The Sun.
London, England, 1853-04-11 00:00:00

THE NATIONAL DEBT-RESOLUTIONS OP THE
CHANCELLOR, OP TILE EXCIIEQUE.R.

(Front the Times City Article.)

The _resolutions of the Chancellor of the Exchequer
regarding the national debt have, upon the whole, been
received in the city with satisfaction, since hi their
amended form they are in a great measure free from the
features which had at first excited alarm. Consols there-
fore have been steady throughout the day at quotations
slightly below those which prevailed when it was thought
there was danger of an improvident bargain for the
country in favour of the fundholder, but sufficiently high
to denote that there is now an expectation of ultimate
advantage for all parties.
From the explanations, the immediate course contem-
pitted by the Chancellor of the Exchequer can now be
concisely stated. In the first place, the holders of the
various petty 3 per cent. stocks to the extent of 9,500,000/.
are to be paid off at their own option, either in money
or by the substitution of 821. 10s. Three-and-a-Half per
Cents., yielding 2/. 17s. 9d. ; 1101. Two-and-a Half
per Cents., yielding 21. 155., or an Exchequer bond of
1001. for 40 years, yielding 2/. 15s. for a certain portion
of that term, and 2/. 10s. for the remainder ; such option
to be determined on or before the 3d of June next. Be-
yond this, as ragards the 500,000,000/. Three per Cents.,
known as Consols and Reduced, the holders are to have
the privilege of changing them for 34 per cent. stock at
the rate of 821. 10s. for every 1001. of the Three per
Cents. to any extent they may think proper. They will
also have the privilege, to the extent of 30,000,0001., of
changing them either for 1101. Two-and-a-Half per
Cents., or for 1001. Exchequer bonds, subject, apparently,
any diminution of that amount which may arise from
the holders of the 9,500,0001. that are to be paid off
having previously accepted these securities, the total
issue of each of which is not to exceed 30,000,0001. The
time allowed for the latter operation—that is to say, for
the conversion of Consols and Reduced—is to the IQth
of October next. While the general scope of the
plan is thus specified, there are several points of
detail on which, for the benefit of the public, the Chan-
cellor asks a discretionary power, in order that he may
ultimately make the best practicable bargain. For in-
stance, the period during which the Exchequer Bonds
are to bear 2/ per cent. is not to exceed 10 years, but in
the proposals for their issue that term may be shortened,
if it should been found expedient, and the Government
may also arrange to reserve to themselves the power of
paying off these bonds at the end of 40 years, or of con-
tinuing them at 24- per cent. With regard to the mode
in which the persons desirous of changing Consols or
Reduced for such portion of the Two-and-a-Half per.
Cents. or of the Exchequer Bonds as shall remain after
the holders of the 9,500,0001. of the petty 3 per Cents.
shall have made their selection is to be effected, the
Chancellor proposes that the power shall be left to be
exercised by the first comers, and that the books shall
be closed as soon as the limit of 30,000,0001. shall have
been reached. This, however, may be found highly
objectionable, since, if the number of applicants should
be such as to desire 40,000,000/. or 50,000,0001. instead
of 30,000,0001., the result would be a mere scramble.
As it stands, however, in its present modified state, all
violent objection to the general scheme has evidently
subsided, and, while its main features are regarded with
satisfaction, there is also a confident feeling arising from
the disposition manifested by the Chancellor to avail
himself of such rational views as public discussion may
bring forth, that it will assume a final shape, such as
will meet the approval of most persons, At the same
time the idea of sanctioning the creation of any form
of stock that will ultimate increase the nominal amount
of the debt, even although on a limited scale, is

regarded with unconquerable aversion. From the
first the fact was recognised that the contemplated
reduction of interest, would, if the saving were
applied_ to a Binking_fund, . return far more at the end of
40 years than the 101. additional principal proposed to
he created, and likewise.. that, the security being an an-
nuity,.. and, not. a .debt which can be claimed, the chief
point both for present and future generations to consider,
supposing that 'there is no hope or intention of wiping•
it off, is to look, not at the amount of the principal, 'but
at the annual payinent which it involves. The publie,l
however, with great propriety, are indisposed, to sanc-
tion anything that shall look like a declaration that the
capital is never intended to be paid, and, however
distant and difficult the prospect may be, they would
be pained to witness any step that should cause it
to appear more impracticable than ever. They are
aware, moreover, that there are methods by which
so long as the creation of stocks at a low rate
of interest is avoided, the extinction of the national
debt, although it may take centuries, can still be
rendered certain, and that in one part even of the
Chancellor's present plan an illustration of this fact is
furnished. He proposes to create a Three-and-a-Half
per Cent. Stock, which will effect a reduction of 171. 10s.
in the principal of the debt, and become liable to be paid
off at par at the end of 40 years. When that period
arrives the Minister of the day may offer the holders a
still smaller amount of stock, upon condition that they
shall be again exempted from the dread of reduction for
a further term ; and this process might go on at inter-
vals of 20, 30, or 40 years, until our liabilities had
dwindled to a point at which their payment, even in
money, would not be difficult. With the creation of
a Two-and-a Half per Cent. Stock all reasonable
hope of any such consummation is removed. Some
persons appear to think that the rate of money
is to go on declining, and that it will at a
future day be as easy to reduce Two-and-a-Half
per Cents. to Two per Cents. as it would now be S
to convert Three-and-a-Quarter per Cents. to Threes ;
but this is merely a result of the fallacy that the gold dis-
coveries are to have some wonderful effect on the rate of
interest. Inasmuch, however, as the only alteration
they can produce in that respect will be by opening up '
new countries, so as to increase the profits of commerce,
and render the use of capital more valuable, whatever
influence they exert must be exactly in an opposite di-
rection. Under these circumstances the public will still
regret that the creation of the Two-and-a-Half per Cents.
has not been altogether expunged from the scheme,
leaving the proposed Three-and-a-Half per Cents. and
the Exchequer bonds to be fairly tested. With the pre-
sent option the state of feeling as regards the Three-and-
a-Half per Cents. will not be tried in any way. A St.
belief prevails that in the absence of a more attractive 5
alternative they would have been taken to a con- St.
siderable extent, and so strongly is the tide of
opinion in favour of this mode of conversion, that it St.
would have been desirable to improve the terms rather St.
than to substitute any other system. .As regards the be-
lief that the Chancellor has been premature in propos- 64
ing any alteration, and that by waiting a little while he
might have done much better, it is to be remarked, that
there is little to warrant such a conclusion, since the in-
.St
creasing multitude of new companies brought out every
week, together with the thre tof one flagrant foreign 16
loan,- if not of several otherr, s'iows that the public, after S
exhibiting for years a childish timidity from which no S
thing could arouse them, have embarked on a tide that
will prevent all prospect of a renewed glut of money,
and must some day end in severe pressure. If they
would be content with the things they have already un-
dertaken, there would be no danger but, although these
should be considered sufficient for the next two or three
years, they will go on every day adding to them in an
increasing ratio until they have contrived to bring dis-
credit upon the whole.
The quotations of Exchequer-bills to-day were again
merely nominal, and doubts increase as to the possibility
of their maintaining their position. At the same time,
however, there is much misapprehension as to the degree
in which the contemplated Exchequer bonds are calcu-
lated to compete with them. Many persons speak as if
there were scarcely any difference between them, ex-
cept the difference of interest, but the fact that one
is always redeemable within twelve months, and
that the other is to be for 40 years, is a distinction
sufficient to show that while Exchequer-bills consti-
tute an excellent banking security, the bonds, ex-
cept in very small amounts, can never approach to
that position. Apart from the higher rate of in-
terest, however, there are so many facilities con-
templated in the new bonds, such as the half-yearly
coupons, the absence of any necessity for sending
them in to be renewed, and probably the arrangement
for the interest being payable at the branches of the
Baiiks of England and Ireland, as well as at the head
establishments, that unless some new inducements are
given to the holders of Exchequer bills, the temptation
to prefer the bonds will, perhaps, under almost all cir•
cumstances, prove too strong. In a great measure the
difficulty might be met by restcring to Exchequer bills
the especial value they possessed as a banking security,
when they were at all times receivable for the payment
of duties. Some years back this feature was altered,
and the value of the bill weakened for no useful
purpose whatever, since, by giving notice of an in-
crease of interest, any inconvenient tender of them
could be at once stopped ; and, if the step were now re-
traced, it would be an advantage both to the Govern-
ment and to the mercantile community.

Tian Av._STR. LIAN MAIL ..A
CONTRACT. —The Royal Austra-
luau Steam Company have received notice from
the Covern
ment of the withdrawal of their contract.
morning a se
HOSPITAL FOR
livered at St. Mark .Nsuurriox, BROMPTON.--=-Yesterday
,s
Church
of the above charity was de-
Carlton in '
gmen.tAle.rnapnnurch, Kennington, by the Rev.
the
During a very eloquent discourse,
the good effected by the gave a variety of statistics 'of
institution, not merely among
the afflicted of a single portion
icc/fiethe metropolis, but of
patients
The hospital
every district of
forkste
classed Unit
Theieents having peculiar
institution
luinanagement
was established
nthsience its
claims upon the benevolent.
which had marked the career of the careful
commencement, and the facilities afforded tor
ment of a most trying malady, had rendered the hospitaltreat
one of the most important in the count/7 A li8?ral
service.
collection was made at the conclusion of divine
In further aid of the samebenevolent cause, the Marcinifil
of Westminster has undertaken to preside over thean-
niversary in June next.
LAUNCH OF THE ELFIN WOOLWICH STEAM-PACKET.
—The directors of the Woolwich Steam-Packet Com-
pany, in order to keep pace with the improvements in
steam-packet construction, have had another fast boat,
built by Mr. Thompson, at Rotherhithe, added to their
little fleet of fast river steamers. At 20 minutes before
two o'clock on Saturday last, the directors, with their
friends, proceeded from Woolwich to the Commercial-
dock, and shortly after three o'clock the ceremony of
christening the new vessel was performed by Miss Col-
lins, a granddaughter of one of the directors, and the
Elfin glided into the water amidst the cheers of the nu-
merous spectators of the scene. Mr. 0. W. Lang, as-
sistant to the master shipwright at Chatham dockyard
from whose design, similar to those of the Dryad fast
steamer, the Elfin was built, was present, and the launch
took place to the entire satisfaction of all present. The i
Elfin is to he fitted with the engines formerly used in the
Ariel, and it is expected she will prove one of the fastest
boats belonging to the company. .. ', .