living—namely, Lord Courtenay, the Hon. and Rev.
Hugh, and the Hon. Charles Leslie Courtenay. The
deceased Countess waa a sincere Christian, and the
poor have lost a liberal benefactress by her death.

The Opera, it is expected, will commence a
month earlier than usual next season. Grisi, who is
still in England, will resume her situation as prima donna
at the opening.

STRATHFIELDSAYE.The Marquis of Bute,
Lord Seaton, Lord and Lady De Roos, Lord and Lady
Henry Cholmondeley, Colonel Gurwood, Lord Fitzroy
Somerset, the Right Hon. Charles Arbuthnot, Vis-
countess Burghersh, &c., have been among the guests of
the Duke of Wellington, at the above scat, during the
past week,

A marriage is said to be on the tapis between
Lord Griaiston and Lady Louisa Craven.

The Hon, George Rice Trevo: left town on
Friday to pass the holydays at Brighton.

The West Essex Archery ball took place on
Friday last at Harlow Bush, and was kept up with
great spirit. The fine band of the Quadrille Institute
performed on this occasion some entirely new pieces (the
solo parts by Messrs. Patey, Macfarlane, Champion,
and J. A. Ireland), which elicited much approbation
from the company assembled, amongst whom we no-
ticed Lady and Miss Bowyer Smyth, Mrs. Arkwright,
Mrs. Glyn, W. F. Bramston, Esq., M.P. ; G. Palmer,
Esq., M.P. ; and J. Round, Esq., M.P.
We have heard on what we consider good au-
thority that it is the intention of her Majesty to avail
herself of the suggestions thrown out in Sir Harris
Nicolas's admirable " History of the Orders of British
Knighthood" for the revival of that branch of the
Order of the Garter which was established in the reign
of Richard 11., and included the Ladies of the Knights.
This would be a graceful and popular measure, and
we trust, therefore, that there is a solid foundation for
the rumour.— piled Service Gazette.
AFFAIR OF HONOUR.—A meeting took place
on Friday morning, on Wimbledon Common, between
Lord William Paget and Mr. Thomas Fiske; the former
attended by Captain Baillie (late 16th Lancers), and
the latter by Mr. Nightingale. Mr. Fiske received his
Lordship's fire, and fired in the air, when the seconds
interfered. It appears that Lord William had called
upon Mr. Fiske to deny that he (Mr. Fiske) had ever
lent money to him, as stated in the Morning Herald of
the 11th instant, which request was refused to be com-
plied with, on the ground of its having been accompa-
nied by a threat ; but, after receiving his Lordship's fire,
he had no hesitation in declaring, in the presence of
Captain Baihie and Mr. Nightingale, that lie never had
lent any money to his Lordship.