The Sun.
London, England, 1853-04-08 00:00:00

TATIONAL DEBT-THE RESOLUTIONS OF THE
CHANCELLOR OF THE EXCHEQUER.

The rise of prices this morning affords no proof that
the plan of the Chancellor of the Exchequer is approved
onits intrinsic merits, since such an event when carried
beyond a certain point would simply denote any given
proposition to be needlessly favourable to the fundholder
and Proportionably less advantageous for the country.
An ?pinion that this is the Case in the present instance
has in fact been almost universally expressed in the city,
and when it is recollected that the 'idea of an issue of
Exchequer &nds for 20 years, bearing no higher interest
that 21 per cent., was yesterday welcomed by all parties
as a measure alike calculated to be convenient to the
capitalist and beneficial for the nation, it will be under-
stood that disappointment must have been felt at a pro-
posal which, while it will effect a far less annual saving,
will involve the contingency of adding 10 per cent. t.)
1
greater portion of the National Debt. It appears
1:01'n the resolutions now published that the first part of
the scheme provides for paying off the following stocks
which unnecessarily -re-ent form distinct features of
theliabilities, v name.y-
--1-1 lit due to the f•-:!o-ith Sea Company, at • 3 per
L'3,682.78:1
Old South s.A. A • 3,010,873
at (Jar° Now South f-3-aea.' ditto, 'at'ditto
.I.l.§oatitiltklii:SielatiLt,liittite(3),, 1751, at ditto 2,137,931
1729, at ditto
70,292

£10,0P,133
t171.0t01;.
atulle holders of these are to have the op!on
instead— money for ,every 100/. Stock, or of taking
821, 10s. New 31 per Cent. Stock guaranteed against
reduction for 40 years—namely, till the sth
January, 1894, and which will yield an annual
110/. Twointe'.est of 2/. 17s. 91. ; or,
-and-a-half per Cents. guaranteed till sth Ja-
-1001. nuary, 1894, and yielding annually 21, 155.; or,
Exchequer Bond, hearing 21 per cent. for 10 years
—namely, till Ist September, 1864, and 21 per
Cent, for an. additional 30 years—namely, till
September, 1894.
irlt will therefore be observed that while the annual
f rne'g to the country from this conversion, supposing-
quer Bonds of 21 per cent. to have been success
-
21 Ycifered, would have been 50,0001., it will, if 1101. cf
loi_/,opoeor,
o.ocoein.t; stock should be claimed for the whole
only amount to 25,0001., and at the cost
2. adding I,ooooooi. to the principal of the debt. Be-
-4:0:1141! °trills however, it appears. that all holders of Con-
Reduced (the aggregate amount of which .is
4,028,474/.), al.
e to have the power, by giving notice
anY time before the 10th of October next, to commute
those stocks for either of the three descriptions of new
tosecurities now to be created, so that supposing the whole
be converted under this l dte Two-and-a-Half
per Cent. Stock to be the oPn:enhan the saving of inte-
rest effected would be but a quarter per cent. (since 1101.
Two-and-a-Half per Cents. clwould ypieled the holder 2/.
15 .), and a further load of 49,400,000/. would be added
pa,th.e permanent obligations of the country. So strong
':
has prevented
the feeling on this Point throughout the day that
147 8 prevented the advance in quotations from being at
since to what would otherwise have been witnessed,
ado„c,"o general impression has prevailed that its final
11., 1;4 la is out of the question. For a long time
when
a 8
ll at
a Stock tle doubt that a period was approaching w
10):F.cecepattedg
with the
Reduced, per cent. guaranteed for 40 years would
-ayntdheinparties interested in place of Consols
finding that these terms are offered
go w-te O 0 unnecessary possibility of an addition of
tlipnh,Oliosol.
to the nominal capital of the national debt,
apart from their universal and instinctive
demo it
aversion
to such an increase, feel that they must con-
as an act of great improvidence. At the same
time
it is to be
assumed that the three classes of
securities can be shown to have been calculated as
iieqkuelivy tealents ; and hence, although no explanation is
cause the proposition for the Two-and-.a-
lialt per Cent, Stock to be tolerated, sufficient will
Probably be urged when the Chancellor shall make
his statement to show that it has not been put forth
with consideration. The first of the three alterna-
tives---narnely, 82/. 10s. of a Three-and-a-Half per
Cent. Stock for every 1001. of Consols, is wholly in
accordance with the tendency of public opinion ; and
the same may be also said with regard to the transfer-
able Exchequer Bonds. Even in these cases, however,
it is believed that the terms are unnecessarily
give the
e-
able and especially that it is impolitic to givweerhof holders of Consols and Reduced the unlimitedtlexperiment
Making the conversion before anypar partial
rue,
has been tried to ascertain that point.. true, the
tenth paragraph of the proposed resolutions provides that
no amount of Exchequer Bonds shall be issued exceed-
ing in the whole the sum of thirty millions ; but as the
seventh paragraph states that every holder of Consols
d Reduced may commute his stock either for the
aew Three-and-a-Half per Cents., the New Two-and-
/zialf per Cents., or Exchequer Bonds, it is to be
ansamed the limit merely signifies that in.the case of the
lai tter a fresh application to Parliament will be necessary,.
itfbtihaellyp,rohp l for them should exceed the sum named.
oowsaevser it may be remarked that although for
Ile iea.sons described a strong feeling of disappointment
l
147-Casirnmpaineifensmteids, it is within the power of removal
Two of the offer to grant the 1101.1 s
a-nriswen°;tujeladt:a-lialf per Cents. The other two priotpmosuast
warm satisfaction,a and
lie deemed
desirbablel.l7l4tehdatwnit•hhatever changes m
ltietiellelocry°o7:::::: a full
discussion of the questiony, the mercan-
riityngare two much
.gratified to find a Chan-
bold] 141 e Exchequer departing from routine, and
"tl', to •• • on orioinal but perfectly sound experi-
tha . crawls' e them on the whole with any other
4 a favourable opinion.—Times City Article.