The Sun.
London, England, 1865-01-11 00:00:00

" BUDGET OF 1864.

" It is not yet possible to foresee with exactitude what
will be the balance of 1864.

" The new law as to sugars, by permitting the tempo-
rarily free entry of raw sugars, has substituted for the for-
mer mode of levying duty guaranteed tenders discharge-
able at the end of four months. The diminution in the
duties collected which will result fromthis change will not
amount to less than 50 millions at the end or the current
year ; but it may be permitted to hope that the greatest
portion of this awn, which belongs to the Budget of 1864,
will be recovered during the first half of 1865.
" Save the eventuality I have just pointed out, the pre-
visions of the Budget of 1864 will be fully accomplished.
In fact, if the Customs show a diminution (direct taxation
has been even more easily levied in 1864 than in preceding
years), the taxes upon stamps, upon beverages, upon to-
bacco, and of postage offer at least an equivalent improve-
ment. It is therefore certain that, if there is a deficiency in
1864, it will be limited to the diminution which may take
place in receipts arising from the consumption of sugars,
and the Treasury will nevertheless have sustained a loss
of 6,500,000 f., in consequence of the suppression during the
second half-year of half of the second decime upon regis-
tration.

" The non-realisation of the bonds of the Mexican Loan
which we have received in reimbursement of our advances,
conformably to the Treaty of Miramar, cannot be consi-
dered as a deficit. These bonds, calculated at the rate of
60f., represent a sum of 54,000,000 f., 40,100,000 f. of which
go to the Budget of 1864, and 13,900,000 f. to the Budget of
1865.

"The situation of the Treasury enable us to await more
favourable circumstances for the negotiation of these bonds,
which there is every reason to believe will not be long in
coming to pass. In the meantime, the Budget of 1864 will
be advantaged by the interest of the nominal capital at the
rate of 6 per cent. —i.e., by a sum of 5,400,000 f.
"With regard to the 12,500,000 f. which are to be paid by
the Mexican Government from its own resources during
the second half of 1864, and which appear in the Budget of
that year, they have been regularly discharged.
" Although the past year has been favoured by an abun-
dant harvest, business has had to sufferby the continuation
of the American war and the monetary embarrassments
which have weighed upon enterprise. France has never-
theless been less severely tried than other countries. If the
rate of discount was for a short time at 8 per cent., in Eng-
land it has been several times raised to 9 per cent., and has
always been higher than that of the Bank of France.

" Despite the inconvenience this dearness of capital has
occasioned, the prudence of our commercial men has been so
great that the number of failures and their importance has
only been slightly increased.
" People have been much occupied with seeking the
causes which for some years past, at frequent intervals and
at almost periodical epochs, have brought about the rise in
the rate of interest, and petitions have been recently ad-
dressed to your Majesty to ask that this question should be
the subject of inquiry. , The Bank of France has seen its
organisation attacked, and, although convinced that no
blame could be imputed to it in the evil pointed out, it has
itself manifested the desire that this inquiry should take
place, and should be extended to all the facts which bring
about the dearness of capital. If your Majesty should deign
to authorise it, I believe that a useful manifestation to re-
assure the public interest and enlighten public opinion will
result from the impartial and complete examination of this
important question.
" I will not terminate this analysis of the results of 1864
without stating that we have been able to re-enter upon the
strict execution of the prescriptions of the Senatus-Consul-
tum of Dec. 31, 1861.

" Although we have had to repress an insurrection in
Algeria, and to send thither considerable reinforcements,
we hope that we shall not ask any supplementary credit of
the Corps Legislatif, and that if this eventuality should
occur, which cannot yet be entirely ascertained, it will be
restricted within very narrow limits.