The Sun.
London, England, 1854-04-22 00:00:00

'

ISSUE OF £6,000,000 OF EXCHOUEI?:
BONDS.

A notification from the Chancellor of the Exchequer,
inviting tenders for 000;0001. of Exchequer bonds, in
three series of 2,000,000/, each, bearing 34 per ciint.
terest, and redeemable respectively in four, five, and six
years, was received yesterday afternoon at the Stock
Exchange. It was mentioned-lately that a loan of some
kind was obviously contemplated by the Government,
and the suspense of the public on the subject is now
ended. Subjoined are the full conditions upon which
the transaction is to be carried out. Subscriptions for
the bonds may be made in Exchequer bills or cash, to be
completed at once or in five instalments, extending to
the 17th of October next, and proposals will be received
from the preSent- tune until Tuesday week the 2d of
May.

•
" "Treasury-chambers, April 21, 1854.
The First Lord of the Treasury and the Chancellor of
the Exchequer hereby give notice, that tenders will be re-
ceived at the Bank of Eng'and daily, between the hours of
10 o'clock a.m. and 2 o'clock p.m., from the date hereof
until Tuesday the 2d of May next inclusive, for the whole
or part.orr parts of the following securities, viz.:—
Two millions of Exchequer bonds, bearing interest at
the rile of 3/. 10s. per cent. per annum, payable half-yearly;
and the bonds to be liquidated and paid off at par on the
Bth of May, 1858.
" Two millions of Exchequer-bonds, bearing interest at
the rate of 31.105. per cent. per annum, payable half-yearly;
and. tha boxrds to be liquidated and paid "off at Par on the
Bth of May, 1859. - •
"Two millions of Exchequer-bonds, bearing interest at
the rate of 31. 105. per cent. per annum, payable half-yearly;
and the bonds 'to be liquidated and paid off at par on the
Bth of May, 1860.
"The bonds will bear date on the Bth of May, 18'4'4, on
which day the interest will commence, such,interest to be
paid half-yearly on the Bth of November, and Bth of May.
up to the days on which they will be paid off at par..
The. tenders must be made in Separate sealed letters
for each set of bonds, and be marked on the outside *,
follows :

"A, for the bonds ending en the Bth of May, 1858.
" B; for the bonds ending on the Bth of May, 1859 ; and
C, "for the bonds ending on the Bth of May, 1860. •
"No tender trill be received for a less sum than 1,0001.
" The 'tenders will -be understood to be made in Exche-
quer-bills at par, but subscribers will be allowed the option
of paying money in lien of Exchequer-bills, upon paying
le. for every 1001. so paid in money.
"'The propOrtions of the subscriptions to be:discharged
in Exchequer-bills and in money must be separately stated
the tenders.
" The instalments must be Paid lathe following prepor.
"
lions and at the fallowing periods, :
10 per cent. on Monday, the Bth of May.
30 per cent. on Friday, the 9th of June.
„ cent on Tilfty, the llth of July.
, Per *font. on Friday, the Bth of September.
And the remaining pay' ment to complete the contracts
on Tuesday, the 17th of October,
peri"odatrvtilielsbedeastirlibUpatoydinogsotlieainVihmeyenwtisllarteacneivea're lin"-
tedaryesotf"pat3teranttnpofto3thel°BrespP:ert'c'ent. per annum from the
ive days on which the m-
stalments fall dne. •
"When the instalments shall be paid in Exchequer-bills,
the interest which shall have accrued on the bills at the
time of such payment will be paid to the subscriber by
the Paymaster-General at the -Pay-office, Whitehall.
"Before the hour appointed for the last receipt of ten•
ders, on the 2d of May, the First Lord of the Treasury and
the Chancellor of the Exchequer will deposit with the
Governor and Deputy-Governor of the Bank of England
sealed papers, in which will be stated the reserved prices at
or above which they bind themselves to accept tenders.
"All tenders at or above those rates will. be accepted to
the extent of 2000,000/. for each of the three series of
bonds ; but a right of preference will be given to the
highest tenders in price. If two or more tenders shall he
at the same-rates, they will be subject to'a pro rata dimi-
nution in amount, if the acceptance of inch tenders in full
would occasion an excess beyond the sum of • two millions,
to which each of the series of bonds is to be limited. •
" The tenders will be opened by the Lords Commis-
sioners of the Treasury, in the presence of the Governor
and Deputy-Governor of the Bank of England, after :2
o'clock p.m. on the 2d of May; and notice will be. given
by the Governor and Deputy-Governor of the Bank 9f
England, at and after 10 o'clock on the morning of the 3d
of May, to all parties whose tenders have been accepted,
on their application at the Bank for that purpose.
"'Scrip receipts will be issued by the Bank in the usual
manner, which will be exchanged by the Bank of England
fin. Exchequer-bonds as soon as possible after the Pay-
ments are completed.
The bonds will be issued in sums of 1001., 2001.) 5801:,
and 1,0001. '

, It is not intended to apply to Parliament during the
present session for any further issue of, Exchequer .bonds
beyond the said sum of 6,000,0001."
The aim of the above loan is evidently that which was
indicated by Mr. Gladstone at the close of his last finfm7
cial explanation to the House of Commons—namely, to
provide the means of keeping up an ample Government
balance at the Bank, so as to be prepared for all contin-
gencies during the war. It will, therefore, as has been
already remarked, 'not produce any disturbance in the
money market; such as would be caused by the raising
of funds-to meet an immediate outlay not previously
foreseen. In proportion as the public, withdraw their
deposits from the discount•market to pay their subscrip-
tions for these 'bonds, the Government balance at the
Bank will be-augmented, and with it the ability •f that
institution to grant accommodation.
With regard to the probable success of the experiment
many different opinions will be entertained: ' Under
present circumstances, few Exchequer-bills-are likely to
be offered in exchange for the new bonds, since' the "ad-
vantage of tendering them instead of cash is, only ls. per
cent., and their price is• now between par and 3s. pre-
mium, *line the withdraiVal of any considerable quan-
tity would at once cause them to be much higher. ' The -
introduction of thepaltry difference in the option between
bills and cash seems, therefore, a needless complication.
Dismissing that point, the question is simply whether
the public will take these bonds at a price of about
100, since it may be' assumed that the reserved
terms fixed by the Government will not be very
far below, that. rate. The 4ct that debentures• of the
' London and North-Western Railway at 41 per cont.
interest can be obtained for three, five, or seven years,
and that those of the Great• Western are also to be had
to pay 4i per cent., will, perhaps, at firsksight, induce
a doubt upon the point. It must be remembered, how-
ever, that the same argument would apply to Consols,
yet that these are still bought in preference, notwith-
standing the fact that, even at their present quotation,
they pay less than 34 per cent. Although there might
be as much confidence in the due redemption of the de-
bentures of the London and North-Western Company
as could be entertained with regard to any securities in
existence, they could still bear no comparison with a
Government investment, inasmuch as they are not
sanctioned. to the same extent ' for the employment of
;trust-moneys, or equally available in times Of pres-
sure. The quarterly and other advances of the Bank
of England,td the public are made on all classes of Go-
vernment securities, but have never been extended to
those of railway companies. Hence, as the bonds at par
would,pay a higher rate of interest than could be
tamed by employing the same amount in the funds,
while the certainty of their being paid off in a few years
must guarantee thein against all possibility of a heavy
depreciation, there is reason to conclude that they will
be 'sought .for to the required extent. In case of any
adverse move Cf the money-market before the 2d of May,
the-Government will, .of course; have to lower the•terrns
on which they have based their Calculations. As regards
the method employed on the'present occasion, namely,
the creation•of a new security, instead of stock or Er
chequer-bills, no objection can be raised. The enormous
experience of the railway companies has demonstrated •
that debentures or bonds for a fixed term constitute the
most popular and convenient plan of obtaining advances,
and there is no reason why the Government by an ad- •
•herence to routine should deprive the public of its ad-
vantages. It may be said that the prospects of the war
are not such as to warrant an expectation that the sums
can be conveniently paid Off at the dates named, but in
.that case there is at ad events the power of renewal
upon equitable conditions. The
will
that at
'the period when the last series
"iibecome redeemable .
the annual burden of the national debt will experience a .
decrease of 3,207,5001., from the expiry of annuities,
&c., may also afford some e encouragement that the
matter will not then be a difficult one to deal with.

ME HARBINGER STEAMER.—The Government have
taken up the Harbinger steamer, of 921 tons, belonging
to the. General Screw Company, together with the
Hydaspes, of 1,850, belonging to the same company.
The former has only just returned from Australia, and
the latter arrived yesterday from India. Although both
the ships made long passages, they are said to be in effi-
cient condition, and fit to go to sea in 10 days. The
narbinger will take stores, and the Hydaspes troops.
The Jason, which is to take a full cavalry regiment,
with 303 horses, will also be ready for sea by the Ist of
May.

ST. PETERSDURG.L/rom St. Petersburg the dates
are to the.l3th inst. Produce continued to be purchased
for transportation to the Prussian port of Memel. The
exchanges exhibited an upward tendency, and a pro-
bability is expressed that the Government will send gold
to provide for the dividends on Russian stock. •
WEST GRANADA GOLD COMPANY.=A meeting of the
West Granada Gold Company was held yesterday, when
the report-of the committee appointed to investigate the
position of the concern was adopted. This document
recommends the dissolution of the old company and the
establishment of a new one, the existing share and scrip-
holders to be entitled to an equal number of shares or
scrip in the new undertaking upon payment of ss. per
share by two instalments. Tile capital sought to be
raised is about 27,5001., which will relieve the directora
from all liabilities, and provide 21,0001: for working the
mines, the 'machinery being already on the spot.
CILEVALIER BUNSEN.—Some doubt has been expressed
as to the intention of the Prussian Government, which
we announced some days ago, to recall Chevalier Bun-
sen, who has so long filled with ability the post of Prus- '
sian Minister in London. The information received by
us almost simultaneously both in this country and froth
our correspondent at Berlin was correct, though we
should have great satisfaction in thinking that the pub-
licity we gaVe to this intrigue, and our intimation of
the effect it was likely to produce in Western Europe,
may have suspended the execution of the measure, and
checked the triumph of the Russian party in the
Prussian Government. We have reason to know,
however, that Chevalier Besutrisenhasconavmebyeigud
ambiguous
the King of Prussia his determination not to remain.
trra ths, e
or -service
nlisisMeanjty on any
of a policy 'at variance .
s aisce theo f
instrument
alike with the true interests of Germany and of the
Western Powers. He has therefore replied to the clan-
destine efforts to obtain his recall by placing his resigns-
tion in the hands of the King, and by requesting to be
relieved from the performance of duties which are
neither consistent with his political opinions nor with
the firm alliance between Prussia and this country.
-- -. •