The Sun.
London, England, 1853-05-09 00:00:00

two years. By this operation the Bank will lose
1,700,000/.
2d. To maintain at par the caimds (Government,
notes), bearing interest amounting to 132,000,000
piastres; and when holders of cairn& can exchange their
paper against specie, they will prefer keeping them, to
enjoy the interest, which is 6 per cent. at present, and
the directors of the Bank anticipate that their exchange
operations will be limited so as to entail little or no loss
to the firm.
3d. To maintain the exchange at 110 piastres per
pound sterling ; this, in lieu of giving a loss to the
Bank, is expected to yield large profits. The Bank bills
will always be preferred, and will fetch higher prices on
account of the bills being issued against actual funds
lodged in the hands of first-rate firms in England. If
the old Bank sapped its foundation it was because the
directors were obliged to remit to meet the payment of
their drafts, and on account of the general discredit they
sold at 110, whereas they were under the obligation of
purchasing at 112 and 113 ; and with contingent ex-
penses it amounted to 115 and 116 —a loss by conse-
quence of five and six piastres for every pound sterling
drawn. In the present case the Bank will wait for
favourable periods when bills can be purchased at low
rates, and this occurs invariably when grain comes down
from the interior to the shipping ports.
4th. The Government receives its cairn& gratis at the
end of 15 years, in six yearly instalments of 22 millions
of piastres, to commence from the ninth year ; the Bank
receiving, however, the interest on the same at 3 per
cent. per annum.
On the other hand—

Ist. Tile Government grants to the Bank a dotation
of 30 millions of piastres without interest, and to be re-
turned at the expiration of the contract without partici-
pation in the dividends.

2d. The Government grants an annual subvention of
30 millions of piastres for 15 years, payable by the
Treasury from the tribute of Egypt or other revenues.
With such resources, the Bank will have ample
means at hand of effecting a favourable loan for 1),
to 2 millions sterling, redeemable in 15 annual
payments, in order to effect the withdrawal of the
base coin without encroaching on the capital of the
Bank. Now to pay off two millions sterling in 15
years will rcquire an annual sum of 197,3331.,
whereas the subvention of the Government is
275,0001., leaving in the hands of the directors an
annual sum of 77,600/., which is more than suffi-
cient to meet the engagement to return the caimes
after 15 years, with the advantage of making use
of the money until the term of the contract expires.
There is still a balance of 300,0001. (if the loan be
two millions), after paying the loss on the base
coin, and the interest on this sum would be suffi-
cient to pay the expenses of the establishment,
leaving the capital of the Bank quite free for othe
legitimate purposes.
Mr. Trouvee Chauvel, who is now in London,
undoubtedly will be well received by capitalists
who have not daily opportunities of investing funds
n such advantageous terms.
The capital of the Bank is two millions sterling,
and in shares of 2,000 piastres each. The interest
guaranteed by the Sultan and his Ministers for 15
years is 6 per cent. per annum, exclusive of the
profits that the Bank will realise. The governor
of the " Oriental Bank" is Mr. Mihran Duz, an
Armenian gentleman of wealth and established
probity. The directors are mostly Armenians, but
English interests are represented by Mr. Charles
Hausan, the French by Mr. David Glavany, and
the Russian by Mr. Garifi—three merchants of
standard reputation.