The Sun.
London, England, 1862-07-08 00:00:00

Z----

Ga <-

SPANISH AMIKIVRIA.N 110151D1101,
A meeting of the holderS of Ecuador Bonds -4
held ycst.erday at the London Tavern, Bishopsgat
street, it having been convened by the committee of
Spanish American Bondholders. Mr. J. D. PowleE
was in the chair.

~NI-~~ ~~
.'IY ~!~ !~:'S

The CHAIRMAN said this meeting had been called
for the purpose of enabling the committee to make

a communication to the bondholders, which

they had received from Signor Florez, the
minister of the republic of Ecuador, who was

now in London. Thi' statement. of Signor Fiot•f z

Was to the effect that the rpuhlie was in it state of

profound pence, the dispute with Peru having enure

to an end ; Peru having sent a minister to represent

her to Quito, who was personally friendly to that
_ _

state. With reference to Ecuador, he believed they

might entertain the hope that peace would not again
be interrupted, the states having received an inti-
mation from the two great powers of Europe that
they would not look on patiently to see them haras-
sing each other on questions of boundaries, where
there were millions of acres without an inhabitant.

When the separation of the COl;iies;ri---the free
states took place, it was, provided that in case of
questions of boundaries arising they should be settled
by arbitration, and it might therefore ho hoped
that there would not again occur any renewal of
hostilities from Peru. The general impression was
that the republic of Ecuador was in a sound political
state, and that it would not be torn in pieces by
feuds, which were now suppressed. On the Ist of
January last the whole of the diplomatic body at
Quito presented an address to the President, con-
gratulating him on the peaceful state of the coun-
try, and stating he would be at all times assisted
by their sympathy and zefil. The President had
laboured in a noble way to the development of the
resources of the country. lie believed that there
had also been received at our Foreign Office most
satisfactory accounts of the condition of the repub-
lic. Their Government were anxious to construct
_ _

roads from Guayaquil to Quito, a distance of 83
leagues, where at present there were no means of
transport of merchandise but on mule's backs or the
shoulders of men. A vast improvement in the re-
sources of the republic was looked to from the con-
struction of roads and cross roads, while it must ulti-
mately benefit the bondholders and lead to increased
dividends. At present there could be no sinking
fund till the Ecuador Government would pay 6 per
cent. ; whereas other states had not submitted to
this, and in the case of New Granada, when they
paid 3 per cent. they commenced a sinking fund,
and the republic of Ecuador sought to do the same
thing. For the purpose of making these roads they
were endeavouring to raise a loan in this capital,
which loan would be brought out by a house of the
highest respectability ; but that loan formed no part
of the business of this meeting. The Government
of Ecuador hoped the bondholders would assist them
in this loan, in which case the arrears due to the
bondholders would be cleared off. The bondholders
were aware that the agents, Messrs. Guterriez, had
£10,075 in their hands when they stopped payment.
That house, at the time it was selected by Mr.
Mocatta, was held in the highest repute; and with
respect to this debt, the committee had claimed it
as a privileged debt, as it was one which ought
never to hays been mixed up with the commercial
matters of the house, and Mr. Mocatta hoped it
would be established as a privileged debt. The divi-
dend on the estate was not likely to be a bad one.
If the loan were carried out all arrears would be

liquidated. During the war with Peru, under cir-
cumstances of great pressure, with their ports
blockaded and the army of Peru invading the coun-
try, the Government of Ecuador were obliged to
appropriate the whole of their customs and every-
thing they could lay hold of to meet the emergency,
and some £21,175, intended for the purposes of the
loan, was absorbed ; and since Nov., 1857, nothing
had been set apart for the charges in London. This
sum they proposed, in the event of obtaining the
assistance required, to pay to the bondholders in
cash within a period of three months, one great ob-

jest being to create a sinking fund. The chairman
then read a letter from Signor Florez, dated June
27, requesting the committee to call a meeting of
the creditors of Ecuador, stating that the Govern..
ment had resolved upon making a road between
Quito and Guayaquil, a distance of 83 leagues
across the chain of the Andes. To effect this great
work the Government would be obliged to raise a
loan, the Government undertaking to complete the
road in four years, and to devote all the excess dis-
tinctly to the construction of ways. If this loan
should be raised, there would be funds to extinguish
the £21,000 arrears, with the exception of which
all the monies would be applied to the roads.
Mr. GURSTENBERG asked whether there were any
resolutions to be proposed.
The CHAIRMAN said there were resolutions which
had been drawn up, which were strictly in con-
formity with Signor Florez's letter.
Mr. GREEN desired to know whether it was under-
stood that this meeting had nothing to do with the
proposed loan.
The CHAlRMAN—Certainly.
Mr. GREEN thought the meeting should be put in
possession of all the facts. Had there been any
contract entered into by parties in this country ?
If so, who was to be the commissioner ?
The CHAIRMAN—No contract has been entered
into for the loan at all.
Mr. GURSTENBERG endorsed every word that had
been said by the chairman as to the republic of
Ecuador, and he bore testimony to the respectability
and honesty of its chief. The people, too, were
actuated by a great desire to do what they could
to develope the resources of the country.
The CHAIRMAN said that, with respect to the
proposed loan, when it was first mentioned to the
committee they stated that they would have nothing
to do with it if it was not to be strictly limited to
the purposes of the roads.
Mr. HAZLEWOOD thought if the bondholders
be doingondholders
threw over this loan they would no
themselves justice. If there were no loan the in-
terests of the bondholders would be sacrificed
After a very protracted and perplexlng discussion,.
The CHAIRMAN put the first of a series of reso-
lutions which had been framed, Ist :—" That this
meeting, recognising the benefit which will result
to the bondholders from the extensive works of in-
ternal communication which the Government of
Ecuador is about, at a great cost, to undertake in
that republic, -whereby its commerce' and revenue
may be expected to be largely increased, having con-
sidered the desire expressed by the Government that
measures may be taken for providing for the gradual
redemption of the foreign debt of the state, does
agree as follows—That, when the produce of the
portion of the customs revenue of the port of Guaya-
quil assigned to the foreign debt by the agreement
of 6th Nov., 1854, shall be more than sufficient for
the payment of a dividend of 1 per cent. per annum
on the foreign debt, with the commission thereon of
the commission of agency in London, there shall be
appropriated towards the redemption of the bonds
out of any such surplus, one-tenth part of the whol
of the said surplus, or so much thereof as the said
surplus may represent."
Mr. GODEFROY moved as an
alteration be made in the existing agreement.amendmentthat no
Mr. LEVY having second
the amendment 14,
vote, as
efdorthe amendment it was
put, when there appeared
againstThecl;nzanmdANtheire declinedbe rt s() beingge a eeqaus g
he felt that unless there was a considerable amount
of unanimity, the original motion ought not to be

carried. osed thles6e2c,onadndrestohleutlE.on
Mr. FIELD then prop
"That there being now in dividendsarrroepaorstehdetoligui
da liquidate ec dueutha e-
-Ist Nov., 1861, and Ist May, 8
torian Government having proposed
latter thereof at the rate of Ns per cent., and that
di f
not, re:
exchanget hne o
the
hh ee r
lt
sfhotrnerrrNete shallzthoheaNe,
and
h ba
let . issued
last,
eyeeratrifilyeadtievai,dreenpdrewseanrtrianngt
rionfteGr eusttiei
sumdCoo.
received by them as
th
estateei,folf
Gru,ao37as due from tho
aquil, for monies
A vote of The resolution
to
agents of the bondholders."
was put and carried.
of thanks the chairman end t 4 comb;
mittee the proceedings.