The Sun.
London, England, 1865-03-02 00:00:00

" To THE CORTES.

" Her Majesty's Government, in withdrawing
the Bill for a fixed advance of 600 million reals,
submitted to the Congress on Jan. 18 last, has not
renounced the idea of demanding from the coun-
try the resources which are absolutely necessary
in order -to place the public Treasury in
a solvent condition, and the Government in favour-
able circumstances to carry out, with all the possible
advantage, operations . authorised by the laws, and
any others that may require the concurrence of the
Legislature.

" By these means, and by a system of persistent
economy, such as the Government will be able to
pursue by the development of material progress and
the simplification and improvement of the adminis-
trative organisation of the country as far as pos-
sible, the Government will be able to cover the
deficit in the ordinary Budget, and apply the re-
sources which it will shortly have in hand to suit-
ably provide for the extraordinary Budget.

" The project of an advance involved the idea
of concentrating some of the money spread over the
kingdom by the construction of railways, and other
public works, in order to ameliorate the circulation
of the precious metals in our commercial centres
which have been going through so prolonged a
crisis.

" Although recognizing the economic importance
of this view the Government, nevertheless, consi-
dered that there were other very high considerations
to be taken into account, and that it should appeal
to the patriotism of the country without affecting
small incomes which would feel the slightest sacri-
fice under the present paralyzation of all business.

" Of the 1,000 million reals in hypothecated notes
which the Bank of Spain has emitted up to the pre-
sent in conformity with Art. I. of the law of the
26th June last, 500 millions were appropriated by
that establishment and 82,280,000 reals have been
takenby the Council upon enrolment and repurchase
in the military service, and by some private persons
for payment of taxes in the Bank of deposits, a
surplus thus remaining of 417,720,000 reals.
" Of this sum the Government proposes to realise
by public auction, to be carried out by sealed tenders
simultaneously in all the capitals of the provinces,
150 million reals, with power to raise this sum to
300 millions reals if there are sufficient offers within
the rate which is prudently fixed.
" The result of this auction does not appear
doubtful after the magnificent example of abnega-
tion and patriotism which we have witnessed, an
example that can never be sufficiently extolled, and
which the whole nation now applauds with inde-
scribable enthusiasm.

" But in the event of the public auction not rais-
ing the whole of the amount required, the surplus
hypothecated notes will be distributed, at the mean
rate of exchange that would have resulted at the
auction, between the territorial and industrial tax-
payer, upon the basis of the half of their annual
quotas, new taxes being excluded, commencing
with those of the highest amount, and descending
gradually according to the sum to be distributed,
which may not exceed 150 millions, whatever may
be the result of the auction. Neither does this
measure apply to those taxpayers whose annual
quota is less than 400 reals.
"The Government, not contemplating to makeuse
of all the hypothecated notes, the emission of which
is authorised by the 26th June, 1864, considers it
expedient to modify this law, limiting to 1,000
millions the sum to be issued by the Bank of Spain.
The amount of the bonds held by the purchasers
of redeemed property received by the Bank is
1,340,911,920 reals, and these were existing in the
Treasury at the end of December last. In order,
therefore, to make up to this establishment the 1,700
millions requisite to carry the issue of notes to 1,300,
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it will still be necessary to deliver to it all the bonds
of the purchasers of alienated property now in course
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months.

" If the issue of hypothecated notes is limited to
1,000 millions, not diminishing the annual sum set
aside by law for the payment ,of interest and re-
demption ; this will be completely effected in six
years, the Bank being then provided with a sum of
1,230 million reals in bonds, so that it would have
to return some of those it now receives.

" In this manner all the future proceeds of the
liquidation will remain free to carry out public
works, and the development of the material interests
of the country, and the condition of the hypothe-
cated notes will be considerably improved by making
them redeemable in the mean term of only three
years. _ _ _

" Such are the considerations upon which is
founded the Bill appended, which, duly authorised
by her Majesty, in concert with the Council of
Ministers, the undersigned has the honour to sub-
mit to the consideration of the Cortes.

4; The Minister of Finance,
" ALEJANDRO CASTRO.

" Madrid, Feb. 23, 1865."
" Art. 1. The Government is authorised to sub-
mit to public tender, which is to take place, under
seal, simultaneously at Madrid and in all the capi-
tals of the provinces, hypothecated bonds among
those created by the law of June 26 last, for the
nominal sum of 150 million reals, at the rate the
Council of Ministers shall think proper to fix. If
the proposals sent in within the limit of the rate
indicated exceed that amount, the offers will be
considered as extended to a further nominal sum of
150 million reals, making up, with the former, 300
millions. In case this total amount shall not be
covered by the tenders, the Government is further
authorised to allot the excess of hypothecated bonds,
without going beyond 150 millions, among the tax-
payers who pay 400 reals or upwards annually in
taxes upon agricultural produce and cattle, or in
industrial and commercial taxes, to the exclusion of
the surcharge for provincial and municipal ex-
penses, conformably to the assessment of the cur-
rent financial year. Half the annual quota or the
amount of the quarter's taxation will be taken as the
basis of allotment. The bonds will be given at the
average rate at which they have been tendered for;
their payment must be effected in two proportionate
sums at an interval of 60 days. That portion of
the 150 millions which shall be adjudged to the
tenders will serve to place the quota at the minimum
point, which is to be taken as the anticipatory basis,
so that, beginning with the highest taxation, and
gradually going lower, the limit referred to by the
definitive amount to be allotted among the taxpayers
will be reached.

6, Art. 2. The hypothecated bonds not adjudged

to the public tenders spoken of in the preceding
article, will be passed to the general deposit bank.
This establishment will receive the sums for which
the taxpayers are liable, will give the discount or
make the allowance to which they are entitled, and
will deliver for the entire amount special bonds,
bearing interest at six per cent., transferable upon
endowment, and exchangeable for the hypothecated
bonds. So long as the obligations have not been
exchanged, holders will have the option, every half-
year, of receiving the corresponding amount of
interest or the repayment of the proportionate part
making up, as regards the total amount of the obli-
gations, the sum of the equivalent hypothecated
bonds in the bank of deposit, which are to be re-
deemed in the drawing of the said half-year. The
discount or allowance made to the taxpayers who
shall not pay their quotas direct to the treasuries
will be reduced to 2 per cent., the said 2 per cent.
being given, in lieu of all kinds of costs, to the
municipalities or those charged to carry out the
levy.
" Art. 3. The provinces of Alava, Guipuzcoa,
Navarre, and Biscay, will be included in the opera-
tion of the present law, in the following form and
proposition :—The deputation will make the de-
liveries direct, and will receive the hypothecated
bonds with the proper discount or allowance, in the
terms of Art. 1.

" Art. 4. The authorisation granted by the law
of June 16th last to the Bank of Spain to issue an
amount of 1,300 millions in hypothecated bonds, is,
and remains, limited to 1,000 million reals, without
that limitation diminishing the annual sum of 200
millions intended for the payment of the interest
and the redemption of the said bonds. The
amount of the bonds in possession of the holders of
unredeemed property, which must be returned to
the Bank of Spain, fixed by the above law, of 1,700
millions, is reduced to 1,230 million reals. That
establishment shall return to the Treasury in bonds
falling due at the latest date, such surplus bonds
above the 1,230 millions as it may actually receive.
" ALEJANDRO CASTRO,
" Minister of Finance."

HOLLAND.
DEATH OF THE QUEEN MOTHER.
THE HAGUE, March 1.

The Queen mother died at a quarter to 5 o'clock
this afternoon. All the members of the royal family
were present at her Majesty's bedside at the time
of her demise.

ARRIVAL OF KING VICTOR EMMANUEL

AT MILAN.

MILAN, March 1.

The King of Italy arrived in this city to-day,
and was received by the civic authorities and the
artizan societies. The National Guard paraded.
His Majesty was enthusiastically cheered by the
immense crowd assembled.