The Sun.
London, England, 1822-07-05 00:00:00

SPANISH FINANCE.

• On the 25th ult. a discussion took place in the
Spanish Cortes on the Report of the Special Com-
missio❑ intrusted with the examination of the

Loans. The qirst article of the Report.of the
majority of the Commission was read to the fol-
lowing effect:—

" That the National Loan of 103,425,080 reals, concluded on
the 4th of August, 1821, between the Government and a body
composed of corporations, capitalists, and merchants of this ca-
pital, and approved Of by his Majesty the same day, receive the
sanction of the Cortes*."

The Minister of... Finance thought that the • contract of the
house of Hubbard and Co. should be agreed to for the same rea-:
•,soris which were alleged in favour of the loan; but he considered
•it his duty to represent to the Cortes, that .it ought not to be
agreed to for the reasons on which the report.of the commission
relied. In that statement two or three reasons are' given in
favour of the National Loan, comparing It with the foreign;
• liut the commission, far from fixing . on the, points•of compari-
son by which it could be...proved that the National Loan was ad-
- vantageous, adopted others which prove the contrary.' One of
the ieasons 'alleged by the commission, for saying. that the loan
deserved approbation, was, that it cost only 4 per cent., whereas
the foreign loan cost 5 per. cent,. .The, foreign loan costs only
4 per cent. of commission over apart of it, and not over the
whole,.and the National Loan over the whole; consequently, a
comparison between the two, so tar from being an argument to
. prove the advantageous nature of the National Loan, is an ar-
got:tient to prove it disadvantageous. The speaker proceeded
with several observations to show that the conditions of the Na-
tional Loan were more burdensome to the country than those of
the foreign contract. Such a fact did not •-warrant the opinion
.that the foreign loan was more advantageous than the National.;
but it merely .shows that the commission has mule a, bad se-
lection of their objects of praise. In conclusion, -the
Minis-
ter observed that the. opinion of the Government was in fa-
vour of maintaining what had been done, although probably
not the most advantageous.. for the good of the nation. But
Why not realize the sale of the property on which the • loan is
secured, and place it in the hands of 'individuals ? What ne-
• cessity is. there for these securities, if the co-:tractors hold no
• interest in them ? And what g,reater guarantees can be had, or
asked for, than what he had referred.to ?. After some further
'observations from other Members,
Senor Isturiz expressed his approbation -of the national, and
his disapprobation of the foreign loan. 'The former was, in his
•••'opinion, 'less . burdensome to the nation than the latter: and
even though it had cost more,.. the loss incurred to the public
was paid to persons within the nation. This, however, was not
the subject of discussion. The only question' before the Cortes
reduced itself to this—ought, the loan to be approved of, in so
far as its operations are concerned ? And to this I reply; yes.;
but the opinion of the Commission ought not to be approved of,
.in so far as the , public property pledged for its • payment is
'concerned.
Senor Ferrer complained that the Commission •and the Mi-
nister of Finance had compared' the national loan to the most
odious' contract which had ever been effected. The Minister

had not in this case-proceeded with that noble frankness which
a Public Functionary ought to exhibit, in presenting the de-
tails of business. The loan under consideration was so simple,
that the merest peasant could:understand it; fill per cent. in
real money, and 50. per cent. in paper or currency of a nominal
value, compose the two sums wliith may be reduced to money.:
These make up 62 per cent., for, adding the sum of :Al of me-
tallic currency to 12 for the paper, we have the sum of 62. The
base of the foreign loan had 30 per cent. good security; and was
worth 415 per cent,- With respect to,the conditions of the pro-
perty pledged to natives and foreigners, it was clear, he said;
that public credit held it to extinguish the debt of the State;
consequently it could be sold; and if'it could be sold, it could
be mortgaged, that being an operation in favour of the, public
creditors, while by means of such mortgage, which was merely
nominal, some millions of debt are redeemed without incurring
a sacrifice, or even making a sale. The Honourable Deputy
proceeded to defend the national loan, of which he was one of

the Directors.
Senor Arguelles gave his support to the loan, but could not
.approve of all its‘conditions, especially the infraction of the laws
in mortgaging the property of the public for its repayment.—
The first article was then agreed to, and the discussion 'about
the loan ended for the day.
It is said in the Gazette of Madrid, that the judges of Grena-
-da, having held a solemn conference, decided by an unanimous
resolution, that there was ground for proceeding against the
author of the 17th number of the PlutO, as seditious in its ten=
slency, and subversive of the lairs. The following are the ex-
pressions charged with this chalacter :—" Nothing is said of

our situation, and the necessity which we are under of creat-
ing a revolution, and proclaiming anew liberty and the consti-
tution."

The following circular of Ahe Minister of Fi-
nance appears in the Madrid Ga:etle o- f the 23cl
ultimo.

The Cortes, with the object of fa-eilifirting-theitdeeree for the-
liquidation of credits, have thought proper to adopt the follow-
ing arrangements
Ist. Within Within eight days from the receipt of the present order,
the nafiLon,al_junca of Public credit shall publish-1. A sum-
mary of alt the credits liquidated' up to' the 31st of May; listin-
guiihing those with, and those without interest. .2. A summa-
ry of those redeemed,to the sane date, with the same distinc,
tions 3. A summary of those which the Junta has received for
their liquidation; . • -
- 2d. Within the first eight days of July next? the Junta shall
publish summaries up to the 30th of June, in which the im-
passable limit far all other claims shall be fixed.
3tl. All the officers of the provinces which shall receive credits
for the purpose of liquidation, shall hand over, on the. 3d of
July, to the Commissioner of Public 'Credit, a list-of the do-
cuments which they may have received for their liquidation,
and the Commissioner shall transmit them, along. with his own
summary, by the first post.
Within the first eight days of the month of July, the
above-mentioned officers shall publish, by means of the press,
an individual note of those which they may have received for
-liquidation.
4th. On or before the 15th of July the National Junta shall
publish a general summary, specifying provinces and districts.
sth. Within the first eight days of each month the same Na-
tional Junta shall publish the progress made in the liquidation
and acknowledgment of the credits referred to it, till they are
concluded. •

Gth. 'Elie publicity which is expressed in the foregoing ar-
ticle shall be repeated by the Commissioners in all the pro-
vinces, through the medium of the, ress.
7th. Persons employed in this deyartment, who do not fulfil
the preceding articles, shall be deprived of their situations, with-
out being allowed to enter into any other Government service.