The Sun.
London, England, 1862-02-12 00:00:00

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725 - .. 727 50
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548 75 .. 550 -

WITHDRAWAL OF 2HE FRENCII

LOAN.

(From the Times.)
It was announced yesterday morning that the pro-
posed loan of £4,000,000 to the French Government
or its agents has been altogether given up. The causes
of this abandonment were not stated, except in an
intimation to the subscribers that the securities
which were to be hypothecated are not to be ob-
tained. It is plain that the parties with whom the
negotiations originated must have been greatly mis-
led, but it is needless, especially after the debate on
the subject in the French Chambers, to speculate
on the considerations which have brought about the
present result. Many persons have been put to in-
convenience, and some have sustained loss, by their
preparations for the transaction, but others, and
particularly those who were enabled to buy Ex-
chequer-bills at Bs. premium. which have now again
recovered to 1.65., have profited in like proportion.
The affair therefore calls for no further public com-
ment, and M. Fould, for the success of whose plans
the best wishes are entertained on this side, may
be congratulated on his non-acceptance of a mode
of assistance the employment of which would cer-
tainly not have been favourable to his reputation.
It is also satisfactory that we shall escape establish-
ing a precedent for our leading banks to lend extra-
ordinary sums on foreign stocks, to be locked up
during three or six months, when the politics of the
world are as unsettled as at any period of history.

(Flom the Daily News.)

A good deal of surprise was occasioned yesterday
morning by an intimation from Messrs. Barings to
the subscribers, to the effect that the proposed loan
to France cannot be carried out, in consequence of
the inability of the French contractors to supply
the requisite securities, It will be very curious to
learn exactly how the hitch has occurred. The
view taken in London is that the affair, in conse-
quence of the injudicious magnitude of the sum in-
volved, had attained a publicity which defeated the
peculiar objects aimed at by the Government. It
has been made a subject of damaging reproach to
the ministry in the Chambers in the course of the
debates on the conversion scheme. The Government
has winced the more under the criticism inflicted
upon its policy, because the loan is avowedly part
and parcel of a grand scheme of Bourse legerde-
main, whereby the public were to be duped, and
prices for the time bolstered np. It is said that a
feeling of extreme annoyance prevails in official
circles in Paris, and that to the strong impression
entertained with reference to the matter in a still
more exalted quarter the present collapse of the
perfected negotiation is mainly due. The original
design was, probably, to raise money in England
with complete privacy. The inability of the French
contractors to supply the Three per Cent. Rentes
which formed the stipulated security betrays plainly
what was always pretty clear, the origin of the
negotiation, and helps to bring out in stronger re-
lief the unscrupulous mendacity (a milder word
does not meet the case) of the government journal.
The result shows that, as the Government is pre-
vented by high intervention from supplying the
requisite stock, no one else can do so. But it was
always absurd to imagine that the transaction could
be for account of the Bank of France, which, on
this hypothesis, would be carrying on the very
lucrative game of borrowing at 6 per cent, or up-
wards, and lending at 4. The common sense of the
public on both sides of the Channel carries them
straight to the only possible conclusion, which is,
as before remarked, that the loan was a mere ma-
noauvre to "rig" the market for an interested ob-
ject, and has failed, from the inconvenient publicity
acquired by it. There is some consolation in find-
ing that the strictures of the English press have
some influence towards helping to straighten the

;ortuous course of French finunce. It is now more

than ever a question whether the Government
will be able to force the proposed conversion

through, and whether, instead of trying for a
loan in a hole-and-corner fashion, it will not be
ultimately obliged to appeal to the moneyed classes
in the ordinary way. To meet the deficit by means
of a public loan would be legitimate enough, as
such matters are regarded, and it would be at-

tended with the important advantage of giving
French capitalists that influence which they ought
to have in the financial affairs of the state. In a

word, a public loan would not go off well withou

thel Government consenting to what the country
wants more than anything—reduction of expendi-
ture, particularly in the military and naval depart-
ments. For these reasons, the failure of the pro-
posed loan is fairly matter for congratulation, apart
from the favourable effect which the event is calcu-
lated to have upon our money and stock markets.
There is a minor matter which may ho com-
mended to the consideration of the French Govern-
ment, and that is the compensation due to the per-
sons in this country who treated the proposals of its
agents as serious, and who have gone to a large ex-
penditure
of time and trouble, in addition torealising securities and calling in loans, in order to
fulfil their part of the bargain. it would appear
that Messrs. Barings are absolved from blame,
being merely agents in the affair, and of course not
responsible for the vagaries of the Paris financiers.

'z::~_~~

THE TREATY WIEB MOROCCO.

em. °
Yesterday the papers relating to the loan raised
by the Emperor of Morocco in London, and the con-
vention relating thereto, between her Britannic
Majesty and the Emperor, were issued from the
parliamentaoy printing-office. The convention,
which was signed in the English and Arabic lan-
guages at Tangier on Oct. 24 last, and the ratifica-
t ions of which were exchanged in the same city on
Dec. 20, is as follows :
" His Majesty the Emperor of Morocco being
desirous of raising a loan of £426,000 sterling in
London, to enable him to meet his engagements
with her Catholic Majesty, and having requested
the good offices of her Majesty-the Queen of the
United Kingdom of Great Britain and Ireland,
with a view to facilitate that object ; and her Bri-
tannic Majesty having egreed to the request of his
imperial Majesty, their Majesties have resolved to
conclude a convention on the subject, and have
named as their plenipotentiaries, that is to say :
Her Majesty the Queen of the United Kingdom of
Great Britain and Ireland, John Drummond Hay,
Esq., Companion of the Most Honourable Order of
the Bath, her minister resident at the Court of his
Majesty the Sultan of Morocco; and his Majesty
the Sultan of Morocco, his officer, the learned Fa-
kee Seed Hadj Abderrahman el Ajee ; who, after
having communicated to each other their respective
full powers, have agreed upon and concluded the
following articles :
" Art. 1. His Majesty the Emperor of Morocco
engages that from and after the ratification of the
present convention there shall be paid over to a
commissioner named by her Britannic Majesty,
50 per cent. of the custom duties at all the ports of
the empire of Morocco. Her Britannic Majesty, on
her part, engages that six weeks before the period
at which the half-yearly charges on the loan of
£426,000 sterling, which the Emperor of Morocco
is about to raise, shall become due, she will transfer
to the agent or agents of the contractors for that
loan the sums so to be received by the commis-
sioner of her Majesty,or so much thereof as mey be
sufficient to pay the interest and sinking fund on
the said loan, the amount of such sums not exceed-
ing in the aggregate 15 per cent. on the above-
mentioned sum of £426,000 sterling. But her Bri-
' tannic Majesty shall not be liable for the payment
of more than she receives. In case the
sums received should be more than sufficient
for such half - yearly payments, the sur-
plus shall be repaid by the British com-
missioner to the officers of the Emperor of Morocco,
duly authorised to receive the same.
" ' Art. 2. When, by means of the payments pro-
vided for in the preceding article, the whole of the
loan of £426,000 sterling shall have been repaid,
together with the interest due thereon, the commis-
sioner of her Britannic Majesty shall cease to re-
ceive the 50 per cent. of the custom duties at the
ports above-mentioned, and shall repay to the said
officers of the Emperor of Morocco any balance that
may be remaining in his hands.
" Art. 3. The present convention shall be rati-
fied by her Majesty the Queen of Great Britain and
Ireland, and by his Majesty the Emperor of Morocco
and the ratifications shall be exchanged at Tangier
as soon as possible within 40 days of the date hereof.
"' In witness whereof the respective plenipoten-
tiaries have signed the present convention, and have
affixed thereto their respective seals.
" Done at Tangier, the 24th day of October, in
the year 1861, corresponding to the Moorish date
of the 18th day of the month of Rabea the Second,
in the year 1278
" H. DRUMMOND HAY.
(Arabic signature of)
" HADJ ABDERRAHMAN EL AJEE."
The following is a translation of the document,
bearing the royal signet of the Sultan of Morocco,
by which the Moorish plenipotentiary received full
powers :
" In the name of God, the merciful and clement !
There is no strength or power but in God, the most
high and mighty ! Be it known by this our letter,
elevated and protected by God, and luminous as the
sun and moon, that we have, by the help of God,
granted to our employed, the Honourable Hadj Ab-
derrahman-el-Ajee, full power and authority to con-
clude with the minister, Mr. J. H. Drummond Hay
the convention, and to treat with the merchant,
Lewis Forde, regarding the arrangements relative
to the loan of 2,000,000 dollars, to be advanced by
the British capitalists, and that we shall in no way
disprove of any one of the arrangements (which he,
the said Hadj Abderrhman-el-Ajee, may have come
to in the negotiation), for we have ceded to him all
the authority (requisite) :to act in the matter, ac-
cording to his own free judgment, and without
having to refer again to us for instructions. He
has our full powers, and whatsoever he may do
will be well done. Peace.
Done on the 14th day of the present month (of
Rabea the Second) of this year (1278) October 20,
f 1861)."

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