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

SPAIN.

Our accounts from Madrid are of the 16th inst.
The Gazette publishes a long decree, relative to
the municipal surveillance and police of the capital,
which is hereafter to be exercised by 5 inspectors,
30 commissaries, and 30 deputy-commissaries.
Those functionaries are placed under the orders of
the Goiernor of the Province, as respects the ser-
vice of public security, and under those of the al-
cade corregidor for matters connected with the
municipal surveillance.
On Good Friday, the Queen, agreeably to the
custom of her ancestors, had pardoned seven indi-
viduals under sentence of death for murder.

- -
ISSUE OF £6,000,000 OF EXCHEQUER
BONDS.

A notification from the Chancellor of the Exchequer,
inviting tenders for 6,000,000/. of Exchequer bonds, in
three series of 2,000,000/. each, bearing 3, per cent. in-
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 time 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 or parts of the following securities, viz. :
" Two millions of Exchequer bonds, bearing interest at
the rate 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 3/. ICs. per cent. per annum, payable half-yearly;
and the bonds to be liquidated and paid off at par on the
Bth of May, 1859.
" Two millions of Exchequer-bonds, bearing interest at
tho rate of 3/. 10s per cent. per annum, payable half-yearly;
and the bonds to beliquidated and paid off at par on the
Bth of May, 1860. •
"The bonds will bear date on the Bth of May, 1854, 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 bo paid off at par..
, The tenders must be made in separate sealed letters
for each set of bonds, and be marked on the outside an
follows :

. A, for the bonds ending on the Bth of May, 1858.
"B, for the bonds ending on the Bth of-May,,1859 ; and
0, for the- boxds ending on the Bth of May, 1860.
"No tender will be received for a less sum than 1000 i.
" The tenders will be un,lerstood to be made in Exche-
quer-bills at par, but subscribers will be allowed the option
ut paying money in lieu of Exchequer-bills, upon paying
is. for every..looi. so paid in money.
"The proport;ons of the subscriptions to be discharged
in Exchequer-bills and in money must be separately stated
in the tenders.

" The instalments must be paid in the following propor
tions and at the following periods, viz.:—
" 10 per sent, on Monday, the Bth of May.
'" 30 per cent. on Friday, the 9th of June.
" 20 per cent. on Tuesday, the 11th of July.
20 per cent. on Friday, the Bth of September.
" Andtthe remaining•paymeut. to complete the contracts
on Tuesday, the lith of October. - •
" Parties desirous of Paying the instalments at an earlier
period. will be at liberty to do se, and they will receive in-
terest at the rate of 31. 10s. per cent. per annum from the
day of paymentnp to the respective days on which the in-
• stalnients fall due.

"When the instalipents 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 Dank of Englaud
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 2,000,0001. 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 be
at the same rates, they will be subject to a pro rates dimi-
nution iujsmount,, if the acceptance of such 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 Loids Commis- .
sioners of the Treasury, in the presence of the Governer
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 of'
England, at and after 10 o'clock on the morning of the &I ,
of May, to all parties- whose tenders have been accepted,
_on their applicatiOnp.t.the Bank Par that purpose. - •
" Scrip receipts will be issued by the Bank in the usual
manner, which will be exchanged by the Bank of England
for Exchequer-bonds as soon as possible after the pay-
ments' are completed.
"The bonds will be issued in sums of 1001., 2001.,.500/.,
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 finan- ,
cial explanation to the House of Commons—namely, to
:provide the means of- keeping up an ample Government
balance -a.t the Bank,-so as to Pc prepared for all contin-
gencies during the -tar. It sill, 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 of that
institution to graft 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 fhe ad-
vantage of tendering them instead of cash is only Is-.' per
i cent., and their price s now between par and 3s. pre-
mium, while the withdrawal of any con,iderable quan-
tity would at once cause them to be much higher: The
introduction of the paltry difference in the option between
bills and cash seems,. therefore, a needless complication.
'Dismissing that point, tire question is simply whether
°I: ef a s aboutervv 4
itL.t3ael
0)
or
interesteont
bdpseousl
London
finwle
axicaceenntddwh it:
e i)tllyorm
take
aeyt
ei these bonds
assumedr bnomn
ednst at
w ail
thatl
ut pricehoet
hfoer facthrße awfitvaeyd, debentures ns4tsvrepe;rylaretrth the
North-Westernned
and that those of , the Great Western are also to be. had
to pay
.4a t. •
. per cen .., ,wlll, perhaps, at first sight, induce
a doubt upon the. pi t...14,,tr05t 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 811 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 quartqly and other advances of the Bank
of England to 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 oh-
tainecL by ,employing the same amount in the funds,
while the certainty of their being paid off in a few years
Must guarantee them against all-possibility of a heavy
depreciation, there is reason to conclude that t ey_wi
ll
be sought for .to the required extent. In case of any
adverse meve.of the money-market before the 2d of May,
the Government will, of course, have to lower the terms
on which they have based their calculations. As regards
the method employed on the present occasion,
.or Exsnarnely;
the creation of a new security, instead of stock
chequer-bills, no objection can be raised. The enormous
eiperienae 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 shquld deprive the public of itiad.
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. ail events the power. of reneWat
upon equitable conditions. The circumstance that at•
the period when the last series will became recieenlable
the ai?,ii,tica-burden of the-national exiieriebe**
cleccena-of 3,20t500z., from 41* expliyol. anntitieva
affsri some auoozr:Awant that the
%/44-g. 12-41-4 119-444 14 &Qiit 40111 I'dt'
_ _ _