The Sun.
London, England, 1853-06-04 00:00:00

CONVERSION OF EXCHEQUER BILLS.

(From, the Times Money Article )
The final amount of the proposed new securities
of the Chancellor of the Exchequer accepted by
the holders of the 9,500,0001. petty Three per Cent.
Stocks in preference to being paid off is 1,342,1891.,
while the extent of voluntary conversions of Con-
sols and Reduced is at present 1,681,357/., making
an aggregate of 3,023,5461. Of this 252,5991. has
been taken in the New Three-and-a-Half per Cents.,
2,761,477/. in the New Two-and-a-Half per Cents.,
and 9,4701. in Exchequer Bonds, and the immediate
annual saving to the country, as far as the substitu-
tion of the specified sums is concerned, will be
rather more than 7,0001. There remains, however,
8,157,8111. to be paid to the dissentient holders in
1854, and it is upon the ultimate liquidation of
this more considerable sum that the success of the
measure must turn. Many persons will, probably,
assume that because the total acceptances of the
proposed securities amount to so small a proportion
of the sum attempted to be converted, the measure is to
be viewed as a failure. But this is not the case. Not
merely will there be an absence of failure even if Consols
should merely remain at par about the period when
the 8,157,811/. will have to be discharged, so as to en-
able the money to be borrowed upon the same terms as
have hitherto been paid for it, namely, 3 per cent., but
there is a margin for an improvement in those terms
in any manner that shall not involve a cost to the
country of more than 7,0001. per annum, the amount
saved by the new securities already disposed of. Even,
therefore, under the supposition that the Chancellor
will have no alternative but to create fresh stock to
pay off that which will fall due in January and
April, there is little ground to apprehend that the
balance of the whole transaction will in any case
show a loss ; and while the danger is thus slight
on one side, there are a number of contingencies
open on the other which are advantageous. There can
be no doubt that but for the singular turn which the
market has taken from the political anxieties caused
by the conduct of Russia, coupled with an unexampled
prevalence of easterly winds retarding the arrival
of even a fair proportion of gold from Australia,
and which Mr. Gladstone could not be expected to
have included in his calculations, the entire conver-
sion would at once have been effected on the offered
terms. All that is required, therefore, to put the
country in a position that would enable a bargain at
least as satisfactory to be made between this period
and the beginning of next year, is that the Turkish
question should be settled, and that the Australian
delays should cease ; while if the Bank bullion
should not only be restored to the point at which it
lately stood, but should again, after the drain which
has now continued, with few intermissions, for 12
'months, gradually augment, it will, of course, be
possible not only to obtain the required amount on
the terms which have just been rejected, but upon new
ones which would be still more favourable for the Go-
vernment. It is also to be remembered that an active
state of the revenue may increase the Chancellor's anti-
cipated surplus of 493,0001. in April, and place him in
funds that would lessen the necessity of a loan in any
shape. The question, therefore, to be considered is, whether
a state of affairs aS bad or worse than that which now exists
or one of restored animation and confidence is most
likely to prevail during the next eight or nine months.
A large majority, it is believed, of the commercial com-
munity are disposed to look upon the cause of the pre-
vailing perplexities as essentially of a temporary cha-
racter, while the prospects yet to be realised of the
gold discoveries are permanent ; and these persons, it
may be presumed, will still look upon the Chancellor's
measure with satisfaction. On the other hand, some
may entertain forebodings of the harvest, and also that
the Continental difficulties may increase in a degree that
will more than counteract all the prosperity that is pro-
mised ; but even in that case they will have no right to
impugn the Government plan, since the reason of its
failure will be found in circumstances to which all finan-
cial arrangements spread over any period of time must
be subordinate.

With regard to the Exchequer-bill operation, completed
on Thursday, the considerations are also not unsatisfactory.
It appears that the aggregate for which payment will
be demanded is 3,110,0001., and that the amount of new
bills accepted at the reduced rate of a penny a-day is
5,890,0001. Upon the latter, therefore, a saving to
the country is effected of 22,001. per annum, while, as
respects the amount paid off, the interest will for a
time be entirely economised, since the Government
balances will be employed for the purpose, which
would otherwise be lying in the Bank of England.
The extent of the ultimate gain will depend upon the
future state of the money-market and the revenue re-
ceipts ; but it is, at all events, gratifying, that by a
judicious employment of moneys actually in hand the
Government is enabled to maintain the circulation of
the British floating debt to the extent of 15,000,0001.
at a rate of interest, as compared with all other
securities, without example in the history of commercial
nations.

The Government purchases on account of the Sinking
Fund were made yesterday in Three per Cent. Stock,
owing to the dealers being unwilling to sell Exchequer
bills at the rates at which they have been recently
offered, the closing quotation of those securities yester-
day being ls, to 4s. ptemium. _

It appears that With regard to the 469,0001. of the
Three per Cents, to be paid off or converted, held on
account of suitors in Chancery, the Lord Chancellor
finally determined not to order Stock to be accepted.
The amount of Exchequer Bills exchanged for Exche-
quer Bonds is 237,0001. These, it is believed, were
chiefly sent in by the Irish banks.